In a move aimed at expanding financial inclusion and strengthening digital access, the Reserve Bank of India (RBI) announced that holders of Basic Savings Bank Deposit (BSBD) accounts — often known as no-frills accounts — will now be able to access digital banking services completely free of cost.

BSBD accounts, introduced to provide essential banking services at zero cost, already allow benefits like free cash deposits at branches and ATMs, and at least four free withdrawals a month. With the new addition, customers can now enjoy mobile and internet banking services without incurring extra charges or facing mandatory minimum balance requirements. This brings no-frills accounts closer to the features enjoyed by regular savings accounts.

RBI Governor Sanjay Malhotra stated that the initiative focuses on ensuring financial empowerment for low-income and underserved populations. With India’s growing reliance on digital payments, this measure will help millions engage in secure online transactions while reducing dependency on cash.

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In addition to enhanced services, the RBI also announced a strengthening of the Internal Ombudsman framework to improve grievance redressal within regulated entities. Furthermore, the RBI Ombudsman Scheme is being revised to cover rural cooperative banks as well, thereby addressing customer complaints in deeper rural areas.

It is important to note that BSBD account holders cannot maintain another savings account within the same bank. If an existing customer opens a BSBD account, any other savings bank account in that bank must be closed within 30 days. BSBD accounts, however, can be opened with simplified Know Your Customer (KYC) norms and remain compliant with provisions under the Prevention of Money Laundering (PML) Act.

By introducing free digital banking for BSBD accounts, the RBI not only strengthens its financial inclusion mission but also ensures that even India’s most disadvantaged citizens gain equal access to the digital banking revolution.

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