SCB - Prakash

Study of Saving Account in SCB & Comparative Analysis of its With Some Private Leading Banks
A PROJECT REPORT
On
Study of Saving Account in Standard Chartered Bank &
Comparative Analysis of its with Some Private Leading
Banks
Submitted to:-
Nitish Dipankar
Area Sales Manager
Standard Chartered Bank
New Friends colony
New Delhi
Submitted by:-
Prakash Kumar Soni
MBAL1S2, Sec – C
(2007 – 09)
In partial fulfilment for the award of the degree

Of
Master of Business Administration

In
Marketing
Skyline Business School, Gurgaon 1

Acknowledgement
First of all I want to thanks the almighty God, who give me the courage to
complete this project successfully. Completing a project is never one sided
approach. I would like express my deep sense of gratitude to Mr. Praveen
Puri (Director, Skyline Business school) who provided me the opportunity
to work with the organisation.
I am also thankful to my college faculty because without them support I

would not able to complete this project.
I am grateful to Mr. Nitish Dipankar, my company guide at Standard

Chartered Bank without whose co-operation it was impossible for me to
undertake the project. He guided me at all points of difficulties and put
his best of efforts to solve them. He provided us with all the resources
available to him to make our project interesting and invaluable.
I would also like to thank the other staff members at the organization for
their kind co-operation during my training period. Last but not the least I
would like to thank my parents , friends , and family members without
whose support and encouragement it was impossible for me to complete
the project.
In a nutshell I express my heartfelt gratitude towards all those mentioned

earlier and to those I have missed. Any error is greatly apologized.

Table of Content
Particulars Page No.
1. Executive Summary 5
2. Introduction of Banking 6-9
2.1 What is banking? 6
2.2 Banking Sector in India 7
2.3 Some foreign banks in India 8
2.4 Banking as an opportunity 9
3. Company profile 10 - 17
3.1 History of Standard Chartered Bank 10
3.2 SCB in India 11
3.3 Some other facts of SCB 12
3.4 Principle and Values 12
3.5 SCB stands for 13
3.5 Product and Service 14 - 16
3.6 Types of Saving Account 16 - 17
4. Saving Account 18 - 19
4.1 RBI Guidelines 18
4.2 Features 18
4.3 General requirement 19

5. Saving Account in SCB 20 - 24
5.1 aXcess Plus 20
5.2 Super Value 21
5.3 Parivaar 22
5.4 2 –in – 1 22
5.5 Service charges 23 - 24
6. Insurance 25 - 26
7. Unit Linked Insurance Product 27 - 28
8. Bajaj Allianz Life Insurance Co.Ltd. 29 - 31
9. Mutual Funds 32 - 42
10. ULIP Vs Mutual Funds 43 - 44
11. Taxation 45 - 48
12. ABN-AMRO Bank 49 - 57
13. HDFC Bank 58 - 62
14. ICICI Bank 63 - 68
15. Service charges of SCB & other Banks 69 - 70
16. Survey 71 - 81
16.1 Objective 71
16.2 Research Methodology 71
16.3 Survey Analysis 72 - 81

17.Conclusion 82
18. Limitation of Project 83
19. Bibliography 84
20. Annexure 85
1. Executive Summary
The aim of project is study of different types of saving account, analyse

the market potential of saving account and comparison with the other
private leading banks. It is also focused towards creating a backup
database which could be used by the organization towards interest of the
services of the saving account.
Since the project aims at analyzing the market potential and wants to
know that whats people want in using the saving account service, a direct

survey was conducted in Delhi and NCR region. The sample size of the
population was 60. People in the age group 20 and above and income
group ranging from 2.5 lakhs and above were targeted for the survey
process.
Secondary data from internet, newspapers, and magazines were also

collected for better interpretation of the results. In this also a detailed and
systematic study of various investment options like ULIPs and Mutual
Funds was done. It also includes comparative analysis between ULIPs and
Mutual Funds. The process of taxation was also studied. This study covers
the study of tax slabs for various categories of people and a comparative
study of tax payment in the FY 06-07 and the FY 07-08.
The results were then analyzed in excel with the help of different types of
charts and graphs (bar, line, and pie graphs). Final analyses were then
carried out based on these graphs and charts.
One of the inferences that were drawn from the analysis was that none of
the income and age categories of people wanted to use new bank service
like internet banking, doorstep banking, mobile banking, online banking
etc. People were also concentrated about how much wide ATM network s
bank has. The new generation are paying much attention on services and
brand name of the organisation.
2. Introduction of Banking
2.1 What is banking?

Banking, the business of providing financial services to consumers and
businesses. The basic services a bank provides are checking accounts,
which can be used like money to make payments and purchase goods and
services; savings accounts and time deposits that can be used to save
money for future use; loans that consumers and businesses can use to

purchase goods and services; and basic cash management services such
as check cashing and foreign currency exchange.
Four types of banks specialize in offering these basic banking services:

commercial banks, savings and loan associations, savings banks, and
credit unions.
A broader definition of a bank is any financial institution that receives,

collects, transfers, pays, exchanges, lends, invests, or safeguards money
for its customers. This broader definition includes many other financial
institutions that are not usually thought of as banks but which
nevertheless provide one or more of these broadly defined banking
services. These institutions include finance companies, investment
companies, investment banks, insurance companies, pension funds,
security brokers and dealers, mortgage companies, and real estate
investment trusts.
Banking services are extremely important in a free market economy.

Banking services serve two primary purposes. First, by supplying
customers with the basic mediums-of-exchange (cash, checking accounts,
and credit cards), banks play a key role in the way goods and services are
purchased. Without these familiar methods of payment, goods could only
be exchanged by barter (trading one good for another), which is
extremely time-consuming and inefficient. Second, by accepting money
deposits from savers and then lending the money to borrowers, banks
encourage the flow of money to productive use and investments. This in
turn allows the economy to grow. Without this flow, savings would sit idle
in someone’s safe or pocket, money would not be available to borrow,
people would not be able to purchase cars or houses, and businesses
would not be able to build the new factories the economy needs to
produce more goods and grow. Enabling the flow of money from savers to

investors is called financial intermediation, and it is extremely important

to a free market economy.
2.2 Banking Sector in India

Banks in India can be categorized into non-scheduled banks and
scheduled banks. Scheduled banks constitute of commercial banks and
co-operative banks. There are about 67,000 branches of Scheduled banks
spread across India. During the first phase of financial reforms, there was
a nationalization of 14 major banks in 1969. This crucial step led to a shift
from Class banking to Mass banking. Since then the growth of the
banking industry in India has been a continuous process.
As far as the present scenario is concerned the banking industry is in a

transition phase. The Public Sector Banks (PSBs), which are the
foundation of the Indian Banking system account for more than 78 per
cent of total banking industry assets. Unfortunately they are burdened
with excessive Non Performing assets (NPAs), massive manpower and
lack of modern technology.
On the other hand the Private Sector Banks in India are witnessing
immense progress. They are leaders in Internet banking, mobile banking,
phone banking, ATMs. On the other hand the Public Sector Banks are still
facing the problem of unhappy employees. There has been a decrease of
20 percent in the employee strength of the private sector in the wake of
the Voluntary Retirement Schemes (VRS). As far as foreign banks are
concerned they are likely to succeed in India.
Indusland Bank was the first private bank to be set up in India. IDBI, ING
Vyasa Bank, SBI Commercial and International Bank Ltd, Dhanalakshmi
Bank Ltd, Karur Vysya Bank Ltd, Bank of Rajasthan Ltd etc are some
Private Sector Banks. Banks from the Public Sector include Punjab

National bank, Vijaya Bank, UCO Bank, Oriental Bank, Allahabad Bank,
Andhra Bank etc.
2.3 Some top foreign banks in India

Standard Chartered Bank
Citibank
American Express Bank
ABN-AMRO Bank
Deutsche Bank
HSBC Bank
Abu Dhabi Commercial Bank Ltd
Barclays Bank
DBS Bank
2.4 Banking as an opportunity

Today in this scenario banking sector have wide competition. Private
Banks gives more services in comparison the public sector bank. And with
the interest income coming under pressure, banks are urgently looking for
expanding fee-based income activities. Banks are increasingly getting
attracted towards activities such as marketing mutual funds and insurance

policies, offering credit cards to suit different categories of customers and

services such as wealth management and equity trading.
3. Company Profile
3.1 History of Standard Chartered Bank
The Standard Chartered Group was formed in 1969 through a merger of

two banks: The Standard Bank of British South Africa founded in 1863,
and the Chartered Bank of India, Australia and China, founded in 1853.

The Standard Bank was founded in the Cape Province of South Africa in
1862 by John Paterson. Commenced business in Port Elizabeth, South
Africa, in January 1863.
The Chartered Bank was founded by James Wilson following the grant of a
Royal Charter by Queen Victoria in 1853.Chartered opened its first
branches in Mumbai (Bombay), Calcutta and Shanghai in 1858, followed
by Hong Kong and Singapore in 1859.
This friendly merger allowed both banks to capitalise on the expansion of

trade caused by the increased movement of goods from Europe to the
East and Africa.
In 1986 a hostile takeover bid was made for the Group by Lloyds Bank of
the United Kingdom. When the bid was defeated, Standard Chartered
entered a period of change. Provisions had to be made against third world
debt exposure and loans to corporations and entrepreneurs who could not
meet their commitments. Standard Chartered began a series of
divestments notably in the United States and South Africa, and also
entered into a number of asset sales.
Since the early 90s, Standard Chartered has focused on developing its
strong franchises in Asia, the Middle East and Africa, using its operations
in the United Kingdom and North America to provide customers with a
bridge between these markets. We have also focused on consumer,
corporate and institutional banking, as well as the provision of treasury
services – areas in which the Group has particular strength and expertise.
In the new millennium we acquired Grindlays Bank from the ANZ Group
and the Chase Consumer Banking operations in Hong Kong in 2000.
3.2 Standard Chartered Bank in India

Standard Chartered is a London based international bank with significant

operations in Asia, Africa, the Middle East and Latin America. The
Standard Chartered Group was formed in 1969 through a merger of two
banks: The Standard Bank of British South Africa founded in 1863, and
the Chartered Bank of India, Australia and China, founded in 1853.
Chartered Bank opened its first overseas branch in India, at Kolkata, on

12 April 1858. During that time Kolkata was the most important
commercial city and was the hub of jute and indigo trades. With the
opening of the Suez Canal in 1869 and the growth of cotton trade,
Bombay replaced Kolkata as the main commercial center. Hence Standard
Chartered shifted its main operations to Bombay. Today the Bank's
branches and sub-branches in India are directed and administered from
Bombay with Kolkata remaining an important trading and banking centre.
To cater to diverse financial needs, Standard Chartered offers a wide

range of state-of-the-art banking products and services through its
network of 90 branches in 31 cities across the country.
3.3 Some other fact about SCB
• Over 50 nationalities are represented among our top 500 senior

executives.
• SCB is the only international bank with over 90% profits from Asia,
Africa, and the Middle-East.

