BSBD Account in detail

The Basic Savings Bank Deposit Account (BSBDA) is a type of account that aims to increase financial inclusion by providing basic banking facilities with minimum charges. This account does not have any minimum balance but there is a maximum balance which has to be maintained. The rate of interest offered on these accounts is same as regular savings account.

BSBDA Account was introduced by RBI in 2012 replacing the earlier “No Frills Account” introduced in 2005 with the purpose of enhancing financial inclusion among the economically weaker sections of the society.


  • Resident individual (sole or joint) can open account.
  • Minors are not eligible to open account under this scheme and operate independently.
  • Minor can open account jointly with guardian or with mother as the guardian and will be operated by such guardian only and are not eligible to operate independently.
  • The account opened under PM Jan Dhan Yojana is a BSBDA.


The following are the main features of this account :-

  1. A person can have only one ‘Basic Savings Bank Deposit Account’ in one bank.
  2. Customers having an existing savings bank deposit account in that bank, will be required to close it within 30 days from the date of opening a BSBD Account.
  3. Passbook is offered for free in BSBDA Account.
  4. Aadhaar based credit of subsidy/government benefits are free of charge.
  5. Free internet & mobile banking is available
  6. No limit on number and value of deposits that can be made in a month.


The following conditions are required to be fulfilled for opening a BSBD account :

  • An upper monetary limit to the balance that can be maintained in this account i.e Rs. 50,000
  • An upper monetary limit to the total of credits made to this account in a year, i.e Rs. 1,00,000
  • An upper monetary limit to the withdrawals made in a particular month i.e Rs. 10,000
  • A maximum of 4 withdrawals in a particular month.

In case of failure to comply these conditions, the account will be converted to regular savings account.

BSBD Accounts are subject to provisions of PML Act and Rules and RBI instructions on Know Your Customer (KYC) / Anti-Money Laundering (AML) for opening of bank accounts issued from time to time.

However, if ‘Basic Savings Bank Deposit Account’ is opened on the basis of simplified KYC norms, the account would additionally be treated as a ‘Small Account’ and would be subject to conditions stipulated for such accounts. Such accounts have restrictions on credit, maximum balance cash withdrawals etc.

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