UCO Bank Zero Balance Account – Features, Eligibility & Benefits

Rahul had to pay a fine on his UCO Bank zero balance account because he misunderstood the terms of the "UCO Zero Balance Scheme", a new deposit initiative by UCO Bank aimed at increasing banking accessibility for economically weaker sections.

While Rahul’s fine came as a surprise, it is ironic considering UCO bank has recently been applauded for winning the “Best Financial Inclusion Initiative” award in 2024, thank to innovative schemes like UCO Jan Dhan Yojana Account, Suvidha Salary Account Scheme, and UCO Smart Kids Savings Bank Scheme.

These zero-balance accounts are part of UCO Bank’s mission to make banking seamless and inclusive; no frills, no fuss, just smarter savings for everyone, from school kids to salaried professionals.

Types of UCO Bank Zero Balance Account

UCO Bank offers multiple zero-balance account options tailored to various customer segments. These include:

1. No-Frills Savings Bank Account (Zero Balance): A basic savings account that allows customers to open an account with as little as ₹5 and maintain a zero balance.
   
   
2. UCO Jan Dhan Yojana Account: A part of the Pradhan Mantri Jan Dhan Yojana (PMJDY) initiative, aimed at providing financial services to economically weaker sections.
   
   
3. Suvidha Salary Account Scheme: A zero balance salary account for employees, allowing direct salary credits with added banking benefits.
   
   
4. UCO Smart Kids Savings Bank Scheme: A savings account designed for minors above 10 years of age, encouraging early financial literacy.

How to Open UCO Bank Zero Balance Account Online & Offline?

Online Process:

1. Visit the official UCO Bank website.
   
   
2. Navigate to the ‘Savings Account’ section , click on “Learn more” and select the appropriate zero balance account option. Or you can also check for different accounts mentioned individually online (You can type the name).
   
   
3. Click on ‘Apply Now’ and fill out the application form with personal details.
   
   
4. Upload the required KYC documents.
   
   
5. Submit the form and await confirmation.
   
   
6. Once verified, the account details and welcome kit will be sent to the registered address.

Offline Process:

1. Visit the nearest UCO Bank branch using the branch locator.
   
   
2. Request for the particular zero balance account opening form.
   
   
3. Fill in the details and attach necessary documents.
   
   
4. Submit the form to the bank representative.
   
   
5. Upon verification, you will receive an account number and a welcome kit with relevant banking materials.

UCO Bank Zero Balance Account Fees & Charges

Below are the fees and charges for different UCO Bank Zero Balance Accounts:

No-Frills Savings Bank Account (Zero Balance)

Scenario: Understanding the No-Frills Savings Bank Account (Zero Balance) Fees & Charges

1. Minimum Initial Deposit & Balance Requirement

Ravi opens a No-Frills Savings Account with UCO Bank. Since he does not need a chequebook, he deposits only ₹5 instead of ₹250. His account balance can go down to ₹0 without penalty.

• Minimum deposit without a cheque book = ₹5
  
  
• Minimum deposit with a chequebook = ₹250

2. ATM Withdrawal Charges

Ravi withdraws ₹2,000 from a UCO Bank ATM, which is free. Later, he withdraws ₹2,000 from another bank’s ATM, and a charge of ₹20 applies.

• UCO Bank ATM withdrawal fee = ₹0
  
  
• Other Bank ATM withdrawal fee = ₹20

3. Debit Transactions Limit

Ravi makes 25 debit transactions (UPI, card payments) in six months, all of which are free. However, when he makes a 26th transaction, he is charged ₹3 per extra transaction.

• Debit transactions free limit = 25 transactions
  
  
• Extra transaction charge = ₹3 per transaction
  
  
• If Ravi makes 30 transactions in six months:
  
  
  • Extra transactions = 30 - 25 = 5
    
    
  • Charges = 5 × ₹3 = ₹15

4. Fund Transfer (IMPS/NEFT) Charges

Ravi transfers ₹10,000 to his friend’s account via NEFT, which is free. However, when he transfers ₹50,000, a small fee of ₹5 is deducted.

• Transfer fee for amounts up to ₹10,000 = ₹0
  
  
• Transfer fee for amounts above ₹10,000 = ₹5
  
  
• If Ravi transfers ₹50,000, he pays ₹5 as a transfer fee.

5. Cheque Book Issuance

Ravi receives two free cheque books per year. If he requests a third cheque book containing 20 leaves, he is charged ₹2 per cheque leaf.

• Charge per cheque leaf = ₹2
   
• If Ravi requests 20 additional cheque leaves:
   
  • Charges = 20 × ₹2 = ₹40

6. Outstation Cheque Collection

Ravi deposits a cheque worth ₹20,000 from another city. Since it's below the ₹25,000 free limit, he receives the full amount without deduction.

• If cheque amount is ≤ ₹25,000, collection charge = ₹0
  
  
• If cheque amount is > ₹25,000, collection charge = bank’s applicable rate
  
  
• Since Ravi’s cheque is ₹20,000, he pays ₹0 as collection charges.

7. Account Closure Fee

Ravi decides to close his account after 11 months. Since account closure is free within 12 months, no fee is deducted.

