A recent press report said that banks are now operating roadside kiosks where account opening formalities are done in a moment, as part of adopting innovative marketing methods to mobilize Savings Accounts and Current Accounts (CASA).
The methods include setting up kiosks at busy junctions, encouraging employees to mobilize accounts from friends and relatives and, of course, offering benefits to new customers.
An employee of Punjab National Bank said that each of the employees are asked to bring in some ‘dependable’ accounts where a minimum balance of Rs 5,000 is ensured.
Reports said that the reason for this renewed focus on CASA is an attempt to reduce cost of funds as interest on savings bank account is now at only 4 per cent while for fixed deposits it is much higher.
Mr. Nagesh Pydah, Chairman and Managing Director, Oriental Bank of Commerce, said that CASA is very important to drive down cost of funds.
Mr Anil Girotra, Executive Director, Andhra Bank, said banks now have to keep on focussing on CASA round the clock and that the bank was monitoring new CASA on a fortnightly basis at the branch level.”
Apart from reducing cost of funds, CASA is also a ‘gateway’ to a greater banking relationship with a client, he added.
From a customer’s perspective, opening an account now can be advantageous as one might get add-on personal accident insurance cover, instant debit card, and net banking facilities, among others, as giveaways.