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REGULATINGCOMMERCIALBANKING
Banksarefundamentaltothenation'sfinancialsystem.Thecentralbankhasacriticalroletoplayinensuringthesafetyand
soundnessofthebankingsystemandinmaintainingfinancialstabilityandpublicconfidenceinthissystem.

SavingsBankDepositAccount(BSBDA)FAQs(RRBs/StCBs/DCCBs)
1.Query
Whatisthedefinitionof'BasicSavingsBankDepositAccount'(BSBDA)?
Response
AlltheexistingNofrillsaccountsopenedpursuanttoguidelinesissuedvidecircularRPCD.RF.BC.54/07.38.01/200506datedDecember13,2005andRPCD.CO.No.RRB.BC.58/
03.05.33(F)/200506datedDecember27,2005andconvertedintoBSBDAincompliancewiththeguidelinesissuedincircular RPCD.CO.RRB.RCB.BC.No.24/07.38.01/201213
datedAugust22,2012aswellasfreshaccountsopenedunderthesaidcircularshouldbetreatedasBSBDA.Accountsenjoyingadditionalfacilitiesunderthereasonablepricing
structureforvalueaddedservices,exclusivelyforBSBDAcustomersshouldnotbetreatedasBSBDAs.
2.Query
Whethertheguidelinesissuedonnofrillsaccountwith'nil'orverylowminimumbalanceswillcontinueevenaftertheintroductionofBasicSavingsBankDepositAccount?
Response
No. In supersession of instructions contained in circular RPCD.RF.BC.54/07.38.01/200506 dated December 13, 2005 and RPCD.CO.No.RRB.BC.58/03.05.33(F)/200506 dated
December 27, 2005 on No Frill accounts, banks have now been advised to offer a 'Basic Savings Bank Deposit Account' to all their customers vide
RPCD.CO.RRB.RCB.BC.No.24/07.38.01/201213datedAugust22,2012whichwillofferminimumcommonfacilitiesasstatedtherein.Banksarerequiredtoconverttheexisting
'nofrills'accountsinto'BasicSavingsBankDepositAccounts'.
3.Query
CananIndividualhaveanynumberof'BasicSavingsBankDepositAccount'inonebank?
Response
No.Anindividualiseligibletohaveonlyone'BasicSavingsBankDepositAccount'inonebank.
4.Query
Whethera'BasicSavingsBankDepositAccount'holdercanhaveanyothersavingaccountinthatbank?
Response
Holdersof'BasicSavingsBankDepositAccount'willnotbeeligibleforopeninganyothersavingsaccountinthatbank.Ifacustomerhasanyotherexistingsavingsaccountin
thatbank,he/shewillberequiredtocloseitwithin30daysfromthedateofopeninga'BasicSavingsBankDepositAccount'.
5.Query
Cananindividualhaveotherdepositaccountswhereoneholds'BasicSavingsBankDepositAccount?
Response
Yes.OnecanhaveTerm/FixedDeposit,RecurringDepositetc.,accountsinthebankwhereoneholds'BasicSavingsBankDepositAccount'.
6.Query
WhethertheBasicSavingsBankDepositAccountcanbeopenedbyonlycertaintypesofindividualslikepoorandweakersectionsofthepopulation?
Response
No.The'BasicSavingsBankDepositAccount'shouldbeconsideredasanormalbankingserviceavailabletoallcustomers,throughbranches.
7.Query
Whetherthereareanyrestrictionslikeage,income,amountetccriteriaforopeningBSBDAbybanksforindividuals?
Response
No.BanksareadvisednottoimposerestrictionslikeageandincomecriteriaoftheindividualforopeningBSBDA.
8.Query
Isthe'BasicSavingsBankDepositAccount'apartoftheFinancialInclusionplansofbanks?
Response
Theaimofintroducing'BasicSavingsBankDepositAccount'isverymuchpartoftheeffortsofRBIforfurtheringFinancialInclusionobjectives.Alltheaccountsopenedearlieras
'nofrills'accountvideRPCDCirculardatedRPCD.RF.BC.54/07.38.01/200506datedDecember13,2005andRPCD.CO.No.RRB.BC.58/03.05.33(F)/200506 dated December 27,
2005shouldberenamedasBSBDAaspertheinstructionscontainedinparagraph2ofourCircularRPCD.CO.RRB.RCB.BC.No.24/07.38.01/201213datedAugust22,2012 and
allthenewaccountsopenedsincetheissueofourcircularRPCD.CO.RRB.RCB.BC.No.24datedAugust22,2012shouldbereportedunderthemonthlyreportoftheprogressof
FinancialInclusionplanssubmittedbybankstoRPCD,CO.
9.Query
WhatareKYCnormsapplicabletoBSBDAaccounts?ArethereanyrelaxationsinKYCnormsforBSBDAs?
