Can I open 2 current accounts with the same bank?
What is a current account?
A current account is nothing but a financial account that businesses have in order to cater for their high transactions with banks frequently. Individuals running a business can make a request to their banks and open their current accounts.
The current accounts are associated with liquid deposits and usually offer a wide category of options for aiding financial dealings. Hence, these accounts are different from normal savings accounts.
The main difference between a current account and a savings account is that a current account does not offer any interest on your deposited money. This is because your entire deposited money is available for you to use any time you need it.
Current accounts allow individuals to make payments to creditors through cheques. They also have a much higher minimum limit as compared to savings accounts. The best benefit of a current account is that you can get an Overdraft (OD) facility to an approved limit. These benefits make current accounts highly beneficial for all the business owners who transact frequently.
What are the best benefits of a current bank account?
As a current bank account is a must for catering to your business needs, these days, you can open a current account online in a much easier way.
All the banks offer a variety of beneficial offers and perks on current accounts that suit your distinctive requirements of carrying a business. You can go ahead with the bank with offers that suit your business the best. Read along to know the features of a current bank account:
- Current accounts permit transactions exceeding the limits of savings accounts.
- Current accounts, as compared to savings accounts, are made to enable and boost multiple and frequent transactions like sending and receiving funds, receiving cheques, cash, and more.
- One of the best parts of a current account is that whether you’re an individual, trust, association, a public or private company, or a proprietary business, you can open this account by submitting the required documents.
- Make sure to note that you will have to maintain a much higher minimum balance than a normal savings bank account. You need to follow KYC guidelines even for opening a current account.
Can you open 2 current accounts with the same bank?
For a single business, there cannot be multiple current accounts. As per the RBI policies, you can route all your transactions through CC or OD accounts instead of opening a new current account. That means Cash Credit or Overdraft accounts.
With this rule and regulation, individuals can no longer take undue advantage of transactions through multiple accounts, and overall this will diminish the blind spots.
The RBI has eased current account rules for bank exposures for money less than Rs. 5 crores. If the amount is less than Rs. 5 crores, then the lenders can open a current account, cash credit (CC), or overdraft (OD) without any limitations or restrictions. However, do ensure that if the amount is crossing the Rs. 5-crore mark, then an individual must intimate the bank.
