Axis bank retail banking

Project Guide:
Mrs. ShilpaRathod Mr Paresh Vora
Branch Head & AVP Operation Head
AXIS Bank AXIS Bank
Isanpur Branch Isanpur Branch
Ahmedabad Ahmedabad
Faculty Mentor:
Prof. Somdeb Lahiri
Professor (Economics)
School of Petroleum
Management
Pandit Deendayal
Petroleum Management
Submitted By:
Ketan Gyanchandani
20141028
PGP14
School of Petroleum
Management
Pandit Deendayal Petroleum
Management
SUMMER INTERNSHIP PROJECT
REPORT
“THE NUANCES AND
WORKING OF RETAIL
BANKING”

SUMMER INTERNSHIP PROJECT REPORT – AXIS Bank
Ketan Gyanchandani School of Petroleum Management, PDPU|2014-16
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DECLARATION
I hereby declare that this project with the title- “The Nuances and Working of
RetailBanking” is the result of a six weeks of summer internship done by
myself- Mr Ketan Gyanchandani from Schoolof Petroleum Management,
Pandit Deendayal Petroleum University at AXIS Bank, under the guidance of
Mrs Shilpa Rathod, AVP & Branch Head and Mr Paresh Vora, Operation Head
at AXIS Bank, Isanpur Branch, Ahmedabad.
I further declare that this project is authentic and not submitted by any other
student previously. I also confirm that the contents of this report and the views
expressed herein have been discussed and deliberated with the guide.
DATE:
PLACE: Ahmedabad
Ketan Gyanchandani
PGP14
Schoolof Petroleum Management
Pandit Deendayal Petroleum University
Email: ketangyanchandani@gmail.com
(M): +91-96248 73666

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ACKNOWLEDGEMENT
It is my pious duty to thank AXIS Bank for giving me an opportunity to
undertake my summer internship in a very motivating and challenging
environment.
I am thankful to my ProjectGuide Mrs Shilpa Rathod, AVP & Branch Head
and Mr PareshVora, Operation Head at AXIS Bank, Isanpur Branch,
Ahmedabad. Without their guidance this project would not have been possible.
I am also thankful to all the employees of AXIS Bank, Isanpur Branch, for their
affectionate gestures and supportive attitude towards me. I owe whatever I have
learnt and am deeply obliged to them for providing me the impetus and the
supportof their abstruse knowledge and experience.
I am highly obliged to my Faculty Mentor- Prof Somdeb Lahiri, Professor
(Economics), Schoolof Petroleum Management, Pandit Deendayal Petroleum
University, Gandhinagar for his continuous support and guidance throughout
the tenure of Internship. I am also thankful to Alumni Mentor- Mr
Alakshendra Alex, Sapient Global Markets, Associate - Trade Risk
Management, for his continuous supportand guidance. I am also grateful to
Schoolof Petroleum Management, Pandit Deendayal Petroleum University,
Gandhinagar for granting me the permission to undertake my summer training
in a very conducive working environment at AXIS Bank
In the end, I feel immense pleasure in expressing gratitude to my family, friends
without them, I would not have been able to complete this project successfully.
Ketan Gyanchandani
PGP14
Schoolof Petroleum Management
Pandit Deendayal Petroleum University

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EXECUTIVE SUMMARY
MBA is a stepping-stone to the management carrier and to develop good
manager it is necessary that the theoretical must be supplemented with exposure
to the real environment. Theoretical knowledge just provides the base and it’s
not sufficient to producea good manager that’s why practical knowledge is
needed.
In accordancewith the requirement of MBA courseI had summer training
project in Retail Banking department of AXIS Bank on the topic “The Nuances
& Working of Retail Banking”.
The retail banking environment has undergone major change. Retail banking
customers are much more active than they were a decadeago. Customers are
demanding more customized products and services. This has impose significant
new demands on retail banks. With a view to attaining an increasingly
significant position in the growing retail financial services sectorin the country,
banks have continued to provide a sustained thrust to retail banking through a
continuously expanding network and a growing sales force with customer
relationship skills, that has enabled the distribution of a wide range of products
to a fast expanding customer base.
The report gives an overview of the Retail banking products offered at AXIS
Bank, the security measure of the bank, guidelines by RBI, Negotiable
Instruments ACT, recently launched government schemes, etc.

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Table of Contents
Executive Summary………………………………………...........................................4
1. Banking Sector…………………………………………………………………7
1.1 Indian Banking System…………………………………………………......7
1.2 Banking Activities………………………………………………………….10
1.3 Recent Developments………………………………………………………11
1.4 Government Initiatives……………………………………………………..11
2. Negotiable Instrument Act……………………………………………………12
2.1 Promissory Note…………………………………………………………….12
2.2 Bills of Exchange……………………………………………………………13
2.3 Cheques……………………………………………………………………..14
3. AXIS Bank………………………………………………………………….....16
3.1 Introduction………………………………………………………………...16
3.2 Evolution of AXIS……………………………………………………….....17
3.3 Head of AXIS Bank………………………………………………………..18
3.4 Vision & Values………………………………………………………….....20
4. Business Description of Axis Bank……………………………………………20
5. AXIS Group………………………………………………………………….....21
6. Products of AXIS Bank………………………………………………………..22
6.1 Accounts…………………………………………………………………….22
6.2 Current Accounts……………………………………………………………27
6.3 Loan………………………………………………………………………....31
6.4 Investments…………………………………………………………………35
7. Account Opening……………………………………………………………....40
7.1 Saving Account……………………………………………………………..40
7.2 Salary Account……………………………………………………………...40
7.3 Account of Institution/Organisation………………………………………...40

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7.4 Account of Society……………………………………………………….41
8. Account Details………………………………………………………………41
8.1 Know Your Customer (KYC)…………………………………………….42
8.2 Account Profiling…………………………………………………………44
8.3 Monitoring of Transactions……………………………………………….45
9. Deposit Accounts…………………………………………………………….45
9.1 CASA……………………………………………………………………..45
9.2 Domestic Term Deposits………………………………………………….46
9.3 Accounts of Minors……………………………………………………….50
10. Risk Management……………………………………………………………52
11. Payment and Settlement System……………………………………………54
11.1 ECS……………………………………………………………………54
11.2 RTGS………………………………………………………………….55
11.3 NEFT………………………………………………………………….55
12. 24*7 Banking………………………………………………………………...55
13. Secure Banking………………………………………………………………56
14. Pradhan-Mantri Suraksha Bima Yojana…………………………………..57
15. Pradhan-Mantri JeevanJyoti Bima Yojana……………………………….59
16. Short Analysis of Govt. launched Schemes…………………………………60
17. Atal Pension Yojana…………………………………………………………61
17.1 Process Flow Chart……………………………………………………65
17.2 Short Analysis…………………………………………………………66
18. Recommendations and Conclusion………………………………………….69
Abbreviation…………………………………………………………………………..70
References……………………………………………………………………………..71

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Banking sector:
A bank is a financial intermediary and money creator that creates money by lending money to
a borrower. Lending activities can be performed directly by giving loan or indirectly through
capital markets. Capital markets are financial markets for the buying and selling of long-term
debt or equity-backed securities. These markets channel the wealth of savers to those who
can put it to long-term productive use, such as companies or governments making long-term
investments. Financial regulators, such as the Securities and Exchange Board of India (SEBI)
or U.S. Securities and Exchange Commission (SEC), oversee the capital markets in their
jurisdictions to protect investors against fraud, among other duties. Due to their importance in
the financial system and influence on national economies, banks are highly regulated in most
of countries either by National Government or Central Bank.
Banking sector in India:
According to the Reserve Bank of India (RBI), the banking sector in India is sound,
adequately capitalised and well-regulated. India is one of the top 10 economies globally, with
vast potential for the banking sector to grow. With the potential to become the fifth largest
banking industry in the world by 2020 and third largest by 2025, according to KPMG-CII
report, India’s banking and financial sector is expanding rapidly. The new norms of Reserve
Bank of India’s (RBI) will provide incentives to banks to spot potential bad loans and take
corrective steps that will curb the practices of unreliable borrowers
The Indian Banking industry is currently worth ₹ 81 trillion (US $ 1.31 trillion) and banks are
now utilizing the latest technologies like internet and mobile devices to carry out transactions
and communicate with the masses.
The Indian Banking system consists of:

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1) Central Bank:
A central bank functions as the apex controlling institution in the banking and financial
system of the country. It functions as the controller of credit, banker’s bank and also enjoys
the monopoly of issuing currency on behalf of the government. A central bank is usually
control and quite often owned, by the government of a country. The Reserve Bank of India
(RBI) is such a bank within India.
2) Schedule Commercial Bank:
It operates for profit. It accepts deposits from the general public and extends loans to the
households, the firms and the government. The essential characteristics of commercial
banking are as follows:
Acceptance of deposits from public.
For the purpose of lending or investment
Repayable on demand or lending or investment
Withdrawal by means of an instrument, whether a cheque or otherwise
I. Public Sector Banks:
Public Sector Banks (PSBs) are those banks where majority of stakes is with the
Government. All these PSBs are listed on stock exchanges. Central Government
entered into banking industry with the nationalization of Imperial Bank of India in
1955, than in 1969 14 major banks were nationalised and in 1980 4 more banks
were nationalised. To name a few PSBs: State Bank of India and its subsidiaries,
Bank of India, Bank of Baroda, Bharatiya Mahila Bank, Central Bank of India,
etc.
The objectives behind nationalisation where:
To break the ownership and control of banks by a few business families,
To prevent the concentration of wealth and economic power,
To mobilize savings from masses from all parts of the country,
To cater to the needs of the priority sectors
II. Private Sector Banks:
Private Sector Banks in India is made up of private and public banks. But the
greater part of stake is in the hand of private shareholders and not with the
Government. Private Banks are categorized as Old and New Private banks.

