A SUMMER TRAINING PROJECT REPORT

ON

“Impact of IT on the Banking Industry:

A Research Study on Kotak Mahindra Bank”
SUBMITTED IN THE PARTIAL FULFILLMENT FOR THE AWARD OF

DEGREE OF MASTERS OF BUSINESS ADMINISTRATION 2009-11

UNDER THE GUIDANCE OF:

MS. KIRAN VASISHTHA

FACULTY, RDIAS
SUBMITTED BY:

MANISHREE GUPTA
ROLL NO.00815903909 (MBA III SEMESTER SECTION A)

RUKMINI DEVI INSTITUTE OF ADVANCED STUDIES

(Approved by AICTE, HRD Ministry, Govt. of India)

Affiliated to Guru Gobind Singh Indraprastha University, Delhi

2A & 2B, Madhuban Chowk, Outer Ring Road, Phase-1, Delhi-110085.

CONTENTS
Student declaration i
Certificate from Company ii

Certificate from Company Guide iii

Certificate from Mentor iv

Acknowledgement v

Executive Summary vi

List of Tables vii

List of Graphs viii

CHAPTER- 1 RESEARCH METHODOLOGY

1.1 Purpose of the study 1

1.2 Research Objectives of the study 1

1.3 Research Methodology of the study

1. 3.1 Research Design 1

1.3.2 Data Collection- Primary & Secondary data 2

1.3.3 Sample design

1.3.3.1 Population 2

1.3.3.2 Sample size 2

1.3.3.3 Sampling method 2

1.3.4 Method of data collection

1.3.4.1 Instrument for data collection 3

1.3.4.2 Questionnaire 3

1.3.5 Limitations 3
CHAPTER-2 REVIEW OF LITERATURE 4

CHAPTER-3 INTRODUCTION

Introduction 6

What is a Bank? 6

History of Banking 7

Industry Overview 8

Banking in India 9

IT Revolution in the Banking Industry 10

Technology at KMBL 11

RBI 11

CHAPTER-4 ABOUT KOTAK MAHINDRA BANK

About Organization/ Company Profile 13

CHAPTER -5 BANKING CHANNELS-RETAIL LIABILITIES

Banking: Retail Liabilities 18

Kotak Product Line 20

Convenience Banking 26

NET BANKING 27
MOBILEBANKING 28
PAYMENT GATEWAY 30
PHONEBANKING 32
ATM BANKING 34
SMS BANKING 35
ALERTS 37

IT Team of the Year: Kotak Mahindra Bank Ltd 37

CHAPTER -6 ADVANTAGES & CHALLENGES

Advantages of Alternate Banking Channels 56

Improvement in the bank’s profitability 59

CHAPTER -7 ANALYSIS AND INTERPRETATION 60

CHAPTER -8 FINDINGS 63

SWOT Analysis of KMBL 74

CHAPTER-9 RECOMMENDATIONS AND SUGGESTIONS 76

CHAPTER-10 CONCLUSION 78

Bibliography 79

ANNEXURE : Questionnaire 80
 STUDENT DECLARATION

This is to certify that I have completed the Project titled “IMPACT OF IT ON THE
BANKING INDUSTRY: A RESEARCH STUDY ON KOTAK MAHINDRA
BANK” under the guidance of “Ms. Kiran Vasishtha” in the partial fulfillment of the
requirement for the award of the degree of “Masters in Business Administration” from
“Rukmini Devi Institute of Advanced Studies, New Delhi.” This is an original work and I
have not submitted it earlier elsewhere.

………………….
(Manishree Gupta)
Enrollment No. 00815903909
(MBA III A)
 CERTIFICATE
This is to certify that the project titled “IMPACT OF IT ON THE BANKING
INDUSTRY: A RESEARCH STUDY ON KOTAK MAHINDRA BANK” is an
academic work done by “MANISHREE GUPTA” submitted in the partial fulfillment of
the requirement for the award of the degree of “Masters in Business Administration”
from “Rukmini Devi Institute of Advanced Studies, New Delhi.” under my guidance and
direction. To the best of my knowledge and belief the data and information presented by
her in the project has not been submitted earlier elsewhere.

Ms. Kiran Vasishtha

(Project Guide)
RDIAS
 ACKNOWLEDGEMENT

"Gratitude is not a thing of expression; it is more a matter of feeling."

There is always a sense of gratitude which one express towards others for their help and
supervision in achieving one’s goals. This formal piece of acknowledgement is an
attempt to express the feeling of gratitude towards people who helped me in successful
completion of my training.

I express my sincere gratitude to my corporate mentor Mr. ATUL SHARMA, Branch

Operations and Service Manager, Kotak Mahindra Bank, Chawri Bazar Branch for his
able guidance, continuous support and cooperation throughout my project, without which
the present work would not have been possible. I would also like to thank Mr. RAZAT
BHUTANI, Branch Manager Kotak Mahindra Bank Chawri Bazar Branch for giving
me an opportunity to be a part of the team and learn a lot from the same.

The entire team of Kotak Mahindra Bank also deserves a special mention for their
constant support and help throughout the tenure of the internship which helped me in
learning new things and processes at every step.

Special thanks to Ms. Kiran Vasishtha & Ms. Mukta Sharma who guided me to work
honestly and gave valuable suggestions for improving my work. Last but not least I
would also like to place appreciation to all the respondents whose responses were of
utmost importance for the project.

Above all no words can express my feelings to my parents, friends and all those persons
who supported me during my project. I am also thankful to all the respondents whose
cooperation & support has helped me a lot in collecting necessary information.

I would also thank almighty God for his blessings showered on me during the completion
of project report.
 EXECUTIVE SUMMARY
Organized banking in India originated in the first decade of 18th century. The first banks
were The General Bank of India, which started in 1786, and Bank of Hindustan, both of
which are now defunct. The oldest bank in existence in India is the State Bank of India,
which originated in the "The Bank of Bengal" in Calcutta in June 1806.

Currently, overall, banking in India is considered as fairly mature in terms of supply,

product range and reach-even though reach in rural India still remains a challenge for the
private sector and foreign banks In March 2006, the Reserve Bank of India allowed
Warburg Pincus to increase its stake in Kotak Mahindra Bank (a private sector
bank) to 10%. This is the first time an investor has been allowed to hold more than 5%
in a private sector bank since the RBI announced norms in 2005 that any stake exceeding
5% in the private sector banks would need to be vetted by them. According to a report by
ICRA Limited, a rating agency, the public sector banks hold over 75 percent of total
assets of the banking industry, with the private and foreign banks holding 18.2% and
6.5% respectively.

The major work in this research project has been done with the view to analyze the
impact of information technology on the Direct Banking Services and to know the areas
where the bank’s performance is lagging behind. A questionnaire was developed and was
filled from various customers of KOTAK and its competitors.

The analysis of the data so collected was the next logical step to undertake. The data was
tabulated, the responses were noted and suitable tools and techniques were applied to
infer the data. The survey revealed several important areas of concern for Kotak.
 LIST OF TABLES
S.No. Table Page No.

1. TABLE 7.1 Profile of Respondents 60

2. TABLE 7.2 Age Group of Respondents 61

3. TABLE 7.3 Bank Preference of Respondents 62

4. TABLE 7.4 Banking Convenience 63

5. TABLE 7.5 Frequency of usage of Direct Banking Channels (DBC) 64

6. TABLE 7.6 Focus while using DBC 65

7. TABLE 7.7 Types of DBC used 66

8. TABLE 7.8 Factors considered while opting for DBC 67

9. TABLE 7.9 Purpose of using DBC 68

10. TABLE 7.10 Satisfaction of Security Measures 69

11. TABLE 7.11 Rating of Direct Banking Facilities 70

12. TABLE 7.12 Charges of Direct Banking Facilities 71

13. TABLE 7.13 Satisfaction of DBCs 72

 LIST OF GRAPHS
S.No. Graph Page No.

1. GRAPH 7. 1 Profile of Respondents 60

2. GRAPH 7. 2 Age Group of Respondents 61

3. GRAPH 7. 3 Bank Preference of Respondents 62

4. GRAPH 7. 4 Banking Convenience 63

5. GRAPH 7. 5 Frequency of usage of Direct Banking Channels (DBC) 64

6. GRAPH 7. 6 Focus while using DBC 65

7. GRAPH 7. 7 Types of DBC used 66

8. GRAPH 7. 8 Factors considered while opting for DBC 67

9. GRAPH 7. 9 Purpose of using DBC 68

10. GRAPH 7. 10 Satisfaction of Security Measures 69

11. GRAPH 7. 11 Rating of Direct Banking Facilities 70

12. GRAPH 7. 12 Charges of Direct Banking Facilities 71

13. GRAPH 7. 13 Satisfaction of DBCs 72

 Chapter-1
RESEARCH METHODOLOGY
 PURPOSE OF THE STUDY
• With the help of this study the company will be able to attract and build a large
customer base as they will be able to know the preferences of the customers.

• By the help of this study, the bank will be able to know its present situation in the
market. Thus, the management will be able to take necessary measures by paying
more attention to the banking channels which are more commonly used to make
them more secure and convenient.

• Proper understanding and analysis of banking industry, the day-to-day Operations

of a Retail Bank Branch.

RESEARCH OBJECTIVE

• PRIMARY OBJECTIVE

To find out how the banking industry uses Information Technology to its
advantage and as a competitive edge.

• SECONDARY OBJECTIVES

1. To find out how the automation and IT enabled Banking helps in

controlling costs.
2. To learn how the banking industry uses methods of direct banking as a
marketing tool.
3. To find out how IT can be used more effectively in the banking sector.

RESEARCH METHODOLOGY

The methodology used is descriptive in nature, which aims to analyze the impact of
Information Technology in the banking industry, and how bank use technology to their
advantage. The project uses the questionnaire, which is used to analyze the customer
experience.
 PRIMARY DATA COLLECITON

In order to get accurate and reliable data specific to the Indian customer of Kotak
Mahindra Bank, methods were used to gather the required information about the Indian
Internet Banking scenario. Primary data was collected using the following methods.

• Questionnaire filling by customers of different banks

• Personal Interview with Kotak Personnel.

SECONDARY DATA COLLECTION

In order to arrive at possible hypotheses rather quickly to lot of secondary data has been
collected to understand the market structure of the Indian banking industry. A number of
management and e-commerce journals have been referred to so as to get a holistic view
about the customer’s concern when considering the banking option.

SAMPLING DESIGN
The sampling design adopted for this study is non-probability sampling proportional to
size as it has following advantages:

• It reduces the heavily expected non response of many smaller operators.

• It provides a simple sample selection rule that allows flexibility in using most up-
to-date data from a variety of sources, thus minimizing the sample size.
• The study involved finding the responses of the customers of Kotak Mahindra
Bank in the Delhi/ NCR region specifically and its competitor banks. For that we
administered the QUESTIONNAIRE to the customers of Kotak, its employees
as well as to its competitors.

SAMPLING SIZE
• Determining sample size is a very important issue because samples that are too
large may waste time, resources and money, while samples that are too small may
lead to inaccurate results. In many cases, we can easily determine the minimum
sample size needed to estimate a process parameter, such as the population mean.

• A non-probabilistic convenience sampling technique was used with the sample

size chosen was 100 from Kotak Mahindra Bank and its competitor banks.
 LIMITATIONS OF THE STUDY
• The sample size chosen for the purpose of the survey is not a true representative
of the whole population being taken from the NCR region only.
• Paucity of time & money available.
• Possibility of error (statistical or non statistical) cannot be ruled out.
• Responses taken from the interviewee’s side are never free from bias, though it
has been tried to be minimized.
• The report mainly covers the qualitative aspects only & hence has a very limited
scope for the quantitative ones.
• The choice of using the methods to a certain extent upon the individual approach
of the interviewer.
 Chapter-2
REVIEW OF LITERATURE
 CRITICAL REVIEW OF LITERATURE
In India still there is lack of users for internet as a medium for banking purpose, but the
banking system is upgrading and bringing many electronic banking mediums for
customers so that banking can be made more convenient.

Joseph et al. (1999) investigated the influence of internet on the delivery of

banking services. They found six underlying dimensions of e-banking service quality
such as convenience and accuracy, feedback and complaint management, efficiency,
queue management, accessibility and customization.

Jun and Cai (2001) identified 17service quality dimensions of i-banking service quality.
These are reliability, responsiveness, competence, courtesy, credibility, access,
communication, understanding the customer, collaboration, continuous improvement,
content, accuracy, ease of use, timeliness, aesthetics, security and divers features. They
also suggested that some dimensions such as responsiveness, reliability and access are
critical for both traditional and internet banks.

Jayawardhena (2004) transforms the original SERVQUAL scale to the internet context
and develops a battery of 21 items to assess service quality in ebanking. By means of an
Exploratory Factor Analysis (EFA) and a Confirmatory Factor Analysis (CFA), these 21
items are condensed to five quality dimensions: access, website interface, trust, attention
and credibility. From the provider perspective, there are target quality and delivered
quality. The focus of process- or supply-led quality definition is rather internal than
external, and it is defined as conformance to requirements. It lays emphasis on the
importance of the management and the supply-side quality, and there is an important role
of the process in determining the quality of outcome (Ghobadian, 1994). Achieving the
quality of conformance between the planned (target) quality level and the real quality
delivered to customers depends on the service quality management system in an
organization.

