Banks are generally reluctant to open a zero balance saving account. The reasons can be many, but the most important one is why to spend time on opening an account which has zero balance. But Reserve Bank through a circular made it compulsory for banks to open a zero balance account, technically know as “Basic Savings Bank Deposit Account”.
Now a bank cannot say No for zero balance account. Some of the salient features of this account are as follows
Who can open an account
The ‘Basic Savings Bank Deposit Account’ should be considered as a normal banking service available to all customers. It does not matter whether a person is rich or poor. It’s best suited for a person who use banking services 3-4 times in a month.
Why to open a Basic Savings Bank Deposit Account
1. No minimum balance required.
2. ATM-cum-Debit card will be issued free of cost and no annual maintenance charge will apply.
Frequently Asked Questions
Can an Individual have any number of ‘Basic Savings Bank Deposit Account’ in one bank?
No. An individual is eligible to have only one ‘Basic Savings Bank Deposit Account’ in one bank.
Whether a ‘Basic Savings Bank Deposit Account’ holder can have any other saving account in that bank ?
Holders of ‘Basic Savings Bank Deposit Account’ will not be eligible for opening any other savings account in that bank. If a customer has any other existing savings 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’.
Can an individual have other deposit accounts where one holds ‘Basic Savings Bank Deposit Account’?
Yes. One can have Term/Fixed Deposit, Recurring Deposit etc., accounts in the bank where one holds ‘Basic Savings Bank Deposit Account’.
Yes. To know more about Know Your Customer, read on: http://www.financialkundali.com/all-about-kyc/
Whether Balance enquiry in ATMs also should be counted within the four withdrawals permitted under BSBDA?
Balance enquiry through ATMs should not be counted in the four withdrawals allowed free of charge at ATMs
Whether Passbooks are also to be offered free to BSBDA holders