Technological advancements have transformed the banking system. People no longer have to wait in long queues in front of banks. Transactions happen online. With the revolution of smartphones and the power of the internet, financial transactions have become a breeze. Opening a bank account from the comfort of your home is even possible. Digital account opening is a feature embodying the modern banking system.

Banks like 811 Kotak Mahindra Bank offer the provision to open a bank account with zero paperwork. Busy individuals can save time and leverage the power of the internet to access next-generation banking features from the comfort of their homes.

Let’s discuss more and find out the benefits of opening a zero-balance account.

What Is A Zero-Balance Account?

A zero-balance account is a basic savings bank deposit account. It is similar to a regular savings account, except there are no average minimum balance requirements. Account holders can use the account with a zero rupees balance, and no charges or penalties will incur.

What Are The Hassle-Free Banking Features That You Get With A Zero-Balance Account?

The most significant advantage of having a zero-balance account is the ease of opening it without visiting the bank. Apart from the convenience of digital account opening, the account holder also enjoys the benefit of not maintaining a minimum balance. Especially for those with limited income resources, keeping a minimum balance all the time is challenging. Besides, there are countless other banking features that an account holder is entitled to by opening a zero-balance account, such as:

Free Fund Transfer: Banks provide a seamless experience for digital transactions by offering free IMPS, NEFT, and RTGS transactions.
Hassle-free E-Commerce Transactions: Shopping online becomes easy with a zero-balance account.
Free Bank Statements: Keeping track of the finance becomes easier for zero-balance account holders.
Higher Interest Rates: Zero-balance accounts are ideal for students, small business owners, and people with limited income sources. The provision of up to 4%* p.a. interest on savings encourages such account holders to save and earn more on savings.

How Long It Takes To Open A Zero-Balance Account?

The benefits of opening a zero-balance account are clear. Below is the process of opening such accounts. Digitisation has made things easier. One can now open a zero-balance account instantly. It takes only a few minutes to complete the form and initiate the video KYC process.

Interested parties can download the mobile app and apply to open a zero-balance account. The procedure only requires Aadhaar authentication as per RBI guidelines. Users fill up the application form and get an OTP on their Aadhaar-registered mobile number to initiate the process of video KYC. The bank agent calls instantly for video KYC after which users can get login and password to access their bank accounts.

Who Is Eligible to Open A Zero-Balance Account?

RBI guidelines require Aadhaar authentication for opening a bank balance account. Additionally, it is mandatory to have a PAN card to complete the video KYC process. Account holders must be 18 years and above to be eligible for a zero-balance account. Per the RBI guidelines, the account holders should be Indian residents with valid addresses.

What Are The Charges to Open a Zero-Balance Account?

One can open a zero-balance account without paying any fee. The only charges you might have to pay are related to banking products like a physical debit card or cheque books. With no minimum balance requirements, opening a zero-balance account is a pocket-friendly choice.

Conclusion

Zero-balance accounts have made banking easier. Busy individuals should leverage the digital account opening process and enjoy savings and hassle-free fund transfers without keeping a minimum balance all the time.

Also Read: Advantages of Zero Balance Account for Financial Inclusion