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How Many Current Accounts Can a Business or Individual Hold
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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.
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If you’re a business gearing up for expansion, the groundwork is likely in place. The investment is sorted, the new branch is ready to go and now you’re looking at how to handle transactions smoothly. You want to open a Current Account for this branch—but before you proceed, it’s worth taking a closer look.
For businesses operating across multiple locations or managing different functions, having more than one Current Account might seem necessary. But banking norms and regulatory guidelines shape how this actually works. In this blog, we’ll unpack what businesses need to know about holding multiple Current Accounts—and how to approach it without running into roadblocks.
Can a business have more than one Current Account?
Yes, a business can have more than one Current Account. In many cases, it actually makes sense. For businesses, especially those with multiple branches, different business verticals or varied payment cycles, separate Current Accounts can help organise cash flow, vendor payments and operational budgeting more effectively. It allows each unit or function to run its transactions independently while still staying aligned with the overall financial structure.
For individuals, the reasons are usually different but still valid. Someone managing multiple income sources, like consulting on the side or running a small business alongside a job, might prefer to keep those transactions separate. Having more than one Current Account helps with clarity, ease of tracking and better financial control.
Things to keep in mind when opening another Current Account
Before you go ahead and open a second or third Current Account, it’s important to evaluate a few practical aspects to make sure it fits your purpose:
1. Type of account
Not all Current Accounts serve the same function. Some are built for startups, some for traders and others for large enterprises. Choose an account type that aligns with the branch or vertical’s financial activity. It helps to assess the transaction volume, cash handling requirements and service features offered under each variant.
2. Minimum balance requirement
Every Current Account comes with a monthly average balance requirement. If you’re opening an additional account, consider whether your cash flow can comfortably meet the balance criteria for both. Falling short may result in unnecessary penalties that add up over time.
3. Interest on idle funds
Current Accounts can offer interest on surplus balances through linked features like auto-sweep into Fixed Deposits. This helps idle funds earn returns while staying accessible when needed. Check if your account provides such options to make better use of excess cash.
4. Overdraft facility
Check if the account offers an overdraft option and under what terms. This becomes especially useful if one business unit needs short-term liquidity. Also, review interest rates and repayment timelines to avoid unexpected financial stress.
5. Digital access and online convenience
Ensure you can access your Current Account online. From real-time fund transfers to downloadable statements and service requests, digital ease makes it simpler to manage multiple accounts without needing to physically visit the Bank.
Why choose Kotak Current Account?
There’s no one-size-fits-all when it comes to managing business transactions—and we understand that. Whether scaling up, diversifying or simply setting up a separate account for branch-level transactions, there's a Current Account for your specific requirement.
Elite Current Account offered by Kotak Mahindra Bank, in particular, works well as a second Current Account for established businesses. It combines the benefits of a premier account with practical features that support everyday operations without overwhelming you with high maintenance requirements.
Key highlights of the Elite Current Account
The Elite Current Account lets you maintain an average quarterly balance of Rs. 1 Lakh. This gives you access to premium services without locking away excessive working capital. It strikes the right balance between flexibility and benefit.
The Elite Current Account supports smooth day-to-day operations with bulk payment capability, a higher free cash deposit limit and free NEFT, RTGS and IMPS transactions. These features are valuable for businesses that deal with high volumes of payments or need flexibility in managing cash flows without incurring extra charges.
The account comes with Kotak ActivMoney, which converts unused balances into term deposits automatically. It’s a smart way to earn returns on idle funds while still keeping your money easily accessible. There’s no manual process required and the system takes care of the conversions for you.
Need urgent funds for a business requirement? This account gives you access to an unsecured overdraft facility. It’s designed to meet short-term needs without needing collateral, offering a financial cushion when timing matters most.
Check out the Current Account documents required if this option interests you and seems fit for your business.
Wrapping up
Choosing Kotak Mahindra Bank as your business banking partner means getting more than just an account—you get tailored solutions, digital convenience and reliable support for every stage of growth. Whether you need a second Current Account or a specialised one for a new business vertical, Kotak offers options that are both flexible and feature-rich.
With benefits like overdraft access, idle fund optimisation and seamless online banking, managing your operations becomes more efficient. If you are ready to streamline transactions and scale with confidence, apply for a Current Account with Kotak Mahindra Bank and experience banking that grows with your business.
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