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A

PROJECT REPORT ON
MARKET STUDY AND CUSTOMER
MAPPING
FOR BANKING PRODUCTS

PREPARED BY
Hemali Suratia
Bharti Thakkar
Manthan Sarvaiya
Truptesh Shah
Umesh Makhlepara
Sumit Patel
Kaushik Gondaliya
Yogesh Sindha
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Nilesh Khetiya
(NIS Academy) SUBMITTED TO
Pramod Sir
(Branch Manager)
V.V.NAGAR
INDEX

Sir no. Particulars Page no.


1. Preface
2. Acknowledgement
3. Executive summary
4. Company profile
5. Introduction of banking sector in India
6. Current scenario
7. About Kotak Mahindra bank
8. History
9. SWOT Analysis of Kotak bank
10. NRI’S
11. NRI Help center
12. Analysis

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PREFACE

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The industrial scenario of economy is highly competitive and constantly
changing. To serve this highly competitive scenario practical studies are
much more important with theoretical studies. In India the significance of
MBA course is increasing drastically. Amongst all the PG courses MBA is
most favored. As a partial fulfillment of third semester the students have to
take a summer training of 6 to 7 weeks at any company and prepare a
project report on the basis of that practical experience.

Indian economy is growing at a considerable rate. The growth of GDP in


India is 8% per annum. The major sector contributing to the growth of
GDP is service sector and it is approximately 63% to GDP. Banking is one
of the main pillars of service sector. So I have decided to take exposure of
banking sector by taking practical training at KOTAK MAHINDRA
BANK which is one of the reputed private banks.

The aim of KOTAK MAHINDRA BANK is customization & people


cantered banking. Customized banking system can be achieved by
provided what customer actually wants. So we want to check weather
KOTAK MAHINDRA BANK is successful or not. As a part of this study I
have decided to prepare a project report on “MARKET STUDY &
CUSTOMER MAPPING FOR BANKING PRODUCTS” PROVIDED BY
KOTAK MAHINDRA BANK.

The study of this topic is helpful to me in analyzing customer satisfaction


& loyalty to the services which they are using at the KOTAK
MAHINDRA BANK. This study will also be helpful to us in analyzing the
information about what change customer want from the existing services.
This report also gives me the overall satisfaction level of customer from
the KOTAK MAHINDRA BANK & how the customers are loyal to the
bank. This report also includes graphical representation wherever it feels
necessary. Finally, it is indeed excellent opportunity for us to present this
report and a matter of esteem honors itself. After successful completion of
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training it is golden experience for me of banking sector. And I also know
how the different departments are working.

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ACKNOWLEDGEMENT

First of all I am thankful to KOTAK MAHINDRA BANK and Branch


Manager Mr. Pramod Chauhan for giving me permission to take the
summer training. I would also like to thank the staff members of the bank
for providing us information about the different departments of the bank. I
would like to thank our Centre Head Mr. Manish Amin of NIS
ACADEMY for his guidance and kind support as well as our project guide
Mrs. Nisha Kurup for their valuable guidance and experience.

Finally I am glad to thank our all faculties who have provided me


substantial guidance & support in preparation of this project. This successful
completion of this project could not have been possible without their co-
operation and support. I would also like give some share of thanks to my
friends for their support.

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EXECUTIVE SUMMARY

Executive summary is a term used in business for a short document that


summarizes a longer report,

It will usually contain a brief statement of the problem or proposal covered


in the major document(s), background information, concise analysis and
main conclusions. It is intended as an aid to decision making by business
managers.

An executive summary differs from an abstract in that an abstract will


usually be shorter and is intended to provide a neutral overview or
orientation rather than being a condensed version of the full document.
Abstracts are extensively used in academic research where the concept of
the executive summary would be meaningless.

This project report is based on the NRI Banking Services provided by the
Kotak Mahindra bank. Three major criteria’s are undertaken for finding
the customer opinion i.e. people, process and physical evidence. As there
was a limitation of time and the project is too broad we have prepared the
project report in group of two. As Kotak Mahindra bank is a service firm
we have selected the above mentioned criteria’s. I have selected the
banking sector because in India banking is one of the most growing sectors
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and there are many future opportunities are there. The banking sector of
India is one of the least affected by the slowdown all over the world
because it strong framework and regulation.

Our project is mainly based on the research but for some aspects secondary
data is also being included from the websites and the books. As it is
research project we have undergone one survey of around 1200
respondents within ANAND district to find the customer opinion of NRI
services provided by the Kotak Mahindra bank. We have selected the V V
Nagar branch of the Kotak Mahindra bank as our territory of research. A
well designed questionnaire was formed of 7 questions for collecting the
data. The exploratory research design is undertaken and the data is being
collected by field work and telephone. Without replacement and non-
random sampling method is being used. Our target population was
customers coming at bank and the corporate salary accounts.

We have also included all the information regarding the 7 Ps of the Kotak
Mahindra bank which will include all the information of Kotak Mahindra
bank related products, pricing, promotional schemes, people, various
processes, and the physical evidence facilities. All these data is being
collected from the secondary sources.

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COMPANY PROFILE

The Kotak Mahindra group is a financial organization established in 1985


in India. It was previously known as the Kotak Mahindra Finance Limited,
a non-banking financial company. In February 2003, Kotak Mahindra
Finance Ltd, the group's flagship company was given the license to carry
on banking business by the Reserve Bank of India (RBI). Kotak Mahindra
Finance Ltd. is the first company in the Indian banking history to convert
to a bank.

The bank is headed by K.M. Gherda as Chairman and Uday Kotak as


Executive Vice Chairman & Managing Director. Shankar Acharya is the
chairman of board of Directors in the company. The Bank has its registered
office at Nariman Bhavan, Nariman Point, Mumbai.

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Mr. K.M. Gherda Chairman
Mr. Uday Kotak Executive Vice Chairman & Managing
Director
Mr. Anand Mahindra
Mr. Cyril Shroff
Mr. Pradeep Kotak
Dr. Shankar Acharya
Mr. Shivaji Dam
Mr. Ajay Sondhi

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Mr. C. Jayaram Executive Director
Mr. Dipak Gupta Executive Director
Ms. Bina Chandarana Secretary & Senior Vice President

…….ORGANISATION CHART…….

INTRODUCTION OF BANKING SECTOR IN


INDIA

The Indian Banking industry, which is governed by the Banking


Regulation Act of India, 1949 can be broadly classified into two major
categories, non-scheduled banks and scheduled banks. Scheduled banks
comprise commercial banks and the co-operative banks. In terms of
ownership, commercial banks can be further grouped into nationalized
banks, the State Bank of India and its group banks, regional rural banks
and private sector banks (the old/ new domestic and foreign). These banks
have over 67,000 branches spread across the country.

The first phase of financial reforms resulted in the nationalization of 14


major banks in 1969 and resulted in a shift from Class banking to Mass
banking. This in turn resulted in a significant growth in the geographical
coverage of banks. Every bank had to earmark a minimum percentage of
their loan portfolio to sectors identified as “priority sectors”. The
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manufacturing sector also grew during the 1970s in protected environs and
the banking sector was a critical source. The next wave of reforms saw the
nationalization of 6 more commercial banks in 1980. Since then the
number of scheduled commercial banks increased four-fold and the
number of bank branches increased eight-fold.

After the second phase of financial sector reforms and liberalization of the
sector in the early nineties, the Public Sector Banks (PSB) s found it
extremely difficult to compete with the new private sector banks and the
foreign banks. The new private sector banks first made their appearance
after the guidelines permitting them were issued in January 1993. Eight
new private sector banks are presently in operation. These banks due to
their late start have access to state-of-the-art technology, which in turn
helps them to save on manpower costs and provide better services.

During the year 2000, the State Bank of India (SBI) and its 7 associates
accounted for a 25 percent share in deposits and 28.1 percent share in
credit. The 20 nationalized banks accounted for 53.2 percent of the
deposits and 47.5 percent of credit during the same period. The share of
foreign banks (numbering 42), regional rural banks and other scheduled
commercial banks accounted for 5.7 percent, 3.9 percent and 12.2 percent
respectively in deposits and 8.41 percent, 3.14 percent And 12.85 percent
respectively in credit during the year 2000.

Banking in India has its origin as early as the vedic period. It is believed
that the transistion from money lending to banking must have occurred
even before Manu, the great Hindu Jurist, who has devoted a section of his
work to deposits and advances and laid down rules relating to rates of
interest. During the Mogul period, the indegenous bankers played a very
important role in lending money and financing foreign trade and
commerce. During the days of the East India Company, it was the turn of
the agency houses to carry on the banking business. The General Bank of

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India was the first Joint Stock Bank to be established in the year 1786. The
others which followed were the Bank of Hindustan and the Bengal Bank.
The Bank of Hindustan is reported to have continued till 1906 while the
other two failed in the meantime.