• SCB is the only international bank with a long unbroken banking

history in India and China.
• SCB is the largest international bank in India in terms of branch
network and profits
• SCB is the only bank in the Falkland Islands.
• SCB is one of three note issuing banks in Hong Kong.
3.4 Principles and Value
• At Standard Chartered our success is built on teamwork,

partnership and the diversity of our people.
• At the heart of our values lie diversity and inclusion. They are a
fundamental part of our culture, and constitute a long-term priority
in our aim to become the world's best international bank.
• Today we employ 73,000 people, representing 115 nationalities, and
you'll find 61 nationalities among our 500 most senior leaders.
• We believe this diversity helps to fuel creativity and innovation,
supporting the development of exciting new products and services
for our customers worldwide.
3.5 SCB Stand for
3.5.1 Strategic intent
• The world's best international bank

• Leading the way in Asia, Africa and the Middle East

3.5.2 Brand promise
• Leading by Example to be The Right Partner
3.5.3 Values
• Responsive
• Trustworthy
• International
• Creative
• Courageous
3.5.4 Approach
• Participation
Focusing on attractive, growing markets where we can leverage our

relationships and expertise
• Competitive positioning
Combining global capability, deep local knowledge and creativity to

outperform our competitors
• Management Discipline
Continuously improving the way we work, balancing the pursuit of

growth with firm control of costs and risks
3.5.5 Commitment to stakeholders
• Customers
Passionate about our customers' success, delighting them with the

quality of our service

• Our People
Helping our people to grow, enabling individuals to make a

difference and teams to win
• Communities
Trusted and caring, dedicated to making a difference
• Investors
A distinctive investment delivering outstanding performance and

superior returns.
• Regulators
Exemplary governance and ethics wherever we are.
3.6 Products and Services
3.6.1 Personal Banking:-

Through our global network of over 1,700 branches and outlets, we offer
personal financial solutions to meet the needs of more than 14 million
customers across Asia, Africa and the Middle East.
• Personal Banking Plans

• Accounts
• Debit Cards
• Prepaid Cards
• Credit Cards
• Loans
• Investment Services
• Insurance
• Online Services
• Special Offers

• NRI Accounts
3.6.2 Private Banking:-
Our Private Bank advisors and investment specialists provide customised

solutions to meet the unique needs and aspirations of high net worth
clients.
3.6.3 Wholesale Banking:-
Headquartered in Singapore and London, with on-the-ground expertise

that spans our global network, our Wholesale Banking division provides
corporate and institutional clients with innovative solutions in trade
finance, cash management, securities services, foreign exchange and risk
management, capital raising, and corporate finance.
3.6.4 SME Banking:-

SME Banking division offers a wide range of products and services to help
small and medium-sized enterprises manage the demands of a growing
business.
• Term Loan
• Express Trade
• Trade Services & Working Capital
• Business Installment Loan
• International Trade Account
• Loan/Overdraft Against Property
3.6.5 Islamic Banking:-
Standard Chartered Saadiq's dedicated Islamic Banking team provides

comprehensive international banking services and a wide range of Shariah
compliant financial products that are based on Islamic values.
3.6.6 Online Banking:-

Standard Chartered Online is an innovative Online Banking service that

you can tailor to suit your precise banking needs. It gives you convenient,
round-the-clock banking services ranging from day-to-day account
transfer transactions to real-time valuable financial information. Now you
can manage your finances anytime, anywhere.
3.6.7 Mobile Banking:-
Standard Chartered Bank offer mobile banking to access your bank

account anytime and from anywhere in the world.
Features of mobile banking:-
• Balance Information –View balances of your linked savings and

current accounts
• Mini Statement – Get details on the last 3 transactions carried out
on your bank account
• Cheque Book Request – You can now order for a cheque book from
your Mobile Phone!
• Bank Statement Request – Bank Statement requests can be placed
through your Mobile phone
3.7 Different Types of Saving Account in Standard Chartered Bank
Standard chartered Bank offers basically 6 different type of saving

account. According to consumer needs it functioned and very useful.
• aXcess plus account

• Super value account
• Parivaar account
• No frills account
• aaSaan account
• 2-in-1 account

Actually my survey has done in Metro city where only 4 types of saving
account runs. “No frills” and “aaSaan account” are not for Metro cities.
3. Saving account
A savings account typically refers to an account in which one places

money to earn a small amount of interest. The savings account funds are
usually easily accessible, though some banks do charge for withdrawing
money early. In most cases, people can withdraw money from a savings

account at any time, at least at any time the bank is open, or one has
access to the bank’s ATM.
4.1 Reserve Bank of India Guidelines*
• Photographs of all applicant(s) / Power of Attorney holders

• PAN / Form No.60/61 (Where PAN is not available) is required to be
furnished.
• Savings Bank A/c can’t be opened for business purposes.
• SB a/c should be used to route transactions of only non-business /
non-commercial nature.
• If there is no transaction by the account holder in the account
continuously for 24 months, the account automatically gets
classified as a ‘dormant / inoperative account’ whereupon further
debit transactions are not permitted in the ordinary course.
• If the balance in the account becomes zero and remains so
continuously for three months or more, the Bank reserves to itself
the right to close the account without any obligation to intimate the
customer.
• The bank has the authority to debit the accounts to recover any
amount credited erroneously.
4.2 Features of Saving Account
• Interest on the saving account is determined in accordance with

directives of the Reserve Bank of India
• The current interest rate is 3.5%
• Account can be individually or jointly.
• Minimum Quarterly balance of a specific amount is to be maintained
failing to which a specific fees per quarter has to be paid.
• Account can be operated at any branch across the country.
• Enables you to save money

• 24 hour access to your funds via the ATMS
4.3 General requirement to open a saving Account
• Indian Residents
• NRI’s
• Clubs, Associations, Trusts and Registered Societies
• HUF (Hindu Undivided Family)
4. Saving Account in Standard Chartered Bank
5.1 aXcess plus account:-

The Standard Chartered aXcess Plus Account comes with a globally valid
debit - cum - ATM card which allows customers to aXcess all Standard
Chartered Bank ATMs and provides instant cash at all Visa Network ATMs
in India and abroad. This account provides unparalleled access to your
money through a variety of channels.
Highlights:-
Category Regular
Minimum AQB Rs. 60,000 if balance in linked
saving a/c is atleast Rs 10,000
Interest Rate 3.5%
Card offered ATM cum Debit Card
ATM Cards
Replacement of Pin Rs 50
Lost card re-issuance Rs 100
Some features:-
• FREE Unlimited Visa ATM transactions* (Cash withdrawal and

balance enquiry)
• FREE Standard Chartered Bank branch access across the county
• FREE Doorstep Banking
• FREE Demand Drafts/Pay Orders (drawn at SCB locations)
• FREE Payable at Par Chequebook
• International Debit Card
• Extended Banking Hours
• Phone banking, Net banking, Multi-city banking, 365 days branches
• Unique free insurance benefits- lost card, purchase protection.
* Available on maintenance of average quarterly balance of Rs 15,000/-
5.2 SuperValue Saving Account:-
The unique SuperValue savings account from Standard Chartered is proof

that the best things in life come free. With an average quarterly balance

of just Rs. 50,000, you get a host of services from Standard Chartered
absolutely free.
Some features:-
• Free globally valid Debit-cum-ATM card.

• Free Access to 6500 ATMs in India.
• Free Doorstep Banking.
• Free Payable at Par cheque book/ account statements / DDs
• Free Bill Pay.
• Free Inter Bank Funds Transfer.
• Free Foreign Inward Remittance Certificates.
• Other benefits of the SuperValue account:
o Full suite of complimentary banking services including credit
cards, loan products and capital market services.
o Globally valid debit card: Make purchases at over 12 million
merchant outlets and withdraw cash at over 810,000 ATMs
worldwide using funds from your account
o Enjoy extended Banking hours at all our branches, and Speed
Cheque Clearing and Metro Clearing facilities.
o Multicity Banking: Access your account even when you are out
of town
o 24-hour branches, 365 day branches available at select
locations
o Phone banking
o Internet banking
o Free Investment Advisory Services to assist you in investing in
a range of mutual funds
5.3 Parivaar Account:-
This family account allows you to maintain your individual identity while
allowing you to tap your family's financial strength. Parivaar is a unique

Wealth Management Solution from Standard Chartered Bank that offers

your family flexibility, convenience and essential tools for wealth
accumulation and preservation.
Some features:-
• Your family can maintain individual savings accounts with the

benefit of clubbing balances in grouped accounts.
• Anytime, anywhere access to accounts through ATMs, Phone
Banking and Online Banking.
• Globally valid ATM-cum-debit card can be used at 3,26,000
merchant outlets in India and 14 million outlets worldwide.
5.4 2-in-1 Account:-
The 2-in-1 account gives you the facility of linking your fixed deposits with
a savings or current account. In case of any shortfall in the savings or
current account, funds will be automatically swept in from the linked fixed
deposits, thus giving you a combination of both liquidity and higher
returns.
And that’s not all either. In case you need to withdraw amounts in excess
of what is available in your savings or current account, we will break your
deposit for the exact amount you require. The rest of the deposit
continues earning the original high interest.
Some features:-
• Earn fixed deposit interest rates

• Enjoy the flexibility of a Savings or a Current Account
• Get a free personalized cheque book and Debit/ATM card
• Withdraw money whenever you need it
• Deposit more money in your account to earn a higher rate of
• interest by placing subsequent deposits

5.5 Service Charges:-
Parameter/ Saving Account aXcess Plus Super Value 2-in-1

AQB Rs.10,000 Rs.50,000 Rs.100,000
A/c Maintenance Charges
If AQB< 5,000 1,500 1,250
If AQB≥ 5,000 & <7,500 1,250 1,250
If AQB≥ 7,500 & <10,000 750 1,250
If AQB≤ 10,000 & <25,000 1,000
If AQB≥ 25,000 & <50,000 750
750
If AQB < 100,000
Account Statements Free/Quarterly Free/Qua Free/Qua.
Duplicate Statement 100/- 100/- 100/-

Account closure 500/- 500/- 500/-
(Within 6 months)
Cheque Return
Issued by customer 300/- 300/- 300/-
Deposited by customer 100/- Free 100/-
Dormant Account 1000/- per 1000/- per
annum annum
Cards
Debit card annual fee 200/- Free 200/-
Debit card replacement fee 200/- Free 200/-
Gold debit card 1st year fee 799/- 799/- 799/-
Gold debit card annual fee 799/- 799/- 799/-
Demand Draft
Drawn at own bank(min.
Free50/- & max. 1,500/-) 0.25% Free 0.25%
Drawn at other bank (min.
Fee 250/-) 0.30% 0.25% 0.30%
Cancellation 250/- 250/- 250/-
Pay order 75/- Free 75/-
ATM Uses other than SCB First 4 Free Free
Branch transaction
free
VISA ATMs outside India 140/- 140/- 140/-

