Tuesday, January 10, 2017

Banking Awareness 2017 - Basic Savings Bank Deposit Account and Small Account - Features | Limits | Rules


Hello and welcome to exampundit. Here are the 10 Important Features, Rules and Limits of Basic Savings Bank Deposit Account and Small Account.


Basic Savings Bank Deposit Account


The aim of introducing 'Basic Savings Bank Deposit Account'(BSBDA) is a part of the efforts of RBI for promoting ‘Financial Inclusion’ objectives. BSBDA is the new word coined to substitute the nomenclature ‘no-frills’ account.

In BSBDA, the account holder gets the basic banking services with minimum common facilities either with nil or very low minimum balance. Banks do not charge the customers for not maintaining minimum balance in the BSBDA, so as to enable such accounts accessible to vast sections of population.


It is important to notice that the 'Basic Savings Bank Deposit Account’ is not restricted to poor and weaker section of the population. There are no restrictions on criteria like age, income, amount etc., for opening BSBDA by banks for individuals.

BSBDA Accounts would be subject to the following conditions:

  1. BSBDA is a savings account that can be opened by any individual or HUF (Hindu Undivided Family) who has no savings bank account in that bank. 
  2. Total credits in such accounts should not exceed one lakh rupees in a year.
  3. Maximum balance in the account should not exceed fifty thousand rupees at any time.
  4. The total of debits by way of cash withdrawals and transfers will not exceed ten thousand rupees in a month.
  5. An individual is eligible to have only one 'Basic Savings Bank Deposit Account' in one bank.
  6. Balance enquiry through ATMs should not be counted in the four withdrawals allowed free of charge at ATMs.
  7. While opening the BSBDA customers’ consent in writing be obtained that his existing non-BSBDA Savings Banks accounts will be closed after 30 days of opening BSBDA and banks are free to close such accounts after 30 days.
  8. The prime purpose of BSBDA Account is Financial Inclusion.
  9. The BSBDA needs proper KYC Documents.
  10. NEFT, RTGS are available in BSBDA.



SMALL ACCOUNT

Those persons who do not have any of the ‘official valid documents’ can open ‘small accounts’ with banks. A ‘small account’ can be opened on the basis of a self-attested photograph and putting her/his signature or thumb print in the presence of an official of the bank.

Features:
  1. Aggregate deposit should not exceed one lakh rupees in a year.
  2. Maximum balance in the account should not exceed fifty thousand rupees at any time.
  3. The total of debits by way of cash withdrawals and transfers will not exceed ten thousand rupees in a month.
  4. Foreign remittances can not be credited to Small Accounts without completing normal KYC formalities.
  5. Small accounts are valid for a period of 12 months initially, extended upto 12 months.
  6. Small Accounts can only be opened at CBS linked branches of banks.










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