EXECUTIVE SUMMARY
The main objective of this project report is to find out about
the how Kotak Mahindra Bank is providing services to NRI
(non-resident Indian) customers through NRI Banking.In NRI Banking.
I find out that Kotak Mahindra Bank offers many products and
services to the customers, who help customers to transfer money
from abroad through various transfers modes like direct transfer,
wire transfer, bank transfer, cheque transfer. Kotak Mahindra Bank
has its own portal website through which customer can transfer
money easily and quickly the name of that portal website is
www.click2remit.com. There are different charges on transfer
according to currency transfer by the customer.As the work provided
to me was that to interact with NRI customer who is having NRI
accounts with Kotak Mahindra Bank and need to tell them about their
non-maintenance charges on accounts, minimum balance is to require
to maintain in accounts, information about the other NRI products
and services provided by banks etc. I also try to find out on which
point the Kotak Mahindra Bank is leading and lagging in NRI Banking
part so that it improve and customer can get more better products
and services.
TABLES OF CONTENTS
Certificate(i)Declaration (ii)Acknowledgement (iii)Executive
Summary(iv)Kotak Mahindra Bank7 History 7-10 Product &
Services11 Awards 12Introduction13 NRI Banking13 NRI Products &
Services14 Types of NRI Accounts15NRO Account16 Benefits of NRO
Account17NRE Account18 Benefits of NRE Account19FCNR Account20
Benefits of FCNR Account21Features of NRO, NRE, FCNR
Accounts22-23Click2remit24Remittances 25 Direct transfer26
Procedure to make direct transfer 26 ABA/routing number 26 Debited
of money from customers account27 Charges for using direct transfer
27 Exchange rate used in direct transfer27-28 Bank transfer 29
Benefits of bank transfer29 Customer need to enter new tracking
number30 Beneficiary receive the money 30 Wire transfer31 Exchange
rate will be applied on customer remittances31 Inform local bank31
Beneficiary receive the money 32 Cheque transfer33 Procedure of
cheque transfer 33 Kotak Bank Collection Boxes34Click2Remit-Modes
of Transfer35Click2Remit-Transfer Charges36-37Research
Methodology38Practical work done39-40Conclusion41Bibliography
42
INTRODUCTION:
NRI BANKING:
NRI Baking is for those people who are non-resident Indian.
Basically the product range includes NRE accounts, NRO Accounts and
FCNR Accounts.While opening a NRI accounts, customer requires the
following documents:(a). Copies of passport pages where name
,address, specimen signature , photograph and visa details are
recorded and copy of valid visa/work permit(the visa could be
either in the passport or given separately). (b). Details of
existing bank account in India like Account number Type of account
Branch name with full postal address including PIN Code and
telephone number of the branch.
NRI Products and Services:
Official wealth management advisory partners of Overseas Indian
Facilitation Centre (OIFC) for Pravasi Bharatiya Divas 2010. A
comprehensive product suite to cater to the financial needs of the
NRIs/PIOs. Global Debit Card for NRE account and an Access India
Debit Card for NRO account. High quality convenience banking with
Net Banking with Net Banking and Phone Banking facility. DTAA
benefit for NRO deposit available to more than 74 countries across
the globe. Dedicated Relationship Manager to assist with all the
customers financial requirements. Click2Remit-state of the art
online remittance portal which is available in currencies at
competitive Forex rates. Online Account Opening facility to assist
the customer for opening of bank account sitting anywhere in the
world. Online assistance- live Chat, Click2Remit, and SMs2Call NRI
Investment services- mutual funds (offline and online). Online MF
services can be used by NRIs across the world
TYPES OF NRI ACCOUNTS:
1. NON-RESIDENT ORDINARY(NRO) ACCOUNTS2. NON-RESIDENT
EXTERNAL(NRE) ACCOUNTS3. FOREIGN CURRENCY NON RESIDENT(FCNR)
NON-RESIDENT ORDINARY (NRO) ACCOUNTS:
It is ideal way to manage your income originating in India.NRO
Accounts available in form of Savings and Term Deposits to manage
your income in india. It is partially repatriable. An NRO account
accepts both foreign currency and Indian rupee. The time period of
an NRO Accounts is from 14 days to 10 years. There are also special
products like Max Yield Deposits where a customer can earn a higher
return on NRO deposits through DTAA benefits. Taxes currently at
30% plus service tax and education cess on DTAA rates. This account
includes checking, saving and fixed accounts. Purpose of NRO
account is to deposit the dues earned in India in Rupees and
foreign exchange funds. In NRO accounts, minimum balance is to be
require to maintained that is of Rs. 10,000/- and deposits of
Rs.50,000/- . In NRO Accounts, repatriation is up to USD q million
per financial year subject to documentation and conditions current
income like rent, dividend, and pension is repatriable subject to
CA certificate and proof of nature of income. Loan (against Fixed
Deposit) is available up to 85% of the loan amount subject to RBI
guidelines. In NRO Accounts joint holder can be Indian residents or
NRIs both. Frequency of interest (Fixed Deposit) is quarterly. NRO
accountholder can access India (local) debit cum ATM card.
