Mumbai-headquartered Indian private sector bank, Kotak Mahindra Bank, would launch zero-charge digital bank accounts in a bid to double its customer base in 18 months.
Kotak Mahindra Bank (KMB) is offering to open a zero balance savings account with no charges for digital transactions as part of its new ‘811’ plan promoting digital banking and looking to attract more customers to reach a target of 16 million by September 2018.
The KMB offering would be set to significantly expand the bank’s customer base in light of the recent reintroduction of transaction charges for its competitors, including State Bank of India, and HDFC Bank.
An account can be opened anywhere using the KMB digital banking app, and utilise Aadhaar-based one-time authentication process technology. Customers under the 811 plan would also receive a free virtual debit card and receive up to 6 per cent annual interest on savings account balances.
KMB executive vice-chairman, Uday Kotak, said Indian banks had been aggressive in their roll out of digital banking products, and that the 811 plan would plan to offer access more than 100 mobile features moving forward.
Features would include the execution of financial transactions, management of investments, and simple fund transfers.