Kotak Mahindra Bank Offers Zero-Balance, Zero-Charge Digital Accounts
Uday Kotak expects to double the bank’s customer base within the next 18 months.
Kotak Mahindra Bank Ltd. launched zero-balance digital accounts that will offer free transactions as it looks to double its customer base of 80 lakh over the next year and a half.
The lender announced what it called an ‘8-11’ plan to open accounts offering a 6 percent interest on sustained balances, Uday Kotak, vice-chairman and managing director of the private lender, said in a media briefing in Mumbai. The digital accounts will lower customer acquisition costs by up to 90 percent, he said.
Existing customers will have to open separate accounts to avail benefits of the ‘8-11’ plan, inspired by Prime Minister Narendra Modi’s demonetisation move which was announced on November 8 last year.
The plan allows customers to open an account with the unique biometric ID Aadhaar and a Permanent Account Number.
Shares of the lender ended flat on the Bombay Stock Exchange, tracking the benchmark S&P BSE Sensex.