A  Guide On Who Can Open a Current Account

A Guide On Who Can Open a Current Account

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Who Can Open A Current Account

In India, many small businessmen run a business and small shops. many small businessmen run a grocery shop, pan shops, and other small or medium businesses. All of this have a question in mind who can open a account this blog for those person this blog give complete information on A guide on who can open a current account. 

Day to day activity shop owner need money so they withdraw money and deposit money and transfer to the third party. so they need an account in the bank but the small account has a transaction limit that why  they need to open a current account. 

Many businessmen have a question in mind who can open a current account so in this blog, we guide on who can open a current account.

Who can open acurrent account

following is a list who Can open a account

  • Small businessman
  • Shop ower who have a shop in any categories
  • Small company and medium or large company
  • Any institution who run for-profit or nonprofit
  • Society, club, banks or small Pvt bank,sahakatri bank, school and college institution
  • Self-employed person
  • Govt department
  • Women or mal self-help group
  • Partnership firm

Meaning Of A Current Account

Current account means an account in which the account holder not get interested in balance, in this account not have a limit on the transaction, and account opening purpose is a business transaction.

The current account has unlimited transactions, the account holder can deposit a large amount or a small amount many times in a single day and withdraw money on regular basis. in this account are have heavy transaction as compared to the saving accounts. the current account has more features than the savings account.

Current account can be opened in the commercial and public sector,sahakari banks .zero balance current account offered by some banks in India. 

Many companies have larges transactions for these companies many banks give extra features.like zero balance account, minimum charges on RTGS NEFT or transaction fee, minimum cash deposit fee, and cash withdrawal fee.

Features Of Current Account

  • The large transaction allowed in the account
  • Not limits on cash deposit transaction with fee above the limit on transaction
  • Cash deposit in any city
  • Cheque and demand draft, pay order allowed for making payment of business parties
  • Overdraft allowed depending on the customer to customer basis
  • Multilocation cash deposit and cash withdrawal facilities
  • Internet banking and mobile banking facilities are allowed
  • In a current account accountholder not get interested in the balance.
  • The penalty levied on account .If the account holder does not maintain a minimum balance
  • This account opened for especially business transactions.
  • This account is the opposite of a saving account
  • The account holder can track their transaction on a regular basis
  • Good track record customer get bank guarantee from a bank

Documents Required For a Current Account

Sole Proprietor

1. Identity proof – addhar card/pan card/election card/voting card/passport/ any one of above 

2. Resident proff – addhar card/election card/voting card/passport/driving licence.

3.Address proof of sole proprietorship and identity proof of sole proprietorship issued by a government department, registration department, license department.

4. Account opening filled form, two passport-sized photo

5.Rubber stamp of a sole proprietorship

 

Individual – 

1. Identity proof- Adhar card, pan card, voting card, passport, driving license any of these documents.

2. Residential proof – addhhar card, voting card, driving license, any of these document

3. account opening filled form and two passport size photo

Partnership

1.identity proof – identity proof of a partner who has a partnership firm 

2.residential proof – residential proof of a partner who has a partnership firm

3.partnership deed

4.letter of partnership firm

5.license of the firm is given by the government department, authority department.

6. Firm address proof.

7. list of a partner who has more than 15 % share in the firm.

8. Passport size photograph 

Private company/public company  – 
 
4.Updated list of directors
5. Address proof of company or organization
6. Identity proof and address proof of beneficiary owners who have more than 25 % shares
7.Kyc of person who operates the account
 
Trust, society, association, and club – 
 
1.bye lows for society,association,club
2. trust deed of public or private trust
3. Gazette notifications if the trust is government, semi-government  or quasi-government
4. list of all member or manager who manages trust or association
5. address proof of association, club, or trust.
6. proof of identity – Registration Certificate issued by Registrar in the case of societies.
Acknowledgment certificate if this organization is educational institutions.
7. address proof and identity proof  of the member who runs the account 

Advantages Of Current Account

1. unlimited transaction
2. easy tracking every transaction
3. if the customer track record is good then overdraft get easily
4. net banking and mobile banking
5. easily get a bank guarantee
6. value-added service for current account customer
7. multi-city cash deposit and cash withdraw service
8. fewer charges on dd, payslip
9. transfer fund facilities all over India

Difference Between The Current Account And Saving Account

1.purpose –
current account – opened for business purpose
saving account – opened for saving purpose

2.transaction limit –
current account – current account has unlimited transactions
saving account – the saving account has limited transaction 

3.interest rate –
current account – current account does not get an interest rate
saving account – saving account get 3 to 6 % interest rate

4.deposit limit –
current account – current account has no limit for cash deposit and withdrawal money
saving account – the saving account has limitation over the deposit and withdraw

5.who can open –
currant account – company, businessman, trust, society, association all of these open current account
saving account – student,individual,housewife,pensioners.

6.balance to be maintain –
current account – current account has to maintain balance as per banks, if the account holder not maintains balance then the bank levy heavy penalty.
saving account – saving account holder has to maintain a low balance as compared to the current account, some savings account is zero balance account.

With the help of  A guide on who can open a current account everyone can easily open a current account .

Manoj

I am a banker and personal finance manager. I have more than 7 years of experience in the banking industry.

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