Replacement of PIN 50/- 50/- 50/-

Lost card re-issuance 100/- 100/- 100/-
Standing instruction
Setting up charges 100/- 100/- 100/-
Execution fee 25/- 25/- 25/-
Banker’s report 50/- Free 50/-
Signature verification 25/- Free 25/-
Remittance from abroad 250/- 250/- 250/-
5. Insurance
Life is a roller coaster ride and is full of twists and turns. We cannot take
anything for granted in life. Insurance policies are a safeguard against the
uncertainties of life.
Insurance is system by which the losses suffered by a few are spread over
many, exposed to similar risks. Insurance is a protection against financial
loss arising on the happening of an unexpected event. Insurance policy

helps in not only mitigating risks but also provides a financial cushion
against adverse financial burdens suffered.
Insurance policies cover the risk of life as well as other assets and
valuables such as home, automobiles, jewelry et al. On the basis of the
risk they cover, insurance policies can be classified into two categories:
6.1 Life Insurance Policies:-

Life is very fragile and death is a certainty. We cannot control the
uncertainties of life. But, we can cover the risks surrounding us. Life
insurance, simply put, is the cover for the risks that we run during our
lives. It protects us from the contingencies that could affect us. Life
insurance is not for the person who passes away, it for those who survive.
It is the responsibility of every bread earner to guard against the events
that could affect the family in the unfortunate circumstance of his / her
demise. Thus, having a life insurance policy is very vital. Before going for
a life insurance policy it is imperative that you know about various types
of life insurance policies. Major among them are:
• Endowment Policy
• Whole Life Policy
• Term Life Policy
• Money-back Policy
• Joint Life Policy
• Group Insurance Policy
• Loan Cover Term Assurance Policy
• Pension Plan or Annuities
• Unit Linked Insurance Plan
6.2 General Insurance Policies:-

General Insurance provides much-needed protection against unforeseen
events such as accidents, illness, fire, burglary et al. Unlike Life
Insurance, General Insurance is not meant to offer returns but is a

protection against contingencies. Almost everything that has a financial

value in life and has a probability of getting lost, stolen or damaged can
be covered through General Insurance policy.
Property (both movable and immovable), vehicle, cash, household goods,
health, dishonesty and also one's liability towards others can be covered
under general insurance policy. Under certain Acts of Parliament, some
types of insurance like Motor Insurance and Public Liability Insurance have
been made compulsory. Major insurance policies that are covered under
General Insurance are:
• Home Insurance
• Health Insurance
• Motor Insurance
• Travel Insurance
6. Unit Linked Insurance Plan
Unit linked insurance plan (ULIP) is life insurance solution that provides
for the benefits of protection and flexibility in investment. The investment
is denoted as units and is represented by the value that it has attained
called as Net Asset Value (NAV). The policy value at any time varies
according to the value of the underlying assets at the time.

ULIP provides multiple benefits to the consumer. The benefits include:
• Life protection
• Investment and Savings
• Flexibility
• Adjustable Life Cover
• Investment Options
• Transparency
• Options to take additional cover against
• Death due to accident
• Disability
• Critical Illness
• Surgeries
• Liquidity
• Tax planning
Features of Unit Linked Insurance Plan:-
• Premiums paid can be single, regular or variable. The payment

period too can be regular or variable. The risk cover can be
increased or decreased.
• The costs in ULIP are higher because there is a life insurance
component in it as well, in addition to the investment component.
• Investments can be made in gilt funds, balanced funds, money
market funds, growth funds or bonds.
• The policyholder can switch between schemes, for instance,
balanced to debt or gilt to equity, etc.
• As in all insurance policies, the risk charge (mortality rate) varies
with age.
• The maturity benefit is not typically a fixed amount and the
maturity period can be advanced or extended.
• The maturity benefit is the net asset value of the units.

• Insurance companies have the discretion to decide on their

investment portfolios.
• They are simple, clear, and easy to understand.
• Being transparent the policyholder gets the entire episode on the
performance of his fund.
• Provides capital appreciation.
• Investor gets an option to choose among debt, balanced and equity
funds.
• Lead to an efficient utilization of capital.
• ULIP products are exempted from tax and they provide life
insurance.
ULIP in Standard Chartered Bank
Standard Chartered offers a wide range of Life Insurance Products from

Bajaj Allianz Life Insurance Company, one of India's leading Insurance
companies.
The flexible Unit linked life insurance plans at Standard Chartered bank
provides the opportunity to participate in market-linked returns while
enjoying the valuable benefits of life insurance
7. Bajaj Allianz Life Insurance Co. Ltd.
Bajaj Allianz is a joint venture between Allianz AG one of the world's

largest insurance companies, and Bajaj Auto, one of the biggest 2 and 3
wheeler manufacturers in the world. Bajaj Allianz is into both life
insurance and general insurance.

Allianz Group is one of the world's leading insurers and financial services
providers. Founded in 1890 in Berlin, Allianz is now present in over 70
countries with almost 174,000 employees.
Bajaj group is the largest manufacturer of two-wheelers and three-

wheelers in India and one of the largest in the world.
ULIP – New Unit Gain

Bajaj Allianz “New Unit Gain” offers the unique option of combining the
protection of life insurance with the attractive prospect of investing in
securities. The investor has the freedom to choose the funds he wishes to
invest his money in, providing him the opportunity to have a direct stake
in the performance of the financial markets. One can also benefit from tax
advantages while protecting his loved ones against unfortunate events.
Key highlight of Bajaj Allianz New Unit Gain:-
• Your investment, apart from normal allocation, receives Loyalty

Units equivalent to 51% of First Year’s Annualized Premium over a
period of 10 years.
• Seven investment funds to choose from with unmatched flexibility

to manage your investments better.
• You policy continues to participate in investment performance of the

fund(s). Even if you are not able to pay 3 full years premium
• Maximum flexibility and Option to increase premium
• Partial withdrawals anytime after three years from the

commencement of policy provided three full years’ premiums are
paid.

• Three free switches every year.

• Option to pay unlimited top up premiums anytime during the tenure
of your policy to further enhance your savings.
• You have three simple terms to choose from – 15, 20 and 25 yrs.
• A host of optional additional rider benefits to provide you additional

protection
• Guaranteed Life Cover, with a flexibility to choose insurance cover

according to your changing needs.
• Tax Save
• Partial Withdrawals, Surrender Value, Death Benefit and Maturity

Benefit are eligible for tax benefits as per Section 10(10D) of the
Income Tax Act.
• The charges paid for UL Critical Illness and UL Hospital Cash Benefit
are eligible for tax benefits as per Section 80(D) of the Income Tax
Act.
How does the plan work?

Premiums paid by you, net of premium allocation charge, are invested in
fund(s) of your choice and units are allocated depending on the unit price
of the fund(s). The value of your policy is the total value of units that you
hold in the fund(s). The insurance cover charges, policy administration
charges and the additional rider benefit charges (if any) are deducted
through monthly cancellation of units. Fund Management Charge is priced
in the unit value.
Important Details of the ‘Bajaj Allianz New UnitGain’ Plan

Parameter Details
Minimum Age at Entry 0 years, risk commences at age 7.
(18 years in case of all Additional Rider Benefits
Maximum Age at Entry 60 years (50 years in case of all Additional Rider
Benefits)
Minimum Maturity Age 18 years
Maximum Maturity Age 75 years
Additional Rider Benefit 65 years for all riders except UL WOP
Ceasing Age
Minimum Premium Rs. 10,000 per yearly instalment,
(for Male lives) Rs. 5,000 per half-yearly instalment,
Rs. 1,000 per monthly mode
Minimum Top Up Premium is Rs. 5,000
(for Female lives) Rs. 3,750 per half-yearly instalment,
Rs. 750 per monthly mode
Minimum Top Up Premium is Rs. 5,000.
(Monthly mode for both male and female lives is
available through ECS and Salary Saving
Scheme only).
Minimum Sum Assured 0.5 * Policy Term * Annualized Premium
Maximum Sum Assured Multiplier * Annualized Premium
(Multiplier would depend on the age at entry
and
any riders chosen)
8. Mutual funds
Mutual Fund is an instrument of investing money. Nowadays, bank rates

have fallen down and are generally below the inflation rate. Therefore,
keeping large amounts of money in bank is not a wise option, as in real
terms the value of money decreases over a period of time.
One of the options is to invest the money in stock market. But a common
investor is not informed and competent enough to understand the

intricacies of stock market. This is where mutual funds come to the

rescue.
A mutual fund is a group of investors operating through a fund manager

to purchase a diverse portfolio of stocks or bonds. Mutual funds are highly
cost efficient and very easy to invest in. By pooling money together in a
mutual fund, investors can purchase stocks or bonds with much lower
trading costs than if they tried to do it on their own. Also, one doesn't
have to figure out which stocks or bonds to buy. But the biggest
advantage of mutual funds is diversification.
Diversification means spreading out money across many different types of

investments. When one investment is down another might be up.
Diversification of investment holdings reduces the risk tremendously.
The origin of the Indian mutual funds industry dates back to 1963 when
the Unit Trust of India (UTI) came into existence at the initiative of the
Government of India and the Reserve Bank of India. Since then the
mutual funds sector remained the sole fiefdom of UTI till 1987 when a
slew of non-UTI, public sector mutual funds were set up by nationalized
banks and life insurance companies.
The year 1993 saw sweeping changes being introduced in the mutual fund
industry with private sector fund houses making their debut and the
laying down of comprehensive mutual fund regulations. Over the years,
the Indian mutual funds industry has witnessed an exponential growth
riding piggyback on a booming economy and the arrival of a horde of
international fund houses.

First Phase – 1964-87 Growth of Unit Trust of India
Unit Trust of India (UTI) was established on 1963 by an Act of Parliament.