BENEFITS OF NRO ACCOUNTS:
1. Two sweep-in facility: The dual advantage of the attractive
returns of a term deposit and the liquidity of saving account. Fund
above a pre-set limit in customer saving account are automatically
swept into high interest term deposit account. Customer money is,
however, completely liquid as they can access their funds in the
term deposit account anytime they choose.2. Auto Renewal of Term
Deposits: Automatically renew the customer deposit on maturity.
This ensures that the interest earned is maximized. 3. Overdraft
against deposit: An overdraft of up to 85% against Rupee/forex term
deposit. This special overdraft facility against term deposit means
that funds maximum liquidity. 4. Repatriation: Repatriation is up
to USD 1 million per financial year subject to documentation and
conditions current income like rent, dividend, and pension is
repatriable subject to CA certificate and proof of nature of
income.5. Loans (against Fixed Deposits): Loan (against Fixed
Deposit) is available up to 85% of the loan amount subject to RBI
guidelines.
NON-RESIDENT EXTERNAL(NRE) ACCOUNTS:
NRE Accounts are fully repatriable. NRE Accounts accepts only
foreign currency. Transfers can be done in NRE Accounts from
overseas or through NET BANKING and portal website of Kotak
Mahindra Bank that is Click2Remit. The term period of an NRE
Account is 1 year to 3 year. The principal and interest earned in
an NRE Account are completely tax free and exempt from Income Tax
in India. This Account includes checking, savings, and fixed
accounts. Purpose of Account is to deposit foreign funds received
from any travels cheques, foreign currency brought through normal
banking channels into account. Accepts maturity proceeds of
investments purchased from even NRE/FCNR Accounts. In NRE Accounts,
minimum balance is require to maintained of RS.10, 000/- and
Deposits of Rs.50, 000/-. In NRE Account, joint holder can only be
NRIs. Loan is available up to 85% for loan value up to an upper
limit of Rs.100 lakh per RBI guidelines. A chequebook for savings
accounts is available. Frequency of interest (Fixed Deposit) is
quarterly.NRE Accountholder can access international debit cum ATM
card.
BENEFITS OF NRE ACCOUNTS:
1. Net Banking:Log to www.kotak.com to have complete access and
control over finances, anytime, and from any place in the world.2.
Global Debit Card:This account holder can access international
debit cum ATM Card. They can access this card anywhere in the
world.
3. Tax On Interest:The principal and interest earned in an NRE
Account are completely tax free and exempt from Income Tax in
India.4. Repatriation: It is freely repattriable.5. Loan(against
Fixed Deposits) :Loan is available up to 85% for loan value up to
an upper limit of Rs.100 lakh per RBI guidelines
FOREIGN CURRENCY NON RESIDENT (FCNR):
FCNR Deposits delivers the three way benefits of attractive
returns, complete repatriation and zero tax liabilities. It
maintains the accounts in the following major currencies which are
as follows:1. USD2. GBP3. EUR4. JPY5. It protect the money from
exchange rate fluctuations. Tax deducted at source (TDS)
certificates is issued. Purpose of account is to deposit foreign
funds received from any travels cheques, foreign currency, other
NRE/FCNR accounts and proceeds of repatriable investment. The term
period of FCNR is 1 year to 5 year. It is fully repatriable. Loan
against fixed deposit is available up to 85% for loan value upto an
upper limit to Rs. 100 lakhs per RBI guidelines. In this, minimum
balance is requiring to maintain that is USD 1000, GBP 500, EUR
1000, and JPY 110,000. In this joint holders can only be non-Indian
Residents (NRIs).
BENEFITS OF FOREIGN CURRENCY NON-RESIDENT:
1) Tenure:The FCNR Term Deposit can be held for minimum period
of one year and maximum period of five years.
2) Mandate Facility:Appoint a family member or trusted friend to
manage the account.
3) Auto Renewal: Automatically renew the deposit on maturity.
This ensures that the interest earned is maximized.
4) Overdraft Against Deposits: An overdraft of up to 85% against
Rupee/forex term deposit. This special overdraft facility against
term deposit means that funds maximum liquidity.
5) Repatriation:It is freely repatriable.
