Top 10 Best Current Bank Account for Small Business in India

Are you an entrepreneur wondering which bank is best for a current account in India?

If you’re an aspiring entrepreneur or have any other small-scale company, then choosing the best current bank account for a small business in India is crucial for its growth. If an entrepreneur is asked to select an account with a current balance, then he is likely to choose the account that has the highest rate of interest.

If you are thinking about starting your own small-scale business opening a current banking account is among the most important requirements for your business. There are many banks, both private and public, that offer the best current bank accounts for small businesses in India, making it difficult to select the most suitable current account for small-scale industries in India.

Through this article, we will be covering the top 10 best current bank accounts for small businesses in India. Furthermore, we will explain how you can open a bank account in the Indian banking system.

How do you open a bank account with the Indian banking system?

The procedure of opening a new bank account can be broken down into five phases:

1. Selecting the most appropriate bank

You must start by choosing the right bank. You should choose the best current bank account for small businesses in India which provides the highest level of customer service and transaction services.

However, you should be able to assess the bank on its net banking services as well as loan and overdraft services as well as other features.

2. Choose a current bank account

Banks provide a selection of current bank accounts that are tailored to the unique demands of various businesses. Choose the account that is most appropriate for your company. To be certain contact the bank’s customer service to clarify any doubts.

3. Visit the branch of the bank

After you have figured out what kind of current account you’d like to open and have narrowed your list to 2 to 3 banks, you can visit the branch nearest to the bank.

You may pick up the application to create the best current account for small businesses in India. You can also inquire about the procedure for opening accounts.

4. Submit necessary documentation

In order to successfully set up the best current account for startups you must read the terms and conditions of the agreement and complete all the necessary documents in addition to the application form.

The most common documents used by banks include:

• Identification and address proof for all partners
• PAN Number
• Address proof of the firm/company
• Partnership Agreement (if the business is a partnership)
• A duplicate of the business’s
• Certificate of Incorporation
• A statement made by Form 60 or Form 61 of the Income Tax Act
• Articles of Association
• Proprietorship (GST Certificate)
• An official bank account opening check.
• Memorandum of Association

5. Account Opening

Once you’ve submitted your application, the bank will be able to review your application and once it’s approved, you’ll receive the best current bank account for small business in India Kit at the email address you provided to them.

The process of opening a business current account is a breeze as nearly all banks in India offer services to manage and open an existing account.

Some of the benefits offered by current accounts of the  best bank for small business in India include:

• There is no limit. It’s up to you when and how much money you want to withdraw and deposit, with no restrictions.
• It allows you to accept direct payments via different methods like cheques, demand drafts, or even pay orders.
• The current account offers both telephone and internet banking services. This is advantageous for businesses as it can save a lot of time and effort.
• The best current bank account for small businesses in India also comes with an overdraft option, which allows the withdrawal of funds over the maximum limit that is set by the institution. A rate of interest is calculated on the amount of an overdraft loan by banks.

After obtaining detailed information about the current account and the facilities, it is important to look at the various factors that affect choosing the most appropriate current account of the many options.

The components that we must consider are as follows:

• It should be taken into account as a vital factor. The best current bank account for small businesses in India should be accessible and have easy access to service the needs of businesses easily. Alongside great access, services such as excellent interruptible ATM networks, online banking, and mobile banking have to be offered by the bank.
• Limits on overdrafts are one of the most useful features offered through current accounts. Limits for overdrafts play an extremely important function in managing a business. Before you decide to open the current or current accounts, make sure to check whether the bank can offer an overdraft that has set limits.
• The monthly minimum balance is among the most crucial elements. An initial investment of more money is required for each entrepreneur or firm. To ensure that you do not incur additional burdens during the initial stage of your company choose an account that has the minimum or no monthly balance requirements.

The Top 10 Best Current Bank Account for Small Business in India

Listed below is list of the top 10 best current bank accounts for small businesses in India:

1. Current Account at ICICI Bank

The finest current bank account for small businesses in India offers a variety of current accounts tailored to the needs of new businesses, including the new Startup Current Account, Small Business Account, and Roaming Current Account.

It provides the advantage of no balance for the first six months. After that, INR 25000 will be required as the minimum balance. A specialist Forex Service and Advice provides personalized assistance. You can deposit cash for free up to 12 times and receive free RTGS and NEFT cards, as well as a checkbook, online, and mobile banking.