It was set up by the Reserve Bank of India and functioned under the
Regulatory and administrative control of the Reserve Bank of India. In
1978 UTI was de-linked from the RBI and the Industrial Development
Bank of India (IDBI) took over the regulatory and administrative control
in place of RBI. The first scheme launched by UTI was Unit Scheme 1964.
At the end of 1988 UTI had Rs.6, 700 crores of assets under
management.
Second Phase – 1987-1993 (Entry of Public Sector Funds)
1987 marked the entry of non- UTI, public sector mutual funds set up by
public sector banks and Life Insurance Corporation of India (LIC) and
General Insurance Corporation of India (GIC). SBI Mutual Fund was the
first non- UTI Mutual Fund established in June 1987 followed by Canbank
Mutual Fund (Dec 87), Punjab National Bank Mutual Fund (Aug 89),
Indian Bank Mutual Fund (Nov 89), Bank of India (Jun 90), Bank of
Baroda Mutual Fund (Oct 92). LIC established its mutual fund in June
1989 while GIC had set up its mutual fund in December 1990. At the end
of 1993, the mutual fund industry had assets under management of
Rs.47,004 crores.
Third Phase – 1993-2003 (Entry of Private Sector Funds)
With the entry of private sector funds in 1993, a new era started in the
Indian mutual fund industry, giving the Indian investors a wider choice of
fund families. Also, 1993
was the year in which the first Mutual Fund Regulations came into being,
under which all mutual funds, except UTI were to be registered and
governed. The erstwhile Kothari Pioneer (now merged with Franklin
Templeton) was the first private sector
Mutual fund registered in July 1993. The 1993 SEBI (Mutual Fund)
Regulations were substituted by a more comprehensive and revised

Mutual Fund Regulations in 1996. The industry now functions under the
SEBI (Mutual Fund) Regulations 1996.
The number of mutual fund houses went on increasing, with many foreign
mutual funds setting up funds in India and also the industry has
witnessed several mergers and acquisitions. As at the end of January
2003, there were 33 mutual funds with total assets of Rs. 1,21,805
crores. The Unit Trust of India with Rs.44,541 crores of assets under
management was way ahead of other mutual funds.
Fourth Phase – since February 2003
In February 2003, following the repeal of the Unit Trust of India Act 1963
UTI was bifurcated into two separate entities. One is the Specified
Undertaking of the Unit Trust of India with assets under management of
Rs.29,835 crores as at the end of January 2003, representing broadly, the
assets of US 64 scheme, assured return and certain other schemes. The
Specified Undertaking of Unit Trust of India, functioning under an
administrator and under the rules framed by Government of India and
does not come under the purview of the Mutual Fund Regulations.
The second is the UTI Mutual Fund Ltd, sponsored by SBI, PNB, BOB and
LIC. It is registered with SEBI and functions under the Mutual Fund
Regulations. With the bifurcation of the erstwhile UTI which had in March
2000 more than Rs.76,000 crores of assets under management and with
the setting up of a UTI Mutual Fund, conforming to the SEBI Mutual Fund
Regulations, and with recent mergers taking place among different private
sector funds, the mutual fund industry has entered its current phase of
consolidation and growth. As at the end of September, 2004, there were
29 funds, which manage assets of Rs.153108 crores under 421 schemes.
The graph indicates the growth of assets over the years.

9.1 Professional Management
Mutual Funds employ the services of skilled professionals who have years
of experience to back them up. They use intensive research techniques to
analyze each investment option for the potential of returns along with
their risk levels to come up with the figures for performance that
determine the suitability of any potential investment.
9.2 Potential of Returns
Returns in the mutual funds are generally better than any other option in
any other avenue over a reasonable period of time. People can pick their
investment horizon and stay put in the chosen fund for the duration.
Equity funds can outperform most other investments over long periods by
placing long-term calls on fundamentally good stocks. The debt funds too
will outperform other options such as banks. Though they are affected by
the interest rate risk in general, the returns generated are more as they
pick securities with different duration that have different yields and so are
able to increase the overall returns from the portfolio.
9.3 Liquidity

Fixed deposits with companies or in banks are usually not withdrawn

premature because there is a penal clause attached to it. The investors
can withdraw or redeem money at the Net Asset Value related prices in
the open-end schemes. In closed-end schemes, the units can be
transacted at the prevailing market price on a stock exchange. Mutual
funds also provide the facility of direct repurchase at NAV related prices.
The market prices of these schemes are dependent on the NAVs of funds
and may trade at more than NAV (known as Premium) or less than NAV
(known as Discount) depending on the expected future trend of NAV,
which in turn is linked to general market conditions. Bullish market may
result in schemes trading at Premium while in bearish markets the funds
usually trade at Discount. This means that the money can be withdrawn
anytime, without much reduction in yield. Some mutual funds however,
charge exit loads for withdrawal within a specified period.
9.4 Effective Regulation
Unlike the company fixed deposits, where there is little control with the
investment being considered as unsecured debt from the legal point of
view, the Mutual Fund industry is very well regulated. All investments
have to be accounted for, decisions judiciously taken. SEBI acts as a true
watchdog in this case and can impose penalties on the AMCs at fault. The
regulations, designed to protect the investors’ interests are also
implemented effectively.
9.5 Transparency
Being under a regulatory framework, mutual funds have to disclose their

holdings, investment pattern and all the information that can be
considered as material, before all investors. This means that the
investment strategy, outlooks of the market and scheme related details
are disclosed with reasonable frequency to ensure that transparency

exists in the system. This is unlike any other investment option in India
where the investor knows nothing as nothing is disclosed.
9.6 Flexible and Affordable
Mutual Funds offer a relatively less expensive way to invest when

compared to other avenues such as capital market operations. The fee in
terms of brokerages, custodial fees and other management fees are
substantially lower than other options and are directly linked to the
performance of the scheme. Investment in mutual funds also offers a lot
of flexibility with features such as regular investment plans, regular
withdrawal plans and dividend reinvestment plans enabling systematic
investment or withdrawal of funds. Even the investors, who could
otherwise not enter stock markets with low investible funds, can benefit
from a portfolio comprising of high-priced stocks because they are
purchased from pooled funds.
9.6 Charges
The Asset Management Companies (AMCs) managing the Mutual Funds

levy a load as a percentage of NAV at the time of entry into the Schemes
or at the time of exiting from the Schemes.
• Entry Load - It is the load charged by the fund when an investor

invests into the fund. It increases the price of the units to more
than the NAV and is expressed as a percentage of NAV.
• Exit Load - It is the load charged by the fund when an investor
redeems the units from the fund. It reduces the price of the units to
less than the NAV and is expressed as a percentage of NAV.
• Cost of Churning/Turnover cost - It refers to the costs
associated with the churning (or changes made to the holdings) of
the portfolio. Portfolio changes have associated costs of brokerage,
custody fees, transaction fees and registration fees, which lower the

returns. The quantum depends on the management style of the

fund manager.
• Expense Ratio - The Expenses of a mutual fund include
management fees and all the fees associated with the fund's daily
operations. Expense Ratio refers to the annual percentage of fund's
assets that is paid out in expenses.
9.7 Tax
• Capital Gains Tax- The profit realizations on sale of securities and

certain other capital assets (including units of mutual funds) are
called capital gains. The gains can be classified into long-term or
short-term depending on the period of holding of the asset and are
charged to tax at different rates. Gains on mutual fund units held
for a period of 12 months or more are long-term gains. These gains
are taxable.
• Dividend Distribution Tax – The Mutual Fund schemes

distributing dividends on their units to the investors attract a
distribution tax as per tax laws.
• Securities Transaction Tax – AMCs managing the portfolio have

to pay STT on transaction (buying/selling) of different securities in
the stock market. Presently the tax rate is 0.025%.
9.8 Pointers to Mutual Fund Performance
Mutual Fund industry today, with about 34 players and more than five
hundred schemes, is one of the most preferred investment avenues in
India. However, with a plethora of schemes to choose from, the retail
investor faces problems in selecting funds. Factors such as investment
strategy and management style are qualitative, but the funds record is an
important indicator too. Though past performance alone cannot be
indicative of future performance, it is the only quantitative way to judge

how good a fund is at present. Therefore, there is a need to correctly

assess the past performance of different mutual funds. Quite simply then
a fund generating more returns than the other is considered better than
the other. But this is just half the story.
Return alone should not be considered as the basis of measurement of the

performance of a mutual fund scheme, it should also include the risk
taken by the fund manager because different funds will have different
levels of risk attached to them.
Risk associated with a fund can be defined as fluctuations in the returns

generated by it. The higher the fluctuations in the returns of a fund during
a given period, higher will be the risk associated with it. These
fluctuations in the returns generated by a fund are resultant of two
guiding forces. First, general market fluctuations affecting all the
securities present in the market are called market risk or systematic risk
and second, fluctuations due to specific securities present in the portfolio
of the fund, called unsystematic risk. The Total Risk of a given fund is sum
of these two and is measured in terms of standard deviation of returns of
the fund.
Systematic risk is measured in terms of Beta, which represents

fluctuations in the NAV of the fund vis-à-vis market. The more responsive
the NAV of a mutual fund is to the changes in the market; higher will be
its beta. Beta is calculated by relating the returns on a mutual fund with
the returns in the market. While unsystematic risk can be diversified
through investments in a number of instruments, systematic risk cannot.
By using the risk return relationship, we try to assess the competitive
strength of the mutual funds vis-à-vis one another in a better way. It
should be appreciated that there is a level of risk that a fund has taken to
generate this return. So what is really relevant is not just performance or
returns. What matters therefore are Risk Adjusted Returns (RAR).

The only caveat whilst using any risk-adjusted performance is the fact
that their clairvoyance is decided by the past. Each of these measures
uses past performance data and to that extent are not accurate indicators
of the future.
9.9 Benefits of Mutual Funds
Investor is benefited by investing in Mutual Funds because
• Diversification: - Diversified portfolio is balanced in varying

economic conditions. When there is rise in interest rate, some
securities decrease and some increase in value. Gradually the value
of overall portfolio increases over time even if some securities lose
value
• Professional Management - Top managers are paid by Mutual
funds to manage their investments. They decide what securities the
fund will buy and sell
• Liquidity - Money can be taken out of mutual fund anytime easily
• Convenient - Mutual fund shares can be bought by email, phone or
over internet.
• Regulatory Oversight - Investors are protected from fraud as
mutual funds are subject to government regulations
• Low Cost - Expenses of Mutual Fund is 1.5% of the investment.
• Tax Benefits - Investors gets tax benefits over the money invested
in Mutual Fund
• Transparent and Flexible
• Choice of Schemes - Investor can choose between many schemes
• Well regulated
9.10 Disadvantages of Mutual Funds
• No Guarantee - When the entire stock market goes down, the

Mutual Fund shares will also go down even if the portfolio is
balanced though the risk is low
• Administrative fees or sales commissions is charged by all the funds

to compensate brokers and financial planners
• Taxes have to be paid on the income the investors make even if you
reinvest the profit
• Management Risk is always there as the funds manager takes the

decision for you regarding funds portfolio
9.11 Types of Mutual Funds
• Open-end fund
• Exchange-traded funds
• Equity funds
o Capitalization
o Growth vs. value
o Index funds versus active management
• Bond funds
• Money market funds
• Funds of funds
• Hedge funds
9.12 Performance Comparison of Mutual Funds
• Equity Linked Savings Scheme - A special product offered by

mutual funds. These schemes invest in equity i.e shares and
generally have a lock-in period of three years.
• Balanced Funds – These funds invest part of their corpus into

Debt Instruments which give a fixed rate of return and the
remaining part of the corpus into Equity giving a high rate of return.
Thus, overall the balanced funds give a moderate rate of return with
lower risk as compared to the pure equity funds.

