kotak report

APROJECT REPORT ON

MARKET STUDY AND CUSTOMER MAPPINGFOR BANKING PRODUCTS

PREPARED BY

Hemali Suratia Bharti Thakkar Manthan Sarvaiya

Truptesh ShahUmesh MakhleparaSumit PatelKaushik GondaliyaYogesh SindhaNilesh Khetiya (NIS Academy) SUBMITTED TO Pramod Sir (Branch Manager) V.V.NAGAR

NIS Academy, MBA, 2010 Page 1

INDEX

Sir no. Particulars Page no.1. Preface2. Acknowledgement3. Executive summary4. Company profile5. Introduction of banking sector in India6. Current scenario7. About Kotak Mahindra bank8. History9. SWOT Analysis of Kotak bank10. NRI’S11. NRI Help center12. Analysis


PREFACE

The industrial scenario of economy is highly competitive and constantly changing. To serve this highly competitive scenario practical studies are much more important with theoretical studies. In India the significance of MBA course is increasing drastically. Amongst all the PG courses MBA is most favored. As a partial fulfillment of third semester the students have to take a summer training of 6 to 7 weeks at any company and prepare a project report on the basis of that practical experience.


Indian economy is growing at a considerable rate. The growth of GDP in India is 8% per annum. The major sector contributing to the growth of GDP is service sector and it is approximately 63% to GDP. Banking is one of the main pillars of service sector. So I have decided to take exposure of banking sector by taking practical training at KOTAK MAHINDRA BANK which is one of the reputed private banks.

The aim of KOTAK MAHINDRA BANK is customization & people cantered banking. Customized banking system can be achieved by provided what customer actually wants. So we want to check weather KOTAK MAHINDRA BANK is successful or not. As a part of this study I have decided to prepare a project report on “MARKET STUDY & CUSTOMER MAPPING FOR BANKING PRODUCTS” PROVIDED BY KOTAK MAHINDRA BANK.

The study of this topic is helpful to me in analyzing customer satisfaction & loyalty to the services which they are using at the KOTAK MAHINDRA BANK. This study will also be helpful to us in analyzing the information about what change customer want from the existing services. This report also gives me the overall satisfaction level of customer from the KOTAK MAHINDRA BANK & how the customers are loyal to the bank. This report also includes graphical representation wherever it feels necessary. Finally, it is indeed excellent opportunity for us to present this report and a matter of esteem honors itself. After successful completion of training it is golden experience for me of banking sector. And I also know how the different departments are working.


ACKNOWLEDGEMENT

First of all I am thankful to KOTAK MAHINDRA BANK and Branch Manager Mr. Pramod Chauhan for giving me permission to take the summer training. I would also like to thank the staff members of the bank for providing us information about the different departments of the bank. I would like to thank our Centre Head Mr. Manish Amin of NIS ACADEMY for his guidance and kind support as well as our project guide Mrs. Nisha Kurup for their valuable guidance and experience.


Finally I am glad to thank our all faculties who have provided me substantial guidance & support in preparation of this project. This successful completion of this project could not have been possible without their co-operation and support. I would also like give some share of thanks to my friends for their support.

EXECUTIVE SUMMARY

Executive summary is a term used in business for a short document that summarizes a longer report,

It will usually contain a brief statement of the problem or proposal covered in

the major document(s), background information, concise analysis and main

conclusions. It is intended as an aid to decision making by business managers.


An executive summary differs from an abstract in that an abstract will usually

be shorter and is intended to provide a neutral overview or orientation rather

than being a condensed version of the full document. Abstracts are extensively

used in academic research where the concept of the executive summary would

be meaningless.

This project report is based on the NRI Banking Services provided by the

Kotak Mahindra bank. Three major criteria’s are undertaken for finding the

customer opinion i.e. people, process and physical evidence. As there was a

limitation of time and the project is too broad we have prepared the project

report in group of two. As Kotak Mahindra bank is a service firm we have

selected the above mentioned criteria’s. I have selected the banking sector

because in India banking is one of the most growing sectors and there are many

future opportunities are there. The banking sector of India is one of the least

affected by the slowdown all over the world because it strong framework and

regulation.

Our project is mainly based on the research but for some aspects secondary data

is also being included from the websites and the books. As it is research project

we have undergone one survey of around 1200 respondents within ANAND

district to find the customer opinion of NRI services provided by the Kotak

Mahindra bank. We have selected the V V Nagar branch of the Kotak

Mahindra bank as our territory of research. A well designed questionnaire was

formed of 7 questions for collecting the data. The exploratory research design is

undertaken and the data is being collected by field work and telephone.

Without replacement and non-random sampling method is being used. Our


target population was customers coming at bank and the corporate salary

accounts.

We have also included all the information regarding the 7 Ps of the Kotak

Mahindra bank which will include all the information of Kotak Mahindra bank

related products, pricing, promotional schemes, people, various processes, and

the physical evidence facilities. All these data is being collected from the

secondary sources.

COMPANY PROFILE

The Kotak Mahindra group is a financial organization established in 1985 in India. It was previously known as the Kotak Mahindra Finance Limited, a non-banking financial company. In February 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). Kotak Mahindra Finance Ltd. is the first company in the Indian banking history to convert to a bank.

The bank is headed by K.M. Gherda as Chairman and Uday Kotak as Executive Vice Chairman & Managing Director. Shankar Acharya is the chairman of board of Directors in the company. The Bank has its registered office at Nariman Bhavan, Nariman Point, Mumbai.


http://en.wikipedia.org/wiki/Chairman

http://en.wikipedia.org/wiki/Mumbai

http://en.wikipedia.org/wiki/Nariman_Point

http://en.wikipedia.org/wiki/Board_of_Directors

http://en.wikipedia.org/wiki/Shankar_Acharya

http://en.wikipedia.org/wiki/Managing_Director

http://en.wikipedia.org/wiki/Uday_Kotak

Mr. K.M. Gherda Chairman Mr. Uday Kotak Executive Vice Chairman & Managing Director Mr. Anand Mahindra Mr. Cyril Shroff Mr. Pradeep Kotak Dr. Shankar Acharya Mr. Shivaji Dam Mr. Ajay Sondhi Mr. C. Jayaram Executive Director Mr. Dipak Gupta Executive Director Ms. Bina Chandarana Secretary & Senior Vice President


…….ORGANISATION CHART…….


INTRODUCTION OF BANKING SECTOR IN INDIA

The Indian Banking industry, which is governed by the Banking Regulation Act of India, 1949 can be broadly classified into two major categories, non-scheduled banks and scheduled banks. Scheduled banks comprise commercial banks and the co-operative banks. In terms of ownership, commercial banks can be further grouped into nationalized banks, the State Bank of India and its group banks, regional rural banks and private sector banks (the old/ new domestic and foreign). These banks have over 67,000 branches spread across the country.

The first phase of financial reforms resulted in the nationalization of 14 major banks in 1969 and resulted in a shift from Class banking to Mass banking. This in turn resulted in a significant growth in the geographical coverage of banks. Every bank had to earmark a minimum percentage of their loan portfolio to sectors identified as “priority sectors”. The manufacturing sector also grew during the 1970s in protected environs and the banking sector was a critical source. The next wave of reforms saw the nationalization of 6 more commercial banks in 1980. Since then the number of scheduled commercial banks increased four-fold and the number of bank branches increased eight-fold.

After the second phase of financial sector reforms and liberalization of the sector in the early nineties, the Public Sector Banks (PSB) s found it extremely difficult to compete with the new private sector banks and the foreign banks. The new private sector banks first made their appearance after the guidelines permitting them were issued in January 1993. Eight new private sector banks are presently in operation. These banks due to their late start have access to state-of-the-art technology, which in turn helps them to save on manpower costs and provide better services.

During the year 2000, the State Bank of India (SBI) and its 7 associates accounted for a 25 percent share in deposits and 28.1 percent share in credit. The 20 nationalized banks accounted for 53.2 percent of the deposits and 47.5 percent of credit during the same period. The share of foreign banks


(numbering 42), regional rural banks and other scheduled commercial banks accounted for 5.7 percent, 3.9 percent and 12.2 percent respectively in deposits and 8.41 percent, 3.14 percent And 12.85 percent respectively in credit during the year 2000.

