Executive Summary:
This Reserve Bank of India circular outlines changes to the Basic Savings Bank Deposit (BSBD) Account to improve customer service by providing certain minimum facilities free of charge, without requiring a minimum balance. It details the facilities, eligibility, and other relevant instructions. The instructions come into effect on September 1, 2019, and banks are advised to frame Board approved policy operational guidelines in this regard.
Key Points / Main Content:
Basic Savings Bank Deposit (BSBD) Account Facilities:
* Minimum facilities must be offered free of charge, without any requirement of minimum balance.
* Free facilities include: Cash deposits at bank branches and ATMs/CDMs; Receipt/credit of money via electronic channels or deposit/collection of cheques drawn by Central/State Government agencies; No limit on the number/value of monthly deposits; Minimum of four monthly withdrawals, including ATM withdrawals; ATM Card or ATM-cum-Debit Card.
BSBD Account Terms and Conditions:
* BSBD Account is considered a normal banking service available to all.
* Banks can offer additional value-added services (e.g., cheque book) subject to disclosure, without requiring a minimum balance; this doesn't make it a non-BSBD Account if minimum services are free.
* BSBD account holders can't open other savings bank deposit accounts in the same bank; existing accounts must be closed within 30 days of opening a BSBD Account.
* Customers must declare they don't have a BSBD account in another bank before opening one.
* BSBD Accounts are subject to RBI instructions on KYC/AML.
* Instructions on free transactions for normal savings accounts at ATMs are not applicable to BSBD accounts. The minimum free withdrawals available to the BSBD Account holders can be made at all ATMs (own bank/other bank ATMs).
Supersession and Effective Date:
* The circular supersedes earlier instructions issued vide circulars UBD. BPD. Cir. No. 513.01.000/2012-13 dated August 17, 2012 and RPCD. CO. RRB. RCB. BC. No. 24/07.38.01/2012-13 dated August 22, 2012 on Financial Inclusion/Access to Banking Services/Basic Savings Bank Deposit Account and UBD. BPD. PCB Cir No.3/513.01.000/2013-14 dated October 31, 2013 and RPCD.RRB.RCB.AML.BC No.3/607.51.018/2013-14 dated September 17, 2013 on Financial Inclusion/Access to Banking Services/ Basic Savings Bank Deposit Account BSBDA FAQs.
* Instructions are effective from September 1, 2019.
Impact Analysis:
Primary Urban Cooperative Banks and State Central Cooperative Banks:
* Impact: Must implement the changes to BSBD accounts as outlined in the circular.
* Action Required: Frame Board approved policy operational guidelines in this regard and ensure compliance with the new instructions from September 1, 2019.
BSBD Account Holders:
* Impact: Benefit from enhanced facilities in their BSBD accounts without the need to maintain a minimum balance. May need to close other savings accounts in the same bank.
* Action Required: Understand the new facilities available and close any other savings accounts in the same bank within 30 days of opening the BSBD account. Provide a declaration of not having a BSBD account in any other bank.
Reserve Bank of India:
* Impact: Oversees the implementation of the revised guidelines by cooperative banks.
* Action Required: Monitor the adoption of the new rules and regulations for Basic Savings Bank Deposit Accounts by banks.
Key Entities Referenced
Reserve Bank of India: The central bank of India, the issuing authority of this circular.
Primary Urban Cooperative Banks: A type of banking institution regulated by the Reserve Bank of India, addressed in the circular.
State Central Cooperative Banks: A type of banking institution regulated by the Reserve Bank of India, addressed in the circular.
Financial Inclusion: The main subject of the circular, focusing on access to banking services.
Basic Savings Bank Deposit Account: A no-frills savings account designed to promote financial inclusion, the focus of the policy changes.
KYC/AML: Know Your Customer and Anti-Money Laundering guidelines, which BSBD accounts are subject to.
Mumbai, Maharashtra: Location of the Central Office of the Department of Cooperative Bank Regulation, Reserve Bank of India.
Neeraj Nigam: Chief General Manager, signatory of the circular.
भारतीय �रज़वर् बक�
__________________________RESERVE BANK OF INDIA________________________
www.rbi.org.in
RBI/2019-20/31
DCBR.BPD (PCB/RCB).Cir.No.02/13.01.000/2019-20 August 2, 2019
The Chief Executive Officer
All Primary (Urban) Co-operative Banks,
All State/ Central Co-operative Banks
Madam / Dear Sir,
Financial Inclusion - Access to Banking Services - Basic Savings Bank Deposit
Account (BSBDA)
Please refer to our circulars UBD.BPD.Cir.No.5/13.01.000/2012-13 dated August 17,
2012 and RPCD.CO.RRB.RCB.BC.No.24/07.38.01/2012-13 dated August 22, 2012
on the captioned subject.
