Jan Dhan Account Holders to Get Major New Facilities: RBI Announces Key Upgrades for BSBD Accounts
Jan Dhan Account Holders to Get Major New Facilities: RBI Announces Key Upgrades for BSBD Accounts
From unlimited deposits to free debit cards and internet banking, RBI moves to make Basic Savings Bank Deposit accounts more customer-friendly and inclusive.
The Reserve Bank of India (RBI) has announced a significant upgrade to Basic Savings Bank Deposit (BSBD) accounts, commonly known as Jan Dhan accounts. Starting October 1, 2025, these accounts will offer features similar to regular savings accounts — all free of charge.
The move aims to enhance customer experience, strengthen financial inclusion, and ensure safer and more convenient access to banking services, particularly for low-income and rural customers.
Under the Pradhan Mantri Jan Dhan Yojana (PMJDY), more than 566 million BSBD accounts have already been opened across the country, holding deposits exceeding ₹2.67 trillion. The RBI stated that this upgrade will help BSBD account holders keep pace with digital banking advancements and promote the ongoing digitisation of the financial sector.
According to the RBI’s circular, banks must now treat BSBD accounts as regular banking accounts and provide the following facilities without any charges:
- Unlimited deposits through cash, electronic channels, or ATMs/cash deposit machines
- At least four free cash withdrawals per month, including at ATMs
- Free ATM or debit cards
- A minimum 25-leaf cheque book each year
- Internet and mobile banking access
- Passbooks or monthly statements at no extra cost
- No minimum balance requirement
The RBI further clarified that BSBD account holders can use all digital payment systems such as UPI, NEFT, RTGS, IMPS, and POS transactions without restrictions. Banks may offer additional services to these customers — either free or for a nominal fee.
A customer can also convert an existing savings account into a BSBD account by submitting a written or online request. Once the request is made, the conversion should be completed within seven days.
However, each customer is allowed only one BSBD account across the banking system. If the customer already holds a regular savings account in the same bank, it must be closed within 30 days of opening the BSBD account. If not, the bank will issue a notice and allow an additional 30 days before closing the duplicate account.
Banks have also been instructed to clearly explain the differences between BSBD and other savings accounts to potential customers, ensuring that all — especially first-time or unbanked individuals — can make informed choices about their financial services.
All BSBD accounts must comply with the RBI’s KYC and master directions, and banks must implement an internal ombudsman system to handle grievances quickly and efficiently.
The RBI has set March 31, 2026, as the deadline for full compliance with the new guidelines.
This initiative marks a major step toward simplifying banking access and empowering millions of Jan Dhan account holders with the same digital and financial benefits enjoyed by regular bank customers, at no extra cost.
