Meaning of Current Bank Account ↓
Current banking concern trouble organisation human relationship is opened yesteryear businessmen who convey a higher publish of regular transactions amongst the bank. It includes deposits, withdrawals, as well as contra transactions. It is likewise known equally Demand Deposit Account.
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Current trouble organisation human relationship tin travel opened inwards co-operative banking concern as well as commercial bank. In current account, total tin travel deposited as well as withdrawn at whatsoever fourth dimension without giving whatsoever notice. It is likewise suitable for making payments to creditors yesteryear using cheques. Cheques received from customers tin travel deposited inwards this trouble organisation human relationship for collection.
In India, electrical current trouble organisation human relationship tin travel opened yesteryear depositing Rs.5000 (approx. U.S.A. $ 100) to Rs. 25,000 (approx. U.S.A. $ 500). The customers are allowed to remove the total amongst cheques, as well as they commonly create non teach whatsoever interest. Generally, electrical current trouble organisation human relationship holders create non teach whatsoever involvement on their residue lying inwards electrical current trouble organisation human relationship amongst the bank.
Current trouble organisation human relationship holder teach ane of import wages of overdraft facility.
Features of Current Bank Account ↓
The original features of current account are equally follows:-
- Current banking concern accounts are operated to run a business.
- It is a non-interest bearing banking concern account.
- It needs a higher minimum residue to travel maintained equally compared to the savings account.
- Penalty is charged if minimum residue is non maintained inwards the electrical current account.
- It charges involvement on the short-term funds borrowed from the bank.
- It is of a continuing nature equally at that spot is no fixed menses to agree a electrical current account.
- It does non promote saving habits amongst its trouble organisation human relationship holders.
- Banker requires KYC (Know your Customers) norms to travel completed earlier opening a electrical current account.
- The original objective of electrical current banking concern trouble organisation human relationship is to enable the businessmen to behaviour their trouble organisation transactions smoothly.
- There is no restriction on the publish as well as total of deposits.
- There is likewise no restriction on the publish as well as total of withdrawals made, equally long equally the electrical current trouble organisation human relationship holder has funds inwards his banking concern account.
- Generally, banking concern does non pay whatsoever involvement on electrical current account. Nowadays, only about banks create pay involvement on electrical current accounts.
Advantage of Current Bank Account ↓
The advantages of electrical current trouble organisation human relationship are equally follows:-
- Current trouble organisation human relationship is mainly opened for businessmen such equally proprietors, partnership firms, populace as well as individual companies, trust, association of persons, etc. that has a large publish of daily banking transactions, i.e. receipts and/or payments.
- It enables businessmen to send out their trouble organisation transactions properly as well as promptly.
- The businessmen tin remove from their electrical current accounts without whatsoever limit, bailiwick to banking cash transaction tax, if whatsoever levied yesteryear the government.
- Home branch is that place where ane opens his banking concern account. There are no restrictions on deposits made inwards the electrical current trouble organisation human relationship opened inwards a domicile branch of a bank. However, the electrical current trouble organisation human relationship holder tin deposit the cash from whatsoever other branch of a banking concern other than the domicile branch yesteryear paying a nominal accuse equally applicable.
- It helps businessmen to brand a straight payment to their creditors yesteryear issuing cheques, demand-drafts or pay-orders, etc.
- It enables a banking concern to collect coin on behalf of its customers as well as credits the same inwards their customers' electrical current accounts.
- It enables the electrical current trouble organisation human relationship holder to obtain overdraft (short-term borrowing) facility.
- The creditors of the trouble organisation human relationship holder tin teach credit-worthiness data of the trouble organisation human relationship holder through inter-bank connection.
- It facilitates the industrial progress of the country. Without its help, businessmen would expression upwards difficulties inwards running their businesses.
- It has the facilities of Internet-banking as well as mobile-banking to send out of import trouble organisation transactions amongst ease as well as quickly.
- It likewise provides diverse other advantages (benefits) such as:
- Deposit as well as withdrawal of coin (cash) at whatsoever location.
- Multi-location funds transfer,
- Electronic funds transfer,
- Periodical (monthly, quarterly or yearly) email or download of banking concern statements inwards diverse formats similar '.XLS', '.TXT', '.PDF', etc.
- Support from client attention executives.
