Five Current Account Charges You Must Understand

A Current Account is a type of deposit account that is opened by farmers, traders, merchants, and medium and large-scale businesses. The zero-interest-bearing account allows users to carry out daily transactions, meet working capital needs, provides access to overdraft loan facilities, etc. Every bank or financial institution offers different Current Account types depending on the nature of the business. While opening the account, the bank always provides detailed information about the features and benefits, but at the same time, it is necessary for you to be aware of the charges on the Current Account.

So, if you maintain a Current Account with a bank, have you ever evaluated the fees and charges associated with the account? Let’s look at the common Current Account fees.

• Minimum account balance (MAB) or Average Monthly Balance (AMB):

If you open a Current Account with any bank, you are required to meet or maintain a minimum account balance (MAB) for every month or quarter. For instance, AU Small Finance Bank requires AU Current Account – Basic Service account holders to maintain an Average Monthly Balance (AMB) of INR 10,000 at the Urban branch and INR 5,000 at Core Branch.  

• Non-maintenance charges:

Suppose any Current Account holder is unable to maintain the AMB, the bank charges fees for Non-Maintenance of Balance. For AU Current Account – Basic Service account holders, if the AMB at the Urban branch is below INR 5,000, then INR 1,000 fee is charged. Or, if it is between INR 5,000 and INR 10,000, then INR 500 fee is applicable.

• Charges for Current Account facilities:

If your business is carrying out RTGS/IMPS at a branch or NEFT out of a branch or low denomination note and coins per day (Current note below INR 50 & below), the charges are nominal. Similarly, the fee is less for cheque-pick up and issuance of cheque books.

• Debit Card related charges:

Current Account holders also receive a Debit Card and there are some charges associated with the ATM Card. If your Debit Card is lost or stolen, the cost of replacement can be INR 150. If you are withdrawing funds from any bank ATMs outside India, you may incur INR 100 per instance.

Miscellaneous charges

Apart from the above charges, a bank may also include cash deposit fees, return handling charges, AEPS mini statement, DD cancellation/revalidation, instrument/instruction issued from your account, returned due to insufficient funds, & others.

It is not that all services are charged; at AU Small Finance Bank there are a few services for which you don’t need to incur any cost. These include digital collections via RTGS/NEFT/IMPS, Stop payment of Cheques done via NetBanking/Business App/ Phone Banking / ATM, issuance of monthly passbook, Intra-Bank Fund Transfer for Payments & Collections, Digital Payments, etc.

• AU Regular Current Account including Basic, Value, Maximum, Premium, and Exclusive service packages
• AU Royale Business
• AU Power Current Account
• AU Vishesh Current Account​
• AU Institution Current Account Exclusive
• AU Platinum Business Current Account

Read More: Best Current Account Guide for Start-ups in India

• Now that you are familiar with the type of fees and charges for a Current Account, make sure you go through them before opening an account
• This will help you select the best Current Account for your business and avoid last-minute surprises.

Looking to apply for a Current Account? Let’s help you get started.