9.13 Criticism of managed mutual funds:-
• Historically, only a small percentage of actively managed mutual

funds, over long periods of time, have returned as much, or more
than comparable index mutual funds.
• Critics point out that high sales commission can sometimes
represent a conflict of interest, as high commissions benefit the
sales people but hurt the investors. Although in reality, "A shares",
which appear to have the highest up front load, (around 5%) are
the "cheapest" for the investor, if the investor is planning on 1)
keeping the fund for more than 5 years, 2) investing more than
100,000 in one fund family, which likely will qualify them for
"breakpoints", which is a form of discount, or 3) staying with that
"fund family" for more than 5 years, but switching "funds" within
the same fund company
• Mutual fund managers and companies need to disclose by law, if
they have a conflict of interest due to the way they are paid. In
particular fund managers may be encouraged to take more risks
with investors’ money than they ought to: Fund flows (and
therefore compensation) towards successful, market beating funds
are much larger than outflows from funds that lose to the market.
Fund managers may therefore have an incentive to purchase high
risk investments in the hopes of increasing their odds of beating the
market and receiving the high inflows, with relatively less fear of
the consequences of losing to the market.
• Difficulty to effectively manage large pool of money
• some funds illegally are gulity of market timing and that some fund
managers, also illegal, accept extravagant gifts in exchange for
trading stocks through certain investment banks, which presumably
charge the fund more for transactions than would non-gifting
investment bank. This practice, although done, is completely illegal.

9. ULIP Vs. Mutual Funds

• Unit Linked Insurance Policies (ULIPs) as an investment avenue are
closest to mutual funds in terms of their structure and functioning.
As is the case with mutual funds, investors in ULIPs are allotted
units by the insurance company and a net asset value (NAV) is
declared for the same on a daily basis.
• Similarly ULIP investors have the option of investing across various
schemes similar to the ones found in the mutual funds domain, i.e.
diversified equity funds, balanced funds and debt funds to name a
few. Generally speaking, ULIPs can be termed as mutual fund
schemes with an insurance component.
• However it should not be construed that barring the insurance
element there is nothing differentiating mutual funds from ULIPs.
The various factors where the ULIPs and Mutual Funds differ are as
follows:
ULIPs Mutual Funds

Investment Determined by Minimum investment amounts are
amounts the investor and determined by the fund house
can be modified
as well
Expenses No upper limits, Upper limits for expenses chargeable to

expenses investors have been set by the regulator
determined by
the insurance
company
Portfolio Not mandatory Quarterly disclosures are mandatory
disclosure

Modifying Generally Entry/exit loads have to be borne by the

asset permitted for investor
allocation free or at a
nominal cost
Tax benefits Section 80C Section 80C benefits are available only on
benefits are investments in tax-saving funds
available on all
ULIP
investments
With these comparable there are certain factors where in these two differ.
Mutual funds are essentially short to medium term products. The liquidity
that these products offer is valuable for investors. ULIPs, in contrast, are
positioned as long-term products and going ahead, there will be separate
playing fields for ULIPS and MFs, with the product differentiation between
them becoming more pronounced. ULIPs do not seek to replace mutual
funds, they offer protection against the risk of dying too early, and also
help people save for retirement. Insurance has to be an integral part of
one's wealth management portfolio. Further, exposure of Indian
households to capital markets is limited.

10.Taxation
India has a well developed tax structure with a three-tier federal

structure, comprising the Union Government, the State Governments and
the Urban/Rural Local Bodies. The power to levy taxes and duties is
distributed among the three tiers of Governments, in accordance with the
provisions of the Indian Constitution. The main taxes/duties that the
Union Government is empowered to levy are Income Tax (except tax on
agricultural income, which the State Governments can levy), Customs
duties, Central Excise and Sales Tax and Service Tax. The principal taxes
levied by the State Governments are Sales Tax (tax on intra-State sale of
goods), Stamp Duty (duty on transfer of property), State Excise (duty on
manufacture of alcohol), Land Revenue (levy on land used for
agricultural/non-agricultural purposes), Duty on Entertainment and Tax on
Professions & Callings. The Local Bodies are empowered to levy tax on
properties (buildings, etc.), Octroi (tax on entry of goods for
use/consumption within areas of the Local Bodies), Tax on Markets and
Tax/User Charges for utilities like water supply, drainage, etc.
Since 1991 tax system in India has under gone a radical change, in line
with liberal economic policy and WTO commitments of the country. Some
of the changes are:
• Reduction in customs and excise duties

• Lowering corporate Tax
• Widening of the tax base and toning up the tax administration
The fifth consecutive budget presented by the FM, Mr. P. Chidambaram

,was also a dream one for the salaried class……..With the higher tax
limits on the income tax slabs ,the increased basic exemption limit for
senior citizens ,women and individuals in general, etc. the budget gives
much relief to the middle class as it aims at reducing their overall tax
liability by a good measure. Here we can take a look at the direct tax
proposals and the impact they will have on our finances.
Income tax slabs
The exemption limit for personal income tax has been enhanced to Rs.
1.80 lakh from the present Rs. 1.45 lakh for women (below the age of 65
years),Rs. 2.25 lakh from the present Rs.1.95 lakh for senior citizens and
Rs.1.5 lakh from the present Rs.1.1 lakh for others. The revised tax slabs
are as tabulated on the next page.
Proposed tax slab for FY 2008-09(Assessment Year 2009-10)
For Men below 65 For Women below 65 For Senior Citizens

years of age Years of age
Income Tax Income level Tax Income level Tax

level rate rate rate
Up to Nil Up to Nil Up to Nil

Rs.1,50,000 Rs.1,80,000 Rs.2,25,000
Rs. 10% Rs.1,80,001- 10% Rs.2,25,001- 10%

1,50,001- Rs.3,00,000 Rs.3,00,000
Rs.
3,00,000
Rs. 20% Rs.3,00,001- 20% Rs.3,00,001- 20%
3,00,001- Rs.5,00,000 Rs.5,00,000
Rs.
5,00,000
Above 30% Above 30% Above 30%
Rs.5,00,000 Rs.5,00,000 Rs.5,00,000
The revision of the income slabs and the applicable rates of tax will result
in substantial savings for individuals across all income ranges. The

following table gives a comparative analysis of the post budget savings

that will accrue:
Comparative analysis of post-budget Tax Savings
Male Tax payers Female Tax payers

(below the age of 65 years) (below the age of 65
years)
Income Existing Tax Savings Existing Tax Savin
(Rs.) tax liability as (Rs.) tax liability as gs
liability per liability per (Rs.)
(Rs.) Budget (Rs.) Budget
2008(Rs.) 2008(Rs.)
1 lakh Nil Nil Nil Nil Nil Nil
2 lakh 14,420 5,150 9,270 10,815 2,060 8,755

3 lakh 40,170 15,450 24,720 36,565 12,360 24,20
5
4 lakh 71,070 36,050 35,020 67,465 32,960 34,50
5
5 lakh 1,01,970 56,650 45,320 98,365 53,560 44,80
5
7 lakh 1,63,770 1,18,450 45,320 1,60,165 1,05,060 55,10
5
10 lakh 2,56,470 2,11,150 45,320 2,52,865 1,97,760 55,10
5
15 lakh 4,52,067 4,02,215 49,852 4,48,102 3,87,486 60,61
6
20 lakh 6,22,017 5,72,165 49,852 6,18,052 5,57,436 60,61
6
Senior Citizens(65 Years & above)
Income (Rs.) Existing tax Tax liability as Savings (Rs.)

liability (Rs.) per budget 2008
(Rs.)
1 lakh Nil Nil Nil
2 lakh 1,030 Nil Nil
3 lakh 26,780 7,725 19,055
4 lakh 57,680 28,325 29,355
5 lakh 88,580 48,925 39,655

7 lakh 1,50,380 1,10,725 39,655
10 lakh 2,43,080 2,03,425 39,655
15 lakh 4,37,338 3,93,718 43,620
20 lakh 6,07,288 5,63,668 43,620
After a glimpse at the above tables we can conclude that there is

immense saving potential for individual tax payers across all categories.
The reduction in tax liabilities aims at making lives easier for the middle
class. It also tries to enhance their purchasing power and, in the process
gives impetus to demand and growth of the industry

11.ABN-AMRO Bank

12.1 History
The origin of ABN AMRO Bank can be traced to 1824 King Willem-I issued
a royal decree creating the Nederlandsche Handel-Maatschappij (NHM)
with the aim of reviving trade between the Netherlands and the Dutch
East Indies. In 1964, NHM merged with De Twentsche Bank to form
Algemene Bank Nederland (ABN), while Amsterdamsche Bank and
Rotterdamsche Bank joined to become Amsterdam-Rotterdam (Amro)
Bank. In 1991, these two banks merged to form ABN AMRO Bank.
Today, ABN AMRO's international network comprises 3,568 branches and
offices in over 320 cities and 76 countries and territories, with over
100,000 highly qualified staff.
In India, ABN AMRO Bank has launched its Private Banking Services,
offering a comprehensive range of high quality Portfolio Advisory Services
along with a comprehensive transaction execution platform. ABN AMRO
(India) has branches in Bangalore, Baroda, Chennai, Delhi, Gurgaon,
Hyderabad, Kolkata, Lucknow, Mangalore, Moradabad, Mumbai, Noida,
Panipat, Pune, Surat and Tirupur.
12.2 Consumer base banking products
 Deposits - Savings, Current and Easy Draw Fixed Deposit Accounts

 Loans - Home, Personal, Car Loans and Business loans
 Credit Cards - accepted globally, credit card payments made easier
through Drop Box (1700 across the city) system for cheque
payments.
 Debit Cards - Accepted at over 200,000 merchant locations for
direct payments In India and ATM Withdrawal from around 12,000
ATM's Under ABN AMRO and Associates.
 NRI Services
 Investment Services - Mutual Funds and Bonds

12.3 Saving Account in ABN-AMRO Bank

• Flex Plus
• Flex Advantage
• Flex Privilege
• Incentive
12.4 Features for all (Except Incentive Saving a/c) ABN-AMRO

Saving Account (In General):-
• Experience the freedom of accessing your account from anywhere,

anytime.
• International Debit Card.
• 365 Days Banking & 24-Hour Bank by Phone.
• Bancafé: Enjoy a cup of fresh coffee while banking between 7.30
pm and 11 pm at our Bancafé.
• Mobile/SMS Banking - Mpower
• Utility Payments.
• Online Railway Reservations.
• E- Statements
• Customised Alerts
12.5 Flex Plus

The Flex Plus Savings Account provides a gamut of enhanced services,
while letting you enjoy unique benefits. With extra access and
convenience of banking, the Flex Plus Savings Account actually rewards
you for using it, thereby, giving more value for your money and time.
Some Features of Flex Plus
Some Additional Features:-
• Free Payable At Par Cheque Books.

