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CHAPTER-1

GENERAL PROFILE OF KOTAK MAHINDRA BANK

Type Founded Headquarters

Key People Kotak Industry Products banking

Private BSE & NSE 1985 (as Kotak Mahindra Finance Ltd.) Kotak Mahindra Bank Ltd. Nariman Bhawan, Nariman Point, Mumbai, India Chairman - Mr. K.M. Gherda Executive Vice Chairman & Managing Director - Mr. Uday Chairman of Board of Directors - Dr. Shankar Acharya Banking Deposit accounts, Loans, Investments, Services, Business Solutions, Treasury and fixed income products etc.

CHAPTER-2 Introduction to Kotak Mahindra Bank


1. 2. 3. 4. 5. Overview Journey So Far Kotak Group Companies Creating Banking History Awards

Introduction to Kotak Mahindra Bank 2.1 OVERVIEW


Kotak is one of Indias leading financial institutions, offering complete financial solutions that encompass every sphere of life. From commercial banking, to stock broking, to mutual funds, to life insurance, to investment banking, the group caters to the financial needs of individuals and corporate. The group has a net worth of over Rs.5,600 crore, employees around 17,100 people in its various businesses and has a distribution network of branches, franchisees, representative offices and satellite offices across more than 344 cities and towns in India and offices in New York, London, Dubai, Mauritius and Singapore. The group services around 3.6 million customer accounts.

2.2 JOURNEY SO FAR


The Kotak Mahindra Group was born in 1985 as Kotak Capital Management Finance Limited. This company was promoted by Uday Kotak, Sidney A.A. Pinto, and Kotak and Company. Industrialist Harish Mahindra and Anand Mahindra took a stake in 1986, and that's when the company changed its name to Kotak Mahindra Finance Limited. Since then its been steady and confident journey to growth and success. 1986 1987 Kotak Mahindra Finance Limited starts the activity of Bill Discounting. Kotak Mahindra Finance Limited enters the Lease and Hire Purchase market

The Auto Finance division is started. The investment Banking Division is started. Takes over FICOM, one of Indias largest financial retail marketing networks. 1992 Enters the funds Syndication sector. 1995 Brokerage and Distribution businesses incorporated into a separate company- Kotak Securities. Investment banking division incorporated into a separate Company Kotak Mahindra Capital Company. 1996 The Auto Finance Business is hived off into a separate company Kotak Mahindra Prime Limited (formally known as Kotak Mahindra Primus Limited). Kotak Mahindra takes a significant stake in Ford Credit Kotak Mahindra Limited, for Financing Ford vehicles. The launch of Matrix Information Services Limited marks the Groups entry into information distribution. 1998 Enters the Mutual Fund market with the launch of Kotak Mahindra Asset Management Company. 2000 Kotak Mahindra ties up with Old Mutual plc. for the Life Insurance Business. Kotak Securities launches its online broking site (now www.kotaksecurities.com) Commencement of private equity activity through setting up of Kotak Mahindra Venture Capital Fund. 2001 Matrix sold to Friday Corporation. Launches Insurance Services 2002 Kotak Mahindra Finance Ltd. converts to a commercial bank the first Indian company to do so. 2004 Launches India Growth Fund, a private equity fund. 2005 Kotak Group realigns joint venture in ford credit; Buys Kotak Mahindra Prime (formerly known as Kotak Mahindra Primus Limited) and sells Ford Credit Kotak Mahindra.

1990 1991

2.3 KOTAK GROUP COMPANIES


Kotak Mahindra Bank The Kotak Mahindra Bank Group flagships company, Kotak Mahindra Finance Ltd which was established in 1985, was converted into a bank Kotak Mahindra Bank Ltd in March 2003 becoming the first Indian company to convert into a bank. Its banking operations offers a central platform for customers relationships across the groups various businesses. The bank has a presence in the commercial vehicles, Retail Finance,Corporate Banking, Treasury and Housing Finance. Kotak Mahindra Capital Company Kotak Mahindra Capital Company Limited (KMCC) is Indias premier Investment Bank and a Primary Dealer (PD) approved by the RBI. KMCCs core business areas include Equity Issuances, Mergers & Acquisition, Structured Finance and Advisory Services, Fixed Income Securities and Principal Business. Kotak Securities Kotak Securities Ltd. is one of Indias largest brokerage and securities distribution house in India. Over the years Kotak Securities has been one of the leading investment broking houses catering to the needs of both institutional and non-institutional investor categories with presence all over the country through franchisees and co-coordinators. Kotak Securities Ltd. offers online and offline services based on well-researched expertise and financial finance to dealers products to the non-institutional investors. Kotak Mahindra Prime Kotak Mahindra Prime Ltd. (KMP) (formerly known as Kotak Mahindra Primus Limited) has been formed with the objective of financing the retail and wholesale trade of passenger and multi utility vehicles in India .KMP offers customers retail finance for both new as well as used cars and wholesale in the automobile trade, KMP continuous to be among the leading car finance companies in India. Kotak Mahindra Asset Management company Kotak Mahindra Asset Management Company (KMAMC), a subsidiary of Kotak Mahindra Bank, is the asset manager for Kotak Mahindra Mutual Fund (KMMF). KMMF manages funds in excess of Rs. 11,000 cores and offers schemes catering to investors with varying risk-return profiles. It was the first fund house in the country to launch a dedicated gilt scheme investing only in govt. securities Kotak Mahindra Old Mutual Fund Insurance Limited

Kotak Mahindra Old Mutual Life Insurance Limited is a joint venture between Kotak Mahindra Bank Ltd. and Old Mutual plc. Kotak Life Insurance helps customers to take important financial decision at every stage in life by offering them a wide range of innovative Life Insurance products, to make them financially independent.

