It’s a non-interest bearing deposit account with minimum balance requirements and a stipulated monthly average balance. Here are some of the common types current accounts offered by banks: You should have a clear understanding of the nature of transactions you wish to carry out after opening a current account. Provides internet banking and mobile banking facilitiesīanks offer different types of current accounts to suit the differential needs of their customers.Enables businessmen to make direct payments using cheques, demand drafts, or pay orders.No limit on deposits in the home branch.Allows for prompt business transactions.Monthly Average Balance (MAB) Requirement on Basic Current Account of Different Banks Current accounts charge interests on short-term funds the account holder has borrowed from the bank.Nowadays, some banks offer interest rates on current accounts as well.The prime objective of current account is to facilitate smooth transactions for businesses.For a single business, there cannot be multiple current accounts.Just like savings account, KYC guidelines are to be followed even for current accounts.Non-maintenance of the minimum balance can attract penalty charges.No restriction on the number of transactions in a day. A current account can be operated by individuals, proprietary concerns, public and private companies, associations, trusts, etc.It is designed to facilitate frequent transactions – transfer funds, receive cheques, cash, etc.Compared to savings account, a current account requires a higher minimum balance.A current account allows transactions beyond the scope of a savings account.Listed below are some of the basic features of a current bank account: These days, banks offer a number of attractive offers and benefits on current accounts to match the diversified needs of businesses. A current bank account is one of the primary requirements for starting a business.
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