Kotak Mahindra Bank (PRATEEK JAIN FINAL) 1586

8/19/2019 Kotak Mahindra Bank (PRATEEK JAIN FINAL) 1586

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A PROJECT REPORT ON STUDY OF

BRANCHLESS BANKING

OF

KOTAK MAHINDRA BANK

PROJECT REPORT

Submitted to

M.D.U ROHTAK

In partial fulfillment of the requirement for the Award of degree of

MASTERS OF BUSINESS ADMINISTRATION

Submitted By:

PRATEEK JAIN

14-MBA-1060

Project Guide: Faculty Guide:

Mr. Varun Jain Misss Megha Virmani

KOTAK MAHINDRA BANK


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ACKNOWLEDGEMENT

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

to work with them. I am especially thankful to Mr. SHEHZAD SADAR (Branch Manager) and

Mr. VARUN JAIN (Branch Operation Manager) for providing me opportunity, knowledge and

all the vital information on which this project report stands. The support provided to me during

my project was overwhelming and the work environment was conductive to work.

Sometimes it is not easy to express your emotions in words especially when you have to say

thanks your parents for their support with which this project would not have been completed

successfully.

I would like to thank many others who have been associated with work directly or indirectly.

PRATEEK JAIN


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PREFACE

For a management student training plays an important role during her study.Training provides a

croporate or real world platfrom to learn practically. MBA degree without any training or corporate

world experience is just like without oxygen.so practical knowledge provide a great learning

experience about management concept and its applications.

This training provides us an opportunity tyo know the current market.To know the current market

situations,prevailing competitions,behavioral environment of different people etc.it provides us a

platform whereby we can apply our theoretical knowledge and we can solve many practical

problems.And hence it can help us to be a successful manager in future.

Thanks to all those who directly or indirectly help me to complete this project within a short time

limit.for preparation of this report I would like to thanks to faculty members of our college and staff

members of KOTAK MAHINDRA BANK .

PRATEEK JAIN


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TABLE OF CONTENTS

INTRODUCTION

INDUSTRY PROFILE

COMPANY PROFILE

BRANCHLESS BANKING FACILITY OF KOTAK

LITREATURE REVIEW

OBJECTIVES

RESEARCH METHODOLOGY

DATA ANALYSIS & INTERPRETATION

CONCLUSIONS

RECOMMENDATIONS

LIMITATIONS

ANNEXURE


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INTRODUCTION

Branchless banking is a distribution channel strategy used for delivering financial

services without relying on bank branches. While the strategy may complement an existing bank

branch network for giving customers a broader range of channels through which they can access

financial services, branchless banking can also be used as a separate channel strategy that

entirely forgoes bank branches. Examples of branchless banking technologies are

the Internet, automated teller machines (ATMs), POS devices, EFTPOS devices and mobile

phones. Each of these technologies serve to deliver a set of banking services and are part of

distribution channels that may be used either separately or in conjunction to form the overall

distribution channel strategy.

HISTORY

United Kingdom is an early pioneer of Branchless banking services.

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

First direct accounts are operated solely by via the internet, post, or telephone and they do

not themselves operate any retail branches (although HSBC branches can be used to make

deposits) while at the same time offering the full range of banking services.

PERMISSABLE MODELS OF BRANCHLESS BANKING

One-to-one(1-1) Model

One-to-many(1-Many) Model

Many to Many Model


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ONE TO ONE MODEL (1-1)

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

As a consequence, the service may only be offered to the customers using mobile

connection of specific Telco

The example of this is easy paisa

It may be noted that one-one model does not necessarily require exclusivity. Therefore one

bank can have several one-one Telco‟s with many Telcos,or alternately one Telco can have

several one to one arrangements with many banks.

ADVANTAGES

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

marketing

DISADVANTAGES

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


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ONE TO MANY MODEL

In this model a bank offers mobile phone bank services to customers using mobile

connection of any Telco

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

connection

The example of this model is UBM Omni.

ADVANTAGES

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

marketing

DISADVANTAGES

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


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MANY-TO-MANY MODEL

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

bankable customers

Under this system central transaction processing system(TPS) is necessities, which may be

controlled by an FI or a group of FI or a group of service provider under proper agency

agreement with bank

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

ATM of any other Bank.

TYPES OF BRANCHLESS BANKING

Net banking

Mobile banking

Sms banking

Phone banking

ATM Services


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NET BANKING

Net banking is an electronic payment system that enables customers of financial institution to

conduct financial transactions on website operated by the intuition such as retail bank, virtual

bank, credit union or building society. Net banking is also refferd as online banking,e-

banking,virtual banking.

MOBILE BANKING

Mobile banking is a term used to refer to systems that allow customers of a financial

institution to conduct a number of financial transactions through a mobile device such as

a mobile phone or tablet.

SMS BANKING

SMS banking is a type of mobile banking, a technology-enabled service offering from banks to

its customers, permitting them to operate selected banking services over their mobile

phones using Sms messaging. It consists of pull and push messages.

PHONE BANKING

Phone banking is a service provided by a bank or other financial institution that

enables customers to perform a range of financial transactions over the telephone, without the

need to visit a bank branch or automated teller machine. Phone banking times are usually longer

than branch opening times, and some financial institutions offer the service on a 24-hour basis.


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ATM SERVICE

ATM stands for automated teller machine. A visit to an ATM today can help you accomplish

myriad value-added transaction services like utility payments, pre-paid mobile re-charge, credit

card payments, tax payments and much more. Electricity bills, telephone bills, insurance

premiums etc. can be paid through your ATM without even visiting to bank. You just need to go

to your nearest ATM.

Some of the distinctive features of branchless banking are:-

It removes tradional geographic barriers as it could reach out to customers of different

countries/ legal jurisdiction.

It has added a new dimension to different kinds of risks traditionally associated with

banking, heightening some of them and throwing new risk control challenges.

A new form of competition has emerged both from the existing players and new players

of the market who are not strictly banks.

Security of banking transactions, validity of electric contract, customers privacy‟s etc.

which have all long being concerns of both bankers and supervisors have assumed

different dimensions give the Branchless banking is the public domain, not subject to

control by any single authority of group of users.


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THE BANKING SECTOR IN INDIA

INDUSTRY PROFILE

PORTER’S 5 FORCE ANALYSIS


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INDUSTRY PROFILE

Banking in India originated in the first decade of 18th century. The general bank of India comes

into existence in 1786. This was followed by bank of Hindustan. Both of these are now defunct.

The oldest bank in existence in India is the state banks of India being established as “The Bank

of Bengal” in calculate in June 1806. A couple of decades later, foreign banks like credit

Lyonnais started their Calcutta operations in 1850s. At that point of time, Calcutta was most

active trading port, mainly due to the trade of British Empire, and due to which banking activity

took roots there and prospered. The first fully Indian owned bank was the Allahabad Bank,

which was established in 1865. By the 1990s the market expanded with the establishment of

banks such as Punjab national bank, in 1895 in Lahore and bank of India, in 1906, in Mumbai

both of which are founded under private ownership. The reserve bank of India formally took onthe responsibility of regulating the Indian banking sector from 1935. After the India‟s

independence in 1947, the reserve bank was nationalized and given broad powers. The banking

in India was controlled aid combated by the presidency banks, namely, the bank of Bombay, the

Bank of Bengal, and the bank of madras- which later on merged to form the imperial bank of

India. And the imperial bank of India upon India‟s independence was the rename the state bank

of India. The presidency banks were like the central banks and discharged most old the font tins

of central banks. They were established under charters from the British East India Company. The

exchange banks mostly owned by Europeans, concentrated on financing foreign trade. Indian

joint stock bank were generally capitalized aid lacks the experience and maturity to compete with

the presidency banks, and the exchange banks. There was potential for many new banks as the

economy was growing under this circumstances many Indians came forward to set up banks and

many banks were set up at that time, and a number of them setup around that time continue to

survive and prosper even now like bank of India and corporation Bank, Indian Bank, bank of

Baroda, and Canada Bank.