IAMAI report on online banking 2006: 43% of online banking users haven’t
initiated online financial transaction because of security reasons, 39% haven’t started
because they prefer face to face, 22% haven’t started because they don’t know how to
use, for 10% sites are not user friendly and for 2% banks are not providing the facility of
internet banking. According to research 68% of the customers cannot say that when they
will be starting the financial transactions through internet. Maximum numbers of online
banking users are male and maximum of them are in age the group of 25-35. Numbers of
female users are very less i.e. 17% only. More than 60% of the people who are having
account with have accounts in 3-4 banks. Only 37% of Indian Internet users come from
Top 10 cities i.e. Mumbai, Bangalore, Delhi, Calcutta, Chennai, Pune, Hyderabad,
Ahmedabad, Surat and Nagpur. Another day and another number. As per IAMAI and I-
cube, the number of active Internet user (i.e.ones who logon to Internet atleast once a
month) is now 32 million and numbers who have used Internet atleast once stands at 46
million.

The Indian Internet Banking Journey In 2001, a Reserve Bank of India

survey revealed that of 46 major banks operating in India, around 50% were either
offering Internet banking services at various levels or planned to in the near future.
According to a research report,( India Research, Kotak Securities, May 2000.) while in
2001, India's Internet user base was an estimated 9 lakh; it was expected to reach 90 lakh
by 2003. Also, while only 1% of these Internet users utilized the Internet banking
services in 1998, the Internet banking user base increased to 16.7% by mid- 2000.

Meute r et al. (2000) have identified critical incidents of customer satisfaction and
dissatisfaction with technology-based service encounters. Given that business-to-business
transactions are the fastest growing segment of technology-driven services (Hof, 1999);
Meuter and his colleagues (2000) suggested investigating what drives business customer
satisfaction or dissatisfaction with technology driven services.

According to Gönroos (1982), customers distinguish the quality of customer interactions

that take place during service delivery (functional quality) and the quality of the outcome
the customer receives in the service encounter (technical quality). Customers perceive the
quality of services of Internet banking based on the performance of online delivery
systems – not on the processes in which the delivered service is developed and produced.
Because customers perceive Internet banking service quality based on relatively
standardized outcomes determined by online systems, customer attitudes toward that
outcome reflect overall quality of services delivered Customers usually perceive risks in
conducting transactions electronically and particularly if the transactions involve money.
Risk perception can be of six different types: time risk, finacial risk, performance risk,
psychological risk and safety/confidentiality risk. It is generally considered that risk
perception could be higher for electronic banking services. This study aims to understand
extent to which whether this is consideration is valid as well as to determine the levels of
risk perception differences among those using Internet Banking and those not using it.
 Chapter-3
INTRODUCTION
 INTRODUCTION
‘There is only one boss-the Customer. And he can fire everyday in the company.
From the chairman on down, simply by spending his money somewhere else.’

-San Walton-Founder Wal-Mart Stores

The Indian banking industry is passing through a phase of customers market. A

competition has been established within the banks operating in India. With stiff
competition and advancement of technology, the services provided by banks have
become more easy and convenient.

The internship at Kotak Mahindra Bank Limited (KMBL), Chawri Bazar Branch helped
me in understanding the basic functioning of retail banking to its existing and potential
customers as well have knowledge of various Direct Banking Channels.

We have a separate Sales processing cell at KMBL where all the Services regarding
Selling of Financial Solutions are processed and served well.

It was very beneficial as I not only understood the customized products and services
offered to the customers, but also the entire procedure of Selling of RETAIL Products
(CASA/TD/MF/LI/Securities/LAP/HL/OD etc). Also I came to know about the various
CLEARING types and its processes, cash handling by the branch and its criticality, the
process of fund transfer etc. Besides this I was enlightened on the procedures of how to
activate net banking facilities of customers as well as how to make online payment of
bills of customers.

WHAT IS A BANK?

Banks have a long history, and have influenced economies and politics for centuries.
The word bank is derived from the Italian word banca, which is derived from German
language and means bench. The terms bankrupt and "broke" are similarly derived from
banca rotta, which refers to an out-of-business bank, having its bench physically broken.
Money lenders in Northern Italy originally did business in open areas, or big open rooms,
with each lender working from his own bench or table.

A bank is an institution that provides financial service, particularly taking deposits and
extending credit. Currently the term bank is generally understood as an institution that
holds a banking license. Banking licenses are granted by bank regulatory authorities and
provide rights to conduct the most fundamental banking services such as accepting
deposits and making loans. There are also financial institutions that provide certain
banking services without meeting the legal definition of a bank, a so called non-banking
financial company.

Services typically offered by banks

Although the type of services offered by a bank depends upon the type of bank and the
country, services provided usually include:

• Taking deposits from the general public and issuing checking and savings
accounts, giving loans to individuals and businesses.
• Cashing cheques, Facilitating money transactions such as wire transfers, issuing
credit cards, ATM, and debit cards, Storing valuables, particularly in a safe
deposit box.

HISTORY OF BANKING

BARTER

Man was, in the dawn of history, simple and self-sufficient. He lived in caves, killed
animals when hungry and he had no other wants. As time passed, men began living in
villages and started to till the ground. Often the produce of a farmer’s fields was more
that he required. Similarly, a fisherman often caught more than his family required. In the
ideal situation, the farmer would exchange his produce for fish with the fisherman. This
exchange is known as barter. And in the ideal world they would both be content.
However, a complication could and would arise if the farmer did not require or want fish.
If the farmer required a plough and the smith requires steel there would be tremendous
and horrendous difficulty in matching those that individuals had with that which they
needed. And it was on account of this difficulty of meeting needs that the barter system
surrendered to money.
MONEY

Money was created or rather born to reduce the value of the items people had to a
common denominator to facilitate exchange of products to satisfy needs. The fisherman
would sell his fish as would the farmer for money. The farmer would then armed with the
money he has in hand purchase a plough. The fisherman with the money he has received
would buy the food he needs for his family.

The earliest form of money was bones on which marks were made to distinguish between
values. Metals then began to be used – the most popular being gold, silver and bronze.
Symbols, sizes and signs on these differed from time to time and from country to
country. As men began to travel from country to country to exchange goods and to trade,
banking was born.

The term money is derived from the temple of “Juno Moneta” which was used by the
Romans as a mint for their coins.
 INDUSTRY OVERVIEW

Indian banks have a chequered history. The British legacy left behind a host of and small
privately-held banks. The late 60s saw the nationalization of banks, leading to the
emergence of the public sector banks. The 90s saw the banking industry embracing
technology in a massive way, led in particular by the new private banks and MNC banks.
Among these series of technology innovations, Internet banking for the retail segment
generated a lot of interest in the Indian banking industry. Private and foreign banks were
adopters while the PSU banks are also beginning to latch on to the bandwagon.

To give a brief overview of the Indian Banking sectors – it got its start in 1870, with the
Bank of Hindustan. Modern banking began with the establishment of three presidency
banks under the Presidency banks Act, 1876 – the Bank of Calcutta, the Bank of Bombay
and the Bank of Madras, which were subsequently amalgamated to from the Imperial
Bank of India. The Imperial Bank carried out some of the functions of a central bank
before the formation of the Reserve Bank of India under Bank of India (RBI) Act of
1934. The RBI was constituted as India’s apex bank without major government
ownership. The Banking Relations Act of 1949 brought the RBI under government
control, vesting it with wide-ranging powers of supervision and control of Indian banks.

In 1955, the RBI acquired control of the Imperial Bank of India. It was renamed the State
Bank of India (SBI); The SBI then converted eight private banks floated in the erstwhile
princely states into 100% subsidiaries. Subsequently, the RBI forced weak banks to
merge with strong ones reducing the numbers from 566 in 1951 to 85 in 1980, the
government acquired six more banks with deposits of more than Rs. 2 billion. The
avowed purpose was to turn these banks into catalysts for economic growth.

In the 1990’s, the process of liberalization and deregulation set the tone for the creation
of new private sector banks in India. The year 1993-94 in particular saw the Reserve
Bank of India allow new players in private sector banking, paving way for competition
and elevation in the levels of banking service and efficiency.
 BANKING STRUCTURE IN INDIA

Scheduled Banks in India

(A) Scheduled Commercial Banks*

Public sector Banks Private sector Foreign Banks in Regional Rural Banks
Banks India
(28) (23) (32) (82)**
• Nationalized • Old Private
Banks(19) Banks(16)
• Other Public • New Private
Sector Banks Banks(7)
(IDBI)
• SBI and its
Associates(1+7)

(B) Scheduled Cooperative Banks**

Scheduled Urban Cooperative Scheduled State Cooperative

Banks (53) Banks (31)

*Source: www.iba.org.in
**Source: www.rbi.org.in
Last accessed on July 29, 2010

Here we are more concerned about private sector banks and competition among them.
Today, there are 23 private sector banks in the banking sector: 16 old private sector
banks and 7 new private sector banks. These new banks have brought in STATE-OF-
THE-ART TECHNOLOGY and aggressively marketed their products. The Public
sector banks are facing a stiff competition from the new private sector banks. The banks
which have been setup in the 1990s under the guidelines of the Narasimham Committee
are referred to as NEW PRIVATE SECTOR BANKS.
 IT REVOLUTION IN THE BANKING INDUSTRY

The Indian Banking Industry is in the middle of an IT revolution. Focusing on the

expansion of retail and rural banking, players are becoming increasingly customer -
centric in their approach, which has resulted in innovative methods of offering new
banking products and services. Banks are now realizing the importance of being a
big player and are beginning to focus their attention on mergers and acquisitions to
take advantage of economies of scale and/or comply with Basel II regulation.
“Indian banking industry assets are expected to reach US$1 trillion by 2010 and are
poised to receive a greater infusion of foreign capital,” says Prathima Rajan, analyst
in Celent's banking group. “The banking industry should focus on having a small
number of large players that can compete globally rather than having a large number
of fragmented players."

% Customer Initiated Transactions by Different Channels*

Branches 17%
Branches 43%

ATM 45%
ATM 40%

Phone
Phone Banking
Banking 12%
14%
Internet 25%
Internet 2%

Mobile 1%
Mobile 1%

2001 2010

*For the Indian Banking industry

 TECHNOLOGY AT KOTAK MAHINDRA BANK

In this era of globalization each and every sector is facing stiff competition from their
rivals. Information Technology plays a vital role in each and every industry and gives
optimum return from limited resources. Private sector banks are using the latest
technology for the different transactions of day to day banking. Today different channels
are available for the banking transactions.

Centralized Processing Units Derived Economies of Scale

Electronic Straight Through Processing Reduced Transaction Cost

Data Warehousing , CRM Improve cost efficiency, Cross sell

Innovative Technology Application Provide new or superior products

We can see that the how technology gives the best results in the below diagram. There
are drastic changes seen in the use of Internet banking, in the year 2001 (2%) and in the
year 2010 (25%). This type of technology gives the freedom to retail customers.

THE RESERVE BANK OF INDIA

The Reserve Bank of India is the Central Bank of the Country and came into being on
April 1, 1935 by the Reserve Bank of India Act 1934. Though originally privately
owned, since nationalization in 1949, the Reserve Bank is fully owned by the
Government of India.

Main Functions

1. Monetary Authority:

• Formulates, implements and monitors the monetary policy.

• Objective: maintaining price stability and ensuring adequate flow of credit
to productive sectors.

2. Regulator and supervisor of the financial system:

 • Prescribes broad parameters of banking operations within which the
country's banking and financial system functions.
• Objective: maintain public confidence in the system, protect depositors'
interest and provide cost-effective banking services to the public.

3. Manager of Foreign Exchange

• Manages the Foreign Exchange Management Act, 1999.

• Objective: to facilitate external trade and payment and promote orderly
development and maintenance of foreign exchange market in India.

4. Issuer of currency:

• Issues, exchanges/destroys currency and coins not fit for circulation.

• Regulates currency
• Objective: to give the public adequate quantity of supplies of currency
notes and coins and in good quality.

5. Developmental role

• Performs a wide range of promotional functions to support national

objectives.

6. Related Functions

• Banker to the Government: performs merchant banking function for the

central and the state governments; also acts as their banker. It has the
obligation to transact the banking business of the Central Government. It
undertakes to accept money on behalf of the Government and make
payment on its behalf
• Banker to banks: maintains banking accounts of all scheduled banks.

Other Functions

• It is the banker’s bank. Commercial banks maintain their current account with the
Reserve Bank of India.
• It is the bank that manages the volume of credit created by the commercial banks
to ensure price stability.
• It is the bank that manages the external value of the currency (Indian Rupee, INR)
• It is the lender of Last Resort. It will lend to banks in trouble.
 Chapter-4
ABOUT KOTAK MAHINDRA BANK
 KOTAK MAHINDRA BANK LIMITED

The Kotak Mahindra Group, which was established in 1985 as Kotak Capital
Management Finance Limited, is today one of India's leading financial institutions,
covering the entire gamut of services from Commercial Banking to Stock Broking,
Wealth Management, Portfolio Management, Mutual funds, Life Insurance and
Investment Banking. It is the first NBFC in India to get a commercial Banking License.
The group has a net worth of over Rs. 2,900 crore, employs around 8,800 people in its
various businesses and has a distribution network of branches, franchisees, representative
offices and satellite offices across 282 cities and towns in India and offices in New York,
London, Dubai and Mauritius. The Group services over 2 million customer accounts.
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. Since
then it's been a steady and confident journey to growth and success. The group also
boasts of some interesting international partners, including Goldman Sachs and Ford
Credit.

