Classification: Internal
BSBDA Policy 5.0
Note for PAC
Policy name – BSBDA Policy
The policy as enclosed was last approved by the Board on 2nd February 2023. The
policy has been reviewed and requires no change.
We request PAC to recommend to the Board for their approval.
Name Designation
Prepared by Meenakshi Sthanu AVP
Vetted by Anjani Mishra DVP
Seen & Reviewed by (HOD) Ashish Ahuja COO
Name of the Department – Product – Liabilities
Date – 01.12.2023
Classification: Internal
Basic Savings Bank Deposit Account (BSBDA) Policy V5.0 (December 1, 2023) 1
Classification: Internal
FINO Payments Bank
Basic Savings Bank Deposit
Account (BSBDA) policy
Version 5.0
January 2024
Classification: Internal
Basic Savings Bank Deposit Account (BSBDA) Policy V5.0 (December 1, 2023) 2
Classification: Internal
Document review and approval
Revision history
Version Author Department Date
1.0 Sarabjit Singh, Product Liability Products September 25, 2019
Manager
2.0 Mudit Singhal, Product Liability Products January 21, 2021
Manager
3.0 Mudit Singhal, Product Liability Products January 10, 2022
Manager
4.0 Gargi Poddar, Product Liability Products January 11, 2023
Manager
5.0 Meenakshi Sthanu, Product Liability Products December 1,2023
This document has been reviewed by
Version Reviewer Department Date reviewed
1.0 Ashish Ahuja, EVP & CBO Liability Products October 10, 2019
2.0 Bharat Bhanushali, Head - Liability Products January 21, 2021
Products & Technology
3.0 Ashish Ahuja, COO COO January 10,2022
4.0 Ashish Ahuja, COO COO January 11, 2023
5.0 Ashish Ahuja, COO COO December 1, 2023
This document has been approved by
Version Management committee Board Approval date
1.0 Product & Process Approval Board February 13, 2020
Committee (20th January
2020)
2.0 Product & Process Approval Board February 18, 2021
Committee (18th January,
2021)
3.0 Product & Process Approval Board May 05, 2022
Committee (18th January,
2022)
4.0 Product & Process Approval Board February 02, 2023
Committee (13th January,
2023)
5.0 Product & Process Approval Board
Committee (11th January,
2024)
Classification: Internal
Basic Savings Bank Deposit Account (BSBDA) Policy V5.0 (December 1, 2023) 3
Classification: Internal
Table of Contents
A. Policy usage guide ....................................................................................................... 5
B. Regulatory reference ................................................................................................... 6
C. Policy content .............................................................................................................. 6
1. Introduction .................................................................................................... 6
2. Product Features ........................................................................................... 7
3.Documentation ................................................................................................. 7
D. Frequency of review..................................................................................................... 7
Annexure - I ............................................................................................................................ 9
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Basic Savings Bank Deposit Account (BSBDA) Policy V5.0 (December 1, 2023) 4
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A. Policy usage guide
This section explains the structure of the policy document and the purpose of the same is to
enable easy navigation and understanding of the contents of the document by various
stakeholders. The Policy is organized in the following sections:
Regulatory reference
This section outlines the list of applicable regulations to the current policy document. The name
of regulation issued by various regulators along with the date and reference number will be
listed under this section.
The purpose of the same is to enable various stakeholders in identification of applicable
regulations for the policy and act as a ready reference for the regulations.
Basic Savings Bank Deposit Accounts (BSBDA)
This section is the introduction of the BSBDA.
Product Features
This section lists down the benefits & product feature of BSBDA type. Also, this section explains
the KYC documentations norms as per the master direction.
Glossary
This section contains the definition of key terms used in the policy as per the applicable
regulatory guidelines and industry standards.
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B. Regulatory reference
The following key regulations, as updated from time to time are applicable to the current
policy document.
Regulator Regulation name Date Regulation code
RBI/2015-16/59
Master Circular on Customer DBR
RBI 1 July, 2015
Service in Banks No.Leg.BC.21/09.07.
006/2015-16
Financial Inclusion- Access to RBI/2018-19/206
Banking Services – Basic
RBI 10 June, 2019 DBR.LEG.BC.No.47/
Savings Bank Deposit Account
(BSBDA) 09.07.005/2018-19
Master Direction- “Know Your 25 February, RBI/DBR/2015-16/18
RBI Customer (KYC)” Directions, 2016 DBR.AML.BC.No.81/
2016 14.01.001/2015-16
Remark: A brief summary consisting of extracts of above-mentioned guidelines are outlined
in Annexure – I. All these aspects have appropriately been factored in the Policy. The Bank
shall comply with the guidelines as forming part of these circulars and those being issued
from time to time in this regard.
C. Policy content
1. Introduction
The Basic Savings Bank Deposit Account (BSBDA) is normal savings account provides no
minimum balance requirement. The services offered with account include deposit/withdrawal
at branch/Micro ATM, fund transfer facility, mobile banking, Internet banking, Debit /ATM
card, passbook, etc.
