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How payment bank accounts may help you reduce chances of losses due to frauds, charges

Amitava Chakrabarty
payment banks, zero balance account, banking frauds, minimum balance, overdue charges, late payment penalty, scheduled commercial bank, State Bank of India, SBI Basic Savings Bank Deposit Account

With the rising instances of banking frauds, many people try to minimise online transactions to safeguard the balance kept in bank accounts from getting wiped out by fraudsters. As a result, people have become skeptical about adding net banking beneficiaries for auto payment of bills, which in turn may enhance the probability of missing due dates, resulting in attracting overdue charges and late payment penalties.

But such skepticism is justified to protect the hard-earned money kept in bank accounts, which may run into lakhs. Moreover, due to the mandatory requirement of maintaining minimum balance, people try to avoid opening many bank accounts as a substantial amount may get blocked.

To overcome such problems, you may open an account in a payment bank, in most of which you need not maintain any balance. In some payment banks, however, you may have to maintain a very low balance depending on the type of account you have opened. Moreover, there are restrictions on keeping high balances and the maximum limit is kept at Rs 1 lakh across the payment banks.

So, you may keep just the sufficient amount in such a bank account to pay the monthly bills, minimising the chance of losing much in case there is any fraud.

Moreover, there are no charges for online transactions as well as there is no capping on the number of transactions in such banks, depending on the type of accounts. So, it is advisable to go through the schedule of charges before you open an account.

Although you may open a zero balance account in a scheduled commercial bank, there are capping on a number of transactions per month. For example, you may make maximum 4 withdrawals in a month, including ATM withdrawals at own and other banks’ ATMs and transactions through other mode including RTGS/ NEFT/ Clearing/ Branch cash withdrawal/ transfer/ internet debits/ standing instructions/ EMI, etc in SBI Basic Savings Bank Deposit Account. Moreover, to open such an account, you should not have any savings bank account, and if you have any, you have to close it within 30 days from opening the basic account.

So, you may safely open an account in a payment bank to enjoy zero balance benefit without closing your existing savings bank account and auto pay your monthly bills by linking the beneficiaries with your payment bank account. By this way you may eliminate the chances of missing due dates and paying overdue charges and late payment penalties, without putting the balances in savings bank accounts at risk.