RBI Ask Banks to Allow Atleast 4 Withdrawals

The ReserveBank of India (RBI) said on Monday that banks need to offer basic savings bankdeposit (BSBD) accounts holder to withdraw money minimum four times in a monthincluding Automatic Teller Machine (ATM) withdrawals. The instructions willcome into effect from July 1, 2019.

The CentralBanks in its earlier directions on August 10, 2012 said that while there willbe no limit on the number of deposits that can be made in a month, accountholders will be allowed a maximum of four withdrawals in a month including ATMwithdrawals.

The BSBDaccount was designed as a savings account which will offer certain minimum facilities,free of charge to the holders of such accounts.

The RBI onMonday said that in the interest of better customer service, it has beendecided to make certain changes in the facilities associated with the account.

The CentralBank, however, said that banks are free to provide additional value-addedservices including issue of cheque books, beyond the above minimum facilitieswhich may or may not be priced (in non-discriminatory manner) subject todisclosure.

The RBIfurther said that the decision to avail such additional services shall be atthe option of the customers.

It furtherstated that while offering such additional services, banks shall not requirethe customer to maintain a minimum balance. The RBI also said that offeringsuch additional services will not make it a non-BSBD Account, so long as theprescribed minimum services are provided free of charge.