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Axis Bank Current Account

Axis Bank Current Account

Axis Bank Current Account

A current account, as stated in Axis Bank’s official website, is generally opened for pursuing frequent transactions of a business and/or profession, the quantum of which doesn’t hold a limit. This kind of a bank account is more fitting for business and professionals. The article seeks to educate the reader on Axis Bank Current Account, with special emphasis on its prime category.

Applicability

A current account is more suited and used for the purpose of businesses or profession. Hence, a current account can be opened for a partnership firm, Limited Liability Partnership (LLP), One Person Company (OPC), private limited company or a public limited company.

Benefits Offered

A current account offers the following benefits to its users:

  • Depositing money and defraying creditors is simplified, thanks to cheque-book and demand draft facility.
  • The option of setting-up standing instructions.
  • The option of conducting unlimited transactions.
  • Uninterrupted access to online banking, phone banking, and doorstep banking.
  • Facility of segregating the personal business/profession with that of personal finances in the interests of the long-term well being of the customer, and tracking of business activities to make it simpler.
  • Access to financial services such as loans to expand the business and/or profession, as well as for other purposes.

Since we now understand the benefits offered by this kind of an account, let us understand its limitations, especially when compared to a Savings Account:

  • Current account offers no rate-of interest to the account-holder.
  • No scope for tax deductions.
  • The need for maintaining balance ranges from medium-high (in most cases), in contrast to a savings account where the required minimum balance is either lower or nil.

Prime Current Accounts

Axis Bank has a wide range of Current Account Services. This article particularly deals with its assortment of prime current accounts.

The banking establishment offers the following current accounts under its prime category:

  • Normal Current Account
  • Local Current Account
  • Business Advantage Account
  • Business Select Account
  • Business Classic Account
  • Sweeps Current Account

Let us now explore each of them in detail:

Normal Current Account

A Normal Current Account renders optimal value for the company’s money with cash, non-cash and fund transfer services. It offers free cash-deposit per month for Home and Non-Home branch cash deposit, as well as the option of unlimited daily inter-city withdrawal. It accords the following benefits to the account holder:

  • The option of banking with a low-monthly average balance of Rs. 10,000.
  • Home and non-home branch cash deposits.
  • The option of non-cash services.
  • Withdrawal of money across various cities.
  • Easier transfer of funds.
  • Provision of free transaction packages.
  • The option of multi-channel banking.
  • Axis e-edge rewards.

Documents to be furnished

The following documents must be furnished to activate a Normal Current Account:

  • Proof of identity (mandatory for all).
  • Proof of address (mandatory for all).

The documents specifically demanded from public or private limited companies are:

  • Certificate of Incorporation and Commencement of Business.
  • Memorandum and Articles of Association.
  • Board resolution endorsing the activation and operation of the account.
  • OAN or General Index Register (GIR) number/Form 60.
  • List of Directors with their residential address.

For partnership firms:

  • Partnership Deed and Registration Certificate
  • Shop and Establishment Certificate
  • Letter from partners authorizing the members to open and operate an account.

For Proprietorship Concerns:

  • Certificate from a State Government or Statutory Body/Trade License/Sales Tax Certificate/Shop and Establishment Certificate.
  • Letter of proprietorship duly signed by the proprietor with a rubber stamp in his/her capacity.

For Hindu Undivided Family:

  • Letter of HUF duly signed by Karta and all Co-Parceners
  • PAN/GIR number/completed Form 60
  • Names of Karta and Co-parceners, along with a residential address.
  • Latest passport size photographs of the authorized signatories.

For Trust:

  • Copy of the trust deed.
  • Copy of the registration certificate
  • Copy of the resolution of the trustees authorizing the members concerned to activate and operate the account.
  • List of trustees with their address details.
  • Photographs of the members interested in operating an account.
  • By-laws of the association/club.
  • Certificate of Registration.
  • Copy of a Board Meeting resolution which authorizes the members concerned to activate and operate the account.
  • Photographs of the members operating the account.

Once the account is activated, the user is required to maintain a monthly balance of Rs. 10,000. Non-compliance with the same may amount to a penalty of Rs. 1,000. The maintenance charges will amount to a sum of Rs. 50 per month and the charges of closure will amount to Rs. 500 if closed within 12 months of opening it, which is reduced to Rs. 250 if done after this period.

Local Current Account

A local current account, which is a current bank account offered without the minimum balance requirement, renders a range of services that are appropriate for the local business requirements of customers. It offers the following benefits to the account holder:

  • Zero balance facility (not often the case with current accounts).
  • Pursuance of free transactions.
  • Offer of rebates on annual charges (15% in a quarter if the average balance is above Rs. 50,000).
  • Multi-channel banking option.
  • Axis ‘eDGe Rewards.’

Required Documents

The following documents must be furnished to open a Local Current Account:

Let’s start with the common documentary regulations i.e., documents to be submitted by any person who is willing to open an account, they are:

  • Proof of identity.
  • Proof of address.

