Q. In the context of current accounts maintained in commercial banks in India, consider the following statements:

1. They are mainly used for commercial purposes
2. Current accounts do not typically earn interest
3. Banks generally impose maintenance charges on such accounts
4. There is no cap on the number of transactions permitted in such accounts

Which of the above statements is / are correct?
Answer: 1, 2, 3 and 4
Notes: All given statements about current accounts in India are correct. These accounts are meant for business use, offer unlimited transactions, generally earn no interest, and banks usually levy maintenance charges for additional facilities. Their features facilitate smooth and high-volume commercial transactions. This distinguishes them from savings accounts which are designed for personal use and have transaction limits.