It is not mandatory to open a treasury account, however opening a treasury account shall help your business with the professional treasury management which otherwise is available to large corporates who have a dedicated treasury team.
How is it helpful for my business?
Before we answer this question, we would like to explain you about what happens to your money kept with a bank in your current account.
Every bank has to follow certain guidelines in terms of managing their liquidity, i.e. making the money available to their account holder whenever required or matured. And since the money kept by you in your current account can be withdrawn by you at any point of time, the banks has to make sure that your money is invested or is given as a loan to highly liquid and safest instruments like Treasury Bills, Top rated Commercial Papers, etc.
These highly liquid investments are also made by these banks to meet various regulatory requirements of maintaining Liquidity and Cash Reserve Ratios.
Our treasury solutions shall follow the same guidelines of banking by making your investments directly in your ownership in the instruments like Treasury Bills, Top rated Commercial Papers through a Liquid Mutual Fund which is a debt instrument (not equity) and are considered to be the best alternative to a current account.
Since your money is invested in debt instruments through a liquid mutual fund, your money shall not get effected by the daily volatility of equity market (Stock Market) and provide you with an interest income of upto 6% per annum.