For Public or Private Limited Companies:

  • Certificate of Incorporation and Commencement of Business.
  • Memorandum and Articles of Association.
  • Resolution of the Board endorsing the activation and operation of the account.
  • PAN/General Index Register (GIR) number/Form 60 (duly completed).
  • List of directors along with details of their addresses.

For Partnership Firms:

  • Partnership Deed and Registration Certificate.
  • Shop and Establishment Certificate.
  • Letter from the partners endorsing the persons concerned to activate and operate the account.

For Proprietorship Concern:

  • State Government Certificate/Statutory Body/Trade License/Sales Tax Certificate/Shop and Establishment Certificate.
  • Letter of proprietorship duly signed by the proprietor with a rubber stamp in his/her capacity.

For Hindu Undivided Family (HUF):

  • Letter of HUF duly signed by the Kartha and all coparceners.
  • PAN/GIR number/Form 60 (duly completed).
  • Names of Karta and the coparceners along with details of their address.
  • Latest passport size photograph of the authorized signatories.

For Trusts:

  • Copy of the trust deed.
  • Copy of the registration certificate.
  • Copy of the resolution of the trustees endorsing the members concerned to activate and operate the account.
  • List of trustees with the residential address.
  • Photographs of the members involved in operating the account associations/clubs.
  • Bye-laws of the association/club.
  • Certificate of Registration.
  • Copy of the Board’s resolution authorizing the members concerned to activate and operate the account.
  • Photographs of the members involved in operating the account.

The account-holders need not maintain a monthly average balance for this account. However, an annual charge of Rs. 1,999 is applicable.

Customers are allowed up to 75 free transactions in a given month, after which a transaction charge of Rs. 50 will be imposed. Out of the entire deposits, no charges will be imposed up to Rs. three lakhs, whereas deposits above this limit would incur a transaction charge of Rs. 50.

Business Advantage Account

The business advantage account offered by Axis Bank caters to the diverse banking needs of every business by rendering a host of privileges. The average balance to be maintained here is higher when compared to the above accounts as the account holder needs to maintain an average balance of Rs. 25,000. However, benefits are rendered in terms of unlimited intercity withdrawal and transactional limitations for a given month. Some of the other benefits offered through this initiative are:

  • Option to pursue banking by maintaining a low average monthly balance.
  • Home and non-home branch cash deposit services.
  • Rendering of non-cash services.
  • Free cheque leaves.
  • Withdrawal of cash across cities.
  • Easier transfer of funds.
  • Rendering of free transactional packages.
  • The option of multi-channel banking.
  • ‘eDGE’ Loyalty Rewards.

Required Documents

The applicant must furnish the following documents to activate this account. The documents to be submitted are as follows:

Common Documentary Requirements:

  • Proof of identity.
  • Proof of address.

For Public or Private Limited Companies:

  • Certificate of Incorporation and commencement of Business.
  • Memorandum and Articles of association.
  • Resolution of the Board endorsing the activation an operation of the account.
  • PAN/General Index Registrar (GIR) Number/Form 60 (duly completed).
  • List of Directors with their residential address.

For Partnership Firms:

  • Partnership Deed and Registration Certificate.
  • Shop and Establishment Certificate.
  • Letter from partners endorsing the members’ concerned to activate and operate the account.

For Proprietorship Concerns:

  • Certificate from a State Government/Statutory Body/Trade License/Sales Tax Certificate/Shop and Establishment Certificate.
  • Letter of proprietorship duly signed by the proprietor in a rubber stamp in his/her capacity.

For Hindu Undivided Family (HUF):

  • Letter of HUF duly signed by the Karta and all coparceners.
  • PAN or GIR number of Form 60 (duly completed).
  • Names of Karta and coparceners with details of their residential address.
  • Latest passport-size photograph of the authorized signatories.

For Trusts:

  • Copy of the trust deed.
  • Copy of the registration certificate.
  • Copy of the resolution of the trustees endorsing the members concerned to activate and operate the account.
  • List of trustees with the residential address.
  • Photographs of the members involved in operating the account associations/clubs.
  • Bye-laws of the association/club.
  • Certificate of Registration.
  • Copy of the Board’s resolution authorizing the members concerned to activate and operate the account.
  • Photographs of the members involved in operating the account.

An average monthly balance of INR 25,000 is to be maintained. The withdrawal limit for a business advantage account is unlimited for home branch, and Rs. Three lakhs in a month for a Non-home branch.

Business Select Account

This kind of account renders the account holder with surplus withdrawal capacity and free deposits. The following are its benefits:

  • Convenience-based cash deposit system.
  • Free limits
  • Facility of non-cash services.
  • Free cheque leaves.
  • Easier transfer of funds.
  • Multi-channel banking facility.
  • Axis eDGE Rewards

Required Documents

The applicant must furnish the following documents to activate this account. The documents to be submitted are as follows:

Common Documentary Requirements:

  • Proof of identity.
  • Proof of address.

For Public or Private Limited Companies:

  • Certificate of Incorporation and commencement of Business.
  • Memorandum and Articles of association.
  • Resolution of the Board endorsing the activation an operation of the account.
  • PAN/General Index Registrar (GIR) Number/Form 60 (duly completed).
  • List of Directors with their residential address.

