What changed
RBI replaced paragraphs 80-87 of the existing Directions with new instructions on BSBD accounts. Key changes include defining 'Digital Payment Transaction' per the Payment and Settlement Systems Act, 2007, and mandating free ATM/debit cards (no annual fee), cheque book with minimum 25 leaves yearly, internet/mobile banking, and passbook or monthly statement. Digital payment transactions (e.g., UPI, NEFT, excluding ATM transactions) are not counted as withdrawals for the four free limit.
What it means for you
RCBs must now offer BSBD accounts with zero minimum balance and free basic services, deepening financial inclusion. The exclusion of digital transactions from withdrawal limits encourages digital adoption. Banks need to update systems to track digital payments separately and ensure no charges on specified facilities.
What you must do
- Update BSBD account product terms to include free ATM/debit cards, cheque books (25 leaves/year), internet/mobile banking, and passbooks without charges.
- Configure systems to not count digital payment transactions (UPI, NEFT, RTGS, IMPS, POS) against the four free monthly withdrawal limit.
- Ensure no minimum balance requirement for BSBD accounts and no annual fees on ATM/debit cards.
- Implement the changes by April 1, 2026, or earlier if adopted voluntarily.
Who it affects
Rural Co-operative Banks (RCBs), BSBD account holders at RCBs, RCB operations and IT teams, Compliance departments at RCBs
What facilities must be offered free in a BSBD account?
Free facilities include cash deposits, receipt of money via any channel, ATM/debit card (no annual fee), cheque book with minimum 25 leaves per year, internet/mobile banking, passbook or monthly statement, and at least four free withdrawals per month (including ATM transactions).