Holders of „Basic Savings Bank Deposit Account‟ will not be eligible for opening any other
savings bank deposit account in that bank. If a customer has any other existing savings
bank deposit account in that bank, he/she will be required to close it within 30 days from the
date of opening a „Basic Savings Bank Deposit Account‟
BSBDA Small Account
BSBDA Small account can only be opened if the customer is not in a position to furnish any
officially valid documents shall be allowed with minimum banking facility.
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Conditions for BSBDA Small Account
a. The aggregate of all credits in a financial year does not exceed rupees one lakh;
b. The aggregate of all withdrawals and transfers in a month does not exceed rupees ten
thousand;
c. The balance at any point of time does not exceed rupees fifty thousand;
d. Remittances from abroad cannot be credited to Small Accounts without completing
normal KYC formalities;
e. Small accounts are valid for a period of 12 months initially which may be extended by
another 12 months if the person provides proof of having applied for an Officially Valid
Document (OVD).
f. Small Accounts can only be opened at CBS linked branches of banks.
g. The account shall be monitored and when there is suspicion of money laundering or financing of
terrorism activities or other high-risk scenarios, the identity of the customer shall be established
as per Section 16 or Section 18.
2. Product Features
Features / Channels BSBDA BSBDA Small
CASH Deposit
Branch / FOS / Unlimited deposits (within the Unlimited deposits(within the
Merchant prescribed limit): Free prescribed limit): Free
Withdrawal across channels
Branch / FOS / 4 free transactions/month,: 5th 4 free transactions / month,:
Merchant / ATM / IMPS Transaction onwards, charge 5th Transaction onwards,
/ UPI / NEFT / RTGS / of 0.5% of transaction amount charge of 0.5% of transaction
Mobile & Internet will be applicable. amount will be applicable.
banking
Other Charges
SMS Alert Charges / Nil Nil
month
Account Closure Nil Nil
ATM cum Debit Card Free Free
3. Documentation
The account opening will be allowed where KYC is provided in Digital/Physical form i.e.
EKYC/ NKYC.Boththe BSBDAand BSBDA Small account shall be subject to RBI instructions
on KYC/AML for opening of bank accounts issued vide Master Direction
DBR.AML.BC.No.81/14.01.001/2015-16 dated February 25, 2016 on „Master Direction -
Know Your Customer (KYC) Direction, 2016‟, as amended from time to time.
D. Frequency of review
Liabilities Product Team is the owner of this policy document and shall review the policy on
an annual basis for organizational appropriateness, taking into consideration the state of the
business /technology environment and compliance with legal and regulatory requirements.
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Basic Savings Bank Deposit Account (BSBDA) Policy V5.0 (December 1, 2023) 7
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Any regulatory changes to this policy document shall be made effective based on circulation
of the internal guidelines with information to the PAC, to be ratified by the Risk & Asset
Liability Management Committee at the time of next review of the Policy. Major changes in
Bank‟s approach, if any, will mandatorily necessitate a review of the policy.
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Basic Savings Bank Deposit Account (BSBDA) Policy V5.0 (December 1, 2023) 8
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Annexure - I
Extracts of Applicable regulatory references
A. RBI’s Master Circular on Customer Service in Banks (1 July, 2015)
Basic Savings Bank Deposit Account (BSBDA)
Banks are advised to offer a 'Basic Savings Bank Deposit Account' which will offer following
minimum common facilities to all their customers:
a. The 'Basic Savings Bank Deposit Account' should be considered a normal banking service
available to all.
b. This account shall not have the requirement of any minimum balance.
c. The services available in the account will include deposit and withdrawal of cash at bank
branch as well as ATMs; receipt / credit of money through electronic payment channels or
by means of deposit / collection of cheques drawn by Central / State Government agencies
and departments.
d. While there will be no limit on the number of deposits that can be made in a month, account
holders will be allowed a maximum of four withdrawals in a month, including ATM
withdrawals.
e. Facility of ATM card or ATM-cum-Debit Card.
f. The above facilities will be provided without any charges. Further, no charge will be levied
for non-operation / activation of in-operative 'Basic Savings Bank Deposit Account'.
g. Banks would be free to evolve other requirements including pricing structure for additional
value-added services beyond the stipulated basic minimum services on reasonable and
transparent basis and applied in a non-discriminatory manner.
h. The 'Basic Savings Bank Deposit Account' would be subject to RBI instructions on Know
Your Customer (KYC) / Anti-Money Laundering (AML) for opening of bank accounts issued
from time to time. If such account is opened on the basis of simplified KYC norms, the
account would additionally be treated as a 'Small Account' and would be subject to
conditions stipulated for such accounts as indicated in paragraph 3.2.2(I)(A)(vi) of Master
Circular dated July 01, 2015 on 'KYC norms / AML standards / Combating of Financing of
Terrorism (CFT) / Obligation of banks under PMLA, 2002'.
i. Holders of 'Basic Savings Bank Deposit Account' will not be eligible for opening any other
savings bank deposit account in that bank. If a customer has any other existing savings
bank deposit account in that bank, he / she will be required to close it within 30 days from
the date of opening a 'Basic Savings Bank Deposit Account'.
j. The existing basic banking 'no-frills' accounts should be converted to 'Basic Savings Bank
Deposit Account' as per the instructions contained above.