• Royalties: When you open an ABN AMRO Flex Plus Savings Account,
you automatically become a member of India’s first Banking
Rewards Program.
• Co-branded Indian Airlines Debit Card: Free membership to IA
Flying Returns Program, Free upgrade to business class, 10%
discount on regular fares, 5% discount on APEX fares and bonus
royalties on tickets, and much more. These power packed features
are available at a registration fee of Rs.399 and renewal charges of
Rs.250 p.a. (service tax extra).
Details of Flex Plus Saving Account:-
Savings Account Plan Flex Plus

Monthly Balance Requirement Rs. 10,000 pm
Add-on Account 1 Savings Account at aggregate
balance requirement of
Rs.15,000 pm
Debit Card Rs.180 pa
Indian Airlines Card (optional) Rs.399 registration fee + Rs.250 pa
Gold Debit Card (optional) Rs.400 pa
UTI and MasterCard ATMs Free Domestic cash withdrawal*
POS/ATM Daily limit Rs.50,000
At Par Cheque Books Free
Cash Delivery (Rs.1,000 to 1 Free per day
Rs.100,000)
Account Statement Monthly on e-mail
Railway Ticket Booking Service Free
Bill Payments Free
Online Banking Free
*Subject to maintenance of average balance requirement.
12.6 Flex Advantage:-

The Flex Advantage Savings Account is more than just your ordinary
savings account - it's your window to endless financial opportunities. You
get expert assistance by Personal Bankers who help you make choices,

suiting your financial needs and risk profile. The account offers you
transactional ease and takes banking to a new level with its host of
powerful features.
• No Minimum Balance: The Flex Advantage Savings Account comes

with a unique feature. It lets you operate your account without
maintaining a minimum balance. Fulfill a simple criteria and avail of
this benefit.
• Personalised Payable at Par Cheque Books.
• royalties on tickets and much more. These amazing benefits are
available at a registration fee of Rs. 399 and renewal charges of Rs.
250 p.a.
• Purchase on debit card (ATM daily limit) Rs 50,000
Details of Flex Advantage Saving Account:-
Monthly Balance Requirement No minimum balance**

Debit Card Rs.180 p.a.
Gold Debit Card (optional) Rs.400 p.a.
Indian Airlines Card (optional) Rs.399 registration fee + Rs.250
p.a.
UTI Bank/MasterCard ATMs Free Domestic Withdrawals**
Purchase on Debit Card/ATM Rs.50,000
Dailylimit
At par Cheque Books Free
Cash Delivery (Rs.1,000 to 1 Free per day
Rs.100,000)
Account Statement Monthly on e-mail
Railway Ticket Booking Service Free
Bill Payments Free
Online Banking Free
• **Subject to minimum transaction fulfillment.
12.7 Flex Privilege:-

Flex Privilege Savings Account is a truly unique savings account. With a

host of value added features and personalised services, it is designed to
cater to successful individuals like you, who expect nothing but the best.
Extend the privileges on this exclusive account to your family with two
complimentary savings accounts.
• Free Demand Drafts

• Personalised Payable At Par Cheque Books
• Drop-Box Service
• Portfolio Statements
Details of Flex Privilege Saving Account:-
Savings Account Plan Flex Privilege

Monthly balance requirement Rs.50,000 pm
Add-on account 2 savings account within above balance
requirement
Welcome Reward Points 500 points on account activation
Debit Card Lifetime free
Indian Airlines Card (optional) Rs.399 registration fee + Rs.250 pa
Gold Debit Card (optional) Rs.400 pa
UTI and MasterCard ATMs Free cash withdrawal*
POS/ATM daily limit Rs.1 lac
Drafts All free (conditions apply)
Cash Delivery (Rs. 1,000 to Rs. Unlimited
100,000)
At par cheque books Free
Account statement Monthly
Railway ticket booking service Free
Bill payments Free
Online banking Free
*Subject to maintenance of average balance requirement.
12.8 Flex Incentive:-

All company needs to do is open your incentive account today for your
monthly salary and you experience the personalised service that makes
ABN AMRO the better alternative in banking. Because your work
pressures shouldn't be compounded by a bank that doesn't respond to
your crunching schedules.
Features:-
• Zero Balance Account: You do not have to maintain a minimum

balance in your Savings Account.
• International Debit Card
• Safety Shield - a temporary overdraft facility
• 365 Days Banking-up to 7 pm.
• Personal and Car Loans
• Insurance Products
• National Access: Open an account in any branch and access it from
any other branch in India.
• Portfolio Statements
• Combined Interest Certificates.
• Free Credit Card: The Freedom Credit Card can be yours FREE for
the first year with an Add-on card, also free for the first year. You
can also apply for India's first chip-enabled Credit Card - the Smart
Gold Card - and get one Add-on card free for life!

12.Housing Development Finance Corporation Limited

(HDFC)Bank

13.1 History
HDFC Bank was incorporated in August 1994 in the name of 'HDFC Bank
Limited', with its registered office in Mumbai, India. The Bank commenced
operations as a Scheduled Commercial Bank in January 1995.
The Housing Development Finance Corporation Limited (HDFC) was
amongst the first to receive an 'in principle' approval from the Reserve

Bank of India (RBI) to set up a bank in the private sector, as part of the
RBI's liberalization of the Indian Banking Industry in 1994.
Headquartered in Mumbai, HDFC Bank, has a network of over 531
branches spread over 228 cities across India. All branches are linked on
an online real-time basis. Customers in over 120 locations are serviced
through Telephone Banking. The Bank also has a network of about over
1054 networked ATMs across these cities. HDFC Bank's ATM network can
be accessed by all domestic and international Visa / MasterCard, Visa
Electron / Maestro, Plus / Cirrus and American Express Credit / Charge
cardholders.
HDFC Bank has won many awards for its excellent service. Major among
them are "Best Bank in India" by Hong Kong-based Finance Asia
magazine in 2005 and "Company of the Year" Award for Corporate
Excellence 2004-05.
13.2 The Personal Banking Services include:
• Accounts and Deposits

• Loans
• Credit, Debit and Demat Cards
• Investments and Insurance
• Forex and Trade Services
• Private Banking
13.3 Saving Accounts in HDFC Bank:-

In HDFC Bank total 17 different types of account have. But mainly 4 types
of saving account we will discuss here. Because other are salary a/c, kids
a/c etc.

• Regular Saving Account

• Saving Plus Account
• Saving Max Account
• No frills Account
13.3.1 Regular Saving Account

Features:-
• Wide network of branches and over thousand ATMs to meet all your
banking needs no matter where you are located.
• Bank conveniently with facilities like NetBanking and MobileBanking-
check your account balance, pay utility bills or stop cheque
payment, through SMS.
• Never overspend- Shop using your International Debit Card that
reflects the actual balance in your savings account.
• Personalised cheques with your name printed on each cheque leaf
for enhanced security.
• Take advantage of BillPay, an instant solution to all your frequent
utility bill payments. Instruct for payment over the phone or
through the Internet.
• Avail of facilities like Safe Deposit Locker, Sweep-In and Super
Saver facility on your account.
• 3 Free transactions on SBI/Andhra Bank ATMs per month.
• Free Payable-at-Par chequebook, without any usage charges upto a
limit of Rs.50,000/- per month.
• Free InstaAlerts for all account holders for lifetime of the account.
• Free Passbook facility available at home branch for account holders
(individuals).
• Free Email Statement facility.
13.3.2 Saving Plus Account:-

Features:-

• Minimum Balance required 5,000

• Wide network of branches and over thousand ATMs to meet all your
banking needs no matter where you are located.
• 2 Free transactions on SBI/Andhra Bank ATMs per month.
• 3 Free transactions on any other Bank's ATM per month.
• Free International Debit Card for all account holders for life time of
the account.
• Free Payable at Par (PAP) chequebook without any usage charges
upto a limit of 50,000 per month.
• Free Demand Drafts on HDFC Bank locations, upto a limit of
25,000/- per day.
• Free BillPay & InstaAlerts for all account holders for lifetime of the
account.
• Free Electronic Funds Transfer facility, NetBanking, PhoneBanking &
MobileBanking.
• Special relationship discount on purchase of Gold Bars.
• 25%-off on the Locker rental for the 1st year (only).
• Intercity Banking / Multi-city Banking.
• Free Passbook facility available at home branch for account holders
(individuals).
13.3.3 Saving Max Account:-
Features:-

• Free unlimited transactions: Cash withdrawal and balance enquiry,

at all HDFC Bank ATMs & on any other Bank's ATM using your HDFC
Bank Debit Card.
• Free Gold Debit Card for primary account holder for lifetime of the
account. Gold Debit Card for other account holders at Rs 250/- p.a.
• Free Woman's Advantage/International Debit Card for all account
holders for lifetime of the account.
• Free Payable-at-Par (PAP) chequebook, without any usage charges
upto a limit of 1 lac per month.
• Free Demand Drafts on HDFC Bank locations, upto a limit of
50,000/- per day at home branch.
• Self/Third Party Cash Deposit/Withdrawal at non-home branches,
upto Rs 50,000/- per day free. Above Rs 50,000 a charge of Rs 2.90
per thousand on the full amount would be applicable.
• Optional sweep out facility to transfer extra savings to a Fixed
Deposit, at the threshold of Rs.50,000/-. In the event of the balance
in SavingsMax account exceeding Rs 50,000/-, the amount in
excess of Rs 50,000/- will be swept out in to a Fixed Deposit with a
minimum value of Rs 25000/- for a 1year 1day period.
• Free BillPay & InstaAlerts for all account holders for lifetime of the
account.
• Free Monthly Statement of Account.
• 50% off on the Locker rental for the 1st year only.
• Folio maintenance charges on Demat account free for first year.
• Free National Electronic Funds Transfer facility, NetBanking,
PhoneBanking & MobileBanking.
• Free Passbook facility available at home branch for account holders.
13.3.4 No frill Account:-
Features:-

