Checklist of documents required to open a current account in India

Be it a current or savings bank account you are willing to open, the eligibility criteria and the process vary from one bank to the other. Amongst all the types of bank accounts offered by the bank, the current account is the most suitable one for business owners and other individuals as it helps them in fulfilling different financial transactions efficiently. A current account acts as a deposit account, helping individuals manage their regular transactions. Moreover, it allows them to withdraw and deposit funds without any restrictions or additional charges.

To open current account online, you must follow the eligibility criteria of the chosen bank, along with all the crucial documents that the bank asks you to submit to open your account.

What is a current account?

A current account, which is also called a standard current account, is a basic account type that comes with specific mandatory terms and receives no interest on your account balance. It also comes with basic benefits, such as RTSG/NEFT transactions and E-banking.

• Current account holders can access their funds anytime without limits. It adds convenience for managing day-to-day business operations or personal transactions.
• Many banks offer an overdraft option. This helps account holders to withdraw more than their account balance and thereby have smooth cash flow during financial challenges.
• Current accounts come with features like cheque books, demand drafts, and online payment options for seamless transactions.
• They often allow withdrawal and deposit across multiple branches. This makes them ideal for business enterprises that have operations in more than one location.
• In comparison to savings accounts, no restrictions exist on the number or value of transactions. Therefore, it is suitable for business enterprises with high volumes of transactions.

Anyone can open current account online in the name of their business enterprise or as an individual.

Documents needed to open a current account

In India, almost every bank offers you the service to open a type of current account that you need. However, different bank accounts ask for different documents, but some of the basic documents required for current account opening in India are as follows:

Identity proof: As proof of your identity, the bank needs you to submit any of the following documents when opening a current account.

• Passport
• Aadhaar Card
• Voter ID Card
• PAN Card
• Driving License

Address proof: before approving your current account application form, the bank needs proof of your address, for which you must submit the following documents:

• Aadhaar Card
• Voter ID Card
• Recent Utility Bills (electricity, gas. etc.)
• Bank Statement or Passbook with address
• Rental Agreement (if the business operates from a rented property)

Business proof: if an individual wants to open a current account in the name of their business enterprise, they must submit the following documents as proof of their business.

• GST Registration Certificate
• Business Registration Certificate
• Partnership Deed (for partnership firms)
• Board Resolution (for companies)
• Shop and Establishment Act Certificate
• Professional Tax/Sales Tax/Service Tax registration
• Trade License
• Certificate of Incorporation (for companies)
• Memorandum and Articles of Association (for companies)
• Business PAN Card

Along with the list of documents provided above, always make sure that documents are updated before you apply for a current account in any of the banks. This process will help you avoid any last-time hassle while opening your account.

The features of a current account in India

Some of the major features that you can access via a current account in India are listed below:

Mobile banking: Mobile banking offers an additional flexibility layer for those who want to make transactions on the spot. Using your mobile device, you get to process transactions and stay connected effortlessly. Moreover, mobile banking boosts your accessibility and lets you manage your account and funds efficiently.

ATM cards: With an ATM card linked to your current account, you get to experience smooth access to your funds anywhere and at any time. Whether you want to check your account balance, withdraw cash, or contact any transactions, the ATM card conveniently shows that all your financial resources stay at your fingertips whenever you need them.

Easy and quick access to funds: You get to access your money instantly and manage business transactions without any additional effort. With net and mobile banking, you can handle your day-to-day transactions or investments anytime and anywhere.

Summing up

A current account stands as an indispensable financial tool which provides you with a wide range of benefits and features that go beyond basic banking services. You can experience all these benefits and services by having the right documents needed to open a current account. Once you have a current account, you can manage your money efficiently with user-friendly features and make transactions and withdrawals within a few minutes. Hence, ensure you have all the needed and updated documents to access the power of a current account.

FAQs about current account

1.     If I have a joint account, will I share the same overdraft facility?

Generally, joint account holders do share the same overdraft facility. However, it is important to recheck the terms and conditions of a current account.

2.     What is the major purpose of a current account?

A current account lets you manage all your finances on a regular basis without any restrictions. It even offers hassle-free fund withdrawal and unlimited transactions.

3.     What are the basic documents needed to open zero-balance current accounts?

Some of the basic documents you require to open zero-balance current accounts are as follows:

• Passport-size photographs
• Address Proof: Aadhaar card, bank statement, Voter ID, Passport, ration card, etc.
• ID Proof: Aadhaar card, Passport, driving license, PAN card, etc.
• Business documents

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