The tendency of small business has been increasing across the world these days. One can do many small time businesses apart from regular job with less investment and time. So many public and private banks are coming to the fore to offer loans to these types of businesses. We shall discuss that later. Any business, small or big requires regular banking transactions. You need to deposit, pay, and withdraw for various business needs. But you can not do all these transactions through savings account. Current Accounts help you deal with huge number of financial transactions. These accounts are targeted for customers who have to carry out business and or large number of transactions in the account frequently.
Usually, Banks do not impose any restrictions on the number of transactions in current accounts. Banks are also having different types of current accounts with specific features and facilities. Customers can choose the variant of account based on their needs. There are certain KYC Norms for Current Account holders under section 35A of the Banking Regulation Act, 1949. The chief of banking system in India, RBI has issued far-sighted ‘Know Your Customer’ (KYC) guidelines flouting if any will pull towards penalization.
It is well noted that any service from Banks need huge documentation from the customers end. Necessary documents and certificates may vary depending upon the rules of the respective Banks. Usually following documents and proofs are required for opening Current Account with any bank: 1. Proof of Address – Ration Card, Electricity Bill, Telephone Bill, Bank Account Statements etc. 2. Proof of Identity- Passport copy, Driving License, Voter’s ID card, Govt. ID card, etc. 3. Proof of Income- PAN Card, Income details, IT returns, etc. 4. Professions – cum- Occupational details- Govt, Semi Govt. Private etc. Some banks may ask for any one proof from each category and other may require more than one as per their guidelines. The next step in getting a current account involves to be aware of facilities you will get for that account and on whose name account will be opened. These are discussed in next article.