RBI Updates Zero-Balance Account Rules from 2026: More Free Services for BSBD Customers

The Reserve Bank of India (RBI) has announced major changes to the rules governing Basic Savings Bank Deposit (BSBD) accounts—commonly known as zero-balance accounts. These revised norms, which come into effect from April 1, 2026, promise customers a wider range of free banking facilities including ATM cards, cheque books, internet banking, mobile banking and multiple free cash withdrawals. The move is aimed at making basic banking more accessible and user-friendly for millions of account holders across the country.

These changes follow public feedback received on the Draft BSBD Guidelines that RBI had issued on October 1, 2025, and are intended to simplify banking access for low-income and first-time users.

RBI Announces Seven Major Amendments Applicable to All Banks

RBI has issued seven key amendments, which will apply to all categories of banks, including:

• Commercial banks

• Small finance banks

• Payments banks

• Local area banks

• Regional rural banks (RRBs)

• Urban cooperative banks

• Rural cooperative banks

The primary goal behind these changes is to expand the reach of BSBD accounts, increase their usage, and ensure that customers receive essential banking services without additional charges.

What Changes from April 1, 2026? Key Features of the New BSBD Rules

Under the revised guidelines, every bank must offer the BSBD account as a standard savings account with zero minimum balance requirement. Customers will receive several complimentary banking services, significantly enhancing convenience and reducing hidden costs.

Here are the major features under the updated rules:

1. Unlimited Free Cash Deposits

Customers will be able to deposit cash without any charges, and the number of deposits will not be restricted. Whether deposited via branch, ATM, or any digital channel, no fee will be applied.

2. Free ATM/Debit Card Without Annual Charges

Banks will provide an ATM or debit card free of annual maintenance fees. This ensures that even entry-level account holders can access their money easily without incurring extra charges.

3. Free Cheque Book Every Year

Each BSBD account holder will receive a minimum 25-page cheque book annually at no cost. Additional cheque books may be chargeable, as permitted under RBI norms.

4. No-Charge Internet and Mobile Banking

Users will enjoy free internet banking and mobile banking services. This is a major step toward promoting digital payments and financial inclusion, especially in rural and semi-urban areas.

5. Free Passbook or Monthly Statement

Banks must provide either a physical passbook or monthly account statement without imposing any fees.

6. Minimum Four Free Withdrawals Every Month

Customers will get at least four free cash withdrawals every month, which will include ATM withdrawals as well as branch or transfer-based transactions.

However, digital transfers and payments will NOT be counted in this withdrawal limit.

7. Digital Payments Exempt from Monthly Limits

The following digital transactions will not be added to the monthly withdrawal quota:

• UPI

• NEFT

• RTGS

• IMPS

• POS transactions

This step ensures customers can use digital payment systems frequently without worrying about charges or limits.

Banks Cannot Force Customers to Take ATM Cards, Cheque Books or Digital Banking

Importantly, RBI has clarified that banks cannot pressure customers to opt for:

• ATM/Debit cards

• Cheque books

• Digital banking services

These will be provided only upon customer request, preventing unnecessary charges or unwanted services.

Why the Change?

RBI’s revised norms aim to:

• Strengthen financial inclusion

• Reduce costs for low-income customers

• Promote digital banking adoption

• Ensure uniformity in services across different banking institutions

By offering enhanced free facilities, the central bank expects a significant rise in BSBD account usage, especially among individuals who rely on basic banking for everyday transactions.

Bottom Line

Starting April 2026, zero-balance account holders will enjoy more flexibility, more digital access, and more free services than ever before. For millions of customers across India—particularly new and underserved users—these changes provide meaningful relief and greater transparency in banking.