More and more companies and corporate brands are recognizing the immense business potential of rural India. However, it is very important for rural India to be included in the banking and financial infrastructure that urban residents enjoy.
Lack of access to banking channels may force small farmers and rural entrepreneurs to rely on informal channels for lending and other money-related transactions. Recognizing this gap and acknowledging the fantastic prospects that rural India offers, Kotak bank is offering a customized product designed specifically for rural banking.
Kotak’s Sanman Savings Account
Named Sanman, this rural savings account offers all modern banking services to residents of rural India at a very affordable cost. This savings account for rural India has the following features.
Low Average Quarterly Balance
This account requires customers to hold an average quarterly balance of just Rs. 2000. This low balance is designed to ensure more and more customers seek to utilize the numerous benefits of transacting through formal banking channels.
Attractive Interest Rates
Account holders with balance not exceeding Rs. 1 lakh will receive interest at 5% p.a. Those with balances exceeding this amount will be entitled to interest at 6% p.a.
Cash Withdrawals through ATMs
All account holders will get a free Classic Debit card that can be used to withdraw funds from Kotak ATMs at zero cost. Account holders can withdraw cash from any Visa ATM subject to a maximum of five such transactions in a month.
Funds Transfers Made Easy
Payments for seeds, fertilizers, purchases, and farm or business-related expense can be done through the bank itself. 15 at-par cheque leaves per quarter will ensure cheque payments can be made and received without unnecessary delays. Funds transfers within Kotak bank accounts can be done for free. NEFT transactions are free if done through online banking. IMPS transfers, which facilitate immediate fund transfers all over India, too are free.
Standing Instructions for all Utility Payments
Rural India needs to work efficiently to grow faster. This savings account allows account holders to setup Standing Instructions for all utility payments. From payment of your electricity bill to timely transfer of your insurance premium—everything will be done automatically.
New-Age Services for Free
Phone banking, mobile banking, and Internet banking are available for free. With technology infrastructure being developed at a very fast rate, more and more rural account holders can use these convenient options to conduct banking transactions.
Auto-sweep facility will transfer balances above a fixed limit into term deposits that offer higher interest as compared to standard savings account. This feature offers better returns without any liquidity worries.
Good Old Passbook
For those who feel most comfortable with conventional banking practices, the account holder can choose between emailed statements and the good old passbook without any extra charges.
Account Opening Procedure
Any resident individual or Hindu Undivided Family can open a savings bank account by either applying online or walking into the nearest local branch of Kotak bank. With minimal KYC formalities, you can access the fantastic services of this account in no time at all.
With rural banking set to become the next big thing in Indian banking, entry of reputed private banks offering quality services at affordable costs is set to make a huge difference to the lives of rural Indians.