Types of Account

• Current Regular Account
• Newly created current account
• Current Account for Subhaarambh
• Business Account, Smart
• Gold Smart Business Account
• Gold Roaming Current Account
• Roaming Current Account Standard

Facts:

• The best current bank account for small businesses in India has a startup account that can assist with registration and networking
• ICICI Bank has 5,275 branches in India.

2. Current Account at HDFC Bank

There are several alternatives available for current accounts, including the Ultima Current Account, Apex Current Account Max Current Account Plus Current Account, Premium Current Account, and Smart Up account solution.

It is your choice to pick plans that range from no balance to any amount based on your preferences. Some of its additional offerings include consulting, co-working space, and digital marketing. Alongside these other facilities such as free RTGS Check, NEFT, collection, and payment services are offered by these companies.

Types of Account

• Ultima Current Account
• Exceptional Current Account
• Current Account Apex
• Current Account EZEE
• Current Account Maximum
• Current Agri Account
• Current Account Plus
• Medical Facilities and Nursing Homes Current Account
• Current Account for Trade
• Account for Professionals Currently Open
• Current Account Premium
• Account for Merchant Advantage Plus
• Current Account, Regular
• Current Account with Merchant Advantage
• Adaptable Current Account
• Establishment Current Account
• A start-up, Smart Up
• An increasing current account
• Domestic Current Account for RFC
• Account for Exchange Earned Foreign Currency
• Current Account for E-mail
• Saksham Current Account

Facts:

• Euromoney Excellence Awards named this bank the 2018 India’s Best Bank winner.
• The Banker Global Private Banking Awards’ list of India’s top private banks
• HDFC offers more than 15 bank account options

3. Axis Bank Current Account

It’s the 2nd most popular savings account for small companies because due to its no-balance feature.

The benefits offered by them include a free transaction of 75 per month. The company charges Rs.1999 for an annual fee however, if your MAB is more than Rs.50000 there is no annual charge. In addition to offering online and mobile banking, it also offers a wide variety of ATMs.

Types of Account

• Standard Current Account
• Community Current Account
• Account for Business Advantage
• Enterprise Select Account
• Commercial Classic Account
• Current Account Sweep
• Account with Business Privileges
• One Channel Account
• Current Account for Club 50

Facts:

• The third-largest private sector bank in India is Axis Bank.
• Seven standard Business Current Accounts are available from Axis Bank, along with accounts for other industries.

4. Current Account at Kotak Mahindra Bank

Current accounts offered by the bank include Ace, Neo Start-Up Premium, and Start-Up Regular Global Trade. Its Neo Current account is one of the most well-known of all of them.

Its minimum balance for the quarter requirements is Rs.10,000. The bank has higher Forex Rates, as well as free cash deposit and cash withdrawal, as well as cheque payment collections including NEFT, REGS Net banking, and mobile banking.

Types of Account

• Account of Neo
• Ace
• Astra 05
• Astra 15
• Start-Up Regular
• Start-Up Premium
• Global TradePro
• Edge
• Elite

Facts:

• Now, ING Vyasa and Kotak Mahindra are partners.
• For enterprises, Kotak Mahindra Bank offers a variety of products.

5. Current Account at YES Bank

Yes, the bank provides a wide range of best current bank accounts for small businesses in India options, similar to other banks. Edge Business, Prime Business, Exclusive Business, and Yes Head Startup Account are among Yes Bank’s most well-liked current accounts.

Yes, Head Startup accounts are recommended for startups and small-sized businesses.

There is no minimum balance requirement for the first year. It offers free services like the ability to pay and collect cheques, ATM truncation, net banking as well as mobile banking are provided. Specialized value-added services are offered to entrepreneurs who are just starting as well as assistance with foreign direct investments.

Types of Account

• Business Edge Current Account
• Current Account Business Value
• Business Benefit Current Account
• Business Growth Current Account

Facts:

• More than 1,122 branches exist for Yes Bank.
• Its equity shares are listed as bonds on the London Stock Exchange and traded on the Bombay Stock Exchange and the National Stock Exchange of India.

6. Current Account at State Bank of India

The most well-known public institution in India is the State Bank of India. As for their current balance, it’s not at the top of the list of preferred banks similar to ICICI and HDFC however its outstanding customer service makes it a formidable institution.

The customer service they provide is truly appreciated and they have an extensive network of ATM networks, strong online banking, and mobile banking options, and access to all services via simple applications.

