The current account is considered a financial account, a deposit account that helps you to carry out several financial transactions in a day without any limits.
Current accounts are mainly used by businesses, trusts, enterprises, private and public companies, etc. It permits customers to deposit and withdraw money at any time without giving notice. The current account is best if you want to make payments to creditors by cheque. If you also want to open your current account for business, you should know about eligibility criteria and requirements first before applying.
Read the post to know about the eligibility criteria and requirements you have to meet to become qualified for a current account.
Eligibility criteria to open your current account
All individuals have to complete their KYC documentation to become eligible to open their current accounts. People can easily reach a bank branch, or visit the online website, complete the necessary documentation, and apply for a current account.
Current account holders need to maintain a minimum monthly average balance in their accounts. Otherwise, they have to face a penalty. Here are the eligibility criteria that decide whether you are eligible to open your business current account or not
- Limited companies
- Partnership firms
- Sole prop
- Administrators, executors, and liquidators
- Clubs, associates, and societies
Requirements of current account
Here is the complete list of KYC documents, including name, identity proof, address proof, etc., that you have to submit to successfully done the online current account opening
- PAN card
- Address proof and identity proof of all partners and directors
- A cheque to open your current account
- MOA, AOA, and incorporation certificate
- Partnership deed
- Sale tax or service tax authorities tax
How do make the right choice of current account for you
The main purpose of opening the current account is to ensure the smoothflow of business transactions. It permits you to manage bulk transactions and handle big payments conveniently.
But there are some factors you need to consider to make the right choice for your current account.
1. Minimum balance
A minimum balance is an important requirement for a user to meet to save their current account from lapsing or deactivating. So before applying for a current account from a specific bank, you should check how much minimum balance you have to maintain in your current.
2. Overdraft costs, charges, and fee
The charges differ from one account to other. Before applying for a current account, the users must consider various important parameters like one of them, demand draft charges. Additionally, you should investigate the bank’s overdraft limit and ability to set up an overdraft facility with a predetermined limit.
3. Cash deposit limit
The cash deposit limit on current accounts differs from one bank to another. Before opening your current account, you should check whether the bank possesses a cash deposit limit or not.
Hope you know the eligibility criteria and documents required to open your current account successfully. Ensure to keep the above things also in your mind to make the right choice for your current account.