Curious about the difference between an individual current account and a non-individual current account? An individual current account is opened in the name of business owners to meet basic corporate needs. In contrast, a non-individual current account is specifically opened in the name of a business and is designed to meet the needs of enterprises. Beyond identity-driven distinctions, these account types differ in aspects such as features, requirements, and benefits.

Being aware of these differences in detail is essential for choosing the correct account type to match your needs, particularly in the context of financial management. Read on to learn about the specifics of each account type and how they cater to distinct financial needs.  

Major Distinctions Between Individual and Non-Individual Current Accounts

Account Holders

Individual current accounts are opened by a single individual to manage corporate financial needs. The features offered by these accounts are higher deposit and withdrawal limits than regular savings accounts, a chequebook facility, and online banking services to cater to the evolving needs of the holders.

Non-individual current accounts are held by companies, businesses, trusts, partnerships, and other entities. These accounts cater to the financial needs of a group rather than an individual and provide benefits higher than individual current accounts.  

Purpose and Usage

Individual current accounts are primarily used for small-scale corporate transactions with restrictions on transaction volume, unlike non-individual current accounts. They are designed to simply serve the day-to-day banking needs of individuals running a small business.

Non-individual current accounts are used for big-scale business purposes to meet frequent and high-value transactions. They are crucial for managing business finances, vendor payments, payroll, and other commercial activities. Businesses depend on these accounts for their operational efficiency.  

Account Benefits and Features

Individual current accounts offer basic features such as debit cards, cheque books, and internet banking designed for basic corporate financial management. These bank accounts have limited features than their non-individual counterparts.

Non-individual current accounts offer advanced features like higher transaction limits, multiple-user access, overdraft options, and specialised services designed for business operations. These features are tailored to meet complicated business needs.  

Documentation and Requirements

An individual current account requires basic KYC documents such as identity and address proof. The process is relatively quick and straightforward.

A non-individual current account requires more comprehensive documentation, including business registration certificates, the entity’s PAN card, and other regulatory documents. The documentation process is more detailed to meet the regulatory and legal needs of business entities.  

Significance of Premium Accounts

Individual current accounts generally receive fewer options for premium services. They are simply designed to provide slightly better banking features for business needs than regular savings accounts.

Non-individual current accounts offer a wider range of services and higher transaction limits designed for business needs. For instance, a premier account like the Indus Select Current Account by IndusInd Bank offers a range of benefits designed to add value to business activities and operations. Let’s take a look at the perks:

Also Read: 5 Benefits of Current Accounts for Businesses

Ending Note

While individual current accounts are suitable for managing individual corporate finances with basic banking needs, non-individual current accounts cater to the complicated and high-volume transactional requirements of big organisations and businesses. Note that if you have a small business, you may consider opting for an individual current account.

Those looking for an account to maintain their big-scale business transactions must consider opening a non-individual current account. One such current account is the Indus Select Current Account. This current account can enhance your business’s financial management by offering holistic benefits and value-added services.

So, if you are looking to streamline your business activities and benefit from premium banking features, open a current account online with IndusInd Bank today.

Apply now!

Disclaimer: The information provided in this article is generic and for informational purposes only. It is not a substitute for specific advice in your circumstances. Hence, you are advised to consult your financial advisor before making any financial decision. IndusInd Bank Limited (IBL) does not influence the views of the author in any way. IBL and the author shall not be responsible for any direct/indirect loss or liability incurred by the reader for making any financial decisions based on the contents and information.

Micro, Small and Medium-Sized Enterprises (MSMEs) drive the economy by generating employment, fostering innovation, and contributing to the nation’s GDP. They have the potential to grow through digital transformation, access to quick funds, and supportive regulatory frameworks offered by the government. However, to avail these benefits, an MSME certificate registration is necessary.

You may wonder how to go around the MSME registration process and whether online GST registration is crucial for this process. This article deep dives into these questions and more. 

Is a GST Number Mandatory for MSME Registration?

A GST number is not mandatory for the MSME registration process for businesses or entities that do not need GST registration. However, enterprises or businesses with turnover over a particular threshold are taxable entities and need a GST registration number. The threshold limits for the online GST registration depend on the type of supply (goods or services or both) and the state in which the business operates. Here’s a detailed look at the threshold limits: 

For suppliers engaged exclusively in the supply of goods

·       In the states of Tripura, Mizoram, Manipur, and Nagaland, the threshold limit is ₹10 lakh.

