Is current account necessary for receiving payment in foreign currency
Do we need to have a current account to receive fund from abroad? What are the reasons we need a current account instead of a savings account? Find the answers here.
Many publishers in India are receiving payment in a foreign currency, generally US$, for earnings generated through some monetization program at their blog or website. My friend is earning in this way and wanted to open an account to receive this payment in a bank where the transaction fee is minimal. He was told by the Bank manager that the earnings credited comes under the title of a business transaction and hence a current account would be necessary. My friend wants to know whether it is mandatory to have such payment credited to a current account and not a savings account? Blogging and having a website are surely freelance work and not businesses as such. So why then is the manager insisting on having a current account?