Professional Documents
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DECLARATION
I Sidhi Mehta, declares that the report on NRI BANKING is an original work done by me
And has not been submitted to any college /Institute/University in any mean possible.
SIDHI MEHTA
M.B.A (FSM)
III-SEMESTER
ACKNOWLEGDEMENT
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I express my sincere gratitude to Kotak Mahindra Bank Ltd. and Faculty of Management Studies,
Udaipur which gave me this opportunity to carry on my Summer Internship Project.
I am greatly indebted to my project supervisor Mr. Anup Pal (Head of Department) for the constant
guidance throughout the course of this work and for providing me all necessary information for my
project work.
I am also thankful to Mrs.Chaitali Thakor (Assistant manager) for given me necessary information at
anytime.
EXECUTIVE SUMMARY
The main objective of this project report is to find out about the how Kotak Mahindra Bank is
providing services to NRI (non-resident Indian) customers through NRI Banking.
In NRI Banking. I find out that Kotak Mahindra Bank offers many products and services to the
customers, who help customers to transfer money from abroad through various transfers modes like
direct transfer, wire transfer, bank transfer, cheque transfer. Kotak Mahindra Bank has its own portal
website through which customer can transfer money easily and quickly the name of that portal website
is www.click2remit.com. There are different charges on transfer according to currency transfer by the
customer.
As the work provided to me was that to interact with NRI customer who is having NRI accounts with
Kotak Mahindra Bank and need to tell them about their non-maintenance charges on accounts,
minimum balance is to require to maintain in accounts, information about the other NRI products and
services provided by banks etc. I also try to find out on which point the Kotak Mahindra Bank is
leading and lagging in NRI Banking part so that it improve and customer can get more better products
and services.
TABLES OF
CONTENTS
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Certificate
(i)
Declaration
(ii)
Acknowledgement
(iii)
Executive Summary
(iv)
History
Product & Services
Awards
Introduction
NRI Banking
NRI Products & Services
Types of NRI Accounts
NRO Account
Benefits of NRO Account
NRE Account
Benefits of NRE Account
FCNR Account
Benefits of FCNR Account
7-10
11
12
13
13
14
15
16
17
18
19
20
21
22-23
Click2remit
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Remittances
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Direct transfer
Procedure to make direct transfer
ABA/routing number
Debited of money from customers account
Charges for using direct transfer
Exchange rate used in direct transfer
Bank transfer
Benefits of bank transfer
26
26
26
27
27
27-28
29
29
5
30
30
31
31
31
32
33
33
34
Click2Remit-Modes of Transfer
35
Click2Remit-Transfer Charges
36-37
Research Methodology
38
39-40
Conclusion
41
Bibliography
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Kotak Mahindra Bank is one of Indias leading financial private banking institutions.
Some of its financial services include commercial banking, stock broking, mutual funds, life insurance
and investment banking. Established under the brand of Kotak Mahindra Finance Limited in 1984,
it was given the license to carry on with banking business by the Reserve Bank of India in February
2003. It is the first company in the Indian banking history to convert to be converted from a private
financial institution to a bank. Today it has more than 20,000 employees and Rs. 10,000 crore in
revenue. Uday Kotak is Executive Vice Chairman & Managing Director of Kotak Mahindra Bank
Ltd. Dr. Shankar Acharya is the chairman of board of Directors in the company.Kotak Mahindra Bank
is part of the Kotak Mahindra Group with a net worth of over Rs. 5,997 crore. Today the group
provides services to around 5 million customers. Kotak Mahindra Bank Limited celebrated their silver
jubilee i.e. 25 years in banking sector. Kotak Mahindra Bank has over 323 branches and a customer
account base of over 2.7 million. Spread all over India, not just in the metros but in Tier II cities and
rural India as well, we are redefining the reach and power of banking.
HISTORY:
The Kotak Mahindra Group was born in 1985 as Kotak Capital Management Finance Limited. This
company was promoted by Uday Kotak, Sidney A. A. Pinto and Kotak & Company. Industrialists
Harish Mahindra and Anand Mahindra took a stake in 1986, and that's when the company changed its
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name to Kotak Mahindra Finance Limited. Since then it's been a steady and confident journey to
growth and success. 1986 Kotak Mahindra Finance Limited starts the activity of Bill Discounting.
1986:
Kotak Mahindra finance limited starts the activity of Bill Discounting.
1987:
Kotak Mahindra finance limited enters the Lease and Hire purchase.
1990:
Started the Auto Finance Division.
