Important Factors You Must Consider Before Opening a Current Account

A current account is a banking account widely used by businesses in India. A current account is popular as it allows withdrawing funds and writing cheques against the balance maintained, with no cap on the number of transactions. Leading banks even offer personalized current accounts with added benefits. With online banking now a common feature among banks, one can even open a current account online.

Important Factors You Must Consider Before Opening a Current Account

  • Transaction fees

A current account has no limit on the number of transactions. However, the bank levies a fee for transactions that exceed the pre-set limit. A lower fee entails fewer charges and is beneficial for the account holder.

  • Current Account Minimum Balance

Current accounts require account holders to maintain a minimum balance. This is done so that account holders keep track of their high volume of transactions and maintain it appropriately.

  • Overdraft Facility

Banks give most Current Account holders the provision of overdraft facilities based on their credibility. This is mostly temporary funding made available to current account holders to manage their shortfall in funds at a given point in time.

  • Interest Rates

A current account does not bear interest. However, being a liquid account, cash is easily made available to the account holder, making it a very convenient option for business owners.

  • Customized and Core services

Most banks provide add-on services to their premium customers, which include cheque pick-up, cash deposit, after-hours banking access, credit cards, demand orders, and so on. Most banks offer core-banking services like internet/mobile banking, IT/ERP Services, ERP Services, cash deposits via multiple locations, and such related facilities, so compare between bank facilities before opening a current account.

  • Online Banking

One can open current account online, enabling digital payments, including online NEFT/RTGS/IMPS, apart from key digital banking services like mobile banking/net banking. Some of these services are charged, but it differs from bank to bank. This would ensure seamless and hassle-free current account transactions.

  • Bank Network

Choose a bank with a large branch network, as this would help the business entity to carry on their transactions smoothly across several locations.

Current Account Opening Documents


Documents differ based on the business/entity. The indicative list of common documents required are:


  • Business/entity registration certificate/license
  • Registration certificate issued by Sales Tax/Service Tax/Professional Tax authorities
  • ID and Address Proof like PAN Card, Passport, Aadhaar Card
  • TAN Allotment Letter issued by NSDL for the business/entity
  • Complete income tax return
  • Utility bills like telephone, electricity

Procedure for Opening Current Account


The above indicative list of current account opening documents as deemed necessary is to be submitted to the chosen bank. The same can be done by either visiting the bank branch or visiting the bank’s official website and providing a scanned copy of the documents online. The bank would require an application form to be filled and duly signed. If needed, a current account initial deposit may be required based on the current account type chosen and the type of business entity.


A current account is a very convenient and easy way of operating business accounts. The whole banking experience has now undergone a paradigm shift, with most banks offering online current accounts, which can be done anywhere, anytime.