EXECUTIVE SUMMARY

The main objective of this project report is to find out about the how Kotak Mahindra Bank is
providing services to NRI (non-resident Indian) customers through NRI Banking.
In NRI Banking. I find out that Kotak Mahindra Bank offers many products and services to the
customers, who help customers to transfer money from abroad through various transfers modes like
direct transfer, wire transfer, bank transfer, cheque transfer. Kotak Mahindra Bank has its own portal
website through which customer can transfer money easily and quickly the name of that portal website
is www.click2remit.com. There are different charges on transfer according to currency transfer by the
customer.
As the work provided to me was that to interact with NRI customer who is having NRI accounts with
Kotak Mahindra Bank and need to tell them about their non-maintenance charges on accounts,
minimum balance is to require to maintain in accounts, information about the other NRI products and
services provided by banks etc. I also try to find out on which point the Kotak Mahindra Bank is
leading and lagging in NRI Banking part so that it improve and customer can get more better products
and services.

TABLES OF
CONTENTS

Certificate

(i)

Declaration

(ii)

Acknowledgement

(iii)

Executive Summary

(iv)

Kotak Mahindra Bank

History
Product & Services
Awards
Introduction
NRI Banking
NRI Products & Services
Types of NRI Accounts
NRO Account
Benefits of NRO Account
NRE Account
Benefits of NRE Account
FCNR Account
Benefits of FCNR Account

7-10
11
12
13
13
14
15
16
17
18
19
20
21

Features of NRO, NRE, FCNR Accounts

22-23

Click2remit

24

Remittances

25

Direct transfer
Procedure to make direct transfer
ABA/routing number
Debited of money from customers account
Charges for using direct transfer

26
26
26
27
27
2

 Exchange rate used in direct transfer

Bank transfer
Benefits of bank transfer
Customer need to enter new tracking number
Beneficiary receive the money
Wire transfer
Exchange rate will be applied on customer remittances
Inform local bank
Beneficiary receive the money
Cheque transfer
Procedure of cheque transfer
Kotak Bank Collection Boxes

27-28
29
29
30
30
31
31
31
32
33
33
34

Click2Remit-Modes of Transfer

35

Click2Remit-Transfer Charges

36-37

Research Methodology

38

Practical work done

39-40

Conclusion

41

Bibliography

42

INTRODUCTION:
NRI BANKING:
NRI Baking is for those people who are non-resident Indian. Basically the product range includes NRE
accounts, NRO Accounts and FCNR Accounts.
While opening a NRI accounts, customer requires the following documents:
(a). Copies of passport pages where name ,address, specimen signature , photograph and visa details
are recorded and copy of valid visa/work permit(the visa could be either in the passport or given
separately).

(b). Details of existing bank account in India like

Account number
Type of account
Branch name with full postal address including PIN Code and telephone number of the
branch.

NRI Products and Services:

Official wealth management advisory partners of Overseas Indian Facilitation Centre (OIFC)
for Pravasi Bharatiya Divas 2010.
A comprehensive product suite to cater to the financial needs of the NRIs/PIOs.
Global Debit Card for NRE account and an Access India Debit Card for NRO account.
High quality convenience banking with Net Banking with Net Banking and Phone Banking
facility.
DTAA benefit for NRO deposit available to more than 74 countries across the globe.
Dedicated Relationship Manager to assist with all the customers financial requirements.
Click2Remit-state of the art online remittance portal which is available in currencies at
competitive Forex rates.
Online Account Opening facility to assist the customer for opening of bank account sitting
anywhere in the world.
Online assistance- live Chat, Click2Remit, and SMs2Call
NRI Investment services- mutual funds (offline and online). Online MF services can be used by
NRIs across the world

TYPES OF NRI ACCOUNTS:

5

1. NON-RESIDENT ORDINARY(NRO) ACCOUNTS

2. NON-RESIDENT EXTERNAL(NRE) ACCOUNTS
3. FOREIGN CURRENCY NON RESIDENT(FCNR)

NON-RESIDENT ORDINARY (NRO) ACCOUNTS:

