Faculty of Management Studies

Institute of Rural Management

Jaipur

WINTER INTERNSHIP PROJECT

Presentation
On
Study on Kotak 811 Digital Saving Account

Submitted by:
Ashima sethi
Corporate guide: Faculty guide:
Mr. Anshul Jain Ms Nisha Sharma
Flow of presentation:-

 Objective of the study

 Profile of the bank
 SWOT analysis
 About the topic
 Findings and interpretation
 Learnings from internship
 References
Objective of the Study:-

•Study Of Small Finance Bank Concept.

•Study of kotak811 digital saving account.

•Study Of Digital Banking Of AU Small Finance Bank..

•Study Of Bank Products .

 Chapter 1:
Small Finance Bank concept:-

• Small finance bank is a specific segment of banking created by RBI under the
guidance of government of India.

• The prime objective of a small finance bank is to undertake basic banking activities
of acceptance of deposits and lending to unserved and underserved sections of the
population.

• The SFBs (Small finance bank) provide services to small business units, small and
marginal farmers, micro and small industries and unorganized sector entities
through high technology & low-cost operations, while the Scheduled Commercial
banks provided banking services to all sections of the society.

• The SFBs (Small finance bank) are required to open at least 25% of its branches in
a financial year in unbanked rural areas, similar to the scheduled commercial banks.

• The Small finance banks are required to extend 75% of its ANBC (Adjusted Net
Bank Credit) to priority sector, whereas the SCBs (Scheduled Commercial Banks)
extend ANBC to priority sector.
 10 Applicants who have received a nod are:-

• Au Financiers (India) Ltd.

• Capital Local Area Bank Ltd.
• Disha Microfinance Pvt. Ltd.
• Equitas Holdings Pvt. Ltd.
• ESAF Microfinance and Investment Pvt. Ltd.
• Janalakshmi Financial Services Pvt. Ltd.
• RGVN (North East) Microfinance Ltd.
• Suryoday Micro Finance Pvt. Ltd.
• Ujjivan Financial Services Pvt. Ltd.
• Utkarsh Micro Finance Pvt. Ltd
Chapter 2:
AU SMALL FINANCE BANK
About the Bank:-
• It started operations as “an NBFC in 1996”.
• AU small finance bank is, since 2017, a small finance bank
business in India, Formerly known as AU Financiers.
• It received a license from the RBI under section 22 (1) of ‘the
banking regulation act 1949’ to set up a small finance bank in
December 2016 and commenced operations from April 19,
2017.
• Throughout, the journey they have focused on solutions,
completely based on the needs of the customers.
• This bank mainly finances assets revenue generating
potential.AU is redefining what a bank should be. They enable a
convenient banking experience.
Cont.
•This transformation, from being a finance company to a bank, which
provides a place for safe keeping, is a reflection of many things that:
AU stands for:-
Inclusiveness
Progress for all
Action and Urgency
Simplicity

AU Board of directors include:-

Mr. Mannil Venugopalan (chairmen of board)

Mr. Sanjay Agarwal (Managing director and CEO)
Mr. Uttam Tibrewal (Executive director)
Mr. Krishan Kant Rathi (Independent Director)
Ms. Jyoti Narang (Independent Director)
Vision and Mission of the Bank:-

• The vision of this bank is to be the world’s most trusted retail bank and
devoted employer that is admired as the representation of financial
inclusion and economic success ordinary people do extraordinary things to
transform society at large, thereby guaranteeing trust , confidence and
customer delight.

• The mission statement is to build one of India’s largest retail franchise by

2022 that is admired for :-
• Making every customer feel supreme while being served.

• Aspiring that no Indian is deprived of banking.

• Bias for action, dynamism, detail orientation, and product and process
innovation.

• Globally respected standards of integrity, governance and ethics.

• Being an equal opportunity employer, providing a collaborative and
rewarding platform to all its employees.
Products of AU:-
• Personal banking:-
Saving account:
Samarth (Regular saving account)
Pragati (Salary account)
Vidyaarthi (For students)
Varishtha (For senior citizens)
Sahyog (For institutes / trusts / society/ clubs)
Tejaswini (For womens)
Bachpan (For children)
Samarth Pravasi (For NRI / persons of indian origin)
• Term Deposit:

Fixed Deposit
Recurring Deposit
•Current account:
Shubh Labh(the mandi /adatiya account)
Shubh Shuruaat (Start-up account)
Vikray (Retailer account)
AU Samriddhi
Mangalam( For comprehensive Business account)
Parivahan ( the transporters account)
Paryatan( the travel and tourism account)

• Debit Card:
Rupay Classic
Rupay Platinum
Visa Business Gold
Visa Business Platinum
Visa Gold
Visa Platinum

Locker Facility: Per day facility of less than 10 Rs.

