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Zero Balance Account

Meaning :

A Zero Balance Account is a bank account that does not require you to keep any minimum balance. You can have a balance of ₹0 without paying any fees.

Example :

For instance, if your account balance becomes ₹0 after withdrawing all your money, the bank will not charge you any fee - this is a Zero Balance Account.

How to Understand Zero Balance Accounts :

Think of it as a no-pressure bank account where you don’t have to worry about keeping a minimum amount.

It’s great for people who may not have a lot of money to save.

Importance of Zero Balance Accounts :

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

2. They encourage financial inclusion by allowing more people to open bank accounts.

3. These accounts reduce penalty charges since you don’t have to maintain a minimum balance.

4. They are convenient for regular digital transactions like UPI, making it easy to send and receive money.