In the first half of the 19th century the East India Company established
three banks; the Bank of Bengal in 1809, the Bank of Bombay in 1840 and
the Bank of Madras in 1843. These three banks also known as Presidency
Banks, were independent units and functioned well. These three banks
were amalgamated in 1920 and a new bank, the Imperial Bank of India
was established on 27th January 1921. With the passing of the State Bank
of India Act in 1955 the undertaking of the Imperial Bank of India was
taken over by the newly constituted State Bank of India. The Reserve Bank
which is the Central Bank was created in 1935 by passing Reserve Bank of
India Act 1934. In the wake of the Swadeshi Movement, a number of
banks with Indian management were established in the country namely,
Punjab National Bank Ltd, Bank of India Ltd, Canara Bank Ltd, Indian
Bank Ltd, the Bank of Baroda Ltd, the Central Bank of India Ltd. On July
19, 1969, 14 major banks of the country were nationalised and in 15th
April 1980 six more commercial private sector banks were also taken over
by the government. Today the commercial banking system in India may be
distinguished into following sectors:

.Public Sector Banks..


State Bank of India and its associate banks called the
State Bank group
20 nationalised banks
Regional Rural Banks mainly sponsored by Public
Sector Banks

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..Private Sector Bank..
 Old generation private banks
 New generation private banks
 Foreign banks in India
 Scheduled Co-operative Banks
 Non-scheduled Banks

..Co-operative Banks..
The co-operative banking sector has been developed in the
country to the suppliment the village money lender. The co-
operatiev banking sector in India is divided into 4 components

 State Co-operative Banks


 Central Co-operative Banks
 Primary Agriculture Credit Societies
 Land Development Banks
 Urban Co-operative Banks
 Primary Agricultural Development Banks
 Primary Land Development Banks
 State Land Development Banks

..Development Banks..

 Industrial Finance Corporation of India (IFCI)


 Industrial Development Bank of India (IDBI)
 Industrial Credit and Investment Corporation of India (ICICI)
 Industrial Investment Bank of India (IIBI)
 Small Industries Development Bank of India (SIDBI)

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 SCICI Ltd.
 National Bank for Agriculture and Rural Development (NABARD)
 Export Import Bank of India
 National Housing Bank

CURRENT SCENARIO

The industry is currently in a transition phase. On the one hand, the PSBs,
which are the mainstay of the Indian Banking system, are in the process of
shedding their flab in terms of excessive manpower, excessive non-
Performing Assets (Npas) and excessive governmental equity, while on the

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other hand the private sector banks are consolidating themselves through
mergers and acquisitions.

PSBs, which currently account for more than 78 percent of total banking
industry assets are saddled with NPAs (a mind-boggling Rs 830 billion in
2000), falling revenues from traditional sources, lack of modern
technology and a massive workforce while the new private sector banks
are forging ahead and rewriting the traditional banking business model by
way of their sheer innovation and service. The PSBs are of course
currently working out challenging strategies even as 20 percent of their
massive employee strength has dwindled in the wake of the successful
Voluntary Retirement Schemes (VRS) schemes.

Private sector Banks have pioneered internet banking, phone banking,


anywhere banking, and mobile banking, debit cards, Automatic Teller
Machines (ATMs) and combined various other services and integrated
them into the mainstream banking arena, while the PSBs are still grappling
with disgruntled employees in the aftermath of successful VRS schemes.
Also, following India’s commitment to the W To agreement in respect of
the services sector, foreign banks, including both new and the existing
ones, have been permitted to open up to 12 branches a year with effect
from 1998-99 as against the earlier stipulation of 8 branches. Talks of
government diluting their equity from 51 percent to 33 percent in
November 2000 have also opened up a new opportunity for the takeover of
even the PSBs. The FDI rules being more rationalized in Q1FY02 may
also pave the way for foreign banks taking the M&A route to acquire
willing Indian partners.
Meanwhile the economic and corporate sector slowdown has led to an
increasing number of banks focusing on the retail segment. Many of them
are also entering the new vistas of Insurance. Banks with their phenomenal
reach and a regular interface with the retail investor are the best placed to
enter into the insurance sector. Banks in India have been allowed to

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provide fee-based insurance services without risk participation invest in an
insurance company for providing infrastructure and services support and
set up of a separate joint-venture insurance company with risk
participation.

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THERE ARE SEVERAL GOOD REASONS FOR
INVESTING IN INDIA

• One of the largest economies in the world.


• Strategic location - access to the vast domestic and South Asian
market.
• A large and rapidly growing consumer market up to 300 million
people; constitute the market for branded consumer goods - estimated to be
growing at 8% per annum. Demand for several consumer products is growing
at over 12% per annum.
• Foreign investment is welcome; approval is required but is automatic
in sixty categories of Industries.
• Skilled man-power and professional managers are available at
competitive cost.
• One of the largest manufacturing sectors in the world, spanning almost
all areas of manufacturing activities.
• One of the largest pools of scientists, engineers, technicians and
managers in the world.
• Rich base of mineral and agricultural resources.
• Long history of market economy infrastructure
• Sophisticated financial sector.
• Vibrant capital market with over 9,000 listed companies and market
capitalisation of US$ 154 billion (March,1996)
• Well-developed R&D infrastructure and technical and marketing
services.
• Policy environment that provides freedom of entry, investment,
location, choice of technology, production, import and export.
• Well balanced package of fiscal incentives.
• A sophisticated legal and accounting system.

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• English is widely spoken and understood.
• Rupee is convertible on Current Account at market determined rate.
• Free and full repatriation of capital, technical fee, royalty and
dividends.
• Foreign brand names are freely used. No income tax on profits derived
from export of goods.
• Complete exemption from Customs Duty on industrial inputs and
Corporate Tax Holiday for five years for 100 per cent Export Oriented units
and units in Export Processing Zones.
• Corporate Tax applicable to the foreign companies of a country with
which agreement for avoidance of Double Taxation exists, can be one which
is lower between the rates prevailing in any one of the two countries.

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…KOTAK MAHINDRA BANK…

Kotak Mahindra is one of India's leading financial institutions, offering complete


financial solutions that encompass every sphere of life. From commercial banking,
to stock broking, to mutual funds, to life insurance, to investment banking, the group
caters to the financial needs of individuals and corporates.

The group has a net worth of over Rs.1,550 crore and employs over 3,000
employees in its various businesses. With a presence in 59 cities in India and offices
in New York, London, Dubai and Mauritius, it services a customer base of over
5,00,000.

Kotak Mahindra has international partnerships with Goldman Sachs (one of the
world's largest investment banks and brokerage firms), Ford Credit (one of the
world's largest dedicated automobile financiers) and Old Mutual (a large insurance,
banking and asset management conglomerate).

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……………..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 name to Kotak Mahindra
Finance Limited

Kotak Mahindra is among the leading financial organization of India, with a range
of financial services that caters to all customers' day to day requirements. Their
products spans from commercial banking, to stock broking, to mutual funds, to life
insurance, to investment banking – diverse needs of individuals and corporates are
catered to.

The Kotak group has a net worth of more than Rs. 6,799 crore with the branches,
franchisees, representative offices and satellite offices spread across cities and towns

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in India. They also have global offices in New York, London, San Francisco,
Dubai, Mauritius and Singapore. The Kotak Group offers their services to
approximately 6.4 million customers.

The Kotak Mahindra Group got incepted in 1985 in the form of Kotak Capital
Management Finance Limited, being promoted by Uday Kotak, Sidney A. A. Pinto
and Kotak & Company. A stake in the group was taken in by industrialists Harish
Mahindra and Anand Mahindra and this is the time when the company changed its
name to Kotak Mahindra Finance Limited.

..HIGHLIGHTS OF KOTAK MAHINDRA BANK..


Market Share Of Key Players In The Indian Aviation Sector

Kotak Mahindra Finance Limited started off with Bill Discounting


1986

Kotak Mahindra Finance Limited makes its foray into the Lease and
1987 Hire Purchase market

The Auto Finance division starts


1990

The Investment Banking Division starts off. They take over FICOM,
1991
one of India's largest financial retail marketing networks
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Penetrates into the Funds Syndication sector
1992

The brokerage and distribution businesses of the Group gets


incorporated into a separate company - Kotak Securities, whereas the
1995 investment banking arm is incorporated into a separate company -
Kotak Mahindra Capital Company

The Auto Finance Business of the Group is hived off into a separate
company - Kotak Mahindra Prime Limited. Kotak Mahindra takes up
a major stake in Ford Credit Kotak Mahindra Limited to finance Ford
1996
vehicles. They launch Matrix Information Services Limited, marking
the group's entry in information distribution

Kotak Mahindra Asset Management Company is incepted and they


1998
enter into the mutual fund market.

