What changed
RBI issued final BSBD account directions for Payments Banks via an amendment to the Responsible Business Conduct Directions, 2025, following a draft released in October 2025. The amendment inserts a definition for 'Digital Payment Transaction' and replaces paragraphs 43-49 with new instructions specifying free minimum facilities, no minimum balance, unlimited deposits, and that digital payments (excluding ATM) don't count toward the 4 free monthly withdrawals.
What it means for you
Payments Banks must now offer BSBD accounts with zero balance, free cash deposits, cheque books (25 leaves/year), ATM/debit cards, internet/mobile banking, and passbooks. Digital transactions like UPI, NEFT, RTGS are exempt from withdrawal limits, encouraging digital usage. Banks cannot force customers to take optional facilities like cards or cheque books at account opening.
What you must do
- Update BSBD account product terms to include free minimum facilities and remove minimum balance requirements by April 1, 2026.
- Ensure digital payment transactions (UPI, NEFT, RTGS, etc.) are not counted in the 4 free monthly withdrawal limit.
- Offer ATM/debit cards, internet/mobile banking, and cheque books only upon customer request, not as mandatory.
- Align charges on digital payments with RBI/NPCI/Government guidelines.
- Prepare systems to track and report compliance with the new BSBD framework.
Who it affects
Payments Banks, BSBD account holders of Payments Banks
When do these new BSBD rules take effect?
The directions come into effect on April 1, 2026, or earlier if the Payments Bank adopts them voluntarily.
Are digital transactions counted in the 4 free withdrawals per month?
No. Digital payment transactions like UPI, NEFT, RTGS, IMPS, and Point of Sale transfers are excluded from the withdrawal count.
Can a Payments Bank charge for issuing a passbook or continuation passbook?
No. Passbooks or monthly statements must be provided free, and continuation passbooks on exhaustion of pages cannot attract any charge.