Allow 4 Withdrawals For Basic Savings Bank A/Cs: RBI To Banks

New Delhi: The Reserve Bank of India (RBI) on Monday said commercial banks need to offer holders of Basic Savings Bank Deposit (BSBD) accounts, a minimum of 4 withdrawals a month, including automatic teller machine (ATM) withdrawals.

The rules will come into force from 1 July.

Earlier, the apex bank had said while there will be no limit on the number of deposits that can be made in a BSBD account each month, account holders will be allowed up to four withdrawals in a month, including ATM withdrawals.

The BSBD account was designed as a savings account that will offer certain minimum facilities, free of charge, to the holders. The accounts have been created with an aim to enhance financial inclusion among the economically weaker sections.

While opening a BSBD account, customers are not required to maintain a minimum balance and provided with an ATM-cum-debit card and also a cheque book without any fees. Deposit and withdrawal services are free of cost. Furthermore, the bank cannot levy charges for non-operation or activation of an inoperative account.

Moreover, holders of BSBD accounts will not be eligible for opening any other savings bank deposit accounts. RBI said if a customer has any other existing savings bank deposit account in that bank, the customer will be required to close it within 30 days from the date of opening a BSBD account.

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