Current context: RBI has revised its circular on Basic Savings Bank Deposit (BSBD) accounts
BSBD Accounts:
a. A minimum balance is required
b. No minimum balance is required
c. Limit on the number of deposits
d. Banks charge for additional services
- As per the revised circular, Banks are advised to offer basic minimum facilities free of charge without any minimum balance requirement
- There will be no limit on number and value of deposits made in a month
- 4 minimum withdrawals in a month along with ATM withdrawals are allowed
- Banks are free to provide additional value-added services, like issue of cheque book
- The customers have option of the availment of such facilities
- No minimum balance would be required to avail such additional services
- The BSBD account can be converted into a normal saving account only at the written request of the customer
- The banks would be penalized under RBI Banking Regulation Act,1949, if found for non-compliance of any instruction
BSBD Accounts:
- RBI has mandated all banks to offer BSBD accounts to those looking to open a bank account
- In a BSBD account, no minimum balance is required to be maintained
- These accounts are aimed to enhance financial inclusion
- The no-frill accounts also come under BSBD accounts
Question:
Q.1 With respect to Basic Savings Bank Deposit (BSBD) accounts, which statement is correct?a. A minimum balance is required
b. No minimum balance is required
c. Limit on the number of deposits
d. Banks charge for additional services
