20 JULY, 2023

Banks generally provide two kinds of accounts, a Current Account and a Savings Account, to park your funds and make regular transactions with ease. While a Savings Bank Account for many is the initial port of contact for all banking needs, a Current Account perhaps may appear to be a new concept for some. However, you might have come across this term at the ATM when asked to select the bank account type for fund withdrawal. So, what is a Current Account?

Let us check out all details linked with the Current Account, along with the benefits and crucial documents required for opening current account.

What is a Current Account?

Current Accounts can be opened by a sole proprietorship, private/public limited companies, insurance firms/mutual funds, educational institutes, stock and share brokers etc. Also known as a financial account, a Current Account is a kind of deposit account to conduct a considerably higher number of business transactions and withdrawals daily. Owing to the provision of this facility, many banks usually offer zero interest rates on such accounts.  

Additional Read - Things to Consider Before Opening a Current Account

Crucial features of a Current Account

Current Account is a kind of deposit account held with the bank to manage and conduct big-ticket business transactions. So, in case you own a company, a Current Account is the correct account type to opt for. There are various Current Account benefits that make this account distinctly unique:

  • Unlimited transactions and withdrawals per day.
  • Free demand draft, cheque payments and collection, multi-city chequebooks, cash deposit and withdrawal at a home branch and up to a preset limit at a non-home branch.
  • Availability of home banking services like on-call cheque or cash pickup and delivery. However, this service may be free up to a set limit, and thereafter, standard charges may apply.
  • Free RTGS and NEFT through net banking.
  • Free access to all domestic ATMs with a Business Debit Card linked to a Current Account
  • Alerts via SMS and email.
  • Better forex rate and trade services.
  • Dedicated relationship manager.
  • Faster outstation cheque collection.
  • Overdraft facility – up to a present limit to meet your business requirements.

Latest Comments

Leave a Comment

200 Characters

Read Next


Empowering Women Entrepreneurs: Here's How a Current Account Can Help


Discovering the Lesser-Known Features of Your Current Account


What is Digital Current Account? Definition, Benefits

Load More

Disclaimer: This Article is for information purposes only. The views expressed in this Article do not necessarily constitute the views of Kotak Mahindra Bank Ltd. (“Bank”) or its employees. The Bank makes no warranty of any kind with respect to the completeness or accuracy of the material and articles contained in this Article. The information contained in this Article is sourced from empaneled external experts for the benefit of the customers and it does not constitute legal advice from the Bank. The Bank, its directors, employees and the contributors shall not be responsible or liable for any damage or loss resulting from or arising due to reliance on or use of any information contained herein. Tax laws are subject to amendment from time to time. The above information is for general understanding and reference. This is not legal advice or tax advice, and users are advised to consult their tax advisors before making any decision or taking any action.