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Indian Bank Current Account

Indian Bank Current Account

Indian Bank Current Account

Indian Bank Current Account is a type of bank account that is offered to businessmen and traders. One of the most significant advantage of a current bank account is that the account holders can easily avail overdraft facility up to an agreed limit. In this article, we will look at Indian Bank Current Account in detail.

Benefits and Features of Indian Bank Current Account

Benefits and features of opening an Indian Bank current account are listed below:

  • It enables people in the business/trader to make direct payments using cheques, demand drafts, or pay orders
  • The current account allows for prompt business transactions
  • No limit on withdrawals
  • No limit on deposits in the Indian bank home branch
  • Provides overdraft facility
  • Provides internet banking and mobile banking facilities

Applicability – Indian Bank Current Account

The following persons can open Indian Bank Current Account:

Account for Individual

An Indian Bank Current Account can be opened in the name of an Individual in his/her name.

Joint Account

Two persons or more than two persons having contractual capacity can open an Indian Bank Joint current account in any one of the following forms. Accounts in the name of Mode of Operation

  • A & B Either or Survivor
  • A & B Jointly or Survivor
  • A & B Former or Survivor
  • A, B & C Anyone or Survivors or Survivor

Note: Instructions regarding operations on the account is given at the time of opening a joint account can be varied only by the account holders jointly.

Account for Entity/Company/Trust

Indian bank current account can also be opened in the names of sole-Proprietorship Firms, Hindu Undivided Family firms, Limited companies, partnership firms, clubs, religious, associations, and educational, charitable, Executors/Administers, Government/Semi-Government/Local Bodies,   and other institutions on the production of the necessary documents.

Account for Minor’s

Minor’s current account can also be opened at the sole discretion of the Indian bank by following ways.

  • Through the natural guardian either joint with the minor or singly
  • By guardians appointed by a competent court

Only guardians will be permitted to operate such currents accounts. The guardian needs to furnish the date of birth of the minor when the account is opened. When the minor attains majority, the right of the guardian to operate on the report will automatically cease and the small, on furnishing proof of his age to the satisfaction of the Indian bank, will be allowed to operate the account.

Indian Bank Current Account Services

Indian bank has a wide range of current account services. The Indian Bank offers the followings services.

  • Ordinary Current Account
  • Premium Current Account with Sweep Facility
  • IB-I-Freedom Current Account

Ordinary Current Account

Details of Ordinary Indian Bank Current Account is explained here:

Prescribed Minimum Sum

The ordinary current accounts are opened for parties approved by the Indian Bank on proper introduction with a minimum sum as per the table below:

S. No Branch Minimum Amount
1 Computerized Branches (CBS) Rs.5000
2 Non-Computerized Branches Metro or Urban Rs.3000
3 Semi Urban or Rural Rs.1000

Salient Features

  • It is suitable for all type of customers
  • ECS/RTGs/NEFT Facilities are available
  • Nomination facility for individual and sole proprietor concerns, Multicity cheque facility, Intracity, Intercity transaction is permitted in Computerized Branches (CBS) branches
  • Free ATM card cum Debit Card
  • No change for an intracity transaction


A penalty of Rs.10 will be levied on each occasion the balance in the account falls below the prescribed minimum sum irrespective of the number of days for which the position continues.

Premium Current Account with Sweep Facility

Premium Indian Bank current account details are explained below:

Salient Features

An Indian bank current account has an option to convert excess funds in the account to Term deposit every Sunday that is Short Time Deposit (STD) or Multi-option deposit (MOD). The amount lying in the account over the threshold balance will be transferred to Multi-option deposit (MOD) automatically in multiples of Rs.25000.

Minimum Balance

  • Minimum Quarterly balance: Rs. 1 lakh (Total products of Rs.9000000 per quarter, i.e. 90 days * 100000) need to be maintained in the account.
  • Threshold limit: It is about Rs.200000 (Sweep will be effected only if the balance exceeds Rs.200000)
  • Cut off balance: For transferring amount to MOD account (threshold balance) will be Rs.200000 or more.

