Zero Balance Account-Everything You Need to Know About it.

In India a large portion of country’s population are using the Zero Balance Account facility from the popular banks such as State Bank of India, ICICI, HDFC and other PSU Banks.

Though its uses and product features are limited, it is best suitable to low income group. In fact, it enables the people under low income group who need the banking services accessible.

If you want to know all about Zero Balance Account, you are in the right place. Let’s find out with our comprehensive guide on zero balance accounts. It will help you in case you want to open in your name.

A bank account is an account you open in the bank that allows you to keep and save money. The account can be for personal use as well as for business purpose. It enable you to deposit, withdraw and transfer money. A Zero Balance Account is also a type of account with limiter version of normal savings bank account.

The other type of Zero Balance Accounts are scheme specific. These can be salary package account, defense salary account, government account and other specified account. These type of scheme specific zero balance accounts are excluded from the article.

What is a Zero Balance Account?

A Zero Balance Account (ZBA) is a bank account that does not require maintenance cost. It is without Monthly or Quarterly Average Balance (MAB and QAB). The rest features are same with the normal Savings Bank Account only there is limited number of transaction you can do with ZBA.

In India, you may find these accounts in the name of Prime Minister Jan Dhan Yojana (PMJDY), Basic Savings Bank Deposit Account (BSBDA) or Tiny SB Account.

Features of Zero Balance Account.

These savings bank accounts come with limited facilities. The below chart gives you the glimpse of its features:

1The account can be opened by an individual of Indian National. Facility available in most of the banks.
2 No minimum balance maintenance is required. That means, it has no monthly average balance or quarterly average balance requirement.
3Rupay ATM Debit card is available with the account with transaction limit between ₹20000 to ₹40000 per day.
4There is no provision for cheque-book. You have to operate the account with bank withdrawal slip only.
5Internet banking and mobile banking is not available in the account. (Available in BSBDA Account)
6Transaction limit set for the account is ₹1 lakh per financial year. Monthly upto ₹50000 and at no point of time the balance amount cannot go beyond the set limit as per RBI policy guidelines.
7You can do a maximum of 4 transaction in a month.
8You cannot operate the account other than your home branch.
9No SMS alert service is available. (Available in BSBDA Account) Account can be upgraded to normal savings bank account anytime.
10No online account opening facility. Best suitable for daily wage earner who has limited transaction requirements.

Transaction Limit Zero Balance Account.

As per Reserve Bank guidelines, the said account comes with limited transaction limit. You can transaction upto ₹ 1 lakh in a financial year. It is prohibited beyond that and if you require more transaction limit, then you have to switch to normal Savings Bank account.

Number of transaction set during the month is 4, including fund transfer, cash withdrawal and deposit. Bank does not allow you to access your account beyond the set limit.

How to Open a Zero Balance Account.

To open the zero balance account, you have to visit the bank with KYC-Know Your Customer documents. These documents can be as follows:

  • Aadhaar Card
  • Voter Card
  • Passport
  • Driver’s License
  • ID issued by MNRGA

The process of opening the account is simple. You might get the account number on the same day as well. You may follow these steps to get it done:

  • Collect the account opening form available at the branch. Fill it up with required details.
  • Get your KYC documents attached to it.
  • Let the bank official verify your details.
  • Sign wherever bank advises you to.
  • Your account will be opened in no time.
  • There the passbook is ready for you.

PAN card is mandatory to open the account. You may also open these accounts at Kiosk banking channel. If you have proper ID and PAN, you might be able to do it through Customer Service Points (Kiosk Banking).

Your ATM card will be delivered to you in few days. Make sure activation is done on time.

How Secure Is Zero Balance Account?

About its security, you may say its quite secure. As the account comes without internet banking and cheque-book, there will be zero percent involvement in account operation.

The account to be operated by the account holder himself/herself only on production of passbook. The bank official will verify the authenticity of the account holder with signature of ID verification.

Moreover, due to its limited transactions on many channels, you may consider these accounts as one of the secured type of savings bank account.

How this Account Benefits You?

There are a number of benefits of using these Zero Balance Accounts. The account is suitable for low income group of people. Below we have sorted out few of its benefit which you might be interested.

1The account maintenance cost is almost zero. There is no AMC-Annual maintenance cost for the account. No SMS alert facility. That means no fees for SMS alert.
2Build a saving habits to un-bank rural areas mostly farmers.
3Prime Minister Jan Dhan Yojana (PMJDY) is eligible for an overdraft of ₹10000, PMSBY-Prime Minister Suraksha Bima Yojana, PMJJBY- Prime Minister Jivan Jyoti Bima Yojana, APY- Atal Pension Yojana, DBT- Direct Benefit Transfer and MUDRA- Micro Unit Development and Refinance Agency Bank.
4Fixed Deposits and Recurring Deposits can be opened though it.
5Account can be accessed by account holder only with passbook. So, its quite secure.
6Free Personal Accident Insurance coverage upto ₹ 2 lakhs.


The Zero Balance Account is quite popular in India. As the country has huge chunk of small scale indigenous farmers, the number account opened since its inception is in terms of millions. Farmers and those people under low income group are enjoying the benefits of Government schemes such as Jan Dhan Yojana Account.

Downside of the product is that, due to its limited transaction, the account might be useless for people who has a monthly income of more ₹20000. In fact, the account is not meant for person with regular salaries. You can say, its perfect for daily wage earner.

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