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A PROJECT REPORT ON STUDY OF

BRANCHLESS BANKING
OF
KOTAK MAHINDRA BANK
PROJECT REPORT
Submitted to
M.D.U ROHTAK
In partial fulfillment of the requirement for the Award of degree of
MASTERS OF BUSINESS ADMINISTRATION
Submitted By:
PRATEEK JAIN
14-MBA-1060
Project Guide:

Faculty Guide:

Mr. Varun Jain

Misss Megha Virmani

KOTAK MAHINDRA BANK

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ACKNOWLEDGEMENT

I am thankful to the authority of KOTAK MAHINDRA BANK for providing me an opportunity


to work with them. I am especially thankful to Mr. SHEHZAD SADAR (Branch Manager) and
Mr. VARUN JAIN (Branch Operation Manager) for providing me opportunity, knowledge and
all the vital information on which this project report stands. The support provided to me during
my project was overwhelming and the work environment was conductive to work.
Sometimes it is not easy to express your emotions in words especially when you have to say
thanks your parents for their support with which this project would not have been completed
successfully.
I would like to thank many others who have been associated with work directly or indirectly.

PRATEEK JAIN

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PREFACE

For a management student training plays an important role during her study.Training provides a
croporate or real world platfrom to learn practically. MBA degree without any training or corporate
world experience is just like without oxygen.so practical knowledge provide a great learning
experience about management concept and its applications.
This training provides us an opportunity tyo know the current market.To know the current market
situations,prevailing competitions,behavioral environment of different people

etc.it provides us a

platform whereby we can apply our theoretical knowledge and we can solve many practical
problems.And hence it can help us to be a successful manager in future.
Thanks to all those who directly or indirectly help me to complete this project within a short time
limit.for preparation of this report I would like to thanks to faculty members of our college and staff
members of KOTAK MAHINDRA BANK.

PRATEEK JAIN

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TABLE OF CONTENTS

INTRODUCTION

INDUSTRY PROFILE

COMPANY PROFILE

BRANCHLESS BANKING FACILITY OF KOTAK

LITREATURE REVIEW

OBJECTIVES

RESEARCH METHODOLOGY

DATA ANALYSIS & INTERPRETATION

CONCLUSIONS

RECOMMENDATIONS

LIMITATIONS

ANNEXURE

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INTRODUCTION
Branchless banking is a distribution channel strategy used for delivering financial
services without relying on bank branches. While the strategy may complement an existing bank
branch network for giving customers a broader range of channels through which they can access
financial services, branchless banking can also be used as a separate channel strategy that
entirely forgoes bank branches. Examples of branchless banking technologies are
the Internet, automated teller machines (ATMs), POS devices, EFTPOS devices and mobile
phones. Each of these technologies serve to deliver a set of banking services and are part of
distribution channels that may be used either separately or in conjunction to form the overall
distribution channel strategy.

HISTORY

United Kingdom is an early pioneer of Branchless banking services.

Launched by Midland Bank (now part of HSBC) in 1989,

First direct accounts are operated solely by via the internet, post, or telephone and they do
not themselves operate any retail branches (although HSBC branches can be used to make
deposits) while at the same time offering the full range of banking services.

PERMISSABLE MODELS OF BRANCHLESS BANKING

One-to-one(1-1) Model

One-to-many(1-Many) Model

Many to Many Model

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ONE TO ONE MODEL (1-1)

In this model one bank offers mobile bank services in collaboration with specific Telco

As a consequence, the service may only be offered to the customers using mobile
connection of specific Telco

The example of this is easy paisa

It may be noted that one-one model does not necessarily require exclusivity. Therefore one
bank can have several one-one Telcos with many Telcos,or alternately one Telco can have
several one to one arrangements with many banks.

ADVANTAGES

It offers greater customization, good service standards possibility of co-branding and comarketing

DISADVANTAGES
It lacks in outreach as it is limited to the customers of one Telco only.

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ONE TO MANY MODEL

In this model a bank offers mobile phone bank services to customers using mobile
connection of any Telco

This model offers the possibility to reach to any bankable customers who has mobile phone
connection

The example of this model is UBM Omni.

ADVANTAGES

It offers greater customisation, good service standards possibility of co-branding and comarketing

DISADVANTAGES

It lacks in outreach as it is limited to customers of one Telco only.

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MANY-TO-MANY MODEL

In this model many banks and many Telco join hands to offer service to virtually all
bankable customers

Under this system central transaction processing system(TPS) is necessities, which may be
controlled by an FI or a group of FI or a group of service provider under proper agency
agreement with bank

It just like the existing ATM network in the country where customer of any bank can use
ATM of any other Bank.

TYPES OF BRANCHLESS BANKING

Net banking

Mobile banking

Sms banking

Phone banking

ATM Services

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NET BANKING
Net banking is an electronic payment system that enables customers of financial institution to
conduct financial transactions on website operated by the intuition such as retail bank, virtual
bank, credit union or building society. Net banking is also refferd as online banking,ebanking,virtual banking.
MOBILE BANKING
Mobile banking is a term used to refer to systems that allow customers of a financial
institution to conduct a number of financial transactions through a mobile device such as
a mobile phone or tablet.
SMS BANKING
SMS banking is a type of mobile banking, a technology-enabled service offering from banks to
its customers, permitting them to operate selected banking services over their mobile
phones using Sms messaging. It consists of pull and push messages.
PHONE BANKING
Phone banking is a service provided by a bank or other financial institution that
enables customers to perform a range of financial transactions over the telephone, without the
need to visit a bank branch or automated teller machine. Phone banking times are usually longer
than branch opening times, and some financial institutions offer the service on a 24-hour basis.

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ATM SERVICE
ATM stands for automated teller machine. A visit to an ATM today can help you accomplish
myriad value-added transaction services like utility payments, pre-paid mobile re-charge, credit
card payments, tax payments and much more. Electricity bills, telephone bills, insurance
premiums etc. can be paid through your ATM without even visiting to bank. You just need to go
to your nearest ATM.

Some of the distinctive features of branchless banking are: It removes tradional geographic barriers as it could reach out to customers of different
countries/ legal jurisdiction.
It has added a new dimension to different kinds of risks traditionally associated with
banking, heightening some of them and throwing new risk control challenges.
A new form of competition has emerged both from the existing players and new players
of the market who are not strictly banks.
Security of banking transactions, validity of electric contract, customers privacys etc.
which have all long being concerns of both bankers and supervisors have assumed
different dimensions give the Branchless banking is the public domain, not subject to
control by any single authority of group of users.

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THE BANKING SECTOR IN INDIA

INDUSTRY PROFILE
PORTERS 5 FORCE ANALYSIS

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INDUSTRY PROFILE
Banking in India originated in the first decade of 18th century. The general bank of India comes
into existence in 1786. This was followed by bank of Hindustan. Both of these are now defunct.
The oldest bank in existence in India is the state banks of India being established as The Bank
of Bengal in calculate in June 1806. A couple of decades later, foreign banks like credit
Lyonnais started their Calcutta operations in 1850s. At that point of time, Calcutta was most
active trading port, mainly due to the trade of British Empire, and due to which banking activity
took roots there and prospered. The first fully Indian owned bank was the Allahabad Bank,
which was established in 1865. By the 1990s the market expanded with the establishment of
banks such as Punjab national bank, in 1895 in Lahore and bank of India, in 1906, in Mumbai
both of which are founded under private ownership. The reserve bank of India formally took on
the responsibility of regulating the Indian banking sector from 1935. After the Indias
independence in 1947, the reserve bank was nationalized and given broad powers. The banking
in India was controlled aid combated by the presidency banks, namely, the bank of Bombay, the
Bank of Bengal, and the bank of madras- which later on merged to form the imperial bank of
India. And the imperial bank of India upon Indias independence was the rename the state bank
of India. The presidency banks were like the central banks and discharged most old the font tins
of central banks. They were established under charters from the British East India Company. The
exchange banks mostly owned by Europeans, concentrated on financing foreign trade. Indian
joint stock bank were generally capitalized aid lacks the experience and maturity to compete with
the presidency banks, and the exchange banks. There was potential for many new banks as the
economy was growing under this circumstances many Indians came forward to set up banks and
many banks were set up at that time, and a number of them setup around that time continue to
survive and prosper even now like bank of India and corporation Bank, Indian Bank, bank of
Baroda, and Canada Bank.

