Definition and Objective

• A current account is a type of bank account primarily used for business and commercial transactions.
• It allows unlimited deposits and withdrawals to support high-volume operations.
• This account is designed for professionals, traders, companies, and institutions.
• Unlike savings accounts, current accounts generally do not offer interest.
• It serves as a tool for managing daily business cash flow efficiently.

Key Features and Functionalities

• Provides overdraft facilities to handle short-term fund shortages.
• Offers cheque book, debit card, and online banking services.
• Permits large fund transfers through NEFT, RTGS, and IMPS.
• Supports bulk payments, payroll processing, and vendor transactions.
• No limit on the number or value of monthly transactions.

Eligibility and Opening Requirements

• Businesses, firms, partnerships, companies, and self-employed professionals can apply.
• Valid business registration, PAN, and address proof are mandatory.
• Identity documents of the proprietor or directors are required.
• Trade license, GST registration, and other permits may be needed.
• KYC compliance and an initial deposit are essential for activation.

Advantages for Business Operations

• Helps maintain a clear separation between business and personal finances.
• Facilitates easy tracking of income and expenditure for audits and tax filing.
• Enhances business credibility and simplifies client transactions.
• Provides banking support for expanding business requirements.
• Enables linking with accounting and financial management tools.

Account Management and Conditions

• Generally requires a higher minimum balance than savings accounts.
• Non-maintenance may result in penalty charges or reduced features.
• Statements are issued more frequently for accurate bookkeeping.
• Customizations are available based on transaction volume and business type.
• Banks offer dedicated relationship managers for business account holders.