BANKING AFFAIRS

Detailed explanation-1: -Customers in India who wish to open a savings account and do not want to go through the hassle of maintaining a minimum balance, can opt for a zero-balance savings account. As the name suggests, those opening or holding a zero-balance savings account do not have to maintain a minimum balance.

Detailed explanation-2: -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-3: -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-4: -‍As per regulations, most zero-balance savings accounts in India have deposit limits. It means you can only deposit cash up to a specific limit (usually Rs 1 lakh), after which you must change your bank account type to a regular savings account with a minimum balance requirement.