Current Account 

A bank account from which the cash or money can be withdrawn with the help of a cheque book or card. Current Account is also known as a business account. It plays a crucial role in managing the accounts of a business and tracking the activities.

In India every commercial bank offers or allows opening of a current account for business purposes .

The main target audience for this type of bank accounts are the business firms/ Groups and the entrepreneurs. As these accounts help in tracking expenses, organising cash flow and other activities related to tax . Current account offers a variety of activities like transactions , withdrawal and deposits. Current account is a no interest rate generating account.

The use of a current account is quite extensive in a running business as a lot of day to day operations , salaries and other account expenses are easy to track and maintain. 

Advantages of a Current Account 

Current account offers a wide range of benefits to the business group ,firms and to entrepreneurs . These benefits and advantages of current account are discussed as follows:

  • Unlimited transactions: In any business the most crucial thing is money or to be more specific liquid money that can easily utilised. Bank accounts generally have a limit on withdrawal or number of transactions are limited by an upper limit set by the bank .But current accounts have gone away with this problem. So the account owners having a current account can do or perform any numbers of transactions at whatever Frequency they wish . This feature of the current account has provided the high liquidity of money in a current account and has made it popular.
  • Greater Operation fluidity: A current account being made for  business groups hence enables faster and efficient transactions. Thus efficiency in. Transfer of money helps build trust between the customers and suppliers.
  • Distinction or separation of funds: It is always said that we must keep personal and professional life separate . This concept is used in. Current account . As we know that Current account is for the business and Hence the expenses , transactions and assets of the business now can be separated from personal assets. Moreover it also offers transparency of funds. It makes tracking if cash inflows easy which helps. Better tracking and budgeting activities. It also helps during tax payment as the data is easy to interpret.
  • Smart insights: The financial data is provided in a format that can be read easily and various insights can be taken from it. Moreover the Statement that is offered by Banks provides the exact transfer of funds – the person ,amount etc. that makes the transactions transparent. Banks also offer instant financial report that is a summary a contacts also a real time data about transactions is also provided that helps in making crucial business related decisions .
  • Legitimacy: Having a current account to a business adds to the legitimacy . Since it keeps the funds or investment made in the company separate from that of the personal assets. Moreover, not having a business account or current account is seen as unprofessional and can in the end lead to customers questioning the legitimacy of the business.
  • Additional benefits: Current accounts have benefits similar to that of saving accounts like – Demand Draft facility, RTGS and NEFT free of cost . Also on top of it the current or business accounts also offer unlimited withdrawal and transactions unlike the savings account.

Minimum Balance 

Minimum balance is defined as the minimum rupee amount that should be kept by a customer to keep its account active and receive the account benefits like interest etc.

SBI Minimum Balance Account 

Saving bank account – SBI has  divided the average minimum balance requirement into three categories based on the area as follows:

  • Metro areas: In metro cities like Delhi the minimum balance is ₹3000 in Saving account.
  • Semi urban areas: In these Cities the minimum balance is ₹ 2000 in saving account.
  • Rural areas: In rural areas the minimum balance is ₹ 1000 .

Current Account  

  • Regular Current Account: The minimum balance in current account in SBI is ₹ 10,000 with non maintenance charges as ₹5000 in non rural and ₹2500 in Rural areas.
  • Power Gain Current account: In this a minimum balance is of ₹ 20000.
  • Power pack Current Account: A minimum balance of ₹ 5,00,000 per month.
  • Power PoS Current account: A minimum balance of ₹5000 per month.
  • Surbhi Current account: a minimum balance of ₹ 10,000 per month.
  • Power Jyoti  Current Account: A minimum balance ₹ 50,000 per month.
  • Power Jyoti pulls current account:  a minimum balance of ₹ 50,000 per month.

SBI Zero Balance Account

SBI zero balance account is the one in which at the time of opening the bank account no minimum balance is required . Also additional facilities like an ATM card and deposit and withdrawal facilities are provided free of cost 

Features of zero balance account

  • Same interest rate as that of regular savings bank accounts is offered by SBI.
  • Cash withdrawal and ATM withdrawal are also allowed. Minimum 4 cash withdrawals free of cost in a month is allowed including ATM withdrawal at own and other accounts.

Conclusion 

Current account is an important feature for promoting business groups ,firms and budding entrepreneurs. The features of unlimited transactions ,high fluidity , legitimacy and transparency will add to promoting the concept of ease of doing business.