Introduction
A current account is essential for businesses, professionals, and institutions that require frequent and large-value transactions. Unlike savings accounts, which are designed for personal financial management, current accounts cater to operational and commercial needs. Banks set specific eligibility criteria to ensure that current accounts are opened by individuals or entities that genuinely require them for business purposes. These criteria help prevent misuse, maintain regulatory compliance, and ensure the bank provides services suited to the financial behavior of the account holder. Understanding the eligibility conditions makes the account opening process smooth and aligned with banking norms.
Eligibility for Individuals in Business or Profession
Individuals engaged in commercial activities such as trading, consulting, freelancing, and other business-related professions are eligible to open current accounts. This includes self-employed professionals like doctors, chartered accountants, lawyers, and architects. These individuals must furnish documents that establish the nature and legitimacy of their business or practice, such as GST registration, professional license, or business certificates.
Eligibility for Sole Proprietorships
Sole proprietorship firms are eligible for current accounts if they provide proof of business activity in the name of the proprietor. Required documents include a business registration certificate, GST certificate, trade license, or Udyam registration. Identity and address proof of the proprietor are also required, as well as the firm’s name and address on at least two recognized documents.
Eligibility for Partnership Firms
Registered and unregistered partnership firms can open current accounts in the firm’s name. Banks typically require a copy of the partnership deed, registration certificate (if applicable), PAN card of the firm, and identity/address proofs of all partners. The account operation mode—whether by one or more partners jointly—must be clearly mentioned in the resolution or authority letter.
Eligibility for Limited Liability Partnerships (LLPs)
LLPs are eligible provided they submit incorporation documents such as the Certificate of Incorporation, LLP agreement, PAN, and address proof of the firm. The designated partners’ identity and address documents are also required. A resolution authorizing the designated partner(s) to operate the account must be presented.
Eligibility for Private and Public Limited Companies
Companies registered under the Companies Act are eligible to open current accounts upon submission of the Certificate of Incorporation, Memorandum and Articles of Association (MOA and AOA), PAN of the company, board resolution authorizing account opening, and identity/address proof of the directors and authorized signatories. The name and address of the company must match the Ministry of Corporate Affairs records.
Eligibility for Trusts and Associations
Registered trusts, societies, NGOs, and cooperative societies can open current accounts by providing their registration certificate, trust deed or society bylaws, PAN, and identity/address proof of trustees or office bearers. A resolution specifying authorized signatories and account operation mode is mandatory. Banks may also request proof of charitable or social objectives for additional compliance.
Eligibility for Government Organizations and Educational Institutions
Government departments, public sector undertakings, and educational institutions recognized by competent authorities are also eligible for current accounts. Documents required include government-issued authorization letters, registration documents, identity and address proof of the institution, and authorization for individuals operating the account.
Minimum Age Requirement
In all categories, the minimum age for individuals opening or operating a current account must be 18 years or older. Minors are not permitted to open current accounts, as they are intended for business and professional use. The age criterion applies to sole proprietors, partners, directors, and signatories.
KYC Compliance and Documentation
Every applicant must comply with Know Your Customer (KYC) norms laid down by the Reserve Bank of India. These include submission of valid identity proof, address proof, PAN or Form 60, photographs, and business verification documents. Banks may also perform due diligence through physical verification or video KYC in line with RBI guidelines.
Conclusion
Opening a current account requires satisfying certain eligibility conditions that validate the commercial nature of the applicant’s activities. From individuals and sole proprietors to companies and trusts, each entity must present appropriate documentation to meet banking regulations. Ensuring compliance with KYC norms, business verification, and legal registrations helps banks serve clients effectively while safeguarding financial integrity. For any business or professional, understanding these eligibility criteria is the first step toward leveraging the full benefits of a current account.
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