A current account is a type of deposit account that permits a higher number of transactions & services based on the available balance. It is made for professionals, businessmen and entrepreneurs. It is built for all kinds of businesses - SMEs, Startups, and Enterprises. It is typically used for day-to-day financial activities and provides easy access to funds.

Current accounts have no limit on the number of transactions and have high deposit limits. Businesses, entrepreneurs, and other institutions use current accounts to make and receive a large number of payments regularly.

Benefits of opening a Current Account:

1. Smooth and organized business operations: Opening a Current Account helps you manage your business efficiently.
2. Tailored Current Account options: We offer a wide range of Current Account variants designed for different types and sizes of businesses, small, medium, and large organizations, as well as individuals starting their business with a Digital Current Account.
3. Access to the Overdraft Facility: Current account holders have the opportunity to access funds beyond their account balance to address immediate business needs. This exclusive feature is only available for current accounts.
4. Free cheque book and cash withdrawals: We provide complimentary cheque book issuance and no charges for cash withdrawals, regardless of the number of transactions made.
5. Flexible cash deposit limits: Our Current Account options offer various cash deposit limits to accommodate businesses of all sizes.
6. Comprehensive suite of financial solutions: Account holders have access to a range of services, including Debit Card Solutions, CMS Solutions, to meet their specific business needs.

RazorpayX powered Current Account in partnership with RBL Bank & ICICI Bank offers a range of current accounts to meet your business banking needs. These include the following options:

RBL Current Account Types :

1. Business Current Account: This account is designed for small and medium-sized businesses, providing essential banking services to manage day-to-day transactions efficiently
2. Business Plus Current Account: The Business Plus account is tailored for growing businesses that require additional features and benefits beyond basic banking services. It offers enhanced transaction limits and value-added services to support business expansion.
3. Insignia Current Account: The Insignia account is designed for large corporations, high-net-worth individuals, and established businesses. It provides exclusive privileges, personalized services, and dedicated relationship management to cater to the unique requirements of sophisticated clients.

Your business is eligible to open a RazorpayX powered Current Account if it is registered, and falls in any of the following categories:

- Sole Proprietorship
- Partnership
- Limited Liability Partnership (LLP)
- Private/Public Limited Company/One-Person Company (OPC)

Here’s how you can open a RazorpayX powered Current Account in three simple steps:

• Sign up here .
• Click on “Apply now” on the RazorpayX Dashboard and give us some basic details about your business.
• Sit back and relax. Let our Sales Heroes work their magic and have your current account up and running for you.

Here are the documents needed to open a Current Account:

• Proof of identity for proprietor/trader/professional/institution/association, such as PAN card. Individuals may also provide documents like voter ID, passport, or driving license.
• Proof of address for individuals, such as telephone or electric bills.
• Proof of business existence:
  
  1. Municipal authorities-issued registration and licenses, required under the Bombay Shops & Establishment Act, 1948.
  2. GST registration certificate.
  3. Professional Tax authorities-issued registration certificate.
  4. Business registration certificate issued by the respective State Government.
  5. RBI/SEBI registration certificate.
  6. FSSAI licenses.
  7. Import-export license issued by the Director General of Foreign Trade.
• Proof of address for the business:
  
  1. TAN allotment letter by the Income Tax.
  2. Property registration documents.
  3. Property Tax/Water tax bills.
  4. Title deeds to the property/rental registration documents.
  5. Existing bank account statements.
• Additional documents for NRIs (Non-Resident Indians):
  
  1. Customer declaration specifying the source of funds from NRO/NRE/FCNR accounts and exclusion from agricultural activities, print media, or real estate business.
• Additional documents for Limited Liability Partnerships (LLPs):
  
  1. Certificate of incorporation for LLP.
  2. LLP agreement.
  3. List of designated partners with their Designated Partner ID (DPID) issued by the Ministry of Corporate Affairs.
  4. KYC of designated partners.
  5. Resolution authorizing the designated partner as a signatory.
• Additional documents for companies:
  
  1. Memorandum of Association.
  2. Articles of Association.
  3. Certificate of Incorporation.
  4. Certificate of Commencement of Business for Public Limited Companies.
  5. List of Directors.
  6. Board Resolution appointing signatories.

Banks employ a straightforward formula to determine the account holder's Monthly Average Balance (MAB):

MAB = (Total of end-of-the-day closing balances) / (number of days in the month)

Consequently, the monthly average balance is computed by considering two factors:

1. Summing up the closing balances throughout the month.
2. Determining the number of days in the month.

The average monthly balance is then obtained by dividing the total closing balances by the number of days in the month.

No, you do not need to register under the GST scheme or obtain a GST Identification Number (GSTIN) to open a current account. In fact, on the other hand, you need a functional current account to register under GST.

Yes! If you are a sole proprietor, you can open a current account online. For details on the documents you will need for KYC, check out our blog:Documents Required for Opening a Current Account.

Here are some factors you should consider while opening a current account:

• Whether you will have access to integrated services, such as expense management, accounting, and bookkeeping.
• The presence of robust digital infrastructure that enables you to cut down the amount of paperwork, and the number of times you need to visit physical branches.
• The number of free payouts or online banking transactions (NEFT, RTGS) that the bank is offering you with the account.
• The Monthly Average Balance (MAB) requirement.

There are different ways in which money can be deposited to a Current Account such as -cheque deposits, electronic fund transfers, money orders, cashier's cheques, wire transfers(for international bank transfers) or by visiting your nearest branch.

With RazorpayX powered Current Account, you can easily deposit cash directly to your accountvia your RazorpayX dashboard in just one click, through available online modes of paymentand start transacting.

Transferring cash via a Current Account can be done with the help of online banking, cashwithdrawal from ATMs/bank branches, cheque deposit, mobile banking or direct deposit via payorders or demand drafts.

RazorpayX powered Current Account enables you to experience seamless transactions with 24/7instant payouts and many more custom features such as instant tax payment, vendor paymentetc. RazorpayX mobile application enables you to transact on the go.

No, A Current Account is not taxable. No tax is levied on a Current Account since it is a no-interest account.

Rules and regulations around current accounts differ according to the type of account and amount of money being stored. There are no restrictions on deposits and withdrawals, but most banks require a monthly average balance, failing which the account holder may be penalised. Certain other rules are imposed by the RBI, like KYC requirements and tax requirements.

There is no ceiling on how much money can be stored in a current account. Minimum balance requirements differ across banks and products. For example, ICICI Bank offers current accounts with a starting monthly average balance of Rs 25,000.

You may have to pay a non-maintenance charge if you do not maintain the minimum balance in your current account. Other charges include cheque collection, bulk transactions, and service charges.

There are different types of current accounts depending on the account holder’s needs. For example, an MSME current account would have features like auto bank reconciliation, instant loan facilities and lower monthly average balance requirements.

TDS is deducted on current account cash withdrawals exceeding Rs 1 crore per account. This was done to discourage cash payments. Since current accounts don’t earn interest, TDS is not deducted on interest earned.