Quick answer: The current account minimum balance in India ranges from ₹5,000 to ₹10 lakh or more, depending on the bank and the account variant. SBI’s Regular Current Account needs a Monthly Average Balance (MAB) of ₹5,000. HDFC Bank’s Regular Current Account needs an Average Quarterly Balance (AQB) of ₹10,000. Falling short triggers a non-maintenance charge, which is billed monthly or quarterly.
A current account is a non-interest-bearing business account built for high transaction volumes. In exchange for a higher balance requirement than a savings account, you get large free cash deposit limits, bulk cheque leaves, free NEFT/RTGS and no regulatory cap on the number of transactions.
Key facts at a glance:
- Entry-level MAB/AQB: ₹5,000 (SBI) to ₹10,000 (HDFC Bank, ICICI Bank)
- Premium variants: ₹1 lakh to ₹50 lakh MAB
- Interest earned: nil
- Daily withdrawal limit: no RBI cap; banks set free limits and charges
- TDS on cash withdrawals above ₹1 crore a year: 2% (lower threshold for non-filers)
- New RBI opening norms for borrowers with ₹10 crore+ exposure: effective April 1, 2026
What Is the Current Account Minimum Balance?
The current account minimum balance is the average amount a bank requires you to keep in the account over a month or a quarter, not the balance on any single day. Banks calculate it as the average of daily closing balances across the period. If the average falls below the variant’s threshold, the bank deducts a non-maintenance charge (NMC) plus GST.
HDFC Bank’s schedule of charges defines AQB as the average of daily closing balances of each day spread over a calendar quarter. SBI and ICICI Bank use the monthly version of the same method.
MAB vs AQB: Which One Your Bank Uses
| Measure | Full form | Period | Example banks |
|---|---|---|---|
| MAB | Monthly Average Balance | Calendar month | SBI, ICICI Bank (Roaming Current Account) |
| AQB | Average Quarterly Balance | Calendar quarter | HDFC Bank |
An AQB gives more room to absorb a low month. A single dip in a MAB account can trigger a charge that month.
For more banking terms like MAB, AQB, NMC and CTS, see our guide to banking abbreviations and full forms.
How the Average Is Calculated: Worked Example
Assume a 30-day month and an SBI Regular Current Account (MAB ₹5,000):
- Days 1 to 10: closing balance ₹12,000
- Days 11 to 30: closing balance ₹1,000
- Total: (₹12,000 × 10) + (₹1,000 × 20) = ₹1,40,000
- MAB: ₹1,40,000 ÷ 30 = ₹4,667
The account misses the ₹5,000 MAB by ₹333 even though it held ₹12,000 for a third of the month. Parking an extra ₹10,000 for just 1 day would have lifted the MAB above the threshold.
Current Account Minimum Balance by Bank (2026)
The table below lists entry-level and popular variants from SBI, HDFC Bank and ICICI Bank, taken from each bank’s official product pages and schedules of charges.
| Bank | Account variant | Minimum balance | Basis |
|---|---|---|---|
| SBI | Regular Current Account | ₹5,000 | MAB |
| SBI | Silver Current Account | ₹50,000 | MAB |
| SBI | Gold Current Account | ₹1,00,000 | MAB |
| SBI | Diamond Current Account | ₹5,00,000 | MAB |
| SBI | Platinum Current Account | ₹10,00,000 | MAB |
| SBI | Palladium Current Account | ₹25,00,000 | MAB |
| SBI | Rhodium Current Account | ₹50,00,000 | MAB |
| HDFC Bank | Regular Current Account (non-metro only) | ₹10,000 | AQB |
| HDFC Bank | Premium Current Account | ₹25,000 | AQB |
| HDFC Bank | Ascent Current Account | ₹50,000 (metro/urban), ₹25,000 (semi-urban/rural) | AQB |
| HDFC Bank | Plus Current Account | ₹1,00,000 | AQB |
| ICICI Bank | Roaming Current Account Standard | ₹10,000 | MAB |
| ICICI Bank | Roaming Current Account Classic | ₹25,000 | MAB |
| ICICI Bank | Roaming Current Account Premium | ₹50,000 | MAB |
Banks revise these figures without much notice. Confirm the current number on your bank’s schedule of charges before you open the account.