1991:
Started the investment banking division. Took over the FICOM one of the Indias largest financial retail
marketing networks.
1992:
Entered the Funds Syndication sector.
1995:
Brokerage and Distribution businesses incorporated into a separate company - Kotak Securities.
Investment banking division incorporated into a separate company - Kotak Mahindra Capital Company.
1996:
Brokerage and Distribution businesses incorporated into a separate company - Kotak Securities.
Investment banking division incorporated into a separate company - Kotak Mahindra Capital Company.
1998:
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Enters the mutual fund market with the launch of Kotak Mahindra Asset Management Company.
2000:
Kotak Mahindra tied up with Old Mutual plc.for the Life Insurance business. Kotak Securities launched
its on-line broking site (now www.kotaksecurities.com). Commencement of private equity activity
through setting up of Kotak Mahindra Venture Capital Fund.
2001:
Matrix sold to Friday Corporation Launched Insurance Services.
2003:
Kotak Mahindra Finance Ltd. converted to a commercial bank - the first Indian company to do so.
2004:
Launched India Growth Fund, a private equity fund.
2005:
Kotak Group realigned joint venture in Ford Credit; Bought Kotak Mahindra Prime (formerly known as
Kotak Mahindra Primus Limited) and sold Ford credit Kotak Mahindra. Launched a real estate fund.
2006:
Bought the 25% stake held by Goldman Sachs in Kotak Mahindra Capital Company and Kotak
Securities.
2008:
Launched a Pension Fund under the New Pension System.
2009:
Kotak Mahindra Bank Ltd. opened a representative office in Dubai, entered Ahmedabad Commodity
Exchange as anchor investor.
2010:
Ahmadabad derivatives and commodities exchange a Kotak anchored enterprise, became operational as
a national commodity exchange
2011:
Celebrating silver jubilee i.e. 25 years.
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Personal Banking:
Offers a wide range of products and services in deposits, loans investments, insurances, forex,
services, demat services, online services, and wealth management services.
NRI Banking:
Offers money transfers, investments products such as international deposits, mutual funds,
money transfers facilities, remittances facilities, loans etc.
Priority Banking:
It provides products and services to high net worth individuals clients such as deposits loans
cards investments.
Business Banking:
It caters to SME, NRI and corporate offerings a spectrum of products and services.
AWARDS:
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Kotak Investment Banking was honoured with Best Investment Bank and Best Equity House
in India at Finance Asia Best Bank Awards 2008.
Kotak Mutual Fund's Kotak Bond Short-term was awarded ICRA Mutual Fund Gold Award in
the short-term Debt category for 1 year & 3 years 2008.
Kotak Investment Bank bagged Best Investment Bank in the domestic
Finance Asia for the second year in a row.
category in India by
Kotak Mutual Fund was given the best debt fund house and also was awarded wealth creator
award at Outlook Money NDTV Profit 2007 awards.
INTRODUCTION:
NRI BANKING:
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NRI Baking is for those people who are non-resident Indian. Basically the product range includes NRE
accounts, NRO Accounts and FCNR Accounts.
While opening a NRI accounts, customer requires the following documents:
(a). Copies of passport pages where name ,address, specimen signature , photograph and visa details
are recorded and copy of valid visa/work permit(the visa could be either in the passport or given
separately).
Account number
Type of account
Branch name with full postal address including PIN Code and telephone number of the
branch.
Official wealth management advisory partners of Overseas Indian Facilitation Centre (OIFC)
for Pravasi Bharatiya Divas 2010.
A comprehensive product suite to cater to the financial needs of the NRIs/PIOs.
Global Debit Card for NRE account and an Access India Debit Card for NRO account.
High quality convenience banking with Net Banking with Net Banking and Phone Banking
facility.
DTAA benefit for NRO deposit available to more than 74 countries across the globe.
Dedicated Relationship Manager to assist with all the customers financial requirements.
Click2Remit-state of the art online remittance portal which is available in currencies at
competitive Forex rates.
Online Account Opening facility to assist the customer for opening of bank account sitting
anywhere in the world.