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b. Growth and present status of Industry:-

By the 1960s the Indian banking industry has become an important to facilitate the

development of the Indian economy. At the same time, it has emerged a large employer, and a

debate has ensued about the possibility to nationalize the banking industry. Indira Gandhi then

the prime minister of India expressed the intention of the GOI in the national conference of all

India congress meeting in the paper entitled “stray thoughts on bank nationalization”

The paper was received with positive enthusiasm. Thereafter he move was swift and sudden, and

the GOI issued an ordinance and nationalized the 14 largest commercial banks with effect on

midnight of July 19, 1969. Jayapraksh Narayan. A national leader of India described the step as

“masterstroke of political sagacity”. Within two weeks of issue of ordinance the parliament

passed the banking companies (Acquisition and transfer of undertaking) Bill and it received the

presidential approval on 9th Aug 1969. A second dose of nationalization of 6 more commercial

banks followed in 1980. The stated reason for nationalization was to give the government more

control of credit delivery. With the second dose of nationalization, the GOI controlled around

91% of banking business of India. After this, until the 1990 s, the nationalize banks grew at a

pace of around 4% closer to the average growth rate of Indian economy.


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c. Future of Industry:-

A healthy banking system is essential for any economy striving to achieve good growth and yet

remain stable in an increasingly global business environment. The Indian banking system, with

one of the largest banking networks in the world, has witnessed a series of reforms over the past

few years like the deregulation of interest rates , dilution of government stake in public sector

banks(PSBs) , and the increased participation of private sector banks. The growth of the retail

financial services sector has been a key development on the market front. Indian banks(both

public and private) have not only been keep to tap the domestic market but also to compete

with global market place. New foreign banks have been equally keen to gain foothold in the

Indian market. The momentum in credit growth has been maintained during 2005-06 due to two

factors: the corporate sector has stepped up its demand for credit to fund its expansion plans;

there also have been a growth in retail banking. However, even as opportunity increase there is

some issues and challenges that Indian banks will have with f they are to emerge successful in

the medium to long term. This report discusses these issues and challenges both internal and

external challenges.


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Consolidation

Consolidation which has been over the counter over last year or so, is likely to gather momentum

in the coming years. Post April 2009, when the restrictions on operations of foreign banks will

go, the banking landscape is expected to change dramatically. Foreign banks which currently

account for 5% of total deposits and 8% of total advances, are devising new business models to

capture Indian market. Their full-fledged entry is expected to transform the business of banking

in many ways, which would be reflected in terms of greater depth of product. Depth in delivery

channels and efficiency in operations. Thus Indian banks have less than three years to

consolidation their position. Despite the stiff resistance from certain segments, consolidation

holds the key to future growth. This view is unpinned by the following:

Owing to greater scale and size, consolidation can help save costs and improveoperational efficiency

Banks will also have to explore different avenues for raising capital to meet norms under

Basel-II

Owing to diversified operations and credit profiles of merging banks, consolidation is

likely to serve as a risk-mitigation exercises as much as a growth engine.

Through there is no confirmation yet, speculative signal arriving from the market point to

the prospect of consolidation involving banks such as union bank of India, bank of India,

Dena bank, Bank of Baroda, bank of Patiala Punjab and Sindh bank Further the case of

strong banks has also gained ground. There is a case being made for mergers between

banks with a distinct geographical presence coming together to leverage their respective

strengths.


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PORTER’S FIVE FORCES ANALYSIS

1. Threat of new Entrants. The average person can‟t come along and start up a business but

these are services, such as internet bill payment, on which entrepreneurs can capitalize.

Banks are fearful of being squeezed out of payments business, because it is good source of

fee-based revenue. Another trend that poses a threat is companies offering other financial

services. What would it take for an insurance company to start offering mortgage and loan

services? Not much. Also when analysing a regional bank, remember that the possibility of a

mega bank entering into market possess a real threat.

2. Power of buyers. The individual doesn‟t pose much of a threat to banking industry, but one

major factor affecting the power of buyer is relatively high switching costs. If a person has

mortgage, car loan, credit card, checking account and mutual funds with one particular bank,

it can be extremely tough for that person to switch to another bank. In an attempt to lure in

customers, banks try to lower the price of switching, but many people would still rather stick

with their current bank. On the other hand, large corporate clients have banks wrapped

around their little fingers. Financial institutions- by offering better exchange rates, more

services, and exposure to foreign capital markets- work extremely hard to get high margin

corporate clients.

3.

Availability of substitutes. As you can probably imagine, they are plenty of substitutes in

banking industry. Banks offer a suite of services over and above taking deposits and lending

money, but whether it is insurance, mutual funds or fixed income securities, chances are

there in non-banking financial services company that can offer similar services. In the

lending side of business, banks are seeing competition rise from uncongenial companies,

sony, general motors and Microsoft all offer preferred financing to customers who buy big

ticket items. If car companies offering 0% financing, why would anyone want to get car loan

from the bank and pay 5-10% interest?


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4. Power of suppliers. The suppliers of capital might not pose a big threat, but the threat of

suppliers luring away human capital does. If a talented individual is working in a smaller

regional bank, there is the chance that person will be enticed away by bigger banks,

investments firm etc.

5. Competitive rivalry. The banking industry is highly competitive. The financial service

industry has been around for hundreds of years, and just around everyone who needs banking

services already has them. Because of this banks must attempt to lure clients away from the

competitor banks. They do this by offering lower financing, preferred rates and on

investment services. The banking sector is in a race to see who can offer both best and fastest

services but also causes banks to offer lower ROA. They can have incentive to take high risk

projects.


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KOTAK MAHINDRA BANK

VISION

THEIR BUISNESS

BRANCHLESS BANKING FACILITES OF BANK


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COMPANY PROFILE

Meaning of Kotak

K – KNOWLEDGE AND COMPETANCE

O – OFFERING NEW AND INNOVATIVE IDEAS

T – TRANSPIRACY

A- APPROCHABLE

K – KEEP IT SIMPLE

Established in 1984, the Kotak Mahindra group has long been one of India‟s most reputed

financial organizations. In Feb 2003, Kotak Mahindra finance ltd. The group‟s flagship company

was given the license to carry on banking business by the Reserve bank of India (RBI). This

approval creates banking history since Kotak Mahindra finance ltd is first company to convert

into a bank. The license authorizing the bank to carry on banking business is obtained from the

RBI in tune with section 22 of banking regulation act 1949.

KMBL was promoted by Mr. Uday.S. Kotak, Kotak and company ltd and Mr. Sidney &

AA.Pinto under the name of Kotak capital management finance Ltd on 21st November 1985 and

obtained a certificate of commencement of business on 11th Feb 1986.

The bank customers have access to entire VISA network of 4500 ATM‟S in India and 800000

ATM‟S worldwide accepted in more than 56000 establishments across India and 10 million

worldwide. The customer also has access to over 800 ATM‟S with sharing arrangements with

other banks.

Year Milestone

1985 Kotak Mahindra Finance Limited commences bill discounting business


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1987 Kotak Mahindra Finance Limited enters leasing and hire purchase business

1990 Starts the auto finance division for financing passenger cars

1991 Launches investment banking business

1992 Enters the funds syndication business

1995

Commenced joint venture with Goldman Sachs Group Inc.

