Axis bank retail banking

Project Guide:Mrs. Shilpa Rathod Mr Paresh VoraBranch Head & AVP Operation HeadAXIS Bank AXIS BankIsanpur Branch Isanpur BranchAhmedabad Ahmedabad

Faculty Mentor:Prof. Somdeb Lahiri

Professor (Economics)

School of Petroleum Management

Pandit Deendayal Petroleum Management

Submitted By:Ketan Gyanchandani

20141028

PGP14


Pandit Deendayal Petroleum Management

SUMMER INTERNSHIP PROJECT REPORT

“THE NUANCES AND WORKING OF RETAIL

BANKING”

SUMMER INTERNSHIP PROJECT REPORT – AXIS Bank

Ketan Gyanchandani School of Petroleum Management, PDPU|2014-16


DECLARATION

I hereby declare that this project with the title- “The Nuances and Working of Retail Banking” is the result of a six weeks of summer internship done by myself- Mr Ketan Gyanchandani from School of Petroleum Management, Pandit Deendayal Petroleum University at AXIS Bank, under the guidance of Mrs Shilpa Rathod, AVP & Branch Head and Mr Paresh Vora, Operation Head at AXIS Bank, Isanpur Branch, Ahmedabad.

I further declare that this project is authentic and not submitted by any other student previously. I also confirm that the contents of this report and the views expressed herein have been discussed and deliberated with the guide.

DATE:

PLACE: Ahmedabad

Ketan Gyanchandani

PGP14


Pandit Deendayal Petroleum University

Email: [email protected]

(M): +91-96248 73666



ACKNOWLEDGEMENT

It is my pious duty to thank AXIS Bank for giving me an opportunity to undertake my summer internship in a very motivating and challenging environment.

I am thankful to my Project Guide Mrs Shilpa Rathod, AVP & Branch Head and Mr Paresh Vora, Operation Head at AXIS Bank, Isanpur Branch, Ahmedabad. Without their guidance this project would not have been possible. I am also thankful to all the employees of AXIS Bank, Isanpur Branch, for their affectionate gestures and supportive attitude towards me. I owe whatever I have learnt and am deeply obliged to them for providing me the impetus and the support of their abstruse knowledge and experience.

I am highly obliged to my Faculty Mentor- Prof Somdeb Lahiri, Professor (Economics), School of Petroleum Management, Pandit Deendayal Petroleum University, Gandhinagar for his continuous support and guidance throughout the tenure of Internship. I am also thankful to Alumni Mentor- Mr Alakshendra Alex, Sapient Global Markets, Associate - Trade Risk Management, for his continuous support and guidance. I am also grateful to School of Petroleum Management, Pandit Deendayal Petroleum University, Gandhinagar for granting me the permission to undertake my summer training in a very conducive working environment at AXIS Bank

In the end, I feel immense pleasure in expressing gratitude to my family, friends without them, I would not have been able to complete this project successfully.

Ketan Gyanchandani

PGP14


Pandit Deendayal Petroleum University



EXECUTIVE SUMMARY

MBA is a stepping-stone to the management carrier and to develop good manager it is necessary that the theoretical must be supplemented with exposure to the real environment. Theoretical knowledge just provides the base and it’s not sufficient to produce a good manager that’s why practical knowledge is needed.

In accordance with the requirement of MBA course I had summer training project in Retail Banking department of AXIS Bank on the topic “The Nuances & Working of Retail Banking”.

The retail banking environment has undergone major change. Retail banking customers are much more active than they were a decade ago. Customers are demanding more customized products and services. This has impose significant new demands on retail banks. With a view to attaining an increasingly significant position in the growing retail financial services sector in the country, banks have continued to provide a sustained thrust to retail banking through a continuously expanding network and a growing sales force with customer relationship skills, that has enabled the distribution of a wide range of products to a fast expanding customer base.

The report gives an overview of the Retail banking products offered at AXIS Bank, the security measure of the bank, guidelines by RBI, Negotiable Instruments ACT, recently launched government schemes, etc.



Table of Contents

Executive Summary………………………………………...........................................4

1. Banking Sector…………………………………………………………………71.1 Indian Banking System…………………………………………………......71.2 Banking Activities………………………………………………………….101.3 Recent Developments………………………………………………………111.4 Government Initiatives……………………………………………………..11

2. Negotiable Instrument Act……………………………………………………122.1 Promissory Note…………………………………………………………….122.2 Bills of Exchange……………………………………………………………132.3 Cheques……………………………………………………………………..14

3. AXIS Bank………………………………………………………………….....163.1 Introduction………………………………………………………………...163.2 Evolution of AXIS……………………………………………………….....173.3 Head of AXIS Bank………………………………………………………..183.4 Vision & Values………………………………………………………….....20

4. Business Description of Axis Bank……………………………………………20

5. AXIS Group………………………………………………………………….....21

6. Products of AXIS Bank………………………………………………………..226.1 Accounts…………………………………………………………………….226.2 Current Accounts……………………………………………………………276.3 Loan………………………………………………………………………....316.4 Investments…………………………………………………………………35

7. Account Opening……………………………………………………………....407.1 Saving Account……………………………………………………………..407.2 Salary Account……………………………………………………………...407.3 Account of Institution/Organisation………………………………………...40



7.4 Account of Society……………………………………………………….41

8. Account Details………………………………………………………………418.1 Know Your Customer (KYC)…………………………………………….428.2 Account Profiling…………………………………………………………448.3 Monitoring of Transactions……………………………………………….45

9. Deposit Accounts…………………………………………………………….459.1 CASA……………………………………………………………………..459.2 Domestic Term Deposits………………………………………………….469.3 Accounts of Minors……………………………………………………….50

10. Risk Management……………………………………………………………52

11. Payment and Settlement System……………………………………………5411.1 ECS……………………………………………………………………5411.2 RTGS………………………………………………………………….5511.3 NEFT………………………………………………………………….55

12. 24*7 Banking………………………………………………………………...55

13. Secure Banking………………………………………………………………56

14. Pradhan-Mantri Suraksha Bima Yojana…………………………………..57

15. Pradhan-Mantri Jeevan Jyoti Bima Yojana……………………………….59

16. Short Analysis of Govt. launched Schemes…………………………………60

17. Atal Pension Yojana…………………………………………………………6117.1 Process Flow Chart……………………………………………………6517.2 Short Analysis…………………………………………………………66

18. Recommendations and Conclusion………………………………………….69

Abbreviation…………………………………………………………………………..70

References……………………………………………………………………………..71



Banking sector:A bank is a financial intermediary and money creator that creates money by lending money to a borrower. Lending activities can be performed directly by giving loan or indirectly through capital markets. Capital markets are financial markets for the buying and selling of long-term debt or equity-backed securities. These markets channel the wealth of savers to those who can put it to long-term productive use, such as companies or governments making long-term investments. Financial regulators, such as the Securities and Exchange Board of India (SEBI) or U.S. Securities and Exchange Commission (SEC), oversee the capital markets in their jurisdictions to protect investors against fraud, among other duties. Due to their importance in the financial system and influence on national economies, banks are highly regulated in most of countries either by National Government or Central Bank.

Banking sector in India:According to the Reserve Bank of India (RBI), the banking sector in India is sound, adequately capitalised and well-regulated. India is one of the top 10 economies globally, with vast potential for the banking sector to grow. With the potential to become the fifth largest banking industry in the world by 2020 and third largest by 2025, according to KPMG-CII report, India’s banking and financial sector is expanding rapidly. The new norms of Reserve Bank of India’s (RBI) will provide incentives to banks to spot potential bad loans and take corrective steps that will curb the practices of unreliable borrowersThe Indian Banking industry is currently worth 81 trillion (US $ 1.31 trillion) and banks ₹are now utilizing the latest technologies like internet and mobile devices to carry out transactions and communicate with the masses.

The Indian Banking system consists of:



1) Central Bank:A central bank functions as the apex controlling institution in the banking and financial system of the country. It functions as the controller of credit, banker’s bank and also enjoys the monopoly of issuing currency on behalf of the government. A central bank is usually control and quite often owned, by the government of a country. The Reserve Bank of India (RBI) is such a bank within India.

2) Schedule Commercial Bank:It operates for profit. It accepts deposits from the general public and extends loans to the households, the firms and the government. The essential characteristics of commercial banking are as follows:

Acceptance of deposits from public.For the purpose of lending or investmentRepayable on demand or lending or investmentWithdrawal by means of an instrument, whether a cheque or otherwise

I. Public Sector Banks:

Public Sector Banks (PSBs) are those banks where majority of stakes is with the Government. All these PSBs are listed on stock exchanges. Central Government entered into banking industry with the nationalization of Imperial Bank of India in 1955, than in 1969 14 major banks were nationalised and in 1980 4 more banks

were nationalised. To name a few PSBs: State Bank of India and its subsidiaries, Bank of India, Bank of Baroda, Bharatiya Mahila Bank, Central Bank of India, etc.

The objectives behind nationalisation where:

To break the ownership and control of banks by a few business families,To prevent the concentration of wealth and economic power,To mobilize savings from masses from all parts of the country,To cater to the needs of the priority sectors

II. Private Sector Banks:Private Sector Banks in India is made up of private and public banks. But the greater part of stake is in the hand of private shareholders and not with the Government. Private Banks are categorized as Old and New Private banks.



Old Private Banks: These are those banks which were not nationalized during the process in 1969 and 1980 due to the smaller scale or regional reach only.

Example: Dhanlaxmi Bank, Federal Bank, ING Vysya Bank, Karur Vysya Bank, etc.

New Private Banks: These are the banks which came in to operations after the liberalisation in 1990s. Banking Regulations were amended in 1993 so that new private banks can enter into the Indian Banking Industry. Example: ICICI Bank, AXIS Bank, HDFC Bank, Yes Bank, Development Credit Bank, Kotak Mahindra Bank, RBL Bank, etc.

But there were certain criteria for the establishment of new private banks which are as follows:

Bank should have minimum net worth of Rs 200 Cr.Promoters should hold a minimum of 25% of paid-up capitalWithin 3 years of the starting of the operations, the bank should offer shares to public and their net worth must increase to 300 Cr.

III. Foreign Banks:With the globalization hitting the world, the concept of banking has changed substantially. The concept of Foreign Banks have changed the prevailing banking scenario in India. Banking is now more of more customer-friendly, new technology innovations have been implemented like mobile banking, mobile application of banks, etc.Example: HSBC Bank, JP Morgan Chase Bank, Deutsche bank, Standard Charter Bank, etc.

IV. Regional Rural Banks:Regional Rural Banks(RRBs) were started in 1970 due to the fact that even after the nationalization, there were cultural issues related to lending to the farmers The

main purpose of RRBs is to mobilize financial resources from rural/semi-urban areas and grants loans and advances mostly to small and marginal farmers, agricultural labours, etc. Each RRB is owned by three entities with their respective shares as follows: Central Government → 50% State government → 15% Sponsor bank → 35%All the RRBs are regulated by NABARD (National Bank for Agricultural and Rural Development)

Example: Karnataka Vikas Grameena Bank, Maharashtra Gramin Bank, etc.

3) Schedule Co-operative Bank:Larger institutions are often called cooperative banks. Like credit unions, cooperative banks are owned by their customers and follow the cooperative principle of one person, one vote.



Unlike credit unions, however, cooperative banks are often regulated under both banking and cooperative legislation. They provide services such as savings and loans to non-members as

well as to members, and some participate in the wholesale markets for bonds, money and even equities

I. Urban Co-operative Banks:Urban Co-operative Banks are giving banking facility to grass root persons. As Urban Co-operative Banks are mostly working in the rural and semi-urban areas they understand the genuine commercial needs of the local population in their area of operation. Urban Co-operative Banks help small and medium sized traders, entrepreneurs, artisans and farmers who are deprived of banking facility as private sector and commercial banks tap only high profile and successful entrepreneursExample: Ahmedabad Mercantile Co-Op Bank, Kalupur Commercial Coop. Bank, Bombay Mercantile Co-operative Bank, Saraswat Co-operative Bank, etc.

II. Rural Co-operative Banks:The rural cooperatives are further divided into short-term and long-term structures. The short-term cooperative banks are three tiered operating in different states.

i) State Cooperative Banks- They operate at the apex level in states District Centralii) Cooperative Banks- They operate at the district levels iii) Primary Agricultural Credit Societies- They operate at the village or grass-root

level.

