Review of Extant Instructions – Withdrawal of Circulars

Current Context: The Reserve Bank of India (RBI) recently conducted an internal review and decided to withdraw several outdated and redundant circulars.

• This decision aims to streamline and modernize the regulatory framework by removing obsolete instructions.
• Here are some key points from the review:
• Credit Facilities to Minority Communities: Circulars from 1987 and 1988 have been withdrawn as their instructions are now included in the updated Master Circular on Credit Facilities to Minority Communities issued in April 2023.
• No-Frills Accounts: The concept of “No-Frills” accounts has been discontinued. Instead, Basic Savings Bank Deposit Accounts (BSBDA) are now the standard banking service for all customers.
• Micro Credit Guidelines: Instructions on microcredit have been integrated into the updated Master Circulars on Self-Help Group (SHG) Bank Linkage and Non-Banking Financial Company (NBFC) regulations.

Question:

1 What has replaced the concept of “No-Frills” accounts according to the RBI’s recent review?

• A) Basic Savings Bank Deposit Accounts (BSBDA)
• B) Premium Savings Accounts
• C) Regular Savings Accounts
• D) Digital Savings Accounts

Answer: A) The concept of “No-Frills” accounts has been discontinued, and Basic Savings Bank Deposit Accounts (BSBDA) are now the standard banking service for all customers.