Period of Term Deposit

The period of term deposit is minimum 15 days to 180 days.

Push Sweep

  • The customer can issue the cheque freely up to the balance in the MOD (multi-option deposit) plus the balance in the current account.
  • Interest will be paid at the time of maturity/closure, and it is suitable for corporates, traders, people in business, entrepreneurs and HNI’s.
  • No charges for intra or intercity transaction
  • ATM/Debit card will be valid for one year from the date of first use

Non-Maintenance of Minimum Balance

If the average minimum balance in the current account falls below Rs.100000 that is if the total products are less than 9000000 in a quarter, a penalty of Rs.573 per quarter inclusive of all tax will be levied.

IB-I-Freedom Current Account

India Banks new current account is named as IB-I-Freedom Current Account. This service is designed for business peoples; it has a variety of products. Each product has a different average monthly balance ranging from Rs.50000 to Rs.500000.

Deposits of Cash and Cheques

Paying-in-slips which are supplied to depositors should ordinarily accompany all deposits to Indian bank current accounts.


Separate paying-in-slips will be used for deposits as mentioned below:

  • Deposit of cash
  • Cheques were drawn on the branch where the account is maintained
  • Cheques were drawn on other local branches of the bank
  • Cheques drawn on local clearing banks
  • Cheques on outstation branches/banks
  • Bills and other collection items

Nomination Facility

Nomination facility is available for an account holder. Nomination can be made at the time of opening Indian Bank current account. It can also be cancelled or varied. At the time of opening the Indian bank current account, the account holder has to instruct the bank if the nomination is not explicitly required.

Note: Nomination will be in favour of an Individual only.

Inoperative Account

 The Indian Bank current account which is not operated for two years and above will be treated as an inoperative account.  A service charge of Rs. 20 per year will be levied for all inoperative current accounts, where the balance is less than Rs.500.

Service Charges

Service charges as fixed by the Indian bank from time to time will be levied to the current accounts every half year or at intervals as is decided upon by the Indian bank.

Accounts of Deceased Parties

Regarding deceased depositors’ accounts, the legal heirs or representatives will be allowed to operate the account, on recognition of the claim by the Indian bank.

Documents Required

Documents need to be furnished for opening Indian Bank Current Account is given below:        

  • Aadhaar Card
  • PAN Card
  • Proof of Identity – Aadhaar Card, Passport, Voter Identity Card, Driving License
  • Proof of Address – Passport, Voters Identity Card, Ration Card, Registered Lease or Sale Agreement of Residence, Driving License, Statement for the last three months, Utility Bills (Electricity Bills/Telephone Bills/ Gas Bills) which is not more than three months old.
  • Copies of rule or bye-laws (Company / Society)

Procedure to open an Indian Bank Current Account

Persons desiring to open an Indian Bank current account must visit the Indian bank in their locality.

Step 1: The applicant (individual or entity) need to furnish the appropriate form of application and documents to open an Indian Bank current account.  The particulars required in the current account application form must be filled in.

We have herewith enclosed the application form (Individual , Joint Hindu Family,  Partnership, Sole Proprietoship)  for opening Indian Bank Current Account.

Indian Bank Current Account

Step 2: Once the application is submitted, the applicant needs to pay the initial deposit.  After the verification account will be opened in the name of the applicant. The bank manager will issue Cheque Book and other documents.

Note: The Indian bank will not open an account which is to be operated under a thumb impression or cross mark or an account under the signature by the hand of a person other than the Depositor.

Interest Rate

No interest will be paid on India bank current accounts.

Transfer of Current Account

 At the request of the account holder, Indian bank current accounts can be transferred from one office to another office in India free of charge and on the return of the unused cheque leaves.

Closure of Accounts

An account holder may close his Indian bank current account and receive the balance in credit less incidental charges against his cheque on surrender of unused cheque leaves. For closure within one year from the date of opening, a service charge of Rs.25 will be levied.