You Can Open SBI Basic Savings Account To Avoid Penalty For Not Maintaining Minimum Balance

In April, the State Bank of India (SBI) implemented changes that included maintaining a minimum balance of Rs 3,000 in city branches; the failure of which would result in a penalty. Similar rules were applied to metro city and semi-urban branches.

However, there is one SBI account which does not require customers to maintain any minimum balance.

SBI Basic Savings Bank Deposit (BSBD) Account

This is a limited-services saving bank account aimed at encouraging savings without any burden of charges or fees. A person has the freedom to maintain zero balance in the account with no upper limit.

“This account can be opened by any individual provided he/she has valid KYC documents. Primarily meant for poorer sections of society to encourage them to start saving without any burden of charges or fees”, reads the SBI website.

Eligibility criteria to open the account are same as it is there in case of regular savings bank account. However, the customer cannot have any other savings bank account if he/she has a Basic Savings Bank Deposit Account, SBI said.

Other terms of BSBD

• Basic RuPay ATM-cum-Debit card will be issued free of cost and no annual maintenance charge will be applied
• Receipt/ credit of money through electronic payment channels like NEFT/RTGS will be free.
• Deposit/ collection of cheques drawn by Central/State Government will be free.
• Rate of Interest: As applicable to savings bank accounts
• Maximum 4 withdrawals in a month, including ATM withdrawals at own and other Bank’s ATMs and transactions through other modes including RTGS/NEFT/Clearing/Branch cash withdrawal/transfer/internet debits/standing instructions/EMI, etc. No further customer debits would be allowed during the month.
• After the four free ATM withdrawals, customers of Basic Savings Bank Deposit Account will be charged Rs. 50 plus tax for cash withdrawal at an SBI branch, Rs. 20 plus tax at other bank ATMs and Rs. 10 plus tax at SBI ATMs.