SBI’s zero minimum-balance savings account explained in 10 points

State Bank of India or SBI has over 42 crore savings bank accounts, out of which nearly 40% of them or over 16 crore accounts fall in the zero minimum-balance category where the bank does not change any penalty for not maintaining minimum balance. One of zero minimum-balance types of account is SBI basic savings bank deposit (BSBD) account, where the customer is not required to maintain any minimum monthly balance. SBI has said that some other types of savings accounts that fall in the exempted category (no penalty for not maintaining minimum balance) include Pradhan Mantri Jan-Dhan Yojana and pensioner/minors/social security benefit holders accounts.

10 things to know about SBI basic savings bank deposit (BSBD) accounts:

1) According to SBI’s website, these zero-balance accounts are primarily meant for enhancing financial inclusion among the economically weaker sections, without any burden of charges or fees.

2) These accounts can be opened at all SBI branches. SBI gives its customers the option to convert their existing savings accounts to BSBD account, free of cost.

3) There is no minimum balance requirement nor any upper limit.

4) This SBI zero-balance account can be opened by any individual provided he/she has valid KYC documents.

5) SBI’s basic savings bank deposit or BSBD accounts fetch the same rate of interest as that of other savings bank accounts. Currently, SBI offers 3.5% interest on balance (below Rs 1 crore) in savings bank accounts.

6) SBI issues basic RuPay ATM-cum-debit card free of cost and no annual maintenance charge is levied.

7) SBI does not levy any charge for activation of inoperative BSBD accounts.

8) No account closure charges is levied either.

9) According to RBI guidelines, an individual is eligible to have only one Basic Savings Bank Deposit Account in one bank.If a customer already has a savings bank account with SBI, it has to be closed within 30 days of opening a Basic Savings Bank Deposit Account or zero balance account.

10) According to SBI’s website, a maximum of four withdrawals are permitted in BSBD account in a month, including ATM withdrawals at own and other bank’s ATMs and transactions through other mode including RTGS/NEFT/branch cash withdrawal/transfer/internet debits/standing instructions/EMI, etc. No further customer debits are allowed during the month.