Understand why Bihar Gramin Bank Current Account is the right choice for businesses

Bihar Gramin Bank current accounts are designed for businesses that need frequent payments, collections and working-capital flexibility within Bihar. A current account keeps daily cash flow tidy, lets multiple people operate the account, and connects your firm to the clearing and electronic payment systems. Below I explain who should open one, how to open it, what documents and nomination rules apply, the facilities you get and practical tips to run the account well.

Why a current account is useful for businesses

A current account is built for transactions, not savings. For businesses this matters because:

• High transaction volume: You can deposit and withdraw funds multiple times a day without restrictions. That matters if you receive daily cash sales or make many supplier payments.
• Multiple signatories and flexibility: You can add authorized signatories and specify single or joint signing rules. That keeps operations moving when owners are unavailable.
• Payment services: Enables NEFT/RTGS/IMPS, standing instructions and bulk payments for salaries or vendor payouts — essential for payroll and supplier management.
• Working capital options: Current accounts are the usual starting point for overdraft, cash credit or other working-capital limits after credit assessment. Lenders prefer a business current account to track turnover and repayment capacity.

Who can open a Bihar Gramin Bank current account

Several entity types can open a current account. The bank will ask for documents specific to the entity type because legal identity and authority to operate the account must be clear.

• Proprietorship: Owner’s identity and business address proofs, PAN in proprietor’s name.
• Partnership firm: Partnership deed, PAN of firm, identity/address proofs of partners and an authorized signatory list.
• Private/Public limited company: Certificate of Incorporation, Memorandum & Articles, PAN of company, board resolution authorizing opening and authorized signatories, director KYC documents.
• Trust/Society/NGO: Registration certificate, trust deed/society rules, PAN, KYC of trustees/office bearers.
• HUF and others: HUF documents and karta proof; similar identity proofs for other structures.

Opening the account & QAB by area

Opening steps are straightforward: visit a local branch with original documents, submit the filled account opening form, complete KYC and provide specimen signatures. The branch verifies documents and activates the account.

Quarterly Average Balance (QAB): Current accounts often require you to maintain a minimum balance averaged over the quarter. The exact QAB can vary by branch classification — rural, semi-urban or urban — because operating costs and customer segments differ. In practice this means:

• If your business is in a rural area, the required QAB is usually lower or sometimes nil for certain small business categories.
• Semi-urban branches typically require a moderate QAB.
• Urban branches often set higher QABs for standard current accounts.

Why this matters: failure to maintain QAB triggers service charges that eat into working capital. Ask the branch manager for the specific QAB for the branch category and whether there are concessionary products for micro-entrepreneurs or MSMEs that lower or waive the QAB.

KYC and entity documents (practical checklist)

Bring originals and copies. The bank will accept PAN and Aadhaar as primary identity documents in most cases. Here’s a practical checklist by entity:

• Proprietor: Aadhaar or passport, PAN card, business address proof (shop license, electricity bill) and proof of business existence (GST registration if any).
• Partnership: Partnership deed, PAN of firm, PAN of partners, address proofs, and an authorization letter naming signatories.
• Company: Certificate of incorporation, MOA/AOA, PAN, GST registration (if applicable), board resolution and directors’ KYC (Aadhaar, PAN, address proof).
• Trust/Society: Registration certificate, trust deed/society rules, PAN, identity/address proofs of trustees/office-bearers.

Why each item is required: the bank must identify beneficial owners, confirm legal existence, and verify who can legally operate the account to prevent fraud and meet regulatory KYC/AML rules.

Nomination and authorisation rules

Nomination lets a nominated person receive account funds in the event of the owner’s death. Practical points:

• Individuals and proprietors can nominate. For firms, partners may nominate their share but the firm as an entity cannot usually have a nominee.
• Companies and registered entities rely on legal succession (board or trust rules) rather than a simple nominee. The bank will ask for a board resolution naming authorized signatories.
• Always submit a completed nomination form at account opening; it simplifies claim settlement and avoids court procedures later.

Facilities you get (what to expect)

Bihar Gramin Bank current accounts usually provide the following facilities. I explain why each matters for a business.

• Branch and cash services: Local branches for cash deposits and withdrawals. This is important when you deal with daily cash collections.
• ATMs and debit cards: For quick cash withdrawals and POS transactions. Useful for field staff and small purchases.
• NEFT/RTGS/IMPS: Electronic transfers for supplier payments and receipts. RTGS handles large-value immediate transfers; NEFT batches payments throughout the day.
• Standing instructions and direct debit: Automate recurring payments like rent, utility bills or EMIs. This reduces missed payment risk.
• Cheque book and clearing: Issue cheques to suppliers and collect cheques via clearing. Clearing times depend on location — local clearings clear faster; outstation cheques take longer.
• Online and mobile banking: Check balances, initiate transfers, download statements. Helps with daily reconciliation and GST/ accounting work.
• Overdrafts and cash credit: After assessing turnover and credit history, the bank may offer working-capital limits. Keeps your business running between receivables and payments.

Practical tips

• Open in the business/trade name: Keeps receipts, GST returns and bank statements consistent for audits and GST filings.
• Decide signatory rules up front: Specify who can sign singly or jointly. Use board resolutions or partnership letters to avoid later disputes.
• Maintain QAB or choose a small account: If you have low turnover, ask for MSME/small business options that reduce or waive balance requirements.
• Link PAN and Aadhaar promptly: It prevents service blocks and simplifies tax reporting.
• Get transaction alerts: SMS or e-mail alerts help detect fraud quickly and simplify bookkeeping.
• Reconcile weekly: Review bank entries weekly to catch uncredited receipts or unauthorized debits early.

FAQs

• How long to open the account? Typically 2–7 working days after document verification. Complex entities may take longer due to board resolutions or registrations.
• Can I operate the account from outside Bihar? Yes, but you may need to designate local signatories or use netbanking for remote access. Some services may be branch-specific.
• Is there a debit card for current accounts? Yes. Debit cards are commonly issued for authorized signatories for ATM and POS usage.
• Are NEFT/RTGS available? Yes. These facilitate vendor payments and are standard facilities on business current accounts.
• Can I get an overdraft? Overdrafts or cash credit are available after the bank reviews turnover, credit history and collateral. A current account provides the transactional track record banks use for assessment.
• What if I don’t maintain QAB? The bank will levy a service charge. Ask the branch for exact rates and concession options before opening.