How to Open a Current Account?
A Current Account is a bank account used for business. It is mostly used by organisations, professionals, societies, trusts, clubs, etc. While you may know how banks operate different accounts, it is essential to know that most banks provide excellent flexibility and convenience to Current Account holders, particularly, when it comes to operating the account. And one of the most important features is that there are no restrictions on cash deposits or cash withdrawals. Another essential feature is that Current Account holders get a certain number of free cheques to use every month, unlike savings account holders who are restricted to a certain number of cheques each year and need to pay an additional charge for a new chequebook.
Also, did you know that Current Accounts can be tailored to meet business requirements? Yes. Unlike a savings account, a Current Account can be personalised depending on the business needs. However, the only criteria for a Current Account is the average minimum balance which has to be maintained every quarter.
In the recent times, most banks have implemented core banking solutions, which means that an account can be operated from any bank branch. The Current Account opening procedure has also become very simple. Most banks have shared a list of documents online that they would require, along with the procedure of how to open a Current Account online.
How to open a Current Account?
To open a Current Account, all you need to do is:
- Check your eligibility criteria for opening a Current Account. Most banks have very liberal eligibility criteria for opening a Current Account. NRIs can open a Current Account out of the proceeds from an NRO (Non-Resident Ordinary)/NRE (Non-ResidentRupee)/FCNR (Foreign Currency Non-Resident) account only. This amount will not be available for repatriation outside India.
- Download the account opening form from the bank’s website. Alternatively, this form will also be available at any bank branch that is nearest to you.
- Fill up the opening form with all the relevant and necessary details.
- Collect the list of documents that will be required by the bank. If you already are a customer of the bank and are complying with KYC regulations, you may have a different list of documents that will be needed by the bank. Therefore, it is essential to confirm the list.
Some of the documents required for opening a Current Account are:
- Proof of the existence of the business
- Proof of address of the business
- KYC of the proprietor
- Tax registration documents
- Licences from relevant authorities.
You can read more about the documents required for Current Account here.
- Once the account opening form is filled, attach the necessary documents and submit the same to the bank.
- The bank will get back to you once the account has been opened.
With HDFC Bank, you can now easily apply for a Current Account online. All you need to do is fill up a form with your personal details, business details and contact details. A customer representative from the bank will contact you for further particulars and will collect the documents that they require to open your Current Account.
Looking to apply for a Current Account? Click here to get started!
* 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.