Module: | KYC, NPAs, Advances & Investment Valuations
Q188: Consider the following statements regarding the Basic Savings Bank Deposit (BSBD) Account framework under the April 2026 amendments:
1. Banks are mandated to provide a minimum of 25 cheque leaves per year free of charge upon customer request.
2. Digital payment transactions such as NEFT, RTGS, and UPI must be strictly excluded from the mandated limit of four free withdrawals per month.
3. A bank must execute the conversion of a standard savings account into a BSBD account within exactly 7 days from the receipt of a customer's request.
4. Customers holding a BSBD account are permitted to maintain one additional standard savings account in the same bank for term deposit linkages.
Which of the statements given above is/are correct?
2. Digital payment transactions such as NEFT, RTGS, and UPI must be strictly excluded from the mandated limit of four free withdrawals per month.
3. A bank must execute the conversion of a standard savings account into a BSBD account within exactly 7 days from the receipt of a customer's request.
4. Customers holding a BSBD account are permitted to maintain one additional standard savings account in the same bank for term deposit linkages.
Which of the statements given above is/are correct?
✅ Correct Answer: A
The correct answer is A. Statement 1 is correct: The updated regulatory framework legally binds banks to issue a minimum of 25 free cheque leaves per year to BSBD account holders upon their request.
Statement 2 is correct: To promote digital banking, electronic transactions including NEFT, RTGS, IMPS, and UPI are explicitly insulated and cannot be counted against the restricted cap of four free monthly withdrawals.
Statement 3 is correct: Guidelines strictly define a 7-day turnaround time for processing a customer's request to convert a standard savings account into a BSBD account.
Statement 4 is incorrect: The framework enforces a strict "single account" doctrine, meaning a BSBD holder is absolutely ineligible to maintain any other savings account in the same bank or any other bank, and all pre-existing savings accounts must be closed within 30 days of opening the BSBD account.
Statement 2 is correct: To promote digital banking, electronic transactions including NEFT, RTGS, IMPS, and UPI are explicitly insulated and cannot be counted against the restricted cap of four free monthly withdrawals.
Statement 3 is correct: Guidelines strictly define a 7-day turnaround time for processing a customer's request to convert a standard savings account into a BSBD account.
Statement 4 is incorrect: The framework enforces a strict "single account" doctrine, meaning a BSBD holder is absolutely ineligible to maintain any other savings account in the same bank or any other bank, and all pre-existing savings accounts must be closed within 30 days of opening the BSBD account.