A Project Report On

CONTRIBUTION OF DIGITAL
TOWARDS RE-KYC BILLS AND
UFD

Submitted by:
Atiharsh Kumar Gupta
M.B.A 2015-2017

Vinoba Bhave University, Mumbai

MBA in Banking (Marketing)

DECLARATION

I undersigned Atiharsh kumar Gupta student of MBA 3rd semester declare that I have done the
project on BASIC BANKING AT HDFC BANK LTD. has been personally done by me under
the guidance of Prof. Saroj Ranjan hazaribagh in partial fulfillment of MBA Program- during
academic year-2015-17. All the data represented in this project is true & correct to the best of
my knowledge & belief.
I also declare that this project report is my own preparation and not copied from anywhere else.

Date

ACKNOWLEDGEMENT
I take this opportunity to express my deep sense of gratitude, thanks and regards towards all of
those who have directly or indirectly helped me in the successful completion of this project.
I present my sincere thanks to Mr.Ashok Kumar (Branch Manager, annada chowk ) who allowed
me to take training at HDFC BANK.
I would also like to thank HDFC bank Staff for their wonderful support & inspirable guiding.
I also thank Prof. Saroj Ranjan who has sincerely supported me with the valuable insights into
the completion of this project.
Last but not the least I am indebted to my PARENTS who provided me their time, support and
inspiration needed to prepare this report.
Date: Place: -Hazaribag
Atiharsh Kumar Gupta

CONTENTS
INTRODUCTION
SYNOPSIS
Objective of study
Need & Scope of study
Significance of the study
Location of study
Research methodology
Limitations of study
COMPANY PROFILE
History
Promoter
Business Focus
Capital structure
Business profile and operational areas
Wholesale banking
Treasury
Retail branch banking
Amalgamation of the bank and centurion bank of Punjab with
HDFC bank
ABOUT COMPANY
Vision
Mission
Product and services
Account and deposit
Loan
Cards
Demat
Investment
Insurance
Forex
Premium banking
Private banking
INTRODUCTION TO THE STUDY
Digital banking
4

Advantages of digital banking

KYC
Electronic KYC
Re-KYC bill
Fixed deposit
UFD
Difference between FD and RD
ANALYSIS
Questionnaire
Data interpretation & analysis
RESEARCH REVIEW
CONCLUSION
RECOMMEDATION
BIBLIOGRAPHY

SYNOPSIS
A new concept in the area of digital banking, which aims to enrich standard
online and mobile banking services by integrating digital technologies, for
example- strategic analytics tools, social media interactions, innovation payment
solution, mobile technology and a focus on user experience.Most people in the
5

banking industry agree that digital banking is the wave of the future. Indeed, many
would contend that its already here.
Digital Banking often gets confused with mobile banking and online banking,
and even omnichannel banking. True, all these involve digital applications in one
form or another. But what constitutes Digital Banking, or even a Digital Bank
has yet to gain overwhelming agreement.
The digital banking platform is the key to servicing affluent and high-net-worth
customer, as they are increasingly using digital channels to open and service their
accounts. Digital transformation going on generally across business, including
finance and accounting service.
It is realized that new digital technologies can propel their use of more advanced
integrated services to support unconventional areas, better focus on the external
customer and supplier relationships and enhance their competitiveness.
The researcher notes the following trends: Digital adoption is fueled by the need to improve end to end integration of
internal and external services.
There is a digital talent gap- which firms will tend to fill from within.
Many organization plans to train and retool their current employees rather than
employing the assistance of third party experts to implement these new
technologies. While the importance of digital technologies justifies the
investments in developing skilled staff who understand them and can apply them to
business needs, the pace at which they are evolving is increasing the need for many
enterprises to rely on outsides advisors who focus on these technologies day in and
day out
So, Digital Banking is the incorporation of new and developing technologies
throughout a financial services entity, in concert with associated changes in
internal and external corporate and personal relationships, to provide enhanced
customer services and experiences effectively and efficiently.

OBJECTIVES
Aim to find out the consumer awareness and preference for HDFC BANK
LTD.
6

 Aim to find out the contributions of digital banking.

Aim to improve the customers relationships through digital engagement.
Aim to attract new customers and up sell customers through our mobile
channel.
Aim to reduce costs by migrating transactions from the branch channel.
To find out the contributions of digital banking towards Re KYC bills &
UFD.
The main objectives of digital banking is to understand the concept of online
banking & mobile banking, as prevalent in the Re- KYC bills & UFD and to
comparatively analyze the importance of Re- KYC bills & UFD.
The project study is aimed to evaluate the contribution of digital banking in todays
banking for all the products of HDFC BANK LTD.

NEED AND SCOPE OF STUDY

Today the customer demands the services of banks 24 hours where he lives even he
is in the airplane.
Now, in this modern age the entire banking structure has been changed due to
widespread digital technology. Now all the business like commerce, trade, import,
7

export, purchase, sale of good is relying upon electronic banking. By using the
advance digital banking. By using the advance digital technology the banking
services are fast and economical.
There is saving of money and time while using digital banking. If any country
wants to work in the world market, it will have to improve the banking services at
international level because old traditional banking is not acceptable in the changing
global economy.
The digital banking facility has been provided by large number of commercial
banks. On the other hand credit card facility is also available in the various
commercial banks. Now every bank wants to attract the customer and for this
purpose they offers the latest facilities so it seems that no any bank will survive in
the market if he fail to provide updated facilities.

Significance of Digital Banking

Digital Banking helps in requiring change in the operating model , namely
products and services organization, culture and skills and IT.
Digital banking helps the banking industry in expanding due to the modern
facilities , it is attracting more and more customers .
Digital Banking offers a good platform to their customer to bank with .
Digital Banking provides multichannel consistent solutions .
Digital Banking is also a fully integrated with existing system .

LOCATION OF THE STUDY

Present study was conducted at the HDFC Bank Ltd, Hazaribagh

RESEARCH METHODOLOGY
Research is a scientific search for pertinent information on a specific topic. It is a
way to systematically solve the research problems. I did the above project to study
the Marketing aspects of HDFC BANK LTD. This type of study helps the
8

1.
2.
3.
4.
5.
6.
7.

management for future planning for the growth of organization. Through this study,
the management is able to know the marketing situation of the company.
Research is a process through which we attempt to achieve systematically and with
the support of data the answer to a question, the resolution is a problem, or a greater
understanding of a phenomenon.
Research methodology is a systematic way to solve a problem. It may be understood
as a science of studying how a research is done systematically. This process, which
is frequently called research methodology, has seven distinct characteristics:
Research originates with a question or problem.
Research requires a clear articulation of a goal.
Research follows a specific plan of procedure.
Research usually divides the principal problem into more manageable sub
problems.
Research is guided by the specific research problem, question, or hypothesis.
Research accepts certain critical assumptions.
Research requires the collection and interpretation of data in attempting to resolve
the problem that initiated the research.

The methodology resorted to data collection is in both:

Primary data: The primary data collected by interacting with the Branch
Manager. The data regarding the present systems of controlling inventory were
collected.

Secondary data: The secondary data was obtained from the past records and files
of the organization and also from financial statements and books, journals,
magazines, newspaper and internet.

