What is current account in accounting

A current account is a type of demand deposit account designed for businesses, firms, and entrepreneurs who handle a high volume of daily transactions. It serves as a primary tool for managing operational cash flows and business expenses. Key features include:

• No limits on the frequency of daily deposits or withdrawals.
• Access to overdraft facilities, allowing businesses to withdraw funds beyond their actual balance.
• Support for bulk business payments through cheques, NEFT, RTGS, and IMPS.
• Usually non-interest-bearing, focusing on liquidity and transactional convenience rather than savings.