Current Account 101: Meaning, Features and Types

Banks offer different types of interest-bearing accounts – Savings Accounts, Fixed Deposits, Recurring Deposits, etc. All these accounts offer interest rates, which contributes to your financial growth. However, there’s another type of account- Current Account – an account designed to simplify day-to-day business transactions.

Read this blog to understand how a Current Account works, its types, features, and more.

What is a Current Account?

A current account is a type of account designed primarily for businesses, entrepreneurs, and professionals who engage in frequent and high-volume financial transactions. Unlike savings accounts, current accounts do not typically earn interest but offer features such as higher deposit and withdrawal limits, overdraft facilities, and seamless fund transfers.

Current accounts are ideal for managing day-to-day business operations, including payments to vendors, payroll processing, and receiving customer payments. They also come with additional tools like cheque books, debit cards, and online banking for convenience.

Key benefits of a current account include faster transaction processing, higher transaction limits, and enhanced banking services like trade finance and cash management. However, they may require maintaining a minimum balance, and non-maintenance could result in penalties.

Types of Current Accounts

Ujjivan Small Finance Bank offers 6 types of current accounts meticulously designed to meet your unique business requirements.

1. Regular Current Account

The Regular Current Account is designed to make business banking simple and convenient.

What you get:

• Free and unlimited transactions at Ujjivan SFB ATMs
• Zero additional charges for non-home branch transactions
• Flexible cash deposit limit across branches
• Net Banking and Mobile Banking facilities
• Doorstep cash and cheque pick-up facility (available in select cities)
• 24/7 customer care in your preferred language

2. Premium Current Account

Enjoy higher ATM withdrawal limit and superior customer service with Ujjivan’s Premium Current Account.

What you get:

• Enhanced shopping and ATMs withdrawal limit of ₹1 lakh
• Up to 50 Free cheque leaves per quarter
• 50 free cash withdrawals every month at Ujjivan SFB branches
• RuPay Classic Debit Card with six free transactions at non-bank ATMs
• Different POS solutions like Android POS terminals, MPos, and paper and digital GPRS

3. Business Edge Current Account

Flexible and convenient, the Business Edge Current Account is designed to supercharge your business activities.

What you get:

• Feature-packed RuPay Platinum Debit Card
• Unlimited free transactions across Ujjivan ATMs
• 1 complimentary lounge access per quarter
• 10 free transactions/month at other bank ATMs
• Enhanced daily ATM transaction limit up to ₹1.5 lakh

4. Privilege Current Account

With the Privilege Current Account, you can customise your cash deposit limit, thanks to Flexi Now and Flexi Next facilities. 

What you get:

• RuPay Platinum Debit Card that comes with multiple offers, discounts and insurance facilities
• 200 free cheque leaves per quarter
• Unlimited cash withdrawal at any branch
• 24/7 customer service in your preferred language
• Up to 9,999 transactions at a time

5. Maxima Current Account

Maxima Current Account offers more than just business banking. Enjoy higher transaction limit, real time status check of Debit Card/cheque, and more.

What you get:

• Define your own cash deposit limit with Flexi Next / Now*
• Higher ATM withdrawal/POS transaction limit of ₹5 lakhs/day*
• Beyond Banking - Account Services, Tax payment, HR Payroll etc.*
• Up to 9,999 transactions at a time

Features and Benefits of Current Account

1. Higher Transactions Limits

Current accounts allow enhanced deposit and withdrawal limits, making them ideal for businesses with high transaction volumes.

2. Cheque and Demand Drafts

Businesses can issue cheques and demand drafts for seamless payments to suppliers and vendors.

3. Multi-Location Banking

Current accounts support banking across multiple branches, making it easy for businesses with pan-India operations to manage finances.

4. Ease of Online Banking

Current accounts come with robust online and mobile banking features, enabling 24/7 access to funds, bill payments, and fund transfers.

5. Efficient Business Operations

Current accounts streamline financial transactions, ensuring smooth day-to-day operations.

6. Enhanced Liquidity

The overdraft facility ensures liquidity, allowing businesses to meet urgent financial requirements.

7. Improved Financial Tracking

Detailed account statements and transaction records help businesses monitor cash flows effectively.

8. Multi-Channel Access

Current account holders can access banking services through ATMs, mobile banking apps, and internet banking, ensuring convenience.

9. Customised Banking Solutions

Many banks offer tailor-made current account solutions for specific industries, providing additional benefits like waived fees or dedicated relationship managers.

10. Facilitates Bulk Payments

Current accounts allow bulk payments such as salaries, supplier payments, and utility bills efficiently.