Zero Balance Current Account – All You Need to Know

Last Updated on July 18, 2023

Many of you might have heard about various types of accounts in banks. They help organizations, business professions or an individual to manage the day to day withdrawals or transactions. But, businessmen have to face a lot of trouble maintaining the minimum balance. And when there is a problem, there is a solution. That is why the zero-balance current account was introduced.

Want to know about this marvelous innovation? Let’s get started.

Table of Content

1. What is a zero balance current account?
2. Features
3. Procedure for opening zero balance current account
4. Eligibility criteria
5. Document Required
6. Zero balance current account offered by different banks
7. Conclusion
8. Frequently Asked Questions (FAQs)

What is a Zero Balance Current Account?

You may know what a current account is. In case you don’t, it is a bank account that is used by business professionals, entrepreneurs, firms, or organizations that perform a large number of daily monetary transactions. It is so because it offers a couple of advantages that other accounts does not offer.

But one thing is common about them. All types of bank accounts require you to maintain a minimum average balance in your account. It may be irritating sometimes, right? To solve this problem, the concept of a zero balance current account was introduced. And this innovation spread like fire.

That is why various banks in India, like ICICI Bank, Axis Bank, SBI, etc., offer a current account with no requirement of maintaining a minimum average balance.

Features

• It can be operated by an Individual, NGOs, Trust, Public or Private companies, etc. 
• There is no requirement for maintaining minimum average balance.
• Although there is no requirement of minimum balance, it doesn’t offer interest as well.
• There is a facility for unlimited withdrawal from the home branch. But there is a limit on the number of withdrawals from a non-home branch.
• It offers various direct payment facilities like NEFT, Demand draft, Pay orders, RTGS, etc.

How to open a Zero Balance Current Account?

Opening a zero-balance account is very easy and simple. After all, what will be the point of making the process complex? It will discourage people to open a bank account for their business. And you know that business is the backbone of the economy.

Nowadays, every bank offers a current account. So, you can visit the bank of your choice. Afterward, you have to fill out the account opening form with all details required. Lastly, submit the filled form along with the required KYC documents. And that’s the end of it.

How to open a Current Account online with zero balance?

Technology is becoming pretty advanced, isn’t it? Nowadays, it is also possible to open a bank account while sitting at your home. You can open it online as well, by following these steps.

• Firstly, open the official website of the bank. For example, if you select Axis Bank, go to the website https://www.axisbank.com/business-banking/current-account/digital-current-account/offers.
• Then, select the option for the account opening form and download it.
• After downloading the form, you have to fill in the necessary details.
• Then download the form and print it.
• Finally, visit your nearest bank branch with the filled printed form and all the required KYC documents and submit them.

That’s it! Your account is good to go.

Eligibility Criteria for Zero Balance Current Account

Banks set eligibility criteria to open a zero balance current account. But, don’t worry about satisfying it. It’s no rocket science. The basic criteria are that you should belong to any of the following categories:

• An individual resident.
• Sole trader or proprietor.
• A private or public limited company.
• A trusted and partnership firm.
• NGO, Trust, or Societies.

See, we told you, right? All of you can satisfy the basic criteria without breaking a sweat.

Required Documents

The documents required may vary for different banks depending upon their internal policies.

• A passport size photograph
• For proof of identity, you can submit any one of the following:
  1. Aadhar card
  2. Passport
  3. Driving license
  4. Pan card
  5. Voter id

• For address proof, any of these documents is sufficient:
  1. Water, electricity, telephone bills
  2. Ration card
  3. Rent agreement
  4. Driving license
  5. Bank statement

Zero Balance Current Account offered by various banks

The different banks offer different schemes for a current account without the requirement of a minimum balance.

Nowadays, the startup culture is thriving in our country. Launching one has become a fad among the Millenials. And why not? They help the entrepreneurs to gain practical knowledge and experience, besides motivating them to quit the 9 to 5 routine.

This is what most banks keep in mind. That is why they have developed customised features exclusively for startups. For example, ICICI Bank’s Shubbharambh Current account and New Startup Current account offer financial benefits to potential start-ups, businesses, and firms. Kotak Mahindra bank offers various schemes as per your business needs and multiple benefits to customers.

Anyways, here is a list of banks offering zero balance current accounts with innovative names:

Want to know about them in detail? Well, here you go.

Axis Bank Current Account

The following table shows the advantages and features of Axis Bank Local’s current account.  

IndusInd Bank Freedom Current Account

You may wonder about the hidden meaning behind its name. Sounds exciting, isn’t it? Well, it lives up to its name. That is why it doesn’t charge even a single penny on the transaction.

What’s more, it even sends physical and digital bank statements. It helps in managing the expenses and the cash flows of the business. Thus, becoming your all-time financial manager.

Due to its unique features, it is best suited for small and medium businesses with no requirement of minimum balance.

ICICI Bank Current Account

The majority of the banks offer a single type of current account. But ICICI Bank overshadows them all, by developing an additional type. They are as follows:

New Startup Current Account: It is ideal for small and medium start-ups to manage their finances and transactions through other mediums.

The Shubhaarambh Current account: As the name suggests, it is a new beginning in the banking industry. It offers more benefits to its customers, as compared to others. It is also suitable for Proprietorship start-ups.

Bank of Baroda Startup Current Account

The above banks offer zero balance facilities for six months. But Bank of Baroda takes it to the next level. It does not require maintaining a minimum balance for up to 2 years. So, you are hassle-free during this time. They provide account statements for free twice a month. But they don’t stop here. Besides these facilities, there is no limit for cash withdrawal as well.

HDFC Bank Current Account

HDFC Bank is considered the best bank among all. It is due to the exclusive features provided by them. This case is no different.

It is a Government or Institutional account, which offers facilities like free account statements, fund transfers, and more without maintaining any minimum balance of up to two years.

Conclusion

Considering the present scenario, bank accounts have become a necessity among businesses. But there are restrictions related to transactions, minimum balance, and withdrawals. To overcome them, startups and businesses use zero-balance current accounts. It will not only help in carrying out a high number of transactions but running businesses smoothly as well. In India, many banks provide the zero balance current account with many customized benefits to businesses.

So, it’s essential that you should choose the best-suited account, considering your requirements. If you are struggling to find one, this article can be your guide.

Frequently Asked Questions