what is bsbd account

A Basic Savings Bank Deposit Account (BSBDA) is a type of savings account that does not require a minimum balance. It was introduced by the Reserve Bank of India (RBI) as part of its efforts to further financial inclusion objectives. The account offers certain minimum facilities free of charge, such as issuing an ATM card, without any requirement of a minimum balance. The maximum balance in a BSBDA account is capped, and the total credits in such accounts should not exceed one lakh rupees in a year. If a BSBDA is opened on the basis of Simplified KYC, the account would additionally be treated as a "BSBDA-Small Account" and would be subject to the conditions stipulated for such accounts. A BSBDA customer cannot have any other savings bank account in the same bank.