The State Bank of India (SBI) offers zero balance savings accounts to encourage people to do more investments and savings. Maintaining average monthly balance (AMB) is not applicable to the Zero balance saving accounts. Average monthly balance (AMB) is the minimum amount a depositor should maintain in his account. The following categories of SBI do not apply the AMB.
PMJDY and other financial inclusion accounts
All the accounts opened under Pradhan Mantri Jan-Dhan Yojana (PMJDY ) are zero balance saving accounts as the SBI has clarified that the PMJDY is a mission of current central government for financial inclusion and to ensure access to financial services, banking/ savings and deposit accounts, remittance, credit, insurance, pension in an affordable manner’.
Salary Accounts
As per the customer’s need, SBI offers special salary account packages for different sectors, such as central government, state government, police forces, defense forces, paramilitary forces, corporates/ institutions etc. These accounts can be opened with zero balance.
Basic Savings Bank Deposit (BSBD) accounts
The SBI has said that It is primarily meant for poorer sections of society to encourage them to start saving without any burden of charges or fees, therefore, any individual having valid Know your customer (KYC) documents can open the BSBD account with zero balance.
Pehla Kadam and Pehla Udaan accounts
The State Bank of India (SBI) offers a special account named ‘Pehla Kadam and Pehli Udaan’ especially for the children which is meant to help minor learn the importance of saving money. It also allows them to know the value of money. Maintaining average minimum balance is not applicable to these accounts. Therefore, children having the ‘Pehla Kadam and Pehli Udaan’ accounts can maintain it with zero balance.
All Pensioners Account
All the pension account of maintained under SBI do not force to maintain an average minimum balance. These accounts run as zero balance saving accounts.
Prasanta Patnaik