A Basic Savings Bank Deposit Account (BSBDA) can be opened with simplified KYC document and also with nil balance.
It is like a Savings account with some modifications in it. A person having BSBDA in a bank cannot have a Savings Account in the same bank. But he can have other accounts such as fixed deposit and recurring deposit accounts.
A person having savings account can open a BSBDA in the same bank. But he will have to close the savings account within 30 days from the date of opening of BSBDA.
With the introduction of BSBDA, ‘no-frills’ account with ‘nil’ or very low minimum balances have been converted to BSBDA.
Highlights of BSBDA:
If a customer want to get open an account without KYC norms, then also a bank account can be opened for him but that will be treated as BSBDA-Small Account with conditions as:
It is like a Savings account with some modifications in it. A person having BSBDA in a bank cannot have a Savings Account in the same bank. But he can have other accounts such as fixed deposit and recurring deposit accounts.
A person having savings account can open a BSBDA in the same bank. But he will have to close the savings account within 30 days from the date of opening of BSBDA.
With the introduction of BSBDA, ‘no-frills’ account with ‘nil’ or very low minimum balances have been converted to BSBDA.
Highlights of BSBDA:
- All types of customers can open a Basic Savings Bank Deposit Account having age above 10 years.
- There is no requirement for any initial deposit for opening a BSBDA.
- The services available free in the ‘Basic Savings Bank Deposit Account’ include deposit and withdrawal, transfer funds, cheque facility, passbooks, ATM cards and number of withdrawals to 4 using any mode in a month.
- The respective banks can also offer other services as free apart from mentioned above.
- Accounts enjoying additional facilities under the reasonable pricing structure for value added services, exclusively for BSBDA customers should not be treated as BSBDAs.
- BSBDAs can be opened in any commercial banks and also in foreign banks.
- Opening these accounts is a part of Financial Inclusion.
If a customer want to get open an account without KYC norms, then also a bank account can be opened for him but that will be treated as BSBDA-Small Account with conditions as:
- Total credits in such accounts should not exceed one lakh rupees in a year.
- Maximum balance in the account should not exceed fifty thousand rupees at any time.
- In a month, the total of cash withdrawals and transfers cannot exceed Rs 10,000.
- Foreign remittances cannot be credited to Small Accounts without completing normal KYC formalities.
- 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.
- Small Accounts can only be opened at Core Banking System (CBS) linked branches of banks or at such branches where it is possible to manually monitor the fulfillment s of the conditions.
