Current accounts are cheque operated accounts maintained for mainly business purposes. Unlike savings bank
account no limits are fixed by banks on the number of transactions permitted in the Account. Banks generally
insist on a higher minimum balance to be maintained in current account. Considering the large number of transactions
in the account and volatile nature of balances maintained overnight banks generally levy certain service
charges for operating a Current account.
In terms of RBI directive banks are not allowed to pay any interest on the balances maintained in Current accounts.
However, legal heirs of a deceased person are paid interest at the rates applicable to Savings bank deposit
from the date of death of the account holder till the date of settlement.