Zero Balance Account: The Reserve Bank of India (RBI) has made major changes in the Basic Savings Bank Deposit (BSBD) account, giving relief to the common customers. These changes include unlimited deposits every month, free ATM or debit card usage without any renewal fee, free check book of at least 25 pages every year, internet and mobile banking and passbook or monthly statement. The Reserve Bank has given 7 days time to the banks, within which the banks will have to make changes in BSBD.
What will be the limit of free withdrawal now?
Banks will have to allow at least four free withdrawals every month, which will include transactions from their own ATMs and ATMs of other banks. Under this new rule, digital payment transactions like UPI, IMPS, NEFT, and RTGS will not be counted as withdrawals. This means that users will not be charged separately for these digital transactions.
Existing BSBD account holders can request for the newly introduced features, while regular savings account holders can convert their accounts to BSBD accounts, provided they do not already have an account with any other bank.
These new changes will come into effect from April 1, 2026, although banks can adopt them earlier also. It is on their choice. RBI has issued new guidelines to update its Responsible Business Conduct Guidelines, 2025. This will officially change the framework of Basic Savings Bank Deposit (BSBD) accounts offered by banks.
See the changes at a glance
- There will be no charge for withdrawing money at least four times in a month.
- Digital payments like Card Swipe (PoS), NEFT, RTGS, UPI and IMPS will not be counted towards the four-time limit.
- You will also get the facility of check book with at least 25 pages in a year, free internet and mobile banking and free passbook or monthly statement.
- ATM and debit card will be given without any annual fee.
What is the purpose of change?
The purpose of implementing these changes is to increase access to BSBD accounts so that people understand its benefits. These new rules will be applicable to all banks like Local Area Bank, Rural Cooperative Bank, Urban Cooperative Bank, Small Finance Bank, Payment Bank and Commercial Bank.
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