Types of Current Accounts in India - A complete Guide
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  • Personal
  • Business
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  • Private Banking
  • Privy League
  • NRI Services
  • Investors
08 FEBRUARY, 2024

A current bank account is primarily for business owners, offering flexibility for substantial financial transactions. Unlike savings accounts, it doesn't impose limits on transaction size. Depending on your business's nature and transaction requirements, various types of current reports are available from major banks in India.

Understanding these options allows you to choose the one that best suits your needs. Simplify your banking experience by exploring the types of current accounts and gaining clarity on the available options.

Regular Current Account

Also known as the standard current account, this is the most basic type with certain mandatory norms such as a minimum balance requirement, which must be maintained monthly or quarterly and no interest on account balance. A regular current account offers standard benefits such as e-banking, RTGS/NEFT transactions, etc.

A regular current account can be opened in the name of any individual or business enterprise, irrespective of its size or nature. A bank may provide multiple variants of a regular current account to suit your business needs.

Start-up Current Account

As the name suggests, a start-up current account is a special type meant specifically for start-ups or new businesses. Since this type of account is aimed at helping start-ups, it comes with some leeway for maintaining a minimum balance for a certain predetermined period.

Moreover, some banks also offer additional services along with regular current account facilities to help the new businesses function and grow.

Additional Read - How to Open Current Account: A Complete Guide

Global-Trade Current Account

This type of current account is suitable for business houses involved in importing or exporting goods or services and dealing in foreign currencies. These accounts offer various facilities to the account holder(s) to help them conduct hassle-free financial transactions across the globe. Many banks also offer EEFC accounts in different currencies to aid in foreign transactions.

RERA Current Account

As per the Real Estate (Regulation and Development) Act of 2016, it is mandatory for companies that deal in real estate to open a RERA current account to protect property buyers. Withdrawals from such accounts are allowed only after the project's certification by the project engineer, architect, and Chartered Accountant.

Merchant Current Account

The Merchant Current Account by Kotak offers a suite of benefits for businesses. Enjoy free cash deposit and withdrawal allowances, NEFT/RTGS services through Kotak Net Banking, complimentary SMS alerts, and a Business Platinum Debit Card. Businesses can efficiently manage funds with features like Home Banking Service, free at-par chequebooks, and Kotak ActivMoney.

The account also provides an overdraft facility, competitive forex rates, and cash management services. Accessible 24/7 through various channels, this account caters to diverse business needs, making it a valuable choice among the current accounts in India.

ActivMoney Current Account

The ActivMoney Current Account by Kotak ensures financial efficiency with a robust Average Quarterly Balance of Rs. 5 Lakh. Through the ActivMoney facility, surplus funds automatically sweep into Fixed Deposits (FDs) once a specified limit is reached, offering potential returns of up to 7% interest. Enjoy flexibility with no penalties for premature FD withdrawals.

In contrast, fixed deposits are conveniently created for 180 days in multiples of Rs. 5,000. With free cash withdrawals at home and non-home branch locations and the added advantage of unlimited Demand Drafts, this account combines growth potential with accessible features for seamless financial management.

Read also: What Is POS

Frequently Asked Questions

  • How many types of current accounts?

When answering the question, “How many types of current accounts” are there? Well, multiple types of current accounts cater to diverse business needs, including basic, premium, and specialised accounts. The variations ensure businesses can choose an account aligning with their financial requirements.

  • Can I have multiple current accounts with the same bank?

Yes, many banks allow customers to hold multiple current accounts simultaneously. This flexibility enables businesses to diversify their financial tools and optimise account features to suit different operational needs.

  • Do joint account holders share the same overdraft facility?

Generally, joint account holders share the same overdraft facility. However, it's essential to review the terms of the specific account and banking institution to understand the nuances of the shared overdraft arrangement.

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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.