The long-term structures are further divided into – i) State Cooperative Agriculture and Rural Development Banks (SCARDS)- These

operate at state-level. ii) Primary Cooperative Agriculture and Rural Development Banks (PCARDBS)-

They operate at district/block level.

Different Banking activities:

Retail banking: Dealing directly with individuals and small businesses;

Business banking: Providing services to mid-market business;

Corporate banking: Directed at large business entities;

Private banking: Providing wealth management services to high net worth individuals and families

Investment banking: Relating to activities on the financial markets.



Recent Developments:

The RBI has allowed third-party white label automated teller machines (ATM) to accept international cards, including international prepaid cards, and said white label ATMs can now tie up with any commercial bank for cash supply.

The Competition Commission of India (CCI) has cleared the merger of ING Vysya Bank with Kotak Mahindra Bank, which would create the country's fourth largest private sector lender. The proposed Rs 15,000 cr. (US$ 2.36 billion) deal is not likely to have any appreciable adverse effect on competition in India.

The Union cabinet has approved the establishment of the US$ 100 billion New Development Bank (NDB) envisaged by the five-member BRICS group

Government Initiatives:Pradhan Mantri Jan Dhan Yojna: The scheme has been started with a target to provide 'universal access to banking facilities' starting with "Basic Banking Accounts" with overdraft facility of 5000 after six months and RuPay Debit card with inbuilt ₹accident insurance cover of 1 lakh and RuPay Kisan Card₹

Under the scheme:

i. Account holders will be provided zero-balance bank account with RuPay debit card, in addition to accidental insurance cover of Rs 1 lakh (to be given by 'HDFC Ergo').

ii. Those who open accounts by January 26, 2015 over and above the 1 lakh ₹accident, they will be given life insurance cover of 30,000(to be given by ₹LIC).

iii. After Six months of opening of the bank account, holders can avail 5,000 ₹overdraft from the bank.

iv. With the introduction of new technology introduced by National Payments Corporation of India (NPCI), a person can transfer funds, check balance through a normal phone which was earlier limited only to smart phones so far.



v. Mobile banking for the poor would be available through National Unified USSD Platform (NUUP) for which all banks and mobile companies have come together

vi. On the inauguration day, 1.5 Cr. (15 million) bank accounts were opened under this scheme. By 28 January 2015, 12.58 Cr. accounts were opened, with around 10590 cr. (US$1.7 billion) were deposited under the scheme.₹

Pradhan Mantri Suraksha Bima Yojna: Accident Insurance Scheme offering accidental death and disability cover for death or disability on account of an accident.

i. A 12/- per annum premium will be deducted from the account holder’s ₹savings bank account through ‘auto debit’ facility in one instalment.

ii. In case of accidental death or full disability, payment of 2,00,000/- will be ₹given to the nominee and in case of partial disability payment of 1,00,000/- ₹will be given.

Pradhan Mantri Jeevan Jyoti Bima Yojna: is a government-backed Life insurance scheme in India. This scheme will be linked to the bank accounts opened under the Pradhan Mantri Jan Dhan Yojna scheme.

A premium of Rs 330/- per annum will be deducted from the account holder’s savings bank account through ‘auto-debit’ facility in one instalment.

In case of death of policy holder in any case, nominee is entitle to receive 2,00,000/-.₹

Banking is working specifically on the guidelines of the Reserve Bank of India. Out of all the acts Negotiable Instrument Act is one of the most important act for running of the banking activities.

Negotiable Instrument Act:This is an act to define and lay down the law relating to Promissory Notes, Bills of Exchange or Cheques payable either to bearer or to order. This act operates subject to the provisions of Sections 31 and 32 of the Reserve Bank of India Act, 1934. Section 31 of the Reserve Bank of India Act provides that no person in India other than the RBI or as expressly authorised by this Act, the Central Government shall draw, accept, make or issue any bill of exchange,

hundi, promissory note or engagement for the payment of money payable to bearer on demand.



Types of Negotiable Instrument are:

1. Promissory Note: It is an instrument in writing (not being a bank-note or a currency note) containing an unconditional undertaking, signed

by the maker, to pay a certain sum of money only to, or to the order of, a certain person or to the bearer of the instrument.

i. It must be in writing: A mere verbal promise to pay is not a promissory note. The method of writing (either in ink or pencil or printing, etc.) is unimportant, but it must be in any form that cannot be altered easily.

ii. It must certainly an express promise or clear understanding to pay: There must be an express undertaking to pay. A mere acknowledgment is not enough. The following are not promissory notes as there is no promise to pay.

iii. Promise to pay must be unconditional: A conditional undertaking destroys the negotiable character of an otherwise negotiable instrument. Therefore, the promise to pay must not depend upon the happening of some outside contingency or event. It must be payable absolutely.

iv. It should be signed by the maker: The person who promise to pay must sign the instrument even though it might have been written by the promisor himself. There are no restrictions regarding the form or place of signatures in the instrument. It may be in any part of the instrument. It may be in pencil or ink, a thumb mark or initials. The pro-note can be signed by the authorised agent of the maker, but the agent must expressly state as to on whose behalf he

is signing, otherwise he himself may be held liable as a maker. The only legal requirement is that it should indicate with certainty the identity of the person and his intention to be bound by the terms of the agreement.

v. The promise should be to pay money and money only: Money means legal tender money and not old and rare coins. A promise to deliver paddy either in the alternative or in addition to money does not constitute a promissory note.

2. Bill of Exchange: A “bill of exchange” is an instrument in writing containing an unconditional order, signed by the maker, directing a certain person to pay a certain sum of money only to, or to the order of, a certain person or to the bearer of the instrument.

Essential conditions of a bill of exchange:



It must be in writing.It must be signed by the drawer.The drawer, drawee and payee must be certain.The sum payable must also be certain.

It should be properly stamped.It must contain an express order to pay money and money alone.

3. Cheque:

A “Cheque” is bill of exchange drawn on a specified banker and not expressed to be payable otherwise than on demand and it includes the electronic image of a truncated cheque and a cheque in the electronic form.

When a promissory note, bills of exchange or cheque is transferred to any person, so as to constitute the person the holder thereof, the instrument is said to be negotiated.

Section 31 - Liability of Drawee of Cheque:

The drawee of a cheque having sufficient funds of the drawer in his hands properly applicable to the payment of such cheque must pay the cheque when duly required to do so, and, in default of such payment, must compensate the drawer for any loss or damage caused by such default.

Section 85(1) - Cheque Payable to Order:

Where a cheque payable to order presents to be endorsed by or on behalf of the payee, the drawee is discharged by payment in due course.

Section 85(2) – Cheque Payable to Bearer:

Where a cheque is originally expressed to be payable to bearer, the drawee is discharged by payment in due course to the bearer thereof, notwithstanding any endorsement whether in full or in blank appearing thereon, and not withstanding that any such endorsements presents to restrict or exclude further negotiation.

Section 89 – Payment of Instrument on which Alteration is not Apparent:

Where a negotiable instruments have been materially altered but does not appear to have been so altered, or where a cheque is presented for payment



which does not at the time of presentation appear to be crossed or to have had a crossing which has been abliterated, payment thereof by a person or banker liable to pay, and paying the same according to the apparent tenor thereof at the time of payment and otherwise in due course, shall discharge such person or banker from all liability thereon; and such payment

shall not be questioned by reason of the instrument having been altered, or the cheque crossed.

Section 129 – Payment of Crossed Cheque out of Due Course:

Any banker paying a cheque crossed generally otherwise than to a banker, or a cheque crossed specially otherwise than to the banker to whom the same is crossed, or his agent for collection, being a banker, shall be liable to the true owner of the cheque for any loss he may sustain owing to the cheque having been so paid.

Section 131 – Cheque Collecting Banker’s Protection:

A banker who has in good faith and without negligence received payment for a customer of a cheque crossed generally or specially to himself shall not, in case the title to the cheque proves defective, incur any liability to the true owner of the cheque by reason only of having received such payment.

A banker receives payment of a crossed cheque for a customer within the meaning of this section not withstanding that he credits his customer’s account with the amount of the cheque before receiving payment thereof.

Section 138 – Penalties in Case of Dishonour of Certain Cheques:

Where any cheque drawn by a person on an account maintained by him with a banker for payment of any amount of money to another person from out of that account for the discharge, in whole or in part, of any debt or other liability, is returned by the bank unpaid, either because of the amount of money standing to the credit of that it exceeds the amount arranged to be paid from that account by an arrangement made with that bank, such person shall be deemed to have committed on offence and shall, without prejudice to any other provision of this act, be punished with imprisonment for a term which may extend to twice the amount of the cheque, or with both.

Provided that nothing contained in this section shall apply unless:-

i) The cheque has been presented to the bank within a period of 6/3 months from the date on which it is drawn or within the period of its validity, whichever is earlier

ii) The payee or holder in due course of the cheque, as the case may be, makes the demand for the payment of the said amount of money by giving a notice, in



writing, to the drawer of the cheque, within 30 days of the receipt of information by him from the bank regarding the return of the cheque as unpaid.

iii) The drawer of such cheques fails to make the payment of the said amount of money to the payee or as the case may be, to the holder in due course of cheque, within 15 days of the receipt of the said notice

Introduction:Axis Bank Ltd., the first bank to begin operations as new private banks in 1994 after the Government of India allowed new private banks to be established. Axis Bank was jointly promoted by the Administrator of the specified undertaking of the

Unit Trust of India (UTI-I) Life Insurance Corporation of India (LIC) General Insurance Corporation Ltd.

Also with associates viz. National Insurance Company Ltd., The New India Assurance Company, The Oriental Insurance Corporation and United Insurance Company Ltd.

Axis Bank is the third largest private sector bank in India. Axis Bank offers the entire spectrum of financial services to customer segments covering Large and Mid-Corporates, MSME, Agriculture and Retail Businesses. The Bank has a large footprint of 2402 domestic branches (including extension counters) and 12,922 ATMs spread across the country as on 31st March 2014 which is the largest ATM network in country among Private Sector Banks in India. The overseas operations of the Bank are spread over its seven international offices with branches at Singapore, Hong Kong, DIFC (Dubai International Financial Centre), Colombo and Shanghai and representative offices at Dubai and Abu Dhabi.

With a balance sheet size of 3,83,245/- Cr. as on 31st March 2014, Axis Bank has achieved₹ consistent growth and stable asset quality with a 5 year CAGR (2010-14) of 21% in Total Assets, 19% in Total Deposits, 23% in Total Advances and 28% in Net Profit.

The latest offerings of the bank along with Dollar variant is the Euro and Pound Sterling variants of the International Travel Currency Card (TCDC Card). The Travel Currency Card is a signature based pre-paid travel card which enables traveller’s global access to their money in local currency of the visiting country in a safe and convenient way. The Bank has



strengths in both retail and corporate banking and is committed to adopting the best industry practices internationally in order to achieve excellence

Evolution of AXIS Bank:UTI was established in 1964 by an Act of Parliament; neither did the Government of India own it nor contributes any capital. The RBI was asked to contribute one-half of its initial capital of Rs 5 cr., and given the mandate of running the UTI in the interest of the unit-holders. The State Bank of India and the Life Insurance Corporation contributed 15 per cent of the capital each, and the rest was contributed by scheduled commercial banks which were not nationalized then. This kind of structure for a unit trust is not found anywhere else in the world. Again, unlike other unit trusts and mutual funds, the UTI was not created to earn profits.

In the course of nearly four decades of its existence, it (the UTI) has succeeded phenomenally in achieving its objective and has the largest share anywhere in the world of the domestic mutual fund industry.'' The emergence of a "foreign expert" during the setting up of the UTI makes an interesting story. The announcement by the then Finance Minister that the Government of India was contemplating the establishment of a unit trust caught the eye of Mr George Woods, the then President of the World Bank. Mr Woods took a great deal of interest in the Indian financial system, as he was one of the principal architects of the ICICI, in which his bank, First Boston Corporation Bank, had a sizeable shareholding. Mr Woods offered, through Mr B.K. Nehru, who was India's Executive Director on the World Bank, the services of an expert.