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b. Growth and present status of Industry:By the 1960s the Indian banking industry has become an important to facilitate the
development of the Indian economy. At the same time, it has emerged a large employer, and a
debate has ensued about the possibility to nationalize the banking industry. Indira Gandhi then
the prime minister of India expressed the intention of the GOI in the national conference of all
India congress meeting in the paper entitled stray thoughts on bank nationalization
The paper was received with positive enthusiasm. Thereafter he move was swift and sudden, and
the GOI issued an ordinance and nationalized the 14 largest commercial banks with effect on
midnight of July 19, 1969. Jayapraksh Narayan. A national leader of India described the step as
masterstroke of political sagacity. Within two weeks of issue of ordinance the parliament
passed the banking companies (Acquisition and transfer of undertaking) Bill and it received the
presidential approval on 9th Aug 1969. A second dose of nationalization of 6 more commercial
banks followed in 1980. The stated reason for nationalization was to give the government more
control of credit delivery. With the second dose of nationalization, the GOI controlled around
91% of banking business of India. After this, until the 1990 s, the nationalize banks grew at a
pace of around 4% closer to the average growth rate of Indian economy.

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c. Future of Industry:A healthy banking system is essential for any economy striving to achieve good growth and yet
remain stable in an increasingly global business environment. The Indian banking system, with
one of the largest banking networks in the world, has witnessed a series of reforms over the past
few years like the deregulation of interest rates , dilution of government stake in public sector
banks(PSBs) , and the increased participation of private sector banks. The growth of the retail
financial services sector has been a key development on the market front. Indian banks(both
public and private) have not only been keep to tap the domestic market but also to compete
with global market place. New foreign banks have been equally keen to gain foothold in the
Indian market. The momentum in credit growth has been maintained during 2005-06 due to two
factors: the corporate sector has stepped up its demand for credit to fund its expansion plans;
there also have been a growth in retail banking. However, even as opportunity increase there is
some issues and challenges that Indian banks will have with f they are to emerge successful in
the medium to long term. This report discusses these issues and challenges both internal and
external challenges.

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Consolidation
Consolidation which has been over the counter over last year or so, is likely to gather momentum
in the coming years. Post April 2009, when the restrictions on operations of foreign banks will
go, the banking landscape is expected to change dramatically. Foreign banks which currently
account for 5% of total deposits and 8% of total advances, are devising new business models to
capture Indian market. Their full-fledged entry is expected to transform the business of banking
in many ways, which would be reflected in terms of greater depth of product. Depth in delivery
channels and efficiency in operations. Thus Indian banks have less than three years to
consolidation their position. Despite the stiff resistance from certain segments, consolidation
holds the key to future growth. This view is unpinned by the following:
Owing to greater scale and size, consolidation can help save costs and improve
operational efficiency
Banks will also have to explore different avenues for raising capital to meet norms under
Basel-II
Owing to diversified operations and credit profiles of merging banks, consolidation is
likely to serve as a risk-mitigation exercises as much as a growth engine.

Through there is no confirmation yet, speculative signal arriving from the market point to
the prospect of consolidation involving banks such as union bank of India, bank of India,
Dena bank, Bank of Baroda, bank of Patiala Punjab and Sindh bank Further the case of
strong banks has also gained ground. There is a case being made for mergers between
banks with a distinct geographical presence coming together to leverage their respective
strengths.

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PORTERS FIVE FORCES ANALYSIS

1. Threat of new Entrants. The average person cant come along and start up a business but
these are services, such as internet bill payment, on which entrepreneurs can capitalize.
Banks are fearful of being squeezed out of payments business, because it is good source of
fee-based revenue. Another trend that poses a threat is companies offering other financial
services. What would it take for an insurance company to start offering mortgage and loan
services? Not much. Also when analysing a regional bank, remember that the possibility of a
mega bank entering into market possess a real threat.
2. Power of buyers. The individual doesnt pose much of a threat to banking industry, but one
major factor affecting the power of buyer is relatively high switching costs. If a person has
mortgage, car loan, credit card, checking account and mutual funds with one particular bank,
it can be extremely tough for that person to switch to another bank. In an attempt to lure in
customers, banks try to lower the price of switching, but many people would still rather stick
with their current bank. On the other hand, large corporate clients have banks wrapped
around their little fingers. Financial institutions- by offering better exchange rates, more
services, and exposure to foreign capital markets- work extremely hard to get high margin
corporate clients.
3. Availability of substitutes. As you can probably imagine, they are plenty of substitutes in
banking industry. Banks offer a suite of services over and above taking deposits and lending
money, but whether it is insurance, mutual funds or fixed income securities, chances are
there in non-banking financial services company that can offer similar services. In the
lending side of business, banks are seeing competition rise from uncongenial companies,
sony, general motors and Microsoft all offer preferred financing to customers who buy big
ticket items. If car companies offering 0% financing, why would anyone want to get car loan
from the bank and pay 5-10% interest?

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4. Power of suppliers. The suppliers of capital might not pose a big threat, but the threat of
suppliers luring away human capital does. If a talented individual is working in a smaller
regional bank, there is the chance that person will be enticed away by bigger banks,
investments firm etc.
5. Competitive rivalry. The banking industry is highly competitive. The financial service
industry has been around for hundreds of years, and just around everyone who needs banking
services already has them. Because of this banks must attempt to lure clients away from the
competitor banks. They do this by offering lower financing, preferred rates and on
investment services. The banking sector is in a race to see who can offer both best and fastest
services but also causes banks to offer lower ROA. They can have incentive to take high risk
projects.

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KOTAK MAHINDRA BANK

VISION

THEIR BUISNESS

BRANCHLESS BANKING FACILITES OF BANK

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COMPANY PROFILE
Meaning of Kotak
K KNOWLEDGE AND COMPETANCE
O OFFERING NEW AND INNOVATIVE IDEAS
T TRANSPIRACY
A- APPROCHABLE
K KEEP IT SIMPLE
Established in 1984, the Kotak Mahindra group has long been one of Indias most reputed
financial organizations. In Feb 2003, Kotak Mahindra finance ltd. The groups flagship company
was given the license to carry on banking business by the Reserve bank of India (RBI). This
approval creates banking history since Kotak Mahindra finance ltd is first company to convert
into a bank. The license authorizing the bank to carry on banking business is obtained from the
RBI in tune with section 22 of banking regulation act 1949.
KMBL was promoted by Mr. Uday.S. Kotak, Kotak and company ltd and Mr. Sidney &
AA.Pinto under the name of Kotak capital management finance Ltd on 21st November 1985 and
obtained a certificate of commencement of business on 11th Feb 1986.
The bank customers have access to entire VISA network of 4500 ATMS in India and 800000
ATMS worldwide accepted in more than 56000 establishments across India and 10 million
worldwide. The customer also has access to over 800 ATMS with sharing arrangements with
other banks.

Year

Milestone

1985 Kotak Mahindra Finance Limited commences bill discounting business

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1987 Kotak Mahindra Finance Limited enters leasing and hire purchase business

1990 Starts the auto finance division for financing passenger cars

1991 Launches investment banking business

1992 Enters the funds syndication business

Commenced joint venture with Goldman Sachs Group Inc.


1995

Investment Banking division incorporated into a separate company - Kotak Mahindra


Capital Company
The auto finance business is hived off into a separate company - Kotak Mahindra Prime
Limited (formerly known as Kotak Mahindra Primus Limited).

1996
Kotak Mahindra takes a significant stake in Ford Credit Kotak Mahindra Limited, for
financing Ford vehicles.

1998

Launches mutual fund through Kotak Mahindra Asset Management Company


(KMAMC).

2000 Kotak Securities launches online broking business (now www.kotaksecurities.com).

2001

Launches insurance business, partners Old Mutual from South Africa to form Kotak
Mahindra Old Mutual Life Insurance Ltd.
Kotak Mahindra Finance Ltd. (KMFL), the group's flagship company, receives banking

2003 license from the Reserve Bank of India (RBI). With this, KMFL becomes the first nonbanking finance company to be converted into a commercial bank - Kotak Mahindra

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Bank Ltd.
2004 Enters alternate assets business with the launch of a private equity fund.
Kotak Mahindra Group realigns joint venture in Ford Credit; takes 100% ownership of
2005 Kotak Mahindra Prime (formerly known as Kotak Mahindra Primus Limited) and sells its
stake in Ford credit Mahindra to Ford.
2005 Launches a real estate fund

2006

Buys out Goldman Sachs' equity stake in Kotak Mahindra Capital Company and Kotak
Securities Ltd.