6) Convience Banking:Manage customer term deposit account with
ease and efficiency.
7) Net Banking:Time and place is of no consequence when customer
wants to access their finance. Just log on to www.kotak.com
8) Phone Banking:Just dial 91-22-55006022 from any corner of the
world for account inquires transaction and details on services
offers by Kotak bank.
32
Features of NRE , NRO and FCNR Features NRE NRO FCNR
Repatriability
Currency
Term
Tax on interest
Type of account
Purpose of account
Minimum balance requirements
Period for fixed deposit
Joint holding
Interest rate
Tax deducted at source
Frequency of interest(fixed deposits)
Repatriation
Loans(against fixed deposits)
Cheque book for Saving account
Debit/ATM Card for Saving accountFully
Rupee
1yr-3yrs
Tax free
Checking, saving, fixed
To deposit foreign funds received from any: Traveler's cheques
Foreign currency Other NRE/FCNR a/c Proceeds of repatriable
investmentsSavings:INR10,000Deposit:INR50,000
1-3 years
Only with NRIs
NRE rupee rates
Exempt
Quarterly
Freely Repatriation
Available up to 85% for loan value up to an upper limit of
rs.100 lakhs per RBI guidelines.
Available
International debit cum ATM cardPartially
Rupee
14days-10yrs
Taxes currently at 30%plus service tax and education cess on
DTAA rates
Checking, saving, fixed
To deposit dues earned in India in Rupees foreign exchange
funds
Savings:INR10,000Deposits:INR50,000
15 days-10 years
Indian Residents and NRIs
NRO rupee rates
30% plus service tax and cess
Quarterly
Repatriable up to USD 1 million per financial year subject to
documentation and conditions. Current income like rent, dividend ,
pension is repatriable subject to CA certificate and proof of such
nature of income
Available up to 85% of the loan amount subject to RBI
guidelines.
Available
Access India (local) debit cum ATM card
Fully
USD,GBP,JYP,&EUR
1yr-5yrs
Tax free
Fixed
To deposit foreign funds received from any: Traveler's cheques
Foreign currency Other NRE/FCNR a/c Proceeds of repatriable
investmentsUSD1000, GBP500, EUR1000, JPY110,000
1-5years
Only with NRIs
FCNR rate
Exempt
Half-yearly
Freely Repatriation
Available up to 85% for loan value up to an upper limit of
rs.100 lakhs per RBI guidelines.
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CLICK2REMIT:
www.Click2remit.com is portal website of Kotak Mahindra bank
limited through which customers can transfer money easily. This is
completely online mode of sending money from overseas to India. A
customer needs to follow three steps to transfer money to India
that is: Firstly they have register on www.click2remit.com by
providing important details about themselves. Secondly, they have
to provide their bank details. Thirdly, provide the information
about the receivers account details (with any bank) in India.Any
person who wishes to make payment (in foreign currency) to an
individual in india (in Indian rupees) can use click2remit money
transfers. Customer can make remittance in nine currencies that is
U.S.Dollars, Canadian Dollars, Singapore Dollars, Pound Sterling,
Euro, Japanese Yen, UAE Dirham, Swiss Franc and Australian
Dollars.
REMITTANCES:
Following are four online remittances through which customer can
easily transfer the money by using the portal website of kotak
Mahindra bank limited that is www.click2remit.com.
Direct Transfer
Bank Transfer
Wire Transfer
Cheque Transfer
DIRECT TRANSFER:
Direct transfer uses ACH clearing, full form of ACH is Automated
Clearing House. In the United States, the ACH Network is highly
reliable and efficient nationwide electronic funds transfer system
which enables interbank clearing of transactions among
participating financial institutions. customer may use their
checking account or their saving account with US Bank affiliated to
the ACH network.
PROCEDURE TO MAKE DIRECT TRANSFER:
Customer has to register themselves their personal details on
click2remit. They also need to enter their bank account details
that is bank account number and ABA Routing number that would
enable them directly debit their account using the ACH
facility.
On the basis of customer authorization bank would initiate
two-sub dollar credits and one sub-dollar debit (equivalent to sum
of the two sub-dollar credits) on their account.
Once the sub dollar entries are reflected in customers account,
they need to verify the same on click2remit, and after successful
verification, the account is immediately activated. On activation
they can initiate a transaction.
ABA/ROUTING NUMBERThe American Bankers Association Number (ABA)
or Routing number is also called Routing Transit number. It is nine
digit identification number assigned to each financial institution
and each branch office of that financial institution. Without the
ABA/Routing number, transmitting funds is not possible. The ABA
number can be found on the bottom of the cheque.