• Closure fee within 12 months = ₹0
  
  
• Closure fee after 12 months = As per bank charges

UCO Jan Dhan Yojana Account

Scenario: Understanding UCO Jan Dhan Yojana Account Fees & Benefits

1. Minimum Balance Requirement

Sita, a daily wage worker, opens a UCO Jan Dhan Yojana Account to receive government subsidies. Since there is no minimum balance requirement, she can use the account even if her balance is ₹0.

• Minimum balance required = ₹0

2. ATM/Debit Card Issuance

Sita receives a RuPay Debit Card for free in the first year. She uses it to withdraw ₹2,000 from a UCO Bank ATM with no charges. However, if she withdraws from another bank’s ATM, a small charge applies.

• UCO Bank ATM withdrawal fee = ₹0
  
  
• Other Bank ATM withdrawal fee = ₹20 (example)

3. Cheque Book Issuance

She later requests a chequebook to pay her child’s school fees. Since cheque books are not free, she is charged ₹2 per cheque leaf.

• Charge per cheque leaf = ₹2
  
  
• If Sita requests 10 cheque leaves, total cost = 10 × ₹2 = ₹20

4. Government Subsidies (Direct Benefit Transfer - DBT)
 

Every month, Sita receives a gas subsidy of ₹500 and a pension of ₹1,000 directly into her account under DBT.

• Monthly subsidy received = ₹500
  
  
• Monthly pension received = ₹1,000
  
  
• Total credits per month = ₹500 + ₹1,000 = ₹1,500

5. Overdraft Facility

After 6 months of using the account regularly, Sita needs extra money for an emergency. Since she qualifies for an overdraft of ₹5,000, she withdraws ₹3,000, which she later repays.

• Overdraft limit after 6 months = ₹5,000
  
  
• Sita’s overdraft usage = ₹3,000
  
  
• Remaining overdraft limit = ₹5,000 - ₹3,000 = ₹2,000

6. Accidental & Life Insurance Cover

Sita’s account comes with:

• ₹1 ,00,000 accidental insurance (if she has used the RuPay Debit Card in the last 45 days).
  
  
• ₹30,000 life insurance (if she meets eligibility criteria).

If Sita meets with an accident, her family can claim ₹1 ,00,000 as insurance. If she passes away, her nominee can receive ₹30,000 as a benefit.

Suvidha Salary Account Scheme

Scenario: Understanding Suvidha Salary Account Scheme Fees & Benefits

1. Minimum Balance Requirement

Amit, an IT professional, opens a UCO Suvidha Salary Account after joining a new company. Since this is a salary account, he does not need to maintain a minimum balance. Even if his account balance is ₹0 before salary credit, there are no penalties.

• Minimum balance required = ₹0

2. ATM/Debit Card Issuance

Amit receives a free RuPay Debit Card upon account opening. He withdraws ₹5,000 from a UCO Bank ATM, which is free. However, if he withdraws from another bank’s ATM, a charge may apply after a certain limit.

• UCO Bank ATM withdrawal fee = ₹0
  
  
• Other Bank ATM withdrawal fee (after free limit) = ₹20

3. Cheque Book Issuance

Amit needs a chequebook to pay his house rent. Since cheque books are free for account holders, he receives one without any charges.

• Cheque Book issuance charge = ₹0

4. Salary Credit Requirement

Amit's employer credits his monthly salary of ₹50,000 into the account on the 1st of every month. This ensures his account remains active.

• Monthly salary credit = ₹50,000

5. Overdraft Facility

One month, Amit faces an emergency before his salary is credited. He applies for an overdraft of ₹10,000, which is approved. When his salary is credited, the overdraft is automatically deducted.

• Overdraft requested = ₹10,000
  
  
• Salary credited = ₹50,000
  
  
• Account balance after salary credit and overdraft repayment = ₹50,000 - ₹10,000 = ₹40,000.

UCO Smart Kids Savings Bank Scheme

Scenario: Understanding UCO Smart Kids Savings Bank Scheme Fees & Benefits

1. Minimum Balance Requirement

Riya, a 12-year-old student, opens a UCO Smart Kids Savings Account with the help of her parents. Since this account is designed for minors, there is no minimum balance requirement, meaning she can maintain a balance of ₹0 without incurring penalties.

• Minimum balance required = ₹0

2. ATM/Debit Card Issuance

Riya receives a personalised ATM card with her photo. She withdraws ₹2,500 from an ATM to buy a bicycle. Since her daily

 withdrawal limit is ₹3,000, she can still withdraw ₹500 more on the same day.

• ATM daily withdrawal limit = ₹3,000
   
• Amount withdrawn = ₹2,500
  
  
• Remaining daily withdrawal limit = ₹3,000 - ₹2,500 = ₹500

3. Net Banking Limit

Riya uses net banking to pay for an online educational course costing ₹2,800. Since her daily limit is ₹3,000, the transaction is successful. If she tries to make another payment of ₹1,000 the same day, it will be declined.

