Opening a Digital Current Account: A guide
Securing and efficiently managing your money is a crucial task. If you are running a business, you would have personal and business finances to handle. The best way to take care of these finances is to manage them separately. This simplifies record keeping, limits liability, and reduces tax burden. Different types of Bank Accounts help you do so.
A Savings and Current Account are the two most popular accounts to consider. A Savings Account is perfect for managing your personal money. A Current Account helps manage your business transactions. A Current Account can be sub-classified into other types. Each account has different features and benefits. A Digital Current Account is one such account you can consider opening.
A Digital Current Account is possible to open using Online Banking platforms. You need to spare a couple of minutes or an hour to open the account. The following pointers explain how to open a Current Account at your convenience. Here are some things to consider:
The firm you wish to open a Current Account should have GST registration.
Your Aadhaar number should be linked to your mobile number.
You should have your PAN Card handy through the account opening procedure.
You need to provide Udyam registration for entity verification. The Udyam registration number should be linked to your mobile number.
Documents required
Keep the following personal and business documents ready for the Current Account opening:
Document requirements for sole proprietors
Proprietor’s two recent passport-sized photographs
Proprietor’s PAN Card
Proprietors and entity’s address proofs
Document requirements for public/private companies
Company’s address proofs
Company’s PAN Card
Company’s Commencement Certificate (INC 21)
Registrar of Companies
Receipt of Public Ltd Company
Memorandum of Association
Articles of Association
Certificate of Incorporation
Board resolution
Passport-size photographs of all signatories
Identity and address proof of all signatories
A list of directors and their Director Identification Number
Beneficial owner and Foreign Account Tax Compliance Act declaration
Fill out the details
Fill out the Digital Current Account opening form available on the bank’s website or app. The form needs you to mention both personal and business details. Make no mistake while filling out these details, as the bank solely relies on them for account opening.
Video KYC
Once the bank receives your account opening request, they process it within the shortest possible time frame. The bank verifies your details and documents and may reach out to you in case of doubts or queries. You also need to complete the Know Your Customer representative. A good thing is that you can complete the KYC requirement via video calling.
Make sure your mobile is working and has a strong internet connection. Keep your PAN and Aadhaar Card handy during the video call as you need to present them for verification.