KOTAK stands for

Knowledge & Competence Enhancement

Offering innovative and proactive solutions to the clients
Transparency and Fairness
Approachability and warmness to build relationships
Keeping it simple for the customers to help them understand better
 Growth Story Of Kotak Group

Kotak Mahindra Bank set up a new record being the only private sector bank in India to
open its 100th bank branch in just 4 years, a feat that none of the other private sector
banks in India have achieved till date. Also, it again set up a new record for having more
than 250 branches within 5 years of its launch.

Kotak Mahindra Bank Ltd on June 29 2010 entered into an agreement with Sumitomo
Mitsui Banking Corporation, Japan (SMBC), for a preferential issue to SMBC of 16.4
million shares of Kotak, which amounts to approximately 4.5% stake on a post-issue
basis for Rs. 1,366 crore.
 CHAIRMAN AND MANAGING DIRECTOR

Mr. Uday S. Kotak is the Executive Vice Chairman and Managing Director at Kotak
Mahindra Bank Limited. He has been with the firm since August, 2002. Mr. Kotak is the
principal Founder and Promoter at Kotak Mahindra Finance Ltd. He is responsible for
the growth of Kotak Mahindra from a fledgling finance company to a financial institution
providing the full basket of financial services. Mr. Kotak has over 18 years of experience
in the financial services industry.

Previously, he has served as Non Executive Director of Blue Star Limited until October
2002. He is a Member of Advisory Committee of National Stock Exchange of India Ltd.
Mr. Kotak, received a Post-graduate degree in Business Administration from Jamnalal
Bajaj Institute of Management Studies of Mumbai University
 ASOCIATE COMPANIES

KOTAK MAHINDRA BANK AMONGST HEWITT’S

‘TOP 25 BEST EMPLOYERS’

On April 17, 2009, Mr. Subhro Bhaduri, Executive Vice President-HR bagged the Hewitt
Best Employer’s in India award on behalf of Kotak Mahindra Bank Limited for the
second time in a row. “Our People practices are aligned to our culture and values and this
makes Kotak Mahindra Bank a preferred employer in the industry. Through significant
time, energy and investment in people Management practices and processes, we have
been able to maintain Kotak Mahindra Bank as one of the Best Employers in India in
2009” were the words of Mr. Bhaduri after collecting the award.
CORPORATE IDENTITY
 Chapter-5
BANKING CHANNELS-RETAIL LIABILITIES
 BANKING: RETAIL LIABILITIES

Retail banking is quite broad in nature - it refers to the dealing of Commercial banks with
individual customers, both on liabilities and assets sides of the balance sheet. Fixed
deposits, current / savings accounts on the liabilities side; and mortgages, loans (e.g.,
personal, housing, auto, and educational) on the assets side, are the more important
of the products offered by banks. Related ancillary services include credit cards, or
depository services. Today’s retail banking sector is characterized by three basic
characteristics:

• Multiple products (deposits, credit cards, insurance, investments and securities)

• Multiple channels of distribution (call centre, branch, Internet and kiosk); and
multiple customer groups (consumer, small business, and corporate).
• In a recent book, retail banking has been described as “hotter than vindaloo”.
Considering the fact that vindaloo, the Indian- English innovative curry available
in umpteen numbers of restaurants of London, is indeed very hot and spicy, it
seems that retail banking is perceived to be the in-thing in today’s world of
banking.

Economic prosperity and the consequent increase in purchasing power

has given a fillip to a consumer boom. Note that during the 10 years after 1992, India’s
economy grew at an average rate of 6.8 percent and continues to grow at the almost the
same rate – not many countries in the world match this performance.

Technological factors have played a major role in setting up the competition between
different banks. Convenience banking in the form of debit cards, internet and phone-
banking, anywhere and anytime banking has attracted many new customers into the
banking field.

The Treasury income of the banks, which had strengthened the bottomlines of banks
for the past few years, has been on the decline during the last two years. In such a
scenario, retail business provides a good vehicle of profit maximisation. Considering the
fact that retail’s share in impaired assets is far lower than the overall bank loans and
advances, retail loans have put comparatively less provisioning burden on banks apart
from diversifying their income streams.

Decline in interest rates have also contributed to the growth of retail Credit and
increasing services in retailing of other financial solutions by generating the demand for
these.
 THE ‘VICKS’ CONCEPT

Whole of the Retail Liabilities section can be summed up in the acronym VICKS.

Vouchers: All vouchers (transfers, cheques, requests) must be handled with utmost
care.

Inventory: DD/BC etc stationery should be kept in strict vigilance.

Cash: Cash should be given topmost priority & any shortage or excess should be
immediately reported.

Keys: Key Sharing should never be done.

System: The System should ALWAYS be followed. There should be strictly NO

PASSWORD SHARING, whatsoever may be the case.
 KOTAK PRODUCT LINE

A: SAVINGS ACCOUNTS

B: CURRENT ACCOUNTS

C: TERM DEPOSIT

D: MUTUAL FUNDS

E: INSURANCE

F: SAFE DEPOSIT LOCKERS

G: DEPOSITORY SERVICES
 SAVING ACCOUNTS

Kotak Mahindra Banks’ Savings Accounts are designed to ensure that the customers
receive the benefits of quick & convenient banking transactions along with options for
their money to earn high returns. The savings account goes beyond the traditional role of
savings, to provide a range of services from funds transfer options to online payments of
bills to attractive returns earned through a comprehensive suite of investment options. A
number of variants of savings accounts are available which are customized to suit the
individual needs of the customers.

Different Types of Saving Accounts

• Ace
• Pro
• Edge
• Nova
• Classic
• Corporate Salary

Features & Benefits

• Free Payable at Par personalized Cheque books

• Free Netbanking
• Free Phonebanking
• Free Mobilebanking
• Alerts on SMS
• ActivMoney-Auto Sweep In and Sweep Out Facility
• Online Wealth Management (Mutual Funds, Demat etc)
• Free monthly e-statements
• Free Debit card
• Homebanking at nominal cost
• netc@rd
• BillPay
• ASBA Facility to transact in IPOs and FPOs online
• Free NEFT and RTGS
 CURRENT ACCOUNTS

Kotak Mahindra Bank understands how critical it is for its customer’s businesses to have
quick and timely access to funds. It understands how important smooth and seamless
banking transactions are for business relationships.

Kotak’s Current Accounts have been designed to help the customers compete effectively
in the contemporary business environment. They include a 2 Way Sweep feature that
delivers liquidity combined with higher returns.

Different Types of Current Accounts

• Neo
• Edge
• Pro
• Elite
• Ace

Features and Benefits

• 2 Way Sweep for liquidity and higher returns

• Free-up country cheque collection for 13 locations
• Personalised PAP Cheque book
• Free Netbanking
• Free Phonebanking
• Free Mobilebanking
• Alerts on SMS
• Online Wealth Management (Mutual Funds, Demat etc)
• Free monthly e-statements
• Free Debit card
• Beat Pick Up Facility
• netc@rd
• BillPay
• ASBA Facility to transact in IPOs and FPOs online
• Free NEFT and RTGS
 TERM DEPOSITS

Kotak Mahindra Bank’s Term Deposits are at highly attractive interest rates coupled with
special facilities like Overdraft and Re-investment option.

Different Types of Fixed Deposits

• Term Deposits
• Regular Term Deposits
• Senior Citizen Deposits
• Ace Deposits
• Tax Saving Deposits

Features & Benefits

• Ease and convenience of operation. For the first time in India, New To Bank
customers can also apply online for term deposit.
• Liquidity through overdraft or sweep-in facility. Availment of up to 85%
overdraft against the term by paying 2% above the deposit rate. This facility is
available for deposits above Rs.50,000 for a tenure of 181 days or more.
• SWEEP IN FACILITY: Customer can link his term deposit to his savings /
current account, whereby if need be, the term deposit is automatically encased to
meet the withdrawal requirement.
• No penalty on pre-mature encashment
• Nomination facility
• 2-Way-Sweep feature, nomination, if any, made by you in respect of the savings /
current account for which you are availing this feature will be deemed to be the
nomination for any sweep TD created pursuant to the Active Money feature
availed by you.
 MUTUAL FUND

Kotak Mahindra Asset Management Company Limited (KMAMC)

Kotak Mahindra Asset Management Company Limited (KMAMC), a wholly owned

subsidiary of KMBL, is the Asset Manager for Kotak Mahindra Mutual Fund (KMMF).
KMAMC started operations in December 1998 and has over 4 Lac investors in various
schemes. KMMF offers schemes catering to investors with varying risk - return profiles
and was the first fund house in the country to launch a dedicated gilt scheme investing
only in government securities.

LIFE INSURANCE

Kotak Mahindra Old Mutual Life Insurance Ltd.

Kotak Mahindra Old Mutual Life Insurance is a 74:26 joint venture between Kotak
Mahindra Bank Ltd, its affiliates and Old Mutual. Kotak Mahindra Old Mutual Life
Insurance is one of the fastest growing insurance companies in India and has shown
remarkable growth since its inception in 2001.

SAFE DEPOSIT LOCKERS

Kotak Mahindra Bank offers Safe Deposit Locker facilities which can be utilized to safe
keep important documents, jewellery and other valuables.

DEMAT ACCOUNT
Kotak Mahindra Bank offers streamlined, efficient depository services that allow its
customers to hold their shares in convenient, "demat" formats and leverage opportunities
in the stock market when they spot them. Exclusive services include:

• Dedicated and trained Customer Care Officers

• Highly competitive service charges
• Three in one TRINITY account – Demat, Trading & Bank account.
• Free Online access to Demat account
• Catering to the debt requirements of companies, including the issue of
Commercial Papers, Certificate of Deposits, etc.
• Providing a composite Demat account that can hold Equity shares as well as
Government Securities, Bonds etc.

CONVENIENCE BANKING:

INFORMATION TECHNOLOGY BEING

IMPLEMENTED AT KOTAK MAHINDRA

BANK
 CONVENIENCE BANKING

ANYWHERE, ANYTIME BANKING

In today's day and age time is money. Doing banking should be easy and convenient and
not add to the customer’s worries.

Kotak Mahindra Bank realizes this and has specially tailored a wide range of value added
products and services to make the customer’s money work for him. These, coupled with
the highest standard of customer care helps in making his life simpler and easier.

NET BANKING
For viewing details across Accounts, Term Deposits, Demat Accounts - 24x7

KOTAK PAYMENT GATEWAY

Instant, convenient and secure way of shopping and making payments online

MOBILE BANKING
To experience online banking - without a PC or an internet connection.

SMS BANKING
To stay updated about the bank transactions on the go.

ALERTS
To keep track of preselected events by getting Alerts on the mobile or by email

PHONE BANKING
24 hr customer service centre

ATM NETWORK
Our constantly growing ATM network brings the bank within his easy reach.
 NET BANKING
Kotak Mahindra Bank's Net Banking service brings to its customers the timeless world of
instant banking. It is quick and easy, available 24*7*365 and it's absolutely free!
It gives instant access to Banking Accounts, Demat Accounts, Investment Accounts,
netc@rd and Insurance Accounts. In addition a customer can transfer money, pay his
bills, pay for his online shopping, make subscription payments and more. And all this
comes to you on a robust and secure technology platform.

Features:

Net Banking gives its customers a host of services,eg

• Viewing account balance, account activity, placing standing instructions

and cheque status.
• Open a Term Deposit.
• Transfer funds online between customer’s own or third party accounts
with Kotak Mahindra Bank or any other bank account supported by RBI NEFT
system.
• Place request for a cheque book, debit card PIN or payment gateway
registration.
• View securities available for Demat.
• View current Mutual Fund holdings, Buy and redeem Mutual Funds
online.
• Shop online at over 3000 websites; make utility bill payments across more
than 60 companies and 42 cities.

Accounts Services

• Get details of combined balance across Accounts and Term Deposits.

• View account balance, account activity, uncleared fund details and
cheque status.

Term Deposits Services

• Open a Term Deposit or Inquire Term Deposit rates

• View details of all his term deposits, interest, tenures, etc
• Request for a Term Deposit Statement.
Payment Services

• Transfer funds between customer’s own accounts or to any accounts with Kotak
Mahindra Bank or with any other Bank* which participates in RBI NEFT scheme.
• For regular transfer of funds between accounts or accounts of any other person,
Standing Instructions can be set up for direct transfer into account, or request
for sending Banker Cheques to the selected address.
• For easy reference, maintain a list of beneficiaries.
• RTGS on Net – to transfer amount greater than or equal to rupees one lakh, use
RTGS on Net. Money can be transferred to account held with any bank’s branch
which participates in RBI RTGS.

* Service available in cities serviced by RBI NEFT.

