The advent of technology and Artificial Intelligence has changed the way we used to do things. The banking system has also changed with time and technology. After the drastic reduction of smartphone prices and mobile internet costs, people, now tend to complete everything from the mobile. Smartphone has completely digitalized our daily life. From shopping to booking movie tickets, everything can be possible from the mobile. Banking is not also an exception. Now you can open a Digital Saving Bank account and perform all the banking tasks from mobile banking apps, without a single visit to any branches.
In this article, we will discuss how to open a Zero Balance Digital Bank account in India and some best online digital savings accounts with current KYC procedures to open such accounts.
The Digital Banks that are discussed here are best for the students also because all are zero balance savings accounts and can fulfill all the requirements of a regular savings account.
What is a Digital Bank Account?
The Indian Banking system is an archaic, paper-oriented process that requires a lot of paperwork and time to complete any simple task. In many Western countries, the concept of neo-banking or branchless banking has already been started. But, in India, hundreds of people gather every day in the bank branch to withdraw a couple of hundred of Rupees. In a country of Billions of people, if we need a whole day to open a Bank Account, then complete digitalization of the Indian Financial system will be a distant dream. The launch of Aadhaar, the unique identification number, plays a significant role in the digitalization of the Indian Economy.
A Digital Bank Account or sometimes we may also call it a Virtual Bank Account is a type of account that anyone can open without visiting any branches. It’s a complete paper-less account opening process and it can only be opened online from the bank’s official website or from their mobile banking apps. The most important part of a Digital Savings bank account is that you can open it from the comfort of your home within 5 minutes and get all the banking facilities of a normal bank account. You do not have to stand in any Crowded Indian Bank branches long queue and verify all your documents.
Different Banks advertise their Digital Savings Accounts by different names like Selfie Accounts or DigiSB Accounts etc., but the main features of these accounts are the same.
You can get your Bank Account number immediately after completing all the processes for opening the Digital bank Account online. Some banks may also have the option to create a free Virtual Debit Card after creating the Digital account. You can immediately add funds and use the account for online transactions or any other banking work.
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Benefits of Digital Bank Account
These are the key benefits of opening an online Digital Bank Account in India
- You can open a Savings Bank account from the comfort of your home without visiting branches.
- Less time-consuming and more flexible.
- You will get all the facilities of a normal savings bank account and you will have the option to access the Bank’s internet banking portal.
- Complete zero balance account, no requirement for minimum balance maintenance.
- You also have the option to convert into a regular savings bank account after full KYC.
- You can use the Digital bank Account for online shopping, booking movie tickets, etc.
Features of Digital Bank Accounts in India
The key features of a Digital Savings Bank account in India are
- A complete paperless digital process of opening a bank account.
- Instant Account number generation.
- A Digital Savings account can not be a Joint Account.
- Option for the creation of Visa or Rupay Virtual Debit Card which can be used in India or international payments.
- Earn interest on your average daily balances just like a normal savings bank account.
- No minimum monthly balance requirement.
- Option for money transfer between the bank accounts through IMPS or NEFT (Chargeable) or from Bank account to the mobile wallet.
- Free monthly or quarterly email statements.
- Cash Deposit is chargeable.
- Access to the Internet banking portal.
- Free Bill Payment, online Recurring Deposit or Fixed Deposit creation, etc.
- You can use the Mobile Banking App for a hassle-free transaction from home.
- Option for the creation of VPA ID and UPI money transfer.
- Cumulative credit of not more than Rs.2.00 Lacs in a Financial Year and the maximum upper limit of Rs. 1.00 Lac can be maintained at a time in a Digital Savings Bank Account in India.
What are the requirements for Opening of Digital Bank Account in India?
If you want to create an online zero-balance Digital Bank Account in India, you have to remember the following
- You must be over 18 years of age.
- You need both a PAN and an Aadhaar Card to open a Digital Account.
- You have to complete full KYC i.e. video KYC or Paper-based verification or Biometric verification within 12 months of opening the Digital Bank Account, otherwise, the Account will get deactivated after 12 months.
