Current Bank Account – Current account is opened in co-operative and commercial bank. It is used to do business transactions. Current account is used by traders. Which requires more transactions. Bank Business Banking offers a wide range of current account products for your regular business transactions. Those products are best suited for small retailers, merchants, self-employed professionals and other such businesses with an annual turnover of less than 2 crores. Whichever best suits your business needs.
What is Current Account
A current account is an account in which the bank or post office allows you to withdraw and deposit money any number of times. Banks offer overdraft facility depending on the status of your account. In lieu of this, they do not give you any interest on your deposits and also levy some current account keeping charges.
Even if you do not maintain a minimum balance, you are subject to a minimum balance charge. This account is necessary for businessmen, companies, business establishments or institutions. There is a need to deposit and withdraw money in the bank several times a day.
Current Bank Account Importance
Current account is necessary for public enterprises, companies, firms. Because it is a regular transaction in the institutions. For such tasks simply does not work. Hence the need for a current account. Current account is like a zero account. In which there is no limit to how many transactions can be done. Transaction prices in this account are high and are also not predetermined. A Current account is very important for the businessmen.
Current Account Features and Benefits
- Merchants can easily transact without any hassle.
- You can pay more money for work.
- Transactions can be done without interruption in the current account.
- Current account in India is opened in banks for Rs 5,000 to Rs 25,000.
- Current account is opened in more rupees than savings account.
- There is a provision to keep minimum money in the current account.
- If the money is less than the minimum amount, then penalty will have to be given.
- There is no minimum limit for transactions in current account.
- Multiple transactions can be done in the current account.
- Overdraft facility can be used in the account.
- With this account, merchants can directly transact through cheques, drafts etc.
- With this service the barriers to business transactions have been reduced.
- Money can be deposited in the account by paying some nominal fee.
- You can do transactions from your mobile phone while sitting at home.
Current Bank Account Required Documents
Partnership deed (in case of partnership firm)
Certificate of Investment, Memorandum of Association and Articles of Association (in case of companies)
A check for opening a bank account
Address Proof of Firm / Company / HUF
ID and Address Proof of all Partners/Directors
How to Open a Current Account
Check your eligibility before opening a current account. Because many banks check for opening a current account. Why do you have to open a current account? Like you have to open current account for public or private business or for any firm? After this, you download the form to open a current account from the bank’s website or fill it by taking the form from your nearest bank. Fill all the information asked in that form correctly. Pin all the papers with the form and submit it to the bank.
Current Bank Account Disadvantages
It is necessary to keep more balance required for the account.
The holder does not get any interest even after keeping more amount in the bank account.
That is the biggest loss to his capital.
The process of opening a current account is very difficult and lengthy.
In the current account, there is a heavy burden on the person.
Because you have to pay many charges.
There is a fixed limit for the transaction of money in a current account in one day.
If you want to transact more than this, then you will have to pay an additional fee.
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