Current Account


A.    Current Account:

Current Account is known as a financial account is a type of deposit account maintained by the individuals or non-individual bodies who carry out significantly higher number of transactions with banks on a regular basis. On current account there is no restriction on withdrawal or deposit either in amount or in frequency of transaction. It is created by the bank on request of the applicant and is made available for frequent or immediate access. Current Account also allows to make payments to creditors through the cheque facility offered by the bank. Generally, Current Account do not provide interests and requires a higher minimum balance when compared to other account.


B.    Purpose:

Current Account relate to liquid deposits and it offers a broad range of customized options to aid financial dealings. These type of accounts are held neither for the purpose of Investment nor for the purpose of savings but only for the convenience of the frequent transaction as these accounts are the most liquid type of accounts. Such accounts are also called the Demand Deposit Account. The main objective of Current Account is to enable the businessmen to conduct their business transactions smoothly.


C.    Benefits:

Easy to operate;

Highly secured;

Unlimited transaction;

No deposit restriction;

No withdrawal limit;

Overdraft facilities;

Online payment facilities;


D.    Some Basic & Common Features:

Banks are offering a wide range of attractive features for the consumers, who wants to operate a Current Account. Following are some basic and common features of Current Account offered by most of the Banks:

-  Unlimited transaction;

-  No withdrawal limit;

-  No deposit restriction;

-  Overdraft facilities;

-  Demand Draft;

-  SMS Banking;

-  Online Banking;

-  Internet Banking;

-  Mail Transfer;

-  Telegraphic Transfer;

-  Cheque book facilities;

-  Debit Card facilities;

-  Convertible facilities;

-  Online payment facilities;

-  Transaction notification;

-  Electronic A/C statement;

-  Collect foreign remittance;

-  Life insurance facilities;

-  Safe deposit locker facilities;

-  Real-time gross settlement;

-  Automated clearing facilities;

-  Minimum documentation;


E.    Interest Rates:

Current Account mainly is a non interest bearing bank account. But now a days, many banks are offering 1% - 2% of interest rates calculated on daily balance.


F.    Fees & Charges:

There are few of fees & charges may applicable to a Current Account. Most common fees & charges are as follows:

-  Account maintenance fee;

-  Cheque book fee;

-  Debit card fee;

-  Internet banking fee;

-  Account closure fee;

-  Other fees & Charges;


G.    Current Account Opening Eligibility Factors:

Current Account opening eligibility depends on many more factors. Most of the Banks are considering following eligibility factors before approving any Current Account opening application.


       (a)   Who Can Open Account?

              Any individual and/or non-individual bodies with a valid source of income.


       (b)   Age Limit

              Most of the Banks are maintaining minimum 18 years age limit for the individual consumers.


       (c)   Professional Experience

There is no minimum professional experience required to operate a current account in any Bank.


       (d)   Minimum Monthly Income

There is no minimum monthly income level to operate a current account in any Bank.


       (e)   Proof of Identity

To open a Current Account every individual and/or non-individual bodies have to provide proof of identity with supportive documents in accordance of respective Bank and applicable law of the land.


H.    Things to Consider Before Applying to Open a Current Account:

Before applying to open a Current Account, consumers should consider following things.

-  Interest rate;

-  Initial deposit;

-  Fees & charges;

-  Withdrawal limit;

-  Transaction facilities;

-  Minimum maintaining balance;

-  Required documents list;

-  Compare all financers rates & features;


I.     Required Documents:

To open a Current Account there are various types of documents are required. Proper documentation the only possible way to open an account. Most of the Banks are considering similar guidelines in respect to the documents required. A generic list of such documents has been provided below:

-  Complete account opening form;

-  Nominee;

-  Introducer;

-  e-TIN document;

-  Photograph (if individual);

-  Proof of age (if individual);

-  Proof of identity (if individual);

-  Proof of income (if individual);

-  Proof of address (if individual);

-  Proof of nationality (if individual);

-  Meeting Minutes (if non-individual);

-  Proof of business identity (if non-individual);

-  Valid permission / license (if non-individual);