RBI Introduces Amendments To Strengthen BSBD Account Framework, 2025

The Reserve Bank of India (RBI) has updated the rules for Basic Savings Bank Deposit (BSBD) accounts. These changes are designed to make BSBD accounts more in line with today’s banking needs and easier for customers to use.

Simplified BSBD Rules

Banks are now required to give BSBD accounts for free with no minimum balance requirement. Customers could make an unlimited number of deposits every month, despite their size or value. This modification is intended to make basic banking more accessible to low-value deposit holders and promote increased use of BSBD accounts.

RBI has also mandated that banks provide an ATM or ATM-cum-Debit card free of cost with no fees for issuance or renewal. In addition, accountholders must receive a cheque book with at least 25 leaves per year, along with Internet and mobile banking facilities at no charge.

Customers can also request a passbook or a monthly account statement in print or by email, with no additional expenses for continuing passbooks.

For withdrawals, banks must allow a minimum of four free withdrawals per month which covers ATM and inter-bank ATM transactions.

Importantly, digital payment transactions, which includes UPI, NEFT, RTGS, IMPS, and Point-of-Sale transfers will not be counted as withdrawals that ensures customers are not penalised for digital activity.

Existing BSBD accountholders can request these newly introduced facilities, while holders of regular savings accounts may convert them to BSBD accounts if they do not already hold one with another bank. The amendments will come into effect from April 1, 2026 by which banks may choose to adopt the revised framework earlier.

Seven Amendment Directions Issued By RBI

To implement the updated BSBD rules across all bank types, RBI has issued the following seven amendment directions:

1. Commercial Banks Responsible Business Conduct Amendment Directions, 2025

2. Small Finance Banks Responsible Business Conduct Amendment Directions, 2025

3. Payments Banks Responsible Business Conduct Amendment Directions, 2025

4. Local Area Banks Responsible Business Conduct Amendment Directions, 2025

5. Regional Rural Banks Responsible Business Conduct Amendment Directions, 2025