What are current accounts?
A Current account is opened by any who intends to do business. This account is the only account that allows a higher number of regular transactions with the bank. It includes a variety of offerings like deposits, withdrawals, and contra transactions. It is also known by the name Demand Deposit Account or financial account. Current accounts can be opened in any bank, be it the co-operative or commercial banks. An existing account is a type of deposit account meant for individuals who carry out a higher number of transactions with banks regularly. It is only created for the individual upon request from the bank. Current accounts do offer ATM cards.
Current accounts are made for businesspeople, firms, companies, public enterprises, etc. Every head has its benefits and advantages to cater to. There are likely to be more positive properties of the current account which adds to the business. The minimum balance requirement here is Rs. 10,000/- . This is the staple money one has to keep to run a current account. However, it varies from bank to bank. Every bank has its terms and conditions to be fulfilled, and one must adhere to them. So a proper inquiry before indulging in the process is quite needed, and it is also helpful.
Types of Current Accounts:
Current Accounts are business accounts and have many benefits. So there are specific features in each type to cater to the requisite customers. Not everyone has the exact requirements, so that one can look for the current accounts available with the bank.
There are five types of Current Accounts available for the business heads. These are :
- Premium Current Account
- Standard Current Account
- Foreign Currency Account
- Packaged Current Account
- Single Column Cash Book
The above-mentioned types of current accounts depend on the kind of bank one chooses. Be it corporate or cooperative, the working of the banks do differ.
Let’s talk about Digital Current Account!!
A Digital Current Account is a digital debit card. It provides easy, secure online transactions and does not have any plastic existence in terms of credit cards or ATM cards. It can be directly used and registered from the bank’s app available on mobile. This makes the whole system hassle-free and not technical, as one doesn’t have to visit the bank day after day. The entire process happens within a few minutes, and one can sit in any corner of the world with proper documents and do the needful without worrying.
The digital service allows the customers to get registered via. KYC Video Current Account Opening. The Account Activation takes almost three days while the customers don’t need to visit the banks. An e-debit card is issued while the physical Debit Card & Cheque Book issued get delivered to the house in a few days. It allows transactions via. Debit Card, UPI, NEFT, IMPS, RTGS & Net Banking while maintaining a minimum of Rs.1 Lakh per month in the Digi-Current Account. Although, this also varies from bank to bank.