Banking in India has its origin as early as the vedic period. It is believed that the transistion from money lending to banking must have occurred even before Manu, the great Hindu Jurist, who has devoted a section of his work to deposits and advances and laid down rules relating to rates of interest. During the Mogul period, the indegenous bankers played a very important role in lending money and financing foreign trade and commerce. During the days of the East India Company, it was the turn of the agency houses to carry on the banking business. The General Bank of India was the first Joint Stock Bank to be established in the year 1786. The others which followed were the Bank of Hindustan and the Bengal Bank. The Bank of Hindustan is reported to have continued till 1906 while the other two failed in the meantime.

In the first half of the 19th century the East India Company established three banks; the Bank of Bengal in 1809, the Bank of Bombay in 1840 and the Bank of Madras in 1843. These three banks also known as Presidency Banks, were independent units and functioned well. These three banks were amalgamated in 1920 and a new bank, the Imperial Bank of India was established on 27th January 1921. With the passing of the State Bank of India Act in 1955 the undertaking of the Imperial Bank of India was taken over by the newly constituted State Bank of India. The Reserve Bank which is the Central Bank was created in 1935 by passing Reserve Bank of India Act 1934. In the wake of the Swadeshi Movement, a number of banks with Indian management were established in the country namely, Punjab National Bank Ltd, Bank of India Ltd, Canara Bank Ltd, Indian Bank Ltd, the Bank of Baroda Ltd, the Central Bank of India Ltd. On July 19, 1969, 14 major banks of the country were nationalised and in 15th April 1980 six more commercial private sector banks were also taken over by the government. Today the commercial banking system in India may be distinguished into following sectors:


.Public Sector Banks..

State Bank of India and its associate banks called the State Bank group20 nationalised banksRegional Rural Banks mainly sponsored by Public Sector Banks

..Private Sector Bank..

Old generation private banks New generation private banks Foreign banks in India Scheduled Co-operative Banks Non-scheduled Banks

..Co-operative Banks..

The co-operative banking sector has been developed in the country to the suppliment the village money lender. The co-operatiev banking sector in India is divided into 4 components

State Co-operative Banks Central Co-operative Banks Primary Agriculture Credit Societies Land Development Banks Urban Co-operative Banks Primary Agricultural Development Banks Primary Land Development Banks State Land Development Banks


..Development Banks..

Industrial Finance Corporation of India (IFCI) Industrial Development Bank of India (IDBI) Industrial Credit and Investment Corporation of

India (ICICI) Industrial Investment Bank of India (IIBI) Small Industries Development Bank of India (SIDBI) SCICI Ltd. National Bank for Agriculture and Rural Development (NABARD) Export Import Bank of India National Housing Bank

CURRENT SCENARIO


The industry is currently in a transition phase. On the one hand, the PSBs, which are the mainstay of the Indian Banking system, are in the process of shedding their flab in terms of excessive manpower, excessive non-Performing Assets (Npas) and excessive governmental equity, while on the other hand the private sector banks are consolidating themselves through mergers and acquisitions.

PSBs, which currently account for more than 78 percent of total banking industry assets are saddled with NPAs (a mind-boggling Rs 830 billion in 2000), falling revenues from traditional sources, lack of modern technology and a massive workforce while the new private sector banks are forging ahead and rewriting the traditional banking business model by way of their sheer innovation and service. The PSBs are of course currently working out challenging strategies even as 20 percent of their massive employee strength has dwindled in the wake of the successful Voluntary Retirement Schemes (VRS) schemes.

Private sector Banks have pioneered internet banking, phone banking, anywhere banking, and mobile banking, debit cards, Automatic Teller Machines (ATMs) and combined various other services and integrated them into the mainstream banking arena, while the PSBs are still grappling with disgruntled employees in the aftermath of successful VRS schemes. Also, following India’s commitment to the W To agreement in respect of the services sector, foreign banks, including both new and the existing ones, have been permitted to open up to 12 branches a year with effect from 1998-99 as against the earlier stipulation of 8 branches. Talks of government diluting their equity from 51 percent to 33 percent in November 2000 have also opened up a new opportunity for the takeover of even the PSBs. The FDI rules being more rationalized in Q1FY02 may also pave the way for foreign banks taking the M&A route to acquire willing Indian partners.Meanwhile the economic and corporate sector slowdown has led to an increasing number of banks focusing on the retail segment. Many of them are also entering the new vistas of Insurance. Banks with their phenomenal reach and a regular interface with the retail investor are the best placed to enter into


the insurance sector. Banks in India have been allowed to provide fee-based insurance services without risk participation invest in an insurance company for providing infrastructure and services support and set up of a separate joint-venture insurance company with risk participation.

THERE ARE SEVERAL GOOD REASONS FOR INVESTING IN INDIA

One of the largest economies in the world.Strategic location - access to the vast domestic and South Asian market.


A large and rapidly growing consumer market up to 300 million people; constitute the market for branded consumer goods - estimated to be growing at 8% per annum. Demand for several consumer products is growing at over 12% per annum.Foreign investment is welcome; approval is required but is automatic in sixty categories of Industries.Skilled man-power and professional managers are available at competitive cost.One of the largest manufacturing sectors in the world, spanning almost all areas of manufacturing activities.One of the largest pools of scientists, engineers, technicians and managers in the world.Rich base of mineral and agricultural resources.Long history of market economy infrastructureSophisticated financial sector.Vibrant capital market with over 9,000 listed companies and market capitalisation of US$ 154 billion (March,1996)Well-developed R&D infrastructure and technical and marketing services. Policy environment that provides freedom of entry, investment, location, choice of technology, production, import and export. Well balanced package of fiscal incentives. A sophisticated legal and accounting system. English is widely spoken and understood. Rupee is convertible on Current Account at market determined rate. Free and full repatriation of capital, technical fee, royalty and dividends. Foreign brand names are freely used. No income tax on profits derived from export of goods. Complete exemption from Customs Duty on industrial inputs and Corporate Tax Holiday for five years for 100 per cent Export Oriented units and units in Export Processing Zones. Corporate Tax applicable to the foreign companies of a country with which agreement for avoidance of Double Taxation exists, can be one which is lower between the rates prevailing in any one of the two countries.


…KOTAK MAHINDRA BANK…

Kotak Mahindra is one of India's leading financial institutions, offering complete financial solutions that encompass every sphere of life. From commercial banking, to stock broking, to mutual funds, to life insurance, to investment banking, the group caters to the financial needs of individuals and corporates.


The group has a net worth of over Rs.1,550 crore and employs over 3,000 employees in its various businesses. With a presence in 59 cities in India and offices in New York, London, Dubai and Mauritius, it services a customer base of over 5,00,000.

Kotak Mahindra has international partnerships with Goldman Sachs (one of the world's largest investment banks and brokerage firms), Ford Credit (one of the world's largest dedicated automobile financiers) and Old Mutual (a large insurance, banking and asset management conglomerate).

……………..HISTORY……………

The Kotak Mahindra Group was born in 1985 as Kotak Capital Management Finance Limited. This company was promoted by Uday Kotak, Sidney A. A. Pinto and Kotak & Company. Industrialists Harish Mahindra and Anand Mahindra took a stake in 1986, and that's when the company changed its name to Kotak Mahindra Finance Limited


Kotak Mahindra is among the leading financial organization of India, with a range of financial services that caters to all customers' day to day requirements. Their products spans from commercial banking, to stock broking, to mutual funds, to life insurance, to investment banking – diverse needs of individuals and corporates are catered to.

The Kotak group has a net worth of more than Rs. 6,799 crore with the branches, franchisees, representative offices and satellite offices spread across cities and towns in India. They also have global offices in New York, London, San Francisco, Dubai, Mauritius and Singapore. The Kotak Group offers their services to approximately 6.4 million customers.

The Kotak Mahindra Group got incepted in 1985 in the form of Kotak Capital Management Finance Limited, being promoted by Uday Kotak, Sidney A. A. Pinto and Kotak & Company. A stake in the group was taken in by industrialists Harish Mahindra and Anand Mahindra and this is the time when the company changed its name to Kotak Mahindra Finance Limited.

..HIGHLIGHTS OF KOTAK MAHINDRA BANK..

