Best 17 Current Bank Accounts in India for Small Businesses
When it comes to managing finances for your small business, having a reliable and efficient current bank account is crucial. A good current account provides various features and benefits tailored to meet the specific needs of small businesses. In this article, we will explore some of the best current bank accounts in India for small businesses.
Table of Contents
What is a Current Bank Account?
In India, a current bank account is a type of financial account provided by banks to individuals and businesses for conducting frequent and large transactions. Unlike savings accounts, which are designed for personal savings and have limitations on transactions, current accounts are primarily meant for business or commercial purposes.
Key Features of a Current Bank Account in India
a) Business Transactions
Current accounts are widely used by businesses, companies, and entrepreneurs to manage their day-to-day financial activities. These accounts are suitable for conducting a large number of transactions, making payments, and receiving funds regularly.
b) No Interest Earned
Unlike savings accounts, current accounts generally do not offer any interest on the deposited amount. The primary purpose of a current account is to facilitate smooth and convenient transactions rather than accrue interest on the balance.
c) Overdraft Facility
Many current accounts come with an overdraft facility, allowing account holders to withdraw more than the available balance, up to a specified limit. This feature is beneficial for businesses to manage temporary cash flow gaps.
d) High Transaction Limits
Current accounts often have higher transaction limits compared to savings accounts, enabling businesses to handle large volumes of transactions efficiently.
e) Online Banking Services
Most banks provide online banking services for current accounts, allowing account holders to manage their finances, make payments, and access account statements conveniently.
f) Minimum Balance Requirement
Some banks may require a minimum balance to be maintained in a current account. However, this requirement varies among different banks.
g) Customized Solutions
Banks may offer additional services and features tailored to the needs of businesses, such as business loans, trade finance, and other commercial banking services.
h) Regular Account Activity
Current accounts are suited for entities that have regular financial transactions, including payments to suppliers, salary disbursements, and receipt of customer payments.
i) Foreign Exchange Services
Some banks offer foreign exchange services to facilitate international business transactions.
j) Merchant Services
Current business account holders may access merchant services to accept card payments from customers.
k) Business Loans and Credit Facilities
Banks may extend credit facilities, such as working capital loans and business overdrafts, to eligible account holders.
List of 17 Current Bank Accounts in India
1. HDFC Bank Business Current Account
HDFC Bank offers a range of current account options for small businesses. It includes Regular Current Accounts, Trade Current Accounts, and Premium Current Accounts. These accounts come with features like Internet banking, mobile banking, cash deposit and withdrawal facilities, and customized solutions for different business segments.
Types of Current Bank Accounts Offered by HDFC Bank:
- Regular Current Account
- Premium Current Account
- Trade Current Account
- Apex Current Account
- Plus Current Account
Important Benefits:
- Zero balance facility
- Free NEFT/RTGS transactions
- Internet banking and mobile banking
- Dedicated relationship manager
- Trade and forex services
2. ICICI Bank Current Business Account
ICICI Bank provides business current accounts designed to cater to the unique requirements of small businesses. Their offerings include Easy Business Current Account, Regular Current Account, and Business Advantage Account. These accounts come with benefits like free NEFT/RTGS transactions, business debit cards, and convenient banking services.
Read: How to Open a Business Bank Account in India
Types of Current Bank Accounts Offered by ICICI Bank:
- Current Regular Account
- Newly created current account
- Current Account for Subhaarambh
- Business Account, Smart
- Gold Smart Business Account
- Gold Roaming Current Account
- Roaming Current Account Standard
Important Benefits:
- Multiple current account variants to choose from
- Competitive interest rates on balances
- Free NEFT/RTGS transactions
- Online banking and mobile banking
- Trade and forex services
3. Axis Bank Business Advantage Current Account
Axis Bank’s Business Advantage Current Account is designed to provide flexible banking solutions to small businesses. It offers benefits such as unlimited transactions, free inward remittances, doorstep banking services, and the option to avail overdraft facility based on the business’s transaction history and eligibility.
