How to Open a Current Account?

A current account is a type of bank account designed for businesses and individuals who conduct frequent financial transactions. It offers features like unlimited deposits and withdrawals, overdraft facilities, and chequebook issuance. Current accounts do not typically earn interest, but they provide easy access to funds for daily operations.

The Current Account opening procedure has also become very simple. Most banks have shared a list of documents online that they would require, along with the procedure of how to open a Current Account online. Before we discuss the procedure, let us first understand the benefits of current accounts.

Unlimited Transactions

Current accounts offer unlimited transactions, allowing businesses to manage large volumes of daily transactions without restrictions. This flexibility is crucial for handling frequent deposits, withdrawals, and payments, ensuring smooth financial operations.

Overdraft Facility

Current accounts provide an overdraft facility, enabling account holders to withdraw more money than is available in their accounts. This feature offers a financial cushion during cash flow shortages, helping businesses meet urgent expenses without disrupting operations.

Cheque Book Issuance

Account holders receive a certain number of free cheques to use every month. This feature facilitates secure and convenient supplier, vendor, and employee payments. Cheques also serve as a formal record of transactions, aiding in financial tracking and accountability.

Online Banking

Current accounts typically include online banking services, allowing businesses to manage finances digitally. This feature enables real-time account monitoring, fund transfers, bill payments, and access to account statements, enhancing financial control and efficiency.

Multi-location Access

Banks often provide multi-location access for current accounts, enabling transactions at different branches. This is particularly beneficial for businesses with multiple locations, allowing seamless banking operations across various regions.

Business Growth Support

Current accounts often come with additional services like business advisory, investment options, and credit facilities. These services support business growth by providing financial guidance, investment opportunities, and access to funds for expansion.

High Transaction Limits

Current accounts offer high transaction limits, accommodating the needs of businesses that handle substantial cash flow. This feature ensures businesses can conduct large transactions without limitations, promoting smooth financial operations.

Easy Fund Transfers

Current accounts support easy and quick fund transfers through various modes like NEFT, RTGS, and IMPS. This capability ensures timely payments to suppliers and employees, maintaining healthy business relationships and operational efficiency.

Also, did you know that Current Accounts can be tailored to meet business requirements? Yes. Unlike a savings account, a Current Account can be personalised depending on the business needs. However, the only criteria for a Current Account is the average minimum balance which has to be maintained every quarter.

To open a Current Account, all you need to do is:

Step 1: Eligibility Check

Check your eligibility criteria for opening a Current Account. Most banks have very liberal eligibility criteria for opening a Current Account. NRIs can open a Current Account out of the proceeds from an NRO (Non-Resident Ordinary)/NRE (Non-ResidentRupee)/FCNR (Foreign Currency Non-Resident) account only. This amount will not be available for repatriation outside India.

Step 2: Complete Application Form

Download the account opening form from the bank’s website. Alternatively, this form will also be available at any bank branch that is nearest to you. Next, fill up the opening form with all the relevant and necessary details.

Step 3: Submit Documents

Collect the list of documents that the bank will require. If you are already a bank customer and comply with KYC regulations, you may have a different list of documents that the bank will need. Therefore, it is essential to confirm the list.

Some documents required for opening a Current Account are:

• Proof of the existence of the business

• Proof of address of the business

• KYC of the proprietor

• Tax registration documents

• Licences from relevant authorities.
   

You can read more about the  documents required for Current Account here.

Step 4: Account Opening

Once you submit the form and other required documents, the bank will allot you an account after conducting a necessary verification. You can collect the welcome kit by visiting your home branch. You can also now make deposit and withdrawal transactions and access other facilities your bank offers.

With HDFC Bank, you can now easily apply for a Current Account online. All you need to do is fill up a form with your personal, business, and contact details. A customer representative from the bank will contact you for further particulars and collect the documents they require to open your Current Account.

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

* 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.