The Centre jumped at the offer, and asked the RBI to hold up the finalization of the unit trust proposals till the expert visited India. The only point Mr Sullivan made was that the provision to limit the ownership of units to individuals might result in unnecessarily restricting the market for units. While making this point, he had in mind the practice in the US, where small pension funds are an important class of customers for the unit trusts. The Centre accepted the foreign expert's suggestion, and the necessary amendments were made in the draft Bill. Thus, began corporate investment in the UTI, which received a boost from the tax concession given by the government in the 1990-91 Budget. According to this concession, the dividends received by a company from investments in other companies, including the UTI, were completely exempt from corporate income tax, and provided the dividends declared by the investing company were higher than the dividends received.

The result was a phenomenal increase in corporate investment which accounted for 57 per cent of the total capital under US-64 scheme. Because of high liquidity the corporate sector used the UTI to park its liquid funds. This added to the volatility of the UTI funds. The corporate lobby which perhaps subtly opposed the establishment of the UTI in the public sector made use of it for its own benefits later. The Government-RBI power game started



with the finalization of the UTI charter itself. The RBI draft of the UTI charter stipulated that the Chairman will be nominated by it, and one more nominee would be on the Board of Trustees. While finalizing the draft Bill, the Centre changed this stipulation. The Chairman was to be nominated by the Government, albeit in consultation with RBI. Although the appointment was to be made in consultation with the Reserve Bank, the Government could appoint a person of its choice as Chairman even if the Bank did not approve of him.1

Board of Directors of AXIS Bank:

Name DesignationDr. Sanjiv Misra ChairmanShikha Sharma MD & CEOK.N.Prithviraj Director

V.R.Kaundinya DirectorPrasad Menon Director

Prof. Samir K Barua DirectorSom Mittal DirectorIreena Vittal DirectorRohit Bhagat Director

Usha Sangwan DirectorS Vishvanathan Director

V Srinivasan ED, Corporate BankingSanjeev Kumar Gupta ED, Corporate Centre & CFO

1 Profitability chart of AXIS Bank Ltd. over the past 5 years



2

Vision & Values:Vision 2015: To be the preferred financial solutions provider excelling in customer delivery through insight, empowered employees and smart use of technology

2 Year wise progress of past 20 years of AXIS


The Bank was incorporated UTI Bank ltd. on 3rd December, promoted by Unit Trust of India, Life Insurance Corporation of India, General Insurance Corporation of India and its four subsidiaries.

19921994 - Dr Manmohan Singh inaugrates the first branch in Ahmedabad1996 - Deposits cross Rs. 1000 crores 1997 - Launches Bank-on-Phone services

1994-1997UTI Bank and Citibank have come together to launch an international co-branded credit card under the MasterCard umbrella.1999

UTI Bank has launch of `iConnect', its Internet banking ProductUTI Bank has tied up with L&T Trade.com for providing customised online trading solution for brokers

20002001 - UTI Bank has recorded a 62 per cent rise in net profit for the quarter ended September 30, 2001, at Rs 30.95 crore2002 - Deposits cross Rs. 10,000 crores.2001-2002Allotment of 58923 equity shares of Rs 10 each under ESOP.First Indian bank to launch TCDC Cards20032004 - HSBC completes acquisition of 14.6% stake in UTI Bank for $67.6 m2005 - listed on ondon Stock Exchange2004-20052006 - UTI Bank becomes the first Indian Bank to successfully issue Foreign Currency Hybrid Capital in the International Market2007 - Rebrands itself from UTI Bank to AXIS Bank Ltd.2006-2007Shikha Sharma appointed as the MD & CEO Received final clearance from the Securities and Exchange Board of India (SEBI) to begin its mutual fund operations 20092010-Axis bank acquires 4 percent stake in Max New York Life2011-launched online trading platform AxisDirect2010-20112013 - Ranked as most trusteed bank in ET survey First bank to launch e-KYC2014-launches ‘Asha Home Loans’

MoU with China Development Bank2013-14

launches Ping Pay:- a multi-social payment app from Axis Bank that lets you send or ask for money and mobile recharge across social network2015


Values:

Customer CentricityEthicsTransparencyTeamworkOwnership

Business Description:AXIS Bank operates in vary segments such as Treasury Operations, Retail Banking, Corporate/Wholesale Banking and Other Banking Activities.

Retail banking: In the retail banking category, the bank offers Current Accounts and Saving Accounts product, card services, Internet banking, automated teller machines (ATM) services, depository, financial advisory services, and Non-resident Indian (NRI) services.

Corporate/Wholesale banking: The Bank offers to corporates and other organisations services including corporate relationship not included under retail banking, corporate advisory services, project appraisals, capital market related services and cash management services.

Investment banking: Bank’s Investment Banking business comprises activities related to Equity Capital Markets, Mergers and Acquisitions and Private Equity Advisory. The bank is a SEBI-registered Category I Merchant Banker and has been active in advising Indian companies in raising equity through IPOs, QIPs, and Rights issues etc. During the financial

year ended 31 March 2012, Axis Bank undertook 9 transactions including 5 IPOs and 2 Open Offers.

NRI services: Bank provides products and services for NRIs that includes CASA, facilitate investments in India. Axis bank is the first Indian Bank having TCDC cards in 11 currencies.

Micro-Finance: Axis Bank SME business is segmented in three groups: Small Enterprises, Medium Enterprises and Supply Chain Finance. Bank offers lending to individuals/small businesses subject to the orientation. Under the Small Business Group a subgroup for financing micro enterprises is also set up.



Agri-Finance: Banks provide various accounts, loans on various products, etc. to farmers. Total 759 branches of the bank provides banking services, including agricultural loans, to the farmers

i. Krishi Saving Accounts: Axis Bank offers a unique savings account which is easy to operate and allows to transact immediately. This product has been specially designed keeping in mind the unique requirements of a farmer and others employed in the agricultural sector.

The account is opened with the minimum requirement of the Rs. 2500/-

ii. Kisan Power: Farmer who has his own farm, a tenant cultivator or sharing in the crop, is eligible for these loans. Minimum landholding should be two acres of cultivable land. Loan amount ranges from Rs. 25,000 – Rs. 50,00,000/-.

iii. Tractor Loans: AXIS Bank provides special hassle-free loan on purchase of new tractors, with special interest rates.

iv. Godowns Loan: Bank gives loans for the construction, renovation or expansion of godowns too.

v. Loan for Corporate Farming: There are some farmers who enter into the contract or tie-up with the corporates for production of agriculture products. AXIS bank provides the finance for such type of agreement too for the purpose of huge requirement of the agri products.

AXIS Group:AXIS Bank has set-up fully owned 8 subsidiaries which are:

Axis Capital Ltd. Axis Finance Ltd.Axis Mutual Fund Trustee Ltd. Axis Asset Management Company Ltd.

Axis Private Equity Ltd. Axis Trustee Services Ltd. Axis Bank UK Ltd. Axis Securities Ltd.



Products of AXIS Bank:AXIS Bank has several products in Retail Banking which are categorized as

AccountsDepositsLoansCardseDGE Loyalty RewardsForexInvestmentInsurance

All the products have been sub-categorized as per the benefits of the products which we will are as follows:

1. Accounts:In this category we have different category such as Savings Account, Current Accounts, Salary Accounts, etc. which are sub-categorized.

i. Savings Account:

Basic Savings Account: Features:

This is the basic account which banks provide where one can save and transact easily.Account can be open with the Zero Balance facility.Account comes with a free RuPay Debit Card and a withdrawal facility upto 40,000/-₹Only 4 free cash withdrawal transaction can be carried out.

Benefits:

Zero balance facility, Internet, mobile and phone banking

This account is currently not offered in AXIS Bank.

EasyAccess Savings Account:

Features: This is the common saving account we at AXIS Bank offers to the customer. This can be open through a deposit of minimum Rs. 10,000/- and AMB of Rs 10,000/- has to be maintained.



Quarterly 4% interest is paid by bank to customer on their daily balances.

Prime Savings Account:

Features:

This is a upgraded version of EasyAccess Savings Account, provides some extra benefits with more transactions and withdrawal limits. It has a minimum opening deposit of ₹25,000/-

Benefits:

A premium Titanic Prime Debit Card will be given at no cost which has a withdrawal limit of 50,000/- at ATMs and ₹shopping transaction of 1,00,000/- daily₹

First 5 transactions at ATMs are free

Prime Plus Savings Account:

Features: This is a prime plus account with high transaction limit, with entertainment and reward benefit. It has a minimum opening deposit of Rs 1,00,000/-.

Benefits:

This includes high transaction limit of 20 /month at any AXIS Bank.

This give 10% cash back on online movie ticket bookings as part of entertainment benefits. A Premium Plus Debit Card will be issued at no cost which comes with higher withdrawals of ₹50,000/- and a purchase transaction limit of 1,00,000/- daily₹

One will have a chance to avail a higher personal accident cover of upto 3,00,000/-, if you swipe your card once in ₹every six months.

First 10 transactions at ATMs are free.



Women’s Savings Account:

Features: This account is perfectly designed specially for women’s who are financially independent. This account allows them to save, transact money easily. It has a low minimum account deposits of 10,000/- and has first 5 free transactions at AXIS Bank’s ₹ATMs.

Benefit: It will issue a Visa Classic Debit Card at a nominal fee of 150₹ for issuance and 150 annually thereafter which gives high ₹withdrawal limits of 40,000/- at ATMs and shopping ₹transactions of 100,000/- daily.₹

Senior Privilege Savings Account:

Features:

This account is specially for those citizen who are having the minimum age of 57 years Just by providing identity of oneself as a senior, one will be moved up to the queue.

Benefit: Special discount of 20-60% will be avail on health check-ups at over 600 diagnostic centres.

One will have a chance to avail a higher personal accident cover of upto 2,00,000/-, if you swipe your card once in ₹every six months.

YOU th Account:

Features:

This account is specially for youth who are of the age between 18-25 years This account comes with the superloaded debit cards that gives one amazing discounts and offers And a supercool mobile app that helps the account-holder to manage their money.

Benefits: YOUth Debit Card comes up with 5 free transactions at AXIS Banks ATM. One can shop upto 1,00,000/- at any merchant ₹outlet using this card.



Trust/NGO Savings Account:

Axis Bank's Trust Account is an effort to offer thoughtful banking for people who spend their lives thinking of others It is a complete banking solution for Trusts, Associations, Societies, Government Bodies, Section 25 companies and NGOs, so that the organisations can devote all of their time to their noble motivations.

Features: Trust has to maintain Annual Monthly Balance (AMB) of ₹25,000/-Free banking across the country and over all ATMs.Free Demand Drafts or Pay orders or collection of cheques at outstation locations

Future Stars Savings Account:

Features:

This account is specially for children who are minor i.e. below 18 years of age. This account is helpful to start a savings for the child. Chequebook, ATM card will be of guardians name if child is below 10 years

Account will be open with a minimum deposit of 2500/-. ₹First 5 transaction is free at AXIS Bank ATMs.

Benefits: VISA Classic Debit Card will be issued at an issuance cost of Rs 150/- were a minor has a daily withdrawal limit of 1500/-₹

No need to maintain Average Monthly Balance if a Fixed Deposit (for 6 months) of 25,000/- or a Recurring Deposit of ₹

2,000/- (for a year) is maintained.₹

Pension Savings Account:

Features: The Pension Savings account is specifically, designed for Pensioner's (Existing & Prospective) of Central Govt. Civil Ministries/ Departments & Defence Ministry keeping in mind the fact that a Pensioner's banking requirements are wholly different and require special consideration.Free SMS Alerts, Monthly e-statements/Passbook and Internet Banking Facility



Track your account transactions using monthly e-statements or passbook

Benefits: No average quarterly balance requirementBank Anywhere – Your account can be operated at any branch in the countryHigh withdrawal limits of 40,000/- at ATMs and shopping ₹transactions of 100,000/- daily₹

AXIS Priority Savings Account:

This account gives the enjoyment of Preferential treatment when one comes to the branch or during the Phone Banking Centre.

Features: One has to maintain an Annual Monthly Balance (AMB) of Rs 2,00,000/-. One will get access to dedicated relationship management who help to plan an investment.Customer can withdraw as high as 1,00,000/- from ATM in a₹ single day.Unlimited ATM transactions all over India.