Types of Account

• Regular Current Account.
• Gold Current Account.
• Diamond Current Account.
• Platinum Current Account.
• Power POS Current Account (With POS Machine)
• Surbhi Current Account
• Power Jyoti
• Power Jyoti Pul Current Account.

Facts:

• The biggest companies in the world in 2018. In the Fortune Global 500, the State Bank of India came in at position 216.
• SBI was placed 50th in India for being a trustworthy brand, according to an annual poll conducted by Trust Research Advisory.

7. Current Account at Punjab National Bank

Two different types of current accounts are offered by Punjab National Bank. If you are a small-sized business this could be an ideal choice.

It gives the advantage of opening a current bank account with a minimum amount of INR 5000. A minimum balance for the quarter starts at INR 1,00,000. The bank also allows unlimited transactions to an available limit, as well as the ability to connect via ATM as well as online and mobile banking.

Types of Account

• PNB Current Deposit Account
• PNB Smart Banking Current Account.

Facts:

• PNB founded its first subsidiary located in India in the early 1900s.
• As of May, PNB was listed at #717 in the Forbes Global 2000.

8. Current Account at Induslnd Bank

The Industrial Bank is another good option for opening the best current bank account for small businesses in India. It has a variety of current accounts that meet specific requirements. In general, the current account in the Indus Edge Accounts is highly recommended and preferred.

Types of Account

• Indus Grain Merchant Flexi
• Indus Textile Current Account
• Indus Silver’s current account
• Indus Gold Current Account
• Indus Gold Plus current account
• Indus Prestige current account
• Exchange Earners Foreign Currency Account
• Indus Infotech Current Account
• Indus Dollar One – Trade Account
• Indus Edge Current Account
• Indus EXIM Trade current account

Facts:

• The bank opened for business on April 17, 1994.
• In India, IndusInd Bank has 2453 ATMs and more than 1,588 branches.

9. RBL Bank Current Account

It’s an incredible best current bank account for small businesses in India with unbeatable services. They offer a unique approach to organizing hackathons and regular meet-ups for startups and work with accounting software and coworking spaces.

They also offer discounts specifically for start-ups. The minimum balance is Rs.20,000 If you do not maintain the minimum balance, additional charges of 300 rupees will be assessed as a fine.

Account Types

• Exceed Global Elite
• Traders Current Account
• Business Account
• India Start-Up Club (ISC) Current Account
• Exceed Global Trade Current Account
• Exceed Global ExtraSelf Employed Professional Current Account

Facts:

• Best Bank for Microfinance at the 2019 Asiamoney Best Bank Awards by Euromoney
• Business Today and Money Today Financial Awards for Best Small Bank

10. Bank of Baroda Current Account

The current accounts that Bank of Baroda offers are tailored to each customer’s needs. With the Bank of Baroda’s current account, you can make unlimited daily transactions, as well as customized services. These services are ideal for consultants, doctors chartered accountants, and businessmen.

Bank of Baroda also offers an overdraft option that can be used to withdraw cash when you have to meet certain capital needs.

Account Types

• Exceed Global Elite
• Traders Current Account
• Business Account
• India Start-Up Club (ISC) Current Account
• Exceed Global Trade Current Account
• Exceed Global ExtraSelf Employed Professional Current Account

Facts:

• BOB received the Global Business Development (Public Sector) & Best Bank awards at the 2014 Polaris Financial Technology Banking Awards (Overall Public Sector Award in Dun and Bradstreet).
• BOB earned the Best Public Sector Bank Award in the Global Business category of the 2015 Dun & Bradstreet Banking Awards.
• Best Bank for Microfinance at the 2019 Asiamoney Best Bank Awards by Euromoney
• Business Today and Money Today Financial Awards for Best Small Bank

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Conclusion

Choosing the best current bank account for your small business in India is a strategic decision that can significantly impact your financial management and business growth. With a variety of options available, from private banks like ICICI, HDFC, and Axis to public sector giants like SBI and PNB, each offers unique benefits tailored to different business needs.

When selecting the best current accounts, consider factors like minimum balance requirements, transaction limits, overdraft facilities, and digital banking services. A well-suited current account ensures seamless business operations, improves cash flow management, and enhances your banking experience.

Take the time to evaluate your business requirements and compare features before making a decision. The right current bank account for your small business can provide you with financial flexibility and operational efficiency, setting the foundation for long-term business success.