Different Types of Bank Accounts

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What is a current account?

Current Account is primarily meant for businessmen, firms, companies, and public enterprises etc. that have numerous daily banking transactions. Current Accounts are cheque operated accounts meant neither for the purpose of earning interest nor for the purpose of savings but only for convenience of business hence they are non-interest bearing accounts. In a Current Account, a customer can deposit any amount of money any number of times. He can also withdraw any amount as many times as he wants, as long as he has funds to his credit. Generally, a higher minimum balance as compared to Savings Account is required to be maintained in Current account.

As per RBI directive banks are not allowed to pay any interest on the balances maintained in Current accounts. However, in case of death of the account holder his legal heirs are paid interest at the rates applicable to Savings bank deposit from the date of death till the date of settlement. Because of the large number of transactions in the account and volatile nature of balances maintained, banks usually levy certain service charges for operating a current account.

Current Account can be opened by:
An individual who has attained majority.
Two or more individuals in their joint names.
Sole proprietorship concerns.
Partnership concerns.
Hindu Undivided Family (HUF).
Limited Companies.
Clubs, Societies.
Trusts, Executors and Administrators.
Others - Govt. and semi Govt. bodies, local authorities etc. Requirements to apply for Current Account
For Individual, Joint:

Following papers / documents are to be required for opening an account in the Individual / Joint name:-

2 (Two) passport size photographs duly attested by the introducer •Passport / Identify card / Employer’s certificate / Word commissioner certificate •Introducer
For Proprietorship:

Following papers / documents are to be required for opening an account in the Proprietorship name:-

Introducer who maintaining an A/C with this Branch
2 (Two) passport size photographs in each name duly attested by the introducer •Valid Passport / Identify card (For Defense personnel) / Word commissioner certificate in each name. •Initial deposit minimum 500/-for opening a new A/C

Declaration of Proprietorship
Trade license from Municipality
TIN(Tax Identification Number) & VAT(Value Added Tax) Certificate •Mandate if operation by 3rd party is to be allowed.
Account agreement form

For Partnership:

Following papers / documents are to be required for opening an account in the Partnership name:-

Introducer who is maintaining an A/C with this Branch
2 (Two) passport size photographs in each name duly attested by the introducer •Valid Passport / Identify card (For Defense personnel) / Employer’s certificate / Word commissioner certificate in each name •Initial deposit minimum 500/-for opening a new A/C

Photocopy of partnership deed registered with registrar of firm duly attested by notary public •Trade license from municipality
TIN & VAT certificate
Photocopy of registration certificate duly attested by Notary Public in case of registered firm •Account agreement form
Letter of partnership duly signed by all the partners, in case of non-registered firm •Resolution signed by all the partners to open the A/C

For Club, Society, Trust, Autonomous Body, Govt. Depts., Directorate, Hindu Undivided Family, etc:

Following papers / documents are to be required for opening an account

Photocopy of Registration certificate certified by Chairman/Secretary •Copy of constitution/ Bye Laws of the Club/ Society/ Association duly certified by Chairman/ Secretary. Certified copy should also be verified with the original by concerned Bank Officials under seal and signature •Resolution of the managing committee/ Executive Committee authorizing opening the A/C with the Bank naming the persons who will operate the A/C •List of...
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