Cash Deposit Limits in Business Current Accounts: An In-Depth Guide

Managing cash deposits is a crucial aspect of business banking. Different types of current accounts come with varying limits on free cash deposits and associated charges. In this guide, we’ll walk you through the cash deposit limits for various current account offerings (Regular, Premium, Business Edge, Privilege, Maxima, and Digital) from Ujjivan - a leading small finance bank, and how these limits work. 

Understanding Cash Deposit Limits in Current Accounts

Current accounts are designed for frequent transactions, and banks often allow a certain amount of cash deposits for free each month. Depositing cash beyond the free limit incurs charges. The exact free cash deposit limit and the charges for exceeding it depend on the type of current account you choose. Higher-tier accounts typically offer higher free deposit limits (sometimes calculated as a multiple of your balance) and lower excess charges, in exchange for maintaining a higher minimum balance.

Flexibility Options – Flexi Now and Flexi Next: Some premium current accounts let you define your own cash deposit limit through innovative schemes called Flexi Now and Flexi Next. These options tie your free deposit limit to your Monthly Average Balance (MAB) either in the current month (Flexi Now) or the previous month (Flexi Next). Essentially, the more you maintain in your account, the more cash you can deposit for free. We will discuss which accounts offer these flexible schemes and how they work in practice.

Let’s explore each type of current account, their minimum average balance requirements, free cash deposit limits, excess deposit charges, and any Flexi Now/Next flexibility. For quick reference, each section includes a summary table of key features and deposit limits.

Regular Current Account (Entry-Level Business Account)

The Regular Current Account is ideal if you run a small or start-up business with modest transaction needs. It has the lowest balance requirement and a straightforward deposit limit.

• Minimum Average Balance (MAB): ₹5,000 per month. This low MAB makes it accessible for new and small businesses. Failing to maintain ₹5,000 leads to a nominal non-maintenance fee (about ₹300/month) – but importantly, it also means your free deposit limit could be impacted (since it’s fixed in this case, you mainly incur the penalty fee for non-maintenance).
• Free Cash Deposit Limit: ₹1.5 lakh per month (₹150,000) across all branches. This means you can deposit up to ₹1.5 lakh in cash every month at the bank’s branches without any charge. This generous limit (30 times the required MAB) covers the needs of many small businesses.
• Charges Beyond Limit: If your cash deposits exceed ₹1.5 lakh in a month, a fee of ₹4 per ₹1,000 (0.4%) is charged on the excess amount. For example, depositing an extra ₹50,000 beyond the free limit would incur a ₹200 fee. A minimum charge of ₹25 applies if any deposit beyond limit is made.

Below is a summary of the key features for the Regular Current Account:

This Regular account gives you unlimited Ujjivan ATM withdrawals and charges no fees for deposits up to ₹1.5 lakh, which is usually plenty for a small enterprise. If your cash deposits and business scale are relatively low, this account’s limit and low balance requirement will suit you fine. However, as your business grows, you might outgrow the ₹1.5 lakh deposit limit and need an account with a higher cap.

Premium Current Account (For Growing Businesses)

The Premium Current Account is designed for growing businesses that handle higher cash volumes and require higher transaction limits than the Regular account. It maintains moderate balance requirements while significantly boosting the free deposit allowance.

• Minimum Average Balance: ₹10,000 per month. This is double the Regular account’s requirement, reflecting its higher privileges. It’s still a relatively low bar for many SMEs. Non-maintenance fees are around ₹500/month if the balance isn’t kept.
• Free Cash Deposit Limit: 10 times the previous month’s MAB or ₹3 lakh, whichever is higher. In practice, this means at least ₹3,00,000 per month is free to deposit, and if you kept a higher balance, your limit increases. For example, if you maintained ₹50,000 MAB last month, your free deposit limit this month would be ₹5 lakh (10×50k), which is above the ₹3 lakh minimum. The bank uses your last month’s average balance to set a generous limit for the current month.
• Charges Beyond Limit: ₹4 per ₹1,000 on amounts beyond the free limit (minimum ₹25 charge) – the same rate as the Regular account. However, since the free threshold is higher, you’re less likely to incur this fee unless you handle very large cash sums. For instance, depositing ₹4 lakh in a month when your limit is ₹3 lakh would incur ₹1,000 in fees (on the ₹1 lakh overage).

Here’s a summary table for the Premium Current Account:

With the Premium account, you enjoy a higher baseline for deposits (never below ₹3 lakh free per month). This is suitable if your business sees moderate cash turnover. The dynamic limit rewards you for keeping higher balances: maintain a higher MAB and your next month’s free deposit allowance grows accordingly. This account strikes a balance between low requirements and decent limits, but if your cash deposits regularly exceed a few lakhs, you may benefit from the higher-tier accounts described next.