Investment Banking division incorporated into a separate company - Kotak Mahindra

Capital Company

1996

The auto finance business is hived off into a separate company - Kotak Mahindra Prime

Limited (formerly known as Kotak Mahindra Primus Limited).

Kotak Mahindra takes a significant stake in Ford Credit Kotak Mahindra Limited, for

financing Ford vehicles.

1998Launches mutual fund through Kotak Mahindra Asset Management Company

(KMAMC).

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

2001Launches insurance business, partners Old Mutual from South Africa to form Kotak

Mahindra Old Mutual Life Insurance Ltd.

2003

Kotak Mahindra Finance Ltd. (KMFL), the group's flagship company, receives banking

license from the Reserve Bank of India (RBI). With this, KMFL becomes the first non-

banking finance company to be converted into a commercial bank - Kotak Mahindra


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Bank Ltd.

2004 Enters alternate assets business with the launch of a private equity fund.

2005

Kotak Mahindra Group realigns joint venture in Ford Credit; takes 100% ownership of

Kotak Mahindra Prime (formerly known as Kotak Mahindra Primus Limited) and sells its

stake in Ford credit Mahindra to Ford.

2005 Launches a real estate fund

2006Buys out Goldman Sachs' equity stake in Kotak Mahindra Capital Company and Kotak

Securities Ltd.

2008 Launched a Pension Fund under India's National Pension System (NPS)

2009

Kotak Mahindra Bank Ltd. opens a representative office in Dubai

Kotak Mahindra Bank Ltd. becomes anchor investor in Ahmedabad Commodities

Exchange (ACE)

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


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VISION STATEMENT

THE GLOBAL INDIAN FINANCIAL SERVICE BRAND

Our customer will enjoy the benefits of dealing with a global Indian brand that best understands

their needs and delivers customized pragmatic solutions across multiple platforms.

We will be world class Indian financial services group. Our technology and best services will be

bench- marked along international lines while our understanding of customers will be uniquely

Indian. We will be more than a repository of our customers‟ savings. We, the group will be

single window to every financial service in a customer‟s universe.

THE MOST PREFFERD EMPLOYER IN FINANCIAL SERVICES

A culture of empowerment and a spirit of enterprise attract bright minds with an enterprenual

streak to join us and stay with us. Working with a home grown professionally managed

company, which has partnership with international leaders, gives our people perspective that is

universal and unique.

THE MOST TRUSTED FINANCIAL SERVICE COMPANY

We will create an ethos of trust across all our constituents. Adhering to high standard of

compliance and corporate governance will be integral part of business trust.

VALUE CREATION

Value creation other than size alone will be our business driver.


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BOARD OF DIRECTORS

Shankar Acharya Chairman

C Jayaram Joint Managing Director

S Mahendra Dev Director

Amit Desai Director

Asim Ghosh Director

Mark Edwin Newman Additional Director

Uday Kotak Exec. Vice Chairman & Mang Dir

Deepak Gupta Joint Managing Director

KEY GROUP COMPANIES AND THEIR BUISNESS

KOTAK MAHINDRA BANK

The Kotak Mahindra group flagship company, Kotak Mahindra Finance Ltd which are

established in 1985, was converted into bank – Kotak Mahindra bank Ltd in March 2003

becoming the first Indian company to convert into bank. Its banking operations offer a central

platform for customer relationships across group‟s various businesses. The bank has presence in

commercial vehicles, Retail Finance, corporate banking, treasury and Housing Finance.

KOTAK MAHINDRA CAPITAL COMPANY

Kotak Mahindra Capital Company Limited (KMCC) is India‟s premier investment Bank.

KMCC‟S core business area includes Equity Insurances, Merger Acquisition, and structured

Finance and Advisory services.


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KOTAK SECURITIES

Kotak securities limited are one the India‟s largest brokerage and securities distribution houses.

Over the years, Kotak securities has been one of the leading investment broking houses catering

to the needs of both institutional and non- institutional investor categories with presence all over

the country through franchises and coordinators. Kotak securities offers online and offline

services based on well researched expertise and financial products to non- institutional investors.

KOTAK MAHINDRA PRIME

Kotak Mahindra prime limited (KMP) (formally known as Kotak Mahindra primus limited) has

been formed with objective of financing the retail and wholesale trade of passenger and multi

utility vehicles in India. KMP offers customers retail finance for both new as well as used cars

and wholesale finance to dealers in the automobile trade. KMP continues to be among the

leading car finance companies in India.

KOTAK MAHINDRA ASSEST MANAGEMENT COMAPNY

Kotak Mahindra asset management company (KMAMC), a subsidiary of Kotak Mahindra Bank

is the asset manager for Kotak Mahindra Mutual Fund (KMMF). KMMF funds in excess of Rs

20,800 crore and offers scheme catering to investors with varying risk- return profiles.it was the

first fund house in the country to launch a dedicated gilt scheme investing only in government

securities.

KOTAK MAHINDRA OLD MUTUAL LIFE INSURANCE LIMITED

Kotak Mahindra old mutual life insurance limited is joint venture between Kotak Mahindra Bank

Ltd. and old mutual plc. Kotak life insurance help customers to take important financial

decisions at every stage in life by offering them a wide ways of innovative life insurance

products to make them financially independent.


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MERGER WITH ING VYSYA BANK

In 2014, Kotak Bank acquired ING Vysya Bank for a deal valued

at 15000 crore (US$2.3 billion). With the merger, the total human resource count will jump to

almost 40,000 heads and the branch was expected to rise over 1200. Post the merger, ING Groupwhich controlled ING Vysya Bank will own 7% share in Kotak Mahindra Bank.

BANKING ACCOUNTS

There are 3 types of banking accounts:-

Savings Account

Current Account

Term Deposit

SAVINGS ACCOUNT

“Choose from our range of savings accounts”

KOTAK MAHINDRA BANK has got a variety of options of savings accounts to choose from

for its customers according to their convenience and requirement. These savings accounts offer

attractive returns along with personalized banking services at three convenient average quarterly

balances(AQB) levels of Rs 10,000 (KOTAK EDGE SAVINGS ACCOUNT), Rs 20,000

(KOTAK PRO SAVINGS ACCOUNT), 50,000 (KOTAK ACE SAVINGS ACCOUNT) and Rs

1,00,000 (KOTAK MAHINDRA PLATINA ACCOUNT) and we also have Junior account,

Nova account, Grand account and newly introduced Family account.


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KOTAK EDGE ACCOUNT

Features and benefits

1. Average Monthly Balance (AMB) of 10,000.

2. Earn up to 6% interest on your savings account balance.

3. Free access to all domestic VISA ATMs upto 5 transactions per month.

4.

Classic debit card with enhanced daily purchase limit of Rs 1, 50,000 and daily ATM cash

withdrawal limit of Rs 50,000.

5. Free at par-cheque (upto 25 leaves per quarter).

6. Free phone banking, net banking and mobile banking.

7. Free NEFT (only through Net Banking).

8.

Free IMPS.

9. Free cash withdrawals at Kotak bank ATMs.

10. Kotak active money – converts savings account balance above a certain amount into Term

Deposits, so you can earn high rate of interest.

KOTAK PRO ACCOUNT



2.

Earn up to 6% interest on your savings account balance.

3.

Free access to all domestic VISA ATMs.

