5 Top Rated Banks For Small Business in India

Top Rated Banks For Small Business! In the process of managing and expanding a small-sized business, selecting an appropriate bank can be vital. If you’re in search of high-quality loan options, strong corporate checking accounts, or financial services, picking an institution that is rated highly can greatly influence the success of your business.

In this blog we’ll look at the top banks for small-sized companies, looking at their services, customer service, and the way they stand out by offering the financial tools you require to be successful in a highly competitive marketplace.

5 Top Rated Banks For Small Business

No.	Bank Name	Rating (out of 5)
2	State Bank of India (SBI)	4.8
3	HDFC Bank Business Growth Account	4.5
4	ICICI Bank Business Advantage Account	4.6
5	Axis Bank Business Classic Account	4.4
5	Punjab National Bank (PNB)	4.3

1. State Bank of India (SBI) Business Bank Account

It is the State Bank of India (SBI) provides a range of business bank accounts each of which is designed to meet particular needs of small – to medium-sized businesses. Below are the main attributes charges, limitations, and fees that are associated with SBI’s business banking accounts.

Features

1. Monthly Average Balance (MAB):

• Regular Current Accounts require the minimal MAB that is Rs5,000.
• Other types are more suited to MAB requirements, for example, Rs50,000, Rs1,00,000 and up to Rs10,00,000. depending on the type of account.

1. Cash Deposit Limits:

• Cash deposits that are free are permitted as high as Rs5,00,000.00 per month on the regular Current Account. Additional charges could be imposed when deposits exceed this limit.

1. Transaction Facilities:

• Different accounts provide various limits on transactions and services like cash transfers, cheque issuance and online banking. For instance the Vyapaar account permits several users to have access rights appropriate for companies.

1. Free Transactions:

• Certain accounts might offer the possibility of a certain amount of free transactions per month, while other accounts may charge more fees above a specific limit.

1. Access to Banking Services:

• SBI offers convenient accessibility to bank services with the extensive network of branches as well as digital platforms, such as internet banking and mobile banking.

Fees and Charges

1. Monthly Average Balance Penalties:

• In the event that a person who holds an account is unable to keep up with the requirements of MAB penalties could be imposed, and they can differ depending on the type of account.

1. Transaction Fees:

• Charges can be applied when transactions exceed the limit that is free, such as cash withdrawals or deposits beyond the limits.

1. Annual Fees:

• Certain accounts might charge an annual fee. However, certain types, like those offered by the Business Current Account in the UK are not subject to an annual fee, if the MAB is kept.

Limitations

1. Cash Deposit Limits:

• The maximum deposit of cash that is free limit is Rs 5,00,000 per month. If you deposit more than this, you will be charged more fees, which could be detrimental to businesses that have higher cash flow requirements.

1. MAB Requirements:

• The higher MAB requirements for some accounts could be a problem for startups or smaller companies which may not be able to maintain a steady cash flow.

1. Fees for Non-compliance:

• Inability to keep the necessary MAB or exceeding the limit of transactions could result in fees which could affect the overall profit margins of businesses.

The business bank accounts offered by SBI offer different features designed to meet the specific needs of businesses However, they do have specific fees and restrictions that account holders must consider carefully.

2. HDFC Bank Business Growth Account

This account HDFC Bank Business Growth Account is designed to satisfy the requirements of small and medium-sized enterprises (SMEs) seeking to improve your banking services. Below are the most important characteristics, fees, and restrictions that come with the account.

Features

1. Digital Banking Platform :
   • The ability to access MyBusiness Digital Banking allows users to manage many accounts as well as transfer ERP operations, and also manage the receivables and payments efficiently.
2. Transaction Limits :
   • Limits on online money transfers of up to Rs 50 lakh from the HDFC Bank account.
3. GST Compliance :
   • Facilities to raise GST-compliant invoices payment, filing, and payments directly on the bank platform.
4. Custom Business Insurance :
   • Access to a variety of tailored business insurance products that cover a variety of risks, such as marine and fire insurance.
5. Cash Management Services :
   • Support for large-scale payments, trade transaction requirements, and international transfer of funds.
6. Free Transactions :
   • Provides a set number of free transactions per month, with limitations based on the type of account.

