Meaning and Objective

• A zero-balance savings account allows customers to operate without maintaining a minimum balance.
• It is designed to promote financial inclusion and ease of access to banking.
• Account holders are not penalized for low or zero balances.
• Basic banking needs such as deposits, withdrawals, and fund transfers are supported.
• Often offered under government schemes and financial literacy programs.

Eligibility and Target Groups

• Available to individuals from all income groups, especially low-income or first-time users.
• Students, pensioners, and beneficiaries of welfare schemes are common applicants.
• Indian residents with valid identity and address proof can apply.
• Some banks offer zero-balance accounts exclusively for salaried customers.
• Non-Resident Indians (NRIs) may be eligible for special zero-balance NRE/NRO accounts.

Key Features and Services

• No minimum balance or maintenance charges apply.
• Includes ATM or debit card facility with limited free transactions.
• Internet and mobile banking services are generally available.
• Limited cheque book facility and cash deposit features may be provided.
• Passbook and SMS alerts are included for transaction tracking.

Transaction and Usage Limits

• The number of monthly withdrawals may be restricted.
• Certain accounts have deposit and transaction caps to retain basic status.
• Beyond limits, the account may be upgraded or charges may apply.
• BSBD (Basic Savings Bank Deposit) accounts follow RBI guidelines for restrictions.
• Customers must adhere to usage norms to avoid conversion to regular accounts.

Suitability and Benefits

• Ideal for individuals new to banking or with irregular income.
• Encourages savings without the pressure of minimum balance rules.
• Helps in accessing government benefits and subsidies directly.
• Simplifies money management for daily or emergency needs.
• Offers a safe and regulated environment for financial activity.