·       In Uttarakhand, Sikkim, Arunachal Pradesh, Puducherry, Telangana, and Meghalaya, the threshold limit is ₹20 lakh.

·       For other states, the threshold limit is ₹40 lakh.

For suppliers engaged in the supply of services or both goods and services –

·       In the states of Manipur, Tripura, Mizoram, and Nagaland, the threshold limit is ₹10 lakh.

·       For other states, the threshold limit is ₹20 lakh.

Further, the Udyam Online Registration Portal for MSME registration, linked with income tax and GSTIN, will automatically gather PAN and GST details of businesses surpassing a specific annual turnover from government records. This prevents you from undergoing the process of GST number check.  

MSME Registration Process

In 2020, the Central Government introduced the Udyam Registration portal. As per the rules, new businesses can register using their Aadhaar number and self-declaration. The business’s details can be verified through GSTIN or PAN. Steps for Udyam Registration include –

·       Visit the Udyam Registration website.

·       Click on the Udyam Registration form – for new enterprises not registered as MSMEs link.

·       Provide the entrepreneur’s name and Aadhaar number.

·       Authenticate and generate OTP to proceed.

·       Select the enterprise type and fill out the necessary details.

·       Submit the form and receive a confirmation message on your registered email and mobile number.

·       The Udyam certificate will be mailed to you.

Is a Current Account Essential for MSME Registration?

A current account is essential for MSME registration as it helps streamline financial transactions, offering a clear record for auditing and tax purposes. One such current account you may consider is the Indus Select Current Account by IndusInd Bank.

This premium account is particularly tailored to offer a blend of scale and convenience to help businesses create more value. Here are some of the attractive benefits –

Also Read: Understanding Current Accounts: What You Need to Know

Ending Note

While a GST number is not mandatory for MSME Udyam registration for businesses below an annual turnover threshold, it becomes necessary for taxable entities. The GST and MSME registration processes are simple and can be done online with the necessary documents.

Moreover, having a current account, such as the Indus Select Current Account by IndusInd Bank, can greatly benefit enterprises by offering seamless banking services and other financial conveniences. So, hurry and open a current account online with IndusInd Bank today. Apply now!

Disclaimer: The information provided in this article is generic and for informational purposes only. It is not a substitute for specific advice in your circumstances. Hence, you are advised to consult your financial advisor before making any financial decision. IndusInd Bank Limited (IBL) does not influence the views of the author in any way. IBL and the author shall not be responsible for any direct/indirect loss or liability incurred by the reader for making any financial decisions based on the contents and information.

Unified Payments Interface (UPI), since its launch in 2016, has revolutionised the way Indians conduct financial transactions. In FY’24 alone, India recorded about 131 billion UPI transactions, with a total value of ₹200 trillion. This impressive figure highlights the widespread adoption of UPI and the efficiency of this Indian payment system.

It is commonly known that savings accounts can be easily linked to UPI. However, there is often confusion over current account holders being able to generate UPI IDs to enjoy quick and secure transactions. Get all the details you need to know below:

Is it Possible for Current Account Holders to Use UPI?

If you hold a current account with IndusInd Bank, utilising UPI becomes very simple with the help of the Indus Merchant Solutions app. For example, let’s say you have an IndusInd Bank Indus Max Account and wish to use UPI. Start by installing the Indus Merchant Solutions app on your smartphone. Next, complete the registration within the app and set up your UPI PIN. Now, you are ready to pay bills, make merchant payments, or send money to others. Simply scan QR codes and experience fast and multiple payments in just a few seconds.

Besides safe UPI transactions, the Indus Max Current Account by IndusInd Bank offers additional benefits like:

• A 100% digital process to open a current account online from anywhere
• With an average monthly balance requirement of only ₹10,000, this digital current account is especially beneficial for small and medium-sized businesses with variable monthly revenues
• Enjoy free NEFT/RTGS/IMPS transactions for effortless money transfers
• Deposit up to ₹6 lakh for free across both home and non-home branches
• Opt for an auto-sweep facility to earn interest on your excess current account balance
• Doorstep banking services offer up to three free cheque pick-ups a month via an on-call facility

Open a current account today and get started with IndusInd Bank!