Fees and Charges

1. Monthly Average Balance (MAB) :
   • The account might require the minimum MAB that is not met may result in penalty charges.
2. Transaction Fees :
   • Charges can be applied when transactions exceed the limit of free, which includes withdrawals and cash deposits.
3. Annual Fees :
   • Certain accounts might be charged annually However, promotions may waive these charges for the first year.

Limitations

1. Cash Deposit Limits :
   • There could be limitations on the number of complimentary cash withdrawals and cash deposits especially at branches that are not home.
2. MAB Requirements :
   • The higher MAB requirements could be a problem for small businesses that do not have an ongoing flow of cash.
3. Transaction Limits :
   • Limits on the amount of free transactions as well as amounts that are withdrawn or transferred without incurring charges could limit the flexibility of operations.

The HDFC Bank Business Growth Account includes a broad array of features designed specifically for SMEs However, prospective account holders should be aware of the charges and restrictions that come with the account.

3. ICICI Bank Business Advantage Account

The Business Advantage ICICI Bank Account was designed specifically to meet the financial needs of small and medium-sized enterprises (SMEs). These are the main characteristics, charges as well as the limitations of the account:

Features

1. Monthly Average Balance (MAB) :
   • The account is required to maintain an at a minimum MAB of Rs25,000 for individual entrepreneurs, and Rs50,000 for other companies.
2. Free Cash Deposits :
   • As high as Rs 2 lakh per month in home branches, and Rs 1 lakh for non-home branches.
3. Free Cash Withdrawals :
   • up to Rs 1 lakh every month in home branches, and Rs50,000 per calendar month for branch locations outside the home.
4. Free RTGS/NEFT Transactions :
   • Unlimited, free RTGS as well as NEFT transactions using the internet and mobile banking.
5. Preferential Forex Rates :
   • Benefits of preferential forex rates in international currency transactions.
6. Doorstep Banking :
   • The availability of banking on the doorstep to pick up and deliver cash.
7. Business Debit Card :
   • A business credit card for free with increased daily limits in ATM withdrawals as well as POS transactions.

Fees and Charges

1. Non-maintenance of MAB :
   • If the MAB is not kept in good order If the MAB isn’t maintained, a penalty of Rs500 and applicable taxes is imposed.
2. Cash Deposit Charges :
   • Any cash deposits that exceed the free limit will be subject to a charge of the rate of Rs3 per $1,000 plus any taxes applicable.
3. Cash Withdrawal Charges :
   • Cash withdrawals that exceed the limit of free are charged Rs5 per $1,000 plus tax applicable.
4. RTGS/NEFT Charges :
   • RTGS as well as NEFT transactions that exceed the limit of free transactions are charged according to the rates in force.

Limitations

1. Cash Deposit and Withdrawal Limits :
   • The cash deposit free as well as withdrawal limits might not be enough for companies that have high requirements for cash flow.
2. MAB Requirements :
   • Minimum MAB requirements of either Rs25,000 or even Rs50,000 can be a challenge for small companies or start-ups with limited resources.
3. Charges for Non-compliance :
   • Inability to meet the requirements of MAB or overstepping the transaction limit could result in penalty fees and could affect the performance of your business.

The Business Advantage Account of ICICI Bank Account provides a variety of services specifically designed for SMEs However, prospective account owners should be aware of the limitations and fees of the account depending on their particular company needs.

4. Axis Bank Business Classic Account

The Axis Bank Business Classic Account provides a variety of options specifically designed for SMEs and offers unlimited transactions and low costs. However, prospective account users should be aware of MAB needs and arrange their cash flow in order that they do not incur penalties.

Features

1. Monthly Average Balance (MAB) Requirement :
   • The account must be maintained with a minimum MAB of one lakh for urban and metro branches with a minimum of Rs50,000 in semi-urban or rural branches.
2. Free Cash Deposit Limit :
   • up to 10 times the MAB amount, subject to a maximum amount of Rs.1 crore a month for the home branch and at non-home branches.
3. Unlimited NEFT/RTGS Transactions :
   • You can enjoy unlimited free NEFT as well as RTGS transactions via Internet banking  .
4. Unlimited Cash Withdrawals :
   • Free cash withdrawals in unlimited amounts in branches at home or non-home  .
5. Business Classic Debit Card :
   • It comes with an enhanced daily cash maximum of Rs40,000 for withdrawals and a purchasing limit of Rs2,00,000.

