If you need to transact frequently or make bulk payments as a trader, small or medium business owner, corporate, start-up chief or a farmer, you need a Current Account. These are zero-interest bearing accounts with generous allowances on the number of transactions you make every day. They also come with an instant overdraft facility. In this article, we discuss the kind of Current Account opening charges you need to pay to open and operate a regular Current Account.
Based on a range of features, Current Accounts are curated for different types of customers like farmers, corporates, owners of small and medium enterprises or professionals and NRIs, among others. Banks offer different variants of Current Accounts, sometimes called package accounts. The Current Account opening charges may vary from one type of account to another, based on their features.
You need to maintain a minimum balance to operate a Current Account. Depending on the type of Current Account, some charges may be waived off for account holders. These waivers vary from bank to bank and even within a bank, from product to product.
1. Minimum account balance (MAB) or average quarterly balance
Banks require Current Account holders to maintain a minimum amount as account balance on average within a quarter or month. For example, the minimum account balance for a regular Current Account with HDFC Bank is Rs 10,000. But, the MAB can vary between the Current Account products.
The way it is calculated is explained here:
For example, a bank requires you to maintain an MAB on a quarterly basis. It is the average of daily closing balances of each day spread over a period of three months.
2. Non-maintenance charges
You may have to pay Current Account charges for non-maintenance of the average minimum account balance. For regular Current Accounts with HDFC Bank, the non-maintenance charge is about Rs1,500 every quarter.
3. Charges for Current Account facilities
Banks charge nominal amounts for various Current Account facilities like request for duplicate account statements, remittance as demand drafts, pay orders, or their cancellations, NEFT and RTGS transactions (they are free if you make these payments through netbanking), among others.
4. Bulk transaction charges
There is a certain limit on the number of free bulk transactions you can make in a month based on your package account. Beyond that, you are charged a very nominal sum per transaction.
5. Charges for cheque collection and cheque bouncing
Although most payments can be made digitally today, you may be required to make certain payments through cheques. For some Current Accounts, you may have to pay a minimal amount for outstation cheques at bank branches, or cheque collections at the correspondent bank locations. If cheques drawn on the bank bounce due to insufficient funds or unpaid return, you will have to pay a nominal fee. If cheques bounce due to technical reasons, you do not have to pay anything. You also have to shell out token amounts for stopping payments.
6. Miscellaneous charges
The other miscellaneous Current Account bank charges that you may have to furnish on a regular Current Account include balance enquiries, balance confirmation certificate, interest certificates, identity verification, cheque status, PIN/TIN regeneration, account closure, among others.
Looking to apply for a Current Account ? Click here to get started
Read more on how to open a Current Account here.
*Terms and conditions apply. The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances.
