Zero Balance Account is free from maintaining a minimum balance.
This type of savings account is offered to the specific category of customers such as salary account holders and basis of Pradhan Mantri Jan Dhan Yojana (PMJDY). PMJDY is a scheme of Central Government of India with a mission of financialinclusion.
Features of Zero Bank Savings Account
- There is no condition of maintaining a minimum Monthly Average Balance.
- There are no charges on using debit card or ATM card.
- Complimentary passbook is issued with welcome kit at the time of opening the account.
- Most of the banks offer free net banking facility to their zero balance account holders.
- Banks offer special privileges for salary account holders based on the company and institutions.
What is the different between Zero balance savings account and other savings account?
Generally, you have to maintain a minimum Monthly Average Balance (MAB) in your regular savings account.
If you have not maintained the minimum required balance in your account, so you have to pay non-maintenance charges.
Whereas, there are no charges levied for non-maintenance minimum Monthly Average Balance requirement.
Documents required for opening zero balance savings accounts
For opening the zero balance savings account, you just have to submit the basic KYC documents like identity proof and address proof.
Other benefits of zero balance savings account
- No charges for ATM cum debit card.
- Free cheque book and passbook every year.
- No charges on internet banking.
- No charges for cash deposit transaction.
Zero Saving Account under Pradhan Mantri Jan Dhan Yojana (PMJDY)
Ministry of Finance under PM Modi has started this programme with an ambitious mission for financial inclusion across the country. By this mean Government is providing easy access to financial services such as Banking, Insurance, pension etc. to all citizens of India in an affordable manner.
Benefits of Savings Account opened under PMJDY
- No need to maintain minimum balance.
- Interest on deposits as per prevailing bank rates.
- Accidental insurance cover of Rs. 1 lakh.
- Direct benefit transfer from government schemes are credited to this account.
- Overdraft facility is available after 6 months of satisfactory operation.
- Free RuPay debit card and Accident insurance cover.