Online assistance- live Chat, Click2Remit, and SMs2Call
NRI Investment services- mutual funds (offline and online). Online MF services can be used by
NRIs across the world
It is ideal way to manage your income originating in India.NRO Accounts available in form of
Savings and Term Deposits to manage your income in india. It is partially repatriable. An NRO account
accepts both foreign currency and Indian rupee. The time period of an NRO Accounts is from 14 days
to 10 years. There are also special products like Max Yield Deposits where a customer can earn a
higher return on NRO deposits through DTAA benefits. Taxes currently at 30% plus service tax and
education cess on DTAA rates. This account includes checking, saving and fixed accounts. Purpose of
NRO account is to deposit the dues earned in India in Rupees and foreign exchange funds. In NRO
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accounts, minimum balance is to be require to maintained that is of Rs. 10,000/- and deposits of
Rs.50,000/- . In NRO Accounts, repatriation is up to USD q million per financial year subject to
documentation and conditions current income like rent, dividend, and pension is repatriable subject to
CA certificate and proof of nature of income. Loan (against Fixed Deposit) is available up to 85% of
the loan amount subject to RBI guidelines. In NRO Accounts joint holder can be Indian residents or
NRIs both. Frequency of interest (Fixed Deposit) is quarterly. NRO accountholder can access India
(local) debit cum ATM card.
Automatically renew the customer deposit on maturity. This ensures that the interest earned is
maximized.
4. Repatriation:
Repatriation is up to USD 1 million per financial year subject to documentation and conditions
current income like rent, dividend, and pension is repatriable subject to CA certificate and proof of
nature of income.
NRE Accounts are fully repatriable. NRE Accounts accepts only foreign currency. Transfers can be
done in NRE Accounts from overseas or through NET BANKING and portal website of Kotak
Mahindra Bank that is Click2Remit. The term period of an NRE Account is 1 year to 3 year. The
principal and interest earned in an NRE Account are completely tax free and exempt from Income Tax
in India. This Account includes checking, savings, and fixed accounts. Purpose of Account is to deposit
foreign funds received from any travels cheques, foreign currency brought through normal banking
channels into account. Accepts maturity proceeds of investments purchased from even NRE/FCNR
Accounts. In NRE Accounts, minimum balance is require to maintained of RS.10, 000/- and Deposits
of Rs.50, 000/-. In NRE Account, joint holder can only be NRIs. Loan is available up to 85% for loan
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value up to an upper limit of Rs.100 lakh per RBI guidelines. A chequebook for savings accounts is
available. Frequency of interest (Fixed Deposit) is quarterly.NRE Accountholder can access
international debit cum ATM card.
1. Net Banking:
Log to www.kotak.com to have complete access and control over finances, anytime, and from
any place in the world.
3. Tax On Interest:
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The principal and interest earned in an NRE Account are completely tax free and exempt from
Income Tax in India.
4. Repatriation:
It is freely repattriable.
5. Loan(against Fixed Deposits) :
Loan is available up to 85% for loan value up to an upper limit of Rs.100 lakh per RBI
guidelines
FCNR Deposits delivers the three way benefits of attractive returns, complete repatriation and zero tax
liabilities. It maintains the accounts in the following major currencies which are as follows:
1.
2.
3.
4.
5.
USD
GBP
EUR
JPY
It protect the money from exchange rate fluctuations. Tax deducted at source (TDS) certificates
is issued. Purpose of account is to deposit foreign funds received from any travels cheques,
foreign currency, other NRE/FCNR accounts and proceeds of repatriable investment. The term
period of FCNR is 1 year to 5 year. It is fully repatriable. Loan against fixed deposit is available
up to 85% for loan value upto an upper limit to Rs. 100 lakhs per RBI guidelines. In this,
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minimum balance is requiring to maintain that is USD 1000, GBP 500, EUR 1000, and JPY
110,000. In this joint holders can only be non-Indian Residents (NRIs).
1) Tenure:
The FCNR Term Deposit can be held for minimum period of one year and maximum period of
five years.
2) Mandate Facility:
Appoint a family member or trusted friend to manage the account.
3) Auto Renewal:
Automatically renew the deposit on maturity. This ensures that the interest earned is maximized.