Update: Many banks already started the Video KYC process, therefore you may not visit branches to make your digital savings account fully KYC verified. But you have to complete the process within 12 months of opening the account, otherwise account will be closed.
***Digital zero balance accounts are mostly BSBD Accounts, which are generally opened at CSP points. Many banks are converting these accounts to full KYC-verified regular accounts through video KYC. As per RBI guidelines, if you have these types of Digital Accounts or BSBD Accounts from any bank, you can not open a regular account from the same bank later. Either you have to close the digital account, or you have to convert the account to a regular savings account by submitting a written application to the branch.
What are the Current KYC norms for opening Digital Savings Accounts in India?
As it is a completely paperless process, all you need is a valid Aadhaar and PAN card number to open a Digital Bank Account in India. Up to the last year before the Supreme Court’s verdict on Aadhaar, all the Indian Banks had their own Digital Account opening option by different names. However, after September 2018, many Banks discontinued the Digital Savings Account opening option. Banks have to fetch the user’s information like name, address, DOB, or eSignature from the UIDAI database by Aadhaar OTP-based eKYC to open the account. But now any financial institutes in India cannot access the UIDAI database without the consent of the Aadhaar holders. For the same reason, you can not create Mutual Fund folios online through Aadhaar-based eKYC. (Updates: Adhaar OTP-based Mutual Fund Folio creation has been reintroduced.)
You can also generate a temporary Aadhaar Number or Virtual Aadhaar ID (VID) if you do not want to reveal your actual Aadhaar Number to any financial agency. VID is a temporary randomly generated 16-digit number that can be used for eKYC purposes and any Fintech agency can not store VID information in their database. You can generate VID from UIDAI’s official website.
To generate a VID visit here.
RBI recently allowed fintech companies to fetch customer information by validating Adhaar OTP. During the recent pandemic, most of the banks have started Instant Account opening through Video KYC and Adhaar OTP validation. All the digital bank accounts are also open now through the Video eKYC process, where a bank executive will physically verify documents through Video calling. To know details about how Video EKYC works, please refer to this article
Please remember that if you fail to verify your full KYC to any bank branches, you won’t get any chance to reopen the same zero balance digital account next time with the same Adhaar and PAN number. You have to open a regular savings account where you have to maintain the minimum balance as applicable to the particular bank.
Basic Savings Bank Deposit Account (BSBDA) vs. digital Savings Account
As per Govt. of India directives, every Indian Commercial bank has to open a balance savings account for Indian citizens. These types of accounts are also termed PMJDY Accounts (Pradhan Mantri Jan Dhan Yojana Account). The BSBA is mainly for the purpose of DBT and the National Mission for Financial Inclusion launched by The Department of Financial Services (DFS). The BSBDA account has all the basic facilities with limited features. You also can get a Rupay Debit Card for the transaction in India. PMJDY account can only be opened by visiting branch access points and through Aadhar-based biometric verification.
A Digital Savings Account sometimes also called an instant savings account is a kind of full-fledged Bank account for Tech-savvy individuals. You can get all the Banking facilities at par with any Privilege Bank Account in India with no compulsion to maintain any minimum balance. You will also get a Virtual Debit card with an option of a physical debit card as well.
Best Zero Balance Digital Bank Account in India
Here is the list of some best Zero Balance Digital Bank Accounts in India which you can open by installing the mobile app or from the Bank’s Official Websites
|Virtual Debit Card Type
|How to Open
|Axis Bank ASAP
|Digisavings by DBS
|AU Bank Digital Account
|ICICI Bank Digital Savings Account
|RBL Bank Digital Account
|up to 7.50%
|SBI Insta Plus Account
1.# Kotak 811
Kotak 811 is the best Digital Savings Bank account in India offered by Kotak Mahindra Bank. You can open your Kotak 811 Bank Account from home by installing their mobile App or from their Official websites. The Kotak Bank’s 811 has four variants,- 811 Limited KYC, 811 Lite, 811 Full KYC & 811 Edge Account. Kotak 811 Lite is basically a BSBA Account with a very limited banking facility.
Kotak 811 Limited can be converted into a full-fledged Banking Account without any minimum balance compulsion. However, you have to maintain a balance for the 811 Edge Account.
