Mumbai: The Reserve Bank of India (RBI) on Monday said that banks need to offer holders of basic savings bank deposit (BSBD) accounts, a minimum of four withdrawals in a month, including automatic teller machine (ATM) withdrawals. These instructions will come into force with effect from 1 July, 2019.
In its earlier directions on 10 August, 2012, the central bank had said that while there will be no limit on the number of deposits that can be made in a month, account holders will be allowed a maximum of four withdrawals in a month, including ATM withdrawals.
The BSBD account was designed as a savings account which will 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," RBI said on Monday.
The central bank said that banks are free to provide additional value-added services, including issue of cheque book, beyond the above minimum facilities, which may or may not be priced (in non-discriminatory manner) subject to disclosure.
The decision to avail such additional services, RBI said, 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," it said.
