{"id":6169,"date":"2022-05-13T18:26:05","date_gmt":"2022-05-13T12:56:05","guid":{"rendered":"https:\/\/razorpay.com\/learn\/?p=6169"},"modified":"2023-01-06T18:00:58","modified_gmt":"2023-01-06T12:30:58","slug":"features-of-current-accounts-for-business","status":"publish","type":"post","link":"https:\/\/razorpay.com\/learn\/business-banking\/features-of-current-accounts-for-business\/","title":{"rendered":"Top 5 Features of Current Accounts for Businesses"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">A current account is an essential banking requirement for all businesses. It allows them the flexibility to carry out a large number of transactions while offering services built specifically for business needs.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">We\u2019ve put together a short guide to the features of current accounts to help you understand how they help streamline financial operations for your business.\u00a0<\/span><\/p>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_80 counter-hierarchy ez-toc-counter ez-toc-transparent ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-69d9014b32162\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-69d9014b32162\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/razorpay.com\/learn\/business-banking\/features-of-current-accounts-for-business\/#Features-of-current-accounts\" >Features of current accounts<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/razorpay.com\/learn\/business-banking\/features-of-current-accounts-for-business\/#Distinguishes-business-dealings-from-personal-financial-dealings\" >Distinguishes business dealings from personal financial dealings<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/razorpay.com\/learn\/business-banking\/features-of-current-accounts-for-business\/#Establishes-creditworthiness\" >Establishes creditworthiness<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/razorpay.com\/learn\/business-banking\/features-of-current-accounts-for-business\/#Overdraft-facility\" >Overdraft facility<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/razorpay.com\/learn\/business-banking\/features-of-current-accounts-for-business\/#Adds-to-business-competence\" >Adds to business competence<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/razorpay.com\/learn\/business-banking\/features-of-current-accounts-for-business\/#No-limit-on-transactions\" >No limit on transactions<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/razorpay.com\/learn\/business-banking\/features-of-current-accounts-for-business\/#RazorpayX-supercharged-Current-Account-the-end-to-end-banking-solution-you-need\" >RazorpayX supercharged Current Account: the end-to-end banking solution you need<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/razorpay.com\/learn\/business-banking\/features-of-current-accounts-for-business\/#Frequently-Asked-Questions\" >Frequently Asked Questions<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/razorpay.com\/learn\/business-banking\/features-of-current-accounts-for-business\/#How-can-I-apply-for-a-RazorpayX-powered-current-account\" >How can I apply for a RazorpayX powered current account?<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"Features-of-current-accounts\"><\/span><b>Features of current accounts<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Current accounts are financial products built specifically for businesses and are different from savings accounts in more ways than one. Having a current account is not only beneficial for your business from the taxation and legal perspectives, but also helps you maintain clean, comprehensible financial records.\u00a0\u00a0<\/span><\/p>\n<p style=\"text-align: center;\"><strong>Read more: <a href=\"https:\/\/razorpay.com\/learn\/6-differences-between-current-account-and-savings-account\/?utm_adgroup=&amp;utm_gclid=Cj0KCQjwg_iTBhDrARIsAD3Ib5jejcDG-9zFzEl7e0UxhkfWS4bo5DsOltjvijzA1pfKU4Rl7k5cJS4aAgs8EALw_wcB&amp;utm_source=google&amp;utm_medium=cpc&amp;utm_campaign=GoogleSearch_RZPx_BrandAwareness_CA_11042022&amp;utm_term=current%20account%20vs%20savings%20account&amp;utm_content=text_1&amp;hsa_kw=current%20account%20vs%20savings%20account&amp;hsa_net=adwords&amp;hsa_grp=141078132128&amp;hsa_cam=14641896928&amp;hsa_acc=9786800965&amp;hsa_tgt=kwd-315366403858&amp;hsa_ver=3&amp;hsa_ad=592347068097&amp;hsa_mt=e&amp;hsa_src=g&amp;gclid=Cj0KCQjwg_iTBhDrARIsAD3Ib5jejcDG-9zFzEl7e0UxhkfWS4bo5DsOltjvijzA1pfKU4Rl7k5cJS4aAgs8EALw_wcB\">6 Differences Between Current Account and Savings Account<\/a>.<\/strong><\/p>\n<p><span style=\"font-weight: 400;\">Here are the top five features of current accounts:<\/span><\/p>\n<ul>\n<li>\n<h3><span class=\"ez-toc-section\" id=\"Distinguishes-business-dealings-from-personal-financial-dealings\"><\/span><b>Distinguishes business dealings from personal financial dealings<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Tempting as it may sound to have one account for all your business and personal needs, it is a sure-shot recipe for financial disaster.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Having business and personal finances mixed up in one account results in messy financial records that is difficult to make sense of.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Business founders must maintain a current account and savings account separately to ensure segregation of personal finances from those of the business. Sole proprietors especially must follow this while carrying out business-related transactions. