Presented by

BIPASHA ROY
 Introduction
 Current Account is a deposit account that can be taken in the
bank by flling a bank accounts application. 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 better options to send
and receive funds instantly to almost any part of the country.
The current account is also known as Demand deposit.
What are the uses 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.
 One can directly go to the bank and deposit the funds.
 If someone have a current account, the person can send the cheque by post to
the bank to deposit money to your bank account.
 Electronic transfer can be used.
 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.
 Features
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
 We 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
 We can withdraw or deposit at any branch of the banks in India
 The bank accounts are safe, secure and convenient
 We can enjoy all the benefits such as phone banking and net banking and for any
queries, we can contact the customer support representatives of the bank
 Current account
facilities provided in
different bank
 Who Can Open Current account?
 This account is opened for business or commercial use.
 Normally current account is opened by those who have commercial
interest and have need to issue many cheques.
These include:
Individuals
Sole proprietorships
Hindu undivided family
Partnerships
Trusts associations
Societies and clubs
Limited companies
 Documents Required
Hindu
Sole Trust/
Undivided Partnership Company
proprietorships Association
Family
ID proof & address proof ID proof & address PAN card of the ID proof of all ID proof & address
of the proprietor utility bill proof of the Karta, firm/ID or address directors/authorized proof of the founder
such as ID proof of the proof & photos of the signatures, PAN card of
telephone/electricity bill in coparceners, partners the directors, Passport,
the name of the proprietary Deceleration from Voter ID card
concern the Karta

Registration certificate, Deed of declaration ID proof & address Certificate of Trust deed,
Certificate license issued of HUF proof of the person incorporation, Registration certificate,
by municipal authorities holding POA Commencement of list of trustees with
business, Memorandum their signature
& Article of association

Sales tax/central sales Photos of Karta Partnership deed, Company PAN Card or Power of attorney
tax/value added tax Partnership registration Acknowledgement
certificate (less than 90 days)

Income tax return in the Certified board Telephone bill

name of proprietor resolution of attorney
granted to it’s manager
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 of our bank accounts and PIN number from the reach of
anyone else.
 Banks in India issue account statements every month by sending them to our
email or residence address. Collect all the statements and keep them up to
date.
 We shouldn’t ever sign in the cheque book. If we have any cheque that are not
valid we should destroy them immediately.
 Banks in India require to inform them of any change in the residence address,
phone number, loss of cheque book or cheque.
 In case oft theft or loss of Debit card Or credit card, make. Sure to inform the
bank to block your account.
 Advantages of Current
Account
 Current account is mainly opened for businessmen such as proprietors, partnership
firms, public and private companies, trust, association of persons, etc. that has a large
number of dally banking transactions, i.e., Receipts and/or payments.
 It enables businessmen to carry out their business transactions properly and promptly.
 The businessmen can withdraw from their current accounts without any limit.
 It helps businessmen to make a direct payment to their creditors by issuing cheque,
demand- drafts or pay-orders, etc.
 It enables a bank to collect money on behalf of its customers and credits the same in
their customers’ current accounts.
 It enables the current account holder to obtain overdraft (short-term borrowing)
facility.
 It facilitates the industrial progress of the country. Without its help, businessmen
would face difficulties in running their businesses.
 It has the facilities of Internet-banking and mobile-banking to carry out important
business transactions with ease and quickly.
 Interest on Current Account

 Banks do not pay interest on balances maintained in a current

account.
 The RBI prohibits the payment of interest in the current account. In
addition, RBI also prohibits the payment of countervailing interest.
 Banks are permitted to pay interest on the current account of a
regional rural bank they have sponsored.
 Since May 1983 banks have been permitted to pay interest on the
balances in the current account standing in the name of deceased
individual.
 Closing an Current Account
 To close an account all the account holders should write to the
bank stating that intent to close the account.
 All unused cheques should be cancelled and return to the bank.

 The bank may also request the customer to close his account
 If the customer is no longer a desirable person and the, account
has not been operated for a long term.
 If a customer cannot be traced, the balance placed in an
unclaimed deposit account.
 It’s a statement or correspondence sent to the customer is returned
the balance and should be transferred to the “Dormant Account”.