Banking · Financial Inclusion
Considering the Reserve Bank of India (RBI) guidelines on Basic Savings Bank Deposit Accounts (BSBDAs), if a customer has already performed four free debits in a month and initiates a fifth debit transaction, what is the permissible regulatory stance for the bank?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1Banks are strictly prohibited from allowing more than four debits in a month under any circumstances for BSBDA holders.
- 2The bank must automatically convert the BSBDA into a regular savings account the moment the fifth transaction is initiated.
- 3The bank can offer additional value-added services beyond four free debits and charge for them, provided it does not automatically convert the BSBDA into a regular savings account without explicit customer consent.✓
- 4The bank can charge a fixed penalty and must keep the account under the BSBDA category indefinitely.
Correct answer
The bank can offer additional value-added services beyond four free debits and charge for them, provided it does not automatically convert the BSBDA into a regular savings account without explicit customer consent.
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