BANKING AFFAIRS

Detailed explanation-1: -A zero-balance account refers to a savings bank account, which has a zero balance in it and yet not charged. It is legally known as Basic Savings Bank Deposit (BSBD) account as per the Reserve Bank of India (RBI) guideline. The facility is provided by banks to encourage more savings among people.

Detailed explanation-2: -Following the RBI mandate, Basic Savings Bank Deposit Account or BSBDA is now offered by all banks. A BSBDA has no minimum balance requirement and the customers are offered a debit card. BSBDA is zero-balance account but banks may offer the zero-balance flexibility to other types of savings account variants also.

Detailed explanation-3: -What is no frill account in banking? These are savings accounts that don’t need any minimum balance month after month. The account holder gets access to internet banking, debit card and access to ATMs across the country with 0 balance. As the name suggests, these accounts don’t have any unnecessary rules or ‘frills’.

Detailed explanation-4: -In a regular savings account, banks levy a penalty for not maintaining the minimum account balance, but in a zero balance account, there is no penalty as you are not required to maintain a minimum balance.(subject to terms and conditions )

Detailed explanation-5: -A savings account is an interest-bearing deposit account held at a bank or other financial institution.