2.4 Creating Banking History


Established in 1985, the Kotak Mahindra Group has long been one of Indias most reputed financial organizations. In February 2003, Kotak Mahindra Finance Limited, the groups flagship company was given the license to carry on banking business by Reserve Bank of India (RBI). This approval creates banking history since Kotak Mahindra Finance Limited is the first company in India to convert to a bank.

2.5 Awards
1. 10th Best Employer in India. Best Employers in India Study had started as early as October 2006 .Out of several companies from diverse business backgrounds who applied, a total of 230 companies were invited to participate in the Best Employers Study. The views of over 10, 60,000 employees have been represented by over 44,000 employees across India, making this one of the largest employee Research Study conducted in the country. As a participating organization, the Bank went through a series of screening processes including service documentation of HR processes and practices, focus group discussions and on-site audit with the HR team. At the end of the study, Hewitt released the list of top 25 Best Employers in India. On 13th April 07, in an Award ceremony held in Mumbai, Kotak Mahindra Bank Ltd. was declared as The 10th Best Employer in India. It was the only Bank in the top 10 Banking and Youngest Entrant in the entire list of Top 25. 2. Kotak Mahindra Bank limited on 20th July was awarded The Best Private Bank award in Southern Asia.

3. In April 2006 Kotak Mahindra Bank get Kotak Mutual Fund bagged The Lipper India Fund Award for Best Bond Fund. 4. Mr. Uday S Kotak won the award in the service category for Kotak Mahindra Bank. 5. Kotak Mahindra Bank wins F&S Voice of Customer Award in 2007.

CHAPTER-3 Research Methodology


1. 2. 3. 4. Objective of Study Methodology Organization of The Study Limitations of The Study

Research Methodology
3.1 Objective of Study (a) To study Consumer Behaviour towards kotak Mahindra Bank (b) To study the CASA Products of Kotak Mahindra Bank. (c) To study Customer Satisfaction. 3.2 Methodology A research design is a frame work that becomes the base for the collection and analysis of the data. The methodology adopted was descriptive and analytical. The survey among the general public was done keeping in mind all class of people, servicemen as well as businessmen. The sample included both class of people. The other research that was done was questioning some of the businessmen what are the features that they would like to have in their current and savings accounts. This list was compared

with the services provided by Kotak Mahindra Bank to know how far they are fulfilling the needs of todays businessmen. 3.3 Organization of the Study (a) Study Unit: The project considered comprehensive study of financial products like current a/c and savings a/c of a single organization taking the Kotak Mahindra Bank using Sampling Technique. Study Period: The project report covered a study period of two months i.e. June 09 and July 09. Sample Size and Procedure: In order to organize the study in proper manner, certain samples were selected out of the universe using Sampling Technique. The predesigned structured questionnaires, personal and interaction with staff, were the methods used to collect the figures, facts, data, and information from 60 respondents, which was the sample size. Collection of Data: The Study used both the Primary as well as he Secondary Data. The Primary data have been collected from the persons directly by interaction, by the staff, by circulating pre-designed structured questionnaires and personal interviews with the competent authorities of the Study Organization. The Secondary data have been collected from the published materials, reports, documents, circulars, prospectus etc. Besides these, the study also approached to internet in order to collect as much recent information as possible to make the project report more reliable, useful and effective.

(b)

(c)

(d)

(e)

Data Analysis and Interpretation: For the data analysis and interpretation, mainly percentage, chart and diagrams are used to analyze and interpret the data, figures, facts and the information collected related with the sample unit. Diagrams are used to present the statistical data in neat, concise and systematic form 3.4 Limitations of the Study

The proposed study has been organized with reference to Kotak Mahindra Bank at Udaipur city only, which limited the universe of the study. The bank officials have their own limitations to provide the information, particularly meant especially for the internal use and unpublished; which also diluted the quality of the project work. As the present work is the output of efforts made by the single person, therefore it may be suffered from some sort of personal limitations. As the project work contains limited sample size of 60 people so, it has also created certain limitations. Respondents have their own views, preferences, limitations and biasness.

3 4 5

CHAPTER-4 EXECUTIVE SUMMARY

Executive summary
This project is based on Consumer Behaviour towards Kotak Mahindra Bank. Kotak Mahindra Bank has various types of Current and Savings account whose feature are described below. These accounts are prepared keeping in mind various classes of people and their needs. Different accounts have different facilities. Therefore Kotak Mahindra Bank is one place for all the banking needs. Apart from the description of the various kinds of accounts, the project includes the SWOT analysis of Kotak Mahindra Bank, its feature and the facilities providing its strength, the weaknesses were determined by performing survey among the general public, opportunities and threats. Due to Udaipur being an upcoming business sector, Kotak Mahindra Bank has great opportunity to provide its services to these business houses. The major threat that Kotak Mahindra Bank is facing is that from the nationalized and private banks like ICICI bank, HDFC bank, SBI, IDBI bank, etc. The project covers the performance of Kotak Mahindra Bank in Udaipur.

CHAPTER-5 CURRENT ACCOUNT AND SAVING ACCOUNT


1. 2. Current Account Savings Account

5.1 Current Accounts


Kotak Mahindra Bank offers unparalleled advantages with its three Current Account offerings. Whether a person has a small/ mid size business or have an enterprise spread across multiple locations in the country, they would find a Current Account that's just designed for businessmen. With features ranging from Free DDs, Free Cheque Collection, Free AtPar Cheque facility to Free Trading Account & free Demat Account, and more.

5.1(A) Edge Current Account 5.1(B) Pro Current Account 5.1(C) Ace Current Account

5.

