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Is a current account compulsory for an proprietor dealing as an e-commerce operator?

Pls help me in this, I am an e-commerce operator and having a valid GSTIN. Do I compulsorily need a current account, or I can receive all the funds in my savings account itself?


 8 Replies

Sankaranarayanan (Advocate)     07 May 2021

yes Current account is advisable for business

Hemant Agarwal (ha21@rediffmail.com Mumbai : 9820174108)     07 May 2021

1.  There is no legal restrictions for eCommerce proprietor business to have "limited purpose" savings bank account for its business.

2. IF the Bank deducts mass transactions, THEN the Bank will restrict your Savings Bank Account and ask you to open separate Current Account for your proprietor business.

Keep Smiling .... Hemant Agarwal 
VISIT:  www.chshelpforum.com

G.L.N. Prasad (Retired employee.)     07 May 2021

The banks can not permit commercial transactions in a savings bank account, as different types of accounts were prescribed depending on usage.   The number of operations, amount to be credited, the number of cheques are limited in a savings bank that carries interest, in case of current account the operations are unlimited and credit balances carry no interest.  It is the discretion of the Banker and members can not have a say as it is clear that savings bank is investment banking for limited purposes and not meant for commercial dealings.

1 Like

Pradipta Nath (Advocate)     07 May 2021

Better to use current account as if your transaction exceeds the limits of saving account, the Bank system automatically may seize your account. Thereafter again you will have to write letter or meet the Bank Manager to release your saving account.

SIVARAMAPRASAD KAPPAGANTU (Retired Manager)     07 May 2021

You mean to say that you wish to continue your Savings Bank Account for routing through your business transactions also?


You need to open a Current Account for the purpose of routing through any of your transactions relating to your business, irrespective of the nature of business-e-commerce or otherwise. As to GSTIN, You may contact a local GST Consultant.


Thank you so much everyone for your advices. I think I should stop using my saving account for my business transactions. I will surely go ahead for a current account very soon.

T. Kalaiselvan, Advocate (Advocate)     08 May 2021

Since the business transactions are vo0lumnious and very frequent, it is always advisable to operate the account by a current account instead of the savings account.

While a Savings Account is one wherein you deposit your savings with the bank and earn interest on the same, a current account is one where you deposit money to carry out business transactions.

A savings account can only be opened by individuals for their use. It is generally opened for a short term to save money for vacations, make big and small purchases, etc. Current account is opened by businesses or firms who want to conduct various bank transactions according to the need of their business.

Savings accounts are suitable to build emergency funds, whereas current accounts facilitate regular business transactions. Unlike a saving accountcurrent accounts do not have any limit on monthly transactions. You need to maintain a relatively higher minimum balance in a current account than a savings account.


ashok kumar singh (Advocate)     09 May 2021

for any nature of business concern, so far, CURRENT ACCOUNT is necessary to be open in your BANK ACCOUNT.

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