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Zero Balance Current Account: Benefits and How to Open a Current Account?

Zero Balance Current Account

One opens a current bank account specifically for business transactions. It is good for those who conduct numerous bank transactions, personally or professionally. This bank account manages all transactions, deposits, and company activity. A current account or zero balance current account can be opened with almost any bank. In a current account, money can be added or taken out at any time without prior notice. You can also use it to write checks to your creditors. Customers’ cheques can be deposited into this account and withdrawn later.

Owners of current accounts do not earn interest on their money in the bank’s current account. Each institution has its own requirements and advantages for opening and managing a business’s current account.

What is Zero Balance Current Account?

A zero balance current account allows you to conduct transactions without the requirement of maintaining a Monthly Average Balance(or quarterly in some cases). For small enterprises, it is excellent.

Current accounts provide additional benefits such as:

  • This account boosts a business’s liquidity and can be applied to a range of commercial requirements, including working capital or postponed payment of obligations.
  • To operate a bank account without incurring non-maintenance fees, a minimum balance must be maintained, which is known as the average monthly balance. In order to utilise the resources as effectively as possible, a zero balance account for Startups might be a useful tool.
  • When a current account has no balance, small businesses can use the money for working capital or any other use with a favourable opportunity cost. This helps the business grow more productively.
  • The same amount of money sitting in banks with no interest is not beneficial to businesses. An MSME that is committed to generating a decent return from its operations should choose an MSME current account minimum balance.

How to open a Zero Balance Current Account?

Any commercial or non-commercial bank will let you start a current account with a zero balance. One can pick from a list of the best banks offering current accounts with no minimum balance. The user must visit the closest bank branch with the current account opening form and all of the required KYC documents. Additionally, remember that the chosen account variants and the document type may differ from one bank to the other. The steps one can take to open an online account are:

1: Visit the official website of the selected bank.

2: Open the form for opening an account.

3: Complete the “Personal Details” and “Account Details” sections with all the necessary information.

4: Print the completed form after downloading it.

5: Take the printed form and the necessary, acceptable KYC documents to the local bank branch.

The consumer may alternatively obtain an account opening form from the closest bank branch, complete it, and submit it with all necessary supporting documentation.

Eligibility for opening a Zero Balance Current Account

The entities listed below may open a current account with a zero balance, primarily for business purposes:

  • Resident Individual
  • Sole Proprietor
  • Partnership Firm
  • Company (Private and Public Limited)
  • Trust
  • Hindu Undivided Family

Zero Balance Current Account

Documents required for Current Account

It should be noted that depending on the bank and the account type selected, the online documentation for starting a zero balance current account may differ.

Commonly used basic documentation are:

1. Identity proof

  • PAN Card
  • Voter ID Card
  • Passport
  • Driving License
  • Aadhaar Card

2. Address proof

  • Utility invoices (electricity, water, telephone, etc.)
  • Rent Documentation
  • Bank Statement
  • Ration Card
  • Passport
  • Driving License

3. Passport-size photos

NOTE: Any one document from the evidence of identity and any one document from the proof of residence must be included with the rest of the supporting documents and the completed application.

4. Additional documents

Documents for a sole proprietorship

  • Certificate from the service tax or sales tax authorities
  • Declaration of proprietorship

Documents for partnership firm

  • Partnership deed

Private or public limited company documents

  • Certificate of incorporation
  • Memorandum and article of association

Documentation for trusts

  • Trust deed
  • Registration certificate
  • Board of trustees resolution

Hindu undivided family documents

  • Letter of HUF duly signed by karta and all coparceners

Benefits of Zero Balance Current Account

1. The availability of financial resources

Because there is no need to maintain a Minimum average balance, businesses have greater choice in how they can use the funds they have available to them. When compared to the requirements for a small firm, the minimum balance needed for a large business may seem like a small sum; nonetheless, this requirement might still account for a significant sum.

2. There are no fees for maintenance

When you fail to have the required amount of money in your bank account, you will be subject to the fees associated with the clause that comes with having a current account that requires you to maintain a minimum balance. This overcomes the problem of these charges occurring when the fund does not have enough money to keep its balance due to some urgent business matter.

Features of Zero Balance Current Account

1. Minimum balance

There are no fees for failing to maintain the minimum balance. Spend every last rupee of your money without hesitation.

2. Digital debit card

Instantly obtain a virtual debit card for use with online purchases and electronic payments.

3. Transferring money

You can easily and freely transfer money online using your zero-balance account.

4. Modern banking

With just a few taps, you may complete 180+ features, including banking, bill-paying, investing, shopping, and much more. The software includes a simple interface and two-factor authentication for security.

5. Freely register for a digital bank account online:

Open a zero balance account without any limitations after completing your video KYC verification.


Zero balance current accounts offer a variety of individualised solutions to assist with financial transactions and liquid deposits. Payments to creditors are also possible with current accounts because of the bank’s check-writing capabilities.

Unlike savings accounts, current accounts often don’t pay interest and have higher minimum balance requirements. However, the ability to receive an overdraft up to a specific amount is the main advantage of a current account.

However, keep in mind that your business doesn’t really require a current account with a zero balance. The minimum balance requirement and the non-maintenance fee are typically both minor amounts. On the other hand, having a current account that is completely filled has a lot of advantages over time.

It will be simpler for you to manage your MAB as your business expands and more money will be coming into your account. Finally, growth also brings a need for a wider range of financial services, which a conventional zero balance current account cannot provide.


1. What is a Zero Balance Current Account?

Ans: A current account with a zero balance allows you to conduct transactions without the requirement of maintaining a Monthly Average Balance.

2. Do you need a GST number to start a Zero Balance Current Account?

Ans: No, it is optional to provide the GST number while starting a Zero Balance Current Account.

3. What does a Zero Balance Account serve?

Ans: A corporate checking account with a zero balance (ZBA) maintains a balance of zero at all times. When transactions take place, it is typically connected to a primary account that transfers funds into and out of the ZBA.

4. What documents are required to open a Zero Balance Current Account?

Ans: The following documents are needed for the individual account:

1. One identity proof (PAN Card, Passport, Voter ID Card, Driving License, Aadhaar Card)

2. One address proof (Passport, Voter ID Card, Rent Agreement, Utility Bills)

3. Recent colour photograph

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