5.1(A) Edge Current Account


. Features & Benefits 1. Multi City Banking: current account/s with Kotak Mahindra Bank will be recognized in every other branch. The customer can just walk into a Kotak Mahindra Bank branch in any of branches across country to satisfy all banking needs. 2. ActivMoney:Term Deposit linked Current Account Kotak ActivMoney ensures that the money never stops working. Daily balances, above a threshold level, in Current Account are automatically swept out into Term Deposits (TD). This 'swept out amount' is brought back into account to meet fund requirements when withdrawals exceed the balance available in the account (or when the account balance goes below the specified threshold level.) With Kotak ActivMoney customer can enjoy the twin advantages of attractive returns & maximum liquidity. 3. Free Demand Drafts and Pay Orders: Enjoy the benefit of free Demand Drafts, payable at Kotak Mahindra Bank Branch location in India.

4. At-par Cheques: Get free At-par Cheques that are treated as 'local clearing' cheques across all the branch locations. 5. Cheque Collection: All Outstation cheques, drawn on any of our branch locations, are collected 'at nominal charge'. strong network of correspondent banks enables to collect cheques from 1600 locations across India at faster speed and minimal cost 6. Free Electronic Fund Transfer: Smoothen business transactions with SEFT Facility that lets electronically transfer funds across banks pan India. 7. Free Business Debit Card: A customer can use Kotak Mahindra Bank Global Debit Card to withdraw cash from any Visa ATM. He can use the card to debit current account for all business related expenses 8. Mobile Banking and Alerts: Mobile Banking & Alerts service enables to access bank account on Mobile Phone. Customer can access all standing instructions (SI), any large credits or debits, available balance, balance below AQB, any SI failure and SIs successfully executed will be intimated via SMS.

9. 9. Free Cash Deposit: Free cash deposit, up to a pre-specified limit at any Kotak Mahindra Branch 10. 24 x 7 Phone Banking: 24Hrs Customer Contact Center offers to personalized service round the clock. Just pick up the phone and call at Toll Free number 1800 116022 (North India) OR 1800 226022 (Rest of India). 11. Net Banking Customer can transfer fund to party account and an immediate update of all debits and credits into your bank account. With Net Banking customer can also buy/sell Mutual funds online.

5.1(B) PRO CURRENT ACCOUNT

Features & Benefits 1. Dedicated Relationship Manager: Kotak Mahindra Bank understand that the needs of customers are unique and hence they provide with a dedicated Relationship Manager who will be single point contact at the bank. He/She will ensure that the requirements are

prioritized and will also provide valuable advice regarding smart money management. 2. Multi City Banking: current account/s with Kotak Mahindra Bank will be recognized in every other branch. A customer can just walk into a Kotak Mahindra Bank branch in any of branches across country to satisfy all banking needs. 3. ActivMoney- Term Deposit linked Current Account: Kotak ActivMoney ensures that the money never stops working. Daily balances, above a threshold level, in Current Account are automatically swept out into Term Deposits (TD). This 'swept out amount' is brought back into account to meet fund requirements when withdrawals exceed the balance available in the account (or when the account balance goes below the specified threshold level.) With Kotak ActivMoney a customer enjoy the twin advantages of attractive returns & maximum liquidity. 4. Free Demand Drafts and Pay Orders Enjoy the benefit of free Demand Drafts, payable at any location in India, up to Rs.5 lakh per month. For branch location the bank offer unlimited demand draft/Pay Orders. 5. Free Chequebook and Free At-par Cheques Get free At-par Cheques that are treated as 'local clearing' cheques across all branch locations. A customer will save on DD charges while enjoying the convenience of a cheque! 6. Free Cheque Collection All Outstation cheques, drawn on any of our branch locations, are collected 'free of charge. Strong network of correspondent banks enables to collect cheques from 1600 locations across India at faster speed and minimal cost-free Electronic Fund Transfer Smoothen business transactions with SEFT Facility that lets electronically transfer funds across banks pan India. Unlike EFT this facility is not restricted to only RBI centers. A customer can also avail an RTGS facility whereby he can transfer funds to party account. 7. Free Business Debit Card: A customer can use Kotak Mahindra Bank Global Debit Card to withdraw cash from any Visa ATM across India. He can use the card to debit current account for all business related expenses 8. Mobile Banking and Alerts: Mobile Banking & Alerts service enables to access bank account on Mobile Phone. A customer can access all standing instructions (SI), any large credits or debits, available balance, balance below AQB, any SI failure and SIs successfully executed will be intimated to via SMS. 9. Free At-Home services: At-Home services are made to make Utility Bill payments like electricity, telephone, mobile phone bills etc. A customer can also get documents picked up from business place.

10. Free Cash Deposit Free cash deposit, up to a pre-specified limit at any Kotak Mahindra Branch. 11. Better Forex rates & Efficient Trade Services With Kotak Mahindra bank. A customer can avail best foreign Exchange rates on Inward/Outward remittances .Kotak Mahindra Bank expertise inprocessing of all Export/ Import Bills, with lightning-fast turn-around

time and competitive rates. 12. 24 x 7 Phone Banking: 24Hrs Customer Contact Center offers personalized service round the clock. Just call at Toll Free number 1800 116022 (North India) OR 1800 226022 (Rest of India). 13. Net Banking: Customer can transfer fund to party account and an immediate update of all debits and credits into bank account. With Net Banking customer can also buy/sell Mutual funds online.

