Best business bank account in India: ICICI vs HDFC vs Kotak

Your business bank account touches every rupee your company earns and spends. Pick the wrong one, and you bleed money through hidden charges, forex markups, and minimum balance penalties. Pick the right one, and your cash flow runs more smoothly from day one.

This guide breaks down the 3 most popular business bank accounts for Indian SMEs — ICICI, HDFC, and Kotak Mahindra — covering fees, minimum balances, digital features, and international payment costs. We also examine neobank alternatives that are transforming the landscape for businesses serving global clients.

Key takeaways:

• HDFC's Biz Lite+ Account has the lowest entry point at ₹10,000 AQB (with POS/payment gateway linkage).
• ICICI's Smart Business Account Gold offers free cash deposits up to ₹2.5 crore based on your maintained balance.
• Kotak's Advantage Current Account gives you free NEFT, RTGS, and DD transactions up to ₹50 lakh/month through branches.
• All three banks charge a 3.5% cross-currency markup on debit card foreign transactions, making international payments expensive.
• Neobanks like Winvesta offer international payment collection at $3 + 0.99% with zero FX markup, processing funds in as little as 1 day.

What to look for in a business bank account

Before diving into specific banks, it helps to know what actually matters when choosing a business current account. The "best" account depends entirely on how your business operates.

For a local retail shop that processes mostly cash, branch access and cash deposit limits are most important. For a SaaS company billing clients in the US, international payment costs dwarf everything else.

Here are the factors worth weighing: minimum balance requirements and penalties, cash deposit and withdrawal limits, digital banking and mobile app quality, NEFT/RTGS/IMPS transaction charges, international payments and foreign exchange costs, integration with accounting software, and overdraft or credit facilities.

The RBI mandates that businesses cannot use savings accounts for commercial transactions beyond certain limits. A current account is not optional — it is a regulatory requirement for most business types.

ICICI Bank: Smart Business Account Gold

ICICI Bank is one of India's largest private-sector banks, with over 5,900 branches. Their Smart Business Account Gold is a popular choice for SMEs handling significant cash volumes.

Features that stand out

The Smart Business Account Gold gives you free cash deposits scaled to your maintained Monthly Average Balance (MAB). At higher balance tiers, the free deposit limit goes up to ₹2.5 crore. That is a meaningful benefit for cash-intensive businesses such as retail, trading, and manufacturing.

The InstaBIZ app is ICICI's dedicated mobile banking tool for business customers. It lets you make payments, apply for instant overdrafts, and access business loans without visiting a branch. ICICI also offers Connected Banking—an integrated platform that combines your banking with accounting software for automated reconciliation.

For import-export businesses, ICICI's One Globe Trade Account provides preferential pricing on trade transactions. This can significantly reduce costs if you handle frequent cross-border shipments.

ICICI business account pricing

The ₹1 lakh QAB requirement is on the higher side for micro-businesses and early-stage startups. However, ICICI does offer startup-specific accounts with zero balance for the first 6 months — worth exploring if you are just getting started.

ICICI: Strengths and trade-offs

What works well: Dynamic free limits for cash and non-cash transactions that scale with your balance. Free NEFT/RTGS on all channels. The InstaBIZ app is genuinely useful for on-the-go banking. Connected Banking integration saves hours of manual reconciliation.

Where it falls short: The minimum balance requirement is higher than that of competitors, such as HDFC's Biz Lite+. The account opening process can feel bureaucratic, especially for partnership firms and LLPs. Interest rates on linked deposit accounts tend to be lower than those of public sector banks.

HDFC Bank: Biz Lite+ and other current accounts

HDFC Bank is India's largest private sector bank by market capitalisation, with over 8,500 branches. Their current account range spans entry-level Biz Lite+ to premium Biz Elite+.

Features that stand out

The Biz Lite+ Account is specifically designed for small and entry-level businesses. You get free cash deposits up to ₹2 lakh/month (or 6 times your current month's AMB, whichever is higher). That is more than enough for most small businesses.

HDFC's SmartHub Vyapar is a comprehensive payment acceptance solution. You can accept card payments, generate QR codes, send payment links, and even apply for instant loans — all from one app. For businesses that sell online or in-store, this integration is genuinely useful.

Free NEFT and RTGS payments through NetBanking and MobileBanking keep your daily transfer costs at zero. The balance commitment waiver kicks in if your quarterly POS/payment gateway volume crosses ₹3 lakh — making the effective minimum balance zero for active merchant businesses.

HDFC business account pricing

For outward remittances, HDFC charges ₹500 for transactions up to USD 500 and ₹1,000 for transactions above that. They support 22 currencies through SWIFT. Inward remittances are processed at no direct charge — though the exchange rate markup still applies.

HDFC: Strengths and trade-offs

What works well: The lowest entry-level AQB in the market at ₹10,000 (with POS linkage). A massive branch network for cash-heavy businesses. SmartHub Vyapar is a solid all-in-one payment tool. The balance waiver for POS-active businesses is a real cost saver.

Where it falls short: The fee structure is complex — charges differ by account variant, branch location, and transaction type. Non-maintenance penalties at ₹2,500/quarter can sting if your balance dips. The 3.5% cross-currency markupmakes international debit card transactions expensive.

