In this Article How To open a Current Account with Udyog Aadhar, we will discuss what is a current Bank account, what is the benefit of current bank account, how to open a current bank account and how Udyog aadhar can be used to open a current account.
What Is A Current account?
The current account is an account opened by the bank in which there is no limit on the transaction in one day ie account holder can make unlimited transactions in one day. A current account permits exchanges past the extent of a savings account. Contrasted with a savings account, a current account requires a higher minimum balance. It is intended to encourage frequent transactions – transfer funds, get checks, money, and so forth. A Current Account can be worked by individuals, private companies, associations, trusts, and so on. The objective of a Current Account is to encourage smooth transaction in business.
What Is The Benefit of Current Account?
- Current Account has No limit on withdrawals and deposits in the home branch.
- Current account helps businessmen to make prompt business transactions, make payment using cheques, demand draft or pay orders and it provides overdraft facility as well.
- Current account also provides internet and Mobile banking facilities.
How to Open current Bank account?
To Open a Current account In Bank In India, All you have to do is make a choice of the bank where you want to open a current bank account and visit their website to apply for Current bank account or visit the bank branch along with required documents and the minimum deposit to open a current account. The requirement of documents and Minimum deposit may vary from bank to bank.
Documents required to open a current bank account
- Pan card
- Aadhar card
- Driving License
- Voter Id Card
- Utility bill such as Electricity bill, Gas Bill, Telephone Bill etc.
- Certificate of incorporation, Memorandum of association and Article of Association.
- Partnership Deed
- Address proof of Business Entity- Electricity bill, water bill and Rent agreement etc.
- Rent agreement
- GST registration
- Shop act License.
- Trade License
- Gumasta License
- Chartered accountant certificate
- Import Export Code
- Professional Tax Registration
These are common Documents That are required to open a current Bank account In India for a specific list of documents you need to check with the bank where you are applying for Current Bank account.
How can Udyog aadhar be used to open a current account?
If you are the owner of the micro, small and Medium enterprise in India. Then you must have taken Udyog aadhar registration which is form of Business registration for Micro, Small and Medium Business units in India. Udyog aadhar Is provided to the MSME Unit in form of a certificate that has a Unique registration number that certifies MSME Units to have Business Registration and Are recognized by the government of India. you can read here about the udyog aadhar benefits
Udyog aadhar helps MSME unit to get benefits such as loans at a low-interest rate, Marketing support, technology support, subsidy etc. you can read here about MSME Department.
Now coming to the topic, Udyog Aadhar can also be used to open a bank account as It is looked upon as valid Business registration proof, that means That Any MSME Unit that has Udyog aadhar registration is treated as a registered business entity in India. As you must know that whenever you apply to open a current bank account, the bank always asks for Business registration proof as they want to know whether your business is a legal business entity or not. MSME units sometimes find it difficult to get business registration, so They Opt to get Udyog Aadhar registration.
Conclusion
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