The PM Jan Dhan Yojana, launched by Prime Minister Narendra Modi in 2014, has now been running for a decade.
The scheme was created to connect every Indian to the banking system, ensuring that people directly receive the benefits of government schemes.
The accounts opened under this scheme are Zero Balance Accounts, meaning there’s no requirement to maintain a minimum balance.
Other Zero Balance Accounts
Besides Jan Dhan Accounts, there are other zero balance accounts available, including those offered by the State Bank of India (SBI).
One such account is the Basic Savings Bank Deposit Account (BSBDA), commonly known as a zero balance account. Here’s what you need to know about SBI’s BSBDA:
Who Can Open This Account?
Anyone who meets the Know Your Customer (KYC) requirements can open this account. Documents such as an Aadhar card and PAN card are usually sufficient.
The account can also be opened jointly, with all account holders needing to provide their documents.
Benefits of Zero Balance Accounts
No Penalty for Balance Shortfall: Unlike other bank accounts that may charge a penalty for not maintaining a minimum balance, this account does not have such fees.
No Limit on Maximum Balance: You can keep any amount in the account without any restrictions.
Basic Banking Facilities: Account holders receive a bank passbook, a basic Rupee ATM-cum-debit card,
and access to mobile and internet banking. However, a free chequebook is not included.
Convenient Transactions: You can withdraw and transfer money using an Aadhar card or UPI app.
There are no charges for cash transactions through electronic channels like NEFT/RTGS. Additionally, there are no fees for reactivating a closed account or for closing the account.
Free Withdrawals: You are allowed four free withdrawals per month from either the bank’s or another bank’s ATM or branch.
Important Conditions
You can only open a zero balance account at a bank if you do not already have a savings account with that bank.
If you already have an account and open a zero balance account, you must close the previous account within 30 days.