Market Share Of Key Players In The Indian Aviation Sector

1986 Kotak Mahindra Finance Limited started off with Bill Discounting


1987Kotak Mahindra Finance Limited makes its foray into the Lease and Hire Purchase market

1990The Auto Finance division starts

1991The Investment Banking Division starts off. They take over FICOM, one of India's largest financial retail marketing networks

1992Penetrates into the Funds Syndication sector

1995

The brokerage and distribution businesses of the Group gets incorporated into a separate company - Kotak Securities, whereas the investment banking arm is incorporated into a separate company - Kotak Mahindra Capital Company

1996

The Auto Finance Business of the Group is hived off into a separate company - Kotak Mahindra Prime Limited. Kotak Mahindra takes up a major stake in Ford Credit Kotak Mahindra Limited to finance Ford vehicles. They launch Matrix Information Services Limited, marking the group's entry in information distribution

1998Kotak Mahindra Asset Management Company is incepted and they enter into the mutual fund market.

2000

Kotak Mahindra makes a tie with Old Mutual plc. For their Life Insurance business. Kotak Securities launches the site (now www.kotaksecurities.com). Kotak Mahindra Venture Capital Fund is formed and the private equity business of the group commences.


2001Matrix is sold to Friday Corporation and the Insurance Services is launched.

2003 Kotak Mahindra Finance Ltd. gets converted into a commercial bank.

2004A private equity fund (India Growth Fund) is launched.

2005 Kotak Group launches a real estate fund

2006The Group buys 25% stake held by Goldman Sachs in Kotak Mahindra Capital Company and Kotak Securities

THE JOURNEY SO FAR…

KEY GROUP COMPANY AND THEIR BUSINESS.

The Kotak Mahindra Group’s flagship company, Kotak Mahindra Finance Ltd which was established in 1985, was converted into a bank – Kotak Mahindra Bank Ltd in March 2003 becoming the first Indian company to convert into a Bank. It’s banking operations offers a central platform for customer relationships across the


group’s various businesses. The bank has a presence in the Commercial Vehicles, Retail Finance, Corporate Banking and Treasury and has recently entered the Housing Finance segment.

Kotak Mahindra Capital Company Limited (KMCC), India's premier Investment Bank and a Primary Dealer (PD) approved by the RBI, is a strategic joint venture between Kotak Mahindra Bank Limited and the Goldman Sachs Group, LLP. KMCC's core business areas include Equity Issuances, Mergers & Acquisitions, Structured Finance and Advisory Services, Fixed Income Securities and Principal Business.

…….KOTAK SECURITIES…..

Kotak Securities Ltd., a strategic joint venture between Kotak Mahindra Bank Limited and the Goldman Sachs Group, LLP. Is one of India's largest brokerage and securities distribution house in India? Over the years Kotak Securities has been one of the leading investment broking houses catering to the needs of both institutional and retails investor categories with presence all over the country through franchisees and co-coordinators. Kotak Street - the retail arm of Kotak Securities Ltd., offers online (through www.kotakstreet.com) and offline services well-researched expertise and financial products to the retail investors.

….KOTAK CAR FINANCE….

Kotak Mahindra Primus Limited (KMP) is a joint venture between Kotak Mahindra Bank Ltd and Ford Credit International Inc., (USA) formed to finance all non-Ford passenger vehicles. KMP is one of the country’s leading players in car finance and is focused to financing and supporting automotive and automotive


http://www.kotakstreet.com/

related manufacturers, dealers and retail customers.

….KOTAK MUTUAL FUND....

Kotak Mahindra Asset Management Company (KMAMC), a subsidiary of Kotak Mahindra Bank, is the asset manager for Kotak Mahindra Mutual Fund (KMMF). KMMF manages funds in excess of Rs 4000 crores and offers schemes catering to investors with varying risk- return profiles. It was the first fund house in the country to launch a dedicated gilt scheme investing only in government securities.

Kotak Mahindra Old Mutual Life Insurance Limited

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

THE JOURNEY OF KOTAK MAHINDRA BANK

2003

-Madison Communications has won the Rs.30cr Kotak Mahindra's mediaAOR Account.


-The proposal of changing the name from 'Kotak Mahindra Finance Ltd'To 'Kotak Mahindra Bank Ltd' and the proposal to change the Authorized capital from 100, 00, and 00,000 divided into 10, 00, and 00,000 Equity shares of Rs.10 each has been approved by the company shareholders.

-RBI has granted license to Kotak Mahindra Finance Ltd to embark on Its Banking business.

-O & M has got the creative account of Kotak Mahindra Bank, and has said to be working professionally.

-Kotak Mahindra Bank has received a lot of interest from portfolio Investors, private equity investors and potential strategic investors.

-Kotak Mahindra Bank has entered into an ATM sharing agreement with UTI Bank, which would allow KMB's customer free access to around 800 ATM's.

-Kotak Mahindra Bank has started its operations in New Delhi byInaugurating a Branch Connaught place office.

-Dr.Shankar Acharya has been appointed as the Additional Director to the board of the bank.

-The Board of Kotak Mahindra Bank Ltd accepts the resignation of Mr.S.A.A Pinto and Mr.M.R Punja as the Directors of the Bank.

-Kotak Mahindra Investment Co Ltd. PCC a subsidiary of KotakMahindra Capital Company has constituted itself from a private company to a public limited company and has changed


Its name to 'Global Investment Opportunities Fund Ltd'.

-Kotak Mahindra bank has unveiled several home finance productsoptions which includes:Home loan, Home equity Loan, Home loan transfer and Home improvement loans.

--Kotak Mahindra Bank launches online remittance services called,FUNDS to HOME For Non-resident Indians.

-In response to the repo rate cut by the RBI, the Kotak Mahindra Bank has reduced its lending rates in home loans.

-Kotak Mahindra Bank Limited has informed that the equity shares of the Bank have been delisted from the Delhi Stock Exchange Association Ltd w.e.f December 10, 2003.

2004

-Kotak Mahindra Bank Limited has informed that the Bank's equityShares will be delisted from The Stock Exchange, Ahmedabad withEffect from January 20, 2004.

-Kotak Mahindra Bank sets up branch in Surat.

-Kotak Mahindra Mutual Fund has launched Kotak Opportunities, anOpen-ended equity growth scheme

-Kotak Mahindra Bank inks pact with Reuters

2005


-Kotak Mahindra Bank purchases stressed assets worth Rs 1,000 cr

-Kotak Bank joins hands with IndianNGOs.com

-Kotak Mahindra Bank invests Rs 25 cr in BFW

2006

-Kotak Mahindra joins hand HDFC Bank to share ATMs.

-Kotak Mahindra to buy out Goldman Sachs' stake in JVs

-Kotak Mahindra Bank sets up branch in Valsad

-Kotak Mahindra subsidiary acquires Ford Credit's auto portfolio

2007

-Kotak Mahindra Bank Launches Home Banking, Improves BankingExperience

-Kotak Mahindra Bank Launches Salary 2 Wealth

-Kotak Mahindra Bank Launches Kotak Gold Debit Card

-Kotak Mahindra Bank Ties up with Taxshax.com, Simplifies Filing of IT Returns

2008Kotak Mahindra Bank launched credit cards for its customers.

2009


-Kotak entered into tie up with Russia's top investment bank

-Kotak Mahindra Bank Wins IT Team of the Year for 3rdConsecutive Time at the Banking Technology Awards 2008

..SWOT ANALYSIS OF KOTAK MAHINDRA BANK..

1. STRENGTHS :

Professional management

Strong technology,

Well capitalized,

Comprehensive cash management system

Total Deposits Rs15, 645 crore

Net Advances Rs16, 625 crore

2. WEAKNESS :

Latecomers

Less Promotional Activities

3. OPPORTUNITIES:

Have best services & product compare to other bank

4. THREATS:

Capital Market slow-down

Other better Saving Facility by other Competitor


Rising Rates

investment option available (like Insurance, Mutual fund, Real-estate, Gold)

Government Rules And Regulation

……………..NRIs………………..


NRIsAn Indian Citizen who stays abroad for employment/carrying on business or vocation outside India or stays abroad under circumstances indicating an intention for an uncertain duration of stay abroad is a non-resident. Non –Resident foreign citizens of Indian Origin are treated on par with non-resident Indian Citizens (NRIs) for the purpose of certain facilities.

