Unable to maintain your monthly balance? Change your savings account to a Basic Savings Bank Deposit a/c

Maintaining a monthly average balance in one's savings account can be a task as the expenses and purchases cannot be planned. But no matter what, to run the savings account and have its status active, one needs to keep a tab on how much is in their savings account. Moreover, if the amount falls below the slab, then the bank will levy charges which is another added blow on the customer. 

On the other hand the newer concept of Basic Savings Bank Deposit Account, which in other words is a zero balance account. According to the Reserve Bank of India, one can open a BSBD account in any bank branch, notably in the one wherein they do not have an existing bank account. To open the account, the bank just requires the individual's Aadhaar card, PAN card and form no 60.

Further, if you have a savings account with one bank and wish to open a BSBD account in the bank of your comfort, then you can request through proper means to convert your savings account into a BSBD account. 

The Basic Savings Bank Deposit Account or BSBDA comes with common banking and transaction facilities which include deposit and withdrawal of cash; receipt, credit of money through electronic payment channels or by means of deposit, collection of cheques at bank branches as well as ATMs.

But one of the features that stands out is the zero balance benefit the account holder gets. In simpler words, the customer can fall below the monthly average and not have charges levied on them. It is to be noted though that the account has a slab for the maximum average amount in the account. With BSBD accounts, the limit is put to Rs 50,000 at any time.  

Additionally, with BSBDA, banks are required to provide free of charge minimum four withdrawals, including through ATM and other modes that are RTGS, NEFT, Clearing, Branch cash withdrawal, transfer, internet debits, standing instructions, EMI etc.

However, beyond four withdrawals, it is left to discretion of the banks to either offer free or charge for additional withdrawals. Normal savings account of certain banks do not levy ATM charges on withdrawal made from the bank's ATM.