Types of Current Bank Accounts Offered by Axis Bank:
- Business Advantage Current Account
- Business Classic Current Account
- Business Privilege Current Account
- Business Prime Current Account
- Business Select Current Account
Important Benefits:
- Zero balance facility
- Free NEFT/RTGS transactions
- Internet banking and mobile banking
- Dedicated relationship manager
- Trade and forex services
4. State Bank of India (SBI) SME Business Current Account
SBI’s SME Business Current Account is tailored for small and medium-sized enterprises. It offers various benefits like unlimited free transactions, free multi-city checkbooks, personalized business debit cards, and online banking services. SBI also provides specialized solutions for different business sectors.
Types of Current Bank Accounts Offered by State Bank of India:
- SBI Basic Current Account
- SBI Regular Current Account
- SBI Shubharambh Current Account
- SBI Diamond Current Account
- SBI Platinum Current Account
- SBI Power POS Current Account
Important Benefits:
- Multiple current account variants to choose from
- Free NEFT/RTGS transactions
- Internet banking and mobile banking
- Overdraft facility
- Trade and forex services
Read: Top Personal Loan Banks in India
5. Standard Chartered Bank Business Current Account
Standard Chartered Bank offers a range of business current accounts. In addition, it includes features like free cash deposit and withdrawal facilities, online banking, and trade services.
Types of Current Bank Accounts Offered by Standard Chartered Bank:
- Business Account Plus
- Business Account Pro
- Business Account Elite
- Business Account Supreme
- Business Account Ultimate
Important Benefits:
- Free cash deposit and withdrawal facilities
- Online banking and mobile banking
- Trade services
6. Union Bank of India Business Platinum Current Account
Union Bank of India’s Business Platinum Current Account provides various benefits such as free NEFT/RTGS transactions, free monthly statements, and personalized banking services.
Types of Current Bank Accounts Offered by Union Bank of India:
- Union Classic Current Account
- Union Premium Current Account
- Union Trade Current Account
- Union Flexi Current Account
- Union Special Current Account
Important Benefits:
- Free NEFT/RTGS transactions
- Free monthly statements
- Personalized banking services
7. Canara Bank Business Current Account
Canara Bank offers business current accounts with features like internet banking, mobile banking, and options for availing overdraft facility based on the business’s requirements.
Types of Current Bank Accounts Offered by Canara Bank:
- Current Account – Small
- Current Account – Medium
- Current Account – Large
- Current Account – Flexi
- Current Account – Corporate
Important Benefits:
- Internet banking and mobile banking
- Overdraft facility
- Trade services
8. Federal Bank Business Current Account
Federal Bank’s Business Power Plus Current Account is designed to meet the banking needs of small businesses. It offers benefits like a zero balance facility, personalized business debit cards, and online banking services.
Types of Current Bank Accounts Offered by Federal Bank:
- Smart Current Account
- Basic Current Account
- Value Current Account
- Flexi Current Account
- Premium Current Account
Important Benefits:
- Zero balance facility
- Personalized business debit cards
- Online banking services
Read: Best Business Loans in India
9. Indian Bank Business. Current Account
Indian Bank’s Business Silver Current Account is suitable for small businesses with basic banking requirements. It provides features like free checkbook issuance, internet banking, and cash deposit and withdrawal facilities.
Types of Current Bank Accounts Offered by Indian Bank:
- Regular Current Account
- Premium Current Account
- Platinum Current Account
- Gold Current Account
- Diamond Current Account
Important Benefits:
- Free checkbook issuance
- Internet banking
- Cash deposit and withdrawal facilities
10. Kotak Mahindra Bank Start-Up Current Account
Kotak Mahindra Bank offers the Start-Up Current Account, specifically designed for new and emerging businesses. It comes with features like a zero balance facility for the initial six months, low minimum average balance requirements, online banking services, and discounted charges on various banking transactions.