4. One NMC waived edge savings account for your family member.

5. Platinum International Chip debit card (Free for First year ) with enhanced daily purchase

limit of Rs 2,00,000 and daily ATM cash withdrawal limit of Rs. 50,000

6.

Free at cash pick-up / delivery ( 5 calls per month)

7. Free at Instrumental pick-up / delivery ( 5 calls per month)

8. Free NEFT (through Net Banking).

9. Free cash withdrawals at Kotak bank ATMs

10. Free cash withdrawals at other domestic ATMs.


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11. Free Demand Drafts.

12. 50% Discount on first year Demat AMC



KOTAK ACE ACCOUNT




3.

Extended debit card withdrawal limit of Rs 2 lakh per day through ATM/POS

4.

Free add-on platinum international debit card.

5.

Three NMC waved edge savings accounts for family members.

6. Platinum International Chip debit card with enhanced daily purchase limit of Rs 2,00,000 and

daily ATM cash withdrawal limit of Rs. 2,00,000

7. Free Demand Drafts (Unlimited at Kotak bank locations)

8. Free Home Banking

9.

Free RTGS/NEFT/IMPS10. No annual maintaince charges on your Demat account for the first year

11. Free outstation cheque collection.

12. Free multicity cheque-books (at par cheque books)

13. Avail a discount of 15% on locker rent.

14. Avail a discount of 25% on issuance of Best compliments card (Gift cards)


16.

Free phone banking, net banking and mobile banking.

17.

Kotak active money – converts savings account balance above a certain amount into Term

Deposits, so you can earn high rate of interest


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KOTAK PLATINA ACCOUNT


1. Average Monthly Balance (AMB) of 1, 00,000.


3. Extended debit card withdrawal limit of Rs 2 lakh per day through ATM/POS

4. Free add-on platinum international debit card.

5. Three NMC waved edge savings accounts for family members.

6.

Platinum International Chip debit card with enhanced daily purchase limit of Rs 2,00,000 and

daily ATM cash withdrawal limit of Rs. 2,00,000

7.

Free Demand Drafts (Unlimited at Kotak bank locations)

8. Free Home Banking upto 10 calls per month.

9. Free RTGS/NEFT/IMPS

10. No annual maintaince charges on your Demat account for the first year

11. Free outstation cheque collection.

12. Free multicity cheque-books (at par cheque books)

13. Avail a discount of 25% on locker rent.

14. Avail a discount of 25% on issuance of Best compliments card (Gift cards)


16. Free phone banking, net banking and mobile banking.




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KOTAK KIDS ACCOUNT


1. Earn up to 6% interest p.a. on junior and Guardian savings account balance.

2.

Get rewarded for saving regularly with our introducer offer.

3. NMC waived Junior Account available as a part of bundled offering.

4. Personalised junior debit card.

5. Exclusive discounts and privileges across brands for kids.

KOTAK JIFI SAVER ACCOUNT


1. Earn up to 6% interest p.a. on junior and Guardian savings account balance.

2. Free JIFI platinum chip debit card for first year

3. Loyality club- whether you share or transact, rewards are guaranteed

4.

Earn extra transaction points for all purchase transactions done via Jifi platinum debit card on

kotakrewards.com

5. Hastagbanking-Mobile DTH recharge, account updates, cheque book request and many more

account activities just a tweet away.

6. Keep a track of expenses with a Kotak money watch platinum subscription for 1 year.

7. Free bureau score- get your credit bureau score at one click and avail exciting offers or

lending and transaction products.

8.

Kotak active money – converts savings account balance above a certain amount into TermDeposits, so you can earn high rate of interest.

9. Refer friends& get rewarded

10. No charges for host of online transactions.



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KOTAK NOVA ACCOUNT




3. Free access to all domestic VISA ATMs upto 5 transactions per month.

4. Classic debit card with enhanced daily purchase limit of Rs 1, 50,000 and daily ATM cash

withdrawal limit of Rs 50,000.

5. Free at par-cheque (upto 25 leaves per quarter).

6.

Free phone banking, net banking and mobile banking.

7. Free NEFT (only through Net Banking).

8.

Free IMPS.

9. Free cash withdrawals at Kotak bank ATMs.



KOTAK SILK ACCOUNT (SPECIALLY FOR WOMEN


1. Get rewards on Kotak silk debit card spends- cash back or free movie tickets.

2. Financial privileges- discount on locker rentals, 50% discounts for best compliments card

assurances fee. Avail NMC waiver in your kid‟s junior account (NOVA) through linked RD

or SIP.

3. Hassle- free bill payments: bill pay facility: use our bill pay facility for automatic payments

of your bills through your bank accounts.

4. Safer online transactions: generate a virtual card for online transactions with Kotak gold

netc@card facility.

5. Wealth statement: this facility give you updates of your saving account, current account,

Term Deposits, Demat account and mutual funds, in all single account statements


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6. Travel cashless: use Kotak Mahindra Bank‟s silk debit card and get special offers, privileges,

lifestyle benefits and much more.

7. Home banking service: enjoy services like cash pick-up, cash delivery, cheque/draft delivery,

etc. without stepping out of your home. This service is available in select cities.

KOTAK GRAND SAVING ACCOUNT (55+)


1. Up to 6% interest P.A

2.

Cash back up to Rs 4500

3. Priority service & first aid card

4. Customized cash delivery

5.

SMS to receive a call back

6. SMS alert for 15G/H deposition of the quarter beginning and on new FD‟S Booked.

7. Health care for IHO.




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KOTAK FAMILY SAVING ACCOUNT (NEW)


1. Up to 6% interest P.A



3. Option of maintaining balance in one account or spread across accounts.

4. Dedicated relationship manager for the family.


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CURRENT ACCOUNT

EDGE Current account


1. Average Quarterly Balance (AMB) of Rs 25,000.

2. Free unlimited Demand Drafts payable at Kotak Bank branch locations (up to 25 per

month)

3. Free cheque payment and collection anywhere in India.

4. Free cheque collection through speed clearing.

5. Free home banking service – cash/ Cheque pick-up and delivery, at your call.

6. Free beat service – daily visit to home or office for cheque pickup and deposit in your

account.

7. Free mulity city cheque books at par cheque books (upto 1 per month)

8. Free cheque deposits and withdrawal at home branch locations.

9. Free cash deposit at non branch locations up to Rs 50,000/- per month.

10. Free cash withdrawal at non branch locations up to Rs 25000/- per month.

11.

Dedicated Relationship Manager who will be a single point of contact at the bank.

12. Free NEFT and RTGS at branch and net banking

13. Free Net banking, Mobile banking, SMS banking and Phone banking.

14. Free alerts through E-mail and SMS (charges apply)

15. Business class gold debit card with enhanced daily purchase limit of Rs 1, 75,000 and

daily ATM cash withdrawal limit of Rs 50,000.

16. Kotak credit card access – unsecured overdraft facility up to Rs 15 lac for business

emergencies.17. Cash management services available.

18. Forex live, an internet based foreign exchange trading platform that enables buying and

selling foreign currency for import/export transactions and other remittances.

19. Payment Gateway solution for quick receipt of payments from your customers.

20. Better Forex rates and efficient trade services.


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21. Kotak circle- group multiple current/savings account together. Get flexibility to maintain

minimum group AQB balance in any one or more accounts



PRO Current account


1. Average Quarterly Balance (AMB) of Rs 50,000.

2. Free unlimited Demand Drafts payable at Kotak Bank branch locations (up to 50 per month)





account.

7.