Cheque Related service Service

• Order a cheque book

• Inquire specific cheque status.
• Place stop cheque instructions.

Request Statement

• Saving or Current: Request physical statement for saving or current account. The
Statement will be sent to the customer’s registered mailing address.
• Term Deposit: Request physical Term Deposit Statement. The Statement will be
sent to the customer’s registered mailing address.

Additional Features

• Use TDS Inquiry to get information on tax deducted for the previous and current
financial year.
• Inquire the latest exchange rates.

DEMAT

This section provides access to view Demat account details and also to trade online in
these securities by opening a trading account with Kotak Securities Ltd.

Account Services

• View account activity, billing details, holding details.

• Inquire transaction status, Demat status of securities.
Requests

• Place an online request for account statement, Share holding details or billing.
• Place a request for Pledge Forms or Client Master Details.

Additional Features

• To convert existing shares into Demat format

• View the details of transactions including settlement date, pay in date, pay out
date using the View Settlement calendar option.

Security

There is a 2 layer authentication while logging in to Kotak Securities to transact in

the share market. A key is generated every time the user enters his password and it
is displayed on a small handheld device which is a part of the welcome kit of the
TRINITY account. Only after entering the newly generated key correctly can a
customer login to his account and deal in shares.

INVESTMENTS

This section enables the customers to view and purchase/redeem Mutual Funds online
and other details of their investments with the company.

Account Services

• Keep track of investments online - view account details, transaction details and
current NAV, percentage gain/loss and IRR.
• Get details of investments by Asset Class or Fund Name.

Transaction Services

• Purchase/redeem Mutual Funds online.

• Place Standing Instruction for auto debit of the account and investments in the
selected fund.

Requests

• Check status of Buy/Sell requests.

Other Features

• Get the latest NAVs.

 • Get advisory services and industry updates on a continuous basis.

NETC@RD

This is a onetime use virtual card which enables a customer to shop online in a secure
way on any website that accepts VISA cards, in a secure way.

netc@rd Usage

• Generate a netc@rd by either logging onto Net Banking or using small software
application - netc@rd QuickPay - installed on the computer.
• Cancel cards.

Transaction Services

 View card details including the status of the card, card amount, create date, expiry
date
 View Transaction details including the card number, merchant name where the
card was used and settlement amount.

KOTAK BILLPAY

Kotak BillPay is an Electronic Bill Presentment and Payment Service. A secure and
hassle free way to pay all bills!!

• Kotak BillPay is a simple, convenient and secure way of managing bill payments
from anywhere, anytime.
• Pay utility bills (telephone, electricity, mobile, etc.), insurance premia,
subscriptions to magazines, taxes or make donations.
• Flexibility of making regular payments by registering the biller or making one
time / ad hoc payments using the 'Instant Pay' option.
• For registered billers, ability to view the bill amount and due date.
• Pay Domestic Visa Credit Cards bills/ transfer funds to any domestic Visa Debit
Card using Visa Money Transfer.
• “AutoPay” wherein a customer can register for automatic payments from his
account. Payments will be scheduled and processed 4 days prior to the due
date/Payment date specified by the customer.
• Pay his Direct Tax through Kotak BillPay
• View Bill and Payment History.
• Additionally, customers will also receive Alerts via Email/SMS for any biller
addition/deletion, receipt of new bill and status of bill payments and even
AutoPay alerts.

This service is Free of Charge

 Get Money

Receive funds from any non Kotak Bank Account to a Kotak Bank account using RBI’s
ECS facility absolutely FREE.

• Registration to be done on Net Banking or at a branch

• Debit Bank account details (ECS Debit Mandate Form) need to be verified by
Debit Bank. This verification / lodgment process takes up to a maximum of 25
days from date of submission of ECS Mandate Form to a Kotak branch.
• Either receive funds on Ad-hoc basis (one-time) or set up a Standing Instruction
(SI) to receive funds on regular basis, post successful activation of Get Money
registration. Modify or delete the Standing Instruction.
• Get Money funds transfer requests can be given on Net Banking, 24 Hrs
Customer Contact Centre or branch.
• Receive Email and SMS alerts on the registered email ID and Mobile number
with the bank for all the events on Get Money.
• View details of pending transfer requests and transfer history post logging into
Net Banking.
• Register multiple Bank accounts as debit bank accounts under the Get Money
service.

Requests

This section enables a customer to manage his account by modifying his account access
and account details. The various options available under this section are as follows:

• Register for Payment Gateway Service - with payment gateway he can shop
online over more than 3000 websites, make utility bill payments across more than
60 companies and 42 cities, pay insurance premium, pay for magazine
subscriptions, make donations to charitable and religious institutions, transfer
money to Kotak Securities for margin money, Settlement transfer or IPO funding,
transfer money to his Kotak commodities account for investment in commodities
and use Visa Money Transfer facility to pay his credit card bills or transfer money
to any VISA debit card across the country.
• Debit Card request - report for lost/stolen debit cards, request for new Debit Card
PIN, change his Debit Card primary account or de-link accounts from his Debit
Card.
• Account related requests - Request for Balance/Interest certificate.
• Do Not Contact request - register his self under this section to discontinue
receiving marketing related calls from the bank.
Profile

• Updation of a customer’s profile whenever there is change of contact details is

also possible through net banking. This will help a customer in receiving timely
information from the bank.

Mail

• This section provides a customer a secure mail service to contact the bank with
his complaints/suggestions. He can also place his "Home Banking" requests in
this section.

ACCESS CODE
• Access Code is an additional password that is required to be generated and
entered at the time of login to Kotak Net Banking / Payment Gateway for
enhanced security and safety of the customer and it is highly advisable to avail the
said service.
• Access Code gets generated by clicking on Access Code tab on the Net
Banking/Payment gateway login page post entering the correct user ID & Net
banking password.
• Customer will receive the Access Code alert instantly on the registered mobile
and email ID with the bank.
• Access Code will be a 6 digit number. Access Code has a validity period till
11:59 p.m (IST).
• A new Access Code will have to be generated the next day to login to Net
Banking/Payment Gateway.
• In case, customer inputs wrong Access Code for three consecutive attempts, the
Access Code expires and the customer will have to generate a new Access Code.
Customer can regenerate Access Code any number of times for the same day.
• Registering Access Code can be done from Request section on Net Banking or at
the Branch by submitting a request in the prescribed format or by placing a
request at the 24 Hrs Customer Contact Centre.

ONLINE SECURITY
Kotak Mahindra Bank has exercised great diligence to ensure confidentiality and security
of its accounts. It uses several layers of robust security methods including encryption,
firewalls and timed log-outs amongst others, to ensure the confidentiality of its personal
and financial information.

However, the ultimate key to security lies in his possession. Here are some additional
steps that a user can take to ensure that he is taking the necessary precautions:
 • Password Protection
• Login Security
• Email Security

PASSWORD PROTECTION

• Change the password when a customer receives it the first time, and thereon
regularly.
• Passwords should have a minimum of eight characters containing both letters
and numbers with a combination of uppercase (CAPITAL LETTERS) &
lowercase (small letters) - when these are case sensitive.
• Use passwords that are hard to guess. Avoid real words or those that can be
easily identified, such as, name, family name, date of birth, telephone number,
pet's name, parent's name etc.
• Avoid using the same password on different websites. Always use unique
passwords for each website.
• Do not write down his password or store it in his mobile or email.
• Do not give his password to or share his password with anybody, including the
employees of Kotak Mahindra Bank.
• Notify the Bank immediately at 1800 102 6022 pan India if there is a suspect that
the password has become known to or used by someone else.

LOGIN SECURITY—HTTPS AND SSL TECHNOLOGY

Login Security

• Always log on to Net Banking by entering the Bank's website address

www.kotak.com into the address bar. Do not access the bank website from a link
provided in an email from any source.
• When logging on or entering personal information, you can verify the security of
the Net Banking session with Kotak Mahindra Bank by clicking on the icon
appearing at the bottom right hand corner of your Net Banking login page.
Double clicking on the lock will verify that the digital certificate is issued to
https://www.kotak.com/. Proceed only if such verification is available.
 • Never walk away from your computer without
properly logging out from Net Banking and
closing your browser.
• If you are using a computer other than your
own, always end your banking session and close the browser.
• Regularly log into your Net Banking accounts and check your bank statements to
ensure that all transactions are legitimate.
• In order to protect our customers' account security, access to Net Banking will
be automatically blocked once multiple attempts to log in are made with an
incorrect password.
• If you forget your password, or have inadvertently had your access to Net
Banking blocked, please call our Customer Contact Centre at 1800 102 6022 pan
India) and a representative will re-enable you to access Net Banking by following
a strict protocol of security procedures.

Email Security

• Be suspicious of any e-mail with urgent requests for personal financial

information. "Phishers" typically include upsetting or exciting (but false)
statements to get people to react immediately. Avoid filling out forms in e-mail
messages that ask for personal financial information. Communicate such
information only via a secure website.
• Remember, Kotak Mahindra Bank does not send out emails to customers
requesting personal, confidential or account information.
 VIRTUAL KEYBOARD

A virtual keyboard is a software component that allows a user to enter characters.

Virtual keyboards may be used in some cases to reduce the risk of keystroke logging.

To be of any use, these virtual keyboards must be an integral part of an application or

web page. A generic virtual keyboard—which will work with any program, including
those that are not explicitly written for it—will not defeat a key logging program because
the virtual keyboard will generate the same keyboard events as a real keyboard, and those
events can be trapped and logged just as real keyboard inputs can.

The use of an on-screen keyboard on which the user "types" with mouse clicks can
increase the risk of password disclosure by shoulder surfing, because:

• An observer can typically watch the screen more easily (and less suspiciously)
than the keyboard, and see which characters the mouse moves to.
• Some implementations of the on-screen keyboard may give visual feedback of the
"key" clicked, e.g. by changing its colour briefly. This makes it much easier for
an observer to read the data from the screen. In the worst case, the
implementation may leave the focus on the most recently clicked "key" until the
 next virtual key is clicked, thus allowing the observer time to read each character
even after the mouse starts moving to the next character.
• A user may not be able to "point and click" as fast as they could type on a
keyboard, thus making it easier for the observer.

For its customer’s safety, keys of Virtual KeyPad get rearranged every time a key is
selected in Virtual KeyPad of KOTAK Mahindra Bank website.

ENTRUST

Kotak Mahindra Bank’s Net banking is safeguarded by Entrust. Entrust provides

identity-based security solutions that empower enterprises, consumers, citizens and Web
sites in more than 4,000 organizations spanning 60 countries. Entrust's identity-based
approach offers the right balance between affordability, expertise and service. With more
than 125 patents granted and pending, these world-class solutions include strong
authentication, fraud detection, digital certificates, SSL and PKI.

Respected organizations and agencies — Citibank, SWIFT, Bank of New Zealand, U.S.
Department of State, NASA, U.K. Ministry of Defence, Banco Santander, DnB NOR,
Chase Manhattan Bank, Lloyds TSB, Expedia and more — look to Entrust to help
protect and secure the most sensitive of assets. Selecting a company that is a respected
leader is the sound choice for implementing strong, affordable and proven security
solutions.

HTTPS
Hyper Text Transfer Protocol Secure (HTTPS) is a secure version of the Hyper Text
Transfer Protocol (http). HTTPS allows secure ecommerce transactions, such as online
banking.

Web browsers such as Internet Explorer and Firefox display a padlock icon to indicate
that the website is secure, as it also displays https:// in the address bar.

When a user connects to a website via HTTPS, the website encrypts the session with a
digital certificate. A user can tell if they are connected to a secure website if the website
URL begins with https:// instead of http://.

SSL
SSL (Secure Sockets Layer) is the standard security technology for establishing an
encrypted link between a web server and a browser. This link ensures that all data passed
between the web server and browsers remain private and integral. SSL is an industry
standard and is used by millions of websites in the protection of their online transactions
with their customers.

To be able to create an SSL connection a web server requires an SSL Certificate. When
you choose to activate SSL on your web server you will be prompted to complete a
number of questions about the identity of your website and your company. Your web
server then creates two cryptographic keys - a Private Key and a Public Key.

The Public Key does not need to be secret and is placed into a Certificate Signing
Request (CSR) - a data file also containing your details. You should then submit the
CSR. During the SSL Certificate application process, the Certification Authority will
validate your details and issue an SSL Certificate containing your details and allowing
you to use SSL. Your web server will match your issued SSL Certificate to your Private
Key. Your web server will then be able to establish an encrypted link between the
website and your customer's web browser.

Typically an SSL Certificate contains the domain name, company name, address, city,
state and country of the owner. It will also contain the expiration date of the Certificate
and details of the Certification Authority responsible for the issuance of the Certificate.
When a browser connects to a secure site it will retrieve the site's SSL Certificate and
check that it has not expired, it has been issued by a Certification Authority the browser
trusts, and that it is being used by the website for which it has been issued. If it fails on
any one of these checks the browser will display a warning to the end user letting them
know that the site is not secured by SSL.

E-STATEMENTS
Kotak Mahindra Bank has gone green by introducing email statements instead of the age
old paper statements.

