Opening a current bank account in India

When you start a business, it's important to separate your personal finances from your business transactions. Opening a current account is a key step in achieving this separation. Unlike a savings account, a current account is designed specifically for business needs. It offers features like checkbook facilities, higher transaction limits, and overdraft options. With a current account, you can manage your business finances effectively, receive payments from clients, and make business-related payments. It also helps you maintain accurate records and simplifies tax compliance and financial reporting. Having a dedicated current account gives your business a professional image and makes your operations smoother. So, if you're an aspiring entrepreneur, opening a current account is an essential move for your business.

Below are the steps to open a current account:

1. Research and Choose a Bank:

   Conduct a research on different banks to identify the ones that offer current accounts with suitable features, benefits, and services. Compare factors such as transaction fees, account requirements, online banking facilities, and customer reviews to make an informed decision. ( you may try AU Bank)

2. Visit the Bank Branch:

   Once you have chosen a bank, visit the nearest branch that offers current account services.

3. Obtain the Application Form:

   Request an application form for opening a current account from the bank. Most of the private banks have digitalized the process so you would find a dedicated person with a Tab PC in hand to do it for you.

4. Gather Required Documents:

   Collect the necessary documents for opening a current account. These typically include:

   a. Proof of Identity ( any one ): Provide a valid proof of identity such as a passport, Aadhaar card, voter ID card, driving license, or PAN card.

   b. Proof of Address ( any one ): Submit a valid proof of address, such as a passport, Aadhaar card, voter ID card, utility bill or rent agreement (if applicable).

   c. Proof of business (all are required) : GST reg certificate, Udhyam registration certificate and seal of proprietor / partner / director For GST and Udhyam certificate you may contact: Business Consultants d. Passport-sized Photographs: Keep a few recent passport-sized photographs ready.

   It's important to note that specific banks may have slight variations in the required documents. It's advisable to confirm the exact requirements with the bank.

5. Make Copies and Self-Attestation:

   Make self-attested photocopies of all the required documents and carry both the copies and originals to the bank for verification purposes.

6. Submit the Application:

   Submit the completed application form along with the necessary documents to a bank representative. They will guide you through the submission process and provide any additional instructions.

7. Initial Deposit:

   Deposit the minimum required amount specified by the bank to open a current account. The minimum balance requirement varies depending on the bank and type of current account you choose. Some banks may ask for cheque from proprietor / partner / director, payable to bank instead of cash deposit. Initial amount may vary bank to bank generally starts from a nominal amount within INR 25,000

8. Signature and Photograph:

   Provide your signature and have your photograph taken for the bank's records.

9. Application Processing:

   The bank will initiate the process of verifying the submitted documents and processing your application. They may conduct a background check or request additional information if necessary.

10. Account Opening Confirmation:

    Once your current account is successfully opened, the bank will provide you with an account number, account details, and other relevant information. They may also provide you with a checkbook and/or a debit card associated with the account.

    Note:

    Remember that specific banks may have their own procedures and requirements for opening a current account. It's recommended to contact the chosen bank or visit their official website to obtain accurate and up-to-date information tailored to their specific process.