5.1(C) ACE Current Account

Features & Benefits 1. Dedicated Relationship Manager: Kotak Mahindra bank understand that the needs of the customers are unique and hence the bank provide with a dedicated Relationship Manager who will be single point contact at the bank. He/She will ensure that the requirements are prioritized and will also provide valuable advice regarding smart money management 2. Multi City Banking: current account/s with Kotak Mahindra Bank will be recognized in every other branch. The customer can just walk into a Kotak Mahindra Bank branch in any of branches across country to satisfy all banking needs. 3. ActivMoney: Term Deposit linked Current Account Kotak ActivMoney ensures that money never stops working. Daily balances, above a threshold level, in Current Account are automatically swept out into Term Deposits (TD). This 'swept out amount' is brought back into account to meet fund requirements when withdrawals exceed the balance available in the account (or when the account balance goes below the specified threshold level.) With Kotak ActivMoney the customer enjoy the twin advantages of attractive returns & maximum liquidity. 4. Free Demand Drafts and Pay Orders: The benefit of free Demand Drafts, payable at any location in India, up to Rs 30 lakh per month. For branch location the bank offers unlimited demand draft/Pay Orders. 5. Free Cheque book and Free At-par Cheques: free At-par Cheques that are treated as 'local clearing' cheques across all branch locations. The customer saves on DD charges while enjoying the convenience of a cheque. 6. Free Cheque Collection: All Outstation cheques, drawn on any of branch locations, are collected 'free of charge'. strong network of correspondent banks enables to collect cheques from 1600 locations across India at faster speed and minimal cost 7. Free Electronic Fund Transfer Smoothen business transactions with SEFT Facility that lets electronically transfer funds across banks pan India. Unlike EFT this facility is not restricted to only RBI centers. Customer also avail an RTGS facility whereby can transfer

funds to party account. 8. Free Business Debit Card: A customer can use Kotak Mahindra Bank Global Debit Card to withdraw cash from any Visa ATM across India. He can use the card to debits current account for all business related expenses 9. Mobile Banking and Alerts: Mobile Banking & Alerts service enables to access bank account on Mobile Phone. Customer can access all standing instructions (SI), any large credits or debits, available balance, balance below AQB, any SI failure and SIs successfully executed will be intimated via SMS.

10. Free At-Home services: At-Home services are used to make Utility Bill payments like electricity, telephone, mobile phone bills etc. Customer can also get documents picked up from business place. 11. Free Cash Deposit: Free cash deposit, up to a pre-specified limit at any Kotak Mahindra Branch. 12. 24 x 7 Phone Banking: 24Hrs Customer Contact Center offers personalized service round the clock. Just call on Toll Free number 1800 116022 (North India) OR 1800 226022 (Rest of India). 13. Net Banking: Customer can transfer fund to party account and an immediate update of all debits and credits into bank account. With Net banking customer can also buy/sell Mutual funds online. 14.

5.2 Savings Accounts Kotak Mahindra bank Savings Accounts are designed to ensure that the customer receive the benefits of quick & convenient banking transactions along with options for money to earn high returns. The savings account goes beyond the traditional role of savings, to provide a range of services from funds transfer options to online payments of bills to attractive returns earned through a comprehensive suite of investment options. The bank has a number of variants of savings accounts customized to suit individual needs. There are mainly four types of saving account:

5.2(A) Ace Savings Account 5.2(B) Pro Savings Account 5.2(C) Edge Savings Account

5.2(D) Corporate Salary Account


5.2(E) Nova Saving Account

5.2(A) Ace Saving Accounts

Features & Benefits: 1. Free access at all international VISA ATMs: The customer has no longer to worry about locating Bank or Partner Bank ATM - The first VISA ATM that offer free cash withdrawal or balance enquiry transactions. A customer can walk into any VISA ATM in India or abroad to withdraw cash or for balance enquiry. 2. Multiple access channels: The customer can access account anytime through land line, mobile phone or internet to get information on account balance or track transactions. Customer can even transfer funds through Phone Banking or Net Banking. 3. Financial payments facilitated through the savings account: The free Kotak Payment Gateway to make online payments for utility bills, credit cards, online trading or even online shopping. 4. Quick and easy funds transfer: Transfer funds easily and with speed, to a beneficiary account at another bank. Customer can avail this facility by walking into any branches or by simple logging on to Net Banking. Customer also gets a free multi-city cheque book so that money from account is transferred to the beneficiary's account at any of branch locations, in the fastest possible time. 5. Free banking transactions: Customer can issue demand drafts or send cheques for collection at all branches for no extra charge. 6. Free At-Home services: At home service is provided to make Utility Bill payments like electricity, telephone, mobile phone bills etc. Customer can also get documents picked up from business place. 7. ActivMoney Earn better returns in savings account, with ActivMoney facility that automatically sweeps out idle funds, above a threshold, from account into Term Deposits. These Term Deposits sweep back into account to meet fund requirements when withdrawals exceed the balance available in account, thereby providing maximum liquidity. 8. Free investment account: The Net Banking facility to purchase/redeem mutual funds online while directly debiting / crediting bank account. Further, the customer gets a free investment account for tracking investments with the Bank. This account provides a consolidated view of all mutual fund investments across schemes with updated returns status, latest NAV information and research reports. 9. Dedicated relationship manager: get a one point contact for all banking related queries and transactions. Relationship manager is qualified to help with financial planning and sound investment decisions in order to meet financial goals. 10. Family Savings Account: the Kotak ACE Savings package allows extending the Kotak banking experience to three of the family members. The Family Savings Account comes equipped with all the benefits of a regular savings account with a special average quarterly balance of Rs.5000/only. 11. Online trading account: Link savings account to online trading with Kotak Securities to enable transfer of funds from bank account to customer account with KS and vice versa.

