All You Need to Know to Open a Current Account

The banking world today has advanced leaps and bounds. There exist a number of ways in which individuals can store their money and conduct transactions through banks. Of these, the Current Account is a viable means for individuals who incur a significant number of transactions on a regular basis. This write-up helps answer questions like “What is a Current Account?”, “What do I need to open a Current Account?”, “Can I open a Current Account without a GST?” and “What are the benefits of a Current Account?”

In order to become a Current Account holder, the following documents must be submitted to the bank of your choice.

• Proof of identity of the individual opening the account, such as a PAN Card, Voter ID, Passport and / or Driving Licence
• Proof of Address for future communication. An individual may show a telephone or electricity bill in order to establish the same
• A cheque from an existing Savings Account
• A colour photograph of the applicant/s
• Certificate of Incorporation and Memorandum of Association are required in the case of companies and trusts
• Companies should provide an address at which they can be reached
• Partnership agreement is required in the case of partnership firms
• Identity and residence proof pertaining to all partners.

Upon submitting these documents, a bank representative completes all other account opening formalities such that the Current Account can be formed, once the criteria is met.

Step to open a current account.

GST and Current Accounts 

Goods and services tax (GST) cannot be levied on a Current Account. Moreover, it is not a mandatory requirement to open a Current Account. Only accounts registered under the GST scheme require a functioning Current Account.

Conclusion 

Banks today allow for individuals to open a Current Account online, thereby making them more accessible to a wider range of people. Offering an array of benefits, they allow account holders to carry out limitless transactions with a high limit on the value of each transaction. Individuals, companies and partnerships can each take advantage of a Current Account. Current Account holders can enhance the way in which their transactions are conducted. Should they need to, account holders can take advantage of the overdraft facility available to them. Documents needed to create such accounts include proof of identity, address and photographs of the individuals who want to open the account.

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