Meaning of Current Bank Account ↓
Current banking concern concern human relationship is opened yesteryear businessmen who accept a higher unwrap of regular transactions amongst the bank. It includes deposits, withdrawals, in addition to contra transactions. It is too known equally Demand Deposit Account.
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Current concern human relationship tin survive opened inwards co-operative banking concern in addition to commercial bank. In current account, total tin survive deposited in addition to withdrawn at whatsoever fourth dimension without giving whatsoever notice. It is too suitable for making payments to creditors yesteryear using cheques. Cheques received from customers tin survive deposited inwards this concern human relationship for collection.
In India, electrical flow concern human relationship tin survive opened yesteryear depositing Rs.5000 (approx. USA $ 100) to Rs. 25,000 (approx. USA $ 500). The customers are allowed to remove the total amongst cheques, in addition to they unremarkably produce non larn whatsoever interest. Generally, electrical flow concern human relationship holders produce non larn whatsoever involvement on their residue lying inwards electrical flow concern human relationship amongst the bank.
Current concern human relationship holder larn i of import payoff of overdraft facility.
Features of Current Bank Account ↓
The master copy features of current account are equally follows:-
- Current banking concern accounts are operated to run a business.
- It is a non-interest bearing banking concern account.
- It needs a higher minimum residue to survive maintained equally compared to the savings account.
- Penalty is charged if minimum residue is non maintained inwards the electrical flow account.
- It charges involvement on the short-term funds borrowed from the bank.
- It is of a continuing nature equally in that place is no fixed menstruation to concord a electrical flow account.
- It does non promote saving habits amongst its concern human relationship holders.
- Banker requires KYC (Know your Customers) norms to survive completed earlier opening a electrical flow account.
- The master copy objective of electrical flow banking concern concern human relationship is to enable the businessmen to demeanor their concern transactions smoothly.
- There is no restriction on the unwrap in addition to total of deposits.
- There is too no restriction on the unwrap in addition to total of withdrawals made, equally long equally the electrical flow concern human relationship holder has funds inwards his banking concern account.
- Generally, banking concern does non pay whatsoever involvement on electrical flow account. Nowadays, or in addition to thence banks produce pay involvement on electrical flow accounts.
Advantage of Current Bank Account ↓
The advantages of electrical flow concern human relationship are equally follows:-
- Current concern human relationship is mainly opened for businessmen such equally proprietors, partnership firms, world in addition to individual companies, trust, association of persons, etc. that has a large unwrap of daily banking transactions, i.e. receipts and/or payments.
- It enables businessmen to send out their concern transactions properly in addition to promptly.
- The businessmen tin remove from their electrical flow accounts without whatsoever limit, plain of written report to banking cash transaction tax, if whatsoever levied yesteryear the government.
- Home branch is that place where i opens his banking concern account. There are no restrictions on deposits made inwards the electrical flow concern human relationship opened inwards a dwelling menage branch of a bank. However, the electrical flow concern human relationship holder tin deposit the cash from whatsoever other branch of a banking concern other than the dwelling menage branch yesteryear paying a nominal accuse equally applicable.
- It helps businessmen to brand a forthwith payment to their creditors yesteryear issuing cheques, demand-drafts or pay-orders, etc.
- It enables a banking concern to collect coin on behalf of its customers in addition to credits the same inwards their customers' electrical flow accounts.
- It enables the electrical flow concern human relationship holder to obtain overdraft (short-term borrowing) facility.
- The creditors of the concern human relationship holder tin larn credit-worthiness data of the concern human relationship holder through inter-bank connection.
- It facilitates the industrial progress of the country. Without its help, businessmen would confront difficulties inwards running their businesses.
- It has the facilities of Internet-banking in addition to mobile-banking to send out of import concern transactions amongst ease in addition to quickly.
- It too provides diverse other advantages (benefits) such as:
- Deposit in addition to withdrawal of coin (cash) at whatsoever location.
- Multi-location funds transfer,
- Electronic funds transfer,
- Periodical (monthly, quarterly or yearly) electronic mail or download of banking concern statements inwards diverse formats similar '.XLS', '.TXT', '.PDF', etc.
- Support from client tending executives.
Articles On Banking Terms ↓
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- blogspot.com//search?q=recurring-deposit-account-in-bank">How to Open Bank Account ? seven Steps To Open Bank Account
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