5.2(B) Pro Saving Accounts

Features & Benefits 1. Free ATM access all domestic VISA ATM network: Walk into any VISA ATM in India to check balance or withdraw cash absolutely free. The customer has to no longer have to worry about locating Bank or Partner Bank ATM Use the first VISA ATM that you spot, for cash withdrawal or balance enquiry transactions. 2. Multiple access channels: The customer can access account through phone, mobile phone or internet to get information of account balance or track transactions. The customer can even transfer funds through Phone Banking or Net Banking. 3. Free investment account: Customer can open an investment account, and use the Net Banking facility to purchase/redeem mutual funds online while directly debiting / crediting bank account. Besides this he can get a consolidated view of all mutual fund investments across schemes with updated returns status, latest NAV information and research reports. 4. Financial payments facilitated through the savings account: The free Payment Gateway is provided to make online payments for utility bills, credit cards, online trading of shares or even online shopping. 5. Quick and easy funds transfer: Quick funds transfer to a third party account with another Bank is provided across 15 locations through Net Banking. Customer also gets a multi-city cheque book so that money from account is received by the beneficiary in the fastest possible time. 6. ActivMoney: Earn better returns in savings account, with ActivMoney facility that automatically sweeps out idle funds, above a threshold, from account into Term Deposits. These Term Deposits sweep back into account to meet fund requirements when your withdrawals exceed the balance available in account, thereby providing you maximum liquidity. 7. Dedicated relationship manager: The bank provide a one point contact for all banking related queries and transactions. Relationship manager will also help with financial planning and sound investment decisions. 8. Free banking transactions: Customer can issue demand drafts or send cheques for collection on branch locations without any charge to customers account. 9. Free At-Home services: At-Home services are provided to make Utility Bill payments like electricity, telephone, mobile phone bills etc. The customer can also get documents picked up.

5.2(C) Edge Saving Accounts

Features & Benefits 1. Multiple Access Channels: Customer can access account through phone, mobile phone or internet to get information on account balance or track transactions. Customer can even transfer funds through Phone Banking or Net Banking. 2. Financial payments facilitated through the savings account: The free Payment Gateway to make online payments for utility bills, credit cards, online trading of shares or even online shopping. 3. Quick and easy funds transfer: Quick funds transfer to a third party account with another Bank is available across 15 locations through Net Banking. Customer also gets a multicity cheque book so that money from account is received by the beneficiary in the fastest possible time. 4. Free investment account: Customer can open an investment account, and use the Net Banking facility to purchase/redeem mutual funds online while directly debiting / crediting Bank Account. Besides this he gets a consolidated view of all mutual fund investments across schemes with updated returns status, latest NAV information and research reports. 5. ActivMoney: Earn better returns in savings account, with ActivMoney facility that automatically sweeps out idle funds, above a threshold, from account into Term Deposits. These Term Deposits sweep back into account to meet fund requirements when withdrawals exceed the balance available in account, thereby providing you maximum liquidity.

5.2(D) Corporate Salary Account

Features & Benefits 1. Free At-par Cheques Kotak Mahindra Bank's At-par cheques are treated as 'local clearing' cheques across select locations in the country. The At-par Cheque facility is 'free' of charge. 2. Free Cheque Collection Outstation cheques, drawn on any of our branch locations, would be collected 'free of charge'. Only a nominal charge is levied for non-branch locations. 3. Free Electronic Fund Transfer: Transfer funds to third party accounts in other banks, without drawing a Demand Draft or a cheque, by using our Electronic Fund Transfer facility. With this facility customer can save on Demand Draft making/couriering charges and also transfer funds faster. 4. Free Demand Drafts: Avail Demand Drafts, free of cost, payable at any location in India, up to a pre-specified limit, just by calling Phone Banking Service. 5. Free Demat Account: As an Edge Salary customer, customer can also open a Demat Account with 'free' of any account opening charge. 6. Reimbursement Current Account: As Salary account holders employees can also opt for a Reimbursement account which helps to manage the official reimbursements, petty cash etc., and this facility specifically will help eliminate cash handling related to petty expenses.

5.2(E) Nova Saving Accounts

Features & Benefits 1. Multiple access channels: Access account through phone, mobile phone or internet to get information on account balance or track transactions. Customer can even transfer funds through Phone Banking or Net Banking. 2. Financial payments facilitated through the savings account: The free Kotak Payment Gateway to make online payments for utility bills, credit cards, online trading of shares or even online shopping. 3. Quick and easy funds transfer: Quick funds transfer to a third party account with another bank is available across 15 locations through Net Banking. Customers also get a multi-city

cheque book so that money from account is received by the beneficiary in the fastest possible time. 4. Free investment account: Customer can open an investment account, and use the Net Banking facility to purchase / redeem mutual funds online while directly debiting/crediting bank account. Besides this customer get a consolidated view of all mutual fund investments across schemes with updated returns status, latest NAV information and research reports. 5. ActivMoney: Customer earns better returns on savings account, with ActivMoney facility that automatically sweeps out idle funds, above a threshold, from account into Term Deposits. These Term Deposits sweep back into account to meet fund requirements when withdrawals exceed the balance available in your account, thereby providing the maximum liquidity.

CHAPTER 6

KNOW YOUR CUSTOMER (KYC)

KNOW YOUR CUSTOMER (KYC)


Reserve bank of India has since issued guidelines on KNOW YOUR CUSTOMER & CASH TRANSACTIONS under section 35(A) of the Banking Regulation Act, 1949 for implementation by all banks. While existing instructions of RBI would continue to be

implemented, new provisions included in the KYC guidelines have been implemented with effect from 01.11.2002.

Care should be taken that the customers are not inconvenienced in this exercise.

