Current Accounts: The Business Engine
A current account is the operational account for businesses and professionals — unlimited transactions, no transaction-count restrictions, but no interest on the balance, and a higher minimum balance requirement than savings accounts. This guide covers eligible entities and the business-proof documentation required to open one (GST registration, partnership deeds, MOA/AOA and board resolutions for companies), and explains Overdraft (OD) and Cash Credit (CC) facilities — both allowing drawdowns beyond the account balance with interest charged only on utilisation, with CC specifically tied to inventory/receivables-based drawing power. We cover a 2020 RBI circular aimed at preventing borrowers from routing transactions through current accounts at banks other than where they hold CC/OD facilities — relevant for any business banking with multiple institutions — and close with sweep-in/auto-sweep facilities that automatically move idle current account surplus into interest-earning fixed deposits (Topic 4), plus practical notes on cash-handling charges and digital/neo-banking current account platforms.