BSBD Account

Savings account is one of the basic financial instruments that have always been high on the agenda of the Reserve Bank of India. Although people, especially in the rural districts, have always restrain themselves from using banking services and thus, keeping the concern in mind, the RBI in November 2005, advised the banking sector to attract more ‘n’ more people by providing BSBD account (Basic Savings Basic Deposit Account) with added privileges. The account is meant to boost government’s efforts towards financial inclusion. The idea was quite a success as it got people on board who were earlier unbanked.

Several banks and financial institutions have participated to offer Basic Savings Basic Deposits account including the mainstream banks as well. Moreover, the account comes with similar features as of usual bank account such as net banking, mobile banking, fund transfer, and ATM services. But, the centre of all the features and benefits is that BSBD account comes with no minimum monthly balance requirement.

Who can open BSBD Account?

Ideally, BSBD account can be opened by anyone either individually or jointly with any family member. The only condition is that the individual should fulfill the KYC norms, i.e., he or she should have a valid government-issued ID and income proof. The process of opening this account is nothing different and is similar to the one opening a regular savings account online or offline.

What are restrictions related to BSBD Account?

  • An individual can only open one account in a bank or financial institution. Although, he or she could have two accounts, but not in the same bank.
  • In case, an individual already has a savings account in a particular bank, then the account must be closed within 30 days from the date of opening BSBD account with a bank.
  • An accountholder is permitted only up to 4 cash withdrawal in a month either directly from the bank or via ATMs or together from both.

Key features of Basic Savings Basic Deposits Account:

  • The account has no minimum balance requirement
  • No penalty is levied for non-operation of account for over a period of time
  • Banks are free to issue additional services such as complementary cheque books, passbooks, net/mobile banking, and ATM cards, subject to accountholder’s need and preference.
  • An account will be considered as BSBD account as long as the prescribed services are offered for free.
  • BSBD accountholders shall not be eligible for opening savings account with that or any other bank. Even if he or she already has an existing savings account, then the account is required to be shut within 30 days of opening BSBD account.

About us

Well, we have heard instructions from our elders to keep some cash readily available as emergencies can hit the door anytime with no warning or alert. In addition, till now we have definitely learned about the importance of following a good saving habit. Hence, while planning to open a savings account, make sure to do a thorough research to zero down on a scheme that suits best to your needs along with providing financial security in long-run.

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