Main categories of NRIs

The following are the main three categories of NRIs:-

(i) Indian citizens who stay abroad for employment or for carrying on a business or Vocation or any other purpose in circumstances indicating an indefinite period of stay abroad.

(ii) Indian citizens working abroad on assignment with foreign government agencies like United Nations Organization (UNO), including its affiliates, International Monetary Fund (IMF), World Bank etc.

(iii) Officials of Central and State Government and Public Sector undertaking deputed abroad on temporary assignments or posted to their offices, including Indian diplomat missions, abroad.

For Non Resident Indians and Persons of Indian Origin we have a specially designed product range for banking and investments. Choose a product that


best suits your investment objectives, be it moderate return, quick liquidity or capital preservation. We offer

Diversified investment options Power packed NRI Accounts and Deposits Remittance and Foreign Exchange Services Insurance Portfolio Investment schemes under FEM

BANKING:NRO Rupee SavingsBank and easily access your Indian income and earnings with an NRO Savings account. You can also easily credit your account from anywhere in the world.

What makes the NRO Rupee Savings account different?

Deposits from any source in India and abroad are accepted subject to repatriation restrictions for foreign currency Pension, dividend, rent, and other current income can be repatriated on completion of documentation Transfer amounts up to a limit of USD 1 million each financial year on completion of documentation

Settle your International Credit Card dues through your NRO account for cards issued by banks in India The principal amount in an NRO Account is completely tax free while the interest earned is taxed* at 30% plus applicable surcharge and education cess (interest income less than Rs. Ten Lakhs)

*Tax Deducted at Source (TDS) certificates are issued.

NRE Rupee SavingsManage your overseas earnings with a totally tax-free, completely repatriable NRE Savings account. Benefit from an account designed to help you earn more from your Rupee savings in India.


What makes the NRE Rupee Savings account different?

Deposits from a local source accepted only if reparable No charge deposits of funds received from abroad as Traveler's cheques or foreign currency brought through normal banking channels into your account Accepts maturity proceeds of investments purchased from even NRE / FCNR Accounts The principal and interest earned in an NRE Account are completely tax free and exempt from Income Tax in India

Rupee Advantage Plan

Earn higher returns with an FCNR Deposit combined with a forward cover in INR under the Rupee Advantage Plan. Get this plan and add on to the benefits of the FCNR deposit.

What makes the Rupee Advantage Plan different?

Involves a forward contract on your FCNR Deposit in USD / GBP / EURO / JPY Deposit a minimum of USD 25,000 or equivalent in any of the four currencies Deposit for a period of 1 year 1 day for higher interest


Please note: Rates and Yields offered are provisional and subject to change at any time without prior notice. Please contact your Branch or Relationship Manager to confirm the yield before actual placement of funds.

FCNR DepositsEnjoy attractive returns from a fully reparable, zero tax liability FCNR Deposit account in various currencies. Protect your money from exchange rate fluctuations by maintaining your FCNR deposit in international currencies.


What makes the FCNR Deposit different?

Rupee conversion to Foreign currency before booking as an FCNR deposit Deposits from a local source accepted only if reparable No charge deposits of funds received from abroad as Traveler's cheques or foreign currency brought through normal banking channels into your account Accepts maturity proceeds of investments purchased from even NRE / FCNR Accounts The principal and interest earned in an NRE Account are completely tax free and exempt from Income Tax in India


NRO Term Deposits

Maximize your earnings in India and get easy access to your funds anywhere with NRO TDs. Carry out your transactions in India through your Term Deposits held in Indian Rupees.

What makes the NRO Rupee Term Deposit different?

Deposits from any source in India and abroad are accepted subject to repatriation restrictions for foreign currency Pension, dividend, rent, and other current income can be repatriated on completion of documentation Transfer amounts up to a limit of USD 1 million each financial year on completion of documentation Settle your International Credit Card dues through your NRO account for cards issued by banks in India The principal amount in an NRO Account is completely tax free while the interest earned is taxed* at 30% plus applicable surcharge and education cess (interest income less than Rs. Ten Lakhs)



Gain with the Kotak Max Yield NRO Deposit! Now you can earn more from your savings with a Kotak Mahindra Bank Max Yield NRO Deposit. Benefit from lowered tax rates on your Kotak Max Yield NRO Fixed Deposit under the Double Taxation Avoidance Agreement (DTAA) of India with these countries

CountryRate of TDS on interest for Max Yield NRO Deposit (with DTAA benefit)

Rate of TDS on interest for Regular NRO Deposit(without DTAA benefit)

US 15% 30% plus surcharge and cessUK 15% 30% plus surcharge and cessSingapore 15% 30% plus surcharge and cessSouth Africa 15% 30% plus surcharge and cessBelgium 15% 30% plus surcharge and cessKenya 15% 30% plus surcharge and cessSaudi Arabia 15% 30% plus surcharge and cessUAE 15% 30% plus surcharge and cessAustralia 15% 30% plus surcharge and cessCanada 15% 30% plus surcharge and cess

**Apart from basic account opening documentation, to avail of the DTAA benefit, a simple declaration stating that you are eligible for the DTAA provision will be required.

NRE Term Deposits

Benefit from NRE TDs with no tax liability, complete repatriability and a host of value added services. Invest in this term deposit to earn more from your India savings.

What makes the NRE Rupee Term Deposit different?Deposits from a local source accepted only if repatriable


No charge deposits of funds received from abroad as Traveler's cheques or foreign currency brought through normal banking channels into your account Accepts maturity proceeds of investments purchased from even NRE / FCNR Accounts The principal and interest earned in an NRE Account are completely tax free and exempt from Income Tax in India

P O Box Services

Sending your documents to India from the US or UK is now convenient and cost-effective! Sending your banking documents to us is now a matter of ease. Simply send a local courier to the address mentioned below. Your documents shall be picked up twice a week. Please do not include cheques or any other financial instruments, Kotak Mahindra Bank reserves the right to destroy such instruments or return them back to you.

TO KOTAK MAHINDRA BANK, INDIA - NRI SERVICES

USABOM/USA/1217614/KOTSPRING, P.O. BOX 688, BUFFALO, NY 14240-0688, UNITED STATES OF AMERICA

UKBOM/UK/1217614/KOTP.O BOX NO. 66, HOUNSLOW, TW59RT, UNITED KINGDOM


TO SEND YOUR DOCUMENTS TO KOTAK MAHINDRA BANK, INDIA:a. Print out this request letter- PO Box request formb. Fill it, sign it and attach it with your documents c. Send it by local, ordinary post to the P O Box location mentioned above. Do not use a courier or registered post service.

Terms & Conditions

Kotak Mahindra Bank Ltd., India shall not be responsible for any loss in transit or any monetary loss including loss on account of change in exchange rates, interest rates, deposit value date etc. arising due to the time elapsed due to return of the monetary instrument. Kotak Mahindra Bank Ltd. India is only availing of the services provided by Quantum Mail Logistics India Pvt. Ltd, in the aforesaid countries Twice a week, Quantum Mail Logistics India Pvt. Ltd India (the service provider), opens the P.O. Box and collects all packets / envelopes and couriers all documents to the Quantum Mail Logistics India Pvt. Ltd India Office from where they are sent to Kotak Mahindra Bank, NRI Services. Kotak Mahindra Bank Ltd. is not responsible for any loss in document arising out of the documents sent to a wrong address or documents lost in transit before reaching the Kotak Mahindra Bank Ltd. P.O. Box

Confidentiality of the documents send by the customer would be maintained

The users of the Post Box (PB) facility are availing the service at their own risk

Neither Kotak Mahindra Bank Ltd. nor Quantum Mail Logistics India Pvt. Ltd India will be responsible or liable to the user or any third party


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for the "Envelopes/Consignments or its Contents" (collectively referred as "Consignments") during the transit from the user to the PB On receipt of the Consignments in the PB, Quantum Mail Logistics India Pvt. Ltd shall be responsible for the Consignment to the user till it is transshipped and delivered to Kotak Mahindra Bank Ltd. - CPC NRI Cell, Mumbai. By availing the service of PB the user shall be deemed to have agreed to entrust the transshipment to India in his sole risk and discretion to G3 worldwide India and Kotak Mahindra Bank Ltd. is not liable or responsible for any loss or destruction of the Consignments in the hands of Quantum Mail Logistics India Pvt. Ltd.

