Basic Savings Bank Deposit Accounts (BSBDA)
The central bank (RBI) had introduced ‘no-frills’ accounts in 2005 to provide basic banking facilities to poor and promote financial inclusion. The accounts could be maintained without or with very low minimum balance.
RBI has asked the banks to convert the existing ‘no-frills’ accounts into ‘Basic Savings Bank Deposit Accounts’.
Important points regarding BSBDA
- The ‘Basic Savings Bank Deposit Account’ is available to all Indian Residents.
- There is no requirement of maintaining any minimum balance and no minimum balance charges are levied.
- The services available in the account will include deposit and withdrawal of cash at branch as well as ATM; receipt/credit of money through electronic payment channels or by means of deposit/collection of cheques drawn by Central/State Government agencies and departments;
- There is no limit on the number of deposits that can be made in a month, account holder/s is/are allowed a maximum of four withdrawals in a month, including ATM withdrawals.
- The facility of ATM card or ATM-cum-Debit Card can be availed. Nomination facility can also be availed.
- These facilities are provided without any charges. No charge will be levied for non-operation/activation of inoperative ‘Basic Savings Bank Deposit Account’.
- The ‘Basic Savings Bank Deposit Account’ is subject to RBI instructions on Know Your Customer (KYC) / Anti-Money Laundering (AML) for opening of bank accounts issued from time to time. If such account is opened on the basis of simplified KYC norms, Account shall remain operational initially for a period of 12 months and thereafter for 12 months if the holder provides evidence of having applied for any of the KYC documents. Thereafter the account would be continued only after submission of full KYC documents.
- The Account Holders of ‘Basic Savings Bank Deposit Account’ will not be eligible for opening any other savings bank deposit account in the bank. If a customer has any other existing savings bank deposit account in Dena bank, he/she will be required to close it within 30 days from the date of opening a ‘Basic Savings Bank Deposit Account’.
Restriction of BSBA
- Deposited money in 1 year should not be more than 1 lakh. ( eg. if u deposited Rs. 10000 and withdraw Rs. 5000 and next day again u deposit Rs. 10000. then ur deposited money will be Rs. 20000 and not 15000).
- The maximum withdraw limit for whole month is 10000.
- The balance in account should not exceed Rs. 50000 at any time.
- Maximum 4 withdrawals in a month , including through ATM’s
Read next article: Facts about Indian Rupee ››
Read previous article: « Sixth RBI Bi Monthly Policy Review