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2012-01-18 00:00:00Money & FinanceEnglishDid you know you need a current bank account to start a business? Here are features that can help you run your business with a current bank... Features of a Current Account

Awesome Features of a Current Account

2 min read

Awesome Features of a Current Account

One of the compulsory requirements when starting a business is to open a Current Bank account. This account type is ideal for carrying out day-to-day business transactions. And with more and more banks dishing out attractive features to provide customers and businesses with a multitude of choices. Facilities like 24-hour Phone-Banking, Net-Banking, Doorstep-Banking, Instant Alert services, free Demand-Drafts/Pay-Orders are commonplace and almost ‘by default’ these days.

However, there are several other special features and benefits which banks offer that can significantly help your regular business activities. Start by assessing your business requirements and then negotiate better terms/features with your banker so that your current account gives you premier service. Below are some features that help a business function seamlessly:

Payments and Collections through NEFT:

National Electronic Funds Transfer (NEFT) is a nation-wide payment system facilitating one-to-one funds transfer. Under this scheme, individuals, firms and corporates can electronically transfer funds from any bank branch to any individual, firm or corporate having an account with any other bank branch in the country participating in the scheme either free or at marginal rates, thus easing business transactions.

RTGS Collection: RTGS (Real Time Gross Settlement) system facilitates the online transfer of high-value funds between bank customers of different banks on a real-time basis. Once again, like the NEFTs, RTG could be free or at nominal rates, differing from bank to bank.

Flexi-Seasonal Benefits: Many banks also offer flexibility to the current accounts for businesses that have changing banking needs during peak seasons. Hence, during peak seasons, there is the benefit of higher transaction limits due to the higher average balances maintained in your account. And during lean seasons, you need not bother about maintaining huge balances to enjoy high transaction limits, which you may not need.

Manage Foreign Currency: Foreign currency accumulated through business trips abroad or earned through means as approved by the RBI can be managed by your banker. Many banks offer to:

    o Maintains a record of your foreign exchange transactions through monthly statements.
    o Give you preferential rates when converting your foreign currency into Indian Rupees.
    o Protect you from loss of money due to exchange rate fluctuations.

Special benefits for Exporters and Importers:

Banks also offer exporters and importers special banking solutions like — “zero balance” account that enables you to utilize your financial resources more effectively, no commitment of quarterly average balance, free inward remittance, no charges on Foreign Inward Remittance Certificate (FIRC) or Bank Realisation Certificate(BRC) issuance.

With the business environment becoming more and more competitive together with the advances in the field of information technology, a whole world of possibilities has opened up for businesses in India, whether starting or growing.

To keep pace with changing times and needs, banks are evolving their offering to their business clients. Your business, therefore, stands to gain. Simply assess your banking needs and call your banker. Chances are that, your bank will have a solution for all your current account requirements.

Information may be abridged and therefore incomplete. This document/information does not constitute, and should not be considered a substitute for, legal or financial advice. Each financial situation is different, the advice provided is intended to be general. Please contact your financial or legal advisors for information specific to your situation.

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