Basic Saving Bank Deposit Account
It is like a Savings account with some modifications in it. A person having BSBDA in a bank cannot have a Savings Account in the same bank. But he can have other accounts such as fixed deposit and recurring deposit accounts.
A person having savings account can open a BSBDA in the same bank. But he will have to close the savings account within 30 days from the date of opening of BSBDA.
With the introduction of BSBDA, ‘no-frills’ account with ‘nil’ or very low minimum balances have been converted to BSBDA.
Highlights of BSBDA:
- All types of customers can open a Basic Savings Bank Deposit Account having age above 10 years.
- There is no requirement for any initial deposit for opening a BSBDA.
- The services available free in the ‘Basic Savings Bank Deposit Account’ include deposit and withdrawal, transfer funds, cheque facility, passbooks, ATM cards and number of withdrawals to 4 using any mode in a month.
- The respective banks can also offer other services as free apart from mentioned above.
- Accounts enjoying additional facilities under the reasonable pricing structure for value added services, exclusively for BSBDA customers should not be treated as BSBDAs.
- BSBDAs can be opened in any commercial banks and also in foreign banks.
- Opening these accounts is a part of Financial Inclusion.
- Total credits in such accounts should not exceed one lakh rupees in a year.
- Maximum balance in the account should not exceed fifty thousand rupees at any time.
- In a month, the total of cash withdrawals and transfers cannot exceed Rs 10,000.
- Foreign remittances cannot be credited to Small Accounts without completing normal KYC formalities.
- Small accounts are valid for a period of 12 months initially which may be extended by another 12 months if the person provides proof of having applied for an Officially Valid Document.
- Small Accounts can only be opened at Core Banking System (CBS) linked branches of banks or at such branches where it is possible to manually monitor the fulfillments of the conditions.