Digitalization is taking over every sector and industry, including the banking sector. You no longer need to go all the way to the bank just to open a bank account with almost any bank in India. You can now easily open a bank account online in the comfort of your home without visiting the bank branch. It means the account opening is paperless without going through the process of filling and signing different documents.
The good thing now is that most banks don’t require a minimum average balance for you to open an account with them. You can open a zero-balance account online conveniently from anywhere without maintaining an average monthly balance. Most banks will need you to open your account using your Aadhaar card and PAN card as well as other details. But before we go into that, we need to understand what a zero-balance account means.
Zero-balance account explained
This means that any savings account you open for free of charge with a zero balance in it. Legally, it is known as Basic Savings Bank Deposit (BSBD). When this was introduced, it was discovered that more people began to open savings accounts.
A savings account is where you deposit money to keep it safe. it is either maintained by an individual or it can be a joint one ( more than one person). Ideally, a savings account needs at least a minimum balance for its maintenance. But for a zero bank account, you don’t need any money, rather the bank provides the same facilities to maintain the account just as the way they provide for a savings account.
The only limitation for a zero balance account is that you are allowed to have limited transactions in a month which is around four transactions. But once you exceed that, your accounts will be converted to savings accounts.
Benefits of Putting your Money Into a Zero-Balance Account
The following are some of the advantages of opening a zero balance account:
No Minimum Balance
Fees Account holders are not charged fees for keeping a zero or minimum balance. Normally, it will encourage more people to open savings bank accounts.
Complimentary Benefits
Individual account holders are all provided with free services. These benefits include a free passbook as well as free cash and check deposits at any branch.
Additional advantages
A zero-balance account holder has access to a debit card and an ATM card. In addition, they can also use mobile and/or internet banking. Aside from these, a safe deposit box is also available. The fees charged for these services are minimal.
Supports digital payments
Account holders are given a card that allows them to make digital payments. These cards make online payments simple and convenient by utilising electronic payment gateway systems such as RuPay.
Required documents
You can open a zero balance account with some banks without a PAN card. Though the account will be temporary and with limited benefits and features but can be converted to a regular account once you provide your PAN card. To open a bank account without a PAN card you will need an address proof and an ID card for bank KYC requirements. Though banks in India formerly had to ask for your PAN card before you can open an account with them. But now it is longer a compulsory document to provide when opening an account.
Let’s quickly consider some of the documents that will be needed to open a bank account if you don’t have a PAN card.
Address Verification Documents
Utility bill (electricity, gas, water, telephone)
Receipt of property or municipal taxes
Aadhaar Number
Voter identification
Passport
Driver’s Licence
Ration Book
Identification Documents
Aadhaar Number
Voter identification
Driver’s Licence
Passport
Other government-issued photo identification documents
If you do not have a PAN card, some banks may require you to submit Form 16.
Documentation Supplements
In addition to the ID and address proof documents, you may be required to submit your most recent passport-sized photographs, a properly completed account opening form, and your signature or thumb impression in the presence of a bank official.
Criteria for Opening a Bank Account without a PAN Card
Different banks in India have different policies, as well as different requirements and eligibility criteria. However, most Indian banks have standard eligibility requirements, which are listed below. You must also:
Be an Indian citizen.
Be at least 18 years old.
Have a valid ID and proof of address.
Note: You can also open an account for minors (those under the age of 18) as their parent or legal guardian.
Lastly
Opening a bank account these days has been made easy. To open an account without a PAN card requires only a few documents which makes your banking experience an hassle free one.
