Process for opening zero balance current account online

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By opening a bank account, you gain access to a world of financial transactions and opportunities that aren’t accessible to those without such accounts. You gain control of a safe place to store your money, for starters. Next, a bank account entitles you to conduct financial transactions safely and securely. Simply put, there are plenty of options available to you once you understand the workings of a zero balance current account opening online.

However, my personal experience with banks has taught me the importance of opening an account where there are no hidden fees involved. Further, an account that doesn’t require you to maintain a minimum balance is ideal. Since I own a shop, my earnings depend on what I sell each month, and my spending patterns fluctuate in accordance with my needs and circumstances. Therefore, the money that remains within my bank account varies from one month to another.

Maintaining the minimum balance required for my account wasn’t possible, and I was expected to pay a fee. This was upsetting as I couldn’t delay my payments or other bills that had lined up for the month. The fee charged further added to my expenses and wasn’t something I could avoid. This experience led me to believe that current accounts that permit zero balance were ideal for me. 

Continue reading to understand how I went about getting a zero-balance current account opening online.

Defining a zero balance current account 

A current account refers to a financial deposit account that allows the account holder to carry out transactions regularly. This account can be maintained individually or jointly. What makes current accounts stand out in contrast to savings accounts is that they don’t provide any interest, nor do they limit the number of transactions. Ordinarily, business people and business entities like public and private companies, partnership firms and proprietors open current accounts.  

One of the primary objectives that current bank accounts help fulfil is that they permit businesses who hold such accounts to carry out their financial business transactions with ease. Presently, there is a wide range of current accounts available in Indian banks. If, however, you were to consider the minimum balance required by the different kinds of current accounts, zero balance current accounts are the best. 

Set against this backdrop, zero balance current accounts don’t require account holders to maintain any minimum average balance, unlike generic bank accounts. Almost all banks in India today offer this variant of current account and help fulfil the business needs of individuals, business people, traders, and professionals.

Exploring the role of Monthly Average Balance 


The monthly average balance (or MAB) indicates the figure that’s arrived at by adding the closing balance at the end of each day in a month and dividing it by the total number of days in the month under consideration.  Most banks outline what the minimum monthly average balance must amount to for all their account holders. Provided you opt for a zero-balance current account, you will not be required to maintain a minimum monthly average balance. 

Eligibility requirement for a Zero Balance Current Account


In order to be eligible to open a zero balance current account that will primarily be used for business purposes, you need to fall under any one of the categories mentioned below. 

  •        Hindu undivided family    
  •        Partnership firm    
  •        Private or public limited company    
  •        Resident individual     
  •        Sole proprietor    
  •        Trust    


Documentation Needed to Open a Zero Balance Current Account


Although the documents required may vary from one bank to another for current account opening online, zero balance current accounts offered by most banks ordinarily require you to upload the following documents. 

  •        Proof of identity – This could be in the form of a PAN card, Aadhar card, driving license, passport or voter ID card.    
  •        Proof of address – This could be in the form of a driving license, utility bill, passport, rent agreement, ration card or bank statement.     
  •        Passport size photograph    


Additionally, if you happen to fall under any one of the following categories, you will need to upload the documents mentioned alongside them.


  1. Hindu Undivided Family – Upload a letter of HUF signed by the Karta and all co-parceners. 
  1. Partnership Firm – Upload a partnership deed.
  1. Private or Public Limited Company - Additional documents needed are as follows.
  • Article of association and memorandum
  • Certificate of incorporation


4. Sole Proprietor – Additional documents needed are as follows.

  • Letter of proprietorship
  • Certificate by service tax or sales tax authorities


5. Trust - Additional documents needed are as follows.

  • Resolution by trustees and board
  • Registration certificate 
  • Trust deed

Opening a Zero Balance Current Account Online


Today it is possible to open a zero balance current account at any one of India’s commercial or non-commercial banks. In order to open this account, though, you need to submit appropriate KYC documents in addition to the bank’s zero balance current account opening form. It is important to note here that different banks may require different documents.  

Follow the steps mentioned below to get a zero balance current account. Opening online accounts are easy and straightforward.


Step 1. Visit the bank's official website where you want to open a zero balance current account.

Step 2. Click on the account opening form.

Step 3. Fill out the details that are asked of you under the ‘personal details’ and ‘account details’ sections.    

Step 4. Upload the necessary documents.

Step 5. Submit your application.


Once your application has been submitted, your documents will be verified and provided your form is approved, your zero-balance current account will be opened. 

Advantages of a Zero Balance Current Account


Listed below are some of the many benefits of holding a zero-balance current account. 

  •        You can carry out financial transactions without being obligated to maintain a minimum monthly average balance    
  •        Business owners need not worry about erratic cash flows with this account    
  •        These accounts allow business owners to have a greater level of flexibility with their working capital    
  •        With a zero balance account, small- and medium-sized businesses can have a longer debt collection period    


Wrapping Up 


While the idea of having a zero balance current account is enticing for business owners, banks and financial institutions will lose on one major source of revenue, ie. MAB non-maintenance penalties. Before you open a zero-balance current account, it is essential to read the fine print associated with the account and the financial institution where the account would be held and whether or not it is suitable for your type of business.


Frequently Asked Questions:


Q1. Can a current account be opened online?


A1. Yes, you can open a current account online. 


Q2. Can I open a personal current account?


A2. Current accounts can be opened by individuals, trusts, societies, Hindu undivided families or specified associations, public and private limited companies as well as by partnership firms. Rather than being used for personal purposes, their primary objective is to help business-oriented accountholders carry out financial transactions with ease.


Q3. Can we open current accounts online? 


A3. Yes, you can open current accounts online, and they can be held individually or jointly. 


Q4. How do I open a current account?


A4. In order to open a current account, simply download the current account application form from the official website of the bank of your choice. Make sure to fill it out correctly and upload the asked for documents along with your completed form. Once your documents have been verified and your application has been approved, your account will be opened, and you will be informed of the same.

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