Current accounts designed for businesses ensure a smooth financial transaction across various mediums. While savings accounts are popular among individuals, a current account is generally for business purposes. Let us take a deeper look at what is a current account.
What is a Current Account?
A Current Account is a bank account primarily intended to meet the demands of companies. Current accounts provide higher transaction limitations on cash deposits and withdrawals for businesses. Individuals, sole proprietorships, partnership firms, private and public limited corporations, HUFs/specified organisations, societies, trusts, and so on can all create a current account.
Features of Having a Current Account
Small, medium, and large businesses all deal with a high volume of transactions regularly. Effective cash management is critical to developing a successful business, so having a current account is essential. Here are some key features of having a current account:
Net Banking Facility: With digital transformation, traditional banking has evolved significantly. Net Banking has transformed the way individuals manage their finances. From quick free fund transfers to updating your bank account balance, Kotak Net Banking lets you conduct various financial activities remotely with its user-friendly interface.
Mobile Banking Facility: Mobile banking lets you manage your finances on the go. With advanced security measures, you can apply for a loan, regularly track your bank balance, and do much more with just a few clicks and taps. Enter the unique MPIN and start your financial activity.
Cheque Books: Cheque Books remain a primary source of business transactions, and with current accounts, they provide a reliable and efficient payment source. Vendors who prefer digital sources of payment also use this source.
Earn Interest: Unlike any other Current Account offered by various banks, Kotak lets you earn up to 7%* interest p.a. with ActivMoney Current Account on your idle funds. It makes it a superior choice for businesses to apply with Kotak's Current Account.
ATMs: ATMs are essential for customers as they provide a wide range of features to help them meet their needs effectively- Like cash withdrawals, deposit services, balance updates, etc. ATMs play a significant role in day-to-day financial activities. With the Kotak Business Power Platinum Debit Card, you can enjoy a daily ATM cash withdrawal limit of Rs. 1.5 Lakh
Overdraft Facility: An overdraft facility is a financial arrangement banks provide to Current Account holders that allows them to withdraw amounts more than the available balance in their accounts up to a specified limit. This facility gives account holders temporary access to additional cash, allowing them to borrow money from the bank as needed.
Benefits Of Having A Current Account
The prime benefit of having a current account is facilitating smooth business transactions. A current bank account is one of the most important requirements for beginning a business. Nowadays, banks provide a variety of appealing offers and incentives on current Accounts to meet the diverse business demands.
Convenience: The Current Account is a simple way to manage your business finances by allowing users to make seamless transactions and receive payments from various channels, such as net banking and mobile banking. This accessibility means the account users may make transactions whenever and wherever they need to, regardless of regular banking hours.
Comprehensive Record Keeping: For businesses, it is necessary to maintain a record of payments received and made. Current accounts keep a detailed record of financial activities, allowing account users to manage their income, spending, and cash flow efficiently. Most banks offer monthly account statements to reconcile with their account accuracy.
Money Management: Current Account offers flexible money management with the freedom to access one’s funds anytime. The users can move surplus funds to their investment accounts to grow their portfolios. With the Kotak Business Power Platinum Debit Card, you can avail of a purchase limit of Rs 3 lakh daily. Also, Kotak's online current account has no maintenance charges, making it an ideal choice for various businesses.
Other Details of the Current Account: There is no interest rate in the Current Account. Current Account Interest Rates are 0 in all the banks.
The Current Account documents required are mandatory to present to the bank’s executive to open a current account for your business. Documents like PAN cards, Aadhaar cards, Business proofs, and more are mandatory.
Current Account Eligibility Criteria are versatile. From sole proprietors to HUFs to foreign companies, everyone is eligible to apply for a Current Account.
Conclusion
A Current Account provides several advantages for professionals, associations, groups, and trusts. The account's liquidity and flexibility make it indispensable for business. With attractive benefits and round-the-clock access, one can avail of the features through a Current Account
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This Article is for information purposes only. The views expressed in this Article do not necessarily constitute the views of Kotak Mahindra Bank Ltd. (“Bank”) or its employees. Bank makes no warranty of any kind with respect to the completeness or accuracy of the material and articles contained in this Newsletter. The information contained in this Article is sourced from empanelled external experts for the benefit of the customers and it does not constitute legal advice from Kotak. Kotak, its directors, employees, and contributors shall not be responsible or liable for any damage or loss resulting from or arising due to reliance on or use of any information contained herein.
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