• Net banking daily limit = ₹3,000
  
  
• Monthly limit = ₹15,000
  
  
• Amount spent online = ₹2,800
  
  
• Remaining daily limit = ₹3,000 - ₹2,800 = ₹200

4. Standing Instructions for Recurring Deposits (RD)/Fixed Deposits (FD)

Riya’s parents set up a standing instruction to transfer ₹1,000 per month from her savings account to a recurring deposit (RD). Since standing instructions for RD/FD are free, there are no extra charges.

• Monthly RD transfer = ₹1,000
  
  
• Standing instruction charge = ₹0

5. Account Closure

When Riya turns 18, she decides to close the account and open a regular savings account. Since account closure is free, she does not pay any fees.

• Account closure charge = ₹0

UCO Bank Zero Balance Account Interest Rates

The interest rate on UCO Bank’s Zero Balance Accounts is at par with regular savings accounts:

• 3.50% per annum, credited quarterly.

Scenario: Understanding Interest Rate on UCO Bank Zero Balance Accounts

Interest Calculation Example

Rahul, a college student, deposits ₹10,000 in his UCO Bank Zero Balance Account. The bank offers an interest rate of 3.50% per annum, credited quarterly.

• Annual Interest Rate = 3.50%
  
  
• Quarterly Interest Rate = 3.50% ÷ 4 = 0.875% per quarter

Interest Calculation for One Quarter

Using the simple interest formula:

Interest = (Principal × Rate × Time) ÷ 100

Interest for 3 months = (10,000 × 0.875 × 1) ÷ 100
 

 Interest = 87.50

After the first quarter, Rahul earns ₹87.50 as interest, bringing his total balance to:

New Balance = 10,000 + 87.50 = ₹10,087.50

If he does not withdraw, the interest for the next quarter will be calculated on ₹10,087.50, following the compound interest method.

Eligibility Criteria for UCO Bank Zero Balance Account Opening

To open a UCO Bank Zero Balance Account, customers must meet the following criteria:

• An Indian resident above 18 years of age (or a minor with a guardian)
  
  
• Individuals without an existing savings account in UCO Bank (for No-Frills or Jan Dhan accounts)
  
  
• Salaried employees under employer partnerships (for Suvidha Salary Account Scheme)
  
  
• Students or minors (for the UCO Smart Kids Savings Bank Scheme)
  
  
• KYC-compliant individuals
  
  
• Minors above 10 years of age who can read and write can open and operate an account independently

Required Documents for UCO Bank Zero Balance Account Opening

Customers need to submit the following documents while opening a UCO Bank Zero Balance Account:

1. Identity Proof (any one)
   
    
   • Aadhaar Card
   • Voter ID
   • PAN Card
   • Passport
   • Driving License
     
     
2. Address Proof (any one)
   
   
   • Aadhaar Card
   • Electricity Bill (latest)
   • Bank Passbook with address
   • Rent Agreement
     
     
3. Other Documents
   
   
   • Passport-size photographs (2-3 copies)
   • Birth certificate (for minor accounts)
   • Declaration from a guardian (for minor accounts)

UCO Bank Zero Balance Account Helpline

For any queries related to the UCO Bank Zero Balance Account, customers can contact:

• Toll-Free Number: 1800 274 0123
• Email Support: customercare@ucobank.co.in
• Nearest Branch: Visit any UCO Bank branch for in-person assistance

UCO Bank Zero Balance Account Welcome Kit

Upon successful account opening, UCO Bank provides a welcome kit containing:

1. Passbook: For easy record-keeping of transactions
   
   
2. Debit Card: Personalised ATM card with photograph, daily withdrawal and shopping limit of ₹3,000, and monthly limit of ₹15,000
   
   
3. Cheque Book: Two cheque books free per year
   
   
4. Net Banking & Mobile Banking Details: Daily transaction limit of ₹3,000 and overall monthly limit of ₹15,000
   
   
5. Customer Guide: Information about banking services, charges, and facilities

Conclusion

UCO Bank Zero Balance Accounts cater to a wide range of customers, from financially underserved individuals to salaried employees and students. With its No-Frills Savings Bank Account, UCO Jan Dhan Yojana Account, Suvidha Salary Account Scheme, and UCO Smart Kids Savings Bank Scheme, the bank ensures that every customer finds a suitable banking solution. The absence of a minimum balance requirement, competitive interest rates, and easy accessibility make these accounts a convenient and cost-effective option for all.

FAQs Related to UCO Bank Zero Balance Account

1. Can I open a UCO Bank Zero Balance Account online?
Yes, you can apply online through the official UCO Bank website by submitting digital copies of KYC documents.

2. What are the key benefits of the UCO Bank Zero Balance Account?
Key benefits include no minimum balance requirement, free ATM withdrawals, net banking, and access to government subsidies.

3. Is a chequebook provided with the UCO Bank Zero Balance Account?
Yes, two chequebooks are provided free per year.

4. Can I convert my zero balance account into a regular savings account?
Yes, customers can upgrade their account by submitting a request at the branch.

5. How can I contact customer support for account-related queries?
You can contact the toll-free number 1800 274 0123 or visit the nearest UCO Bank branch for assistance.

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