Benefits:

• E-statements are absolutely FREE

• Option of getting a daily/weekly or monthly e-statement
• Fast delivery to the customer
• Password protected and unchangeable .pdf format
• Environmental Friendly
• Can be stored on a hard disc, CD or can be printed instantaneously
 MOBILE BANKING
Customers can experience the benefits of online banking anywhere and anytime, without
the need for a computer. All this absolutely FREE*! Using the service, they can access
their bank accounts and investment accounts at their fingertips, anytime, anywhere. All
this convenience comes to them on a secure and user friendly GPRS-based Mobile
Banking platform.

Mobile Banking Features

• Menu driven service – no need to remember complex codes.

• Security through 128 bit encryption.
• Check account balances for Current, Savings & Term Deposit accounts
• View account activity
• Transfer funds between accounts or other accounts in Kotak Bank
• Purchase Mutual Fund units
• Redeem Mutual Fund units
• Report loss/theft of Debit Card and request for replacement
• Check status of Cheque instruments
• Request issue of new Cheque book

What one needs to access this service ?

• A Kotak Mahindra Bank account

• A Java-enabled handset
• An active GPRS connection (Advanced GPRS recommended) from the service
provider
• Registration for Net Banking and a Net banking password
• Activation Key - the Activation Key is generated on first login.

Security Features

Kotak Mobile banking platform uses secured HTTPS protocol for communication
between the mobile client and the mobile server. Protected by the most stringent security
systems, Kotak Mobile Banking allows users to transact over a completely secure
medium. All transactions travel via 128-bit SSL encrypted medium, the highest level of
security on the network. The servers are protected with firewalls that make unauthorized
access impossible.

Downloading the Application

Users need to type K MOBILE <Last 4 digits of their CRN> as SMS and send it to
5676788. Please note that the user needs to send the message from the mobile number he
has registered with the bank. He can also call 24 Hrs Customer Contact Center at
18001026022 for downloading Kotak Mobile Banking application. He would be
receiving the link to download the application on his mobile number registered with the
bank.

Registration

Access to Kotak Mobile Banking will be granted once the user registers his Activation
Key (which will be displayed on the handset) with the bank.

**Mobile Banking is offered to Kotak customers absolutely FREE. There are no

charges levied by the bank for accessing this service. However, Customers will need to
pay for the GPRS subscription charges as levied by their Mobile phone service
providers.

User Guide

To download Kotak Mobile Banking, users need to SMS K MOBILE <Last 4 digits of
CRN> to 5676788. After installation of the application they should run the same to
access their account and follow the instructions below to familiarize themselves with the
application.

1) When the user runs the application, the login screen will appear. User must enter his
Net Banking User ID (Customer Relationship Number as mentioned on Kotak Debit
Card) or Net Banking Nick Name and his Net Banking password.

2) After entering username and password they need to press “Login” which will display
an Activation Key for the handset. User should note the Activation Key being displayed
on the screen and call 24 hrs Customer Contact Center at Kotak’s toll free numbers-
18001026022 (North India) or 18002256022 (Rest of India) to activate this service. The
Customer care officer will register the Activation Key.

3) Now Login again to start using Kotak Mobile Banking.

4) The Main Menu shows the following options:

a) Select Banking to transact on the banking account.

b) Select Investments to purchase or redeem Mutual Fund units.
c) Select Password to switch to a new password.
d) Select Contact Us to get Kotak’s contact details.
e) Select Logout to sign out of the system.

5) Banking Menu shows the following options:

 a) Select Acct. Balance to get details of the balance in the bank account
b) Select View TD Accts. to view details of all the term deposits, interest, tenures
etc.
c) Select Acct. Activity to view last 10 transactions in the account.
d) Select Req. Stmt. to get an e-mail account statement for a selected period.
e) Select Payments to transfer funds between user’s own accounts in Kotak Bank or
third party accounts in Kotak Bank.
f) Select Cheque Requests to order a new chequebook or inquire specific cheque
status.
g) Select Report Loss of Card to hotlist a card and get a replacement for the same.

6) Investments Menu shows the following options:

a) Select Invest. Acct. to view holdings in the portfolio.

b) Select Redeem to sell mutual fund units in the schemes held in the portfolio.
c) Select Last 5 NAV to view the last 5 days NAV of schemes held in the portfolio.
d) Select NAV Search to retrieve the NAV of a scheme held in the portfolio by
typing a keyword.

Net Banking is driven by twin engine of "customer-pull and Bank-push".

KOTAK PAYMENT GATEWAY

Kotak Payment Gateway enables its users to shop online at over 3000 websites, make
utility bill payments across more than 60 companies and 42 cities, pay insurance
premium, pay for magazine subscriptions, make donations to charitable and religious
institutions, transfer money to Kotak Securities for margin money, settlement transfer or
IPO funding and use Visa Money Transfer facility to pay credit card bills or transfer
money to any VISA debit card across the country. Kotak Payment Gateway is an Internet
based facility using which you can pay online merchants by debiting your selected Bank
account.

Online Shopping

This service enables the users to make purchases across various online shopping sites
offering gifts, flowers, airline tickets, exclusive designer wear, jewellery, latest electronic
gadgets / household items, subscription to books / periodicals, registration to matrimonial
/ educational sites or astrology services and much more. Customers can now make
Online Payment towards their Utility Bills, Insurance premium, Donations, Mutual Fund
Investment. They can also book travel tickets and enjoy entertainment services by
visiting the merchant’s website.

Online Trading

This service enables its users to transfer money instantly to their account with Kotak
Securities, for funding your margin money or funding their IPO account. An account
with Kotak Securities enables an user to buy/sell securities online. This gives them the
power of any where anytime trading.
 VISA MONEY TRANSFER
Visa has recently introduced the 'Visa Money Transfer' option for its savings and current
account holder of any bank with a visa debit card. This facility helps its customer to
transfer funds from his bank account to any visa card, either debit or credit within India.

A Visa Money Transfer is of similar kind, in many respects, to the third-party fund
transfer option given by some banks to its account holders through e-cheque, but this is
restricted to only visa cardholders.

How to transfer money?

• Log on to the bank account through the respective bank website.

• Fill the beneficiary details like visa card numbers, name, address and then specify
the amount that needs to be transferred. For bank account specify the visa card
number and credit card number for paying credit card bill.

• Click on to VISA Transfer Payments button.

• Transfer immediately or on schedule date. Your account will be debited

according to the date mentioned.

Notable points of Visa Money Transfer

• The time taken for money transfers could be the same or even more than that of a
demand draft i.e. two or three days or even more.

• Currently there are no charges but limits have been set by certain banks on the
current transfers. Charges: Rs.20/transaction + taxes. For Kotak - VISA Money
Transfer a customer can only transfer funds from a minimum of Rs 100/- to a
maximum of Rs 1,00,000 per transaction

• It is available in 150 cities across the country now.

• The transferred amount can neither be changed nor stopped once it is initiated.
 PHONE BANKING
Kotak Mahindra Bank boasts of a 24 hrs Customer Contact Center to offer personalized
service round the clock, i.e. 18001026022 (North India) OR 1800 226022 (Rest of India).
While calling from abroad, customers may call at +91 22 6600 6022. Whether it is
something as urgent as a stop payment or simply wanting to know the balance, Kotak’s
toll free number gives access to their account, from anywhere... anytime. And what's
more, this facility is absolutely free of cost!

Powered By:

• PIN Security: Automated identification process when using 24*7 Phone Banking
service will help save call time as well as give more security, as a customer will
be validated by using a 6 digit Phone Banking Personal Identification Number
(PIN) that should be known to no one but the customer himself. Accessing Phone
Banking is easy. A customer just needs to enter his Customer Relationship
Number followed by the '#' key, and validate it by entering his Phone Banking
PIN. Once done successfully, he will be able to speak with a Customer Care
Officer who will be glad to assist you in his queries or transactions.
• PIN Change: If a customer is a first time caller, he will be prompted by the
system to change his Phone Banking PIN to one of his choice, after he has been
successfully identified by the system. The bank requests its customers to change
their PIN accordingly to help ensure that their account information is not
available to anyone but the customers themselves. Additionally, customers have
the option of changing their Phone Banking PIN directly, at their convenience, by
dialing "5" on the Main Menu when they call the bank.
• PIN Generation / Regeneration: For all customers who haven't had the
opportunity to register themselves for Phone Banking, or those who've have
forgotten the Phone Banking PIN allocated to them, the Customer Care Officers
gladly enable them.
• Customer Care Officers: Our Customer Care Officers are available 24*7 to
assist customers in their queries or transactions that they may wish to conduct on
your account. A customer may reach a Customer Care Officer anytime during the
call by dialing "0".

In addition to the above, other services available over Phone Banking are:

• Enquiry about the account - balance, account activity, uncleared fund details and
cheque status.
• Enquiry on the latest interest and exchange rates.
• Request for fund transfer* between customer’s own accounts at Kotak Mahindra
Bank.
• Open a term deposit or get details of all existing term deposits .
• Initiate standing instructions or place stop cheque payment instructions.
 • Request a cheque book and account statements.

Customers can give financial instructions through Phone Banking service based on their
account operating mandate, i.e. if they have a single or unconditional signing authority
on their account, they can transact on their accounts through the phone.

Demat accountholders can avail of the following Services through Phone Banking:

• Request for a Demat transaction or holding statement.

• Enquire about transaction or holding details.
• Request for a Demat Instruction Slip bookle.

Investment accountholders can avail of the following Services through Phone

Banking:

• Enquiry on account and transaction details

• Current NAV details of investments
• Request a statement of account
• Purchase and redeem investments online
• Check the status of purchase and redemption requests
• Purchase / Redemption of Mutual Fund units
• Third Party Funds Transfer to other accounts within the Bank
• Registration for Mobile Banking / Net Banking.
 ATM NETWORK
An automated teller machine (ATM), also known as automatic banking machine (ABM),
Cash Machine, or Cashpoint, is a computerised telecommunications device that provides
the clients of a financial institution with access to financial transactions in a public space
without the need for a cashier, human clerk or bank teller. On most modern ATMs, the
customer is identified by inserting a plastic ATM card with a magnetic stripe or a plastic
smart card with a chip, that contains a unique card number and some security information
like the 6 digit personal identification number (PIN).

The ATM service is available absolutely FREE of cost to the customers of the bank. The
strategically located and constantly growing ATM network brings the bank within
customers easy reach. The state of the art touch screen Kotak Mahindra Bank ATMs are
part of the Visa/Plus and Cashnet ATM network. That means you can withdraw cash
from our ATM Network with any International and Domestic Visa/Visa Electron/Plus
Credit Cards/Debit Cards.

KEY FEATURES

• Access to account anytime anywhere

• State of the art Touch Screen ATMs
• Affiliated to the VISA network
• Access any ATM in the country absolutely free.

SERVICES AVAILABLE

• 24-hour access to cash.

• Transfer funds between accounts.
• View Account Balances and Mini Statement.
• Pin Change option.

Total number of ATMs and Cash Dispensers of Kotak: 500+ (launch of 500th ATM
on Apr 23, 2010)
 SMS BANKING
Kotak Mahindra Bank's SMS Banking service enables its customers to access their bank
account, investment account and demat account on their Mobile Phone. They can get
latest update on their account balance, salary credits, large debits, large credits, holding
value and much more, on their mobile anytime. It is quick and easy, available 24X7 and
it's absolutely free!

The SMS should be sent to 9971056767 or 5676788 to get the details.

SMS Commands

Banking Account
Balance Inquiry K BAL B
Last 3 Transactions K TXN B
Last 3 months statement on email K STMT B
Statement on email for a particular month K STMT B E
in the current financial year
Statement on email for any particular K STMT B F G
period
Cheque Status Inquiry K CHQSTATUS B C
New Cheque Book Request K CHQBOOK B
Investment Accounts
Know Your Account No. K MFACCT A
Holding Value K MFBAL X
Demat Accounts
Know Your Account No. K DPACCT A
Holding Value K DPBAL Y
Locator
Know the nearest ATM K ATM Z
Know the nearest Branch K BRANCH Z
PIN Regeneration
Net Banking K NETPIN A
Phone Banking K PHONEPIN A
Debit Card K DEBITPIN D
Debit Cards
Activation of Debit Card for use at K POSACT D
Merchant Establishments

A - Last 4 digits of Customer Relationship Number

B - Last 4 digits of Account Number
C - Complete Cheque Number
D - Last 4 digits of Debit Card Number
E - First 3 letters of the month
F - Start period. First 3 letters of the month followed by last 2 digits of the year (Eg: For
September 2007 please mention as SEP07)
G - End Period. First 3 letters of the month followed by last 2 digits of the year (Eg: For
February 2008 please mention as FEB08)
X - Last 4 digits of Investment Account
Y - Last 4 digits of Demat Account
Z - 6 digit Postal Pincode.

Please Note:

 A user can send the SMS in either upper case (Capital letters) or lower case
(small letters) i.e. K BAL and k bal, both will help the user to know his account
balance
 The SMS commands contain blank spaces which should be kept when sending
SMS. There are 2 blank spaces; one after ‘K’ and the other after the code say
BAL.
 Please use only the mobile number which has been registered to use the SMS
Banking & Alerts' facility. For customer’s safety, the bank does not accept
requests from any other mobile number.
 PIN regeneration requests will be accepted through SMS, however New PIN will
be sent to the registered communication address via post only.

