RBI Enhances Digital Services for Basic Savings Accounts

The Reserve Bank of India has announced an expansion of services for Basic Savings Bank Deposit (BSBD) accounts, now offering free digital banking facilities. This significant move is part of the RBI's ongoing efforts to bolster financial inclusion across the country.

BSBD accounts, traditionally meant to provide essential banking services at no cost, will now include mobile and internet banking, as per RBI Governor Sanjay Malhotra. Furthermore, the framework for resolving grievances is set to become more effective through a strengthened Internal Ombudsman mechanism, with rural cooperative banks also gaining coverage under the revised RBI Ombudsman Scheme.

However, BSBD account holders cannot open another savings account within the same bank. Any existing savings accounts in the same bank must be closed within 30 days of opening a BSBD account. The introduction of such accounts aligns with the RBI's broader objectives of financial inclusion and compliance with relevant customer identification and anti-money laundering regulations.

(With inputs from agencies.)