Current Account

CURRENT ACCOUNT

What is a current account?

A current account is a type of financial account generally availed by entrepreneurs and others who regularly access various banking facilities like paying your bills, receiving your salary and other transactions.

An individual can visit any bank he/she wishes and request to open a current account for frequent and immediate access. Current accounts realize the different needs of various financial institutions and thus offer a wide range of customizable options to help with financial dealings as well as liquid deposits. However, it is necessary to note that a current account minimum balance is much higher than that of a savings account without returns on deposits made. The main feature of a current account is the overdraft facility that it provides.

Required documents to create a current account

The below KYC (Know Your Customer) documents are generally required to create a current account:

• Aadhar Card
• PAN card
• Residence proof
• A certificate of incorporation and memorandum of association should be submitted by Companies or trusts.
• An address of communication of the company.
• A Partnership agreement has to be submitted in case of a partnership firm.

• Address proof and IDs of all partners of the firm.
• A colored photograph of the applicant(s).
• Cheque from an existing savings account for opening the account.

Features of a current account:

In order to cater to the dynamic needs of banking and financial institutions, banks offer various current accounts for day- to- day banking operations and transactions:

• A higher minimum balance must be maintained in a current account as compared to a savings account.
• Charges are levied for inability to maintain a minimum balance.
• It aids individuals who regularly carry out a large volume of transactions.
• A current account does not promote saving money with its account holders.
• A current account succeeds in allowing businessmen to carry out their transactions smoothly
• There is no defined limit on the amount and number of deposits and withdrawals in the account.
• There is also no defined limit on the frequency of transactions in a single day.
• The range of the scope transaction goes beyond that of a savings account.
• This is usually a non- interest bearing account, but there are a few exceptions.
• A single business can only hold one single current account.
• A current account is the most suited bank account for a business.

Ways of depositing cash in a current account

There exist multiple ways for one to deposit cash in their current account:

• Different electronic transfer facility
• Deposit cash at any of your bank branches
• Cheque deposits
• You can transfer cash in your current account from abroad as well via wire transfer

Types of current account

There exist different types of current accounts to suit different needs. Browse through the list below and pick the best current account for you:

Standard Current Account:

People generally go for a Standard Current Account. This current account provides no interest on the deposits in your account. Moreover, you are required to maintain a predisposed minimum balance in the account. As an account holder, you are provided with a cheque book, debit card and over draft facility. There are also provisions for Mobile Banking, Net Banking and free NFT and RTGS transactions.

Premium Current Account:

Account holders of a premium current account are entitled to exclusive benefits and banking services. Account holders can also avail a wide range of customizable features. A premium current account is mainly those individuals who carry out high banking transactions regularly.

Foreign currency Account:

This account is the best option for those businessmen or individuals who regularly carry out high financial transactions in foreign currencies.

Packaged Current Accounts:

Account holders generally receive additional bonuses like interest- free overdrafts, discounted interest rates on savings and loans, medical support, travel insurance, etc.

Single column cash book:

Account holders can partake in daily transactions but can not avail the overdraft facility. It is best suited for businessmen who prefer not to maintain bank accounts. Daily transactions are recorded separately under a credit and debit column.

Banking with current accounts

One can carry out daily transactions in their current account in the following ways:

Net Banking:

A customer can avail the online banking facility from their respective banks for a convenient banking experience! Access your current account anywhere, anytime you want with the help of net banking. Moreover, you can also make payments and transfer with the help of his facility.

Home Branch:

A customer can be qualified to receive certain banking services at the parent branch if the customer is levied charges on withdrawals and deposits after a certain limit at a branch of the bank.

Phone Banking:

Banking is now easier with customers being permitted to perform a host of activities over a single phone call.

Cheque facility:

Many banks still offer the traditional cheque facility to customers who prefer cheques over online banking since there maybe charges levied on online transfers after a certain limit.

ATMs:

ATMs are the best and most convenient way of making cash withdrawals and deposits without you having to visit a bank branch.

Overview of current accounts provided by different banks in India:

1) Kotak Mahindra Bank:

Browse through a wide range of Kotak Mahindra Bank current account to best suit your business needs:

• Startup Regular Current Account
• Startup Premium Current Account
• Elite Current Account
• Ace Current Account
• Pro Current Account
• Neo Current Account
• Edge Current Account
• Global Trade Current Account
• Astra 05 Current Account
• Astra 15 Current Account

2) ICICI Bank

ICICI Bank offers a host of current account facilities to best suit the financial needs of self-employed professionals, small businesses with an annual turnover of less than Rs. 2 Cr. The varied types of ICICI bank current account are:

• Shubhaarambh Current Account
• Smart Business Account
• Smart Business Account- Gold
• New Start Up Current Account
• Roaming Current Account Gold
• Roaming Current Account Premium
• Roaming Current Account Classic
• Roaming Current Account Standard

3) HDFC Bank

Based on the type of business you run, you can avail a HDFC Bank current account best suited to meet your professional needs:

• ULTIMA Current Account
• Max Current Account
• Trade Current Account
• Premium Current Account
• Apex Current Account
• Plus Current Account
• Flexi Current Account
• Supreme Current Account
• Regular Current Account
• EZEE Current Account
• Agri Current Account
• Institutional Current Account
• Current Account for Hospitals and Nursing homes
• Current Account for Professionals
• Merchant Advantage Plus Current Account
• Merchant Advantage Current Account

4) Axis Bank

An Axis Bank current account comes with superior banking facilities and services. Check the list to see which Axis Bank current account best caters to your requirements:

• Normal Current Account
• Advantage Current Account
• Select Current Account
• Business Classic Current Account
• Business Privilige Current Account
• Channel one Current Account
• Club 50 Current Account

5) State Bank of India (SBI)

SBI offers a variety of current accounts based on the type of business of their customers:

• Unfixed Deposit Current Account
• SME Power Current Account
• Normal Current Account
• Sahaj Current Account

6) YES Bank

YES Bank aims to attend to the business needs, mainly of small- scale businesses. The 3 types of current account provided by YES Bank are:

• Exclusive Current Account
• Edge Current Account
• Premium Current Account

7) Bank of Baroda

Bank of Baroda asserts that its main objective with its current account feature is to perfectly suit all of its customer’s needs. The types of current accounts are:

• Baroda Premium Current Account (BPCA)
• Baroda Premium Current Account- Privilege (BPCAP)
• Baroda Small Business Current Account
• Baroda Advantage Current Account

8) DBS

DBS provides a wide range of current account services to aid their customers run their businesses smoothly:

• Business Edge Account
• Business Entrepreneur Account
• Business Edge Preferred Account

9) Punjab National Bank (PNB)

As one of the oldest banks in the country, it aims to provide the best current account facility to its customers. They are:

• PNB Smart Banking Current Account
• PNB Current Deposit Account

10) IndusInd Bank

IndusInd current accounts are designed to meet the needs of importers, exporters, corporate firms, etc. The types of current accounts offered are:

• Customised Current Account
• Indus Grain Merchant Flexi Current Account
• Indus Edge Current Account
• Forex Current Account

11) Union Bank of India

The Union Bank of India offers different current accounts to aid different institutions run their finances efficiently. The varieties of union bank current account offered are:

• Regular Current Account
• Union Flexi Current Account
• Union Flexi Premium Current Deposit
• Union Classic Current Account for Bank

Along with the varied types of current account facilities, a customer can avail a range of exclusive services and benefits to go with their current account, to make most of their banking experience.