Kotak Mahindra Bank: Advantage Current Account

Kotak Mahindra Bank has positioned itself as a digitally forward private bank. Their current account options are designed to balance branch accessibility with strong online banking tools.

Features that stand out

Kotak's Advantage Current Account offers free cash deposits up to ₹7.5 lakh/month at home city branches. That is a healthy limit for most SMEs. You also get free cheque pickup once a day — a small convenience that adds up.

The real differentiator is Kotak Fyn, their digital enterprise portal. It enables paperless transactions and provides a unified dashboard for managing your business finances. For businesses that prefer digital-first operations, this is a practical tool.

Free NEFT and RTGS collection means domestic payments incur no fees. Free RTGS, NEFT, and DD transactions up to ₹50 lakh/month through branches is a generous limit for medium-sized businesses.

Kotak business account pricing

Kotak also offers a Global Trade Account in 3 variants — GTA Pro, GTA Elite, and GTA Ace — specifically for importers and exporters. Each has different quarterly throughput requirements and fee structures.

Kotak: Strengths and trade-offs

What works well: Free remittances across 200+ cities up to ₹25 lakh/month. Unlimited free within-bank fund transfers. International Titanium Mastercard with a high ATM withdrawal limit. 24/7 phone banking and net banking.

Where it falls short: The ₹50,000 QAB is higher than HDFC's entry-level option. The free cash deposit limit of ₹7.5 lakh is lower than that forHDFC's higher-tier accounts. Non-maintenance charges add up if your balance fluctuates seasonally.

Head-to-head comparison: ICICI vs HDFC vs Kotak

The real cost of international payments through traditional banks

Here is where it gets interesting for businesses with global clients. Traditional banks are solid for domestic operations, but international payments are a different story.

Let us say you receive a $10,000 payment from a US client through your HDFC business account via SWIFT. Here is what the total cost might look like:

That is 1.2% to 3.6% of your invoice value — gone before the money hits your working capital. The exchange rate markup alone can exceed a neobank's entire fee. Multiply that across 12 months of invoicing, and the numbers become hard to ignore.

This is precisely why many Indian SMEs with international clients are exploring neobanks and fintech alternatives for their cross-border payments.

Neobank alternatives for businesses with global clients

Neobanks are not a replacement for your domestic current account. You still need ICICI, HDFC, or Kotak for cash deposits, cheque clearing, and local operations. But for international payment collection, neobanks can save you a significant chunk of money.

Wise Business

Wise offers a multi-currency account that supports 70+ countries, with transparent fees starting at 0.43% for currency conversions. You get local account details in multiple currencies, so your clients pay you like a local — no SWIFT fees on their end. There are no monthly charges, making it practical for businesses with irregular international income.

Payoneer

Payoneer supports 9 currencies and offers payouts in 190 countries. It integrates with 2,000+ platforms, including Amazon, Upwork, and Fiverr — making it the default for marketplace sellers. The FX markup of 2-3% is lower than banks' but higher than some alternatives. FIRA documentation is available digitally.

Winvesta

Winvesta's global collection accounts give Indian businesses local bank details in the US (ACH), UK, Europe (IBAN), Canada, and Australia. Clients pay into these local accounts, avoiding expensive international wire transfer fees.

The fee structure is straightforward: $3 plus 0.99% per transaction, with no FX markup on USD. That means a $10,000 payment costs roughly $102 (about ₹8,550) — compared to ₹9,750-₹30,200 through a traditional bank. Funds typically land in your INR account within 1-3 business days. FIRA documentation is included automatically at no extra cost.

For businesses receiving regular international payments, the maths works clearly in favour of a dedicated collection account. Most SMEs use Winvesta alongside their domestic bank account, keeping cross-border and local banking separate for cleaner reconciliation.

Neobank comparison for international payments

How to choose the right business bank account

Picking a business bank account does not need to be complicated. Match your choice to your business profile:

If you are a cash-heavy local business, go with ICICI's Smart Business Account Gold for its scaled free deposit limits, or HDFC's Biz Pro+ / Biz Ultra+ for high monthly cash handling. Branch access matters here, and both banks have extensive networks.

If you are an early-stage startup or micro-business, HDFC's Biz Lite+ at ₹10,000 AQB (with POS) is the most accessible. ICICI also offers startup accounts with zero balance for the first 6 months.

If you handle moderate volumes and value digital tools, Kotak's Advantage Current Account with Kotak fyn gives you a strong digital experience and generous free transaction limits.

If you receive regular international payments — use a traditional bank for domestic needs and layer a multi-currency collection account on top. The savings on FX and transfer fees typically outweigh the minimal effort required to manage two accounts.

Documents you need to open a business current account

The exact list varies by bank and entity type, but most banks require: PAN card of the business and directors/partners, Aadhaar card or passport for identity verification, proof of business address (utility bill, rental agreement, or ownership proof), certificate of incorporation or partnership deed, GST registration certificate (some banks accept Udyam registration or Shop Act licence for unregistered businesses), board resolution authorising account opening (for companies), and recent passport-size photographs of authorised signatories.

Sole proprietors can typically open a current account with fewer documents—PAN, Aadhaar, and one business proof are often sufficient.