For Partnership Firms:

  • Partnership Deed and Registration Certificate.
  • Shop and Establishment Certificate.
  • Letter from partners endorsing the members’ concerned to activate and operate the account.

For Proprietorship Concerns:

  • Certificate from a State Government/Statutory Body/Trade License/Sales Tax Certificate/Shop and Establishment Certificate.
  • Letter of proprietorship duly signed by the proprietor in a rubber stamp in his/her capacity.

For Hindu Undivided Family (HUF):

  • Letter of HUF duly signed by the Karta and all coparceners.
  • PAN or GIR number of Form 60 (duly completed).
  • Names of Karta and coparceners with details of their residential address.
  • Latest passport-size photograph of the authorized signatories.

For Trusts:

  • Copy of the trust deed.
  • Copy of the registration certificate.
  • Copy of the resolution of the trustees endorsing the members concerned to activate and operate the account.
  • List of trustees with the residential address.
  • Photographs of the members involved in operating the account associations/clubs.
  • Bye-laws of the association/club.
  • Certificate of Registration.
  • Copy of the Board’s resolution authorizing the members concerned to activate and operate the account.
  • Photographs of the members involved in operating the account.

The norms pertaining to this account convey that a sum of Rs. 50,000 must be maintained as a monthly average balance, and non-maintenance would incur a penalty of Rs. 1,500. The account maintenance charges are Rs. 600 in a given year. The closure charges may amount to Rs 500 (for accounts closed within a year of opening) and Rs. 200 (for accounts closed after a year’s time).

Business Classic Account

The business classic account offers free cash deposit facility and a withdrawal limit of Rs. 12 lakhs per annum. The benefits offered here are similar to that of Business Select Account.

Required Documents

The applicant must furnish the following documents to activate this account. The documents to be submitted are as follows:

Common Documentary Requirements:

  • Proof of identity.
  • Proof of address.

For Public or Private Limited Companies:

  • Certificate of Incorporation and commencement of Business.
  • Memorandum and Articles of association.
  • Resolution of the Board endorsing the activation an operation of the account.
  • PAN/General Index Registrar (GIR) Number/Form 60 (duly completed).
  • List of Directors with their residential address.

For Partnership Firms:

  • Partnership Deed and Registration Certificate.
  • Shop and Establishment Certificate.
  • Letter from partners endorsing the members’ concerned to activate and operate the account.

For Proprietorship Concerns:

  • Certificate from a State Government/Statutory Body/Trade License/Sales Tax Certificate/Shop and Establishment Certificate.
  • Letter of proprietorship duly signed by the proprietor in a rubber stamp in his/her capacity.

For Hindu Undivided Family (HUF):

  • Letter of HUF duly signed by the Karta and all coparceners.
  • PAN or GIR number of Form 60 (duly completed).
  • Names of Karta and coparceners with details of their residential address.
  • Latest passport-size photograph of the authorized signatories.

For Trusts:

  • Copy of the trust deed.
  • Copy of the registration certificate.
  • Copy of the resolution of the trustees endorsing the members concerned to activate and operate the account.
  • List of trustees with the residential address.
  • Photographs of the members involved in operating the account associations/clubs.
  • Bye-laws of the association/club.
  • Certificate of Registration.
  • Copy of the Board’s resolution authorizing the members concerned to activate and operate the account.
  • Photographs of the members involved in operating the account.

An average minimum balance of Rs. 1,00,000 must be maintained for this account, failing which the account holder will be forced to remit a late fee of Rs. 2000. The account maintenance charges are considered to be Re. 600 in a month. The closure of an account may cost an account holder a sum of Rs. 250, which is enhanced to Rs. 500 if the account is closed before a year’s time.

Sweeps Current Account

The Sweeps Current Account is an interlink between multiple current accounts and facilitates the seamless transfer of funds. The average balance to be maintained here is the highest among the entire collection of Prime Accounts, with a requirement of Rs. 25 lakhs for the whole pool. The cash withdrawal limit is affixed at Rs. one lakh per day.  Cash deposits, on the other hand, can be made up to Rs. 1 lakh per account for a day at a non-home branch and Rs. 1 crore per pool at home branch. The bank hasn’t specified any documentary requirements for this particular account. The applicant may contact the bank for any enquirers on this part.

How to Apply?

An applicant can choose to apply for a Current Account with Axis Bank either by visiting the nearest branch or through filling up a form on its website. The online form merely prompts for his/her basic details. In case of the latter, the bank may contact the applicant to further the process.

Post by Sreeram Viswanath

IndiaFilings is India's largest online compliance services platform dedicated to helping people start and grow their business, at an affordable cost. We were started in 2014 with the mission of making it easier for Entrepreneurs to start their business. We have since helped start and operate tens of thousands of businesses by offering a range of business services. Our aim is to help the entrepreneur on the legal and regulatory requirements, and be a partner throughout the business lifecycle, offering support at every stage to ensure the business remains compliant and continually growing.

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