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The Reserve Bank of India (RBI) has issued the Local Area Banks – Responsible Business Conduct (Amendment) Directions, 2025 to strengthen basic banking services and financial inclusion for customers of Local Area Banks (LABs). These amendments update the responsible conduct framework for Basic Savings Bank Deposit (BSBD) accounts, ensuring affordable and customer‑friendly facilities. Under the revised norms, LABs must offer BSBD accounts with free core services such as unlimited deposits, ATM/debit cards without annual fees, a minimum 25‑leaf cheque book, internet and mobile banking, and passbooks or emailed statements at no cost. At least four free withdrawals per month must be permitted, and digital payments are excluded from withdrawal counts. Existing BSBD account holders can request newly introduced free features, and customers may convert existing savings accounts to BSBD accounts. These directions take effect from April 1, 2026 or earlier upon adoption by the LAB.