Zero balance accounts can help businesses in monitoring the cases of overspending for departments, short-term projects and payroll.
Zero balance account (ZBA) is a type of savings account in which the goal is to always keep the balance at 0. It is often connected to a main account that sweeps funds into and out of the ZBA, as and when transactions are done. These accounts are mostly used by businesses, which need to maintain separate accounts for payroll or departmental expenses. They don’t want to manually move and monitor funds. For this purpose, zero-balance accounts are made, so that businesses will always have some residual cash in hand. Keep reading this space to know about other benefits of a zero balance account, and how to open it.
Benefits of Zero Balance Account:
Reduces banking and clerical errors
Depositing vast amounts of cash in different accounts can be a confusing process. But if we keep those amounts in one account and automate the process, it can get simpler on many levels.
Track cases related to overspending
Zero balance accounts can help businesses in monitoring the cases of overspending for departments, short-term projects and payroll. A business can spot the problem of overspending by the entity, more likely with ZBA, in comparison to manually tracking the funds.
Lessens risks of fraudulency
More bank accounts mean increased time on monitoring them for cases related to fraudulency. If there is only one account for holding the money, it lowers the chances of compromise or fraud.
Allows aggregating funds
Zero balance account allows you to consolidate funds in different accounts, and use them to fund other business ventures.
How to open a Zero balance account:
Every individual, who is a resident of India, is eligible to open a zero-balance account. To open a zero balance account online, people need to have a valid Aadhaar and PAN card. As per RBI’s regulation, banks can open savings accounts online through Aadhaar OTP verification. It is quite easy to open a bank account online.