Response
The 'Basic Savings Bank Deposit Account' would be subject to provisions of PML Act and Rules and RBI instructions on Know Your Customer (KYC) / AntiMoney Laundering
(AML)foropeningofbankaccountsissuedfromtimetotime.BSBDAcanalsobeopenedwithsimplifiedKYCnorms.However,ifBSBDAisopenedonthebasisofSimplified
KYC, the accounts would additionally be treated as BSBDASmall account and would be subject to the conditions stipulated for such accounts as indicated in our circulars

RPCD.CO.RCB.AML.BC.No.63/07.40.00/201011datedApril26,2011andRPCD.CO.RRB.AML.BC.No.15/03.05.33(E)/201112datedAugust8,2011.
10.Query
CanIhaveaSmallAccountinABCBankaspertheGovernmentofIndiaNotificationNo.14/2010/F.No.6/2/2007E.S.datedDecember16,2010.CanIhaveadditionallya'Basic
SavingsBankDepositAccount?
Response
No, the BSBDA customer cannot have any other savings bank account in the same bank. If 'Basic Savings Bank Deposit Account is opened on the basis of simplified KYC
norms, the account would additionally be treated as a 'Small Account' and would be subject to conditions stipulated for such accounts as indicated in our circulars
RPCD.CO.RCB.AML.BC.No.63/07.40.00/201011 dated April 26, 2011 and RPCD.CO.RRB.AML.BC.No.15/03.05.33(E)/201112 dated August 8, 2011 on 'Opening of Small
Account.'
11.Query
WhataretheconditionsstipulatedforaccountswhichareadditionallytobetreatedasBSBDASmallAccount?
Response
AsnotifiedintermsofGovt.ofIndianotificationdatedDecember16,2010,BSBDASmallAccountswouldbesubjecttothefollowingconditions:
i.Totalcreditsinsuchaccountsshouldnotexceedonelakhrupeesinayear.
ii.Maximumbalanceintheaccountshouldnotexceedfiftythousandrupeesatanytime
iii.Thetotalofdebitsbywayofcashwithdrawalsandtransferswillnotexceedtenthousandrupeesinamonth
iv.ForeignremittancescannotbecreditedtoSmallAccountswithoutcompletingnormalKYCformalities
v.Smallaccountsarevalidforaperiodof12monthsinitiallywhichmaybeextendedbyanother12monthsifthepersonprovidesproofofhavingappliedforanOfficiallyValid
Document.
vi.SmallAccountscanonlybeopenedatCBSlinkedbranchesofbanksoratsuchbrancheswhereitispossibletomanuallymonitorthefulfillmentsoftheconditions
12.Query
Whatkindsofservicesareavailablefreeinthe'BasicSavingsBankDepositAccount?
Response
Theservicesavailablefreeinthe'BasicSavingsBankDepositAccountwillincludedepositandwithdrawalofcashreceipt/creditofmoneythroughelectronicpaymentchannels
orbymeansofdeposit/collectionofchequesatbankbranchesaswellasATMs.
13.Query
IsthererequirementofanyinitialminimumdepositwhileopeningaBSBDAasperthecirculardatedAugust22,2012?
Response
ThereisnorequirementforanyinitialdepositforopeningaBSBDA.
14.Query
WhetherbanksarefreetooffermorefacilitiesthanthoseprescribedforBasicSavingsBankDepositAccount?
Response
Yes.However,thedecisiontoallowservicesbeyondtheminimumprescribedhasbeenlefttothediscretionofthebankswhocaneitherofferadditionalservicesfreeofchargeor
evolve requirements including pricing structure for additional valueadded services on a reasonable and transparent basis to be applied in a nondiscriminatory manner with prior
intimationtothecustomers.Banksarerequiredtoputinplaceareasonablepricingstructureforvalueaddedservicesorprescribeminimumbalancerequirementswhichshouldbe
displayedprominentlyandalsoinformedtothecustomersatthetimeofaccountopening.Offeringsuchadditionalfacilitiesshouldbenondiscretionary,nondiscriminatoryand
transparenttoallBasicSavingsBankDepositAccountcustomers.HoweversuchaccountsenjoyingadditionalfacilitieswillnotbetreatedasBSBDAs.
15.Query
IfBSBDAcustomershavemorethan4withdrawalsandrequestforchequebookatadditionalcost,willitceasetobeaBSBDA?
Response
Yes.Pleaserefertoresponsetotheabovequery(QueryNo.14).However,ifthebankdoesnotlevyanyadditionalchargesandoffersmorefacilitiesfreethanthoseprescribed
underBDBDAa/cswithoutminimumbalancethensuchaccountscanbeclassifiedasBSBDA.
16.Query
Whethertheexistingfacilityavailableinanormalsavingbankaccountoffivefreewithdrawalsinamonthinotherbanks'ATMsasperIBA(DPSS)instructionswillholdgoodfor
BSBDA?
Response
No. In BSBDA, banks are required to provide free of charge minimum four withdrawals, through ATMs and other mode including RTGS/NEFT/Clearing/Branch cash
withdrawal/transfer/internetdebits/standinginstructions/EMIetc.Itislefttothebankstoeitherofferfreeorchargeforadditionalwithdrawal/s.However,incasethebanksdecide
tochargefortheadditionalwithdrawal,thepricingstructuremaybeputinplacebybanksonareasonable,nondiscriminatoryandtransparentmannerbybanks.
