What is Current Account?
A current account is the everyday operating account of a business. Unlike a savings account, it is built for volume: many deposits and payments a day, large cheques, bulk transfers, overdraft facilities and trade services. Banks generally pay no interest on current account balances and may require a minimum average balance. Companies, LLPs, partnership firms and proprietorships open current accounts in the name of the business, supported by registration documents and KYC.
Why it matters for exporters
For an export business, the current account is usually where foreign payments land, and the bank that holds it is normally your AD bank, the Authorised Dealer Category-I bank to which you file your EDF. Its branch also gives you the AD code you enter in field 1.6 of the EDF.
Choosing the right account and bank therefore affects your export compliance. Ask whether the bank handles inward remittances smoothly, issues FIRAs or bank advices promptly, has a clear published policy on accepting EDFs (banks must publish one under Regulation 19) and lets you open an EEFC account if you want to retain foreign currency. Keeping all export receipts in one current account also simplifies matching in EDPMS and your EDF register.
Freelancers often start with a savings account. Once you operate as a proprietorship or firm, moving export receipts to a current account in the business name keeps records clean.
Example
Kestrel Studio, a proprietorship in Coimbatore, has been receiving USD payments into the owner's savings account. As billing grows to around ₹45 lakh a year, the owner opens a current account in Kestrel Studio's name at an AD bank, gets the branch's AD code using an AD code request letter, and updates the bank details on all export invoices. From November 2026, every foreign payment arrives in that account and goes on the monthly EDF.
Common confusion
A current account is not the same as an EEFC account, which holds foreign currency. Read choosing a current account for export business for what to compare.