Skip to main content

Featured Post

How to Pick Mutual Funds That Beat the Market

  Smart Strategies for Investing in Mutual Funds: A Guide to Maximising Your Returns One of the most well-liked investing options for people looking for expert management and diversification without having to choose individual equities is a mutual fund. One of the easiest ways for people to accumulate wealth over time is through mutual fund investments. Mutual funds combine the capital of numerous individuals to invest in a diverse portfolio of stocks, bonds, and other securities, in contrast to direct stock market investing, which necessitates considerable time, study, and risk tolerance. Mutual funds are a well-liked option for both new and experienced investors due to their expert management and diversification. But merely investing in a mutual fund and crossing your fingers seldom yields the best outcomes. A comprehensive approach that matches the appropriate fund selection and management strategies with your financial objectives, risk tolerance, and investment timeline is nece...
Post a Comment

What is the Current Account?








Current bank accounts are extremely popular into businessmen, companies, firms, public enterprises, who generally have a higher number of normal transactions with the bank. The current account includes withdrawals, deposits, and contra transactions. Such accounts also are called the deposit account.



A current account will be opened in most of the commercial banks. A current account is a zero-account, is mostly related to huge transactions on a daily basis. Due to the fluidity that these accounts offer, they don’t earn any interest. These also usually don't carry a limit on the amount of transactions which may be made. In India, the current account may be opened by depositing Rs.5000 to Rs. 25,000. the purchasers are allowed to withdraw the number with cheque, and that they usually don't get any interest. You can open a current account of your firm or company anywhere in India.


You can hold unlimited cash in your current account. You can see your banker's check on which a saving or current account is written. Normal KYC is used to open a current account such as identity letter, PAN, photo, GST number, a stamp of the firm or company and the name of the person to use the account, and in some cases and banks, some additional papers may be asked.  You can change your current account to a savings account by giving an application at any time. If you do not use your current account till 6 months then it becomes dormant. You can change your authorized signatory to the current bank account, just by making an application in the bank.


Advantage of current account


  • Current accounts allow handling of a large number of receipts and/or payments systematically


  • Under these accounts, unlimited withdrawals are allowed in line with the levied cash transaction fee


  • There are no restrictions applied on the deposits made among the current accounts opened at the bank’s home branch. Additionally, current account holders can also deposit cash at other branches upon paying small fees as applicable.


  • Cheque, pay-order, or demand-draft can be issued via a current account for making direct payments to creditors.


  • Overdraft facilities are also available for account holders.


  • Businesses are an additional benefit with various other benefits within the kind of free inward remittance, deposit and withdrawal at any location.


  • The businessmen can withdraw from their current accounts unlimited, subject to banking cash transaction tax if any levied by the government of India.


  • Assists creditors of the account holder who can have access to information on the account holder’s creditworthiness through interbank connection.


  • It facilitates the industrial progress of the country. Without using the current account facility, businessmen would face difficulties in running their businesses.


  • Provides with net-banking, mobile-banking and BHIM App to enable businessmen to carry out important business transactions promptly and with ease.


Its also provides various many other benefits such as:

  • Deposit and withdrawal of cash at any location.


  • Multi-location funds transfer.


Disadvantages of the current account


  • There is a chance cost of losing on the interest rates because of low or zero interest on money within the current account.


  • There is an operational charged attached since the most package accounts offer services at additional costs.


  • The involved paperwork and fine print serve to be lengthy and confusing.


  • Huge fees because of corporate business transactions.


  • There is a limit on the number of funds which will be withdrawn during a day.













Labels:

Comments

Post a Comment

Popular posts from this blog

Know All About Sovereign Gold Bond Scheme (SGB)

    The first time Sovereign Gold Bond Scheme was first introduced by the Government of India in the Union Budget of 2015-16. It was introduced by the Government of India to reduce the demand for the physical gold form and a part of this physical gold is bought every year in the form of gold bands for the purpose of invest in SGB.   Latest on Sovereign Gold Bond Scheme    A tenth tranche of the buy SGB Series – The Sovereign Gold Bond Scheme 2021-22 - Series X in which the Reserve Bank of India (RBI) sell gold bonds linked to the market price of gold on behalf of the government made available for investment will be open for buy SGB for the period from February 28th to March 4th.   What is Sovereign Gold Bond?   The Sovereign Gold Bond is an initiative taken by the Government of India to reduce the demand for physical gold as per the Reserve Bank of India as the increasing import of gold is affecting the growth and investment of India. Large quantities ...
Post a Comment
Read more

Know that senior citizens get many special concessions in income tax

  People above 60 years of age, i.e., senior citizens, not only get the benefit of income tax exemption but also receive special relief from income tax on investments and returns. Elderly citizens do not have to pay any income tax on income up to Rs 3 lakh.   Exemption in tax limit under 80C limit: The tax exemption limit for old citizens in a financial year is Rs 3 lakh, while a common man gets tax exemption only up to Rs 2.5 lakh. For very senior citizens who are above 80 years of age, it is Rs 5 lakh. That is, if the annual income of a senior citizen is up to Rs 3 lakh and TDS has not been deducted, then he need not file an income tax return. Similarly, very senior citizens need not file income tax returns if they do not have an annual income up to Rs 5 lakh.   If the age is more than 75 years then no return is required: Those above 75 years of age are not required to file tax returns. There is no any need to file ITR for people above 75 years of age who are ...
Post a Comment
Read more

SEBI introduces a new category of funds flexi-cap in mutual funds

  Securities and Exchange Board of India (SEBI) has introduced a new fund category, Flexi-cap, in mutual funds. According to the circular, mutual funds in this category need to invest at least 65 per cent of the portfolio in equities. However, there is no restriction in terms of allocation to market capitalization range and they can dynamically shift across large-cap, mid-cap and small-cap. So, effectively, the new category of the fund in a mutual fund is how SEBI used to define the multi-cap category until it changed the category's mandate.   On September 11, 2020, SEBI issued a circular informing about the change in the mandate of the multi-cap fund's category. According to the new guidelines of SEBI, multi-cap funds need to allocate 25 per cent of the portfolio to each-large-cap, mid-cap and small-cap stocks, increasing the minimum equity allocation to 75 per cent. AMC has been given time until January 2021 to make the required changes in the portfolios of their multi-c...
Post a Comment
Read more