Kotak Mahindra makes a tie with Old Mutual plc. For their Life
Insurance business. Kotak Securities launches the site (now
2000
www.kotaksecurities.com). Kotak Mahindra Venture Capital Fund is
formed and the private equity business of the group commences.

Matrix is sold to Friday Corporation and the Insurance Services is


2001
launched.

2003 Kotak Mahindra Finance Ltd. gets converted into a commercial bank.

2004
A private equity fund (India Growth Fund) is launched.

2005 Kotak Group launches a real estate fund

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The Group buys 25% stake held by Goldman Sachs in Kotak
2006
Mahindra Capital Company and Kotak Securities

THE JOURNEY SO FAR…

KEY GROUP COMPANY AND THEIR BUSINESS.


The Kotak Mahindra Group’s flagship company, Kotak Mahindra Finance Ltd
which was established in 1985, was converted into a bank – Kotak Mahindra Bank
Ltd in March 2003 becoming the first Indian company to convert into a Bank. It’s
banking operations offers a central platform for customer relationships across the
group’s various businesses. The bank has a presence in the Commercial Vehicles,
Retail Finance, Corporate Banking and Treasury and has recently entered the
Housing Finance segment.

Kotak Mahindra Capital Company Limited (KMCC), India's premier Investment


Bank and a Primary Dealer (PD) approved by the RBI, is a strategic joint venture
between Kotak Mahindra Bank Limited and the Goldman Sachs Group, LLP.

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KMCC's core business areas include Equity Issuances, Mergers & Acquisitions,
Structured Finance and Advisory Services, Fixed Income Securities and Principal
Business.

…….KOTAK SECURITIES…..
Kotak Securities Ltd., a strategic joint venture between Kotak Mahindra Bank
Limited and the Goldman Sachs Group, LLP. Is one of India's largest brokerage and
securities distribution house in India? Over the years Kotak Securities has been one
of the leading investment broking houses catering to the needs of both institutional
and retails investor categories with presence all over the country through franchisees
and co-coordinators. Kotak Street - the retail arm of Kotak Securities Ltd., offers
online (through www.kotakstreet.com) and offline services well-researched
expertise and financial products to the retail investors.

….KOTAK CAR FINANCE….


Kotak Mahindra Primus Limited (KMP) is a joint venture between Kotak Mahindra
Bank Ltd and Ford Credit International Inc., (USA) formed to finance all non-Ford
passenger vehicles. KMP is one of the country’s leading players in car finance and
is focused to financing and supporting automotive and automotive related
manufacturers, dealers and retail customers.

….KOTAK MUTUAL FUND....


Kotak Mahindra Asset Management Company (KMAMC), a subsidiary of Kotak
Mahindra Bank, is the asset manager for Kotak Mahindra Mutual Fund (KMMF).
KMMF manages funds in excess of Rs 4000 crores and offers schemes catering to
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investors with varying risk- return profiles. It was the first fund house in the country
to launch a dedicated gilt scheme investing only in government securities.

Kotak Mahindra Old Mutual Life Insurance Limited


Kotak Mahindra Old Mutual Life Insurance Limited, is a joint venture between
Kotak Mahindra Bank Ltd. and Old Mutual plc. Kotak Life Insurance helps
customers to take important financial decisions at every stage in life by offering
them a wide range of innovative life insurance products, to make them financially
independent.

THE JOURNEY OF KOTAK MAHINDRA BANK


2003

• -Madison Communications has won the Rs.30cr Kotak Mahindra's


media
• AOR Account.

• -The proposal of changing the name from 'Kotak Mahindra Finance


Ltd'
• To 'Kotak Mahindra Bank Ltd' and the proposal to change the
• Authorized capital from 100, 00, and 00,000 divided into 10, 00, and
00,000
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• Equity shares of Rs.10 each has been approved by the company
shareholders.

• -RBI has granted license to Kotak Mahindra Finance Ltd to embark


on Its Banking business.

• -O & M has got the creative account of Kotak Mahindra Bank, and
has said to be working professionally.

• -Kotak Mahindra Bank has received a lot of interest from portfolio


• Investors, private equity investors and potential strategic investors.

• -Kotak Mahindra Bank has entered into an ATM sharing agreement


with UTI Bank, which would allow KMB's customer free access to
around 800 ATM's.

• -Kotak Mahindra Bank has started its operations in New Delhi by


• Inaugurating a Branch Connaught place office.

• -Dr.Shankar Acharya has been appointed as the Additional Director


to the board of the bank.

• -The Board of Kotak Mahindra Bank Ltd accepts the resignation of


• Mr.S.A.A Pinto and Mr.M.R Punja as the Directors of the Bank.

• -Kotak Mahindra Investment Co Ltd. PCC a subsidiary of Kotak


• Mahindra Capital Company has constituted itself from a private
company to a public limited company and has changed
• Its name to 'Global Investment Opportunities Fund Ltd'.

• -Kotak Mahindra bank has unveiled several home finance products


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• options which includes:
• Home loan, Home equity Loan, Home loan transfer and Home
improvement loans.

• --Kotak Mahindra Bank launches online remittance services called,


• FUNDS to HOME
• For Non-resident Indians.

• -In response to the repo rate cut by the RBI, the Kotak Mahindra
Bank has reduced its lending rates in home loans.

• -Kotak Mahindra Bank Limited has informed that the equity shares
of the Bank have been delisted from the Delhi Stock Exchange
Association Ltd w.e.f December 10, 2003.

• 2004

• -Kotak Mahindra Bank Limited has informed that the Bank's equity
• Shares will be delisted from The Stock Exchange, Ahmedabad with
• Effect from January 20, 2004.

• -Kotak Mahindra Bank sets up branch in Surat.

• -Kotak Mahindra Mutual Fund has launched Kotak Opportunities,


an
• Open-ended equity growth scheme

• -Kotak Mahindra Bank inks pact with Reuters

2005

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• -Kotak Mahindra Bank purchases stressed assets worth Rs 1,000 cr

• -Kotak Bank joins hands with IndianNGOs.com

• -Kotak Mahindra Bank invests Rs 25 cr in BFW

2006

• -Kotak Mahindra joins hand HDFC Bank to share ATMs.

• -Kotak Mahindra to buy out Goldman Sachs' stake in JVs

• -Kotak Mahindra Bank sets up branch in Valsad

• -Kotak Mahindra subsidiary acquires Ford Credit's auto portfolio

2007

• -Kotak Mahindra Bank Launches Home Banking, Improves


Banking
• Experience

• -Kotak Mahindra Bank Launches Salary 2 Wealth

• -Kotak Mahindra Bank Launches Kotak Gold Debit Card

• -Kotak Mahindra Bank Ties up with Taxshax.com, Simplifies Filing


of IT Returns

2008

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• Kotak Mahindra Bank launched credit cards for its customers.

2009

• -Kotak entered into tie up with Russia's top investment bank

• -Kotak Mahindra Bank Wins IT Team of the Year for 3rd


• Consecutive Time at the Banking Technology Awards 2008

..SWOT ANALYSIS OF KOTAK MAHINDRA


BANK..
1. STRENGTHS:

• Professional management

• Strong technology,

• Well capitalized,

• Comprehensive cash management system

• Total Deposits Rs15, 645 crore

• Net Advances Rs16, 625 crore

2. WEAKNESS:

• Latecomers

• Less Promotional Activities

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3. OPPORTUNITIES:

• Have best services & product compare to other bank

4. THREATS:

• Capital Market slow-down

• Other better Saving Facility by other Competitor

• Rising Rates

• investment option available (like Insurance, Mutual fund, Real-


estate, Gold)

• Government Rules And Regulation

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……………..NRIs………………..

NRIs
An Indian Citizen who stays abroad for employment/carrying on business
or vocation outside India or stays abroad under circumstances indicating
an intention for an uncertain duration of stay abroad is a non-resident. Non
–Resident foreign citizens of Indian Origin are treated on par with non-
resident Indian Citizens (NRIs) for the purpose of certain facilities.

