Zero Balance Account

Meaning :

Example : 

For example, if your account balance drops to ₹0 after withdrawing all your  money, the bank will not charge you any fees - this is what a Zero Balance Account is.

How to Understand Zero Balance Account : 

1.Consider it a no-pressure bank account where you don’t have to worry about keeping a  minimum amount in your account.

2.This type of account is beneficial for individuals who may not have enough funds to  maintain a regular balance.

Importance of Zero Balance Account : 

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

2.They promote financial inclusion by allowing more people to open and use bank  accounts.

3.These accounts help reduce penalty charges since there’s no requirement to maintain a  minimum balance.

4.They are convenient for regular digital transactions like UPI, facilitating easy money  transfers.