2008 Launched a Pension Fund under India's National Pension System (NPS)
Kotak Mahindra Bank Ltd. opens a representative office in Dubai
2009

Kotak Mahindra Bank Ltd. becomes anchor investor in Ahmedabad Commodities


Exchange (ACE)

2015 ING Vysya Bank has merged with Kotak Mahindra Bank with effect from April 1, 2015.

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VISION STATEMENT
THE GLOBAL INDIAN FINANCIAL SERVICE BRAND
Our customer will enjoy the benefits of dealing with a global Indian brand that best understands
their needs and delivers customized pragmatic solutions across multiple platforms.
We will be world class Indian financial services group. Our technology and best services will be
bench- marked along international lines while our understanding of customers will be uniquely
Indian. We will be more than a repository of our customers savings. We, the group will be
single window to every financial service in a customers universe.
THE MOST PREFFERD EMPLOYER IN FINANCIAL SERVICES
A culture of empowerment and a spirit of enterprise attract bright minds with an enterprenual
streak to join us and stay with us. Working with a home grown professionally managed
company, which has partnership with international leaders, gives our people perspective that is
universal and unique.
THE MOST TRUSTED FINANCIAL SERVICE COMPANY
We will create an ethos of trust across all our constituents. Adhering to high standard of
compliance and corporate governance will be integral part of business trust.
VALUE CREATION
Value creation other than size alone will be our business driver.

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BOARD OF DIRECTORS

Shankar Acharya

Chairman

C Jayaram

Joint Managing Director

S Mahendra Dev

Director

Amit Desai

Director

Asim Ghosh

Director

Mark Edwin Newman

Additional Director

Uday Kotak

Exec. Vice Chairman & Mang Dir

Deepak Gupta

Joint Managing Director

KEY GROUP COMPANIES AND THEIR BUISNESS

KOTAK MAHINDRA BANK


The Kotak Mahindra group flagship company, Kotak Mahindra Finance Ltd which are
established in 1985, was converted into bank Kotak Mahindra bank Ltd in March 2003
becoming the first Indian company to convert into bank. Its banking operations offer a central
platform for customer relationships across groups various businesses. The bank has presence in
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.
KMCCS core business area includes Equity Insurances, Merger Acquisition, and structured
Finance and Advisory services.

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KOTAK SECURITIES
Kotak securities limited are one the Indias largest brokerage and securities distribution houses.
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 franchises and coordinators. Kotak securities offers online and offline
services based on well researched expertise and financial products to non- institutional investors.
KOTAK MAHINDRA PRIME
Kotak Mahindra prime limited (KMP) (formally known as Kotak Mahindra primus limited) has
been formed with 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 finance to dealers in the automobile trade. KMP continues to be among the
leading car finance companies in India.
KOTAK MAHINDRA ASSEST MANAGEMENT COMAPNY
Kotak Mahindra asset management company (KMAMC), a subsidiary of Kotak Mahindra Bank
is the asset manager for Kotak Mahindra Mutual Fund (KMMF). KMMF funds in excess of Rs
20,800 crore and offers scheme 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 government
securities.
KOTAK MAHINDRA OLD MUTUAL LIFE INSURANCE LIMITED
Kotak Mahindra old mutual life insurance limited is joint venture between Kotak Mahindra Bank
Ltd. and old mutual plc. Kotak life insurance help customers to take important financial
decisions at every stage in life by offering them a wide ways of innovative life insurance
products to make them financially independent.

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MERGER WITH ING VYSYA BANK


In 2014, Kotak Bank acquired ING Vysya Bank for a deal valued
at 15000 crore (US$2.3 billion). With the merger, the total human resource count will jump to
almost 40,000 heads and the branch was expected to rise over 1200. Post the merger, ING Group
which controlled ING Vysya Bank will own 7% share in Kotak Mahindra Bank.
BANKING ACCOUNTS
There are 3 types of banking accounts: Savings Account
Current Account
Term Deposit
SAVINGS ACCOUNT
Choose from our range of savings accounts
KOTAK MAHINDRA BANK has got a variety of options of savings accounts to choose from
for its customers according to their convenience and requirement. These savings accounts offer
attractive returns along with personalized banking services at three convenient average quarterly
balances(AQB) levels of Rs 10,000 (KOTAK EDGE SAVINGS ACCOUNT), Rs 20,000
(KOTAK PRO SAVINGS ACCOUNT), 50,000 (KOTAK ACE SAVINGS ACCOUNT) and Rs
1,00,000 (KOTAK MAHINDRA PLATINA ACCOUNT) and we also have Junior account,
Nova account, Grand account and newly introduced Family account.

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KOTAK EDGE ACCOUNT

Features and benefits


1. Average Monthly Balance (AMB) of 10,000.
2. Earn up to 6% interest on your savings account balance.
3. Free access to all domestic VISA ATMs upto 5 transactions per month.
4. Classic debit card with enhanced daily purchase limit of Rs 1, 50,000 and daily ATM cash
withdrawal limit of Rs 50,000.
5. Free at par-cheque (upto 25 leaves per quarter).
6. Free phone banking, net banking and mobile banking.
7. Free NEFT (only through Net Banking).
8. Free IMPS.
9. Free cash withdrawals at Kotak bank ATMs.
10. Kotak active money converts savings account balance above a certain amount into Term
Deposits, so you can earn high rate of interest.

KOTAK PRO ACCOUNT


Features and benefits
1. Average Monthly Balance (AMB) of 20,000.
2. Earn up to 6% interest on your savings account balance.
3. Free access to all domestic VISA ATMs.
4. One NMC waived edge savings account for your family member.
5. Platinum International Chip debit card (Free for First year ) with enhanced daily purchase
limit of Rs 2,00,000 and daily ATM cash withdrawal limit of Rs. 50,000
6. Free at cash pick-up / delivery ( 5 calls per month)
7. Free at Instrumental pick-up / delivery ( 5 calls per month)
8. Free NEFT (through Net Banking).
9. Free cash withdrawals at Kotak bank ATMs
10. Free cash withdrawals at other domestic ATMs.
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11. Free Demand Drafts.


12. 50% Discount on first year Demat AMC
13. Kotak active money converts savings account balance above a certain amount into Term
Deposits, so you can earn high rate of interest.

KOTAK ACE ACCOUNT


Features and benefits
1. Average Monthly Balance (AMB) of 50,000.
2. Earn up to 6% interest on your savings account balance.
3. Extended debit card withdrawal limit of Rs 2 lakh per day through ATM/POS
4. Free add-on platinum international debit card.
5. Three NMC waved edge savings accounts for family members.
6. Platinum International Chip debit card with enhanced daily purchase limit of Rs 2,00,000 and
daily ATM cash withdrawal limit of Rs. 2,00,000
7. Free Demand Drafts (Unlimited at Kotak bank locations)
8. Free Home Banking
9. Free RTGS/NEFT/IMPS
10. No annual maintaince charges on your Demat account for the first year
11. Free outstation cheque collection.
12. Free multicity cheque-books (at par cheque books)
13. Avail a discount of 15% on locker rent.
14. Avail a discount of 25% on issuance of Best compliments card (Gift cards)
15. Free cash withdrawals at other domestic ATMs.
16. Free phone banking, net banking and mobile banking.
17. Kotak active money converts savings account balance above a certain amount into Term
Deposits, so you can earn high rate of interest

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KOTAK PLATINA ACCOUNT

Features and benefits


1. Average Monthly Balance (AMB) of 1, 00,000.
2. Earn up to 6% interest on your savings account balance.
3. Extended debit card withdrawal limit of Rs 2 lakh per day through ATM/POS
4. Free add-on platinum international debit card.
5. Three NMC waved edge savings accounts for family members.
6. Platinum International Chip debit card with enhanced daily purchase limit of Rs 2,00,000 and
daily ATM cash withdrawal limit of Rs. 2,00,000
7. Free Demand Drafts (Unlimited at Kotak bank locations)
8. Free Home Banking upto 10 calls per month.
9. Free RTGS/NEFT/IMPS
10. No annual maintaince charges on your Demat account for the first year
11. Free outstation cheque collection.
12. Free multicity cheque-books (at par cheque books)
13. Avail a discount of 25% on locker rent.
14. Avail a discount of 25% on issuance of Best compliments card (Gift cards)
15. Free cash withdrawals at other domestic ATMs.
16. Free phone banking, net banking and mobile banking.
17. Kotak active money converts savings account balance above a certain amount into Term
Deposits, so you can earn high rate of interest.

