Even at the time of lockdown due to the outbreak of coronavirus, HDFC the largest private sector lender has added 2.5 lakh new customers in the last 40 days through an online portal that helps an individual to open saving accounts instantly.
According to a source, the account can be created through a limited know your customer (KYC), and the customer can update the details within one year of opening the account. The “Instant Account App” was launched when the lockdown has been followed with strict rules and regulations across the nation in April. It has been reported that all of the 2.5 lakh accounts are new customers to the bank. And most of the accounts from 2.5 lakh new accounts, are from red zones or containment zones across the metro city regions. During the lockdown, banks were allowed to open because it was considered “essential service” but the number of consumers was only a few and therefore, the online portal was the best aid to open new deposit accounts. “The minimum average monthly balance requirement is Rs 10,000 for metro cities, Rs 5,000 for semi-urban centers and Rs 2,500 for rural centers,” a source said.
For opening an account through online mode, it requires KYC details like valid Permanent Account Number (PAN), Aadhar card, and one-time password via SMS through registered mobile number, this can result in an activated account instantly. Social media, WhatsApp, emails, and a few other marketing strategies like word of mouth helped banks to market about instant account opening. A bulk of the transactions being witnessed with such accounts are online shopping and cardless cash withdrawals, they said.
According to reports, as per the RBI guidelines, the maximum balance amount to be maintained for such accounts opened with limited KYC has to be Rs 1 lakh. Recently, Bajaj Motors and HDFC bank came together to figure and offered a special finance scheme. The government has decided to unlock the lockdown but businesses will open in different phases. All the banks have been opened in the “Unlock 1” phase.