{"id":6732,"date":"2022-09-05T14:25:51","date_gmt":"2022-09-05T08:55:51","guid":{"rendered":"https:\/\/razorpay.com\/learn\/?p=6732"},"modified":"2025-02-14T16:24:35","modified_gmt":"2025-02-14T10:54:35","slug":"startup-current-account","status":"publish","type":"post","link":"https:\/\/razorpay.com\/learn\/business-banking\/startup-current-account\/","title":{"rendered":"Startup Current Account: The Best Way to Bank for Indian Startups"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">As of 2022, India is the third largest startup ecosystem in the world.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Many startup founders initially feel that they can manage their finances without having a current account. However, sooner or later, they realise that they require a startup current account<\/span><b>\u00a0<\/b><span style=\"font-weight: 400;\">for streamlined withdrawals, deposits and other business transactions.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Here\u2019s a tell-all piece on current accounts, and why they are an absolute must for Indian startups. \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-69da57c7b59fa\" 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-69da57c7b59fa\"  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\/startup-current-account\/#What-are-the-benefits-of-a-current-account-for-your-Startup\" >What are the benefits of a current account for your Startup?<\/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\/startup-current-account\/#1-Transact-securely-and-track-your-money-movement-easily\" >1. Transact securely and track your money movement easily<\/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\/startup-current-account\/#2-Transact-in-foreign-currency\" >2. Transact in foreign currency<\/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\/startup-current-account\/#3-Make-payments-in-bulk-and-collect-your-dues-with-ease\" >3. Make payments in bulk, and collect your dues with ease<\/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\/startup-current-account\/#4-Make-informed-business-decisions\" >4. Make informed business decisions<\/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\/startup-current-account\/#5-Transact-without-worrying-about-limits\" >5. Transact without worrying about limits<\/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\/startup-current-account\/#How-to-select-the-right-startup-current-account\" >How to select the right startup current account\u00a0<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/razorpay.com\/learn\/business-banking\/startup-current-account\/#Monthly-Average-Balance-requirement\" >Monthly Average Balance requirement<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/razorpay.com\/learn\/business-banking\/startup-current-account\/#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-10\" href=\"https:\/\/razorpay.com\/learn\/business-banking\/startup-current-account\/#Transaction-fees\" >Transaction fees<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/razorpay.com\/learn\/business-banking\/startup-current-account\/#Robust-online-banking-infrastructure\" >Robust online banking infrastructure<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/razorpay.com\/learn\/business-banking\/startup-current-account\/#Documents-for-opening-a-current-account\" >Documents for opening a current account<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/razorpay.com\/learn\/business-banking\/startup-current-account\/#The-RazorpayX-Powered-Startup-Current-Account-built-by-disruptors-for-disruptors\" >The RazorpayX-Powered Startup Current Account: built by disruptors, for disruptors<\/a><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"What-are-the-benefits-of-a-current-account-for-your-Startup\"><\/span><strong>What are the benefits of a current account for your Startup?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Here are five major reasons why you need a startup current account:\u00a0<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"1-Transact-securely-and-track-your-money-movement-easily\"><\/span><b>1. Transact securely and track your money movement easily<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Businesses need to carry out transactions of substantial value. Businesses carry out a large volume of transactions every day, many of which involve substantial sums of money. Therefore, it is crucial that the transactions are carried out securely, and are well-documented. . A current account allows you to transact securely while enabling you to track money movement effectively.<\/span><\/p>\n<p 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:\/\/razorpay.com\/x\/current-accounts\/?r=blog_cta_business_banking_startup_current_account&amp;utm_source=blog&amp;utm_medium=cta\" target=\"_blank\" rel=\"noopener\" data-schema-attribute=\"\">Explore RazorpayX Current Accounts<\/a><\/p>\n<h3><span class=\"ez-toc-section\" id=\"2-Transact-in-foreign-currency\"><\/span><b>2. Transact in foreign currency<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Instead of having a separate account for foreign exchange, several financial institutions provide facilities with their current accounts, which are customised for startups. As a startup founder, you can also opt for the services of an expert to guide you through the regulations around foreign investment and trade.