Zero balance saving account banks are reshaping India’s financial architecture. These accounts do not demand a minimum monthly balance and have emerged as essential tools for financial inclusion. From urban gig workers to rural households, the accessibility of such products is expanding access to the formal banking system, particularly for those who previously lacked one.
Government-led initiatives like Jan Dhan Yojana have opened over 500 million savings accounts in the past decade. As of 2025, it is estimated that nearly 67 percent of these are zero balance accounts. The adoption curve has now shifted from rural public banks to private-sector offerings and digital-first models, thanks to better mobile access, Aadhaar-enabled onboarding, and low transaction friction.
10 Banks Offering Zero Balance Saving Accounts
1) State Bank of India (SBI) – India’s largest public-sector bank offers the Basic Savings Bank Deposit Account (BSBDA). This zero balance savings account comes with a RuPay debit card, free monthly e-statements, and eligibility for direct benefit transfers. It supports four free ATM withdrawals per month and is available across the country’s rural, semi-urban, and urban branches.
2) HDFC Bank – HDFC’s Basic Savings Bank Deposit Account is popular among salaried individuals and pensioners. It provides zero balance maintenance, a RuPay card, SMS alerts, and four free withdrawals monthly from non-home branches. The bank also offers a user-friendly mobile app with vernacular support.
3) Kotak Mahindra Bank – Kotak’s 811 Digital Bank Account was among the first to capitalize on Aadhaar-based eKYC. The account requires no paperwork, supports full digital onboarding, and offers up to 4 percent interest on savings. It includes a virtual debit card and mobile banking. The account is ideal for freelancers, students, and remote workers.
4) ICICI Bank – ICICI’s Basic Savings Account offers all key features without any minimum balance requirement. Users get internet and mobile banking access, a free passbook, a cheque book on request, and debit card access. ICICI also provides an “Insta Save” account that can be opened instantly online.
5) Axis Bank – Axis Bank offers a Basic Savings Account with zero balance requirement. It includes ATM and mobile banking, SMS alerts, and a RuPay debit card. Ideal for retirees and homemakers, the account comes with a cap on monthly cash deposits and ATM usage, after which nominal charges apply.
6) Airtel Payments Bank – Airtel Payments Bank offers fully digital zero balance savings accounts. It allows Aadhaar-based account opening, provides 2.5 percent annual interest, and offers cashback rewards for utility payments. Cash deposits and withdrawals can be done at thousands of Airtel retail stores nationwide.
7) Paytm Payments Bank – With over 100 million wallets integrated into banking operations, Paytm Payments Bank offers seamless digital savings accounts. There is no minimum balance, and the account comes with a digital debit card. It offers cashback on transactions and supports real-time transfers through UPI and IMPS.
8) India Post Payments Bank (IPPB) – IPPB uses India’s extensive postal network to reach the last-mile customer. Its zero balance savings account is Aadhaar-linked, enables mobile banking, and offers doorstep services—especially valuable for the elderly and differently abled. Cash withdrawal and deposit facilities are available at over 1.5 lakh post offices.
9) IDFC FIRST Bank – IDFC FIRST’s zero balance account offers competitive interest rates—up to 7 percent in some tiers—free fund transfers, and a paperless onboarding experience. It includes monthly interest credit, free debit card issuance, and an intuitive mobile app, appealing to young professionals and first-time savers.
10) RBL Bank – RBL’s Digital Savings Account provides instant video KYC onboarding, zero balance maintenance, and digital tools like budgeting dashboards. Customers receive a free virtual debit card, SMS alerts, and app support for bill payments and recurring deposits. The account is suited for mobile-first users.
Government Action: A National Shift Toward Zero Penalty Banking
In a decisive move reflecting the broader financial inclusion agenda, several Indian public sector banks have announced sweeping changes to their savings account structures. As of July 2025, Canara Bank, Punjab National Bank, Bank of Baroda, State Bank of India, and Indian Bank have eliminated the average monthly balance requirement for most savings accounts. This includes regular, student, salary, and even NRI account types.
The decision followed growing public criticism that penalties for not maintaining a balance disproportionately impacted low-income and rural account holders. According to statements from finance ministry officials, the policy change aims to ensure that banking remains accessible and non-punitive for every citizen. From July 1 onward, Indian Bank scrapped all minimum balance mandates across accounts, regardless of geography or customer segment.
This shift comes amid reports that penalty revenues on non-maintenance had begun to surpass the interest earned on customer deposits for many state-owned banks. Rather than penalizing dormant or low-use customers, institutions are now focusing on volume, digital engagement, and transactional depth. These government-supported efforts reinforce the rise of true zero balance saving account banks, where accessibility is no longer conditional on income or geography but is a default feature of modern banking.
Important Source – No penalty on lower balance: These banks have removed savings accounts balance requirement.
Why These Accounts Are Gaining Popularity
Zero balance saving account banks are not just offering convenience. They are reshaping financial behaviors in a country where nearly 190 million adults were previously unbanked. These accounts have enabled better access to government welfare, formal credit history, and digital transactions. Moreover, for daily wage earners and small-scale traders, not having to worry about maintaining a balance removes a major psychological barrier.
According to estimates from a 2024 behavioral finance survey, 4 in 10 zero balance account holders in urban India receive their salaries or freelance payments directly into such accounts. Meanwhile, rural adoption has increased by 46 percent since 2020, thanks to mobile access and simplified KYC norms.
Key Features to Watch For Before Choosing a Bank
Choosing the right zero balance savings account depends on the user’s needs and lifestyle. These are the primary features to evaluate:
- Debit Card and ATM Access – Does the bank offer a physical or virtual debit card? Are ATM withdrawals free or limited?
- Digital Experience – Is the app available in your language? Does it offer UPI, bill payment, and instant fund transfer?
- Fees and Hidden Charges – Some accounts advertise zero balance but charge for cheque books, alerts, or cash handling beyond limits.
- Interest Rates and Cashback – Banks like IDFC FIRST and Kotak offer competitive interest, while Paytm and Airtel provide transactional rewards.
- Branch and Customer Support – For users not fully digital, access to nearby branches or doorstep support (like with IPPB) is critical.
Challenges That Still Exist
Not every zero balance saving account lives up to its promise. While opening is easy, many accounts remain inactive due to low financial literacy. Others get penalized with hidden fees. Inactive accounts also pose a regulatory challenge, with estimates indicating that up to 30 percent of Jan Dhan accounts saw no transactions for over a year.
Some banks quietly reduce features over time, requiring a minimum deposit to access cheque books or certain services. Customers need to read the fine print and stay updated through banking notifications.
The Road Ahead for Financial Access
With the removal of minimum balance penalties by major public sector banks and the continued rise of digital-first offerings, zero balance saving account banks are fast becoming the norm across India’s financial ecosystem. The shift reflects a broader policy push toward accessible and inclusive banking.
As of mid-2025, more than 60 percent of new savings accounts opened in private and digital banks do not require a minimum balance. Industry experts view this as a decisive step in expanding formal financial access to underserved segments.
For millions of users, including daily wage earners, small traders, students, and pensioners, zero balance accounts offer more than basic banking. They provide secure storage, digital tools, and freedom from financial penalties.
The focus is now expected to shift toward sustained engagement, financial literacy, and building long-term value for low-income customers. As banks realign their strategies around inclusion, the zero balance model may soon become the default for entry-level banking in India.