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KOTAK KIDS ACCOUNT

Features and benefits


1. Earn up to 6% interest p.a. on junior and Guardian savings account balance.
2. Get rewarded for saving regularly with our introducer offer.
3. NMC waived Junior Account available as a part of bundled offering.
4. Personalised junior debit card.
5. Exclusive discounts and privileges across brands for kids.

KOTAK JIFI SAVER ACCOUNT

Features and benefits


1. Earn up to 6% interest p.a. on junior and Guardian savings account balance.
2. Free JIFI platinum chip debit card for first year
3. Loyality club- whether you share or transact, rewards are guaranteed
4. Earn extra transaction points for all purchase transactions done via Jifi platinum debit card on
kotakrewards.com
5. Hastagbanking-Mobile DTH recharge, account updates, cheque book request and many more
account activities just a tweet away.
6. Keep a track of expenses with a Kotak money watch platinum subscription for 1 year.
7. Free bureau score- get your credit bureau score at one click and avail exciting offers or
lending and transaction products.
8. Kotak active money converts savings account balance above a certain amount into Term
Deposits, so you can earn high rate of interest.
9. Refer friends& get rewarded
10. No charges for host of online transactions.
11. Average Monthly Balance (AMB) of 10,000.

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KOTAK NOVA ACCOUNT


Features and benefits
1. Average Monthly Balance (AMB) of 5,000.
2. Earn up to 6% interest on your savings account balance.
3. Free access to all domestic VISA ATMs upto 5 transactions per month.
4. Classic debit card with enhanced daily purchase limit of Rs 1, 50,000 and daily ATM cash
withdrawal limit of Rs 50,000.
5. Free at par-cheque (upto 25 leaves per quarter).
6. Free phone banking, net banking and mobile banking.
7. Free NEFT (only through Net Banking).
8. Free IMPS.
9. Free cash withdrawals at Kotak bank ATMs.
10. Kotak active money converts savings account balance above a certain amount into Term
Deposits, so you can earn high rate of interest.

KOTAK SILK ACCOUNT (SPECIALLY FOR WOMEN

Features and benefits


1. Get rewards on Kotak silk debit card spends- cash back or free movie tickets.
2. Financial privileges- discount on locker rentals, 50% discounts for best compliments card
assurances fee. Avail NMC waiver in your kids junior account (NOVA) through linked RD
or SIP.
3. Hassle- free bill payments: bill pay facility: use our bill pay facility for automatic payments
of your bills through your bank accounts.
4. Safer online transactions: generate a virtual card for online transactions with Kotak gold
netc@card facility.
5. Wealth statement: this facility give you updates of your saving account, current account,
Term Deposits, Demat account and mutual funds, in all single account statements
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6. Travel cashless: use Kotak Mahindra Banks silk debit card and get special offers, privileges,
lifestyle benefits and much more.
7. Home banking service: enjoy services like cash pick-up, cash delivery, cheque/draft delivery,
etc. without stepping out of your home. This service is available in select cities.

KOTAK GRAND SAVING ACCOUNT (55+)

Features and benefits


1. Up to 6% interest P.A
2. Cash back up to Rs 4500
3. Priority service & first aid card
4. Customized cash delivery
5. SMS to receive a call back
6. SMS alert for 15G/H deposition of the quarter beginning and on new FDS Booked.
7. Health care for IHO.
8. Kotak active money converts savings account balance above a certain amount into Term
Deposits, so you can earn high rate of interest.

Page 31

KOTAK FAMILY SAVING ACCOUNT (NEW)

Features and benefits


1. Up to 6% interest P.A
2. Kotak active money converts savings account balance above a certain amount into Term
Deposits, so you can earn high rate of interest.
3. Option of maintaining balance in one account or spread across accounts.
4. Dedicated relationship manager for the family.

Page 32

CURRENT ACCOUNT

EDGE Current account

Features and benefits


1. Average Quarterly Balance (AMB) of Rs 25,000.
2. Free unlimited Demand Drafts payable at Kotak Bank branch locations (up to 25 per
month)
3. Free cheque payment and collection anywhere in India.
4. Free cheque collection through speed clearing.
5. Free home banking service cash/ Cheque pick-up and delivery, at your call.
6. Free beat service daily visit to home or office for cheque pickup and deposit in your
account.
7. Free mulity city cheque books at par cheque books (upto 1 per month)
8. Free cheque deposits and withdrawal at home branch locations.
9. Free cash deposit at non branch locations up to Rs 50,000/- per month.
10. Free cash withdrawal at non branch locations up to Rs 25000/- per month.
11. Dedicated Relationship Manager who will be a single point of contact at the bank.
12. Free NEFT and RTGS at branch and net banking
13. Free Net banking, Mobile banking, SMS banking and Phone banking.
14. Free alerts through E-mail and SMS (charges apply)
15. Business class gold debit card with enhanced daily purchase limit of Rs 1, 75,000 and
daily ATM cash withdrawal limit of Rs 50,000.
16. Kotak credit card access unsecured overdraft facility up to Rs 15 lac for business
emergencies.
17. Cash management services available.
18. Forex live, an internet based foreign exchange trading platform that enables buying and
selling foreign currency for import/export transactions and other remittances.
19. Payment Gateway solution for quick receipt of payments from your customers.
20. Better Forex rates and efficient trade services.
Page 33

21. Kotak circle- group multiple current/savings account together. Get flexibility to maintain
minimum group AQB balance in any one or more accounts
22. Kotak active money converts savings account balance above a certain amount into Term
Deposits, so you can earn high rate of interest.

PRO Current account


Features and benefits
1. Average Quarterly Balance (AMB) of Rs 50,000.
2. Free unlimited Demand Drafts payable at Kotak Bank branch locations (up to 50 per month)
3. Free cheque payment and collection anywhere in India.
4. Free cheque collection through speed clearing.
5. Free home banking service cash/ Cheque pick-up and delivery, at your call.
6. Free beat service daily visit to home or office for cheque pickup and deposit in your
account.
7. Free mulity city cheque books at par cheque books
8.

Free cheque deposits and withdrawal at home branch locations.

9.

Free cash deposit at non branch locations up to Rs 100,000/- per month.

10. Free cash withdrawal at non branch locations up to Rs 50,000/- per month.
11. Dedicated Relationship Manager who will be a single point of contact at the bank.
12. Free NEFT and RTGS at branch and net banking
13. Free Net banking, Mobile banking, SMS banking and Phone banking.
14. Free alerts through E-mail and SMS (charges apply)
15. Business class gold debit card with enhanced daily purchase limit of Rs 1, 75,000 and daily
ATM cash withdrawal limit of Rs 50,000.
16. Kotak credit card access unsecured overdraft facility up to Rs 15 lac for business
emergencies.
17. Cash management services available.
Page 34

18. Forex live, an internet based foreign exchange trading platform that enables buying and
selling foreign currency for import/export transactions and other remittances.
19. Payment Gateway solution for quick receipt of payments from your customers.
20. Better Forex rates and efficient trade services.
21. Kotak circle- group multiple current/savings account together. Get flexibility to maintain
minimum group AQB balance in any one or more accounts
22. Kotak active money converts savings account balance above a certain amount into Term
Deposits, so you can earn high rate of interest.
23. Point of sales solution (POS) standalone-alone POS terminals / wireless POS TerminalsGPRS.

