Introduction to Current Accounts

During BankandFinance.com section on Introduction to Current Accounts we go over what exactly a current account is. It is a deposit account that can be taken in the bank by filling a bank accounts application. If an applicant opts for this account, interest rates need not be calculated. It is used for the convenience of withdrawing or depositing funds. Banks in India generally offer these bank accounts for business ventures and operations.

The level of competition amongst businesses has skyrocketed over the last decade and today, it is at a level which only few thought was possible. To grow a business, the entrepreneur has to regularly update all their business needs and goals with the help of money. A current account gives you better options to send and receive funds instantly to almost any part of the country. The current account is also known as a checking account, transactional account or demand account and can be taken from banks in India. Using a checking account you can take joint accounts, student accounts and business accounts in India. There are certain minimum deposits that must be paid in order to open a checking account. The minimum deposit varies from bank to bank and you should be aware of the eligibility factors required to open any type of bank account in India.

What is the use of a current account?

Bank accounts make it possible for the applicant to deposit and withdraw funds at any time for whatever reason the bank account holder may have. There are no interest rates charged for these types of accounts by banks in India and you can fill the bank accounts application from any bank and get instant access to your account.

The applicant can only choose certain types of options to deposit the money.

You can directly go to the bank and deposit the funds
If you are getting any funds from abroad, you can wire the money from Western Union or from any bank directly to your current account.
If you have a checking account, you can send the cheque by post to the bank to deposit money to your bank account
You can use electronic transfer

There are certain options to withdraw your money instantly. They are:

By cheque
Withdraw money from the bank account using ATM
Use the debit card to buy any products and services online or from any retail/shopping stores that have the option to check debit card and process payments.
Direct debt to any other account using online banking

If you want to apply for an account in HDFC you should take the bank accounts application and fill in the required information.

Features and Benefits of a current account

There are many features and benefits that an applicant can avail by applying for a current account. Some of these are given below:

Banks in India charge no fees for transfers of funds from one account to another
You can pay and collect the money through RTGS (Real Time Gross Settlement) and NEFT (National Electronic Funds Transfer System)
A certain limit on the demand draft and pay orders per month are applicable
There are no special charges for clearing the cheques in any part of the country
You can withdraw or deposit at any branch of the banks in India
The bank accounts are safe, secure and convenient
You can enjoy all the benefits such as phone banking and net banking and for any queries, you can contact the customer support representatives of the bank

Responsibilities of the current account holder

There are certain responsibilities that the applicant must have and follow in order to maintain proper transfers to and from the account:

Make sure to keep all your bank accounts and PIN number from the reach of anyone else
Banks in India issue account statements every month by sending them to your email or residence address. Collect all the statements and keep them up to date.
Don’t ever sign in the cheque book. If you have any cheques that are not valid destroy them immediately
Banks in India require you to inform them of any change in the residence address, phone number, loss of cheque book or cheque
In case of theft or loss of Debitcard or credit card, make sure to inform the bank to block your account

If you are planning to take a current account in any bank, fill in all of your contact information and we at BankandFinance.com will connect you with multiple banks in India such as State Bank Of India, HDFC banking, Punjab National Bank, Union Bank of India and LIC of India.