Business Edge Current Account (Medium to Large Enterprises)

The Business Edge Current Account is tailored for medium to large businesses or any enterprise that needs advanced flexibility. This account introduces the Flexi Now/Flexi Next system, allowing you to maximize your free cash deposit limit based on how you maintain your balance.

• Minimum Average Balance: ₹25,000 per month. As a higher-tier product, it expects a higher balance than Regular or Premium. This ₹25k MAB is the baseline to unlock its enhanced features.

• Free Cash Deposit Limit: Up to 20× your MAB per month, with specific slabs under Flexi Now/Next. Ujjivan SFB allows you to choose how the limit is calculated:
  i) Flexi Next: uses your previous month’s average balance.

  ii) Flexi Now: uses your current month’s average balance in real time.

  
  Depending on your balance, the free deposit limit is determined as follows:

  i) If MAB < ₹1 lakh: free deposit = 12× MAB, with a minimum of ₹5 lakh (so even a low balance gets at least ₹5 lakh free)

  ii) If MAB is ₹1–5 lakh: free deposit = 15× MAB

  iii) If MAB ≥ ₹5 lakh: free deposit = 20× MAB

  
  For example, suppose you maintain ₹2 lakh as average balance. Under Flexi Next, the next month you could deposit 15×2L = ₹30 lakh cash free. If you choose Flexi Now, and your running current-month average hits ₹2 lakh, you’d likewise have ~₹30 lakh free in that same month. The key difference is timing: Flexi Next rewards last month’s balance, while Flexi Now adjusts on the fly as you deposit and maintain funds. Both options ultimately can yield very high free limits for large balances (e.g. a ₹5 lakh balance gives ₹1 crore free deposit limit at 20×).

• Charges Beyond Limit: ₹4 per ₹1,000 beyond the free limit (minimum ₹25). This is the same rate as lower accounts. The idea is that you likely won’t hit this fee due to the enormous free limits if you maintain the required balance. But if you ever do exceed the free limit (say you maintained ₹50k average but deposited ₹1 crore in a month – exceeding your 12× or 15× allowance), the excess would incur 0.4% fee.
• Flexi Now / Flexi Next Option: Yes – fully available. This account’s standout feature is letting you choose between Flexi Next and Flexi Now schemes for determining your deposit limit. You have flexibility to decide if you want the limit pre-set based on last month or to increase it during the month based on current balance. This can be very useful: for instance, if you anticipate a large deposit this month but didn’t hold a high balance last month, you might opt for Flexi Now and beef up your balance this month to raise the limit immediately.

Here is a summary for Business Edge:

With a Business Edge account, you get a truly flexible cash deposit structure. For many mid-sized businesses, the ability to deposit, say, ₹50–₹60 lakh in cash per month free of charge (by maintaining ~₹3 lakh balance for Flexi Next or building it in-month via Flexi Now) is a game-changer. It essentially scales with your business: the more working capital you keep, the more cash you can circulate without fees. Just remember that to take full advantage, you must meet the MAB slabs; otherwise, the default floor of ₹5 lakh free deposit still far exceeds the lower accounts’ limits.

Privilege Current Account (High-Priority Business Banking)

The Privilege Current Account is an exclusive offering for businesses that require very high transaction limits and value-added services. It carries a higher balance requirement but in return provides enormous free deposit capacity – potentially into crores – along with premium perks.

• Minimum Average Balance: ₹50,000 per month. This higher MAB signals that it’s meant for established businesses handling large volumes. The penalty for non-maintenance is higher as well (to discourage falling below the requirement).
• Free Cash Deposit Limit: Up to 25× your MAB, capped at ₹2.5 crore per month. The Privilege account uses the Flexi Now/Next framework similar to Business Edge, meaning you can define the limit based on current or previous MAB as you prefer. In practical terms, if you maintain the minimum ₹50k balance, you’d get 25×50k = ₹12.5 lakh free deposit each month. But you can increase your average balance to raise that limit; the maximum free deposit allowed is a whopping ₹2.5 crore per month under this account. For example, maintaining an average of ₹10 lakh could give you a ₹2.5 crore free deposit threshold (since 25×10L = ₹2.5 cr). This immense limit covers the needs of cash-intensive operations. And if ₹2.5 crore isn’t enough, you can still deposit more – but then fees apply beyond that.
• Charges Beyond Limit: ₹3 per ₹1,000 on excess amount. This rate (0.3%) is a bit lower than the ₹4/₹1,000 for mid-tier accounts, as a reward for Privilege customers. So even if you cross the free 2.5 crore limit, the fee is relatively modest. For example, ₹1 crore beyond the limit would incur ₹30,000 in fees.
• Flexi Now / Flexi Next Option: Yes – available. Like Business Edge, Privilege account holders can choose Flexi Now or Next to set their deposit limit formula. This customization ensures you’re not stuck with one method; you can opt to have the limit based on last month’s balance or grow it during the current month. High-turnover businesses often prefer Flexi Next (previous month) so they start each month with a predetermined large limit, but the choice is yours.
• Other Benefits: Along with high limits, Privilege accounts come with perks like unlimited cash withdrawals at any branch (no branch withdrawal fees), free Cash Management Services (CMS), and a RuPay Platinum Debit Card that offers lounge access and a ₹10 lakh insurance cover. These enhance your banking convenience when you’re dealing with big numbers.