Free mulity city cheque books at par cheque books

8. Free cheque deposits and withdrawal at home branch locations.

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

10. Free cash withdrawal at non branch locations up to Rs 50,000/- per month.

11. Dedicated Relationship Manager who will be a single point of contact at the bank.




15. Business class gold debit card with enhanced daily purchase limit of Rs 1, 75,000 and daily

ATM cash withdrawal limit of Rs 50,000.


emergencies.

17. Cash management services available.


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21. Kotak circle- group multiple current/savings account together. Get flexibility to maintain


22.

Kotak active money – converts savings account balance above a certain amount into Term


23. Point of sales solution (POS) – standalone-alone POS terminals / wireless POS Terminals-

GPRS.

ELITE Current account


1. Average Quarterly Balance (AMB) of Rs 100,000

2. Free unlimited Demand Drafts payable at Kotak Bank branch locations (up to 100 per month)

3. Free Demand Drafts upto 10 lacs per month payable at non-Kotak bank branch locations.





account.

8. Free access to all VISA ATM‟s with your Kotak Business power Gold Debit Card.

9. Free mulity city cheque books at par cheque books.

10. Free outward cheque returns (upto 5 instruments per month).

11.

Free cheque deposits and withdrawal at home branch locations.

12.

Free cash deposit at non branch locations up to Rs 3 lac per month.

13. Free cash withdrawal at non branch locations up to Rs 1 lac per month.

14. Dedicated Relationship Manager who will be a single point of contact at the bank.



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18. Business class gold debit card with enhanced daily purchase limit of Rs 1, 75,000 and daily

ATM cash withdrawal limit of Rs 50,000.


emergencies.

20.

Cash management services available.





24.

Kotak circle- group multiple current/savings account together. Get flexibility to maintain




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

pro current account, Trader classic current account….


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SENIOR CITIZEN DEPOSITS

RECURRING DEPOSIT


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BRANCHLESS BANKING PRODUCTS & FACILITIES OF KOTAK MAHINDRA

BANK

At KOTAK MAHINDRA BANK BRANCHLESS BANKING IS CONVINENCE

BANKING. In today‟s day and age time is money. All of us work hard and have busy schedule.

Doing our banking should be easy, quick and convenient and should not add to our worries. At

Kotak Mahindra bank they realized this has wide range of value added products and services to

make our money work for us. These, coupled with the highest standards of customers values and

make customer life easier and simpler.

Following are various Branchless Banking facilities carried out by Kotak Bank:-1.Net banking

Helps to view details across accounts. Term deposits and Demat Accounts- 24x7 Kotak

Mahindra bank„s net banking services brings us the time world of instant banking. It is quick and

easy available to us 24x7 and it is absolutely free.

Key features:


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NET BANKING- what all you can do online?

Net Banking gives us a host of services, giving us complete control of your accounts:

View account balance account activity, place standing instructions and cheque status.

Open a term deposit

Transfer funds online between your/third party accounts with KOTAK MAHINDRA BANK

or any other Bank account via RBI‟s NEFT or RTGS system

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

more.

Pay your utility Bills on Kotak bill pay.

Safe online shopping with Kotak Netca@d

View securities available for Demat

View current Mutual Fund holdings

Buy and redeem Mutual Funds online

2. Kotak payment Gateway

Instant, convenient and secure way of shopping making payments online. Kotak Payment

Gateway enables us to shop online at over 5000 websites, make utility bill payment across more

than 60 companies and 42 cities, following are some of the websites through which you cansshop online.

www.Bigcinemas.com

www.Airtel.com

www.Yatra.com

www.vodafone.in

Kotak payment gateway is an internet based facility using which are can pay online merchants

by debiting your select bank account. We can pay insurance premiums, magazines subscriptions,

make donations to charitable and religious institutions and transfer money to Kotak securities for

margin money, settlement transfer or IPO funding.

Online shopping


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This service enables us to make purchases across various online shopping sites offering gifts,

flowers, airline tickets, exclusive designer wear, jewellery, latest electronic gadgets/household

items, subscriptions to books / periodicals registration to matrimonial, educational sites or

astrology services and much more.

Online Trading

This service enables us to transfer money instantly to your account with Kotak securities, for

funding your Margin money or funding our IPO account. An account with Kotak securities

enables us to buy / sell securities online. This gives us the power of anywhere, anytime trading.

3. Mobile Banking

Experience new- age Banking. It‟s all about convenience banking on our mobile phone. Now, we

can experience the benefits anywhere and anytime, without the need for a computer. All this

convenience comes to us in a secure and user friendly application for phones and tabs on the is

and android platform.


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MOBILE BANKING FEATURES

a. Banking services

b. Credit card

view summary of your credit card.

Pay your credit card bills.

View past bill statemnts

View unbilled transactions

Balance transfer

Convert transactions to EMI

Request add on card

Set-up auto debit for bill payment

Report lost/ damaged card.

Regenerate debit card pin

Register for e-statement of your debit card.

c. Bill Pay

Register for bill pay using Add biller

Pay due bills

Make instant payments to your registered billers.


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

Mobile recharge

Browse mobile tariffs special plans

Repeat past mobile recharges

DTH recharge

Repeat past DTH recharges.

d. My Kotak

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

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

View alerts & Notifications

Get one view of all accounts.

Get latest and existing deals on Kotak offers App

View social and transactions points on JIFI account.

e. Service Requests

Request for bank account statement

Request for cheque book

Status enquiry of your cheque

Stop cheque request

Request for debit card PIN

Report loss of card

Switch primary account of your debit card.

Stop cheque payment.

f.

General

We can change our MPIN.

View our profile

List of frequent ask questions


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Kotak customer contact center numbers under contact us and a call be made with simple

selection/touch.

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

5. Unstructured supplementary service data ( USSD)

It helps to take command of our bank account from our GSM mobile phone even without a

GPRS connection. Experience the benefits of banking on the move using USSD.

6. SMS Banking

Carry your bank on your phone Kotak Mahindra bank‟s SMS Banking service enables us to

access our bank account, investment account and Demat account on your mobile phone. We

get latest updates on our account balance, salary credits, large credits, large credits, holding

values and much more on your mobile anytime, anywhere. It is quick and easy, available to

you 24x7 and its absolutely free.

Key features

We can access our bank account on mobile phone.

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

7. Alerts

We can get alerts on our mobile or by email for events that we would like to keep track of we

can subscribe for automatic updates for our account either on our mobile phone or emailaddress. These alerts are sent on occurrence of particular transaction. For example, if the

balance in your account falls below the average quarterly balance, we get more informed

through ALERTS.

Key features

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

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

List of Alerts

Given below are the Alerts that Kotak offers:-

Large debit alert

Large credit alert


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Balance below Average Quarterly Balance Alert

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

Standing Instructions (SI) failure Alerts.

8. Phone banking

Kotak Bank 24hr customer service centre is at our service. Our nearest Kotak Mahindra Bank

Branch is on your phone. They have a 24-hour customer center to offer us personalized

service round the clock. Just pick the phone and please call their centre. Whether it is

something as urgent as stop payment, cash or cheque pickup or we simply want to know our

balance to give the call. Their toll free number gives you access to our account, from

anywhere…anytime and what‟s more, this facility comes to us absolutely free of cost. The

aim is to save time of consumers as they do not have to visit the branch every now & then for

such tasks, and facilities great ease&conviennce.

Key features

Quick and easy access from anywhere

PIN based security

Customer care officers available 24x7

9. Cards

Simple transparent Powerful secure.

Credit cards

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

Debit Cards

Business class – Gold debit card classic Debit card platinum debit card

Best compliments card

It lets our loved ones choose their own gift or shop or enjoy at any place that accepts Visa cards,

be it a shopping mall, a restaurant or a multiplex.

