The banking sector has flourished, thanks to technological changes. Today, you can do so much more with your Savings Account other than withdrawals and deposits. While they do not incur any significant charges, there are still some costs associated with it. One such penalty is applicable when you fail to maintain a minimum average balance. Considering the limit in top banks is up to Rs. 10,000, this becomes difficult.
To make it easier and affordable for everybody, you have a Zero-Balance Savings Account. It is a government scheme under the Pradhan Mantri Jan Dhan Yojana. Some time has passed since its inception, yet not all are aware of it. If you are one of them and wondering how it works before you open a Zero-Balance Account online, here are some FAQs to help.
What are the initial deposit requirements?
As it is a Zero-Balance Account, there is no requirement for an initial deposit. Banks let you start with nothing. You can complete the account opening process to get started. However, to begin transacting immediately, you need to have funds in the account. Hence, start with the amount you feel comfortable with. It is up to your discretion.
What are the transactional limits prescribed?
As it is meant for savings and basic transactions, you should maintain the balance on the lower side. The aggregated credit in a financial year should not exceed Rs. 1 lakh. Maintain the balance up to Rs. 50,000 as it is a basic Savings Account. If it goes beyond this, further credits are not allowed. Also, the total withdrawals and deposits should be within Rs. 10,000 in a month. With this in mind, you can do up to four transactions a month.
Does the account provide basic banking services?
Once you open a Savings Account, you get a Debit Card, passbook, and chequebook through the welcome kit. These are free of cost and do not entail any annual charges. Besides, you can use the Online Banking facility. It facilitates online transactions like balance inquiries, bill payments, fund transfers, etc. Therefore, you do not miss out on any regular services.
How to open the account?
If you are an Indian citizen aged over 18 years, you can open an account with any bank. The only condition is to not hold any other account with the chosen bank. If you do, you need to close it within 30 days of opening the account. Owing to the established digital presence of many banks, online open a Zero-Balance Account is possible. You can do it through the portal. But before that, complete the general KYC requirement for the same.