Kotak Bank has also the best mobile banking app in India.
Kotak Bank is the first Bank in India where you can register your Online Mutual Fund SIP URN(Unique Registration Number) or Loan EMI eMandate(ECS) from both Debit Card and NetBanking.
- Zero Balance Digital Bank Account.
- Register Mutual Fund SIP URN or Loan EMI eMandate from a Debit Card or NetBanking.
- Earn interest as a normal Savings Bank Account.
- Free Virtual Debit Card with international Transaction enabled.
- Cheque Book facility for full KYC Account.
- Free IMPS, NEFT, and UPI transfer facility.
- No restriction on credit if a fully converted KYC Account.
- WhatsApp Banking.
- Kotak Bank NetBanking Access.
- Numerous Cashback and discount programs with several merchant websites.
Kotak 811 is so far the most innovative Digital wallet cum Account in India. For details on Kotak 811, visit here.
2.# Axis Bank ASAP
Axis Bank ASAP comes second on this list. Axis Bank ASAP account has almost the same features and facilities as the Kotak 811 Account. You can open your Zero balance Axis Bank ASAP Digital Account with a valid PAN and Aadhaar Card and instantly get your Account Number and Virtual Debit Card Number. You will also get your Axis Bank NetBanking login ID just after opening the account by email.
You can use your Axis Bank ASAP Account for every banking need.
Axis Bank has also launched “Express FD”, You can open a complete digital Fixed Deposit without opening any Bank Account with Axis Bank, though you need the bank account at the time of maturity of the Fixed Deposit.
- No Minimum Balance requirement.
- Visa Virtual Debit Card with international transaction rights.
- Earn Interest.
- Access to Axis Bank Mobile Banking & NetBanking websites.
- Various merchant offers and rewards programs.
- Fund Transfer facilities like IMPS, NEFT, or BHIM UPI, etc.
3.# Digisavings by DBS
Digisavings is the first Digital Wallet cum Account offered by the Singapore-based Bank in India. DBS Bank is one of the leading banks in Southeast Asia and is regarded as one of the top digital banks in Asia. You can open a Digisavings Account by installing the Digibank mobile App and authenticating the Aadhaar-based OTP and PAN verification from NSDL. However, you have to convert the half-KYC account to a full KYC compiled zero balance digital savings account by completing the video KYC process within 12 months.
You have the option of creating a Virtual Visa Debit card just after opening the account, the card can be used in the domestic and international payment gateway. However, you can maintain only deposits up to Rs.1.00 lacs, if it is not converted to a fully KYC-compliant regular savings account. Digibank offers savings bank interest of up to 7% for the balance above 3 lacs.
- Complete paperless Zero Balance Savings Account.
- Earn interest as a Regular Savings Account.
- Soft Token System for faster online transaction processing.
- Reward programs are named Digi Bucks.
- Virtual Visa Debit Card with contactless payment at merchant stores.
- Instant money transfer through UPI, IMPS, or Bharat QR.
- Account aggregator service.
- Deals and Offers with various online eCommerce merchant partners in India.
- Savings deposit comes under the DICGC insurance claim.
4.# Indus Delite Online Savings Account
IndusInd Bank is one of the leading Private Sector Banks in India, having a pan India presence, also offers video-based digital Savings, which can be opened sitting at Home, just using Adhaar and PAN Card. Similar to other digital savings accounts, the IndusInd Bank Delie Savings account number can be generated instantly just by completing the step-by-step account opening process. You can also generate an account number of your choice like the mobile number, DOB, or any of your lucky numbers, etc.
IndusInd Bank offers three types of digital savings accounts, namely Indus Delite, Indus Multiplier Max Savings account, and Indus Digi Start. Among all of them, the Indus Delite online Savings Account is the best for offers and rewards.
IndusInd Bank Delite savings account has multiple cashback and discount offers with several merchant’s websites and you may earn interest rates of up to 6.75% on your deposit. There is no compulsion to maintain any minimum balance, however initial funding of INR 10000 is required to avail of the zero balance feature of the IndusInd Bank online savings account.