Kotak Netca@d


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Kotak Netca@d is a single use limited validity online card created by us, from our bank

accounts, at the time of online shopping and cannot be used after your first payment. It combines

the benefit of using your bank account and the universal acceptance of VISA Card in a highly

secure environment. It is one-time credit card. It is VIRTUAL CREDIT CARD. It is only

offered by Kotak Mahindra Bank.

Kotak world Travel card

Kotak Mahindra bank brings us the Kotak Travel Card, a prepaid travel card that allows us to

forget the hassles of carrying the foreign currency and Travellers cheque. Now we can be free of

inconvenience of encashment, potential of misplacement/ theft issues of universal acceptability.

10. ATM network

Their strategically located and constantly growing ATM network brings the bank within your

easy reach. The state of art touch screen Kotak Mahindra Bank are part of the visa/plus and

card net ATM network. That means you can withdrew cash from their ATM network with

any international and domestic Visa/ visa Electronic/plus credit cards/Debit cards.

Key features

Access your account anytime anywhere

State of art touch screen ATM‟s

Affiliated to the VISA network.

Access any ATM in the country absolutely free.

Services available

24 hour access to cash

Transfer funds between accounts

View account balances and Mini Statement

Pin change option


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11. Cash deposit Machine

Cash Deposit Machine (CDM) is self-service terminal that enables us to deposit cash without

any manual intervention of the branch officer. Now no need to fill deposit slips and stand in

long ques at each counter. Deposit cash through simple and fast CDM installed in branch and

we get instant credit in your account. To use CDM, we need to have Kotak bank debit card or

know the Kotak Bank‟s account number in which we wish to deposit the money.

Key features

Instant credit in CASA account.

Immediate receipt

No need to fill cash deposit slips

No need to stand in long ques.

No need to sort and arrange cash denomination wise

12. Cheque deposit kiosk

Cheque deposit kiosk (CDK) is a self-service terminal that enables us to deposit cheque without

any manual intervention of the branch officer. Now there is no need for us to fill deposit slips

and stand in long ques at the counter. We can deposit our cheque through the simple and fast

CDK installed in the branch. To use the CDK, we need to have Kotak Banks Account number in

which you deposit the cheque.

Key features

Immediate receipt

No need to fill cheque Deposit slips

No need to stand in long ques.


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13. ASBA:(APPLICATION SUPPOTED BY BLOCK ACCOUNT)

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

Key features

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

Enjoyed continued returns on blocked amount

Place multiple bids

Option to revise/withdraw the bid

ASBA facility can be availed by High Net-worth Individuals, corporate, institutional investors,

promoters etc. along with retail investors

14.

E-tax

VAT, TDS, CST can be paid online, on monthly basis.

15. OTHERS

Demat services, funds transfer between own accounts. Third party transfers to accounts

maintained at any branch of KOTAK. Group transfers to accounts with other Banks, online

standing instructions for periodical transfer for the above, request for issue of Demand Draft,

Request for opening of new accounts, request of closure of loan Accounts, home insurance,

health insurance, Travel insurance, Motor insurance card protection plan.


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LITERATURE REVIEW


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LITREATURE REVIEW

In the Branchless banking guidelines of Pakistan (2007), Branchless Banking has been defined as

a significantly cheaper alternative to conventional branch-based banking that allows financial

institutions and their commercial actors to offer financial services outside tradional bank

premises by using delivery channels like retail agents, mobile phones etc

Wikipedia (2009) defined Branchless Banking as a distribution channel strategy used for

delivering financial services without relying on bank branches. Also Webster‟s dictionary (2003)

defined Branchless Banking as an on-line only bank with service representatives available by

phones or internet for extended hours.

Branchless Banking may not necessarily be an alternative to branch based banking system. It can

be either serve as a complement to an existing branch based system or it could be channel that is

not in any way related to bank branch. In Nigeria branchless banking only operates within

existing branch networks. Presently there is no form of Branchless Banking entirely independent

of a branch

For literature reviewed, the major reason for the introduction of Branchless Banking in many

nations of the world is that, it is seen as a way of reaching the unbanked. The unbanked can

simply be described as those individuals that do not have form of account with a bank. Anderson(2007) defined the unbanked as “diverse group of individuals who remain outside the banking

mainstream for many reasons.

Gautam (2008) stated the Africa has about 230 million unbanked household. In the same vein,

Ladipo (2008) reveled in the survey carried out by EFINA that cuts across all the states of

Nigeria over 5 year period and the sample based on sample based on national integrated survey

of households, that 74% (which is equivalent to 64 million people) of the adult population in the

country have never been banked. The study revealed further that about 40 million other adultshave left the banking system. Also 86% of the rural populations are currently unbanked.

South-Africa the largest and richest economy in the region with a quarter of Africa‟s GDP, has a

well-developed financial sector, yet another 40% of south Africans have bank accounts. Gautam

(2008). In Mexico less than 25% Mexicans have bank accounts.


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The issue of having unbanked individuals is not limited to the developed or developing nations.

Even in developed countries, many people still remained unbanked. Anderson (2007) stated that

there are about two million unbanked families in United Nations.

Different authors have citied reasons why people still remain unbanked despite the trend in

development across the globe. Simeon, Pedro, Enrique and Siddharth (2008) conducted a similar

survey on 5,000 households in Mexico. This was done by comparing savings accounts in formal

financial institutions to their neighbor who do not have such accounts. The result of study shows

that education levels and wealth play a major role in determining who is banked.

The study of Ladipo (2008) also revealed that 98% of those with no formal education in Nigeria

are unbanked and 86% of those in 18-24 age brackets are unbanked. The findings further

revealed that most of the rural people tend to be mainly or almost entirely unbanked whilst their

wealthier urban people tend to be banked. In the same study, it has been observed that the 48%

of unbanked population do not have enough money and this makes it difficult for them to possess

a bank account.

Chong (2008) also stated that low income earners see themselves as incredible for bank

accounts. According to Anderson (2007), people remain unbanked in the U.S due to reasons

which include: lack of understanding about the US or in the home countries, lack of

documentation needed to open a bank account. Anderson (2007) further noted that the common

groups of unbanked people in the U.S. include low income individuals, families who are less

educated, female-headed households, and families living in rural areas.

Many of unbanked people who are usually low people are less exposed to technology (Coetzee,

2005). In India, vinayak (2007) cited an Indian lady who claimed that she has never entered a

bank in her life due to fact that nearest branch was 8km far away from the village.

The benefits of branchless banking cannot be overphrasized. Through all these delivery channels, banks will increase their outreach to the unbanked, provision of banking services will not be

limited to working hours and week days, long cue that are rampant in banking halls will be

reduced, loss of customer due to relocation of the customers from one area to other will be

averted. Many other benefits can be derived from Branchless Banking.


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OBJECTIVES

A study on customer‟s satisfaction on Branchless Banking facility of Kotak Mahindra bank.

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

To create awareness among customers towards Branchless Banking services.

To study and to make Branchless banking users aware various e-banking risks like

phishing, identity theft, Frauds of plastic Money, Trojan, and Malware etc.


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RESEARCH METHODOLOGY

Methodology in the applied sense refers to various methods used by the researcher right from

data collection and various techniques used for the same for interpretation and inference.

Methods and techniques are often used synonymously in research literature. Research

methodology is what must be done, how it will be done, what data will be needed, what data

gathering will be employed, how sources of data will be selected and how the data will be

analyzed and conclusions reached. When we talk of research methodology we not only talk of

the research methods but also consider the logic behind the methods we use in the context of our

research study and explain why we are using a particular method or technique and why we are

not using others so that research results are capable of being evaluated either by the researcherhimself or by others.


