Good News For Zero Balance Accounts, Know Details
RBI: In a major step for the general public, the Reserve Bank of India (RBI) has further expanded the features of zero-balance Basic Savings Bank Deposit (BSBD) accounts. Banks will no longer consider these accounts to be low-quality or have limited features. The RBI has clearly stated that BSBD accounts should receive the same services as regular savings accounts. These new rules will take effect on April 1, 2026.
The RBI has also mandated that, if a customer wishes, their existing savings account can be converted to a BSBD account within just seven days. The customer simply needs to submit a written or online request. Previously, many banks delayed this process or imposed additional conditions on customers.
There will be no annual charge on ATM or debit cards.
A minimum of 25 pages of chequebooks will be available free of charge each year.
Internet banking, mobile banking, and free passbooks/monthly statements will also be available.
Customers will be able to make at least four free cash withdrawals per month.
Digital transactions—such as UPI, IMPS, NEFT, RTGS, and PoS swipes—will not count towards the four-free transaction limit.
Most importantly, there will be no restrictions on the number of times you can deposit money per month.
The RBI has strictly stated that banks will not make these facilities a condition for opening an account. This means that customers will only avail of these facilities if they wish, and banks cannot force them in any way.
If someone already has a BSBD account, they can avail of new facilities upon request. Banks may offer additional features if they wish, but they cannot impose a minimum balance requirement.
Banks had requested the RBI to limit the number of BSBD accounts based on the customers’ income and profile to prevent misuse. However, the RBI refused to accept this suggestion. It stated that the purpose of BSBD accounts is to provide banking facilities to everyone at a very low cost.