RESEARCH/PROJECT DURATION:
45 Days

LIMITATION OF DIGITAL BANKING

9

Through there are many advantage of Digital banking, but nothing came without
disadvantage and everything has its pros and cons, same with digital banking. It
also has some disadvantage which must be taken care of. The limitation of digital
banking includes the following:1. Lack of human touch Banking is all together a service industry. A service
industry always has an upper hand, when there is a customer care with
human touch. In case of the traditional banking system the banking staff will
assist customer in case of any difficulties. However the digital banking lacks
this option. The user will not have a direct contact with the customer contact
personal. Through there will be an option to talk over the phone to talk to the
customer care personal, customer doesnt have the guarantee that they are
talking to the best person available there.
2. The security aspects- All digital banking service providers are leaving no
stone unturned to make their service a full proof one. Still there exists a
threat to the digital banking. To make customer internet banking account a
secure one, just follow the guideline issued by the banks and does not share
customers login detail with anyone.
3. Difficulties for new person- Understanding the usage of digital banking
might be difficult for a beginner at the first go. So, a person who is new
might face some difficulty.
4. Internet connection- Customer cannot have access to online banking if they
dont have an internet connection, thus without the availability of internet
access, it may not be useful.

COMPANY PROFILE
About HDFC BANK.
10

Housing Development Finance Corporation Abbreviated as HDFC as an

Indian banking and financial service company headquartered in Mumbai,
Maharashtra. The bank was incorporated in August 1994, as of September 30,
2015; the bank had a nationwide distribution network of 4,227 branches and
11,686 ATMs in 2,501 cities/towns. HDFC BANK is among the top 50 most
valued global bank in terms of market capitalization. It is Indias second-largest
private lender in term of assets size, rank 45th, with a market capitalization of $39
billon.
Mr. Aditya Puri is the managing Director of HDFC BANK, and has held this
position since 1994.He has recently named in the Barrons list of best 30 CEOs and
business leader of the year by AIMA.
HDFC offers Wholesale banking for corporate and financial institution and trusts.
The bank also provides such as Investment banking and other services in the
government sectors. HDFC Bank was the first bank in India to lunch an
International Debit card in association with VISA (Visa Electron).the bank also
issues the Master Card Maestro debit card. HDFC Bank has taken several
initiatives as part of its corporate social responsibility. It has collaborated with
several NGOs to assist in its activities. It has about 76,286 employees including
12,680 women and has a presence in Bahrain, Hong Kong and Dubai. HDFC Bank
is the second largest private bank in India as measured by assets. It is the largest
bank in India by market capitalization as of February 2016. It was ranked 58th
among Indias most trusted brands according to Brand Trust Report, 2015.
Total balance sheet size as of December 31, 2015 was Rs.687, 892crores as against
Rs.534,855 crores as of December 31,2014. The Banks total income for the
quarter ended December 31, 2015 was Rs.18,283.3crores, up from Rs.14,930.7
crores for the quarter ended December 31,2014. Net revenues (net interest income
plus other income) increased by 20.7% to Rs.9,940.7crores for the quarter ended
December 31.2015 as against Rs.8,234.8 crores for the corresponding quarter of
the previous year.

ORGANISATINAL CHART

MD
11

GROUP HEAD

BRANCH BANKING HEAD

CIRCLE
HEAD

ZONAL HEAD

CLUSTER
HEAD

BRANCH
MANAGER

PBA

TELL
ER

PB
SALE
S

TA

R . MANAGER

PB
W.D

BSO

CSO

History :
In 1992, HDFC Bank Limited was incorporated, with its registered offices in
Mumbai, India. Its first corporate offices and a full service branch at Sandoz
House, Worli was inaugurated by the then Union Finance Minister, Dr. Manmohan
12

Singh. It operates in 2,505 cities in India with 4,281Branches which are linked on
an online real- time basis. The bank has a network of 11,843 ATMs across India.
Promoter :
HDFC is Indias premier housing finance company and enjoys an impeccable track
record in India as well as in international markets. Since its inception in 1977, the
corporation has maintained a consistent and healthy growth in it6s operations to
remain the market leader in mortgages. Its outstanding loan portfolio cover well
over a million dwelling unit. HDFC has developed significant expertise in retail
mortgage loan to different market segment and also has a large corporate client
base for its housing related credit facilities. With its experience in the financial
markets, strong market reputation, large shareholder base and unique consumer
franchise, HDFC was ideally positioned to promote a bank in the Indian
environment.
Business focus :
HDFC Banks mission is to be a world class Indian bank. The objective is to build
sound customer franchises across distinct businesses so as to be the preferred
provider of banking services for target retail and wholesale customer segments, and
to achieve healthy growth in profitability, consistent with the banks risk appetite.
The bank is committed to maintain the highest level of ethical standards,
professional integrity, corporate governance and regulatory compliance. HDFC
Banks business philosophy is based on five core value: Operational Excellence,
Customer Focus, Product leadership, People sustainability.
Capital Structure :
As on 31st March, 2015 the authorized share capital of the bank is Rs.550 crore.
The paid-up share capital of the bank as on said date is Rs.501,29,90,634/(2506495317) equity shares of Rs.2/- each. The HDFC group holds 21.67% of the
Banks equity and about 18.87% of the equity is held by the ADS / GDR
Depositories (in respect of the banks American Depository Shares (ADS) and
Global Depository Receipts (GDR) Issues). 32.57% of the equity is held by foreign
Institution Investors (FIIs) and the bank has 4,41.457 shareholders.
The share are listed on the Bombay Stock Exchange Limited and The National
Stock Exchange of India Limited. The Banks American Depository Share (ADS)
are listed on the New York Stock Exchange (NYSE) under the symbol HDB and
the Banks Global depository Receipts (GDRs) are listed on Luxembourg Stock
Exchange under ISIN No US40415F2002.
Business Profile & Operational Areas :
HDFC Bank caters to a wide range of banking services covering commercial and
investment banking on the wholesale side and transactional / branch banking on
the retail side. The bank has three key business segments:
WHOLESALE BANKING
13

The Banks target market is primarily large, blue-chip manufacture companies in

the India corporate sector and to a lesser extent, small & mid-sized corporate and
agri-based business. For these customers, the bank provides a wide range of
commercial and transactional banking services, including working capital finance,
trade service, transactional services, cash management, etc. the bank is also a
leading provider of structured solution, which combined cash management service
with vendor and distributor finance for facilitating superior supply chain
management for its corporate customer. Based on its superior product delivery /
service levels and strong customer orientation, the bank has made significant
inroads into the banking consortia of a number of leading Indian corporate
including multinationals, companies from the domestic business houses and prime
public sector companies. It is recognized as a leading provider of cash management
and transactional banking solution to corporate customers, mutual funds, stock
exchange members and banks.
TREASURY
Within this business, the bank has three main product areas Foreign Exchange
and Derivatives, Local Currency Money Market & Debt Securities, and Equities.
With the liberalization of the financial market in India, corporate need more
sophisticated risk management information, advice and product structure. These
and fine pricing on various treasury products are provided through the banks
Treasury team. To comply with statutory reserve requirement, the bank is required
to hold 25% of its deposits in government securities. The treasury business is
responsible for managing the return and market risk on this investment portfolio.
RETAIL BRANCH BANKING
The objective of the Retail Bank is to provide its target market customer a full
range of financial products and banking services, giving the customer a one-stop
window for all his/her banking requirement. The products are backed by worldclass service and delivered to customer thorough the growing branch network, as
well as through alternative delivery channels like ATMS, Phone Banking, Net
Banking and Mobile Banking.
The HDFC Bank preferred program for high net worth individuals, the HDFC
Bank Plus and the Investment Advisory Services Program have been designed
keeping in mind needs of customer who seek distinct financial solutions,
information and advice on various investment avenues. The bank also has a wide
array of retail loan products including Auto Loans, Loans against marketable
securities, Personal Loans and loans for Two-wheelers. It is also a leading provider
of Depository Participant (DP) service for retail customers, providing customer the
facility to hold their investment in electronic form.
14

