Who is Eligible to Open a Zero-Balance Account?

By Ethan Sam, Correspondent  |  Monday, 28 April 2025, 07:23 Hrs


Who is Eligible to Open a Zero-Balance Account?

The banking industry has been successful in penetrating a large chunk of the Indian market. As per reports, there were 2.52 billion individual accounts in the country as of March, 2023. A large part of this has been possible due to the introduction of banking products like zero-balance accounts that are easy to open and use. Let us learn a little about these accounts, the eligibility criteria to open them, and other crucial aspects in this article.

What is a Zero-Balance Savings Account?

Easier access and a smooth zero account opening online process make these immensely popular options for a large number of Indians today. Here’s what a zero-balance account means:

  • An account where you do not have to maintain any minimum balance
  • You can open these accounts online/offline across multiple Indian banks
  • Banks otherwise follow the Quarterly Average Balance system for savings accounts. Under this method, if the balance does not meet the minimum requirements, a non-maintenance charge comes into play.
  • Zero-balance accounts do not have any of these requirements or charges.

Now let us get to the eligibility requirements for these accounts.

Are You Eligible to Open a Zero-Balance Account?

Here are the general eligibility criteria to open zero-balance accounts:

  • Should be a resident of India
  • Must be 18 years of age or above
  • Aadhar and PAN Card

Thus, anyone from students to working professionals can open these accounts at Indian banks as long as they fulfill the criteria given above. At the same time, there are some other aspects pertaining to zero-balance accounts that you should also know. Let us look at them below.

What Else Should You Know About  Zero-Balance Accounts?

Most banks offer mobile/net banking and utility payment facilities with these accounts. You can only have a single zero-balance account with one bank. A declaration is necessary while going through the zero account opening online process. This is one regulation that you should keep in mind before applying to open your account.

Here are some added aspects worth knowing.

Transactions & Withdrawals

  • Keep an eye on the transaction limit, i.e. the number of transactions you can make each month.
  • Nominal fees may also be payable for additional transaction and check whether there are any limits for deposit or transaction amounts.  
  • Most banks allow up to four withdrawals every month. If you exceed the limit, the bank may convert the existing account into a regular savings account.

Facilities/Services Offered

  • You can use debit/ATM cards with these accounts along with getting free chequebooks every year (fixed number of cheque leaves). You will have to pay a small fee if you want an extra chequebook.
  • Banks offer complimentary passbooks in their welcome kits after you open the account.

There are often special perks, offers, and privileges for those with salary accounts, depending on the institution/company category. Compare interest rates before choosing a bank to open your account (to get the best possible rates on deposits). Let us now look at the account opening process in slightly more detail.

How Can You Set Up a Zero-Balance Account?

The zero account online opening procedure involves these steps:

  • Go to the official website of the bank
  • Find the zero-balance account option and click to apply
  • Fill up the application form and upload necessary documents like your PAN and Aadhar
  • Complete the KYC verification (video-KYC facilities) and receive your account number and customer ID
  • Login through mobile/net banking to create your password and start online transactions

Here’s how to open these accounts offline:

  • Visit the nearest branch of your bank
  • Ask the bank executive about the zero-balance account form
  • Be careful while filling up the form
  • Submit copies of your identity and address proof along with a photograph and income proof (if necessary)
  • Upon successful verification, the bank will inform you through email or SMS regarding the next steps

Choose a Zero-Balance Account to Start Your Financial Journey Today

Does it make sense to open a zero-balance savings account? The answer is yes. Not only does it keep you free from minimum balance requirements and penalties, but it also helps you start your savings journey at an early age. You will find these accounts highly flexible in comparison to regular savings accounts while getting all the facilities like mobile banking, virtual debit cards, customer support, and more. This makes them a convenient choice for almost anyone, especially those starting their financial investment journey.

Some banks even offer added benefits like yearly cashback and digital payment facilities like Scan & Pay, UPI, and NEFT. The best part is that you can conveniently open your account online without any hassles. So what are you waiting for? Choose your bank and get started as soon as possible.

ON THE DECK