RBI Announces New Benefits for Zero Balance Account Holders: A Boost to Digital Banking
The Reserve Bank of India announced three consumer-centric measures on Wednesday, aimed at improving access and services for bank account holders. The changes include expanded benefits for Basic Savings Bank Deposit accounts, strengthened grievance redressal mechanisms and inclusion of rural cooperative banks under the RBI Ombudsman Scheme, Governor Sanjay Malhotra said during his Monetary Policy speech.
What are Basic Savings Bank Deposit Accounts?
Basic Savings Bank Deposit (BSBD) accounts are basic bank accounts mostly operated by low-income customers. They offer deposit and withdrawal facilities and are often used for receiving government benefits. These accounts do not require a minimum balance, making them an attractive option for those who cannot maintain a minimum balance in their accounts.
Expanded Benefits for BSBD Account Holders
BSBD account holders will now have access to a wider range of services, including mobile and internet banking, without any minimum balance charges. These accounts already do not require a minimum balance. The expansion ensures that all BSBD holders can perform online transactions, pay bills, and transfer funds conveniently, making digital banking formally available to every account holder.
Strengthened Grievance Redressal Mechanisms
The RBI also proposed strengthening the Internal Ombudsman mechanism, which is a system within banks to address customer complaints. This will make grievance redressal faster and more effective for account holders who face issues with their banks.
“The Internal Ombudsman mechanism is proposed to be strengthened to make grievance redressal by regulated entities more effective,” Malhotra said.
Inclusion of Rural Cooperative Banks under the RBI Ombudsman Scheme
In addition, the RBI is revising the Ombudsman Scheme to include rural cooperative banks, he said, adding that the move will allow customers in rural areas and smaller towns to approach the RBI’s Ombudsman in case of unresolved complaints, giving them the same protection and recourse available to customers of commercial banks.
Impact on Digital Banking in India
The announcement is expected to boost digital banking in India, particularly in rural areas where access to banking services is limited. With the expansion of benefits for BSBD account holders, more people will be able to access digital banking services, leading to greater financial inclusion.
What Does this Mean for Indian Investors and Traders?
The announcement is a positive step towards increasing access to banking services in India. For Indian investors and traders, this means that they will have more opportunities to access digital banking services, making it easier to manage their finances and invest in the stock market.
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