What is basic savings bank deposit account?

I remember when a Savings Account was out of my limits because it requires the account holder to keep a certain minimum balance in it. For an economically weaker section, consistently meeting this requirement is an issue. To solve this issue, the RBI has come out with a BSBDA. The BSBDA full form in banking is Basic Savings Bank Deposit Account.

What is BSBDA in Banking?

It is a Savings Account that doesn’t require a minimum balance. However, it has a maximum account balance that a person is required to maintain. The account holder will receive a Debit cum ATM Card when they open an account. The account holder will also receive passbook services for free and they won’t be charged for a non-operative account. The bank allows a certain number of withdrawals and deposits in the month that are free of cost.

Banks may offer other facilities like Demand Drafts, email statements, cheque book, cheque collection, and other facilities either at a nominal charge or free of cost. They provide the same rate of interest on these accounts as they provide for Regular Savings Accounts.

Now you know what is basic savings bank deposit account.

Conditions on a Basic Savings Bank Deposit Account:

• An upper monetary limit to the balance that you can maintain in a BSBDA account i.e Rs. 50000

• An upper monetary limit to the withdrawals made in a specific month i.e Rs. 10000

• An upper monetary limit to the total of credits made to the BSBDA account in a year, i.e Rs. 1 lakh

• A maximum of four withdrawals in a specific month

• If the account doesn’t satisfy these conditions, a Regular Savings Account can also be converted by the bank.

• A person can’t have a BSBDA Account and regular Savings Account in the same bank. If the account holder follows the rules and conditions, the bank can convert a regular Savings Account to a basic savings bank deposit account.

Read more:

This is all about the BSBDA full form in banking.