What changed
RBI issued the Reserve Bank of India (Regional Rural Banks - Responsible Business Conduct) Amendment Directions, 2025, replacing paragraphs 137 to 143 of the original directions. The amendment mandates that RRBs offer BSBD accounts with specific free facilities, including cash deposits, electronic receipts, ATM cards, cheque books (minimum 25 leaves/year), internet/mobile banking, passbooks, and four free withdrawals monthly. Digital payment transactions (e.g., UPI, NEFT, RTGS) are excluded from withdrawal limits.
What it means for you
RRBs must now provide BSBD accounts as a normal banking service without minimum balance requirements, enhancing financial inclusion. This increases operational costs for RRBs due to free facilities but may drive account usage and customer satisfaction. Banks need to update systems to track digital transactions separately from withdrawal limits.
What you must do
- Review and update BSBD account product offerings to include all mandated free facilities by April 1, 2026.
- Ensure IT systems can differentiate digital payment transactions from ATM/withdrawal counts for free limit compliance.
- Train staff on new BSBD account rules, especially regarding customer requests for optional facilities like ATM cards or cheque books.
- Communicate changes to customers, highlighting that digital transactions (UPI, NEFT) won't count toward withdrawal limits.
Who it affects
Regional Rural Banks (RRBs), BSBD account holders at RRBs, RBI compliance and supervision teams
When do these new BSBD account rules take effect?
The directions come into effect on April 1, 2026, or the date of adoption by the RRB, whichever is earlier. RRBs are encouraged to implement them as soon as possible.
What free facilities must RRBs provide in BSBD accounts?
RRBs must offer free cash deposits, electronic receipts, ATM cards, cheque books (min 25 leaves/year), internet/mobile banking, passbooks, and at least four free withdrawals per month. Digital payment transactions like UPI and NEFT are excluded from withdrawal limits.
Can RRBs charge for digital payment transactions in BSBD accounts?
Charges on digital payment transactions must follow guidelines from RBI's Department of Payment and Settlement Systems, NPCI, or Government of India. These transactions are not counted as withdrawals for the free limit.