Types of Current Bank Accounts Offered by Kotak Mahindra Bank:
- Edge Current Account
- Pro Current Account
- Ace Current Account
- Silk Current Account
- Global Trade Current Account
Important Benefits:
- Multiple current account variants to choose from
- Internet banking and mobile banking
- Free NEFT/RTGS transactions
- Trade and forex services
- Cash deposit and withdrawal facilities
- Multi-city checkbook facility
- 24×7 customer support
11. Yes Bank Business Value Current Account
Yes Bank’s Business Value Current Account is suitable for small businesses with low transaction volumes. It offers features like Internet banking, mobile banking, free monthly statements, and options for cash pick-up and doorstep banking services.
Types of Current Bank Accounts Offered by Yes Bank:
- Business Edge Current Account
- Business Select Current Account
- Business Value Current Account
- Business Advantage Current Account
- Business Platinum Current Account
Important Benefits:
- Internet banking
- Free monthly statements
- Cash pick-up and doorstep banking services
12. IDBI Bank Small Business Current Account
IDBI Bank provides the Small Business Current Account, which caters to the banking needs of micro, small, and medium-sized enterprises. It offers features like free checkbook issuance, internet banking, online fund transfer, and personalized banking services.
Types of Current Bank Accounts Offered by IDBI Bank:
- Current Account – Smart
- Current Account – Value
- Current Account – Premium
- Current Account – Elite
- Current Account – Signature
Important Benefits:
- Zero balance facility
- Free NEFT/RTGS transactions
- Internet banking and mobile banking
- Dedicated relationship manager
- Trade and forex services
13. IndusInd Bank Business Current Account
IndusInd Bank offers business current accounts with customized solutions for different business segments. Their accounts come with benefits like doorstep banking, online banking, trade and forex services, and business debit cards.
Types of Current Bank Accounts Offered by IndusInd Bank:
- Indus Edge Current Account
- Indus Plus Current Account
- Indus Select Current Account
- Indus Maxima Current Account
- Indus Exclusive Current Account
Important Benefits:
- Multiple current account variants to choose from
- Internet banking and mobile banking
- Competitive interest rates on balances
- Free NEFT/RTGS transactions
- Trade and forex services
- Personalized banking services
14. Punjab National Bank (PNB) General Current Account
PNB’s General Current Account is suitable for small businesses with regular banking needs. It offers features like Internet banking, mobile banking, free multi-city checks, and options for availing overdraft facilities.
Types of Current Bank Accounts Offered by Punjab National Bank:
- PNB Basic Current Account
- PNB Smart Current Account
- PNB Current Account Gold
- PNB Current Account Platinum
- PNB Current Account Diamond
Important Benefits:
- Multiple current account variants to choose from
- Free NEFT/RTGS transactions
- Internet banking and mobile banking
- Overdraft facility
- Trade and forex services
15. Bank of Baroda (BOB) Small Business Current Account
BOB’s Small Business Current Account is designed for small businesses. It offers features like Internet banking, mobile banking, cash deposit and withdrawal facilities, and personalized banking services.
Types of Current Bank Accounts Offered by Bank of Baroda:
- Baroda Small Business Current Account
- Baroda Regular Current Account
- Baroda Advantage Current Account
- Baroda Premium Current Account
- Baroda Elite Current Account
Important Benefits:
- Multiple current account variants to choose from
- Internet banking and mobile banking
- Competitive interest rates on balances
- Free NEFT/RTGS transactions
- Trade and forex services
- Cash deposit and withdrawal facilities
16. Bank of India Current Account
Bank of India (BOI) is an Indian public sector bank headquartered in Bandra Kurla Complex, Mumbai. The bank was founded in the year 1906. However, it got nationalized in the year 1969. BoI is a founder member of SWIFT (Society for Worldwide Inter Bank Financial Telecommunications).
