Things that you do not know about Zero Balance Account
As per the new guidelines laid out by the Reserve Bank of India every bank must have (Basic Savings Bank Deposit account (BSBD) or Zero Balance Account facility for all their customers. This account is also offered by banks to all their customers under Pradhan Mantri Jan Dhan Yojana (PMJDY). A zero-balance savings account, as the name suggests, is a savings account which doesn’t require the customers to maintain a minimum balance to keep the account active. The owners of such accounts are entitled to enjoy all the basic banking facilities as offered in other savings accounts.
If you are planning to open a zero-balance account, it is important to know all its features and offerings to make the best use. Here are the details that you mayn’t know about:
- Account holder type: You can be the sole or the joint holder of your account. If you want to open an account jointly, you can include your parents, spouse, and other close relatives.
- Minimum balance: When you open a zero-balance account in any of the banks, you do not have to maintain any minimum monthly average balance or quarterly average balance. Your account with zero balance will not attract any charges for months even if you are unable to maintain any money in it.
- Annual interest rate: You will be offered with the same annual interest rate on your savings that the bank offer on other standard savings accounts. This means even when you have a zero balance account you can enjoy annual interest on your deposit at prevailing bank rate.
- Withdrawal facility: Your zero-balance account have maximum withdrawal limit of four times in a month. The withdrawals can be made through ATM/NEFT/RTGS or bank transactions.
- Debit card type: You will be issued with a Rupay ATM–cum-debit card against your zero-balance account. The card is equivalent to a savings account debit card and you can use it to withdraw money from your account whenever required.
- Zero ATM card charges: You do not have to pay any annual maintenance charge for your RuPay–ATM-cum-Debit card issued against your account. The ATM card will be free of cost.
- International usage of debit card– The RuPay ATM-cum-debit card issued with your zero balance account can be used only in India. International transactions can’t be done with this card.
- Maximum credit limit: The total credit in a zero balance account should not exceed Rs.1 lakh in a financial year. This means you can put together a total amount of credit of up to Rs.1 lakh in your zero balance account.
- Maximum number of allowed deposits: As per the new guidelines of the Reserve Bank of India 2019, you can make deposits in the account any number of times you want with no upper limit for deposit.
- Maximum withdrawal allowed: You are permitted to withdraw or transfer a maximum amount of Rs.10,000 in total from the available balance in your account in a given month. This amount can be debited from your account either by way of multiple withdrawals/transfers or at once.
- No foreign remittances- Your zero-balance account is not allowed to have any foreign remittances. That means you can’t do any foreign transaction for this account. Your transactions need to be limited to India only.
- Insurance cover: When you open a zero-balance savings account under PMJDY, you will get an Accidental Insurance Cover of Rs.1 lakh.
- Additional facilities: Apart from the basic facilities that are outlined by RBI, your bank can offer additional facilities like free cheque book, specific number of free transactions every month, enhancement on transaction limit, maximum deposit limit etc. All additional facilities can be availed at zero additional charges.
- No account closure charges: Zero balance savings accounts don’t carry any account closure charges. You can close your account whenever you want to without paying any amount as penalty.
- Pradhan Mantri Jan Dhan account: On opening a zero balance account under PMJDY, you will get an Accident Insurance Cover of Rs.1 lakh. It also offers a life cover of Rs.30,000 which will be paid on the death of the beneficiary subject to certain terms and conditions. Overdraft facility of up to Rs.5,000 will be made available after 6 months of satisfactory transaction for only one account per household, preferably for the woman beneficiary of the house.
- No additional accounts allowed: You are not eligible to have a zero-balance account and a standard savings account in the same bank. If you open a zero-balance account in a bank where you already have an existing savings account, you must close the standard savings account within 30 days of opening the new account. If you don’t close it within the stipulated time, the bank will automatically close it.
- All banks provide BSBD account: Yes, all the banks of India under RBI must provide zero balance account facility to their customers. Banks are not allowed to deny your request for zero balance account in any of their branches.
- NRI zero balance account: NRIs are not allowed to open a zero balance account in any bank of India as per the RBI guide lines.
How to open Zero Balance Account?
In order to open a zero balance account, visit the nearest branch of the bank in which you want to open the account. Submit all the documents that are asked for. If you don’t have all the required documents, make sure to provide the basic KYC documents such as identity proof and address proof. The bank will verify the documents and if everything is fine, your account will be opened. Once the account is opened, you will be provided with a RuPay debit card, which you can use for performing normal transactions.
You can also open a zero balance savings account online. Either visit the official website of the desired bank and apply for a Basic Savings Balance Account online or apply for it through other trusted third-party websites such as BankBazaar.com
While opening a zero–balance account you can choose any bank based on your past experiences and trust factor. However, keep in mind that when you open a zero balance account in a specific bank you cannot have a savings account in the same bank.
Find More Details at https://www.bankbazaar.com/savings-account/zero-balance-saving-account.html