RBI Mandates Unlimited Free UPI/Digital Transactions for Zero-Balance (BSBDA) Accounts

Big Changes Coming to Your Zero-Balance Bank Account (BSBDA)!

The Reserve Bank of India (RBI) is planning a major upgrade to the Basic Savings Bank Deposit Account (BSBDA) to make it more customer-friendly and better equipped for the digital age.

Announced on October 1, these proposed changes are designed to deepen financial inclusion, especially for low-income and rural customers, by offering a wider range of services for free.

What is a BSBDA?

A Basic Savings Bank Deposit Account (BSBDA) is a zero-balance, no-frills savings account. It was created to ensure every individual has access to essential banking services without the burden of maintaining a minimum monthly balance. All accounts opened under the Pradhan Mantri Jan Dhan Yojana are BSBDA accounts.

5 Key Proposed Changes by the RBI

Here is what will be free or unlimited under the new proposals:

1. Unlimited Digital Banking: All digital transactions, including UPI, NEFT, RTGS, IMPS, and PoS, will be offered unlimited and free of charge. This is a huge push toward digital inclusion.
2. More Free Services: Banks must now provide the following to all BSBDA holders for free:
   • An ATM or ATM-cum-Debit Card.
   • A cheque book of at least 25 leaves annually.
   • Internet and mobile banking services.
   • A passbook or monthly statement.
3. No Limits on Deposits: There will be no limit on the number or value of deposits you can make in a month.
4. Minimum Free Withdrawals: You will be guaranteed a minimum of four free withdrawals per month, which includes transfers and ATM transactions.
5. Strict ‘One Account’ Rule: Customers can only hold one BSBDA across the entire banking system. If you have another regular savings account at the same bank, you must close it within 30 days of opening a BSBDA. (You can still open Term/Fixed Deposits).

The RBI has directed banks to implement these new instructions by March 31, 2026. The goal is to ensure BSBDA accounts are truly in sync with customers’ evolving needs in a digital economy.

Need to open a new account? The bank is now required to clearly explain the features of the BSBDA versus other savings accounts when you enquire.