A current account is the single biggest enabling instrument for any business: vendors and customers expect a CA-backed cheque or RTGS, the GST portal needs a CA for refund crediting in most cases, GeM and ONDC won't onboard you without one, and most loan facilities (CC, OD, term loan) attach to a CA. Picking the wrong product costs months of avoidable charges.

A Savings Account (SB) is for individuals — earns interest (typically 2.5–4.5% pa), restricted on free transactions, daily / monthly withdrawal caps, no overdraft by default.

A Current Account (CA) is for businesses, professionals, and certain institutions — earns no interest (RBI prohibits interest on CA balances under §21A of the Banking Regulation Act 1949 read with subsequent circulars), but offers:

• Unlimited deposits and withdrawals.
• Higher daily / per-transaction RTGS, NEFT, IMPS limits.
• Business cheque books (multi-leaf, account-payee cheques).
• Overdraft, cash credit, packing credit, LC/BG and trade-finance attachment.
• Bulk-transaction net banking (multiple-payee uploads).
• Customer-grade reconciliation reports.

Statutory anchors:

• Banking Regulation Act, 1949 — §5(b) defines banking; §21A regulates interest on deposits; §35A is RBI's directional power.
• RBI Master Direction — Know Your Customer (KYC) Direction, 2016 (as amended) — defines CDD (Customer Due Diligence) for businesses.
• RBI Master Circular on Branch Authorisation (revised periodically) — governs new account opening and branch operations.
• Companies Act, 2013 — §179 (powers of Board) requires a Board Resolution for opening a company account; §134 (signing of accounts).
• LLP Act, 2008 — Designated Partner authorisation needed for LLP accounts.
• Indian Partnership Act, 1932 — Partnership Deed is the basis for partnership account.
• Prevention of Money Laundering Act, 2002 (PMLA) — KYC/CDD obligations on banks for all accounts including CAs.

A 2020 RBI circular (“Opening of current accounts by banks — Need for discipline”) restricted opening of multiple CAs for the same borrower across different banks where the borrower has cash credit / overdraft facility above a threshold — this rule was significantly relaxed in subsequent updates but the discipline still applies (see “Common reasons” below).

• Lowest MAB tier — typically ₹5,000 to ₹25,000 (urban / semi-urban / rural variants).
• Cheque book + Business Debit Card + net banking.
• Limited free outward NEFT/RTGS, free cash deposit up to a monthly cap.
• For: small proprietors and early-stage partnerships.

• MAB ₹50,000 to ₹5,00,000+.
• Dedicated relationship manager.
• Free unlimited RTGS / NEFT / IMPS.
• Sweep-in / sweep-out into FD for idle balances.
• Free DD/cheque issuance up to a monthly cap.
• Forex / trade-finance desks.
• For: established mid-sized businesses with steady throughput.

• HDFC SmartUp — zero/low MAB for first 12-24 months; SmartUp Programme adds investor-network access, mentor connections.
• ICICI iStartup — three tiers (Platinum / Gold / Silver) with relaxed MAB and free investor-grade reporting.
• Federal Onesource — for new entities.
• Axis Liberty / Axis Startup CA.
• Kotak Mahindra Bank Startup CA.
• SBI Power Gain / Power Jyoti — PSU options for startup pricing in select cities.

• PSU bank “Power” series — Power Pack, Power Plus, Power Gain, Power Jyoti (SBI) — with PSU-friendly pricing for trust / society / government-supplier accounts.
• Society / trust / association of persons accounts have separate KYC norms and require trust deed / society registration.

• Identity: PAN of proprietor + KYC (Aadhaar / passport / driving licence + photo).
• Business proof — any TWO from this list (RBI norm):
  • GST registration certificate (GSTIN).
  • Udyam registration.
  • Shop and Establishment Act registration (state).
  • IEC (Importer Exporter Code) from DGFT.
  • Trade licence from local municipal body.
  • Professional licence (CA / advocate / doctor).
  • Latest ITR with the proprietorship name.
  • Utility bill / lease deed in the firm's name.
• Initial deposit: ₹0 to ₹10,000 typical.

• Partnership Deed — original (or notarised true copy). Registration with the Registrar of Firms is not mandatory for a CA but recommended.
• PAN of the firm (separate from partners' PANs).
• KYC of all partners (PAN + Aadhaar + photo + address proof).
• Registration certificate from Registrar of Firms (if registered).
• Authorisation letter signed by all partners specifying the operating partner(s) and signing rules (any one / both jointly / any two of three).
• GSTIN (if applicable).
• Initial deposit: ₹5,000 to ₹25,000.

