Are you an entrepreneur wondering which bank is best for a current account in India?
Choosing the appropriate current bank account is a crucial choice for every Indian startup or small business. The right banking partner can significantly impact your daily operations, financial management, and business growth potential.
This comprehensive guide compares the top 10 best current bank account for small business in India, examining their features, benefits, and limitations to help you make an informed decision that aligns with your business requirements. Furthermore, we will explain how you can open a bank account in the Indian banking system.
Quick Comparison: Top Current Accounts for Small Business in India
Bank | Best For | Min. Balance (₹) | Free Transactions/Month | Startup Benefits |
ICICI Bank | Overall value | 25,000 (after 6 months) | 12 cash deposits | Registration assistance, networking |
HDFC Bank | Premium services | Varies by plan | Plan-dependent | Co-working space, digital marketing support |
Axis Bank | No balance option | Zero balance available | 75 | Free RTGS/NEFT transactions |
Kotak Mahindra | Forex services | 10,000 (quarterly) | Unlimited | Higher forex rates |
YES Bank | Startups | Zero (first year) | Unlimited | FDI assistance, specialized services |
SBI | Widest network | Varies by plan | Plan-dependent | Extensive ATM network |
PNB | Affordability | 5,000 (initial) | Unlimited within limit | Low entry barrier |
IndusInd Bank | Industry-specific | Varies by account | Plan-dependent | Tailored industry solutions |
RBL Bank | Tech startups | 20,000 | Plan-dependent | Hackathons, startup discounts |
Bank of Baroda | Public sector benefits | Varies by plan | Unlimited | Customized professional services |
How to Choose the Best Current Bank Account for Your Small Business?
When selecting a current account for your small business in India, consider these key factors:
1. Accessibility and Digital Services
- Branch network proximity to your business location
- ATM coverage for cash management needs
- Digital banking capabilities including mobile app features
- Integration options with accounting software and payment gateways
2. Minimum Balance Requirements
- Match the minimum balance requirement to your cash flow reality
- Consider accounts with initial grace periods for new businesses
- Evaluate penalty charges for non-maintenance of minimum balance
3. Transaction Limits and Fees
- Assess your typical monthly transaction volume (cash deposits/withdrawals)
- Compare free transaction limits across banks
- Understand charges for exceeding free transaction limits
4. Overdraft Facilities
- Compare overdraft limits and interest rates
- Understand the application process and eligibility criteria
- Check flexibility in overdraft usage and repayment terms
5. Additional Services and Benefits
- Industry-specific solutions for your business sector
- Startup-focused benefits and mentorship opportunities
- Value-added services like insurance, business advisory, etc.
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. ICICI Bank Current Account
Ideal for: It is one of the best bank for current account for growing businesses seeking balanced features.
Key Account Types:
- Startup Current Account
- Small Business Account
- Roaming Current Account
Standout Features:
- Zero balance requirement for first 6 months
- Free cash deposits up to 12 times
- Specialized Forex advisory services
- Free RTGS/NEFT transactions
- Comprehensive mobile and internet banking
Limitations:
- ₹25,000 minimum balance after initial 6 months
- Higher charges for exceeding transaction limits
Why Choose? Perfect balance of features with special consideration for new businesses through the 6-month zero balance period.
2. HDFC Bank Current Account
Ideal for: Businesses needing premium banking services
Key Account Types:
- Ultima Current Account
- Smart Up Account Solution
- Premium Current Account
Standout Features:
- Flexible plans from zero balance to premium options
- Business consulting services
- Co-working space access for select accounts
- Digital marketing support
- Comprehensive payment collection solutions
Limitations:
- Higher fees for premium account maintenance
- Complex account structure may be confusing
Why Choose? Best-in-class digital banking experience with value-added business services beyond traditional banking.
3. Axis Bank Current Account
Ideal for: Price-conscious businesses seeking value
Key Account Types:
- Standard Current Account
- Business Advantage Account
- Enterprise Select Account
Standout Features:
- Zero balance options available
- 75 free transactions monthly
- Extensive ATM network
- Competitive digital banking platform
Limitations:
- ₹1,999 annual fee (waived with ₹50,000+ MAB)
- Limited startup-specific benefits
Why Choose? Strong digital platform with reasonable transaction limits and favorable fee structure.
4. Kotak Mahindra Bank Current Account
Ideal for: Businesses with international trade requirements
Key Account Types:
- Neo Current Account
- Ace Current Account
- Global TradePro Account
Standout Features:
- Favorable forex rates
- Free cash deposits and withdrawals
- Comprehensive collection services
- Strong mobile and net banking
Limitations:
- ₹10,000 quarterly minimum balance
- Limited branch network compared to larger banks
Why Choose? Excellent for businesses with regular foreign transactions due to competitive forex rates.
5. YES Bank Current Account
Ideal for: Tech startups and new ventures
Key Account Types:
- YES Head Startup Account
- Business Edge Current Account
- Business Prime Account
Standout Features:
- Zero balance for first year
- Free cheque payments and collections
- Specialized startup services
- Foreign direct investment assistance
Limitations:
- Smaller branch network
- Less established than some competitors
Why Choose? Tailored startup-focused benefits and first-year zero balance make it perfect for new ventures.
6. State Bank of India Current Account
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. Punjab National BankCurrent Account
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
Looking to expand your business internationally? Connect with our experts and start your international journey today!
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.
FAQ’s
The most reliable current account for business to consider is Bank of Baroda Small Current Business Account.
We mentioned previously that the Account that is Current Account is a zero-interest bank account, there is no tax on a Current Account.
Yes, several banks including ICICI, YES Bank, and HDFC offer zero balance options for the initial period (typically 6-12 months), after which a minimum balance is required.
Current accounts offer unlimited transactions, overdraft facilities, and business-specific services but typically don’t earn interest. Savings accounts earn interest but have transaction limitations.
Yes, you can maintain multiple current accounts, but consider the combined minimum balance requirements and maintenance charges.