ELITE Current account


Features and benefits
1. Average Quarterly Balance (AMB) of Rs 100,000
2. Free unlimited Demand Drafts payable at Kotak Bank branch locations (up to 100 per month)
3. Free Demand Drafts upto 10 lacs per month payable at non-Kotak bank branch locations.
4. Free cheque payment and collection anywhere in India.
5. Free cheque collection through speed clearing.
6. Free home banking service cash/ Cheque pick-up and delivery, at your call.
7. Free beat service daily visit to home or office for cheque pickup and deposit in your
account.
8. Free access to all VISA ATMs with your Kotak Business power Gold Debit Card.
9. Free mulity city cheque books at par cheque books.
10. Free outward cheque returns (upto 5 instruments per month).
11. Free cheque deposits and withdrawal at home branch locations.
12. Free cash deposit at non branch locations up to Rs 3 lac per month.
13. Free cash withdrawal at non branch locations up to Rs 1 lac per month.
14. Dedicated Relationship Manager who will be a single point of contact at the bank.
15. Free NEFT and RTGS at branch and net banking
Page 35

16. Free Net banking, Mobile banking, SMS banking and Phone banking.
17. Free alerts through E-mail and SMS (charges apply)
18. Business class gold debit card with enhanced daily purchase limit of Rs 1, 75,000 and daily
ATM cash withdrawal limit of Rs 50,000.
19. Kotak credit card access unsecured overdraft facility up to Rs 15 lac for business
emergencies.
20. Cash management services available.
21. Forex live, an internet based foreign exchange trading platform that enables buying and
selling foreign currency for import/export transactions and other remittances.
22. Payment Gateway solution for quick receipt of payments from your customers.
23. Better Forex rates and efficient trade services.
24. Kotak circle- group multiple current/savings account together. Get flexibility to maintain
minimum group AQB balance in any one or more accounts
22. Kotak active money converts savings account balance above a certain

amount into Term

Deposits, so you can earn high rate of interest.

Kotak also provides Astra 05, Astra 10, Astra 15, Global Trade current account, Trader
pro current account, Trader classic current account.

Page 36

TERM DEPOSIT

TAX SAVING DEPOSIT

REGULAR TERM DEPOSITS

Page 37

SENIOR CITIZEN DEPOSITS

RECURRING DEPOSIT

Page 38

BRANCHLESS BANKING PRODUCTS & FACILITIES OF KOTAK MAHINDRA


BANK
At KOTAK MAHINDRA BANK BRANCHLESS BANKING IS CONVINENCE
BANKING. In todays day and age time is money. All of us work hard and have busy schedule.
Doing our banking should be easy, quick and convenient and should not add to our worries. At
Kotak Mahindra bank they realized this has wide range of value added products and services to
make our money work for us. These, coupled with the highest standards of customers values and
make customer life easier and simpler.
Following are various Branchless Banking facilities carried out by Kotak Bank:-1.Net banking
Helps to view details across accounts. Term deposits and Demat Accounts- 24x7 Kotak
Mahindra banks net banking services brings us the time world of instant banking. It is quick and
easy available to us 24x7 and it is absolutely free.
Key features:

Page 39

NET BANKING- what all you can do online?


Net Banking gives us a host of services, giving us complete control of your 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 via RBIs NEFT or RTGS system

Place request for a cheque book, Debit Card PIN, payment Gateway registration and lots
more.

Pay your utility Bills on Kotak bill pay.

Safe online shopping with Kotak Netca@d

View securities available for Demat

View current Mutual Fund holdings

Buy and redeem Mutual Funds online

2. Kotak payment Gateway


Instant, convenient and secure way of shopping making payments online. Kotak Payment
Gateway enables us to shop online at over 5000 websites, make utility bill payment across more
than 60 companies and 42 cities, following are some of the websites through which you cans
shop online.

www.Bigcinemas.com

www.Airtel.com

www.Yatra.com

www.vodafone.in

Kotak payment gateway is an internet based facility using which are can pay online merchants
by debiting your select bank account. We can pay insurance premiums, magazines subscriptions,
make donations to charitable and religious institutions and transfer money to Kotak securities for
margin money, settlement transfer or IPO funding.

Online shopping
Page 40

This service enables us to make purchases across various online shopping sites offering gifts,
flowers, airline tickets, exclusive designer wear, jewellery, latest electronic gadgets/household
items, subscriptions to books / periodicals registration to matrimonial, educational sites or
astrology services and much more.

Online Trading

This service enables us to transfer money instantly to your account with Kotak securities, for
funding your Margin money or funding our IPO account. An account with Kotak securities
enables us to buy / sell securities online. This gives us the power of anywhere, anytime trading.
3. Mobile Banking
Experience new- age Banking. Its all about convenience banking on our mobile phone. Now, we
can experience the benefits anywhere and anytime, without the need for a computer. All this
convenience comes to us in a secure and user friendly application for phones and tabs on the is
and android platform.

Page 41

MOBILE BANKING FEATURES


a. Banking services

b. Credit card

view summary of your credit card.

Pay your credit card bills.

View past bill statemnts

View unbilled transactions

Balance transfer

Convert transactions to EMI

Request add on card

Set-up auto debit for bill payment

Report lost/ damaged card.

Regenerate debit card pin

Register for e-statement of your debit card.

c. Bill Pay

Register for bill pay using Add biller

Pay due bills

Make instant payments to your registered billers.


Page 42

Set up auto-pay to make payment automatically using manage auto pay.

Mobile recharge

Browse mobile tariffs special plans

Repeat past mobile recharges

DTH recharge

Repeat past DTH recharges.

d. My Kotak

Select widgets to personalize your home page and get all the information in one place.

Option to set MPIN off and view certain information without logging in

View alerts & Notifications

Get one view of all accounts.

Get latest and existing deals on Kotak offers App

View social and transactions points on JIFI account.

e. Service Requests

Request for bank account statement

Request for cheque book

Status enquiry of your cheque

Stop cheque request

Request for debit card PIN

Report loss of card

Switch primary account of your debit card.

Stop cheque payment.

f. General

We can change our MPIN.

View our profile

List of frequent ask questions

Page 43

Kotak customer contact center numbers under contact us and a call be made with simple
selection/touch.

Links to follow kotak mahindra bank on social media sites (Fcebook, You-tube,twitter etc)

5. Unstructured supplementary service data ( USSD)


It helps to take command of our bank account from our GSM mobile phone even without a
GPRS connection. Experience the benefits of banking on the move using USSD.
6. SMS Banking
Carry your bank on your phone Kotak Mahindra banks SMS Banking service enables us to
access our bank account, investment account and Demat account on your mobile phone. We
get latest updates on our account balance, salary credits, large credits, large credits, holding
values and much more on your mobile anytime, anywhere. It is quick and easy, available to
you 24x7 and its absolutely free.
Key features

We can access our bank account on mobile phone.

We can get latest updates of our account balance, salary credits and more.

7. Alerts
We can get alerts on our mobile or by email for events that we would like to keep track of we
can subscribe for automatic updates for our account either on our mobile phone or email
address. These alerts are sent on occurrence of particular transaction. For example, if the
balance in your account falls below the average quarterly balance, we get more informed
through ALERTS.
Key features

Get automatic updates of your account on either our mobile or email.

Get immediate update on large debit or large credit in to our account.

List of Alerts
Given below are the Alerts that Kotak offers:

Large debit alert

Large credit alert


Page 44

Balance below Average Quarterly Balance Alert

Periodic Bank Account Balance- Daily/weekly (Sent every Monday)

Standing Instructions (SI) failure Alerts.

8. Phone banking
Kotak Bank 24hr customer service centre is at our service. Our nearest Kotak Mahindra Bank
Branch is on your phone. They have a 24-hour customer center to offer us personalized
service round the clock. Just pick the phone and please call their centre. Whether it is
something as urgent as stop payment, cash or cheque pickup or we simply want to know our
balance to give the call. Their toll free number gives you access to our account, from
anywhereanytime and whats more, this facility comes to us absolutely free of cost. The
aim is to save time of consumers as they do not have to visit the branch every now & then for
such tasks, and facilities great ease&conviennce.
Key features

Quick and easy access from anywhere

PIN based security

Customer care officers available 24x7

9. Cards
Simple transparent Powerful secure.
Credit cards

NRI Royale Card, Delight platinum card, fortune Gold card, corporate card etc.

Debit Cards

Business class Gold debit card classic Debit card platinum debit card

Best compliments card


It lets our loved ones choose their own gift or shop or enjoy at any place that accepts Visa cards,
be it a shopping mall, a restaurant or a multiplex.
Kotak Netca@d
Page 45

Kotak Netca@d is a single use limited validity online card created by us, from our bank
accounts, at the time of online shopping and cannot be used after your first payment. It combines
the benefit of using your bank account and the universal acceptance of VISA Card in a highly
secure environment. It is one-time credit card. It is VIRTUAL CREDIT CARD. It is only
offered by Kotak Mahindra Bank.
Kotak world Travel card
Kotak Mahindra bank brings us the Kotak Travel Card, a prepaid travel card that allows us to
forget the hassles of carrying the foreign currency and Travellers cheque. Now we can be free of
inconvenience of encashment, potential of misplacement/ theft issues of universal acceptability.
10. ATM network
Their strategically located and constantly growing ATM network brings the bank within your
easy reach. The state of art touch screen Kotak Mahindra Bank are part of the visa/plus and
card net ATM network. That means you can withdrew cash from their ATM network with
any international and domestic Visa/ visa Electronic/plus credit cards/Debit cards.
Key features

Access your account anytime anywhere

State of art touch screen ATMs

Affiliated to the VISA network.