Types of Current Bank Accounts Offered by Bank of India
- Star Small Business Account
- Star Flexi Account
- Star Diamond Current Account
- Star Gold Current Account
- Star Premium Current Account
Prominent Features:
- High Transaction Limit
- Cheque Book Facility
- Online Banking Services
- Mobile Banking
- Overdraft Facility
17. Deutsche Current Bank Account
Deutsche Bank is a global bank that operates in India and offers current accounts with specialized features for businesses. The bank provides a range of banking services, including international banking solutions and personalized support.
Types of Current Bank Accounts Offered by Deutsche Bank:
- Regular Current Account
- Premium Current Account
- Trade Current Account
- Professional Current Account
- Startup Current Account
Prominent Features:
- Wide range of current account options
- Convenient online banking facilities
- Integrated cash management solutions
- Competitive interest rates on balances maintained in the account
- Value-added services such as trade finance, forex services, and treasury solutions
- Access to a network of Deutsche Bank branches and ATMs
Please note that these are some of the key features, and it is advisable to review the specific features and terms of each bank account before making a decision based on your business needs.
Also, It must be mentioned here that the availability and specific features of these current business accounts may vary. Hence, it is advisable to contact the respective banks directly or visit their official websites for detailed information on each account type.
How to Open a Current Bank Account in India?
Opening a current bank account in India is a straightforward process. Here’s a step-by-step guide on how to open a current account:
⇒ Choose the Bank
Research and select a bank that aligns with your business requirements. Consider factors such as branch accessibility, online services, fees, and additional features.
⇒ Visit the Nearest Branch
Once you’ve chosen the bank, visit the nearest branch where you intend to open the current account. Some banks also provide online account opening services.
⇒ Contact the Relationship Manager
If you are a business owner or representing a company, it’s advisable to contact the bank’s relationship manager. They can guide you through the process and provide insights into the most suitable current account options.
⇒ Collect Required Documents
Gather the necessary documents required for opening a current account. These typically include:
- Aadhar card or other valid identity proof.
- PAN card.
- Address proof (utility bills, rental agreement, etc.).
- Passport-sized photographs.
- Business registration documents (for businesses).
⇒ Fill out the Application Form
Obtain the current account opening application form from the bank. Complete the form with accurate information. Ensure that all details match the information on your supporting documents.
⇒ Submit the Documents
Provide the filled application form along with the required documents to the bank officials. The bank may verify the documents for authenticity.
⇒ Choose the Type of Current Account
Different banks offer various types of current accounts based on business needs. Discuss your requirements with the bank representative to select the most suitable type of current account.
⇒ Minimum Balance Requirement
Be aware of the minimum balance requirement for the chosen current account. Some accounts may have a specific minimum balance criterion.
⇒ Sign the Agreement
Once your application is processed and approved, you will be required to sign the current account agreement. Ensure you read and understand the terms and conditions before signing.
⇒ Receive Account Details
Upon successful completion, you will be provided with the account details, including the account number and other relevant information.
⇒ Activate Online Banking
If the bank offers online banking services, request the activation of online banking for convenient account management.
⇒ Collect Cheque Book and Debit Card
If applicable, collect the cheque book and debit card associated with the current account. These are essential tools for conducting transactions.
Frequently Asked Questions
What documents are required to open a current account for a small business?
The required documents may vary from bank to bank. Generally, you would need documents such as business registration certificates, PAN cards, identity and address proofs of the business owners, and other business-related documents.
Can I open a current account online?
Many banks provide online account opening facilities. However, you may need to visit the bank branch to complete the verification process and submit the required documents.
Are there any charges associated with maintaining a current account?
Banks may charge certain fees for various services and transactions. It is advisable to check the bank’s fee schedule and understand the charges associated with the current account.
Can I link my current account with other financial services?
Yes, many banks provide integration services for linking your current account with payment gateways, credit card processing services, and other financial solutions. You can inquire about such services with your bank.
