Zero-balance Savings Account: A Guide

The banking industry constantly strives to promote customer inclusivity, recognising its significance in meeting diverse needs. For accomplishing this, banks offer a range of schemes and facilities meant to enhance the enjoyment and convenience of banking services. One such product is the Zero-Balance Savings Account. It is tailored to meet the needs of all income groups for convenient banking.

Unlike a Savings Account, you need not maintain a minimum balance here. You can use all the general facilities without worrying about exceeding the account limit. Here is a quick overview before you decide to open a Zero Balance Account online:

Objective

It is an initiative by the Reserve Bank of India to provide banking services to all. Most banks have a prescribed limit that remains locked until account closure, called the minimum balance. Some set it for up to Rs. 2,000, while others require Rs. 10,000. This is unaffordable for low-earning income groups. Hence, such accounts aim to drive financial inclusion.

Banking facilities offered

Since this is a basic Bank Account, you get the standard facilities to conduct routine banking activities. This includes withdrawal through cheques or ATMs, electronic payment channels, a passbook, personalised Debit Card, etc. These are sufficient to carry out daily transactions.

KYC compliances

Banks need to adhere to RBI's Know Your Customer guidelines to open a Zero-Balance Account. The relevant documents include:

• PAN card
• Aadhaar
• Voter’s ID
• Driving license

You can submit these with the application form and your passport-sized photographs. You can also open an account with simplified KYC. Check with your banking partner for further guidance on this.

Interest rates

Considering it is a low-cost banking option, you can earn interest on deposits. The interest rates work like a regular Bank Account. However, this aspect primarily depends on the bank you choose. Currently, all major banks are offering this account. So, choose one wisely. It is best to visit each bank's respective portal to check the offers on the interest rates. You can also learn about their policies and account opening process.

Eligibility requirements

As a holder, you need to be an Indian citizen over the age of 18 years to open a Zero-Balance Account online. You should also ensure not to hold any other Deposit Account with the same bank. Additionally, banks offer Zero-Balance Accounts under Pradhan Mantri Jan Dhan Yojana and Salary Accounts. You qualify under the dedicated criteria respectively.

Therefore, make sure to check with your bank for proper eligibility parameters. If need be, contact the bank for appropriate assistance.