<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"3-Make-payments-in-bulk-and-collect-your-dues-with-ease\"><\/span><b>3. Make payments in bulk, and collect your dues with ease<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">With a\u00a0<\/span><a href=\"https:\/\/razorpay.com\/x\/current-accounts\/\" target=\"_blank\" rel=\"noopener\" data-schema-attribute=\"\"><b> current account<\/b><\/a><span style=\"font-weight: 400;\">, you can make bulk payments for your startup. Also, several financial institutions provide electronic collection services which enable you to collect payments digitally through <a href=\"https:\/\/razorpay.com\/learn\/rtgs\/\">RTGS<\/a> and <a href=\"https:\/\/razorpay.com\/learn\/neft\/\">NEFT<\/a>. This, in turn, helps you increase effectiveness and efficiency of revenue collection.<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"4-Make-informed-business-decisions\"><\/span><b>4. Make informed business decisions<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Current accounts are ideal for businesses to manage their transactions by accessing their accounts daily. Businesses can make informed decisions now with faster access to financial reports and other information about transactions in real time. Having a Current Account also helps in improving their creditworthiness.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">A current account gives you a clear view of your transactions, expenses and incomes, thereby helping you make informed decisions about your business.\u00a0<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"5-Transact-without-worrying-about-limits\"><\/span><b>5. Transact without worrying about limits<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">\u00a0Such flexibility proves to be very helpful in ensuring that a big-value business transaction is carried out without any hitch.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">A current account gives you the flexibility to deposit and withdraw money as many times as you need, with no cap on transaction amounts. This helps ensure smooth money movement and timely payments to all your stakeholders.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"How-to-select-the-right-startup-current-account\"><\/span><b>How to select the right startup current account\u00a0<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">\u00a0Here\u2019s what you should consider while choosing a\u00a0 startup current account:<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Monthly-Average-Balance-requirement\"><\/span><b>Monthly Average Balance requirement<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">A majority of banks require account holders to maintain a monthly average balance in their current accounts. Maintaining a monthly average balance enables you to be eligible for multiple business banking benefits, for e.g: free cash deposits, DD benefits and so much more.Make sure you check this requirement before applying, especially if you are an entrepreneur just starting your venture.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\"><a href=\"https:\/\/razorpay.com\/learn\/mab-monthly-average-balance-current-account\/\" target=\"_blank\" rel=\"noopener\" data-schema-attribute=\"\">Read more about Monthly Average Balance<\/a><\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Overdraft-facility\"><\/span><b><b>Overdraft facility<\/b><\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">As a current account holder, you would be eligible to opt for the overdraft facility, if your bank is convinced of your creditworthiness. This facility can come in handy if your business faces a financial crunch. With the overdraft facility, you can withdraw even when the account balance is zero.<\/span><\/p>\n<p><b><a href=\"https:\/\/razorpay.com\/learn\/overdraft-explained-business-banking\/\" target=\"_blank\" rel=\"noopener\" data-schema-attribute=\"\">Read more about Overdraft facility<\/a><\/b><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Transaction-fees\"><\/span><b>Transaction fees<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Generally, banks allow individuals to carry out unlimited transactions via their current account. However,\u00a0 banks charge a fee for international transactions, or when the number of outward transactions (also called payouts) in a period exceeds a predetermined free-transaction limit.. Make sure you check the schedule of transaction fees prior to applying for a current account. Ideally, you should opt for a bank that offers a current account with\u00a0 a high free transaction limit and low transaction fees.<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Robust-online-banking-infrastructure\"><\/span><b>Robust online banking infrastructure<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">You should apply for a\u00a0<\/span><a href=\"https:\/\/razorpay.com\/x\/current-accounts\/\" target=\"_blank\" rel=\"noopener\" data-schema-attribute=\"\"><b> current account<\/b><\/a><span style=\"font-weight: 400;\">\u00a0with a financial institution gives you a user-friendly mobile and internet banking portal.This way, your need for going to bank branches for simple tasks will be reduced greatly, leaving you time to focus on running your business.\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_startup_current_account&amp;utm_source=blog&amp;utm_medium=cta\" target=\"_blank\" rel=\"noopener\" data-schema-attribute=\"\">Sign up now<\/a><\/div>\n<p>&nbsp;<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Documents-for-opening-a-current-account\"><\/span><b>Documents for opening a current account<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Banks usually demand several documents for KYC while opening your current account.\u00a0 Document requirements may differ slightly from bank to bank. Ensure that you have all the documents &#8211; general and specific to the bank you want to open your account with &#8211; handy for account opening.