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What Is a Current Account and How to Open It in a Bank?
Posted on Friday, June 24th, 2022 | By IndusInd Bank
If you’re a business owner or just embarking on a new venture, you will need a reliable bank account to manage your business finances seamlessly. While banks offer multiple services to meet the different demands of their customers, a current account offers maximum convenience with a wide range of services to match the dynamic requirements of your business.
If you conduct frequent high-volume transactions, opening a current account is your best bet. Let’s take a closer look at the current account and how you can open one for your business.
What is a Current Account?
A current is used to execute regular high-value, high frequency business transactions. If you want to maintain an account for liquid deposits, you can open an account individually or jointly with your business partner. But what about interest? Unlike savings accounts, banks do not provide interest on current accounts.
With a current account, you can deposit or withdraw the money anytime. The primary objective of this account is to help business owners carry out business transactions smoothly.
Benefits of a Current Account
A current account can simplify your business transactions. Here’s how-
- It is focused specifically on facilitating frequent financial transactions
- It comes with higher daily transaction limits
- It offers multiple provisions like overdraft, higher limit on deposits, auto sweep deposit, etc.
- You can deposit or withdraw money at any location
- It enables you to make direct payments with the help of demand drafts, cheques, or pay orders
- Most banks also offer seamless digital banking services on your current account
How Can You Open a Current Account in a Bank?
You can open a current account in any bank in India. Most banks have flexible eligibility to open a current account. You can visit the nearest branch with all the required documents to complete the application process or apply online.
If you want to open a current account online, follow these steps-
Step 1- Visit the bank’s official website and navigate to the current account opening form
Step 2- Check your eligibility and fill in the required details
Step 3- Download the filled application form and take a printout
Step 4- Visit the nearest branch along with the application form and the required documents to open a financial account
Eligibility Criteria
Any small or medium business owner can open a current account online. The eligible businesses are-
- A resident individual
- Partnership
- Sole proprietorship
- Limited company
- Association
- Limited liability partnership
- Club/Society
Furthermore, you can visit the website of the bank to check the documentation requirements before applying.
The Bottom Line
With a current account, you can conveniently manage bulk transactions and high-value payments for your business. Make sure you research well to find the best bank for a current account that fits your requirements. With IndusInd Bank, you can easily apply for a current account online. All you have to do is fill up a form and a customer representative with contact you for further proceedings.
Disclaimer: The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. Hence, you are advised to consult your financial advisor before making any financial decision. IndusInd Bank Limited (IBL) does not influence the views of the author in any way. IBL and the author shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information.