 Amalgamation of the Bank & Centurion Bank of Punjab with HDFC

Bank.
On may23, 2008, the amalgamation of Centurion Bank of Punjab with HDFC
Bank was formally approved by Reserve Bank of India to complete the statutory
and regulatory approval process. As per the scheme of amalgamation, shareholder
of CBoP received 1 share of HDFC Bank for every 29 share of CBoP.
The amalgamation added significant value to HDFC Bank in terms of increased
branch network, geographic reach, customer base, and a bigger pool of skilled
manpower.
In a milestone transaction in the Indian Banking industry, Times Bank Limited
(another new private sector bank promoted by Bennett, Coleman & co. / Times
Group) was merged with HDFC Bank Ltd., effective February 26, 2000. This was
the first merge of two private banks in the New Generation Private Sector Banks.
As per the scheme of amalgamation approved by the shareholders of both banks
and the Reserve Bank Of India, Shareholders of Times Bank received 1 share of
HDFC Bank for every 5.75 shares of Times Bank.

ABOUT COMPANY
VISION
HDFC visualized itself as one stop solution provider for customers all electrical
needs. HDFC would like to provide customers all the services related to Electrical
needs of their company at the best cost as well as to the safety and international
standards, so that user can concentrate on their core business by outsourcing their
electrical work and progress faster.

MISSION
HDFC mission is to educate customer about utilizing a power in adequate
quantities of good quality with economical way. Hence to en light customer dream
world with good quality lighting service in cheaper way with good esthetical
manner. HDFC mission is a continuous process till each and every customer get

15

power it means electricity in good quantity, quality and economically with

assurance of continuity by way at minimizing Black out hours.
PRODUCTS AND SERVICES
ACCOUNTS & DEPOSITS
Experience banking of the future with a bank account from HDFC Bank. A world
of smart features, multiple banking channels and prompt customer service awaits
customers.
LOANS
HDFC provide loan for customer. HDFC Bank is for quick check on eligibility,
competitive interest rate, flexible terms, minimum paperwork and fast disbursal.
CARDS
HDFC Bank provide credit card and debit card facilities.
DEMAT
HDFC Bank presents flexible Demat accounts. From simple Demat account to 3 n
1 accounts HDFC offer a combination of Demat trading and saving accounts which
makes investing easy.
INVESTMENTS
HDFC provide investment opportunities by choosing from an array of financial
product like mutual funds, stocks, etc.
INSURANCE
HDFC provide opportunity to invest in insurance policies. They help customer to
choose from a host of life and non-life insurance products under one roof.
FOREX
HDFC Bank have wide network of correspondent banks and representatives across
the globe. HDFC organize customers all foreign exchange when they travelling
abroad. From cash to multicurrency Forex card, customer can get it all from any
HDFC Bank branch.
PREMIUM BANKING
16

HDFC Bank extends the services of a dedicated relationship manager for

delivering customized banking and investment solution to meet customers needs.
PRIVATE BANKING
HDFC Bank provides private banking service for customers.

INTRODUCTION TO STUDY
DIGITAL BANKING:-In simple language we can say that delivery of banking
service to the customers by using the electronic communication like internet is
called digital banking. Digital banking is not only the ATM facility but it provides
all other banking services like payments, purchases, and sale without visiting
physically to the banks. Digital system is fully automated system which provides
customer better services. Customers are provided with a username and password.
They can visit the site and login into their accounts.
HDFC Banks digital banking is enabling customer convenience as never before.
HDFC Banks products and offerings, from banking service, to loans,
investment, one click payments and one click shopping, are all digitally
accessible to customer using mobile phone and the internet in order to save time,
paperwork and needless hassles such as visiting bank branches.
From conducting simple banking operations using a mobile phone to 10second
personal loan disbursal offers through Net banking and wearable banking
applications using the AppleiWatch, HDFC Bank has been consistently launching
service that use the latest technologies to benefit its customers.
All our processes have been digitized. This is in keeping with our #GoDigital
campaign. Bank that do not use the latest technology to ease the way customers
can access its products and services will soon be obsolete, said Mr. Aditya Puri,
Managing Director, HDFC Bank Limited.

In June this year for example, HDFC Bank launched PayZapp, a payment solution
that revolutionized the way payments and purchases are done on the go today using
mobile devices. After downloading this application, customer can pay with just
one click for all their spends from mobile phone top-ups to instant money

17

transfers, to bill payments to groceries to movie tickets and even big-tickets

purchases such as foreign holidays.
PayZapp also contains Smart Buy, a virtual mega marketplace that has every type
of product, from that fulfill daily requirement to those that meet inspirational
needs, just the way a mall has.

As
part
of its digital focus, the bank took a slew of initiative this year including a mobile
application that allows a customer to meet his or her shopping and payment
requirements: personal loan in 10 seconds and auto loans within30 minutes
using biometric authentication.

For
getting
all
this up
and about, HDFC Bank announced its integrated, nationwide brand campaign,
Har Zaroorat Poori Ho Chutki Mein, Bank Aapki Mutthi Mein in October this
year. Spanning print, radio, digital, outdoor media, automated teller machines
(ATMs)and branch branches- the campaign will reinforce the Banks position as
Indias premier digital bank.

18

ADVANTAGES OF DIGITAL BANKING

PAPER
WORK
REDUCED
MARKET
EXPENDED

24*7 EASY
ACCESS TO
YOUR
ACCOUNT

EASY
TRANSACT
IONS

ADVANTAG
ES OF
DIGITAL
BANKING

INCREASE
IN
CUSTOME
RS

SECURI
TY

SAVING OF
TIME

19

Digital banking has several advantages over traditional one which makes operating
an account simple and convenient. It allows customer to conduct various
transactions using the banks website and offer several advantages. Following are
the important advantages of Digital banking:1. 24*7 access to user account- Digital banking gives 24*7 access. When

2.

3.
4.

5.

6.

7.

8.

