A PROJECT REPORT ON

"Comparative Study on E-Banking of HDFC &

ICICI"

A PROJECT SUBMITTED TO THE

UNIVERSITY OF MUMBAI

for partial completion of the degree of

Bachelor of Management Studies

Under the faculty of Management

By
Mr. GAJENDRA CHAND

UNDER THE SUPERVISION OF

Ms. SONAL JAIN

ROLL NO. 32.

REENA MEHTA COLLEGE OF ARTS, COMMERCE, SCIENCE &

MANAGEMENT STUDIES.
BHAYANDER (WEST), THANE-401 101

ACADEMIC YEAR 2021-2022

 A PROJECT REPORT ON

"Comparative Study on E-Banking of HDFC &

ICICI"

A PROJECT SUBMITTED TO THE

UNIVERSITY OF MUMBAI

for partial completion of the degree of

Bachelor of Management Studies

Under the faculty of Management

By
Mr. GAJENDRA CHAND

UNDER THE SUPERVISION OF

Ms. SONAL JAIN

ROLL NO. 32.

REENA MEHTA COLLEGE OF ARTS, COMMERCE, SCIENCE &

MANAGEMENT STUDIES.
BHAYANDER (WEST), THANE-401 101

ACADEMIC YEAR 2021-2022

 DECLARATION

I the undersigned Mr. GAJENDRA CHAND here by, declare that the work embodied
in this project work titled “Comparative Study on E-Banking of HDFC & ICICI”
forms my own contribution to the research work carried out under the guidance of Ms.
SONAL JAIN is a result of my own research work and has not been previously
submitted to any other University for any other Degree / Diploma to this or any other
University.
Wherever reference has been made to previous works of others, it has been clearly
indicated as such and included in the bibliography.
I, here by further declare that all information of this document has been obtained and
presented in accordance with academic rules and ethical conduct.

Gajendra Chand
Certified by
Ms. Sonal Jain
(Project Guide)
 CERTIFICATE

This is to certify that Mr. GAJENDRA CHAND has worked and duly completed
his project work for the Degree of Bachelor of Management Studies under the faculty
of Management in the subject of FINANCE and his project is entitled "Comparative
Study on E-Banking of HDFC & ICICI"under my supervision.

I further certify that my entire work has been done by the learner under my guidance
and that no part of it has been submitted previously for any degree or diploma of any
University.

It is his own work and facts reported by his personal findings and investigations.

Principal Coordinator Project guide

Dr. (Mrs.) Satinder Kaur Gujral Ms. Sonal Jain Ms. Sonal Jain

Internal Examiner External Examiner

Date-

Place-
 ACKNOWLEDGEMENT

To list who all have helped me is difficult because they are so numerous and depth is
so enormous.

I would like to acknowledge the following as being idealistic channels and fresh
dimensions in the completion of this project.

I take this opportunity to thank the University of Mumbai for giving me chance to do
this project.

I would like to thank my Principal, Dr. (Mrs.) Satinder Kaur Gujral for providing
the necessary facilities required for completion of this project.

I take this opportunity to thank our Coordinator Ms. Sonal Jain, for her moral support
and guidance.

I would also like to express my sincere gratitude towards my project guide Ms. Sonal
Jain, whose guidance and care made the project successful.

I would like to thank my College Library, for having provided reference books and
magazines related to my project.

Lastly, I would like to thank each and every person who directly and indirectly helped
me in the completion of the project especially my Parents and Peers who supported
me throughout my project.
 INDEX

Chapter No. Topic Page No.

EXECUTIVE SUMMERY
CHAPTER 1 INTRODUCTION 1
1.1 About The Topic 2
1.2 Definition Of E-Banking 3
1.3 History Of E - Banking in India 6
1.4 Services Provided by Internet Banking 7
1.5 Advantages Of Electronic Banking 14
1.6 Disadvantages of Online Banking 16
1.7 What is E-Banking? 17
1.8 Evolution Of E-Banking 20
1.9 Need For E-Banking 20
1.10 Types of E-Banking 22
1.11 Features of Internet banking 22
1.12 How E-Banking Can Ease Your Life 23
1.13 Mobile Banking Use Cases 25
1.14 Dangers of E-Banking 28
1.15 Internet Banking in India 31
1.16 E-Banking World Wide 33
1.17 About HDFC bank 35
1.18 About ICICI Bank 40
1.19 HDFC vs ICICI 44
CHAPTER 2 RESEARCH METHODOLOGY 46
2.1 Objectives of study 47
2.2 Scope of study 47
2.3 Limitation of Study 47
2.4 Nature Of Study 48
2.5 Type Of Research 48
2.6 Research Methods 49
2.7 Types of Data 59
2.8 Sample Methods 50
2.9 Data Collection Methods 50
2.10 Need of Study 50
2.11 Hypothesis 51
CHAPTER 3 LITERATURE REVIEW 53
CHAPTER 4 DATA ANALYSIS, PRESENTATION AND 66
INTERPRETATION
CHAPTER 5 CONCLUSION AND SUGGESTIONS 83
BIBLIOGRAPHY AND ANNEXURE 88
 EXECUTIVE SUMMERY

The underlying aim of the live project is to do a comparative study of the

satisfaction of customer about the E-Banking services provided by HDFC and
ICICI Bank. The primary bank data for the studies were obtained from the
questionnaire and field study and the secondary data were collected from
banks websites and articles published in news papers. E-banking is defined as
the automated delivery of new and traditional banking products and services
directly to customers through electronic, interactive communication channels.

This project gave me a great learning experience and at the same time it gave
enough scope to implement my analytical ability. This report will help to know
about the customer satisfaction and e-banking services and its various aspects.
This project also helps to customer satisfaction about the e-banking services
provided by HDFC and ICICI.

HDFC Bank (NYSE: HDB), one amongst the firsts of the new generation, tech-
savvy commercial banks of India, was incorporated in August 1994, after the
Reserve Bank of India allowed setting up of banks in the private sector. The
Bank was promoted by the Housing Development Finance corporation
Limited, a premier housing finance company (set up in 1977) of India.

ICICI Bank is India's second-largest bank with total assets of Rs. 3,562.28
billion (US$ 7 billion) at December 31, 2009 and profit after tax Rs. 30.19
billion (US$ 648.8 million) for the nine months ended December 31, 2009.
The Bank has a network of 1,723 branches and about 4,883 ATMs in
India and presence in 18 countries.
CHAPTER 1- INTRODUCTION

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1.1 ABOUT THE TOPIC
E-Banking
Internet banking is the term used for new age banking system. Internet banking is also
called a online banking and it is an outgrowth of PC banking. Internet banking uses the
internet as the delivery channel by which to conduct banking activity, for example,
transferring funds, paying bills, viewing checking and savings account balances, paying
mortgages and purchasing financial instruments and certificates of deposits (Haque et
al, 2009). Internet banking is a result of explored possibility to use internet application
in one of the various domains of commerce. It is difficult to infer whether the internet
tool has been applied for convenience of bankers or for the customers’ convenience.
But ultimately it contributes in increasing the efficiency of the banking operation as
well providing more convenience to customers. Without even interacting with the
bankers, customers transact from one corner of the country to another corner. There are
many advantages of online Banking. It is convenient, it isn’t bound by operational
timings, there are no geographical barriers and the services can be offered at a
minuscule cost (IAMAI’s, 2006). Electronic banking has experienced explosive growth
and has transformed traditional practices in banking (Gonzalez et al., 2008). Private
Banks in India were the first to implement internet banking services in the banking
industry. Private Banks, due to late entry into the industry, understood that the
establishing network in remote corners of the country is a very difficult task. It was
clear to them that the only way to stay connected to the customers at any place and at
anytime is through internet applications. They took the internet applications as aweapon
of competitive advantage to corner the great monoliths like State Bank of India, Indian
Bank etc. Private Banks are pioneer in India to explore the versatility of internet
applications indelivering services to customers. As per prediction of Broadie et
al(2007)the e- banking is leading to a paradigm shift in marketing practices resulting in
high performance in the banking industry. Delivery of service in bankingcan be
provided efficiently only when the back ground operations are efficient. An efficient
back ground operation can be conducted only when it is integrated by an electronic
system. Then components like data, hardware, software, network and people are the
essential elements of the system. Banking customers get satisfied with the system when
it provides them maximum convenience and comfort while transacting with the bank.
Internet enabled electronic system facilitate the operation to fetch these result. An in-

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depth analysis would help to understand that internet enabled electronic bank system
differentiates from traditional banking operation through faster delivery of information
from the customer and service provider. Additionally, it has to be noted that the banking
operations does not transfer physical currencies instead it transfer the information about
the value for currencies. I-banks enable transfer of information more swiftly on- line.
(Salawu et.al, 2007). In service organizations like banks, information flows more than
physical items. In the commercial world, especially in most advanced societies today,
money is rather carried in information storage medium such as cheques, credit cards
and electronic means that in its pure cash form. According to christopher et al (2006),
E banking has become an important channel to sell the products and services and is
perceived to be necessity in order to stay profitable in successful. The perception is the
formed as a result of interpreting the experience. There is a growing interest in
understanding the users’ experience (Hiltunen et al.,2002 .); as it is observed as a larger
concept than user satisfaction. From this perspective ,assessing the user experience is
essential for many technology products and services (Wilson & Sasse, 2004) Customers
have started perceiving the services of bank through internet as a prime attractive
feature than any other prime product features of the bank. Customers have started
evaluating the banks based on the convenience and comforts it provides to them.
Bankers have started developing various product features and services using internet
applications.
1.2 DEFINITION OF E-BANKING:-
E-banking is defined as the automated delivery of new and traditional banking products
and services directly to customers through electronic, interactive communication
channels. E-banking includes the systems that enable financial institution customers,
individuals or businesses, to access accounts, transact business, or obtain information
on financial products and services through a public or private network, including the
Internet.
Customers access e-banking services using an intelligent electronic device, such as a
personal computer (PC), personal digital assistant (PDA), automated teller machine
(ATM), or Touch Tone telephone. While the risks and controls are similar for the
various e-banking access channels, this booklet focuses specifically on Internet-based
services due to the Internet's widely accessible public network. Accordingly, this booklet
begins with a discussion of the two primary types of Internet websites: informational and
transactional.

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E Banking is your personal banking service on the Internet, protected with bank identifiers.
It is available anywhere, anytime. E Banking allows you to pay invoices to Finnish and
foreign recipients easily and securely. You can also check your account balances and
transactions. You can order a new card, withdraw a loan granted to you and make mutual
fund subscriptions .You access E Banking services by obtaining bank identifiers. E
Banking as such is free of charge but commissions and fees in accordance with the service
tariff will be levied on orders and other transactions carried out through e Banking. E
Banking allows you to pay invoices to finish and foreign recipients easily and securely.
You can also check your account balances and transactions.
You can order a new card, withdraw a loan granted to you and make mutual fund
subscriptions. You access E-Banking services by obtaining bank identifiers. E- Banking as
such is free of charge but commissions and fees in accordance with the service tariff will
be levied on orders and other transactions carried out through E-Banking.
The last decade has witnessed a drastic change in the economic and banking environment
all over the world. With the economic and financial sector reforms introduced in the country
since early 1990s, the operating environment for banks in India also undergone a rapid
change. The process of deregulation and reforms in the Indian banking system resulted in
the creation of an efficient and competitive banking system. Deregulation has opened up
new vistas for banks to extend their revenues by diversifying into universal banking,
investment banking, bank assurance, mortgage financing, depository services,
securitization, personal banking etc. At the same time, liberalization has opened the turf to
new players and brought greater competition among banks. To survive the competition, the
information & communication technology significantly contributed to the growth and
profit of financial institutions worldwide. Technology is the key to move towards providing
integrated banking services to customers. Indian banks are late starter in the adoption of
technology for automation of processes and the integrated banking services. But with the
global adoption of technology, Indian banking is also at the threshold of paradigm shift due
to the latest changes. There are various factors which have played important role in the
Indian banking sector for adoption of technology. Firstly, the economic reforms introduced
by the government almost fifteen years back which resulted in opening up of new vistas for
banks outside the country. E-banking is defined as the automated delivery of new and
traditional banking products and services directly to the customers through multiple
electronic means ADCs like ATM, IB, MB, etc.
E-banking was firstly introduced in India by the ICICI around 1996. E-banking includes
the systems that enable financial institutions, customers and individuals or businesses to

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access accounts, transact business or obtain information of financial products and services
through a public or private network, including the Internet. The E-banking revolution
provides new opportunities like Payment and Settlement Systems.
E-banking creates ‘huge world of customer convenience’ With continuing technology
evolution and changing demographic preferences banks all over the world keep finding
new channels to put their money on . E-banking improves the internal working of a bank
and ensures customer satisfaction. It facilitates market penetration and growth in customer
base without any geographical constraints or time-based limitations. Customers are
influenced to use electronic channels to conduct their banking transactions due to the
benefits gained from E-banking services. They are tremendous reduction in transaction
costs, world over delivery of banking services, real-time information, real-time transaction,
absence of geographical and time constraints, better employee-customer social
relationship, publicity of innovative and globally accepted products/services, confidence of
customers in the low-cost and cost-effective e-channels, conversion of banks from
traditional (‘brick and mortar’) to e-banks(‘click and portal’), better quality service,
increased speed, increased efficiency, touch-screen technology, convenient and cheaper
electronic channels, easy, fast, efficient and secured financial services at reasonable costs,
single window servicing, convenience for customers at their options to transact from
anywhere, at anytime and using any delivery channel that are suitable for them, minimizing
personal visit to the branch premises and more suitability for changing demographic
preferences, etc. Thus, customers are embracing all the above benefits of E-banking. E-
banking enables banks to provide good, superior, very high quality customer service as
well as to offer a broad range of products and/or services to customers. It maximizes
returns, acquires more customers and builds the customer product ratio, extends their reach
and increases their contact with multi platform consumers and ensures one’s privacy and
trust. These features enhance customer satisfaction. When the customers adopt E-banking
they have increased expectations about service and support to enable them to banking on-
line. Thus, E-banking services have become the virtual main street of the world. The
Internet has created a new economic ecosystem. On October 18, 1995 Security First
Network Bank opened to the public as world’s first Internet bank. ICICI bank introduced
IB first in India. Advent and adoption of Internet by the industries have removed the
constraints of time, distance and communication making globe truly a small village.
Financial sector is no exception. Numerous factors such as competitive cost, customer
service, increase in education and income level of customers, cheapness, convenience
speed, security, accessibility at anytime and at anywhere in the world, etc. influence banks

5
to evaluate their technology and assess their electronic commerce and IB strategies. IB is a
powerful technological innovation which has the power to increase not only customer
satisfaction but also the bank’s profitability. It holds the potential to drive the future of
banking. It provides various types of new innovative products and /or services to customers
like account enquiry, fund transfer, payment of utility bills, etc. It increases operational
efficiencies and reduces costs. Online banking plays a very important role in capital market
transactions too.
The various payment and settlement systems through IB in Indian banking system are
MICR, Electronic Clearing Service (ECS), EFT, Centralised Funds Message Service
(CFMS), National Deferred System (NDS), INFINET, RTGS, etc. Out of various ADCs,
the IB is emerging as a most cost effective and convenient and a delightful channel to the
banks as well as customers due to its inherent advantages. Electronic banking, also known
as electronic funds transfer (EFT), is simply the use of electronic means to transfer funds
directly from one account to another, rather than by cheque or cash. You can use electronic
funds transfer to. Directly deposit your pay check into your bank or credit union bank
account. Withdraw cash from your bank account from an ATM machine with a personal
identification number (PIN), at your convenience. Instruct your bank or credit union to
mechanically pay few monthly bills from your account, such as your auto loan or your
mortgage payment. Have the bank or credit union transfer funds monthly from your bank
account to your mutual fund account. Have your government social security benefits check
or your tax refund deposited directly into your bank account. Buy groceries, gasoline and
other purchases at the point-of-sale, using a check card rather than cash, credit or a personal
check. Use a smart card with a prepaid amount of money embedded in it to be used rather
than cash at a pay phone, expressway road toll, or on college campuses at the library’s
photocopy machine or bookstores. Use your pc and private finance software to coordinate
your total personal monetary management process, integrating data and activities related to
your income, spending, saving, investing, recordkeeping, bill-paying and taxes, alongside
basic monetary analysis and decision making.

1.3 HISTORY OF E - BANKING IN INDIA

In India, since 1997, when the ICICI Bank first offered internet banking services, today,
most new-generation banks offer the same to their customers. In fact, all major banks
provide e-banking services to their customer. India is still in the early stages of E-banking
growth and development. Competition and changes in technology and lifestyle in the last
five years have changed the face of banking. The changes that have taken place impose on

6
banks tough standards of competition and compliance. The issue here is – ‘Where does
India stand in the scheme of E-banking.’ E-banking is likely to bring a host of opportunities
as well as unprecedented risks to the fundamental nature of banking in India.
The impact of E- Banking in India is not yet apparent. Many global research companies
believe that E-banking adoption in India in the near future would be slow compared to other
major Asian countries. Indian E-banking is still nascent, although it is fast becoming a
strategic necessity for most commercial banks, as competition increases from private banks
and non banking financial institutions. Despite the global economic challenges facing the
IT software and services sector, the outlook for the Indian industry remains optimistic.
The Reserve Bank of India has also set up a “Working Group on E-banking to examine
different aspects of E-banking. The group focused on three major areas of E-banking i.e.
(1) Technology and Security issues (2) Legal issues and (3) Regulatory and Supervisory
issues. RBI has accepted the guidelines of the group and they provide a good insight into
the security requirements of E-banking.
The importance of the impact of technology and information security cannot be doubted.
Technological developments have been one of the key drivers of the global economy and
represent an instrument that if exploited well can boost the efficiency and competitivity of
the banking sector. However, the rapid growth of the Internet has introduced a completely
new level of security related problems. The problem here is that since the Internet is not a
regulated technology and it is readily accessible to millions of people, there will always be
people who want to use it to make illicit gains. The security issue can be addressed at three
levels. The first is the security of customer information as it is sent from the customer’s PC
to the Web server. The second is the security of the environment in which the Internet
banking server and customer information database reside. Third, security measures must
be in place to prevent unauthorized users from attempting to long into the online banking
section of the website.

1.4SERVICES PROVIDED BY INTERNET BANKING

RETAIL BANKING:
The Retail banking application is an integration of several functional
areas, and enables customers to:
• Issue Demand Drafts online
• Transfer funds to own and third party accounts

7
 • Credit beneficiary accounts using the VISA Money Transfer, RTGS/NEFT
feature
• Generate account statements
• Setup Standing Instructions
• Configure profile settings
• Use e-Tax for online tax payment
• Use e-Pay for automatic bill payments
• Interface with merchants for railway and airline reservations
• Avail DEMAT and IPO services

CORPORATE BANKING:
The Online SBI corporate banking application provides features to administer and
manage corporate accounts online. The corporate module provides roles such as
Regulator, Admin, Up loader, Transaction Maker, Authorizer, and Auditor. These roles
have access to the following functions:
• Manage users, define rights and transaction rules on corporate accounts
• Access accounts in several branches with a single sign-on mechanism
• Upload files to make bulk transactions to third parties, supplier, vendor and tax
collection authorities.
• Use online transactional features such as fund transfer to own accounts, third
party payments, and draft issues
• Make bill payments over the Internet.
• Authorize, modify, reschedule and cancel transactions, based on rights assigned
to the user
• Generate account statement
• Enquire on transaction details or current balance

VALUE ADDED SERVICES :

Tax payments to central and state governments through site to site integration.
Supply Chain Finance ( e-VFS- Electronic Vendor Finance Scheme)
Direct Debit Facility
• E Collection Facilities for:
• Core Banking Transactions

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 • Internet Bank transactions for incoming RTGS/NEFT Transactions
• Internet banking transactions for SBI and associate banks
• Debit facility where suppliers can directly debit their customer s account
through internet banking

PRODUCTS & SERVICES:

• E-Payment
• Bill payment
• E-Ticketing
• SBI E-Tax
• Fund Transfer
• Third Party Transfer
• Demand Draft
• Cheque Book Request
• Account Opening Request
• Account Statement
• Transaction Enquiry
• Demat Account Statement
• Donation