Main categories of NRIs


The following are the main three categories of NRIs:-

(i) Indian citizens who stay abroad for employment or for carrying on a
business or Vocation or any other purpose in circumstances indicating an
indefinite period of stay abroad.

(ii) Indian citizens working abroad on assignment with foreign government


agencies like United Nations Organization (UNO), including its affiliates,
International Monetary Fund (IMF), World Bank etc.

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(iii) Officials of Central and State Government and Public Sector
undertaking deputed abroad on temporary assignments or posted to their
offices, including Indian diplomat missions, abroad.

For Non Resident Indians and Persons of Indian Origin we have a


specially designed product range for banking and investments. Choose a
product that best suits your investment objectives, be it moderate return,
quick liquidity or capital preservation. We offer

• Diversified investment options


• Power packed NRI Accounts and Deposits
• Remittance and Foreign Exchange Services
• Insurance
• Portfolio Investment schemes under FEM

BANKING:
NRO Rupee Savings
Bank and easily access your Indian income and earnings with an NRO
Savings account. You can also easily credit your account from anywhere
in the world.

What makes the NRO Rupee Savings account different?

• Deposits from any source in India and abroad are accepted subject to
repatriation restrictions for foreign currency
• Pension, dividend, rent, and other current income can be repatriated
on completion of documentation
• Transfer amounts up to a limit of USD 1 million each financial year
on completion of documentation

• Settle your International Credit Card dues through your NRO


account for cards issued by banks in India

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• The principal amount in an NRO Account is completely tax free
while the interest earned is taxed* at 30% plus applicable
surcharge and education cess (interest income less than Rs. Ten
Lakhs)

*Tax Deducted at Source (TDS) certificates are issued.

NRE Rupee Savings


Manage your overseas earnings with a totally tax-free, completely
repatriable NRE Savings account. Benefit from an account designed to
help you earn more from your Rupee savings in India.

What makes the NRE Rupee Savings account different?

• Deposits from a local source accepted only if reparable


• No charge deposits of funds received from abroad as Traveler's
cheques or foreign currency brought through normal banking
channels into your account
• Accepts maturity proceeds of investments purchased from even
NRE / FCNR Accounts
• The principal and interest earned in an NRE Account are completely
tax free and exempt from Income Tax in India

Rupee Advantage Plan


Earn higher returns with an FCNR Deposit combined with a forward cover
in INR under the Rupee Advantage Plan. Get this plan and add on to the
benefits of the FCNR deposit.

What makes the Rupee Advantage Plan different?

•Involves a forward contract on your FCNR Deposit in USD / GBP /


EURO / JPY

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•Deposit a minimum of USD 25,000 or equivalent in any of the four
currencies
•Deposit for a period of 1 year 1 day for higher interest

*Tax Deducted at Source (TDS) certificates are issued.

Please note: Rates and Yields offered are provisional and subject to
change at any time without prior notice. Please contact your Branch or
Relationship Manager to confirm the yield before actual placement of
funds.

FCNR Deposits
Enjoy attractive returns from a fully reparable, zero tax liability FCNR
Deposit account in various currencies. Protect your money from exchange
rate fluctuations by maintaining your FCNR deposit in international
currencies.

What makes the FCNR Deposit different?

• Rupee conversion to Foreign currency before booking as an FCNR


deposit
• Deposits from a local source accepted only if reparable
• No charge deposits of funds received from abroad as Traveler's
cheques or foreign currency brought through normal banking
channels into your account
• Accepts maturity proceeds of investments purchased from even
NRE / FCNR Accounts
• The principal and interest earned in an NRE Account are completely
tax free and exempt from Income Tax in India

*Tax Deducted at Source (TDS) certificates are issued.

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NRO Term Deposits
Maximize your earnings in India and get easy access to your funds
anywhere with NRO TDs. Carry out your transactions in India through
your Term Deposits held in Indian Rupees.

What makes the NRO Rupee Term Deposit different?

• Deposits from any source in India and abroad are accepted subject to
repatriation restrictions for foreign currency
• Pension, dividend, rent, and other current income can be repatriated
on completion of documentation
• Transfer amounts up to a limit of USD 1 million each financial year
on completion of documentation
• Settle your International Credit Card dues through your NRO
account for cards issued by banks in India
• The principal amount in an NRO Account is completely tax free
while the interest earned is taxed* at 30% plus applicable
surcharge and education cess (interest income less than Rs. Ten
Lakhs)

*Tax Deducted at Source (TDS) certificates are issued.

Gain with the Kotak Max Yield NRO Deposit!


Now you can earn more from your savings with a Kotak Mahindra Bank
Max Yield NRO Deposit. Benefit from lowered tax rates on your Kotak
Max Yield NRO Fixed Deposit under the Double Taxation Avoidance
Agreement (DTAA) of India with these countries

Rate of TDS on interest forRate of TDS on interest for


Country Max Yield NRO DepositRegular NRO Deposit(without
(with DTAA benefit) DTAA benefit)
US 15% 30% plus surcharge and cess
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UK 15% 30% plus surcharge and cess
Singapore 15% 30% plus surcharge and cess
South Africa 15% 30% plus surcharge and cess
Belgium 15% 30% plus surcharge and cess
Kenya 15% 30% plus surcharge and cess
Saudi Arabia 15% 30% plus surcharge and cess
UAE 15% 30% plus surcharge and cess
Australia 15% 30% plus surcharge and cess
Canada 15% 30% plus surcharge and cess

**Apart from basic account opening documentation, to avail of the DTAA


benefit, a simple declaration stating that you are eligible for the DTAA
provision will be required.

NRE Term Deposits


Benefit from NRE TDs with no tax liability, complete repatriability and a
host of value added services. Invest in this term deposit to earn more from
your India savings.
What makes the NRE Rupee Term Deposit different?

• Deposits from a local source accepted only if repatriable


• No charge deposits of funds received from abroad as Traveler's
cheques or foreign currency brought through normal banking
channels into your account
• Accepts maturity proceeds of investments purchased from even
NRE / FCNR Accounts
• The principal and interest earned in an NRE Account are completely
tax free and exempt from Income Tax in India

P O Box Services

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Sending your documents to India from the US or UK is now convenient
and cost-effective!
Sending your banking documents to us is now a matter of ease. Simply
send a local courier to the address mentioned below.
Your documents shall be picked up twice a week. Please do not include
cheques or any other financial instruments, Kotak Mahindra Bank reserves
the right to destroy such instruments or return them back to you.

TO KOTAK MAHINDRA BANK, INDIA - NRI SERVICES


USA
BOM/USA/1217614/KOT
SPRING, P.O. BOX 688, BUFFALO,
NY 14240-0688, UNITED STATES OF AMERICA

UK
BOM/UK/1217614/KOT
P.O BOX NO. 66, HOUNSLOW,
TW59RT, UNITED KINGDOM

TO SEND YOUR DOCUMENTS TO KOTAK MAHINDRA


BANK, INDIA:
a. Print out this request letter- PO Box request form
b. Fill it, sign it and attach it with your documents
c. Send it by local, ordinary post to the P O Box location mentioned above.
Do not use a courier or registered post service.

Terms & Conditions


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•Kotak Mahindra Bank Ltd., India shall not be responsible for any
loss in transit or any monetary loss including loss on account of
change in exchange rates, interest rates, deposit value date etc.
arising due to the time elapsed due to return of the monetary
instrument. Kotak Mahindra Bank Ltd. India is only availing of
the services provided by Quantum Mail Logistics India Pvt. Ltd,
in the aforesaid countries

•Twice a week, Quantum Mail Logistics India Pvt. Ltd India (the
service provider), opens the P.O. Box and collects all packets /
envelopes and couriers all documents to the Quantum Mail
Logistics India Pvt. Ltd India Office from where they are sent to
Kotak Mahindra Bank, NRI Services.

•Kotak Mahindra Bank Ltd. is not responsible for any loss in


document arising out of the documents sent to a wrong address or
documents lost in transit before reaching the Kotak Mahindra
Bank Ltd. P.O. Box

•Confidentiality of the documents send by the customer would be


maintained

•The users of the Post Box (PB) facility are availing the service at
their own risk
• Neither Kotak Mahindra Bank Ltd. nor Quantum Mail Logistics
India Pvt. Ltd India will be responsible or liable to the user or any
third party for the "Envelopes/Consignments or its Contents"
(collectively referred as "Consignments") during the transit from
the user to the PB

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•On receipt of the Consignments in the PB, Quantum Mail Logistics
India Pvt. Ltd shall be responsible for the Consignment to the user
till it is transshipped and delivered to Kotak Mahindra Bank Ltd. -
CPC NRI Cell, Mumbai. By availing the service of PB the user
shall be deemed to have agreed to entrust the transshipment to
India in his sole risk and discretion to G3 worldwide India and
Kotak Mahindra Bank Ltd. is not liable or responsible for any loss
or destruction of the Consignments in the hands of Quantum Mail
Logistics India Pvt. Ltd.

