What is Basic Savings Bank Deposit Account? Everything you need to know!

For many people, a Savings Account is out of their limits, primarily because it requires a certain minimum balance to be met. For the economically weaker sections, consistently meeting this requirement is a problem. To alleviate this problem, the Reserve Bank of India has come out with a Basic Savings Bank Deposit Account or BSBDA.

The Basic Savings Bank Deposit Account (BSBDA) is a type of Savings Account that does not require a minimum balance. However, it does have a maximum account balance limit that must be maintained. Upon opening a BSBDA, the account holder receives an ATM cum Debit Card and free passbook services. Unlike many other accounts, there are no charges for having a non-operative BSBDA. Further, the bank offers limited monthly free deposits and withdrawals.

Banks may provide other facilities such as a chequebook, email statements, Demand Drafts, cheque collection and other facilities either free of cost or at a nominal charge. Banks offer the same interest rate on these accounts as they do for a Regular Savings Account.

Read more on the different types of Savings Accounts available here.

Apply for a Savings Account here.

As a no-frills, zero-balance account, the Basic Savings Bank Deposit Account (BSBDA) comes with certain conditions to ensure it benefits those from economically weaker sections. These conditions include:

• Balance Limit: The maximum balance allowed in the account is ₹50,000.
  

• Credit Limit: The total credits to the account in a year cannot exceed ₹1,00,000.
  

• Withdrawal Limit: Withdrawals are capped at ₹10,000 per month, with a maximum of four withdrawals allowed monthly.

If these conditions are not met, the bank may convert the BSBDA into a Regular Savings Account. Further, account holders are not permitted to hold a Regular Savings Account and a BSBDA at the same bank. However, if a Regular Savings Account holder meets the BSBDA conditions, their account may be converted accordingly.

• A BSBDA Account can be opened by any customer who does not already have a Savings Account with the bank.
  

• The customer must not have complete KYC documentation, meaning they lack an acceptable photo ID or address proof per the bank’s requirements.
  

• A customer with a regular Savings Account must provide an undertaking if they wish to convert it to a BSBDA. The regular Savings Account will be closed, and a BSBDA Account will be opened.
  

• Customers can still open fixed and recurring deposits with the funds from their BSBDA Account.
  

• A BSBDA is ideal for those struggling to maintain minimum balance requirements and have minimal debit or credit transactions.

In summary, the Basic Savings Bank Deposit Account (BSBDA) provides a valuable option for individuals who find it challenging to meet minimum balance requirements. With no minimum balance needed and manageable transaction limits, it is an accessible and practical choice for those from economically weaker sections. The BSBDA ensures that banking remains simple and affordable, making it easier for more people to manage their finances effectively.

Click here for a secure and simple Online Saving Account Opening process.

Looking to open an HDFC Bank Basic Savings Bank Deposit Account? Click here to get started.

* The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances.