Loyalty Rewards Program-State Bank of India

Loyalty Rewards Program-State Bank of India

State Bank of India has launched a new Loyalty Rewards Program, for its Retail Internet Banking customers.

The complete details of the Program can be accessed @

http://www.sbi.co.in/user.htm

This Program is one more initiative by State Bank of India, to encourage Retail customers to avail the Internet Banking Facilities for their daily needs.

At present the rewards program, is only a few types of Transactions, and not the whole range of internet banking transactions.

State Bank of India, has kick-started this program with reward points for the following Transactions.

The number of points rewarded for each transaction type is as per the following table

Transaction Type	No. of Points Rewarded
RTGS/NEFT	5
Bill Payment/Merchant	6
IRCTC	10
VMT	10
Govt Tax Payments	20

The high-lights of this Program are

01)                      On execution of any Transaction mentioned above, the relevant reward points are credited to the users account.

02)                     Users can redeem the points, once a minimum of 400 points is reached and later in multiples of 100 points.

03)                     The Value of 1 point is .25paise.

04)                     On redemption of the points, the equivalent cash is credited to the retail user’s state bank of India account.

05)                     As of now, this facility is not available for Corporate Users.

My Comments:

A)  This program is a good incentive for State Bank of India Retail Internet Users.

B)   This program will encourage the users to try out new options.

C)   However, I feel State Bank of India, could have made this Loyalty program by

01)                      Awarding more points to RTGS Transaction over the NEFT Transaction. The value of a RTGS transaction is minimum Rs1 lac. Hence, this might make sense.

02)                     Awarding points to other types of transactions viz:

a)    Cheque Book Request

b)   Request for Fixed Deposit.

c)    Request for Cumulative Deposit.

d)   Request for Internal Funds Transfer.

A transaction executed on the Internet banking, means that transaction is avoided at the Branch Level, thereby benefiting the Bank only.