5 Charges Related to Current Account

If you need to transact frequently or make bulk payments as a trader, small or medium business owner, corporate, start-up chief, or farmer, you need a Current Account. These are zero-interest-bearing accounts with generous allowances on the daily transactions you make. They also come with an instant overdraft facility. This article discusses the kind of Current Account opening charges you need to pay to open and operate a regular Current Account. 

Based on a range of features, Current Accounts are curated for different types of customers like farmers, corporates, owners of small and medium enterprises or professionals, and NRIs, among others. Banks offer different variants of Current Accounts, sometimes called package accounts. The  Current Account  opening charges may vary from one type of account to another based on their features. 

Some common charges associated with the current account are:

1. Non-maintenance charges
   
   

Banks require Current Account holders to maintain a minimum amount as account balance on average within a quarter or month. For example, the minimum account balance for a regular Current Account with HDFC Bank is ₹10,000. However, the average quarterly balance and minimum account balance (MAB) can vary between the Current Account products. 

The way it is calculated is explained here: 

For example, a bank requires you to maintain an MAB every quarter. It is the average of daily closing balances of each day spread over three months.

You may have to pay Current Account charges for non-maintenance of the average minimum account balance. The non-maintenance charge for regular Current Accounts with HDFC Bank is about ₹1,500 every quarter. 

2. Charges for Current Account facilities
   
   

Banks charge nominal amounts for various Current Account facilities like requests for duplicate account statements, remittances as demand drafts, pay orders or cancellations, and NEFT and RTGS transactions (they are free if you make these payments through net banking), among others.

3. Bulk transaction charges
   
   

There is a certain limit on the number of free bulk transactions you can make in a month based on your package account. Beyond that, you are charged a very nominal sum per transaction. 

4. Charges for cheque collection and cheque bouncing
   
   

Although most payments can be made digitally today, you may be required to make certain payments through cheques. For some Current Accounts, you may have to pay a minimal amount for outstation cheques at bank branches or cheque collections at the correspondent bank locations.

You must pay a nominal fee if cheques are drawn on the bank bounce because of insufficient funds or unpaid returns. If cheques bounce due to technical reasons, you do not have to pay anything. You also have to shell out token amounts for stopping payments. 

5. Miscellaneous charges
   
   

The other miscellaneous Current Account bank charges that you may have to furnish on a regular Current Account include balance enquiries, balance confirmation certificates, interest certificates, identity verification, cheque status, PIN/TIN regeneration, and account closure, among others. 

Looking to apply for a  Current Account ? Click here to get started. 

​​​​​​​Read more on  how to open a Current Account  here.
 

*Terms and conditions apply. The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances.