Current accounts are non-interest bearing accounts in which the customer can deposit the fund for an unspecified period of time. In this type of account, the customer can withdraw and transfer the fund whenever required. These days one of the main focus areas of banks is to increase the portfolio of the current account.
Current Accounts are one of the profitable sources of deposits to any Bank. ln all types of deposits (i.e. fixed, savings, and call deposits), the bank has to provide interest whereas for current accounts it is interest-free and the bank does not have to provide any interest to the customers.
Any individuals, firms, institutions, and companies can open the current account as their operational account. (Current account of any firms, institutions, and companies are also avenues for salary saving account.)