2. The Basic Savings Bank Deposit (BSBD) Account was designed as a savings
account which would offer certain minimum facilities, free of charge, to the holders of
such accounts. In the interest of better customer service, it has been decided to
make certain changes in the facilities associated with the account. Banks are now
advised to offer the following basic minimum facilities in the BSBD Account, free of
charge, without any requirement of minimum balance.
(i) Deposit of cash at bank branch as well as ATMs/CDMs
(ii) Receipt/ credit of money through any electronic channel or by means of deposit
/collection of cheques drawn by Central/State Government agencies and
departments
(iii) No limit on number and value of deposits that can be made in a month
(iv) Minimum of four withdrawals in a month, including ATM withdrawal
(v) ATM Card or ATM-cum-Debit Card
The BSBD Account shall be considered a normal banking service available to all.
3. Banks are free to provide additional value-added services, including issue of
cheque book, beyond the above minimum facilities, which may/may not be priced (in
सहकारी बक� िविनयमन िवभाग,क��ीय कायार्लय, सी-7, पहली मंिज़ल, बान्�ा-कुलार् संकूल, बान्�ा (पूवर्) मुंबई- 400051 भारत
फोन: 022 – 26578118 ई मले : cgmdcbrco@rbi.org.in
Department of Co-operative Bank Regulation, Central Office, C-7, 1st Floor, Bandra-Kurla Complex, Mumbai - 400051, India
Phone: 022 – 26578118; Email: cgmdcbrco@rbi.org.in
ब�क िहन्दी म� प�ाचार का स्वागत करता ह ै—
चेतावनी: भारतीय �रज़वर् ब�क �ारा ई-मेल, डाक, एसएमएस या फोन कॉल के ज�रये कोई भी �ि�गत जानकारी जैसे ब�क खाते का ब्यौरा, पासवड र्आ�द नह� माँगा जाता ह।ै यह धन रखने या
दने े का �स्ताव भी नह� करता ह।ै ऐसे �स्ताव� का �कसी भी �कार से जवाब मत दीिजए।
Caution: RBI never sends mails, SMSs or makes calls asking for personal information like bank account details, passwords, etc.
It never keeps or offers funds to anyone. Please do not respond in any manner to such offers.a non-discriminatory manner) subject to disclosure. The availment of such additional
services shall be at the option of the customers. However, while offering such
additional services, banks shall not require the customer to maintain a minimum
balance. Offering such additional services will not make it a non-BSBD Account, so
long as the prescribed minimum services are provided free of charge.
4. The holders of BSBD Account will not be eligible for opening any other savings
bank deposit account in that bank. If a customer has any existing savings bank
deposit account in that bank, he/she will be required to close it within 30 days from
the date of opening a BSBD Account. Further, before opening a BSBD account, the
bank should obtain a declaration from the customer that he/she is not having a BSBD
account in any other bank.
5. The BSBD Account shall be subject to RBI instructions on KYC/AML for opening of
bank accounts issued vide Master Direction DBR.AML.BC.No.81/14.01.001/2015-16
dated February 25, 2016 on ‘Master Direction - Know Your Customer (KYC)
Direction, 2016’, as amended from time to time.
6. The instructions issued on free transactions available for normal savings bank
account in own-bank/other bank ATMs vide circulars DPSS.
CO.PD.No.316/02.10.002/2014-2015 dated August 14, 2014 and DPSS.
CO.PD.No.659/02.10.002/2014-2015 dated October 10, 2014 are not applicable to
BSBD accounts. The minimum free withdrawals available to the BSBD Account
holders can be made at all ATMs (own-bank/other bank ATMs).
7. This circular supersedes earlier instructions issued vide circulars UBD. BPD. Cir.
No. 5/13.01.000/2012-13 dated August 17, 2012 and RPCD. CO. RRB. RCB. BC.
No. 24/07.38.01/2012-13 dated August 22, 2012 on ‘Financial Inclusion-Access to
Banking Services–Basic Savings Bank Deposit Account’ and UBD. BPD. (PCB) Cir
No.35/13.01.000/2013-14 dated October 31, 2013 and RPCD.RRB.RCB.AML.BC
No.36/07.51.018/2013-14 dated September 17, 2013 on ‘Financial Inclusion- Access
to Banking Services – Basic Savings Bank Deposit Account (BSBDA) – FAQs’.
8. These instructions will come into force with effect from September 1, 2019. Banks
are advised to frame Board approved policy / operational guidelines in this regard.
Yours faithfully,
(Neeraj Nigam)
Chief General Manager