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NRE
NRO
FCNR
Repatriability
Fully
Partially
Fully
Currency
Rupee
Rupee
USD,GBP,JYP,&EUR
Term
1yr-3yrs
14days-10yrs
1yr-5yrs
Tax on interest
Tax free
Taxes currently at
30%plus service tax
and education cess on
DTAA rates
Tax free
Type of account
Checking, saving,
fixed
Checking, saving,
fixed
Fixed
Purpose of account
To deposit foreign
funds received from
any:
To deposit
dues earned in
India in
Rupees
foreign
exchange
funds
To deposit foreign
funds received from
any:
Traveler's
cheques
Foreign
currency
Other
NRE/FCNR
a/c
Proceeds of
repatriable
investments
Minimum balance
requirements
Savings:INR10,000
Deposit:INR50,000
Savings:INR10,000
Deposits:INR50,000
USD1000, GBP500,
EUR1000,
JPY110,000
1-5years
1-3 years
Period for fixed
deposit
Traveler's
cheques
Foreign
currency
Other
NRE/FCNR
a/c
Proceeds of
repatriable
investments
15 days-10 years
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FCNR rate
Exempt
Exempt
Interest rate
Tax deducted at
source
Frequency of
interest(fixed
deposits)
Half-yearly
Quarterly
Freely Repatriation
Repatriation
Loans(against fixed
deposits)
Freely
Repatriation
Repatriable up to
USD 1 million per
financial year subject
to documentation and
conditions. Current
income like rent,
dividend , pension is
repatriable subject to
CA certificate and
proof of such nature
of income
Available up to 85%
for loan value up to an
upper limit of rs.100
Available up to 85%
lakhs per RBI
of the loan amount
guidelines.
subject to RBI
guidelines.
Available up to 85%
for loan value up to an
upper limit of rs.100
lakhs per RBI
guidelines.
Available
Cheque book for
Saving account
Available
International debit
cum ATM card
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CLICK2REMIT:
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REMITTANCES:
25
Following are four online remittances through which customer can easily transfer the money
by using the portal website of kotak Mahindra bank limited that is www.click2remit.com.
Direct Transfer
Bank Transfer
Wire Transfer
Cheque Transfer
DIRECT TRANSFER:
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Direct transfer uses ACH clearing, full form of ACH is Automated Clearing House. In the United
States, the ACH Network is highly reliable and efficient nationwide electronic funds transfer
system which enables interbank clearing of transactions among participating financial
institutions. customer may use their checking account or their saving account with US Bank
affiliated to the ACH network.
ABA/ROUTING NUMBER
The American Bankers Association Number (ABA) or Routing number is also called Routing
Transit number. It is nine digit identification number assigned to each financial institution and
each branch office of that financial institution. Without the ABA/Routing number, transmitting
funds is not possible. The ABA number can be found on the bottom of the cheque.
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Money will be debited from customer account on the second or third working day from the date
when the customer makes the transaction. Do take account all holidays like weekends, public
holidays, in India and the US while calculating working days.
BANK TRANSFER:
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Bank transfer is online money transfer facility for remitters in Europe. Remitters having internet
banking facility for their checking accounts with banks in UK/Germany can use this bank
transfer.
Additionally, only customers of banks offering the following will be able to use this facility:
A Remarks or message to receipt field while making the online third- party transfer, to
enter the tracking number generated on click2remit.
Electronic transfers into any Kotak Mahindra bank account with 250 branches in India.
Electronic transfers into accounts with nearly 100 other banks and over 70,000 banks
branches in India.
Electronic transfers into any Visa Debit/ credit card account in India.
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WIRE TRANSFER:
It is easy transfer. Internet-based wire transfer mechanism thats much more efficient than offline
wire transfers. Errors are minimized with a unique tracking number- given to customer each time
customer use.
Online wire transfer that allows customer to check the status of their remittance online at any
time. Currently, customer can remit money in nine currencies which are AED, AUD, CAD, CHF,
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EURO, GBP, USD, and SGP. However, payments to their beneficiary in India will be made only
in Indian rupees.
It will typically take up to 2 working days to credit and Kotak bank account from the
moment customer transfer funds from their overseas bank account.
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For third party an additional working day or more may be taken depending on the
policies of that bank.
CHEQUE TRANSFER:
Cheque transfer is money transfer option through which customer can send money to India by
mailing a foreign currency cheque drawn on any local bank- to P.O Box in their country. It is
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currently available for remitters in the United States. Customer should not send Cashiers
cheques since they will not be processed.
Print the remittance instruction form after customer complete their transaction and attach
it to their check.
Post both the remittance instruction form and their check to bank collection boxes in their
country at the address provided.
The bank will clear their check in their country and bank will dispatch their remittance to
their beneficiary once the bank receives clear funds.