It is ideal way to manage your income originating in India.NRO Accounts available in form of
Savings and Term Deposits to manage your income in india. It is partially repatriable. An NRO account
accepts both foreign currency and Indian rupee. The time period of an NRO Accounts is from 14 days
6

to 10 years. There are also special products like Max Yield Deposits where a customer can earn a
higher return on NRO deposits through DTAA benefits. Taxes currently at 30% plus service tax and
education cess on DTAA rates. This account includes checking, saving and fixed accounts. Purpose of
NRO account is to deposit the dues earned in India in Rupees and foreign exchange funds. In NRO
accounts, minimum balance is to be require to maintained that is of Rs. 10,000/- and deposits of
Rs.50,000/- . In NRO Accounts, repatriation is up to USD q million per financial year subject to
documentation and conditions current income like rent, dividend, and pension is repatriable subject to
CA certificate and proof of nature of income. Loan (against Fixed Deposit) is available up to 85% of
the loan amount subject to RBI guidelines. In NRO Accounts joint holder can be Indian residents or
NRIs both. Frequency of interest (Fixed Deposit) is quarterly. NRO accountholder can access India
(local) debit cum ATM card.

BENEFITS OF NRO ACCOUNTS:

1. Two sweep-in facility:

The dual advantage of the attractive returns of a term deposit and the liquidity of saving account.
Fund above a pre-set limit in customer saving account are automatically swept into high interest term
7

deposit account. Customer money is, however, completely liquid as they can access their funds in the
term deposit account anytime they choose.

2. Auto Renewal of Term Deposits:

Automatically renew the customer deposit on maturity. This ensures that the interest earned is
maximized.

3. Overdraft against deposit:

An overdraft of up to 85% against Rupee/forex term deposit. This special overdraft facility against
term deposit means that funds maximum liquidity.

4. Repatriation:
Repatriation is up to USD 1 million per financial year subject to documentation and conditions
current income like rent, dividend, and pension is repatriable subject to CA certificate and proof of
nature of income.

5. Loans (against Fixed Deposits):

Loan (against Fixed Deposit) is available up to 85% of the loan amount subject to RBI guidelines.

NON-RESIDENT EXTERNAL(NRE) ACCOUNTS:

NRE Accounts are fully repatriable. NRE Accounts accepts only foreign currency. Transfers can be
done in NRE Accounts from overseas or through NET BANKING and portal website of Kotak
Mahindra Bank that is Click2Remit. The term period of an NRE Account is 1 year to 3 year. The
principal and interest earned in an NRE Account are completely tax free and exempt from Income Tax
in India. This Account includes checking, savings, and fixed accounts. Purpose of Account is to deposit
8

foreign funds received from any travels cheques, foreign currency brought through normal banking
channels into account. Accepts maturity proceeds of investments purchased from even NRE/FCNR
Accounts. In NRE Accounts, minimum balance is require to maintained of RS.10, 000/- and Deposits
of Rs.50, 000/-. In NRE Account, joint holder can only be NRIs. Loan is available up to 85% for loan
value up to an upper limit of Rs.100 lakh per RBI guidelines. A chequebook for savings accounts is
available. Frequency of interest (Fixed Deposit) is quarterly.NRE Accountholder can access
international debit cum ATM card.

BENEFITS OF NRE ACCOUNTS:

1. Net Banking:
Log to www.kotak.com to have complete access and control over finances, anytime, and from
any place in the world.

2. Global Debit Card:

9

This account holder can access international debit cum ATM Card. They can access this card
anywhere in the world.

3. Tax On Interest:
The principal and interest earned in an NRE Account are completely tax free and exempt from
Income Tax in India.

