To address their increased financial needs, businesses in India usually have a current account associated with their banks. A current account provides benefits and lucrative deals which are well-suited for the companies. With a current account, a company can enjoy customized and tailor-made services. A current account enables all kinds of businesses to carry out their financial transactions of high amounts and also provides a range of other benefits that are specifically suited to these businesses.
Current accounts are synonymous with corporate banking. This may confuse many individuals and potential business owners on just how important having a current account is. So, is a current account mandatory for businesses in India? The answer is a big no.
Having a current account in a bank is not at all mandatory to start a business or operating one. A current account does not serve as a prerequisite to having a business. It may not at all be even needed in the first place if you are a sole proprietor. And as for businesses, even if it is not mandatory, it is always recommended to open a current account for your day-to-day operations.
There are various reasons for this. A current account provides services for all types of business based on requirements. Businesses are usually seen to have current accounts with their banks. A current account offers businesses lucrative deals and helps them to facilitate their financial transactions with great ease. It is ideal for higher number of transactions and can also be customized as per your specific requirements. This is great as it helps in the compartmentalization of personal and corporate banking. It is good practice to keep your savings account for personal needs while having a separate current account for your business. This makes planning and preparing your financial plan easier, now that all your business transactions are separate and all at one place.
While using a current account, your cheques and drafts bear the name of your business. This helps in increasing your brand value and adds to the visibility of your business. It looks professional and authentic. Many banks offer free of cost folio charges, free demand draft facilities, lucrative overdraft facilities, significant number of free cheque books, waivers for many other services. After this number of free cheques and demand draft is met, you may need to pay nominal fees to back extra quantities of these.
Having a current account gives a professional edge to your business. While using a current account, your cheques and drafts bear the name of your business. This helps in increasing your brand value and adds to the visibility of your business. It looks professional and authentic.
So, while a current account is recommended to make things easier for you and to help with all your financial needs, it does not act asa mandatory requirement for businesses in India.
Disclaimer: The above information is generic in nature. It is not recommended to substitute this article in place of a professional advice.