What documents are needed to open a current account?

What documents are needed to open a current account?

A current account is a banking account that allows you to store your money and withdraw it easily. You can have one current account for your savings, investments, pay bills, salary, and other recurring income. These accounts are ideal for people who have regular income from sources like a salary, pensions, or a steady stream of rent from a property.

Current accounts offer the same level of security as more expensive financial products but at a fraction of the cost. A current account can help you manage your finances by giving you easy access to your funds whenever you need them.

In this article, we will look at the features, benefits, and documents that are needed to open a current account.

Features of a Current Account

  • A key feature of a current account is that it is always available on the go.
  • No restrictions on the number of transactions that you can make.
  • Typically, there is a need to maintain a minimum balance that might be higher than a savings account.
  • A current account can be owned and operated by an individual, company, proprietor, etc.

Benefits of A Current Account

Overdraft Facilities:
A unique benefit of a current account is the overdraft facility. There are times in a business when you might have to make a transaction where you don’t have enough money saved in your account. However, with the overdraft facility, you can make a transaction even if you don’t have enough money. The bank will pay the rest of the money for you. In return, when you add money to your account, the bank will automatically deduct that money.
Typically, there is an overdraft limit set by the bank.

No transaction limits:
An important benefit of a current account is that there is no transaction limit. This is particularly important for businesses as they might have to make many transactions. You can make as many transactions as you want without having to worry about fees being applied to them.
Some banks even allow a zero-balance account, where you don't have to worry about keeping a minimum balance.

Documents Needed for Opening a Current Account

Below are the documents that might be required for opening a current account:

  • Driving Licence
  • PAN Card
  • Voters ID Card
  • Aadhaar Card
  • Passport

A current account is an account you keep with a financial institution for your day-to-day banking needs. This account is an excellent choice for those who plan to use their bank as their primary financial resource. The main features of a current account include low fees, easy transactions, and no restrictions on how much money you can deposit or withdraw at any time.