Current Account is primarily meant for businessmen, firms, companies, 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: