Basic savings accounts in co-op banks should be made free, says RBI

The BSBD Account shall be considered a normal banking service available to all, RBI said

The Reserve Bank of India (RBI) said on Friday that banks should not impose any limit on number and value of deposits that can be made in a month on the Basic Savings Bank Deposit (BSBD) account. These accounts are designed primarily for the poor section of the society which would offer certain minimum facilities, free of charges. Banks should not charge for deposit of cash at bank branch as well as ATMs, should not ask for receipt, or credit of money through any electronic channel. 

The account holders should be allowed minimum of four withdrawals in a month, including ATM withdrawal, and should be issued ATM Card or ATM-cum-debit card free of charges.  “The BSBD Account shall be considered a normal banking service available to all,” the RBI said.