The advent of technology and Artificial Intelligence has changed the way we used to do things past. The banking system has also changed with time and technology. After the drastic reduction of smartphone price and mobile internet cost, 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 the Zero Balance Digital Bank account in India and some best online digital savings account with current KYC procedures to open such accounts.
The Digital Banks which are discussed here are best for the students also because all are zero balance savings account and can fulfill all the requirements of a regular savings account.
What is a Digital Bank Account?
Indian Banking system is an archaic, paper-oriented process which requires a lot of paper-work and time to complete any simple task. 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. But the launch of Aadhaar, the unique identification number, which plays a significant role in the digitalization of the Indian Economy.
A Digital Bank Account or sometimes we may also call it 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 any Crowded Indian Bank branches long queue and verify all your documents.
Different Banks advertise their Digital Savings Account by different names like Selfie Account 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 works.
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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 the opening bank account.
- Instant Account number generation.
- 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 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 statement.
- 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 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 online zero balance Digital Bank Account in India, you have to remember the followings
- You must be over 18 years of age.
- You need both PAN and Aadhaar Card to open the Digital Account.
- You have to complete full KYC ie 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: As per the latest news, RBI may allow Video KYC (Know Your Customers) norm as an alternative of In-person Verification to Fintech companies and Banks. Therefore, we can expect a digitalized KYC process very soon and customers may not need to verify documents personally to Banks within 12 months period. Amazon Pay mobile wallet app has already started the KYC process via the Google Duo app, others may follow soon.
What is Current KYC norms to open 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 have their own Digital Account opening option by different names. But after September 2018, many Banks have discontinued the Digital Savings Account opening option. Because Banks have to fetch 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 OTP based eKYC. (Updates: Adhaar OTP based Mutual Fund Folio creation has been reintroduced.)
You can also generate 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 the eKYC purpose and any Fintech agency can not store VID information in their database. You can generate VID from UIDAI official website.
To generate a VID visit here.
With the introduction of Aadhaar, the unique identification number plays a huge role in the digitalization of the Indian economy. The main reason to launch the Aadhaar Number is Direct Benefits Transfer (DBT) and Financial Inclusion. Aadhaar has simplified several digital services and minimize lots of paper works. But due to safety and privacy concerns, the Supreme Court recently has barred Fintech companies to access UIDAI database for Aadhaar based verification, which is a great set back for digitalization of the Indian economy. (Updates: As per the latest RBI norm, Fintech companies can access the UID database with customer consent through OTP verification)
Most of the Banks have temporarily suspended the Aadhaar OTP based online Digital Account opening process in India. Only a few Banks still have the option to create zero balance Digital Bank Account, but you have to complete the Full KYC ie, biometric eKYC process or submitting officially valid ID proof (OVD) within 12 months of the opening of an account.
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 the 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 Banks has to open zero balance savings account for Indian citizens. These types of accounts are also termed as PMJDY Account (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.
Digital Savings Account or sometimes we also call it instant savings account is a kind of full-fledged Bank account for the Tech-savvy individuals. You can get all the Banking facilities at par of any Privilege Bank Account in India with no compulsion to maintain any minimum balance.
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
- Kotak 811
- Axis Bank ASAP
- Digisavings by DBS
- Indus Online Savings Account by IndusInd Bank
- Pockets by ICICI Bank
|Bank||Virtual Debit Card Type||Interest Rate||How to Open||Fund Transfer||Action|
|Kotak 811||Visa International||6 %||Install App/Website||IMPS/NEFT/UPI||Go|
|Axis Bank ASAP||Visa International||6 %||Install App/Website||IMPS/NEFT/UPI||Go|
|DIgisavings by DBS||Visa Domestic||6 %||Install App||IMPS/NEFT/UPI||Go|
|IndusInd Bank||Visa International *||3.5 %||Website||IMPS/NEFT/UPI||Go|
|Pockets by ICICI Bank||Visa Domestic||3.5 %||Install App||IMPS/NEFT/UPI/NFC||Go|
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. Though you have to maintain 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 or NetBanking.
- Zero Balance Digital Bank Account.
- Register Mutual Fund SIP URN or Loan EMI eMandate from Debit Card or NetBanking.
- Earn interest as 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 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.
Open Kotak 811 Digital Bank Account from here.
2.# Axis Bank ASAP
Axis bank ASAP comes second in this list. Axis Bank ASAP account has almost the same features and facilities like 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 needs.
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 Program.
- Fund Transfer facilities like IMPS, NEFT or BHIM UPI, etc.
Open Axis Bank ASAP Account from here.
3.# Digisavings by DBS
Digisavings is the first Digital Wallet cum Account offered by Foreign Bank in India. DBS Bank is one of the leading banks in South-East Asia. You can open Digisavings Account by installing the Digibank mobile App and authenticating the Aadhaar based OTP system. You have to convert Digibank to zero balance Digisavings Account by biometric verification at any DBS Bank branch in India.
- Complete paperless Zero Balance Savings Account.
- Earn interest as a Regular Savings Account.
- Reward programs named Digi Bucks.
- Virtual Visa Debit Card with contactless payment at merchant stores.
- Instant money transfer through UPI, IMPS or Bharat QR.
- Budget Tracking.
- Deals and Offers with various online eCommerce merchant partners in India.
4.# Indus Online Savings Account by IndusInd Bank
Another Digital Savings Account in India offered by IndusInd Bank with no minimum balance requirement. The basic features of Indus Online Savings Account are very much similar to Kotak 811 and Axis Bank ASAP Account. You can get your Account Number instantly just after completing the Aadhaar OTP and PAN card verification. Your mobile number will be your account number which you can change later.
Please remember that the waiver of minimum balance charges subjects to the issuance of Platinum Debit Card (Fee Rs.1000+Tax) or initial fundings of Rs.20000.00. For details visit here.
- Access to IndusInd Bank Mobile and NetBanking services.
- WhatsApp Banking.
- Account Number Choice.
- High Cash Withdrawal Limit.
For more details and the opening of the Account visit here.
5.# Pockets by ICICI Bank
To know more about Digital Wallet App and UPI Payments in India, please read my earlier articles here
You can convert the Pockets Digital Wallet to a zero balance regular savings Account by completing the full KYC. You will also get a Visa Virtual Debit card which also is your Pockets Account number. You can register for the ICICI Bank NetBanking service with your Pockets Digital Wallet. You can see your Pockets Account at Drop Down menu of My Account section.
You can use the Pockets Digital Wallet for making payment at various eCommerce websites in India, just you have to select Pockets Wallet at ICICI Bank Payment gateway.
- Visa powered Virtual Debit card with an option of Physical Debit card.
- Exclusive offers and Cashback program.
- Earn interest after converting into a Regular Savings Account.
- Touch & Pay NFC payment for NFC enabled devices.
- Add funds by Credit/Debit Card, NetBanking.
- Pay Later Service for selected customers.
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 to become a complete Cashless Digital economy.
State Bank of India, has also the online Aadhar based Account opening option, named as Insta Savings Account, which you can open from the SBI Yono website or SBI Yono App, but you have to maintain a minimum balance as like the other savings accounts.
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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