• Certificate of Incorporation (LLP-IN) issued by MCA.
• LLP Agreement (registered with MCA).
• PAN of LLP.
• DIN/DPIN of all designated partners.
• KYC of all designated partners + passport-size photographs.
• Resolution signed by designated partners authorising the bank account opening and naming authorised signatories.
• Registered office proof.
• Initial deposit: ₹10,000 to ₹25,000.

• Certificate of Incorporation (CIN) from MCA.
• Memorandum of Association (MOA) + Articles of Association (AOA).
• Board Resolution under §179 of Companies Act, 2013 — specifically authorising the bank account opening, naming the bank, listing authorised signatories, and authorising the company seal usage if any.
• PAN of company.
• DIN of all directors.
• KYC of all directors + authorised signatories (PAN + Aadhaar + photo).
• List of directors in form DIR-12 (latest filing) or via MCA master data.
• Registered office proof + utility bill not older than 2 months.
• Specimen signatures of all authorised signatories.
• Beneficial ownership declaration (PMLA Rule 9A) — where any beneficial owner holds ≥10% in the company, declared with KYC.
• Initial deposit: ₹25,000 to ₹1,00,000.

• Trust Deed / Society Registration / Bye-laws (registered).
• PAN of trust / society / AOP.
• Resolution of trustees / managing committee.
• KYC of trustees / office bearers + photographs.
• 12A / 80G certificates (if applicable, for tax exemption).

• Compare 3-4 banks online. Look at: MAB tier, free transaction caps, monthly maintenance + breach charges, foreign-remittance fees, integration with your accounting software (Tally / Zoho / QuickBooks).
• For startup or new Pvt Ltd, explicitly ask for the startup variant (SmartUp / iStartup) — branch officers default to standard product.
• Choose a branch close to your office, with reasonable footfall (cash deposits + cheque clearance speed depend on branch operations).

• Most banks now offer doorstep CA opening via web form: hdfcbank.com / icicibank.com / sbi.co.in → “Open Current Account” → fill the lead form → an RM calls within 24-48 hours.
• RMs can pre-validate your document set, saving a wasted branch visit.

• Originals + at least 2 self-attested photocopies of each.
• Photographs of all authorised signatories.
• Initial deposit cheque (drawn on the proprietor / company existing account) or cash (within RBI-permitted limits).

• The bank's AOF is entity-specific (separate forms for Proprietor / Partnership / LLP / Pvt Ltd).
• Fill carefully — name as per PAN, address as per registered office, product code (basic / premium / startup) clearly marked.
• Beneficial Owner declaration (Form CDD-BO).
• FATCA / CRS declaration.

• Branch visit to the registered office address — for Pvt Ltd / LLP / partnership, the bank's officer (or a panel agency) physically verifies the office.
• Video KYC — for proprietors, increasingly available end-to-end digital (Yes Bank, Federal, Kotak 811 Business, RBL).
• Document verification — bank validates Certificate of Incorporation against MCA21, GSTIN against GST portal, PAN against IT database.

• Account number is generated in the core banking system within 1-3 days of complete documentation.
• Welcome kit dispatched: cheque book (typically 50 leaves), Business Debit Card, net banking credentials envelope, MAB schedule.
• Time: total 5-15 working days for most cases; faster for startup variants of private banks; slower for PSU banks if registered office verification takes time.

• Reset the net banking password on first login.
• Set up payee approvals (maker-checker workflow for Pvt Ltd / LLP).
• Enable IMPS, RTGS, NEFT.
• Order MICR account-payee cheque book if the welcome kit's default doesn't match your need.

• Update bank account on GST portal under “Amend Non-Core Fields” → for refund credit.
• Update vendor master with all your suppliers.
• Update payroll software (employee bank credit run will use this account).
• Add account to GeM (gem.gov.in) under “Banking Details”.
• Update PAN-Aadhaar-bank linkage on the Income Tax e-filing portal if this will be the primary account for any income.