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Old Private Banks: These are those banks which were not nationalized during
the process in 1969 and 1980 due to the smaller scale or regional reach only.
Example: Dhanlaxmi Bank, Federal Bank, ING Vysya Bank, Karur Vysya Bank,
etc.
New Private Banks: These are the banks which came in to operations after the
liberalisation in 1990s. Banking Regulations were amended in 1993 so that new
private banks can enter into the Indian Banking Industry.
Example: ICICI Bank, AXIS Bank, HDFC Bank, Yes Bank, Development Credit
Bank, Kotak Mahindra Bank, RBL Bank, etc.
But there were certain criteria for the establishment of new private banks which
are as follows:
Bank should have minimum net worth of Rs 200 Cr.
Promoters should hold a minimum of 25% of paid-up capital
Within 3 years of the starting of the operations, the bank should offer
shares to public and their net worth must increase to 300 Cr.
III. Foreign Banks:
With the globalization hitting the world, the concept of banking has changed
substantially. The concept of Foreign Banks have changed the prevailing banking
scenario in India. Banking is now more of more customer-friendly, new
technology innovations have been implemented like mobile banking, mobile
application of banks, etc.
Example: HSBC Bank, JP Morgan Chase Bank, Deutsche bank, Standard Charter
Bank, etc.
IV. Regional Rural Banks:
Regional Rural Banks(RRBs) were started in 1970 due to the fact that even after
the nationalization, there were cultural issues related to lending to the farmers The
main purpose of RRBs is to mobilize financial resources from rural/semi-urban
areas and grants loans and advances mostly to small and marginal farmers,
agricultural labours, etc. Each RRB is owned by three entities with their respective
shares as follows:
Central Government → 50%
State government → 15%
Sponsor bank → 35%
All the RRBs are regulated by NABARD (National Bank for Agricultural and
Rural Development)
Example: Karnataka Vikas Grameena Bank, Maharashtra Gramin Bank, etc.
3) Schedule Co-operative Bank:
Larger institutions are often called cooperative banks. Like credit unions, cooperative banks
are owned by their customers and follow the cooperative principle of one person, one vote.

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Unlike credit unions, however, cooperative banks are often regulated under both banking and
cooperative legislation. They provide services such as savings and loans to non-members as
well as to members, and some participate in the wholesale markets for bonds, money and
even equities
I. Urban Co-operative Banks:
Urban Co-operative Banks are giving banking facility to grass root persons. As
Urban Co-operative Banks are mostly working in the rural and semi-urban areas
they understand the genuine commercial needs of the local population in their area
of operation. Urban Co-operative Banks help small and medium sized traders,
entrepreneurs, artisans and farmers who are deprived of banking facility as private
sector and commercial banks tap only high profile and successful entrepreneurs
Example: Ahmedabad Mercantile Co-Op Bank, Kalupur Commercial Coop. Bank,
Bombay Mercantile Co-operative Bank, Saraswat Co-operative Bank, etc.
II. Rural Co-operative Banks:
The rural cooperatives are further divided into short-term and long-term
structures. The short-term cooperative banks are three tiered operating in different
states.
i) State Cooperative Banks- They operate at the apex level in states District Central
ii) Cooperative Banks-They operate at the district levels
iii) Primary Agricultural Credit Societies-They operate at the village or grass-root
level.
The long-term structures are further divided into –
i) State Cooperative Agriculture and Rural Development Banks (SCARDS)- These
operate at state-level.
ii) Primary Cooperative Agriculture and Rural Development Banks (PCARDBS)-
They operate at district/block level.
Different Banking activities:
Retail banking: Dealing directly with individuals and small businesses;
Business banking: Providing services to mid-market business;
Corporate banking: Directed at large business entities;
Private banking: Providing wealth management services to high net worth individuals and
families
Investment banking: Relating to activities on the financial markets.

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Recent Developments:
The RBI has allowed third-party white label automated teller machines (ATM) to
accept international cards, including international prepaid cards, and said white label
ATMs can now tie up with any commercial bank for cash supply.
The Competition Commission of India (CCI) has cleared the merger of ING Vysya
Bank with Kotak Mahindra Bank, which would create the country's fourth largest
private sector lender. The proposed Rs 15,000 cr. (US$ 2.36 billion) deal is not likely
to have any appreciable adverse effect on competition in India.
The Union cabinet has approved the establishment of the US$ 100 billion New
Development Bank (NDB) envisaged by the five-member BRICS group
Government Initiatives:
Pradhan Mantri Jan Dhan Yojna: The scheme has been started with a target to
provide 'universal access to banking facilities' starting with "Basic Banking Accounts"
with overdraft facility of ₹5000 after six months and RuPay Debit card with inbuilt
accident insurance cover of ₹ 1 lakh and RuPay Kisan Card
Under the scheme:
i. Account holders will be provided zero-balance bank account with RuPay debit
card, in addition to accidental insurance cover of Rs 1 lakh (to be given by
'HDFC Ergo').
ii. Those who open accounts by January 26, 2015 over and above the 1 lakh ₹
accident, they will be given life insurance cover of ₹ 30,000(to be given by
LIC).
iii. After Six months of opening of the bank account, holders can avail 5,000 ₹
overdraft from the bank.
iv. With the introduction of new technology introduced by National Payments
Corporation of India (NPCI), a person can transfer funds, check balance
through a normal phone which was earlier limited only to smart phones so far.

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v. Mobile banking for the poor would be available through National Unified
USSD Platform (NUUP) for which all banks and mobile companies have
come together
vi. On the inauguration day, 1.5 Cr. (15 million) bank accounts were opened
under this scheme. By 28 January 2015, 12.58 Cr. accounts were opened, with
around ₹10590 cr. (US$1.7 billion) were deposited under the scheme.
Pradhan Mantri Suraksha Bima Yojna: Accident Insurance Scheme offering
accidental death and disability cover for death or disability on account of an accident.
i. A ₹12/- per annum premium will be deducted from the account holder’s
savings bank account through ‘auto debit’ facility in one instalment.
ii. In case of accidental death or full disability, payment of ₹ 2,00,000/- will be
given to the nominee and in case of partial disability payment of ₹ 1,00,000/-
will be given.
Pradhan Mantri JeevanJyoti Bima Yojna: is a government-backed Life insurance
scheme in India. This scheme will be linked to the bank accounts opened under the
Pradhan Mantri Jan Dhan Yojna scheme.
A premium of Rs 330/- per annum will be deducted from the account holder’s
savings bank account through ‘auto-debit’ facility in one instalment.
In case of death of policy holder in any case, nominee is entitle to receive
₹ 2,00,000/-.
Banking is working specifically on the guidelines of the Reserve Bank of India. Out
of all the acts Negotiable Instrument Act is one of the most important act for running of the
banking activities.
Negotiable Instrument Act:
This is an act to define and lay down the law relating to Promissory Notes, Bills of Exchange
or Cheques payable either to bearer or to order. This act operates subject to the provisions of
Sections 31 and 32 of the Reserve Bank of India Act, 1934. Section 31 of the Reserve Bank
of India Act provides that no person in India other than the RBI or as expressly authorised by
this Act, the Central Government shall draw, accept, make or issue any bill of exchange,
hundi, promissory note or engagement for the payment of money payable to bearer on
demand.

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Types of Negotiable Instrument are:
1. Promissory Note:
It is an instrument in writing (not being a bank-note or a
currency note) containing an unconditional undertaking, signed
by the maker, to pay a certain sum of money only to, or to the
order of, a certain person or to the bearer of the instrument.
i. It must be in writing: A mere verbal promise to pay is not a promissory note.
The method of writing (either in ink or pencil or printing, etc.) is unimportant,
but it must be in any form that cannot be altered easily.
ii. It must certainly an express promise or clear understanding to pay: There
must be an express undertaking to pay. A mere acknowledgment is not
enough. The following are not promissory notes as there is no promise to pay.
iii. Promise to pay must be unconditional: A conditional undertaking destroys
the negotiable character of an otherwise negotiable instrument. Therefore, the
promise to pay must not depend upon the happening of some outside
contingency or event. It must be payable absolutely.
iv. It should be signed by the maker: The person who promise to pay must sign
the instrument even though it might have been written by the promisor
himself. There are no restrictions regarding the form or place of signatures in
the instrument. It may be in any part of the instrument. It may be in pencil or
ink, a thumb mark or initials. The pro-note can be signed by the authorised
agent of the maker, but the agent must expressly state as to on whose behalf he
is signing, otherwise he himself may be held liable as a maker. The only legal
requirement is that it should indicate with certainty the identity of the person
and his intention to be bound by the terms of the agreement.
v. The promise should be to pay money and money only: Money means legal
tender money and not old and rare coins. A promise to deliver paddy either in
the alternative or in addition to money does not constitute a promissory note.
2. Bill of Exchange:
A “bill of exchange” is an instrument in writing containing an
unconditional order, signed by the maker, directing a certain
person to pay a certain sum of money only to, or to the order of,
a certain person or to the bearer of the instrument.
Essential conditions of a bill of exchange:

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It must be in writing.
It must be signed by the drawer.
The drawer, drawee and payee must be certain.
The sum payable must also be certain.
It should be properly stamped.
It must contain an express order to pay money and money alone.
3. Cheque:
A “Cheque” is bill of exchange drawn on a specified banker
and not expressed to be payable otherwise than on demand and
it includes the electronic image of a truncated cheque and a
cheque in the electronic form.
When a promissory note, bills of exchange or cheque is transferred to any person, so
as to constitute the person the holder thereof, the instrument is said to be negotiated.
Section 31 - Liability of Drawee of Cheque:
The drawee of a cheque having sufficient funds of the drawer
in his hands properly applicable to the payment of such cheque must pay the cheque when
duly required to do so, and, in default of such payment, must compensate the drawer for any
loss or damage caused by such default.
Section 85(1) - Cheque Payable to Order:
Where a cheque payable to order presents to be endorsed by or
on behalf of the payee, the drawee is discharged by payment in due course.
Section 85(2) – Cheque Payable to Bearer:
Where a cheque is originally expressed to be payable to bearer,
the drawee is discharged by payment in due course to the bearer thereof, notwithstanding any
endorsement whether in full or in blank appearing thereon, and not withstanding that any
such endorsements presents to restrict or exclude further negotiation.
Section 89 – Payment of Instrument on which Alteration is not Apparent:
Where a negotiable instruments have been materially altered
but does not appear to have been so altered, or where a cheque is presented for payment