Fees and Charges

1. Monthly Service Charge :
   • There is no monthly service fee in effect for the Business Classic account. Business Classic account  .
2. Cash Deposit Charges :
   • Deposits of cash that exceed the free limit are subject to a fee of Rs4 per $1,000 at branches in the home and Rs5 for every Rs1,000 in non-home branches.
3. Other ATM Transaction Charges :
   • The cash withdrawal for domestic customers at the other ATMs of banks will be charged the rate of Rs20 per transaction. the balance inquiry fee is Rs8.5 per transaction  .

Limitations

1. MAB Requirement :
   • The requirement to maintain the minimum MAB of 1 lakh or Rs50,000 could be a challenge for certain businesses, particularly smaller ones, or ones with fluctuations in cash flow.
2. Cash Deposit Limits :
   • Although the cash deposit-free maximum of 10 times the MAB seems adequate, it could not be enough for companies that have a very large demand for cash.
3. Charges for Non-compliance :
   • Failure to adhere to the MAB can result in penalties and could negatively impact the general financial performance of your business.

5. Punjab National Bank (PNB) Business Standard Current Account

This PNB Business Standard Current Account was specifically designed to meet the financial needs of small and medium-sized enterprises (SMEs). The following are the most important characteristics, charges that are associated with the account:

Features

1. Monthly Average Balance (MAB) :
   • The account must have a minimum MAB of the equivalent of Rs25,000 for urban and metro branches, while Rs12,500 is required for rural and semi-urban branches.
2. Free Cash Deposit Limit :
   • As high as Rs 2 lakh per month in branch locations at home or outside of the house.
3. Free Cash Withdrawal Limit :
   • As high as Rs 1 lakh per month for branches at home and Rs50,000 per month for non-home branches.
4. Free RTGS/NEFT Transactions :
   • 4 NEFT free transactions and 2 complimentary RTGS monthly transactions through branch banking.
5. Free Debit Card :
   • Complimentary Debit Card, with no cost ATM withdrawals in PNB ATMs.
6. Internet Banking and Mobile Banking :
   • Access to Internet Banking for free and mobile banking.

Fees and Charges

1. Non-maintenance of MAB :
   • If the MAB is not kept in good order If the MAB isn’t maintained, a penalty of Rs500 and applicable taxes is imposed.
2. Cash Deposit Charges :
   • Deposits of cash that are not allowance will be charged according to the current rates.
3. Cash Withdrawal Charges :
   • Cash withdrawals that exceed the limit of free are subject to the rates in effect.
4. RTGS/NEFT Charges :
   • RTGS or NEFT transactions that exceed the limits of their free account will be charged by the current rates.

Limitations

1. Cash Deposit and Withdrawal Limits :
   • The cash deposit-free and withdrawal limit may not be enough for companies that have a high demand for cash.
2. MAB Requirements :
   • Minimum MAB requirements of Rs25,000 or Rs12,500 might be a challenge for small businesses or new ventures with less funds.
3. Charges for Non-compliance :
   • Failure to adhere to the requirements of MAB or to exceed the limit of transactions could result in penalty fees that could impact the financial performance of the company.

The PNB Business Standard Current Account comes with an array of options that are specifically tailored to SMEs However, prospective customers should be aware of the charges and restrictions of the account depending on their particular requirements for their business.

Related read:- Top 8 Best Banks for Small Business in the USA

Conclusion:

A good bank for your small-sized business is vital to assure smooth company operations and longevity. Each bank has distinctive features in addition to drawbacks as well as advantages. It is important to consider your needs and requirements for liquidity. Consider things like the limitations of the number of transactions you can make, access to charges, and customer service in making your decision. If you choose the suitable bank for your business, perfect it will provide the resources for managing your finances as well as the assistance you require to prosper in a highly competitive market.

Frequently asked questions: