Businessman in India makes a large number of transactions using banks, during the course of their business. They may deposit or withdraw money a number of times a day or a month. They need to open a current account. Businessmen find current accounts very convenient to receive payments from customers. No interest is paid on the current account. However lately some banks offer interest on current accounts, to lure customers to open current accounts with them.
Why take up Current Accounts?
You can withdraw money, without any limit, if you are a businessman. Your business transactions are executed swiftly.
The Overdraft Benefit
If your business I facing a shortfall of money, use the overdraft facility. You can overdraw from your account, to meet this need.
Proves Credit Worthiness
lenders willingly lend your money, if you have a current account. This serves as a guarantee that you have money to run the business.
You can use a zero balance current account, when you don’t need to maintain a minimum balance. You make optimum use of your money.
Eligibility for Current Account
If you are a resident of India you can open a current account. Usually opened by businessmen who do not get interest on these accounts. You need to maintain higher balance than a savings bank account. You have to pay a penalty if you do not maintain the minimum balance.
How to apply
- You require an introduction from a person already holding an account/current account at the bank.
- You need to have identity and address proof as part of the KYC (Know Your Customer), procedure.
- To open a current account you have to make a deposit between INR 5000-INR 25000.