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Here is a list of general documents that you will need, regardless of your type of business and the bank you want to open your account with:<\/span><\/p>\n<ul>\n<li><span style=\"font-weight: 400;\">Address proof: any one out of Aadhar card, voter ID card, rent agreement, electricity bill, telephone bill, water bill, passport, driving license<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Identity proof: any one out of PAN card, passport, voter ID card, driving license, aadhaar card<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Business registration proof or incorporation certificate<\/span><\/li>\n<li><span style=\"font-weight: 400;\">PAN of the entity<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Latest passport size photo<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Account opening <a href=\"https:\/\/razorpay.com\/learn\/what-is-cheque\/\">cheque<\/a> from an existing bank account<\/span><\/li>\n<li><span style=\"font-weight: 400;\">You must submit KYC documents for all the authorised signatories of your business.<\/span><span style=\"font-weight: 400;\">Please note that, based on your type of business (sole proprietorship, partnership, company and the like), you will need additional documents for account opening. You can find a comprehensive list of current account opening documents for different kinds of businesses <\/span><a href=\"https:\/\/razorpay.com\/learn\/current-account-opening-documents-required\/\"><span style=\"font-weight: 400;\">here<\/span><\/a><span style=\"font-weight: 400;\">.<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Once you\u2019ve submitted your documents, representatives from the financial institution will take you through the next steps of the account opening process.\u00a0<\/span><\/li>\n<\/ul>\n<h2><span class=\"ez-toc-section\" id=\"The-RazorpayX-Powered-Startup-Current-Account-built-by-disruptors-for-disruptors\"><\/span><b>The RazorpayX-Powered Startup Current Account: built by disruptors, for disruptors<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Running a startup can be hard &#8211; but money movement doesn\u2019t have to be. We, at RazorpayX, have built a current account that is for startups like yours, so you can focus on growing your businesses without ever having to worry about your money.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">\u00a0With a RazorpayX-powered Current Account, you can:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Pay your vendors accurately and on time with <em>intelligent<\/em> <a href=\"https:\/\/razorpay.com\/x\/vendor-payments\/\" target=\"_blank\" rel=\"noopener\" data-schema-attribute=\"\">Vendor Payments<\/a>, armed with <em>OCR-based invoice scanning<\/em> and payments that you can schedule in advance<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\"><em>Automate payroll<\/em> and statutory compliances end-to-end and execute them in 10 minutes with <a href=\"https:\/\/razorpay.com\/payroll\/\" target=\"_blank\" rel=\"noopener\" data-schema-attribute=\"\">RazorpayX Payroll<\/a><\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Enjoy the most seamless payouts experience in India with <a href=\"https:\/\/razorpay.com\/x\/payouts\/?utm_source=direct&amp;utm_medium=website\" target=\"_blank\" rel=\"noopener\" data-schema-attribute=\"\">RazorpayX Payouts<\/a><\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Add beneficiaries just the way you add contacts on your phone, and start transacting immediately without waiting out a cooling period<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Make informed decisions with <em>smart, real-time insights<\/em> and reporting from your <a href=\"https:\/\/x.razorpay.com\/auth\" target=\"_blank\" rel=\"noopener\" data-schema-attribute=\"\">RazorpayX dashboard<\/a><\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\"><em>Bank on the go<\/em> with the RazorpayX mobile app, and make, approve or reject payouts on your Apple Watch<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">\u2026and a whole lot more, like <strong>25<\/strong><\/span><b>0 free payouts every month!<\/b><\/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_startup_current_account&amp;utm_source=blog&amp;utm_medium=cta\" target=\"_blank\" rel=\"noopener\" data-schema-attribute=\"\">Get started now!<\/a><\/div>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Startups require a\u00a0current account\u00a0for streamlined withdrawals, deposits and other business transactions.\u00a0This blog post covers startup current account and the best way to bank for Indian startups.<\/p>\n","protected":false},"author":151156539,"featured_media":6774,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3437],"tags":[],"class_list":{"0":"post-6732","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-banking"},"_links":{"self":[{"href":"https:\/\/learn.razorpay.in\/learn\/wp-json\/wp\/v2\/posts\/6732","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\/151156539"}],"replies":[{"embeddable":true,"href":"https:\/\/learn.razorpay.in\/learn\/wp-json\/wp\/v2\/comments?post=6732"}],"version-history":[{"count":13,"href":"https:\/\/learn.razorpay.in\/learn\/wp-json\/wp\/v2\/posts\/6732\/revisions"}],"predecessor-version":[{"id":15874,"href":"https:\/\/learn.razorpay.in\/learn\/wp-json\/wp\/v2\/posts\/6732\/revisions\/15874"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/learn.razorpay.in\/learn\/wp-json\/wp\/v2\/media\/6774"}],"wp:attachment":[{"href":"https:\/\/learn.razorpay.in\/learn\/wp-json\/wp\/v2\/media?parent=6732"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/learn.razorpay.in\/learn\/wp-json\/wp\/v2\/categories?post=6732"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/learn.razorpay.in\/learn\/wp-json\/wp\/v2\/tags?post=6732"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}