Introduction
KNOW YOUR CUSTOMER (KYC) is the platform on which the banking system operates to help control financial frauds, identify money laundering and suspicious activities, and for scrutiny and monitoring of large value transactions. RBI has issued several guidelines for identification of customers and monitoring of cash transactions. Various guidelines in this regard are being consolidated here under: Objective is to establish procedures / system: to verify the bona-fide identification of individuals / corporate opening an account to monitor high value transactions and transactions of suspicious nature in accounts. The focus of the KYC is on back to basics & adopting an elaborate the standard for obtaining comprehensive information regarding new (as well as old) customers at the initial stage.

CHAPTER 7 DOCUMENTATION

7.1 REQUIREMENTS FOR ACCOUNT OPENING 7.1(a) Documentations NO. VALID DOCUMENTS
1 2 3 4 5 6 7 8 PASSPORT DRIVING LICENSE PAN CARD PAN INTIMATION LETTER PHOTO CREDIT/DEBIT ACCEPT CARD ISSUED BY BANKS VOTERS IDENTITY ACCEPT (ELECTION) CARD RATION CARD

IDENTITY PROOF
ACCEPT ACCEPT ACCEPT

RESIDENCE PROOF
ACCEPT ACCEPT

SIGNATURE PROOF
ACCEPT

ACCEPT ACCEPT ACCEPT ACCEPT ACCEPT IF SIGN INCL

9 10 11 12 13 14 15

COLLEGE ID CARD- IF PHOTO IF ADDR INCL APPLICABLE ONLY IF A/C INCL WITH PARENT / GUARDIAN MARRIAGE CERTIFICATE- ACCEPT ACCEPT WHERE WIFE IS JOINT A/C HOLDER UTILITY BILL ACCEPT LETTER FROM HOUSING SOCIETY CREDIT CARD BILL ACCEPT ACCEPT

ACCEPT

BANK STATEMENT ACCEPT (SIGNED & STAMPED) BANK PASSBOOK IF PHOTO IF ADDRESS INCL INCL SALES DEED ACCEPTED

16 17

SELF SIGNED >RS.10,000

CHEQUE

ACCEPTED

INTRODUCTURY ACCEPT REFRENCEEXESTING KMBL CUSTOMER>6 MONTHS-A/C CONDUCT SATISFACTORY & INTRODUCER KNOWS CUSTOMER FOR 1 YEAR OR MORE

7.1(b) PROPRIETORSHIPS Account opening form Letter from the Proprietor in his personal capacity Photographs of those operating accounts PAN Number

7.1(c) PARTNERSHIPS Account opening form duly filled in signed by all the partners Letters signed by all the partners in their personal capacity No minor partner or his guardian need sign any document A copy of the partnership deed signed by all the partners (preferably notarized) Photographs of those operating the account. PAN Number.

7.1(d) HINDU UNDIVIDED FAMILY Every male member, born into the family becomes a co-parcener. Requirements A declaration signed by all the major co parceners including the Karta informing the Bank, the names, ages of all the male co parceners including minor co parceners. All the major co parceners should give a declaration declaring the name of the Karta and authorizing him to operate the account either singly or jointly with another co

parcener. When a minor co parcener becomes a major, a fresh letter must be procured from this person confirming the operating instructions. Photographs of those operating accounts PAN Number

7.1(e) LIMITED COMPANIES Account Opening form duly completed and signed by authorized officials. Certified copy of the Minute of the Board of Directors Meeting permitting the opening of the account. The minute must state the names of the officials who will operate the account and the manner the account will be operated. Certified copy of the certificate of incorporation.

CHAPTER 8 FEATURES AND SCHEDULE OF CHARGES

SCHEDULE OF CHARGES OF SAVINGS ACCOUNTS No.


1 2 3

FEATURES
Initial payment Average Quarterly Balance (AQB) DD (Branch & Non-Branch Location)

ACE
Rs. 75,000 Rs., 75,000 Free upto Rs.30 lakhs p.a. (Rs. 2.50 per 1,000 above the free limit)

PRO
Rs. 20,000 Rs. 20,000 Free upto Rs.5 lakhs p.a. (Rs. 2.50 per 1,000 above free limit)

EDGE
Rs. 10,000 Rs. 10,000 Rs. 2.50 per 1,000

6 7 8

9 10 11 12 13 14 15 16 17 18 19 20

Out Station Cheque Collection (Local & Branch Location) Out Station Cheque Collection (NonBranch Location) AT PAR Cheque Books 2-Way Sweep Out into TD Instrument (Cheque, DD) Pick-up & Delivery Cash Pick up/ Delivery ATM Net Banking Phone Banking SMS Banking Additional Savings Account MFs Investment A/c AQB Nonmaintenance Account Closure (within 6 months of a/c opening) DD Cancellation Cheque Return Stop Payment

Free

Free

Free

Correspondent bank charges Free Rs.150K Free (Once/Day) thereafter Rs.50

Correspondent bank charges Free Rs.40K Free (Once/Day) thereafter Rs.50

Rs. 2.50 per 1,000

Free Rs.20K Rs.50

Free (Once/Day) Free (Once/Day) Pick-up Rs.150, thereafter Rs. 150 thereafter Rs. 150 Delivery Free(Once/Day) All International All Visa Free Kotak & HDFC Visa Free (upto (upto limit Free (upto limit limit Rs.75,000) Rs.25,000) Rs.25,000) Free Free Free Free Free Free Free Free Free 3 Nova Savings 1 Nova Savings NA A/c A/c Free Free Free Rs.1200/Qtr. Rs.1200 Rs. 100 Rs. 300 Rs. 100 Rs.750/Qtr Rs. 600 Rs. 100 Rs. 300 Rs. 100 Rs.750/Qtr Rs. 600 Rs. 100 Rs. 300 Rs. 100

SCHEDULE OF CHARGES OF CURRENT ACCOUNTS No.