•User is aware that Kotak Mahindra Bank Ltd. will not process the
documents without furnishing this letter duly filled with and in the
event no letter or incomplete information are furnished Kotak
Mahindra Bank Ltd. is neither responsible to return the documents
to the user or to keep it in safe custody
• In the event the users instruction/s cannot be carried out owing to
any discrepancy or otherwise Kotak Mahindra Bank Ltd. may
inform the user by email to the email ID furnished by the user.
Kotak Mahindra Bank Ltd. is not responsible for non-receipt of
such email on account of any incorrect email ID or systemic error
or non-acceptance by the computer system of the user

• Kotak Mahindra Bank Ltd. shall in its sole discretion destroy the
documents after two months of receipt without any further reference
to the user and the user agrees that Kotak Mahindra Bank Ltd. is not
liable or responsible to either user or any other person for such
destruction

• User agrees that he shall be solely responsible for the contents of the
Consignment and shall indemnify Kotak Mahindra Bank Ltd. for
any loss or damage suffered to it on account of handling the contents

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or merely the letter being addressed to it in view of legal, regulatory
or contractual requirements of the user.

Access India Debit Card


Enjoy seamless India access through your NRO Account whenever you
visit home. Use this ATM plus debit card to carry out your India
transactions when you visit home.

Benefits of the Access India Card

•Access to any VISA ATM and stores accepting VISA in India


•Gift an Add-on Card to a person of your choice (above 18 years) for
their personal use. Specify a daily withdrawal limit and link it with
your account
•Stay updated on your account status with SMS alerts

Eligibility
•NRO Savings / Current Account

Global Debit Card


Benefit from an International ATM plus debit card with VISA Power
across the world. Access your account as you travel across countries and
enjoy the benefits of the Kotak Global Debit Card.

Benefits of the Global Debit Card

•Worldwide access to any VISA ATM and stores accepting VISA


worldwide
•Specify a daily withdrawal limit and link it with your account
•Stay updated on your account status with SMS alerts

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Eligibility
•NRE Savings / Current Account

Phone Banking
Get personalized service round the clock at our 24 hr Customer Contact
Center. Use the Kotak Mahindra Bank toll free number to access your
account anywhere you go.

8 Benefits of Phone Banking

•Instruct a Kotak officer to transact once you have the single or


unconditional signing authority on your account
•View account balance, activity, transfer progress and more
•Cheque book request and account statements
•Request the latest interest and exchange rates
•State standing instructions or stop cheque payments
•Request Transfer of funds between accounts (NEFT)
•Open a Term Deposit or get information
•Inquire transaction status, Demat status of securities

Online Banking

Net Banking for easy access to your deposit, demat and investment
accounts 24x7. View and transact with a single or unconditional signing
authority on your account.

8 Benefits of Net Banking

• Log in with any of your Kotak Mahindra Bank NRI accounts


• View account balance, activity, transfer progress and more
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• View and update personal details
• Request for a cheque book, PIN and other enhanced features
• Transfer funds online between accounts (NEFT)
• Open a Term Deposit
• View securities available for Demat
• Inquire transaction status, Demat status of securities

Privy League

Kotak Mahindra Bank introduces Privy League, a premium banking


services offering financial solutions with exclusive benefits. Join the Privy
League to expand your lifestyle, grow your wealth, travel the world,
luxuriously and retire to comfort while you meet your responsibilities.

Privy League Membership:

•Available to Resident Individuals and Non Resident Individuals


•Members above the age of 18 years only
•Choice of two plans based on your Financial Objective and Portfolio
o Gold Plan for Relationship Value* of INR 10 Lakhs
o Platinum Plan at a Relationship Value* of INR 25 Lakhs

Note: Relationship Value comprises of your balance across Savings


Accounts, Deposits and Investments. Privy League members are required
to maintain a Savings Account with an Average Quarterly Balance (AQB)
of INR Rs. 50,000.

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Special Privileges for Privy League Customers:
Premium Banking: With Privy League you enjoy access to a range of
financial solutions with your bank account in addition to accelerated
customer service from your dedicated Relationship Manager.

Banking Privileges:

• Privy League Platinum Debit and ATM Card with flexi limit facility
and added waivers and offers
• Home Banking services like Bill Pay, Kotak Payment Gateway and
Investment Convenience
• Locker services across multiple locations (in select branches) at a
preferential price

• Kotak Gold Eternity offers on are Swiss-made, 24 - Carat pure,


99.99% Assay certified Gold coins and bars ranging from 5 to 100
gms
• Internet banking to access special offers, promotions and exclusive
benefits under the Privileges section
• Preferred Processing of banking transactions at all branch locations
• Special Fees and Charges on various services
• Tax Advisory Services through our tie-up with Sudit K. Parekh &
Co. and easy tax payments payable at a Kotak Mahindra Bank
branch itself

Lifestyle Updates: Experience the world of culture, sport and indulge


your choice of leisure activities with Privy League lifestyle offers.
Lifestyle Privileges:

• Dining benefits at the best restaurants in town


• Entertainment & Leisure Privileges with exclusive invites to movies,
premiers, theatrical plays, sporting events and more
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• Attend knowledge-based seminars, Tax Advisory or Investment
workshops, premium car test-drives and lifestyle product launches
• Convenience Offers like gifting services to your loved ones on
special days round the year from a choice of flowers, bouquets and
chocolates
• Travel and Holiday offers with tie ups for car rentals, travel
operators, hotels, rejuvenation centres and much more
• Concierge Services available with the VISA Platinum Card on travel
plans, business equipment, entertainment plans and other specialty
services courtesy of VISA

Note: Terms and Conditions applicable. Details of Lifestyle Privileges are


available under the Post Login section of Net Banking.

TRANSFERS
Direct Debit
Make a paperless transfer with just one click
Use this simple method to send home money from the comfort of home.
This online remittance facility uses the standard Automated Clearing
House (ACH) platform.

How you can register for Direct Debit

• Log on to FUNDS to HOME


• Register for Direct Debit
• Provide details
• Validate your account
• After 5 days, activate facility from a link in your FUNDS to HOME
account
• Send your remittance

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Get funds in your Kotak Mahindra Bank Account within 5 working days*
Demand Drafts will be delivered in 3 working days**

*5 working days after instructions have been received by us. Working


days- not including Saturdays, Sundays and Public Holidays in both
countries.
*3 days after receipt of funds at Kotak Mahindra Bank for Metros and
Non-Metros (not including Saturdays, Sundays and Public Holidays).
Wire Transfer
Send home money to your Kotak bank account
Make a direct transfer from your account abroad to Kotak Mahindra Bank
to send home money in the most secure manner.
REGISTRATION

Cheque
Send home money to your Kotak bank account
Now you can encash any cheques drawn on your Kotak Mahindra Bank
Account through your FUNDStoHOME account.

How to make a Cheque transfer

• Log on to FUNDS to HOME


• Provide cheque details
• Mail the instrument to
• PO Box 11448A - New York NY 10286 1448*
• This Lock Box address is mentioned in the deposit slip

Remittances from ME

Send home money to your Kotak bank account

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Transfer money at economical rates through the Exchange Houses and
Money Transfer Agents having an arrangement with Kotak Mahindra
Bank.
Make a cost-effective money transfer through agents across the Gulf,
North America, Europe, Asia and Australasia. This remittance in Indian
Rupees is specially designed to benefit NRIs in the Middle East.

How do I transfer money through a Kotak partner?

• Select the branch or designated associate outlet of your convenience.


• Wire Transfer

Use Kotak Mahindra Bank's wire transfer facility to make secure


international wire transfers from your bank account. You can move money
from your account to a Kotak Mahindra Bank account in India with ease.

What details do I need for a wire transfer?

• Kotak Mahindra Bank's Correspondent Bank Nostro account


number and SWIFT Code. Click here to see Correspondent Banks.
• The beneficiary's account number with Kotak Mahindra Bank
Branch.
• Specify the identification for your name and address in the
remittance message in this format to your overseas banker.
• State the purpose of the remittance with instructions for the Bank to
invest the funds. (To book an FCNR term deposit, mention it clearly
including the currency of deposit)
• Ensure mention of complete details in the message by the local
remitting bank.
• Kotak Mahindra Bank SWIFT Code : KKBKINBB

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NOTE: Kotak Mahindra Bank does not take any responsibility for delay
in receipt of funds from the Originating Bank due to incomplete
information.

