Best Bank for Current Account in India in 2026: 10 Business Bank Accounts Compared

The 10 best business banking accounts in India are: 1. ICICI Bank, 2. HDFC Bank, 3. Axis Bank, 4. State Bank of India (SBI), 5. Kotak Mahindra Bank, 6. IDFC FIRST Bank, 7. YES Bank, 8. IndusInd Bank, 9. AU Small Finance Bank and 10. Bank of Baroda (BOB). All ten open a current account, the account type built for businesses, but they differ on minimum balance, charges and digital tools.

The best bank for a current account depends on the balance you can hold every month, how much cash you deposit and your type of business. For the lowest balance, AU Small Finance Bank's Digital Current Account and Bank of Baroda's bob LITE have no minimum balance, and SBI's Regular Current Account asks for ₹5,000. A private limited company, LLP or OPC under three years old can get nil balance for three years with IDFC FIRST Bank.

If clients abroad pay you, choose the account for your domestic banking and plan the foreign payments separately. The exporter pick below explains why, and our guide to international payments for IT ITeS covers the setup in full.

• 1. ICICI Bank - Built for registered exporters and IT/ITeS firms that want trade and GST tools in one app
• 2. HDFC Bank - Built for shops and service firms that take card or QR payments
• 3. Axis Bank - Built for sole proprietors who want to open online quickly
• 4. State Bank of India (SBI) - Built for low balance and branch reach in every town
• 5. Kotak Mahindra Bank - Built for businesses that keep ₹50,000+ and want idle cash to earn interest
• 6. IDFC FIRST Bank - Built for companies, LLPs and OPCs under three years old
• 7. YES Bank - Built for businesses whose monthly volumes swing
• 8. IndusInd Bank - Built for small and family businesses that deposit cash at more than one branch
• 9. AU Small Finance Bank - Built for digital-first businesses that want zero balance and ₹3 lakh of free cash
• 10. Bank of Baroda (BOB) - Built for micro businesses that want zero balance and handle little cash

This table compares the entry or most common small-business account at each bank. We checked every figure on the bank's own website on 21 October 2026. Balances often differ between metro and rural branches, so the metro figure is shown first.

Banks change these figures without notice. Before you apply, open the bank's schedule of charges and check two numbers: the balance for your branch type and the free cash deposit limit.

They are the same product at different levels. A current account is the RBI-defined account type for businesses: it earns no or very low interest and allows unlimited transactions. A business banking account is the everyday umbrella term for a current account plus business services such as debit cards, overdrafts, GST tools, payroll and payment collection; when most people say 'business account', they mean this. A corporate account is a premium-tier current account for larger companies, with a dedicated relationship manager, a higher balance requirement, and cash-management and trade-finance services.

For most small businesses and SMEs, you are choosing a current account in the business banking range, which is what this guide compares.

Start with your business type, because it decides which accounts you can open and which documents you need.

Best current account for freelancers and IT/ITeS exporters

ICICI Bank suits a registered exporter, because its InstaBIZ app offers export-import banking services and lets you pay GST challans from the app. The larger cost for an exporter is usually the bank's exchange rate on each foreign payment, which can cost more than every domestic charge on the account.

Many exporters and freelancers paid from abroad keep a low-balance current account for daily banking and receive overseas payments through a provider such as Xflow, which settles rupees to your Indian bank account at the live mid-market rate with an eFIRA for every international payment.

Each review gives the account's key features, pros and cons, who it is best for and our verdict. Figures are from each bank's own website, checked on 21 October 2026.

1. ICICI Bank

ICICI Bank is the strongest pick for a registered exporter or growing services company that wants trade services, GST payments and daily banking in one app. Its Roaming Current Account asks for ₹10,000 a month, the same as IndusInd and well below HDFC's ₹25,000 in metros.

Key features

• Roaming Current Account: ₹10,000 minimum average balance (MAB), a moderate figure for a large private bank, so most small exporters can hold it.
• InstaBIZ app: Pay GST challans and use export-import banking services from your phone, in the same app as your daily banking, so trade paperwork does not need a branch visit.
• Free online NEFT and RTGS: Transfers you send online cost nothing; only transfers started at a branch are charged.