• Loans:
Wheels
Secured Business loans
Agri-Business loans
Gold loans
Car loans
Three wheeler loan
• Wholesale Banking:
Business Banking
NBFC/HFC/MFI Lending
Real Estate Group
 Focus of the bank:-

• Each branch will work as an agent for change to drive Digital Education &
Cash-Less initiatives.
• Best in class technology architecture to drive digital banking initiatives in
semi urban & rural geographies.
• Serving the Unserved, the bank is offering banking services to Greenfield
& passionate entrepreneurs across segments thus building on the dream of
Make in India.
• Rural and Unbanked are a source of strength for AU unlike a challenge for
the incumbents.
• Deep penetration & Understanding of the Geography.

• Technology enabled complete suite of asset, liabilities & investment

products with industry first features.
 USPs of the bank:-
 Customer convenience:-
 No Deposit / Withdrawal Slip.
 Paperless Cash Transactions.
 Extended Banking Hours.
 True Anywhere Banking.

 Customer Centric Products:-

 Monthly Interest Payouts.
 Higher Interest Rates.
 Avail each and every product & facility across all branches.
 No hidden charges.
 Hassle Free Banking.
 Regular upgrades of benefits with Banking Life-Cycle .

 Easy Digital Banking:-

 Aadhar Enabled Paperless Account opening.
 Cash Recycle.
 Internet Banking.
Journey of AU small finance bank: - from 1996 to 2017

• In 1996,AU’s glorious journey has started.

AU financiers Ltd. The company was initially incorporated in the
name of L.N. finco gems private limited.
• In 2000, The Company received the certificate of registration from the
RBI, to carry on the business of non- banking financial institution without
accepting public deposits.
• In 2003-03, Registers with RBI as a non deposit taking NBFC, ties up with
HDFC bank as a channel partner.
• In 2006-09, Expanded its base to Maharashtra & Gujrat.
• In 2010-11, RBI registers the company as an asset financing company and
subsequently classifies it as NBFC-ND-AFC. AU started offering housing
loans through whole- time subsidiary and expanded its operations to
Punjab, Madhya Pradesh and Goa.
.
• In 2012-13,Launched insurance broking services and expanded presence to
Delhi, Himachal Pradesh and Haryana.
• In 2014-15, Became the only AFC to receive ‘in- principle’ approval from
the RBI for establishing a small finance bank.
• In 2016, Received final approval from the RBI in December for
transforming into SFB. Divested equity stake in AU Housing Finance
Limited, Index money limited and AU insurance Broking services private
Limited.
• In 2017, AU commences operations as Small Finance Bank
AU Small Finance Bank listed on 10 July, 2017 .
• AU’s Customers:-
• Low And Middle Income Individuals And Businesses.
• Loan To Micro small and medium enterprises (MSME) And small
and medium enterprises(SME).
• Mostly Targeted Customers Are The People Of Rural Areas.
• For Women's ,The Bank is Offering Various Facilities In Accounts
Like, Tajeswini etc.
• For Children Also The Bank Is Offering Services Like , Bachpan.
• Individual , corporate firm, HUF who wants to avail the facility that
are provided by the bank
• AU’s Competitors:-
• Ujjivan Financial Services Pvt. Ltd. Bengaluru.
• Equitas Holdings Pvt. Ltd. Chennai.
• Disha Microfinance Pvt.Ltd. Ahemdabad.( Fincare Small Finance
Bank)
• Some Private Players Like, Kotak Mahindra Bank, Indusind Bank,
Axis Bank.
Chapter 3:-
SWOT Analysis Of The Bank:-
Strength:-
 300+ Branches , 11states , 113 asset centres and 291
ATMs.
 Listed in NSE (national stock exchange) and BSE
(bombay stock exchange).
 Became a scheduled commercial bank.
 Created customized product and services to cater to
the evolving needs of its customers.
Little geographical overlap with other SFB’s which
limits the competition among existing players.
Minimum Documentation.
 Customer centric product.
Weekness:-

Mostly Targeted customers are rural people.

The bank cannot be a business correspondent for
another bank.
Opportunities:-
 AU bank operates in underpenetrated geographies which
offers its growth potential.
Launch several other key lending product which will
accelerate its business growth.
 The bank has an opportunity to take an overview of other
existing banks that how they are working .

