A current account is a transactional bank account for businesses. Unlike savings accounts (which have transaction limits), current accounts allow unlimited deposits, withdrawals, and transfers — making them essential for businesses that process dozens or hundreds of transactions daily.
Key features: no limit on transactions, overdraft facility, cheque book, and demand draft services. The trade-off? Most current accounts pay zero interest on the balance. Banks make money from the float (using your idle funds) and from fees charged for services.
Current accounts require a minimum balance (typically Rs 10,000-25,000 in India) — much higher than savings accounts. They come with features like cash management services, bulk payment processing, and integration with accounting software. Every registered business, from a small shop to a multinational, needs a current account.