Current Account

Banks have different types of current accounts to suit their customers' banking needs. It's important to choose the right account based on the transactions you plan to make. Here are some common types of current accounts offered by many banks. Keep in mind that the options might differ depending on the bank you go with.

1. Basic Current Accounts – This account is good for people who don't earn a lot, like retirees or young people. It helps them handle their money more easily. But, there are limits on how much cash you can take out each day.

2. Standard Current Accounts – This kind of account asks customers to keep a certain amount of money in it every month. It doesn't give any interest on the money you put in. But, it provides things like a checkbook, debit card, and overdraft (which means you can spend more than you have in the account, up to a limit).

3. Foreign Currency Accounts – Foreign Currency Accounts are available for Non-Resident Indians (NRIs) or individuals who need to do a lot of transactions using foreign currencies.

4. Packaged Current Accounts – This type of current account gives account holders many extra advantages. It includes special features like medical help, travel insurance, and other benefits.

5. Premium Current Accounts – This account offers special offers and advantages to its customers. It's great for doing big transactions.

Current accounts are created by banks to meet the banking and financial requirements of businesspeople, traders, and professionals. Here are some key features and benefits:

• It's made for frequent transactions like transferring funds and receiving checks.
• Anyone, including individuals, public and private companies, proprietors, associations, and trusts, can open a current account.
• Just like with a savings account, Know Your Customer (KYC) guidelines must be followed when opening a current account.
• There's no limit on the number of transactions you can do in a day.
• There's no restriction on the amount of cash you can deposit at your home branch.
• It allows for quick business transactions, letting account holders make direct payments using checks, demand drafts, or pay orders.

Any individual with acceptable KYC documents can open a current account at a bank. You can go to any bank with the necessary documents to open one. Current account holders must keep a minimum monthly average balance (MAB) in their account; otherwise, they may face penalties. Here is the eligibility criteria that individuals need to meet to open a current account in India:

• Sole Proprietor
• Partnership Firms
• Hindu Undivided Family (HUF)
• Trusts
• Individual
• Limited Companies
• Societies / Clubs / Associates
• Executors, Administrators and Liquidators

Here's a list of documents needed to open a current account. These documents prove your name, address, and what you do. Remember, the specific documents required might differ depending on the bank and the type of account you choose.

You need to submit one of the following documents for both identification and address proof along with the current account opening form:

The primary reason for opening a current account is to smoothly conduct all business transactions. It enables customers to handle bulk transactions and large payments conveniently. Therefore, selecting the right account is crucial. Consider all the factors carefully when choosing the most suitable bank account option. Here are the essential factors to keep in mind when making the right current account choice:

Cash Deposit Limit: The amount of cash you can deposit for free each month may differ depending on the bank and the type of account you have.

Minimum Balance: The minimum amount of money that must always be in your account to keep it active is higher for a current account compared to a savings account. This minimum balance requirement varies depending on the type of account you choose.

Fees, Charges and Overdraft Costs: Different accounts have different fees and charges. You need to pay attention to important things like charges for withdrawing cash, fees for demand drafts, transferring funds, overdraft costs, and more.

Individuals, private and limited companies, partnership firms, Hindu Undivided Families (HUFs), trusts, and other entities can open a current account.

In India, all banks offer different types of current accounts. However, when considering the factor of maintaining a minimum balance, ICICI Bank and Axis Bank provide the option of a Zero Balance Current Account.

No, you don't need to have GST registration to open a Current Account.

It's important to know the minimum balance requirement for each type of current account offered by the bank. Account holders should make sure to keep their account balance at least as much as the minimum balance required for their current account.