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B. RBI’s circular on Financial Inclusion- Access to Banking Services – Basic Savings
Bank Deposit Account (BSBDA) (10 June, 2019)
1. It has been decided to make certain changes in the facilities associated with the account.
Banks are now advised to offer the following basic minimum facilities in the BSBD Account,
free of charge, without any requirement of minimum balance.
a. The deposit of cash at bank branch as well as ATMs/CDMs
b. Receipt/ credit of money through any electronic channel or by means of deposit
/collection of
c. cheques drawn by Central/State Government agencies and departments
d. No limit on number and value of deposits that can be made in a month
e. Minimum of four withdrawals in a month, including ATM withdrawals
f. ATM Card or ATM-cum-Debit Card
The BSBD Account shall be considered a normal banking service available to all.
2. Banks are free to provide additional value-added services, including issue of cheque book,
beyond the above minimum facilities, which may/may not be priced (in non-discriminatory
manner) subject to disclosure. The availment of such additional services shall be at the
option of the customers. However, while offering such additional services, banks shall not
require the customer to maintain a minimum balance. Offering such additional services will
not make it a non-BSBD Account, so long as the prescribed minimum services are provided
free of charge.
3. The holders of BSBD Account will not be eligible for opening any other savings bank deposit
account in that bank. If a customer has any other existing savings bank deposit account in
that bank, he/she will be required to close it within 30 days from the date of opening a BSBD
Account. Further, before opening a BSBD account, a bank should take a declaration from the
customer that he/she is not having a BSBD account in any other bank.
4. The BSBD Account shall be subject to RBI instructions on KYC/AML for opening of bank
accounts issued vide Master Direction DBR.AML.BC.No.81/14.01.001/2015-16 dated
February 25, 2016 on „Master Direction - Know Your Customer (KYC) Direction, 2016‟, as
amended from time to time.
5. The instructions issued on free transactions available for normal savings bank account in
own-bank/other bank ATMs vide circulars DPSS.CO.PD.No.316/02.10.002/2014-15 dated
August 14, 2014 and DPSS.CO.PD.No.659/02.10.002/2014-15 dated October 10, 2014 are
not applicable to BSBD accounts. The minimum free withdrawals available to the BSBD
Account holders can be made at all ATMs (own-bank/other bank ATMs).
6. This circular supersedes earlier instructions issued vide circulars
DBOD.No.Leg.BC.35/09.07.005/2012-13 dated August 10, 2012 on „Financial
InclusionAccess to Banking Services–Basic Savings Bank Deposit Account‟ and
DBOD.No.Leg.BC.52/09.07.005/2013-14 dated September 11, 2013 on „Financial
InclusionAccess to Banking Services – Basic Savings Bank Deposit Account (BSBDA) –
FAQs‟.
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C. RBI’s Master Direction -Know Your Customer (KYC)” Direction, 2016 (Updated as on4th
January, 2024)
In case an individual customer who does not possess any of the OVDs and desires to open a
bank account, banks shall open a „Small Account‟, which entails the following limitations:
i. the aggregate of all credits in a financial year does not exceed rupees one lakh;
ii. the aggregate of all withdrawals and transfers in a month does not exceed rupees ten
thousand; and
iii. the balance at any point of time does not exceed rupees fifty thousand.
Provided, that this limit on balance shall not be considered while making deposits through
Government grants, welfare benefits and payment against procurements.
Further, small accounts are subject to the following conditions:
a. The bank shall obtain a self-attested photograph from the customer.
b. The designated officer of the bank certifies under his signature that the person opening the
account has affixed his signature or thumb impression in his presence. Provided that where
the individual is a prisoner in a jail, the signature or thumb print shall be affixed in presence of the
officer in-charge of the jail and the said officer shall certify the same under his signature and the
account shall remain operational on annual submission of certificate of proof of address issued by the
officer in-charge of the jail.
c. Such accounts are opened only at Core Banking Solution (CBS) linked branches or in a
branch where it is possible to manually monitor and ensure that foreign remittances are not
credited to the account.
d. Banks shall ensure that the stipulated monthly and annual limits on aggregate of
transactions and balance requirements in such accounts are not breached, before a
transaction is allowed to take place.
e. The account shall remain operational initially for a period of twelve months which can be
extended for a further period of twelve months, provided the account holder applies and
furnishes evidence of having applied for any of the OVDs during the first twelve months of
the opening of the said account.
f. The entire relaxation provisions shall be reviewed after twenty four months.
g. Notwithstanding anything contained in clauses (e) and (f) above, the small account shall remain
operational between April 1, 2020 and June 30, 2020 and such other periods as may be notified by
the Central Government.
h. The account shall be monitored and when there is suspicion of money laundering or financing of
terrorism activities or other high-risk scenarios, the identity of the customer shall be established as
per Section 16 or Section 18.
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i. Foreign remittance shall not be allowed to be credited into the account unless the identity of the
customer is fully established as per Section 16 or Section 18.
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Basic Savings Bank Deposit Account (BSBDA) Policy V5.0 (December 1, 2023) 12