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DESCRIPTIVE METHOD

Descriptive studies attempts to determine the frequency with which something occurs or the

relationship between two phenomena. In general as the data obtained by descriptive research is

put to much statistical analysis it is essential to determine the list of variable to be investigated

and state how these variables to be measured.

POPULATION

A population can be defined as including all people of items with the characteristics one

wishes to understand. We have selected the users of Kotak Mahindra bank of Faridabad

city

SAMPLE FRAME

For our research purpose we have selected respondents who are phone banking, net

banking and Sms banking banking users of Kotak Mahindra bank.

RESEARCH TOOL

Questionnaire consisting of closed ended questions. A form containing set of questions will be

submitted to the respondents to gain statistical information .unstuructured questions in which

possible answers are not suggested , and the respondents chooses from the given options.

SAMPLE SIZE

The sample size of research is 100.


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SAMPLING TECHNIQUE

Simple Random Technique.

SAMPLE UNIT

The customers of Kotak Mahindra bank.

COLLECTION OF DATA

Primary data: we would collect data through questionnaire

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

Kotak Mahindra bank

BENEFICIARIES

All the branchless banking customers of Kotak whether they are E-banking users or Sms banking

users & society at large are the beneficiaries as will be aware of PROS&CONS of branchless

banking.

SCOPE

The scope will be wide as we can come across the benefits as well as various risks & threats of

branchless banking. To gain accurate results for the study, 100 people are given questionnaire to

know HOW MUCH THEY ARE SATISFIED WITH BRANCHLESS BANKING FACILITIES

OF KOTAK MAHINDRA BANK. The scope of study was limited to the Kotak Mahindra bank

and Faridabad city.


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DATA ANALYSIS


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60%

40%

0

10

20

30

40

50

60

70

YES NO

NO OF RESPONDENTS

Q1. ARE YOU USING BRANCHLESS BANKING SERVICES OF KOTAK

MAHINDRA BANK?

Fig 1.1

BASIS NO OF RESPONDENTS % OF RESPONDENTS

YES 60 60%

NO 40 40%

INTERPRETATION:

As a researcher Branchless Banking facilities provided by the bank is not in the booming phase

on an average 60% of customers are utilizing Branchless Banking facilities banks should have to

focus to spread awareness regarding this for towards the customers through different

communication media as we have got the finding only 60% of customers are using branchless

banking facilities and need 40% are not using this facilities.


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Q2. AGE

Fig 2.1

INTERPRETATION:-

As per survey we came to know that respondents in age group of 18-25 and 25-35 are more

active in digital banking, whereas the responding comprising of 35-50 and above 50 are not

comfortable with branchless banking as they prefer to go to bank.

50%

40%

8%

2%

% OF RESPONDENTS

18-25

25-35

35-50

50>ABOVE

BASIS AGE LIMIT % OF RESPONDENTS

1. 18-25 50%

2. 25-35 40%

3. 35-50 8%

4. 50>ABOVE 2%


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Q3. GENDER

Fig 3.1

INTERPRETATION:-

From the response of the individuals it was observed that the number of male users is more than

female users with response to the use of Branchless Banking services of the bank. One of the

reasons could be that men are into commercial use of Branchless banking Products than the

females. It could be possible that there may be a limited use of the Branchless Banking services

in case of females.

70%

30%

% OF RESPONDENTS

MALE

FEMALE

BASIS % OF RESPONDENTS

MALE 70%

FEMALE 30%


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Q5. ANNUAL INCOME

Fig 5.1

ANNUAL INCOME % OF RESPNDENTS

0-1,00,000 10%

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

2,50,000-5,00,000 30%

5,00,000-8,00,000 50%

8,00,000-ABOVE 5%

INTERPRETATION:-

The above figures shows that the people comprising of 5, 00,000-8, 00,000 annual income are

more using Branchless Banking services compare to all other income levels people.

10%

5%

30%50%

5%

% OF RESPONDENTS

0-1,00,000

1,00,000-2,50,000

2,50,000-5,00,000

5,00,000-8,00,000

8,00,000-ABOVE


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Q6. WHICH OF THE FOLLOWING PRODUCTS DO YOU USE?

Fig 6.1

PRODUCT % OF RESPONDENTS

CURRENT A/C 55%

SAVINGS A/C 45%

BOTH 5%

INTERPRETATION:-

From the above figure we concludes that no of current account user are much more as compared

to savings account users and only 5% respondents out of 100 respondents are using both the

current and savings account service.

55%45%

5%

% OF RESPONDENTS

CURRENT A/C

SAVINGS A/C

BOTH


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Q7. HOW DID YOU COME TO KNOW ABOUT THE BRANCHLESS BANKING

SERVICES OF THE BANK?

Fig 7.1


FROM BANK OFFICIALS 50%

ADVERTISENT IN PRINT MEDIA 5%

FAMILY MEMBERS 5%

FRIENDS 2%

OTHER SOURCES 38%

INTERPRETATION:-

In scenario as per the analysis by researcher conclude that the bank official user of Branchless

Banking is more increasing.

50%

5%5%

2%

38%

% OF RESPONDENTS

FROM BANK OFFICIALS

ADVERTISENT IN PRINT

MEDIA

FAMILY MEMBERS

FRIENDS

OTHER SOURCES


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Q8. PURPOSE OF USING BRANCHLESS BANKING SERVICES?

Fig 8.1


BALANCE INQUIRY 32%

FUND TRANSFER 20%

PAY BILLS 10%

BALANCE INQUIRY,PAY BILLS,FUND

TRANSFER

20%

BALANCE INQUIRY,PAY BILLS,FUND

TRANSFER,PAY TAXES

10%

NONE OF THE ABOVE 8%

32%

20%10%

20%

10%8%

% OF RESPONDENTS

BALANCE INQUIRY

FUND TRANSFER

PAY BILLS

BALANCE INQUIRY,PAYBILLS,FUND TRANSFER

BALANCE INQUIRY,PAY

BILLS,FUND TRANSFER,PAY

TAXES

NONE OF THE ABOVE


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INTERPRETATION:-

Branchless Banking services in India for the customers are introductory phase customers are

using Branchless Banking services mainly for Balance enquiry (32%) and Fund transfers.

Customers are more and more conservative regarding banking transactions.

Q9. TYPE OF TRANSFERS DO YOU EXECUTE THROUGH BRANCHLESS

BANKING?

Fig 9.1

29%

4%

4%

2%1%

3%2%

4%10%

1%2%

8%

30%

% OF RESPONDENTSWITHIN YOUR KOTAK A/C

TO SOMEONE ELSE KOTAK A/C

RTGS

NEFT

IMPS

WITHIN KOTAK A/C TO

SOMEONE ELSE KOTAK A/C

NEFTWITHIN YOUR KOTAK A/C

RTGS,NEFT


NEFT


RTGS,NEFT

WITHIN KOTAK A/C TO

SOMEONE ELSE KOTAK A/C

RTGS,NEFT


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WITHIN YOUR KOTAK A/C 29%

TO SOMEONE ELSE KOTAK A/C 4%

RTGS 4%

NEFT 2%

IMPS 1%

WITHIN KOTAK A/C TO SOMEONE

ELSE KOTAK A/C NEFT

3%

WITHIN YOUR KOTAK A/C RTGS,NEFT 2%

TO SOMEONE ELSE KOTAK A/C NEFT 4%


RTGS,NEFT

10%

WITHIN KOTAK A/C TO SOMEONE

ELSE KOTAK A/C RTGS,NEFT

1%

RTGS,NEFT,DD 2%

WITHIN YOUR KOTAK A/C DD 8%

NONE 30%

INTERPRETATION:-

As per research customers are not prefer less transacting through Branchless Banking services

except doing transactions within the bank and customers prefer more to go by manual process.