DEBITED OF MONEY FROM CUSTOMER ACCOUNTS:Money will be debited
from customer account on the second or third working day from the
date when the customer makes the transaction. Do take account all
holidays like weekends, public holidays, in India and the US while
calculating working days.
CHARGES FOR USING DIRECT TRANSFER:
Remittance Service charge: A nominal USD 2 charges (inclusive of
service tax 10.3%) for amounts of USD 1000 or below for electronic
credits into bank accounts( over100 key banks in India), for credit
to credit card accounts no remittance service charge applicable for
higher amounts.
Foreign Currency Conversion Charge: A nominal charge of rs.25
(service tax @ 10.3% will be additional) will be levied on every
remittance request where foreign currency conversion is carried
out. This charge would be deducted from the amount to be paid to
the beneficiary.
EXCHANGE RATE USED IN DIRECT TRANSFER:
Direct transfer from click2remit offers customer the best
exchange rates. They check indicative exchange rates by clicking on
the transfer charges link on the click2remit home page. Actual
rates applied while converting the dollar amount transferred by
customer into Indian rupees may be different from displayed rates
because of intra-day movements in the rupee dollar exchange
rate.
For guaranteed rate transfer customer get confirmed USD/INR
rates during the course of their transaction for current dated
requests. The exchange rate that is applied for their current dated
guaranteed rate transfer transaction may be different from the
indicative exchange rates displayed on the exchange rate
calculator.
BANK TRANSFER:
Bank transfer is online money transfer facility for remitters in
Europe. Remitters having internet banking facility for their
checking accounts with banks in UK/Germany can use this bank
transfer.Additionally, only customers of banks offering the
following will be able to use this facility: Online third party
funds transfers/payments on their internet banking website
A Remarks or message to receipt field while making the online
third- party transfer, to enter the tracking number generated on
click2remit. Currencies supported GBP and EURO.
BENEFITS OF BANK TRANFERS:
Electronic transfers into any Kotak Mahindra bank account with
250 branches in India.
Electronic transfers into accounts with nearly 100 other banks
and over 70,000 banks branches in India.
Electronic transfers into any Visa Debit/ credit card account in
India.
CUSTOMER NEED TO ENTER A NEW TRACKING NUMBER ON THEIR INTERNET
BANKING ACCOUNT FOR EVERY NEW TRANSACTION:
If customer are sending money to the same beneficiary again,
they must make a new request on money transfer and enter the new
tracking number in their internet banking account.
BENEFICIARY RECEIVE THE MONEY:
It will take up to 2 days working days to credit a Kotak Bank
account from the moment customer transfer the funds from the
overseas bank account.
For the third party banks a additional working day or more may
be taken depending on the policies of that bank.
WIRE TRANSFER: It is easy transfer. Internet-based wire transfer
mechanism thats much more efficient than offline wire transfers.
Errors are minimized with a unique tracking number- given to
customer each time customer use.Online wire transfer that allows
customer to check the status of their remittance online at any
time. Currently, customer can remit money in nine currencies which
are AED, AUD, CAD, CHF, EURO, GBP, USD, and SGP. However, payments
to their beneficiary in India will be made only in Indian
rupees.
EXCHANGE RATE WILL BE APPLIED ON CUSTOMER REMITTANCE:The
exchange rate prevalent on the day their funds are converted to
Indian rupees is the rate that will be applied on their remittance.
Bank online calculator will let know the customer about the
prevailing exchange rate whenever customer book their remittance in
order that customer have fair idea of how much their beneficiary in
India can expect to receive in Indian rupee.
CUSTOMER HAVE TO INFORM TO THEIR LOCAL BANK:Once the transaction
process is complete on the site, customer will get a screen showing
the remittance instruction with bank copy and a customer copy.
Customer need to take a printout of bank copy, fill in the
necessary details, and submit it to their local bank with their
sign, along with their payment instructions. The customer copy is
for their reference and customer can keep it with them.
BENEFICIARY WILL RECEIVE THE MONEY:
It will typically take up to 2 working days to credit and Kotak
bank account from the moment customer transfer funds from their
overseas bank account.
For third party an additional working day or more may be taken
depending on the policies of that bank.
CHEQUE TRANSFER: Cheque transfer is money transfer option
through which customer can send money to India by mailing a foreign
currency cheque drawn on any local bank- to P.O Box in their
country. It is currently available for remitters in the United
States. Customer should not send Cashiers cheques since they will
not be processed.
PROCEDURE OF CHEQUE TRANSFER:
Register on click2remit, click on check option providing
relevant details pertaining to the amount customer would like to
send, their bank details and their beneficiarys details.
