Current accounts are cheque operated accounts maintained mainly for business purposes. According to RBI definition, current account means a form of demand deposit where from withdrawals are allowed any number of times depending upon the balance in the account or up to a particular agreed amount and shall also be deemed to include other deposit accounts which are neither Savings Deposit nor Term Deposits.
While individuals are also eligible for opening current accounts, these are opened mostly for business purposes to facilitate large number of daily banking transactions i.e. receipts and payments. For individuals it serves as an expense/ reimbursement account.
The main features of current accounts are:

• Facilitate business transactions
• Non-interest bearing account
• No restriction on number of deposits
• No restriction on number and amount of withdrawals subject to minimum balance requirements
• Debit card facility

 

 

Application mode