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Corporate Laws Central Ministry of Finance Reserve Bank of India Act, 1934

RBI issues RBI (Small Finance Banks - Responsible Business Conduct) Amendment Directions, 2025

04-Dec-2025 | RBI/2025-26/104 DOR.MCS.REC.No.311/01-01-033/2025-26

RBI has issued RBI (Small Finance Banks - Responsible Business Conduct) Amendment Directions, 2025 effective from 01st January 2026 or on the date of adoption by banks.

Key Highlights:
1. A new definition has been added stating that "Digital Payment Transaction" will have the same meaning as "Electronic Funds Transfer" under the Payment and Settlement Systems Act, 2007.
2. Banks must offer a BSBD (Basic Savings Bank Deposit) Account as a standard savings account with essential services provided free of charge and without requiring any minimum balance.
3. Free basic facilities include - cash deposits, unlimited monthly deposits, receiving funds electronically or via cheque, a free ATM/ATM-cum-Debit Card (no annual fee), at least 25 free cheque leaves per year, internet/mobile banking, and a free passbook or monthly statement.
4. Customers can make at least four free withdrawals per month, including ATM transactions. Digital payments (UPI, NEFT, RTGS, IMPS, PoS, etc.) are not counted as withdrawals and charges for these will follow applicable RBI/NPCl/government rules.
5. ATM card, cheque book, and digital banking facilities must be provided only if the customer requests them. Banks cannot force customers to opt for these services while opening or operating a BSBD account.
6. Banks must follow KYC/AML rules, cannot ask for an initial deposit, must allow conversion of a regular savings account into a BSBD account within 7 days, ensure the customer holds only one BSBD account across banks, and must clearly publicise the BSBD account features and differences from other savings account types.


For more information, please refer to the attached document.

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