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.
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.
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.
Check out the eligibility criteria you need to meet and the documents you need to submit when you open a zero balance current account.
Sole proprietorship firms
Private and public companies
Hindu Undivided Family (HUF)
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
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.
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.