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which does not at the time of presentation appear to be crossed or to have had a crossing
which has been abliterated, payment thereof by a person or banker liable to pay, and paying
the same according to the apparent tenor thereof at the time of payment and otherwise in due
course, shall discharge such person or banker from all liability thereon; and such payment
shall not be questioned by reason of the instrument having been altered, or the cheque
crossed.
Section 129 – Payment of Crossed Cheque out of Due Course:
Any banker paying a cheque crossed generally otherwise than
to a banker, or a cheque crossed specially otherwise than to the banker to whom the same is
crossed, or his agent for collection, being a banker, shall be liable to the true owner of the
cheque for any loss he may sustain owing to the cheque having been so paid.
Section 131 – Cheque Collecting Banker’s Protection:
A banker who has in good faith and without negligence
received payment for a customer of a cheque crossed generally or specially to himself shall
not, in case the title to the cheque proves defective, incur any liability to the true owner of the
cheque by reason only of having received such payment.
A banker receives payment of a crossed cheque for a customer
within the meaning of this section not withstanding that he credits his customer’s account
with the amount of the cheque before receiving payment thereof.
Section 138 – Penalties in Case of Dishonour of Certain Cheques:
Where any cheque drawn by a person on an account maintained
by him with a banker for payment of any amount of money to another person from out of that
account for the discharge, in whole or in part, of any debt or other liability, is returned by the
bank unpaid, either because of the amount of money standing to the credit of that it exceeds
the amount arranged to be paid from that account by an arrangement made with that bank,
such person shall be deemed to have committed on offence and shall, without prejudice to
any other provision of this act, be punished with imprisonment for a term which may extend
to twice the amount of the cheque, or with both.
Provided that nothing contained in this section shall apply unless:-
i) The cheque has been presented to the bank within a period of 6/3 months from the
date on which it is drawn or within the period of its validity, whichever is earlier
ii) The payee or holder in due course of the cheque, as the case may be, makes the
demand for the payment of the said amount of money by giving a notice, in

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writing, to the drawer of the cheque, within 30 days of the receipt of information
by him from the bank regarding the return of the cheque as unpaid.
iii) The drawer of such cheques fails to make the payment of the said amount of
money to the payee or as the case may be, to the holder in due course of cheque,
within 15 days of the receipt of the said notice
Introduction:
Axis Bank Ltd., the first bank to begin operations as new private banks in 1994 after the
Government of India allowed new private banks to be established. Axis Bank was jointly
promoted by the Administrator of the specified undertaking of the
 Unit Trust of India (UTI-I)
 Life Insurance Corporation of India (LIC)
 General Insurance Corporation Ltd.
Also with associates viz. National Insurance Company Ltd., The New India Assurance
Company, The Oriental Insurance Corporation and United Insurance Company Ltd.
Axis Bank is the third largest private sector bank in India. Axis Bank offers the entire
spectrum of financial services to customer segments covering Large and Mid-Corporates,
MSME, Agriculture and Retail Businesses. The Bank has a large footprint of 2402 domestic
branches (including extension counters) and 12,922 ATMs spread across the country as on
31st March 2014 which is the largest ATM network in country among Private Sector Banks
in India. The overseas operations of the Bank are spread over its seven international offices
with branches at Singapore, Hong Kong, DIFC (Dubai International Financial Centre),
Colombo and Shanghai and representative offices at Dubai and Abu Dhabi.
With a balance sheet size of ₹ 3,83,245/- Cr. as on 31st March 2014, Axis Bank has achieved
consistent growth and stable asset quality with a 5 year CAGR (2010-14) of 21% in Total
Assets, 19% in Total Deposits, 23% in Total Advances and 28% in Net Profit.
The latest offerings of the bank along with Dollar variant is the Euro and Pound Sterling
variants of the International Travel Currency Card (TCDC Card). The Travel Currency Card
is a signature based pre-paid travel card which enables traveller’s global access to their

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money in local currency of the visiting country in a safe and convenient way. The Bank has
strengths in both retail and corporate banking and is committed to adopting the best industry
practices internationally in order to achieve excellence
Evolution of AXIS Bank:
UTI was established in 1964 by an Act of Parliament; neither did the Government of India
own it nor contributes any capital. The RBI was asked to contribute one-half of its initial
capital of Rs 5 cr., and given the mandate of running the UTI in the interest of the unit-
holders. The State Bank of India and the Life Insurance Corporation contributed 15 per cent
of the capital each, and the rest was contributed by scheduled commercial banks which were
not nationalized then. This kind of structure for a unit trust is not found anywhere else in the
world. Again, unlike other unit trusts and mutual funds, the UTI was not created to earn
profits.
In the course of nearly four decades of its existence, it (the UTI) has succeeded phenomenally
in achieving its objective and has the largest share anywhere in the world of the domestic
mutual fund industry.'' The emergence of a "foreign expert" during the setting up of the UTI
makes an interesting story. The announcement by the then Finance Minister that the
Government of India was contemplating the establishment of a unit trust caught the eye of
Mr George Woods, the then President of the World Bank. Mr Woods took a great deal of
interest in the Indian financial system, as he was one of the principal architects of the ICICI,
in which his bank, First Boston Corporation Bank, had a sizeable shareholding. Mr Woods
offered, through Mr B.K. Nehru, who was India's Executive Director on the World Bank, the
services of an expert.
The Centre jumped at the offer, and asked the RBI to hold up the finalization of the unit trust
proposals till the expert visited India. The only point Mr Sullivan made was that the provision
to limit the ownership of units to individuals might result in unnecessarily restricting the
market for units. While making this point, he had in mind the practice in the US, where small
pension funds are an important class of customers for the unit trusts. The Centre accepted the
foreign expert's suggestion, and the necessary amendments were made in the draft Bill. Thus,
began corporate investment in the UTI, which received a boost from the tax concession given
by the government in the 1990-91 Budget. According to this concession, the dividends
received by a company from investments in other companies, including the UTI, were
completely exempt from corporate income tax, and provided the dividends declared by the
investing company were higher than the dividends received.
The result was a phenomenal increase in corporate investment which accounted for 57 per
cent of the total capital under US-64 scheme. Because of high liquidity the corporate sector
used the UTI to park its liquid funds. This added to the volatility of the UTI funds. The
corporate lobby which perhaps subtly opposed the establishment of the UTI in the public

18
sector made use of it for its own benefits later. The Government-RBI power game started
with the finalization of the UTI charter itself. The RBI draft of the UTI charter stipulated that
the Chairman will be nominated by it, and one more nominee would be on the Board of
Trustees. While finalizing the draft Bill, the Centre changed this stipulation. The Chairman
was to be nominated by the Government, albeit in consultation with RBI. Although the
appointment was to be made in consultation with the Reserve Bank, the Government could
appoint a person of its choice as Chairman even if the Bank did not approve of him.
1
Board of Directors of AXIS Bank:
Name Designation
Dr. Sanjiv Misra Chairman
Shikha Sharma MD & CEO
K.N.Prithviraj Director
V.R.Kaundinya Director
Prasad Menon Director
Prof. Samir K Barua Director
Som Mittal Director
Ireena Vittal Director
Rohit Bhagat Director
Usha Sangwan Director
S Vishvanathan Director
V Srinivasan ED, Corporate Banking
Sanjeev Kumar Gupta ED, Corporate Centre & CFO
1 Profitability chartof AXIS Bank Ltd. over the past 5 years

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20 Years of Progress:
2
2 Year wise progress of past20 years of AXIS
• The Bank was incorporated UTI Bank ltd. on 3rd
December, promoted by Unit Trust of India, Life
Insurance Corporation of India, General Insurance
Corporation of India and its four subsidiaries.
1992
• 1994 - Dr Manmohan Singh inaugrates the firstbranch in
Ahmedabad
• 1996 - Deposits cross Rs. 1000 crores
• 1997 - Launches Bank-on-Phone services
1994-1997
•UTI Bank and Citibank have come together to
launch an international co-branded credit card
under the MasterCard umbrella.
1999
• UTI Bank has launch of `iConnect', its Internet banking
Product
• UTI Bank has tied up with L&T Trade.com for providing
customised online trading solution for brokers
2000
• 2001 - UTI Bank has recorded a 62 per cent rise in net
profit for the quarter ended September30, 2001, at Rs
30.95 crore
• 2002 - Deposits cross Rs. 10,000 crores.
2001-2002
• Allotment of 58923 equity shares of Rs 10 each under
ESOP.
• First Indian bank to launch TCDC Cards
2003
• 2004 - HSBC completes acquisition of 14.6% stake in UTI
Bank for $67.6 m
• 2005 - listedon ondon Stock Exchange
2004-2005
• 2006 - UTI Bank becomes the first Indian Bank tosuccessfully
issue Foreign Currency Hybrid Capital in theInternational Market
• 2007 - Rebrands itselffrom UTI Bank to AXIS Bank Ltd.2006-2007
• Shikha Sharma appointedas the MD & CEO
• Received final clearance from the SecuritiesandExchange
Board of India (SEBI) to begin its mutual fundoperations
2009
•2010-Axis bank acquires 4 percent stake in Max New
York Life
•2011-launched online trading platform AxisDirect
2010-2011
• 2013 - Ranked as most trusteedbank in ET survey
First bank to launch e-KYC
• 2014-launches ‘Asha Home Loans’
• MoU with China Development Bank
2013-14
• launches Ping Pay:- a multi-social payment app from
Axis Bank that lets you send or ask for money and
mobile recharge across social network
2015

20
Vision & Values:
Vision 2015: To be the preferred financial solutions provider excelling in customer delivery
through insight, empowered employees and smart use of technology
Values:
Customer Centricity
Ethics
Transparency
Teamwork
Ownership
Business Description:
AXIS Bank operates in vary segments such as Treasury Operations, Retail Banking,
Corporate/Wholesale Banking and Other Banking Activities.
Retail banking: In the retail banking category, the bank offers Current Accounts and Saving
Accounts product, card services, Internet banking, automated teller machines (ATM)
services, depository, financial advisory services, and Non-resident Indian (NRI) services.
Corporate/Wholesale banking: The Bank offers to corporates and other organisations
services including corporate relationship not included under retail banking, corporate
advisory services, project appraisals, capital market related services and cash management
services.
Investment banking: Bank’s Investment Banking business comprises activities related to
Equity Capital Markets, Mergers and Acquisitions and Private Equity Advisory. The bank is
a SEBI-registered Category I Merchant Banker and has been active in advising Indian
companies in raising equity through IPOs, QIPs, and Rights issues etc. During the financial
year ended 31 March 2012, Axis Bank undertook 9 transactions including 5 IPOs and 2 Open
Offers.
NRI services: Bank provides products and services for NRIs that includes CASA, facilitate
investments in India. Axis bank is the first Indian Bank having TCDC cards in 11 currencies.

