MUMBAI: ICICI Bank on Monday launched a pure online account where deposits above Rs 5,000 are automatically swept into a term deposit scheme with interest rates in the region of 8-8.5%.

The bank also launched its cardless cash transfer initiative, through which customers of the bank can transfer funds to anyone in the country having a mobile phone.

Once opened, the account will be accessible only through a separate internet banking portal, which the bank is calling b2. The account holder will not be given a chequebook or debit card, but he will be able to carry out a number of transactions like bill payments, fund transfers and mobile recharges.

Customers will also be able to link the account to their accounts in other banks as well, and electronically transfer funds. They will also be able to procure personal loans and virtual credit cards through the portal, said ICICI Bank executive director V Vaidyanathan.

The cardless cash transfer initiative of the bank follows a similar initiative started by Standard Chartered Bank a few months ago. Through this, a customer of the bank can transfer funds up to Rs 10,000 from his internet banking account to any person who has a mobile phone.

On validating the sender’s account, the bank sends the recipient a text message which contains a unique code that is valid for 24 hours. Thereafter, the recipient needs to go to an ICICI Bank ATM, enter the code and withdraw the cash.

According to Mr Vaidyanathan, the bank will make considerable savings by having their customers use direct channels like internet and ATMs , which is what enabled them to offer the automatic sweeping facility to the FD, which the bank calls the quantum optima facility. Internet banking is ICICI Bank’s second-most popular transaction channel, with 24% of its transactions being carried out online, while maximum transactions are done through ATMs.

All other features of the b2 account will essentially be on the lines of the bank’s existing internet banking
offering. In fact, ICICI Bank has similar offerings for its clients in the UK, Canada and Germany. “We have close to 2 lakh customers who have parked up to $5.3 billion in this particular account in the countries that we have launched it in internationally,” said Mr Vaidyanathan.