Zero Balance vs Normal Savings bank account

What is the difference between zero balance and normal saving account ?

There must be some disadvantages with zero balance bank account. because if not then why customers will open normal bank account instead of zero balance bank account ?

The zero balance savings account is a basic savings bank account. The account is opened to encourage more customers to open bank account and do transactions through bank. In a standard SB account, the customer is supposed to maintain a minimum balance on all days of the year. This may not be feasible for certain type of customers and as there is a push that all should have a bank account, this product is introduced. This also improve the circulation of currency and stop hoarding of cash, especially rural and semi-urban towns and cities of India.

Once a customer has an account, she/he will be privy of other associated services as well, basically encouraging customers in semi urbank towns to have a bank account. This will also allow the Government to pass on benefits directly to their bank account in case of need


Thank you very much for your response.

So if there are no disadvantage for a customer to open zero balance bank account then everyone should open only zero balance account, right ?
So why normal savings account exist ?

Note: I want to know what is the “disadvantge for user” with the zero balance saving account?
Extra fees etc?

Cons of opening a zero-balance savings account:

  1. Only residents of India are eligible to open a zero-balance savings account. NRIs (Non-resident Indians) and PIOs (Persons of Indian Origin) are not eligible to open this account.
  2. Since the zero-balance savings account can be opened with minimum documentation, at no point in a financial year can the total credit in the account exceed Rs.1 lakh.
  3. At no point can the balance in the zero-balance account exceed Rs.50,000.
  4. If the customer fails to make transactions for a specific period of time, the account will be deemed dormant. At this point, the customer will not be allowed to carry out any ATM transactions, transactions via the internet banking facility, or via the phone banking facility.
  5. No foreign remittances can be made to the zero-balance savings account.

Thank you very much, you are awesome.

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Not the BSBA accounts but many banks offer normal savings account without the need for any minimum balance…You just have to sign up at right time when they have such offers…have zero balance accounts in HDFC, ICICI, INDUSIND,DCB, KOTAK, RBL, EQUITAS, BANDHAN, AU BANK, SBI etc

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Thank you very much.