Current Account

💼 What is a Current Account in Banking?

A Current Account is a type of bank account primarily meant for businesses, traders, entrepreneurs, and companies who deal with frequent banking transactions. Unlike savings accounts, current accounts have no limits on deposits or withdrawals, making them ideal for managing day-to-day financial operations.

Key Features:

• Allows unlimited transactions
• Generally no interest is paid
• Offers overdraft facility (bank allows you to withdraw more than your balance)
• Comes with chequebook, debit card, online banking, etc.
• Requires higher minimum balance than savings accounts

❓FAQs about Current Account

Q1: Who should open a current account?
A: Businesses, companies, freelancers, and professionals with high transaction volume should consider opening a current account.

Q2: Can I earn interest on a current account?
A: No, most banks do not offer interest on current accounts due to their high liquidity.

Q3: What is the minimum balance requirement?
A: It depends on the bank, but typically ranges from ₹5,000 to ₹25,000 or more. Some premium current accounts may require even higher balances.

Q4: Is there an overdraft facility?
A: Yes, many current accounts come with an overdraft facility, allowing you to withdraw more than the available balance (subject to bank approval).

Q5: Can individuals open a current account?
A: Yes, but it’s mainly recommended for individuals who do business or have frequent transactions. Regular salaried individuals usually go for savings accounts.

Q6: What documents are required to open a current account?
A: Common documents include:

• Identity proof (PAN, Aadhaar, etc.)
• Address proof
• Business registration/license
• GST certificate (if applicable)
• Recent passport-size photos

Q7: Are there any charges for using a current account?
A: Yes, banks may charge for:

• Non-maintenance of minimum balance
• Excess transactions
• Chequebook requests
• Overdraft usage