Академический Документы
Профессиональный Документы
Культура Документы
OF
FINANCIAL MANAGEMENT
ON
CURRENT ACCOUNT
Roll No 5789
MBA-I (A)
Current Account is one of the most basic and flexible deposit options for all the
business needs. These cheque operated accounts are primarily meant for
businessmen, firms, companies, and public enterprises etc that need banking
facility more frequently. Unlike savings bank account, no limits are fixed by
banks on the number of transactions permitted in the Account.
Most of the banks usually insist for a higher minimum balance as compared to
savings account to be maintained in Current account. Now Current accounts are
available with debit card and online banking facilities which make the
transactions easier. Certain service charges are also imposed for operating
current account. However these accounts cannot be considered as a saving
account since the banks are not allowed to pay any interest to current account
balance. In case of death of the account holder his legal heirs are paid interest at
the rates applicable to Savings bank deposit from the date of death till the date
of settlement.
As per RBI directive banks are not allowed to pay any interest on the balances
maintained in Current accounts. However, in case of death of the account holder
his legal heirs are paid interest at the rates applicable to Savings bank deposit
from the date of death till the date of settlement. Because of the large number of
transactions in the account and volatile nature of balances maintained, banks
usually levy certain service charges for operating a Current account.
1. An individual
2. Two or more individuals
3. Sole proprietorship concerns.
4. Partnership concerns.
5. Hindu Undivided Family (HUF).
6. Limited Companies.
7. Clubs, Societies.
Employers often transfer wages directly into the current account. Current
accounts provide the facility to make direct payments for bills, rent and
mortgage. There are two ways in which a current account holder can do this:
Standing Order:
If one instructs the bank in which s/he holds a current account to make a
monthly payment of a fixed amount to a particular person, it is known as a
standing order. Account holders can also change the amount by intimating the
financial institution or bank.
Direct Debit:
When customers instruct their banks to pay an amount (that is not fixed) to a
particular person, it is known as a direct debit. The party that has to withdraw
the payment can do so by informing the account holder.
HDFC bank provides various kind of banking solutions. HDFC Current Bank
Account is one such banking service provided by the bank. There are various
kinds of current accounts which are provided by the bank so that the customers
can choose the one that they need. They are briefly discussed below:
• Plus Current Account: HDFC plus Current Bank Account provides the
feature of multicity banking across 550 cities in the country. The average
quarterly balance to be maintained in this bank account is Rs. 1, 00,000. Among
the other features are, free fund transfer among the HDFC bank accounts,
payment and collection through RTGS is free, payment and collection through
NEFT is free, 50 DDs and 50 POs can be issued free of cost every month, free
at-par cheques (300 leaves), 24 hours phone banking, net banking and mobile
banking.
• Trade Current Account: The average quarterly balance to be maintained in
this bank account is Rs. 40,000. Among the other features are, free fund transfer
among the HDFC bank accounts, payment and collection through RTGS is free,
payment and collection through NEFT is free, 30 DDs and 30 POs can be issued
free of cost every month, free at-par cheques (200 leaves), 24 hours phone
banking, net banking and mobile banking.
Free up to 50 Pay Orders (PO) per month and can be issued from any HDFC
Bank Branch.
Free anywhere collection & payment transactions (clearing) within HDFC Bank
branch network up to Rs.100 lacs per month.
Register for InstaAlert service and receive updates on your account as and
when the select transaction happens - all this without visiting the branch or
ATM!
Enjoy facilities like 24-hour Phone Banking, Net Banking and Mobile Banking
that helps you check your balance & transaction details, find out the status of
your cheque or stop cheque payment.
• For regular current account the average quarterly balance required is Rs 5000.
• Rs 5000 for the accounts at urban areas and Rs 2500 for the accounts of semi-
urban areas.
Current A/c: Rs.50/- once during the month for metro/urban branches when the
average balance falls below minimum level-Rs.25/- for other centres
Current Account closed within 6 months of opening of the account Rs. 100.00