Current Account: Definition, Meaning & Guide for Indian Businesses

Current Account is a business bank account that allows unlimited transactions, cheque-book facility and overdraft. Required for any GST-registered business; not allowed to earn interest by RBI rule.

What is Current Account?

A Current Account is the operational bank account for businesses. RBI prohibits interest on Current Account balances (interest is for Savings Accounts only). What you get: unlimited daily withdrawals + deposits, multi-city cheque book, overdraft facility, payment gateway tie-up, large cash deposit limits, optional sweep-in to overnight FD for the surplus. Charged ₹500-15,000/quarter on Quarterly Average Balance (QAB) — banks waive if your QAB meets threshold (typically ₹25K-₹2 lakh). All business expenses, customer collections and vendor payments should flow through the Current Account, not a personal Savings Account. Tax audit and DPDP both require this segregation.