Access any ATM in the country absolutely free.

Services available

24 hour access to cash

Transfer funds between accounts

View account balances and Mini Statement

Pin change option

Page 46

11. Cash deposit Machine


Cash Deposit Machine (CDM) is self-service terminal that enables us to deposit cash without
any manual intervention of the branch officer. Now no need to fill deposit slips and stand in
long ques at each counter. Deposit cash through simple and fast CDM installed in branch and
we get instant credit in your account. To use CDM, we need to have Kotak bank debit card or
know the Kotak Banks account number in which we wish to deposit the money.
Key features

Instant credit in CASA account.

Immediate receipt

No need to fill cash deposit slips

No need to stand in long ques.

No need to sort and arrange cash denomination wise

12. Cheque deposit kiosk


Cheque deposit kiosk (CDK) is a self-service terminal that enables us to deposit cheque without
any manual intervention of the branch officer. Now there is no need for us to fill deposit slips
and stand in long ques at the counter. We can deposit our cheque through the simple and fast
CDK installed in the branch. To use the CDK, we need to have Kotak Banks Account number in
which you deposit the cheque.
Key features

Immediate receipt

No need to fill cheque Deposit slips

No need to stand in long ques.

Page 47

13. ASBA:(APPLICATION SUPPOTED BY BLOCK ACCOUNT)


Investing in IPO/FPO/right issue is now simple and convinent through the new this facility.
Key features

Easy to apply in IPO/FPO/Right issue over phone/Net Banking

Enjoyed continued returns on blocked amount

Place multiple bids

Option to revise/withdraw the bid

ASBA facility can be availed by High Net-worth Individuals, corporate, institutional investors,
promoters etc. along with retail investors
14. E-tax
VAT, TDS, CST can be paid online, on monthly basis.

15. OTHERS
Demat services, funds transfer between own accounts. Third party transfers to accounts
maintained at any branch of KOTAK. Group transfers to accounts with other Banks, online
standing instructions for periodical transfer for the above, request for issue of Demand Draft,
Request for opening of new accounts, request of closure of loan Accounts, home insurance,
health insurance, Travel insurance, Motor insurance card protection plan.

Page 48

LITERATURE REVIEW

Page 49

LITREATURE REVIEW
In the Branchless banking guidelines of Pakistan (2007), Branchless Banking has been defined as
a significantly cheaper alternative to conventional branch-based banking that allows financial
institutions and their commercial actors to offer financial services outside tradional bank
premises by using delivery channels like retail agents, mobile phones etc
Wikipedia (2009) defined Branchless Banking as a distribution channel strategy used for
delivering financial services without relying on bank branches. Also Websters dictionary (2003)
defined Branchless Banking as an on-line only bank with service representatives available by
phones or internet for extended hours.
Branchless Banking may not necessarily be an alternative to branch based banking system. It can
be either serve as a complement to an existing branch based system or it could be channel that is
not in any way related to bank branch. In Nigeria branchless banking only operates within
existing branch networks. Presently there is no form of Branchless Banking entirely independent
of a branch
For literature reviewed, the major reason for the introduction of Branchless Banking in many
nations of the world is that, it is seen as a way of reaching the unbanked. The unbanked can
simply be described as those individuals that do not have form of account with a bank. Anderson
(2007) defined the unbanked as diverse group of individuals who remain outside the banking
mainstream for many reasons.
Gautam (2008) stated the Africa has about 230 million unbanked household. In the same vein,
Ladipo (2008) reveled in the survey carried out by EFINA that cuts across all the states of
Nigeria over 5 year period and the sample based on sample based on national integrated survey
of households, that 74% (which is equivalent to 64 million people) of the adult population in the
country have never been banked. The study revealed further that about 40 million other adults
have left the banking system. Also 86% of the rural populations are currently unbanked.
South-Africa the largest and richest economy in the region with a quarter of Africas GDP, has a
well-developed financial sector, yet another 40% of south Africans have bank accounts. Gautam
(2008). In Mexico less than 25% Mexicans have bank accounts.
Page 50

The issue of having unbanked individuals is not limited to the developed or developing nations.
Even in developed countries, many people still remained unbanked. Anderson (2007) stated that
there are about two million unbanked families in United Nations.
Different authors have citied reasons why people still remain unbanked despite the trend in
development across the globe. Simeon, Pedro, Enrique and Siddharth (2008) conducted a similar
survey on 5,000 households in Mexico. This was done by comparing savings accounts in formal
financial institutions to their neighbor who do not have such accounts. The result of study shows
that education levels and wealth play a major role in determining who is banked.
The study of Ladipo (2008) also revealed that 98% of those with no formal education in Nigeria
are unbanked and 86% of those in 18-24 age brackets are unbanked. The findings further
revealed that most of the rural people tend to be mainly or almost entirely unbanked whilst their
wealthier urban people tend to be banked. In the same study, it has been observed that the 48%
of unbanked population do not have enough money and this makes it difficult for them to possess
a bank account.
Chong (2008) also stated that low income earners see themselves as incredible for bank
accounts. According to Anderson (2007), people remain unbanked in the U.S due to reasons
which include: lack of understanding about the US or in the home countries, lack of
documentation needed to open a bank account. Anderson (2007) further noted that the common
groups of unbanked people in the U.S. include low income individuals, families who are less
educated, female-headed households, and families living in rural areas.
Many of unbanked people who are usually low people are less exposed to technology (Coetzee,
2005). In India, vinayak (2007) cited an Indian lady who claimed that she has never entered a
bank in her life due to fact that nearest branch was 8km far away from the village.
The benefits of branchless banking cannot be overphrasized. Through all these delivery channels,
banks will increase their outreach to the unbanked, provision of banking services will not be
limited to working hours and week days, long cue that are rampant in banking halls will be
reduced, loss of customer due to relocation of the customers from one area to other will be
averted. Many other benefits can be derived from Branchless Banking.

Page 51

OBJECTIVES

A study on customers satisfaction on Branchless Banking facility of Kotak Mahindra


bank.

To study the reason for limited use of Branchless Banking services.

To create awareness among customers towards Branchless Banking services.

To study and to make Branchless banking users aware various e-banking risks like
phishing, identity theft, Frauds of plastic Money, Trojan, and Malware etc.

Page 52

RESEARCH METHODOLOGY

Methodology in the applied sense refers to various methods used by the researcher right from
data collection and various techniques used for the same for interpretation and inference.
Methods and techniques are often used synonymously in research literature.

Research

methodology is what must be done, how it will be done, what data will be needed, what data
gathering will be employed, how sources of data will be selected and how the data will be
analyzed and conclusions reached. When we talk of research methodology we not only talk of
the research methods but also consider the logic behind the methods we use in the context of our
research study and explain why we are using a particular method or technique and why we are
not using others so that research results are capable of being evaluated either by the researcher
himself or by others.

Page 53

DESCRIPTIVE METHOD

Descriptive studies attempts to determine the frequency with which something occurs or the
relationship between two phenomena. In general as the data obtained by descriptive research is
put to much statistical analysis it is essential to determine the list of variable to be investigated
and state how these variables to be measured.

POPULATION

A population can be defined as including all people of items with the characteristics one
wishes to understand. We have selected the users of Kotak Mahindra bank of Faridabad
city

SAMPLE FRAME

For our research purpose we have selected respondents who are phone banking, net
banking and Sms banking banking users of Kotak Mahindra bank.

RESEARCH TOOL
Questionnaire consisting of closed ended questions. A form containing set of questions will be
submitted to the respondents to gain statistical information .unstuructured questions in which
possible answers are not suggested , and the respondents chooses from the given options.

SAMPLE SIZE
The sample size of research is 100.

Page 54

SAMPLING TECHNIQUE
Simple Random Technique.

SAMPLE UNIT
The customers of Kotak Mahindra bank.

