Open zero balance account in any bank
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It is rule to maintain a minimum balance in your bank account. Account holders should adhere to this as a must. If you fail to do this, banks can impose a fine. But for ordinary people, it is difficult to maintain a minimum balance in their accounts, at all times. Is there no remedy for this situation? There is. The answer is Basic Savings Bank Deposit Account (BSBDA). This account can be maintained by anyone, with zero balance. Let us learn the details:

The rules allow anyone to open a BSBD account in any bank. This account can be opened with zero balance. There is no need for a minimum balance in this account .That rule is meant only for regular savings accounts. If there is no minimum balance in regular savings accounts, then a fine will have to be paid. Because there is no such rule for BSBD account, there is no fear of fines. Reserve Bank of India (RBI) has ruled it that every bank has to offer BSBD account.

Interest rate facility
Interest rates for BSBD accounts will be like regular savings accounts. So customers need not lose out on interest rates. All activities like depositing in accounts, withdrawing from ATMs, cheque book facility and net banking can also be done.

Conditions/disadvantages
Some banks are imposing unnecessary conditions, in opening basic savings accounts. They are allowing these accounts only for customers of certain age group and within a particular income bracket. However, RBI has made it clear that such customers are not to be inhibited with such conditions. Despite this, several banks are imposing all kinds of conditions for opening BSBD accounts. In one financial year, all deposits together should not be over a lakh rupees. In a month all cash withdrawals and cash transfers should not be more than Rs. 10,000. At any time of the year, there should not be more than Rs. 50,000 in these accounts. RBI has not imposed any conditions on cash withdrawals and deposits. But banks themselves have imposed these conditions on customers.

You can deposit any amount for any number of times in a month. But free withdrawals are allowed only four times in a month. These include withdrawals from ATM, transfers through RTGS or NEFT via net banking, or cash withdrawals at the bank branch. For ordinary savings bank accounts, complete Know Your Customer (KYC) details have to be submitted. But for BSBD accounts this is not necessary. An account can be opened without submitting all KYC details. These accounts are permitted to be active for one year. They can be renewed for the next year.

One account per customer
Each customer can open only one basic savings account. If in case the customer  already holds a savings account in the same bank, he or she is not eligible to change it into a basic savings account. If such a customer opens a basic savings account, he or she has to close the ordinary savings bank account within a month. If it is not done, banks themselves get the account closed. Those who have few transactions, or who cannot afford to maintain a minimum balance, can easily open a basic savings bank account. These are useful for students, low income groups and senior citizens.
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