Current Account 101: Meaning, Features and Types

July 21, 2025

what-is-a-current-account

Banks offer different types of interest-bearing accounts – Savings Accounts, Fixed Deposits, Recurring Deposits, etc. All these accounts offer interest rates, which contributes to your financial growth. However, there’s another type of account- Current Account – an account designed to simplify day-to-day business transactions.

 

Read this blog to understand how a Current Account works, its types, features, and more.

 

What is a Current Account?

A current account is a type of account designed primarily for businesses, entrepreneurs, and professionals who engage in frequent and high-volume financial transactions. Unlike savings accounts, current accounts do not typically earn interest but offer features such as higher deposit and withdrawal limits, and seamless fund transfers.

 

Current accounts are ideal for managing day-to-day business operations, including payments to vendors, payroll processing, and receiving customer payments. They also come with additional tools like cheque books, debit cards, and online banking for convenience.

 

Key benefits of a current account include faster transaction processing, higher transaction limits, and enhanced banking services like trade finance and cash management. However, they may require maintaining a minimum balance, and non-maintenance could result in penalties.

 

Types of Current Accounts

Ujjivan Small Finance Bank offers 6 types of current accounts meticulously designed to meet your unique business requirements.

 

1. Regular Current Account

The Regular Current Account is designed to make business banking simple and convenient.

 

What you get:

 

  • Free and unlimited transactions at Ujjivan SFB ATMs
  • Zero additional charges for non-home branch transactions
  • Flexible cash deposit limit across branches
  • Net Banking and Mobile Banking facilities
  • Doorstep cash and cheque pick-up facility (available in select cities)
  • 24/7 customer care in your preferred language

 

2. Premium Current Account

Enjoy higher ATM withdrawal limit and superior customer service with Ujjivan’s Premium Current Account.

 

What you get:

 

  • Enhanced shopping and ATMs withdrawal limit of ₹1 lakh
  • Up to 50 Free cheque leaves per quarter
  • 50 free cash withdrawals every month at Ujjivan SFB branches
  • RuPay Classic Debit Card with six free transactions at non-bank ATMs
  • Different POS solutions like Android POS terminals, MPos, and paper and digital GPRS

 

3. Business Edge Current Account

Flexible and convenient, the Business Edge Current Account is designed to supercharge your business activities.

 

What you get:

 

  • Feature-packed RuPay Platinum Debit Card
  • Unlimited free transactions across Ujjivan ATMs
  • 1 complimentary lounge access per quarter
  • 10 free transactions/month at other bank ATMs
  • Enhanced daily ATM transaction limit up to ₹1.5 lakh

 

4. Privilege Current Account

With the Privilege Current Account, you can customise your cash deposit limit, thanks to Flexi Now and Flexi Next facilities. 

 

What you get:

 

  • RuPay Platinum Debit Card that comes with multiple offers, discounts and insurance facilities
  • 200 free cheque leaves per quarter
  • Unlimited cash withdrawal at any branch
  • 24/7 customer service in your preferred language
  • Up to 9,999 transactions at a time

 

5. Maxima Current Account

Maxima Current Account offers more than just business banking. Enjoy higher transaction limit, real time status check of Debit Card/cheque, and more.

 

What you get:

 

  • Define your own cash deposit limit with Flexi Next / Now*
  • Higher ATM withdrawal/POS transaction limit of ₹5 lakhs/day*
  • Beyond Banking - Account Services, Tax payment, HR Payroll etc.*
  • Up to 9,999 transactions at a time

 

Features and Benefits of Current Account

 

1. Higher Transactions Limits

Current accounts allow enhanced deposit and withdrawal limits, making them ideal for businesses with high transaction volumes.

 

2. Cheque and Demand Drafts

Businesses can issue cheques and demand drafts for seamless payments to suppliers and vendors.

 

3. Multi-Location Banking

Current accounts support banking across multiple branches, making it easy for businesses with pan-India operations to manage finances.