COLLECTION OF DATA

Primary data: we would collect data through questionnaire

Secondary data: we would collect data from research papers, internet and intranet of
Kotak Mahindra bank

BENEFICIARIES
All the branchless banking customers of Kotak whether they are E-banking users or Sms banking
users & society at large are the beneficiaries as will be aware of PROS&CONS of branchless
banking.
SCOPE
The scope will be wide as we can come across the benefits as well as various risks & threats of
branchless banking. To gain accurate results for the study, 100 people are given questionnaire to
know HOW MUCH THEY ARE SATISFIED WITH BRANCHLESS BANKING FACILITIES
OF KOTAK MAHINDRA BANK. The scope of study was limited to the Kotak Mahindra bank
and Faridabad city.

Page 55

DATA ANALYSIS

Page 56

Q1. ARE YOU USING BRANCHLESS BANKING SERVICES OF

KOTAK

MAHINDRA BANK?

70
60%
60
50
40%
40
30
20

NO OF RESPONDENTS

10
0
YES

Fig 1.1

NO

BASIS

NO OF RESPONDENTS

% OF RESPONDENTS

YES

60

60%

NO

40

40%

INTERPRETATION:
As a researcher Branchless Banking facilities provided by the bank is not in the booming phase
on an average 60% of customers are utilizing Branchless Banking facilities banks should have to
focus to spread awareness regarding this for towards the customers through different
communication media as we have got the finding only 60% of customers are using branchless
banking facilities and need 40% are not using this facilities.

Page 57

Q2. AGE

% OF RESPONDENTS
2%
8%
50%
40%

18-25
25-35
35-50
50>ABOVE

Fig 2.1

BASIS

AGE LIMIT

% OF RESPONDENTS

1.

18-25

50%

2.

25-35

40%

3.

35-50

8%

4.

50>ABOVE

2%

INTERPRETATION:As per survey we came to know that respondents in age group of 18-25 and 25-35 are more
active in digital banking, whereas the responding comprising of 35-50 and above 50 are not
comfortable with branchless banking as they prefer to go to bank.

Page 58

Q3. GENDER

% OF RESPONDENTS

30%
MALE
FEMALE
70%

Fig 3.1

BASIS

% OF RESPONDENTS

MALE

70%

FEMALE

30%

INTERPRETATION:From the response of the individuals it was observed that the number of male users is more than
female users with response to the use of Branchless Banking services of the bank. One of the
reasons could be that men are into commercial use of Branchless banking Products than the
females. It could be possible that there may be a limited use of the Branchless Banking services
in case of females.

Page 59

Q4. OCCUPATION

% OF RESPONDENTS
2% 8%
STUDENT
40%

SALARIED
BUISNESS
50%

OTHERS

Fig 4.1

OCCUPATION

% OF RESPONDENTS

STUDENT

8%

SALARIED

50%

BUSINESS

40%

OTHERS

2%

INTERPRETATION:In this scenario as per the analysis by researcher conclude that the salaried class people are
making more use of Branchless Banking.

Page 60

Q5. ANNUAL INCOME

% OF RESPONDENTS
5% 10%
5%

0-1,00,000
1,00,000-2,50,000
2,50,000-5,00,000

50%

30%

5,00,000-8,00,000
8,00,000-ABOVE

Fig 5.1

ANNUAL INCOME

% OF RESPNDENTS

0-1,00,000

10%

1,00,000-2,50,000

5%

2,50,000-5,00,000

30%

5,00,000-8,00,000

50%

8,00,000-ABOVE

5%

INTERPRETATION:The above figures shows that the people comprising of 5, 00,000-8, 00,000 annual income are
more using Branchless Banking services compare to all other income levels people.

Page 61

Q6. WHICH OF THE FOLLOWING PRODUCTS DO YOU USE?

% OF RESPONDENTS
5%

45%

55%

CURRENT A/C
SAVINGS A/C
BOTH

Fig 6.1

PRODUCT

% OF RESPONDENTS

CURRENT A/C

55%

SAVINGS A/C

45%

BOTH

5%

INTERPRETATION:From the above figure we concludes that no of current account user are much more as compared
to savings account users and only 5% respondents out of 100 respondents are using both the
current and savings account service.

Page 62

Q7. HOW DID YOU COME TO KNOW ABOUT THE BRANCHLESS BANKING
SERVICES OF THE BANK?

% OF RESPONDENTS
FROM BANK OFFICIALS
ADVERTISENT IN PRINT
MEDIA

38%
50%

FAMILY MEMBERS
FRIENDS

2%
5%

OTHER SOURCES

5%

Fig 7.1

BASIS

% OF RESPONDENTS

FROM BANK OFFICIALS

50%

ADVERTISENT IN PRINT MEDIA

5%

FAMILY MEMBERS

5%

FRIENDS

2%

OTHER SOURCES

38%

INTERPRETATION:In scenario as per the analysis by researcher conclude that the bank official user of Branchless
Banking is more increasing.

Page 63

Q8. PURPOSE OF USING BRANCHLESS BANKING SERVICES?

% OF RESPONDENTS
BALANCE INQUIRY

FUND TRANSFER

8%

10%

32%
PAY BILLS

20%
20%

10%

BALANCE INQUIRY,PAY
BILLS,FUND TRANSFER
BALANCE INQUIRY,PAY
BILLS,FUND TRANSFER,PAY
TAXES
NONE OF THE ABOVE

Fig 8.1

BASIS

% OF RESPONDENTS

BALANCE INQUIRY

32%

FUND TRANSFER

20%

PAY BILLS

10%

BALANCE INQUIRY,PAY BILLS,FUND

20%

TRANSFER
BALANCE INQUIRY,PAY BILLS,FUND

10%

TRANSFER,PAY TAXES
NONE OF THE ABOVE

8%

Page 64

INTERPRETATION:Branchless Banking services in India for the customers are introductory phase customers are
using Branchless Banking services mainly for Balance enquiry (32%) and Fund transfers.
Customers are more and more conservative regarding banking transactions.

Q9. TYPE OF TRANSFERS DO YOU EXECUTE THROUGH BRANCHLESS


BANKING?

% OF RESPONDENTS

WITHIN YOUR KOTAK A/C


TO SOMEONE ELSE KOTAK A/C
RTGS
NEFT

29%

30%

IMPS
8%
10%
2%

4%

4%
4%

1%

2%

1%
3%

2%

WITHIN KOTAK A/C TO


SOMEONE ELSE KOTAK A/C
NEFT
WITHIN YOUR KOTAK A/C
RTGS,NEFT
TO SOMEONE ELSE KOTAK A/C
NEFT
TO SOMEONE ELSE KOTAK A/C
RTGS,NEFT
WITHIN KOTAK A/C TO
SOMEONE ELSE KOTAK A/C
RTGS,NEFT

Fig 9.1

Page 65

BASIS

% OF RESPONDENTS

WITHIN YOUR KOTAK A/C

29%

TO SOMEONE ELSE KOTAK A/C

4%

RTGS

4%

NEFT

2%

IMPS

1%

WITHIN KOTAK A/C TO SOMEONE

3%

ELSE KOTAK A/C NEFT


WITHIN YOUR KOTAK A/C RTGS,NEFT

2%

TO SOMEONE ELSE KOTAK A/C NEFT

4%

TO SOMEONE ELSE KOTAK A/C

10%

RTGS,NEFT
WITHIN KOTAK A/C TO SOMEONE

1%

ELSE KOTAK A/C RTGS,NEFT


RTGS,NEFT,DD

2%

WITHIN YOUR KOTAK A/C DD

8%

NONE

30%

INTERPRETATION:As per research customers are not prefer less transacting through Branchless Banking services
except doing transactions within the bank and customers prefer more to go by manual process.

Page 66

Q10. TYPE OF BILL PAYING THROUGH BRANCLESS BANKING?

% OF RESPONDENTS

22%

10%

8%
UTILITY PAYMENTS
INSURANCE PREMIUMS
CREDIT CARD

60%

ALL OF ABOVE

Fig 10.1

BASIS

% OF RESPONDENTS

UTILITY PAYMENTS

10%

INSURANCE PREMIUMS

8%

CREDIT CARD

60%

ALL OF ABOVE

22%

INTERPRETATION:From the above figure we conclude that Branchless Banking is mostly used by respondents for
credit card purchase (60%) in comparison to utility payments(10%), insurance premiums (8%).

Page 67

Q11. DID YOU USE ASBA FACILITY FOR ONLINE IPO APPLICATION THROUGH
E- BANKING?

