Technology has entered our lives in many ways. There is a full-fledged digital bubble around all of us, and banking is also a crucial part of it. Whether you are shopping online or need digital payment methods to pay utility bills, the importance of Internet banking is recognised by many of us in one way or another. This is when the provision of a 0 balance account open seems useful.
Zero-balance bank account schemes came into existence long ago, but these digital banking schemes became popular after the pandemic, when banking became fully digitised.
Here is a helpful guide for those who want to open a zero-balance digital bank account but need to know more about it.
What is a zero-balance account?
Gone are the days when account holders faced penalties for not maintaining the minimum required balance in the account. But now you can keep your bank account with absolutely no balance in it without being penalised. As the name suggests, a zero balance account is a bank account that permits a zero balance in it without any charges.
Is a zero-balance account different from a savings account?
A zero balance account is a type of savings account that can be used as per RBI guidelines. The only difference between a zero balance account and a usual savings account is the minimum balance requirement. In the case of a savings account, on not maintaining the minimum value, account holders face charges, whereas there are no penalties charged in the case of a zero balance account, even when there’s no money in it.
What are the benefits of a zero-balance account?
Rather than opening a normal savings account, everyone should opt for a zero-balance account. It offers plenty of benefits over the usual savings account, such as:
- You don’t need a minimum monthly balance.
- You don’t have to worry about penalties for not maintaining the minimum monthly balance.
- You can open a zero balance digital bank account quickly, and the eligibility criteria are very simple for account holders.
Who is eligible to open a zero-balance account?
According to the RBI guidelines, anyone 18 years of age or older can open a zero balance account. The account holder must have a valid Aadhar card linked to a mobile number and a PAN card to complete the video KYC.
How to open a zero-balance account?
A zero balance account needs online verification of PAN and Aadhar card, so make sure you are familiar with the process, which is very easy, and a 100% digital application process, so you don’t have to visit a bank branch to open an account.
- Visit the bank website where you want to open the account.
- Submit your PAN and Aadhar card information.
- Fill in the necessary details and proceed to complete the video KYC.
Video KYC is the process where the bank employees conduct a video call to confirm your identity and verify the PAN and Aadhar card information furnished by you at the time of application.
What are the documents required for a zero-balance account?
As stated above, your Aadhaar card and PAN card are mandatory for account opening. Apart from this, you will need your photograph, voter ID, address proof, etc.
How to open a zero-balance bank account without a PAN card?
You can open a zero balance account only after completing the video KYC, which requires valid Aadhaar and PAN cards. If you don’t have a PAN card, you may not be eligible to open the account.
Keep in mind that a PAN card is essential to opening a zero-balance digital bank account, and if you don’t have one, apply for one right now to not miss out on the benefits of having a zero-balance account.
How long does it take to open a zero-balance account?
It takes only a couple of minutes to fill out the application form for the bank account. After which, you will receive a call to complete the video KYC. The entire process of application and information verification takes only a few minutes.
Bottom line
This 0 balance account open guide can be a lifesaver for those who like to embrace the digitization of the banking system. Having a zero-balance account is beneficial over a savings account. You can open an account from anywhere; no branch visits are needed.
So what are you waiting for? Create your account and manage your money online.