Efficient management of finances is crucial for a business to operate smoothly. Today, banks offer a wide array of financial products and services that enable businesses to thrive. One such option is the zero balance current account, eliminating the need to maintain a minimum balance. 


This option is particularly beneficial for small businesses that may find it challenging to meet the minimum balance requirements. The account works just like any other current account, enabling you to carry out routine transactions seamlessly.

Read on to learn how to open a zero balance current account, its requirements, and more.

What is a Zero Balance Current Account?

A zero balance current account allows you to carry out banking activities like transactions, withdrawals, and transfers without the need to maintain a minimum balance. This type of current account is ideal for businesses and professionals seeking flexibility. 


This can be with managing their expenses without any constraint of maintaining a minimum balance. Typically, most banks need you to maintain a minimum balance of ₹10,000 in current or savings accounts. However, it is essential to know that a zero balance current account does not provide any interest on your deposits.

Process of Opening a Zero Balance Current Account

Here are the steps you must follow for a zero balance current account opening online.

  • Step 1: Visit the official website of the bank

  • Step 2: Download the zero balance current account application form

  • Step 3: Fill out the account opening form carefully with your personal and business details

  • Step 4: Submit the filled account opening form and the required documents

Once done, the bank will verify your information and documents and notify you once your account is opened. Alternatively, you can also visit the bank branch and open a zero balance current account.

Eligibility Criteria and Document Requirements for Opening a Zero Balance Current Account

Check out the eligibility criteria you need to meet and the documents you need to submit when you open a zero balance current account.

Eligibility Entities

  • Resident individual

  • Trusts

  • Sole proprietorship firms

  • Partnership firms

  • Private and public companies

  • Hindu Undivided Family (HUF)

Document Requirements

  • Photographs: 2-3 latest passport size photographs

  • Identification Proof: Aadhaar card, PAN card, passport, driver’s license

  • Address Proof: Utility bills, bank statements, rental agreements

  • Business Documents: Certificate of Incorporation, Article of Association (AOA), Memorandum and Articles of Association (AOA), Partnership Deed, GST number, etc.

  • KYC Form: Know Your Customer (KYC) form provided by the bank

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Benefits of a Zero Balance Current Account

Efficient Financial Management

A zero balance current account enhances personal and business financial management with features like cheque books, online banking, and 24x7 support availability. These tools aid in performing and monitoring cash flow and payments, which, in turn, enhances financial control.

Convenient Account Opening Process

The process of opening a zero balance current account is simple. Most banks offer the convenience of digital application, allowing you to apply online. This saves you a trip to the branch, and makes the process a lot simpler. Also, it includes easy-to-meet eligibility criteria and minimal document requirements.

Overdraft Facility

Another advantage is the overdraft facility, allowing businesses to access funds up to a predetermined limit. This serves as a valuable asset during times of fund shortages. This facility offers businesses a safety net to efficiently manage cash flow challenges and prevent potential disruptions in business operations.

Now that you know how to open a zero balance current account, sign up for one and enjoy the multitude of benefits it offers. Bajaj Markets offers a seamless and hassle-free account opening process. Just click on the ‘OPEN NOW’ option on the page and complete the digital application.

FAQs on Zero Balance Current Account

A zero-balance current account means you have no obligation to maintain a minimum balance at the end of the month. It is also known as the monthly average balance or minimum average balance (MAB).

Yes, many banks offer you the facility of online zero balance current account opening. You simply need to visit the bank's official website, download the form, fill the form with the required details, and attach the necessary documents. You can then upload it or take it to a nearby branch to get it processed.

Also known as the minimum average balance, MAB is the closing balance of your account for each day throughout the month. However, you do not need to maintain the MAB in a zero balance current account.

Yes, you can open a zero balance current account without a GST number.

Yes, you can withdraw cash from an ATM as needed from a zero balance current account.

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