Cheque
Write out a Cheque or demand draft favoring your Kotak Mahindra Bank
Account and leave the money transfer to us.

Remember! Check if the demand draft is valid and not


endorsed
Currency Turn Around Time for Transfer to beneficiary Account*
6 working ** days for USD instruments drawn on banks in
USD New York City.
14 working ** days otherwise.
Euro 10 working ** days
GBP 10 working ** days
SGD 21 working ** days
* From the date of credit to Kotak Mahindra Bank's nostro account.
** Excluding Saturdays, Sundays and Public Holidays

INVESTMENTS:
Investment Account
View your portfolio, receive alerts and do more in your Investment
account at your convenience. As a Kotak Mahindra Bank customer, you
can open your Investment account even with a zero balance.

Your Kotak Investment Account gives you more:

• Stay updated with a daily MF Portfolio statement

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• Link your Net Banking account with your MF purchases for filling
MF forms or cheques for every transaction
• Receive redemption proceeds directly in your Bank Ac
• View your Portfolio Statement for a consolidated report of all your
MF investments, across schemes, with latest NAV information,
updated returns status and more
• Get Mutual Fund Recommendations
• Choose between opening an online investment account with us on a
reparable or on a non-reparable basis*.

NOTE: As Per the regulatory framework, the investments for all existing
Kotak customers with an investment account are re-grouped into separate
investment accounts. The re-grouping is based on the Reparability status of
the Folios held to help you manage your investments efficiently.
*Online Mutual Fund investment services are available to NRIs in all
countries except those based in USA and Canada. NRIs based in UK can
register on visit to India

Recommendation
Earn more with your pick of mutual funds from a recommended list of
consistent and highly performing mutual funds. Kotak prepares a list of top
performing mutual funds for your reference every quarter.

How do you judge MF performance?


Kotak's comprehensive process accounts for both high returns and
consistency of returns to select the best performing Mutual Fund schemes.
The main criterion for selection is the Excess Return Potential Ratio to test
the performance consistency of the funds. The research includes keen
analysis across four time horizons, every 6 months. Some factors are:
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• Reward to Risk Analysis
• Portfolio Characteristics
• Corpus size

MF Assistance
Gain from expert advice and analysis at each step with Kotak Mahindra's
experienced research team. Find the MF option most suitable for you with
latest mutual fund communication like fact sheets from Kotak's team of
experts.

How we choose MFs on the Kotak advisory list?


The Kotak team of experts investigates:

• Asset Management Company's Investment philosophy


• Portfolio quality
• Risk-adjusted returns of the scheme

What does the advisory list include?


The Kotak MF advisory list ranges from Debt to Equity funds. These MFs
are selected from high performing schemes observed under reputed Mutual
Fund houses like Franklin Templeton, Reliance, Prudential ICICI and
others.

Demat Account
Invest in the Indian market through Kotak depository services with easy to
trade shares in the "demat" format. Do more with your investments
through Kotak Mahindra Bank's highly efficient depository service. Once
you consolidate your shares in a Demat account, you can trade all your
securities at your convenience.

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Why open a Kotak Demat Account?

• At Kotak Mahindra Bank, you pay the minimum service charges in


the market
• We take care of paper work like debt requirements of companies
(Issue of Commercial Paper, Certificate of Deposits, etc.) to us
• Your composite Demat Account can hold not just equity shares but
also Government Securities and bonds
• Get any query or assistance from a dedicated and trained Customer
Care Officer even while you transact

Portfolio Investment Services

You can now purchase equity shares and convertible debentures in India
under the Portfolio Investment Scheme (PINS). With the Kotak Group of
financial services, your transactions are seamless across accounts. It is
easier than ever to invest and earn from the Indian secondary market
through a PINS account designed for NRIs by the Reserve Bank of India.

How can I open a PINS account?


Open a PINS account

• at any of these RBI Designated Branches


• Call Kotak 24x7 Customer Care
• Mail us at nriservices@kotak.com
• Visit any Kotak Branch

NOTE: Online PINS investment services are available to NRIs in all


countries except those based in USA and Canada. NRIs based in non GCC
countries can register on visit to India.

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Kotak Term and Preferred Term Plans:
Now you can profit from a pure risk cover policy that also offers life cover
at minimal costs. This plan helps you pay off your outstanding debts like a
mortgage, a home loan etc. The Kotak Preferred Term Plan offers special
premium rates for a sum assured of Rs.10 lakhs and above for non-
smokers and women. The policy is non-participating but has value added
benefits you can choose to gain with this plan.

How do you gain?

• Low cost insurance plan with high cover


• Special rates for women and non-tobacco users
• Flexibility in choice of Premium Payment
• Choose from - regular, single and limited premium payment options

Growth Plans
Choose the right insurance policy from a range of options

Kotak Smart Advantage Plan:


Make way for your future plans with the Kotak Smart Advantage policy
from Kotak Life Insurance. This market linked plan invests your savings
with 100% premium allocations to make your money grow consistently
over a long term.

How do you gain?

• Guaranteed returns of up to 275% on the first year premium, paid at


maturity
• Increased fund value with regular loyalty bonus during the term of
the policy
• Maximized earnings with 100%* Premium allocation from second
year onwards
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• Flexible choice of life cover
• Protection for your family and loved ones

*Applicable for premium sizes of Rs. 36,000 and above annually from
second year onwards.

Kotak Easy Growth Plan:


Earn more today with the market linked Kotak Easy Growth Plan with a
single premium option. This insurance plan meets the need for lifelong
security with a single payment through your choice of up to six fund
options.

How do you gain?

• One-time premium payment


• Life ling Investment benefit
• Choose from six fund options varying in growth and returns
• Increase investment by up to 25% of single premium paid
• Easy exit options with access to cash withdrawal

Kotak Capital Multiplier Plan:


See your investment multiply with the Kotak Capital Multiplier Plan. This
endowment plan allows your capital to grow in the market and also gives
you the flexibility to withdraw amounts whenever you require it.

How do you gain?

• Flexible extension of policy term beyond maturity


• Earn additional 10% above the original life-cover across the policy
term
• Withdraw plan maturity proceeds with a free ATM card

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• Increased fund value with regular loyalty bonus during the term of
the policy
• Add to your policy amount with top-up premiums

Savings Plans
Choose the right insurance policy from a range of options

Kotak Flexi Plan:


With this market-linked investment plan, you can provide for the future
and ensure protection for your family. The Kotak Flexi plan manages to
earn efficient returns over the long term while securing a Guaranteed
Maturity Value at the same time.

How do you gain?

• Grow your money with market highs and be risk safe during market
lows
• Choose from a wide range of funds per your risk capacity
• Select a Limited Premium or Regular premium payment option
• Increase your Investments any time with a premium top-up
• Enjoy easy liquidity through partial withdrawal of maturity proceeds

Kotak Endowment Plan:


Protect your family during contingencies while growing your savings
today. Kotak Endowment Plan is a participating plan that allows you to
earn over a long term through regular investment.

How do you gain?

• Earn from your savings and enjoy life cover


• Get extra bonuses on the plan
• Make a Limited premium payment per your convenience

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Kotak Premium Return Plan:
Get risk coverage and assured returns with the Kotak Premium Return
plan. You receive a certain amount of the premiums paid back depending
on the option you choose along with maturity benefits available.

How do you gain?

• Minimum premium payments


• Get back premiums paid depending on term of the plan
• Hassle free plan as it does not require a medical examination

Kotak Money Back Plan:


Earn back a percent of the amount assured in cash with the Kotak Money
Back Plan. This participating, savings plan gives you a life cover benefit
while allowing you a regular income every five years.

How do you gain?

• Minimum premium payments


• Benefit from guaranteed Additions on maturity
• Get a 7% increase in sum assured at the end of each year under
death ……benefit
• Enjoy bonuses from the plan

Kotak Safe Investment Plan II:


Benefit from a unit linked plan that earns through the capital market and
also offers risk cover. You can enjoy a Guaranteed Maturity Value where
you profit from the market highs but do not lose with market lows.

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How do you gain?

• Grow your money with market highs and be risk safe during market
lows
• Choose from a six fund options per your risk capacity
• Select a flexible risk cover option per your needs
• Increase your Investments any time with a premium top-up
• Enjoy easy liquidity through partial withdrawal of maturity proceeds

Kotak Retirement Income Plan:


Save for your old age with the Kotak Retirement Income plan with a
choice of "with cover" for life or "without cover."