Benefit: Customer will be issued Priority Platinum Debit Card with no issuance fees. Customer can do as much transaction as he can do without any charges.

Customer can avail a minimum of 15% discount at over 1600 restaurants all over India and get 25% cashback on online movie bookings.

Insurance Agent Account:

Features: The Insurance Agents Savings Account is the first of its kind, an account specially crafted for professionals functioning as Insurance Agents.Concessional minimum opening deposit of 5,000 in metros₹First 5 free transactions at Axis Bank ATMs

Benefits: Low Average Monthly Balance requirement of 5,000/- in ₹metros.



High withdrawal limits of 40,000/- at ATMs and shopping ₹transactions of 100,000/- daily₹

ii. Current Accounts:

Normal Current Account:

Features:

This is the basic Current account of AXIS Bank which will give optimum value of money.

An Average Minimum Balance of 10,000/- has to be ₹maintained.

Upto 2,00,000/- can be deposited in home branch and ₹ ₹1,00,000/- during Inter-branch deposits in a month.

Free services such as cheque collection and payment at AXIS Bank locations upto 12,00,000/- per month.₹

Benefits: ATM cum International Debit Card will be issued.Daily free e-statement through e-mail.

Local Current Account:

Features: All the features of Normal Current Account is applicable here.One additional facility is that this account gives privilege to enjoy banking without any balance maintenance.

Benefits: Customer has an opportunity of using 75 free transactions during a month for all services combined.If customer’s ABM in a quarter exceeds 50,000/- he get a ₹15% rebate on annual charges every quarter.

Business Advantage Account:

Features:

In this account customer has to maintain an ABM of ₹25,000/-.



S/he has a privilege to deposit upto 3,00,000/- at home ₹branch and upto 1,00,000/- at Inter Branch per month.₹

Benefits: Customer will get 50 cheques per month without any cost.Free Funds Transfer from Axis Bank to Axis Bank account.Free local cheque collection and payments across Axis Bank locations all over the country.Free upto 50 transactions (Cash / Clearing / Transfer) per month.

Business Select Current Account:

Features: It is the first of its kind current account which has both flexibility and fungibility of free limits as its core feature, but atleast ABM should be 50,000/-.₹Customer can enjoy free cash deposit upto 12 times the monthly average balance maintained in the same cycle with minimum free limit of 6,00,000/- per month.₹

Benefits:

Customer will get 100 cheques per month without any cost.

Free local cheque collection and payments across Axis Bank locations all over the country.

Free upto 100 transactions (Cash / Clearing / Transfer) per month.

Customer can withdraw atmost 6,00,000/- from other than ₹home branch per month.

Business Privilege Account:

Features: This type of account is specially for those who can maintain ABM of 5,00,000/- per month.₹This account will provide greater facilities if one opt for this.

S/he has a privilege to deposit upto 60,00,000/- per month at ₹home branch and upto 12,50,000/- per day at non-home ₹branch for instant credit.



Benefits:

Customer will get 500 cheques per month without any cost.


Free RTGS and NEFT facility.


Free cash withdrawal of upto 25,00,000/- per month at any ₹AXIS Bank branch other than home branch.

Channel One Account:

Features: This is an high end current account provided by bank with an ABM of Rs 10,00,000/-.One can have privilege of depositing upto 1.2 Cr. in a month ₹at any AXIS Bank branch.

Benefits:

Customer will get 1000cheques per month without any cost.


Free RTGS and NEFT facility.


Free cash withdrawal of upto 60,00,000/- per month at any ₹AXIS Bank branch other than home branch.

Business Global Current Account:

A current account for Exporters / Importers with dynamic features that satisfies their banking needs for both domestic & foreign transaction

Features:



To facilitate customer’s domestic transactions, Business Global brings you a current account product with no minimum balance commitment.Available off the shelf at your nearest Axis Bank Branch and select FFMCs (Full Fledged Moneychangers), the Travel Currency Card is a secure, convenient and hassle free way to carry money and make payments when in foreign shores.

Benefits: Specialized forex services at concessional rates such as: Concession against Turnover, Export / Import Bill Collection, Foreign Inward / Outward Remittance, Foreign DD Issue, Foreign Cheque CollectionDD/PO is free for accounts maintaining Quarterly Average Balance more than 1,00,000/-.₹

Capital Market Current Account:

Features: Irrespective of variant customer choose one can pay / deposit cheques at any of AXIS Bank branches / outlets absolutely free of cost and will get the credit as if these transactions were done at your home branch

Benefits: Fund based and Non-fund based credit facilities available subject to satisfying the Bank's lending norms.

Instant Funds Transfer across all locations absolutely free.

Tailor-Made Current Account:

Axis Bank Tailor - Made Current Account is an account for those who prefer things based on their business requirements and style. Keeping this in mind ‘Tailor - Made Current Account’ is an account that gives freedom to customize the current account relevant to your specific business needs.

Features: The average balance has to be maintained.Decide the average balance to be maintained in your account.Choose the number of free transactions per month.Decide your free monthly cash deposits and withdrawal limits.Design Cash Management Services based on your requirements



Choose the number of free cheque leaves. Benefits:

Business Debit card that can be customize to include your company name, company logo, brand identity and even a taglineInternet BankingPhone BankingSMS alerts

iii. Loan:

Home Loan:

Axis Bank offers affordable and flexible housing loans that can turn your dream of owning a home into reality.

Features: Axis bank offers attractive interest rates that makes customers housing loan affordableCustomer has an option to choose between the fixed and floating rates as per the market scenario.Customer has an facility to transfer their current home loan of other banks to the AXIS Bank without any hassles.Any query related to home loan or need some help. AXIS Bank Executive will be at your doorstep.

There are no Pre-Payment charges if customer wants to wave off the loan before maturity.

Eligibility Criteria: A) - Salaried IndividualsIndividuals in permanent service in the Government or reputed companies.Applicants should be above 24 years of age at the time of loan commencement and up to the age of 60 or superannuation, whichever is earlier at the time of loan maturity.

B) - ProfessionalsProfessionals (i.e., doctors, engineers, dentists, architects, chartered accountants, cost accountants, company secretary, management consultants only) can apply.



Applicants above 24 years of age at the time of loan commencement and up to 65 years or less at the time of loan maturity.

C) - Self Employed IndividualsAny individual filing income tax returns can apply.Applicants should be above 24 years of age at the time of loan commencement and up to 65 years or less at the time of loan maturity.

Personal Loan:

Be it a dream vacation, child's education, home renovation or wedding in your family, you can instantly fulfil your aspirations with Axis Bank Personal Loans.

Features: Loan is available to salaried individuals only with the tenure of 12 to 60 months.Individual can apply for Loan available from 50,000/- to ₹15,00,000/-Loans taken at higher rate from other banks can be transferred to AXIS Bank with Balance Transfer Facility.

Eligibility Criteria: Salaried Doctors, employees of select MNCs, Public and Private

limited companies, Government sector employees including Public Sector Undertakings and Central and Local bodies:

Minimum age of applicant: 21 yearsMaximum age of applicant at loan maturity: 60 yearsMinimum Net Monthly Income: 15,000/-.₹Maximum loan available: 15 lacs.₹

Loan against Property:

Features; Apply for Axis Bank's Loan Against Property. Bank gives loan against property be it commercial or residential or for purchase of new commercial property.Attractive interest rates, Doorstep Services.



A take-over of customer’s existing loan with refinancing is also possible with Loan Against Property.

Eligibility Criteria: -A) Salaried Individuals:Any individual who is in permanent service in government or a reputed company.The applicant in all the cases should be above 24 years of age at the time of loan commencement and up to the age of superannuation

-B) Professionals:Professionals (i.e., doctors, engineers, dentists, architects, chartered accountants, cost accountants, company secretary, and management consultants only) can apply.The applicant should be above 24 years of age at the time of loan commencement and up to 65 years or less at the time of loan maturity.

-C) Self-employed Individuals:Any individual filing Income Tax returns can apply.The applicant in all the cases should be above 24 years of age at the time of loan commencement and up to 65 years or less at the time of loan maturity.

-D) Lease Rental Discounting (LRD):All resident individuals can apply. The lessee must however be a company as defined under the Companies Act, 1956. Funding will be done only against ready commercial property. The same will be restricted to 85% of the net

present value of the future rentals or 50% of the value of property, whichever is lower.

Gold Loan:

Features: AXIS Bank gives loan against the Gold Ornaments with the safety of the gold at the bank’s vaults.Loan will be sanctioned and Disbursement of loan on the same day.

Interest Rates and Charges:



Bank gives loan on gold at 13%-16.5% of rate of interest.Processing charge will be upto 1%.Valuation charges will be calculated upto 0.4% or ₹1200/- whichever is more.And there will be penalty of 2% if there is any payment overdue.

Education Loan:

Axis Bank's Education Loan aims to provide the much needed financial support to deserving students for pursuing higher professional or technical education in India and abroad. The education loan would be provided to those students who have obtained admission to career-oriented courses e.g. medicine, engineering, management etc., either at the graduate or post-graduate level.

Within 15 working days from the date of receipt of application with all the valid documents, decision will be conveyed by the bank.

The quantum of finance under the scheme is capped at 10.00 ₹lacs for studies in India and 20.00 lacs for studies in abroad, which would cover tuition ₹fees, hostel charges (if any), cost of books, etc. The minimum amount of education loan would be 50,000/-.₹

Role of the Guardian:

The parent(s) or guardian of the student would be treated as a co-applicant of the student loan. His or her role would be, necessarily, like the primary debtor.

Cash Credit:

AXIS Bank offers Cash Credit facilities to meet day-to-day working capital needs. Cash Credit is provided against the primary security of stock, debtors, other current assets, etc., and/or collateral security of movable fixed assets, immovable property, personal or corporate guarantee, etc. Interest is charged not on the sanctioned amount but on the utilized amount.

iv. Investments:



Mutual funds:

Features:

A Mutual Fund is a trust that pools the savings of a number of investors who share a common financial goal. The money thus collected is then invested in capital market instruments such as shares, debentures and other securities. The income earned through these investments and the capital appreciation realized are shared by its unit holders in proportion to the number of units owned by them.

Mutual fund schemes are offered by the Asset Management companies (AMC) to customers through a distributor. The Bank acts as a distributor of Mutual Fund products for the AMC to the customers. A customer wanting to invest in a mutual fund scheme can avail of the Systematic Investment Plan option through Axis Bank.

AXIS HYBRID Fund (Series 23):

This is 1275 days close ended debt schemes. In this scheme AXIS invest portion of investor’s money in Debt Instruments (83%) and remaining in equity and equity related instruments (17%) to participate in potential upside from equity markets. It is lock-in period scheme where once the fund is invested, returned will be on maturity (after 3.5 years).

It is one of the better alternate of Fixed Deposits where investors get atleast 13-14% of guaranteed return.

3 Reasons to Invest:

• Offers an attractive route to take equity allocation for conservative investors.

• For long term growth, equity has potential of higher appreciation as compared to fixed deposits.

• Blends equity participation with the relative stability of debt.

Systematic Investment Plans (SIP):

SIP refers to the practice of investing a constant amount regularly, generally every month. It helps you to invest regularly in small instalments and thereby build wealth over a period of time. SIP ensures that the investors' acquisition costs are approximated to the average NAV, as when the market will go up more units will be bought and when the markets come down fewer units will be bought.



To invest in SIP there is a simple steps to follow:

Step 1: Select a mutual fund scheme of your choice with the payment option as SIP

Step 2: Decide the Investment periodicity (frequency of making payments). You can choose to make your investment on a monthly or quarterly basis.

Step 3: Select the investment amount. For instance, if you choose to invest Rs 12,000 every year with a monthly SIP Option. Therefore you would be investing Rs 1,000 every month in your fund. By the end of a year, you would have invested Rs 12,000 in your fund.

Step 4: The amount gets converted into units, depending on the Net Asset Value (NAV). NAV is the market value per unit of a fund. If the NAV in the first month is Rs 20, you will get 50 units. Similarly in the next month if the NAV is Rs 25, you will get 40 units. The following month if the NAV is Rs 18, then you will get 55.56 units. So, after three months, you would have 145.56 units. On an average, you would have paid around Rs 21 per unit.

Step 5: The units get accumulated over a period of time. You can stay invested till the time you wish and redeem your units when you wish to exit from the scheme. The units are redeemed at the market value (NAV) and you get back your money with returns.