21
Micro-Finance: Axis Bank SME business is segmented in three groups: Small Enterprises,
Medium Enterprises and Supply Chain Finance. Bank offers lending to individuals/small
businesses subject to the orientation. Under the Small Business Group a subgroup for
financing micro enterprises is also set up.
Agri-Finance: Banks provide various accounts, loans on various products, etc. to farmers.
Total 759 branches of the bank provides banking services, including agricultural loans, to the
farmers
i. Krishi Saving Accounts: Axis Bank offers a unique savings account which is easy to
operate and allows to transact immediately. This product has been specially designed
keeping in mind the unique requirements of a farmer and others employed in the
agricultural sector.
The account is opened with the minimum requirement of the
Rs. 2500/-
ii. Kisan Power: Farmer who has his own farm, a tenant cultivator or sharing in the
crop, is eligible for these loans. Minimum landholding should be two acres of
cultivable land. Loan amount ranges from Rs. 25,000 – Rs. 50,00,000/-.
iii. Tractor Loans: AXIS Bank provides special hassle-free loan on purchase of new
tractors, with special interest rates.
iv. Godowns Loan: Bank gives loans for the construction, renovation or expansion of
godowns too.
v. Loan for Corporate Farming: There are some farmers who enter into the contract or
tie-up with the corporates for production of agriculture products. AXIS bank provides
the finance for such type of agreement too for the purpose of huge requirement of the
agri products.
AXIS Group:
AXIS Bank has set-up fully owned 8 subsidiaries which are:
Axis Capital Ltd.
Axis Finance Ltd.
Axis Mutual Fund Trustee Ltd.
Axis Asset Management Company Ltd.

22
Axis Private Equity Ltd.
Axis Trustee Services Ltd.
Axis Bank UK Ltd.
Axis Securities Ltd.
Products of AXIS Bank:
AXIS Bank has several products in Retail Banking which are categorized as
Accounts
Deposits
Loans
Cards
eDGE Loyalty Rewards
Forex
Investment
Insurance
All the products have been sub-categorized as per the benefits of the products which we will
are as follows:
1. Accounts:
In this category we have different category such as Savings Account, Current
Accounts, Salary Accounts, etc. which are sub-categorized.
i. Savings Account:
Basic Savings Account:
 Features:
This is the basic account which banks provide where one can
save and transact easily.
Account can be open with the Zero Balance facility.
Account comes with a free RuPay Debit Card and a withdrawal
facility upto ₹40,000/-
Only 4 free cash withdrawal transaction can be carried out.
 Benefits:
Zero balance facility, Internet, mobile and phone banking
This account is currently not offered in AXIS Bank.

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EasyAccess Savings Account:
 Features:
This is the common saving account we at AXIS Bank offers to
the customer. This can be open through a deposit of minimum
Rs. 10,000/- and AMB of Rs 10,000/- has to be maintained.
Quarterly 4% interest is paid by bank to customer on their daily
balances.
Prime Savings Account:
 Features:
This is a upgraded version of EasyAccess Savings Account,
provides some extra benefits with more transactions and
withdrawal limits. It has a minimum opening deposit of ₹
25,000/-
 Benefits:
A premium Titanic Prime Debit Card will be given at no cost
which has a withdrawal limit of ₹ 50,000/- at ATMs and
shopping transaction of ₹ 1,00,000/- daily
First 5 transactions at ATMs are free
Prime Plus Savings Account:
 Features:
This is a prime plus account with high transaction limit, with
entertainment and reward benefit. It has a minimum opening
deposit of Rs 1,00,000/-.
 Benefits:
This includes high transaction limit of 20 /month at any AXIS
Bank.
This give 10% cash back on online movie ticket bookings as
part of entertainment benefits. A Premium Plus Debit Card will
be issued at no cost which comes with higher withdrawals of ₹
50,000/- and a purchase transaction limit of ₹ 1,00,000/- daily

24
One will have a chance to avail a higher personal accident
cover of upto ₹ 3,00,000/-, if you swipe your card once in every
six months.
First 10 transactions at ATMs are free.
Women’s Savings Account:
 Features:
This account is perfectly designed specially for women’s who
are financially independent. This account allows them to save,
transact money easily. It has a low minimum account deposits
of ₹ 10,000/- and has first 5 free transactions at AXIS Bank’s
ATMs.
 Benefit:
It will issue a Visa Classic Debit Card at a nominal fee of ₹150
for issuance and ₹150 annually thereafter which gives high
withdrawal limits of ₹40,000/- at ATMs and shopping
transactions of ₹100,000/- daily.
Senior Privilege Savings Account:
 Features:
This account is specially for those citizen who are having the
minimum age of 57 years Just by providing identity of oneself
as a senior, one will be moved up to the queue.
 Benefit:
Special discount of 20-60% will be avail on health check-ups at
over 600 diagnostic centres.
One will have a chance to avail a higher personal accident
cover of upto ₹ 2,00,000/-, if you swipe your card once in every
six months.
YOUth Account:
 Features:
This account is specially for youth who are of the age between
18-25 years This account comes with the superloaded debit
cards that gives one amazing discounts and offers And a

25
supercool mobile app that helps the account-holder to manage
their money.
 Benefits:
YOUth Debit Card comes up with 5 free transactions at AXIS
Banks ATM. One can shop upto ₹ 1,00,000/- at any merchant
outlet using this card.
Trust/NGO Savings Account:
Axis Bank's Trust Account is an effort to offer thoughtful
banking for people who spend their lives thinking of others It is
a complete banking solution for Trusts, Associations, Societies,
Government Bodies, Section 25 companies and NGOs, so that
the organisations can devote all of their time to their noble
motivations.
 Features:
Trust has to maintain Annual Monthly Balance (AMB) of ₹
25,000/-
Free banking across the country and over all ATMs.
Free Demand Drafts or Pay orders or collection of cheques at
outstation locations
Future Stars Savings Account:
 Features:
This account is specially for children who are minor i.e. below
18 years of age. This account is helpful to start a savings for the
child. Chequebook, ATM card will be of guardians name if
child is below 10 years
Account will be open with a minimum deposit of ₹ 2500/-.
First 5 transaction is free at AXIS Bank ATMs.
 Benefits:
VISA Classic Debit Card will be issued at an issuance cost of
Rs 150/- were a minor has a daily withdrawal limit of ₹ 1500/-
No need to maintain Average Monthly Balance if a Fixed
Deposit (for 6 months) of ₹ 25,000/- or a Recurring Deposit of
₹ 2,000/- (for a year) is maintained.

26
Pension Savings Account:
 Features:
The Pension Savings account is specifically, designed for
Pensioner's (Existing & Prospective) of Central Govt. Civil
Ministries/ Departments & Defence Ministry keeping in mind
the fact that a Pensioner's banking requirements are wholly
different and require special consideration.
Free SMS Alerts, Monthly e-statements/Passbook and Internet
Banking Facility
Track your account transactions using monthly e-statements or
passbook
 Benefits:
No average quarterly balance requirement
Bank Anywhere – Your account can be operated at any branch
in the country
High withdrawal limits of ₹ 40,000/- at ATMs and shopping
transactions of ₹ 100,000/- daily
AXIS Priority Savings Account:
This account gives the enjoyment of Preferential treatment
when one comes to the branch or during the Phone Banking
Centre.
 Features:
One has to maintain an Annual Monthly Balance (AMB) of Rs
2,00,000/-. One will get access to dedicated relationship
management who help to plan an investment.
Customer can withdraw as high as ₹ 1,00,000/- from ATM in a
single day.
Unlimited ATM transactions all over India.
 Benefit:
Customer will be issued Priority Platinum Debit Card with no
issuance fees. Customer can do as much transaction as he can
do without any charges.
Customer can avail a minimum of 15% discount at over 1600
restaurants all over India and get 25% cashback on online
movie bookings.

