What changed
RBI issued FAQs on BSBDA, superseding earlier no-frills account guidelines from 2005. Existing no-frills accounts must be converted to BSBDA. Customers can hold only one BSBDA per bank and cannot have another savings account in the same bank.
What it means for you
UCBs must ensure all customers can open a BSBDA without minimum balance or charges, and enforce the one-per-customer rule. This supports financial inclusion but requires banks to update systems to prevent duplicate accounts and manage conversions.
What you must do
- Convert all existing no-frills accounts to BSBDA immediately.
- Update account opening procedures to restrict one BSBDA per customer per bank.
- Ensure no minimum balance or charges apply to BSBDA accounts.
- Close any other savings account of a BSBDA holder within 30 days of opening.
- Train staff on BSBDA rules, including no age/income restrictions.
Who it affects
Primary (Urban) Co-operative Banks, Customers seeking basic banking services, Bank operations and compliance teams
Can a customer have a BSBDA and a fixed deposit in the same bank?
Yes, a BSBDA holder can also have term/fixed deposits, recurring deposits, or other deposit accounts in the same bank.
Are there any KYC relaxations for BSBDA?
The circular does not specify KYC relaxations; standard KYC norms apply as per RBI guidelines.