RBI Ask Banks to Allow Atleast 4 Withdrawals

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The Reserve Bank of India (RBI) said on Monday that banks need to offer basic savings bank deposit (BSBD) accounts holder to withdraw money minimum four times in a month including Automatic Teller Machine (ATM) withdrawals. The instructions will come into effect from July 1, 2019.

The Central Banks in its earlier directions on August 10, 2012 said that while there will be no limit on the number of deposits that can be made in a month, account holders will be allowed a maximum of four withdrawals in a month including ATM withdrawals.

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

The RBI on Monday said that in the interest of better customer service, it has been decided to make certain changes in the facilities associated with the account.

The Central Bank, however, said that banks are free to provide additional value-added services including issue of cheque books, beyond the above minimum facilities which may or may not be priced (in non-discriminatory manner) subject to disclosure.

The RBI further said that the decision to avail such additional services shall be at the option of the customers.

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

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