All You Need To Know About SBI Zero Balance Savings Account

Basic Savings Bank Deposit (BSBD) account of State Bank of India (SBI) was founded as a savings account that provides the account holders with certain minimum services for free. SBI has also recently clarified the charges levied on account holders for digital transactions in BSBD accounts that go beyond the first four free transactions. Also, at the time of account opening, there is no need for a minimum balance, and customers are given a free ATM-cum-debit card. The facilities of deposit and withdrawal are also free. In addition, the bank is prohibited from charging fees for inactive accounts that are not activated.

Key takeaways of SBI Zero Balance Savings Account

Any individual can open this account as long as he or she has legitimate KYC documents. Designed mostly for the disadvantaged parts of society to enable them to begin saving without incurring any fees or charges. The below are some of the account's upsides.

• This account is available at all SBI-bank branches of the country
• No need of minimum balance amount
• No upper limit on maximum balance
• This account doesn't come with cheque book facility.
• Cash withdrawals are only possible using withdrawal form at bank-branches or via ATMs.
• Upon successful account opening the account holder is issued with a basic Rupay ATM-cum-debit card. The basic RuPay ATM-cum-Debit card will be issued free of charge, and there will be no annual maintenance fee.
• Singly, jointly, or with either or survivor, former or survivor, anyone or survivor etc are eligible for the account.
• Transactions made through electronic payment channels like NEFT/RTGS will be free of cost.
• Cheques drawn from a state or central government bank will be free to deposit and collect.
• No fees on activation of inoperative accounts
• No account closure fees.
• If the customer have a Basic Savings Bank Deposit Account, he or she cannot open another Savings Bank Account. Whereas, if the customer have a Savings Bank Account, it must be closed within 30 days of the Basic Savings Bank Deposit Account being opened.
• In a month, you can make up to four free cash withdrawals, including ATM withdrawals at your own and other Bank's ATMs.
• SBI provides the same rate of interest on zero balance accounts as it does on regular savings accounts. On deposits of up to and exceeding Rs 1 lakh, the bank provides a 2.70 percent annual interest rate.

SBI Clarifies On Charges Collected In Zero Balance Savings Accounts

The Reserve Bank of India mandated that banks are free to impose reasonable charges in BSBD accounts beyond 4 free transactions in August 2012, according to SBI's clarification statement. Customers will be able to choose whether or not to use such additional services. As a result, SBI started charging for debit transactions in BSBD accounts after the first four free transactions on June 15, 2016, with advance notice to customers. The Central Board of Direct Taxes (CBDT) urged banks in August 2020 to refund all charges collected on or after January 1, 2020 on transactions conducted using the digital mode and not to levy charges on potential transactions conducted using such modes. SBI has refunded the charges recovered in respect of all digital transactions to BSBD customers w.e.f. 01.01.2020 to 14.09.2020, as per the directives, according to the lender. SBI has also discontinued recovering charges in such accounts for all digital transactions as of September 15, 2020, while keeping charges on cash withdrawals above the monthly limit of four free withdrawals.