Zero balance accounts are a type of bank account where there is no requirement to maintain a minimum balance. These accounts are designed to make banking accessible for everyone, especially individuals who may not have a steady income or the financial means to meet minimum balance criteria. Offered by most banks in India, including public sector and private banks, zero balance accounts can be easily opened online with minimal documentation.
The concept originated to support financial inclusion, allowing more people—especially those in rural or economically weaker sections—to participate in the formal banking system. Over the years, these accounts have become popular among students, pensioners, and even salaried professionals who want an additional account without worrying about minimum balance penalties.
In today's digital economy, having a bank account is more important than ever. From receiving salaries and government subsidies to making UPI payments and managing bills, a bank account is essential for financial independence.
Zero balance accounts solve several key problems:
Financial inclusion: These accounts are crucial for unbanked populations, especially in rural and remote areas.
Avoiding penalties: Regular savings accounts often charge fees for not maintaining a minimum balance. Zero balance accounts eliminate this burden.
Digital payments: These accounts enable access to mobile banking apps, debit cards, and UPI-based payments.
Government benefits: Many government schemes like DBT (Direct Benefit Transfer) are linked to zero balance accounts, ensuring smooth fund transfers to beneficiaries.
Who benefits?
Low-income earners
Students
Pensioners
New account holders
Migrant workers
In an increasingly cashless society, a zero balance account can be a gateway to full participation in financial systems, regardless of income level.
Over the past year, there have been several updates in the way zero balance accounts are managed and promoted:
| Trend | Details |
|---|---|
| UPI integration | Most zero balance accounts now come with full UPI functionality, allowing users to make payments via apps like Google Pay, PhonePe, and Paytm. |
| Digital KYC (e-KYC) | As of early 2024, banks have made Aadhaar-based e-KYC mandatory for faster online account opening. |
| Neo-banking growth | Fintech firms like Fi, Jupiter, and Niyo have introduced digital-only zero balance accounts with app-based features. |
| Jan Dhan 2.0 | The PM Jan Dhan Yojana was upgraded in late 2024 to offer better overdraft limits and insurance for zero balance account holders. |
| Video KYC rollouts | Many banks now allow video KYC, simplifying the account opening process without visiting a branch. |
In India, the government and Reserve Bank of India (RBI) have played an active role in promoting zero balance accounts under various regulatory frameworks.
Key policy highlights:
Pradhan Mantri Jan Dhan Yojana (PMJDY):
Launched in 2014, this scheme focuses on opening zero balance accounts for every household. As of 2025, over 50 crore accounts have been opened under this scheme.
KYC regulations:
The RBI mandates basic KYC (Know Your Customer) procedures for zero balance accounts. Aadhaar, PAN, or voter ID can be used.
RBI guidelines for BSBD Accounts:
Basic Savings Bank Deposit (BSBD) Accounts are regulated to ensure they remain free of hidden fees. These accounts allow ATM cards and 4 free withdrawals per month.
No-frills policy:
As per RBI’s direction, no charges should be imposed on non-maintenance of balance in zero balance accounts.
Insurance and pension schemes:
Jan Dhan accounts also come with access to the Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) and Atal Pension Yojana (APY).
These rules ensure that zero balance accounts remain accessible, affordable, and supportive of financial wellbeing.
Opening a zero balance account has become easier than ever with the help of technology. Here are some tools and platforms that simplify the process:
Online Banking Platforms:
SBI YONO App – Open an SBI zero balance account through digital KYC
HDFC Bank InstaAccount – Allows digital account setup with instant account number
Kotak 811 – Fully digital account with video KYC
Axis ASAP – Open account via Aadhaar OTP
Paytm Payments Bank – App-based account with no minimum balance
e-KYC and Aadhaar Integration:
UIDAI Aadhaar Authentication
DigiLocker for digital document submission
PAN verification tools
Banking Portals & Services:
PMJDY official website – For Jan Dhan account details
RBI Basic Savings Account Info – Guidelines and rights
BankBazaar – Compare account features across banks
Features you can expect in online zero balance accounts:
Free virtual debit card
UPI integration
SMS alerts
24/7 app-based support
Option to convert to a full KYC account later
Most major Indian banks now offer mobile apps or websites that let you complete the account opening process in under 10 minutes using Aadhaar-linked mobile numbers.
1. Who is eligible to open a zero balance account?
Anyone above 18 years of age with valid identity proof (Aadhaar, PAN, or voter ID) can open a zero balance account. Minors can also open under a guardian’s name.
2. Are there any hidden charges in zero balance accounts?
By RBI guidelines, zero balance accounts should not have hidden fees for maintenance. However, charges may apply for optional services like cheque books or additional ATM withdrawals.
3. Can I receive my salary or government benefits in a zero balance account?
Yes, these accounts are fully functional and can be used for receiving salaries, pensions, subsidies, and other direct transfers from the government.
4. What happens if I don’t use my zero balance account?
If left inactive for a long time (usually 1–2 years), the account may become dormant. You can reactivate it by visiting the bank or using online banking services.
5. How is a zero balance account different from a regular savings account?
The key difference is that zero balance accounts do not require any minimum balance to be maintained. However, they may have limits on the number of withdrawals or deposit transactions.
Zero balance accounts have become an essential financial tool for millions across India. They empower users by removing financial barriers and giving easy access to digital banking services. With government support, evolving technology, and simplified KYC processes, opening and managing a zero balance account has never been easier.
Whether you are a student starting your financial journey, a migrant worker sending money home, or someone looking for a second account with no balance requirement—this option offers both convenience and security in today’s digital-first world.