E-TICKETING:
You can book your railway, air and bus tickets online through Online SBI. To book
your train ticket, just log on to irctc.co.in and create an ID there at if you do not have
one. Submit your travel plan and book the ticket(s)-either i-ticket (where the delivery
of tickets will be made at your address) or E-tickets (wherein after successful payment
transactions, an e-ticket is generated which can be printed any time. For an e-ticket, the
details of photo identity card will required to be filled in) and select State Bank of India
in the payment options. You will be redirected to Internet Banking site of SBI
(www.onlinesbi.com). After submitting the respective ID and password, you can select
your account. After a successful debit, Railways will generate the ticket. E-ticket can
be printed by you whereas the i-ticket will be dispatched by IRCTC at the given address.
Service charges @ Rs.10/- per transaction shall be levied in addition to the cost of the

9
ticket. Cancellation of E-ticket can be done by logging on to IRCTC's site; refund
amount will be credited to your account directly within 2-3 days. For cancellation of i-
ticket, you shall be required to submit your ticket at a computerized counter of Railways
and on cancellation; the amount shall be credited back to your account. You can also
book your Air ticket through the e-ticketing feature. Logon to Indian Airlines website
to make a payment for an e-ticket through State Bank of India, you need to select SBI
as the payment option. The payment request will be redirected to Internet Banking site.
The request may be processed based on values sent from the airlines website. Once a
transaction is processed, an appropriate response will be sent to airlines site to update
the status of the transaction. You can print the E-ticket immediately .To book bus tickets
to destinations in Karnataka, log on to the KSRTC website. Provide details about the
start and end points of your journey, date of journey and number of tickets. Verify
availability of seats on the selected date and confirm the transaction. Select „Online
SBI to ‟make the payment. Provide your credentials and select the SBI account that
will be debited for the payment. You are provided a KSRTC reference number for your
e-Ticket.

BILL PAYMENT
A simple and convenient service for viewing and paying your bills online. No more late
payments No more queues No more hassles of depositing cheques .Using the bill
payment you can view and pay various bills online, directly from your SBI account.
You can pay telephone, electricity, insurance, credit cards and other bills from the
comfort of your house or office, 24 hours a day, 365 days a year. Simply logon to
http://www.onlinesbi.com/ with your credentials and register the biller to which you
want to pay, with all the bill details. Once the bill is uploaded by the biller, you can
make payment online.You can see 'how do i' to learn the steps for using the facility.You
can also set up Auto Pay instructions with an upper limit to ensure that your bills are
paid automatically whenever they are due. The upper limit ensures that only bills within
the specified limit are paid automatically, thereby providing you complete control over
these payments. The e-PAY service is available in various cities across the country and
you can now make payments to several billers in your region.

RTGS/NEFT

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You can transfer money from your State Bank account to accounts in other banks using
the RTGS/NEFT service. The RTGS system facilitates transfer of funds from accounts
in one bank to another on a "real time" and on "gross settlement" basis. This system is
the fastest possible interbank money transfer facility available through secure banking
channels in India. RTGS transaction requests will be sent to RBI immediately during
working hours post working hours requests are registered and sent to RBI on next
working day. You can also schedule a transaction for a future date. You can transfer an
amount of Rs.1 lac and above using RTGS system.National Electronic Funds Transfer
(NEFT) facilitates transfer of funds to the credit account with the other participating
bank. RBI acts as the service provider and transfers the credit to the other bank's
account.

E-PAYMENT
You can pay your insurance premium, mobile phone bills and also you can purchase
mutual fund units by coming from the biller s website and selecting state bank of India
in the payment ‟option. LIC PREMIUM: For paying premium of LIC policy logon to
www.licindia.com and register your policy details. When the premium is due select
State Bank of India in the make payment option. SBI Mutual FUND: You can invest in
the SBI Mutual Fund schemes online. Logon to www.sbimf.com and select the scheme
in which you want to make investment in the payment option select State Bank of
India.CC Avenue: Enjoy shopping at the CC Avenue Shopping Mall and purchase from
a wide variety of products and services through CC Avenue Certified Vendors. Make
payments for your purchases using your Internet enabled SBI accounts.

FUND TRANSFER
The Funds Transfer facility enables you to transfer funds within your accounts in the
same branch or other branches. You can transfer aggregating Rs.1 lakh per day to own
accounts in the same branch and other branches. To make a funds transfer, you should
be an active Internet Banking user with transaction rights. Funds transfer to PPF
account is restricted to the same branch. Just log on to retail section of the Internet
Banking site with your credentials and select the Funds Transfer link under
Payments/Transfers tab. You can see all your online debit and credit accounts. Select
the debit account from which you wish to transfer funds and the credit account into

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which the amount is to be credited. Enter the amount and remarks. The remarks will be
displayed in your accounts statement for this transaction. You will be displayed the last
five funds transfer operations on your accounts. On confirming the transaction, you will
be displayed a confirmation page with the details of the transaction and the option to
submit or cancel the funds transfer request. A reference number will be generated for
your record.

THIRD PARTY TRANSFER

You can transfer funds to your trusted third parties by adding them as third party
accounts. The beneficiary account should be any branch SBI. Transfer is instant. You
can do any number of transactions in a day for amount aggregating Rs.1lakh.
To transfer funds to third party having account in SBI, you need to add and approve a
third party ,you need to register your mobile number in personal details link under
profile section. You will receive a One Time SMS password on your mobile phone to
approve a third party. If you do not have a mobile number, third party approval will be
handled by your branch. Only after approval of third party, you will be able to transfer
funds to the third party. You can set limits for third party transactions made from your
accounts or even set limits for individual third parties.

DEMAND DRAFT
The Internet Banking application enables you to register demand drafts requests online.
You can get a demand draft from any of your Accounts (Savings Bank, Current
Account, Cash Credit or Overdraft). You can set limits for demand drafts issued from
your accounts or use the bank specified limit for demand drafts. You can opt to collect
the draft in person at your branch, quoting a reference to the transaction. A printed
advice can also be obtained from the site for your record. Alternatively, you may
request the branch to courier it to your registered address, and the courier charges will
be recovered from you.

CHEQUE BOOK REQUEST

You can request for a cheque book online. Cheque book can be requested for any of
your Savings, Current, Cash Credit, and Over Draft accounts. You can opt for cheque
books with 25, 50 or 100 cheque leaves. You can either collect it from branch or request

12
your branch to send it by post or courier. You can opt to get the cheque book delivered
at your registered address or you can provide an alternate address. Cheque books will
be dispatched within 3 working days from the date of request. Just log on to retail
section of the Internet Banking site with your credentials and select the Cheque Book
link under Requests tab. You can view all your transaction accounts. Select the account
for which you require a cheque book; enter the number of cheque leaves required and
the mode of delivery. Then, submit the same.

ACCOUNT OPENING REQUEST

It enables you to open a new account online. You can apply for a new account only in
branches where you already have accounts. You should have an INB-enabled account
with transaction right in the branch. Funds in an existing account are used to open the
new account. You can open Savings, Current, Term Deposit and Recurring Deposit
accounts of Residents, NRO and NRE types. Just log on to retail section of the Internet
Banking site with your credentials and select the New
Account link under Requests tab. You can see all types of accounts. Select the account
and account type you wish to open and submit the same. Then, you need to select the
branch and enter the initial amount to open the account. You can select any of your
accounts for debiting the initial amount. Then, submit the transaction. Your new
account opening request will be processed by the branch.

ACCOUNT STATEMENT
The Internet Banking application can generate an online, downloadable account
statement for any of your accounts for any date range and for any account mapped to
your username. The statement includes the transaction details, opening, closing and
accumulated balance in the account. You can generate the online account statement for
any date range or for any month and year. The account statement can be viewed online,
printed or downloaded as an Excel or PDF file. You also have the option to select the
number of records displayed in each page of the statement. The options are 25, 50, 75,
100 and ALL.
TRANSACTION ENQUIRY
It provides features to enquire status of online transactions. You can view and verify
transaction details and the current status of transactions. Your VISA transactions can

13
also be viewed separately. Just log on to retail section of the Internet Banking site with
your credentials and select the Status Enquiry link under the Enquiries tab. You will be
displayed all online transactions you have performed. To view details of individual
transactions, you need to click the Transaction Reference number link. You are
displayed the debit and credit account details, transaction amount, narration and
transaction status.

DEMAT ACCOUNT STATEMENT

This enables you to view Demat account statement and maintain such accounts. The
bank acts as your depository participant. In the third party site, you can mark a lien on
your Demat accounts and use the funds to trade on stock using funds in your SBI
savings account. You can view Demat account details, and generate the following
statements: statement of holding, statement of transactions, statement of billing.

DONATION
You can make donation to religious and charitable institution by using Internet Banking
of SBI. After selecting the debit account select the religious/charitable institution that
you want to offer donation. After successful payment you can print an E-receipt for the
donation made.

1.5 ADVANTAGES OF ELECTRONIC BANKING :-

Now it is also called on line or home banking electronic banking was stared with the
use of proprietary software. Following are the important advantages of electronic
banking:

1. Paper Work Reduced :- The traditional procedure of banking is manual and paper
based. Electronic banking is gradually replacing the paper transactions in the banks
which has reduced the paper work.

2. Easy Transactions :- Electronic banking has reduced the problems of the customers
like writing cheques, filing taxes, and transforming of cash. Now in ATM facility there
is no need of cheque book.

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3. Security :- Electronic banking provides the safe system of payment. Now
transactions are made in the accounts through internet.

4. Saving Of Time :- Electronic banking has saved the time and money of the
customers and also the bank. Now burden of work on bank employees has been also
reduced were hired at higher wages, so operating cost was very high. Now by using
electronic banking the number of employees has been reduced.

5. Reduction In Cost :- In case of manual banking, large number of employees were

hired at higher wages, so operating cost was very high. Now by using electronic
banking the number of employees has been reduced.

6. Market Expanded :- Due to electronic banking, national international market of

various goods and services has been expanded. Now we can purchases and make
payment in any place in the world.

7. Increase In Customers :- As the banking industry is expanding due the modern

facilities, it is attracting more and more customers. So number of customers are
increasing day by day.

8. Branches Reduced :- Now there is no need to open the branches on every place in
the city because due to electronic banking facilities, there is no rush of customers in the
banks. Because there is no need to visit the bank physically. So heavy cost of opening
the new branches has been reduced and facilities are provided at low cost.

9. Checking Of Account :- Every customer can check his balance of account sitting at
home and makes the payments without travelling. It saves his time and expenses.