Pros

• One app for trade, GST and daily banking, so an exporter can handle most banking without a branch visit.
• ₹10,000 MAB is lower than the ₹25,000 to ₹50,000 entry tiers at HDFC (metros), YES Bank and Kotak, so less working capital sits idle.

Cons

• NEFT and RTGS started at a branch are charged. If your team still uses the branch, those fees add up.
• The free cash deposit limit is not on the product page. A business that deposits cash should check the schedule of charges first.

Best for: Registered exporters and IT/ITeS companies that want trade services and GST payments in one place. It suits firms that bank mostly online.

Verdict: ICICI is the best all-round current account for an exporter that can hold ₹10,000 every month. If you deposit a lot of cash, compare SBI's ₹5,000 account and IndusInd's ₹6 lakh free cash limit first.

2. HDFC Bank

HDFC Bank suits shops and service businesses that take card or QR payments, because its entry Biz Lite+ account rewards that volume. Without merchant payments, it is one of the costlier entry accounts in metros at ₹25,000 a quarter, against ₹10,000 a month at ICICI.

Key features

• Biz Lite+ balance by location: ₹25,000 average quarterly balance (AQB) in metro and urban branches and ₹10,000 in semi-urban and rural branches, so the same account costs far less to keep outside big cities.
• Lower balance with merchant tools: ₹10,000 AQB in metros if you use an HDFC merchant QR, PoS or payment gateway, which most shops already need.
• Balance waiver on volume: AQB is waived when ₹3 lakh or more a quarter goes through HDFC Soundbox or PoS, so a busy shop can run the account with no balance requirement.
• Free cash deposit: ₹2 lakh a month or 6x your AMB, whichever is higher, so the limit grows with your balance.
• Insurance: Free business and payment protection insurance up to ₹3 lakh on Biz Lite+, at no extra cost.

Pros

• The QR or PoS waiver can take the balance to zero, which turns HDFC from expensive to free to keep for a busy retailer or clinic.
• You can move up to Biz Pro+ (₹50,000 AQB in metros, ₹6 lakh free cash a month) and Biz Ultra+ (up to ₹25 lakh free cash a month) without changing banks.

Cons

• The balance is checked every quarter, and Biz Pro+ charges ₹3,000 a quarter in metros if you fall short, which hurts a seasonal business.
• On Biz Pro+, your free limits lapse if your AQB drops below 75% of the requirement, so one weak quarter raises charges across the board.

Best for: Retailers, clinics and service firms that already take card or QR payments. The more volume you run through HDFC Soundbox or PoS, the cheaper the account gets.

Verdict: HDFC is the best pick if your customers pay by QR or card. Without that volume, ₹25,000 AQB in a metro is steep, and SBI, IndusInd or ICICI cost less to keep.

3. Axis Bank

Axis Bank is the quickest way for a sole proprietor to open a current account online. Its digital proprietorship account opens with PAN, Aadhaar, GST and Udyam and no document upload, at ₹15,000 a month, against ₹5,000 at SBI.

Key features

• Digital proprietorship account: ₹15,000 MAB with ₹10 lakh of free cash deposits a month, a high cash limit for that balance.
• Current Account Normal: ₹15,000 MAB in metro and urban branches and ₹7,500 in semi-urban and rural, with ₹2 lakh of free cash deposits a month, so smaller-town businesses pay half the balance.
• ATM withdrawals: Unlimited cash withdrawals at Axis Bank ATMs, useful for a business that pays suppliers or staff in cash.

Pros

• The fastest online open for a proprietor who already has GST and Udyam, with no branch visit.
• The ₹10 lakh monthly cash limit on the proprietorship account is five times the Normal account's ₹2 lakh.
• Outside metros, the Normal account's ₹7,500 balance is one of the lower private-bank options.

Cons

• On the Normal account, cash withdrawal at a non-home branch is capped at ₹50,000 a day, so plan larger withdrawals at your home branch.

Best for: Sole proprietors who want to open online quickly with GST and Udyam ready. It also suits small businesses outside metros, where the balance drops to ₹7,500.

Verdict: Axis has the easiest online open for a proprietor. If you need the lowest balance rather than speed, SBI Regular asks for ₹5,000 and bob LITE for nothing.

4. State Bank of India (SBI)

State Bank of India (SBI) is the best pick for reach and cash-heavy or small-town businesses, keeping the Regular Current Account at a low ₹5,000 balance across 23,000+ branches. It publishes every tier's balance and cash limit in one comparison table, so you know exactly what you will pay as you grow.