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">Opening a separate current account will help founders accurately record their business\u2019s income and expenses. This enables them to understand their business\u2019s financial standing and help plan business finances accordingly. It also helps generate projections for the business more efficiently.<\/span><\/p>\n<p style=\"text-align: center;\"><span style=\"font-weight: 400;\">\u00a0<\/span><a style=\"border-radius: 3px; background: #528FF0; padding: 15px; font-weight: 600; cursor: pointer; text-decoration: none; color: white;\" href=\"https:\/\/razorpay.com\/x\/current-accounts\/?r=blog_cta_business_banking_current_account_features&amp;utm_source=blog&amp;utm_medium=cta\" data-schema-attribute=\"\">Explore RazorpayX-powered Current Account<\/a><\/p>\n<p>&nbsp;<\/p>\n<ul>\n<li>\n<h3><span class=\"ez-toc-section\" id=\"Establishes-creditworthiness\"><\/span><b>Establishes creditworthiness<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Financial institutions are big on verifying creditworthiness before they part with their money, and having a current account can prove to be more helpful than you\u2019d think.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">One of the primary features of current accounts is that they provide you with an accurate record of your transactions, especially when it comes to the repayment of previous debt. A current account gives the lender a clear picture of the business&#8217;s financial position, and if all the records are in order, it boosts the business&#8217;s chances of getting that loan!<\/span><\/p>\n<ul>\n<li>\n<h3><span class=\"ez-toc-section\" id=\"Overdraft-facility\"><\/span><b>Overdraft facility<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Cash crunches are not uncommon between periods of selling products or services and receiving payments. This is where the ability to overdraw comes in handy.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">One of the most popular features of current accounts, the overdraft facility lets founders withdraw an amount <\/span><b>greater than the account balance<\/b><span style=\"font-weight: 400;\"> for a short period of time. When more money flows into the current account, the bank automatically takes the amount it let the account holder overdraw earlier.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The icing on the cake? If you have a great relationship with your bank and they find your financials spotless, they may not even charge you interest on your overdraft! This is, however, subject to the terms and conditions of the bank.<\/span><\/p>\n<ul>\n<li>\n<h3><span class=\"ez-toc-section\" id=\"Adds-to-business-competence\"><\/span><b>Adds to business competence<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Issuing cheques, demand drafts, and pay orders in the business&#8217;s name adds that professional touch needed to boost a brand\u2019s reputation. Having a current account in the name of the business allows for this!\u00a0<\/span><\/p>\n<div style=\"text-align: center;\"><a style=\"border-radius: 3px; background: #528FF0; padding: 15px; font-weight: 600; cursor: pointer; text-decoration: none; color: white;\" href=\"https:\/\/x.razorpay.com\/auth\/signup?r=blog_cta_business_banking_current_account_features&amp;utm_source=blog&amp;utm_medium=cta\" data-schema-attribute=\"\">Open a Current Account<\/a><\/div>\n<ul>\n<li>\n<h3><span class=\"ez-toc-section\" id=\"No-limit-on-transactions\"><\/span><b>No limit on transactions<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Unlike the transactions we make out of savings accounts, which banks limit to inculcate the habit of saving, businesses make hundreds of transactions every day. This is the fundamental reason why business operations cannot be run out of a savings account.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Current accounts, on the other hand, have no limit on the number of times you can transact daily. This is one of the basic <\/span>features of current accounts<span style=\"font-weight: 400;\">\u00a0that distinguish them from other types of demand deposits.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Current accounts make transferring funds and receiving money through various means (online, or via cheques, demand drafts, or pay orders) hassle-free and flexible. Account-holders can also make multi-city transfers and instant fund transfers via<\/span><a href=\"https:\/\/razorpay.com\/learn\/rtgs-neft-when-to-use\/\"><span style=\"font-weight: 400;\"> RTGS and NEFT<\/span><\/a><span style=\"font-weight: 400;\">.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Many financial institutions also offer a <\/span><a href=\"https:\/\/razorpay.com\/blog\/zero-balance-current-account\/\"><span style=\"font-weight: 400;\">zero-balance current account<\/span><\/a><span style=\"font-weight: 400;\">, which allows you to transact without maintaining a monthly average balance (MAB).<\/span><\/p>\n<p><i><span style=\"font-weight: 400;\">Trivia: Banks do not pay interest on the credit balance of current accounts, given that the amounts and volume of transactions are high.