10. Utility Bills Payment :- Bills, like telephone, gas, electricity and water can be
easily paid to the concerned departments without going to the bank physically. Even he
is sitting in any other country, he can make the payment.

11. Transferring Of Money :- There is no need of writing the deposit slip cheques and
drafts. By using the electronic banking money can be transferred easily.

12. Credit Cards :- It is also very important facility for the customers that he can
purchase the goods and ca make the payment by using the credit cards.

15
1.6 DISADVANTAGES OF ONLINE BANKING
No one type of bank can be the best at everything. In spite of their many advantages,
there are some drawbacks to using online banks as well. Here are some of the downsides
of working with an online bank:
1. Technology issues

2. Security issues

3. Inefficient at complex transactions

4. No relationship with personal banker

5. Inconvenient to make deposits

1.Technology Issues
In many ways, an online bank is only as good as your or their internet connection. If
there’s a power outage, or if servers go down, you might not have any access to your
account whatsoever. While some banks offer a phone number for customer service, it
might be overwhelmed if online access is down. With a real bank, you can always
find someone to talk to in the branch.

2. Security Issues
While many online banks are reputable and well-established, sometimes it can be hard
to feel comfortable with a bank that doesn’t have a physical presence, particularly
when large sums of money are involved. If a website suddenly folds up, what will
happen to your money? There’s also the risk of identity theft or actual theft if
someone gains unauthorized access to your account via a hacked or stolen password
or log-in credentials.

3. Inefficient at Complex Transactions

Online banks might be able to transfer money between accounts or pay bills, but you
might be more comfortable with an international, bricks-and-mortar bank if you have
complex transactions. Worldwide, business-oriented banks like Chase have global
transaction capabilities, such as the ability to send payments to more than 35 different
currencies worldwide, that online banks might not be able to muster. Without a real-

16
world presence, most online banks can’t even offer the services of a notary public,
which require an in-person visit and necessary for most important financial
transactions like buying a home.

4. No Relationship With Personal Banker

Over time, you can develop a relationship with a personal banker if you visit a
traditional bricks-and-mortar location. If you’re dealing with an online bank, on the
other hand, you’re typically handed off to an anonymous customer service agent who
is unlikely to know you from the next customer. If you’re really in a bind, financially
speaking, having a relationship with someone who can help and who knows you well
can be a major advantage over a strictly online banking relationship.

5. Inconvenient to Make Deposits

It might seem counterintuitive that a bank, whose purpose is to attract assets, makes it
hard for customers to make deposits, but that can be true in the case of some online
banks. With an online bank, you can’t simply drop off cash or a check at a local branch.
In fact, some online banks, like Ally Bank, won’t accept cash deposits at all. Using Ally
Bank as an example, to make a deposit you’ll have to mail a check, transfer money
from another bank or another account, or use the bank’s e-check deposit service.

1.7 WHAT IS E-BANKING?

E-banking is defined as the automated delivery of new and traditional banking products
and services directly to customers through electronic, interactive communication
channels. E-banking includes the systems that enable financial institution customers,
individuals or businesses, to access accounts, transact business, or obtain information
on financial products and services through a public or private network, including the
Internet. Customers access e-banking services using an intelligent electronic device,
such as a personal computer (PC), personal digital assistant (PDA), automated teller
machine (ATM), kiosk, or Touch Tone telephone. While the risks and controls are
similar for the various e-banking access channels, this booklet focuses specifically on
Internet-based services due to the Internet’s widely accessible public network.
Accordingly, this booklet begins with a discussion of the two primary types of Internet
websites: informational and transactional

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Traditional banks offer many services to their customers, including accepting customer
money deposits, providing various banking services to customers, and making loans to
individuals and companies. Compared with traditional channels of offering banking
services through physical branches, e-banking uses the Internet to deliver traditional
banking services to their customers, such as opening accounts, transferring funds, and
electronic bill payment.

E-banking can be offered in two main ways. First, an existing bank with physical offices
can also establish an online site and offer e-banking services to its customers in addition
to the regular channel. For example, Citibank is a leader in e-banking, offering walk-
in, face-to-face banking at its branches throughout many parts of the world as well as
e-banking services through the World Wide Web. Citibank customers can access their
bank accounts through the Internet, and in addition to the core e-banking services such
as account balance inquiry, funds transfer, and electronic bill payment, Citibank also
provides premium services including financial calculators, online stock quotes,
brokerage services, and insurance.

E-banking from banks like Citibank complements those banks' physical presence.
Generally, e-banking is provided without extra cost to customers. Customers are
attracted by the convenience of e-banking through the Internet, and in turn, banks can
operate more efficiently when customers perform transactions by themselves rather
than going to a branch and dealing with a branch representative.

E-banking services are delivered to customers through the Internet and the web using
Hypertext Markup Language (HTML). In order to use e-banking services, customers
need Internet access and web browser software. Multimedia information in HTML
format from online banks can be displayed in web browsers. The heart of the e-banking
application is the computer system, which includes web servers, database management
systems, and web application programs that can generate dynamic HTML pages.

One of the main concerns of e-banking is security. Without great confidence in security,
customers are unwilling to use a public network, such as the Internet, to view their
financial information online and conduct financial transactions. Some of the security
threats include invasion of individuals' privacy and theft of confidential information.
Banks with e-banking service offer several methods to ensure a high level of security:

18
(1) identification and authentication, (2) encryption, and (3) firewalls. First, the
identification of an online bank takes the form of a known Uniform Resource Locator
(URL) or Internet address, while a customer is generally identified by his or her login
ID and password to ensure only authenticated customers can access their accounts.
Second, messages between customers and online banks are all encrypted so that a
hacker cannot view the message even if the message is intercepted over the Internet.
The particular encryption standard adopted by most browsers is called Secure Socket
Layer (SSL). It is built in the web browser program and users do not have to take any
extra steps to set up the program. Third, banks have built firewalls, which are software
or hardware barriers between the corporate network and the external Internet, to protect
the servers and bank databases from outside intruders. For example, Wells Fargo Bank
connected to the Internet only after it had installed a firewall and made sure the firewall
was sufficiently impenetrable.

1.8 EVOLUTION OF E-BANKING

The story of technology in banking started with the use of punched card machines like
Accounting Machines or Ledger Posting Machines. The use of technology, at that time,
was limited to keeping books of the bank. It further developed with the birth of online
real time system and vast improvement in telecommunications during late 1970’s and
1980’s.it resulted in a revolution in the field of banking with “convenience banking” as
a buzzword. Through Convenience banking, the bank is carried to the doorstep of the
customer.

19
The 1990’s saw the birth of distributed computing technologies and Relational Data
Base Management System. The banking industry was simply waiting for these
technologies. Now with distribution technologies, one could configure dedicated
machines called front-end machines for customer service and risk control while
communication in the batch mode without hampering the response time on the frontend
machine. Intense competition has forced banks to rethink the way they operated their
business.
They had to reinvent and improve their products and services to make them more
beneficial and cost effective. Technology in the form of E-banking has made it
possible to find alternate banking practices at lower costs. More and more people are
using electronic banking products and services because large section of the banks future
customer base will be made up of computer literate customer, the banks must be able
to offer these customer products and services that allow them to do their banking by
electronic means. If they fail to do this will, simply, not survive. New products and
services are emerging that are set to change the way we look at money and the monetary
system.

1.9 NEED FOR E-BANKING

One has to approach the branch in person, to withdraw cash or deposit a cheque or
request a statement of accounts. In true Internet banking, any inquiry or transaction is
processed online without any reference to the branch (anywhere banking) at any time.
Providing Internet bankings increasingly becoming a "need to have" than a "nice to
have" service. The net banking, thus, now is more of a norm rather than an exception
in many developed countries due to the fact that it is the cheapest way of providing
banking services. Banks have traditionally been in the refront of harnessing technology
to improve their products, services and efficiency. They have, over a long time, been
using

Bank Information technology Customer

electronic and telecommunication networks for delivering a wide range of value added
products and services. The delivery channels include direct dial – up connections,
private networks, public networks etc and the devices include telephone, Personal

20
Computers including the Automated Teller Machines, etc. With the popularity of PCs,
easy access to Internet and World Wide Web (WWW), Internet is increasingly used by
banks as a channel for receiving instructions and delivering their products and services
to their customers. This form of banking is generally referred to as Internet Banking,
although the range of products and services offered by different banks vary widely both
in their content and sophistication.

DIAGRAM OF E-BANKING SYSTEM

1.10 TYPES OF E-BANKING

The common assumption is that Internet banking is the only method of on-line banking.
However, this is not strictly the case, as several types of service are currently available:

• PC Banking - The forerunner to Internet banking has been around since the late
1980's and is still widely used today. Individual banks provide software which
is loaded on to an SME's office computer. The SME can then access their bank
21
 account via a modem and telephone link to the bank. Access is not necessarily
via the Internet.
• Internet Banking - Using a Web browser, a user can access their account, once
the bank's application server has validated the user's identity.
• TV Banking- Using the standard digital reception equipment (set top box and
remote control), users can access their bank account. Abbey National and HSBC
services are available via Digital TV providers. One of its main selling points is
that no account details are transmitted via the World Wide Web;
• Text Phone Banking - HSBC have introduced this service to allow customers
with text phones to check their balance, pay bills and transfer money.

Internet banking can be split into two distinct groups:

• Traditional banks and building societies use the Internet as an add-on service
with which to give businesses access to their accounts.
• New Internet-only banks have no bricks and mortar presence on the High Street.
Therefore, they have lower overheads and can offer higher rates of interest and
lower charges.

1.11 FEATURES OF INTERNET BANKING

The features available from an on-line bank account are similar to those which
are available via 'phone banking or visiting the local branch. On-line banking
features do differ between the banks, but usually include:

➢ Transfer of funds between accounts;

➢ It brings efficiency in CRM(Customer relationship management)
➢ Make Payment of bills
➢ Introduces new & innovative products &services
➢ View balance and statements;
➢ Brings door to door services
➢ Create, view and maintain Standing Orders
➢ Have evolutionary trend at a globle scenario.

