All Banks to offer Zero Balance Savings Account! More Benefits to Customers: RBI’s New Draft Circular Out [Read Circular]
Banks may offer additional services on these accounts, either free or with transparent charges, but cannot link them to any minimum balance requirement.
All Banks - Zero Balance Savings Account - More Benefits - Customers - RBI’s - Circular Out - taxscan
All Banks - Zero Balance Savings Account - More Benefits - Customers - RBI’s - Circular Out - taxscan
The Reserve Bank of India ( RBI ) has released a draft circular proposing an overhaul of the Basic Savings Bank Deposit Account (BSBDA) rules, widely known as the Zero Balance Savings Account.
The apex bank is moving to make such accounts more customer-friendly. The concerned banks have been directed to adopt these changes by March 31, 2026.
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The bank has said that “Every bank shall offer a BSBD account, which shall be considered a normal banking service available to all. A bank shall offer the following basic minimum facilities in a BSBD account, free of charge, without any requirement of minimum balance to be maintained in such account.”
Free Facilities Without Minimum Balance
As per the draft directions, every bank must offer a BSBD account as a standard facility to all customers. These accounts will carry no requirement of maintaining a minimum balance and must include several free services:
- Unlimited cash deposits at branches, ATMs, or cash deposit machines.
- Unlimited electronic fund receipts and cheque deposits.
- Free ATM-cum-debit card with no annual issuance or renewal charges.
- At least 25 free cheque leaves annually.
- Free passbook or monthly statement (print or email), including continuation of passbooks without charge.
- Internet and mobile banking facilities without extra cost
Withdrawals and Digital Transactions
BSBD account holders will be entitled to at least four free withdrawals per month (including ATM withdrawals and transfers). However, digital transactions such as UPI, NEFT, RTGS, IMPS, and Point-of-Sale payments will not be counted towards the withdrawal limit, thereby encouraging customers to shift to digital channels. Charges, if any, on such transactions will follow RBI or NPCI guidelines
Option for Additional Services
Banks may offer additional services on these accounts, either free or with transparent charges, but cannot link them to any minimum balance requirement. Also, customers have the freedom to choose whether they want cheque books, debit cards, or digital banking facilities at the time of opening the account, banks cannot make these mandatory.
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Restrictions and Customer Declarations
To prevent duplication, RBI has clarified that a customer can hold only one BSBD account across the banking system. Before opening such an account, banks must obtain a declaration confirming the applicant does not already hold a BSBD account in any bank.
- If a customer holds a regular savings account in the same bank, it must be closed within 30 days of opening the BSBD account. Banks must issue a notice if the closure is not initiated, and can close the account themselves after an additional 30-day grace period.
- However, BSBD account holders are allowed to open term deposit accounts in the same bank
Conversion of Existing Accounts
Existing customers are also allowed to convert their regular savings accounts into BSBD accounts on request. Banks must complete this conversion within seven days of receiving the customer’s request, and the facility should also be available through online channels
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