9.

customers neighbourhood bank closes, they can still access their account
and make transactions online. Its a very convenient alternative for those that
cant get to bank during normal hours because of their work schedule, health
or any other reasons.
Easy transactions Digital banking has reduced the problems of the
customers like writing cheques, filling taxes, and transforming of cash. Now
in ATM facility is no need of cheque book.
Security Digital Banking provides the safe system of payment. Now
transactions are made in the accounts through internet.
Saving of time Digital banking has saved the time and money of the
customer and also the bank. Now burden of work on bank employees has
been also reduced. Were hired wages, so operating cost was very high. Now
by using digital banking the number of employees has been reduced.
Paper work reduced - The traditional procedure of banking is manual and
paper based. Electronic banking is gradually replacing the paper transactions
in the banks which have reduced the paper work.
Market expands Due to digital banking, national international market of
various goods and services has been expanded. Now we can purchases and
make payment in any place in the world.
Increase in customers As the banking industry is expanding due the
modern facilities, it is attracting more and more customer. So numbers of
customers are increasing day by day.
Branches reduced Now there is no need to open the branches on every
place in the city because due to digital banking facilities, there is no rush of
customer in the banks. Because there is no need to visit the bank physically.
So heavy cost of opening the new branches has been reduced and facilities
are provided at low cost.
Checking of account Every customer can check his balance of account
sitting at home and make the payment without travelling. It saves his time
and expenses.
20

10. Utility bills payment-Bills, like telephone, gas, electricity and water can be

easily paid to the concerned departments without going to the bank

physically. Even he is sitting in any other country, he can make the payment.
11. Transferring of money There is no need of writing the deposit slip
cheque and drafts. By using the digital banking money can be transferred
easily.
12. Credit cards It is also very important facility for the customers that he
can purchases the goods and can make the payment by using the cards.
13. Conducting online is faster than going to the bank Conducting business
online is generally faster than going to the bank. Long teller lines can be
time-consuming, especially on a Pay day. But, online, there is no line to
contend with. Customer can easily access their account instantly and at their
leisure.
14. Other feature and services- Many feature and service are typically
available online. For example- with just a few click customer can apply for
loans, check the progress of their investment, review interest rates and gather
other important information that may be spread out over several different
brochures in the local bank.
15. Other advantage another important benefit of the concept of digital
banking is that it is good for the environment as it cuts down the usage of
paper, reduces pollution as people do not have to travel physically and also
does not add emissions.

KNOW YOUR CUSTOMER (KYC)

Know Your Customer (KYC) was introduced in 2002 by Reserve Bank of India.
Know your customer is the process of a business verifying the identity of its
21

clients. The terms are also used to refer to the bank regulation which governs these
activities. Know your customer processes are also employed by companies of all
sizes for the purpose of ensuring their proposed agents, consultants, or distributors
are ant bribery compliant. Banks, insurers and export creditors are increasingly
demanding that customers provide detailed anti-corruption due diligence
information, to verify their probity and integrity.
Know your customer policies are becoming much more important globally to
prevent identity theft, financial fraud, money laundering and terrorist financing.
KYC consists of two elements Identity and Address. While the identity of the
customer cannot change, the address may undergo change and thus the banks are
required to periodically update their records.
Banks are often criticized for using Know-your-customer (KYC) norms as an
excuse to complicate the process of opening accounts. Many have registered
complaints on GrahakSeva, the governments customer- grievances portal, alleging
banks repeatedly seek KYC documents, even after these are provided.
Yet, time to time, banks are penalized by the regulator for violating KYC
instructions. On December 17, the Reserve Bank of India (RBI) imposed monetary
penalties on ICICI Bank and Bank of Baroda for non-adherence to certain aspects
of KYC norms, which allowed fraudsters to open fictitious accounts in the name of
a reputed statutory organization and use those for illegal transactions. The regulator
also cautioned three other banks Axis Bank, State Bank of India (SBI) and state
Bank of Patiala for failing to adhere to its KYC directives. We know it is difficult
because there are constraints such as a large population and an inadequate
database.
Recently RBI simplified KYC norms, saying a single document will suffice as
proof of identity and address. It added no separate KYC documentation woukd be
needed while transferring accounts from one branch to another branch of the same
bank. Those who dont have any officially valid document are allowed to open
small accounts with banks; intervals between periodic updating of KYC
documents have also been increased.
But challenges remain, banker say if an account is used for conducting a large
transaction, they sometimes seek additional documents, fearing misuse. This,
however, happens on a case-to-case basis. The entire KYC process becomes
difficult to negotiate when a customer has multiple accounts with different banks.
If the accounts are split with different holders, it becomes even more difficult to
carry out proper background checks. Banks need stronger technology platforms to
weed out these discrepancies, said a senior official of a private bank. Also, in
India, the lack of a unique national identifier is a key issue in implementing KYC
rules.
22

Importance of KYC :
The main objective behind forcing the KYC Norms by bank is to escape from
being used, intentionally or unintentionally by criminal element for illegal
activities such as money laundering etc.
Partial Freezing
Partial Freezing of the accounts means account holder can deposit or accept
money but cannot withdrew or spend means all credits will be allowed and debit
will be restricted.
Account can be Partially Freeze
Before tagging account as a Partial Freeze Account, banks are required to give due
notice of three months, followed by the reminder of three month i.e. banks should
partially freeze account only after the period of 6 months is over.
Revive the Partial Freeze account
Account holder can receive partially freeze account by furnishing the required
documents. In case, partially freeze account remains non KYC compliant account
after 6 month of imposing initial partial freezing banks may disallow all debit and
credits from/to the accounts, making then inoperative. Further, the power to close
such inoperative accounts lies with the banks
Process to submit KYC documents to the bank.
In case customer have changed the address or have received notice from bank to
submit a fresh copy of KYC, you can simply provide a self-certified copy of the
document either by mail or post.
Physical presence of the account of the account holder is required only in special
cases.
STANDARDS
The objective of KYC guidelines is to prevent banks from being used, intentionally
or unintentionally, by criminal element for money laundering activities. Related
procedures also enable banks to better understand their customer and their financial
dealings. This helps them manage their customer and their financial dealings. This
helps them manage their risks prudently. Banks usually frame their KYC policies
incorporating the following four key elements:
Customer policy;
Customer identification procedures;
Monitoring of transactions; and
Risk management.
23

TYPICAL CONTROLS
KYC controls typically include the following;
Collection and analysis of basic identity information (referred to in US
regulation and practice as a Customer Identification Program or CIP)
Name matching against list of known parties (such as politically exposed
person or PEP)
Determination of the customers risk in terms of propensity to commit
money laundering, terrorist finance, or identity theft.
Creation of an expectation of a customers transactional behavior.
Monitoring of a customers transactions against expected behavior and
recorded profile as well as that of the customers peers.
LAWS BY COUNTRY
INDIA: The Reserve Bank of India introduced KYC guidelines for all banks in
2002. In 2004, RBI directed all banks to ensure that they are fully compliant
with the KYC provisions before December 31, 2015.
ENHANCED DUE DILIGENCE :
Enhanced due diligence (EDD) is a more detail standard required for large
customer and transactions. The USA PATRIOT Act dictates that institutions shall
establish appropriate, specific, and where necessary, enhanced, due diligence
policies, procedure, and controls that are reasonably designed to detect and report
instances of money laundering through those accounts. US regulation required
that EDD measures are applied to account to account types such as Private
banking, correspondent account, and offshore banking institutions. Because
regulatory definitions are neither globally consistent nor prescriptive, financial
institutions are at risk of being held to differing standards dependent upon their
jurisdiction and regulatory environment. An article published by Peter Warrick in
the July 2006 edition of ACAMS today (Association of certified Anti-money
Laundering Specialists) suggests the following: A rigorous and robust process of
investigation over and above KYC) procedures, that seeks with reasonable
assurance to verify and validate the customers identity; understand and test the
customers profile, business and account activity; identify relevant adverse
information and risk; assess the potential for money laundering and / or terrorist
financing to support actionable decision to mitigate against financial, regulatory
and reputation risk and ensure regulatory compliance.