4. Repatriation:
It is freely repattriable.
5. Loan(against Fixed Deposits) :
Loan is available up to 85% for loan value up to an upper limit of Rs.100 lakh per RBI
guidelines

FOREIGN CURRENCY NON RESIDENT (FCNR):

FCNR Deposits delivers the three way benefits of attractive returns, complete repatriation and zero tax
liabilities. It maintains the accounts in the following major currencies which are as follows:
1.
2.
3.
4.

USD
GBP
EUR
JPY
10

5. It protect the money from exchange rate fluctuations. Tax deducted at source (TDS) certificates
is issued. Purpose of account is to deposit foreign funds received from any travels cheques,
foreign currency, other NRE/FCNR accounts and proceeds of repatriable investment. The term
period of FCNR is 1 year to 5 year. It is fully repatriable. Loan against fixed deposit is available
up to 85% for loan value upto an upper limit to Rs. 100 lakhs per RBI guidelines. In this,
minimum balance is requiring to maintain that is USD 1000, GBP 500, EUR 1000, and JPY
110,000. In this joint holders can only be non-Indian Residents (NRIs).

BENEFITS OF FOREIGN CURRENCY NON-RESIDENT:

1) Tenure:
The FCNR Term Deposit can be held for minimum period of one year and maximum period of
five years.
2) Mandate Facility:
Appoint a family member or trusted friend to manage the account.
11

3) Auto Renewal:
Automatically renew the deposit on maturity. This ensures that the interest earned is maximized.
4) Overdraft Against Deposits:
An overdraft of up to 85% against Rupee/forex term deposit. This special overdraft facility against
term deposit means that funds maximum liquidity.
5) Repatriation:
It is freely repatriable.
6) Convience Banking:
Manage customer term deposit account with ease and efficiency.
7) Net Banking:
Time and place is of no consequence when customer wants to access their finance. Just log on
to www.kotak.com
8) Phone Banking:
Just dial 91-22-55006022 from any corner of the world for account inquires transaction and
details on services offers by Kotak bank.

12

Features of NRE , NRO and FCNR

Features

NRE

NRO

FCNR

Repatriability

Fully

Partially

Fully

Currency

Rupee

Rupee

USD,GBP,JYP,&EUR

Term

1yr-3yrs

14days-10yrs

1yr-5yrs

Tax on interest

Tax free

Taxes currently at
30%plus service tax
and education cess on
DTAA rates

Tax free

Type of account

Checking, saving,
fixed

Checking, saving,
fixed

Fixed

Purpose of account

To deposit foreign
funds received from
any:

To deposit
dues earned in
India in
Rupees
foreign
exchange
funds

To deposit foreign
funds received from
any:

Traveler's
cheques
Foreign
currency
Other
NRE/FCNR
a/c
Proceeds of
repatriable
investments

Minimum balance
requirements

Savings:INR10,000
Deposit:INR50,000

Savings:INR10,000
Deposits:INR50,000

USD1000, GBP500,
EUR1000,
JPY110,000
1-5years

1-3 years
Period for fixed
deposit

Traveler's
cheques
Foreign
currency
Other
NRE/FCNR
a/c
Proceeds of
repatriable
investments

15 days-10 years

13

Only with NRIs

Joint holding

Indian Residents and

NRIs
NRE rupee rates

FCNR rate

Exempt

Exempt

Interest rate
Tax deducted at
source
Frequency of
interest(fixed
deposits)

NRO rupee rates

Quarterly

30% plus service tax

and cess

Half-yearly

Quarterly
Freely Repatriation

Repatriation

Loans(against fixed
deposits)

Only with NRIs

Freely
Repatriation
Repatriable up to
USD 1 million per
financial year subject
to documentation and
conditions. Current
income like rent,
dividend , pension is
repatriable subject to
CA certificate and
proof of such nature
of income

Available up to 85%
for loan value up to an
upper limit of rs.100
Available up to 85%
lakhs per RBI
of the loan amount
guidelines.
subject to RBI
guidelines.

Available up to 85%
for loan value up to an
upper limit of rs.100
lakhs per RBI
guidelines.

