RBI’s New Zero-Balance Account Rules – India has millions of zero-balance bank accounts, and until now, customers often faced unexpected charges despite maintaining no minimum balance. But the Reserve Bank of India (RBI) has rolled out a set of new, customer-friendly reforms that bring significant relief, especially for rural users, small-town families, and daily digital payment users.
These updated rules simplify banking, remove hidden charges and ensure smoother, more affordable access to essential services. Here’s a detailed look at what’s changing and how these new rules benefit zero-balance account holders.
Digital Payments Made Completely Free and Unlimited
One of the most significant reforms concerns UPI, IMPS, and NEFT transactions. Until now, several banks have treated digital payments as “withdrawals” and imposed charges once the free limit is exceeded. This caused confusion and unnecessary financial burden on users who relied heavily on digital platforms.
Under the new RBI guidelines, no digital transaction will be treated as a withdrawal, meaning UPI, IMPS, and NEFT will be free and unlimited for zero-balance account holders. This change alone is expected to benefit millions of users who depend entirely on digital modes for their day-to-day payments.
4 Free ATM Cash Withdrawals Every Month
For people who still need cash for daily expenses, the RBI has brought significant relief. Banks must now offer at least four free cash withdrawals per month, whether through the bank’s own ATM or any other bank’s ATM.
This ensures that even users in semi-urban and rural areas, who may not always rely on digital payments, can access cash without incurring fees.
Debit Cards to Be Issued Without Annual Fees
Earlier, many banks charged annual or renewal fees for ATM/debit cards even on zero-balance accounts. Under the new rules, debit cards provided with these accounts will now be completely free of annual, renewal, or maintenance fees.
This makes everyday transactions—shopping, cash withdrawals, and payments—far more convenient and affordable.
Free Check Book and Passbook Services
RBI has also simplified cheque and passbook-related services. Every customer will now receive at least 25 pages of a chequebookो free each year. A free passbook or monthly statement. Previously, these services often attracted additional charges, especially in smaller banks.
Unlimited Cash and Digital Deposits Allowed
There will now be no limit on how much or how many customers can deposit funds, either digitally or in cash. Earlier, some banks imposed monthly deposit limits. From 1 April 2026, these rules will be implemented nationwide, though banks are permitted to adopt them earlier if they wish.
Conclusion
The new RBI rules for zero-balance bank accounts offer widespread benefits, including free digital transactions, hassle-free withdrawals, chequebooks, and debit cards. These reforms not only make banking simpler but also ensure that customers in small towns, villages, and digital-first households receive fair, transparent banking services without unnecessary charges.