Non-Maintenance Charges
HDFC Bank’s published schedule sets the following quarterly NMC:
| HDFC Bank variant | AQB required | NMC per quarter |
|---|---|---|
| Regular | ₹10,000 | ₹1,500 |
| Premium | ₹25,000 | ₹1,800 |
| Plus | ₹1,00,000 | ₹1,500 if AQB is ₹50,000 or more; ₹6,000 if below ₹50,000 |
HDFC Bank also states that free cash deposit limits lapse if the AQB maintained is less than 75% of the product’s required AQB. A shortfall therefore costs you twice: the NMC itself and charges on cash deposits that would otherwise be free.
SBI publishes current account service charges on its Revised Service Charges page rather than on each product page. Check that page for the current NMC on your variant.
For how penalties work across account types, read our explainer on non-maintenance of minimum balance charges.
Current Account Opening Minimum Balance
The current account opening minimum balance is the first deposit the bank asks for when it activates the account. Most banks expect this deposit to be in line with the variant’s MAB or AQB, so the account starts compliant from day one. A few variants waive the balance requirement for an initial period.
Examples of initial waivers:
- HDFC Bank Regular and Premium: zero NMC for the 2nd quarter of the account, per the bank’s schedule of charges
- HDFC Bank Ascent: zero NMC in the quarter after opening if the customer is active on all three of the bank’s specified digital services
- SBI: opening through Video KYC is available for Regular, Silver, Gold, Diamond and Platinum variants
Ask the branch for the opening amount in writing. The figure can differ from the ongoing MAB for promotional or startup variants.
Documents You Need to Open a Current Account
Documents depend on the constitution of the business. A practical checklist:
| Applicant | Core documents |
|---|---|
| Individual / sole proprietor | PAN, Aadhaar or other OVD, address proof, 2 business proofs (GST registration, Udyam certificate, shop and establishment licence) |
| HUF | HUF PAN, Karta’s KYC, HUF declaration with coparceners’ details |
| Partnership firm | Firm PAN, registered partnership deed, KYC of partners |
| LLP / company | Entity PAN, Certificate of Incorporation, MoA/AoA or LLP agreement, board resolution naming authorised signatories |
PAN is required for the entity in nearly all cases. If your PAN details need correction before you apply, start with our guide on how to apply for a PAN card online. HUFs can refer to our HUF PAN card guide.
Who Can Open a Current Account?
Any person or entity with a genuine business, professional or institutional need for frequent transactions can open a current account. HDFC Bank lists eligible applicants for its Regular Current Account as resident individuals, HUFs, sole proprietorship firms, partnership firms, limited companies, trusts, and associations, clubs and societies.
Common account holders:
- Sole proprietors, traders and shopkeepers
- Professionals such as CAs, doctors, lawyers and consultants
- Partnership firms and LLPs
- Private and public limited companies
- HUFs running a family business
- Trusts, societies, clubs and educational institutions
- Startups (several banks offer dedicated startup variants)
New RBI Rules for Borrowers from April 1, 2026
Eligibility now also depends on how much credit the business has taken from the banking system. Under RBI’s revised directions on current, cash credit (CC) and overdraft (OD) accounts, effective April 1, 2026:
| Total banking exposure of the borrower | Who can open a current account |
|---|---|
| Below ₹10 crore | Any bank, without restriction |
| ₹10 crore or more | Only a bank holding at least 10% of the borrower’s total banking exposure; other banks can open only a collection account |
A collection account accepts credits but must transfer them to the borrower’s main current or CC/OD account with an eligible bank within 2 working days. Accounts opened under FEMA, and accounts mandated by a statute, regulator or the government, are exempt from these restrictions.
For most small businesses and professionals, exposure is far below ₹10 crore, so the rule does not affect them.