ELECTRONIC KNOW YOUR CUSTOMER

24

HDFC Bank has created buzz in the recent times as it introduced the e-KYC
(Electronic Know Your Customer) norms in collaboration with National Payments
Corporation in all of the branches. HDFC also claimed that the bank is all set to
install biometric reader for scanning fingerprint to make the process even easier.
e-KYC could be defined as a procedure that would enable a customer to walk in to
the bank with an aadhaar number and open an account by only getting his
fingerprint scanned. With the help of Unique Identification Authority of India
(UIDAI), banks system will pull out all data of the customer that is stored online
which includes name, address, age, and other relevant data necessary and it will
also save a copy of the KYC document that remain stored in UIDAIs servers. The
bank will only print out the account opening from with all the details of the
customer already in it.

Before HDFC, Axis bank had launched e-KYC using Visas connectivity along
with the UIDAI. With the e-KYC facilities, it will become easy for the customer to
open accounts without any data entry. Moreover, the entire matter will become
paperless as a soft copy of all the necessary documents will be saved in the banks
systems. Banks are also coming up with the insta-account facilities which help the
customers get their account opened within no time and also get them the whole
account kit- cheque book, debit card and PIN number across the counter.
However, it is not just opening bank accounts; it has become easy to buy insurance
policies with e-KYC. The Insurance Regulatory and Development Authority
25

(IRDA) confirmed it recently that the e-KYC services that are stored in the Unique
Identification Authority of India (UIDAI) would be considered acceptable by the
insurance process. Aadhaar card has become the sole document fir customer
identification as that contains all the necessary details for the insurance giants
across the nation are in the process of updating their system to e-KYC.
Be it opening banking accounts or buying insurance policies, as the e-KYC
becomes mandatory, the complete documentation procedure become faster, which
eventually helps the banks, insurers, customers and policy holders. Apart from that,
the procedure is entirely paperless and it also takes the least turnaround time for
the insurance companies and the banks, which eventually makes the service better.
With time, as e-KYC become compulsory everywhere in the banking and the
insurance scenario all forms will be in the electronic from and there will be
absolutely no physical documents.

Re KYC Bills
The term Re KYC Bills means Re submitting
KYC documents are often request by banks when an
accounts is being held inactive for a longer period or
when there are too many or too less changes in the
deposits or when the account is very old. That is
depending in the risk category of the customer; banks
might ask to redo KYC formalities so that they can
have their database updated with the latest details of
the customers. And banks do this, in order to comply
with the RBI guidelines and this is a very common process.
So if you think that carrying out too many transactions from different sources or
moves to a different city or country and keep account inactive then resubmission of
KYC documents would be required. Banks will spend you notification via E- mail
or letter to re submit KYC documents.
26

Objective of asking for re- KYC benefits both the entity via banks and
customers as follows:
Prevent money laundering.
Any type of fraud or irregularity
Safeguard financial transactions of the persons
Re- KYC declaration form and mandatory documents:
Re KYC form is very simple which can be obtained from the banks or by
scanning the documents and uploading the same on the banks website with the
help of digital banking. Banks can also send the form to their customers home,
and here are the common details required to be filled in the banks:

Customer ID
Account Number
Personal details and address Name , address , contact number
Occupation and income details whether salaried , business , self employed,
housewife , students , company name , source of income , residence type ,
gross annual income , nature of business
Address and identity proof. self attested
You also need to affix one photograph and sign the form
If the account is hold jointly, then each individual has to fill the form .

If bank sends an alert for re- submission for KYC documents then customer will
have to submit a self-attested copy of your Permanent Account Number (PAN),
self- attested proof of address, passport size photograph and a KYC update form
(re-KYC form). Customer can get this form at their bank branch or banks website.

27

Once the customer completes all the mandatory documentations and other details
banks will verify the same and take minimum 7 working days for processing
request.

Redo KYC if bank asks for it; its for customers own good.
If users are an HDFC Bank LTD customer, they may get an alert to re-fulfill their
Know-your-client (KYC) requirements. Most banks routinely ask for resubmission of KYC details from certain customers, whose account shows a drastic
change in deposits or no change for a long time, among other things.
But HDFC Banks move is being seen as following the recent allegations of money
laundering by compromising on KYC norms. The news website, Cobrapost.com,
named three banks in its investigation including HDFC Bank. During a conference
call with reporters after HDFC Bank declared its results for the quarter, Paresh
Sukthankar, Executive Director, HDFC Bank LTD, said: re-KYC has been a
requirement for a few years now. Some customers do it, some dont. We cant deny
that there is an increased focus now and is the result of the environment that we are
in right now
Some other banks are expected to follow suit in view of the recent news of money
laundering and increasing incidents of fraud.
Banks ask for KYC compliance again
According to RBI, bank has to update customer details based on their risk category.
This means that a bank can ask to customer to re-submit KYC documents in case
the transaction from the account is not consistent or there is drastic change in
deposit or simply if there is no change in the customer details for certain period.
Says R.K. Bansal, executive director, IDBI Bank Ltd, the process of resubmission and updating KYC documents is a regular process as advised by RBI.
Normally banks create a customer profile based on detail such as financial status,
location, purpose for opening the account, the expected origin of the funds,
employment and sources of wealth. When the transactions in the account are
observed to be not consistent with the profile, the banks ask for KYC documents.

How to get re-KYC done for bank accounts

28

Banks need to periodically update customer identification document in their

records of account holders to adhere to the KYC norms issued by the Reserve
Bank of India. This can be triggered by a drastic change in the customers profile
or nature of transactions in the account and depends upon the risk profile of the
account holder.
In this regard, in addition to the KYC carried out at the time of account opening,
the account holder may be required to undergo re-KYC and submit relevant
documents periodically.
Enquiry with the bank
It is in the interest of good housekeeping of financial records to check the status of
the accounts held with a bank and submits necessary KYC documents as when
required. Banks also keep sending reminders to customer regarding re- submission
of KYC documents.
Re-KYC declaration form
Customers are required to fill a re-KYC form. Personal information and contact
details need to be providing in the form. The form has to be signed by the account
holder.

Documents
The customer needs to submit self attested copies of acceptable residential address
proof and identity proof. Submission of documents and KYC form can be done
physically by visiting the bank branch or by scanning the documents and uploading
the same on the Net banking portal.

Processing of request
Once the documents have been submitted physically or online, the banks usually
take about 10 working days to process the request if the documents are found to be
in order.
29

Point to note
- In case of joint account holder, the re-KYC declaration form is required to
be submitted for each individual holder.
- If Aadhaar number has not been updated already in the bank records, a selfattested copy of the Aadhaar card also needs to be provided.

Although failure in re submitting KYC documents does not mean that account
will be sealed or closed. There is as such no guideline by the RBI. Many banks viz.
ICICI Bank, HDFC Bank, Axis Bank, Indusland Bank and Other have started
asking their customers to redo KYC.