Key features

• Regular Current Account: ₹5,000 MAB, the lowest balance among the banks here that ask for one at all.
• Cash deposit: Free up to 100x last month's MAB, capped at ₹5 lakh a month, enough for most small shops.
• Withdrawals and cheques: Unlimited free cash withdrawals at your home branch and 50 free cheque leaves a month.
• Room to grow: Higher tiers run from Silver (₹50,000 MAB) to Rhodium (₹50 lakh), each with bigger cash limits, so you never need to switch banks.

Pros

• 23,000+ branches, so you can bank in almost any town, which matters for a business outside the big cities.
• Commonly used for government and PSU dealings, where an SBI account is often expected.
• You can move from Regular to Silver and above without switching banks.

Cons

• The ₹5 lakh monthly cash cap on Regular is easy to hit for a trader handling cash daily; deposits beyond it are charged.
• Cash withdrawal at a non-home branch is limited to ₹2 lakh a day.

Best for: Small and small-town businesses, and firms that deal with government buyers. It also suits proprietors who want the lowest balance at a full-service bank.

Verdict: SBI Regular is the safest low-cost current account in India. Once your cash deposits cross ₹5 lakh a month, move to Silver or compare IndusInd and Axis for higher cash limits.

5. Kotak Mahindra Bank

Kotak Mahindra Bank is for a business that keeps spare cash in its account and wants it to earn interest. Its entry business account asks for ₹50,000 a quarter, five times HDFC's lowest Biz Lite+ figure, so it only pays off if you hold that money anyway.

Key features

• Pro Business Current Account: ₹50,000 AQB, counted at entity level, Kotak's entry tier for business accounts.
• ActivMoney sweep: Idle balance moves into a deposit and earns interest, then sweeps back when you need it, so surplus money is not sitting idle.
• Merchant tools: Free QR, same-day PoS settlement and loans based on your bank statement on Pro Business, so card takings reach you the same day.
• Elite Current Account: ₹1 lakh AQB, with 3 free home-banking services a month such as cheque pickup or delivery.

Pros

• ActivMoney earns interest on money above your needs, which can offset the high balance for a business holding lakhs in its account.

Cons

• ₹50,000 AQB is the entry tier, so a small business would lock up five to ten times what SBI or ICICI ask.

Best for: Businesses that already keep ₹50,000 or more in the account. It suits firms that take card payments and want same-day settlement.

Verdict: Kotak is a good choice only if you hold that balance anyway, because ActivMoney then earns on it. For a smaller business, a ₹5,000 or ₹10,000 account elsewhere costs less.

6. IDFC FIRST Bank

IDFC FIRST Bank is the best account for a young company that wants to keep its cash in the business. Its Startup Current Account needs no average balance for three years, where ICICI and HDFC would ask for ₹10,000 to ₹25,000 from day one.

Key features

• Nil balance for 3 years: The Startup Current Account has no average balance requirement for the first three years, so no penalty while revenue is thin.
• Eligibility: Open only to private limited companies, LLPs and OPCs incorporated within the last three years, so proprietors and older companies need another bank.
• Initial payment waiver: Waived if the startup is DPIIT-recognised, backed by an incubator or accelerator, or government-accredited.
• Cash limit: Free cash deposit up to ₹30 lakh a month, far more than most startups deposit.
• Doorstep and bulk payments: Free doorstep banking and bulk payment services, useful for payroll and vendor runs.

Pros

• Three years of nil balance is the strongest startup offer among the banks here.
• The ₹30 lakh cash limit means cash charges are unlikely for an early-stage company.

Cons

• Sole proprietors and companies older than three years cannot open it.

Best for: Private limited companies, LLPs and OPCs under three years old. DPIIT-recognised or incubator-backed startups gain the most, with the initial payment waived too.

Verdict: This is the first account a new company should compare. Check the balance rules that apply once the three years end, and if you are a proprietor, look at Axis or SBI instead.

7. YES Bank

YES Bank suits a business whose volumes swing, because its Freedom Flexi accounts move between six tiers based on how you use the account. The entry Freedom Flexi 25 asks for ₹25,000 a month, more than ICICI or IndusInd at ₹10,000, but its cash limits scale much higher as you move up.

