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How to open a zero-balance current account online

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How to open a zero-balance current account online

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Nowadays, opening a zero-balance current account online is a cakewalk. However, it's important to open a zero-balance current account with no hidden fees & no minimum balance requirements — if you're an entrepreneur or freelancer. Primarily because your earnings may vary each month & spending patterns might fluctuate accordingly.

What is a zero-balance current account?

A current account is a financial deposit account that allows limitless transactions. Current accounts differ from savings accounts because they don’t provide any interest on your balance. Ordinarily, business people and entities like public and private companies, partnership firms and proprietors open current accounts (both individual or joint accounts).

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

Let's understand 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.

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:

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

Documents needed to open a zero-balance current account

Although the documents required to open a current account online may vary for each bank, zero-balance current accounts ordinarily require you to upload:

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


While the idea of having a zero balance current account is enticing for business owners, banks will lose out on one major source of revenue, ie. MAB or non-maintenance penalty fee. Before you open a zero-balance current account, it’s important to determine if it suits your business needs. So, please take a moment to read the fine print associated with the account.

Frequently Asked Questions 

1. Can a current account be opened online?

Yes, you can open a current account online. 


2. Can I open a personal current account?

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 account holders carry out financial transactions with ease.


3. Can we open current accounts online? 

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

4. How do I open a current account?

In order to open a current account, simply download the current account application form from the official website of your preferred bank. Make sure to fill it out correctly and upload the required 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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