Overview
DBS is an Asian bank, operating in India too. Doubtless, it has got the apt banking license from the competent authorities in India. 'digibank' is an app-only banking with no cash or cheque deposit facilty, albeit you may withdraw cash using the ATM card at any ATM for free for any number of time. It's a zero-balance account, and earns 7% p.a. on balance up to Rs1 lakh.
Q. Who can open this account?
A. Any Indian adult with PAN and Aadhaar numbers, and a smartphone with an active mobile connection can open this account.
Q. How to open the account?
A. You need to download the app, viz. digibank by DBS of around 20MB data. Enter the required details. You'll instantly get your account no., IFSC, MMID, etc. Either request for an agent or visit any urban Cafe Coffee Day outlet for fingerprint verification. It's done.
Q. How can I deposit money?
A. You can transfer funds using NEFT/RTGS/IMPS of any of your existing bank's net banking facility.
You may use any other bank's debit card to fund this account just like you pay online.
You may click the third option to use the net banking of your existing bank in the app itself to fund this account.
Q. How can I withdraw money?
A. Use your debit card,issued by DBS, which you may get within 4 days of applying for it on the app to withdraw cash. Else, you may transfer the fund to anyone you wish instead of using cash.
Q. What if I need to issue a cheque?
A. Transfer funds back to the bank account with chequbook facilty , and issue the cheque.
Q. Is there any minimum balance to be maintained?
A. As declared by the bank, as of now, it is a zero-balance account.
Q. What is the rate of interest?
A. The rate of interest is 7% p.a. on balance up to Rs1 lakh. It's 6% beyond Rs1 lakh; and, possibly, 4% for balance beyond Rs1 crore. So, if you wish to keep more than Rs1 lakh, transfer the funds to create time deposit, i. e. fixed deposit.
Q. Why should I open this account? I can earn as much by creating fixed deposits with my existing bank.
A. Well, you will have to spend time and energy. Moreover, interest on savings account is exempt up to Rs10000 (u/s 80TTA), whereas interest on fixed deposits are fully taxable. There are losses due to premature withdrawal; for the rate of interest would correspond to the actual period of deposit, whereas in case of digibank you earn interest on the daily balance.
Q. How many transactions are free at other bank-ATMs?
A. Unlimited transactions are free.
Q. What is the debit card fee?
A. Rs150+ service tax from 2nd year onward.
Q. What are the fund transfer charges?
A. No charges for fund transfer. Usually, it uses IMPS. So the money is transferred instantly on real time.
Q. What if I need or wish to close the account?
A. You can do so on the app. Beware, there are charges for closure within 6 months of opening the account. So do it after 6 months, as it is a zero balance account.
Q. Is my money secured?
A. Per my understanding none can do banking business in India without appropriate permission from competent statutory bodies or authorities. So, it is as secured or risky as any other scheduled bank in India. Moreover, your deposit is insured up to Rs1 lakh per relevant laws.
Q. How can they give 7%? Isn't it too high?
A. Well, they don't have countless branches or their own ATMs. So, they save a lot on real estate, office space rent, branch overhead, and the gigantic labour overhead.
Q. What if I face an issue?
A. You may chat with the virtual assistant on the app. You may call their toll free customer care number, email them, or tweet them. If you still need to, you may visit the nearest branch. The internet would give you the necessary info.
Q. Can I recharge or pay bills?
A. Yes, you may pay your insurance premium, electricity bill, DTH or mobile bill. You may recharge your prepaid mobile number, DTH connection, etc.
Q. Any other benefit?
A. You may refer friends to open this account, and earn Rs250 per referral. It is a limited period offer.
You may also earn while depositing money into this account!
When you fund this account with your debit card of any other bank, you get reward points which may be redeemed in terms of money. It is because the transaction is considered as an e-commerce transaction; and therefore, you earn reward as per the reward program of your card.
However, per my understanding, it is a loop. It is because anyone can fund this account with any other bank's debit card, and earn reward points. They may transfer back the money into anyone of their other bank account with a debit card facility. They may again transfer the same money into the digisavings account thereby earning reward points again. It may be repeated at least twice a day. Though, perhaps, it is technically possible, it does not seem to be ethical to do so. It is a wonderful feature, if availed in good faith. So, we must not corrupt it, and make it extinct.
Q. Why is it superior, if at all?
A. Well, you may use this account to transfer funds to anyone, anytime. Just fund the account, and transfer the money to anyone instantly?
Q. Can I login at any smartphone?
A. No, you can login only on the phone on which you originally registered the app. If you change your phone, you need to redownload the app, and let it cool down for 24 hours after your first login.
Q. Is the nomination facility available?
A. Available. You can do so on the app per se. You may change it to whenever you need to.
Q. Can I change the mobile number and email address later?
A. You may change the mobile number, but email address cannot be changed.
Q. What if I forget my username or password or both?
A. Open the app, and click on the link 'forgot username' or 'forgot password' as the case may be. You would get OTPs on your mobile and email inbox. Enter the OTPs whenever and wherever required. You would be able to regenerate username and password. Simple!
Q. I lost access to my registered cellphone and email inbox? I do not remember my username either. How to gain access to my bank account again?
A. Send an email to the bank stating the issue. Mention at least your registered mobile number. Attach a soft copy of your Aadhaar card, PAN card. They would close the account, and let you know. You won't be charged the account closure fee, i.e. Rs500. You then need to re-register, and open a new account.
Q. Is there any drawback of an app-based banking?
A. You would not be able to access the banking services during the outages, scheduled maintenance etc. of the app or whenever you have no access to a stable mobile Internet network. Howeve, it cannot be considered as an exclusive drawback. It is because you cannot access even the non-app-based banking services all the time. The banks work only during the business days, and do not work the whole day long. Their websites are also subject to the similar outages and schedule maintenance etc. You also need to have access to a stable network for accessing the banks' website to avail the net banking facility.
Sometimes you may be able to login to your digibank App. However, the auto authentication may fail every time you try to do something, that is some transactions etc. In such a case you need to go to your phone setting and choose the app manager. You need to force stop the digibank app, and clear the data. Thereafter, you need to restart your mobile phone, and you need to try to login to your digibank app with your login credentials, that is your username and password. Please make a good note of your username; for after the above process you will have to manually enter your username again.
Under these conditions, you can always use your debit card to withdraw money.
Q. What is your suggestion?
A. Open the account only if you are comfortable banking online. It is good for people who already use net banking, online shopping, etc. For further detail visit their website or call the customer care number.
Q. Can I believe you to the hilt?
A. No. You should verify all the information from independent and reliable sources before taking any decision.
You may read this blog in Hindi at dbshindicj.blogspot.com.
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