How do you gain?

• Specify retirement age anytime between 45 yrs. and 65 yrs.


• Flexibility to opt for early retirement due to ill-health
• Increase investments with a premium top-up before retirement
• Increase your Investments any time with a premium top-up
• Get Automatic Cover Maintenance, under the "with cover" option to
ensure coverage in spite of unpaid premiums after first three years of
the term.

Kotak Retirement Income Plan (Unit Linked):


Make a high earning investment for your future with unit linked Kotak
Retirement Plan. This investment plan earns for you even after you are no
longer employed. You can choose the extent of investment risk and
guarantee against falling markets.

How do you gain?

• Maximum earnings with capital preservation

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• Choose from five fund options
• Flexibility to opt for early retirement due to ill-health
• Increase your Investments any time with a premium top-up

………NRI HELP CENTRE...........


OIFC
The Kotak Mahindra Group has joined the Overseas Indian Facilitation
Centre (OIFC) as a Strategic Partner. This alliance will give Kotak a
platform to share its comprehensive range of Wealth Management
Advisory and Investment offerings in form of products and services for
Non Resident Indians (NRIs) and Persons of Indian Origin (PIOs). These
offerings from the Group are specifically customized to suit the overseas
Indian investors' personal financial needs.

The Overseas Indian Facilitation Centre is a not-for-profit public private


initiative between the Ministry of Overseas Indian Affairs (MOIA) and
Confederation of Indian Industry (CII), established as a focal point for
facilitating the process of economic engagement of the Indian diaspora
with India. At the Pravasi Bharatiya Divas Convention, being hosted this
year (7th - 9th January, 2010), at Vigyan Bhawan, New Delhi, Kotak will
also showcase its expansive portfolio of financial products, with
interactive opportunities for participants to get a closer insights of all that
the Group is into and avail of taxation, real estate or financial advisory
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services. The focus of this convention held every year is on bringing
together eminent overseas Indians to engage, interact, and build networks
for mutual benefit, besides having Ministers of States together on issues
that their states need to attend on priority to improve facilities and
incentives for the overseas Indian community

Wealth Management
Kotak Wealth Management brings you a complete, customized financial
plan that advises you on your asset allocation and what schemes to invest
in, factoring in all your financial objectives.

The products offered are broadly divided into Traditional and Specialized
categories:

• Traditional Investments comprise mainly of Direct Equity, Mutual


Funds, Insurance
• Specialized Investments include diverse investment opportunities
namely:
o Structured Products- a pre-packaged investment strategy
based on …derivatives, such as a single security, a basket of
securities, options, indices, commodities, debt issuances and
foreign currencies. A feature of …some structured products is
a "principal protection" function which offers …protection of
principal if held to maturity.
o Private Equity- equity securities of unlisted companies.
o Real Estate - Real estate funds founded by a group of real
estate professionals/experts to 'manage' property/real estate
for the investor.
o Estate Planning- a process involving the counsel of
professional advisors who are familiar with your goals and

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concerns, your assets and how they are owned, and your
family structure.

International Subsidiaries
The international subsidiaries of Kotak Mahindra Bank Limited, through
their offices in London, New York, Dubai, Mauritius, San Francisco and
Singapore specialize in managing a wide range of India investment funds
through which overseas investors like you can invest in India. Click here to
know more

NRI Banking
Kotak Mahindra Bank offers Banking and Investment Solutions for a jet
setting Non Resident Indian like you. Click here to know more

Briefly, the product range includes NRE Accounts- available in the form
of Savings and Term Deposits which are completely reparable and tax-
free, NRO accounts- available in the form of Savings and Term Deposits
to manage your income in India, Foreign Currency Non Resident Accounts
(FCNR)- available in the form of Term deposits denominated in
USD/GBP/EUR/ JPY which are completely reparable and tax-free.
There are also special products like Max Yield Deposits where you can
earn a higher return on your NRO deposits through the DTAA benefit, Ace
Deposit- a unique product that invests interest earned on your deposit into
Equity Mutual Funds and hence creates an avenue for earning market
linked returns, while safeguarding the principal amount of the Fixed
Deposit, Overdraft Facility against Term Deposits, and Privy League
which is an exclusive offering for select clientele who expect more out of
their banking experience.

Investments through Kotak Mahindra Bank


Portfolio Investment Services
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Profit from investment in equity shares in India under the Portfolio
Investment Scheme (PINS). You have the option of investing online* too!

Mutual Fund Services


View your portfolio; receive alerts and more through your Investment
account at your convenience. Choose between opening an online
investment account with us on a repatriable or on a non repatriable basis*.

Home Finance
Buy your space in India with any of Kotak's flexible options to finance
your dream home. Get a host of attractive features customized to NRI
needs with an easy to avail home loan.

*the online facility is not available in certain countries. Contact us for this
information.

Kotak Securities - Direct Equity Investments


Kotak Securities offers you specialised products depending on your
requirements and also provides conventional brokerage & advisory
services. Click here to know more

Investment products offered include

• TRINITY- seamless investment facility into shares and mutual funds


• Portfolio Management Schemes
• Discretionary - Investing in equities requires time, knowledge and
constant monitoring of the market. If you need expert help, this
scheme is an excellent solution

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• Non-Discretionary- A consultative and transparent method of
investing where you are always consulted and informed of investment
decisions, thus giving you total control
• Corporate fixed deposits & government bonds

Kotak Life Insurance


At Kotak Life Insurance, we understand your attachment to your homeland
and need to save for you family's future. We offer you a suite of products
that would suit your requirements. Click here to know more.

Basic information:

• Investment Modes- Invest seamlessly from your NRE or NRO bank


accounts.
• Foreign currency policy- you have the option of foreign currency
policy, i.e. your Sum Assured is represented in equivalent foreign
currency.
• Claim Settlement - Your claims are paid in the same proportion of
the currency in which you make premia payments
• Tax Benefits- Under the Income Tax Act, 1961:
• Tax deductions are available against the income earned in India and
taxable in India..
• The claims and the premiums paid are tax free

Risk Profiler
Estimate and understand your investment risk profile based on 11
questions to help recognize the right investment type for your profile.

Investment Wizard
Use this simple wizard for getting started on your india investments with
three easy steps.

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PAN Procedure
Every Indian citizen entering a financial transaction in India is mandatorily
required to have a Permanent Account Number. It is the sole identification
number for the purpose of tax payments and investments.

What is a PAN Card?


Stands For: Permanent Account Number (PAN)
Contains: 10 alphanumeric numbers
Issued by: The Income Tax Department
Managed by: UTI Investor Services Ltd. (UTIISL)
The National Securities Depository Limited
(NSDL)
Validity: Lifetime
START

Why apply for an NRI PAN Card?


An NRI PAN Card is required for almost all transactions of which some
are:

• Paying taxes on Indian income under the Income Tax Act, 1961
• Investing in securities per the Securities and Exchange Board of
India (SEBI)*
• Investing in Mutual Fund schemes for all existing and prospective
investors
• Opening an account through the enhanced Know Your Customer
('KYC') procedure**
• Purchase and sale of property in India
• Purchase and payments of vehicles
• Securing a telephone connections
• Making time deposits in a bank worth over Rs.50,000

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* Securities and Exchange Board of India (SEBI) Circular dated April 27,
2007 for all transactions irrespective of the amount with effect from July 2,
2007
** For any investment or transaction equal to or more than Rs. 50,000/-
under the Prevention of Money Laundering Act, 2002

PAN Application
How to Apply for an NRI PAN Card?

• Read Instructions to fill Form 49A, the application form for a PAN.
• Select a convenient method to access the form

1. Online form submission through UTITSL


2. Download form from the Income Tax, UTIISL and NDSL
websites.
3. Collect form locally from IT PAN Service Centers or TIN
Facilitation Centers

• Attach required proofs and make the payment.

Beware of AIR Reports of Taxmen


By Ameet Patel
The Government of India is in a very aggressive mode as far as collecting
information about large financial transactions is concerned and also about
tracking tax evaders. There is a also a very strong movement to make
many processes relating to tax administration electronic and automated.
This would ensure that the Income-tax department has a central database
of all tax payers in the country along with details of large financial
transactions entered into by each such person in a year.
One important tool used by the Government to collect such information is
the AIR.