IndusInd Bank has a very good & feature-rich mobile banking app for completing all banking needs from the smartphone. You will get a Virtual Visa Indus Delite debit card, with an option for a physical card by paying some charges (₹500+Tax).
You may also register your IndusInd Delite Platinum Debit card to Samsung Pay and Google Pay for contactless payment.
Indus Delite online savings account is one of the best and premium digital savings accounts to cater to all your banking needs digitally, comes close to Kotak 811 and Axis ASAP, in terms of offers and features.
For more details on features and offers, you may visit here.
- Access to IndusInd Bank Mobile and NetBanking services.
- Feature-riched platinum virtual debit card with international transaction access.
- Choice Account Number.
- Video Chat with Bank officials for branchless banking.
- Reward Programs with debit cards.
- Free Buy One Get One Movie Tickets on BMS and 5% Cashback on Amazon.
- Free checkbook on demand.
- High Cash Withdrawal Limit on debit card.
5.# AU Bank Digital Savings Account
AU Digital Savings Account, by AU Small Finance Bank, is one of the top Digital Bank Accounts right now in India, and increasing its customer base every day due to its offers and discount programs with 225+ top brands including Amazon, 1mg, Flipkart, and many more.
You can open a completely paperless digital savings account from your smartphone and start using AU Bank’s facilities on its mobile banking app AU0101. AU Bank provides interest on Savings deposits up to 7.25% (with monthly payouts), which is one of the highest rates offered by any bank right now in India.
AU Bank offers 24×7 video call-based banking, which means you will get access to bank branches digitally at any time during the day and have conversations with real bank executives.
You will get a feature-rich Virtual RuPay Platinum debit Card just after completing the digital account opening process, the card can be enabled for international transactions with forex markup fees of 3.50%. You will also get ₹250 Amazon Voucher for the first debit card transaction of a minimum transaction value of ₹1000. For more details on the AU Bank Digital Savings account visit here. For more information on AU Bank Debit cards, visit here.
If you are a busy person and looking for a complete digital banking account, then AU Bank Digital Savings account can be the best choice for you. The bank also offers more premium digital banking accounts, Royale, and Platinum Savings accounts, where you can get more premium features.
- RuPay Platinum Debit card, annual fee ₹150.
- Exclusive offers and a Cashback program on debit cards.
- High interest on savings deposit, up to 7.25% with monthly payouts.
- 24×7 Branchless video banking.
- Touch & Pay NFC payment for NFC-enabled devices.
- Add funds by Credit/Debit Card, or net banking.
6.# ICICI Bank Digital Savings Account
ICICI Bank, India’s one of the leading private banks, and probably the technologically most innovative banks in India, also started zero balance digital accounts with no initial deposits. You can open an online ICICI Bank digital account by visiting their official website from a PC or mobile. The account opening process is the same as other digital accounts, by PAN and Adhaar OTP authentication. The account will open immediately and you will also get ICICI Bank Virtual Visa debit card. The funding can be done only through UPI.
Lately, ICICI Bank came out with a digital savings account, and this is the best digital bank account right now in India if we consider its innovative banking technology. You can get access to your ICICI Bank digital bank account through its award-winning mobile banking app iMobile or NetBanking for all banking requirements. Hope, you never have to visit a branch, if you have the ICICI Bank mobile banking app.
ICICI Bank digital account is a kind of full-stack Neobank with all the banking requirements from digital credit to Wealth Management in a single mobile application. The Bank has an exclusive credit card base, and you may access the same if you are eligible. You may also use ICICI Bank Pay Later with UPI tap & pay, the first bank to offer this service.
- Platinum Visa Virtual Debit card with international transaction access.
- No initial funding requirement, complete digital account.
- Exclusive offers and discount programs with various online merchants in India.
- Access to Internet banking and Mobile banking app.
- Wealth Management & Digital Credit line.
- ICICI Bank pay later with UPI Tap & Pay.
