Zero balance account at PSU banks: Key features and KYC document requirements
The primary purpose of a current bank account is to facilitate smooth financial transactions for businesses. All banks in India offer various types of current accounts. Considering factors like the minimum current account balance or the Monthly Average Balance Requirement, Zero Balance Current Accounts are the most suitable option for many.
ZeeBiz WebTeam | Aug 02, 2024, 11:41 PM IST
A current account, also known as a financial account, is a type of deposit account maintained either solely or jointly for conducting large value transactions regularly. Unlike savings accounts, current accounts involve liquid deposits and do not offer any interest. They are mainly opened by business entities such as proprietors, partnership firms, and public or private companies.
The primary purpose of a current bank account is to facilitate smooth financial transactions for businesses. All banks in India offer various types of current accounts. Considering factors like the minimum current account balance or the Monthly Average Balance Requirement, Zero Balance Current Accounts are the most suitable option for many.
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What is Zero Balance Current Account?
- Customers are not required to maintain any minimum average balance, unlike a normal bank account.
- Offered by almost all banks in India to fulfill the business needs of individuals, professionals, businessmen, traders, etc.
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What is Monthly Average Balance (MAB)?
- Sum of all day-end closing balances divided by the number of days in that month.
- Zero Balance Current Account does not require maintaining a minimum average balance.
- Provides similar facilities as those of Regular Current Accounts.
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ICICI Bank Shubhaarambh Current Account
- Ideal for: Proprietorship startups.
- Provides majority of financial benefits to its customers.
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Primary Features:
- No minimum balance requirement for 6 months.
- Free cash deposit limit up to 12 times the maintained MAB.
- Unlimited free withdrawals at the home branch.
- Rs 50,000 free withdrawal per day at non-home branches (self only).
- Monthly account statement at Rs 25 per month (physical statement).
- 100 free cheque leaves per month.
- Account closing charges after 14 days: Rs 1000.
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ICICI Bank New Start Up Current Account
- Ideal for: Startups.
- Offers various transaction benefits to customers.
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Primary Features
- No minimum balance requirement for 6 months.
- Free cash deposit limit up to 12 times the maintained MAB.
- Free and unlimited withdrawals at the home branch.
- Rs 50,000 free withdrawal per day at non-home branches (self only).
- Monthly account statement at Rs 25 per month (physical statement).
- 100 free cheque leaves per month.
- Account closing charges after 14 days: Rs 1000.
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Axis Bank Local Current Account
- No need to maintain a monthly average balance.
- Added advantages like free cash deposit limit of Rs 3 lakh per month.
- 75 free cash withdrawal transactions per month.
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Primary Features
- Zero monthly average balance requirement.
- Free cash deposit limit up to Rs 3 lakh per month.
- Free withdrawals within the 75 transaction limit at the home branch.
- NEFT charges: Rs 25 for transactions above Rs 2 lakh.
- RTGS charges: Rs 50 for transactions of Rs 5 lakh and above.
- Annual charges: Rs 1,999 + Service Tax.
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Bank of Baroda Startup Current Account
- Zero balance current account. No upper limit on cash withdrawals. Free account statement twice a month.
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Primary Features
- No minimum balance requirement for 2 years.
- Free cash deposit limit up to Rs 50,000 per day.
- Free withdrawals at the home branch.
- Free withdrawals up to Rs 25,000 per day at non-home branches.
- Free NEFT, RTGS, IMPS charges for up to 2 years.
- Two free account statements per month.
- 200 free cheque leaves per month for up to 2 years.
- Account closing charges after 14 days: Rs 500 for individual accounts, Rs 800 for non-individual accounts.
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IndusInd Bank Indus Freedom Current Account
- Ideal for: Small or medium businesses/enterprises. Provides the privilege of a free cheque book.
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Primary Features:
- Zero monthly average balance requirement.
- Free cash deposit limit up to Rs 4 lakh per month.
- Free withdrawals at both home and non-home branches.
- Free NEFT, RTGS, IMPS charges.
- Free email statement and monthly physical statement by post.
- Free cheque book issuance.
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HDFC Bank Government
- Ideal for: Government and institutional entities. Provides extensive free transaction limits.
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Primary Features
- Zero monthly average balance requirement.
- Free cash deposit limit up to Rs 50 lakh per month.
- Free withdrawals at the home branch.
- Free withdrawals up to Rs 1 lakh per day at non-home branches.
- Free NEFT and RTGS collections.
- Free monthly account statement.
- 500 free cheque leaves per month.
- Account closing charges between 15 days to 6 months: Rs 500.
- Documents Required for Opening Zero Balance Current Account
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Proof of Identity
- PAN Card
- Voter ID Card
- Passport
- Driving License
- Aadhaar Card
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Proof of Address
- Utility Bills (electricity, water, telephone, etc.)
- Rent Agreement
- Bank Statement
- Ration Card
- Passport
- Driving License
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Other Requirements
- Passport Size Photograph
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Disclamer
- Any one document from proof of identity and one from proof of address required along with other documents and filled application form.