What Is An Online Bank Account With Zero Balance?
An online bank account with zero balance or a zero balance account is a bank account that can be withdrawn fully, with an account balance of nil. The Reserve Bank of India set out a mandate for all banks to offer zero balance accounts or ‘Basic Saving Bank Deposit Account.’ These accounts have no minimum balance requirements.
How To Open An Online Bank Account with zero balance?
To open an online bank account with zero balance an individual needs official identity and address proof documents. Basically, a customer has to submit KYC details to open a bank account and to receive foreign remittances.
A customer can open a bank account with:
- Simplified KYC documents – Account has a cap of INR 1,00,000 and such an account cannot receive foreign remittances.
- Complete KYC documents – No upper account cap.
- Self-attested photo and thumbprint/signature – Account has a cap of INR 1,00,000 and complete KYC documents have to be provided within 12-24 months.
Key Features/Advantages Of An Online Bank Account With Zero Balance
The key features/advantages of an online bank account with zero balance are:
- No minimum balance. Other banks may or may not have a penalty for following below minimum balance on regular bank accounts.
- No age and income restrictions when opening a bank account with zero balance.
- A similar rate of interest as regular bank accounts and thus has the same advantages as a regular account.
- Banks charge an additional fee after 4 withdrawals (for example, ATM, NEFT, RTGS, etc.) in a month.
Pradhan Mantri Jan Dhan Yojna (PMJDY)
Customers can also open bank accounts under the PMJDY scheme. To open an Online Bank Account With Zero Balance under PMJDY, the following conditions apply:
- As per KYC guidelines, all documents required must be filed.
- The bank offering the scheme has their own terms and conditions.
- The maximum balance a PMJDY account can hold is INR 50,000.
- The maximum balance a PMJDY account can hold in a year is INR 1,00,000.