In an attempt to bring financial services to those less fortunate in the country, Canara Bank has rolled out the Basic Savings Deposit Account. A Basic Savings Deposit Account can be opened with minimum requirements, yet the privileges it comes with are numerous. A Canara Bank Basic Savings Deposit Account is a zero-balance savings account and can be opened by any resident of India.
Features and benefits of Canara Bank Basic Savings Deposit Account
- The primary benefit of the Canara Bank Basic Savings Deposit Account is that it is a zero-balance savings account. With this account, there is no minimum balance requirement as with other savings accounts and there are no maintenance charges.
- Free debit card at the time of opening the account.
- With the online banking facility, customers can make transactions, transfer funds, shop online, etc., without any charges.
- A customer is allowed four free withdrawals from other bank ATMs a month. Once the customer has exceeded the withdrawal limit, a service charge of Rs.5 will be levied on every transaction.
- No penalty charges for inoperative accounts.
- As soon as a customer opting for the Canara Bank Basic Savings Deposit Account has opened the account, he/she is granted a passbook.
- The minimum deposit and withdrawal limit from the bank is Rs.10. From ATMs, the minimum withdrawal limit is Rs.100.
- Customers can make use of online banking to transfer their account from one branch to another, anywhere within the country.
- Customers holding the Canara Bank Basic Savings Deposit Account can nominate a person from their family.
- Since this is a Canara Bank Basic Savings Deposit Account, the total balance at any part of the year should not exceed Rs.50,000. That said, at any given point of time, the credit should not exceed Rs.1 lakh. If the customer fails to adhere to these norms, the bank will request the customer to submit his/her KYC documents. Failure to do so and the bank is entitled to close the account.
Fees and charges
|Opening Account Charges||Nil|
|Initial Deposit Requirement||Nil|
|Minimum Balance Requirement||Nil|
|Inoperative Account Charges||Nil|
|Premature closure of account within 1 year||Nil|
|Outstation Cheque||Rs.25 to Rs.250|
|Debit Card Annual Fee||Free|
|Annual Credit limit||Rs.1 lakh|
|Annual Balance Limit||Rs.50,000|
|Debit Card replacement||Rs.100|
|Debit Card PIN regeneration||Rs.150|
|Transactions at Canara Bank ATMs||Free|
|Transactions at other ATMs||
Eligibility criteria for the Canara Bank Basic Savings Deposit Account
- Any individual that is a resident of India is eligible to open a Canara Bank Basic Savings Deposit Account.
- For joint accounts, not more that 4 accounts can be clubbed together.
- For minors who wish to open a Canara Bank Basic Savings Deposit Account, the parents or guardians have to open the savings account on behalf of their child. All that is required while opening the account is the birth certificate of the minor. The account will be under the name of the minor.
- Customers who wish to open a Canara Bank Basic Savings Deposit Account should not have a savings account in any other bank. If they do have another savings account, the bank will close the account immediately.
Documents required to open a Canara Bank Basic Savings Deposit Account
- The first thing that customers need to do is to fill the application form of the Canara Bank Basic Savings Deposit Account. The form can be accessed online or at any Canara Bank branch.
- Identity proof - Passport, Voter’s ID, Driver’s license, Aadhaar card, etc.
- Address proof - Passport, Voter’s ID card, driver’s license, etc.
- Two latest passport size photographs of the applicant.
Limitations of the Canara Bank Basic Savings Deposit Account
As the Basic Savings Deposit Account has been rolled out by the government and banks across the country for people that are less fortunate and find it difficult to get access to financial services, the Basic Savings Deposit Account comes with some limitations. Because there are minimum requirements when getting enrolled, the Basic Savings Deposit Account comes with a balance and credit limitation.
- At any point of the year, the balance in the account should not exceed more than Rs.50,000.
- The credit as well should not exceed Rs.1 lakh.
- Transfer of funds from foreign accounts are not permitted.
If the account holder fails to adhere to these norms that have been issued by the Reserve Bank of India, the account holder will have to submit his/her KYC documents. Failure to provide the documents will entitle the bank to close the Canara Bank Basic Savings Deposit Account.
The basic savings deposit account was brought about as a result of the financial inclusion drive in the country. With this account, the KYC norms are relaxed, yet the privileges of holding the account are many.