A basic savings bank deposit (BSBD) account is a type of zero balance savings account and does not require customers to maintain any particular minimum average balance. Key banks like State Bank of India (SBI), HDFC Bank offer the facility of zero balance account. Infact, Reserve Bank of India (RBI) has also used advertisements to create awareness about the BSBD account. In an advertisement, on BSBD, RBI says only an Aadhaar card is needed to open such an account and customers get some important services free of cost. BSBD account holders also get free ATM debit card can withdraw money four times in a month from their account. However, there is no limit on the number of deposits.
Here are key things about basic savings bank deposit account:
1. An individual is eligible to have only one 'Basic Savings Bank Deposit Account' in one bank, said RBI on its official website - rbi.org.in.
2. Holders of BSBD account will not be eligible for opening any other savings bank account in that bank. If a customer has any other existing savings bank account in that bank, he/she will have to to close it within 30 days from the date of opening a BSBD accont.
3. However, one can have term/fixed deposit, recurring deposit etc, accounts in the bank where one holds BSBD account.
4. The free services available in a BSBD account includes deposit and withdrawal of cash; receipt/credit of money through electronic payment channels or by means of deposit/collection of cheques at bank branches as well as ATMs. However, balance enquiry through ATMs should not be counted in the four withdrawals allowed free of charge at ATMs.
5. Banks should offer the ATM Debit Cards free of charge and no Annual fee should be levied on such cards, according to RBI's. BSBDA holders also get passbook facility free of charge.
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