Summary of the Privilege Current Account:

Maxima Current Account (Top-Tier – Maximum Flexibility)

The Maxima Current Account is the highest tier, offering maximum flexibility and limits for businesses with very high transaction volumes. It carries the highest balance commitment but, in exchange, pushes the cash deposit limits to the maximum offered by the bank.

• Minimum Average Balance: ₹1,00,000 (1 lakh) per month. This is a significant MAB, indicating this account is for well-capitalized businesses. By maintaining at least ₹1 lakh on average, you unlock the Maxima’s full benefits.
• Free Cash Deposit Limit: Up to 30× your MAB, capped at ₹3.5 crore per month. Like the Privilege account, Maxima uses the Flexi Now/Next system so you can customize your deposit limit calculation. The multiple here is even higher (30 times balance).
  
  With the ₹1 lakh minimum, that’s ₹30 lakh free deposit out of the gate. And if you keep higher balances, the limit grows proportionally until the cap of ₹3.5 crore per month is reached. 
• Charges Beyond Limit: ₹2.5 per ₹1,000 on excess deposits. This is the lowest fee rate (0.25%) offered, reflecting the premium status of Maxima. If you ever deposit beyond ₹3.5 crore in a month (an unlikely event for most, but some businesses might), the fee on the extra amount is very low. For instance, an extra ₹1 crore past the free limit would cost ₹25,000 in fees – half the amount that Privilege would charge for the same overflow.
• Flexi Now / Flexi Next Option: Yes – fully available. Maxima users can also decide between Flexi Now or Next for setting their limits.

• Other Benefits: The Maxima account bundles a RuPay Select Debit Card (even higher than Platinum) with perks like exclusive merchant offers, airport lounge access, and even a premium health check-up package. It also supports “beyond banking” services – e.g., tax payments, HR payroll solutions – to complement your high-end banking needs.

   

Maxima Current Account summary:

The Maxima account is all about pushing the limits to accommodate heavy-duty cash operations. For a business dealing in large cash turnover – for example, retail chains, wholesalers, or enterprises handling cash collections in crores – Maxima ensures you can deposit those funds in the bank without worrying about fees up to extremely high amounts. The combination of a 30× balance multiplier and a multi-crore cap essentially means your free deposit allowance grows with your business. And with the lowest over-limit fee rate, even extraordinary deposits won’t cost much. Of course, to get these benefits you need to commit to maintaining a high balance of ₹1 lakh or more, but if your transaction level demands Maxima, that requirement is likely within reach.

Digital Current Account (All-in-One Digital Solution)

The Digital Current Account blends the features of the above accounts with the convenience of online account opening and management. It’s marketed toward businesses or entrepreneurs who prefer digital banking without frequent branch visits, yet it doesn’t skimp on transaction limits.

• Minimum Average Balance: The Digital account carries a similar requirement to top-tier accounts. While exact figures aren’t prominently advertised, indications are that it requires a substantial initial funding (the bank’s site suggests around ₹1 lakh initial funding for Digital), implying a high MAB in line with the Maxima account. This ensures Digital account holders are serious businesses ready to utilize large limits.
• Free Cash Deposit Limit: Flexible (via Flexi Now/Next), high-limit similar to Maxima/Privilege. The Digital Current Account is described as having a “flexible cash deposit limit” and incorporating “all the best features of the other current accounts”. In practice, this suggests that if you open a Digital account, you can expect deposit limit functionality comparable to Privilege or Maxima – meaning a multiple of your balance and very high caps. While the exact multiple isn’t explicitly stated, it’s likely on par with the highest tier (25× or 30× MAB with multi-crore free limit). Essentially, the Digital account gives you the benefit of the Flexi Now/Next system so you enjoy a large free deposit allowance that scales with your balance, just like the Maxima account.
• Digital Convenience: The real differentiator is convenience – you can open this account online, from anywhere (within the bank’s service area) without needing to visit a branchujjivansfb.inujjivansfb.in. It also offers unlimited free ATM withdrawals and zero charges on many digital transactionsujjivansfb.in. It essentially mirrors a Maxima/Privilege account in capability, delivered through a seamless digital banking experience.