“SMS Banking is available for registered customers only”.

 ALERTS
Customers can subscribe for automatic updates for their account on either their mobile or
email. These alerts are sent on happening of a particular transaction. For example if the
balance falls below the Average Quarterly Balance, or if there is a large credit in the
account.

List of Alerts:

• Large Debit Alert.

• Large Credit Alert.
• Balance below Average Quarterly Balance Alert.
• Periodic Bank Account Balance - Daily/Weekly (Sent every Monday).
• Standing Instruction (SI) Failure Alert.

Free service!*

Please Note:

• Registration/Subscription mandatory
• These Alerts will be sent over SMS and/or Email as requested by the customer.
• Customers can select the Alerts that he wishes to get and the mode (SMS and/or
email).

KOTAK WINS IT TEAM OF THE YEAR

Kotak Mahindra Bank won the best IT Team of the year and the Best Customer
Relationship Award for the 2008 Annual Banking Technology Awards function
organized by the Indian Banks Association on 20th January 2009. Adding further laurels
Kotak Mahindra Bank bagged the runners up in the category Best Use of Business
Intelligence and Best Enterprise Risk Management. With four awards in its kitty, Kotak
Mahindra Bank forged ahead as the highest award winner competing with India's leading
banks and banking institutions. For the Kotak Bank IT Team this comes as the 18th
award won over the last three years. It is for the third time in succession that Kotak has
won the prestigious IT team of the year.

The prestigious Banking Technology Awards recognizes outstanding achievements of

various banks for their innovation and technology implementation initiatives. The
Banking Technology Awards witnessed a 100 plus nominations from 23 banks across
India.
 THE CONCEPT OF ACCOUNT ACTIVATION
Kotak Mahindra Bank realizes the importance of migrating customers to alternate
channels of banking. The customers are educated about how they can use the above
mentioned services i.e.Net Banking, Mobile Banking, Phone Banking, Alerts, Payment
Gateway, ATM channels etc to do their transactions and enquiries more easily. This
concept is called ACCOUNT ACTIVATION. It is a separate department and the bank
has exclusive ACCOUNT ACTIVATION OFFICERS for this purpose.

A walk-in customer on an average costs a branch Rs.27.00, who may come to seek his
available balance only. So to decrease costs, alternate channels are important if an
organization wishes for profit maximization. Also, these channels are more convenient
for the customer which makes them all the more luring from the customer end as well. In
fact, to popularize their alternate channels of banking, which depend purely on
Information Technology and its management, banks incur huge costs and sometimes
charge less from the alternate channels for customer migration.

Benefits of Account Activation

• Customer Retention
• Customer Satisfaction
• Increased Utility
• Increased Efficiency
• Information available on-the-go..24*7*365
• Higher Revenue
• Less cost

CLEARING-FROM MICR TO 100 % CTS

MICR stands for Magnetic Ink Character Recognition which means The machine
recognition of numeric data printed with magnetically charged ink. It is used on bank
checks and deposit slips. MICR readers detect the characters and convert them into
digital data. Although optical methods (OCR) became as sophisticated as the early MICR
technology, magnetic ink is still used. It serves as a deterrent to fraud, because a
photocopied check will not be printed with magnetic ink.
First 3 digits of the 9 digit MICR code represent location. Eg. 110 for Delhi
Next 3 digits represent the bank code. Eg.485 for Kotak Mahindra Bank
Last 3 digits represent the code of the particular branch.Eg.048 for Chawri Bazar

So, MICR code of Kotak Mahindra Bank Chawri Bazar branch is 110485048.

MICR Clearing is different from manual clearing. It is done with the help of special
ultraviolet rays machines which scans the cheques for geniuneness.In MICR technology
the information is printed on the instrument with a special type of ink which is made up
of magnetic material. On insertion of the instrument in the machine, the printed
information is read by the machine. MICR system is beneficial as it minimizes chances
of error, clearing of cheques becomes easy and transfer of funds becomes faster in order
to facilitate operations.

After MICR, the cheque clearing function is witnessing the next major evolution in India,
Middle East and many Asia Pacific countries. The Central Regulatory Bank in these
countries, are actively ushering in image based cheque truncation. With image based
truncation of cheques, called as CTS or CHEQUE TRUNCATION SYSTEM and
usage of image exchange for clearing, the cycle time required to clear cheques is
drastically reduced, resulting in quicker credits and a more efficient means of cheque
clearance, in addition to reducing the potential for fraud.

The CTS solution allows for distributed branch / centralized capture deployment options
and exhaustive IQA / IUA capability using sophisticated ICR engines, to streamline and
speed up the process of cheque truncation and realization.
 POS TRANSACTION
A POINT OF SALE (POS) transaction is an exchange of electronic money between a
buyer and seller, without the involvement of hard cash. The machine which is used to
swipe the debit/credit card is called as the POS Machine. POS transaction can also
happen at a virtual location such as a call-in number or website. The means through
which a business owner captures the information related to a point of sale transaction is
referred to as a POS system

When a credit or debit card is used for a point of sale transaction that is conducted at a
physical location, it's often referred to as a "card present" point of sale transaction. For
these types of transactions, the buyer must present the card to be billed for the transaction
so that the information contained on the card's magnetic strip can be recorded; the buyer
can then be charged for the purchase. A signature is often, but not always, required for
these types of point of sale transactions. The opposite of the "card present" point of sale
transaction is the "card not present" transaction. All POS transactions that take place at a
non-physical location using a credit or debit card fall under this category. In most cases,
the cardholder must provide the credit card number, her name, the billing address, the
card expiration date and the security code listed on the back of the card to complete this
type of point of sale transaction.
 NEFT AND RTGS
NEFT: NATIONAL ELECTRONIC FUNDS TRANSFER
RTGS: REAL TIME GROSS SETTLEMENT

NEFT / RTGS are the cheapest mode of transferring money through banks in India.
Corporates are saving huge money by utilizing the two but lack of awareness depriving
the general public from such cheapest and fastest mode of transfer of money.

Banks are now offering plethora of services to their customers. Banks are trying to make
their customer a ‘pleased customer’ over and above a ‘satisfied customer’ by offering
services more than what the wisdom of a customer can demand.

Specific features of NEFT: NEFT was introduced in 2005 and is highly improved
version of EFT (Electronic Funds Transfer) that is available at select center whereas
NEFT is available nationwide.

• Free

• There is no floor or cap on the amount of transfer in NEFT, means from an

amount as small as one rupee to any amount one can transfer within a minute

• NEFT facility is available at approximately 32407 banks branches of banks in

India. These branches may be available in remote corner of country also. It is
available in 67 banks and at more than 3000 centers.

• Money through NEFT can be transferred from Bank to Bank; only thing both the
bank branch (the receiving and originating branch) should have IFSC code given
by RBI. IFSC code is 4 alphas plus 7 numeric codes given by RBI, which is basic
requirement for NEFT transfer. IFSC Code stands for Indian Financial Services
Code. It is unique for every branch. IFSC code of the beneficiary accounts’s
home branch is required for online transfer of funds. Kotak Mahindra Bank’s
Chawri Bazar branch has the IFSC code KKBK0000958 for the time being which
will change to KKBK0000213.
Specific features of RTGS: For an amount over Rs 1.00 lakh, the exclusive message
based system RTGS is very popular. However RTGS can only be done from 9:30 am to
4:00 pm on weekdays and 9:30 am to 11:30 am on Saturdays. No RTGS takes place on
bank holidays and Sundays. TAT for amount transfer is 2 hours.
Although these two remittances are almost error free but for future references please do
not forget to take the 16 digits UTR No from the branch after the remittance instruction is
sent by the branch
 CORE BANKING SYSTEM (CBS)
Core Banking system or CBS is one of the recent developments in the field of banking,
and has proved to be very useful. It is a facility provided by banks in which a person,
having an account in one branch, can operate his account, in another branch. This has
become possible, because each account holder is given a specialised, computerised and
unique account number. In simple terms, CBS is a type of banking, in which a person,
who opens a bank account in a particular branch of a bank, will be a customer of the
bank, rather than being a customer of a particular branch. Therefore, he can transact
anywhere, at any time.

The prime features of the CBS are that it facilitates banking operations like ATM's,
Electronic fund, Transfers, Telebanking, Internet banking etc. Moreover, introduction of
new facilities and products wouldn't be a time-consuming process, and branch clearings
would become instantaneous.

The CBS is presently hosted on two Sun fire V6900R servers, clustered in an active
passive mode. Both the servers and the two storage boxes are connected to both the
switches for redundancy. Power for these servers is received from two additional similar
capacity UPS, installed as standby. The application software is developed in COBOL and
the version being used is version 10.0. M/s. Lasersoft Infosystems Ltd., Chennai, has
developed this software.

The banks have to implement a three tier architecture, for wide Area Network. The
branches are connected to a Zonal centre, by 64KBPS, based line, from telephone
corporations like BSNL. The district layers are in turn connected to the data centre, and
disaster recovery centre, by 2 MBPS based lines.

CBS has facilitated better operational efficiency by ensuring improved house keeping
and preventing seepage of income. Inter branch reconciliation has become faster and
accurate. Users can log in only from their authorised branches and data access is
restricted to their levels. For recovery of disaster, two servers, installed in the primary
site ensure high availability and achieve fault tolerance through hardware redundancies
and protection against component failures.

Many banks have covered 100% of their business of the bank under CBS, and intend to
bring all their branches under WAN connectivity. The centralized database has enabled
introduction of new products and services apart from bringing about work simplification
at branches. Therefore, CBS has been effective, in bringing about a radical change in the
field of banking, and we can also expect further developments in this field, because of
this system.
 VERIFIED BY VISA

Verified by Visa gives extra protection and peace of mind while shopping online.

Once a user is signed up, he’ll be protected whenever he makes an online payment with
his Visa card at any one of more than 300,000 web sites.
• First the user sees a personal message – a message that he provided when
he signed up for Verified by Visa and that only he and his bank knows about.
This shows that the security screen the user is seeing is genuine.
• Then the user will be asked to enter his Verified by Visa password.

RBI has given a mandate that no online transaction will be valid unless authenticated by
Verified by VISA/ Mastercard Securecode.
 PHISHING
In the field of computer security, phishing is the criminally fraudulent process of
attempting to acquire sensitive information such as usernames, passwords and credit card
details by masquerading as a trustworthy entity in an electronic communication.

Communications purporting to be from popular social web sites, auction sites, online
payment processors or IT administrators are commonly used to lure the unsuspecting
public. Phishing is typically carried out by e-mail or instant messaging, and it often
directs users to enter details at a fake website whose look and feel are almost identical to
the legitimate one.

Even when using server authentication, it may require tremendous skill to detect that the
website is fake. Phishing is an example of social engineering techniques used to fool
users, and exploits the poor usability of current web security technologies. Attempts to
deal with the growing number of reported phishing incidents include legislation, user
training, public awareness, and technical security measures.

A phishing technique was described in detail in 1987, and the first recorded use of the
term "phishing" was made in 1996. The term is a variant of fishing, probably influenced
by phreaking, and alludes to baits used to "catch" financial information and passwords.

SPOOFING
E-mail spoofing is a term used to describe e-mail activity in which the sender address
and other parts of the e-mail header are altered to appear as though the e-mail originated
from a different source.

Occasionally (especially if the spam requires a reply from the recipient, such as the '419'
scams), the source of the spam e-mail is indicated in the Reply-To field (or at least a way
of identifying the spammer); if this is the case and the initial e-mail is replied to, the
delivery will be sent to the address specified in the Reply-To field, which could be the
spammer's address. However, most spam emails (especially malicious ones with a
trojan/virus payload, or those advertising a web site) forge this address too, and replying
to it will annoy an innocent third party.

SALAMI ATTACK
This attack is used for the commission of financial crimes. The key here is to make
the alteration so insignificant that in a single case it would go completely unnoticed,
e.g. a bank employee inserts a program into the bank's servers that deducts a small
amount of money (say Rs.5 a month) from the account of every customer. No single
account holder will probably notice this unauthorized debit, but the bank employee
will make a sizable amount of money every month.
 "419" SCAM
The so-called "419" scam (aka "Nigeria scam" or "West African" scam) is a type of fraud
named after an article of the Nigerian penal code under which it is prosecuted.

Typically, victims of the scam are promised a lottery win (example) or a large sum of
money sitting in a bank account or in a deposit box at a security company. Often the
storyline involves a family member of a former member of government of an African
country, a ministerial official, an orphan or widow of a rich businessman, etc. Variants of
the plot involving the Philippines, Taiwan, China, Hong Kong, Korea, Iraq, Kuwait,
UAE, Mauritius, etc. are also known. Some emails include pictures of boxes stuffed with
dollar bills, scans of fake passports, bank or government documents and pictures of
supposedly the sender.
 Chapter-6
ADVANTAGES AND CHALLENGES
 ADVANTAGES OF ALTERNATE BANKING CHANNELS
People look forward to using other channels like Internet and mobile and therefore
offering high levels of services to customers through these low cost channels can be
beneficial to the bank in two ways
• Reduced Transaction cost
• Increased Customer Satisfaction

Focus on the Customer

Community banks now can concentrate on standing out from the competition. It benefits
the bottom line to avoid tedious, imprecise paper-based processes, because these require
considerable time and effort from employees. Using web-based banking tools to expedite
routine processes allows employees to focus on their most important role--serving the
customer.