• Access a wide network of branches and over a thousand ATMs

across the country to meet all your banking needs.
• Bank conveniently with facilities like Free NetBanking and
MobileBanking.
• Use the Free Electronic Funds Transfer (EFT) facility to transfer
funds from your HDFC Bank account to an account in another Bank
at the locations as specified by RBI.
• Enjoy Free IVR based PhoneBanking. (Agent assisted calls will be
charged)
• Get Free Quarterly Account Statements.
• Access your account through a Free ATM Card.
• Enjoy free Cash Deposits at Branch/ATM.
• 9 Free Cash withdrawals per Quarter at Branch and HDFC Bank
ATMs.
• International Debit Card available only on request at the branch @
Rs. 100/- p.a. for each applicant.
• First Chequebook consisting of 25 leaves free and subsequent
cheque books to be charged at the rate of Rs 5/- per cheque leaf.
• Take advantage of BillPay, an instant solution to all your frequent
utility bill payments. Instruct for payment over the phone or
through the Internet.
• Enjoy InstaAlerts via e-mails or SMS at nominal charges.
• Avail facilities like Safe Deposit Locker, Sweep-In and Super Saver
on your account.
• Free Email Statement facilit
13.The Industrial Credit and Investment Corporation

of India Limited (ICICI) Bank

14.1 History
ICICI Bank is India's second-largest bank. The Bank has a network of
about 573 branches and extension counters and over 2,000 ATMs. ICICI

Bank was originally promoted in 1994 by ICICI Limited, an Indian

financial institution, and was its wholly-owned subsidiary.
ICICI was formed in 1955 at the initiative of the World Bank, the
Government of India and representatives of Indian industry. The objective
was to create a development financial institution for providing medium-
term and long-term project financing to Indian businesses.
n the 1990s, ICICI transformed its business from a development financial
institution offering only project finance to a diversified financial services
group offering a wide variety of products and services, both directly and
through a number of subsidiaries and affiliates like ICICI Bank.
In 1999, ICICI become the first Indian company and the first bank or
financial institution from non-Japan Asia to be listed on the NYSE. In
2001, ICICI bank acquired Bank of Madura Limited.
ICICI Bank set up its international banking group in fiscal 2002 to cater to
the cross border needs of clients and leverage on its domestic banking
strengths to offer products internationally. ICICI Bank currently has
subsidiaries in the United Kingdom, Canada and Russia, branches in
Singapore and Bahrain and representative offices in the United States,
China, United Arab Emirates, Bangladesh and South Africa.
Today, ICICI Bank offers a wide range of banking products and financial
services to corporate and retail customers through a variety of delivery
channels and through its specialised subsidiaries and affiliates in the areas
of investment banking, life and non-life insurance, venture capital and
asset management.
14.2 The Personal Banking Services include:
 Deposits: deposits into savings account, fixed deposits, security

deposits and recurring deposits.
 Loans: home loans, car loans, personal loans, loans against

property, gold and securities besides much other special financial
assistance for rural and industrial use.
 Investments: bonds, mutual funds, Senior citizens savings and Pure
Gold.
 Insurance: home, vehicle and health insurance.
 Foreign Exchange Services
 Demat And Credit Services
 Wealth Management
 Private Baking
 Online Banking Services
14.3 Saving Account in ICICI Bank:-
ICICI bank offers 9 different types of Saving Account. We discuss here

main 4 types of saving accounts.
• Saving account
• Special Saving Account
• People’s Saving Account
• No Frill Account
14.3.1 Saving Account:-
Features
• The ICICI Bank International debit card is a debit-cum-ATM card

providing you with the convenience of acceptance at merchant
establishments and cash withdrawals at ATMs.
• The next time you want to withdraw cash from your ICICI Bank
Savings account, just walk into any bank's ATM and use your ICICI
Bank ATM-cum-Debit card for free. The above benefit is available to
individual domestic Savings Account holders on maintenance of a
quarterly average balance of more than Rs.10, 000 in the savings

account in a quarter. The above benefit can be availed in the same

quarter.
• Money Multiplier Facility
• Internet Banking is offered free of cost.
• Anywhere Banking - This facility entitles the account holder to
withdraw or deposit cash upto a limit of Rs.50,000 across all ICICI
Bank branches.
• You can give us various types of standing instructions like
transferring to fixed deposit accounts at regular intervals.
• An average quarterly balance of Rs.10,000 only in metro and urban
locations and Rs.5,000 only in semi-urban and rural locations.
• Nomination facility is available.
• Interest is payable half-yearly.
Minimum Balance*
Type of Account Balance
Rs 10,000 in metro and urban

locations
Savings Account
Rs.5,000 in Semi urban areas
Non-maintenance of the minimum average quarterly balance

attracts a fee of Rs 750 per quarter.
14.3.2 People’s Saving Account:-

Features
• A savings account from ICICI Bank available only through our Rural
branches.
• Minimum balance of Rs.500/-.
• No annual fees.
• Unlimited transactions at the base branch where you have opened
your account.
• Internet, Phone and Mobile banking free of cost.
14.3.3 Super Saving Account:-
Features
• Operating account with free multi city chequebook facility.

• Money Multiplier Facility
• We trust totally your commitment to the account and the
relationship and do not prescribe any minimum balance
requirement. In other words, there is no penalty for non-
maintenance of minimum balances in the accounts.
• Internet Banking
• Phone Banking
• Free Anywhere banking
• Free collection of outstation cheques
• Free monthly account statements
• Inward remittance through Money2India for FCRA approved trusts
14.3.4 No Frill Account:-
• The quarterly average balance requirement for this account is nil

• Free ICICI Bank VISA debit card
• One chequebook of 25 leaves per annum free.
• Internet Banking is not available.

• Mobile Banking is not available.

• Access to all ICICI Bank ATMs free
• All anywhere banking transaction chargeable at normal charges as
published from time to time
• Interest payable half yearly.

14.Comparison of various bank’s Service and Charges

with Standard Chartered Bank.
Standard
S Chartere ABN
.no Features d ICICI AMRO HDFC
1 Avg.Quaterly Bal. 10,000 10000 (ADB)10000 5000
2 Rate of Interest 3.50% 3.50% 3.50% 3.50%
25(Per
3 Internet Banking Free Free month) Free
4 Doorstep Banking Free Free Free free
5 Phone Banking Free Free 100 50
Standing 125+25per
6 Instructions tr. 50 150+25
7 DDs n payorders Free 2/- per 1000 50 Free
Acc. Maintainace
8 charges
(a) AQB<5000 1,500 750 500 750
(b)AQB>or=5,000&
<7000 1,250 750 500 750
(c)AQB>or=7,500&
<10000 750 750 500 750
(d)AQB>or=10,000 0 0 0 0
Quarterly
9 Statement Free Free Free free
10 Monthly Statement Free Free Free free
Duplicate
11 Statement 100/150 100 100 100
12 Pass Book Free Free Free
Duplicate Pass
13 book 100
14 Cheque book Free Free 50 Free
15 ATM card Free Free Free Free
ATM card usage
16 outside India 140 100
Debit card(Per
17 year) 200 99 180 110
Gold Debit
18 card(Per year) 799 400 500
19 Lost Card re-issue
(a) ATM Card 100 200 100
(b) Debit card 200 200 100
(c) Gold Debit card 799 500
20 Manual cash
withdrawal
(a) within India 100
(b) outside India 150
Replacement of
21 Pin Free 25 25
22 Account closure 500 50 500 100
23 Stop Payment
(a) Single cheque 100 100 100 50
(b) range of
cheques 200 100 100 100
24 Cheque return
(a)issued by
customer 300 350 350 350
(b)deposited by
customer 100 100 100 100
150+other
(c ) Foreign banks 125+
currency cheques charges charges 200

15.Saving Account Potential Survey

A survey was being conducted as a part of project in Delhi NCR region to
analyse the market potential of saving account specially SBC’s saving
account in comparison to other banks. The total sample size of the survey
is 60.
16.1 Objective:-
• To know the customers interests in saving account
• To know the present scenario of saving account
• To know what’s the service facility customer want.
• To know the how much customers want to more facilities in using
bank account
• To understand, are they wanted to open a saving account in another
bank, if yes then what is the reason behind it.
16.2 Research Methodology
The research methodology consisted of two phases. Phase one consisted

of data collection. It included primary data collection as well as secondary
data collection. Primary data collection consisted of the survey process.
People of different age group as well as income category were asked to fill
a common questionnaire. Secondary data collection consisted of data
collection from internet and books.
The second phase consisted of analyzing the primary data. The analysis
consisted of graphs and inferring results or trends from those graphs.
Some general conclusions could be drawn from the primary data.
16.3 Survey Analysis
1. Male Vs Female
2. No. of people participated in survey on the basis of

different age group.

In this survey total 60 persons participated. Out of 60, 54 are male and 6
are female. If we take the people age group wise then 20-30(44%), 30-
40(28%), 40-50(23%) and 50-60(5%). This shows that younger
generation more attract towards privatisation means private sector.
3. No. of people participated in survey from different
occupation.
4. No. of people from different income group.

Here we easily see that the 55% people are businessman and 40% are
from private jobs. And in income group 37% people are from income
group 4.5 -5.5 lakh and the 30% are 3.5-4.5 lakh. So conclusion that
here the majority of businessman and private job person are interested in
saving account.
5. Age Group Vs Using Bank
6. Income Vs Using Bank

Here the market potential of private sector banks ICICI leading in Saving
Account. The age group 20-30 & 30-40years is the choice of ICICI Bank.
If we take Income group wise, in this ICICI also leading, second place
occupied by HDFC.
7. Types of Saving account people have

8. Bank which people have saving account
Here we find that the market potential of ICICI Bank is high because out
of 60 people 31(51%) peoples have ICICI Saving Account. HDFC & Other
are equivalent. Where Standard chartered Bank has only 2% people.
9. Age Group Vs Features

As far as the using features are concerned the people are more
aggressive towards the ATM Network then after they said about the

Service and after the service they looking for other. Other included new
era service like Doorstep Banking, Mobile Banking, and Online Banking. In
survey I found that a person usage ATM thrice and more times in a week.
Its shows that how people devoted about ATM Network and also for other
Services like Mobile banking, Doorstep Banking, Online Banking and etc.
10.Features which people like in using bank
The overall analysis said that feature which people like in using bank is
ATM Network and after that other services like Door Banking, Internet
Banking, Online Banking, Mobile Banking and etc. Every person wants to
each thing at his Door because nobody wants to expense time.

11.People preferred bank (If switches)
Here overall percentage of preferring bank (if people want to open a new
saving account) is ICICI, 39% and Standard Chartered is 25%. It show
the how people go for using new feature and better Service. In this also
people want to go for a brand name which Standard chartered bank has.
12.Age Group Vs Preferred Bank (If Switches)

Here I find that the age group of 20-30 preferred Brand Name like
Standard Chartered Bank which is 39%. Except the age group 40-50 all
are prefer SCB. The Second position occupied by ICICI Bank. The reason
of why people prefer Standard Chartered Bank and ICICI bank more. I am
discussing in next chart.

