In spite of the lockdown, the largest private sector lender HDFC Bank has been able to add around 2.5 lakh, new customers, in the last 40 days through an online facility that helps open savings accounts instantly, as sources said.
The account is created by using a limited know your customer (KYC) requirement the provision, and the client has a year’s time after the instant account opening to update the full details, as by the sources. The Instant Account App was launched in late April whenever there was strict lockdown around the country. Banks were classified into an essential services and also allowed to be open, but the lockdown meant fewer client footfalls, making the online alternative helpful to open new deposit accounts.
“All the 2.5 lakh accounts which have been opened are new bank customers,” according to source told, as adding that the minimum average monthly balance requirement is around Rs 10,000 for metro cities, around Rs 5,000 for semi-urban centers and around Rs 2,500 for rural centers.
HDFC Bank – Most of the accounts that have been opened are from containment zones and also red zones in metros and urban areas, as the sources said, by adding that semi-urban and rural areas have also seen activity. The account is opened by using basic KYC details like Aadhaar card, a valid PAN (i.e. permanent account number), and a one-time password via SMS, and gets activated instantly. A bulk of the transactions that being witnessed with such accounts are online shopping and cardless cash withdrawals at the automated teller machines (i.e. ATMs) which can be started using the application, as they told. The bank marketed the instant account opening through social media, emails, and Whatsapp messages, they said, adding that word of mouth also helped. As per the Reserve Bank of India, individuals can opt for such an account with the limited KYC, and also the maximum balance in such accounts has been capped at Rs 1 lakh, according to the reports.