To help you handle your finances systematically, banks provide multiple types of accounts, amongst which current accounts and savings accounts are the most common ones. Even though everyone is quite familiar with the importance of savings accounts, the current account also stands for the same importance. 

For those willing to open their first current account, the process may be challenging due to different reasons. Firstly, you must be clear about your banking requirements, learn about the different benefits and offerings of different banks, and then proceed with opening your current account.

Before you dive into the process of opening a current account, you must learn what a current account is and how it works.

Understanding current account

The current account is an account that anyone can own; however, it is used mainly by businesses. Individuals, public limited companies, proprietorships, partnership firms, private limited companies and trusts can open a current account.

Perks of a current account

Business owners or other individuals prefer a and open one to manage their regular financial transactions, including withdrawals and deposits. 

1. The account holders get the privilege to access the funds in their current account whenever they require without any restrictions. 

2. Many banks offer an overdraft option, allowing account holders to withdraw more than their account balance. This ensures smooth cash flow during financial crunches.

3. They often allow withdrawals and deposits across multiple branches, making them ideal for businesses with operations in different locations.

4. Unlike savings accounts, there are no restrictions on the number or value of transactions, making it suitable for businesses with high transaction volumes.

Opening a current account online: A step-by-step guide

When willing to open a current account online, follow the steps given below:

Align with the eligibility criteria of the bank

The first and foremost step towards opening a current account in any bank is to fulfil the eligibility criteria. As there are multiple types of current accounts available for different individuals, the eligibility criteria put forward for each account also vary. The features of certain current accounts are created concerning multiple types of entities. 

There are many current accounts which can only be accessed by specific groups, while others are created for midsized or large firms. Hence, it is advised to first check and align with the eligibility criteria before applying for a current account.

Collect the major documents

Once you have finalised the bank and the type of current account you are willing to open, the next crucial step is to collect your major opening. The documents you need to open a current account in any bank depend on the type and nature of your business. The documents asked by the bank might vary in regard to the complexity of the structure of your company. 

Typically, you’ll be required to submit the following documents along with the application form when opening a current account:

1. Proof of identity and address: Passport, Driving License, Voter ID card Aadhaar card, PAN card

2. CST/VAT/ GST certificate

3. ITR

4. Partnership deeds (in case of partnership firms)

5. Business-related papers, and more

Complete the current account application process

Once you are done collecting the documents needed to open a current account online, you can begin the application process. To complete the application process, you must connect with the branch representatives to get assistance, or you can also visit the nearest bank branch personally. 

Nowadays, almost every bank offers you the facility to open a current account online from the comfort of your home. You can do so by either visiting their official website or downloading their application on your smartphone. 

You can fill out the current account application form online and submit all the needed documents digitally. The bank then reviews all your information and verifies the same. It is crucial to acknowledge that all the details you submit to the bank must be verifiable and true. Once the bank approves all your documents and your current account application, you will receive a new account number and other account credentials.

Initiate your first deposit

After the application process is completed, your new account will be activated once you make your first deposit. The first deposit you make must be made either in cash, cheque, or online. Your current account is now ready to use.

Receive your kit

After your current account has been activated, your bank provides you with basic account tools, such as a debit card, chequebook, ATM card, and online banking details, including the PIN and user ID of the account holder.

Summing up

It is important to understand all the terms and agreements, services, features, benefits, and charges that come with your chosen current account and bank. Once you carefully go through all these factors, ensure you make a wise decision according to your requirements. While current accounts do not offer interest on deposits, they provide unmatched liquidity and convenience. Select wisely to empower your financial journey.

FAQs on current account

Q1. Can individuals without any business open a current account?

Yes, all organisations and individuals holding the needed KYC documents and aligning with the eligibility criteria set forward by the bank can open their current accounts.

Q2. Is GST compulsory to open a current account?

No, GST is not always compulsory when opening a current account.

Q3. Can I have more than one current account?

Yes, it is possible to own more than one current account at any given time.

Q4. What are the features of a current account?

A current account comes with the following features: Receive payments, transfer money to pay bills and withdraw money without any restrictions, among others.

Q5. Can I open a zero balance current account?

Yes, some banks offer the service to open a zero balance current account, provided you fulfil the eligibility criteria.