At a time when reports have come up regarding whopping sum to the tune of Rs. 5000 crore being collected by banks across the country for non-maintenance of average minimum balance in your savings account, other than the basic savings bank deposit or BSBD account, you have yet another option if you don't want to trap yourself with this commitment as zero-balance or no minimum balance digital savings account.
How to open zero balance digital Savings Account?
Digital savings account allows an individual to open a savings account with the bank instantaneously as it follows the aadhaar OTP-based eKYC or Know Your Customer guideline. When such an account is being opened by the individual, he or she receives an OTP or one-time password on his or her aadhaar-registered mobile number. This when entered is used to authenticate and verify the identity of the individual opening the digital account.
Note that a person verified through this means i.e. aadhaar-based eKYC is deemed as a 'partial KYC' customer. This is as per the RBI guidelines and certain limitations then apply to such a customer until and unless he or she is done with the full KYC or biometric based e-KYC or authentication for which the maximum time allowed is until one year from the account opening date.
Limitations that apply to 'Partial KYC' customers
1. The total of all balances cannot exceed Rs. 1 lakh on an annual basis
2. The total of all credits should not be over Rs. 2 lakh in a year
3. No other borrowing account except a term loan of up to Rs. 60,000 in a year is allowed to such a 'Partial KYC' customer
4. No RTGS transactions allowed
Digital Savings Accounts by different banks
|Bank||Digital Savings Account||Rate of Interest|
|Kotak Mahindra Bank||Kotak 811||Up to 6%|
|DBS Bank||DBS digiSavings||6% on balance up to Rs. 1 lakh|
|Fincare Small Finance Bank||Fincare 101||6% on balance of up to Rs. 1 lakh|
|Equitas Small Finance Bank||Equitas SelfieSavings||6%|
|RBL Bank||RBL Abacus||5.5% on daily balance of Rs. 1 lakh|
|IDFC Bank||IDFC Zero Balance Online Savings account||4% p.a. on end of day balances|
|Axis Bank||Axis ASAP||3.5% for balance up to Rs. 50 lakhs|
|Standard Chartered Bank||StanChart Digital Savings account||3.5%|