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1.12 HOW E-BANKING CAN EASE YOUR LIFE

Indian banks are trying to make your life easier. Not just bill payment, you can make
investments, shop or buy tickets and plan a holiday at your fingertips. In fact, source s
from ICICI Bank tell us, "Our Internet banking base has been growing a t an
exponential pace over the last few years. Currently around 78 percent of the
bank's customer base is registered for Internet banking." To get started, all you
need is a computer with a modem or other dial-up device, a checking account with a
bank that offers online service and the patience to complete about a one-page
application-- which can usually be done online. You can a vail the following services.

1. Bill payment service: Each bank has tie-ups with various utility companies,
service providers and insurance companies, across the country. It facilitates the
payment of electricity and telephone bills, mobile phone, credit card and insurance
premium bills. To pay bills, a simple one-time registration for each biller is to
be completed. Standing instructions can be set, online to pay recurring bills,
automatically. One-time standing instruction will ensure that bill payments do not

get delayed due to lack of time. Most interestingly, the bank does not charge
customers for online bill payment.

2. Fund transfer: Any amount can be transferred from one account to another of the
same or any another bank. Customers can send money anywhere in India.
Payee’s ac count number, his bank and the branch is needed to be mentioned after
logging in the account. The transfer will take place in a day or so, whereas in
a traditional method, it takes a bout three working days. ICICI Bank says that online
bill payment service and fund transfer facility have been their most popular online
services.

3. Credit card customers : Credit card users have a lot in store. With Internet
banking, customers can not only pay their credit card bills online but also get a
loan on the ir cards. Not just this, they can also apply for an additional card, request a
credit line increase and God forbid if you lose your credit card, you can report
lost card online.

23
4. Railway pass: This is something that would interest all the aamjanta. Indian
Railways has tie d up with ICICI bank and you can now make your railway pass
for local trains online. The pass will be delivered to you at your doorstep. But the
facility is limited to Mumba i, Thane, Nasik, Surat and Pune. The bank would just
charge Rs 10 + 12.24 percent of service tax.

5. Investing through Internet banking: Opening a fixed deposit account cannot get
easier than this. An FD can be opened online through funds transfer. Online banking
ca n also be a great friend for lazy investors. Now investors with interlinked
demat account and bank account can easily trade in the stock ma rket and the amount
will be automatically debited from their respective bank accounts and the shares
will be credited in their demat account.

Moreover, some banks even give the facility to purchase mutual funds directly
from the online banking system. So it removes the worry a bout filling those big
forms for mutual funds, they will now be just a few c licks away. Nowadays, most
leading banks offer both online banking and demat account. However if the
customer have there demat account with independent share brokers, then need to
sign a special form, which will link your two accounts.

6. Recharging your prepaid phone : Now there is no need to rush to the vendor
to recharge the prepaid phone, every time the talk time runs out. Just top-up the pre
paid mobile cards by logging in to Internet banking. By just selecting the operator's
name, entering the mobile number and the amount for re charge , the phone is
again back in action within few minutes.

7. Shopping at your fingertips : Leading banks have tie ups with various shopping
websites. With a range of all kind of products, one can shop online and the payment is
also made conveniently through the account. One can also buy railway and air tickets
through Internet banking.

1.13 MOBILE BANKING USE CASES

A mobile user has to be seen from his context when using the application. Needs and
expectations are not generic, but bound to this context.

24
As a typical mobile banking user, we consider someone who already is an electronic
banking user shows significant affinity to technology and often finds himself in
situations where he can not (or does not want to) rely an infrastructure necessary for
electronic banking.

In the following, we introduce four use cases. These have been developed in the
course of two group discussions; each group consisted of mobile banking users and
mobile commerce experts. The groups focused on identifying real-life situations in
which the use of mobile banking provides an informational added value. The resulting
situations have been aggregated to the use cases The use cases are not exhaustive, but
representative: Each case stands for a series of cases, which are similar in the depth of
the desired information and/or the conditions of the usage. For each use case we identify
the most important, concrete need that the user has in this particular situation.

Use case 1: Request of account balance.

The user is in a mobile situation (e.g. in a department store) and intends to know his
account balance, e.g. to verify his account before realizing a spontaneous purchase.
Resulting need: Quick obtainment of account balance.

Use case 2: Control of account movements.

The user is waiting for an important cash receipt on his account. He intends to have the
exact details of the cash receipt. Resulting need: Continuous control over movements
on the account.

Use case 3: Instant payment.

The user is in a mobile situation and intends to make a payment by bank transfer from
his account. Resulting need: Instant execution of a bank transfer.

Use case 4: Administration of the account.

The user intends to use spare time (e.g. using a train or waiting on the airport) to
administrate his account. Resulting need: Quick and easy-to-use execution of
transactions and administration is possible.

25
 Business models and new ways to interact with customers. The ability to
perform banking transactions online has created new players in the financial industry,
such as online banks and brokers who offer personalized services through their Web
portals. This increased competition is driving traditional financial institutions to find
new ways to add the value to their products and services, gain competitive advantage
and increase customer loyalty while also attracting new, high-value clients.

Mobile and wireless technology, combined with the wide variety of portable
devices available today, enables new revenue opportunities for financial services
organizations. This provides a new channel that can be used to refresh and expand the
customer base, attract prime customers and enhance loyalty. With mobile and wireless
technology, banks can offer a wide possibilities of services to their customers, from the
freedom of paying bills while stuck in traffic, to receiving notification of a change in
stock price while having lunch, the convenience and time saving benefits of wireless
financial services are huge. The challenge, then, is how to turn these possibilities into
a reality for the customers.

Benefits Description

Developing wireless applications and services

Grow new targeted at the mobile mass market will allow
customer base attracting new, high-value customers into mobile
and markets banking portal and expanding the reach to
global markets.

The convenience of having personalized

wireless access to critical financial information

Increase share is an invaluable service for customers on the

of customer move. Enabling the execution of time-sensitive

wallet financial transactions anywhere, anytime,

provides the opportunity to strengthen the
relationships with existing customers. This
ultimately results in an increased share of the

26
 customers' transactions--preventing them from
taking a portion of their financial business
elsewhere.

Granting customers flexible access to financial

Grow assets, information and accounts enables them to
number of perform transactions when it's most convenient
transactions for them. As a result, they have the opportunity
and fees to conduct transactions more frequently, driving
increased revenue from fees.

Brand and reputation for convenience, service

and innovation will be strengthened and
enhanced each time customers on the move
Expand and stop to check their stock portfolio or to pay bills
enhance brand wirelessly. This also offers significant potential
presence to grow the market awareness through word-of-
mouth.

27
Customer requirements for mobile banking applications Set of customer
requirements

Technical requirements

• Usage is possible with both kinds of devices

• Adaptation to device
• Usage regardless of network operator
• Small amount of transmitted data

Usability requirements

• Possibility to work offline

• Simple data input method
• Resumption of usage at the same point
• One-Click-Request

Design requirements

• Possibility to personalize the application

• Possibility to scale the application
• Announcement of events
• Wide range of functionality

Security requirements

• Encrypted data transmission

• Authorization of access
• Simple Authorization

1.14 DANGERS OF E-BANKING

Most services suffer from disadvantages, and on-line banking is no exception.

Recently, there have been a number of technical incidents, where customer information
28
was disclosed to other users. Banks have been quick to react, and have either reverted
back to the previous system or have solved the problem immediately

The main disadvantages are those related to fear of the unknown. The main fear is
that transferring money electronically will somehow cause it to disappear into the
electronic abyss. Banks are aware of this concern and do assure account holders that
such an event should not occur. There is some speculation, currently, that Internet-only
banks will not be able to sustain their high interest rates.

Other drawbacks to using Internet-only banks include:

• Penalties for phone transactions;

• Access to cash (ensure that there is sufficient access to ATMs).

We may perceive this method of banking to be instantaneous. For example, when a

bill is paid, the expectation is that the transaction is completed with immediate effect.
However, this is not the case, as the systems are still connected to the UK clearing
system, which takes three working days to clear payments., it appears that in many
cases basic risk principles have been ignored in the rush. Banks could lose the whole e-
trust business if they are unable to rise to the challenge of meeting customers' ever-
rising demands in a secure trading environment. Use Dangers in E-banking to reduce
the level of risks to a minimal level whilst ensuring that your business is not justify
behind in the race to retain and win new electronic customers.

How can this report help you? - It identifies the major risks which have been
encountered so far and pinpoints areas which are to become big risks for e-bankers in
the future.

Security

One of the main concerns with on-line banking is that of security. Fraudulent and
accidental security breaches are a rare occurrence. Banks employ many procedures and
systems in order to prevent these incidents. As a result they invest a considerable
amount of time and money in developing systems which will prevent fraud and
unauthorized access. If a security breach is discovered, the bank is liable for all money
stolen, and, as a result, insures them against the possibility.

29
 The security used in on-line banking is a combination of technology and user
authentication. The bank will use a 128 bit Secure Session Layer (SSL) encryption
protocol, between its server and the user's browser. The user's browser will show a
padlock when the session is secure. Using SSL can be thought of as preventing
eavesdropping. If a hacker were to attempt to listen to the data transmission, they would
have to guess the decryption key - which is a 1 in 3.4 x10 to the power of 38 chances,
making it infinitely secure. From a technology point of view, on-line banking is secure.

The weakest link of on-line banking is user authentication. Typically, a user has to
supply a set of answers to questions, which they have previously entered upon
registration, as well as a username and password. The banks place the responsibility of
keeping these answers secure with the user. If any are disclosed and money is stolen,
the liability lies solely with the account holder, not the bank. With this in mind the
following is sound advice to users:

• Make sure the Web Address starts https:\\ rather than http:\\, this shows that the
session is encrypted;
• Look for the closed padlock in the browser;
• Do not use simple or easily guessable passwords (use a combination of letters
and numbers) and change it frequently;
• Do not write down any username, password or any other information required;
• Always empty the cache of the browser after banking;
• Always sign-off when you are finished;
• Do not leave the PC unattended while banking;
• Do not use the "Auto Complete" feature within the browser;
• Check the Terms and Conditions for any notes on where you can and cannot
access the on-line accounts. (e.g. an Internet café is not as secure as your home
PC);
• Use additional software that your bank might recommend (firewall or anti-virus
software)
• Keep your Web browser up-to-date with the latest patches and versions;
• Never send any account information in an email as this is insecure. Be wary of
any e-Mail’s from your bank which ask you to send details via email, banks will
not do this;

30
 • Also, be wary of emails from banks which ask you to log into a Web site and
resubmit your details. These fake Web sites have been set-up by fraudsters. If
you are unsure of an email play it safe and contact your bank to verify the email.

