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Indian companies are expanding their business outside the country. One of the critical factors contributing to this growth is modern international banking services, such as the provision of zero-balance international bank accounts. These accounts are designed to reduce the need to maintain working capital in a foreign currency.
In this guide, we look at the best banks and fintech in India that provide zero balance accounts, what account features they offer, and tips on choosing the right account for your company.
Basically, a zero-balance international bank account is a business or personal account that is active and functional without maintaining a minimum amount. This negates the financial restrictions of traditional international accounts. These accounts often provide multi-currency support, which is one of the greatest benefits for international trade businesses. It enables a company to make payments, receive funds, and maintain funds in various foreign currencies without any hassle and cost involved with currency exchange.
Several differences make zero-balance international accounts an attractive alternative to traditional international accounts:
There are no minimum balance requirements: Many traditional international accounts have substantial minimum balance requirements in the range of a few thousand dollars. This might be a pretty big hurdle for smaller businesses. Zero-balance accounts eliminate such barriers, which means businesses can allocate their capital more strategically.
Lower banking fees: Zero-balance accounts are designed with minimal maintenance fees, transaction fees, and foreign exchange fees compared to conventional accounts. This is the most significant reason why businesses choose zero-balance international bank accounts
Multi-currency support: Holding and transacting in multiple currencies is very critical for internationally operating businesses. Zero-balance accounts have support for a large number of currencies, major ones like USD, EUR, GBP, JPY, and many others.
It is easier for startups and SMEs to access zero-balance international accounts because the financial barriers are reduced and the application process is simplified compared to traditional international accounts, which have stricter eligibility criteria.
Many people and businesses can take advantage of a zero-balance international account:
Indian Exporters & Importers: Payments from foreign clients, and payments to foreign suppliers, can be done via these accounts. This helps in trade facilitation.
Freelancers & Remote Workers: Freelancers and remote workers who are paid in foreign currency can receive payments via these accounts from Upwork, Fiverr, or directly from international clients for easy and affordable income management.
E-commerce Businesses: Sellers that provide products and services to clients around the world on Amazon, Shopify, or Etsy can take advantage of zero-balance accounts for their international sales revenue and multi-currency dealings.
Startups and SMEs: These accounts are remarkably useful for Startups and SMEs expanding business into foreign markets as they help in smooth international operations without tying up excess capital in minimum balance restrictions.
Indian businesses have a range of options when it comes to opening zero-balance international accounts, including both traditional banks and innovative fintech solutions.
ICICI Bank – Global Foreign Currency Account
ICICI Bank offers foreign currency accounts tailored for businesses involved in global trade.
Key Features: Supports multiple currencies, no minimum balance for certain categories (e.g., exporters), linked international debit cards, and online banking access.
HDFC Bank – SmartForex Card & Multi-Currency Accounts
HDFC Bank provides multi-currency forex solutions suitable for international businesses and frequent travelers.
Key Features: Supports a wide range of currencies, no minimum balance for prepaid forex cards, real-time forex rates, and secure transactions.
Axis Bank – Offshore Business Accounts
Axis Bank offers foreign currency accounts designed to facilitate seamless international transactions for Indian businesses.
Key Features: Multi-currency accounts with no minimum balance for exporters, competitive forex rates and low remittance fees, online and mobile banking for convenient access.
SBI (State Bank of India) – Exporter Foreign Currency Accounts
SBI offers international business accounts specifically designed for exporters.
Key Features: Supports major currencies, no minimum balance for export-related accounts, competitive forex exchange rates.
Karbon Forex Account – A Smart Alternative for Indian Businesses
Karbon Business offers a low-cost forex solution specifically designed for Indian businesses managing international transactions.
Key Features: No hidden fees or minimum balance requirements, competitive forex rates, faster settlements for cross-border transactions, tailored for Indian exporters, importers, and businesses with international operations.
Wise Business
Wise is a leading fintech platform specializing in global transactions.
Key Features: Multi-currency account with no minimum balance, competitive exchange rates with transparent fees, fast transfers to a wide range of countries.
Payoneer – Ideal for Freelancers & E-Commerce
Payoneer is a popular fintech platform widely used for cross-border payments, particularly among freelancers and e-commerce businesses.
Key Features: No minimum balance required, supports payments in multiple currencies, direct withdrawals to Indian bank accounts, well-suited for Amazon sellers, freelancers, and remote workers.
Revolut Business – International Banking for Digital Entrepreneurs: Revolut offers a business account that caters to the needs of startups and businesses operating in the digital space.
Key Features: Multi-currency accounts with no minimum balance, instant currency exchange at interbank rates, integrated invoicing and payment tools.
A user-friendly online banking platform is essential for efficient management of your international account. The platform should offer easy access to transaction history, fund management tools, and ideally, features like automated invoice payments. We suggest modern FinTechs like Karbon for an intuitive online interface that can save valuable time and reduce the risk of errors.
The process for opening a zero-balance international bank account varies depending on whether you choose a traditional bank or a fintech platform. However, the general steps involved are outlined below:
1. Choose the Right Provider: Begin by researching and comparing different banks and fintech platforms. We have suggested a few in this article. Consider factors such as fees, supported currencies, transaction limits, and overall suitability for your business needs.
2. Gather Required Documents: The documents required include:
- Business Registration Certificate (for private limited companies, LLPs, or sole proprietorships
- PAN Card & Aadhaar of business owner
- GST Registration (if applicable)
- Export-Import (EXIM) Code (for businesses involved in international trade)
- Bank Statements or Income Proof (requirements may vary by provider)
3. Submit the Application: Some banks require an in-person visit to a branch, while fintech platforms like Karbon offer fully digital onboarding processes with online document uploads.
4. Complete KYC & Verification: The bank or fintech provider will conduct Know Your Customer (KYC) and verification procedures to confirm your business credentials before approving the account. Some providers may use video KYC for faster processing.
5. Activate the Account & Start Transacting: Once your application is approved, you can activate your account and begin sending and receiving international payments. You will be provided with an international bank account number along with the connect SWIFT/IBAN code etc.
For Indian businesses seeking a seamless and cost-effective solution for international payments, Karbon Business offers a compelling alternative. Here's why:
Zero-balance international bank accounts are invaluable tools for Indian businesses. There are many options like ICICI, HDFC, Axis, and SBI or Fintech services like Wise, Payoneer, Revolut, and Karbon. Make sure to opt for a provider that best fits your business model and usage. A thorough analysis of responsibility, investment expenses ratio, transaction velocity, regulatory policies, and general maturity of the system will ensure you accomplish your goals.
Yes, nearly all international bank accounts and fintech platforms enable USD payment, regardless of maintaining a minimum balance.
Whether you require an EXIM code or not depends on the bank or provider you are working with and what type of business you are running. If you export goods, then providers may require you to have an EXIM code for compliance reasons.
The "better" option depends on your individual business needs. Fintech platforms often offer lower fees, faster transfers, and more competitive exchange rates compared to traditional banks, making them a preferred choice for many businesses, particularly those that are digitally savvy and prioritize speed and cost-effectiveness. However, traditional banks offer a larger ecosystem or a greater sense of security that is important to some businesses. Consider your priorities carefully.
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