Demat Account:

Axis Bank is a registered member (Depository Participant) of National Securities Depository Limited (NSDL). In this system, physical security holdings are converted into electronic (or in other words, dematerialized) holdings. Axis Bank has been enrolled as a Depository Participant by the NSDL - India's first depository. Customer can avail of all the depository-related services by just opening an account with NSDL through Axis Bank.

The facility provided by AXIS Bank in Demat account are as follows:

Transfer of shares and settlements Receipt of Corporate Benefits Dematerialisation of shares Rematerilialisation

General Insurance:

Features:



AXIS Bank is the Certified Corporate Agent for TATA AIG Gen. insurance Co. Ltd. The general insurance product suite offered through this partnership helps you protect against losses due to unforeseen calamities.

MediPrime:

Tata AIG MediPrime is a transparent health insurance policy without any sub-limits on health expenses, so both you and your savings remain healthy.

Travel Insurance:

Travel in peace anywhere in the world. Travel with Tata AIG’s Travel Guard. While you have meticulously planned every aspect of a trip abroad, there are still chances of things going awry due to events beyond your control. You could fall ill, lose your passport, have a flight delay and so on. For a complete bailout from such unnerving experiences in a foreign location you need Tata AIG Travel Guard.

Max Life Guaranteed Lifetime Income Plan:

AXIS Bank in tie-up with MAX Life Insurance presents Max Life Guaranteed Lifetime Income Plan, the smart way to retire. It is a non-linked traditional annuity plan that guarantees a regular stream of income after your retirement. There are four reasons to buy this plan:

i. Guaranteed Income to cater to your needs as long as you live.ii. Option to receive life-long payments for as long as you or your

partner are alive – You have the option to choose a single life or a joint life annuity.

iii. Option to receive return of purchase price on death – After the death of the annuitant(s), the purchase price of the policy is returned to the nominee.

iv. Option to choose the mode of pay-out – You may choose to receive the pay-out on a yearly, half-yearly, quarterly or monthly basis, as per your needs and requirement.

Max Life Maxis Super:



Max Life Maxis Super is a unit-linked life insurance plan that helps in planning the finances better by balancing the equity and debt exposure automatically, so that the future years are the best years of the life.

Features: i. Wealth Creation with safety of funds:

Invest as per your risk appetite. Choose between six funds with the option to switch or redirect savings between funds, free of charge

Unique feature of “Dynamic Fund Allocation” which automatically rebalances your portfolio depending upon years to maturity

ii. Shorter Premium Payment Terms: Option to choose Premium Payment Term from 7 years or 10 years as per your need

iii. Flexibility of Protection Cover: Option to choose insurance cover of 11/15/20 times the annual premium depending upon your age



Benefits: Death Benefit: In case of Death of the Life Insured anytime during the term of the Policy, Sum Assured plus the Fund Value as on the date of death, subject to a minimum of 105% of all premiums paid till the date of death, shall be payable.

Maturity Benefit: On maturity, you will be eligible to receive an amount, provided settlement option has not been exercised, equal to the Fund Value, where the Fund Value will be calculated as:

Fund Value = Summation of Units accumulated in Fund(s) X NAV of respective Fund(s) as on the Maturity Date

Account Opening:A customer’s formal relation with bank starts with Account Opening. In AXIS Bank

the accounts of the customers are usually not opened at branches. The application (known as Account Opening Forms aka AOF) are received, scrutinized and then forwarded to Central Processing unit (the CPU Department of the AXIS processes all the information sent by branches and stores it) and where they are eventually opened.

Guidelines for opening of Savings Account:

1. Account of Resident Individual:For accounts of individuals, a proof of identity and address as mentioned in Table___ is required along with a recent passport size photograph not older than 3 months for saving account. For joint holder the above documents are required for both, the applicant as well as joint applicant.

For Foreign nationals on employment or setting up of business, they are eligible to open normal rupee account wit following documents:

Passport with valid visa Letter from employer/ contract letter/ permission from RBI in case of

business Address proof as per Table ___.

2. Salary Accounts:



This are the accounts where an employer enters into an understanding with the bank for opening accounts of the employees for their salary to be credited in respective accounts. The KYC requirement to open these accounts is the same as in the case of normal resident individual account.

3. Account of Institutions / Organisations:Account of non-individuals is opened under scheme code SBTRS. For the convenience of business they have been classified into 4 constitutions codes of 9-A, 9-B, 9-C, 9-D in Finacle. It is possible that for a “Trust”, “Society”, or “Company” account is opened, depending upon the business consideration.

Documents for Companies:

Proof of Identity (All the documents are to be obtained)

Certified ‘True and Updated’ copy of Articles of Association, Memorandum of Association

Certified ‘True and Updated’ copy of Certificate of Incorporation.

Specimen signatures and photographs of all authorized signatories duly certified.

License issued under Section 25 of companies Act. Declaration for availing of at par cheque facility with no limit on clearing

payments at centres other than the base branch.

4. Account of Society:The entities which may be known by names like Trust, Foundation, Clubs, Association, Society, NGO etc. but are registered as Societies and registered under the Societies Registration Act, 1860 or any other corresponding law in force in State or a Union Territory, the following documents can be collected:

AOF to be filled and signed by the Authorized Signatories as per resolution

Copy of Memorandum and Articles of Association Certified true copy of registration certificate The id and address proof of the entire authorized signatory to be taken.

Proof of Address of the Society:

Copy of Certificate issued by Registrar of Co-operative Societies Bank certificate from existing banker Bank statement of accounts with last 30 days transaction Registration certificate having address issued by the Central/State or

any other local government authority



Account Details:In AXIS Bank, when account is opened, the account holder becomes a client of the

bank. A client ID Number is allotted to him/her. A client can open many account at different branches. Each and every account is identified by an account number.

Customer ID is a unique number allotted to each customer. Now, it’s possible that a single customer has two or more accounts. For example, say a customer by name Mr. Mayur has his salary account with our bank. He may want to open another account jointly with his wife. Each account is identified by a unique Account No. and all the accounts of Mr. Mayur are linked to a single Customer ID. Let’s look more closely at the account no.

Bank Code 9 15 01 123456789 5

A/c opening Yr.

Account Type

Account No.

Check Digit

Know Your Customer

Who is a Customer?

RBI defines customer as:

One who maintains an account with the bank, orAny person or entity connected with a financial transaction like a remittanceThe remitter or purchaser of an outward remittance



The beneficiary of an onward remittance

Necessary prior checks should be carried out for checking of a prospective customer’s identity against persons of known criminal background or banned entities. Since this can only be ensured fully by installing suitable software, it has been decided to introduce these prior checks after the software has been identified and installed.

Know Your Customer (KYC)

In order to prevent misuse of banking channel from financial frauds, money laundering, etc., RBI has a part of their initiatives to prevent suspicious activities, advised bank to follow certain procedure which are known as KYC guidelines.

A comprehensive list of documents qualifying to be attached as id proof and address proof is mentioned in table below:

Table A(Proof of Identity)

Table B(Proof of Address)

Pan Card PassportPassport Telephone Bill/ Electricity Bill. (Bill date

should not be older than 3 months)Election card Ration CardPhoto Id issued by Government/ Defence services/Public Sector Undertakings

Letter from a recognized public authority or public servant verifying the address of the customer.

Driving License Income tax/Wealth tax assessment orderAadhar Card Domicile certificate with communication

address and photographFor married woman, proof of identity with her maiden name, if supported with a verified true copy of marriage certificate, will be accepted as valid identity proof.

Address proof in the name of father/mother/spouse/blood relative of the applicant

KYC essentially involves identifying the customer and verifying his/her identity by using reliable, independent source documents, data or information. Special attention will have to be given to due diligence for accounts of trusts, companies and clients’ accounts opened by professional intermediaries. In the case of trusts, branches should take reasonable precautions to verify the identity of the trustees and the settlers of the trust. Beneficiaries should also be identifies when they are defined. For companies, branches need to be vigilant against business entities being used by individuals as a ‘front’ for maintaining accounts opened by a professional intermediary is on behalf of a single client, that client must be identified as per our procedure.



These guidelines are so important, that even an existing account may have to be closed due to the Bank’s inability to verify the customer’s identity, although any Branch Heads will have the authority to take such decision. The aim of these guidelines is to:

Determine and document the true identity and basic background of all customers.

Obtain and document any additional customer information, commensurate with assessment of the money laundering risk posed by customer’s expected use of Bank’s products and services.

Minimise frauds Avoid opening of accounts with fictitious names and addresses Check misappropriations Prevent money laundering Obtain protection under Section 131 of Negotiable Instrument Act., and to

weed out undesirable customers.

Account Profiling:

RBI has stipulated categorization into low, medium and high-risk categories. It has been decided to do so based on anticipated transactions volume in each account.

This would help the Bank to classify the accounts into different risk categories for the purpose of activity/transaction monitoring. The cut limits could be specified depending upon the risk profile. The profile would need to be updated from time to time. As money laundering is a process essentially involving a series of transaction, it has been considered appropriate to compile the profile in the case of only Savings Bank and Current Accounts rather than Term Deposits. It will also not be necessary to extend the procedure to asset accounts.

Account Profile:

Additional data which is collected in the AOF such as annual income, age, occupation, etc., in case of individuals and details of the type and extent of the business in case of current account is used to develop what is known as an “Account Profile”. Such a profile gives us an idea of the type of transactions/activities expected to pass through the account, which would eventually help us identify any suspicious transaction not commensurate with the customer profile. Although this information is completely voluntary, it is invaluable for monitoring the activities in the accounts, as also risk perception from the money laundering point of view. The risk factor would determine the nature and extent of monitoring required.

Transaction Profile:



Just as I try to draw up an account profile, constant monitoring of the accounts help us draw up a Transaction Profile. This is again done so that we are able to spot quickly if there is any unusual activity in the account.

Does the customer deal in large cash transaction? If so, what is the nature of such transactions?

Do we have any other agreement with the client for fund transfers? If so, what are the arrangements?

Details of loan facilities enjoyed by the customer from the bank Do we have regular contact with the customer? If so, by what means e.g.

personal visits, telephone calls, e-mail etc.? Who are the persons generally contacted by is?

Monitoring of Transactions:

The extent of monitoring should depend on the risk sensitivity of the account. A list of clearing credit transactions for Rs. 50,000/- and above in newly opened accounts is being sent by Data centre on a daily basis. Branches should scrutinize the transactions.

Any transactions exceeding the threshold limit of 10 lacs should be monitored to see if it conforms to the profile. If not, details may be sought to establish the nature of transaction. Apart from such transactions which cross the threshold limit, certain other activities may be give rise to suspicion of money laundering. However, in needs to be ensured that, in our zeal to monitor such activities, genuine and bona fide transactions of customers are not delayed and customers inconvenienced.

Apart from following the procedures relating to remittances as laid down in the FEMA guidelines, the branches while dealing with overseas fund transfer, both inwards and outwards, will have to be vigilant in ascertaining, wherever possible, the purpose of remittances, particulars of the remitter as well as the beneficiaries, and link such remittances to the customer profile on record. It may be necessary to scrutinise transactions more closely if the pattern of remittances arouses suspicion. However, care will have to be taken not to delay crediting the proceeds of the remittances solely for lack of particulars of the above nature. Here again, the matter should be handled with appropriate tact.



Deposit Accounts - General Guidelines:

Current and Savings Bank Accounts (CASA):

Deposit accounts can be broadly classified as Demand Deposits and Term/Time Deposits. CASA are Demand Deposits. While no interest is paid in Current Accounts, the accounts can be opened by different types of Depositors like individuals, corporates, Association of Persons, Body of Individuals, Firms, Sole Proprietorship, etc., mainly for business purpose.

Saving accounts is to be allowed only for savings purpose and not for business purpose. RBI has now deregulated the interest rate in Saving Bank Accounts and AXIS bank is providing 4% interest. Interest can be paid on daily products at quarterly or longer rates.

