By Rozebud Gonsalves
Copyright indiatimes
The central bank Wednesday proposed several customer centric measures such as improving services for basic savings bank deposit (BSBD) accounts and strengthening the ombudsman scheme for regulated entities. BSBD accounts require no minimum balance, provide limited free ATM withdrawals, deposits, and basic facilities.“The bouquet of services of BSBD accounts is proposed to be expanded to, among other things, include digital banking (mobile/internet banking) services,” RBI Governor Sanjay Malhotra said.In the draft circular on BSBD accounts published on Wednesday, the RBI proposed adding digital banking and cheque book facilities, making them closer to normal savings accounts but still zero-balance, no-penalty accounts. Digital transactions (UPI, NEFT, RTGS) unlimited and free are also proposed, promoting cashless inclusion. Banks must implement this by March 31 2026, the draft said.Currently, BSBD customers mainly use cash deposits, ATM withdrawals, and passbooks. Digital services like UPI, mobile apps, and internet banking are not universally available or are restricted.Live EventsThe draft circular added that digital transactions (UPI, NEFT, RTGS, IMPS, PoS) should not be counted in the limit of minimum 4 withdrawals per month via branch , ATMs and transfers. There should be no charges for issuance/renewal of ATM and debit card. Banks sometimes charged a renewal fee. Additionally, cheque book is made mandatory with 25 cheque leavesThe free digital banking services will get low-income and rural customers into the digital economy, just like regular account holders, but without the burden of minimum balance rules.“If not physical, banks can provide digital cards and other facilities where the cost to the bank is not very large,” said a retail banking executive at a private sector bank.Additionally, the improved ombudsman scheme for regulated entities is proposed to be strengthened to make grievance redressal more effective. The ombudsman scheme of the central bank will now include rural cooperative banks for better grievance redressal.Add as a Reliable and Trusted News Source Add Now!
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(You can now subscribe to our Economic Times WhatsApp channel)Read More News onBSBD account draftRBI circulardigital banking servicesombudsman schemeRBIminimum balance rulesbsbdprivate sector bankSavings accountDebit(Catch all the Business News, Breaking News, Budget 2025 Events and Latest News Updates on The Economic Times.) Subscribe to The Economic Times Prime and read the ET ePaper online….moreless
