In India, Current Accounts are helpful for those people who do multiple transactions in a day. The customer has to maintain a higher minimum balance in the current account.
What is a Current Account?
Current accounts allow account holders to do unlimited transactions and cash deposits regularly—also no limitations on withdrawing money in a day. The account holder can avail of overdraft facilities up to agreed limits.
The current account is famous among Businessmen, Traders, Firms, Companies, and Institutions. There is no interest on current account deposits.
Features and Benefits of Current Accounts
The primary requirement of the business is a current account for multiple transactions. Banks offer a lot of facilities and offer to people in business. Check below features and benefits of current account:-
- Transactions:- Account holders can do multiple transactions in a day without limitations.
- Internet Banking:- Banks offer net banking to current accounts for transactions.
- Mobile Banking:- In the current account, Phone Banking allows customers to pay bills and transactions through Mobile Banking App.
- Interest Rate:- No interest rate on current account
- Withdraw:- No limitations on withdrawing cash.
- Overdraft:- Customer can avail overdraft facility that agreed while opening a current account.
- Minimum Balance:- In Current account, higher minimum balance required
Current Account Monthly Average Balance and Withdraw Limit and Free Deposit Limit
|Bank||Minimum Average(MAB) Balance||Limit of Withdraw||Limit of Free Deposit|
|ICICI Bank||INR 25,000||INR 50,000 per day||12 times the maintained MAB|
|HDFC bank||INR 75,000||INR 25,000 per day||10 times the maintained MAB|
|BOB||Quarterly Average Balance INR 2,500||INR 200,000 per day||INR 200,000 per day|
|Axis Bank||INR 10,000||INR 200,000 per day||INR 200,000|
|Kotak Bank||Average Quarterly Balance of INR 25,000||INR. 100,000||INR 7.5 lakh monthly|
|INR 100,000 per day||INR 200,000 per day|
|INR 100,000 per day||INR 500,000 per day|
FAQ (Frequently Asked Questions)
1. What is the use of a current account in India?
Ans:- Current account has made multiple transactions in a day, and this is primarily popular among businessmen, traders, entrepreneurs, companies, and institutions.
2. Why is a current account important?
Ans:- A businessman cannot make multiple transactions through a savings account.
3. What is the difference between a current and savings account in India?
Ans:- In a savings account, people earn interest on deposits, and in the current account, there is no interest on deposits. However, it is used for business transactions. Current accounts allow multiple transactions in a day, and however, savings accounts offer limited transactions.
4. Can I withdraw money from my current account?
Ans:- Yes, you can withdraw and deposit cash at any time.
5. Who can open a Current account?
Ans:- Customers who do multiple transactions in a day. This type of account can be opened by Individuals, Businessmen, Traders, Entrepreneurs, Companies, Associations, and Institutions.
6. Why is a current account needed?
Ans:- Because current accounts allow multiple transactions in a day.