1.15 INTERNET BANKING IN INDIA

The Reserve Bank of India constituted a working group on Internet Banking.

The group divide d the internet banking products in India into 3 types based on the
levels of access granted. They are :

•Information Only System: General purpose information like interest rates, branch
location, bank products and their features, loan and deposit calculations are provided
in the banks website. There exist facilities for downloading various types of
application forms. The communication is normally done through e-mail. The re is
no interaction between the customer and bank's application system. No
identification of the customer is done. In this system, there is no possibility of
any unauthorized person getting into production systems of the bank through internet.

•Electronic Information Transfer System: The system provides customer- specific

information in the form of account balances, transaction details, and statement of
accounts. The information is still largely of the 'rea d only' format. Identification and
authentication of the customer is through password. The information is fetched
from the bank's application system either in batch mode or off-line. The application
systems cannot directly access through the internet.

•Fully Electronic Transactional System: This system allows bi-directional

capabilities. Transactions can be submitted by the customer for online update. This
system requires high degree of security and control. In this environment, web server
and application systems are linked over secure infrastructure. It comprises
technology covering computerization, networking and security, inter-bank payment
gateway and legal infrastructure. It includes the followings:

O ATM

O DEBIT CARDS

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O SMART CARDS

O MOBILE BANKING

THE INDIAN SCENARIO

DRIVERS OF CHANGE: Advantages previously held by large financial institutions

have shrunk considerably. The Internet has levelled the playing field and afforded
open access to customers in the global marketplace. Internet banking is a cost-
effective delivery channel for financial institutions. Consumers are embracing the
many benefits of Internet banking. Access to one's accounts at anytime and from any
location via the World Wide Web is a convenience unknown a short time ago. Thus, a
bank's Internet presence transforms from brouchre ware' status to 'Internet banking'
status once the bank goes through a technology integration effort to enable the
customer to access information about his or her specific account relationship. The six
primary drivers of Internet banking includes, in order of primacy are:

• Improve customer access

• Facilitate the offering of more services

• Increase customer loyalty

• Attract new customers

• Provide services offered by competitors

• Reduce customer attrition

EMERGING CHALLENGES

Information technology analyst firm, the Meta Group, recently reported "financial
institutions who don't offer home banking by the year 2000 will become marginalized."
By the year of 2002, a large sophisticated and highly competitive Internet Banking
Market will develop which will be driven by

• Demand side pressure due to increasing access to low cost electronic services.

• Emergence of open standards for banking functionality.

• Growing customer awareness and need of transparency.

32
• Global players in the fray

• Close integration of bank services with web based E-commerce or even

disintermediation of services through direct electronic payments (E- Cash).

• More convenient international transactions due to the fact that the Internet along
with general deregulation trends eliminates geographic boundaries.

• Move from one stop shopping to 'Banking Portfolio' i.e. unbundled product
purchases. Certainly some existing brick and mortar banks will go out of business.
But that's because they fail to respond to the challenge of the Internet. The
Internet and its underlying technologies will change and transform not just
banking, but also all aspects of finance and commerce. It represents much more
than a new distribution opportunity. It will enable nimble players to leverage their
brick and mortar presence to improve customer satisfaction and gain share. It will
force lethargic players who are struck with legacy cost basis, out of business-since

they are unable to bring to play in the new context.

1.16 E-BANKING WORLD WIDE

Since its inception, Internet banking has experienced strong and sustained growth.
World Bank report on leapfrogging in e-finance pointed out that the three
countries with impressive progress in information technology in this sense are
Estonia, Republic of Korea and Brazil. Creation of the world’s leading electronic
banking systems has been done at a remarkably low cost compared to other
world-class internet banks.

In the European Union, 60 million people, representing 18 per cent of the adult
population, use online banking In France, the number of online banking accounts
is recording an annual growth rate of 75 per cent. However, Estonia is a country that
has become a leader in Internet banking (which now reaches 18 per cent of the
population), not only among Eastern European countries but in world rankings,
through a combination of easy to- use software, free-of-charge transactions and
behavior changes resulting from the influence of the Nordic countries’ IT culture
on Estonia.

33
A sector in which Latin America is see ms to be performing better than in other
industries is online retail banking. Growth in this area has been driven by traditional
banks, which have used the online channel to generate customer loyalty and improve
their operating margins. Two Brazilian banks, Bradesco and Banco do Brasil;
have thus achieved more than 4 million online customers each. Mexico is another
leader of Internet banking in Latin America. It adopted legislation providing for
the development of both E-Commerce and e-finance. In Mexico, the number of
online bank users more than tripled from 700,000 in 2000 to 2.4 million in 2001, and
it could reach 4.5 million in 2005 (E-Marketer 2002b). One reason for the success
of Latin American banks’ online ventures seems to be the attention they have
paid to providing retail customers with multiple ways to access their accounts
(Internet, telephone, wireless). However, given that the share of the total
population that actually has a bank account is relatively small, the expansion of
Latin American online banking may be facing a bottleneck.

Compared with overall Internet usage estimated at 4.4 million in Australia, the major
banks together have attracted only 1.2 million to online banking. The Internet is
a global phenomenon and so is e-finance. Its deployment is not limited to
developed countries, and indeed some developing countries – such as India and the
Republic of Korea – are experiencing particularly strong growth in E-Banking. In
Asia one of the most impressive records has been achieved by the Republic of Korea.
The Republic of Korea is lea ding in online brokerage and in mobile banking. In
South-East Asia Internet banking is also developing rapidly in Thailand, Malaysia,
and Singapore and to a lesser extent, in the Philippines

In Bangladesh there is a large gap between the computerization of foreign banks

and that of local commercial banks and as regards the state of their intra - and inter-
branch online networks. However, 75 per cent of local banks are planning to
introduce E- Banking, which implies very dynamic improvements. Apart from North
and South Africa the Sub Saharan Africa is the region that is

seriously lagging behind in Internet banking, although it is giving to the rest of

the world the good example of microfinance developments.

34
1.17 ABOUT HDFC BANK

HDFC Bank is one of India’s leading private banks and was among the first to receive
approval from the Reserve Bank of India (RBI) to set up a private sector bank in
1994.
Today, HDFC Bank has a banking network of 5,653 branches and 16,291 ATM's in
2,917 cities/towns.
HDFC Bank offers a diverse range of financial products and banking services to
customers through a growing branch and ATM network and digital channels such as
Netbanking, Phonebanking and MobileBanking. HDFC Bank offers a wide gamut of
commercial and transactional banking services to businesses and organizations of all
sizes. Our services include working capital finance, trade services, transactional
services and cash management.HDFC Bank recognizes the importance of good
corporate governance, which is generally accepted as a key factor in attaining fairness
for all stakeholders and achieving organizational efficiency. This Corporate
Governance Policy, therefore, is established to provide a direction and framework for
managing and monitoring the bank in accordance with the principles of good corporate
governance.

Type Public

• NSE: HDFCBANK
Traded as
• BSE: 500180
• BSE SENSEX Constituent
• NSE NIFTY 50 Constituent

ISIN INE040A01034

Industry Financial services

Founded August 1994 (27 years ago)

Headquarters Mumbai, Maharashtra

35
 ,
India

Area served India

Key people • Atanu Chakraborty

(Chairman)
• Sashidhar Jagdishan
(CEO)

Products • Credit cards

• Consumer banking
• Commercial banking
• Finance and insurance
• Investment banking
• Mortgage loans
• Private banking
• Private equity
• Wealth management[2]

Revenue ₹120,883 crore (US$16 billion)[3] (2021)

Net income ₹31,116 crore (US$4.1 billion)[3] (2021)

Total assets ₹1,746,870 crore (US$230 billion)[4] (2021)

Total equity ₹203,169 crore (US$27 billion)[4] (2021)

Owner Housing Development Finance Corporation (25.7%)

Number of 120,093 (2021)[5]

employees

Subsidiaries HDFC Securities[6]

HDB Financial Services[7]

Website www.hdfcbank.com

Footnotes / references

HISTORY

36
HDFC Bank was incorporated in 1994 as a subsidiary of the Housing Development
Finance Corporation, with its registered office in Mumbai, Maharashtra, India. Its first
corporate office and a full-service branch at Sandoz House, Worli were inaugurated
by the then Union Finance Minister, Manmohan Singh.

As of 30 June 2019, the Bank's distribution network was at 5,500 branches across
2,764 cities. The bank also installed 430,000 POS terminals and issued 23,570,000
debit cards and 12 million credit cards in FY 2017. It has a base of 1,16,971
permanent employees as of 21 March 2020.

HDFC Bank provides a number of products and services including wholesale

banking, retail banking, treasury, auto loans, two-wheeler loans, personal loans, loans
against property, consumer durable loan, lifestyle loan and credit cards. Along with this
various digital products are Payzapp and SmartBUY

HDFC Bank merged with Times Bank in February 2000. This was the first merger of
two private banks in the New Generation private sector banks category.[18] Times
Bank was established by Bennett, Coleman and Co. Ltd., commonly known as The
Times Group, India's largest media conglomerate.[19]

In 2008, Centurion Bank of Punjab (CBoP) was acquired by HDFC Bank. HDFC
Bank's board approved the acquisition of CBoP for ₹95.1 billion in one of the largest
mergers in the financial sector in India.[20]

In 2021, the bank acquired a 9.99% stake in FERBINE, an entity promoted by Tata
Group, to operate a Pan-India umbrella entity for retail payment systems, similar to
National Payments Corporation of India.[21]

In September 2021, the bank partnered with Paytm to launch a range of credit cards
powered by the global card network Visa.

In March 2020, HDFC (parent company of HDFC BANK) made an investment of

₹1,000 crores in Yes Bank. As per the scheme of reconstruction of Yes Bank, 75% of
the total investment by the corporation would be locked in for three years. On 14 March,
Yes Bank allotted 100 crore shares of the face value of ₹2 each for consideration of ₹10
per share (including ₹8 premium) to the Corporation aggregating to 7.97 percent of the
post issue equity share capital of Yes bank.

37
The equity shares of HDFC Bank are listed on the Bombay Stock Exchange and the
National Stock Exchange of India. Its American depositary receipts are listed on the
NYSE issued through JP Morgan Chase Bank.