% OF RESPONDENTS
22%

10%

YES
NO
NONE

68%

Fig 11.1

BASIS

% OF RESPONDENTS

YES

10%

NO

68%

NONE

22%

INTERPRETATION:As depletion in equity market and crises for same have motivated customer for making invest in
equity market. Customers are not aware and educated regarding ASBA facility for online IPO
application so as bank they should have to focus on ASBA in group of customers in equity
market at growing phase in current economy of India.

Page 68

Q12. HOW OFTEN YOU VISIT ATM?

% OF RESPONDENTS
4%

10%

10%

DAILY BASIS
ONCE IN WEEK
ONCE IN MONTH
NONE OF THE ABOVE
56%

Fig 12.1

BASIS

% OF RESPONDENTS

DAILY BASIS

10%

ONCE IN WEEK

56%

ONCE IN MONTH

10%

NONE OF THE ABOVE

4%

INTERPRETATION:The above figures shows that the % of respondents is higher in case of usage of ATM card once
in week (56%) in comparison to usage on monthly basis (10%) and daily basis (10%)

Page 69

Q13. HAVE YOU MADE BILL PAYMENTS THROUGH BILL PAY WHICH IS
AVILABLE IN KOTAK E-BANKING?

% OF RESPONDENTS
4%
INSTANT PAY
43%

53%

AUTO PAY
NONE

Fig 13.1

BASIS

% OF RESPONDENTS

INSTANT PAY

53%

AUTO PAY

43%

NONE

4%

INTERPRETATION:More than 50% customers who are making use of E-Banking mainly using bill payments through
e-banking only because of high convenience of the customers this type of customer base is from
metro city and urban city only to cut cost of time.

Page 70

Q14. KOTAK BANK APP IS EASY TO ACCESS?

2%

40%

AGREE
STRONGLY AGREE
NEUTRAL

58%

Fig 14.1

BASIS

% OF RESPONDENTS

AGREE

40%

STRONGLY AGREE

58%

NEUTRAL

2%

INTERPRETATION:The above figures clearly show that the people who are using Kotak app for e-banking are
satisfied with the services and finding it easy to access.

Page 71

Q16. E-BANKING TRANSACTIONS ARE SECURED?

% OF RESPONDENTS

17%

20%
AGREE
STRONGLY AGREE
NEUTRAL
63%

Fig 16.1

BASIS

% OF RESPONDENTS

AGREE

20%

STRONGLY AGREE

63%

NEUTRAL

17%

INTERPRETATION:From the above survey it is clear that the respondents are secured on doing transactions online
about 63% of respondents are feels security in doing transactions online as compared to 37% of
agreed and neutral respondents.

Page 72

Q17. BANK PROVIDES IMMEDIATE TRANSACTIONS FEEDBACK

% OF RESPONDENTS

30%

10%

7%
NONE
NEUTRAL
AGREE
53%

STRONGLY AGREE

Fig 17.1

BASIS

% OF RESPONDENTS

NONE

10%

NEUTRAL

7%

AGREE

53%

STRONGLY AGREE

30%

INTERPRETATION:The above figures clearly show that customers are getting immediate feedback from bank at any
transaction.

Page 73

Q18. THE PRIVACY POLICY FRAMED BY BANK WITH RESPECT TO E-BANKING


PROTECTS YOUR INTEREST ALSO?

% OF RESPONDENTS
4%
AGREE

34%

DISAGREE
NONE

62%

Fig 18.1

BASIS

% OF RESPONDENTS

AGREE

62%

DISAGREE

34%

NONE

4%

INTERPRETATION:The above figures clearly show that respondents are clearly satisfied with the privacy policy of
bank.

Page 74

CONCLUSION

It is observed that AGE plays an important role with respect to the use of Branchless Banking
services. It is found that senior citizens are less comfortable with the use of these services. From
this we can conclude that even the preceding generation is becoming more &more aware of
benefits & convenience of Branchless Banking.
With respect to the literacy level it is observed that majority of customers have knowledge of
limited aspects of information technology.
From the study it is observed that customers are willing to use modern banking facilities
having given them adequate guidance and securities measures by bank.
With respect to frequency of visits it is observed that customers make frequent visits to banks
which can be minimized with optimum provision of Branchless Banking facilities.

Page 75

RECOMMENDATIONS

From the response of individuals it is observed that the no of male users is more than female
users with respect to the use of Branchless Banking services. It could be possible that there could
be limited use of Branchless Banking services in case of females.

So the female Gender should be made more and more aware of Branchless Banking benefits,
ease, convenience, precautions, risk, threats etc.

Page 76

LIMITATIONS OF THE STUDY

Only 100 samples would be visited and interviewed which comprises a very small sample.

Some respondents hesitate in providing information.

The information provided by respondents may not be reliable.

During the data collection the respondents did not fill the questionnaires genuinely.

The respondents restricted themselves from answering the questions mentioned for the fear
of letting their views disclosed to others.

Page 77

ANNEXURE

BIBLIOGRAPHY
QUESTIONNAIRE

Page 78

BIBLIOGRAPHY

WEBSITES
WWW.KOTAK.COM
WWW.WIKIPEDIA.COM

BOOKS
Mobarek, D (2004), e-banking practices and customer satisfaction, international journal
of bank marketing, vol 2, 94-103.
Arumugaperumal, D.S. (2006, July), impact of cybercrime on virtual banking, journal
computer science.

Page 79

QUESTIONNAIRE
Q1. ARE YOU USING BRANCHLESS BANKING SERVICES OF

KOTAK

MAHINDRA BANK?
(a)

Yes

(b)

No

Q2. AGE

(a) 18-25

(b) 25-35

(c) 35-50

(d) 50>above

Q3. GENDER
(a) Male

(b)

Female

Q4. OCCUPATION
(a) Student (b) Salaried (c) Business (d) OthersQ5. ANNUAL INCOME
(a) 0-1,00,000 (b) 1,00,000-2,50,000 (c) 2,50,000-5,00,000 (d) 5,00,000-Above
Q6. WHICH OF THE FOLLOWING PRODUCTS DO YOU USE?
(a) Current (b) Savings (c) Both
Q7. HOW DID YOU COME TO KNOW ABOUT THE BRANCHLESS BANKING
SERVICES OF THE BANK?
(a) From Bank officials (b) Advertisement in Print media (c) Family Members
(d) Friends

(e)

Others

Page 80

Q8. PURPOSE OF USING BRANCHLESS BANKING SERVICES?


(a) Balance Enquiry (b) Fund Transfer (c) Pay Bills (d) Balance Enquiry, Pay bills, Fund
Transfer (d) Balance Enquiry, Pay bills, Fund Transfer, Pay Taxes (e) None of above

Q9. TYPE OF TRANSFERS DO YOU EXECUTE THROUGH BRANCHLESS


BANKING?
(a) Within your Kotak account (b) to someone else Kotak account
(c) RTGS (d) NEFT (e) IMPS (f) within Kotak A/C to someone else Kotak A/C, NEFT
(g) Within your Kotak A/C, RTGS, NEFT (h) within Kotak A/C to someone else Kotak account,
RTGS, NEFT
(i) RTGS, NEFT, DD (j) within your Kotak, DD (k) None

Q10. TYPE OF BILL PAYING THROUGH BRANCLESS BANKING?

(a) Utility Bills (b) Insurance Premiums (c) Credit Cards (d) All of above

Q11. DID YOU USE ASBA FACILITY FOR ONLINE IPO APPLICATION THROUGH
E- BANKING?
(a) Yes

(b) No (c) None

Q12. HOW OFTEN YOU VISIT ATM?


(a) Daily basis (b) Once in a week (c) Once in a month (d) None of above

Page 81

Q13. HAVE YOU MADE BILL PAYMENTS THROUGH BILL PAY WHICH IS
AVILABLE IN KOTAK E-BANKING?
(a) Instant pay (b) Auto pay (c) None

Q14. KOTAK BANK APP IS EASY TO ACCESS?


(a) Agree (b) Strongly Agree (c) Neutral

Q16. E-BANKING TRANSACTIONS ARE SECURED?


(a) Agree (b) Strongly Agree (c) Neutral

Q17. BANK PROVIDES IMMEDIATE TRANSACTIONS FEEDBACK


(a) None (b) Neutral (c) Agree (d) Strongly Agree

Q18. THE PRIVACY POLICY FRAMED BY BANK WITH RESPECT TO E-BANKING


PROTECTS YOUR INTEREST ALSO?
(a) Agree (b) Disagree (c) None.

Page 82

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