Banks offer numerous types of accounts to meet the diverse needs of individuals, companies, corporations, and more. Among these account types is the current account, designed to meet the needs of those who frequently transact. This generally caters to business owners.  


There are various features and benefits that make a current account a popular choice. Read on to learn more about its features, benefits, and more.

What is a Current Account?

Banks offer current accounts to those who need to transact frequently and regularly. As such, the account becomes an ideal and popular option for business owners, merchants, corporations, and anyone with many financial transactions regularly. 


Banks allow you to carry out transactions through various modes – cheques, DDs, electronic transfers, and more. You may also get an overdraft facility through which you can withdraw over and above your account balance.


This provides you with better liquidity and access to your funds. As such, banks do not offer interest on the balance you maintain, as with a savings account.

Features and Benefits of a Current Account

Instant access to funds

Carry out transactions whenever needed

Higher transaction limits

Pay, deposit, or receive funds without any hassles


Better liquidity but no interest on idle funds

Overdraft Facility

Overdraft facility to meet financial requirements without any worries

Mutliple Transaction Modes

Numerous transaction modes give you more flexibility when transacting

Types of Current Account

Banks offer different types of current accounts to ensure that you can have an account tailored to meet your business requirements. 

Given below are some common current account types:

  •  Standard Current Account

This account offers the standard features of a current account – high transaction limit, DD, OD, cheque books, and more. However, you do not receive any interest in this account.

  •  Premium Current Account

An upgrade to the standard current account, banks offer numerous additional perks. These exclusive benefits allow you to customise the account per your business requirements.

  •  Basic Current Account

Similar to the standard current account, this account has many features of the current but not all. For example, some banks may not offer an overdraft facility in a basic account.

  •  Packaged Current Account

This account is a mix of standard and premium accounts. Banks also offer additional perks such as insurance and exclusive offers. You can leverage these benefits and offers to better operate your business.

  •  Foreign Currency Current Account

As the name suggests, this account facilitates international transactions regularly. As such, it is best suited for those situated outside India or those who want to transact in foreign currencies frequently.

Documents Required for a Current Account

Given below are some general documents that you will need to furnish to open a current account:

  • ID proof

  • Residential proof

  • Business documents as per entity type

  • Cheque for account balance requirement


Please note that these requirements may vary depending on the bank you choose. You can check and confirm the same on the bank website or at the time of account opening.

FAQs about Current Account

What is the difference between a savings account and a current account?

A savings account is a deposit account designed to encourage you to save and earn interest on the funds maintained in the account. In comparison, a current account is designed to facilitate the daily transaction requirements of businesses and offers no interest.

What is the minimum balance for a current account?

The minimum balance requirement for a current account varies depending on the bank you have the account with and the type of current you have. 

Is there a zero-balance current account?

Yes, some banks offer zero-balance current accounts. AU Small Finance Bank, Jana Small Finance Bank, Axis Bank, HDFC Bank, Bank of Baroda, and ICICI Bank are leading banks offering this option.

What are the benefits of opening a current account?

The main benefit of opening a current account is that you enjoy the benefit of liquidity. You can also carry out daily transactions more frequently, as there is generally no limit on the number of transactions.

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