Called ‘Insta Flexicash’, the end-to-end fully digital facility can be availed using the bank’s internet banking platform. The product is being launched at a time when consumption-linked retail credit growth has slowed down.
ICICI Bank on Monday announced the launch of a facility enabling its salary account customers to get approvals for overdraft (OD) instantaneously and in a paperless manner.
Called ‘Insta Flexicash’, the end-to-end fully digital facility can be availed using the bank’s internet banking platform. The product is being launched at a time when consumption-linked retail credit growth has slowed down. As per latest available data from the Reserve Bank of India (RBI), retail loans grew just 12% year-on-year (y-o-y) in April against 15.7% a year ago.
The facility can be sanctioned immediately while customers can start using the approved OD limit within 48 hours. The interest payable on the OD is calculated on the basis of the actual amount availed by the customer, not on the full amount of the OD sanctioned, the bank said, adding that the credit limit could be worth up to three times the customer’s net salary.
Customers have the option of clearing the outstanding limit at their convenience and are required to pay the interest that is due every month. Customers can choose to repay the OD amount that they avail as and when they choose to, without any foreclosure charges. An automated process enhancement and renewal of OD limit can be availed every 12 months.
Sudipta Roy, head – unsecured assets, ICICI Bank, said the bank has leveraged upon data analytics and technology to introduce a slew of retail products that can be availed instantaneously. “This new facility, ‘Insta FlexiCash’, is an extension of this endeavour. During the testing times of the coronavirus pandemic, we feel that this new facility will help our salaried customers tide over their need for liquidity for various expenditures in a hassle-free manner,” he added.