Why do businesses in India open a current account?

Did you know that in India, businesses usually have a different account than the regular savings account used by many of us?  You must have heard about current accounts. To address their increased financial needs, businesses in India usually have a current account associated with their banks. 

What makes businesses open a current account? 

A current account provides benefits and lucrative deals which are well-suited for the companies. With a current account, a company can enjoy customized and tailor-made services. A current account enables all kinds of businesses to carry out their financial transactions of high amounts and also provides a range of other benefits that are specifically suited to these businesses. 

The best part of opening a current account in recent times is the fact that you do not have to visit the bank most of the time. You can simply get everything done through your mobile phone or a computer, even online current account opening. Banks also treat these accounts with utmost care and ensure that you do not face any difficulty in your banking journey with them.

While using a current account, your cheques and drafts bear the name of your business. This helps in increasing your brand value and adds to the visibility of your business. It looks professional and authentic, giving your business a professional edge. 

Know a few other perks of a current account 

A current account may also be helpful in boosting your credit score. There may inevitably come a time when you will look to grow your business and need loans. A bad credit score in such a case may not be helpful. Your current account depicting correct financial flows may help in having a satisfactory credit score and determine your creditworthiness. A healthy and sound current account statement can help you get loans and improve your credit score, provided you repay these loans in a timely manner. 

Many banks offer free of cost folio charges, free demand draft facilities, lucrative overdraft facilities, significant number of free cheque books, waivers for many other services. After this amount of free cheques and demand draft is met, you may need to pay nominal fees to back extra quantities of these. 

If you thought that the list of services was over, then you’re wrong. For current accounts, banks provide a host of other services. There are varied benefits and value-based services associated with a current account. They may provide free financial advisory services, ease in foreign trading, special Forex rates, etc. While some of these services are free of cost, to avail other advanced services, additional charges may be levied. You may contact your respective bank to know more about the charges associated with their services.

In India, a current account has many features and facilities that can address and cater a business’s needs providing them a seamless experience. This is a major reason for Indian businesses to open a current account.

Disclaimer: The above article is subjective and generic in nature. The facilities offered by your bank and their features may or may not differ from those mentioned above