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Business News/ Money / Calculators/  How to open a bank account via an app
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How to open a bank account via an app

In the last 6 months, banks such as Kotak Mahindra Bank and DBS Bank rolled out a feature that lets you open an account directly through their app

Photo: MintPremium
Photo: Mint

Banks are turning to electronic know-your-customer (eKYC) processes to make it easier for their customers to open bank accounts.

Banks such as Axis Bank Ltd, Kotak Mahindra Bank Ltd, The Federal Bank Ltd and DBS Bank Ltd have enabled eKYC for opening bank account online or from mobile phones. To open an account using eKYC, you need to have an Aadhaar number. Mint takes a look at some of these newly launched apps, to see what they offer.

What’s on offer

In the last 6 months, banks such as Kotak Mahindra Bank and DBS Bank rolled out a feature that lets you open an account directly through their app. Kotak also uses video-conferencing to complete the account opening process from its Kotak Now app.

“After you upload the images of the documents, a video call is done to complete the account opening process," said Deepak Sharma, chief digital officer, Kotak Mahindra Bank Ltd. Meanwhile DBS Bank’s app-based service—Digibank allows you to initially open an electronic wallet and then upgrade it to a digital savings account. Federal Bank allows you to open zero-balance savings bank account from its Fedbook app. Most of the banks allow you to open zero balance accounts.

How it works

For all the app-based account opening processes, apart from downloading the app you need to have an Aadhaar as well as a permanent account number (PAN). The process of submitting these documents vary from bank to bank.

For instance, in case of Kotak Now, you need to upload the images of your PAN card, Aadhaar card and your signature on a blank sheet of paper. Next, you will be prompted to make a video call with the bank’s executives.

In case of Digibank, DBS Bank’s mobile banking app, a user has to first open an electronic wallet, by using a registered mobile number and a verified email ID. This e-wallet can be upgraded to a savings account by providing details of Aadhaar and PAN. You can visit a partner store or the bank’s branch to register your fingerprint to complete the account-opening process. Email sent to the bank regarding the procedure remained unanswered.

In case of Federal Bank Ltd, besides scanned copies of Aadhaar and PAN cards, you also need to take a selfie from the app itself.

It sounds easy to do, but there can be a hiccup or two in some areas. One of them is, your phone number needs to be the same as mentioned in your Aadhaar details.

In case of Kotak Now, before the video call is set up, you are asked your phone number. If it is not Aadhaar-linked phone number, you may face troubles in proceeding further. Mint tried to place a video call from the app, but it did not go through despite trying twice on a 3G connection. It is likely that you may need a 4G network or a Wi-Fi to proceed with the call. Once the process is completed successfully, your account gets activated and the welcome kit is delivered on your home address.

After this, the bank also sends over an executive to collect your wet signature on the bank forms and physical photocopies of your documents. In case of DBS Bank, the Café Coffee Day outlet in central Mumbai is an authorised centre to complete biometric verification. But the outlet was not well aware of the procedure.

Beware of fakes

You should be cautious when downloading banking apps for opening an account. There are some fake apps too, that are designed with banks’ logos, looking to steal your information. Check the name of its publisher and only download from a a trusted app store.

But if you take all the precautions, you can open a bank account without visiting the branch.

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Published: 12 Oct 2016, 04:14 PM IST
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