Affordable for Every Institution

With minimal capital outlay, community banks can afford web-based banking
technology. Many solutions offer transactional-based pricing, which allows banks to pay
only for the services they request and execute. Today's technology allows every size
institution to utilize the same web-based banking tools that were developed to serve the
largest financial institutions. These technological advancements help community banks
to compete on an even playing field.

Easy to Implement & Update

Implementation of integrated banking technology solutions is highly flexible, so that

community banks can quickly transition with few internal resources. Many web-based
banking tools require only an Internet browser and can easily be incorporated into
existing operations. As regulations change, technology updates are seamless, requiring no
disruption of day-to-day services.

Today community banks are faced with a daunting challenge. They must protect
customers, transactions and the bottom line, while simultaneously delivering excellent
service, complying with regulatory mandates and meeting business objectives.
Outsourced web-based banking technology provides a clear choice to respond to this
complex challenge. By choosing integrated banking technology solutions, community
bankers can benefit from technology and better compete.
Two momentous decisions of the Reserve Bank in the 1990s changed the scenario for
ever:

• The prescription of compulsory usage of technology in full measure by the new

private sector banks as a precondition of the license AND
• The establishment of an exclusive research institute for development and
Research in Banking Technology.

As the new private sector banks came on the scene as technology-savvy banks and
offered several innovative products at the front office for the customers based on
technology, the demonstration effect caught on the reset of the banks. Multi channel
offerings like machine based (ATMs and pc-Banking), card based (credit/Debit/Smart
cards), Communication based (Tele-Banking and Internet Banking) ushered in Anytime
and Anywhere Banking by the banks in India. The IDRBT has been instrumental in
establishing a safe and secure, state of the art communication backbone in the form of the
Indian Financial NETwork (INFINET) as a closed user group exclusively for the banking
and financial sector in India.

CHANGING FACE OF BANKING SERVICES

Liberalization brought several changes to Indian service industry. Probably Indian

banking industry learnt a tremendous lesson. Pre-liberalization, all we did at a bank was
deposit and withdraw money. Service standards were pathetic, but all we could do was
grin and bear it. Post-liberalization, the tables have turned. It's a consumer oriented
market there.

Technology is revolutionizing every field of human endeavor and activity. One of them
is introduction of information technology into capital market. The internet banking is
changing the banking industry and is having the major effects on banking relationship.
Web is more important for retail financial services than for many other industries.

Retail banking in India is maturing with time, several products, which further could be
customized. Most happening sector is housing loan, which is witnessing a cut-throat
competition. The home loans are very popular as they help you to realize your most
cherished dream. Interest rates are coming down and market has seen some innovative
products as well. Other retail banking products are personal loan, education loan and
vehicles loan. Almost every bank and financial institution is offering these products, but
it is essential to understand the different aspects of these loan products, which are not
mentioned in their colored advertisements.

PLASTIC MONEY

Plastic money was a delicious gift to Indian market. It gave respite from carrying too
much cash. Now several new features added to plastic money to make it more attractive.
It works on formula purchase now repay later. There are different facts of plastic money
credit card is synonyms of all.

Credit card is a financial instrument, which can be used more than once to borrow money
or buy products and services on credit. Banks, retail stores and other businesses generally
issue these. On the basis of their credit limit, they are of different kinds like classic, gold
or silver.

Charged cards-these too carry almost same features as credit cards. The fundamental
difference is you can not defer payments charged generally have higher credit limits or
some times no credit limits.

Debit cards-this card is may be characterized as accountholder's mobile ATM, for this
you have to have account with any bank offering credit card.

RURAL BANKING

One of the innovative scheme launched in rural banking was the KISAN CREDIT CARD
(KCC) SCHMME started in fiscal 1998-1999 by NABARD. KCC made it easier for
farmers to purchase important agricultural inputs. In addition to regular agricultural
loans, banks to offer several other products geared to the needs of the rural people.

Private sector Banks also realized the potential in rural market. In the early 2000's ICICI
bank began setting up internet kiosks in rural Tamilnadu along with ATM machines.

NRI SERVICES

With a substantial number of Indians having relatives abroad, banks have begun to offer
service that allows expatriate Indians to send money more conveniently to relatives in
India which is one of the major improvements in money transfer.

Technology has been one of the most important factors for the development of mankind.
Information and communication technology is the major advent in the field of technology
which is used for access, process, storage and dissemination of information
electronically. Banking industry is fast growing with the use of technology in the from of
ATMs, on-line banking, Telephone banking, Mobile banking etc., plastic card is one of
the banking products that cater to the needs of retail segment has seen its number grow in
geometric progression in recent years. This growth has been strongly supported by the
development of in the field of technology, without which this could not have been
possible of course it will change our lifestyle in coming years.
 IMPROVEMENT IN THE BANK’S PROFITABILITY
• Kotak Mahindra Bank has seen immediate improvements in profitability through
cross-selling opportunities and decreased channel costs through an increased
understanding of customer channel utilization. The bank is also using the data to
develop targeted marketing campaigns, offer new services and continue to provide
the highest customer service, for which it has been known over the years.

• A great achievement has been the migration of customers from costly, unprofitable
channels like brick and mortar branches to less costly, profitable channels like on-
line banking.

• In addition to this, Kotak Mahindra Bank can know how much it is investing in
maintaining every customer relationship. Which channels does a particular
customer prefer to use? Does he use the more intensive support services like phone
banking? Or is he comfortable using the net banking services? Is he a high value
customer, for whom phone banking is a value addition? Or is he a low value
customer who doesn’t merit personalized attention like phone banking? By having
this information available readily, Kotak Mahindra Bank has been able to do
effective customer portfolio analysis and hence can take decisions about which
customers it needs to invest in.
 Chapter-7
ANALYSIS AND INTERPRETATION
 ANALYSIS AND INTERPRETATION

TABLE 7.1 PROFILES OF THE RESPONDENTS

Occupation
Gender Business Student Service Others Total
Male 19 15 20 11 65
Female 7 16 9 3 35
Total 26 31 29 14 100

GRAPH 7.1

Profile of the respondents

25

20
Frequency

15 Male
10 Female

0
Business Student Service Others
Occupation

The graph shows the repondents profile and their gender. We can see that the number of
male respondents were more and mainly they indulge in Service or business. A majority
of the females who filled in the questionnaire were students.
 TABLE 7.2 AGE GROUPS OF THE RESPONDENTS

Age Group Number of people

20-30 27
30-40 43
40-50 20
50-60 10

GRAPH 7.2

Age group of respondents

50
40
Frequency

30
Number of people
20

10
0
20-30 30-40 40-50 50-60
Age Group

The bar graph shows the profile of respondents according to their age group. We can see
that people from the age bracket 30-40 years is the largest.
 TABLE 7.3 BANK PREFERENCE OF THE RESPONDENTS

Bank Number of people

ICICI 10
Kotak 60
SBI 10
HDFC 15
Others 5

GRAPH 7.3

Bank Preference

70
60
50
Frequency

40
Number of people
30
20
10
0
I

FC

s
k
IC

I
SB
ta

er
IC

HD
Ko

th
O

Bank

The graph shows the choice of different banks of the customers. As the study was done
while being in Kotak Mahindra Bank, the maximum respondents are from the home bank
only.
 TABLE 7.4 BANKING CONVENIENCE

Types
Age Direct Personal
Banking Banking Total
20-30 35 20 55
30-40 18 8 26
40-50 8 2 10
50 and above 3 6 9
Total 64 36 100

GRAPH 7.4

Preference of type of Banking

according to age group

40
20-30
Frequency

30
30-40
20
40-50
10
50 and above
0
Direct Banking Personal
Banking
Type of Banking Channel used

The graph shows the popularity due to ease of use of the two different types of banking:
Direct Banking and Personal Banking. In the age group 20-30, Direct Banking is the
most popular.
 TABLE 7.5 FREQUENCY OF USAGE OF DIRECT BANKING
CHANNELS (DBCs)

Age Group Frequency

Daily 12
Weekly 54
Monthly 25
Quarterly 9

GRAPH 7.5

Frequency of Usage of Direct Banking

Channels

60
50
Frequency

40
30 Frequency
20
10
0
rly
ly
ly

kly
i

th

rt e
Da

ee

on

ua
W

Time gap

The graph shows the depth of usage of the Direct Banking Channels. Its evident from the
depiction that a majority of the users use these on a weekly basis.
 TABLE 7.6 FEAR WHILE USING DBCs

Fears
Gender Improper Bad Customer
Hacking Knowledge Costly Service Total
Male 18 22 17 8 65
Female 13 10 7 5 35
Total 31 32 24 13 100

GRAPH 7.6

Fears while using Direct Banking

Channels

25
Hacking
Frequency

20
15
Improper
10 Knowledge
5 Costly
0
Male Female Bad Customer
Service
Gender

Normally, as it can be seen in the graph, Hacking of the confidential details of the
account and improper knowledge to use the technology are the most dreaded fears across
both the genders.
 TABLE 7.7 PROFILE OF THE RESPONDENTS

Direct Banking Channel

Bank Net Home Phone SMS
Banking Banking Banking ATM Banking
ICICI 4 3 3 3 2
KOTAK 17 8 7 6 3
SBI 7 4 3 12 1
HDFC 3 2 4 1 0
OTHERS 1 3 0 1 2

GRAPH 7.7

Types of Direct Banking Channel used

18
16 Net Banking
14
Frequency

12 Home Banking
10
8 Phone Banking
6 ATM
4
2 SMS Banking
0
I

S
FC
K

I
IC

SB

ER
TA
IC

D
KO

TH
H

Bank

The graph shows the type of Direct Banking Channel used by the respondents. Kotak,
ICICI customers are very comfortable with Net Banking whereas ATM Banking is the
most widely used in SBI.
 TABLE 7.8 PROFILE OF THE RESPONDENTS

Advantages
Age Safety Speed Feasibility Reliability Total
20-30 16 18 12 9 55
30-40 13 3 5 5 26
40-50 3 4 1 2 10
50 and above 4 0 2 3 9
Total 36 25 20 19 100

GRAPH 7.8

Factors which are considered while

opting for Direct Banking

20
Safety
Frequency

15
Speed
10
Feasibility
5
Reliability
0
20-30 30-40 40-50 50 and
above
Age group

The graph shows the factors which are kept in mind by the respondents while using the
Direct Banking facilities. Safety comes out to be the most important criteria, almost
across all age groups.
 TABLE 7.9 PROFILE OF THE RESPONDENTS

Purpose
Gender Account Fund
Information Transfers e-Payments Investments Total
Male 24 19 15 7 65
Female 18 6 5 6 35
Total 42 25 20 13 100

GRAPH 7.9

Purpose of using Direct Banking

Channels

30
Frequency

25
20 Male
15
10 Female
5
0
Investments
Information

Transfers

Payments
Account

Fund

e-

Purpose

As it is evident from the graphical representation, account information is the number one
reason for the bank customers to opt for direct banking channels, across both genders.
 TABLE 7.10 PROFILE OF THE RESPONDENTS

Satisfaction
Banks Yes No Total
ICICI 11 4 15
KOTAK 27 14 41
SBI 17 10 27
HDFC 8 2 10
OTHERS 4 3 7
Total 67 33 100

GRAPH 7.10

Satisfaction amongst customers of the

Security measures used by the banks

30
25
Frequency

20 Yes
15
10 No
5
0
I

S
FC
K
IC

I
SB

ER
TA
IC

HD
KO

TH
O

Banks

It can be seen by the depiction that across all banks, respondents are satisfied by the
security services offered by their respective banks.
 TABLE 7.11 PROFILE OF THE RESPONDENTS

Rating
Banks Very
Satisfactory Good Good Excellent Total
ICICI 5 6 2 2 15
KOTAK 7 11 17 5 40
SBI 4 18 4 2 28
HDFC 1 2 4 3 10
OTHERS 0 1 5 1 7
Total 17 38 32 13 100

GRAPH 7.11

Rating of Direct Banking Facilities

20
15 Satisfactory
Frequency

Good
10
Very Good
5
Excellent
0
I

S
FC
K
IC

I
SB

R
TA
IC

E
HD
KO

TH
O

Banks

Kotak customers gave a very good rating about the rating of its direct banking facilities,
almost similar to the ranking of other banks.
 TABLE 7.12 PROFILE OF THE RESPONDENTS

Charges
Banks Yes No Total
ICICI 5 10 15
KOTAK 13 28 41
SBI 15 12 27
HDFC 5 5 10
OTHERS 2 5 7
Total 40 60 100

GRAPH 7.12

Charges for Direct Banking Facilities

30
25
Frequency

20
Yes
15
10 No
5
0
I

S
FC
K

I
IC

SB

ER
TA
IC

HD
KO

TH
O

Banks

As it can be seen from the graph, Kotak Mahindra Bank does not levy any service
charges over most of its Direct Banking services.
 TABLE 7.13 PROFILE OF THE RESPONDENTS

Response Frequency

Yes 54

No 46

GRAPH 7.13

Satisfaction of Direct Banking

Channels

56
54
52
frequency

50
Frequency
48
46
44
42
Yes No
Response

As the graph depicts, a majority of the people surveyed were satisfied by the different
banking channels.
Chapter-8
FINDINGS
 FINDINGS

• The profiles of respondents were mainly from the age bracket 30-40 years. As the
study was done while being at Kotak Mahindra Bank, the maximum respondents
were from the home bank only.

