• Current Account

    A current account, also known as financial account is a type of deposit account maintained by individuals who carry out significantly higher number of transactions with banks on a regular basis. It is created by the bank on request of the applicant and is made available for frequent or immediate access. Current accounts relate to liquid deposits and it offers a broad range of customized options to aid financial dealings. Current accounts also allows to make payments to creditors through the cheque facility offered by the bank. Generally, current accounts do not provide interests and requires a higher minimum balance when compared to savings account. However, the greatest advantage of current bank account is that, account holders can easily avail overdraft facility up to an agreed limit.

    Features of a Current Bank Account

    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. Listed below are some of the basic features of a current bank account:

    • A current account allows transactions beyond the scope of a savings account
    • Compared to savings account, a current account requires a higher minimum balance
    • It is designed to facilitate frequent transactions – transfer funds, receive cheques, cash, etc.
    • A current account can be operated by individuals, proprietary concerns, public and private companies, associations, trusts, etc.
    • No restriction on the number of transactions in a day
    • 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
    • Nowadays, some banks offer interest rates on current accounts as well
    • Current accounts charge interests on short-term funds the account holder has borrowed from the bank

    Monthly Average Balance (MAB) Requirement on Basic Current Account of Different Banks

    Bank Monthly Average Balance (MAB) Free deposit limits
    HDFC Bank Rs.75,000 10 times the MAB
    ICICI Bank Rs.25,000 12 times the MAB
    Axis Bank Rs.10,000 Up to Rs.2 lakhs
    IndusInd Bank Rs.10,000 Up to Rs.2 lakhs
    Canara Bank Rs.1 lakh (quarterly) Up to Rs.5 lakhs per day
    Yes Bank Rs.1 lakh (quarterly) Up to 10 times of AMB
    Punjab National Bank Rs.1 lakh (quarterly) Up to Rs.2 lakhs per day

    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

    Banks offer different types of current accounts to suit the differential needs of their customers. You should have a clear understanding of the nature of transactions you wish to carry out after opening a current account. Here are some of the common types current accounts offered by banks:

    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.

    What are the Different Ways of Depositing Cash in Current Account?

    You can deposit cash in your current account using any of the following methods:

    • Depositing cash at any of the branches of your bank
    • Cheque deposits
    • Electronic transfers
    • Wire transfer from abroad

    Different Types of Access Provided by Current Account

    You can access your current account for daily cash transactions using any of the following methods:

    Home branch: You can visit your parent branch for a variety of banking needs such as cash withdrawals, deposits, financial assistance, etc. There may be charges applicable of withdrawals or deposits after a certain limit even at the bank branch.

    Cheque facility: It is one of the traditional ways of withdrawing cash from a current account. Even though internet banking is taking over most of the physical transactions, cheque option is still preferred by a lot of customers.


    You can withdraw your cash from any of the nearest ATM machine without visiting a branch. ATMs allow you to withdraw cash even after the normal banking hours, however, the withdrawal limits are low.

    Online Banking

    The online banking facility enables account holders to perform a myriad of banking activities such as cash transfer, clearing payments, viewing statements and balances, and much more. It is one of the most preferred methods of accessing a current account as you can transact even during the non-banking hours. Without having to wait in long queues and filling out forms, you can transfer money from your account in the click of a button. However, online transfers have a certain limit beyond which you will need a cheque to carry out such transactions.

    Phone Banking

    Most of the leading banks provide phone banking services which allow customers to perform a host of activities via calls. You can review your transactions, make payments, or check your balance using the phone banking facility.

    Documents Required to Open a Current Account

    You need to submit the following documents at your bank to open a current account:

    • PAN card
    • Address proof
    • Companies or trusts must submit a certificate of incorporation and memorandum of association
    • Partnership agreement in case of partnership firms
    • ID and residence proof of all partners
    • A color photograph of the applicant(s)
    • Cheque from existing savings account for account opening
    • Companies should provide address of communication

    Note: Make sure that the KYC documents you submit are valid on the date of submission.

    HDFC Bank Current Account

    HDFC Bank offers a number of customized current account options which are customized to suit the individual requirements of customers. The accounts do not limit the number of daily transactions and provide a host of benefits. Given below are some of the popular current accounts offered by HDFC bank.

    ULTIMA Current Account

    ULTIMA is an ideal solution for businesses looking for features beyond the normal current account options. It is designed keeping in mind the transaction requirements of manufacturers, distributors, multispecialty hospitals, etc.

