INSUBCONTINENT EXCLUSIVE:
Zero balance account: BSBDA does not require customers to maintain any minimum balance.The Reserve Bank of India (RBI) has been running
advertorials to educate people about the facilities offered by commercial banks through basic savings bank deposit accounts (BSBDA)
A basic savings bank deposit or BSBD account is a zero-balance account which does not require the customer to maintain any particular
The BSBD account - offered by most lenders - comes with a free debit-cum-ATM card and a passbook without any charge
However, withdrawals from this account are limited, as mandated by the RBI.1
If a customer holds any other existing savings account in the same bank, he or she is required to close it within 30 days from the date of
In other words, the customer cannot have any other savings bank account in the same bank.2) However, in the same bank, along with the BSBD
zero balance savings account, the customer can have accounts such as term/fixed deposit and recurring deposit, according to the RBI's
website -rbi.org.in.3) The services available for free in the BSBD zero balance savings account include deposit and withdrawal of cash and
receipt/credit of money through electronic payment channels or by means of deposit/collection of cheques at bank branches as well as ATMs.4)
There is no requirement for any initial deposit for opening the BSBD zero balance account.5) Banks are free to offer more facilities than
those prescribed for BSBD holders
However, the decision to allow services beyond the minimum prescribed has been left to the discretion of the banks, says RBI.(: State Bank
requests for a cheque book at additional cost, the account will cease to be a BSBD account.7) However, if the bank does not levy any
additional charges and offers more facilities free of cost than those prescribed under the BDBD zero balance savings accounts without a
minimum balance, such accounts can also be classified as BSBD accounts, according to the central bank.8) Balance enquiry through ATMs should
not be counted in the four withdrawals allowed free of charge at ATMs.9) The BSBD account holder should be offered a passbook facility free
of charge as per RBI instructions.10) A regular savings bank account can be converted into a BSBD zero balance savings account at the
Such customers should give their consent in writing and they should be informed of the features and extent of services available in BSBD
accounts, according to the RBI.For the latest News Live Updates on Election Results from each assembly constituency in Madhya Pradesh,
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