Its global depository receipts (GDRs) was listed on the Luxembourg Stock Exchange
but was terminated by board of directors following its low trading volume.

Shareholders (as of 30 September 2021) Shareholding

Promoter group (HDFC) 25.88%

Foreign institutional investor(FII) 38.30%

Individual shareholders 13.25%

Qualified institutional buyer 4.74%

Insurance companies 2.94%

Unit Trust of India/mutual funds 14.57%

Financial institutions/banks 0.4%

HDFC Net Banking is a digital banking platform that enables customers to access
their account, transfer funds online and avail banking services using the internet.
HDFC Netbanking customers need to login to their netbanking account to use features
like balance enquiry, fund transfer etc.

HDFC Netbanking Services

In order to provide convenience to all its account holders, HDFC Bank introduced the
net banking facility for all its account holders. With HDFC Net banking, account

38
holders can avail various banking services from the convenience of their home or
workplace. Customers will only be required to HDFC net banking registration and then
login with their credentials.

Account holders can avail the below-mentioned services through HDFC netbanking
facility:

HDFC Bank Net banking services

Transact

Fund Transfer (within Fund Transfer (Outside

Open Fixed Deposit
HDFC Bank) HDFC Bank)

Open Recurring Deposit Fixed Deposit Sweep-in Overdraft against FD

Enquire

Account Summary HDFC Balance Check HDFC Mini Statement

View / Download
View Cheque Status TDS Enquiry
Account Statement

Request

View / Add GST Number CIBIL TU Score Confirm KYC Details

View Tax Credit

Change Login Password Update profile details
Statements

39
 Stop Payment of Cheque Cheque Book Demand Draft

Download Interest
IPO Application Form 15G/Form 15H
Certificate

1.18 ABOUT ICICI BANK

ICICI Bank is a leading private sector bank in India. The Bank’s consolidated total
assets stood at Rs. 14.76 trillion at September 30, 2020. ICICI Bank currently has a
network of 5,288 branches and 13,875 ATMs across India.

ICICI Bank was originally promoted in 1994 by ICICI Limited, an Indian financial
institution, and was its wholly-owned subsidiary.

HISTORY

ICICI was formed in 1955 at the initiative of the World Bank, the Government of India
and representatives of Indian industry. The principal objective was to create a
development financial institution for providing medium-term and long-term project
financing to Indian businesses. Until the late 1980s, ICICI primarily focused its
activities on project finance, providing long-term funds to a variety of industrial
projects. With the liberalization of the financial sector in India in the 1990s, ICICI
transformed its business from a development financial institution offering only project
finance to a diversified financial services provider that, along with its subsidiaries and
other group companies, offered a wide variety of products and services. As India’s
economy became more market-oriented and integrated with the world economy, ICICI
capitalized on the new opportunities to provide a wider range of financial products and
services to a broader spectrum of clients. ICICI Bank was incorporated in 1994 as a
part of the ICICI group. In 1999, ICICI became the first Indian company and the first
bank or financial institution from non-Japan Asia to be listed on the New York Stock
Exchange.

ICICI Bank Limited

40
 ICICI Bank Corporate Office in Bandra Kurla Complex, Mumbai

Formerly Industrial Credit and Investment Corporation of India

Type Public

• BSE: 532174
Traded as
• NSE: ICICIBANK
• NYSE: IBN
• BSE SENSEX Constituent
• NSE NIFTY 50 Constituent

ISIN INE090A01021

Industry Financial services

Founded 5 January 1955; 66 years ago

Headquarters Vadodara, Gujarat , (Registered Office)

Bandra Kurla Complex, Mumbai (Corporate Office)

Number of 5,275 (2020)

locations

Area served Worldwide

Key people • Girish Chandra Chaturvedi (Chairperson)[1]

• Sandeep Bakhshi (MD & CEO)

41
 Products Banking, commodities, credit cards, equities
trading, insurance, investment management, mortgage
loans, mutual funds, private equity, risk
management, wealth management, asset management

Revenue ₹161,192 crore (US$21 billion)[2] (2021)

Operating ₹42,261 crore (US$5.6 billion)[2] (2021)

income

Net income ₹20,220 crore (US$2.7 billion)[2] (2021)

Total assets ₹1,573,812 crore (US$210 billion)[3] (2021)

Total equity ₹153,078 crore (US$20 billion)[3] (2021)

Number of 97,354 (2020)[4]

employees

Subsidiaries ICICI Prudential[5]

ICICI Lombard[6]
ICICI Securities[7]
ICICI Direct[8]

Website www.icicibank.com

ICICI Bank offers products and services such as online money transfers, tracking
services, current accounts, savings accounts, time deposits, recurring deposits,
mortgages, loans, automated lockers, credit cards, prepaid cards, debit cards and digital
wallets called ICICI pocket.

ICICI bank launched 'ICICIStack' which provides online services such as payment
options, digital accounts, instant car loans, insurance, investments, loans etc.

42
Share Holding Pattern (% of Shares Held)

CICI Bank's Shareholding Pattern

Description Percent of Share (%)

Promoters 0.00

Individuals 5.46

Institutions 26.77

FII 35.79

Govt. 0.00

Others 31.98

40

35

30
Promoters
25 Individuals

20 Institutions
FII
15
Govt.
10 Others
5

0
Percent of Share (%)

43
1.19 HDFC vs ICICI BANKS

Indian Banks HDFC vs ICICI

HDFC and ICICI are two names that stand apart among others when we talk of private
sector banks in India. Both are fairly successful banks giving stiff competition to
government banks. The reason of their success lies in the fact that both have introduced
a greater efficiency of services and also host of new services that were demanded by
consumers.

44
HDFC Bank Ltd.

HDFC was among the first private sector banks set up in India after RBI allowed their
establishment in 1994. It was promoted by Housing Development Corporation of India,
and is still known as HDFC Bank. It was founded by Bibu Verghese and its
headquarters are in Mumbai. As of 2010, its operating incomes were $958 million and
profit stood at $658 million. Times Bank Limited, and Centurion Bank of Punjab have
merged with HDFC Bank since then, increasing the assets of the Bank. Today HDFC
has a Pan Indian presence with over 1700 branches and over 5000 ATM’s.

ICICI Bank

ICICI is the largest private sector bank and 2nd largest bank overall in India. It was
formerly known as Industrial Credit and Investment Corporation of India. The bank has
its presence all over India and even abroad (Present in 18 countries) with more than
2000 branches and over 5000 ATM’s. It provides a host of banking services to both
corporate and retail customers apart from being fairly successful in life insurance
(ICICI Prudential), venture capital (ICICI Direct) and asset management. It is the
largest home loan provider in the country. ICICI ranks number one in providing credit
cards in India. ICICI has a strong presence overseas and has offices in 19 countries.
ICICI has been notorious in employing goons for recovering its loans from defaulters
and has been pulled by different courts and consumer forums in this regard.

As far as differences between the two banks are concerned, both are equally popular
employing cutting edge technologies though ICICI seems to be ahead in aggressive
branding having Amitabh Bachchan as its brand ambassador.

45
 CHAPTER- 2
RESEARCH METHODOLOGY

46
2.1 OBJECTIVE OF THE STUDY

1. To know what is the role of Internet in banking sector.

2. To know what are the challenges of online banking.
3. To know about the activities being provided by online banking system.
4. To study the awareness of internet banking among the customer of ICICI & HDFC
Bank.
5. To access the degree of customer satisfaction relating to E-banking services.
6. To know about the current and future prospects of E-Banking to the customers.
7. To find out the major problems faced by the customers while using e-banking
services.
8. To study about the factors that affects the customer perception towards e-
banking of HDFC and ICICI bank.

2.2 SCOPE OF STUDY

1. The study will be able to revail the preferences, need, perception, of the customer
regarding the E - Banking services.
2. It also helps the Banks to know whether the E - Banking services can really
satisfying the customer needs.
3. All the classes of the customers were taken into consideration.
4. This study was covered E-Banking service sector.
5. This is a realistic source directly collected from the customers of Bank.

2.3 LIMITATIONS OF STUDY

1. This study is based on the prevailing respondent’s satisfaction. But their satisfaction
may change according to time, fashion, need etc
2. Both Banks ICICI & HDFC are providing different E- Banking services and
acceptance to their current holders.

3. As a research is based on a sample, there fore, the findings may not reveal the
factual information about the research problem, though an utmost care will be taken to
select a truly representative sample.

47
4. There may be some bias in the responses of the respondents which cannot be
ruled out fully.

5. Sudden change in the e- banking practices during the course of research can
affect the results.

6. The study is limited to area s of Mumbai only.

7. The sample size of only 70 was taken from the large population for the purpose
of study, so there can be difference between results of sample from total
population.

8. People were reluctant to go in to details because of their busy schedules.

9. Merely asking questions and recording answers may not always elicit
the actual information sought.

10. Due to continuous change in environment, what is relevant today may

be irrelevant tomorrow.

2.4 NATURE OF STUDY

The methodology adopted to achieve the project objective involved descriptive

research method. The information required for fulfilling the objective of study
was collected from various primary and secondary sources.

2.5. TYPES OF RESEARCH

The research is primarily both exploratory as well as descriptive in nature. The sources of
information are both Primary & Secondary.
A well-structured questionnaire was prepared to collect the perception of the respondent,
through this questionnaire.

This study is DESCRIPTIVE in nature. It helps in breaking vague problem into

smaller and precise problem and emphasizes on discovering of new ideas and
insights.

RESEARCH DESIGN

48
Research design constitutes the blue print for the collection, measurement and
analysis of data. The present study seeks to identify the extent of preferences
of E- Banking over traditional banking among service class. The research design
is descriptive in nature. The research has been conducted on customers of HDFC
and ICICI Bank within MUMBAI. For the selection of the sample, convenient
sampling method was adopted and an attempt has been made to include all the
age groups and gender of every class.

RESEARCH INSTRUMENT

The instrument used for gathering data was questionnaire. To get further insight in to
the research problem, interview regarding their buying practices too was made.
This was done to crosscheck the authenticity of the data provide d. To supplement
the primary data and to facilitate the process of drawing inference, secondary
data was collected from published sources like magazines, journals, newspapers etc.

