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BSBDA Accounts: No Penalty for Missing Minimum Balance

14 March 20261 min read
BANKING & FINANCEBSBDA Accounts:No Penalty forMissing MinimumBalance14 March 2026safalsetu.com

Why in the news

The Finance Minister clarified in Parliament that basic savings accounts, Jan Dhan ones included, cannot attract charges for keeping too little money.

Key facts

  • Said by: Nirmala Sitharaman.
  • Scope: BSBDAs, including PM Jan Dhan Yojana accounts.
  • Operational BSBDAs: about 720 million.
  • Nature: zero-balance accounts, no minimum needed.

About BSBDA

A no-frills savings account brought in by the Reserve Bank of India so that low-income and unbanked people can use basic banking, savings, credit, insurance and government benefits.

Exam angle

  • Introduced by: RBI.
  • Linked scheme: Jan Dhan Yojana, for financial inclusion.

Test yourself

1. Which type of account is exempt from minimum-balance penalties, as stated in Parliament by the Finance Minister?

BSBDAs, including Jan Dhan accounts, carry no such penalty.

2. Approximately how many BSBDAs are operational in India per the notes?

About 720 million BSBDAs are operational.

3. Which institution introduced the Basic Savings Bank Deposit Account to promote financial inclusion?

The RBI introduced the no-frills BSBDA.