User is aware that Kotak Mahindra Bank Ltd. will not process the documents without furnishing this letter duly filled with and in the event no letter or incomplete information are furnished Kotak Mahindra Bank Ltd. is neither responsible to return the documents to the user or to keep it in safe custody

In the event the users instruction/s cannot be carried out owing to any discrepancy or otherwise Kotak Mahindra Bank Ltd. may inform the user by email to the email ID furnished by the user. Kotak Mahindra Bank Ltd. is not responsible for non-receipt of such email on account of any incorrect email ID or systemic error or non-acceptance by the computer system of the user

Kotak Mahindra Bank Ltd. shall in its sole discretion destroy the documents after two months of receipt without any further reference to the user and the user agrees that Kotak Mahindra Bank Ltd. is not liable or responsible to either user or any other person for such destruction

User agrees that he shall be solely responsible for the contents of the Consignment and shall indemnify Kotak Mahindra Bank Ltd. for any loss or damage suffered to it on account of handling the contents or merely the letter being addressed to it in view of legal, regulatory or contractual requirements of the user.


Access India Debit Card

Enjoy seamless India access through your NRO Account whenever you visit home. Use this ATM plus debit card to carry out your India transactions when you visit home.

Benefits of the Access India Card

Access to any VISA ATM and stores accepting VISA in India Gift an Add-on Card to a person of your choice (above 18 years) for their personal use. Specify a daily withdrawal limit and link it with your account Stay updated on your account status with SMS alerts

Eligibility

NRO Savings / Current Account

Global Debit Card

Benefit from an International ATM plus debit card with VISA Power across the world. Access your account as you travel across countries and enjoy the benefits of the Kotak Global Debit Card.

Benefits of the Global Debit Card

Worldwide access to any VISA ATM and stores accepting VISA worldwide Specify a daily withdrawal limit and link it with your account Stay updated on your account status with SMS alerts

Eligibility

NRE Savings / Current Account

Phone Banking


Get personalized service round the clock at our 24 hr Customer Contact Center. Use the Kotak Mahindra Bank toll free number to access your account anywhere you go.

8 Benefits of Phone Banking

Instruct a Kotak officer to transact once you have the single or unconditional signing authority on your account View account balance, activity, transfer progress and more Cheque book request and account statements Request the latest interest and exchange rates State standing instructions or stop cheque payments Request Transfer of funds between accounts (NEFT) Open a Term Deposit or get information Inquire transaction status, Demat status of securities

Online Banking

Net Banking for easy access to your deposit, demat and investment accounts 24x7. View and transact with a single or unconditional signing authority on your account.

8 Benefits of Net BankingLog in with any of your Kotak Mahindra Bank NRI accounts View account balance, activity, transfer progress and more View and update personal details Request for a cheque book, PIN and other enhanced features Transfer funds online between accounts (NEFT) Open a Term Deposit View securities available for Demat Inquire transaction status, Demat status of securities

Privy League


Kotak Mahindra Bank introduces Privy League, a premium banking services offering financial solutions with exclusive benefits. Join the Privy League to expand your lifestyle, grow your wealth, travel the world, luxuriously and retire to comfort while you meet your responsibilities.

Privy League Membership:

Available to Resident Individuals and Non Resident Individuals Members above the age of 18 years only Choice of two plans based on your Financial Objective and Portfolio

o Gold Plan for Relationship Value* of INR 10 Lakhs

o Platinum Plan at a Relationship Value* of INR 25 Lakhs

Note: Relationship Value comprises of your balance across Savings Accounts, Deposits and Investments. Privy League members are required to maintain a Savings Account with an Average Quarterly Balance (AQB) of INR Rs. 50,000.

Special Privileges for Privy League Customers:

Premium Banking: With Privy League you enjoy access to a range of financial solutions with your bank account in addition to accelerated customer service from your dedicated Relationship Manager.

Banking Privileges:

Privy League Platinum Debit and ATM Card with flexi limit facility and added waivers and offers Home Banking services like Bill Pay, Kotak Payment Gateway and Investment Convenience Locker services across multiple locations (in select branches) at a preferential price


Kotak Gold Eternity offers on are Swiss-made, 24 - Carat pure, 99.99% Assay certified Gold coins and bars ranging from 5 to 100 gms Internet banking to access special offers, promotions and exclusive benefits under the Privileges section Preferred Processing of banking transactions at all branch locations Special Fees and Charges on various services Tax Advisory Services through our tie-up with Sudit K. Parekh & Co. and easy tax payments payable at a Kotak Mahindra Bank branch itself

Lifestyle Updates: Experience the world of culture, sport and indulge your choice of leisure activities with Privy League lifestyle offers.

Lifestyle Privileges:Dining benefits at the best restaurants in town Entertainment & Leisure Privileges with exclusive invites to movies, premiers, theatrical plays, sporting events and more Attend knowledge-based seminars, Tax Advisory or Investment workshops, premium car test-drives and lifestyle product launches Convenience Offers like gifting services to your loved ones on special days round the year from a choice of flowers, bouquets and chocolates Travel and Holiday offers with tie ups for car rentals, travel operators, hotels, rejuvenation centres and much more Concierge Services available with the VISA Platinum Card on travel plans, business equipment, entertainment plans and other specialty services courtesy of VISA

Note: Terms and Conditions applicable. Details of Lifestyle Privileges are available under the Post Login section of Net Banking.

TRANSFERS

Direct DebitMake a paperless transfer with just one click


Use this simple method to send home money from the comfort of home. This online remittance facility uses the standard Automated Clearing House (ACH) platform.

How you can register for Direct Debit

Log on to FUNDS to HOME Register for Direct Debit Provide details Validate your account After 5 days, activate facility from a link in your FUNDS to HOME account Send your remittance

Get funds in your Kotak Mahindra Bank Account within 5 working days* Demand Drafts will be delivered in 3 working days** *5 working days after instructions have been received by us. Working days- not including Saturdays, Sundays and Public Holidays in both countries. *3 days after receipt of funds at Kotak Mahindra Bank for Metros and Non-Metros (not including Saturdays, Sundays and Public Holidays).

Wire TransferSend home money to your Kotak bank accountMake a direct transfer from your account abroad to Kotak Mahindra Bank to send home money in the most secure manner. REGISTRATION

ChequeSend home money to your Kotak bank accountNow you can encash any cheques drawn on your Kotak Mahindra Bank Account through your FUNDStoHOME account.

How to make a Cheque transfer

Log on to FUNDS to HOME Provide cheque details


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Mail the instrument toPO Box 11448A - New York NY 10286 1448*

This Lock Box address is mentioned in the deposit slip

Remittances from ME

Send home money to your Kotak bank accountTransfer money at economical rates through the Exchange Houses and Money Transfer Agents having an arrangement with Kotak Mahindra Bank.Make a cost-effective money transfer through agents across the Gulf, North America, Europe, Asia and Australasia. This remittance in Indian Rupees is specially designed to benefit NRIs in the Middle East.

How do I transfer money through a Kotak partner?

Select the branch or designated associate outlet of your convenience. Wire Transfer

Use Kotak Mahindra Bank's wire transfer facility to make secure international wire transfers from your bank account. You can move money from your account to a Kotak Mahindra Bank account in India with ease.

What details do I need for a wire transfer?

Kotak Mahindra Bank's Correspondent Bank Nostro account number and SWIFT Code. Click here to see Correspondent Banks. The beneficiary's account number with Kotak Mahindra Bank Branch. Specify the identification for your name and address in the remittance message in this format to your overseas banker. State the purpose of the remittance with instructions for the Bank to invest the funds. (To book an FCNR term deposit, mention it clearly including the currency of deposit) Ensure mention of complete details in the message by the local remitting bank. Kotak Mahindra Bank SWIFT Code : KKBKINBB


http://www.kotak.com/Kotak_BankSite/nri/page/correspondent-banks

NOTE : Kotak Mahindra Bank does not take any responsibility for delay in receipt of funds from the Originating Bank due to incomplete information.