Print the remittance instruction form after customer complete
their transaction and attach it to their check.
Post both the remittance instruction form and their check to
bank collection boxes in their country at the address provided.
The bank will clear their check in their country and bank will
dispatch their remittance to their beneficiary once the bank
receives clear funds.
BEFORE MAILING CHECK TO ANY OF KOTAK BANK COLLECTION BOXES
ENSURES FOLLOWING:
Write the date in keeping with the format in their country.
The cheque is payable in to Kotak bank a/c beneficiary name.
Check amount should state the exact amount customer entered on
this site while booking their remittance.
On the memo area of their check, mention their unique
transaction Reference Number
Ensure that check is not post dated.
Mailing address for the check Kotak Mahindra Bank ,PO Box 11448A
New York 10286 1448
CLICK2REMIT-MODES OF TRANSFER:
WIRE TRANSFERBANK/DIRECT TRANSFER CHECK LOCK BOX REMARKS
USAvailableAvailable(ACH)AvailableAll modes have been
activated
UKAvailableAvailable(Net Transfer)NAPopular modes available
GERMANYAvailableAvailable(Net Transfer)
NAPopular modes available
CANADAAvailableNANAACSS will be enabled
SINGAPOREAvailableNANAGIRO will be enabled
AUSTRALIAAvailableNANABank transfer will be enabled
JAPAN/SWISS/UAEAvailableNANAPopular modes available
CLICK2REMIT-TRANSFER CHARGES:
CURRENCYTRANSACTION AMOUNT SLABSC2RR2IM2I
USD0-500USD 2USD 3USD 2
501-1000USD 2USD 5USD 2
1000 and aboveNo chargeUSD 9No charge
GBP0-500GBP 2GBP 3GBP 2
501-1000No chargeGBP 5No charge
1000 and above No chargeGBP 5No charge
EUR0-800EUR 2EUR 2EUR 2
800 and aboveNo chargeEUR 3No charge
1000 and aboveNo chargeEUR 5No charge
JPY0-10,000JPY 1000JPY 1000NA
10,000 & aboveJPY1000JPY 1000NA
AUD0-1500AUD 5AUD 6AUD 5
1500 & aboveNo chargeAUD 12No charge
SGD0-1000SGD 5SGD 6SGD 5
1001-2000SGD 5SGD 6SGD 5
2000 & aboveNo chargeSGD 6No charge
CAD0-1000CAD 4CAD 15CAD 4
1001-1500CAD 4CAD 15CAD 4
1501 and AboveNo ChargeCAD 15No Charge
CHF0-1000CHF 4NACHF 4
1001-1500CHF 4NACHF 4
1501 and AboveNo ChargeNANo Charge
AED0-1000AED 10AED 15AED 10
1001-4000AED 10AED 15AED 10
4001 and AboveNo ChargeAED 15No Charge
FC CINR 25+St34-125^^INR 25
Note: Remit2India collects money as service charge which varies
currency slab wise and ranges from min of INR 34 to INR 125.
a
PRACTICAL WORK DONE:
According to work allotted to me, I need to update the customers
data regarding their current balance as well as updating their
preferred contact number to get in contact with the customer and
inform them regarding their account status.I made interaction with
customer informed them about their account details and even
explained them about non- maintenance charges if an average balance
is not maintained in their respective account.Get in calling them
and told them about the transfer procedure. Also explain about the
how they can make online transfer through overseas. Call to
customer at their convenient time as per informed by international
calling codes and their timing to call respective country that is
as follows:
International Calling Code
Country Codes TimingsUSA001 After 6pmUK 0044 After 3 pmUAE0097
12PM-7PMKENNYA00254 12pm- 7pmAUSTRALIA 0061 Till 3pmSINGAPORE 0065
10 am 6pmAFRICA0025 12pm- 7pmOMAN 00968 12pm -6pmUGANDA 00256 12pm-
7pm
CANADA001 After 7pm and before10am
Spoke to customer and made them transfer online, it usually
takes 4 to 5 days to get credited in their respective account and
most happening experience was that customer was polite and even
gave reference of their respective friends and relatives for
opening NR accounts.
CONCLUSION:
As per my experience in the NR banking department I came to know
about the various transfer procedures that are at present available
in the international market i.e. the remittances available. Also I
came to know about the problems & difficulties that the NR
customers face while making online transfers.
Kotak Mahindra Bank Limited is having widespread transfer modes
& NR products. It has various facilities that provide
convenience to the customers residing in far-away countries for
remitting their money to India.
BIBLIOGRAPHY:
1.) www.kotak.com2.) www.google.com3.) www.wikipedia.com4.)
www.click2remit.com