1 2 3 4 5 6 7

FEATURES
Initial payment Average Quarterly Balance (AQB) DD (Branch Locations) DD (Non-Branch Locations) Cheque Collection Out Station Cheque Collection (Branch Location) Out Station Cheque Collection (Non-Branch Location) AT PAR Cheque Books 2-Way Sweep Out into TD Instrument (Cheque, DD) Pick-up & Delivery Cash Pick up/ Delivery ATM

ACE
Rs. 2,50,000 Rs. 2,50,000 Free; Unlimited Free upto Rs.30 lakhs p.m. Free Free Rs. 1 per 1,000

PRO
Rs. 50,000 Rs. 50,000 Free; Unlimited Free upto Rs.5 lakhs p.m. Free Free Rs. 2.50 per 1,000 Free Rs.1,00,000 Free (Once/Day) thereafter Rs.25 Free (Once/Day) thereafter Rs. 100 All Visa Free (upto limit Rs.25,000) Free Free Free 1 Nova Savings A/c Free Rs.1000/Qtr Rs. 1000 Rs. 100

EDGE
Rs. 25,000 Rs. 25,000 Free; Unlimited Rs. 2.50 per 1,000 Free Rs.2.5/1000 Rs. 2.50 per 1,000

8 9 10

Free Rs.5,00,000 Free (Once/Day) thereafter Rs.25

Rs.4 per Leaf Rs.50,000 Rs.25

11 12 13 14 15 16 17 18 19 20

Free (Once/Day) thereafter Rs. 100 All International Visa Free (upto limit Rs.75,000) Net Banking Free Phone Banking Free SMS Banking Free Additional Savings 3 Nova Savings Account A/c MFs Investment Free A/c AQB NonRs.5000/Qtr. maintenance Account Closure Rs.5000 (within 6 months of a/c opening) DD Cancellation Rs. 100

Rs.100 Kotak & HDFC Free (upto limit Rs.25,000) Free Free Free NA Free Rs.1000/Qtr Rs. 1000 Rs. 100

21 22

Cheque Return Stop Payment

Rs. 300 Rs. 100

Rs. 300 Rs. 100

Rs. 300 Rs. 100

CHAPTER-9 CONVENIENCE BANKING

CONVENIENCE BANKING

Anywhere, Anytime Banking In todays day and age time is money. Person work hard and have a busy schedule. Doing banking should be easy and convenient and not add to worries. Kotak Mahindra Bank have specially tailored a wide range of value added products and services to make money work. These, coupled with the highest standard of customer care will make life simpler and easier. 8.1 Net Banking Provide details across Accounts, Term Deposits, Demat Accounts 24x7 8.2Mobile Banking Provide online banking without a PC or internet connection. Make payments online. 8.3 Phone Banking

24 hr customer service centre. 8.4 ATM Network Constantly growing ATM network brings the bank within easy reach. 8.5 SMS Banking Provide bank on mobile. 8.6Alerts Get Alerts on mobile or by email for events that the customer would like to keep track of.

8.1 Net Banking

Kotak Mahindra Bank's Net Banking service brings the timeless world of instant banking. It is quick and easy, available 24X7 It gives instant access to Banking Accounts, Demat Accounts, Investment Accounts, and Insurance Accounts. In addition customer can transfer money, pay bills, pay for online shopping, make subscription payments and more. And all this comes on a robust and secure technology platform. Net Banking gives a host of services, giving complete control of accounts:

View account balance, account activity, place standing instructions and cheque status Open a Term Deposit

Transfer funds online between your/third party accounts with Kotak Mahindra Bank or any other bank account. Place request for a cheque book, debit card PIN, add on card or payment gateway registration View securities available for Demat View current Mutual Fund holdings, Buy and redeem Mutual Funds online Shop online at over 3000 websites; make utility bill payments across more than 60 companies and 42 cities.

8.2 Mobile Banking

Using the service, a customer can access bank accounts and investment accounts at fingertips, anytime, anywhere. All this convenience comes on a secure and user friendly GPRS-based Mobile Banking platform. Mobile Banking Features

Menu driven service no need to remember complex codes Security through 128 bit encryption. Check account balances for Current, Savings & Term Deposit accounts View account activity Transfer funds between accounts or other accounts in Kotak Bank Purchase Mutual Fund units Redeem Mutual Fund units Report loss/theft of Debit Card and request for replacement Check status of your Cheque instruments Request issue of new Cheque book

8.3 Phone Banking

The bank has a 24 hrs Customer Contact Center to offer personalized service round the clock. Just pick up the phone and call on Toll Free number 1800 116022 (North India) OR 1800 226022 (Rest of India). If customer calls from abroad, he may call +91 22 6600 6022. Whether it is something as urgent as a stop payment or simply wants to know balances customer can just give a call. Toll free number gives access to account, from anywhere... anytime.

Enquire on account details - balance, account activity, uncleared fund details and cheque status. Enquire on the latest interest and exchange rates. Request for fund transfer* between accounts at Kotak Mahindra Bank. Open a term deposit or get details of all term deposits Initiate standing instructions or place stop cheque payment instructions. Request a cheque book and account statements.

8.4 ATM Network

Strategically located and constantly growing ATM network brings the bank within easy reach. The state of the art touch screen Kotak Mahindra Bank ATMs are part of the Visa/Plus ATM network. That means customer can withdraw cash from ATM Network with International and Domestic Visa/Visa Electron/Plus Credit Cards/Debit Cards. With special arrangement with HDFC Bank, customer can use Kotak Mahindra Bank Global Debit Card at HDFC Bank ATMs absolutely free.