As per the RBI guidelines, apart from the individuals, banks can open SB A/c in the name of the following organisations /agencies:

Primary Co-operative Credit Society which is being financed by the bankKhadi & Village Industries Board.Agriculture Produce industries BoardSocieties registered under Societies Registration Act, 1860 or any other corresponding low in force in State or a Union TerritoryGovernment Departments/ Bodies/ Agencies in respect of grants/ subsidies released for implementation of various programmes/ schemes sponsored by Central Government subject to production of an authorization from the respective Govt. Department to open saving bank account.Development of Women and Children in Rural Areas.

RBI has directed that banks may open SB Accounts in the name of State Governments/ Government Departments/ Bodies/ Agencies in respect of grants/ subsidies released for implementation of various programmes/ schemes sponsored by Central Government, certifying that the concerned govt. dept. or body has been permitted to open SB Account.

Domestic Term Deposits:



Interest Rates:

It is de-regulated by the RBI. Banks can offer Fixed or Floating rates. Banks have been given discretion to offer differential rates of interest on domestic term deposits of the same maturity of Rs. 15 lakhs and above i.e., depending upon size of the deposits of Rs. 15 lakhs and above. E.g.: For a deposit of Rs 2 lakhs a bank can offer higher rate than that of a Rs 10 lakhs deposit even for the same tenure.

Minimum period:

In AXIS bank, the minimum period is 7 days of all deposits.

Maximum Period:

10 years is maximum period of all deposits. But in case of minor period can be extended if it is covered under the minor interest rates.

Rate of Interests and Margin for Advanced against Term Deposits:

The minimum margin to be maintained on such advances is 15% and the rate of interest over the deposit rates is 2% for deposits upto Rs 1 crore, 3% for deposits above Rs 1Cr, and 4% for third party loans irrespective of deposit amount.

Deposits Schemes for Senior Citizens (60 years and above):

Banks are permitted to formulate Fixed Deposit Schemes specially meant for Senior Citizens offering higher rates as compared to normal deposits of any size.

Discretion to disallow premature withdrawal:

Freedom given to banks in respect of large deposits held by entities other than individuals or HUF.

Penalty for premature Payment:

Penalty on pre-mature payment has also been de-regulated. Banks can even pay without penalty.

Renewal of Overdue Deposits:

Renewal as of date is permitted where overdue is upto 14 days only.



Payment of Interest in Accounts of Deceased Customers:

Where the depositors has expired before the date of maturity of the deposit and the amount is claimed after the date of maturity. The bank should pay interest at contracted rate till the date of maturity. The bank should pay simple interest at the applicable rate, operative on the date of maturity for the period for which the deposit remained with the bank beyond the date of maturity. In case of death of the depositor after the date of maturity of the deposit, however, the bank should pay interest @ SB rate operative on the date of maturity from the date of maturity till the date of payment.

Payment of Interest in Term Deposit maturing on holidays:

As per IBA – Code for Banking Practice, if the noted due date of a term deposit falls on holiday, Sunday, non-business working day, interest be paid for such intervening day at the originally contracted date till the succeeding working day.

Settlement of Claims in Deceased Depositors Accounts:

As per RBI directives, while settling the claim of deceased depositors where nomination is not registered, the requirement of insisting on succession certificate from the legal heirs has been totally withdrawn irrespective of the amount involved. However, banks should adopt such safeguards in settling claims, as they consider appropriate including taking of indemnity bond. Succession certificate can be insisted upon only in case of failure to comply with such safeguards by the claimants.

With a view of harmonizing present regulations on interest rates and interest calculation methodologies, RBI has announced the following changes in the guidelines:

All aspects concerning renewal of overdue deposits including payment of interest for renewal within and after 14 days, margin on advance against term deposit and interest payable on maturity proceeds of deposit account of deceased depositor and method of calculation of interest on payment of interest on fixed deposit have been deregulated and left to the discretion of individual banks subject to their boards laying down a transparent policy in this regard.

Interest Application on Premature Withdrawals and Part Withdrawals of Term Deposits:

These guidelines cover premature withdrawals and part withdrawals and are not applicable to Inter-bank deposits.

Premature withdrawal (Full amount):



Interest paid is always at the rate corresponding to the period for which the deposit has run.

Particulars for Domestic Deposits Penal Interest Rates(1) For deposits of less than Rs 15 lacs

For deposits that have run for less than 7 days

No interest to be paid

For deposits that have run for atleast 7 days No premature penalty to be charged

(2) For deposits of Rs 15 lacs-5 CroresFor deposits that have run for less than 7 days



(3) For deposits of Rs 5 Crore and above

For deposits that have run for less than 7 days



Particulars for Non-Resident Rupee Deposits

Penal Interest Rates

(1) For Deposits of less than Rs 5 Crore

For deposits that have run for less than one year


For deposits that have run for atleast one year

No premature penalty to be charged

(2) For Deposits of Rs 5 Crore and above

For deposits that have run for less than one year


For deposits that have run for atleast one year

Premature penalty of 1% to be charged

Part Withdrawals of Term Deposits:

All part withdrawals in Finacle for all products are governed by the same rules. Applicability of penal rate on the part withdrawn amount is governed by the rule of threshold limits set for each product. The logic of part withdrawal is detailed below:

The original deposit amount gets reset to a new value, which is equal to original deposit less part withdrawn amount.



The rate of interest applicable on the residual deposit also gets reset based on the residual principalThe tenor of the deposit remains unchangedInterest paid on the part withdrawn amount is equal to the rate applicable on the original deposit for the period run and not on the amount of part withdrawal.Penalty is applied if the original deposit is over the threshold limit set for the scheme

Insurance Coverage on Deposits:

All AXIS Bank’s deposits are covered under the insurance schemes offered by Deposit Insurance and Credit Guarantee Corporation of India (DICGC) subject to certain limits and conditions. The DICGC insures all deposits such as savings, fixed, current, recurring, etc. deposits except the following types of deposits:

Deposits of Foreign GovernmentsDeposits of Central/State GovernmentsInter-bank deposits

Deposits of the State Land Developments Banks with the State Co-operative bankAny amount due on account of and deposit received outside IndiaAny amount which has been specifically exempted by the corporation with the prior approval of RBI

Each depositor in a bank is insured up to a maximum of Rs.1,00,000/- for both principal and interest amount held by him in the same right and some capacity.

The deposits kept in different branches of a bank are aggregated for the purpose of insurance cover and a maximum amount upto Rs 1,00,000/- is paid. For example, if an individual had an account with a principal amount Rs 95,000/- plus accrued interest of Rs 4,000/-, the total amount insured by the DICGC would be Rs 99,000/-. If however the principal amount in that account was Rs 1,00,000/-, the accrued interest would not be insured, not because it was interest but because that was the amount over the insurance limit.

Accounts of Minors:

Account Opening:

While opening the account of a Minor, the Bank is guided by the provisions of Section 3 of the Indian Majority Act, 1875, which defines, inter alia, that “A minor is a person below the age of 18 years, unless a guardian is appointed by Court of Law or the property of the minor is under superintendence of Court of Wards, in which case minority extends till the age of 21 years.”



Three type of minor’s accounts can be opened at the branch. These accounts and their operative guidelines are as follows:

1. Accounts in the name of the minor alone:A literate minor above the age of 12 years, who can comprehend the nature of

banking transactions and can sign uniformly, is allowed to open and operate such an account.

The maximum balance in such accounts is normally restricted to Rs. 1 lac and exceptions permitted with the approval of the Branch head. Instruments in the name of the minor only as payee are allowed to be credited to such accounts. This precludes the possibility that instruments issued in favour of the father/mother are collected in accounts.

2. Accounts in the name of Minor alone but operated by the Guardian:

Such accounts opened in the name of the minor are operated by one of the parents as guardian for and on behalf of the minor, or in case where the natural guardian is not alive or is unable to discharge duties, is operated by a guardian appointed by a Court of Law for and

on the minor’s behalf. The exact age of the minor is irrelevant for such an account as long as he remains a minor. The minor’s signature is not admitted in the account for the purpose of operation. Here again, instruments in the name of the minor only as payee are allowed to be credited to such accounts. Instruments issued in favour of the father or the mother is not collected for this type of account. There is however no restriction as to the deposit/maximum balance in these accounts unlike in the accounts mentioned in above type 1 account.

3. Joint Accounts in the name of the Minor and the Guardian:

Such accounts opened in the joint names of the minor and the guardian are operated with the signatures of either the minor or the guardian with the mandate as either or survivor, or former or survivor, or jointly by both where the mandate provides for joint operation. In these cases, instruments both in the name of the minor and/or the named guardians as payee are allowed to be credited to such accounts. There is no rejection again as to the deposits/maximum balance in these accounts unlike in the accounts mentioned in type 1 account.

In any of the above cases, the birth date of the minor, verified from the original school/ birth certificate, is required to be invariably recorded in the account opening form/specimen signature card. This is necessary because when a minor attains majority, the status of the guardian i.e., his authority to sign for and on behalf of the minor is revoked. Simultaneously, the minor is required to ratify the actions taken by the guardian in the past



for and on his behalf so as to bind him on the transactions as he has now become capable of contracting in his own capacity in the eyes of the law.

After minor attains majority, branch should take a balance confirmation letter as well as a new AOF from the former minor and modify their records accordingly.

ATM Card Issued to Minors:

AXIS Bank currently issues Trust 24 ATM card to minors, above the age of 12. In order to increase operational efficiencies, it has been decided to issue Debit Card to minors above the age of 12. The details of the offering are as follows:

Issuance of Debit Card to minors above the age of 12 years, who can sign uniformly.Daily withdrawals limit of Rs 1500/- at ATMs.Daily spend limits of Rs 1000/- at merchant outlets

Risk Management:The concurrent/internal auditors specifically check and verify the application of KYC procedures at the branches and comment on the lapses. To assist them in their work, the AIMS (Account irregularity Monitoring System) software has been implemented at the CPU. Which will indicate the up-to date state of KYC compliance in respect of each new account opened. The branches should make adequate efforts to rectify the irregularities pointed out by the CPU auditors as soon as possible.

Monitoring of Compliance of the Account Opening Procedure:

Day end checking at branch levelConcurrent audit at the CPUSystem audit at new branchesSnap auditConcurrent audit of bigger branches Verification by controlling officials during visits to branchesPeriodical inspection of branches by internal/external auditors

Precautions For Opening and Conduct of Accounts:



Recently, certain instances have come to the notice where accounts have been opened at some of the branches by false person to obtain unlawful payment of the following types of instruments:-

Those issued in favour of genuine persons but illegally obtained by persons claiming to be the original payeesThose which have been stolen from the issuing bank and put to misuseThose whose material details like payee’s name, account details, amount etc. have been altered

For most of the cases, branch have performed the role of collecting bankers and the relative instruments have either been paid in some instances or dishonoured in others due to vigilant and timely detection by the paying banks. As such, branch have not been out of funds in these cases. However, branches need to be fully aware that protection as a collecting bank would be available under the Negotiable Instruments Act only if it can be conclusively established that the relative accounts have been opened by the branch after rigorously following the procedures laid down for opening of accounts, including observance of the KYC norms aimed at establishing the identity and other particulars of the account holder.

The following safeguards has been lay down:

The scrutiny of the AOF should be done by an official at least of the level of Manger/Operation Head before being sent to CPU.Delivery of the Debit cards, PINs etc. to third parties against authority letters should be done only with the approval of the Branch Head/Operation Head, duly recorded on the letter to that effect.Branch while collecting high value instruments of say 50,000/- and above on behalf of other branches should check the relative account in Finacle, particularly in regard to the date of opening, before crediting the proceeds.Having opened the accounts with due precaution, it is also necessary that all vouchers, cheques, drafts, dividend warrants, etc., presented for payment or collection are verified thoroughly before authorisation is given. In a couple of cases recently it was possible to detect the alterations made in a dividend warrant and a cheque due to such scrutiny before payment was made by our branches. All officials should, therefore, be made aware of paramount importance of a proper scrutiny of instruments passing through their hands.

Cash Transaction Guidelines:

Saving/Current Accounts: There is no restrictions for the amount. If the total amount deposited by way of cash in an account in a day is Rs 50,000/- and above, PAN of the account holder should be obtained if not taken on record at



the time of opening the account. In case, the account holder does not have the PAN, then Form 60/61 should be obtained on the day of such deposit.

