Basic Savings Bank Deposit Account (BSBDA) byscoop

Banking Awareness: Basic Savings Bank Deposit Account (BSBDA)

Basic Savings Bank Deposit Account (BSBDA): Do you now about the Basic Savings Bank Deposit Account (BSBDA)? What is Small Account? What is no-frills aaccount? What is Basic Savings Bank Deposit Account (BSBDA)? If you know then just go this post for a quick revision. If you don’t then read this post thoroughly.  

Basic Savings Bank Deposit Account (BSBDA)

Definition and Purpose:  The Basic Savings Bank Deposit Account (BSBDA) is a type of account that aims to increase financial inclusion by providing basic banking facilities with minimum charges. There is no minimum balance requirement in BSBDA.

The main and basic facilities provided under Basic Savings Bank Deposit Account (BSBDA) are mentioned below:

  • No requirement of minimum balance.
  • It is a normal banking service available to all (not only to poor people, it is for all and any one can open a BSBDA Account).
  • Services include deposit and withdrawal of cash at bank branch as well as ATM card
  • No limit on the number of deposits that can be made in a month; However maximum of four withdrawals in a month.
  • Facility of ATM card or ATM-cum-Debit Card

These facilities are provided without any charge by the bank. No charge will be levied for non-operation/activation of in-operative ‘Basic Savings Bank Deposit Account’. 

Basic Savings Bank Deposit Account (BSBDA) Byscoop

‘No-frills’ accounts– Earlier banks used to offer the option of ‘No-frills’ accounts for zero balance account. But due to its naming convention, which means something like: offering only a basic service in order to keep costs low; The Reserve Bank of India came up with Basic Savings Bank Deposit Account (BSBDA).

Now all ‘No-frills’ accounts have been converted into Basic Savings Bank Deposit Account (BSBDA).

Important Points about Basic Savings Bank Deposit Account (BSBDA)

  • A person can have only one ‘Basic Savings Bank Deposit Account’ in one bank.
  • A person having ‘Basic Savings Bank Deposit Account’ in a bank will not be eligible for opening any other savings account in that bank. If he already has any other account he/she has to close it within 30 days.
  • However the person can have Term/Fixed Deposit, Recurring Deposit etc., accounts in the bank where one holds ‘Basic Savings Bank Deposit Account’.
  • Passbook is offered for free in BSBDA Account.

bsbda kyc byscoop

Relaxations in KYC norms for BSBDAs (BSBDA Small Account)

When BSBDA is opened on the basis of Simplified KYC, the accounts would be treated as “BSBDA-SMALL account”. The conditions of ‘BSBDA-Small Account’ are:

  • Total of all credits in a financial year does not exceed Rs. 1 Lakh;
  • Total of all withdrawals and transfers (Debits) in a month does not exceed Rs. 10,000; and
  • The balance at any point of time does not exceed Rs 50,000.
  • Small accounts are valid for a period of 12 months initially which may be extended by another 12 months if the person provides proof of having applied for an Officially Valid Document.
  • Small Accounts can only be opened at CBS linked branches of banks.

If you have any other query or any other extra point on this topic you can comment below. 

Summary:

  • No Minimum balance
  • maximum of four withdrawals in a month.
  • all ‘No-frills’ accounts have been converted into Basic Savings Bank Deposit Account (BSBDA).
  • A person can have only one BSBDA account in a bank.
  • A person cannot have any other Savings account in a bank where he/she has BSBDA Account
  • A person can have term deposit/RD Accounts in a bank where he/she has a BSBDA Account
  • For BSBDA Small Accounts:
    • Total of all credits in a financial year does not exceed Rs. 1 Lakh;
    • Total of all withdrawals and transfers (Debits) in a month does not exceed Rs. 10,000; and
    • The balance at any point of time does not exceed Rs 50,000.

 

 

 

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