What changed
RBI has amended the Reserve Bank of India (Local Area Banks - Responsible Business Conduct) Directions, 2025 to introduce new facilities for Basic Savings Bank Deposit (BSBD) accounts. The amendments include free ATM cards or ATM-cum-Debit cards, internet and mobile banking, and passbooks or monthly statements.
What it means for you
The amendments aim to provide affordable banking facilities to the public, enhance usage of BSBD accounts, and improve customer service. LABs must offer these facilities free of charge to BSBD account holders, without any minimum balance requirements.
What you must do
- Implement the Amendment Directions as expeditiously as possible
- Offer free ATM cards or ATM-cum-Debit cards, internet and mobile banking, and passbooks or monthly statements to BSBD account holders
- Provide minimum of four free withdrawals per month, including transfers and ATM transactions (at own or other bank's ATM)
- Charge digital payment transactions in accordance with guidelines issued by Department of Payment and Settlement Systems, Reserve Bank / National Payments Corporation of India / Government of India, as applicable
Who it affects
Local Area Banks (LABs), BSBD account holders
What are the new facilities introduced for BSBD accounts?
Free ATM cards, internet and mobile banking, and passbooks are introduced for BSBD accounts.
Do LABs need to charge for these facilities?
No, LABs must offer these facilities free of charge to BSBD account holders.
When do the Amendment Directions come into effect?
The Amendment Directions come into effect on April 1, 2026 or on the date of adoption by the LAB, whichever is earlier.