ChequeWrite out a Cheque or demand draft favoring your Kotak Mahindra Bank Account and leave the money transfer to us. Remember! Check if the demand draft is valid and not endorsed

Currency Turn Around Time for Transfer to beneficiary Account*

USD6 working ** days for USD instruments drawn on banks in New York City.14 working ** days otherwise.

Euro 10 working ** days

GBP 10 working ** days

SGD 21 working ** days* From the date of credit to Kotak Mahindra Bank's nostro account.** Excluding Saturdays, Sundays and Public Holidays

INVESTMENTS:

Investment Account

View your portfolio, receive alerts and do more in your Investment account at your convenience. As a Kotak Mahindra Bank customer, you can open your Investment account even with a zero balance.

Your Kotak Investment Account gives you more:

Stay updated with a daily MF Portfolio statement Link your Net Banking account with your MF purchases for filling MF forms or cheques for every transaction Receive redemption proceeds directly in your Bank Ac View your Portfolio Statement for a consolidated report of all your MF investments, across schemes, with latest NAV information, updated returns status and more


Get Mutual Fund Recommendations Choose between opening an online investment account with us on a reparable or on a non-reparable basis*.

NOTE: As Per the regulatory framework, the investments for all existing Kotak customers with an investment account are re-grouped into separate investment accounts. The re-grouping is based on the Reparability status of the Folios held to help you manage your investments efficiently.*Online Mutual Fund investment services are available to NRIs in all countries except those based in USA and Canada. NRIs based in UK can register on visit to India

Recommendation

Earn more with your pick of mutual funds from a recommended list of consistent and highly performing mutual funds. Kotak prepares a list of top performing mutual funds for your reference every quarter.

How do you judge MF performance?

Kotak's comprehensive process accounts for both high returns and consistency of returns to select the best performing Mutual Fund schemes.The main criterion for selection is the Excess Return Potential Ratio to test the performance consistency of the funds. The research includes keen analysis across four time horizons, every 6 months. Some factors are:

Reward to Risk Analysis Portfolio Characteristics Corpus size

MF AssistanceGain from expert advice and analysis at each step with Kotak Mahindra's experienced research team. Find the MF option most suitable for you with latest mutual fund communication like fact sheets from Kotak's team of experts.


How we choose MFs on the Kotak advisory list?

The Kotak team of experts investigates:Asset Management Company's Investment philosophy Portfolio quality Risk-adjusted returns of the scheme

What does the advisory list include? The Kotak MF advisory list ranges from Debt to Equity funds. These MFs are selected from high performing schemes observed under reputed Mutual Fund houses like Franklin Templeton, Reliance, Prudential ICICI and others.

Demat AccountInvest in the Indian market through Kotak depository services with easy to trade shares in the "demat" format. Do more with your investments through Kotak Mahindra Bank's highly efficient depository service. Once you consolidate your shares in a Demat account, you can trade all your securities at your convenience.

Why open a Kotak Demat Account?

At Kotak Mahindra Bank, you pay the minimum service charges in the market We take care of paper work like debt requirements of companies (Issue of Commercial Paper, Certificate of Deposits, etc.) to us Your composite Demat Account can hold not just equity shares but also Government Securities and bonds Get any query or assistance from a dedicated and trained Customer Care Officer even while you transact

Portfolio Investment Services

You can now purchase equity shares and convertible debentures in India under the Portfolio Investment Scheme (PINS). With the Kotak Group of financial services, your transactions are seamless across accounts. It is easier than ever to


invest and earn from the Indian secondary market through a PINS account designed for NRIs by the Reserve Bank of India.

How can I open a PINS account?

Open a PINS accountat any of these RBI Designated Branches Call Kotak 24x7 Customer Care Mail us at [email protected] Visit any Kotak Branch

NOTE: Online PINS investment services are available to NRIs in all countries except those based in USA and Canada. NRIs based in non GCC countries can register on visit to India.

Kotak Term and Preferred Term Plans:

Now you can profit from a pure risk cover policy that also offers life cover at minimal costs. This plan helps you pay off your outstanding debts like a mortgage, a home loan etc. The Kotak Preferred Term Plan offers special premium rates for a sum assured of Rs.10 lakhs and above for non-smokers and women. The policy is non-participating but has value added benefits you can choose to gain with this plan.

How do you gain?Low cost insurance plan with high cover Special rates for women and non-tobacco users Flexibility in choice of Premium Payment Choose from - regular, single and limited premium payment options

Growth PlansChoose the right insurance policy from a range of options


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mailto:[email protected]

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Kotak Smart Advantage Plan:

Make way for your future plans with the Kotak Smart Advantage policy from Kotak Life Insurance. This market linked plan invests your savings with 100% premium allocations to make your money grow consistently over a long term.

How do you gain?

Guaranteed returns of up to 275% on the first year premium, paid at maturity Increased fund value with regular loyalty bonus during the term of the policy Maximized earnings with 100%* Premium allocation from second year onwards Flexible choice of life cover Protection for your family and loved ones

*Applicable for premium sizes of Rs. 36,000 and above annually from second year onwards.

Kotak Easy Growth Plan:

Earn more today with the market linked Kotak Easy Growth Plan with a single premium option. This insurance plan meets the need for lifelong security with a single payment through your choice of up to six fund options.

How do you gain?

One-time premium payment Life ling Investment benefit Choose from six fund options varying in growth and returns Increase investment by up to 25% of single premium paid Easy exit options with access to cash withdrawal


Kotak Capital Multiplier Plan:

See your investment multiply with the Kotak Capital Multiplier Plan. This endowment plan allows your capital to grow in the market and also gives you the flexibility to withdraw amounts whenever you require it.

How do you gain?

Flexible extension of policy term beyond maturity Earn additional 10% above the original life-cover across the policy term Withdraw plan maturity proceeds with a free ATM card Increased fund value with regular loyalty bonus during the term of the policy Add to your policy amount with top-up premiums

Savings PlansChoose the right insurance policy from a range of options

Kotak Flexi Plan:

With this market-linked investment plan, you can provide for the future and ensure protection for your family. The Kotak Flexi plan manages to earn efficient returns over the long term while securing a Guaranteed Maturity Value at the same time.

How do you gain?

Grow your money with market highs and be risk safe during market lows Choose from a wide range of funds per your risk capacity Select a Limited Premium or Regular premium payment option Increase your Investments any time with a premium top-up Enjoy easy liquidity through partial withdrawal of maturity proceeds

Kotak Endowment Plan:

Protect your family during contingencies while growing your savings today. Kotak Endowment Plan is a participating plan that allows you to earn over a long term through regular investment.


How do you gain?

Earn from your savings and enjoy life cover Get extra bonuses on the plan Make a Limited premium payment per your convenience

Kotak Premium Return Plan:

Get risk coverage and assured returns with the Kotak Premium Return plan. You receive a certain amount of the premiums paid back depending on the option you choose along with maturity benefits available.

How do you gain?

Minimum premium payments Get back premiums paid depending on term of the plan Hassle free plan as it does not require a medical examination

Kotak Money Back Plan:

Earn back a percent of the amount assured in cash with the Kotak Money Back Plan. This participating, savings plan gives you a life cover benefit while allowing you a regular income every five years.

How do you gain?

Minimum premium payments Benefit from guaranteed Additions on maturity Get a 7% increase in sum assured at the end of each year under death ……benefit Enjoy bonuses from the plan

Kotak Safe Investment Plan II:

Benefit from a unit linked plan that earns through the capital market and also offers risk cover. You can enjoy a Guaranteed Maturity Value where you profit from the market highs but do not lose with market lows.


How do you gain?

Grow your money with market highs and be risk safe during market lows Choose from a six fund options per your risk capacity Select a flexible risk cover option per your needs Increase your Investments any time with a premium top-up Enjoy easy liquidity through partial withdrawal of maturity proceeds

Kotak Retirement Income Plan:

Save for your old age with the Kotak Retirement Income plan with a choice of "with cover" for life or "without cover."

How do you gain?

Specify retirement age anytime between 45 yrs. and 65 yrs. Flexibility to opt for early retirement due to ill-health Increase investments with a premium top-up before retirement Increase your Investments any time with a premium top-up Get Automatic Cover Maintenance, under the "with cover" option to ensure coverage in spite of unpaid premiums after first three years of the term.