FIXED DEPOSIT
A Fixed deposit (FD) is a financial instrument provide by banks which provides
investor with a higher rate of interest than a regular saving account, until the given
the maturity date. It may or may not require the creation of a separate account. It is
known as a term deposit or time deposit in Canada, Australia, New Zealand, and
the US, and as a bond in the United Kingdom and India. They are considered to be
very safe investments. Term deposits in India and Pakistan is used to denote a large
class of investment with varying levels of liquidity. The defining criteria for a fixed
deposit is that the money cannot be withdraw from the FD as compare to recurring
deposit or a demand deposit before maturity. Some banks may offer additional
services to FD holder such as loans against FD certificates at competitive interest
rates. Its important to note that banks may offer lesser interest rates under
uncertain economic conditions. The interest rate varies between 4 and 11 percent.
The tenure of an investment are safer than Post Office Schemes as they are covered
by the Deposit Insurance and Credit Guarantee Corporation (DICGC). However,
DICGC guarantee amount up to1,00,000 (about) per depositor per bank. They also
offer income tax and wealth tax benefits.
30

Fixed deposits are a high- interest- yielding team deposit and offered by banks in
India. The most popular form of term deposits are fixed Deposits, while other
forms of term Deposits are Recurring Deposit and Flexi Fixed Deposits (the latter
is actually a combination of Demand Deposit and Fixed Deposit).
To compensate for the low liquidity, FDs offer higher rate of interest than saving
accounts. The longest permissible term for FDs is 10 years. Generally, the longer
the term of deposit, higher is the rate of interest but a bank may offer lower rate of
interest for a longer period if it expected interest rate, at which the Central Bank of
nation lend to bank (repo rate), will dip in the future.
Usually in India the interest on FDs is paid every three months from the date of
deposit. (e.g. if a/c was opened on 15th Feb., first interest installment would be paid
on 15 May). The interest is credited to the customers Savings bank account or sent
to them by cheque. This is a Simple FD. The customer may choose to have the
interest reinvested in the FD account. In this case, the deposit is called the
Cumulative FD or compound interest FD. For such deposits, the interest is paid
with the invested amount on maturity of the deposit at the end of the term.
Although banks can refuse to repay FDs before the expiry of the deposit, they
generally dont. This is known as a premature withdrawal. In such case, interest is
paid at the rate application at the time of withdrawal. For example, a deposit is
made for 5 year at 8%, but is withdrawn after 2 years. If the rate application on the
date of deposit for 2 year is 5 percent, the interest will be paid at 5 percent. Banks
can charge a penalty for premature withdrawal.
Banks issue a separate receipt for every FD because each deposit is treated as a
distinc6t contract. This receipt is known as the Fixed Deposit Receipt (FDR) that
has to be surrendered to the bank at the time of renewal or encashment.
Many banks offer the facility of automatic renewal of FDs where the customer
does give new instruction for the matured deposit. On the date of maturity, such
deposits are renewed for a similar term as that of the original deposit at the rate
prevailing on the date of renewal.
Income tax regulations required that FD maturity proceeds exceeding Rs 20,000
not to be paid in cash. Repayment of such and longer deposit has to either by A/c
payee crossed cheque in the name of the customer or by credit to the saving bank
a/c of the customer.
Nowadays, bank gives the facility of Flexi or seep in FD, where in customer can
withdraw money through ATM, through cheque or through funds transfer from
their FD account. In such case, whatever interest is accrued on the amount they
have withdrawn will be credited to their savings account (the account that has been
linked to customer FD) and the balance amount will automatically be converted in
31

customer new FD. This system helps customer in getting their funds from their FD
account at the times of emergency without wasting time.

BENEFITS OF FD:
1. It encourages a savings habit as the money you deposit needs to be in the
account for a period of time without you making any withdrawal.
2. Investing in a fixed deposit account earns you a higher interest rate than
depositing your money in a savings account.
3. You are assured of returns for your investment
4. The account helps to act as a fall back for your business in the event of a cash
flow squeeze or can be used to meet your future cash requirements.
5. Interest is payable at maturity; annually or monthly depending on the term you
chose or you could use the money to buy assets if you want.
6. You get to choose how long you want to invest your money in a fixed deposit
account ranging from 30 days to ten years.
7. You can choose to have more than one fixed deposit account if you want to save
for different goals.

POINT TO NOTE:
Customer can avail loans against FDs up to 80 to 90 percent of the value of
deposits. The rate of interest on the loan could be 1 to 2 percent over the rate
offered on the deposit.
Residents of India can open these accounts for a minimum of 3 months.

TAXABILITY
Tax is deducted by the banks on FDs if interest paid to a customer at any bank
exceeds Rs 10,000 in a financial year. This is applicable to both interest payable or
32

reinvested per customer. This is called Tax deducted at source and is presently
fixed at 10% of the interest. With CBS banks can tally FD holding of a customer
across various branches and TDS is applied if interest exceeds Rs 10,000. Banks
issues From 16 Every quarter to the customer, as a receipt for Tax Deducted at
Source.
However, tax on interest from fixed deposits is not 10%;it is applicable at the rate
of tax slab of the deposit holder. If any tax on fixed deposit interest is due after
TDS, the holders are expected to declare it in income tax returns and pay it by
himself.
If the total income for a year does not fall within the overall taxable limits,
customer can submit a form 15 G below 60 year of age) or Form 15 H (above 60
years of age) to the bank when starting the FD and at the start of every financial
year to avoid TDS.

BANK FD RATES OF INTREST VARY WITH CENTARL BANK POLICY

In certain microeconomic condition (particularly during periods of high inflation) a
Central Bank adopts a tight monetary policy, that is, it hikes the interest rates at
which it lends to banks (repo rate). Under such condition, banks also hike both
their lending (i.e. loan) as well as deposit (FD) rates. Under such condition of high
FD rates, FDs become an attractive investment avenue as they offer good returns
and are almost completely secure with no risk. These can be checked with the
excess rates in the country

DIFFERENCE BETWEEN FIXED DEPOSIT (FD) AND

RECURRING DEPOSIT (RD)

33

When it comes to saving money in deposit- scheme, often people get confused as
to what saving-instrument to choose? Should they go for Fixed Deposit (FD) or
should they park their money in Recurring Deposit (RD)?
FD is suitable for someone, who has some lump-sum amount and wants to invest it
for a specific time interval. Interest rate depends upon the maturity period, longer
the period greater the interest rate. Customer can opt either for periodical
returns, say monthly/quarterly/half yearly or annually or simply opt to get the
amount with accumulated interest at the end of the prescribed term. Premature
and partial withdrawal facilities are available, but not without some penalty,
those customers have to pay at the time of withdrawal. This penalty amount varies
from banks, so customer may want to check this out with individual banks, before
opting for opening an FD (FIXED DEPOSIT). There will be a TDS (Tax
Deducted at Source) applicable to maturity amount, if the interest paid on deposit
exceeds Rs. 10,000/- per year. This is fixed by government to be 10%of interest
amount plus 3% Education Cess.
But if customer dont have a lump-sum amount, that they could possibly invest in
one-shot, FD (FIXED DEPOSIT) is a no-no. But if customer have a regular
income every month (say a salaried individual) and want to save a certain fixed
amount for a specific time interval, then RD (RECURRING DEPOSIT) is better
option for customer. But if they need to be sure of the fact that they will be able to
pay that fixed amount every month. One of the major drawbacks with Recurring
Deposit is not- flexibility of the amount-of-deposit. Partial payment is not allowed
nor can they pay more than the decided amount. Here again, FD (FIXED
DEPOSIT) generally gives more return, when compare to RD (RECURRING
DEPOSIT). Premature withdrawal is applicable but some penalty they have to
pay. Partial withdrawal is not applicable. As per Income Tax Rules, there is no
TDS (Tax Deducted at Source) applicable on RD (Recurring Deposits).
Both of them have their pros and cons and it solely depends on customer
requirement and their financial planning, to identify which one is better for them.

