Which bank is best for a startup current account in India?
For a new private limited company, LLP or OPC, IDFC FIRST Bank's Startup Current Account is the cheapest to hold: no minimum balance for 3 years if you were incorporated within the last 3 years. HDFC Bank's StartUp Current Account is the pick if you want a large private bank's branches: its Rs 50,000 average quarterly balance is waived for the first 4 quarters, then missing it costs Rs 3,000 a quarter. Indian Overseas Bank is the public sector option, waiving its balance for 18 months and then asking Rs 1 lakh on average a quarter, with DPIIT recognition optional. RazorpayX opens a digital current account with ICICI, Yes, Axis or RBL Bank behind it and suits you if you already collect through Razorpay and want payouts and accounting sync in one dashboard. A sole proprietorship does not qualify for IDFC FIRST's or IOB's startup accounts and opens a regular current account instead. Choose on what the account costs once the free period ends, not on the waiver.
The RBI rule every bank follows when it opens a business account: the documents for a proprietary firm, a company, an LLP and a partnership, which is why every bank asks for roughly the same papers.
From
rbi.org.inby Reserve Bank of IndiaRegulation (updated August 2025)
A proprietary firm needs any two proofs of business in its name, such as the Udyam certificate, a Shop and Establishment licence, a GST certificate or utility bills.
A bank may accept only one such document if it verifies the business at your address.
For a company the bank must collect the certificate of incorporation, MOA and AOA, PAN and a board resolution.
This lays out the real downstream cost of mixing personal and business money in plain terms: messy books, harder taxes, missed deductions, and the risk of piercing the corporate veil so creditors can reach your personal assets. It is written by a business bank, so read the credibility and business-credit points as their pitch, but the core reasoning holds anywhere. It makes the case for acting early instead of untangling a commingled account later.
IDFC FIRST Bank's startup account: no minimum balance until 3 years from account opening, free IMPS, NEFT and RTGS, for a Pvt Ltd, LLP or OPC incorporated within the last 3 years.
HDFC Bank's current account for startups, with the fees on the page: an average quarterly balance of Rs 50,000 waived for the first 4 quarters and a non-maintenance charge of Rs 3,000 a quarter after that. A DPIIT certificate is asked for only if you have one.
A public sector bank's startup account with its full schedule of charges: the quarterly average balance is waived for the first 18 months, then Rs 1 lakh is required, and DPIIT recognition is optional.
This is a genuinely startup-first way to open a current account in India online, with the account held by a partner bank (ICICI, Yes Bank, Axis, RBL, IDFC First) rather than by Razorpay itself. It leans into automation founders actually need early: bulk payouts, vendor payments, payroll, and multi-user access with controls. Treat it as one solid option to compare, not the only one, since pricing tiers and per-transaction charges apply.
