BackOne-minute guide: IDFC Bank Ltd personal banking products
It has 23 operational branches15 in three districts of Madhya Pradesh and the rest in Mumbai, Bengaluru, Pune, Chennai, Kolkata, Delhi and Ahmedabad
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IDFC Bank Ltd launched its operations on Thursday. It is one of the two banks—Bandhan Bank Ltd being the other one—that received licences from the Reserve Bank of India (RBI) to start new banks. IDFC Bank launch comes over a month after Bandhan Bank was launched. As of now the retail products of IDFC Bank are available for its employees only, however, it has hinted that it will make its consumer banking operations available to the general public by January 2016.
So, let us take a quick look at what is on offer for retail customers by the new kid on the banking block.
PRODUCTS AND INTEREST RATES
Savings bank account: Like all the major commercial banks, IDFC Bank will offer an interest rate of 4% per annum on its savings bank account which will be paid quarterly to its account holders. Bandhan Bank gives a slightly higher interest rate of 4.25% per annum on its savings account deposit. IDFC Bank will be offering a basic savings account, along with those specifically at women, minors, and senior citizens.
Fixed deposits (FDs): To open an FD with IDFC Bank, you have to be a bank customer. Interest rate on FDs will be in the range of 4-8.75% a year. For instance, for FDs with a tenure of 366-400 days for senior citizen, the interest rate is 8.75% per annum . The bank said on its website that there will be no penalty on premature withdrawal of FDs. Typically, banks charges a 1% penalty on premature withdrawal.
Recurring deposit: It is offering an interest rate of 7.25- 8.50% on its recurring deposits that come with a tenure of 6 months to 10 years. For instance, for those opting for a six-month recurring deposit, the interest rate is 7.25% a year. The minimum instalment amount for recurring deposit is 2,000. According to the bank website, you will not be charged a penalty for skipping an instalment during the tenor of the deposit.
Base rate: The bank has set its base rate at 9.50% per annum. Base rate is the minimum rate at which banks can lend to its customers. Currently, the base rate of major commercial banks has slid below 10%. It will start offering retail loans from January.
Third-party products: At the moment, it does not offer products such as insurance and mutual funds.
TRANSACTIONS SIDE
Branches: It has 23 operational branches—15 in three districts of Madhya Pradesh and the rest in Mumbai, Bengaluru, Pune, Chennai, Kolkata, Delhi and Ahmedabad. IDFC Bank will focus on doorstep banking, under which it will reach out to customers instead of the customers visiting the branch.
Automated teller machines (ATMs): IDFC Bank customers will be allowed unlimited number of free transactions at both home and non-home branch ATMs. Its debit cards will be Visa- and Rupay-enabled. At present, it has just one ATM, i.e. in Mumbai.
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