What Are the Different Types of Current Accounts in India?

Managing money becomes simpler with a customised current account. But what defines this primary bank account type? What digital options exist today? How do overdrafts, debit cards, and internet banking benefit users?

This article will cover current accounts, from versatile features and associated benefits to various sub-types and online opening processes.

What is a Current Account?

A current account is an essential bank account for regular transactions. Unlike savings accounts meant for depositing money, current accounts allow account holders – individuals or businesses – to withdraw, transfer or receive funds instantly any time needed.

There is no restriction on the number or amount of transactions that can be done. Current accounts offer chequebook facilities as well for making payments. They are best suited for daily expenditures and regular business financial dealings rather than long-term savings.

Features of Current Account

Current accounts stand out for their flexibility and convenience in managing daily banking needs. Key features include:

  • Overdraft Facility: Provides temporary liquidity flexibility.
  • Unlimited Transactions: No cap on the number or value of transactions.
  • Chequebook and Debit Card Facilities: Simplifies payments and withdrawals.
  • Digital Access: Enables easy monitoring of balances and transactions through web and mobile banking portals, an aspect where banks like IDFC FIRST Bank have made significant strides in offering user-friendly digital banking experiences.

Benefits of a Current Account

A current account offers multiple advantages for daily financial activities. It allows seamless execution of numerous transactions without restrictions, proving essential for businesses dealing with large cashflows.

The overdraft facility also gives temporary liquidity flexibility to account holders. Current accounts enable convenient expense monitoring and payments via cheques, internet banking, and dedicated debit cards.

Types of Current Accounts

Different types of current accounts are available to cater to various user needs.

  1. Standard Current Accounts: This account offers a regular range of basic banking and payment facilities through instruments like cheques, debit cards, net banking, etc. This works for routine transactions of most individuals and businesses.
  2. Basic Current Accounts: It will provide all regular account services except overdrafts for those with low credit ratings.
  3. Premium Accounts: They will charge monthly fees but also bundle value-adds like travel concierge assistance, personal financial advisers, and higher interest rates – benefiting high net-worth clientele.
  4. Packaged Accounts: This account will also set monthly charges while addressing lifestyle needs via additions like restaurant offers, movie tickets, and retail vouchers alongside the usual mobile/health insurance – a decent pick for younger spenders.
  5. Foreign Current Accounts: This account allows the holding of money in different currencies and gives specialised cross-border remittance facilities. This suits frequent overseas travellers and global dealing firms alike.

How to Open a Current Account Online?

Current account opening digitally with any chosen bank is relatively simple, for example, with IDFC FIRST Bank:

  • Identify and visit the e-banking portal of your preferred bank, like with IDFC FIRST Bank
  • Browse through the different current account types and features to pick one that suits your needs
  • Fill out the online application form providing essential personal and professional details
  • Upload documents like ID proof and address proof for instant verification
  • Make initial funding deposit through net banking/UPI if needed
  • E-account gets activated in a few hours post-requisite verification

What are the Documents Required to Open a Current Account?

Standard KYC documents needed to open current accounts are –

  • Identity proof – Passport, Voter ID, PAN Card, Driving License
  • Residential proof – Aadhar, Electricity/Landline Bill, Rental Agreement
  • Income documents – 3-month Salary Slips, Paystubs, IT Returns (sometimes)
  • Passport size photographs
  • Submitting these when applying, either online/offline, helps banks instantly verify applicants before approving current accounts.


Current accounts provide specialised facilities for daily and frequent banking transactions conveniently. Standard, basic, premium, and packaged accounts cater to different user needs. Electronically accessible via web portals/mobile apps along with usual debit cards and cheques, they aid both individuals and enterprises in managing expenses and banking on an ongoing basis seamlessly.

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Eden Ellis

Eden Ellis, a Business Strategist with an MBA, specializes in corporate strategy, market analysis, and entrepreneurship. His experience with multinational corporations and startups provides a unique lens through which he examines business dynamics, offering actionable insights for companies navigating the complexities of the modern business environment.
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