What is BSBD account? Basic Savings Bank Deposit Account

What is BSBD account? Do you have a 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? 5 things you must know on BSBD 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 a regular savings bank account.

⇒What is BSBD account Minimum balance limit?

There is no minimum or maximum limit on the balance of BSBD account. This account can even have zero balance. This is one of the most beneficial points of having a BSBD account.

⇒What is BSBD Account Service charges?

There are no annual service charges to BSBD a/c. Customers can avail the basic Rupay ATM cum Debit card at free of cost. Also, there are no charges for non-operative or non-active Basic Savings Bank Deposit account.

You may want to read the following:

• Top 10 Best SIP Mutual Funds to invest in 2019
• IRDA claim settlement ratio 2017-18.Best term Insurance plans for 2019
• Best Liquid Funds-5 Best Liquid Funds for 2019

⇒What is BSBD Account Facilities?

• 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 a/c holders;
• BSBD a/c 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;

⇒What is BSBD Account restrictions?

• A customer is permitted to open only one BSBD a/c 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 Basic Savings Bank Deposit Account

This facility of BSBD account will really be beneficial to those customers from backward classes. Since this BSBDA is meant for all, others who require minimum banking facility can also opt for this account at no extra cost.

But it also came to notice that some of the banks are reluctant to open this kind of account as this account does not lead to huge revenue generator for banks. But we all are supposed to follow the policies framed by the Government of India.

If you like this article kindly like and share with others for taking advantage of this great policy.