Question

what are the advantages of current acoount​

Answer 1

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Unlimited transactions.

Tracking.

Online banking.

Multi-city banking.

Overdraft facilities.

Helps organize business.

Value-added services.

Issue of bank guarantee.

Answer 2

Answer:

8 Benefits of having a current account

You can undertake business and commerce in India by complying with the various laws governing the activities. These include sector-specific laws as well as banking laws which can impact the way businesses are run. For instance, the Income-tax Act allows certain deductions of business expenditure while computing business income but not the expenditure of a personal nature. Thus, there is a need to segregate personal transactions from business transactions. With the recent introduction of GST regime, most businesses have come under the formal sector which discourages cash transactions. By its very nature, businesses make many more transactions than purely personal transactions. With a view to maintaining the integrity and separate identity of business transactions from personal transactions, the banking industry offers business current accounts with features different from the personal savings bank account.

Explanation:

Let’s know about 8 Benefits of having a current account.

Unlimited transactions

A business current account allows you to perform unlimited transactions in tune with the nature of your business. You don't have to limit your transactions just as you would on your personal savings account.

Tracking

You can recall all your transactions whenever you want as the bank which holds your business current account can store your transactions as and when they occur.

Online banking

Among the most important current account benefits is the online banking service on your current account. There are numerous benefits of online banking which help in operating the account effortlessly. You can use the various features of online banking to organize your banking transactions and ensure efficiency in your business. For instance, you don't need to go to a bank branch to deposit a cheque because you can receive funds through NEFT, RTGS or IMPS easily and quickly so that your funds are available for use almost instantaneously. Similarly, you can pay your suppliers online without having to issue cheques.

Multi-city banking

With all banks embracing online banking services, you can operate the same business current account from multiple cities which can help you to consolidate your current account transactions seamlessly. Thus, if you have offices or depots or sales outlets in other cities, you can use the bank branch in that city to deposit cash into your current account.

Overdraft facilities

You can experience some delays in your receipts or payments because of the vagaries of the business you are in. Sometimes, these can cause you financial distress in terms of not having enough funds in your current account to pay for raw materials. You can always fall back upon an overdraft facility that banks can offer you on your business current account.

Helps organize business

You will feel the benefit of a current account if you are a sole proprietor running a business. As a sole proprietor, there is no distinction between individual and business when it comes to complying with some laws such as the Income-tax Act. Often, proprietors tend to use a personal account for business as well. This hinders the proprietor from monitoring the business part of the account as finances can get mixed up with personal finances. The current account eliminates this lacuna and you can focus only on the business through the current account.

Value-added services

You can avail many value-added services at no extra cost because of competition. Banks don't want to lose you as a customer if you are a sound one. They tend to offer many services such as interest on the balances in your business current account, withdrawal and deposit at multiple locations, 24/7 phone banking, mobile alert services, Internet banking and doorstep banking. You can also avail many other services such as the free issue of pay orders, demand drafts, instantaneous transfer of funds and zero balance. If you have a sufficiently large business you can have access to a relationship manager who is the point person for your current account.

Issue of bank guarantee

You can avail bank guarantee services when you maintain a current account with a good track record. This helps you in your business because many customers and vendors demand bank guarantees. This facility is more useful if you undertake exports and if you import raw materials. From the foregoing, it is clear that there are many current account benefits you can enjoy by opening a business current account with IDFC Bank. You can check the website to learn about the documents required for current account opening.

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