+------------------------------------+---------------------------------------+
| Basic CA — PSU bank (urban)        | MAB ₹5,000 – ₹10,000                  |
|                                    | Breach charge ₹100-₹500/month + GST   |
+------------------------------------+---------------------------------------+
| Basic CA — Private bank (urban)    | MAB ₹10,000 – ₹25,000                 |
|                                    | Breach charge ₹500-₹750/month + GST   |
+------------------------------------+---------------------------------------+
| Premium CA — Private bank          | MAB ₹50,000 – ₹5,00,000               |
|                                    | Free unlimited RTGS/NEFT, RM, sweep   |
+------------------------------------+---------------------------------------+
| Startup CA — HDFC SmartUp          | ₹0 MAB year 1; ₹10,000 from year 2    |
+------------------------------------+---------------------------------------+
| Startup CA — ICICI iStartup        | ₹0 MAB up to 12 months;               |
|                                    | tiered thereafter                     |
+------------------------------------+---------------------------------------+
| Cheque book                        | First 25-50 leaves free; subsequent   |
|                                    | ₹2-₹5 per leaf                        |
+------------------------------------+---------------------------------------+
| Business Debit Card                | Free issuance; ₹500-₹1,000 annual fee |
+------------------------------------+---------------------------------------+
| Cash deposit (free monthly cap)    | ₹1,00,000 – ₹10,00,000 depending on   |
|                                    | product; above cap ₹3-₹5 per ₹1,000   |
+------------------------------------+---------------------------------------+
| RTGS / NEFT — net banking          | NIL (RBI mandate since Jan 2020)      |
+------------------------------------+---------------------------------------+
| RTGS / NEFT — branch               | NIL for net banking; ₹25-₹50 branch   |
+------------------------------------+---------------------------------------+
| IMPS                               | ₹3.50 – ₹15 per txn (slab-based)      |
+------------------------------------+---------------------------------------+
| Initial deposit                    | ₹0 (startup) to ₹1,00,000 (premium)   |
+------------------------------------+---------------------------------------+
| Time to open (full KYC clean)      | 5 – 15 working days                   |
+------------------------------------+---------------------------------------+
| RTI for PSU bank PIO               | ₹10 by IPO; BPL = free                |
+------------------------------------+---------------------------------------+

• Certificate of Incorporation not yet downloaded. MCA portal is glitchy at times — re-download from mca.gov.in → Master Data → CIN search → Download CoI.
• Partnership Deed unstamped or insufficiently stamped. State-specific stamp duty applies. Get adjudication from the Stamp Office before submitting.
• Rent agreement < 11 months / unregistered. Banks require a 11-month minimum registered rent agreement for office address proof. If your landlord refuses to register, get a notarised lease + electricity bill in firm's name.
• Multiple signatories not all KYC-compliant. One director's Aadhaar address differs from PAN — fix on UIDAI portal, then re-submit.
• GSTIN not active or under suspension. Reactivate on GST portal first.
• Beneficial owner declaration missing for any individual / entity holding ≥10%. PMLA mandate.
• Existing CA at another branch of same bank — RBI's “current account discipline” framework lets banks open additional CAs but with notification to the lending bank if there's a CC/OD facility above threshold. Disclose all existing accounts.
• Board Resolution not in correct format. Most banks have a template — use it verbatim. Free-form resolutions get rejected.
• DIN of any director marked as “Disqualified” — check on MCA21. A disqualified director cannot sign for the company.
• Specimen signatures inconsistent with PAN-database signatures. Banks have started cross-verifying.
• Initial deposit cheque bounces or is from an unrelated party. Use a cheque from the proprietor / company's existing account, or cash within limits.
• Annual ROC filing default for Pvt Ltd / LLP — banks pull MCA compliance status before opening; outstanding AOC-4 / MGT-7 / Form 11 will block.

• Submit a written complaint at the branch with date, AOF reference, names of officers spoken to, and the specific blocker.
• Get an acknowledgement number within 24 hours under RBI Internal Ombudsman rules.

• Each bank publishes a Principal Nodal Officer with name + email + phone for grievance redressal. Find on the bank's grievance page.
• 30-day SLA.

• RBI Integrated Ombudsman Scheme 2021 — covers all scheduled commercial banks.
• File at https://cms.rbi.org.in.
• Helpline: 14448.
• No fee. Award binding on the bank up to ₹30 lakh.
• Pre-condition: written complaint to bank first + 30 days elapsed without resolution.

• For systemic complaints (e.g., a bank consistently refusing to open CAs for a specific entity type) — file with RBI's Department of Regulation through CMS.

• https://pgportal.gov.in → “Department of Financial Services” or “Reserve Bank of India”.
• Higher visibility.

This is where the public-vs-private distinction matters.

