Opening a current account is an essential part of managing your finances. It is a type of bank account that is suitable for individuals, businesses, and organizations. A current account is designed to help you manage your day-to-day transactions efficiently. If you are planning to open a current account in India, here are some things you need to know:
Eligibility criteria
To open a current account in India, you need to be a resident of India or a non-resident Indian (NRI). You also need to be at least 18 years of age. The eligibility criteria may vary from bank to bank, so it’s best to check with your preferred bank before applying.
Documentation
You need to submit certain documents to open a current account. These documents include a government-issued identity proof (such as a PAN card or Aadhaar card), address proof (such as a utility bill), and passport-size photographs. In the case of a business or organization, you also need to submit registration documents, tax identification number, and proof of address.
Minimum balance requirement
Most banks in India require a minimum balance to be maintained in a current account. The amount may vary depending on the bank and the type of account you choose. If you fail to maintain the minimum balance, you may be charged a penalty fee.
Account types
Banks in India offer various types of current accounts, such as individual accounts, joint accounts, partnership accounts, and corporate accounts. Each type of account has different features and benefits, so it’s essential to choose the one that suits your needs.
Interest rate
Unlike a savings account, a current account does not earn interest on the balance. However, some banks offer a certain percentage of interest on the balance maintained above a particular limit. It’s best to compare the interest rates offered by different banks before opening a current account.
Transaction charges
Banks charge a fee for various transactions carried out through a current account, such as cheque book issuance, ATM withdrawals, online transfers, and more. The charges may vary from bank to bank, so it’s essential to check the transaction charges before opening a current account.
Overdraft facility
Most banks offer an overdraft facility on current accounts. An overdraft allows you to withdraw more than the available balance in your account, up to a certain limit. However, you need to pay interest on the overdraft amount borrowed.
Online banking
In today’s digital era, most banks offer online banking facilities to their customers. Online banking allows you to access your account anytime and anywhere, check your account balance, view transaction history, transfer funds, and more.
Mobile banking
Mobile banking is a convenient way to manage your current account on the go. With mobile banking, you can access your account using your smartphone and carry out various transactions, such as bill payments, fund transfers, and more.
Additional services
Banks in India offer various additional services to their current account holders, such as a free cheque book, SMS alerts, email statements, and more. It’s best to check with your bank to know about the additional services they offer.
In conclusion, current account opening is an essential step towards managing your finances efficiently. By choosing the right type of account and bank, you can enjoy various benefits and services that come with a current account. Make sure to compare the features and benefits offered by different banks before making a final decision.