UFD (UNIQUE FIXED DEPOSIT)

UFD stands for unique fixed deposit. When customer booking his or her first FD
or RD with the bank is considered as UFD. It is a tool to engage customer with the
34

branch. His or her loyalty increase with the bank if customer is availing bunch of
product rather than isolated single product. It increases customer stickiness with
the bank. Being the custodian of customers money it is our prime duty of bear to
maximize the return on money kept by customer with the bank in good faith. FD
and RD is a tool through which customer can earn high rate of return thus bringing
delight to the customer.

OBJECTIVES OF UNIQUE FIXED DEPOSITS

Through UFD and RD bank generates some percentage of profits.
UFD and RD have to go for credit rating.
CREDIT RATING is a measure of the company ability to pay the interest
as well as principal to its investors.
Liquidity of the product is defined as the lock in period of a company
deposits. It simply means how easily you can withdraw your money.
Most of the deposit schemes have an initial lock in period of 3 to 6 months.
And the interest rate earned may be withdrawal on maturity.
Interest rate generally the interest rate of the unique fixed deposit offered
by company are higher than regular banks.
Special benefits- UFD offers special rate of interest for the employees of that
company, shareholders, senior citizens etc.
Term- the term of UFD are generally less. The term as regulated by RBI
should be minimum 12 months and maximum 5 years.

ANALYSIS

PRODUCTS OF BANK
SAVING & CURRENT

Frequency
35

Percentage

FD
RD
CREDIT CARD
NET BANKING
MOBILE BANKING
INSURANCE
DEMAT
BSBDA
TOTAL

12
16
8
18
20
15
3
8
100

12%
16%
8%
18%
20%
15%
3%
8%
100%

TYPES OF CUSTOMERS IN BANK

TYPE OF

NO OF

MOVED TO
36

STILL USING

CUSTOMER

CUSTOMERS

LITERATE
ILLITERATE
TOTAL

65
35
100

DIGITALIZATION TRADITIONAL
PROCESS
25
40
5
30

From, the above graph we can assume that out of 100 sample 65% are
literate customers from those 25%have moved towards digitalization
and 40% are still using same traditional process and among 35% of the
illiterate only 5% and 30% respectively.

RATIO OF CUSTOMER USING SINGLE AND MORE THAN

ONE PRODUCTS IN BANK
RATIO OF

NO OF

USING SINGLE
37

USING MORE

CUSTOMER

CUSTOMERS

PRODUCTS

SATISFIED
UNSATISFIED
TOTAL

50
50
100

15
45

THAN ONE
PRODUCTS
35
5

From the above graph we can assume that among sample of 100
customers 50% are satisfied customers and 50% are unsatisfied
customers .Among satisfied customers 15% are using single products in
banks and 35%are using more than one product. And among unsatisfied
customers 45% using single products and 5%are using more than one.

QUESTIONNAIRE
PERSONAL INFORMATION
1. Name:
2. Gender:
(a) Male

(b) Female
38

3. Marital status:
(a) Married
4. Age:
(a) 20-30
(c) 40-50
(e) 60-70
5. Occupation:
(a) Government
(c) Business
(e) Others
6. Annual Income:
(a) Below 2 lakh
(c) 4- 6 lakh

(b) Unmarried
(b) 30-40
(d) 50-60
(b) Private Service
(d) NRIs
(b) 2-4 lakh
(d) 6-8 lakh

1. Are you aware of digital banking?

(a) Yes

(b) No

2. From where you come to know about digital banking?

39

(a)From bank
(b) consultant
(c) Print media
(d) Friends
(e) Other.
3. Factor that influence you to move toward Digital Banking?
(a) Attractiveness
(b) Time Saving
(c) Easy transaction
(d) utility Bill Payment
(e) All of the above
4. Reason of choosing FD because of high rate of interest?
(a) Strongly agree
(b) Agree
(c) Neutral
(d) Disagree
(e) Strongly disagree
5. Do you go for regular updation of KYC form?
(a)Yes
(b) No
6. Why is KYC updation needed?
(a) Prevent money laundering
(b) Safeguard financial transaction of the person
(c) Current update of customer profile
(d) Any type of fraud or irregularity (e) All of the above

DATA INTERPRETATION AND ANALYSIS

(A) Gender:
GENDER
FREQUENCY

PERCENT
40

Valid

Cumulative

VALID

MALE

37

74.0

Percent
74.00

FEMALE
TOTAL

13
50

26.0
100.0

26.0
100.0

Percent
74.0
100.0

GENDER
INTERPRETATION: The above graph shows that out of 50 samples, 74% of the
respondents are male and the rest 26% are female.
(B) Marital Status:
MARITAL STATUS
FREQUENCY
VALID

MARRIED

33

66.0

Valid
Percent
66.0

UNMARRIED
TOTAL

17
50

34.0
100.0

34.0
100.0

41

PERCENT

Cumulative
Percent
66.0
100.0

MARITAL STATUS
INTERPRETATION: From a sample of 50, 66% of the respondents are
unmarried and the rest 34% are married.

(C) Age:
AGE
FREQUENCY
VALID

20-30

12.0

Valid
Percent
12.0

30-40
40-50
50-60

14
17
11

28.0
34.0
22.0

28.0
34.0
22.0

40.0
74.0
96.0

60-70

4.0

4.0

100.0

TOTAL

50

100.0

100.0

42

PERCENT

Cumulative
Percent
12.0

AGE
INTERPRETATION: The graph shows that majority of the sample respondents were
in the age group of 40-50 yrs ie,34%, 12% were in the age group of 20-30 yrs & 28%
of them were 30-40 yrs, 22% were in the age group of 50-60 yrs and 4% were in the
age group of 60-70 yrs.
(d)Occupation:
OCCUPTION
FREQUENCY PERCENT
VALID

Government

18

36.0

Valid
Percent
36.0

Private services
Business
NRIs

14
11
3

28.0
22.0
6.0

28.0
22.0
6.0

64.0
86.0
92.0

Others

8.0

8.0

100.0

TOTAL

50

100.0

100.0

43

Cumulative
Percent
36.0

OCCUPTION
INTERPRETATION: The graph shows that majority of the respondents are working
in the Government sector i.e.36%, 28% of them are engaged in Private services, 22% of
them are business field, 6% of them are NRIs and 8% of them are engaged in other
works.
(e)Annual Income:
ANNUAL INCOME
FREQUENCY PERCENT
VALID

Below 2 lakh

19

38.0

Valid
Percent
38.0

2-4 lakh
4-6 lakh
6-8 lakh

23
6
2

46.0
12.0
4.0

46.0
12.0
4.0

TOTAL

50

100.0

100.0

44

Cumulative
Percent
38.0
84.0
96.0
100.0

ANNUAL INCOME
INTERPRETATION: The graph shows that 46% of the respondents get a salary
of 2-4 lakhs, 38% of the respondents get a salary below 2 lakhs, and 12% of the
respondents get a salary of 4-6 lakhs and 4% of them above 6-8 lakhs.

1. Are you aware of digital banking?

FREQUENCY PERCENT
VALID

Cumulative Percent

Yes

20

40

40

No
TOTAL

30
50

60
100

100

45

Are you aware of digital banking?

INTERPRETATION: The graph shows that 40% of the respondents are aware of
digital banking and 60% are still not aware.
2. From where you came to know about digital banking?
FREQUENCY PERCENT Cumulative Percent
VALID From banks

12

24

24

Consultants
Print media
Friends

8
15
10

16
30
20

40
70
90

10

100

50

100

Other
TOTAL

46

From where you came to know about digital banking?