17.Query
ArethebanksfreetolevyAnnualATMDebitCardcharges?
Response
BanksshouldoffertheATMDebitCardsfreeofchargeandnoAnnualfeeshouldbeleviedonsuchCards.
18.Query
WhetherBalanceenquiryinATMsalsoshouldbecountedwithinthefourwithdrawalspermittedunderBSBDA?
Response
BalanceenquirythroughATMsshouldnotbecountedinthefourwithdrawalsallowedfreeofchargeatATMs.
19.Query
IfacustomerofBSBDAagreesnottohaveATMDebitcardshouldthebankgiveATMdebitcardbyforce?
Response
ATM debit cards may be offered at the time of opening BSBDA and issued if the customer requests for the same in writing. Banks need not force ATM debit cards on such
customers.
20.Query
WhataboutcustomerswhoareilliterateoroldwhomaynotbeinapositiontosafekeepandusetheATMdebitcardandPINassociatedwithit?

Response
BankswhileopeningtheBSBDAshouldeducatesuchcustomersabouttheATMDebitCard,ATMPINandriskassociatedwithit.However,ifcustomerchoosesnottohaveATM
DebitCardbanksneednotforceATMdebitcardsonsuchcustomers.If,however,customeroptstohaveanATMDebitCard,banksshouldprovidethesametoBSBDAholders
throughsafedeliverychannelsbyadoptingthesameprocedurewhichtheyhavebeenadoptingfordeliveryofATMDebitCardandPINtotheirothercustomers.
21.Query
WhetherPassbooksarealsotobeofferedfreetoBSBDAholders?
Response
Yes.BSBDAholdersshouldbeofferedpassbookfacilityfreeofchargeinlinewithourinstructionscontainedincircularsRPCD.CO.RF.BC.28/07.40.06/200607datedOctober11,
2006andRPCD.CO.RRB.BC.No.29/03.05.28A/200607datedOctober13,2006.
22.Query
IfacustomeropensaBSBDAbutdoesnotclosehisexistingSavingsBankAccountwithin30days,arebanksthenfreetoclosesuchsavingsbankaccounts?
Response
WhileopeningtheBSBDAcustomersconsentinwritingbeobtainedthathisexistingnonBSBDASavingsBanksaccountswillbeclosedafter30daysofopeningBSBDAand
banksarefreetoclosesuchaccountsafter30days.
23.Query
In certain accounts like NREGA where disbursements are made weekly and if a month has five weeks, it may result in more than four withdrawals. In such cases can banks
permitfivewithdrawals?
Response
InBSBDA,banksarerequiredtoprovidefreeofchargeminimumfourwithdrawals,includingthroughATMandothermode.Beyondfourwithdrawals,itislefttodiscretionofthe
bankstoeitherofferfreeorchargeforadditionalwithdrawal/s.Howeverpricingstructuremaybeputinplacebybanksonareasonable,nondiscretionary,nondiscriminatoryand
transparentmannerbybanks.
24.Query
WhatistheprescribedrateofinterestpayableonbalancesinsuchBasicSavingsBankDepositAccount?
Response
OurinstructionscontainedincircularRPCD.CO.RRB.BC.No.57/03.05.33/201112datedJanuary30,2012onDeregulationofSavingsBankDepositInterestRate,areapplicableto
depositsheldinBasicSavingsBankDepositAccount.
25.Query
IntermsofRBIcircularDPSS.CO.CHD.No.274/03.01.02/201213datedAugust10,2012,if'payableatpar'/'multicity'chequesareissuedtoBSBDAcustomersbasedontheir
request,canbanksprescribeminimumbalancerequirements?
Response
BSBDA does not envisage cheque book facility in the minimum facilities that it should provide to BSBDA customers. They are free to extend any additional facility including
chequebookfacilityfreeofcharge(inwhichcasetheaccountremainsBSBDA)orchargefortheadditionalfacilities(inwhichcasetheaccountisnotBSBDA).
26.Query
Whatisthetimeframeavailabletobanksforconverting'NoFrills'AccountasBasicSavingsBankDepositAccount?WhatisthetimeframeavailabletobanksforissuingATM
CardstoalltheexistingBasicSavingsBankDepositAccountholders?
Response
Alltheexisting'NoFrill'accountsmaybetreatedasBSBDAaccountsfromthedateofthecirculari.e.,August22,2012andbanksmayoffertheprescribedfacilitiesasperthe
circularsuchasissuingATMcardetc.,totheexistingNoFrillaccountholdersasandwhenthecustomerapproachesthebank.However,forcustomersopeningnewaccounts
aftertheissueofourcircularshouldbeprovidedwiththeprescribedfacilitiesimmediatelyonopeningoftheaccount.
27.Query
WhetherthenormalsavingbankaccountcanbeconvertedintoBSBDAattherequestofcustomer?
Response
Yes.SuchcustomersshouldgivetheirconsentinwritingandtheyshouldbeinformedofthefeaturesandextentofservicesavailableinBSBDAs.