Available
Cheque book for
Saving account

Available
International debit
cum ATM card

14

Debit/ATM Card for

Saving account

Access India (local)

debit cum ATM card

CLICK2REMIT:

15

www.Click2remit.com is portal website of Kotak Mahindra bank limited through which

customers can transfer money easily. This is completely online mode of sending money from
overseas to India. A customer needs to follow three steps to transfer money to India that is:
Firstly they have register on www.click2remit.com by providing important details about
themselves.
Secondly, they have to provide their bank details.
Thirdly, provide the information about the receivers account details (with any bank) in
India.
Any person who wishes to make payment (in foreign currency) to an individual in india (in
Indian rupees) can use click2remit money transfers. Customer can make remittance in nine
currencies that is U.S.Dollars, Canadian Dollars, Singapore Dollars, Pound Sterling, Euro,
Japanese Yen, UAE Dirham, Swiss Franc and Australian Dollars.

REMITTANCES:

16

Following are four online remittances through which customer can easily transfer the money
by using the portal website of kotak Mahindra bank limited that is www.click2remit.com.

Direct Transfer
Bank Transfer
Wire Transfer
Cheque Transfer

DIRECT TRANSFER:

17

Direct transfer uses ACH clearing, full form of ACH is Automated Clearing House. In the United
States, the ACH Network is highly reliable and efficient nationwide electronic funds transfer
system which enables interbank clearing of transactions among participating financial
institutions. customer may use their checking account or their saving account with US Bank
affiliated to the ACH network.

PROCEDURE TO MAKE DIRECT TRANSFER:

Customer has to register themselves their personal details on click2remit. They also need
to enter their bank account details that is bank account number and ABA Routing number
that would enable them directly debit their account using the ACH facility.
On the basis of customer authorization bank would initiate two-sub dollar credits and one
sub-dollar debit (equivalent to sum of the two sub-dollar credits) on their account.
Once the sub dollar entries are reflected in customers account, they need to verify the
same on click2remit, and after successful verification, the account is immediately
activated. On activation they can initiate a transaction.

ABA/ROUTING NUMBER
The American Bankers Association Number (ABA) or Routing number is also called Routing
Transit number. It is nine digit identification number assigned to each financial institution and
each branch office of that financial institution. Without the ABA/Routing number, transmitting
funds is not possible. The ABA number can be found on the bottom of the cheque.

DEBITED OF MONEY FROM CUSTOMER ACCOUNTS:

18

Money will be debited from customer account on the second or third working day from the date
when the customer makes the transaction. Do take account all holidays like weekends, public
holidays, in India and the US while calculating working days.

CHARGES FOR USING DIRECT TRANSFER:

Remittance Service charge:

A nominal USD 2 charges (inclusive of service tax 10.3%) for amounts of USD 1000 or
below for electronic credits into bank accounts( over100 key banks in India), for credit to credit
card accounts no remittance service charge applicable for higher amounts.

Foreign Currency Conversion Charge:

A nominal charge of rs.25 (service tax @ 10.3% will be additional) will be levied on every
remittance request where foreign currency conversion is carried out. This charge would be
deducted from the amount to be paid to the beneficiary.

EXCHANGE RATE USED IN DIRECT TRANSFER:

Direct transfer from click2remit offers customer the best exchange rates. They check
indicative exchange rates by clicking on the transfer charges link on the click2remit home
page. Actual rates applied while converting the dollar amount transferred by customer
into Indian rupees may be different from displayed rates because of intra-day movements
in the rupee dollar exchange rate.
For guaranteed rate transfer customer get confirmed USD/INR rates during the course of
their transaction for current dated requests. The exchange rate that is applied for their
current dated guaranteed rate transfer transaction may be different from the indicative
exchange rates displayed on the exchange rate calculator.
19

BANK TRANSFER:

20

Bank transfer is online money transfer facility for remitters in Europe. Remitters having internet
banking facility for their checking accounts with banks in UK/Germany can use this bank
transfer.
Additionally, only customers of banks offering the following will be able to use this facility:

Online third party funds transfers/payments on their internet banking website

A Remarks or message to receipt field while making the online third- party transfer, to
enter the tracking number generated on click2remit.