Key features

• Freedom Flexi 25: ₹25,000 AMB, aimed at new setups and businesses with fewer transactions.
• Cash deposit: Free up to 6x your AMB, capped at ₹2 crore a month, so the entry balance covers ₹1.5 lakh of free cash.
• Withdrawals and cheques: Free cash withdrawal at any YES BANK branch and 50 free cheque leaves a month.
• Tier ladder: Freedom Flexi 45 (8x cash), 100 (10x), 300 (12x) and 500 (15x), with automatic moves between tiers based on your transactions.
• Digital banking: IRIS Biz app and Corporate Net Banking for daily payments and approvals.

Pros

• You do not have to switch accounts as the business grows or slows, because the tier changes with your transactions.
• Free withdrawals at any YES BANK branch help a business that operates in more than one city.

Cons

• ₹25,000 is the entry balance, so YES Bank is not a low-cost option for a very small business.
• At 6x AMB, the entry account's ₹1.5 lakh of free cash is lower than IndusInd's ₹6 lakh at ₹10,000.

Best for: Growing businesses with uneven monthly volumes that already keep ₹25,000 or more in the account. It suits firms that bank across several cities.

Verdict: YES Bank is worth it if your volumes change month to month and you want the account to keep up. If you want the lowest balance, SBI, IndusInd and ICICI ask for less.

8. IndusInd Bank

IndusInd Bank's Indus Max Current Account is a ₹10,000 account built for small businesses, and it gives more free services than most accounts at that balance. Compared with ICICI at the same ₹10,000, it publishes its cash limit and penalties clearly, so the running cost is easy to predict.

Key features

• Indus Max balance: ₹10,000 AMB, open to proprietors, partnerships, LLPs, companies, HUFs and trusts.
• Cash deposit: ₹6 lakh a month free, combined across home and non-home branches, so you can deposit at any IndusInd branch.
• Free transfers: NEFT, RTGS and IMPS are free, so paying vendors online costs nothing whatever the amount.
• Sweep and grouping: Excess balance sweeps into a fixed deposit, and you can group the account with your own or family accounts to meet the balance together.
• Doorstep and cheques: Up to 3 free cheque pickups a month and 50 free cheque leaves, then ₹2 a leaf.
• IT/ITeS variant: The Indus Infotech Current Account is built for IT, ITeS, KPO and BPO firms, with trade and forex services alongside.

Pros

• ₹6 lakh of free cash at a ₹10,000 balance is more than SBI Regular's ₹5 lakh cap.
• Grouping lets a family business meet one balance across several accounts.

Cons

• Falling short costs ₹750 a month if your AMB is between 50% and 100% of ₹10,000, and ₹1,000 if it drops below half.
• The branch network is much smaller than SBI's, so check the nearest branch if you handle cash.

Best for: Small businesses and family firms that deposit cash at more than one branch. It also suits owners who want one balance across family and business accounts.

Verdict: Indus Max is one of the best-value ₹10,000 accounts, with clear cash limits and free transfers. If ₹10,000 is too much, SBI Regular or bob LITE cost less to keep.

9. AU Small Finance Bank

AU Small Finance Bank's Digital Current Account is a zero balance account you can open online in minutes, built for digital-first entrepreneurs and professionals. It beats bob LITE on cash, with ₹3 lakh of free cash deposits a month against ₹50,000, but its branch network is far smaller than the large banks'.

Key features

• Zero balance: No minimum average balance, so there is no non-maintenance charge to worry about.
• Instant online opening: Paperless account opening online, with 100 free cheque leaves.
• Cash deposit: ₹3 lakh a month free at any AU branch, then ₹4 per ₹1,000 (minimum ₹50), enough for a small shop or service firm.
• Withdrawals and transfers: Unlimited cash withdrawals at any AU branch and AU ATM, and unlimited free digital RTGS, NEFT and UPI payments.
• Merchant tools: Free AU UPI QR with a Soundbox option, managed through the AU0101 Business app.

Pros

• Zero balance with ₹3 lakh of free cash a month, six times bob LITE's ₹50,000.
• Unlimited branch cash withdrawals, where bob LITE allows only 5 free a month.
• Opening is fully online, so a new business can start banking the same day.