INTERPRETATION: The graph shows that 30% of the respondents came to
know from print media 24% from banks 20% from friends16% from consultants
and 10% of from other sources.
3. Factors that influenced you to move towards digital banking?
FREQUENCY PERCENT Cumulative Percent
VALID Attractiveness
Time saving
Easy
transaction
Utility bill
payment
All of the
above
TOTAL

4
8

8
16

12
28

10

20

48

26

52

100

50

100

47

Factors that influenced you to move towards digital banking?

INTERPRETATION: The graph shows that 52% of the respondents get
influenced because all of the above reasons 20% because of the bill payment
system 16% due to easy transaction 8% of the respondents found it time saving and
4% due to its attractiveness.

4. Do you like the services of digital banking?

FREQUENCY PERCENT Cumulative Percent
VALID Strongly
agree
Agree
Neutral
Disagree
Strongly
disagree
TOTAL

10

20

20

15
20
3

30
40
6

50
90
96

100

50

100

48

Do you like the services of digital banking?

INTERPRETATION: The graph shows that 40% of the respondents gave neutral
reaction 30% agree with it 20% of the respondents strongly agree with the question
6% disagreed and 4% strongly disagreed with the services of digital banking.

5. Do you have any RD/FD?

VALID

Yes
No
TOTAL

FREQUENCY PERCENT
30
60
20
40
50
100

Cumulative Percent
40
100

Do you have any RD/FD?

INTERPRETATION: The graph shows that 60% of the respondents have RD/FD
and 40% do not have any RD/FD.

6. You generally like to invest money in?

49

FREQUENCY PERCENT Cumulative Percent

VALID RD

20

40

40

FD
Mutual fund
Insurance

15
5
2

30
10
4

70
80
84

Other

16

100

50

100

TOTAL

You generally like to invest money in?

INTERPRETATION: The graph shows that 40% of the respondents like to
invest money in RD 30% like to invest in FD 10% of the respondents invest money
in mutual fund 4% in insurance sector and 16% in other investment sector.

7. Reason of choosing FD because of high rate of interest?

50

FREQUENCY PERCENT Cumulative Percent

VALID Strongly
agree
Agree
Neutral
Disagree
Strongly
disagree
TOTAL

15

30

30

24
5
4

48
10
8

78
88
96

100

50

100

Reason of choosing FD because of high rate of interest?

INTERPRETATION: The graph shows that 48% of the respondents agreed with
the question 30% of them strongly agreed 10% gave neutral reaction 8% disagreed
and 4% strongly disagreed.

8. Do you go for regular updation of KYC forms?

VALID

Yes
No
TOTAL

FREQUENCY PERCENT Cumulative Percent

40
80
80
10
20
100
50
100

51

Do you go for regular updation of KYC forms?

INTERPRETATION: The graph shows that 80% of the respondents had said yes
and 20 % of the respondents replied no.

9. What are the benefits of KYC form updation?

VALI Prevent money

D
laundering
Safeguard financial
transaction of the
person
Current updation of
customer profile
Any type of fraud or
irregularity
All of the above
TOTAL

FREQUEN
CY
5

PERCE
NT
10

Cumulative
Percent
10

12

22

10

32

40

30

60

100

50

100

52

What are the benefits of KYC form updation?

INTERPRETATION: The graph shows that 60% of the respondents replied all of
the above, 10% Prevent money laundering other 10% Current updation of
customer profile, 12% due to Safeguard financial transaction of the person and 8%
of respondents replied to prevent any type of fraud.

10. Are the customers satisfied by the services provided by the

HDFC bank?
FREQUENCY PERCENT Cumulative Percent
VALID Strongly
agree
Agree
Neutral
Disagree
Strongly
disagree
TOTAL

10

20

20

25
2

50
24
4

70
94
98

100

50

100

12

53

Are the customers satisfied by the services provided by the HDFC

bank?
INTERPRETATION: The graph shows that 50% of the respondents agreed with
the question 24% gave neutral reaction 20% strongly agreed with it 4% disagreed
and 2% strongly disagreed.

54

RESEARCH REVIEW
The financial institutions can scarcely be regarded as a form of innovation.
Certainly its tradition virtue and recognized ways of doing business have been a
source of pleasure to the sector. There are different types of financial
institutions. Generally speaking, financial institutions ranked by their capital or
assets . Over the past few year a healthy investment has been made in the
banking sector . As the financial institutions have a great impact on economy of
any country . This sector contributes share in significant gross domestic product
(GDP). These financial institutions are offering various types of services
besides conventional banking services, such as accounts & deposits , business
loans , corporate banking , house financing and car leasing facilities.
Consequently the performance of banking is increasing not only in urban
centers but also in rural areas. Evolution in human culture has been
consummated by the development of new technologies .
A financial institution has a lot of customers around the country ; therefore they
need their bank online so that they can easily access it from anywhere. Banking
industry is also one of the influenced industries adopting technologies which are
helpful in providing better services to customers . Quality of service is
improved is technological innovations. Online banking is time - saving. About
55

20% of retail and 30 % of businessmen will use some shape of internet banking
facility within the next five year . There will be huge acceptance of online
banking with the passage of time with growing awareness and education . A
great many people are shifting to online banking and are readily accepting the
usefulness of this country. Online banking services allows customers to
manage their account from any place at any time for minimum cost.

CONCLUSION

The above analysis and study concludes that majority of the customer are
accepting Digital Banking culture because of many favorable factor. Study
concluded that usefulness, security and privacy are the main perusing factor to
accept Digital Banking.
The other factor is amount of information which is provided to the customer
through advertisement, print media, and electronic media.
About unique fixed deposit schemes we can say they are always a preferred
investment option in INDIA. And if you want to invest in company unique
fixed deposits, then it is always better to put your money in few good schemes
instead of investing the whole amount in a single one. This will help you to
become an intelligent investor and differentiate from an average one. Company
UFD schemes are mostly suitable for those investors who are comfortable with
taking same amount of risk.
Digital banking is getting appreciation in different part of country due to which
many number of customer are shifted from traditional banking system to digital
banking system. Lots of customer think that it is not easy to access digital
banking process and they also think through this process their money will not
be secured but as day by day they are getting aware to this and they moving
toward digitalization.

56

RECOMMENDATION
A.

Recommendation to the customers: Do not respond to email from Home requesting account information,
account verification, such as user name, password, PIN code and other
information.
If you are go for Digital banking, email always logoff from digital banking
session checking email.
Never access digital banking brokerage and other financial services from
computer at internet caf and public library etc. For example:- Alpha
numeric key ft0p3fraUd.

B. Recommendation to the bank: Create a strong password that will be easy to remember without writing
down alpha numeric characters.
Install commercial anti-virus and desktop firewall software on all your
computer systems. Free anti-virus software may not provide adequate
protection against the latest threats compared with an industry standard
product.
Never leave a computer unattended while using any online banking or
investing service.

57

BIBLIOGRAPHY
REFERENCE:
Marketing Management by Philip Kotler.
Research Methodology, C.R Kothari, 3rd edition.
Books, Journals, Magazines, Articles, Newspapers, etc.
WEBSITE
www.hdfcbank.com
www.allonemoney.com
www.quickmba.com
www.banknext.com

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