Eligibility Criteria for Opening a Current Account


What Is A Current Account?

A current account, usually referred to as a financial account, is a form of deposit account kept solely or jointly for the purpose of regularly carrying out significant value transactions. Unlike savings accounts, current accounts do not offer interest and are related to liquid deposits. The majority of businesspeople who open current accounts are sole proprietors, partnerships, trusts, groups of individuals, public and private corporations, etc.

Customers can make any time, notice-free deposits and withdrawals of any amount. The account is perfect for using checks to pay debtors. The major goal of the current bank account is to make it possible for businesspeople to conduct financial transactions easily.

What Are The Types Of Current Accounts?

In order to meet the various banking demands of their clients, banks offer a variety of current accounts. One should select the sort of account that is most appropriate for the kinds of transactions they intend to carry out. The many current account kinds that most banks provide are listed here. It should be noted that different banks may have different current account types.

1. a) Standard Current Account:

Customers who have this kind of account must maintain a minimum monthly average balance. The sum deposited into the account earns no interest. However, it provides its clients with a chequebook, debit card, overdraft facility, etc.

2. b) Basic Current Account:

Customers with low incomes, such as pensioners, students, and others, use it. It makes it very simple for clients to manage their accounts. There are some limitations on the daily cash withdrawal cap, though.

3. c) Packaged Current Account:

Numerous advantages and rewards are offered to account holders of this sort of current account. It includes special features like travel insurance, medical support, and more.

4. d) Foreign Current Account:

NRIs and other people who desire to conduct many transactions in foreign currencies are given access to foreign currency accounts.

5. e) Premium Current Account:

This type of account provides its users with special discounts and advantages. The best use for this account is to execute huge value transactions.

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What Are The Features And Benefits Of the Current Account?

Banks offer current accounts to meet the banking and financial needs of businesspeople, merchants, professionals, etc. The following are some of the fundamental characteristics and advantages of a current account:

1) It is specially made to simplify frequent transactions like receiving checks, transferring money, etc.

2) Just like with savings accounts, current accounts must also abide by the KYC rules.

3) There are no limitations on how many transactions can be made in a day.

4) The home branch does not have any restrictions on cash deposits.

5) Quick commercial transactions are made possible, enabling account holders to make immediate payments utilising checks, demand drafts, or pay orders.

What Is The Eligibility Criteria For Opening A Current Account?

You are eligible to set up a current account if you belong to the following categories:

  1. Resident Individual
  2. Private and Public Limited Companies
  3. Sole Proprietorship Firms
  4. Partnership Firms
  5. Hindu Undivided Family
  6. Limited Liability Partnership Firms

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