How To Open A Current Account?

By Author: Vani Malhotra
Total Articles: 3

A current account is one that has no limitations on the number of daily transactions. It is also referred to as a transactional account. Business persons generally operate these accounts since they offer the highest amount of liquidity. Business people do not earn any interest on the sum deposited into the current account and may need to pay a small fee for carrying out transactions.

Following is a comprehensive guide of the procedure for current account opening across all Indian banks:

Documents required for opening a current account

While you need only minimal paperwork for opening a savings account, current account opening requires a considerable amount of paperwork. Following are the materials that you have to keep handy to open such an account:
• PAN Card of the company
• Certificate of incorporation, and memorandum of association are some of the documents that the companies should have in place
• Proof of address of the company/HUF/firm
• Address proof and identification of all the partners or directors of the company
• A cheque for opening the current account
• Partnership deed, if the company in question is a partnership firm

Account holders will also have to comply with KYC norms and regulations, to open a current account.

Procedure for opening the account

After arranging all the essential materials, you will have to visit the bank and fill out the application form. You then have to submit the form and your records to the bank for verification. After verification, you can operate your current account.

You will also receive debit cards, chequebooks, net banking password and customer ID. You need to save a minimum balance of INR 5,000 in these accounts on a quarterly basis.

If you have a business, ensure that you open a current account to reap the maximum benefits and avail of quick financial transactions.