At a time when banks are reducing deposit rates, IDFC First Bank has promised to give 7% interest rate on savings account opened through video KYC procedure. The bank on Wednesday announced launch of video KYC for opening savings accounts, the lender informed through a release. Amit Kumar, head, retail liabilities, IDFC First Bank, said, “The customers can start earning 7% interest and maximise their returns on funds held or invested anywhere else.”
Private sector lender Kotak Mahindra Bank (KMB) on Monday reduced interest rates on savings account, following 40 basis points (bps) repo rate cut by the Reserve Bank of India (RBI) last week. For balance up to Rs 1 lakh, KMB had lowered interest rate on savings account by 25 bps to 3.5%. Similarly, the largest lender State Bank of India (SBI) had reduced rates on savings account by 25 bps to 2.75% last month. SBI on Wednesday has also announced 40 bps rate cut in fixed deposits (FD) for its customers. The one year FD of SBI will now fetch 5.1% return.
IDFC first became the fourth bank to start video KYC after Kotak Mahindra Bank, IndusInd Bank, RBL Bank. “The start-to-finish digital journey makes savings account opening a delight, as it enables customers to complete the paperless KYC process in approximately two minutes and avail the industry’s best interest rates on savings balances, ” Amit Kumar said. The zero contact method completely does away with paper work or biometric verification, thereby removing physical interaction between the bank and customer from the KYC process, he further added.
IDFC First Bank on Friday reported a consolidated net profit of Rs 76 crore in the March quarter, compared to a loss of Rs 212 crore during the corresponding quarter a year ago.