Press Information Bureau

Government of India

Ministry of Finance

13-December-2012 18:51 IST

The Reserve Bank of India (RBI) has advised all Scheduled Commercial Banks (SCBs) on 10.8.2012 to offer a ‘Basic Savings Bank Deposit Account’ and also convert existing basic banking ‘no-frills’ accounts’ to ‘Basic Savings Bank Deposit Account’. Such accounts do not have the requirement of any minimum balance and comes with the facility of ATM Card or ATM-cum-Debit Card. However, the holders of such accounts are not eligible to open any other savings bank deposit account in that bank. Under Financial Inclusion, banks have already opened 3.16 crore accounts by March 31, 2012.

This was stated by the Minister of State for Finance Shri Namo Narain Meena in a written reply to a question in the Rajya Sabha today.

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DSM/RS/ka

Basic Savings Bank Deposit Account: banks must provide no minimum balance accounts with ATM access and convert no frills accounts. Banks must offer and convert existing no frills accounts into Basic Savings Bank Deposit Account facilities that impose no minimum balance requirement, provide ATM or ATM cum debit card access, and restrict holders from opening any other savings bank deposit account in the same bank as part of the Financial Inclusion initiative.