PMJDY’s 0 balance account opening online account is a boon for Indians

Possessing a zero balance savings account on the electronic platform is a great way for beginners to get acquainted with the habit of saving and also develop an understanding about handling finances.  Some time back, there were no great schemes for the underprivileged till the Ministry of Finance under the leadership of Prime Minister Narendra Modi came up with the Pradhan Mantri Jan Dhan Yojana (PMJDY) in August 2014.

Within six months of its launch, there were a record 11.5 crore household fresh bank accounts. Soon the credibility of the government in achieving targets was restored and they also provided new benchmarks for setting targets by other ministries. Today, it has over 37.5 crore beneficiaries have banked so far and Rs 103,531 crore balance in beneficiary accounts.

The 0 balance account opening online under the PMJDY scheme aims to bring about a radical change in the traditional banking system in India and covers even the economically weaker section of the society, who never ever had a basic bank account.

One of the major benefits of the yojana is that all banks are on Core Banking Solution (CBS) platform and can be transferred to any branch of the bank in any city.

Below given are some of the unique features under PMJDY

1. No minimum balance required 
2. Interest rates on deposits as per the bank rates
3. Rs 1 lakh accidental insurance cover
4. Free RuPay debit cards accepted at all ATMs and PoS machines. Debit card must be used at least once in 45 days to avail benefit of accidental insurance cover.  
5. Government schemes benefit are directly credited to account
6. Entitlement to a loan of Rs 5,000 after six months of opening account 
7. Overdraft facility within six months with an interest rate charged on overdraft value lower of (base rate+2%) or 12%
8. Allows mobile banking services 
9. Provision for a joint account.

Eligibility:  

The criteria for a 0 balance account opening online may differ from bank-to-bank. But the basics required by most banks include that the applicant must

• Be a resident of India
• Be above 10 years of age  
• Not have other savings account with the bank
• Have complete KYC documents like – ID/address proof, passport size photograph 

Provisions for HUF account holders:

• Apart from these, even Hindu Undivided Families (HUF) account holders are also eligible to a 0 balance account opening online. The HUF account holders would be required to submit Copy of PAN card or Form 60 of HUF, ID proof of Karta and Address of Karta and a prescribed Joint Hindu Family letter signed by all adult members. 
  Additional details can be availed by browsing our website https://savingaccount.in/.  

Why women operate savings account differently than men?

 Women are ‘intelligent’ beings when it comes to managing finances. In fact, they do most things differently and do better than men. They have been big-time money savers. In fact, for eons, Indian women have been saving little sums in sugar cans, books and here and there until the banking system came up with a women savings account. 

Soon women realised their financial rights and were not satisfied with just a saving account. They are natural money defenders and clinch it really hard. They are designed to have things –rather almost everything - in control and thus, invest your money smartly. Of course, do have their loose ends like ‘where to start from’, they do splendidly well with a little hand-holding and guidance.

Let us take a look at what makes our otherwise dainty women such strong money defenders.

Taking risk is not their cup of tea:

Unlike men, who are biologically designed to have better risk-taking abilities, women like to think in advance for any eventualities and be prepared for any situation. No wonder they are more calculative are perfect household managers and love perfection. It wouldn’t be wrong to say they are bad ‘shock absorbers’.

Stability is a habit:

Women link money with security and stability. They like to put everything in order and love it when things are in control. Hence, they plan their loan EMIs, instalments, children’s fees, or even buying cosmetics and balance their remaining expenditure even while saving for the rainy day well in advance. In other words, women tend to refrain from short-term savings unless they think there could be possibility of expenditure ahead.

Goal oriented savings have great rewards: Women prioritise their goal and save accordingly. They could save for a summer cruise next year or even to buy a car or to prepare for the arrival of a child. In fact, they love such savings for it could help them buy some gold as well with it.  It is true that goal-oriented savings accounts are stricter than the regular women savings account they may possess, but then they also reap richer rewards.

Patience is key to saving:

Time is money they say, but women- without any regrets and rightly so - take their time exploring options and eventualities before finally zeroing in on what they are exactly looking for. And why not? After all, opting for a saving scheme is like investing or blocking money and it must bring back the desired dividends. It definitely isn’t as easy as setting out to open a women savings account.   

More information can be availed by surfing https://savingaccount.in. 

Dormant Savings Account: Need for reclassifying, penalties, reactivation

Dormancy basically means a state of inactiveness. But in terms of savings account ‘inactivity’ and ‘dormancy’ are separate terms. 

When there has been no activity or transaction in a savings bank account for a period of 12 months, it is classified as an ‘inactive savings account’ and if the account continues to be inactive for subsequent 12 months, it is determined as a ‘dormant savings account’. However, bank-initiated transactions, such as interest on savings balance or penalties and service charges debited by bank are not considered while classifying accounts as dormant.

RBI guidelines:

The Reserve Bank of India (RBI) has advised banks to exercise due diligence before clearing transactions from dormant savings accounts. It has also given a free hand to the banks to decide ‘whether and on which features’ to impose restrictions of the dormant accounts.

While some banks restrict ATMs, netbanking and phone transactions, some others do not allow change in address, issue or renewal of ATM/debit/cheque book requests, etc, of such accounts.

Need of reclassifying accounts: Reclassifying account as ‘dormant’ reduces the risk of frauds, both internally and externally. Banks maintain details of such inactive accounts in a separate ledger.