Kotak Retirement Income Plan (Unit Linked):Make a high earning investment for your future with unit linked Kotak Retirement Plan. This investment plan earns for you even after you are no longer employed. You can choose the extent of investment risk and guarantee against falling markets.

How do you gain?

Maximum earnings with capital preservation Choose from five fund options Flexibility to opt for early retirement due to ill-health Increase your Investments any time with a premium top-up


………NRI HELP CENTRE...........

OIFCThe Kotak Mahindra Group has joined the Overseas Indian Facilitation Centre (OIFC) as a Strategic Partner. This alliance will give Kotak a platform to share its comprehensive range of Wealth Management Advisory and Investment offerings in form of products and services for Non Resident Indians (NRIs) and Persons of Indian Origin (PIOs). These offerings from the Group are specifically customized to suit the overseas Indian investors' personal financial needs.

The Overseas Indian Facilitation Centre is a not-for-profit public private initiative between the Ministry of Overseas Indian Affairs (MOIA) and Confederation of Indian Industry (CII), established as a focal point for facilitating the process of economic engagement of the Indian diaspora with India. At the Pravasi Bharatiya Divas Convention, being hosted this year (7th - 9th January, 2010), at Vigyan Bhawan, New Delhi, Kotak will also showcase its expansive portfolio of financial products, with interactive opportunities for participants to get a closer insights of all that the Group is into and avail of taxation, real estate or financial advisory services. The focus of this convention held every year is on bringing together eminent overseas Indians to engage, interact, and build networks for mutual benefit, besides having Ministers of States together on issues that their states need to attend on priority to improve facilities and incentives for the overseas Indian community

Wealth Management


Kotak Wealth Management brings you a complete, customized financial plan that advises you on your asset allocation and what schemes to invest in, factoring in all your financial objectives.

The products offered are broadly divided into Traditional and Specialized categories:

Traditional Investments comprise mainly of Direct Equity, Mutual Funds, Insurance Specialized Investments include diverse investment opportunities namely:

o Structured Products- a pre-packaged investment strategy based on

…derivatives, such as a single security, a basket of securities, options, indices, commodities, debt issuances and foreign currencies. A feature of …some structured products is a "principal protection" function which offers …protection of principal if held to maturity.

o Private Equity- equity securities of unlisted companies.

o Real Estate - Real estate funds founded by a group of real estate

professionals/experts to 'manage' property/real estate for the investor.

o Estate Planning- a process involving the counsel of professional

advisors who are familiar with your goals and concerns, your assets and how they are owned, and your family structure.

International SubsidiariesThe international subsidiaries of Kotak Mahindra Bank Limited, through their offices in London, New York, Dubai, Mauritius, San Francisco and Singapore specialize in managing a wide range of India investment funds through which overseas investors like you can invest in India. Click here to know more

NRI Banking Kotak Mahindra Bank offers Banking and Investment Solutions for a jet setting Non Resident Indian like you. Click here to know more


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Briefly, the product range includes NRE Accounts- available in the form of Savings and Term Deposits which are completely reparable and tax-free, NRO accounts- available in the form of Savings and Term Deposits to manage your income in India, Foreign Currency Non Resident Accounts (FCNR)- available in the form of Term deposits denominated in USD/GBP/EUR/ JPY which are completely reparable and tax-free. There are also special products like Max Yield Deposits where you can earn a higher return on your NRO deposits through the DTAA benefit, Ace Deposit- a unique product that invests interest earned on your deposit into Equity Mutual Funds and hence creates an avenue for earning market linked returns, while safeguarding the principal amount of the Fixed Deposit, Overdraft Facility against Term Deposits, and Privy League which is an exclusive offering for select clientele who expect more out of their banking experience.

Investments through Kotak Mahindra BankPortfolio Investment Services Profit from investment in equity shares in India under the Portfolio Investment Scheme (PINS). You have the option of investing online* too!

Mutual Fund Services View your portfolio; receive alerts and more through your Investment account at your convenience. Choose between opening an online investment account with us on a repatriable or on a non repatriable basis*.

Home FinanceBuy your space in India with any of Kotak's flexible options to finance your dream home. Get a host of attractive features customized to NRI needs with an easy to avail home loan.

*the online facility is not available in certain countries. Contact us for this information.


Kotak Securities - Direct Equity Investments Kotak Securities offers you specialised products depending on your requirements and also provides conventional brokerage & advisory services. Click here to know more

Investment products offered includeTRINITY- seamless investment facility into shares and mutual funds Portfolio Management Schemes Discretionary - Investing in equities requires time, knowledge and constant monitoring of the market. If you need expert help, this scheme is an excellent solution Non-Discretionary- A consultative and transparent method of investing where you are always consulted and informed of investment decisions, thus giving you total control Corporate fixed deposits & government bonds

Kotak Life Insurance At Kotak Life Insurance, we understand your attachment to your homeland and need to save for you family's future. We offer you a suite of products that would suit your requirements. Click here to know more.

Basic information: Investment Modes- Invest seamlessly from your NRE or NRO bank accounts. Foreign currency policy- you have the option of foreign currency policy, i.e. your Sum Assured is represented in equivalent foreign currency. Claim Settlement - Your claims are paid in the same proportion of the currency in which you make premia payments Tax Benefits- Under the Income Tax Act, 1961:


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Tax deductions are available against the income earned in India and taxable in India.. The claims and the premiums paid are tax free

Risk ProfilerEstimate and understand your investment risk profile based on 11 questions to help recognize the right investment type for your profile.

Investment WizardUse this simple wizard for getting started on your india investments with three easy steps.

PAN ProcedureEvery Indian citizen entering a financial transaction in India is mandatorily required to have a Permanent Account Number. It is the sole identification number for the purpose of tax payments and investments.

What is a PAN Card?

Stands For: Permanent Account Number (PAN)Contains: 10 alphanumeric numbersIssued by: The Income Tax DepartmentManaged by: UTI Investor Services Ltd. (UTIISL) The National Securities Depository Limited (NSDL)Validity: LifetimeSTART

Why apply for an NRI PAN Card?

An NRI PAN Card is required for almost all transactions of which some are:Paying taxes on Indian income under the Income Tax Act, 1961 Investing in securities per the Securities and Exchange Board of India (SEBI)* Investing in Mutual Fund schemes for all existing and prospective investors


http://www.kotak.com/Kotak_BankSite/nri/getting-started/getting-started.html

Opening an account through the enhanced Know Your Customer ('KYC') procedure** Purchase and sale of property in India Purchase and payments of vehicles Securing a telephone connections Making time deposits in a bank worth over Rs.50,000

* Securities and Exchange Board of India (SEBI) Circular dated April 27, 2007 for all transactions irrespective of the amount with effect from July 2, 2007** For any investment or transaction equal to or more than Rs. 50,000/- under the Prevention of Money Laundering Act, 2002

PAN Application

How to Apply for an NRI PAN Card?

Read Instructions to fill Form 49A, the application form for a PAN. Select a convenient method to access the form

1. Online form submission through UTITSL 2. Download form from the Income Tax, UTIISL and NDSL

websites. 3. Collect form locally from IT PAN Service Centers or TIN

Facilitation Centers

Attach required proofs and make the payment.

Beware of AIR Reports of TaxmenBy Ameet Patel The Government of India is in a very aggressive mode as far as collecting information about large financial transactions is concerned and also about tracking tax evaders. There is a also a very strong movement to make many processes relating to tax administration electronic and automated. This would ensure that the Income-tax department has a central database of all tax payers in


http://www.utitsl.co.in/utitsl/uti/newapp/nriapplication.jsp

the country along with details of large financial transactions entered into by each such person in a year.One important tool used by the Government to collect such information is the AIR.

What is AIR? AIR is an abbreviation for the term "Annual Information Return". AIR was made effective from the financial year 2003-04. An AIR has to be filed by the prescribed person who is responsible for registering or maintaining books of accounts or other documents containing record on any specified financial transaction under any law for the time being in force.

