A Basic Savings Bank Deposit Account (BSBDA) is a simple and accessible banking option designed to help individuals manage their funds without the burden of maintaining a minimum balance. However, knowing the BSBDA account limit is essential to ensure smooth transactions while staying within the guidelines set by the Reserve Bank of India (RBI).
If you’re wondering how much you can deposit, withdraw, or transact within a month, this guide will break down everything you need to know about BSBDA account limits, restrictions, and benefits to help you make informed financial decisions. Let’s explore the details.
Table of contents
What is a BSBDA Account?
The full form of BSBDA is Basic Savings Bank Deposit Account. It is a no-frills savings account designed for financial inclusion. BSBDA allows individuals to perform basic banking transactions under BSBDA account limits without maintaining a minimum balance.
Check out the features of BSBDA accounts below-
- Zero minimum balance requirement.
- Free ATM-cum-debit card.
- A limited number of withdrawals and deposits per month.
- No restrictions on the number of deposits.
- Available at all banks, including HDFC BSBDA accounts and other major banks.
- Suitable for individuals with low or irregular income.
Also Read: Check out this blog on how to open a student bank account online. Explore the easy steps for a hassle-free process.
BSBDA Account Limits as per RBI Guidelines
The Reserve Bank of India (RBI) has established specific guidelines for BSBDA account limits to ensure these accounts serve their purpose of financial inclusion while preventing misuse. These limits cover deposits, withdrawals, and transaction caps, ensuring controlled usage within a regulated framework.
| Feature | BSBDA Account Limit |
| Maximum Balance | INR 50,000 at any time |
| Maximum Annual Credit | INR 1,00,000 per year |
| Maximum Monthly Withdrawals | 4 free transactions |
| Deposit Limit | No restriction |
| ATM Withdrawals Included | Yes, part of the 4 free transactions |
| Penalty for Exceeding Limits | Conversion to a regular savings account or charges |
Deposit and Balance Limit
As per the BSBDA Account RBI Guidelines, there is no restriction on deposits; however, the account balance should not exceed INR 50,000 at any point. This ensures that the account remains a basic savings option and is not used for large financial transactions.
For example, if an individual deposits INR 20,000 in a month, they can still deposit more as long as the total balance does not exceed INR 50,000.
BSBDA Account Withdrawal Limit & Transaction Restrictions
The BSBDA account withdrawal limit allows a maximum of four free withdrawals per month, which include ATM, online, and branch withdrawals.
If a customer attempts a fifth withdrawal in the same month, additional charges may apply, or the bank may suggest converting the account into a regular savings account.
There is no limit on deposits, allowing users to save as per their capacity.
The total cumulative credit transactions should not exceed INR 1,00,000 in a financial year. If someone receives frequent deposits from multiple sources exceeding this threshold, they might be required to upgrade to a regular savings account.
Debit Card and ATM Usage
Free ATM withdrawals are included in the four free monthly transactions, which also makes BSBDA one of the best bank accounts for students.
Additional ATM withdrawals beyond this BSBDA account limit may attract bank-specific charges.
Some banks may offer free ATM usage within their network but charge fees for interbank ATM transactions beyond the permitted limit.
For example, an individual who withdraws INR 5,000 from an ATM four times in a month would have reached their limit. If they attempt a fifth withdrawal, they may incur a charge or be prompted to upgrade their account.
Also Read: Check some of the FAQs about international bank accounts for students studying abroad. Know all about it in this blog.
Charges for Exceeding BSBDA Account Limits
Exceeding the BSBDA account limit can result in penalties or even conversion of the account into a regular savings account. The Reserve Bank of India (RBI) has set specific guidelines regarding deposit, withdrawal, and transaction limits, and banks impose charges when these limits are crossed.
Understanding these charges can help account holders avoid unnecessary fees and manage their accounts effectively.
- The BSBDA account withdrawal limit permits only four free withdrawals per month, including ATM, online, and branch transactions.
- If a customer exceeds this limit, additional withdrawals may attract charges, which vary by bank. For example, HDFC BSBDA account charges may apply for the fifth and subsequent withdrawals.
- Some banks allow free withdrawals within their network but impose fees for interbank ATM usage beyond the allowed limit.
- Banks may charge INR 20-INR 25 per ATM withdrawal if the BSBDA account limit is exceeded.
- For example, if a customer withdraws INR 5,000 from an ATM four times in a month and attempts a fifth withdrawal, they may face a charge of INR 20-INR 50, depending on the bank.
Penalties for Exceeding Balance & Credit Transaction Limits
If the total balance in a BSBDA account exceeds INR 50,000 at any time, banks may either freeze the excess amount or request the customer to upgrade to a regular savings account.
If cumulative credit transactions exceed INR 1,00,000 per financial year, the account may be reclassified into a standard savings account with applicable charges and minimum balance requirements.
For instance, if a student receives multiple scholarship deposits totalling over INR 1,00,000 in a year, their BSBDA account may no longer remain eligible, and the bank could notify them about the upgrade.
Conversion to a Regular Savings Account
If a BSBDA account surpasses multiple limits frequently, banks may suggest converting it into a regular savings account.
A converted account may require maintaining a minimum balance, incurring maintenance charges if the balance is not maintained.
By being aware of these charges and maintaining transactions within prescribed BSBDA account limits, customers can maximize the benefits of their accounts while avoiding unnecessary penalties.
To sum up, a BSBDA account is a great option for individuals seeking basic banking services with no minimum balance requirement.
However, understanding the BSBDA account limit, BSBDA account withdrawal limit and BSBDA Account RBI guidelines are essential to avoid unnecessary charges and account restrictions. If you need more flexibility, consider a regular savings account instead.
FAQs
The total balance should not exceed INR 50,000 at any point.
Total credits should not exceed INR 1,00,000 in a year.
The daily cash withdrawal limits for a BSBDA account depend on the bank:
– HSBC: Offers a daily ATM cash withdrawal limit of INR 25,000.
– HDFC Bank: Allows a maximum of 4 free withdrawals per month through any mode. For subsequent withdrawals, charges are applicable.
– PNB: Account holders are allowed a maximum of four withdrawals in a month.
– SBI: Provides a maximum of 4 cash withdrawals free of cost in a month, including ATM withdrawals.
RBI Guidelines: Initially, the total debits, including cash withdrawals and transfers, should not exceed INR 10,000 in a month.
A maximum of four withdrawals are permitted per month, including all modes like ATM, NEFT, and branch withdrawals.
The cash withdrawal limit from own and other domestic ATMs is INR 10,000 per transaction.
Further credit transactions will be blocked until the balance goes below INR 50,000. If credits exceed INR 1,00,000 in a financial year or withdrawals exceed INR 10,000 in a month, further transactions will be restricted.
Charges will apply for each withdrawal beyond the initial four free withdrawals per month.
Yes, the BSBDA is considered a normal banking service available to everyone, as per RBI guidelines.
It is a basic savings account for individuals without complete KYC documents, having certain restrictions on deposits and withdrawals.
A BSBDA account offers deposit and withdrawal facilities, an ATM card, and the receipt of money through electronic channels.
BSBDA Small Accounts have restrictions on maximum balance (INR 50,000), total credits (INR 1,00,000 per year), and total withdrawals (INR 10,000 per month), while regular BSBDA accounts might not have these strict limitations.
To learn more about education loans, the best bank accounts for students, forex, banking experience for global students, or international money transfers, reach out to our experts at 1800572126 to help ease your experience with studying abroad.
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