Starting a business, managing your freelance, or launching your own enterprise, a Current Account can help in several ways. You can keep your business dealings separate from your personal transactions and manage your income along with your outgoing funds swiftly.
The good news? You can now open a Current Account online without stepping into a bank. The process is far more streamlined today than it used to be. This blog will help you understand the documentation requirements and the process to open a Current Account online.
Why Consider a Current Account?
A Current Account is specifically designed for frequent transactions. You can deposit or withdraw money frequently without facing restrictions. Some Current Accounts also come with value-added services like Overdraft facilities, doorstep Banking, and bulk payment services. Zero balance Current Account may also be available in some instances. They are suitable for recently established startups and small businesses.
Who’s Eligible for a Current Account?
A wide range of entities can apply for a Current Account, including:
- Freelancers and consultants
- Sole proprietors
- Partnership firms
- Private and Public Limited Companies
- Trusts, associations, and societies
- Non-resident Indians (NRIs) can also open a Current Account with a different procedure.
Documents You’ll Need to Open a Current Account
Your list may vary slightly depending on the type of business or organisation, but here are some common documents requested:
- Personal Identity & Address Proof
- PAN Card
- Aadhaar Card, Passport, or Driving Licence
- Address proof like electricity or phone bills, rent agreements, or bank statements.
- Proof of Business
Depending upon your structure, this list may include:
- GST registration
- Shop and Establishment licence
- Udyam Registration (for small businesses)
- Certificate of Incorporation (for companies)
- Partnership Deed (for partnerships)
- Import/export code, if applicable
- KYC of Authorised Signatories
Banks will usually call for full KYC on all individuals who will operate the Bank Account, especially if they are new to the bank.
- Authorisation Documents
For firms and companies, this list may include:
- Board resolutions
- Authorisation letters confirming who will operate the Account
For those applying for a Zero-balance Current Account, banks may sometimes require fewer documents, but KYC and business proof documents are still necessary.
How to Open a Current Account Online?
Digital Banking has simplified the process considerably. Here is a simple process for opening a Current Account online:
- Choose a Suitable Bank
Every bank is different, with its own features, charges and minimum balances. Take your time and assess banks providing products to open Current Account online with ease. You may notice that many banks now have packages specifically targeting startups or owners of small businesses.
- Start Your Online Application
Visit your preferred bank’s website and navigate to the Current Account section. Complete the business and personal details as requested. Some banks will also have live chat or calling support staff if you require assistance with the application.
- Upload Your Identifying Documents
Scan and upload the documents mentioned above. All documents need to be clear, valid and up to date. Typically, if you are missing something, the platform will notify you about the same.
- Verification and KYC
Some banks carry out video KYC through a secure call, while others may request a follow-up visit. Aadhaar-based eKYC can speed things up in most cases as well.
- Account Approval and Activation
Once everything’s verified, you’ll receive your Account details by SMS or email. Digital access, like Mobile and Net Banking, usually becomes active almost immediately. Physical kits like a chequebook and a Debit Card may follow within a few days.
In Summary
If you’re searching for a Zero-balance Current Account, going online may simplify and speed up the process, as long as you have reliable internet access and are tech-savvy. Just ensure that you have all the requisite documents, take the time to understand the fine print, and select the bank that meets your business needs. After you set it up, you will have your Current Account right away for your day-to-day operations.