27
Insurance Agent Account:
 Features:
The Insurance Agents Savings Account is the first of its kind,
an account specially crafted for professionals functioning as
Insurance Agents.
Concessional minimum opening deposit of ₹5,000 in metros
First 5 free transactions at Axis Bank ATMs
 Benefits:
Low Average Monthly Balance requirement of ₹ 5,000/- in
metros.
High withdrawal limits of ₹ 40,000/- at ATMs and shopping
transactions of ₹ 100,000/- daily
ii. Current Accounts:
Normal Current Account:
 Features:
This is the basic Current account of AXIS Bank which will
give optimum value of money.
An Average Minimum Balance of ₹ 10,000/- has to be
maintained.
Upto ₹ 2,00,000/- can be deposited in home branch and ₹
1,00,000/- during Inter-branch deposits in a month.
Free services such as cheque collection and payment at AXIS
Bank locations upto ₹ 12,00,000/- per month.
 Benefits:
ATM cum International Debit Card will be issued.
Daily free e-statement through e-mail.
Local Current Account:
 Features:
All the features of Normal Current Account is applicable here.
One additional facility is that this account gives privilege to
enjoy banking without any balance maintenance.
 Benefits:

28
Customer has an opportunity of using 75 free transactions
during a month for all services combined.
If customer’s ABM in a quarter exceeds ₹ 50,000/- he get a
15% rebate on annual charges every quarter.
Business Advantage Account:
 Features:
In this account customer has to maintain an ABM of ₹ 25,000/-.
S/he has a privilege to deposit upto ₹ 3,00,000/- at home branch
and upto ₹ 1,00,000/- at Inter Branch per month.
 Benefits:
Customer will get 50 cheques per month without any cost.
Free Funds Transfer from Axis Bank to Axis Bank account.
Free local cheque collection and payments across Axis Bank
locations all over the country.
Free upto 50 transactions (Cash / Clearing / Transfer) per
month.
Business Select Current Account:
 Features:
It is the first of its kind current account which has both
flexibility and fungibility of free limits as its core feature, but
atleast ABM should be ₹ 50,000/-.
Customer can enjoy free cash deposit upto 12 times the
monthly average balance maintained in the same cycle with
minimum free limit of ₹6,00,000/- per month.
 Benefits:
month.
Customer can withdraw atmost ₹ 6,00,000/- from other than
home branch per month.

29
Business Privilege Account:
 Features:
This type of account is specially for those who can maintain
ABM of ₹ 5,00,000/- per month.
This account will provide greater facilities if one opt for this.
S/he has a privilege to deposit upto ₹ 60,00,000/- per month at
home branch and upto ₹ 12,50,000/- per day at non-home
branch for instant credit.
 Benefits:
Free RTGS and NEFT facility.
month.
Free cash withdrawal of upto ₹ 25,00,000/- per month at any
AXIS Bank branch other than home branch.
Channel One Account:
 Features:
This is an high end current account provided by bank with an
ABM of Rs 10,00,000/-.
One can have privilege of depositing upto ₹ 1.2 Cr. in a month
at any AXIS Bank branch.
 Benefits:
Customer will get 1000cheques per month without any cost.
Free RTGS and NEFT facility.
month.

30
Free cash withdrawal of upto ₹ 60,00,000/- per month at any
AXIS Bank branch other than home branch.
Business Global Current Account:
A current account for Exporters / Importers with dynamic
features that satisfies their banking needs for both domestic & foreign transaction
 Features:
To facilitate customer’s domestic transactions, Business Global
brings you a current account product with no minimum balance
commitment.
Available off the shelf at your nearest Axis Bank Branch and
select FFMCs (Full Fledged Moneychangers), the Travel
Currency Card is a secure, convenient and hassle free way to
carry money and make payments when in foreign shores.
 Benefits:
Specialized forex services at concessional rates such as:
Concession against Turnover, Export / Import Bill Collection,
Foreign Inward / Outward Remittance, Foreign DD Issue,
Foreign Cheque Collection
DD/PO is free for accounts maintaining Quarterly Average
Balance more than ₹1,00,000/-.
Capital Market Current Account:
 Features:
Irrespective of variant customer choose one can pay / deposit
cheques at any of AXIS Bank branches / outlets absolutely free
of cost and will get the credit as if these transactions were done
at your home branch
 Benefits:
Fund based and Non-fund based credit facilities available
subject to satisfying the Bank's lending norms.
Instant Funds Transfer across all locations absolutely free.
Tailor-Made Current Account:

31
Axis Bank Tailor - Made Current Account is an account for
those who prefer things based on their business requirements and style. Keeping this in mind
‘Tailor - Made Current Account’ is an account that gives freedom to customize the current
account relevant to your specific business needs.
 Features:
The average balance has to be maintained.
Decide the average balance to be maintained in your account.
Choose the number of free transactions per month.
Decide your free monthly cash deposits and withdrawal limits.
Design Cash Management Services based on your requirements
Choose the number of free cheque leaves.
 Benefits:
Business Debit card that can be customize to include your
company name, company logo, brand identity and even a
tagline
Internet Banking
Phone Banking
SMS alerts
iii. Loan:
Home Loan:
Axis Bank offers affordable and flexible housing loans that can
turn your dream of owning a home into reality.
 Features:
Axis bank offers attractive interest rates that makes customers
housing loan affordable
Customer has an option to choose between the fixed and
floating rates as per the market scenario.
Customer has an facility to transfer their current home loan of
other banks to the AXIS Bank without any hassles.
Any query related to home loan or need some help. AXIS Bank
Executive will be at your doorstep.
There are no Pre-Payment charges if customer wants to wave
off the loan before maturity.
 Eligibility Criteria:
A) - Salaried Individuals

32
Individuals in permanent service in the Government or reputed
companies.
Applicants should be above 24 years of age at the time of loan
commencement and up to the age of 60 or superannuation,
whichever is earlier at the time of loan maturity.
B) - Professionals
Professionals (i.e., doctors, engineers, dentists, architects,
chartered accountants, cost accountants, company secretary,
management consultants only) can apply.
Applicants above 24 years of age at the time of loan
commencement and up to 65 years or less at the time of loan
maturity.
C) - Self Employed Individuals
Any individual filing income tax returns can apply.
Applicants should be above 24 years of age at the time of loan
commencement and up to 65 years or less at the time of loan
maturity.
Personal Loan:
Be it a dream vacation, child's education, home renovation or
wedding in your family, you can instantly fulfil your aspirations with Axis Bank Personal
Loans.
 Features:
Loan is available to salaried individuals only with the tenure of
12 to 60 months.
Individual can apply for Loan available from ₹ 50,000/- to
15,00,000/-
Loans taken at higher rate from other banks can be transferred
to AXIS Bank with Balance Transfer Facility.
Salaried Doctors, employees of select MNCs, Public and Private
limited companies, Government sector employees including Public Sector
Undertakings and Central and Local bodies:
Minimum age of applicant: 21 years
Maximum age of applicant at loan maturity: 60 years
Minimum Net Monthly Income: ₹ 15,000/-.
Maximum loan available: ₹ 15 lacs.

33
Loan against Property:
 Features;
Apply for Axis Bank's Loan Against Property. Bank gives loan
against property be it commercial or residential or for purchase
of new commercial property.
Attractive interest rates, Doorstep Services.
A take-over of customer’s existing loan with refinancing is also
possible with Loan Against Property.
-A) Salaried Individuals:
Any individual who is in permanent service in
government or a reputed company.
The applicant in all the cases should be above 24 years
of age at the time of loan commencement and up to the
age of superannuation
-B) Professionals:
Professionals (i.e., doctors, engineers, dentists,
architects, chartered accountants, cost accountants,
company secretary, and management consultants only)
can apply.
The applicant should be above 24 years of age at the
time of loan commencement and up to 65 years or less
at the time of loan maturity.
-C) Self-employed Individuals:
Any individual filing Income Tax returns can apply.
The applicant in all the cases should be above 24 years
of age at the time of loan commencement and up to 65
years or less at the time of loan maturity.
-D) Lease Rental Discounting (LRD):
All resident individuals can apply. The lessee must
however be a company as defined under the Companies
Act, 1956.
Funding will be done only against ready commercial
property. The same will be restricted to 85% of the net
present value of the future rentals or 50% of the value
of property, whichever is lower.

34
Gold Loan:
 Features:
AXIS Bank gives loan against the Gold Ornaments with
the safety of the gold at the bank’s vaults.
Loan will be sanctioned and Disbursement of loan on
the same day.
 Interest Rates and Charges:
Bank gives loan on gold at 13%-16.5% of rate of
interest.
Processing charge will be upto 1%.
Valuation charges will be calculated upto 0.4% or ₹
1200/- whichever is more.
And there will be penalty of 2% if there is any payment
overdue.
Education Loan:
Axis Bank's Education Loan aims to provide the much needed
financial support to deserving students for pursuing higher professional or technical
education in India and abroad. The education loan would be provided to those students who
have obtained admission to career-oriented courses e.g. medicine, engineering, management
etc., either at the graduate or post-graduate level.
Within 15 working days from the date of receipt of application
with all the valid documents, decision will be conveyed by the bank.
The quantum of finance under the scheme is capped at ₹ 10.00
lacs for studies in India and ₹ 20.00 lacs for studies in abroad, which would cover tuition
fees, hostel charges (if any), cost of books, etc. The minimum amount of education loan
would be ₹ 50,000/-.
Role of the Guardian:
The parent(s) or guardian of the student would be treated as a
co-applicant of the student loan. His or her role would be, necessarily,
like the primary debtor.
Cash Credit:

35
AXIS Bank offers Cash Credit facilities to meet day-to-day working
capital needs. Cash Credit is provided against the primary security of stock, debtors, other
current assets, etc., and/or collateral security of movable fixed assets, immovable property,
personal or corporate guarantee, etc. Interest is charged not on the sanctioned amount but on
the utilized amount.
iv. Investments:
Mutual funds:
 Features:
A Mutual Fund is a trust that pools the savings of a number of
investors who share a common financial goal. The money thus
collected is then invested in capital market instruments such as
shares, debentures and other securities. The income earned
through these investments and the capital appreciation realized
are shared by its unit holders in proportion to the number of
units owned by them.
Mutual fund schemes are offered by the Asset Management
companies (AMC) to customers through a distributor. The
Bank acts as a distributor of Mutual Fund products for the
AMC to the customers. A customer wanting to invest in a
mutual fund scheme can avail of the Systematic Investment
Plan option through Axis Bank.
AXIS HYBRID Fund (Series 23):
This is 1275 days close ended debt schemes. In this scheme
AXIS invest portion of investor’s money in Debt Instruments (83%) and remaining in
equity and equity related instruments (17%) to participate in potential upside from
equity markets. It is lock-in period scheme where once the fund is invested, returned
will be on maturity (after 3.5 years).
It is one of the better alternate of Fixed Deposits where investors
get atleast 13-14% of guaranteed return.
3 Reasons to Invest:
• Offers an attractive route to take equity allocation for conservative investors.
• For long term growth, equity has potential of higher appreciation as compared to
fixed deposits.

