What is BSBD account? Basic Savings Bank Deposit account
Today I have received an SMS from RBI saying “Don’t you want to keep a minimum balance in your account and won’t have more than four debits in a month? Open BSBD account. Therefore, this message of RBI prompted me to write a blog post on What is BSBD account? Basic Savings Bank Deposit account.
What is BSBD account?
A BSBD account means an account that does not require customers to maintain a minimum or average monthly balance. The full form of BSBD account is Basic Savings Bank Deposit account. Therefore, the main feature of BSBD account is no minimum monthly or average balance maintained in a customer’s account.BSBD account should be considered as the normal banking facility to all.
The largest banks of India such as State Bank Of India and HDFC Bank offering this facility to customers. Under this facility, customers are not required to maintain any minimum monthly or average balance in their BSBD account. Also, customers are entitled to the basic minimum banking facility such as Debit card, internet banking facility and ATM facility among others.
Who can open BSBD account
This account can be opened either singly or jointly or with either or survivor, former or survivor, anyone or survivor etc. provided that the individual is KYC compliant. Therefore BSBD account can be opened with valid KYC documents. The account opening procedure is like the opening of regular savings bank account.
Minimum balance limit
There is no minimum or maximum limit on the balance of BSBD account. This account can even have zero balance.
Service charges under BSBD account
There is no annual service charges to BSBD account. Customers can avail the basic Rupay ATM cum Debit card at free of cost. Also, there is no charges for non-operative or non-active Basic Savings Bank Deposit account.
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Facilities of BSBD account
- A BSBD account is meant for basic banking service available for all;
- No minimum or maximum balance to be maintained in this account;
- Non levy of annual account maintenance charges by the bank;
- No penalty is to be charged for non-operative accounts;
- Basic Rupay ATm cum Debit card will be issued to customers free of cost;
- Customers are entitled to withdraw cash from any of the Bank branches or ATMs like other non BSBD account holders;
- BSBD account holders can even use online internet banking facility free of cost;
- Money received through online mode like NEFT/RTGS is free;
- Deposit or collection of cheques issued by the Central or State Governments is free;
Restrictions on BSBD account
- A customer is permitted to open only one BSBD account in a Bank. He can open BSBD account in both SBI as well as HDFC Bank but not more than one BSBD account in a bank.
- If a customer already has a savings account in that bank, he must have to close that savings account within 30 days from the opening of BSBD account;
- Only four(4) cash withdrawal is permitted either from bank branch or from ATMs or together in a month;
Final word on What is BSBD account? Basic Savings Bank Deposit account
This facility of BSBD account will really be beneficial to those customers from backward classes. Since this BSBD account is meant for all, others who require minimum banking facility can also opt for this account at no extra cost.
I hope I have done enough justice in this blog post on What is BSBD account? Basic Savings Bank Deposit account. You can also comment below in the comment section if you have any further query regarding this.
You can go through my recent post on What is Mutual Fund