Free Digital Banking: The Reserve Bank increased the range of services available to Basic Savings Bank Deposit (BSBD) accounts on Wednesday, allowing those with simple accounts to access the digital banking facility for free. The purpose of BSBD accounts is to give account users free access to basic banking services. Cash deposits at bank branches and ATMs/CDMs, as well as a minimum of four withdrawals per month, including ATM withdrawals, are among the services that banks provide without charge.

In the press meet, Sanjay Malhotra said, “The bouquet of services offered to Basic Savings Bank Deposit account holders without levy of minimum balance charges is proposed to be expanded to include digital banking (mobile/internet banking) services.”

He stated that to improve the efficacy of regulated entities’ grievance redressal, it is suggested that the Internal Ombudsman process be reinforced.

According to him, rural cooperative banks are now included in the scope of the RBI Ombudsman Scheme, which is also being updated for better grievance redressal. It should be mentioned that owners of BSBD accounts will not be able to open any additional savings accounts with that particular bank.

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The consumer must close any other savings bank accounts they may have with that bank within 30 days of starting a “Basic Savings Bank Deposit Account.” The RBI’s efforts to advance financial inclusion goals include the introduction of the BSBD account. The PML Act’s rules, the RBI’s guidelines on Know Your Customer (KYC) and Anti-Money Laundering (AML) for bank account establishment, and other regulations apply to these accounts. Simplified KYC procedures can also be used to open a BSBD account.

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