36
• Blends equity participation with the relative stability of debt.
Systematic Investment Plans (SIP):
SIP refers to the practice of investing a constant amount
regularly, generally every month. It helps you to invest regularly in small instalments and
thereby build wealth over a period of time. SIP ensures that the investors' acquisition costs
are approximated to the average NAV, as when the market will go up more units will be
bought and when the markets come down fewer units will be bought.
To invest in SIP there is a simple steps to follow:
 Step 1: Select a mutual fund scheme of your choice with the payment option
as SIP
 Step 2: Decide the Investment periodicity (frequency of making payments).
You can choose to make your investment on a monthly or quarterly basis.
 Step 3: Select the investment amount. For instance, if you choose to invest Rs
12,000 every year with a monthly SIP Option. Therefore you would be
investing Rs 1,000 every month in your fund. By the end of a year, you would
have invested Rs 12,000 in your fund.
 Step 4: The amount gets converted into units, depending on the Net Asset
Value (NAV). NAV is the market value per unit of a fund. If the NAV in the
first month is Rs 20, you will get 50 units. Similarly in the next month if the
NAV is Rs 25, you will get 40 units. The following month if the NAV is Rs
18, then you will get 55.56 units. So, after three months, you would have
145.56 units. On an average, you would have paid around Rs 21 per unit.
 Step 5: The units get accumulated over a period of time. You can stay invested
till the time you wish and redeem your units when you wish to exit from the
scheme. The units are redeemed at the market value (NAV) and you get back
your money with returns.
Demat Account:
Axis Bank is a registered member (Depository Participant) of National
Securities Depository Limited (NSDL). In this system, physical security holdings are
converted into electronic (or in other words, dematerialized) holdings. Axis Bank has been
enrolled as a Depository Participant by the NSDL - India's first depository. Customer can
avail of all the depository-related services by just opening an account with NSDL through
Axis Bank.

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The facility provided by AXIS Bank in Demat account are as follows:
 Transfer of shares and settlements
 Receipt of Corporate Benefits
 Dematerialisation of shares
 Rematerilialisation
General Insurance:
 Features:
AXIS Bank is the Certified Corporate Agent for TATA AIG
Gen. insurance Co. Ltd. The general insurance product suite offered through this partnership
helps you protect against losses due to unforeseen calamities.
MediPrime:
Tata AIG MediPrime is a transparent health insurance policy
without any sub-limits on health expenses, so both you and your
savings remain healthy.
Travel Insurance:
Travel in peace anywhere in the world. Travel with Tata AIG’s
Travel Guard. While you have meticulously planned every aspect of a
trip abroad, there are still chances of things going awry due to events
beyond your control. You could fall ill, lose your passport, have a
flight delay and so on. For a complete bailout from such unnerving
experiences in a foreign location you need Tata AIG Travel Guard.
Max Life Guaranteed Lifetime Income Plan:
AXIS Bank in tie-up with MAX Life Insurance presents Max
Life Guaranteed Lifetime Income Plan, the smart way to retire. It is a non-linked traditional
annuity plan that guarantees a regular stream of income after your retirement. There are four
reasons to buy this plan:
i. Guaranteed Income to cater to your needs as long as you live.
ii. Option to receive life-long payments for as long as you or your
partner are alive – You have the option to choose a single life
or a joint life annuity.

38
iii. Option to receive return of purchase price on death – After the
death of the annuitant(s), the purchase price of the policy is
returned to the nominee.
iv. Option to choose the mode of pay-out – You may choose to
receive the pay-out on a yearly, half-yearly, quarterly or
monthly basis, as per your needs and requirement.
Max Life Maxis Super:
Max Life Maxis Super is a unit-linked life insurance plan that
helps in planning the finances better by balancing the equity and debt exposure
automatically, so that the future years are the best years of the life.
 Features:
i. Wealth Creation with safety of funds:
Invest as per your risk appetite. Choose between
six funds with the option to switch or redirect savings
between funds, free of charge
Unique feature of “Dynamic Fund Allocation”
which automatically rebalances your portfolio
depending upon years to maturity
ii. Shorter Premium Payment Terms: Option to choose Premium
Payment Term from 7 years or 10 years as per your need
iii. Flexibility of Protection Cover: Option to choose insurance
cover of 11/15/20 times the annual premium depending upon
your age

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 Benefits:
Death Benefit: In case of Death of the Life Insured anytime during
the term of the Policy, Sum Assured plus the Fund Value as on the date
of death, subject to a minimum of 105% of all premiums paid till the
date of death, shall be payable.
Maturity Benefit: On maturity, you will be eligible to receive an
amount, provided settlement option has not been exercised, equal to
the Fund Value, where the Fund Value will be calculated as:
Fund Value = Summation of Units accumulated in Fund(s) X NAV of
respective Fund(s) as on the Maturity Date

40
Account Opening:
A customer’s formal relation with bank starts with Account Opening. In AXIS Bank
the accounts of the customers are usually not opened at branches. The application (known as
Account Opening Forms aka AOF) are received, scrutinized and then forwarded to Central
Processing unit (the CPU Department of the AXIS processes all the information sent by
branches and stores it) and where they are eventually opened.
Guidelines for opening of Savings Account:
1. Account of Resident Individual:
For accounts of individuals, a proof of identity and address as mentioned in
Table___ is required along with a recent passport size photograph not older
than 3 months for saving account. For joint holder the above documents are
required for both, the applicant as well as joint applicant.
For Foreign nationals on employment or setting up of business, they are
eligible to open normal rupee account wit following documents:
 Passport with valid visa
 Letter from employer/ contract letter/ permission from RBI in case of
business
 Address proof as per Table ___.
2. Salary Accounts:
This are the accounts where an employer enters into an understanding with the
bank for opening accounts of the employees for their salary to be credited in
respective accounts. The KYC requirement to open these accounts is the same
as in the case of normal resident individual account.
3. Account of Institutions / Organisations:
Account of non-individuals is opened under scheme code SBTRS. For the
convenience of business they have been classified into 4 constitutions codes of
9-A, 9-B, 9-C, 9-D in Finacle. It is possible that for a “Trust”, “Society”, or
“Company” account is opened, depending upon the business consideration.
Documents for Companies:
Proof of Identity (All the documents are to be obtained)
 Certified ‘True and Updated’ copy of Articles of Association, Memorandum
of Association
 Certified ‘True and Updated’ copy of Certificate of Incorporation.

41
 Specimen signatures and photographs of all authorized signatories duly
certified.
 License issued under Section 25 of companies Act.
 Declaration for availing of at par cheque facility with no limit on clearing
payments at centres other than the base branch.
4. Account of Society:
The entities which may be known by names like Trust, Foundation, Clubs,
Association, Society, NGO etc. but are registered as Societies and registered
under the Societies Registration Act, 1860 or any other corresponding law in
force in State or a Union Territory, the following documents can be collected:
 AOF to be filled and signed by the Authorized Signatories as per
resolution
 Copy of Memorandum and Articles of Association
 Certified true copy of registration certificate
 The id and address proof of the entire authorized signatory to be taken.
Proof of Address of the Society:
 Copy of Certificate issued by Registrar of Co-operative Societies
 Bank certificate from existing banker
 Bank statement of accounts with last 30 days transaction
 Registration certificate having address issued by the Central/State or
any other local government authority
Account Details:
In AXIS Bank, when account is opened, the account holder becomes a client of the
bank. A client ID Number is allotted to him/her. A client can open many account at different
branches. Each and every account is identified by an account number.
Customer ID is a unique number allotted to each customer. Now, it’s possible that a
single customer has two or more accounts. For example, say a customer by name Mr. Mayur
has his salary account with our bank. He may want to open another account jointly with his
wife. Each account is identified by a unique Account No. and all the accounts of Mr. Mayur
are linked to a single Customer ID. Let’s look more closely at the account no.

42
Bank Code 9 15 01 123456789 5
A/c opening Yr.
Account Type
Account No.
Check Digit
Know Your Customer
Who is a Customer?
RBI defines customer as:
One who maintains an account with the bank, or
Any person or entity connected with a financial transaction like a remittance
The remitter or purchaser of an outward remittance
The beneficiary of an onward remittance
Necessary prior checks should be carried out for checking of a prospective customer’s
identity against persons of known criminal background or banned entities. Since this
can only be ensured fully by installing suitable software, it has been decided to
introduce these prior checks after the software has been identified and installed.
Know Your Customer (KYC)
In order to prevent misuse of banking channel from financial frauds, money
laundering, etc., RBI has a part of their initiatives to prevent suspicious activities,
advised bank to follow certain procedure which are known as KYC guidelines.
A comprehensive list of documents qualifying to be attached as id proof and
address proof is mentioned in table below:

43
Table A
(Proof of Identity)
Table B
(Proof of Address)
Pan Card Passport
Passport Telephone Bill/ Electricity Bill. (Bill date
should not be older than 3 months)
Election card Ration Card
Photo Id issued by Government/ Defence
services/Public Sector Undertakings
Letter from a recognized public authority or
public servant verifying the address of the
customer.
Driving License Income tax/Wealth tax assessment order
Aadhar Card Domicile certificate with communication
address and photograph
For married woman, proof of identity with
her maiden name, if supported with a
verified true copy of marriage certificate,
will be accepted as valid identity proof.
Address proof in the name of
father/mother/spouse/blood relative of the
applicant
KYC essentially involves identifying the customer and verifying his/her
identity by using reliable, independent source documents, data or information. Special
attention will have to be given to due diligence for accounts of trusts, companies and
clients’ accounts opened by professional intermediaries. In the case of trusts, branches
should take reasonable precautions to verify the identity of the trustees and the settlers
of the trust. Beneficiaries should also be identifies when they are defined. For
companies, branches need to be vigilant against business entities being used by
individuals as a ‘front’ for maintaining accounts opened by a professional
intermediary is on behalf of a single client, that client must be identified as per our
procedure.
These guidelines are so important, that even an existing account may have to
be closed due to the Bank’s inability to verify the customer’s identity, although any
Branch Heads will have the authority to take such decision. The aim of these
guidelines is to:
 Determine and document the true identity and basic background of all
customers.
 Obtain and document any additional customer information, commensurate
with assessment of the money laundering risk posed by customer’s expected
use of Bank’s products and services.
 Minimise frauds
 Avoid opening of accounts with fictitious names and addresses
 Check misappropriations
 Prevent money laundering
 Obtain protection under Section 131 of Negotiable Instrument Act., and to
weed out undesirable customers.