Currencies supported GBP and EURO.

BENEFITS OF BANK TRANFERS:

Electronic transfers into any Kotak Mahindra bank account with 250 branches in India.
Electronic transfers into accounts with nearly 100 other banks and over 70,000 banks
branches in India.
Electronic transfers into any Visa Debit/ credit card account in India.

CUSTOMER NEED TO ENTER A NEW TRACKING NUMBER ON THEIR

INTERNET BANKING ACCOUNT FOR EVERY NEW TRANSACTION:
If customer are sending money to the same beneficiary again, they must make a new
request on money transfer and enter the new tracking number in their internet banking
account.

21

 BENEFICIARY RECEIVE THE MONEY:

It will take up to 2 days working days to credit a Kotak Bank account from the
moment customer transfer the funds from the overseas bank account.
For the third party banks a additional working day or more may be taken
depending on the policies of that bank.

WIRE TRANSFER:
It is easy transfer. Internet-based wire transfer mechanism thats much more efficient than offline
wire transfers. Errors are minimized with a unique tracking number- given to customer each time
customer use.
Online wire transfer that allows customer to check the status of their remittance online at any
time. Currently, customer can remit money in nine currencies which are AED, AUD, CAD, CHF,

22

EURO, GBP, USD, and SGP. However, payments to their beneficiary in India will be made only
in Indian rupees.

EXCHANGE RATE WILL BE APPLIED ON CUSTOMER REMITTANCE:

The exchange rate prevalent on the day their funds are converted to Indian rupees is the rate that
will be applied on their remittance. Bank online calculator will let know the customer about the
prevailing exchange rate whenever customer book their remittance in order that customer have
fair idea of how much their beneficiary in India can expect to receive in Indian rupee.

CUSTOMER HAVE TO INFORM TO THEIR LOCAL BANK:

Once the transaction process is complete on the site, customer will get a screen showing the
remittance instruction with bank copy and a customer copy. Customer need to take a printout of
bank copy, fill in the necessary details, and submit it to their local bank with their sign, along
with their payment instructions. The customer copy is for their reference and customer can keep
it with them.

BENEFICIARY WILL RECEIVE THE MONEY:

It will typically take up to 2 working days to credit and Kotak bank account from the
moment customer transfer funds from their overseas bank account.

23

For third party an additional working day or more may be taken depending on the
policies of that bank.

CHEQUE TRANSFER:

Cheque transfer is money transfer option through which customer can send money to India by
mailing a foreign currency cheque drawn on any local bank- to P.O Box in their country. It is
24

currently available for remitters in the United States. Customer should not send Cashiers
cheques since they will not be processed.

PROCEDURE OF CHEQUE TRANSFER:

Register on click2remit, click on check option providing relevant details pertaining to the
amount customer would like to send, their bank details and their beneficiarys details.

Print the remittance instruction form after customer complete their transaction and attach
it to their check.
Post both the remittance instruction form and their check to bank collection boxes in their
country at the address provided.
The bank will clear their check in their country and bank will dispatch their remittance to
their beneficiary once the bank receives clear funds.

BEFORE MAILING CHECK TO ANY OF KOTAK BANK COLLECTION

BOXES ENSURES FOLLOWING:
Write the date in keeping with the format in their country.
25

 The cheque is payable in to Kotak bank a/c beneficiary name.

