What is basic a savings bank account? How it is different from a regular savings account?
savings bank account is required to maintain a certain minimum average balance and if the same is not maintained the bank imposes a penalty. But if a zero minimum balance sounds attractive to you, Basic Savings Bank Deposit Account (BSBDA) is right for you. Contrary to maintaining any minimum average balance, BSBDA requires a maximum account balance.
The upper limit to the balance that can be maintained in this account is Rs. 50,000 i.e one can not maintain an average balance of more than ₹50,000 in the account. The Basic Savings Bank Deposit Account or BSBDA is a savings account that does not have a minimum balance even at the time of opening the account.
You will get an ATM-cum-debit card without any fees, not even the annual maintenance fee. Deposit and withdrawal services are free of cost, and so is the passbook facility. Also, the bank cannot levy charges for non-operation or activation of an inoperative account.
The bank allows a certain number of deposits and withdrawals in the month that are free of cost. Banks may provide other facilities such as a chequebook, email statements, Demand Drafts, cheque collection and other facilities either free of cost or at a nominal charge. Banks offer the same rate of interest on these accounts as they do for a Regular Savings Account.
It is important to note that these accounts are primarily aimed towards enhancing financial inclusion among the economically weaker sections of society. The earlier no-frills accounts also come under BSBD accounts. Anyone can open BSBDA account using regular KYC (know-your-customer) documents.
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