RBI Issues 7 Amendment Directions on Responsible Business Conduct & BSBD Account Rules Effective April 2026

On 4-12-2025, the Reserve Bank of India issued 7 amendment directions relating to Responsible Business Conduct. The provisions of all the 7 amendments will come into force on 1-4-2026.

Background:

1. The Basic Savings Bank Deposit account was introduced as a savings bank account which offers certain minimum facilities to the holders of such accounts, free of charge.

2. The main objective was to deepen financial inclusion.

3. However, the ongoing digitalization of the banking sector requires a Basic Savings Bank Deposit account that is in sync with the customer’s evolving requirements.

4. Therefore, it was necessary to review the extant instructions and draft Reserve Bank of India (Basic Savings Bank Deposit Account) Directions, 2025 which were issued on 1-10-2025.

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List of Directions amended that relates to Responsible Business Conduct:

Key Provisions of all the amendment directions:

1. The concept of Digital Payment Transaction has been introduced which will have the same meaning as “Electronic Funds Transfer”.

2. The provisions relating to the Basic Savings Bank Deposit Account have been revised as follows:

   1. The BSBD Account is designed as a savings account to provide affordable banking facilities to the public at large. Every bank will have to offer a Basic Savings Bank Deposit Account which will be considered a normal banking service available to all. A bank will offer the following basic minimum facilities in a Basic Savings Bank Deposit Account, free of charge, without any requirement of minimum balance to be maintained in such an account.

      • Deposit of cash;

      • Receipt of money through any electronic channel or deposit / collection of cheques;

      • No limit on number and value of deposits that can be made in a month.

      • ATM Card or ATM-cum-Debit Card. Further, no charges shall be levied towards annual fee, either at the time of issuance or renewal.

      • Cheque book with minimum 25 cheque leaves per year.

      • Internet and mobile banking facility.

      • Passbook or monthly statement of account in lieu of passbook, either in print or by email, as per request of the account holder. Further, issuance of a continuation passbook, on exhaustion of the pages in the previous passbook, shall not attract any charge.

      • Minimum of four free withdrawals, including transfers and ATM transactions (done either at the bank’s own ATM or another bank’s ATM), in a month. Digital payment transactions excluding ATM transactions, i.e., Point of Sale transfers, NEFT, RTGS, UPI, IMPS, etc., shall not be counted as withdrawals for this purpose. The charges on digital payment transactions shall be in accordance with guidelines issued by Department of Payment and Settlement Systems, Reserve Bank / National Payments Corporation of India / Government of India, as applicable.

   2. Paragraph 86A has been inserted which says thar the facilities of ATM/ ATM-cum-Debit card or internet/mobile banking or cheque book will be offered to a customer provided he / she requests for the same, whether at the time of opening the account or subsequently.

      A bank will not insist that a customer necessarily avails these facilities while opening and/ or operating the BSBD account.

   3. Paragraph 86B has been inserted which says that in the case of existing Basic Savings Bank Deposit Account, a bank will extend the newly introduced free facilities (cheque book, internet and mobile banking facility, passbook, minimum of 4 free withdrawals) above upon receipt of a request from the customer.

      The bank will facilitate existing Basic Savings Bank Deposit Account holders to submit such requests through physical as well as digital channels.

   4. A bank may provide additional facilities beyond the above minimum in a Basic Savings Bank Deposit Account, with or without charges, in a non-discretionary and non-discriminatory manner with transparent disclosure to the customer. However, while doing so, the bank shall not require the customer to maintain a minimum balance in the Basic Savings Bank Deposit Account. The availment of such additional facilities shall be at the option of the customer.

   5. Opening and operation of Basic Savings Bank Deposit Account will be subject to the instructions on Know Your Customer / Anti Money Laundering issued by the Reserve Bank vide:

      • Reserve Bank of India (Commercial Banks — Know Your Customer) Directions, 2025;

      • Reserve Bank of India (Small Finance Banks — Know Your Customer) Directions, 2025;

      • Reserve Bank of India (Small Finance Banks — Know Your Customer) Directions, 2025;

      • Reserve Bank of India (Payments Banks — Know Your Customer) Directions, 2025;

      • Reserve Bank of India (Local Area Banks — Know Your Customer) Directions, 2025;

      • Reserve Bank of India (Regional Rural Banks — Know Your Customer) Directions, 2025;

      • Reserve Bank of India (Urban Co-operative Banks — Know Your Customer) Directions, 2025;

      • Reserve Bank of India (Rural Co-opratives Banks — Know Your Customer) Directions, 2025;

   6. A bank, while opening a Basic Savings Bank Deposit Account, will not impose any requirement of an initial minimum deposit.

   7. A customer may convert his / her existing savings bank account to a Basic Savings Bank Deposit Account. The bank will convert the existing savings bank account to Basic Savings Bank Deposit Account within 7 days of receipt of request in writing from the customer for such conversion. Such an option will also be provided to customers through digital channels.

   8. The holder of a Basic Savings Bank Deposit Account will not be eligible to open another Basic Savings Bank Deposit Account in the same bank or any other bank. Accordingly, before opening a new Basic Savings Bank Deposit Account or converting an existing savings bank account to a Basic Savings Bank Deposit Account, the bank will obtain a declaration from the customer that he / she does not have a Basic Savings Bank Deposit Account in any bank.

   9. A bank will publicize the availability of Basic Savings Bank Deposit Account and its features to customers. The bank will also convey the differences between Basic Savings Bank Deposit Account and various savings bank account variants offered by it when a customer approaches it to open a deposit account.