Current Accounts

Current Accounts in banks are usually maintained by all commercial, institutional and business organizations. Individuals maintain current accounts to avail overdraft facility from banks against some security or otherwise.

Salient features of Current Accounts

Eligibility

Individuals, partnership firms, private and public limited companies, HUFs/ specified associations, societies, trusts etc.

Requirements

Individuals : The requirements for opening of accounts by individuals are the same as listed under Savings Bank Accounts
  • Trusts :
    i. Copy of Trust Deed
    ii. Copy of minutes of the meeting for opening, conduct and operation of the bank account of the trust.
    iii. Any other relevant document(s) required by the bank.

    Societies :
    i. Copy of By-laws of the society.
    ii. Copy of minutes of the meeting for opening, conduct and operation of the bank account of the society.
    iii. Any other relevant document(s) required by the bank.
  • Partnership Firms :
    i. Copy of Partnership Deed
    ii. Any other relevant document(s) required by the bank.
  • Companies :
    i. Certificate of Incorporation
    ii. Certificate of Commencement of Business
    iii. Copy of Board Resolution for opening, conduct and operation of the bank account of the company.
    iv. Any other relevant document(s) required by the bank.

Minimum amount

Rs. 500/- to Rs. 10,000/-. The minimum amount varies from bank to bank. The amount also varies in a bank on the location of the branch and type of branch. Not maintaining the minimum balance invites penalties and may also lead to closure of the account by bank.

Maximum amount

No Maximum limit

Rate of Interest

No interest is paid on Current Accounts.

Nomination facility

Available

Transferability

Account can be transferred from one branch to another.

Tax benefits

Not Available

Other features

  • Overdraft facility can be availed in Current Accounts. Current Accounts are maintained by individuals mainly for availing overdraft facility.
  • Statements of accounts are issued by banks at monthly or more frequent intervals.
  • Local and outstation cheques are accepted for realization. Service charges are recovered for cheques returned unpaid.
  • Amount can be withdrawn in cash from banks by cheque or from ATMs.
  • Immediate credit is usually provided for outstation collections up to Rs 20000/- for accounts that are satisfactorily conducted.
  • Banks pay interest for delays in collection of outstation cheques.
  • No operation in the account for 6 / 12 months, makes an account 'Dormant'/'Inoperative'.
  • Banks offer various other facilities/services with these accounts like ATM cards, ATM-cum-Debit cards, Credit cards, Online or Internet banking etc.
  • Standing instructions are accepted by banks in these accounts, subject to payment of stipulated charges.
  • Service charges and rules vary from bank to bank.
  • Payment of cheques can be stopped by the holder(s) of the account.

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The visitors may visit the web site of Income Tax Department for resolving their doubts or for clarifications.