What is the Eligibility Criteria for Opening a Current Account?

Current account is a common term that is mostly used by business owners and business entities. These are a common type of bank accounts specifically opened to cater to business requirements to manage their day-to-day financial transactions and goals. Want to learn about the eligibility and the documents required for a current account? Read this blog post to get answers to all your questions.

Who Needs a Current Account? A current account is generally meant for businesses, MSMEs, NGOs, private companies, individuals (for business purposes), etc. These accounts help to reap the benefits of daily financial activities. These are a good way for businesses to carry out important financial transactions and keep track of each with enhanced perks.

You need a current account if you are one of these: • Non-government organisations or charitable trusts • Public sector undertakings • Religious organisations/government bodies/educational institutes • Private limited companies • Partnership/limited liability partnerships • Sole proprietorships • Co-operative society/Society/Trust • Individuals (for business purposes) • Freelancers • Others Benefits of Applying For a Current Account Here’s why having a current account can be beneficial for you: • Get Higher Transaction Limits With a current account, you can access higher financial transaction limits. These are ideal for businesses that need to make regular financial transactions. They ensure smooth operations by enabling continuous fund flow without usual transactional restrictions, which is helpful for maintaining liquidity and managing day-to-day business expenses efficiently.

• Cash Withdrawal Flexibility Current account holders can enjoy free cash withdrawals at the home branch and up to a specific fixed limit at non-home branches. This flexibility helps businesses access their funds conveniently and manage their cash flow effectively, regardless of their location.

• Complementary Demand Drafts Current Accounts offers complimentary demand drafts, which enable businesses to make secure and cost-effective payments to suppliers and vendors. This service helps in managing business payments efficiently, ensuring that transactions are completed without incurring additional costs.

• Convenient Way of Banking These accounts are designed for high transactional convenience. They facilitate the seamless movement of large sums of money, which is essential for businesses to manage their operational expenses, pay suppliers, and handle other financial obligations without delays.

• Overdraft Facility Overdraft allows you to withdraw funds over your account balance, providing immediate access to additional liquidity as needed. The interest is charged only on the amount utilised, not the total approved limit, making it a cost-effective solution with Overdraft facility provided by leading banks such as ICICI Bank.

Eligibility Criteria for Opening a Current Account Check out these eligibility criteria categories of opening a current account: - Resident Individual - Hindu Undivided Family (HUF) - Sole Proprietorship Firms - Partnership Firms - Limited Liability Partnership Firms - Private and Public Limited Companies Documents Required For a Current Account Here’s an overview of all the documents required for a current account: Customer Type Required Documents Individual Pan Aadhaar Business Proof Account opening cheque Proprietorship Proprietor PAN KYC of Proprietor Government issued Registration certificate of the firm FATCA Account opening cheque Company and LLP Entity PAN Constitution documents of the Firm KYC of Authorised Signatories and Beneficial Owners - PAN, Identity and Address Proof Board Resolution/LLP Letter & other required documents FATCA Account opening cheque Partnership Entity PAN Constitution documents of the Firm KYC documents of Partners/Beneficial Owners - PAN, Identity and Address Proof Partnership letter FATCA Account opening cheque Note: Original verification and other guidelines are applicable as per the current process.

How to Open a Current Account Online? Below are the steps to open a current account online: • Choose a leading bank of your choice, such as ICICI Bank.

• Go to their website and visit the Current Account section.

• Click on “Apply Now”.

• Enter all the needed details such as name, address, KYC details, etc.

• Click on “Submit”.

• Wait for bank’s process and approval.

• Or visit the branch for an offline procedure Conclusion Current accounts prove to be beneficial for a diverse range of entities, from startups to various MSMEs, and business setups like sole proprietorships, partnerships, and corporations. They offer higher transaction limits, overdraft facilities, and additional perks such as free demand drafts and comprehensive banking services.

While they demand a higher minimum balance and don't accrue interest, their practical benefits in managing day-to-day finances make them indispensable for businesses. Knowing the eligibility criteria and understanding the available features is key to choosing the current account that best suits your business requirements.

(Disclaimer : The above Press Release is provided by HT Syndication and PTI will not take any editorial responsibility of this content.). PTI PWR PWR