The savings bank account at a Payments Bank comes with its own set of advantages and disadvantages in comparison to a regular savings account with a scheduled commercial bank. And if you are one of those, who do not want to get into the hassle of keeping some minimum balance as is the requirement with most of the banks and even do not intend to keep a large amount in your bank account kitty, we advise you to maintain a Payments bank account. This is because payments bank have an upper limit of maximum Rs. 1 lakh that can be maintained in the savings account across Payments bank.
So, with a comparatively lower minimum balance requirement or no requirement at all, in case of non-compliance you will not be charged as heftily as charged by other usual banks. With effect from February 1, 2019, Bank of Baroda has increased its average minimum quarterly balance requirement in metro, urban and semi-urban branches to double the amount. And in case customers fail to maintain this amount, they'll have to shell some penalty charges as prescribed by the institution.
While some of the banks also have special accounts catering to individuals who want zero balance account, there comes limitation with it as cap of the number of transactions that can be executed through it. For instance in the SBI's BSBD Basic Savings Bank deposit account you are allowed 4 ATM withdrawals that includes from SBI's ATM and other ATMs.
There are also limitations in respect of other transaction such as NEFT, RTGS transfer, branch cash withdrawal, clearing, EMIs, standing instructions. Also, one can open such an account only when he or she holds no other savings account or the account has to be closed within one month of opening the BSBD account.
Also, if you want to safeguard your hard-earned money from increasing financial frauds and still have some monthly financial obligations to honor which you because of the ease intend to service through the digital route, you can just by keeping the required amount can link the various payees for auto-payments.
Perhaps savings account with a Payments bank entail no costs when it comes to performing online transaction plus there remains no cap in respect of the number of the transaction, further depending on the type of the account the concerned person has opened with the Payments bank.