Will a Current Account Be Closed if It Has Zero Balance? |Kotak Mahindra Bank
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01 AUGUST, 2023

Over the past few years, the corporate sector in India has witnessed considerable transformations and is recognised as diverse and dynamic. With a rising target audience base, a magnetic entrepreneurial ecosystem and suitable policy terms, India has become the hub for various industries like manufacturing, healthcare, information technology, etc. Note that the corporate landscape has witnessed considerable changes due to the latest technologies' advent. 

To thrive in this growing business landscape, it is a must for every business to open a current account.

Documents Required for Opening a Current Account

You can provide any two of the below-listed current account documents as business proof – 

  • License/certificate issued by the municipal authorities as per Shop and Establishment Act 
  • Goods and Service Tax/Central State Tax/Value Added Tax certificate
  • Registration document issued by the professional tax/sales tax/service tax authorities
  • Importer Exporter Code (IEC) issued by the office of license/DGFT (directorate general of foreign trade)
  • TAN (Tax Information & Service) allotment letter issued by the NSDL in the firm’s name
  • Complete income tax return in the sole proprietor’s name where the income of the firm is shown
  • Utility bills such as landline telephone, water, and electricity bills.

The above is only an indicative list.

Address And Identity Proof of a Sole Proprietor

  • PAN card
  • Passport
  • Voter ID
  • Driving license
  • Aadhaar card

The above is only an indicative list.

Additional Read: Pay attention to the following things in your current account before the year ends

A Self-declaration on The Prescribed Format of The Bank

Kotak Mahindra Bank provides a wide range of current bank accounts to mitigate the unique banking needs of firms and businesses. A few of the important variants of the current account offered by Kotak are Astra 15 current account, Ace current account, Elite current account, ActivMoney current account, Startup premium current account, Global trade current account, etc. So, whether you are looking to cater to your existing banking requirements or aiming for future expansion, with Kotak's different types of current account, you can meet all your business needs with ease. 

However, to maintain your account and to make the most out of the benefits offered, you must maintain a current account minimum balance. The account balance requirement may differ based on the account type, usage, and location. If you fail to maintain the minimum balance requirement, you might have to bear a penalty for non-maintenance. 

What Happens If You Do Not Maintain Minimum Balance Requirement For a Prolonged Period?

Note that your current account will not be closed automatically until you submit a closure request. Non-maintenance of the minimum balance amount on your current account will continue levying non-maintenance charges. So, if you cannot maintain the current account minimum balance, ensure to close the account instead of keeping it active.

*For deposits above 7 days. T&C apply. For detailed terms and conditions, please visit www.kotak.com. ActivMoney (Auto Sweep) is a facility of automatically sweeping out funds above a pre-specified threshold from your Current Account to a Term Deposit (TD) Account for 180 days. In case of insufficient balance in the Current Account, the TD will be broken prematurely and the required amount will be transferred to the Current Account. Default Sweep Out and Sweep In for limit for an account variant are the minimum thresholds and one will not be able to opt for limits lower than these. Auto-Sweep out of funds above a pre-specified threshold from Current Account to Fixed Deposit will be for 180 days (For NRE accounts it will be for 1 year) and in multiples of Rs. 10,000/- The nomination registered for Current Account will apply for FDs created through ActivMoney. If the customer opts for ActivMoney in an account, standalone Fixed Deposits cannot be linked to that account. Terms and Conditions guiding the fixed deposit will be applicable to Fixed Deposits booked under ActivMoney. Bank may at its absolute discretion discontinue/suspend any of the services completely or partially with or without any notice to the customer. The rate mentioned is applicable for Fixed Deposits less than Rs. 2 Crores for a tenure of 180 days and is subject to change without prior notice. For ActivMoney (2 way sweep deposits), Regular Kotak Fixed Deposit rates will be applicable, basis the tenor of the deposit, for all customers including Senior Citizens/Bank Staff without any pre-payment penalty.

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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.