Use of AIR? The purpose of collecting such information is to ensure that a person who enters into such transactions duly accounts for all such transactions for which information is independently collected from the specified persons through the AIR.Section 14A of the Income-Tax ActBy Ameet Patel

Introduction:Section 14A was brought onto the statute by the Finance Act, 2001 with retrospective effect from 1st April, 1962. While introducing this section, the Finance Minister has explained the rationale for this section as follows:

"No deduction for expenditure incurred in respect of exempt income against taxable income

Certain incomes are not includible while computing the total income as these are exempt under various provisions of the Act. There have been cases where deductions have been claimed in respect of such exempt income. This in effect means that the tax incentive given by way of exemptions to certain categories of income is being used to reduce also the tax payable on the non-exempt income by debiting the expenses incurred to earn the exempt income against taxable income. This is against the basic principles of taxation whereby only the net income, i.e., gross income minus the expenditure, is taxed. On the same


analogy, the exemption is also in respect of the net income. Expenses incurred can be allowed only to the extent they are relatable to the earning of taxable incomeIt is proposed to insert a new section 14A so as to clarify the intention of the legislature since the inception of the Income-tax Act, 1961,that no deduction shall be made in respect of any expenditure incurred by the assessee in relation to income which does not form part of the total income under the Income-tax Act."

Objective of the section: Based on the above rationale, it would seem that the objective of the section is to prevent tax payers from setting off expenses incurred to earn tax free income against other income which is taxable. What this means therefore is that a tax payer must, in the first place, have tax free income and must have actually incurred expenses to earn such tax free income. The next step then would be to quantify such expenses and ensure that the same are not claimed by the tax payer as a deduction against any other income.

Computation of the disallowance: As per the section, in the following circumstances, the tax officer has to compute the disallowance as per Rule 8D:

1) When he is not satisfied with the correctness of the claim of expenditure made by the tax payer or2) When the tax payer claims that he has not incurred any expenditure to earn tax free income.Rule 8D lays down the computation mechanism for this purpose. The formula laid down in the said Rule is highly unfair and does not take into cognisance the facts of any case. It merely lays down an arithmetical method of arriving at a disallowance. This disallowance often comes to much more than the entire expenses debited to the Profit and Loss Account by the tax payer.

Recent developments:


Once the Rule 8D was notified sometime in early 2008, the tax officers have been mechanically applying the said Rule to all pending assessments. In most cases, they have been rejecting the working prepared by the tax payer and huge disallowances have been made under section 14A based on the irrational computational mechanism laid down in the Rule.

However, the latest development has made matters even worse now. Recently, the Income-tax Appellate Tribunal had occasion to decide on the issue of applicability of the section in those cases where a tax payer had invested money in investments, the income from which, as and when received, would be tax free in the hands of the tax payer. In view of conflicting decisions of various Tribunals in the matter, it was decided to constitute a Special Bench. This Special Bench at Delhi has given its decision vide its consolidated order dated 5th August, 2009 in the case of ITA Nos. 87/Del/2008, 4788/Del/2007 and 233/Ahd/2006The gist of the Special Bench decision is that section 14A would be applicable even in those cases where the tax payer has not earned any income which is tax free but has invested funds in investments which, when they start yielding income, such income would be tax free. The rationale of the Special Bench in coming to this conclusion was its interpretation of the language of section 14A. According to the Special Bench, what was relevant was to work out the expenditure in relation to the exempt income and not to examine whether the expenditure incurred by the assesse has resulted into exempt income or taxable income. It held that when the expenditure is incurred in relation to income which does not form part of the total income , it has to suffer the disallowance irrespective of the fact whether the income is earned by the assesse or not. Section 14A does not envisage any such exception The Tribunal also held that the earlier decisions of the Supreme Court in the case of Maharashtra Sugar Mills and Rajasthan State Warehousing holding that if there is one indivisible business, the entire expenditure is allowable, would have no application after the introduction of section 14A. Thus, as per this decision, even if the tax payer has not earned any tax free income in a year, yet, a part of his expenses would necessarily have to be disallowed under section 14A read with Rule 8D if funds


have been borrowed at a cost and if the tax payer has investments in shares or mutual funds, the income from which, when received, would be tax free.

Implications of the decision: The implications of this decision would be very harsh on those tax payers who have borrowings and who have invested in shares and mutual funds. In such cases, even if the investments are long term and/or strategic ones and even if there is no income actually accruing or received during a year, there would still be a disallowance of part of the interest paid based on the formula laid down in Rule 8D. It is pertinent to note that the decision is that of the Special Bench and hence carries more persuasive value than an ordinary Tribunal decision. This is also binding on the other benches of the Tribunal. Hence, now to adopt a different view, one will have to wait till some High Court decides the matter in favor of the assesse. It would be very risky to take a stand that no expenses have been incurred to earn tax free income or that since there is no tax free income; the question of disallowance of any expense does not arise

Tax AlertIn a recent ruling in the case of a Mauritian company E*TRADE Mauritius Ltd.1 (ET Mauritius), the Authority for Advance Ruling (AAR) held that ET Mauritius is not liable to pay capital gains tax in India in respect of the transfer of shares held by it in AAR Ruling in case of E Trade Mauritius- Read Details.pdf

Advisor's ProfileAmeet Patel is a Chartered Accountant and a tax partner at Sudit K Parekh & Co., Chartered Accountants. Ameet is a rank holder and has secured ranks at the Inter and Final CA examinations at the all India level. He is an avid writer and has contributed articles to various magazines and websites including CNBC's moneycontrol.com. He specializes in corporate taxation and advises several reputed companies, mutual funds and FIIs. He is also the Immediate Past President of Bombay Chartered Accountants' Society which is a voluntary organization of Chartered Accountants and has more than 8,000 members from




all over India. He is currently the Chairman of its InfoTech Committee and a member of the Taxation Committee. He has co-authored two books on taxation

Overdraft FacilityOverdraft limit against NRE and FCNR Deposits enhanced to Rs.100 Lakhs against the previous overdraft limit of Rs.20 Lakhs.

Credit to NRE encashmentProceeds of demand drafts/ banker's Cheque issued against encashment of foreign currency can be credited to NRE accounts where such instrument issued is supported by an Encashment Certificate issued by AD category I/ category II (Authorized Money Changers).

NRO accountRemittance facility is available up to USD 1 million per financial year subject to prescribed documentation. READ CIRCULAR


http://www.kotak.com/Kotak_BankSite/nri/nri_files/pdf/nro_account.pdf

Analysis

Summer internship program is a crucial part of building student’s practical know-how about real corporate market. In this business scenario it must require to update ourselves with current market happenings relating to banking, insurance, economy, and other various markets.

For such a requirement the institute provides the summer internship program for students for updating themselves to current corporate scenario. On this basis our NIS Academy provided us the SIP in KOTAK MAHINDRA BANK at the V.V.Nagar branch. For such training in KOTAK MAHINDRA BANK, the interview was conducted at our institute. And finally the 9 students were selected for further training in bank. The training period is for 2 months i.e. 1 st

July to 31st August.

Before starting our training, the branch manager of KOTAK MAHINDRA BANK i.e. Mr. Pramod Chauhan had provided us the orientation lectures towards the project at KOTAK BANK. He has imparts needed knowledge about the project proper. He has also solved the queries of students about banking performance towards its clients. Then our actual training started.

The training is based on NRI banking products and services provided by the bank and it contains the project title named as “Market study and customer mapping for banking products and services“. In such project training we have prepared a questionnaire regarding NRI database to provide better banking


services to them. For that purpose we had obliged to collect NRI information within the ANAND District guided by the branch manager.

For further training for collecting NRI information, we have prepared certain routes to different villages of ANAND. Then we have divided two groups for collecting data. By this way we have covered much villages of ANAND for our project training. We gain much experience from such a field work like confidence in ourselves, body language, and our behavior towards different class of people, etc.

During training period, the students are required to report at KOTAK Bank on a daily basis for submitting NRI database information. This is because we were provided some guidance from the Branch Manager for effective presentation to the people for collecting information from them. By the efforts of both group of students, we reached at approximately 1200 respondents for the purpose of collecting NRI information from them. From which 400 were NRIs and we had analyzed these 400 NRIs for further procedure of analysis for providing them better Banking products and services provided by the KOTAK MAHINDRA BANK.


Documents

kotak report