The Reserve Bank asked regional rural banks (RRB) and cooperative banks to convert all existing saving accounts to ‘basic saving accounts’, which will not have the minimum balance requirement.
“The existing basic banking ‘no-frills’ accounts should be converted to Basic Savings Bank Deposit Account,” RBI said in a notification for RRBs and state and central cooperative banks.
It asked RRBs and cooperative banks to provide zero balance facility in the basic banking accounts along with ATM-cum-debit cards without any extra charge.
“If a customer has any other existing savings bank deposit account in that bank, he or she will be required to close it within 30 days from the date of opening a Basic Savings Bank Deposit Account,” RBI said.
The services available in the account would 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.
The account holders would be allowed a maximum of four withdrawals in a month, including ATM withdrawals, RBI said.
“Holders of ‘Basic Savings Bank Deposit Account’ will not be eligible for opening any other savings bank deposit account in that bank,” it said.
Holders of ‘Basic Savings Bank Deposit Account’ will not be eligible for opening any other savings bank deposit account in that bank, RBI added.
The central bank had introduced ‘no-frills’ accounts in 2005 to provide basic banking facilities to poor and promote financial inclusion. The accounts could be maintained without or with very low minimum balance.
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