Cons

• If your average monthly balance falls below ₹2,500, the free cash deposit limit does not apply the next month, so keep a small cushion.
• IMPS and transfers started at a branch are charged, and the Visa Business Gold debit card costs ₹349 a year.

Best for: Digital-first entrepreneurs and professionals who want zero balance but still deposit some cash. It suits businesses near an AU branch that bank mostly through the app.

Verdict: AU's Digital Current Account is the strongest zero balance option for a business that handles up to ₹3 lakh of cash a month. If you need branches in every town, SBI Regular at ₹5,000 is the safer choice.

10. Bank of Baroda (BOB)

Bank of Baroda's bob LITE Current Account is a pay-as-you-go account with no minimum balance, built for micro businesses that collect payments by QR or card. Unlike SBI Regular at ₹5,000, there is no balance to keep, but free cash and withdrawal limits are much tighter.

Key features

• Zero balance: No minimum average balance and no non-maintenance charge.
• Merchant kit: Free QR code, one free Soundbox QR and 100% waiver of monthly POS and MPOS charges.
• Soundbox rental waiver: Monthly rent waived on additional Soundboxes that each take ₹1 lakh or more a month.
• Cheques and card: First 50 cheque leaves free, then ₹5 a leaf, plus a VISA Vyapaar business debit card.

Pros

• No balance at all, so the account costs nothing to keep in a slow month.
• Free QR, Soundbox and POS charges suit a small shop moving to digital payments.

Cons

• Free cash deposit is only ₹50,000 a month (or 1,000 notes, whichever is higher); above that, cash handling costs ₹10 a packet of 100 notes.
• Only 5 free cash withdrawals a month at branches, then ₹150 each, and closing the account within a year costs ₹800 plus GST.

Best for: Micro businesses and small shops that collect most payments by QR or card. It suits owners who cannot spare even ₹5,000 for a minimum balance.

Verdict: bob LITE is the clearest zero balance current account among large banks, as long as you handle little cash. If you deposit more than ₹50,000 in cash a month, SBI Regular's ₹5 lakh limit will cost you less.

What happened to Federal Bank's Freedom Current Account?

Federal Bank's Freedom Current Account, once a popular ₹5,000 balance pick for small businesses, was discontinued for fresh onboarding from 1 April 2026, so new businesses cannot open it. Federal Bank's entry option for a new small business is now the Trade Silver Current Account at ₹25,000 average monthly balance, with free cash handling up to 10x AMB and a rent-free Soundbox for the first year.

If you already hold a Freedom account, check its current terms with your branch. If you want a low balance today, SBI Regular (₹5,000), AU's Digital Current Account (zero) or bob LITE (zero) are the closest options.

The best account is the one that matches your business, not the one with the biggest brand. Work through these questions in order and the shortlist narrows fast.

• Start with your legal entity: It sets your document list and your options. A proprietor or freelancer can favour a low-balance account like SBI's Regular Current Account (₹5,000), AU's Digital Current Account or Bank of Baroda's bob LITE (both zero balance). A private limited company benefits from maker-checker payment approvals and a cleaner audit trail, which point toward ICICI or HDFC.
• Size the balance to what you can hold every month: A tier you cannot maintain quietly bleeds money through non-maintenance penalties every cycle. It is better to sit comfortably in a lower tier than to chase premium features you will be fined for missing.
• Match free limits to your real volume: If you handle cash, weigh the free cash-deposit limit and branch reach, where SBI and IndusInd lead. If you run mostly digital, weigh app quality and free NEFT and RTGS, which ICICI, IndusInd and AU offer free online.
• Decide the foreign-payment question separately: If overseas clients pay you, the current account is only half the setup. The bank's handling of foreign receipts usually costs more than every domestic charge combined, so plan the account and the cross-border layer together and see how to reduce international payment fees.
• Weigh reach against experience: PSU banks win on branches and physical presence. Private banks win on the app, the API and onboarding speed. Choose the axis your operations actually run on.

Once you have picked a bank, opening the account usually takes two to seven working days.

1. Choose your bank by business type using the picks above.
2. Gather KYC documents: PAN, Aadhaar of the authorised signatory and business address proof, plus the documents for your entity type below.
3. Make the initial deposit required by the bank and tier.
4. Complete verification; banks with video KYC can activate faster.
5. Set up net banking, mobile banking and the debit card, and request a cheque book or payment collection separately.