How to open Zero Balance Digital Savings Account Online?
A recent report revealed the fact that the banks across the country accumulate a whooping amount of Rs 5,000 Crores for not maintaining the minimum average balance in saving account. This gave rise to a need to open a bank account with zero balance or no minimum balance. Here it comes Digital Savings Bank Account which can be opened with zero balance. What is Digital Savings Bank Account? Who are offering Zero Balance Digital Savings Accounts in India? How to open Zero Balance Digital Savings Account Online?
What is Digital Savings Bank Account?
Regular savings account is opened by approaching the bank, fill the form and submit KYC (Know your client). Digital account means an account that can be opened anytime, anywhere through the website or any application without visiting the branch. It is a bank account that can be opened with the help of Aadhar card and Pan Card. The process of KYC is done through Aadhar card. Such KYC is known as ‘partial KYC’. The mobile number needs to be updated and linked to Aadhar card. It does not ask for minimum balance also. The balance of such account should not exceed Rs. 1 lakh at any point of time. Only resident Indian individuals who are above the age of 18 can apply for this account. Also, the person should be in capacity to contract according to the applicable laws of India. As of now, as per the notification, the customers can open their savings account with no minimum balance requirement till March 31, 2019.
Who are offering Zero Balance Digital Savings Accounts?
Almost all the major banks are offering Zero Balance Digital Savings Accounts. Here is the detail of the same:
SBI Digital Saving Account – The bank offers BSBDA (Basic Savings Bank Deposit Account) to its customers. The applicant should not have any tax liability outside the country. The customer can open their digital savings account through its website or via SBI YONO application. At any point of time, a customer can have only one SBI digital savings account. The bank reserves the right to rejecting the request of opening SBI digital account without providing any reason. Joint account or joint mandate for the operation of this account is not permissible.
Kotak 811 Digital Savings Account – The bank allows its customer to open fully digital savings account in less than five minutes in the name of Kotak 811. It offers a rate of interest up to 6%. The bank provides a virtual debit card to facilitate online shopping. Online transactions through NEFT/IMPS do not attract any additional charges. A maximum of Rs. 1 lakh can be transferred online.
Axis Bank ASAP Zero Balance Digital Savings Account – The ASAP account of Axis Bank is one of the Zero Balance digital savings accounts. The account holders get auto-sweep Flexi FD on balance above Rs. 1000. The account has to be converted into fully KYC account within one year of opening the account. Once the account is converted into a fully KYC account, the restriction of maximum balance of Rs. 1 lakh is lifted. The interest rate is 3.5% for balance less than Rs. 50 lakh.
DBS Digi Savings Account – It offers digital account services as DBS Digi Savings account. It provides an app-based service to its customers. For a balance up to Rs. 1 lakh, it provides an interest rate of 6%. For Rs. 1 lakh to Rs. 2 lakh, it gives interest of 7%.
RBL Abacus Digital Savings Bank Account – This bank offers its customers to open RBL Abacus Digital Savings Bank Account instantly without involving any paper work at zero balance. It provides an interest rate of 5.5% on daily balance up to Rs. 1 lakh.
How to open Zero Balance Digital Savings Account Online?
The process of opening Zero Balance Digital Savings Account online for all the banks is more or less the similar one, keeping aside one or two steps. All you need is a smart phone, an internet connection, Aadhar card and Pan card. It is mandatory to have Aadhar card and Pan card both to apply online to open a digital account. Only Indian residents can open a digital account. Follow these few simple steps to open the account:
Visit the website or app of the bank in which you want to open the account.
Select the option of digital savings account.
Fill in the basic information form.
Verify your details through an OTP that is received on your Aadhar linked mobile number.
Your savings account is activated.
What are the limitations of Zero Balance Digital Savings Account?
For opening a Digital savings account, one needs to verify it online through Aadhar card. This Aadhar-based e-KYC is treated as ‘partial KYC’. There are certain limitations and guidelines that have been issued by RBI applicable to such bank accounts and customers.
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The limitations applicable to partial KYC customers are:
1) The total of all balances cannot exceed Rs. 1 lakh on annual basis.
2) No RTGS transactions are permitted.
3) The total of all credits should not be over Rs. 2 lakh in a year.
4) These limitations of partial KYC can be averted only when one is done with full KYC or biometric based e-KYC or authentication, then the time allowed for which is one year from opening the digital account.
5) In order to have a zero balance saving account, one cannot have any other savings bank account.
6) Few contents of digital account are dependent upon operating system of the handset. This service is currently available on iPhone with iOS 8 and Android Phones with Android version 5.0 and above. The bank holds no obligation to support all versions of mobile phone software.
7) The bank is not liable for any wrong or incomplete information furnished to them due to bad signal, internet data issues or connectivity.
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How to open Zero Balance Digital Savings Account Online