Current Account Limit: Deposits, Transactions and Withdrawals
There is no RBI-imposed cap on the number of transactions in a current account. The practical “current account limit” is the free limit each bank attaches to the variant, beyond which per-transaction or per-₹1,000 charges apply.
| Variant | Free cash deposit limit (official) |
|---|---|
| SBI Regular | 100 times previous month MAB, maximum ₹5 lakh per month |
| SBI Silver | ₹15 lakh per month |
| SBI Gold | ₹25 lakh per month |
| SBI Diamond | ₹100 lakh per month |
| SBI Platinum | 15 times previous month MAB, maximum ₹500 lakh per month |
| HDFC Bank Plus | ₹12 lakh or 50 transactions per month, whichever comes first |
Free limits scale with the balance you commit. A business depositing ₹10 lakh in cash every month gains more from SBI Silver (₹50,000 MAB) than from paying deposit charges on the Regular variant.
Current Account Withdrawal Limit per Day
A current account has no regulatory daily withdrawal limit. You can withdraw any amount available in the account (or within a sanctioned overdraft) through cheque, NEFT, RTGS or IMPS. Limits that do apply come from three places:
- Bank charges on cash: Home branch cash withdrawal is free on many variants (SBI Regular, for example). Withdrawals at non-home branches and third-party cash withdrawals carry free limits and charges set by each bank.
- Debit card limits: Business debit cards carry their own daily ATM and POS caps. SBI attaches a Premium Business Debit Card with a ₹2 lakh daily withdrawal limit to its Gold and Platinum current accounts.
- Tax rules on cash: TDS applies once total cash withdrawals in a financial year cross a threshold (see below).
Withdrawing through a self cheque at the home branch is usually the cheapest route for large cash needs. For comparison with personal accounts, see savings account deposit and withdrawal limits.
TDS on Cash Withdrawals from a Current Account
Banks deduct TDS when your total cash withdrawals in a financial year cross the threshold. This provision was Section 194N of the Income-tax Act, 1961, and now sits under Section 393 of the Income-tax Act, 2025, effective April 1, 2026.
| ITR filing status (last 3 years) | Cash withdrawn in the year | TDS rate |
|---|---|---|
| Filed returns | Up to ₹1 crore | Nil |
| Filed returns | Above ₹1 crore | 2% on the excess |
| Not filed | ₹20 lakh to ₹1 crore | 2% on the excess over ₹20 lakh |
| Not filed | Above ₹1 crore | 5% on the excess over ₹1 crore |
The threshold for co-operative societies is ₹3 crore. The limit is counted across all your accounts with the same bank. TDS deducted here is adjustable against your final tax liability; you can track it through your Form 26AS or AIS. See how to check your TDS amount online.
Reporting and PAN Rules for Large Cash Transactions
Banks report aggregate cash deposits of ₹50 lakh or more in a current account during a financial year to the Income Tax Department through the Statement of Financial Transactions (SFT). The Income-tax Rules, 2026 also replaced the old ₹50,000-per-day PAN rule with an annual aggregate threshold for cash deposits and withdrawals. Keep PAN linked to the account to avoid processing delays; see how to link PAN to a bank account.
Features of a Current Account
| Feature | What it means in practice |
|---|---|
| No interest | Balances earn nothing; idle funds cost you the yield of a savings account or FD |
| Unlimited transactions | No regulatory cap on deposits, withdrawals or transfers |
| High free cash deposit limits | ₹5 lakh per month on SBI Regular, scaling to ₹500 lakh on SBI Platinum |
| Bulk cheque leaves | 50 free multicity cheque leaves per month on SBI Regular |
| Free NEFT/RTGS online | Included on SBI Regular through internet and mobile banking |
| Overdraft eligibility | Banks can sanction an OD limit linked to the account, subject to RBI exposure norms |
| Business debit card | Higher daily ATM/POS limits than retail debit cards on premium variants |
| Positive Pay | High-value cheques can be pre-confirmed for fraud protection |
Current accounts issue cheque books by default. If you need one urgently, see how to get a cheque book immediately or use our cheque book request letter format. For large-value cheques, register them under the Positive Pay System.
Benefits of a Current Account for Businesses
- Separates business and personal money. A dedicated account makes bookkeeping, GST reconciliation and audits cleaner.