RTI helps here when:

• Your CA application is at a PSU bank (SBI, BoB, PNB, Canara, Union, BoI, Indian Bank, Central Bank, etc.) — public authorities under §2(h) RTI Act 2005. Ask the PIO of the relevant Circle / Zonal office for: status of your AOF, dealing officer name + designation, internal note recording the reason for delay or rejection, audit trail of KYC pulls, branch verification report.
• RTI to PIO Reserve Bank of India for: bank-wise CA opening grievance statistics, regulatory clarifications on a specific RBI Master Direction provision.
• RTI to PIO MCA for delays in your CIN / company status update (which the bank is dependent on).

RTI does NOT help here when:

• Your CA application is at a private bank (HDFC, ICICI, Axis, Kotak, IndusInd, RBL, Yes, Federal, Bandhan, etc.). These are not “public authorities” under §2(h) RTI Act and the Supreme Court has consistently held so. PIOs cannot compel them.
• For private banks, the binding route is RBIOS at https://cms.rbi.org.in — that order is binding on them (with appeal to RBI).
• For NBFCs offering CA-like products (Razorpay X, Open, Karbon — fintechs that operate via partner banks): file with the partner bank's Internal Ombudsman / RBIOS.
• For interpretation (“is this MAB charge fair?”) — opinion, not record. Use Ombudsman.
• For pre-emptive (“the account is not yet rejected, I want internal notes”) — fishing; PIOs refuse under §8(1)(j) RTI Act.

For the RTI procedure see RTI in 12 simple steps.

Q. Can I open a Current Account online, end-to-end, without visiting a branch?
For proprietors, yes — Yes Bank, Federal Onesource, Kotak 811 Business, RBL, IndusInd offer Video KYC end-to-end. For Pvt Ltd / LLP / partnership, most banks still require an in-person verification visit by a panel agency; the application can be initiated online but a verification visit is mandated.

Q. How many Current Accounts can a single business have?
No legal cap, but RBI's “Current Accounts Discipline” framework (originally August 2020, revised subsequently) requires that a borrower with a Cash Credit / Overdraft above a threshold (₹50 crore aggregate banking exposure last benchmark) maintain its CA only with the lending bank or in an escrow-compliant arrangement. For most small businesses, you can hold multiple CAs across banks freely — disclose all of them in each AOF.

Q. Is GSTIN mandatory to open a Current Account?
No — GST is required only if your turnover is above the GST threshold (₹40 lakh / ₹20 lakh / ₹10 lakh depending on state and supply type). Below the threshold, you can open a CA with Udyam + Shop Act + ITR as business proof. See Apply GST registration.

Q. What is MAB and what happens if I breach it?
Minimum Average Balance is the average end-of-day balance you must maintain across the calendar quarter (or month, depending on product). If you breach it, the bank levies a breach charge (₹100-₹750 + GST per month, product-dependent). Track the MAB requirement on Day 1 and pre-fund accordingly.

Q. Can I earn interest on my Current Account balance?
No — RBI prohibits interest on CA balances under §21A of Banking Regulation Act, 1949. To earn yield on idle CA money, set up a Sweep-In FD (auto-sweeps balance above a threshold into a 7-day FD).

Q. Why does the bank ask for both Aadhaar and PAN — isn't one enough?
Both are required under PMLA Rules and RBI KYC Master Direction. PAN is the financial identifier; Aadhaar is the identity / address proof (with masking, per Aadhaar Act §7 and the SC's Puttaswamy ruling on PMLA-banking use).

Q. The bank refused my CA application without giving any reason. Is that allowed?
No — RBI's Charter of Customer Rights mandates written reasons for refusal of any banking service. Insist in writing. If still refused, escalate to the bank's nodal officer → RBIOS.

Q. My Pvt Ltd Co's CA is at HDFC. Can I file an RTI on HDFC about my account opening delay?
No. HDFC is a private bank and is not a public authority under §2(h) RTI Act 2005. File with HDFC's Internal Ombudsman first; if unsatisfied, RBIOS at https://cms.rbi.org.in (helpline 14448). The RBIOS award binds HDFC.

Q. Switched from HDFC to SBI Power Gain. How do I close the old CA?
See How to close a bank account — complete 2026 guide.

• How to close a bank account — complete 2026 guide
• How to apply for GST registration — complete 2026 guide
• How to register Udyam MSME — complete 2026 guide
• How to apply for an MSME business loan with CGTMSE
• RTI in 12 simple steps — for first-time filers
• All Indian government helplines — one master directory
• RTI forms + state-wise fee chart

Last reviewed: 26 April 2026 by RTI Wiki editorial team. KYC norms and current account discipline rules are revised periodically by RBI — verify on rbi.org.in or write to admin@bighelpers.in if you spot a stale figure.