 

4. Ease of Online Banking

Current accounts come with robust online and mobile banking features, enabling 24/7 access to funds, bill payments, and fund transfers.

 

5. Efficient Business Operations

Current accounts streamline financial transactions, ensuring smooth day-to-day operations.

 

6. Enhanced Liquidity

The overdraft facility ensures liquidity, allowing businesses to meet urgent financial requirements. Please contact Ujjivan SFB to know more about overdraft.

 

7. Improved Financial Tracking

Detailed account statements and transaction records help businesses monitor cash flows effectively.

 

8. Multi-Channel Access

Current account holders can access banking services through ATMs, mobile banking apps, and internet banking, ensuring convenience.

 

9. Customised Banking Solutions

Many banks offer tailor-made current account solutions for specific industries, providing additional benefits like waived fees or dedicated relationship managers.

 

10. Facilitates Bulk Payments

Current accounts allow bulk payments such as salaries, supplier payments, and utility bills efficiently.

Final Thoughts

A current account is essential for businesses, professionals, and entrepreneurs who need a banking solution tailored to frequent and high-volume transactions. With features like unlimited withdrawals, and multi-location banking, it ensures financial efficiency and convenience. Choosing the right current account with features suited to your business needs can significantly enhance operational productivity.

 

Simplify your business transactions with Current Account. Open a Current Account with Ujjivan Small Finance Bank and enjoy multiple benefits.

 

Disclaimer:

The contents herein are only for informational purposes and generic in nature. The content does not amount to an offer, invitation or solicitation of any kind to buy or sell, and are not intended to create any legal rights or obligations. This information is subject to updation, completion, amendment and verification without notice. The contents herein are also subject to other product-specific terms and conditions, as well as any applicable third-party terms and conditions, for which Ujjivan Small Finance Bank assumes no responsibility or liability.

 

Nothing contained herein is intended to constitute financial, investment, legal, tax, or any other professional advice or opinion. Please obtain professional advice before making investment or any other decisions. Any investment decisions that may be made by the you shall be at your own sole discretion, independent analysis and evaluation of the risks involved. The use of any information set out in this document is entirely at the user’s own risk.  Ujjivan Small Finance Bank Limited makes no representation or warranty, express or implied, as to the accuracy and completeness for any information herein. The Bank disclaims any and all liability for any loss or damage (direct, indirect, consequential, or otherwise) incurred by you due to use of or due to investment, product application decisions made by you on the basis of the contents herein. While the information is prepared in good faith from sources deemed reliable (including public sources), the Bank disclaims any liability with respect to accuracy of information or any error or omission or any loss or damage incurred by anyone in reliance on the contents herein, in any manner whatsoever.

 

To know more about Ujjivan Small Finance Bank Products Visit:"https://www.ujjivansfb.in"

 

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to Ujjivan Small Finance Bank Limited or its licensors. Unauthorised use or misuse of any intellectual property, or other content displayed herein is strictly prohibited and the same is not intended for distribution to, or use by, any person in any jurisdiction where such distribution or use would (by reason of that person’s nationality, residence or otherwise) be contrary to law or registration or would subject Ujjivan Small Finance Bank Limited or its affiliates to any licensing or registration requirements.

   

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FAQs

1. What is the primary purpose of a current account?

A current account is designed for individuals and businesses to manage frequent and high-volume financial transactions seamlessly.

2. Can I earn interest on a current account?

No, current accounts typically do not earn interest as they are meant for transactional purposes rather than savings.

3. What is the difference between a current account and a savings account?

A savings account is for personal savings and earns interest, while a current account is for businesses with unlimited transactions and no interest.

4. Is maintaining a minimum balance mandatory for current accounts?

Yes, most banks require current account holders to maintain a minimum balance, failing which penalties may apply.

5. What are the charges associated with a current account?

Charges may include non-maintenance fees, cheque issuance fees, and cash handling fees, etc., depending on the bank.

6. Can I open a current account in multiple cities?

Yes, current accounts allow multi-location banking, making it easy to operate across various cities and branches.

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