Time Deposits: as per the IT rules, cash remittances exceeding Rs. 50,000/- requires the account holders PAN or form 60/61. As per AXIS’s internal rules for opening a Fixed Deposit account for amounts exceeding Rs 50,000/- requires the account holders PAN or form 60/61. Cash payment should not be made by a bank to any person whose total holdings of the Time Deposits are Rs 20,000/- or more as per IT Act.

Demand Draft: In AXIS bank for an amount exceeding Rs. 20,000/-, the remitter has to be identified. All drafts/pay orders of Rs 20,000/- and above should be issued as crossed only.

Payment and Settlement System:The banking sector has been witnessing a remarkable transformation over the last

eight-nine years. Technology adoption has changed the way one do the banking transactions these days, with ATMs and credit cards, ECS, RTGS, NEFT facilitating anytime, anywhere, banking. This system works as follows:

The Medium: Indian Financial NETwork (INFINET) is the communication backbone for the Indian Banking and Financial Sector. All the banks are eligible to become members of the INFINET. It is a Closed User Group (CUG) Network for the exclusive use of member banks and financial institutions.

The Carrier: The Structured Financial Messaging System (SFMS) is built on the lines of SWIFT but has many more utilities to offer. The major advantage of SFMS is that it can be used practically for all purposes of secure communication within the bank and between banks. The intra-bank part of SFMS, which is most important, can be used by the banks to take full advantage of the secure messaging facility it provides.

The Identifier: Indian Financial System Code (IFSC) is an alpha numeric code designed to uniquely identify the bank-branches in India. This is 11 digit code with first 4 characters representing the banks code, the next character reserved as control character. (Presently 0 appears in the fifth position) and remaining 6 characters to identify the branch.



The Mode of Transfer:

1. Electronic Clearing Services:

It is a mode of electronic funds transfer from one bank account to another bank account using the services of Clearing House. This is normally for bulk transfers from one account to many accounts or vice-versa. This can be used both for making payments like distribution of dividend, interest, salary, pension, etc. by institutions or for collection of amounts for purposes such as payments to utility companies like telephone, electricity, or charges such as house tax, water tax, etc. or for loan instalments of banks or regular investments of a person. There are two types of ECS: i) ECS Credit- is used for affording credit to a large number of beneficiaries by raising a single debit to an account such as dividend, interest or salary payment. Ii) ECS Debit- is used for raising debits to a number of accounts of consumers/ account holders for crediting a particular institution.

2. Real Time Gross Settlement (RTGS): It is a system through which electronic instructions can be given by banks to transfer funds from their account to the account of another bank. The RTGS system is maintained and operated by the RBI and provides a means of efficient and faster transfer among banks facilitating their financial operations. As the name suggest, fund transfer between banks takes place on a ‘real time’ basis. Therefore, money can reach the beneficiary instantaneously and the beneficiary’s bank has the responsibility to credit the beneficiary’s account within two hours. The minimum amount to be remitted through RTGS is Rs. 2 lakh. There is no upper ceiling for RTGS transactions. The beneficiary bank has to credit the beneficiary’s account within two hours of receiving the funds transfer message.

3. National Electronic Funds Transfer (NEFT):

It is a nationwide funds transfer system to facilitate transfer of funds from any bank branch to any other bank branch. There is no minimum or maximum amount that can be remitted under NEFT.

24*7 Banking:



Internet Banking: using the internet, one can look-up the status of account, submit queries and undertake a wide range of transactions. In addition to the facility of balance enquiry, statement of account, request for issue of cheque book, view personal account information, details of holding and statement of accounts, etc. Customer also be able to transact on their account through the Fund Transfer Facility from their iConnect account.

AXIS Mobile: AXIS mobile gives a true anywhere, anytime banking experience. Balance inquiry, mini statement, cheque book request, iConnect pin regeneration request, Fund transfers to AXIS account or other bank account (NEFT/RTGS), bill payments.

Interbank Mobile Payment Service: An instant interbank electronic fund transfer service through mobile phones. It enables one to send money to another bank account using mobile number. The beneficiary doesn’t need to disclose his or her account and other financial critical details to the sender.

PingPay: Ping Pay is a multi-social payment app from Axis Bank that lets you send or ask for money and mobile recharge across Facebook, WhatsApp, Twitter, SMS or e-mail. And every time you send or ask for money or recharge, say whatever you have to say to your

friends through videos, voice notes, images, or customized messages. Ping Pay can be downloaded and used by both Axis Bank and non-Axis Bank customers. However, the send money/recharge feature is available only for Axis Bank customers only. However, non-Axis Bank customers can receive money/recharge using Ping Pay. To receive money/recharge, the receiver bank account needs to be IMPS enabled.

SMS Banking: A watch on account with a round-the-clock SMS Banking service. Every debit or credit, above the threshold amount, in the account is intimated by an SMS as soon as it happens for the transaction of Rs 5,000/- or more. It helps the customer to detect any unauthorised access to the account.

Secure Banking:AXIS bank has always endeavoured to provide the best of banking services to their

customers. Its latest initiative is NETSECURE, which is a Two Factor Authentication system to provide added security to the online banking transactions and this makes fund transfers absolutely safe and secure.



NETSECURE is a secured system wherein two different parameter, i) login ID and password, ii) a single usage password that one generate i.e., OTP: One Time Password, are used together to verify your identity on the internet. It ensures high end security for the online transactions.

For online fund transfers AXIS has three types of NETSECURE:

1. NETSECURE with SMS: NETSECURE OTP is sent to customer’s mobile phone through SMS every time they do the online transactions. One need to enter that OTP code for particular transaction and then the code will expire.

2. NETSECURE with WebPin:

Customer need to register one or more of their frequently used computers. Then they can use iConnect any from these registered computers. In addition, during registration customer will be prompted to set a WebPin. This will be used to generate a NETSECURE Code which will be required to login and transact on iConnect.

3. NETSECURE 1-touch:

It is a small device that generates a unique NETSECURE Code every time a button on it is pressed and held. This Code will have to be entered in addition to login ID and password to login to iConnect. Every NETSECURE Code expires after 50 seconds and one has to generate a new code to login.

Pradhan-Mantri Suraksha Bima Yojana (PMSBY):

Details of the Scheme:

This PMSBY scheme will cover for the period of one year and is renewable from year to year starting from June 2015. PMSBY scheme is an Accidental Insurance Scheme which covers accidental death or disability on account of accident upto Rs 2 lakhs with a premium of Rs 12/- per annum. The scheme is targeted specially to the poor and unorganized sector that are not covered by any form of insurance for support after any tragedy. In AXIS Bank, scheme is offered by TATA AIG General Insurance Company Ltd. All saving bank account holders, first holder in case of joint account, in the age group of 18 to 70 years are entitled to join the



scheme. In case a person has multiple saving accounts in different banks can only join the scheme from any one account only, as each person should join only once in spite of having multiple accounts. Aadhar is the primary KYC for the bank account. Account holders who have not given their Aadhar card while account opening have to link their aadhar card through KYC or ATM machine in future.

Enrolment Period:

The cover is for the one year period from 1st June to 31st May with an auto-debit facility of premium from the account. All the account holders can join in the scheme till 31st August (extended period for 2015) by a simple procedure of SMS or filling the Consent-cum-Declaration Form available at the every branch of the bank. One can join lately by payment of full annual premium and providing the health certificate after the last date of joining.

Benefits:

Benefits in the scheme are as follows:

Sr. no. Table of Benefits Sum Insured1. Death Rs. 2,00,000/-2. Total and irrecoverable loss of both eyes or loss of

use of both hands or feet or loss of sight of one eye and loss of use of hand or foot

Rs. 2,00,000/-

3. Total and irrecoverable loss of sight of one eye or loss of use of one hand or foot

Rs. 1,00,000/-

Premium:

Annual premium in this scheme is Rs. 12/- per member. The premium will be deducted through the auto-debit facility in one instalment.

Eligibility:

The savings bank account holders of the participating banks aged between 18 years (completed) and 70 years (age nearer birthday) who give their consent to join will be enrolled into the scheme.



Master Policy Holder:

Participating Bank will be the Master policy holder (GPA0008063) on behalf of the participating subscribers. A simple and subscriber friendly administration & claim settlement process is finalized by AXIS Bank and TATA AIG General Insurance Scheme.

Termination of Cover:

The accident cover for the member shall terminate on any of the following events and no benefit will be payable there under:

1) On attaining age 70 years (age nearest birth day).

2) Closure of account with the Bank or insufficiency of balance to keep the insurance in force.

3) In case a member is covered in PMSBY through more than one account and premium is received by the Insurance Company inadvertently, insurance cover will be restricted to one only and the premium shall be liable to be forfeited.

4) If the insurance cover is ceased due to any technical reasons such as insufficient balance on due date or due to any administrative issues, the same can be reinstated on receipt of full annual premium, subject to conditions that may be laid down. During this period, the risk cover will be suspended and reinstatement of risk cover will be at the sole discretion of Insurance Company.

Pradhan-Mantri Jeevan Jyoti Bima Yojana (PMJJBY):

Detail of the Scheme:

This PMJJBY scheme will cover for the period of one year and is renewable from year to year starting from June 2015. PMJJBY scheme is an Life Insurance Scheme which gives cover for death due to any reason upto Rs 2 lakhs with a premium of Rs 330/- per annum. The scheme is targeted specially to the poor and unorganized sector that are not covered by any form of insurance for support after any tragedy. In AXIS Bank, scheme is offered by MAX Life Insurance Company Ltd. All saving bank account holders, first holder in case of joint account, in the age group of 18 to 50 years are entitled to join the scheme. In case a person has multiple saving accounts in different banks can only join the scheme from any one account only, as each person should join only once in spite of having multiple accounts. Aadhar is the primary KYC for the bank account. Account holders who have not given their Aadhar card while account opening have to link their aadhar card through KYC or ATM machine in future.

Enrolment Period:



The cover is for the one year period from 1st June to 31st May with an auto-debit facility of premium from the account. All the account holders can join in the scheme till 31st August (extended period for 2015) by filling the Consent-cum-Declaration Form available at the every branch of the bank. One can join lately by payment of full annual premium and providing the health certificate after the last date of joining.

Benefits:

In this PMJJBY, nominee will be benefited upto Rs 2 lacs on the death of policy holder due to any reason.

Premium:

Annual premium in this scheme is Rs. 330/- per member. The premium will be deducted through the auto-debit facility in one instalment.

Eligibility:

The savings bank account holders of the participating banks aged between 18 years (completed) and 50 years (age nearer birthday) who give their consent to join will be enrolled into the scheme.

Master Policy Holder:

Participating Bank will be the Master policy holder on behalf of the participating subscribers. A simple and subscriber friendly administration & claim settlement process is finalized by AXIS Bank and MAX Life Insurance Scheme.

Termination of Cover:

The assurance on the life of the member shall terminate on any of the following events and no benefit will become payable there under:

1) On attaining age 55 years (age near birth day) subject to annual renewal up to that date (entry, however, will not be possible beyond the age of 50 years).

2) Closure of account with the Bank or insufficiency of balance to keep the insurance in force.

3) In case a member is covered in PMJJBY through more than one account and premium is received by the Insurance Company inadvertently, insurance cover will be restricted to one only and the premium shall be liable to be forfeited.



4) If the insurance cover is ceased due to any technical reasons such as insufficient balance on due date or due to any administrative issues, the same can be reinstated on receipt of full annual premium and a satisfactory statement of good health.

Short Analysis of both the Scheme:

The government is doing a wonderful job in taking these initiatives to attract low income group people to get themselves covered against the risks of untimely death or accidental disabilities.

Since the target audience for these schemes is poor and unorganized sector of the society I personally would not recommend to person whose life insurance needs are much more than Rs 2,00,000/-.

Selection of an Insurance schemes is very important because the cover to these policies provide seems to be too small if we consider the thumb rule of life and

accidental insurance, which is 10 times of annual income for life insurance and 5 times of annual income for accidental insurance.

These schemes are good for people who does not have any insurance and needs the most in its true sense with the lowest investment. It will also help government to get some funds in the bank accounts which were opened under Jan Dhan Yojana.

There is a serious doubt on settlement of claims & handling claims and other service related issues because of the assumption that there will be large volumes. Good back end team needs to be appointed to handle these policies after its complete roll out and delivery.