44
Account Profiling:
RBI has stipulated categorization into low, medium and high-risk categories. It
has been decided to do so based on anticipated transactions volume in each account.
This would help the Bank to classify the accounts into different risk categories
for the purpose of activity/transaction monitoring. The cut limits could be specified
depending upon the risk profile. The profile would need to be updated from time to
time. As money laundering is a process essentially involving a series of transaction, it
has been considered appropriate to compile the profile in the case of only Savings
Bank and Current Accounts rather than Term Deposits. It will also not be necessary to
extend the procedure to asset accounts.
Account Profile:
Additional data which is collected in the AOF such as annual income, age,
occupation, etc., in case of individuals and details of the type and extent of the
business in case of current account is used to develop what is known as an “Account
Profile”. Such a profile gives us an idea of the type of transactions/activities expected
to pass through the account, which would eventually help us identify any suspicious
transaction not commensurate with the customer profile. Although this information is
completely voluntary, it is invaluable for monitoring the activities in the accounts, as
also risk perception from the money laundering point of view. The risk factor would
determine the nature and extent of monitoring required.
Transaction Profile:
Just as I try to draw up an account profile, constant monitoring of the accounts
help us draw up a Transaction Profile. This is again done so that we are able to spot
quickly if there is any unusual activity in the account.
 Does the customer deal in large cash transaction? If so, what is the nature of
such transactions?
 Do we have any other agreement with the client for fund transfers? If so, what
are the arrangements?
 Details of loan facilities enjoyed by the customer from the bank
 Do we have regular contact with the customer? If so, by what means e.g.
personal visits, telephone calls, e-mail etc.? Who are the persons generally
contacted by is?

45
Monitoring of Transactions:
The extent of monitoring should depend on the risk sensitivity of the account. A list of
clearing credit transactions for Rs. 50,000/- and above in newly opened accounts is being sent
by Data centre on a daily basis. Branches should scrutinize the transactions.
Any transactions exceeding the threshold limit of 10 lacs should be monitored to see
if it conforms to the profile. If not, details may be sought to establish the nature of
transaction. Apart from such transactions which cross the threshold limit, certain other
activities may be give rise to suspicion of money laundering. However, in needs to be
ensured that, in our zeal to monitor such activities, genuine and bona fide transactions of
customers are not delayed and customers inconvenienced.
Apart from following the procedures relating to remittances as laid down in the
FEMA guidelines, the branches while dealing with overseas fund transfer, both inwards and
outwards, will have to be vigilant in ascertaining, wherever possible, the purpose of
remittances, particulars of the remitter as well as the beneficiaries, and link such remittances
to the customer profile on record. It may be necessary to scrutinise transactions more closely
if the pattern of remittances arouses suspicion. However, care will have to be taken not to
delay crediting the proceeds of the remittances solely for lack of particulars of the above
nature. Here again, the matter should be handled with appropriate tact.
Deposit Accounts - General Guidelines:
Current and Savings Bank Accounts (CASA):
Deposit accounts can be broadly classified as Demand Deposits and Term/Time
Deposits. CASA are Demand Deposits. While no interest is paid in Current Accounts, the
accounts can be opened by different types of Depositors like individuals, corporates,
Association of Persons, Body of Individuals, Firms, Sole Proprietorship, etc., mainly for
business purpose.
Saving accounts is to be allowed only for savings purpose and not for business
purpose. RBI has now deregulated the interest rate in Saving Bank Accounts and AXIS bank
is providing 4% interest. Interest can be paid on daily products at quarterly or longer rates.

46
As per the RBI guidelines, apart from the individuals, banks can open SB A/c in the
name of the following organisations /agencies:
Primary Co-operative Credit Society which is being financed by the
bank
Khadi & Village Industries Board.
Agriculture Produce industries Board
Societies registered under Societies Registration Act, 1860 or any other
corresponding low in force in State or a Union Territory
Government Departments/ Bodies/ Agencies in respect of grants/
subsidies released for implementation of various programmes/ schemes
sponsored by Central Government subject to production of an
authorization from the respective Govt. Department to open saving
bank account.
Development of Women and Children in Rural Areas.
RBI has directed that banks may open SB Accounts in the name of State Governments/
Government Departments/ Bodies/ Agencies in respect of grants/ subsidies released for
implementation of various programmes/ schemes sponsored by Central Government,
certifying that the concerned govt. dept. or body has been permitted to open SB Account.
Domestic Term Deposits:
Interest Rates:
It is de-regulated by the RBI. Banks can offer Fixed or Floating rates. Banks
have been given discretion to offer differential rates of interest on domestic term deposits of
the same maturity of Rs. 15 lakhs and above i.e., depending upon size of the deposits of Rs.
15 lakhs and above. E.g.: For a deposit of Rs 2 lakhs a bank can offer higher rate than that of
a Rs 10 lakhs deposit even for the same tenure.
Minimum period:
In AXIS bank, the minimum period is 7 days of all deposits.
Maximum Period:
10 years is maximum period of all deposits. But in case of minor period can be
extended if it is covered under the minor interest rates.

47
Rate of Interests and Margin for Advanced against Term Deposits:
The minimum margin to be maintained on such advances is 15% and the rate
of interest over the deposit rates is 2% for deposits upto Rs 1 crore, 3% for deposits above Rs
1Cr, and 4% for third party loans irrespective of deposit amount.
Deposits Schemes for Senior Citizens (60 years and above):
Banks are permitted to formulate Fixed Deposit Schemes specially meant for
Senior Citizens offering higher rates as compared to normal deposits of any size.
Discretion to disallow premature withdrawal:
Freedom given to banks in respect of large deposits held by entities other than
individuals or HUF.
Penalty for premature Payment:
Penalty on pre-mature payment has also been de-regulated. Banks can even
pay without penalty.
Renewal of Overdue Deposits:
Renewal as of date is permitted where overdue is upto 14 days only.
Payment of Interest in Accounts of Deceased Customers:
Where the depositors has expired before the date of maturity of the deposit
and the amount is claimed after the date of maturity. The bank should pay interest at
contracted rate till the date of maturity. The bank should pay simple interest at the applicable
rate, operative on the date of maturity for the period for which the deposit remained with the
bank beyond the date of maturity. In case of death of the depositor after the date of maturity
of the deposit, however, the bank should pay interest @ SB rate operative on the date of
maturity from the date of maturity till the date of payment.
Payment of Interest in Term Deposit maturing on holidays:
As per IBA – Code for Banking Practice, if the noted due date of a term
deposit falls on holiday, Sunday, non-business working day, interest be paid for such
intervening day at the originally contracted date till the succeeding working day.

48
Settlement of Claims in DeceasedDepositors Accounts:
As per RBI directives, while settling the claim of deceased depositors where
nomination is not registered, the requirement of insisting on succession certificate from the
legal heirs has been totally withdrawn irrespective of the amount involved. However, banks
should adopt such safeguards in settling claims, as they consider appropriate including taking
of indemnity bond. Succession certificate can be insisted upon only in case of failure to
comply with such safeguards by the claimants.
With a view of harmonizing present regulations on interest rates and interest
calculation methodologies, RBI has announced the following changes in the guidelines:
All aspects concerning renewal of overdue deposits including payment of interest for
renewal within and after 14 days, margin on advance against term deposit and interest
payable on maturity proceeds of deposit account of deceased depositor and method of
calculation of interest on payment of interest on fixed deposit have been deregulated and left
to the discretion of individual banks subject to their boards laying down a transparent policy
in this regard.
Interest Application on Premature Withdrawals and Part Withdrawals of Term
Deposits:
These guidelines cover premature withdrawals and part withdrawals and are not
applicable to Inter-bank deposits.
Premature withdrawal (Full amount):
Interest paid is always at the rate corresponding to the period for which the
deposit has run.
Particulars for Domestic Deposits Penal Interest Rates
(1) For deposits of less than Rs 15 lacs
For deposits that have run for less than 7
days
No interest to be paid
For deposits that have run for atleast 7 days No premature penalty to be charged
(2) For deposits of Rs 15 lacs-5 Crores
days
(3) For deposits of Rs 5 Crore and
above
days