• Talking about the popularity of different banking channels, in the age group 20-
30, Direct Banking was the most popular. The depth of usage of the Direct
Banking Channels was also found to be pretty decent. A majority of the users use
these on a weekly basis.

• Hacking of the confidential details of the account and improper knowledge to use
the technology were the most dreaded fears amongst the customers and that even
made them apprehensive while using these services, mainly from the older age
group. It was found that Kotak customers were very comfortable with Net
Banking. Though the fear is there, customers are also satisfied by the security
measures that their banks take.

• A majority of the customers use direct banking channels primarily to gain access
to their account specific information. Kotak customers gave a very good rating
about the rating of its direct banking facilities, almost similar to the ranking of
other banks.

• Kotak Mahindra Bank does not levy any service charges over most of its Direct
Banking services, that makes it a number one choice among the youth.

• Finally, it was seen that a majority of the people surveyed were satisfied by the
different banking channels.
 SWOT ANALYSIS OF KOTAK MAHINDRA BANK

COMPETITIVE ADVANTAGE

Environmental Scan

Internal Analysis External Analysis

Strength Weaknesses Opportunities Threats

SWOT Matrix

STRENGTHS

• The Kotak Mahindra group which is one of the largest financial institutions in
India, ever since its inception in 1986 has created numerous success stories in
whatever business they landed.
• Kotak Mahindra Company is amongst Hewitt’s ‘Top 25 Best Employers’.This
depicts the actual performance of the organization in terms of its efficiency.
• The company spends less on marketing so it actually has more finances available
to sustain the growth of the company and provide better returns to the customers.
• Kotak Mahindra bank offers the most flexible, innovative unique products and
features such as free Global Debit Card, Active Money which surely gives it a
competitive edge over the competitors.
• The distribution channel is amazing with a wide reach as the company has offices
all over India in more than 60 cities.
• It has the right strategies for the right products.
• Superior customer service vs. competitors.
• Great Brand Image
• High degree of customer satisfaction.
• Lower response time with efficient and effective service.
• Dedicated workforce aiming at making a long-term career in the field.
 WEAKNESS

• The company does not spend much on marketing and it actually may be a reason
for not being a market leader among the private players.
• The company has yet to make any significant presence in the rural sector as the
brand name is yet not famous in the rural India.
• The company has a conservative approach and they believe in steady and very
safe progress , which actually results them to be in a position where they are
behind some of the more aggressive market players like ICICI
• In India the rural market and middle class society still don’t have faith in private
insurers and their genuinity.
• Kotak Mahindra Bank offers less no of branches and ATM, though now the bank
is speeding on its expansion plans.
• Training need to employees, especially front office staff

OPPORTUNITIES

• The whole rural market is a kind of niche segment for opening of accounts,
deposits, borrowings, and insurance business. So, Kotak is at par with all other
private companies and there is an equal competition for all, there is an
opportunity to make a mark and be the first among the private bank and capture
the rural market.
• The Kotak being such a big name has an opportunity to grow its insurance
business as well increase its distribution channel whole over the world by using
the goodwill of the group companies and they can even target the customers of
each company of their group to get insurance through them by offering special
incentives or schemes.
• Could extend to overseas broadly.

THREATS

• The rural India and middle class India still do not have faith in private players.
• Kotak Mahindra Bank is competing with private companies, which are spending
huge amounts on marketing, so to maintain a competitive edge with these
companies in terms of acquiring market shares would be a tough task.
• Now a days every cost is very important feature for Kotak, bank should reduce
the cost and control the pricing.
 Chapter-9
RECOMMENDATIONS AND SUGGESTIONS
 RECOMMENDATIONS AND SUGGESTIONS
• The company should pay more attention on customer satisfaction this will help
them in building good relationships with them which will prove to be profitable
for them in long run.
• The company should also keep an eye on competitors strategy and bring about
necessary changes from time to time.
• In such a competitive environment the bank must persevere to shorten the
processing time and reduce unnecessary formalities to speed up the processes.
• The bank must concentrate more on personal relationship and services offered as
differentiation on the basis of product is difficult.
• The concept of “customer touch point” should gradually evolve at various
interface of the management hierarchy within the bank. This means that a concept
of centralized data base collection and assortment should be introduced in the
bank, so that important customer information does not change hands frequently.
• The branches must look in for corporate tie up with the existing organizations.
• Bank can adopt the concept of franchise so as to focus on a particular Target
market.
• Transparency of services across branches has become a general need of the
customers. Customers are used to accessing banks through ATMs, Internet and
mobile phone. “Anywhere anything banking” purpose gets defeated with
constrains like draft cancellation done only at the particular branch where the
draft was made. If these cases are many, banks need to look at it seriously.
• Call-centre reps cannot help customers pay bills online; consumers re-enter data
on paper forms after pre-qualifying online, and branch-representatives are not
aware of offers made online to the customer. Thus organizational boundaries get
in the way resulting in overspending on technology. Kotak needs to abridge this
inter-channel gap by implementing the concepts of business process re-
engineering so as to develop better synergy levels amongst 3 crore entities of its
various channels-people, process and technology.
• Kotak Mahindra Bank must increase its penetration by increasing the number of
branches in India and abroad.
• Apart from premier banking Kotak Mahindra Bank must increase the reach on
lower, rural segment.
• International money transfer through mobile banking.
• Remembering of favourite transaction which will eventually save time and
increase utility.
• More secure net banking and net payments eg NEFT, RTGS, VMT so as to
decrease the cases of Phishing.
• Collaborating with different banks and organisations for the convenience of its
customers. For example facilitating cheque drop boxes in partner organisations.
• Tracking of Customer previous and regular transactions and cross selling them
appropriate products.
• POS to cash: While we swipe our debit/credit card for a virtually cashless
purchase, there must be a provision to get this virtual cash converted into hard
 cash in the absence of an ATM machine or when we have forgotten/disabled our
ATM PIN. This invention will really be a boon to the users.
• Kotak Mahindra Bank’s Debit card has to be used at a KOTAK ATM only for the
first time to get it activated or a customer must call the Phone banking number
and then activate after validating himself. This technical glitch must be avoided.
• Use of Mastercard should be promoted as while swiping that card one has to enter
its ATMPIN. This is more secure than a VISA card. When a VISA card is lost, if
the thief cannot take out money from ATM as he could not find its ATMPIN, he
can very well swipe the card at any merchant location and misuse it.
Alternatively, VISA cards may have this additional authentication process at the
time of POS transaction.
• The internal softwares used by Kotak Mahindra Bank are also not at par with its
competitors. There are a number of softwares with no synchronization between
them. FINWARE or FINNACLE must be introduced instead of FLEX. HOST
can also take the position of BCIF. A lot of time and efforts can be saved if all the
internal softwares are aligned and synchronized.
• VERISIGN: The online payment module of Kotak Mahindra Bank may be
certified by VERISIGN, the global leader in its domain instead of Entrust, for
additional customer confidence.
• SECURE ACCESS: Kotak Mahindra Bank can also incorporate Secure Access
utility for enhanced online security especially while transferring funds over the
net, just like the way HDFC does. Users are required to select a personalized
message and a photo at the time of registering for the service. A set of 5
personalized questions are also asked at the time of registration. Whenever a
customer tries to do any online net transaction which the bank’s automatic system
takes as not a regular one, the customer is asked to enter the answers of any 2
questions that were filled at the time of Secure Access Registration. While
logging on to net banking, if the customer sees his personalized messge and
image, it means that the customer is on the legitimate HDFC Bank’s website.
 Chapter-10
CONCLUSION
 CONCLUSION
Kotak Mahindra Bank offers most of the direct banking services free of charge. Most of
the customers of KMBL are satisfied with direct banking facilities offered by bank. Net
banking emerged as the most popular mode of accessing the direct banking among all the
other direct banking channels. Most of the people who have their account in different
banks use direct banking channels for knowing their account status or for various account
related information. Most of the male customers have fear of improper knowledge while
using different direct banking channels while the female customers have fear of hacking
of their accounts while using direct banking channels.

From the study I also conclude that persons belonging to the age group of 20-30 years
find direct banking more convenient than personal banking and give more importance to
speed.

Adequate harnessing of technology by the banks have made it easier for the banks to cut
costs in the increasing competitive environment and also, at the same time use it as a
marketing strategy to gain an edge among the other players in the market. People are
directed to alternate channels of banking which costs the bank a meager amount whereas
if, the same customer walks in any branch, it costs the bank Rs.27 per walk-in. Thus, IT
application has been a boon to the industry and more developments will further help the
banks in this global market place.
 BIBLIOGRAPHY
• Kothari, C.R. (2009, II edition) Research Methodology: Methods and Techniques,
New Age International Publications, New Delhi.
• www.kotak.com
• http://findarticles.com/p/articles/mi_m3311/is_n11-12_v27/ai_12382881/
• http://www.cisco.com/web/IN/about/files/tech_in_banking.pdf
• https://www.valueland.ca/download/Articles/The_adoption_of_virtual_banking_1
999.pdf
• http://www.asianlaws.org/project/impact _banking.htm
• http://www.expreecomputeromline.com/20020916/indtrend.shtml
• http://www.indianserver.com/biz/indian-banking-sector.html
• http://www.indianfoline.com/nevi/bank.html
• http://www.banktech.com/index.jhtml;jsessionid=CXFKKHQIGVONPQE1GHP
SKHWATMY32JVN
• http://www.hdfcbank.com/
• http://www.iflexsolutions.com
• http://www.reveleus.com/customer/
• www.rbi.org.in
• www.icicibank.com
• www.hewittasia.com
• www.kotakcards.com
• http://www.ibef.in/industry/banking.aspx
• http://www.3iinfotech.com/content/payment_solutions/cheque_truncation_system
.aspx
• http://www.ehow.com/about_5167287_point-sale-transaction.html
• http://www.merinews.com/article/neftrtgs-revolution-in-cost-effective-domestic-
money-transfer/128575.shtml
• www.iba.org.in
• http://www.cyberpolicebangalore.nic.in/cybercrimes.htm
• http://www.419scam.org/
• http://www.entrust.com
• http://www.instantssl.com/ssl-certificate-products/https.html
• http://info.ssl.com/article.aspx?id=10241
• http://www.indiastudychannel.com/resources/79870-CBS-Core-Banking-
System.aspx
• http://finance.indiamart.com/investment_in_india/visa_money_transfer.html
• Intranet of Kotak Mahindra Bank Limited
• http://brent.tvu.ac.uk/dissguide/hm1u1/hm1u1text2.htm
• http://ccnmtl.columbia.edu/projects/qmss/samples_and_sampling/types_of_sampl
ing.html
 QUESTIONNAIRE
1: NAME:______________________

2: GENDER:__________

3: OCCUPATION:

a) Business
b) Student
c) Service
d) others

4: AGE GROUP:

a) 20-30

b) 30-40

c) 40-50

d) 50 and above

5: WHICH BANK DO YOU BANK WITH?

a) ICICI

b) KOTAK

c) SBI

d) HDFC

e) OTHERS

6: WHICH OF THE FOLLOWING DO YOU FIND MORE CONVENIENT FOR

BANKING USE?

a) Direct Banking
b) Personal Banking

7: HOW FREQUENTLY DO YOU USE DIRECT BANKING CHANNELS?

a) Daily

b) Weekly

c) Monthly

d) Quarterly

8: DO YOU HAVE ANY FEAR WHILE USING DIRECT BANKING CHANNELS?

a) Hacking

b) Improper knowledge

c) Costly

d) Bad customer service

9: WHICH DIRECT BANKING CHANNELS DO YOU USE?

a) Net Banking

b) Home Banking

c) Phone Banking

d) SMS Banking

e) Payment Gateway

f) Alerts
10: WHAT FACTORS DO YOU CONSIDER WHILE OPTING FOR DIRECT
BANKING CHANNELS?

a) Safety

b) Speed

c) Feasibility

d) Reliability

11: FOR WHAT PURPOSE DO YOU USE DIRECT BANKING CHANNELS?

a) Account Information

b) Fund transfers

c) e payments

d) Investments

12: ARE YOU SATISFIED WITH THE SECURITY MEASURES PROVIDED BY

THE BANKS FOR DIRECT BANKING?

a) Yes

b) No

13: HOW WOULD YOU RATE DIRECT BANKING SERVICES?

a) Satisfactory

b) Good

c) Very good

d) Excellent

14: DOES YOUR BANK CHARGE YOU FOR USING DIRECT BANKING
SERVICES?
a) Yes

b) No

15: ARE YOU SATISFIED WITH THE DIRECT BANKING CHANNELS YOU USE?

a) Yes

b) No