    Supreme Current Account

    The Supreme Current Account offered by HDFC Bank helps large traders to manage their transactions with ease. It also provides access to the most advanced and secure form of internet banking and mobile banking services.

    Apex Current Account

    It’s a dynamic current account which offers a wide range of value added services. Customers can take the advantage of cash deposit limits equal to 10 times the average monthly balance of the previous month. Customers can also avail free demand drafts and pay facility.

    EZEE Current Account

    This account is best suited for those who traders who operate across various cities. Customers can enjoy combined cash deposit limits across all branches in the country. If you have opened an account in semi-urban and rural branches, then you can avail discounts on the average quarterly balance requirements.

    Max Current Account

    The Max Current Account offers a dynamic cash deposit limit at any branch across the country. The cash limit offered under the Max Current Account is equal to 10 times the current month average monthly balance.

    Agri Current Account

    As the name suggests, the current account offers a number of features to agricultural industries to help them achieve maximum benefits on the deposits. Customers can send and receive cheque payments anywhere in the country. Also, no charges are deducted on deposits up to Rs.10 lakhs.

    Plus Current Account

    This account is designed for businessmen who deal with suppliers in different parts of the country. Its allows the customer to deposit cash across all HDFC bank networks and provides additional 50 pay per orders and 50 demand drafts which can be issued at any branch.

    Current Account for Hospitals and Nursing Homes

    The account allows free unlimited collection of funds through RTGS and NEFT, and provides monthly cash deposits up to Rs.10 lakhs. In addition to that, you can also avail 30 demand drafts and pay orders each month.

    ICICI Bank Current Account

    ICICI Bank has launched a series of current account products to meet the regular transaction requirements of businesses. These tailor made products are suitable for traders, small businesses, and self-employed professionals with an annual turnover below Rs.2 crores. Here are some of the current accounts of ICICI bank:

    New Start Up Current Account

    It’s a transaction account which offers free cash deposits up to 12 months the average monthly balance for 6 months. It also provides free RTGS and NEFT transactions and 100 free cheques per month. It is ideal for startup companies.

    Shubhaarambh Current Account

    It is similar to New Start Up Current Account and offers free cash deposits up to 12 times the AMB of the account holder. This facility can be availed in any of the branches across the country.

    Smart Business Account

    It’s a current account product which offers free cash deposits up to 12 times the average monthly balance required to be maintained in the account. Account holders should maintain a minimum monthly balance of Rs.25,000.

    Smart Business Account – Gold

    It offers a plethora of benefits on the monthly average balance maintained by the account holder. The minimum monthly average balance (MAB) should be Rs.1 lakhs and customers can avail free cash deposits up to 12 time the MAB.

    Roaming Current Account Gold

    It’s a current account suitable midsize businesses that have a cash deposit requirement below Rs.10 lakhs per month. The minimum monthly average balance required to maintain a Roaming Current Account Gold is Rs.1 lakh.

    Roaming Current Account Premium

    It’s a premium category current account which offers free cash deposits up to Rs.5 lakhs. The minimum monthly average balance required to be maintained by the account holder is Rs.50,000. It also offers free RTGS and NEFT transactions as well.

    Roaming Current Account Classic

    The account offers free cash deposit up to Rs.2.5 lakhs per month in the home branch and it also provides free cheque collections and payments. The minimum monthly average to be maintained for Roaming Current Account Classic is Rs.25,000.

    Roaming Current Account Standard

    The Roaming Current Account Standard is designed to ensure that your business transactions take place at a smooth pace with just a minimum average balance requirement of Rs.10,000.

    Axis Bank Current Account

    Axis Bank current account come with a multitude of features and benefits, and these are designed to provide the greatest level of flexibility in transactions. The following current account products are offered by Axis Bank:

    Normal Current Account

    The account provides 25 free transactions per month and offers a free cash deposit facility of up to Rs.2 lakhs in home branch and Rs.1 lakh in other branches. It has a daily withdrawal limit of Rs.1 lakh per day.

    Local Current Account

    It provides a host of services to suit the local business requirements of customers. There is no limit set on the monthly minimum

    Business Advantage Account

    The Business Advantage Account offers a free cash deposit facility of up to Rs.3 lakhs for home branch and Rs.1 lakh for other branches. It allows 50 free transactions per month.

    Business Select Account

    Business select account offers a higher withdrawal limit of Rs.6 lakhs per day and the free deposit facility is 12 times the monthly average balance maintained in the account. The account allows 100 free transactions in a month.

