? Cool Title, but what’s the news?
Crores of no-frills accounts, including the ones opened under Pradhan Mantri Jan-Dhan Yojana, risk being abruptly frozen by banks for exceeding the limit of four withdrawals in a month.
? Okay, but what does it mean?
Banks are using the 5th debit as a trigger to convert the Basic Savings Bank Deposit Account (BSBDA) into a regular one, which would make the accounts kiable for various charges. RBI mandated savings product BSBDA provides to the customer facilities of unlimited credit, four debits every month, zero minimum balance, and no service charges.
? Why should I care?
Reserve Bank of India should put a halt to involuntary conversion of BSBDAs to regular savings account since the whole scheme was launched to promote financial inclusion. If this continues, the people are bound to be turned off to such bank accounts.
For a normal person holding a regular savings account, this news might not make a difference as such, but it is extremely important for the success of the Pradhan Mantri Jan-Dhan Yojana.
Source: DNA India
