As a business owner, entrepreneur or a freelancer, a Current Account can be your most valuable tool. This bank account is particularly useful for individuals who carry out a high number of transactions regularly. With a Current Account, you can enjoy numerous benefits that simplify your finances. These include easy management of business finances, high transactional limits, overdraft facility, easy access to funds, customisable accounts and online banking.
Individuals, sole proprietors, limited liability companies, and co-operative trusts can easily open a Current Account through online or offline channels. However, banks have specific eligibility criteria that applicants must meet to be eligible for this account. To facilitate a smooth application process and avoid any delay, it is essential to understand and fulfil these criteria. Let’s get into more details.
Current Account eligibility | Who can apply for a Current Account?
Depending on the bank, there may be specific guidelines that can impact an individual or entity’s ability to open a business Current Account. Thus, it is always recommended to check with the respective bank to understand their set requirements. That being said, here is a list of several categories of individuals and entities that can apply for a business Current Account.
- Non-government organisations or charitable trusts
- Mutual funds/insurance companies
- Stock and share brokers
- Domestic banks/domestic co-operative banks/regional rural banks
- Foreign banks
- Religious organisations/government bodies/educational institutes
- Partnership/limited liability partnerships
- Public sector undertakings
- Private limited companies
- HUFs (Hindu undivided families)
- Sole proprietorships
- Co-operative society/Society/Trust
List of documents needed for opening a Current Account
The exact list of documents may vary slightly from one bank to another. However, following are the most common documents that banks require to open a Current Account online and offline.
Proof of identity and address
You will need to provide a government-issued photo identification document to verify your identity and address. Acceptable documents include:
- Driver’s licence
- Voter ID card
- PAN Card
- Aadhar card
- Utility bill (electricity, water, gas, etc.)
- Rental agreement or lease deed
You will also have to provide the latest passport-size photographs.
Business documents are important as they establish the legitimacy and credibility of the business entity. These documents serve as evidence of the business’s existence, ownership, and operations. Some common business-related documents needed to open a Current Account include:
- Proof of address of the business
- Proof of the existence of the business
- Tax registration documents
- KYC of the proprietor
- Licences from relevant authorities.
You can find a complete Current Account documents list on the bank website. This way, you can have all the necessary paperwork ready before applying for a Current Account, save time, and prevent any last-minute hassle.
Open a Current Account today and organise your finances
Every Current Account comes with specific eligibility criteria that must be met before you can proceed. Thus, it is advisable to compare different types of Current Accounts, their benefits, features, and requirements before finalising a decision. Don’t forget to check maintenance fees, transaction costs, and overdraft charges. Most importantly, choose a bank that offers valuable features and competitive pricing.
Once you evaluate all factors, visit the bank’s website or download their app to open an online Current Account with a few clicks. Now, enjoy the convenience of banking services and simplify your financial management.