24-hour access to cash Transfer funds between accounts View Account Balances and Mini Statement Pin Change option

8.5 SMS Banking

Kotak Mahindra Bank's SMS Banking service enables to access bank account, investment account and demat account on Mobile Phone. Gives latest update on account balance, salary credits, large debits, large credits, holding value and much more, on mobile anytime. It is quick and easy, available 24X7 Simply by sending an SMS to 5676788 customers can get the details for following updates.

K HELP for details

Balance Inquiry Last 3 Transactions Statement on email Cheque Status Inquiry Investment Accounts Know Your Account No. Holding Value Demat Accounts Know Your Account No. Holding Value Locator Know the nearest ATM Know the nearest Branch

K BAL B K TXN B K STMT B K CHQSTATUS B C

New Cheque Book Request K CHQBOOK B K MFACCT A K MFBAL X K DPACCT A K DPBAL Y K ATM <Postal Pin code> K BRANCH <Postal Pin code>

A Last 4 digits of Customer Relationship Number B Last 4 digits of Account Number C Complete Cheque Number X Last 4 digits of Investment Account Y Last 4 digits of Demat Account

8.6 Alerts

Term Deposits

Features & Benefits 1. An existing customer can place a term deposit through Phone Banking or Net Banking. He can even renew this deposit by placing an instruction over phone. Needless to mention, he can do all this and more by walking across into any of branches. 2. This facility is available for tenure of 181 days or more. One can also choose to link term deposit to savings / current account, whereby if need be, term deposit will automatically

be encashed to meet withdrawal requirement. 3. No penalty on pre-mature encashment in case term deposit is pre-maturely encashed; customer will earn interest at the rate prevailing on the date of deposit for the withdrawn amount. 4. Nomination facility available he can avail this facility for each & every account that customer open i.e. nominate different persons for different term deposit accounts. Customer can choose to change the nominee through a declaration in the appropriate form to revise the nomination during the term of the deposit.

CHAPTER-10 COMPETITORS

ICICI BANK
ICICI Bank is India's second-largest bank. ICICI Bank has a network of about 1464 branches and extension counters and over 4721 ATMs. ICICI Bank offers a wide range of banking products and financial services to corporate and retail customers through a variety of delivery channels and through its specialized subsidiaries and affiliates in the areas of investment banking, life and non-life insurance, venture capital and asset management. ICICI Bank set up its international banking group in fiscal 2002 to cater to the cross border needs of clients and leverage on its domestic banking strengths to offer products internationally. ICICI Bank currently has subsidiaries in the United Kingdom and Canada, branches in Singapore and Bahrain and representative offices in the United States, China, United Arab Emirates, Bangladesh and South Africa. ICICI Bank's equity shares are listed in India on the Stock Exchange, Mumbai and the National Stock Exchange of India Limited and its American Depositary Receipts (ADRs) are listed on the New York Stock Exchange (NYSE).

ICICI Bank offer different kinds of services to their customers like


1. Savings Account 2. Current Account 3. Demat Account 4. Fixed Deposits 5. 6. 7. 8. Senior Citizen Account Credit cards Loans Salary Account

SAVINGS ACCOUNT
ICICI Bank provides its customers with various types of savings accounts keeping in mind different needs of different people. So now customers can bank at their convenience, without the stress of waiting in queues.

Benefits of Saving Account:


Nomination facility is available.

Multi-City Cheque Book: Free anywhere banking. Free Internet Banking Free collection of outstation cheques. Free monthly account statements.

Current Accounts
Every business requires efficient banking facilities to support its business activities. ICICI Bank offers premium quality service, unfolding a wide array of class products.

Benefits of Current Account


Unlimited Withdrawal and Deposit. Funds Transfer (Local or Anywhere). Collection of Cheques/ Drafts. Statements, Advices, Daily statement by e-mail. Free Internet Banking. Multicity Cheque payment facility. Anywhere banking facility. Doorstep Banking - Pickup and delivery of Currency / Cheque. Mobile Banking. Pay Orders and Demand Drafts. Debit/ ATM Card.

HDFC BANK
Promoted in 1995 by Housing Development Finance Corporation (HDFC), Indias leading housing finance company, HDFC Band is one of Indias premier bank providing a wide range of financial products and services to its over 11 million customers across hundreds of Indian cities using multiple distribution channels including a pan-India network of Branches, ATMs, Phone Banking, Net Banking and Mobile Banking. Within a short span of time, the bank has emerged as a leading player in retail banking, wholesale banking and treasury operations, its three principal business segments. The Bank had a network of about 1412 branches and 1977 ATMs The Reserve Bank of India has approved the scheme of amalgamation of Centurion Bank of Punjab Ltd. with HDFC Bank Ltd. with effect from May 23, 2008.

HDFC Bank offer different kinds of services to their customers


1. Savings Account 2. Current Account 3. Demat Account

4. 5. 6. 7. 8.

Fixed Deposits Senior Citizen Account Credit cards Loans Salary Account

Savings Account
HDFC Bank offer different kind of Savings Accounts for its customers. They have about 12 types of savings account to fulfill the needs of different section of the society. They have No frills Account, Kissan Club Savings Account, Kids Advantage Account, etc. These are some special Account which other Banks are not providing.

Benefits of Saving Account:


Wide network of branches and over thousand ATMs. Facilities like Net Banking and Mobile Banking. Free cash withdrawals on any other Bank's ATM. Free InstaAlerts for all account holders for lifetime of the account. Free Email Statement facility. Free Payable-at-Par chequebook, without any usage charges.

Current Account
They have about 8 types of Current Accounts which fulfill the need of every business.

Benefits of Current Account


Free Account to account funds transfer between HDFC Bank accounts. Free RTGS/NEFT Transactions. Free anywhere collection & payment within HDFC Bank branch network. Convenience to withdraw & deposit cash at all our branches. Doorstep Banking - Pickup and delivery of Currency/Cheque.