RBI Expands Free Services for BSBD (Zero-Balance) Accounts to Boost Financial Inclusion

The Reserve Bank of India (RBI) has significantly expanded the range of free services available to customers having basic savings bank deposit (BSBD) accounts with commercial banks. Such accounts are usually called zero-balance, zero-fee accounts. The central bank has implemented these changes, introducing amendments to its Responsible Business Conduct Directions, 2025.

Because of these revisions, now customers holding BSBD accounts will have more access to essential banking facilities at zero additional cost. These services include an ATM or ATM-cum-debit card with zero annual fee, a chequebook with at least 25 leaves per year, free internet and mobile banking, and a complimentary passbook or monthly statement, including continuation passbooks as needed.

RBI has also directed numerous banks to change their existing accounts’ status to BSBS accounts upon the request of customers. Now, every BSBD account will have the facility of free cash deposits, receipt of funds via electronic channels or check collection, and an unlimited number of deposits each month. These changes have been introduced to ensure that the banking customers receive services that are aligned with the services offered under standard savings accounts.

Individuals holding BSBD accounts will now have a minimum of four free withdrawal limits per month. However, payments made digitally, like PoS transactions, NEFT, RTGS, UPI, and IMPS, will not be included under this withdrawal limit.

Now, individuals will not be required to make any initial deposit to open a BSBD account. Individuals having savings accounts can convert their accounts to a BSBD account by furnishing a written or digital request to the bank; the process of conversion will be completed within seven days. Through these revisions, RBI wants to make sure that more people can use banking services easily. These steps are meant to keep basic banking services simple, affordable, and helpful for customers.