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What is AIR?
AIR is an abbreviation for the term "Annual Information Return". AIR was
made effective from the financial year 2003-04. An AIR has to be filed by
the prescribed person who is responsible for registering or maintaining
books of accounts or other documents containing record on any specified
financial transaction under any law for the time being in force.
Use of AIR?
The purpose of collecting such information is to ensure that a person who
enters into such transactions duly accounts for all such transactions for
which information is independently collected from the specified persons
through the AIR.
Section 14A of the Income-Tax Act
By Ameet Patel

Introduction:
Section 14A was brought onto the statute by the Finance Act, 2001 with
retrospective effect from 1st April, 1962. While introducing this section,
the Finance Minister has explained the rationale for this section as follows:
"No deduction for expenditure incurred in respect of exempt income
against taxable income
Certain incomes are not includible while computing the total income as
these are exempt under various provisions of the Act. There have been
cases where deductions have been claimed in respect of such exempt
income. This in effect means that the tax incentive given by way of
exemptions to certain categories of income is being used to reduce also the
tax payable on the non-exempt income by debiting the expenses incurred
to earn the exempt income against taxable income. This is against the basic
principles of taxation whereby only the net income, i.e., gross income
minus the expenditure, is taxed. On the same analogy, the exemption is

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also in respect of the net income. Expenses incurred can be allowed only to
the extent they are relatable to the earning of taxable income
It is proposed to insert a new section 14A so as to clarify the intention of
the legislature since the inception of the Income-tax Act, 1961,that no
deduction shall be made in respect of any expenditure incurred by the
assessee in relation to income which does not form part of the total income
under the Income-tax Act."
Objective of the section:
Based on the above rationale, it would seem that the objective of the
section is to prevent tax payers from setting off expenses incurred to earn
tax free income against other income which is taxable. What this means
therefore is that a tax payer must, in the first place, have tax free income
and must have actually incurred expenses to earn such tax free income.
The next step then would be to quantify such expenses and ensure that the
same are not claimed by the tax payer as a deduction against any other
income.

Computation of the disallowance:


As per the section, in the following circumstances, the tax officer has to
compute the disallowance as per Rule 8D:

1) When he is not satisfied with the correctness of the claim of expenditure


made by the tax payer or
2) When the tax payer claims that he has not incurred any expenditure to
earn tax free income.
Rule 8D lays down the computation mechanism for this purpose. The
formula laid down in the said Rule is highly unfair and does not take into
cognisance the facts of any case. It merely lays down an arithmetical
method of arriving at a disallowance. This disallowance often comes to
much more than the entire expenses debited to the Profit and Loss Account
by the tax payer.
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Recent developments:
Once the Rule 8D was notified sometime in early 2008, the tax officers
have been mechanically applying the said Rule to all pending assessments.
In most cases, they have been rejecting the working prepared by the tax
payer and huge disallowances have been made under section 14A based on
the irrational computational mechanism laid down in the Rule.

However, the latest development has made matters even worse now.
Recently, the Income-tax Appellate Tribunal had occasion to decide on the
issue of applicability of the section in those cases where a tax payer had
invested money in investments, the income from which, as and when
received, would be tax free in the hands of the tax payer. In view of
conflicting decisions of various Tribunals in the matter, it was decided to
constitute a Special Bench. This Special Bench at Delhi has given its
decision vide its consolidated order dated 5th August, 2009 in the case of
ITA Nos. 87/Del/2008, 4788/Del/2007 and 233/Ahd/2006
The gist of the Special Bench decision is that section 14A would be
applicable even in those cases where the tax payer has not earned any
income which is tax free but has invested funds in investments which,
when they start yielding income, such income would be tax free. The
rationale of the Special Bench in coming to this conclusion was its
interpretation of the language of section 14A. According to the Special
Bench, what was relevant was to work out the expenditure in relation to
the exempt income and not to examine whether the expenditure incurred
by the assesse has resulted into exempt income or taxable income. It held
that when the expenditure is incurred in relation to income which does not
form part of the total income , it has to suffer the disallowance irrespective
of the fact whether the income is earned by the assesse or not. Section 14A
does not envisage any such exception The Tribunal also held that the
earlier decisions of the Supreme Court in the case of Maharashtra Sugar
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Mills and Rajasthan State Warehousing holding that if there is one
indivisible business, the entire expenditure is allowable, would have no
application after the introduction of section 14A. Thus, as per this
decision, even if the tax payer has not earned any tax free income in a year,
yet, a part of his expenses would necessarily have to be disallowed under
section 14A read with Rule 8D if funds have been borrowed at a cost and
if the tax payer has investments in shares or mutual funds, the income from
which, when received, would be tax free.

Implications of the decision:


The implications of this decision would be very harsh on those tax payers
who have borrowings and who have invested in shares and mutual funds.
In such cases, even if the investments are long term and/or strategic ones
and even if there is no income actually accruing or received during a year,
there would still be a disallowance of part of the interest paid based on the
formula laid down in Rule 8D. It is pertinent to note that the decision is
that of the Special Bench and hence carries more persuasive value than an
ordinary Tribunal decision. This is also binding on the other benches of the
Tribunal. Hence, now to adopt a different view, one will have to wait till
some High Court decides the matter in favor of the assesse.
It would be very risky to take a stand that no expenses have been incurred
to earn tax free income or that since there is no tax free income; the
question of disallowance of any expense does not arise
Tax Alert
In a recent ruling in the case of a Mauritian company E*TRADE Mauritius
Ltd.1 (ET Mauritius), the Authority for Advance Ruling (AAR) held that
ET Mauritius is not liable to pay capital gains tax in India in respect of the
transfer of shares held by it in AAR Ruling in case of E Trade Mauritius-
Read Details.pdf

Advisor's Profile
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Ameet Patel is a Chartered Accountant and a tax partner at Sudit K Parekh
& Co., Chartered Accountants. Ameet is a rank holder and has secured
ranks at the Inter and Final CA examinations at the all India level. He is an
avid writer and has contributed articles to various magazines and websites
including CNBC's moneycontrol.com. He specializes in corporate taxation
and advises several reputed companies, mutual funds and FIIs. He is also
the Immediate Past President of Bombay Chartered Accountants' Society
which is a voluntary organization of Chartered Accountants and has more
than 8,000 members from all over India. He is currently the Chairman of
its InfoTech Committee and a member of the Taxation Committee. He has
co-authored two books on taxation

Overdraft Facility
Overdraft limit against NRE and FCNR Deposits enhanced to Rs.100
Lakhs against the previous overdraft limit of Rs.20 Lakhs.

Credit to NRE encashment


Proceeds of demand drafts/ banker's Cheque issued against encashment of
foreign currency can be credited to NRE accounts where such instrument
issued is supported by an Encashment Certificate issued by AD category I/
category II (Authorized Money Changers).
NRO account
Remittance facility is available up to USD 1 million per financial year
subject to prescribed documentation.
READ CIRCULAR

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Analysis

Summer internship program is a crucial part of building student’s practical


know-how about real corporate market. In this business scenario it must
require to update ourselves with current market happenings relating to
banking, insurance, economy, and other various markets.
For such a requirement the institute provides the summer internship
program for students for updating themselves to current corporate

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scenario. On this basis our NIS Academy provided us the SIP in KOTAK
MAHINDRA BANK at the V.V.Nagar branch. For such training in
KOTAK MAHINDRA BANK, the interview was conducted at our
institute. And finally the 9 students were selected for further training in
bank. The training period is for 2 months i.e. 1st July to 31st August.
Before starting our training, the branch manager of KOTAK MAHINDRA
BANK i.e. Mr. Pramod Chauhan had provided us the orientation lectures
towards the project at KOTAK BANK. He has imparts needed knowledge
about the project proper. He has also solved the queries of students about
banking performance towards its clients. Then our actual training started.
The training is based on NRI banking products and services provided by
the bank and it contains the project title named as “Market study and
customer mapping for banking products and services“. In such project
training we have prepared a questionnaire regarding NRI database to
provide better banking services to them. For that purpose we had obliged
to collect NRI information within the ANAND District guided by the
branch manager.
For further training for collecting NRI information, we have prepared
certain routes to different villages of ANAND. Then we have divided two
groups for collecting data. By this way we have covered much villages of
ANAND for our project training. We gain much experience from such a
field work like confidence in ourselves, body language, and our behavior
towards different class of people, etc.
During training period, the students are required to report at KOTAK Bank
on a daily basis for submitting NRI database information. This is because
we were provided some guidance from the Branch Manager for effective
presentation to the people for collecting information from them. By the
efforts of both group of students, we reached at approximately 1200
respondents for the purpose of collecting NRI information from them.
From which 400 were NRIs and we had analyzed these 400 NRIs for
further procedure of analysis for providing them better Banking products
and services provided by the KOTAK MAHINDRA BANK.

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