Zero balance savings account has caught everyone’s attention. In zero balance savings account, customers don’t have to keep any minimum average balance. So, you can use your money as you like.
Also read: You Don’t Have to Keep the Minimum Balance Daily
While zero balance savings account is a type of savings account, many customers have various queries on zero balance accounts. Here, we will try to answer some of the important questions on ‘no balance’ savings account.
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Among the various types of savings accounts offered by banks, a zero balance saving account is a savings bank account where account holders do not have to maintain a minimum balance in their account.
There are different types of zero balance savings account. Digital savings zero balance accounts, Basic Savings Bank Deposit Account(BSBDA) and BSBDA Small Account are the three main types of zero balance accounts.
Digital savings accounts are opened online instantly through the e-KYC process. PAN card and Aadhaar number is required to open the account. In this procedure, the Aadhaar details are verified by the OTP sent to the registered mobile number. Initially, as per the RBI guidelines, these accounts have certain restrictions.
However, many banks such as Kotak Mahindra Bank has introduced video KYC process for Kotak 811 customers who can open a full-fledged savings account without any restrictions.
Read: Video KYC: Open a Kotak 811 Full KYC account with no restrictions
Basic Savings Bank Deposit Account(BSBDA) is a zero balance account for economically weaker individuals who don’t have a bank account but they have the neccesary KYC documents.
People who don’t have KYC documents, can open a BSBDA Small account with the help of a introducer. Small savings account holders can hold a maximum of Rs.10,000. Also, customers have to submit the required KYC documents within 12 months.
Initially, digital zero balance savings come with certain limitations. These restrictions are uplifted after the full KYC process is completed.
The savings accounts are valid for 12 months. If the full KYC is not completed within 12 months, banks will close the account. If there is any balance in your account, the bank will will send the amount through demand draft to the communication address.
Customers can hold a maximum of Rs.1 lakh in their account at any point in time. Also, credit transactions in a financial year cannot exceed Rs.2 lakhs. If customers cross these limitations, banks may freeze the account. To unfreeze the account, customers have to visit the bank branch with original documents.
Zero balance accounts opened through video KYC process don’t have any such limitations.
To remove these limitations and to continue using the account, customers have to complete the full KYC procedure within 12 months. Account holders can visit the nearest bank branch or the assinged bank branch with their KYC documents. Use the branch locator on your bank’s website to find out the nearest bank branch.
If you require guidance, you can call the customer care number.
Few banks such as Kotak Mahindra Bank’s Kotak 811 allow customers to book their appointment and select the meeting place and time of their choice.
Basic savings account
Digital zero balance account
Digital account
Basic saving s account
BSBDA small account
If you do not posses these KYC documents, you must submit a self-attested photograph along with your signature or thumbprint.
Basic savings account
Customers can walk into any branch of the bank that offers basic saving account facility along with their supporting KYC documents and fill and submit the necessary application form. Also, customers can leave their details such as name and phone number in the contact form. Bank representaative will call them to guide them with the account opening process.
Instant Savings Account
Currently, many banks offer online savings zero balance accounts such as Kotak 811, digisavings that can be opened online. You can download the app or open the bank account from the bank’s website.
As mandated by RBI and government, all banks need to offer basic savings account to citizens.
Moreover, few public, private and small finance banks have introduced zero balance accounts that can be opened online.
As zero balance accounts are meant for new to bank customers, you may not be able to covert your savings account into a no minimum balance account.