Check amount should state the exact amount customer entered on this site while booking
their remittance.
On the memo area of their check, mention their unique transaction Reference Number
Ensure that check is not post dated.
Mailing address for the check Kotak Mahindra Bank ,PO Box 11448A New York 10286
1448

CLICK2REMIT-MODES OF TRANSFER:

26

WIRE
TRANSFER

BANK/DIRECT
TRANSFER

CHECK
LOCK BOX

REMARKS

US

Available

Available
(ACH)

Available

All modes have

been activated

UK

Available

Available
(Net Transfer)

NA

Popular modes
available

GERMANY

Available

Available
(Net Transfer)

NA

Popular modes
available

CANADA

Available

NA

NA

ACSS will be
enabled

SINGAPORE

Available

NA

NA

GIRO will be
enabled

AUSTRALIA

Available

NA

NA

Bank transfer
will be enabled

JAPAN/SWISS/
UAE

Available

NA

NA

Popular modes
available

CLICK2REMIT-TRANSFER CHARGES:

27

CURRENCY

TRANSACTION
AMOUNT SLABS
0-500
501-1000
1000 and above

C2R

R2I

M2I

USD 2
USD 2
No charge

USD 3
USD 5
USD 9

USD 2
USD 2
No charge

0-500
501-1000
1000 and above
0-800
800 and above
1000 and above

GBP 2
No charge
No charge
EUR 2
No charge
No charge

GBP 3
GBP 5
GBP 5
EUR 2
EUR 3
EUR 5

GBP 2
No charge
No charge
EUR 2
No charge
No charge

JPY

0-10,000
10,000 & above

JPY 1000
JPY1000

JPY 1000
JPY 1000

NA
NA

AUD

0-1500
1500 & above

AUD 5
No charge

AUD 6
AUD 12

AUD 5
No charge

SGD

0-1000
1001-2000
2000 & above

SGD 5
SGD 5
No charge

SGD 6
SGD 6
SGD 6

SGD 5
SGD 5
No charge

CAD

0-1000
1001-1500

CAD 4
CAD 4

CAD 15
CAD 15

CAD 4
CAD 4

USD

GBP
EUR

1501 and Above

CHF

AED

FC C

0-1000
1001-1500
1501 and Above
0-1000
1001-4000
4001 and Above

No Charge
CHF 4
CHF 4
No Charge
AED 10
AED 10
No Charge
INR 25+St

CAD 15
NA
NA
NA
AED 15
AED 15
AED 15
34-125^^

No Charge
CHF 4
CHF 4
No Charge
AED 10
AED 10
No Charge
INR 25

28

Note: Remit2India collects money as service charge which varies currency slab wise and ranges
from min of INR 34 to INR 125.

PRACTICAL WORK DONE:

According to work allotted to me, I need to update the customers data regarding their current
balance as well as updating their preferred contact number to get in contact with the customer
and inform them regarding their account status.
29

I made interaction with customer informed them about their account details and even explained
them about non- maintenance charges if an average balance is not maintained in their respective
account.
Get in calling them and told them about the transfer procedure. Also explain about the how they
can make online transfer through overseas.
Call to customer at their convenient time as per informed by international calling codes and their
timing to call respective country that is as follows:

International Calling Code

Country

Codes

Timings

USA

001

After 6pm

UK

0044

After 3 pm

UAE

0097

12PM-7PM

KENNYA

00254

12pm- 7pm

AUSTRALIA

0061

Till 3pm

SINGAPORE

0065

10 am 6pm

AFRICA

0025

12pm- 7pm

OMAN

00968

12pm -6pm

UGANDA

00256

CANADA

001

12pm- 7pm
After 7pm and before10am

30

Spoke to customer and made them transfer online, it usually takes 4 to 5 days to get credited in
their respective account and most happening experience was that customer was polite and even
gave reference of their respective friends and relatives for opening NR accounts.

CONCLUSION:

As per my experience in the NR banking department I came to know about the various transfer
procedures that are at present available in the international market i.e. the remittances available.
Also I came to know about the problems & difficulties that the NR customers face while making
online transfers.
31

Kotak Mahindra Bank Limited is having widespread transfer modes & NR products. It has
various facilities that provide convenience to the customers residing in far-away countries for
remitting their money to India.

BIBLIOGRAPHY:

1.) www.kotak.com
2.) www.google.com
32

3.) www.wikipedia.com
4.) www.click2remit.com

33