Following the trend of banking majors State Bank of India and ICICI Bank, the third largest private sector lender of the country, Axis Bank has also signed a deal with the Indian Army whereby it would be issuing zero balance salary accounts to army officials.
The major reason behind this move is to increase its share of cheaper CASA deposits. Recently ICICI Bank inked a similar deal with Indian Army.
The deal will now allow army personnel to avail loans without having to pay any processing charges. Along with this, a unique life time account number will be issued to every individual. The number can be used in any bank branch all over the country.
ATM facility will also be offered to customers for cash withdrawal without any transaction fee being charged from him, said the bank.