The Startup-India initiative was launched and given a big boost in the country recently. A number of Public and Private sector banks started offering a range of current bank accounts to support the rising entrepreneurs in India. So, if you are a startup enthusiast and thinking to put your innovative ideas into action, this post shall guide you in selecting the Best Current Bank Account for your small business in India.

Being a startup owner, you often tend to become confused when it comes to selecting the right current account for your business. Let’s share an important pre-requisite in running a new business, having a Current account. We shall also highlight some of the highly popular startup current accounts in India (not in any particular order) and some insightful details on them.

What is Current Account? Meaning

Current account is a popular type of bank account in India. It is primarily meant for business people who perform high volume of banking transactions. Simply stated, Current account is a bank account meant to make the banking transactions of a business holder easier and smoother. This account is a great fit for businessmen, proprietors, firms, companies and other business enterprises who have to do a large no. of deposits and withdrawals on a regular basis.

Are you interested in Stock trading, do have a look at Best Trading Platform in India

Current Account: Features & Benefits

Thinking to open a current account, here are the benefits to analyze:

1. Zero Interest Account:

You won’t fetch any interest on your Current Account balance. As an account holder, you won’t earn any interest unlike a savings bank account.

2. Frequent Deposits & Withdrawals:

There is no limit on number of transactions in your current bank account and this is ideal for carrying out huge no. of financial transactions.

3. Overdraft Facility:

A current account allows you to overdraw the balance in your bank account to meet your short term fund requirements.

4. Distinguish between business and personal expenses:

You can use your current account for reflecting your business income and related expenses. This is a good and correct way to segregate your business and personal finances.

Do Enjoy Reading  Option Trading: Meaning,Types of Options & Examples

5. Improve your Creditworthiness:

Having a current account in your business name surely adds up to your credibility and seriousness of doing business.

6. Value added services:

Cheque book facilities, internet banking and mobile banking are the basic and common services that you get with each bank account. In addition to it, current bank accounts may offer free pay orders/demand drafts, instant NEFT/RTGS facility, multi-location transfers, free inward remittance and other personalised services.

So, yes opening a current bank account comes loaded with a package of numerous benefits to run a successful business. Moreover, a few banks (not all) have the Zero balance account option i.e. you don’t have to maintain a minimum balance in your account. This further adds up to the advantages of having a separate current account apart from a normal savings bank account.

best current bank account, best current account India, best current account,current account

Current Bank Account in India: Important Points

  • A Nearby Branch: Select a branch nearby to your office space or business location. This ensures easy access of the branch in case need arises.
  • Proper Research: Do thorough research before selecting a particular current bank account. Read all the terms and conditions carefully and clarify them before applying for any of the bank accounts.
  • Minimum Average Monthly Balance: This one is indeed a crucial factor while deciding the bank where you wish to open a current account in India. Initially, any startup founder might wish to go for zero or less minimum balance accounts in order to carry on their work freely.

Current Account in India for Small Business/Startup:

Some of the common current accounts include:

1. ICICI Bank Current Account:

ICICI offers a customised current accounts to accelerate the pace of your new startup or already established corporate business.

You can explore 2 current account options:

  • New Startup Account: ICICI iStartUp Account
  • Shubhaarambh Current Account


  • A quick and secure banking experience for startup enthusiasts looking to achieve their business and financial goals.
  • Enjoy a Zero average monthly balance current account for the initial 6 months.
  • Have easy access to your money anytime and at any place along with a host of useful services.
  • Get customised payment and collection facility, a feasible alternative for startup founders and budding entrepreneurs.
  • You can avail forex, advisory and other personalised services as per your business model.
Do Enjoy Reading  Value Investing in India: Meaning, Principles & History

A convenient option to make your financial moves through technology led integrations. You also get the opportunity of meeting Venture Capitalists(VCs) and big investors at various ICICI events. This is indeed a big attraction for startup freaks looking for funds to expand their working.

2. HDFC Smart Up Account:

HDFC Smart Up Accounts, a common choice for entrepreneurs and firms when it comes to opening a current bank account in India. HDFC brings for you a smart solution to meet the business and professional needs of your startup. Two variants primarily to choose from:

  • HDFC Bank SmartUp Alpha: Zero balance facility for an year
  • HDFC Bank SmartUp Max: A Preferred Account


  • A business account offering you a wide range of services like free cash deposit subject to a specified limit.
  • Forex services, payment gateway, digital banking, easy foreign trade and remittances further add to its numerous advantages.
  • Grab a free debit card and enjoy amazing discounts and cash back on your spends.
  • You also get a range of allied services like advisory, logistics, public relations etc. to support your growing startup.

3. Axis Bank StartUp Account:

Another addition to the list of best current accounts in India is the Axis Bank StartUp Account. This one seems to be quite user friendly if you wish to grab maximum benefits and zero average monthly balance.


  • Open a Zero balance current account and enjoy free banking for the initial 24 months. Indeed, a big sigh of relief for the startup owners.
  • Do as many withdrawals & deposits at branches located anywhere in India( based on predefined limits).
  • This special start-up account comes loaded with a bulk of free benefits like cheque books, DDs, PO issuances, forex, NEFT and RTGS services.
  • Being a technology driven startup, you will get to know the startup banking & provisions.

You may also like: Flexi Business Loans- A Smart Way to Manage Your Business

Yes Bank Head StartUp Account:

Yes bank Head startup comes packed with a plethora of customised services and privileges with a number of dedicated startup branches in the country.

Do Enjoy Reading  Best Trading Platform in India: Online Portals by Stock Brokers


  • A customized current account suiting your business demands.
  • You enjoy seamless digital banking through the online platform.
  • A comprehensive package of startup oriented banking services like Working capital finance, management and investment solutions.
  • Yes Head StartUp Privileges Program is overloaded with value added services consisting of registration, incubation, investor meetings and personalised assistance.

However, in general Yes bank has a 3-tier structure based on your usage and scale of business:

  • Edge Business: Best suited for a new business with less volume of transactions.
  • Prime Business: For a growing business needing increased services with high volume of transactions.
  • Exclusive Business: For an established business looking for maximum benefits, cost-saving features and best in-class services associated with a current account.

Important: After the recent happenings and reading the Yes bank story, with rising uncertainty related to its services , it’s surely not a popular choice anymore for startups or businesses.

Note: SBI or State Bank of India, one of the leading and popular nationalised banks in India offers you the facility to open a Basic Current account. The monthly average balance is based on the location of your branch i.e. personal banking, rural or non-rural. SBI Incube, a specialised branch has also been introduced to understand and cater to the banking and financial needs for setting a startup in India.

Similarly, you can checkout Kotak Neo Current account, IndusInd Bank Made 2 Order Current Account and so on. We have picked and discussed few of the popular current bank accounts in India. There are many others to add up in this list, the ones that you can consider based on your own requirements and priorities.

If you are looking for innovative business ideas, don’t miss to checkout Best Business Ideas for Beginners

Now, you are aware of What is a Current Account? and learnt some exclusive details on few of the Best Current Accounts in India for Small business. Act wisely and analyse all your banking requirements and choose the one that perfectly matches your financial needs and priorities.