49
Particulars for Non-Resident Rupee
Deposits
Penal Interest Rates
(1) For Deposits of less than Rs 5
Crore
For deposits that have run for less than one
year
For deposits that have run for atleast one
year
No premature penalty to be charged
(2) For Deposits of Rs 5 Crore and
above
For deposits that have run for less than one
year
For deposits that have run for atleast one
year
Premature penalty of 1% to be charged
Part Withdrawals of Term Deposits:
All part withdrawals in Finacle for all products are governed by the same rules.
Applicability of penal rate on the part withdrawn amount is governed by the rule of threshold
limits set for each product. The logic of part withdrawal is detailed below:
The original deposit amount gets reset to a new value, which is equal to
original deposit less part withdrawn amount.
The rate of interest applicable on the residual deposit also gets reset based on
the residual principal
The tenor of the deposit remains unchanged
Interest paid on the part withdrawn amount is equal to the rate applicable on
the original deposit for the period run and not on the amount of part
withdrawal.
Penalty is applied if the original deposit is over the threshold limit set for the
scheme
Insurance Coverage on Deposits:
All AXIS Bank’s deposits are covered under the insurance schemes offered by
Deposit Insurance and Credit Guarantee Corporation of India (DICGC) subject to certain
limits and conditions. The DICGC insures all deposits such as savings, fixed, current,
recurring, etc. deposits except the following types of deposits:
Deposits of Foreign Governments
Deposits of Central/State Governments
Inter-bank deposits

50
Deposits of the State Land Developments Banks with the State Co-operative
bank
Any amount due on account of and deposit received outside India
Any amount which has been specifically exempted by the corporation with the
prior approval of RBI
Each depositor in a bank is insured up to a maximum of Rs.1,00,000/- for both
principal and interest amount held by him in the same right and some capacity.
The deposits kept in different branches of a bank are aggregated for the purpose of
insurance cover and a maximum amount upto Rs 1,00,000/- is paid. For example, if an
individual had an account with a principal amount Rs 95,000/- plus accrued interest of Rs
4,000/-, the total amount insured by the DICGC would be Rs 99,000/-. If however the
principal amount in that account was Rs 1,00,000/-, the accrued interest would not be insured,
not because it was interest but because that was the amount over the insurance limit.
Accounts of Minors:
Account Opening:
While opening the account of a Minor, the Bank is guided by the provisions of
Section 3 of the Indian Majority Act, 1875, which defines, inter alia, that “A minor is a
person below the age of 18 years, unless a guardian is appointed by Court of Law or the
property of the minor is under superintendence of Court of Wards, in which case minority
extends till the age of 21 years.”
Three type of minor’s accounts can be opened at the branch. These accounts and their
operative guidelines are as follows:
1. Accounts in the name of the minor alone:
A literate minor above the age of 12 years, who can comprehend the nature of
banking transactions and can sign uniformly, is allowed to open and operate such an
account.
The maximum balance in such accounts is normally restricted to Rs. 1 lac and exceptions
permitted with the approval of the Branch head. Instruments in the name of the minor only as
payee are allowed to be credited to such accounts. This precludes the possibility that
instruments issued in favour of the father/mother are collected in accounts.
2. Accounts in the name of Minor alone but operated by the Guardian:
Such accounts opened in the name of the minor are operated by one of the parents as
guardian for and on behalf of the minor, or in case where the natural guardian is not alive or
is unable to discharge duties, is operated by a guardian appointed by a Court of Law for and

51
on the minor’s behalf. The exact age of the minor is irrelevant for such an account as long as
he remains a minor. The minor’s signature is not admitted in the account for the purpose of
operation. Here again, instruments in the name of the minor only as payee are allowed to be
credited to such accounts. Instruments issued in favour of the father or the mother is not
collected for this type of account. There is however no restriction as to the deposit/maximum
balance in these accounts unlike in the accounts mentioned in above type 1 account.
3. Joint Accounts in the name of the Minor and the Guardian:
Such accounts opened in the joint names of the minor and the guardian are operated
with the signatures of either the minor or the guardian with the mandate as either or survivor,
or former or survivor, or jointly by both where the mandate provides for joint operation. In
these cases, instruments both in the name of the minor and/or the named guardians as payee
are allowed to be credited to such accounts. There is no rejection again as to the
deposits/maximum balance in these accounts unlike in the accounts mentioned in type 1
account.
In any of the above cases, the birth date of the minor, verified from the original
school/ birth certificate, is required to be invariably recorded in the account opening
form/specimen signature card. This is necessary because when a minor attains majority, the
status of the guardian i.e., his authority to sign for and on behalf of the minor is revoked.
Simultaneously, the minor is required to ratify the actions taken by the guardian in the past
for and on his behalf so as to bind him on the transactions as he has now become capable of
contracting in his own capacity in the eyes of the law.
After minor attains majority, branch should take a balance confirmation letter as well
as a new AOF from the former minor and modify their records accordingly.
ATM Card Issued to Minors:
AXIS Bank currently issues Trust 24 ATM card to minors, above the age of 12. In
order to increase operational efficiencies, it has been decided to issue Debit Card to minors
above the age of 12. The details of the offering are as follows:
Issuance of Debit Card to minors above the age of 12 years, who can sign
uniformly.
Daily withdrawals limit of Rs 1500/- at ATMs.
Daily spend limits of Rs 1000/- at merchant outlets

52
Risk Management:
The concurrent/internal auditors specifically check and verify the application of KYC
procedures at the branches and comment on the lapses. To assist them in their work, the
AIMS (Account irregularity Monitoring System) software has been implemented at the CPU.
Which will indicate the up-to date state of KYC compliance in respect of each new account
opened. The branches should make adequate efforts to rectify the irregularities pointed out by
the CPU auditors as soon as possible.
Monitoring of Compliance of the Account Opening Procedure:
Day end checking at branch level
Concurrent audit at the CPU
System audit at new branches
Snap audit
Concurrent audit of bigger branches
Verification by controlling officials during visits to branches
Periodical inspection of branches by internal/external auditors
Precautions For Opening and Conduct of Accounts:
Recently, certain instances have come to the notice where accounts have been opened
at some of the branches by false person to obtain unlawful payment of the following types of
instruments:-
Those issued in favour of genuine persons but illegally obtained by persons
claiming to be the original payees
Those which have been stolen from the issuing bank and put to misuse
Those whose material details like payee’s name, account details, amount etc.
have been altered
For most of the cases, branch have performed the role of collecting bankers
and the relative instruments have either been paid in some instances or dishonoured in
others due to vigilant and timely detection by the paying banks. As such, branch have
not been out of funds in these cases. However, branches need to be fully aware that
protection as a collecting bank would be available under the Negotiable Instruments
Act only if it can be conclusively established that the relative accounts have been
opened by the branch after rigorously following the procedures laid down for opening
of accounts, including observance of the KYC norms aimed at establishing the
identity and other particulars of the account holder.

53
The following safeguards has been lay down:
The scrutiny of the AOF should be done by an official at least of the level of
Manger/Operation Head before being sent to CPU.
Delivery of the Debit cards, PINs etc. to third parties against authority letters
should be done only with the approval of the Branch Head/Operation Head,
duly recorded on the letter to that effect.
Branch while collecting high value instruments of say 50,000/- and above on
behalf of other branches should check the relative account in Finacle,
particularly in regard to the date of opening, before crediting the proceeds.
Having opened the accounts with due precaution, it is also necessary that all
vouchers, cheques, drafts, dividend warrants, etc., presented for payment or
collection are verified thoroughly before authorisation is given. In a couple of
cases recently it was possible to detect the alterations made in a dividend
warrant and a cheque due to such scrutiny before payment was made by our
branches. All officials should, therefore, be made aware of paramount
importance of a proper scrutiny of instruments passing through their hands.
Cash Transaction Guidelines:
Saving/Current Accounts: There is no restrictions for the amount. If the total
amount deposited by way of cash in an account in a day is Rs 50,000/- and
above, PAN of the account holder should be obtained if not taken on record at
the time of opening the account. In case, the account holder does not have the
PAN, then Form 60/61 should be obtained on the day of such deposit.
Time Deposits: as per the IT rules, cash remittances exceeding Rs. 50,000/-
requires the account holders PAN or form 60/61. As per AXIS’s internal rules
for opening a Fixed Deposit account for amounts exceeding Rs 50,000/-
requires the account holders PAN or form 60/61. Cash payment should not be
made by a bank to any person whose total holdings of the Time Deposits are
Rs 20,000/- or more as per IT Act.
Demand Draft: In AXIS bank for an amount exceeding Rs. 20,000/-, the
remitter has to be identified. All drafts/pay orders of Rs 20,000/- and above
should be issued as crossed only.

54
Payment and Settlement System:
The banking sector has been witnessing a remarkable transformation over the last
eight-nine years. Technology adoption has changed the way one do the banking transactions
these days, with ATMs and credit cards, ECS, RTGS, NEFT facilitating anytime, anywhere,
banking. This system works as follows:
The Medium: Indian Financial NETwork (INFINET) is the communication backbone for
the Indian Banking and Financial Sector. All the banks are eligible to become members of the
INFINET. It is a Closed User Group (CUG) Network for the exclusive use of member banks
and financial institutions.
The Carrier: The Structured Financial Messaging System (SFMS) is built on the lines of
SWIFT but has many more utilities to offer. The major advantage of SFMS is that it can be
used practically for all purposes of secure communication within the bank and between
banks. The intra-bank part of SFMS, which is most important, can be used by the banks to
take full advantage of the secure messaging facility it provides.
The Identifier: Indian Financial System Code (IFSC) is an alpha numeric code designed to
uniquely identify the bank-branches in India. This is 11 digit code with first 4 characters representing
the banks code, the next character reserved as controlcharacter. (Presently 0 appears in the fifth
position) and remaining 6 characters to identify the branch.
The Mode of Transfer:
1. Electronic Clearing Services:
It is a mode of electronic funds transfer from one bank account to another
bank account using the services of Clearing House. This is normally for bulk
transfers from one account to many accounts or vice-versa. This can be used
both for making payments like distribution of dividend, interest, salary,
pension, etc. by institutions or for collection of amounts for purposes such as
payments to utility companies like telephone, electricity, or charges such as
house tax, water tax, etc. or for loan instalments of banks or regular
investments of a person. There are two types of ECS: i) ECS Credit- is used
for affording credit to a large number of beneficiaries by raising a single debit
to an account such as dividend, interest or salary payment. Ii) ECS Debit- is
used for raising debits to a number of accounts of consumers/ account holders
for crediting a particular institution.

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