A Complete Guide: How to Open a Zero Balance Account?

Zero Balance Account

Savings accounts guarantee the safety of your deposits. A savings bank account is ideal to put your money in, whether you happen to build an emergency fund or have begun saving for retirement. Your savings bank account allows you to hold your funds for the long term while providing the ease of quick liquidity. Even if the account holder finds it tough to visit the branch, they can access their funds anytime, anywhere, through alternate means, such as ATMs, online banking, and mobile banking.

Traditional savings accounts have limitations that make banking costly, difficult, or even inaccessible for many. The Average Monthly Balance (AMB) mandate means that the account holder maintains the AMB or pays penalties up to 6% of the shortfall. Besides, it is required for full fledged zero balance as well to deal with, to open and maintain a saving account.

How about an account that guarantees the benefits of the regular savings account but without such onerous restrictions? As a new-age banking tool, the 0 balance savings account (ZBA) does exactly that.

As the name says, anyone can open a ZBA with a zero balance. Account holders can maintain it without ever making a deposit, eliminating any AMB requirements from the picture. No AMB limits mean no penalties. 

Account holders with deposits below INR 1 lakh do not have to bother about mandatory KYC protocols. Benefits like the highest interest rates, free transactions, internet and mobile banking, an e-mandate facility, and free debit and credit cards are available by default if you choose Kotak811 ZBA.

You can easily open Kotak811 ZBAs by following a few easy steps, online or offline. Learn everything you need about the free bank account opening process.

Online Zero Bank Account Opening Process

The process differs from bank to bank but has a lot of overlap. Follow the steps below to open a Kotak 811 ZBA online:

Step 1: Log onto the bank’s website or download its app from Google PlayStore.

Step 2: Type your name and contact details like phone number and email ID.

Step 3: Punch in the OTP sent to your registered phone number by the system.

Step 4: The system will then ask for your Aadhaar number, PAN, and authorisation to use them. You have to provide them to move ahead.

Step 5: Enter the OTP provided by the system on your Aadhaar-linked phone number.

Step 6: The system will reveal your address as mentioned in the Aadhaar records. Feel free to accept it or provide an additional address for future communications.

Also Read: Why Zero Balance Accounts are a Game-Changer for Banking?

Step 7: Enter other required info, including yearly earnings, marital status and occupation.

Step 8: Mention the nominee’s details.

Step 9: The system will ask you to carefully review the details you provided until then and eventually put you through e-KYC verifications.

Step 10: Accept the terms and conditions and have your net banking password, MPIN, and other passwords in place. The non-KYC zero balance account is all set to function.

You need to go through KYC verification to open a full-fledged 0 balance savings account that can hold funds above INR 1 lakh. Kotak Mahindra Bank offers an e-KYC verification facility, eliminating the hassle of in-person visits to the nearest branch. Your full-fledged ZBA becomes operational within a few hours of successful video KYC verifications. 

Offline Zero Bank Account Opening Process

If you have the time and inclination to visit your nearest bank branch, the offline free bank account opening process is for you. Follow the steps below to open a Kotak 811 ZBA offline: 

Step 1: Visit the bank’s nearest branch. 

Step 2: Ask for the ZBA form and fill it out carefully. 

Step 3: Submit the form with your identification and address documents and passport-size photographs.

Step 4: Upon verification of your form and documents, the bank will provide your account details and ATM/Debit card.

Also Read: The Advantages of Zero Balance Account Opening for Financial Inclusion

Step 5: Log into the bank’s website or app to activate the virtual Debit card.

You can expect your physical debit card at your doorsteps within a few days.

Eligibility Requirements

Any Indian aged 18 years or above is eligible for a ZBA. No other eligibility requirements apply.

Documents Needed

Even the document requirements are minimal. Here’s what you need to furnish:

Identity Proofs: PAN Card

Address Proofs: Aadhaar Card and Aadhaar-linked Mobile Number

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