Sunday, September 16, 2018

Basic Savings Bank Account (BSBD)

What is Basic Savings Bank Account : 

Basic Savings Bank Account was introduced by Reserve Bank of India with the aim of getting bank accounts for the poor sections of the society. The instructions regarding Basic Savings Account has been given in the RBI website. The BSBD account can be opened with any bank in India using Officially Valid Documents (OVD) including Adaar and Photographs. All rules relating to normal account as Know Your Customer (KYC) and Anti Money Laundering Act (AML) is applicable to BSBD accounts.

Features of Basic Savings Bank Account :

  • Zero Balance Account - You have to keep no minimum balance and Monthly Average Balance Charges are also waived.
  • Free Pass Book
  • Free Rupay ATM Card (You can withdraw money from Bank or ATM)
  • Charges including ATM Annual Maintanance Charge, SMS charges, MAB charges are waived
  • No account activation charges for inoperative account
  • No closure charges. 
  • Can open fixed deposits.
  • Other value added services can be availed.
  • Some Banks Offer Cheque Book and Internet Banking Facilities

Restrictions of Basic Savings Bank Account :

  •  Only four monthly debits/withdrawals are permitted
  •  The total amount of transaction per year does not exceed one lakh rupees.
  •  The balance at any time of account does not exceed fifty thousand rupees.
  •  The Basic Savings Account Holder is not allowed to use/open normal savings account. If anybody want to open normal savings account, he has to close BSBD account first.
  •  Foreign remittances are restricted. 

Usually people rush to the bank for opening BSBD account to avoid Monthly Average Balance Charges. But most of them does no know the limitations of this account. They may give this to claim the matured amount from LIC or some other financial institutions. This huge amount dont get credited to BSBD account creating trouble to the bank customer. So before you go for BSBD think of your financial receivables.