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How to open a zero-balance current account online

Guide to open a zero balance current account online

How to open a zero-balance current account online

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Fi Money is not a bank; it offers banking services through licensed partners and investment services through epiFi Wealth Pvt. Ltd. and its partners. This post is for information only and is not professional financial advice.

A zero-balance current account is one where there is no need to maintain a minimum balance. Most savings accounts require you to maintain some money in it, like ₹10,000 or so. This amount varies, but in this blog we discuss ways in which you can open a zero-balance current account

Difference between a savings account and a current account

A current account is a type of account that allows limitless transactions. Current accounts differ from savings accounts because they don’t provide any interest on your balance. Usually, it’s most useful for business people and entities like public and private companies, partnership firms, and proprietors.

Unlike usual current accounts, zero-balance current accounts don’t require account holders to maintain any monthly average balance (MAB).

Monthly Average Balance (MAB)

The monthly average balance (MAB) indicates the figure 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 under consideration.

The minimum monthly average balance differs for every bank. Provided you opt for a zero-balance current account, you will not be required to maintain a minimum monthly average balance.

Here's a table illustrating the MAB to give you an example

Steps to open a zero-balance current account online

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. Note: Different banks may require different documents.  

  • Visit the bank's official website where you want to open a zero-balance current account
  • Click on the zero-balance current account opening form 
  • Fill out the details that are asked of you under the ‘personal details’ and ‘account details’ sections   
  • Upload the necessary ID & KYC documents
  • 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

  • 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/medium-sized businesses can have a longer debt collection period 

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 these categories:

  • Individuals
  • Partnership firms
  • Private and Public Limited Companies
  • HUFs (Hindu Undivided Family)
  • Specified Associates
  • Societies
  • Trusts

Documents needed to open a zero-balance current account

The documents required to open a current account online may vary for each bank, and current account type. Here are some general guidelines in terms of documents to keep handy:

Proof of identity 

  • PAN card
  • Aadhaar card
  • Driving licence
  • Passport
  • Voter ID

Proof of address

  • Driving licence
  • Utility bill
  • Passport
  • Rental agreement
  • Ration card
  • Bank statement 


  • Passport-size photos

Category-wise documentation

Hindu Undivided Family

  • Upload a letter of HUF signed by the Karta and all co-parceners 

Partnership Firm 

  • Upload a partnership deed

 Private or Public Limited Company 

  • Article of association and memorandum
  • Certificate of incorporation

Sole Proprietor 

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


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


Opening a zero-balance current account can be a convenient option for individuals and businesses who want to make financial transactions without the need to maintain a minimum monthly average balance. Unlike traditional current accounts, these accounts offer greater flexibility and cater specifically to the needs of business owners. By opting for a zero-balance current account, individuals and businesses can enjoy advantages such as managing erratic cash flows, maintaining longer debt collection periods, and having more control over their working capital.

Frequently Asked Questions 

1. Can a current account be opened online?

Yes, you can open a current account online. There are a number of banks that offer opening current accounts virtually. 

2. Who can open a personal current account?

Personal current accounts can be opened by anyone with valid KYC documents. These include Identitiy proof and address proof. The actual documents may vary from bank to bank and type of current account.

 4. How do I open a current account?

To open a current account, just log onto your preferred bank's website and download their application form. Fill it out, upload the necessary documents, and hit submit. Once they verify everything and give you the thumbs up, your account will be good to go. They'll let you know when it's all set!

5. Which bank is best for zero balance current account?

Choosing a bank that works best for you completely depends on what you need from a current account. That said, here are some top current account providing banks -

a. Axis Bank

b. IndusInd Bank

c. HDFC Bank

d. Kotak Mahindra Bank

e. SBI

f. ICICI Bank

g. Karur Vysya Bank

h. Yes Bank

i. Bank of Baroda

6. What is zero balance free current account?

A zero-balance free current account is a current account that does not require a minimum amount to keep it running. Even with zero-balance, the account holder will not be charged penalties or fines.

Intrigued? There’s more you can read

1. What is a zero balance account? Here's everything you need to know

2. Difference between zero balance account and salary account

3. Zero-balance account vs Normal account - Know the difference

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