- The Reserve Bank of India(RBI) has relaxed the norms for the Basic Savings Bank Deposit(BSBD) accounts or popularly known as no-frills accounts.
- The BSBD account was designed as a savings account that will offer certain minimum facilities,free of charge to the holders.Such accounts are primarily aimed at enhancing financial inclusion among the economically weaker sections.
- RBI has allowed banks to provide cheque books and other facilities like minimum four withdrawals to basic account holders.However,the banks cannot ask the BSBD account holders to maintain any minimum balance in return of such facilities.
- There is no need for a minimum balance even at the time of opening the account and a customer is provided with an ATM-cum-debit card without any fees.Deposit and withdrawal services are free of cost.Also,the bank cannot levy charges for non-operation or activation of an inoperative account.
- Moreover,holders of BSBD accounts will not be eligible for opening any other savings bank deposit accounts.RBI said if a customer has any other existing savings bank deposit account in that bank, the customer will be required to close it within 30 days from the date of opening a BSBD account.
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