How to Set Up UPI ID for a Current Account? Detailed Steps

• Download and install the mobile banking app
• Start the registration process. Enter the mobile number linked to your current account. The app will send an OTP (One-Time Password) to verify your number. Enter the OTP to proceed
• Click on ‘Add a bank account’
• Choose IndusInd Bank from the list provided
• An automatic UPI ID will be suggested. You can keep this or customise if allowed by the app
• Set up a UPI PIN. This step might require you to provide the debit card details linked to your current account. Usually, this involves the last six digits of the card number and the card’s expiry date. You may receive another OTP to authenticate this process. Enter the OTP and create a strong UPI PIN
• Once done, your current account will be linked to UPI

Note: The format of a current account UPI ID could look like – abcd@bank. Here, ‘abcd’ could be either your first name or your mobile phone number, and ‘bank’ represents the name of your bank to which your current account is linked via UPI.

Also Read: Best Practices to Secure Your Current Account

Advantages of Using UPI with Current Accounts

Once you generate a UPI ID for your current account, you become eligible to enjoy countless benefits, like:

Key Takeaways

Creating aUPI ID for current accounts is a simple process that can improve your business’ operational efficiency significantly. All you have to do is download your bank’s mobile app, register your account, link the current account, set a UPI PIN, and create your UPI ID.

Indus Max Current Account further simplifies this integration with its robust UPI support. Now, make or receive payments quickly and securely through QR codes and UPI IDs, and handle your business transactions more efficiently.

Apply now!

Disclaimer: The information provided in this article is generic and for informational purposes only. It is not a substitute for specific advice in your circumstances. Hence, you are advised to consult your financial advisor before making any financial decision. IndusInd Bank Limited (IBL) does not influence the views of the author in any way. IBL and the author shall not be responsible for any direct/indirect loss or liability incurred by the reader for making any financial decisions based on the contents and information.

Small and Medium Enterprises (SMEs) are the backbone of the economy, as they help in driving innovation, employment, and growth. These businesses need the right tools to manage their finances and support their growth efficiently. Indus Select Current Account by IndusInd Bank is one such useful tool that helps businesses simplify their financial operations, manage cash flow, and conduct transactions smoothly.

Let’s go through the steps to open a current account online, the documents needed, and the multiple benefits of these business accounts for SMEs.

Documents Required to Open a Current Account

The following are the most common documents required to open a current account online for SMEs:

Individual

• PAN card
• GST certificate (More than three months old)
• Aadhaar card (should be linked with mobile number)

Sole Proprietor

Mandatory documents:

• PAN card
• Aadhaar card (should be linked with mobile number) 
• GST certificate (More than three months old)

Any of the following:

• Udyam registration certificate
• Shop & Establishment certificate
• FSSAI certificate 
• ICAI certificate
• ICSI certificate
• ICWAI
• Import Export Code
• MCI certificate
• Tax identification number

Steps to Open a Current Account for SME

Follow these detailed instructions to open a current account from the comfort of your home:

Apply online: Click on the Apply Now option on IndusInd Bank’s website. This action directs you to the application form. You can also download the Indus Merchant Solutions App, available on both Android and iOS platforms, to proceed with the application.

Enter contact details: Input your basic contact information, such as your email, location, and phone number. This step ensures that the bank can reach out to you for any further requirements or notifications.

Provide business details: Fill in details about your business such as the name, type of business entity, nature of business activities, and operational years.

Choose product/current account variant: As you browse the best business bank accountslist, be sure to select the Indus Select Current Account. It offers a range of banking services suitable for businesses of different sizes.

Submit personal details: Provide personal information about the business owners and authorised signatories.

Review application: Before submission, review all the details you have entered for accuracy. Now, submit the application.

Note that you may also have to complete a digital video KYC verification for the entity and authorised signatories. After completing the verification and any additional formalities, yourcurrent account will be activated and ready for use.

Also Read: Best Practices to Secure Your Current Account

Benefits of the Indus Select Current Account for SMEs

This current account benefits SMEs in multiple ways, including:

Current Account for SMEs | A Must-Have Business Tool

You can open abusiness bank account for your SME instantly without any hassle. All you have to do is gather essential documents, apply online, provide contact details, choose the current account type, enter personal details, submit your application, and complete the digital video KYC verification.

Most importantly, consider the Indus Select Current Account, which is exclusively designed for businesses. Benefit from a 100% online application process, premium digital features, interest on surplus funds, and other customised services.

Apply now!

Disclaimer: The information provided in this article is generic and for informational purposes only. It is not a substitute for specific advice in your circumstances. Hence, you are advised to consult your financial advisor before making any financial decision. IndusInd Bank Limited (IBL) does not influence the views of the author in any way. IBL and the author shall not be responsible for any direct/indirect loss or liability incurred by the reader for making any financial decisions based on the contents and information.