CLICK2REMIT-MODES OF TRANSFER:
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WIRE
TRANSFER
BANK/DIRECT
TRANSFER
CHECK
LOCK BOX
REMARKS
US
Available
Available
(ACH)
Available
UK
Available
Available
(Net Transfer)
NA
Popular modes
available
GERMANY
Available
Available
(Net Transfer)
NA
Popular modes
available
CANADA
Available
NA
NA
ACSS will be
enabled
SINGAPORE
Available
NA
NA
GIRO will be
enabled
AUSTRALIA
Available
NA
NA
Bank transfer
will be enabled
JAPAN/SWISS/
UAE
Available
NA
NA
Popular modes
available
CLICK2REMIT-TRANSFER CHARGES:
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CURRENCY
TRANSACTION
AMOUNT SLABS
0-500
501-1000
1000 and above
C2R
R2I
M2I
USD 2
USD 2
No charge
USD 3
USD 5
USD 9
USD 2
USD 2
No charge
0-500
501-1000
1000 and above
0-800
800 and above
1000 and above
GBP 2
No charge
No charge
EUR 2
No charge
No charge
GBP 3
GBP 5
GBP 5
EUR 2
EUR 3
EUR 5
GBP 2
No charge
No charge
EUR 2
No charge
No charge
JPY
0-10,000
10,000 & above
JPY 1000
JPY1000
JPY 1000
JPY 1000
NA
NA
AUD
0-1500
1500 & above
AUD 5
No charge
AUD 6
AUD 12
AUD 5
No charge
SGD
0-1000
1001-2000
2000 & above
SGD 5
SGD 5
No charge
SGD 6
SGD 6
SGD 6
SGD 5
SGD 5
No charge
CAD
0-1000
1001-1500
CAD 4
CAD 4
CAD 15
CAD 15
CAD 4
CAD 4
USD
GBP
EUR
AED
FC C
0-1000
1001-1500
1501 and Above
0-1000
1001-4000
4001 and Above
No Charge
CHF 4
CHF 4
No Charge
AED 10
AED 10
No Charge
INR 25+St
CAD 15
NA
NA
NA
AED 15
AED 15
AED 15
34-125^^
No Charge
CHF 4
CHF 4
No Charge
AED 10
AED 10
No Charge
INR 25
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Note: Remit2India collects money as service charge which varies currency slab wise and ranges
from min of INR 34 to INR 125.
RESEARCH METHODOLOGY
Objective of Project:
38
The main objective of the project report is that what are products and services are offered
by Kotak Mahindra Bank to NRI customer through NRI Banking.
Secondly, there are various modes of transfer available in world through which customer
can transfer his money to India.
Thirdly, there are charges on various transfer according to amount of money transfer.
Fourthly, there is portal website of Kotak Mahindra Bank through which customer can
transfer money easily and from any corner of world.
SECONDARY DATA:
The secondary data was given by bank; it was the data of around 450 NRI customers with their
overseas as well as Indias contact number of South Gujarat who is having both NRE and NRO
accounts with bank. That data contain the CRN NUMBER (customer relationship number) and
their account number. First of all I need to update the data of NRI customer with current account
balance in system then I need to call on customer overseas contact number as well as Indias
number as given in the system to informed them about the account details and ask them to
maintain minimum balance in account and also explain them about the transfer procedure that
how can they make transfers from abroad to India.
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According to work allotted to me, I need to update the customers data regarding their current
balance as well as updating their preferred contact number to get in contact with the customer
and inform them regarding their account status.
I made interaction with customer informed them about their account details and even explained
them about non- maintenance charges if an average balance is not maintained in their respective
account.
Get in calling them and told them about the transfer procedure. Also explain about the how they
can make online transfer through overseas.
Call to customer at their convenient time as per informed by international calling codes and their
timing to call respective country that is as follows:
Country
Codes
Timings
USA
001
After 6pm
UK
0044
After 3 pm
UAE
0097
12PM-7PM
KENNYA
00254
12pm- 7pm
AUSTRALIA
0061
Till 3pm
SINGAPORE
0065
10 am 6pm
AFRICA
0025
12pm- 7pm
OMAN
00968
12pm -6pm
UGANDA
00256
CANADA
001
12pm- 7pm
After 7pm and before10am
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Spoke to customer and made them transfer online, it usually takes 4 to 5 days to get credited in
their respective account and most happening experience was that customer was polite and even
gave reference of their respective friends and relatives for opening NR accounts.
CONCLUSION:
As per my experience in the NR banking department I came to know about the various transfer
procedures that are at present available in the international market i.e. the remittances available.
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Also I came to know about the problems & difficulties that the NR customers face while making
online transfers.
Kotak Mahindra Bank Limited is having widespread transfer modes & NR products. It has
various facilities that provide convenience to the customers residing in far-away countries for
remitting their money to India.
BIBLIOGRAPHY:
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1.) www.kotak.com
2.) www.google.com
3.) www.wikipedia.com
4.) www.click2remit.com
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