The Reserve Bank of India (RBI) has announced major changes to the rules for Basic Savings Bank Deposit (BSBD) accounts. These changes aim to make banking simpler, cheaper, and more useful for customers. The new rules follow a full review of the existing system and public feedback on the draft rules released on October 1, 2025.
The new BSBD directions will apply from April 1, 2026, or earlier if a payments bank chooses to adopt them.
What The New Saving Account Rules For 2026 Include
The RBI has issued seven amendment directions. New Saving Account Rules apply to all banks, including commercial banks, small finance banks, payments banks, co-operative banks, regional rural banks and local area banks.
The goal is to improve customer service, increase usage of BSBD accounts, and support financial inclusion.
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Key Features Of The Revised BSBD Rules
- Zero-balance account
- No minimum balance required
- Free cash deposits
- Unlimited deposits through any channel
- Free ATM or ATM-cum-debit card with no annual fees
- Cheque book with at least 25 free leaves per year
- Free passbook or monthly statements
- Internet and mobile banking free of charge
- Minimum four free withdrawals per month (including ATMs and transfers)
- Digital payments like UPI, NEFT, RTGS, IMPS, and PoS not counted in withdrawal limits
- Banks cannot force customers to take cheque books, ATM cards or digital banking – these are optional
- Existing BSBD customers can ask for newly added free services
Banks may offer extra services, but they must do so fairly and without asking for a minimum balance.
KYC Rules, Conversions And Account Limits
BSBD accounts will continue to follow KYC and AML rules under the RBI’s 2025 guidelines. For minors, separate rules will apply as defined in the KYC framework.
Customers can also convert their regular savings accounts into BSBD accounts under the New Saving Account Rules.
- Banks must complete the conversion within seven days
- Digital submission must be available
- A person cannot hold more than one BSBD account
- Banks must take a declaration from the customer before opening such an account
Banks must clearly share these New Saving Account Rules with customers and explain how these accounts differ from other savings accounts.
When Will The New Saving Account Rules Start?
The New Saving Account Rules will be effective from April 1, 2026.
Payments banks have been advised to adopt them as early as possible.
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