Hello and welcome to exampundit. Today we are sharing All about Current Accounts in India in a PDF. We will be sharing about Savings Bank Accounts, FD/RD Accounts and all the important types of Accounts in coming days.
All about Current Accounts in India
Current Accounts are usually used by Business persons, firms, companies and public enterprises namely.
A current bank account is one of the primary requirements for starting a business. These days, banks offer a number of attractive offers and benefits on current accounts to match the diversified needs of businesses.
Features of a Current Account
- Non-maintenance of the minimum balance can attract penalty charges
- Just like savings account, KYC guidelines are to be followed even for current accounts
- For a single business, there cannot be multiple current accounts
- The prime objective of current account is to facilitate smooth transactions for businesses
- Currents accounts do not earn any interest due to the fluidity they offer.
- Current accounts charge interests on short-term funds the account holder has borrowed from the bank
Benefits of a Current Account
- Allows for prompt business transactions
- No limit on withdrawals
- No limit on deposits in the home branch
- Enables businessmen to make direct payments using cheques, demand drafts, or pay orders
- Provides overdraft facility
- Provides internet banking and mobile banking facilities
Types of Current Account
Standard Current Accounts
It’s a non-interest bearing deposit account with minimum balance requirements and a stipulated monthly average balance. It offers cheque books, debit cards, overdraft facility, etc. Other features may include internet banking, SMS banking, Free RTGS and NEFT transactions, etc.
Packaged current accounts
The packaged accounts offer a lots of perks to accountholders. It comes with additional features such as travel insurance, medical support, roadside assistance, etc.
Single column cash book
Simple cash accounts or single column cash book accounts allow for daily transactions but does not provide features such as overdraft facility. It is suited for those businesses that do not maintain bank accounts. It is a cashbook which records the daily transactions under separate columns for debit and credit.
Premium current accounts
It comes with exclusive offers and benefits to accountholders. The account provides a multitude of customized features and it is generally suited for those who carry out high financial transactions.
Foreign currency accounts
For those individuals or businesses that require frequent transactions to be carried out in foreign currencies, a foreign currency account is the best option.
Difference between Current Accounts and Savings Account
|Current Account||Savings Account|
|Currents accounts do not earn any interest due to the fluidity they offer.||Savings Bank Accounts earn interest.|
|A Current Account is created for Business Purpose||Savings Accounts are opened for savings purpose.|
|Current Account carries overdraft facility.||Savings Accounts usually do not carry overdraft facility.|
|There is no limit of transaction in Current Account.||Banks may impose transaction limit on Savings Account.|
|The Minimum Balance is usually higher in Current Account.||The minimum balance in Savings Account is lower.|
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