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Q10. TYPE OF BILL PAYING THROUGH BRANCLESS BANKING?

Fig 10.1


UTILITY PAYMENTS 10%

INSURANCE PREMIUMS 8%

CREDIT CARD 60%

ALL OF ABOVE 22%

INTERPRETATION:-

From the above figure we conclude that Branchless Banking is mostly used by respondents for

credit card purchase (60%) in comparison to utility payments(10%), insurance premiums (8%).

10%8%

60%

22%

% OF RESPONDENTS

UTILITY PAYMENTS

INSURANCE PREMIUMS

CREDIT CARD

ALL OF ABOVE


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Page 68

Q11. DID YOU USE ASBA FACILITY FOR ONLINE IPO APPLICATION THROUGH

E- BANKING?

Fig 11.1


YES 10%

NO 68%

NONE 22%

INTERPRETATION:-

As depletion in equity market and crises for same have motivated customer for making invest in

equity market. Customers are not aware and educated regarding ASBA facility for online IPO

application so as bank they should have to focus on ASBA in group of customers in equity

market at growing phase in current economy of India.

10%

68%

22%

% OF RESPONDENTS

YES

NO

NONE


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Page 69

Q12. HOW OFTEN YOU VISIT ATM?

Fig 12.1


DAILY BASIS 10%

ONCE IN WEEK 56%

ONCE IN MONTH 10%

NONE OF THE ABOVE 4%

INTERPRETATION:-

The above figures shows that the % of respondents is higher in case of usage of ATM card once

in week (56%) in comparison to usage on monthly basis (10%) and daily basis (10%)

10%

56%

10%

4%

% OF RESPONDENTS

DAILY BASIS

ONCE IN WEEK

ONCE IN MONTH

NONE OF THE ABOVE


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Page 70

Q13. HAVE YOU MADE BILL PAYMENTS THROUGH BILL PAY WHICH IS

AVILABLE IN KOTAK E-BANKING?

Fig 13.1


INSTANT PAY 53%

AUTO PAY 43%

NONE 4%

INTERPRETATION:-

More than 50% customers who are making use of E-Banking mainly using bill payments through

e-banking only because of high convenience of the customers this type of customer base is from

metro city and urban city only to cut cost of time.

53%43%

4%

% OF RESPONDENTS

INSTANT PAY

AUTO PAY

NONE


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Page 71

Q14. KOTAK BANK APP IS EASY TO ACCESS?

Fig 14.1


AGREE 40%

STRONGLY AGREE 58%

NEUTRAL 2%

INTERPRETATION:-

The above figures clearly show that the people who are using Kotak app for e-banking are

satisfied with the services and finding it easy to access.

40%

58%

2%

AGREE

STRONGLY AGREE

NEUTRAL


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Page 72

Q16. E-BANKING TRANSACTIONS ARE SECURED?

Fig 16.1


AGREE 20%

STRONGLY AGREE 63%

NEUTRAL 17%

INTERPRETATION:-

From the above survey it is clear that the respondents are secured on doing transactions online

about 63% of respondents are feels security in doing transactions online as compared to 37% of

agreed and neutral respondents.

20%

63%

17%

% OF RESPONDENTS

AGREE

STRONGLY AGREE

NEUTRAL


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Page 73

Q17. BANK PROVIDES IMMEDIATE TRANSACTIONS FEEDBACK

Fig 17.1


NONE 10%

NEUTRAL 7%

AGREE 53%

STRONGLY AGREE 30%

INTERPRETATION:-

The above figures clearly show that customers are getting immediate feedback from bank at any

transaction.

10%7%

53%

30%

% OF RESPONDENTS

NONE

NEUTRAL

AGREE

STRONGLY AGREE


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Page 75

CONCLUSION

It is observed that AGE plays an important role with respect to the use of Branchless Banking

services. It is found that senior citizens are less comfortable with the use of these services. From

this we can conclude that even the preceding generation is becoming more &more aware of

benefits & convenience of Branchless Banking.

With respect to the literacy level it is observed that majority of customers have knowledge of

limited aspects of information technology.

From the study it is observed that customers are willing to use modern banking facilities

having given them adequate guidance and securities measures by bank.

With respect to frequency of visits it is observed that customers make frequent visits to banks

which can be minimized with optimum provision of Branchless Banking facilities.


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Page 76

RECOMMENDATIONS

From the response of individuals it is observed that the no of male users is more than female

users with respect to the use of Branchless Banking services. It could be possible that there could

be limited use of Branchless Banking services in case of females.

So the female Gender should be made more and more aware of Branchless Banking benefits,

ease, convenience, precautions, risk, threats etc.


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Page 77

LIMITATIONS OF THE STUDY

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

Some respondents hesitate in providing information.

The information provided by respondents may not be reliable.

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

The respondents restricted themselves from answering the questions mentioned for the fear

of letting their views disclosed to others.


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Page 78

ANNEXURE

BIBLIOGRAPHY

QUESTIONNAIRE


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Page 79

BIBLIOGRAPHY

WEBSITES

WWW.KOTAK.COM

WWW.WIKIPEDIA.COM

BOOKS

Mobarek, D (2004), e-banking practices and customer satisfaction, international journal

of bank marketing, vol 2, 94-103.

Arumugaperumal, D.S. (2006, July), impact of cybercrime on virtual banking, journal

computer science.

http://www.kotak.com/http://www.kotak.com/http://www.wikipedia.com/http://www.wikipedia.com/http://www.wikipedia.com/http://www.kotak.com/


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Page 80

QUESTIONNAIRE

Q1. ARE YOU USING BRANCHLESS BANKING SERVICES OF KOTAK

MAHINDRA BANK?

(a) Yes (b) No

Q2. AGE

(a) 18-25 (b) 25-35 (c) 35-50 (d) 50>above

Q3. GENDER

(a) Male (b) Female

Q4. OCCUPATION

(a) Student (b) Salaried (c) Business (d) OthersQ5. ANNUAL INCOME

(a) 0-1,00,000 (b) 1,00,000-2,50,000 (c) 2,50,000-5,00,000 (d) 5,00,000-Above

Q6. WHICH OF THE FOLLOWING PRODUCTS DO YOU USE?

(a)

Current (b) Savings (c) Both

Q7. HOW DID YOU COME TO KNOW ABOUT THE BRANCHLESS BANKING

SERVICES OF THE BANK?

(a) From Bank officials (b) Advertisement in Print media (c) Family Members

(d) Friends (e) Others


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Q13. HAVE YOU MADE BILL PAYMENTS THROUGH BILL PAY WHICH IS

AVILABLE IN KOTAK E-BANKING?

(a) Instant pay (b) Auto pay (c) None

Q14. KOTAK BANK APP IS EASY TO ACCESS?

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

Q16. E-BANKING TRANSACTIONS ARE SECURED?

(a)

Agree (b) Strongly Agree (c) Neutral

Q17. BANK PROVIDES IMMEDIATE TRANSACTIONS FEEDBACK

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

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

PROTECTS YOUR INTEREST ALSO?

(a) Agree (b) Disagree (c) None.

Documents

Kotak Mahindra Bank (PRATEEK JAIN FINAL) 1586