- Builds banking credibility. Lenders review current account statements when assessing working capital and business loans.
- Handles volume without penalties. Daily cash collections and vendor payments do not hit the transaction caps common on savings accounts.
- Supports collections. Payment gateway, POS and UPI merchant settlements can be routed directly to the account.
- Enables overdraft. Short cash gaps can be bridged through an OD facility rather than an unsecured loan.
- Keeps the statement professional. Customers and vendors see the business name on cheques and transfers.
Download statements regularly for GST filing and ITR support; SBI customers can follow our guide to SBI bank statement download.
Current Account vs Savings Account
| Basis | Current account | Savings account |
|---|---|---|
| Purpose | Business and professional transactions | Personal savings |
| Interest | Nil | Paid (2.50% p.a. at SBI) |
| Minimum balance | ₹5,000 to ₹50 lakh MAB/AQB | Nil to a few thousand rupees at most public sector banks |
| Transaction limits | No regulatory cap | Free transaction limits set by bank |
| Overdraft | Available | Generally not available |
| Cheque leaves | Bulk, monthly | Limited, yearly |
| SFT cash deposit reporting | ₹50 lakh+ per year | ₹10 lakh+ per year |
If you do not need business features yet, a savings account may be enough. For no-balance options, see our guide to a zero balance account.
How to Avoid Current Account Minimum Balance Charges
- Pick the variant your cash flow supports. Choose the MAB you can sustain in the leanest month, not the busiest one.
- Track the running average, not the day balance. Most net banking apps show the month-to-date average.
- Top up early in the period. A deposit on day 2 lifts the average far more than the same deposit on day 29.
- Prefer AQB accounts if income is seasonal. A quarter smooths out a slow month.
- Use waiver conditions. HDFC Bank waives NMC on Ascent and Plus accounts when quarterly merchant/POS/payment gateway volume crosses the bank’s stated threshold.
- Downgrade instead of bleeding charges. Banks allow variant changes; moving to a lower MAB variant is cheaper than paying NMC every quarter.
- Avoid cheque returns. Low balances also lead to bounced cheques. Read about cheque bounce charges and consequences.
What Experts Say
Chartered accountants who set up accounts for small businesses commonly advise choosing the variant by monthly cash deposit volume first and MAB second, because cash deposit charges usually cost more than the difference in idle balance. Practitioners also point out that new proprietors often pick a premium variant for its free limits and then pay NMC for months when sales are slow. Another common recommendation is to keep the GST-registered business name and PAN consistent across the bank account, GST portal and invoices, since mismatches delay account opening and reconciliation.
Frequently Asked Questions
What is the minimum balance for a current account in SBI?
SBI’s Regular Current Account requires a Monthly Average Balance of ₹5,000. Higher variants require ₹50,000 (Silver), ₹1 lakh (Gold), ₹5 lakh (Diamond), ₹10 lakh (Platinum), ₹25 lakh (Palladium) and ₹50 lakh (Rhodium).
Is there a daily withdrawal limit on a current account?
No. RBI does not set a daily withdrawal limit for current accounts. Banks apply free limits and charges on cash withdrawals at non-home branches and on debit card usage, and TDS applies once annual cash withdrawals cross ₹1 crore (₹20 lakh for non-filers).
Can an individual open a current account?
Yes. Resident individuals, including professionals and sole proprietors, can open a current account. Banks usually ask for proof of business activity such as GST registration, Udyam registration or a shop and establishment licence along with PAN and KYC documents.
Does a current account earn interest?
No. Current accounts in India do not pay interest on the balance. Businesses that hold surplus funds often use sweep facilities or fixed deposits to earn a return.
What happens if I do not maintain the minimum balance in a current account?
The bank deducts a non-maintenance charge plus GST. HDFC Bank charges ₹1,500 per quarter on its Regular Current Account. Free cash deposit limits can also lapse if the balance falls below 75% of the required AQB.
Who cannot open a current account with any bank after April 2026?
A borrower whose total banking exposure is ₹10 crore or more can open a regular current account only with a bank that holds at least 10% of that exposure. Other banks can offer only a collection account.