7.# Jupitar Money
Jupiter Money is a mobile app-based fully digital zero-balance bank account for the tech-savvy GenY that can be opened from your mobile. Jupiter Money is a customer-facing Neobank or New Age Bank, partnered with Federal Bank, that offers a digital zero balance bank account, although you may not start the service of Jupiter Money immediately if you don’t deposit money after opening the bank account.
You will get the instant bank account number from Federal Bank, with Federal Bank IFSC Code and UPI ID instantly just after opening the account. You will also get a virtual Visa Debit Card with an option of a Physical card after paying some charges. You have the option to enable domestic and international access to your debit card within the Jupitar Money App itself.
Like other digital accounts, you can open a Jupiter Money account using Adhar OTP and PAN verification from NSDL. But, you have to verify the KYC to the bank employees within 12 months to avoid the closure of the account. You can initially deposit up to Rs.1.00 lacs to your Federal Bank Jupiter Money account and earn up to 3.05% interest.
Jupiter Money is a customer-faced Neobank (Mobile App-based Bank), not regulated by the RBI, but your account will be opened on Federal Bank, which is RBI regulated commercial Private Bank, and eligible for DICGC insurance.
- Virtual Visa Debit card with international payment access.
- No minimum balance requirement.
- Instant Fund transfer using UPI, IMPS, or Debit card.
- Small personal loan according to your Credit Score.
- In-app investment in Mutual Funds, FDs, etc.
- Account Aggregator service, Check the balance of all your accounts.
8.# RBL Bank Digital Savings Account
RBL Bank, one of the leading Private Bank, based in Mumbai, has also the option of creating a digital bank account within 5 minutes from the comfort of your home, all you need is a PAN and Adhaar Card. You will also get a virtual debit card for online use, like shopping, recharges, bill payments, etc. The digital savings account from RBL can be accessed from the bank’s mobile banking app.
- Earn high interest up to 7.50% of your Savings deposit.
- Virtual Debit card for online transactions.
- No minimum balance requirements.
9.# Insta Plus Savings Account from SBI
If you like to open a complete digital paperless savings account from India’s largest bank, then Insta Plus Savings Account is the best option. Insta Plus Savings Account can only be opened from SBI’s official mobile banking App, SBI Yono. You will get a Virtual RuPay Debit Card just after completing the account opening process.
As I have mentioned earlier, SBI Insta Plus Savings Account is a kind of BSBD Account, with no compulsion to maintain any minimum balance, but it has some limitations. You may not be able to withdraw or deposit cash more than Rs.10000 or a limited transaction upper limit as per BSBD Account norms. However, if you want to use this account for a limited amount of transactions, then you definitely can think about that. Otherwise, you always have the option to convert it to a regular savings account by submitting a written application to the branch.
The account opening process is very simple, just download the SBI Yono app, click on “Open Savings Account”, follow the step-by-step process, account number will be generated instantly. You will find the virtual RuPay Card details on the SBI Yono App’s Card section.
- Complete digital Video KYC-based account opening process.
- Virtual RuPay Debit Card.
- The account can be linked to any popular UPI App.
- Does not require to maintain any minimum balance.
- Request for a Chequebook can be done through the SBI Yono App.
Digital Banking is the future of banking. Every Bank in India is now coming up with several technology-driven innovative approaches to make banking more cashless and less time-consuming. But the Indian Financial system is still miles away from becoming a complete Cashless Digital economy. Today, even in rural areas people are adopting mobile banking, QR payments, and AEPS but thousands still stand in line for simple cash payments.
The Accounts which are discussed above are right now the best online Digital Savings Account in India. If you have any recommendations, then please share your comments below.
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Can I open an online Digital Account Jointly?
No, you can not open a Joint Digital Account. The account opened using Adhaar & PAN card will always be a single account, even you can not make it joint later from the branch.
Can I get a physical debit card from the Digital Savings Account?
Yes, you can get a virtual debit card, mostly issued by Visa, just after opening the Bank Account online. You can later request a physical debit card from the Bank’s online portal or mobile banking app. The physical debit card is chargeable as per regular debit card.
Can I get a Cheque Book from the zero-balance Digital Savings Account?
Yes, you can request for Cheque Book after opening the account online through the bank’s Online portal or mobile banking app.
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