RBI Expands Free Services Under Basic Savings Accounts, Makes Switching Easier for Customers

Moneylife Digital Team 05 December 2025

Economy & Nation

Reserve Bank of India (RBI) has significantly expanded the range of free services available to customers holding basic savings bank deposit (BSBD) accounts, commonly known as zero-balance, zero-fee accounts. In a new directive, RBI has asked banks to treat BSBD accounts on par with regular savings accounts, rather than as restricted or limited-feature options. This move gives customers broader access to essential banking services at no additional cost.

Under the updated guidelines, banks are now required to convert any existing savings account into a BSBD account upon a customer's request. Each BSBD account will include free cash deposits, receipt of funds through electronic channels or cheque collection and an unlimited number of monthly deposits. These changes ensure that basic banking customers receive services similar to those offered under standard savings accounts.

Customers holding BSBD accounts will be entitled to several key services at no additional charge. These include an ATM or ATM-cum-debit card with no annual fee, a cheque book with at least 25 leaves per year, free internet and mobile banking and a complimentary passbook or monthly statement, including continuation passbooks as needed. Account holders will be allowed at least four free withdrawals every month.

Digital payment transactions, such as point of sale (PoS) purchases, national electronic funds transfer (NEFT), real-time gross settlement (RTGS), unified payments interface (UPI), and immediate payment service (IMPS), will not count toward this withdrawal limit, offering greater flexibility for digital banking.

While BSBD accounts have existed since 2012, their popularity surged during large-scale financial inclusion drives, particularly under the Jan Dhan Yojana. Industry sources note that private sector banks hold only about 2% of Jan Dhan accounts, most of which fall under the basic banking category. With the new rules, the RBI has made it simpler for customers of all banks to switch to BSBD accounts if they wish.

RBI has also clarified that the enhanced facilities will be provided only on customer request and cannot be made mandatory for opening or operating a BSBD account. Existing BSBD account holders can access these free services by submitting a request at a branch or through digital channels. While banks may offer additional paid features, they cannot impose any minimum balance requirement—preserving the fundamental zero-balance nature of BSBD accounts.

Customers are not required to make an initial deposit to open a BSBD account. Any existing savings account may be converted into a BSBD account within seven days of submitting a written or digital request. Through these measures, RBI aims to strengthen financial inclusion and ensure that essential banking services remain accessible, affordable and customer-friendly.

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