The banking system plays a crucial role in the functioning of an economy. Any economy aspiring to be cashless can only become one if its banking systems adapt accordingly. Digitisation has made banking products more accessible. Parties interested in opening bank accounts can avoid visiting a branch and standing in long queues. They can open a bank account online free and with zero paperwork.
Banks like Kotak Mahindra 811 have digitised opening a bank account. The no-contact process takes a few minutes, and account holders have their zero-balance bank accounts opened instantly.
This article explores how to open a zero-balance account online and how banking has been made simple with such accounts.
What is a Zero-Balance Account?
A zero-balance account allows the holder to enjoy banking services without restrictions. The account holder is under no compulsion to maintain a minimum monthly balance. Even if the account balance is zero, no charges in the name of “non-maintenance” can be levied on such accounts.
How to Open a Zero-Balance Account?
The digital account opening process has made life simpler for those who cannot visit a branch to open a bank account. The process to open a zero-balance account is entirely digital, in which the user downloads a mobile banking app on their smartphone and applies for such accounts.
Below are the steps to open a zero-balance account with no paperwork:
- Download the mobile app and fill up the application form.
- Enter your Aadhaar registered mobile number and opt for Aadhaar authentication.
- Enter the OTP you received on your registered mobile number to complete the authentication.
- Enter PAN card details, confirm the communication address, add nominees and income details, and fill up other basic entries.
- Initiate the video KYC by turning on the location access on your mobile phone.
- Connect with a bank agent via a video call and complete the video KYC.
- Get login and password via email and access your newly opened zero-balance account.
Who Can Open a Zero-Balance Account?
Below are the eligibility criteria to open a zero-balance account digitally:
- Age must be 18 years and above
- You must be an Indian citizen with a valid Indian address
- You must have a valid Aadhaar and PAN card
Those not having a PAN card cannot apply for the digital bank account opening process. Video KYC is the crucial step of the entire process of opening an account. Users must first apply for Aadhaar and PAN card to open a zero-balance account in their choice of bank.
Perks and Benefits of Opening a Zero-Balance Account
- Account holders can enjoy using banking services without maintaining a minimum average balance
- With your zero-balance account, you can do free fund transfers because banks like Kotak 811 don’t charge fees for IMPS, NEFT, and RTGS
- You get a free virtual debit card which you can use for online shopping
- You can get up to 4%* p.a. interest on the money saved
- You can request bank statements on your email address without paying any charges
- You can easily convert your zero-balance account into an Edge account and enjoy platinum debit card deals and waivers
How Much Do You Have To Pay For Using a Zero-Balance Account?
You can open a bank account online for free. There are no charges for maintaining a bank account when you open a zero-balance savings account. You might have to pay extra if you request a physical debit card or a chequebook. Some banks even offer a limited number of free transactions every month. Make sure to confirm the same to avoid paying charges for online transactions.
Is Opening a Zero-Balance Account Worth It?
Compared to the fees you have to pay for a regular savings account, a zero-balance account is worth it.
Conclusion
The flexibility to open a bank account right from home has transformed how we use banking products. If you are busy and don’t have time to drive to the bank, opt for a zero-balance bank account. Banks like Kotak Mahindra 811 even offer up to 4%* p.a. interest on the savings, so open a bank account and enjoy benefits over the traditional savings account.
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