What are the Different Types of Charges for Current Account
In India, a current account is a type of bank account that is primarily used for business purposes. It allows account holders to deposit and withdraw money, make payments, and perform other financial transactions without any restriction on the number of transactions or the amount of money involved. However, banks may charge various types of fees and charges for maintaining a current account, which can vary depending on the bank and the type of account.
Here are some of the different types of charges that may be applicable for a current account-
Account opening charges
Most banks don’t charge any current account opening fees, but some may levy a nominal fee for the same.
Minimum balance charges
Many banks require their current account holders to maintain a minimum balance in their account at all times. If the account balance falls below the minimum balance requirement, the bank may levy a penalty fee, which can vary from bank to bank.
Monthly maintenance charges
Some banks may charge a monthly maintenance fee for maintaining a current account, which can be a fixed amount or a percentage of the average monthly balance. This fee may be waived if the account holder maintains a certain minimum balance in their account.
Cash deposit and withdrawal charges
Some banks may charge a fee for cash deposits and withdrawals made at their branches or ATMs. The charges may depend on the amount of cash deposited or withdrawn, the frequency of transactions, and the location of the transaction.
Chequebook issuance charges
Most banks provide a certain number of free cheque leaves to their current account holders every year, after which they may charge a fee for additional chequebook requests.
Stop payment charges
If a current account holder wishes to stop a cheque that they have issued, the bank may charge a fee for the same.
Overdraft is a facility provided by some banks to their current account holders, which allows them to withdraw more money than what is available in their account. However, the bank may charge a high rate of interest on the overdraft amount, which can vary depending on the bank and the amount of money involved.
Returned cheque charges
If a cheque issued by a current account holder bounces due to insufficient funds or any other reason, the bank may charge a fee for the same.
Outstation cheque clearing charges
If a current account holder deposits a cheque drawn on a bank located outside the city or state where their account is held, the bank may charge an additional fee for clearing the cheque.
Electronic fund transfer charges
Many banks in India allow their current account holders to perform electronic fund transfers through various channels such as NEFT, RTGS, IMPS, and UPI. However, the bank may charge a fee for such transactions, which can vary depending on the type of transfer and the amount of money involved.
It is important to note that the above-mentioned charges are not exhaustive and may vary from bank to bank. Some banks may also offer special benefits and privileges to their current account holders, such as free ATM withdrawals, free NEFT/RTGS transactions, and preferential forex rates.
In conclusion, a current account can be a useful financial tool for businesses and individuals who require frequent banking transactions. However, it is important to be aware of the various charges and fees associated with maintaining a current account and choose a bank that offers the most cost-effective and convenient services.