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    What Is A Current Account?

    A Current Account is exclusively meant for businesses. They provide more transaction limits on monthly cash deposits/withdrawals (both within the city and outside), providing flexibility in financial management for ventures.

    What Are The Features of a Current Account?

    The biggest highlight of a Current Account is its freedom in transactions and overdraft facility. Funds are always available to the account holder at any time. They do not earn any interest on it, though. Account holders can make numerous withdrawals and deposits in their account, in addition to no restrictions being imposed on the number of cheques issued to businesses by banks or the number of online transfers done by the bank via Internet Banking.

    The Different Types of Current Accounts

    Here are some of the different types of Current Account optimized for different types of businesses:

    Standard/Regular Current Account: It is best suited for those businesses conducting a moderate number of transactions. It is one of the most basic types with several advantages. New account holders receive services like e-Banking and RTGS/NEFT transactions and must maintain a specific minimum balance when operating it.

    Premium Current Account: One of the most highly preferred ones amongst all types of Current Accounts, this one suits businesses with large turnovers. Businesses conduct many transactions daily. Such enterprises benefit most from this type of account, with most banks offering customised and flexible services to customers and helping businesses optimise returns.

    Global-Trade Current Account: Businesses and companies conducting international transactions prefer Global-Trade Current Accounts. Transactions can occur either in the form of goods and services or even involve foreign currency, and the benefits available through the Global-Trade Current Account let businesses conduct international transactions hassle-free.

    Start-Up Current Account: Start-Up Current Accounts help new businesses or start-up owners by allowing some leeway in maintaining the minimum balance, which is especially beneficial for small scale industries. Additionally, these allowances can help new business owners manage their finances better. Some banks also offer account holders certain services that can improve the businesses functioning and growth.

    The Importance of a Cancelled Cheque

    Cancelled cheques  prove the existence of bank accounts necessary for several financial transactions. Cancelled cheques also serve as proof of identity, as the name and address printed on the cheque and the bank stamp are proof of the account holder’s identity.

    It is also critical for other reasons, including verification of the account and account holder’s identity, which is necessary for conducting financial transactions and protecting against fraud and scams. Another reason is the convenience of not having to show additional documentation.

    Follow the steps below to present a cancelled cheque to the bank in which you intend to open a Current Account:

    1. Take a blank cheque
    2. Draw two parallel lines across the cheque . Ensure that the lines do not camouflage important information such as account number, IFSC code, MICR code, account holder’s name, bank’s name, or location.
    3. Write “CANCELLED” between the two parallel lines.

    Different types of Current Accounts function on different parameters and services to serve different businesses. Understanding them can help you select the best one for your business. Compare different banks with their services to choose the best one for you.

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