The committee suggested banks proactively guide customers via SMS, calls, or in-branch interactions. AI tools could be used to identify eligible account holders, ensuring privacy.
Banks may consider converting dormant or persistent low-balance standard savings bank accounts into zero-balance BSBDAs (Basic Savings Bank Deposit Accounts) or PMJDY (Pradhan Mantri Jan Dhan Yojana) accounts after obtaining due consent of customers, according to a Parliament panel.
The Committee on Petitions observed that although zero-balance accounts are offered by public sector banks (PSBs), many potential customers remain unaware of their availability or have apprehensions about the services offered alongside such accounts.
BSBDA and PMJDY accounts do not require maintenance of a minimum balance, and essential banking services are offered without charges.
Customer education needed
“Due to lack of awareness, customers often end up opening regular savings accounts without understanding the differences. Often, low-income customers open standard savings accounts…on account of not being made aware of the existence of Jan Dhan accounts,” per a report of the Finance Ministry’s panel chaired by Chandra Prakash Joshi, BJP Member of Parliament (Lok Sabha) representing Chittorgarh, Rajasthan.
Migration path proposed
To address this issue, Banks may, if feasible, create a structured, customer-friendly migration path in which they proactively reach out to customers via SMS, calls, or in-branch interactions to suggest switching to zero-balance accounts, per the committee’s recommendation. This will prevent the gradual depletion of funds through charges and ensure that economically vulnerable clients remain protected.
AI-driven identification
The Committee suggested that banks should use AI tools to analyse data, exercising ample caution to protect customers’ privacy, so as to identify customers whose transaction patterns meet the criteria for BSBDA or PMJDY accounts and proactively offer migration to these accounts.
Some of the suggested identification parameters may include receipt of government welfare payments, low average annual balances, or other socio-economic indicators.
Service expansion plan
The Committee also recommended that banks examine the feasibility of expanding services offered alongside BSBDA and PMJDY accounts, including increasing the number of ATM transactions per month. These measures will make zero-balance accounts more attractive, leading to increased digital transactions and stronger savings habits.
Account growth stats
The number of BSBDAs increased by 2.6 per cent year-on-year (yoy) to 72.4 crore at end-March 2025, while the aggregate balance in these accounts increased by 9.5 per cent to ₹3.3 lakh crore, according to RBI’s Report on Trend and Progress of Banking in India 2024-25.
At the end of March 2025, the total number of PMJDY accounts reached 55.2 crores, with 96.4 per cent being maintained by Public Sector Banks and Regional Rural Banks. Total deposits in PMJDY accounts increased by 12 per cent to ₹2.6 lakh crore at end-March 2025.
Savings Bank deposits of scheduled commercial banks were up by 4 per cent yoy to ₹66,16,106 crore as at March-end 2025.
Published on February 18, 2026
