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11 Questions You Always Wanted to Ask about Zero Balance Savings Account

Kotak 811 savings account

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.

zero balance savings account
What is a Zero Balance Account?

1. What is a Zero Balance Bank Saving account?

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.

2.What are the different types of zero balance accounts?

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.

3.What are the limitations on digital zero balance accounts?

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.

4.How can I remove the limitations on online zero balance account?

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.

5.How does the zero balance savings account differ from regular savings account?

  • Zero balance savings don’t have any minimum average balance requirement. Regular savings account have minimum average balance that customers have to maintain on a monthly or quaterly basis.
  • Individuals can open zero balance savings account online instantly. On the other hand, to open a regular savings account, one needs to visit the bank branch and fill up paper forms.
  • Zero balance have certain restrictions on account balance, transactions, total credit amount etc. Regular savings account dont have such limitations.
  • Aadhaar number is necessary to open a online zero balance savings account. Customers opening a regualr savings account have the option to use any other document such passport, voter’s card, driving license etc. to open the account.

6.What are some of the features of a zero balance bank account?

  • No need to maintain any minimum average balance
  • Free virtual debit card facility for online zero balance account holders and free RuPay debit card for basic savings acccount holders.
  • Free account passbook and cheque book facility for basic savings account customers. Online zero balance account holers need to complete the full KYC before opting for passbook or cheque book.
  • Customers of instant zero balance account get free online transactions.
  • Basic savings accounts and most digital 0 balance account don’t have any initial cash deposit requirement when opening the account.
  • Basic savings account customers can open joint savings account. However, most online no balance accounts are meant for individual use only.

7.Who can open a zero savings account in a bank?

Basic savings account

  • A resident of India (for both sole and joint accounts) above the age of 18
  • Member of the Hindu undivided family
  • Must not be having any other savings account with the bank.
  • For a self-operated minor account, the minor must be above the age of 10.

Digital zero balance account

  • Indian resident individuals above 18 years of age
  • Individuals who dont have any existing relationship with the bank
  • People who haven’t opened an online savings account through the Aadhaar OTP process.

8.What documents are required to open a zero balance account?

Digital account

  • PAN number
  • Aadhaar number

Basic saving s account

  • Photo ID Proof (as specified as an acceptable document by the bank)
  • Address Proof (as specified as an acceptable document by the bank)

BSBDA small account

If you do not posses these KYC documents, you must submit a self-attested photograph along with your signature or thumbprint.

9.How to open a 0 balance bank account?

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.

10.Which banks offer zero balance savings account?

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.

11. Can I convert my regular savings account to no minimum balance account?

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.

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