admin
How to Open a Current Account
What is a Current Account?
Current Account is an account in which there is no limit on the Number of Transactions that can be done in a day and therefore is also known as Transactional Accounts. These types of accounts are held neither for the purpose of investment nor for the purpose savings but only for the convenience of the business as these accounts are most liquid types of accounts.
How to open a Current Account with a Bank?
All Indian Banks are allowed to open Current Accounts. You can approach any bank with the requisited documents and on successfully furnishing all the details in the application form, the banker will verify and on being satisfied, shall open a Current Account.
Requirement for keeping Minimum Balance
Current Accounts users are also required to maintain a minimum Quarterly Average Balance in their accounts. The Minimum balance criteria may differ from One bank to another.
What are the Documents required to open a Current Account?
In addition to the Customer due diligence (CDD) requirement, as specified by the RBI in its circular dated 25.02.2016 (updated upto 20.04.2018), following are the Documents required to open a Current Account:-
For Public Limited Company
- Account Opening Form
- Beneficial Ownership
- Memorandum and Article of Association
- Certificate of Incorporation
- Board Resolution
- Copy of PAN Card
- Photograph of Directors/ Managers/ Employees Authorized.
- Adhaar Verification of Directors/ Managers/ Employees Authorized.
- PAN of Directors/ Managers/ Employees Authorized.
For Private Limited Company
- Account Opening Form
- Beneficial Ownership
- Memorandum and Article of Association
- Certificate of Incorporation
- Board Resolution
- Copy of PAN Card
- Photograph of Directors/ Managers/ Employees Authorized.
- Adhaar Verification of Directors/ Managers/ Employees Authorized.
- PAN of Directors/ Managers/ Employees Authorized.
For One Person Company
- Account Opening Form
- Beneficial Ownership
- Memorandum and Article of Association
- Certificate of Incorporation
- Board Resolution
- Copy of PAN Card
- Photograph of Directors/ Managers/ Employees Authorized.
- Adhaar Verification of Directors/ Managers/ Employees Authorized.
- PAN of Directors/ Managers/ Employees Authorized.
For Partnership Firm
- Account Opening Form
- Partnership Deed
- Registration Certificate (Registration under GST/ Udyog Adhaar MSME/ Shop and Establishment Act etc.)
- Copy of PAN Card of Firm
- Photograph of Partner Authorized.
- Adhaar Verification of Partner authorized.
- PAN of Partners.
For Sole Proprietorship Firm
- Account Opening Form
- Adhaar Verification of Individual
- PAN Card or Form 60
- Address Proof: Driving License/ Passports/Aadhar Card
- Any two of following documents:-
- Registration Certificate
- Certificate under shop and establishment Act
- GST and Income Tax Returns
- GST Certificate
- Certificate issued by Professional Tax Authority
- IEC registration certificate/ License or certificate issued in the name of proprietary concern by professional body.
- Complete Income Tax Return showing income in the name of firm.
- Utility bills such as electricity, water and landline telephone bills.
For Socities, Trusts, Clubsm Educational Institutions, Associations
- Account Opening Form
- Trust Deed/ Society Memorandum and Bye Laws.
- Resolution of authorization of Trustee/Member
- Registration Certificate (Registration under GST/ Udyog Adhaar MSME/ Shop and Establishment Act etc.)
- Copy of PAN Card of Trust/Society
- Photograph of Trustee/Member Authorized.
- Adhaar Verification of Trustee/ Member Authorized.
- PAN of Trustee/Member Authorized.
The Account Holder will also be required to comply with the KYC Norms. Almost all the banks provide the facility of Debit Card, Mobile Banking and Internet Banking for the Current Account users. However there may be a small charge of fees for such services.
