There’s a point in every individual’s journey where using a Savings Account just won’t cut it. That’s where a Current Account becomes useful. If you are making regular payments related to your work, such as paying vendors, receiving Deposits from clients, or managing the cash flow daily, a Current Account makes life easier.
You may be thinking: Is the set-up process of a Current Account complicated? So, here’s a step-by-step walk-through to create a Current Account and stay on top of your business transactions.
Pick the Right Bank
This isn’t just about which bank is closest to your home. Hence, take a bit of time to compare what different banks offer, like easy online access, transaction limits, or any hidden fees. Over time, small things do count and do make a big difference.
There are Current Accounts provided by banks that are suitable for various types of businesses such as start-ups, professionals, or exporters. So, do make an effort to do some homework and read all the terms and conditions before you sign up.
Fill in your Application
Once you have chosen a bank, you then complete a form with your personal and business details. Most banks offer a branch and online facility, so do whichever you like. You will need to give:
- Your name.
- Contact details.
- Business name.
- Type of organisation (sole proprietorship, partnership, company, etc.).
- Business address and communication address.
If you are applying in person, it may become a requirement for the bank to call you back in order to verify or for you to pop into the branch for a minute.
Keep your Documents Ready
This is necessary because missing documents are one of the leading causes of slow applications. Below is a general checklist of documents:
- Proof of business registration (GST certificate, shop license, or incorporation document).
- PAN card for the business.
- Proof of address (utility bill or rent agreement sufficient).
- Proof of ID (passport, Aadhaar card, or driver’s license).
- Passport-sized photos.
In case your business is new, the bank may ask for a declaration or a basic business plan, especially if there’s no GST yet.
Make the Initial Deposit
Here’s where people sometimes get caught off guard. Every bank has its own policy for the Current Account minimum balance, which can range from a few thousand to a significant sum, depending on the Account type. You’ll have to make this initial deposit to activate the Account. If you’re unsure how much to put in, just ask the bank representative for the required amount before submitting your application.
Wait for the Approval
Once everything’s submitted, the bank will verify your documents. This could take anywhere between 1–3 working days. After that, you’ll receive your Account details, cheque book, Debit Card, and Internet Banking credentials. At this point, your Current Account is live and ready to use for all your professional financial dealings.
Who’s Eligible to Open a Current Account?
It’s not just limited to big businesses. In fact, many professionals and small traders benefit from one. You can create a Current Account if you’re:
- A freelancer or self-employed professional.
- Running a sole proprietorship or partnership.
- Managing a company (private or public).
- Part of a non-profit, trust, or society.
- A member of a Hindu Undivided Family (HUF).
Essentially, if you’re making regular business-related transactions, you’re eligible.
Final Thoughts
Opening a Current Account may seem like just another thing you need to do, but it can actually help you simplify your finances. Current Accounts provide the organisation, safety and versatility that most people need, especially professionals working with more transactions on a daily basis.
So, if it’s been on your mind, don’t delay. Gather your documents, get the options you need to check out, and get started. The sooner you open a Current Account, the sooner you will see a difference in your money management because of better control and understanding.
