Open a zero balance current account and execute banking transactions seamlessly without maintaining a minimum balance.
A zero balance current account allows you to carry out banking activities like transactions, withdrawals, and transfers without maintaining a minimum balance. This type of current account could be ideal for professionals or businesses that require flexibility in terms of financial services.
Most banks require you to maintain a minimum balance of ₹10,000 or more in current accounts. Typically, these accounts do not provide any interest on your deposits, unless specified otherwise.
Benefits of a Zero Balance Current Account
Here are some advantages of opening zero balance current accounts:
No Minimum Balance Requirement
Since you do not need to maintain a minimum balance, it gives you the flexibility to manage the account effortlessly
Overdraft Facility
Some banks offer an overdraft facility allowing your business to access funds up to a predetermined limit during fund shortages
Efficient Financial Management
These accounts could help enhance personal and business financial management with features like cheque books, online banking, and 24x7 support availability
Convenient Account Opening Process
Most banks offer the convenience of digital application, allowing you to apply online with minimal eligibility and documentation requirements
Transactional Advantages
You can enjoy unlimited deposits and withdrawals without incurring additional charges.Here are some eligibility criteria you may have to fulfil to open a zero balance current account:
Resident individuals
Sole proprietorship firms
Partnership firms
Private and public companies
Hindu Undivided Family (HUF)
To open a zero balance current account, you may also be required to submit certain documents. These may include:
Photographs: 2-3 latest passport-size photographs
Identification Proof: Aadhaar Card, PAN Card, Passport, and Driver’s Licence
Address Proof: Utility bills, bank statements, and rental agreements
Business Documents: Certificate of Incorporation, Article of Association (AOA), Memorandum and Articles of Association (AOA), Partnership Deed, and GST number
KYC Form: Know Your Customer (KYC) form provided by the bank
Note: The eligibility parameters and documents required for account opening may vary across banks.
Here are some steps you may be required to take while opening a zero balance current account online:
Visit the official website of the bank
Navigate to the account opening section and download the application form
Carefully fill in your personal and business details
Submit the application form with the required KYC documents
Once done, the bank will verify the information and notify you once your account is opened. Alternatively, you could visit the nearest bank branch and open an account.
Note: The account opening process (online and offline) may vary between banks.
Frequently Asked Questions
What does a zero balance current account mean?
When you open this account, you have no obligation to maintain a minimum balance at the end of the month. This is also known as the monthly average balance or minimum average balance.
Can I open a zero balance current account online?
Yes. You could visit your preferred bank’s official website and get started with the account opening process. Since these processes vary between banks, it’s best to check the necessary parameters beforehand.
What is the meaning of Monthly Average Balance (MAB)?
Also known as the minimum average balance, MAB is the closing balance of your account for each day throughout the month. However, you do not need to maintain MAB in a zero balance current account.
Can I open a zero balance current account even if I do not have a GST number?
Yes, you can open this current account without a GST number. However, it’s best to check the documents criteria listed by the bank on their website.
Can I withdraw cash from a zero balance current account using an ATM?
Yes, you can withdraw cash from an ATM when required.
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