There is some guidelines for claim process such as filling Prescribed Claim Form, Discharge Form (in PMJJBY), providing the FIR report of accident (in PMSBY), Death Certificate, Civil Surgeon Certificate in case of Paralysis, etc. and submitted to the home branch within the 30 days of the death.

Atal Pension Yojana (APY):

Details of the Scheme:

The Government of India showing concerned about the old age income security of the working poor, who constitute 88% of the total labour force of 47.29 crore as per the 66th



Round of National Sample Survey Organisation (NSSO) Survey of 2011-12 but do not have any formal pension provision, GoI is focused on encouraging and enabling them to join the National Pension System (NPS). In 2010-11, Government has started Swavalamban Scheme, but due to lack of guaranteed pension benefits not more people were attracted to this scheme.

In the budget of 2015-16, GoI and Finance Ministry introduced the Social Security Schemes in Insurance and Pension for all the citizen of India. Government launched the Atal Pension Yojana (APY) which will provide a defined pension amount depending on the contribution and their current age. This APY is focused to all the citizens in the unorganized sector who join the National Pension Scheme administered by the Pension Fund Regulatory and Development Authority (PFRDA).

Benefit of the APY:

Under the APY, subscribers would receive guaranteed fixed pension amount of Rs. 1000/-, Rs. 2000/-, Rs. 3000/-, Rs. 4000/-, or Rs. 5000/- per month at the age of 60 years depending on the contribution. The contribution levels would vary and would be low if subscriber joins early and increase if he joins late.

Eligibility for APY:

APY is open to all saving account holders aged between 18 to 40 years. Therefore, minimum period of contribution by any subscriber of APY would be 20 years. Government would co-contribute 50% of total contribution or Rs 1000/- per annum, whichever is lower, for first 5 years, i.e., from 2015-16 to 2019-20. This co-contribution is available to those who join the APY before 31st December 2015.

Co-contribution will not be available for those who are Income Tax Payers and a member of any Statutory Social Scheme.

Enrolment and Subscriber Payment:

For enrolment Aadhaar would be the primary KYC document for identification of beneficiaries, spouse and nominees to avoid pension rights and entitlement related disputes in the long-term.

Subscriber are required to opt for monthly pension amount of Rs1000/- to Rs5000/- and should maintain the balance in account for auto-debit of monthly contribution. The subscriber can opt to increase or decrease the contribution amount, but the switching amount should be available once in a year during the month of April.



Each subscriber will be given acknowledgement slip after joining APY and unique Permanent Retirement Account Number (PRAN) will be generated and given to the subscriber.

How to Open APY Account?

Bank Account Holder

i. Approach … “Bank Branch (core banking branch)”.

ii. Fill up APY registration form.

iii. Provide the Bank account number, Aadhar no. and Mobile number

iv. First contribution amount will be deducted from the account itself and thereafter on monthly basis.

v. Banks will issue acknowledgement number / PRAN number on the counter foil slip against their subscription application.

Non-Bank Account Holder

i. Approach … “Bank Branch (core banking branch)”.

ii. Open an Account by proving KYC document Aadhaar.

iii. Fill up a APY registration form.

iv. Provide the Bank account number, Aadhaar no. and Mobile number

v. First contribution amount will be deducted from the account itself and thereafter on monthly basis.

vi. Bank to issue acknowledgement number/PRAN number on the counter foil against their subscription application.

Operational Process:

Operations under APY are performed by Central Recordkeeping Agency (CRA) as per operational guidelines provided by PFRDA.



The existing Subscribers of Swavalamban subscribers between 18-40 years will be automatically migrated into APY. For seamless migration to the new scheme, all the subscriber of Swavalamban Scheme have to fill APY migration form and submit it to the bank.

The Swavalamban Subscribers who are beyond the age of 40 and do not wish to continue may opt out by submitting a withdrawal of entire amount in lump sum or may prefer to continue till 60 years and be eligible for annuities there under.

Contribution collected through standing instruction by the Banks needs to be remitted next day to the Trustee Bank account. Further Trustee Bank will transfer the funds to Pension Funds as per trustee bank regulations. AXIS Bank is the only bank giving its services as trustee in APY till now.

Other Features of APY:

SMS Alerts – Subscribers will be intimated by Bank/CRA for the due contribution, balance, credits into PRAN etc.

Each subscriber will have one unique individual account number and not permitted to open more than one account.

Banks will be incentivised Rs. 120/- per account by the GoI.

The monthly pension is guaranteed by the Government. To the subscribers and to spouse after the death of subscribers. After the death of subscribers and spouse Government will return

the corpus to nominees of subscribers depending upon the subscriber’s contribution and annuitisation.

Corpus Amount is the summation of:

i. Subscriber contribution (Accumulated) ii. Govt. of India contribution iii. Interest earned ( Returns)

Monthly Pension to the subscribers and his spouse (in Rs.)

1000/- 2000/- 3000/- 4000/- 5000/-

Indicative Return of Corpus to the nominee of the subscribers (in Rs.)

1.7 lacs 3.4 lacs 5.1 lacs 6.8 lacs 8.5 lacs



All the contributions under APY are invested in:

i. Government Securities-Min-45% and up to 50%,ii. Debt Securities and term deposits of banks-Minimum 35% and up to 45%,iii. Money Market Instruments-Up to 5%iv. Equity and related instrument- Minimum 5% up to 15%,v. Asset Backed Securities etc. – Up to 5 %.

Penalty for Default:

Under APY subscribers have to make the contribution on a monthly basis. Banks are required to collect additional amount for delayed payments, such amount will vary from minimum Rs. 1 per month to Rs 10/- per month as shown below:

i. Rs. 1 per month for contribution upto Rs. 100 per month. ii. Rs. 2 per month for contribution upto Rs. 101 to 500/- per month.

iii. Rs. 5 per month for contribution between Rs 501/- to 1000/- per month.iv. Rs. 10 per month for contribution beyond Rs 1001/- per month.

Non-continuation of monthly payment shall lead to following:

i. After 3 months account will be frozen. ii. After 12 months account will be deactivated. iii. After 24 months account will be closed.

Bank can recover amount any day till last day of the month. It will imply that the contribution will be recovered as and when funds are available at any point during the month.

It may be informed to subscriber that the fixed amount of interest / penalty will remain as part of their pension corpus.

Process Flow Chart:



Person walks in the branch with APY form:

1. Bank official enters the Bank Account number in the APY module

2. The entire subscriber details are fetched from the CBS and displayed in the APY module.

3. Bank official cross checks Subscriber’s name and DOB with form and enters the Pension Amount and periodicity as mentioned in the form as well as the mobile number.

4. The APY module calculates and prompts the amount that the subscriber needs to contribute monthly based in the DOB, Periodicity and Pension Amount as entered in the system.

5. Bank official submits the request in the APY system and PRAN is allotted to the subscriber from PRAN Library.

6. APY Module will then generate an Acknowledgement (with the PRAN) which is handed over to the subscriber. The Acknowledgement will clearly mention that the subscriber has



registered in the APY with a guaranteed pension of desired amount and the payment schedule.

The subscriber without the bank account, the bank branch official will have to first open a bank account to enrol the subscriber under APY scheme, and the process to be followed as mentioned above.

Exit and Pension Payment:

Subscribers can only exit from APY after attaining the age of 60 years. Pre-mature exit is not allowed except in exceptional circumstances.

1. On attaining the age of 60 years;

On attaining the age of 60 years, subscriber is allowed to exit with 100% annuitisation. Of pension wealth. On exit, pension would be credited into the subscribers account.

2. In case of death of subscriber:

In case of death of the subscriber pension would be available to the spouse and on death of both of them, the pension corpus would be returned to nominee.

3. Exit before the age of 60 years:

Exit before 60 years of age is not permitted, however in exceptional circumstances, i.e., in the event of the death of beneficiary or terminal disease, there is provision of withdrawal after due diligence on case to case basis.

Short Analysis of APY:

From the hand-out it seems that the purchase price of the annuity is given as the indicative return of corpus. Let’s work through one example. The fifth option has the following contributions:



When we look at the return from this we can say that returns are not great. Even the prevalent rates on Public Provident Fund (PPF) and Employees’ Provident Fund (EPF) are almost the same. An investment in AXIS Mutual Fund is giving a return of 13-14% in 42 months.

If we consider that at the age of 30 years, a person’s daily expense is Rs. 40/- and at the average inflation of 5%, he will be satisfied with Rs. 5000/- as a monthly pension amount.

If we consider that at the age of 30 years, a person’s daily expense is Rs. 100/-, we need 12,965/- as a monthly pension amount

Summary of Jan-Suraksha Scheme:



3

3 Following figures are the data as on 25th June 2015.



Recommendations:AXIS Bank(earlier UTI Bank) was one of the first private banks to launch operations in the country in 1994, after the Government of India passed a resolution in favour of privatization. An IT savvy bank, AXIS Bank is a pioneer in adopting new technologies in the banking sector. It has a very large network of branch offices and extension counters across the country. With over 2500+ ATMs, AXIS Bank has the largest ATM network of its kind in India.

CRM:

Privatization opened up the Indian banking sector, allowing a large number of players to offer retail banking services in the country. Using the latest technologies, AXIS Bank introduced quality services to enhance the banking experience of its customers. As the services stack expanded, supporting customers became a challenging task. Efficient service and timely support were the deciding factors for customers to remain loyal to any particular bank, which brought Customer Relationship Management (CRM) into sharp focus.

Conclusion:Much is changing in the banking landscape – with regulation, technology, demographics, changing customer expectations, greater competition and issues with banks’ own legacy business and operating models. The challenges are clear, even if the ultimate endgame is not.

Banks need to get ahead of these challenges. They need to make choices about which customers to serve, how to win and where not to play. They need to rebuild their organisations around the customer, simplify and structurally reduce cost. They need to learn to be agile, innovative and adaptable in order to execute effectively – and deal with uncertainty as the future unfolds. They need to do things differently.

Each bank’s unique response will depend upon the bank’s current position, aspirations for the future, desired customer focus, organisational capabilities, brand promise, regulatory situation and capital constraints.



List of Abbreviations

Acronym Full FormsQIPs Qualified Institutional PlacementAMB Average Monthly BalanceTCDC Travel Currency CardsFFMC Full Fledged MoneychangersFEMA Foreign Exchange Management ActNAV Net Assets ValueAMC Asset Management companiesNSDL National Securities Depository LimitedAOF Account Opening Forms

PMSBY Pradhan-Mantri Suraksha Bima YojanaPMJJBY Pradhan-Mantri Jeevan Jyoti Bima Yojana

APY Atal Pension YojanaNSSO National Sample Survey OrganisationGoI Government of IndiaNPS National Pension Scheme

PFRDA Pension Fund Regulatory and Development AuthorityPRAN Permanent Retirement Account NumberCRA Central Recordkeeping Agency



References http://www.axisbank.com/investor-corner/annual-reports.aspx

http://jansuraksha.gov.in/

https://www.rbi.org.in/

http://www.axisbank.com/personal/index.aspx

AXIS Bank- SWAGAT

Report on “Retail Banking 2020 Evolution or Revolution?” by PwC http://www.pwc.com/et_EE/EE/publications/assets/pub/pwc-retail-banking-2020-evolution-or-revolution.pdf

“Retail Banking: Facing the Future” by Boston Consultancy Group http://www.bcgindia.com/documents/file15123.pdf

“Transforming banks, Redefining banking-Global banking outlook 2014–15” by EY http://www.ey.com/Publication/vwLUAssets/EY_-_Transforming_banks_-_redefining_banking/$FILE/EY-Global-Banking-Outlook-Transforming-banks-redefining-banking.pdf


http://www.ey.com/Publication/vwLUAssets/EY_-_Transforming_banks_-_redefining_banking/$FILE/EY-Global-Banking-Outlook-Transforming-banks-redefining-banking.pdf



http://www.bcgindia.com/documents/file15123.pdf

http://www.pwc.com/et_EE/EE/publications/assets/pub/pwc-retail-banking-2020-evolution-or-revolution.pdf

http://www.pwc.com/et_EE/EE/publications/assets/pub/pwc-retail-banking-2020-evolution-or-revolution.pdf

http://www.axisbank.com/personal/index.aspx

https://www.rbi.org.in/

http://jansuraksha.gov.in/

http://www.axisbank.com/investor-corner/annual-reports.aspx

Axis bank retail banking

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