Zero Balance Account

Meaning :

Example : 

For instance, if your account balance falls to ₹0 after withdrawing all your  funds, the bank will not impose any charges - this illustrates the concept of a Zero  Balance Account.

How to Understand Zero Balance Account : 

1.Think of a Zero Balance Account as a no-pressure banking option where maintaining a  minimum balance is not a concern.

2.This type of account is particularly useful for individuals who may not have sufficient  funds to keep in their accounts regularly.

Importance of Zero Balance Account : 

1.Zero Balance Accounts facilitate access to banking services for students, beginners, and  low-income earners.

2.They enhance financial inclusion by allowing a broader segment of the population to  open and utilize bank accounts.

3.These accounts minimize penalty charges since there is no requirement to maintain a  minimum balance.

4.They are particularly convenient for regular digital transactions, such as UPI, enabling  efficient money transfers.