<\/span><\/i><\/p>\n<h2><span class=\"ez-toc-section\" id=\"RazorpayX-supercharged-Current-Account-the-end-to-end-banking-solution-you-need\"><\/span><b>RazorpayX supercharged Current Account: the end-to-end banking solution you need<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Built for growing businesses, the RazorpayX powered Current Account, backed by leading private banks, is a comprehensive business banking hub that streamlines your banking operations.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Apart from giving you the basic features of current accounts, your RazorpayX powered Current Account allows you to<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Add beneficiaries and transact instantly, without a cooling period<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Gain detailed insights into your finances from a powerful dashboard<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Automate payouts with powerful APIs<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Set up approval workflows, so you never have to deal with OTPs<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Make tax payments from one dashboard \u2013 without having to hop portals<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Get full access to the RazorpayX product suite: <\/span><a href=\"https:\/\/razorpay.com\/x\/payouts\/\"><span style=\"font-weight: 400;\">Payouts<\/span><\/a><span style=\"font-weight: 400;\">, <\/span><a href=\"https:\/\/razorpay.com\/x\/vendor-payments\/\"><span style=\"font-weight: 400;\">Vendor Payments<\/span><\/a><span style=\"font-weight: 400;\">, and <\/span><a href=\"https:\/\/razorpay.com\/payroll\/\"><span style=\"font-weight: 400;\">Payroll<\/span><\/a><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">\u2026 all with <\/span><b>500 free payouts every month<\/b><span style=\"font-weight: 400;\">!<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The icing on the cake? You can apply for a RazorpayX powered Current Account in minutes.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Ready to supercharge your finances?<\/span><\/p>\n<div style=\"text-align: center;\"><a style=\"border-radius: 3px; background: #528FF0; padding: 15px; font-weight: 600; cursor: pointer; text-decoration: none; color: white;\" href=\"https:\/\/x.razorpay.com\/auth\/signup\/?r=blog_cta_business_banking_features_of_current_account&amp;utm_source=blog&amp;utm_medium=cta\" data-schema-attribute=\"\">Get started now<\/a><\/div>\n<p>&nbsp;<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Frequently-Asked-Questions\"><\/span><b>Frequently Asked Questions<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\t\t\t<div id=\"rank-math-rich-snippet-wrapper\" class=\"\">\n\n\t\t\t\t\n\t\t\t<\/div>\n\t\t\n<h3><span class=\"ez-toc-section\" id=\"How-can-I-apply-for-a-RazorpayX-powered-current-account\"><\/span><b>How can I apply for a RazorpayX powered current account?<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Here&#8217;s how you can apply for a RazorpayX powered Current Account in 4 simple steps:<\/span><\/p>\n<p><b>Step 1:<\/b><span style=\"font-weight: 400;\"> Sign up <a href=\"https:\/\/x.razorpay.com\/auth\/signup\/?intent=current_account\">here<\/a>\u00a0or log into the RazorpayX Dashboard<\/span><\/p>\n<p><b>Step 2:<\/b><span style=\"font-weight: 400;\"> Select \u2018Apply for a Current Account\u2019 and hit the &#8216;Get started&#8217; button<\/span><\/p>\n<p><b>Step 3:<\/b><span style=\"font-weight: 400;\"> Enter basic details about your business &#8211; your business type (proprietorship, partnership, or company), and your business category (e-commerce, ed-tech, and the like).<\/span><\/p>\n<p><b>Step 4:<\/b><span style=\"font-weight: 400;\"> Input the pin code of your registered business address, and click on \u2018Submit\u2019<\/span><\/p>\n<p>And that&#8217;s it. The RazorpayX Team will get in touch with you and have your account up and running in no time!<\/p>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Here&#8217;s a short guide to the features of current accounts to help you understand how they streamline your business finances. Dive in!<\/p>\n","protected":false},"author":151156470,"featured_media":6170,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3437],"tags":[3581,3475],"class_list":{"0":"post-6169","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-banking","8":"tag-business-banking","9":"tag-current-account"},"_links":{"self":[{"href":"https:\/\/learn.razorpay.in\/learn\/wp-json\/wp\/v2\/posts\/6169","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/learn.razorpay.in\/learn\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/learn.razorpay.in\/learn\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/learn.razorpay.in\/learn\/wp-json\/wp\/v2\/users\/151156470"}],"replies":[{"embeddable":true,"href":"https:\/\/learn.razorpay.in\/learn\/wp-json\/wp\/v2\/comments?post=6169"}],"version-history":[{"count":10,"href":"https:\/\/learn.razorpay.in\/learn\/wp-json\/wp\/v2\/posts\/6169\/revisions"}],"predecessor-version":[{"id":7352,"href":"https:\/\/learn.razorpay.in\/learn\/wp-json\/wp\/v2\/posts\/6169\/revisions\/7352"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/learn.razorpay.in\/learn\/wp-json\/wp\/v2\/media\/6170"}],"wp:attachment":[{"href":"https:\/\/learn.razorpay.in\/learn\/wp-json\/wp\/v2\/media?parent=6169"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/learn.razorpay.in\/learn\/wp-json\/wp\/v2\/categories?post=6169"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/learn.razorpay.in\/learn\/wp-json\/wp\/v2\/tags?post=6169"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}