Threats:-
 Stringent banking norms by the RBI and government.
 Highly competitive environment.
 Challenges to rise in operating experiments on account of
introduction :- new products, recruitments, training, Up-
gradatations of the system
Chapter 4:-
Objective of the Study:-
• Study Of Small Finance Bank Concept.
• Study Of Digital Banking Of AU Small Finance Bank.
• Study Of Digitalization Of Other Competitive Banks Of
AU Bank , like Kotak Mahindra Bank.
• Study Of Bank Products.

• Study On Kotak 811 Digital Saving Account:-

In the market there are many competitors for the banks so this
bank wants to become more digitalized so that the bank can attract the
customer.”AU bank” is doing research about the paperless account
opening app and kotak Mahindra bank is doing the same. Whether the bank
already has the “mobile banking app” in this mobile banking app the bank
is providing the services of deposits and now the bank is willing to be more
digitalized so that they want to open a paperless account.
• KOTAK 811 CAMPAIGN
– Kotak Mahindra bank on Wednesday, March 30, 2017,
launched the 811 banking app.
– The new plan “kotak 811” is inspired by the date (November
8) on which demonetization was announced by Prime Minister
Narendra Modi.

 Key features of Kotak 811digital saving account :-

– Up to 6%* interest p.a.
– No frill account facility( Zero balance account)
– Open an account within 5 minutes by filling basic information.
– Virtual debit card
– Scan and pay
– Shopping, Travelling, Entertainment experience
• Procedure of opening account:-

Basic Details

Aadhaar Verification

Personal Details

Pin Setup

Confirmation
• Up to 6%* interest p.a. and Zero Balance Banking
• Earn up to 6%* interest per annum on the balance maintained.
• There are no charges for not maintaining a minimum balance.
• Now the customers only need one app and by filling the details they
can experience mobile banking like never before. Open savings
account - Kotak 811.
• Earn 6% p.a. interest on savings account balance over Rs. 1 lakh
and up to Rs. 1 crore.
• Earn 5% p.a. interest on savings account balance up to Rs. 1 lakh.
• Earn 5.5% p.a. interest on savings account balance above Rs. 1
crore.

• Debit Card in a new avatar

• The card is no more plastic with 811. It’s a virtual debit card. A
Virtual Visa Debit Card which you can use to shop online as well as
pay via Scan & Pay at merchant outlets
• Banking solutions at a single touch
• Cheque book facility is also available on demand of the consumer.
• Deposit/Withdraw cash at branch.
• Transfer funds via IMPS/NEFT/RTGS and the customer can enjoy all
other benefits of a regular savings account.

• Scan & Pay

• No need to scrabble for cash and change or hand-over your card to
make payments. Just Scan & Pay for shopping, cab, groceries,
home deliveries and more.

• Shopping, Travelling, Movies

• Free yourself from hassle of having multiple apps. 811 brings to
you Banking combined with seamless experience of shopping,
Travelling and Entertainment.
 Chapter 5:-
Interpretation and Findings:-
• I found the reason behind why the small finance bank concept is introduced
for the people
• I found how the kotak Mahindra bank took an initiative at the time of
demonetization by introducing a digital saving account namely kotak811
• I found that the bank is offering the various types of products to the customers
like for womens there is tejeswini, for senior citizens there are varistha etc.
• I found that AU small finance bank want to do the more digitalization, like they
recently launched the mobile banking app.

Among all NBFCs and all MFIs ,who have received the license of small
finance bank, only some bank have started their operations like AU small
finance bank and Ujjivan finance etc.This bank is the bank who now became
the scheduled commercial bank. The Bank is doing various type of
advertisements so that more and more people can know about the bank. The
bank is also offering various types of account facilities for all the customers ,
there are many schemes for tours and travels , for womens , for children, for
startups , for senior citizens etc.
 Chapter 6:-
Learnings from the internship:-
• During the winter internship project, Ihave learned a brief knowledge
about Bank’s products and services.
• The atmosphere of the bank is very good and the employees are also very
helpful.
• I found that how the bank is doing their work efficiently so that they can
beat other banks.
• I make an understanding about the small finance bank concept.
• During the internship I have learned various skills like patience, team work
and Time management
Chapter 7:-
Reference:-

•www.aubank.in
•www.kotak.com
•https://www.aubank.in/au-journey
•www.kotak811.com
•www.kotakmahindrabank.in