Valid transactions:

Banks recognise valid debit or credit transactions which include withdrawal of cash at a branch or automated teller machine (ATM), payment by cheque, transfer of funds through Internet banking, phone banking or ATMs, inward and outward bill payments, etc., but system generated transactions like interest credit and service charge deduction, are not considered valid. However, dividends on shares or the proceeds of fixed deposit (FD) in the savings account are considered as a customer induced transaction or as operative.

Penalty:

No charges are required to be made in order to reactivate a dormant bank account. In June 2014, the RBI asked the banks not to charge penalty for non-maintenance of minimum balance in dormant accounts.  If any bank imposes a charge, it must be reported to the banking ombudsman.

Reactivation:

The account holder can reactivate the dormant bank account by simply making a deposit or withdrawal transaction. The account holder may be required to visit the home branch and provide a written request for reactivation of the account. The bank may, however, require a fresh KYC documentation like a recent photograph, address proof or any identity proof. Re-activation of a dormant account will be handled as meticulously, by the bank, as opening a new account, since unused balances may lie in such accounts.

Closure of account: A dormant account will have to first be reactivated and then the usual closure form can be submitted to close it.

For more details, visit https://savingaccount.in. 

 

Things you don’t know about Student bank account with zero balance

Who said that students’ life is easy and tension-free? Though they might have different challenges and things to do in life, it doesn’t mean that their life is quite happening. Just like adults, students too need money (Pocket-money) for certain expenses such as purchase of books and stationary, outings, birthday parties, and what’s not. Therefore, following a good saving habit is essential for the minors too.

Hence, student bank account with zero balance criteria is an ideally option to look for. Student’s bank account works similar to that of traditional bank account; the only difference remains is that the account is opened jointly with the parents or guardians.

So, dear students, forget keeping your money under the mattress if you wish to earn biggest bonuses and privileges. Just apply for student savings account with zero balance and keep all your pocket money safe, secured, and easily accessible, while earning interest on it.

A glimpse at Student bank account:

1. Applicant’s age – Generally, there are two separate versions available for opening student or minor accounts – one for those below 10 years of age and other for those between the age bracket of 10 to 18 years. The account is operated jointly with the parent or guardian if the child is below 10 years, while those above 10 years, can operate the account individually. Once the child turns 18+, the account becomes inoperative and is converted into a regular savings account.
2. Internet banking - Though students bank account also comes with internet banking feature, though banks before enabling the facility, gets parent or guardian’s mandate to issue a login ID and password to the minor for carrying out basic banking transactions. However, not every bank or financial institutions offer online banking facility for fund transfer from minor accounts, though this is only for safety measures.
3. Debit card – Of course, students too have their own daily expenses such as stationary purchase, mobile recharge, etc. thus, some banks issue a complimentary ATM-cum-Debit card, though with a restricted daily usage limit. The card comes with SMS alert feature to keep a track of your child’s spending. Usually, banks restrict a daily limit for maximum up to Rs. 1000 to 2500, while in some cases, the maximum limit might be capped to Rs.5000, subject to parents and/or guardian’s consent.
4. Minimum balance criteria – Well, student bank account with zero balance doesn’t come with the minimum average balance criteria and thus, there are no penalties or charges involved for not maintaining the account balance.
5. KYC documents – In case a minor is below 10 years of age, date of birth proof of the minor and parent/guardian’s KYC documents are submitted. In case a minor is below 10 years of age, date of birth proof of the minor and parent/guardian’s KYC documents are submitted. 

Key reasons why zero balance saving account is a great financial tool

Well, for many savings account is probably the first interaction with the banking services. Almost everyone Indian, especially above 18 years of age, have a saving account in banks and/or financial institutions. This type of banking keeps your hard-earned funds safe and secured. Thus, you can rest assure that your funds are in safe hands, while earning good interest on the maintained bank balance.

With fastest growing digitization, people are heading more and more towards digital banking, but still, zero balance saving account hasn’t lost its preference and popularity. This is because a savings account comes packed with numerous benefits and additional privileges.

Benefits of zero balance savings account:

1. Asset protection – Money is the biggest asset of anyone’s life and is frequently required to fulfil needs and desires. Therefore, it makes sense to keep the funds safe and secured, instead of investing in some risk-worthy schemes. Compared to the investment schemes, savings account guarantees assured returns without any risk involvement in case of some unforeseen circumstances. 
2. Creates emergency corpus – No matter how well you plan your finances, unforeseen emergencies can popup any time, such as medical emergency, leaving you in a spiral of financial stress. Therefore, savings account acts as a quick financial solution to any unexpected monetary crisis. The flexibility of bank account makes you withdraw the funds if and when required. Hence, you can get your unexpected expenses covered while staying away from unwanted debts.
3. Complimentary debit card – Zero balance saving account is a host of several benefits and one such is complimentary debit card. A debit card allows quick access to funds via ATM withdrawal or online banking. In addition, the card can be upgraded to international debit card for overseas purchases and international transactions.
4. Hassle-free banking – The days are gone long back when banking was considered a hectic and daunting task, but, not any more. Today, operating a bank account is so easy and hassle-free that even a young kid can do it. No need to pay multiple visits to the bank. Just log in to https://savingaccount.in for an unmatched banking experience.
5. Saving habit – Of course, money is required at every stage of life and to keep day-to-day life perfectly balanced. Therefore, zero balance bank account is a perfect tool to promote saving habits among the individuals and passing the same habit to the young ones as well. 
6. Easy loan availability – In this inflation era, most of modern professionals own a loan or credit card for better financial management. So, if you have a bank account, it becomes super easy to get the loan. In addition, the repayment process too becomes hassle-free and convenient with auto-debit option. 

Hence, you’ve got a lot to do with a zero balance savings account.