13. Banks Vs Reason for Preferring
In this competitive world people do not want waste his time. So he/she is
more conscious about time and money saving. I found that in the above
chart people pay more attention on banking core services in the other
hand they also want everything at his/her home. They also want to utilise

new banking services like mobile alert, fund transfer through mobile,
online banking, and doorstep banking etc.
16.Conclusion
We all are well know that how much time is precious for everyone.
Everyone do not want waste his/her time single minute. In this
competitive era world are globalised. Due to globalisation every person
want to be fastest. Standard Chartered Bank also want to be no. 1
through the offer more and more services.
I found that the potential of saving account is more than current account.
As we know that a saving account can be sole name or joint name. So,
most probably people have a saving account. People like saving account
because its service are beneficiary and due to competition more services
offered by the banks.
I found that in my survey people more eager about banking service

whatever bank charges for services. As i already said that people have
not much time. Show they utilise latest service which provided by the
banks. In mean while people also go for the brand name because thay
want to show their standard.

Last but not least I found that age group 20-30 & 30-40years people
more conscious about ATM Network, Banking Services and Brand name.
17.Limitation of project
• The Sample size is 60 which is very small

• The survey done in the Delhi NCR region
• The time period of data collection is very small
• Behaviour of respondent
• All data collected in July 2008, when sensex was at 12,500 points.
So the condition of market was not good.
• Due to this reason no one want to talk about investment or other
banking product.
• There is no sample from rural areas.

18.Bibliography
www.standardchartered.co.in
www.icicibank.com
www.hdfcbank.com
www.abnamro.co.in
www.business.mapsofindia.com
www.rediff.com/money
www.finance.indiamart.com
www.rupeetimes.com
www.tmb.in/doc/sb_rules.pdf
www.traderji.com
http://www.iloveindia.com/finance/insurance/life-insurance/unit-linked-
insurance-plans.html
http://www.altiusdirectory.com/Finance/investments-mutual-funds.html
http://www.rupeetimes.com/compare/savings_accounts/icici_bank.html
http://www.indiahousing.com/banks-in-india/icici-bank.html
Mutual Fund Book –HSBC

100 hour Insurance training – IRDA
19.

Annexure - 1
QUESTIONNAIRE:-
Name:- Sex:- M / F
Mobile:-
1. Age:-
1. 20-30 Yrs 2. 30-40 Yrs
3. 40-50 Yrs 4. 50-60 Yrs
5. Above 60 Yrs
2. Occupation:-
1. Government Service 2. Private
3. Businessman 4. Others
3. Income:-
1. 2.5 – 3.5 lakh 2. 3.5 – 4.5 lakh

3. 4.5 – 5.5 lakh 4. 5.5 – 6.5 lakh
5. Above 6.5 lakh
4. Expenditure monthly:-
1. Less than 10,000 2. 10,000 – 20,000
3. 20,000 – 30,000 4. More than 30,000
5. In which bank do you have saving account?
1. Standard Chartered Bank 2. HDFC
3. ICICI Bank 4. ABN – AMRO Bank
5. Other
6. Which type of saving account do you have?
1. Zero Balance 2. Minimum 10,000
3. Minimum 50,000 4. More than 50,000
7. Which feature do you like most in your bank?
1. Largest ATM Network 2. 24 / 7 Internet Banking
3. Service 4. Others
8. If you want to switch on to other bank, which bank will you

preferred?
1. Standard Chartered Bank 2. HDFC
3. ICICI Bank 3. ABN – AMRO Bank
5. Others
9. Why will you preferred?
1. Banking Service 2. 24/7 Internet Banking

3. Largest ATM Network 4. Others
Annexure – 2
Service Charges of Standard Chartered Bank’s Saving

Account:-

Parameter/ Saving Account aXcess Plus Super Value 2-in-1

AQB Rs.10,000 Rs.50,000 Rs.100,000

A/c Maintenance Charges
If AQB< 5,000 1,500 1,250
If AQB≥ 5,000 & <7,500 1,250 1,250
If AQB≥ 7,500 & <10,000 750 1,250
If AQB≤ 10,000 & <25,000 1,000
If AQB≥ 25,000 & <50,000 750
750
If AQB < 100,000
Account Statements Free/Quarterly Free/Qua Free/Qua.
Duplicate Statement 100/- 100/- 100/-

Account closure 500/- 500/- 500/-
(Within 6 months)
Cheque Return
Issued by customer 300/- 300/- 300/-
Deposited by customer 100/- Free 100/-
Dormant Account 1000/- per 1000/- per
annum annum
Cards
Debit card annual fee 200/- Free 200/-
Debit card replacement fee 200/- Free 200/-
Gold debit card 1st year fee 799/- 799/- 799/-
Gold debit card annual fee 799/- 799/- 799/-
Demand Draft
Drawn at own bank(min.
Free50/- & max. 1,500/-) 0.25% Free 0.25%
Drawn at other bank (min.
Fee 250/-) 0.30% 0.25% 0.30%
Cancellation 250/- 250/- 250/-
Pay order 75/- Free 75/-
ATM Uses other than SCB First 4 Free Free
Branch transaction
free
VISA ATMs outside India 140/- 140/- 140/-
Replacement of PIN 50/- 50/- 50/-
Lost card re-issuance 100/- 100/- 100/-
Standing instruction

Setting up charges 100/- 100/- 100/-

Execution fee 25/- 25/- 25/-
Banker’s report 50/- Free 50/-
Signature verification 25/- Free 25/-
Remittance from abroad 250/- 250/- 250/-
Annexure – 3
Important Details of the ‘Bajaj Allianz New UnitGain’ Plan
Parameter Details
Minimum Age at Entry 0 years, risk commences at age 7.
(18 years in case of all Additional Rider Benefits
Maximum Age at Entry 60 years (50 years in case of all Additional Rider
Benefits)
Minimum Maturity Age 18 years
Maximum Maturity Age 75 years
Additional Rider Benefit 65 years for all riders except UL WOP
Ceasing Age
(for Male lives) Rs. 5,000 per half-yearly instalment,

Rs. 1,000 per monthly mode

Minimum Top Up Premium is Rs. 5,000
(for Female lives) Rs. 3,750 per half-yearly instalment,
Rs. 750 per monthly mode
Minimum Top Up Premium is Rs. 5,000.
(Monthly mode for both male and female lives is
available through ECS and Salary Saving
Scheme only).
Minimum Sum Assured 0.5 * Policy Term * Annualized Premium
Maximum Sum Assured Multiplier * Annualized Premium
(Multiplier would depend on the age at entry
and
any riders chosen)
Annexure – 4
Comparison of various bank’s Service and Charges with

Standard Chartered Bank.
Standard
S Chartere ABN
.no Features d ICICI AMRO HDFC
1 Avg.Quaterly Bal. 10,000 10000 (ADB)10000 5000
2 Rate of Interest 3.50% 3.50% 3.50% 3.50%
25(Per
3 Internet Banking Free Free month) Free
4 Doorstep Banking Free Free Free free
5 Phone Banking Free Free 100 50
Standing 125+25per
6 Instructions tr. 50 150+25
7 DDs n payorders Free 2/- per 1000 50 Free

Acc. Maintainace
8 charges
(a) AQB<5000 1,500 750 500 750
(b)AQB>or=5,000&
<7000 1,250 750 500 750
(c)AQB>or=7,500&
<10000 750 750 500 750
(d)AQB>or=10,000 0 0 0 0
Quarterly
9 Statement Free Free Free free
10 Monthly Statement Free Free Free free
Duplicate
11 Statement 100/150 100 100 100
12 Pass Book Free Free Free
Duplicate Pass
13 book 100
14 Cheque book Free Free 50 Free
15 ATM card Free Free Free Free
ATM card usage
16 outside India 140 100
Debit card(Per
17 year) 200 99 180 110
Gold Debit
18 card(Per year) 799 400 500
19 Lost Card re-issue
(a) ATM Card 100 200 100
(b) Debit card 200 200 100
(c) Gold Debit card 799 500
Manual cash
20 withdrawal
(a) within India 100
(b) outside India 150
Replacement of
21 Pin Free 25 25
22 Account closure 500 50 500 100
23 Stop Payment
(a) Single cheque 100 100 100 50
(b) range of
cheques 200 100 100 100
24 Cheque return
(a)issued by
customer 300 350 350 350
(b)deposited by
customer 100 100 100 100
150+other
(c ) Foreign banks 125+
currency cheques charges charges 200


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Study of Saving Account in SCB & Comparative Analysis of its With Some Private Leading Banks

Area Sales Manager

Standard Chartered Bank

New Friends colony

In partial fulfilment for the award of the degree

Master of Business Administration

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I am also thankful to my college faculty because without them support I

I am grateful to Mr. Nitish Dipankar, my company guide at Standard

In a nutshell I express my heartfelt gratitude towards all those mentioned

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Particulars Page No.

2. Introduction of Banking 6-9

2.1 What is banking? 6

2.2 Banking Sector in India 7

2.3 Some foreign banks in India 8

2.4 Banking as an opportunity 9

3.1 History of Standard Chartered Bank 10

3.2 SCB in India 11

3.3 Some other facts of SCB 12

3.4 Principle and Values 12

3.5 SCB stands for 13

3.5 Product and Service 14 - 16

3.6 Types of Saving Account 16 - 17

4.1 RBI Guidelines 18

4.3 General requirement 19

5. Saving Account in SCB 20 - 24

5.1 aXcess Plus 20

5.2 Super Value 21

5.5 Service charges 23 - 24

7. Unit Linked Insurance Product 27 - 28

8. Bajaj Allianz Life Insurance Co.Ltd. 29 - 31

10. ULIP Vs Mutual Funds 43 - 44

12. ABN-AMRO Bank 49 - 57

13. HDFC Bank 58 - 62

14. ICICI Bank 63 - 68

15. Service charges of SCB & other Banks 69 - 70

16.2 Research Methodology 71

16.3 Survey Analysis 72 - 81

18. Limitation of Project 83

The aim of project is study of different types of saving account, analyse

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Secondary data from internet, newspapers, and magazines were also

2.1 What is banking?

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Four types of banks specialize in offering these basic banking services:

A broader definition of a bank is any financial institution that receives,

Banking services are extremely important in a free market economy.

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investors is called financial intermediation, and it is extremely important

2.2 Banking Sector in India

As far as the present scenario is concerned the banking industry is in a

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2.3 Some top foreign banks in India

2.4 Banking as an opportunity

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policies, offering credit cards to suit different categories of customers and

3.1 History of Standard Chartered Bank

The Standard Chartered Group was formed in 1969 through a merger of

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This friendly merger allowed both banks to capitalise on the expansion of

3.2 Standard Chartered Bank in India

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