Current Account is an account in which there is no limit on the no. of transactions that can be done in a day and are therefore also referred to as Transactional Accounts. These type of accounts are held neither for the purpose of Investment nor for the purpose of Savings but only for the convenience of the business as these accounts are the most liquid type of accounts.
Banks don’t pay any interest on the amount lying in these accounts and in some cases also charge a small fee for the services they provide. These types of Bank Accounts are usually opened by businesses as there no. of transactions are on the higher side.
How to open a Current Account in a Bank?
All Indian Banks are allowed to open Current Accounts. You can approach any bank with the requisite documents and on successfully furnishing all details in the application form, the banker will verify all documents and on being satisfied, they will open your Current Account.
Current Account users are also required to maintain minimum quarterly average balance in their accounts. Most banks have minimum quarterly average balance criteria of Rs 5,000/ Rs 10,000.
Documents required for opening a Current Account
The following documents are required for opening a Current Account in India
- PAN Card
- Partnership Deed (in case of Partnership Firm)
- Certificate of Incorporation, Memorandum of Association and Articles of Association (in case of Companies)
- A Cheque for opening the Bank Account
- Address Proof of the Firm/ Company/HUF
- ID and Address proof of all partners/directors
The account holder would also be required to comply with all the KYC Norms. In case you don’t have all the above documents, you can refer this link which provides the list of alternate documents to be submitted in case the above documents are not available.
Almost all banks provide the facility of Debit Card, mobile banking and internet banking for current account users. However, they may charge a small fee for such services.
