One would have noted that banks have started offering basic savings account (BSA) and basic current account (BCA), with no overdraft facility, to all Malaysians including permanent residents. Generally, BSA and BCA are deposit products for customers who want a "no-frills" account which can meet their general banking needs. The move is in line with the "Basic Banking Services Framework" issued by Bank Negara to ensure that Malaysian public, particularly the lower income consumers, continues to have access to the commonly used banking services at minimal costs in an increasingly competitive environment.

Apart from low initial deposit requirement to open accounts, BSA and BCA accountholders are allowed to perform the following minimum services without charges:-

Minimum services

• Cheque and cash deposits;
• Withdrawals via ATMs and Over-the Counter (OTC);
• Fund transfers within the same banking institutions;
• Bill payment facility as offered by the banking institutions; and
• MEPS Interbank-GIRO (an electronic fund transfer payment system for interbank payments up to a maximum of RM100,000 per transaction);
• Issuance of cheques with no overdraft facility (applicable to BCA only)

In utilizing the services provided, BSA and BCA accountholders are entitled to at least 16 monthly transactions for each account comprising the following:-

Minimum monthly transactions

• 6 Over-the-Counter (OTC) visits for account enquiries, withdrawals, fund transfers within the same banking institution and bill payments; (OTC visit is defined as one visit to the bank's counter irrespective of the number of transactions performed.)
• Free ATM cash withdrawal transactions. There is no limit on ATM transactions that are not cash withdrawal (e.g. balance enquiry of fund transfer within the same banking institution); and
• 2 interbank-GIRO transactions at a maximum fee of RM0.50 per transaction.

BSA and BCA accountholders of banks which do not have either ATM and/or GIRO facilities will be able to perform the above transactions OTC. Alternatively, account holders may choose the option to pay an annual fee of not more than RM8, where they are entitled to perform unlimited ATM withdrawals and OTC transactions as well as a minimum of 2 GIRO transactions per month at RM0.50 per transaction.

For the convenience of BSA and BCA accountholders of banks which have internet banking facility, they are also entitled to the following services free of charge:-

Internet Banking services

• Fund transfer facility (with an exception of GIRO facility where banks may impose charges)
• Online bill payment (facilities within the same banking institutions); and
• Account enquiries (including but not limited to account balance/summary, account statement and transaction history)

Some banks have provided banking services to BSA and BCA account holders that are beyond the minimum requirements stipulated in the framework such as accessing one's account via telebanking or mobile banking services or issuance of passbook to BSA accountholders in place of the ATM mini statement.

Customers should contact their banks to determine whether their existing accounts qualify as BSA and BCA and the procedures for opening new BSA and BCA accounts. Additionally, they may access the information in the respective bank's website.

The addition of BSA and BCA to the existing array of bank's product offerings will certainly help to inculcate a strong savings culture amongst Malaysians. Bank will continue to offer innovative products with greater value added features to cater to the everchanging needs of their customers.

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