    Business Classic Account

    The Business Classic Account has a free cash deposit facility and a withdrawal limit of Rs.12 lakhs per month. It also provides 200 free transactions per month.

    Sweeps Current Account

    The cash withdrawal limit offered by the Sweeps Current Account is Rs.1 lakh per day and the free cash deposit offered is Rs.1 crore per pool for a home branch.

    IndusInd Bank Current Account

    The current account of IndusInd Bank are designed to meet the requirements of regular businesses, corporate firms, importers, and exporters. Listed below are some of the current accounts of IndusInd bank:

    Forex Current Account

    It allows transactions in 7 different currencies and is designed to meet the requirements of international business organizations. Through Indus EXIM and Indus Dollar One accounts, importers and exporters can avail inexpensive trade services.

    Indus Edge Current Account

    The account is designed for large traders, wholesalers, and manufacturers and it comes with high cash deposit limits. Indus Edge has 7 variants which are listed below:

    • Indus Blue
    • Indus Silver
    • Indus Silver Plus
    • Indus Aspire
    • Indus Gold
    • Indus Gold Plus
    • Indus Prestige

    Niche Current Accounts

    IndusInd offers three different current account products to cater to the industry specific need of traders. It is as follows:

    • Indus Grain Merchant Flexi
    • Indus Textile Current Account
    • Indus Infotech Current Account

    Yes Bank Current Account

    Yes Bank offers three types of current account products to scale up the business activities of small scale businesses. Given below are the types of current accounts offered by Yes Bank:

    Edge Business

    It offers a host of value added services to suit the differential needs of customers. The product is ideal for startup firms where the transaction volume is not high. The account can later be converted into Prime Business or Exclusive Business current accounts.

    Prime Business

    This account is well suited for growing businesses that require a number of customized services due to high volume of transactions. You can choose from the list of value added services that match your business requirements. The account is eligible for revisions to Edge Business or Exclusive Business accounts.

    Exclusive Business

    The account comes with a lot of cost saving features and it is suitable for large and established business firms. The account offers a wide range of benefits based on account usage.

    Punjab National Bank Current Account

    Punjab National Bank offers two different accounts to enable frequent banking transactions. The following are the types of PNB current accounts:

    PNB Smart Banking Current Account

    It comes with a variety of features and choice of variants to meet the differential needs of customers. PNB Silver, PNB Gold, PNB Diamond, and PNB Platinum are some of the variants offered under the PNB Smart Banking Current Account product. The minimum balance required for sweep-in and sweep-out facility is Rs.10,00,000.

    PNB Current Deposit Account

    The PNB Current Deposit Account enables individuals, proprietary and partnership firms, HUF, etc., to carry out business in a convenient way without limiting the number of transactions. The product is available in all branches of Punjab National Bank. Account holders can set standing instructions on the account.

    SBI Current Account

    SBI offers different types of current accounts depending on the profile of the entrepreneurs. Here’s the list of current account products of SBI:

    Normal Current Account

    As the name suggests, the normal current account is for businesses which do not involve huge amount of transactions. The minimum balance requirement for opening a Normal Current Account is Rs.10,000. The account provides free corporate internet banking facility.

    Unfixed Deposit

    It’s a fixed deposit account with a minimum balance requirement of Rs.15 lakhs. You can deposit from 7 days to less than one year. The amount can be withdrawn any time after 7 days from the date of deposit. The Unfixed Deposit account offers an interest of 6.25% for deposits above Rs.1 crore fixed up to 61 days and 6.75% for 61 days to 1 year period.

    SME Power

    SME Power current account offers three different variants with varying quarterly average balance. Customers can enjoy a myriad of benefits and offered depending on the product selected. Listed below are the variants of SME Power:

    • Power Pack - quarterly average balance of Rs.5 lakhs
    • Power Gain - quarterly average balance of Rs.1 lakh
    • Power Base - quarterly average balance of Rs.20,000

    Sahaj Current Account

    The account is designed for small to mid-range businesses, and it requires a quarterly average balance as low as Rs.1,000. The maximum withdrawal limit offered by Sahaj Current Account is Rs.15,000 per day. The cash remittance per day is limited to Rs.10,000. The product is available in all the branches of SBI. Customers can set standing instructions for loan payment free of charge. You can contact your nearest SBI branch for opening a Sahaj Current Account.

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