2.6 RESEARCH METHOD

Research can be defined as systematized effort to gain new knowledge. A research is
carried out by different methodology, which has their own pros and cons.
Research methodology is a way to solve research problem along with the logic behind
them. Thus when we talk of the research methodology we not only take of research method
but also context of our research study and explain why we are using a particular method or
techniques and why we are not using other so that research result are capable of being
evaluated either by the researchers himself or by others.

2.7 TYPES OF DATA

The data is collected from the following sources:-
1. Primary Data:-
Primary data is the first hand data which is collected from the number of respondents.
Here structured questionnaire was used to collect primary data through surveys.

49
2. Secondary Data:-
Secondary data has been collected for other for other useful resources & information
essential required in order to successfully complete the project report & company
figures from the internet, books, magazines as well as news paper.

SAMPLE SIZE
Sample Size- 70 consumers has been selected as a sample size for research.

2.8 SAMPLE METHOD

Sample Method
➢ Random sampling is used for research project.

DATA REPRESENTATION TECHNIQUE AND TOOLS

➢ Columns charts & pie charts has used for the Representation.

2.9 DATA COLLECTION METHOD

➢ Survey Method

➢ Survey Instrument:- Questionnaire

➢ Method of Survey:- Through the Google form and personal interaction with
the help of Questionnaire.

2.10 NEED OF THE STUDY

➢ To determining growth direction of online banking service.

➢ Promoting E-banking service s in banking industry.

50
 ➢ Customer perception will be taken into consideration about the internet
banking.

2.11 HYPOTHESIS

EASE OF USE

Ho: Ease of use does not influence the use of E Banking services.

H1: Ease of use does influence the use of E Banking services.

DIRECT ACCESS

Ho: Direct Access does not influence the use of E Banking services.

H1: Direct Access does influence the use of E Banking services.

FRIENDS/RELATIVES

Ho: Friends/Relatives do not influence the use of E Banking service s.

H1: Friends/Relatives do influence the use of E Banking services.

TIME DIMENTION – 2 Months (1st,Dec - 31st, Jan, 2021-2022)

51
 CHAPTER- 3
LITERATURE REVIEW

52
Author Name: Malhotr a, Pooja & Singh, B. Topic: “ Determinants of Internet
banking adoption by banks in India” Date: December, 2010.

This study is an attempt to present the present status of Internet banking in India and
the extent of internet banking services offered by Internet banks. In addition, it seeks
to examine the factors affecting the extent of Internet banking services. The data
for this study are based on a survey of bank websites explored during July 2008.
The sample consists of 82 banks operating in india at 31 March 2007. Multiple
regression technique is employed to explore the determinants of the extent of
Internet banking services. The results show that the private and foreign Internet
banks have performed well in offering a wider range and more advance d services
of Internet banking in comparison with public sector banks. Among the
determinants affecting the extent of Internet banking services, size of the bank,
experience of the bank in offering Internet banking , financing pattern and
ownership of the bank are found to be significant. The primary limitation of the study
is the scope and size of its sample as well as other variables (e.g. market,
environmental, regulatory etc ) which may have an effect on the decision of the
banks to offer a wide range of Internet banking services. The purpose of the study is
to help fill significant gaps in knowledge about the Internet banking landscape in India.
The findings are expected to be of great use to the government, regulators,
commercial banks, and other financial institutions, e.g. co-operative banks planning
to offer Internet banking , bank customers and re searchers. The bankers as well
as society at large will come to know where the banks lag in terms of adoption of
Internet banking And in providing different products and services. An understanding
of the factors affecting the extent of Internet banking services is essential both
for economists studying the determinants of growth and for the creators and
producers of such technologies. Moreover, this paper contributes to the empirical
literature on diffusion of financial innovations, particularly Internet banking , in a
developing country, i.e. India

53
Author Name: Polaris Software Lab Limited (POLS.BO) Topic: “Polaris Software
and IndusInd Bank launch INTELLECT PRIVACY Internet Banking Security Card”,
PR Newswire” Date: May, 21, 2010.

In this study Polaris Software Lab Limited (POLS.BO), a leading Financial

Technology Company, launched Intellect(TM) PRIVACY based on state-of-the-art
technology and four patents filed by the India n Institute of Technology Madras.
IndusInd Bank has be come the first bank in India to implement Intellect(TM)
PRIVACY, an online and internet banking security card, for its internet banking
customers. The technology will protect customers and banks from practically all kinds
of phishing attacks, viz. deceptive e-mail, key/screen logger, brute force/dictionary
attacks and Trojans, etc. Intellect PRIVACY uses multi factor, dynamic
authentication technology providing for authorizing online banking transactions, in
a completely secure platform. Commenting on the innovation, Professor L S
Ganesh, Coordinator of the programmer, said, "At IIT Madras, the Department
of Computer Science and Engineering and the Department of Management Studies
got particularly interested in designing an internet security technology that is cost
efficient and easy to use in a rapidly growing e-commerce scenario, and
transferring it commercially. We chose the Cost-Usability-Security (CUS) approach
to arrive at a solution and Polaris Software created an eminently usable application
for the banking industry. IndusInd Bank, which was looking for providing greater
security for web based transactions, became the first organization to adopt it."
Intellect PRIVACY is a simple plastic card that customers c an use to generate
a one-time password (OTP) for carrying out any kind of online banking transaction
including the sign on. Banks can issue booklets containing a desired number of
cards that would last many transactions. The card has no pilferage value by itself and
customers can easily manage its life cycle, including making a request for a new
booklet and reporting loss of cards through online banking.

Author Name: Azouzi, D. Topic: “The Adoption of Electronic Banking in Tunisia”,

Journal of Internet Banking and Commerce” Date: June, 09 2009.

54
This paper aims to check if the current and prompt technological revolution
altering the whole world has crucial impacts on the Tunisia n banking sector.
Particularly, this study seeks some clues on which we can rely in order to
understand the customers' behavior regarding the adoption of electronic banking.
To achieve this purpose, an empirical research is carried out in Tunisia and it reveals
that panoply of factors is affecting the customers-attitude toward e-banking. For
instance; age, gender and educational qualifications seem to be important and they
split up the group into electronic banking adopters and traditional banking defenders
and so, they have significant influence on the customers' adoption of e-banking.
Furthermore, this study shows that despite the presidential incentives and in spite
of being fully aware of the e-banking's benefits, numerous respondents are still
using the conventional banking. It is worthy to mention that the fear of loss because
of transactions errors or hackers plays a significant role in alienating Tunisian
customers from online banking.

Author Name: B. Dizon, J.A. Topic: “Special Feature: Electronic Banking”. Date:
January, 22, 2009.

In this study they have founded that while big banks still conduct the bulk of
their business in brick and mortar bank branches, the finance sector has been
increasingly investing on e-banking facilities to offer 24-hour, queue- free services to
their regular clients, whether through ATM machines, mobile phones or the Internet.
"E- Banking's appeal is primarily its convenience. Clients nowadays want instant
results; they don't want to wait anymore," said Francisco M. Caparros, Jr., senior
vice-president of Asia United Bank and president of Banc Net. It's also turned
out to be a more efficient way to process transactions, as e-banking does away with
most of the paperwork that clients have to accomplish. "A lot of people don't like filling
forms," Mr. Caparros added. "Online banking, in particular, relies on user names
and passwords which need to be protected," said Ferdinand G. La Chica, first
vice- president and marketing group head for Sterling Bank of Asia. These anti- theft
barriers are at time s supplemented by transaction passwords and "tokens", often
a keychain-like device that is issued to the client and generates random, one-
time passwords to enable him to log into his account online. Last year, the Rural

55
Bank Association of the Philippines announced that its members are looking to
appoint local merchants like sari-sari stores as third party agents where consumers
can open new accounts and make large payments. Such informal outlets will
enable banks to reach out to small-income businesses and individuals, particularly
those in the agrarian sector, most of who are based outside the city center.

Name: Uppal, R.K. & Chawla, R. Topic: “E-Delivery Channel-Based Banking

Services: An Empirical Study. Institute of Chartered Financial Analysts of India
(Hyderabad)”. Date: Feb,06,2009.

This study highlights customer perceptions regarding e-banking services. A survey

of 1,200 respondents was conducted in October 2008 in Ludhiana district, Punjab.
The respondents were equally divided among three bank groups namely, public
sector, private sector and foreign banks. The present study investigates the
perceptions of the bank customers regarding necessity of e-banking services, quality
of e-banking services, bank frauds, future of e-banking, preference of bank customers
regarding banks, comparative study of banking services in various bank groups,
preferences regarding use of e-channels and problems faced by e-bank customers.
The major finding of this study is that customers of all bank groups are
interested in e-banking services, but at the same time are facing problems like,
inadequate knowledge, poor network, lack of infrastructure, unsuitable location,
misuse of ATM cards and difficulty to open an account. Keeping in mind these
problems faced by bank customers, this paper frames some strategies like
customer education, seminars/meetings, proper network and infrastructure facilities,
online shopping facilities, proper working and installation of ATM machines, etc.,
to enhance e-banking services. Majority of professionals and business class customers
a s well as highly educated and less educated customers also feel that e-banking
ha s improved the quality of customer services in banks.

Author Name: Reeti, Sanjay, and Malhotra, A. Topic: “The Customers’

perspective s regarding e-banking in an e merging economy.” Date: June,28, 2009.

56
Stated about the Customers’ perspective s regarding e-banking in an e merging
economy. So that, the author determining various factors affecting customer
perception and attitude towards and satisfaction with e- banking is an essential
part of a bank's strategy formulation process in an emerging economy like India.
To gain this understanding in respect of Indian customers, the study was conducted
on respondents taken from the northern part of India. The major findings depict that
customers are influenced in their usage of e-banking service s by the kind of
account they hold, their age and profession, attach highest degree of usefulness
to balance enquiry service among e -banking services, consider security & trust most
important in affecting their satisfaction level and find slow transaction speed the
most frequently faced problem while using e-banking.

Author Name: Hsun, K.S. Topic: coherence of the financial service sector and
adopts different observational variables to identify innovation capital (training and
R&D density) and process capita l (IT system sufficiency). Date: March,22,2008.

This study considers the coherence of the financial service sector and adopts
different observational variables to identify innovation capital (training and R&D
density) and process capita l (IT system sufficiency). The results show that human
capital has a direct impact on both innovation capita l and process capital, which
in turn affect customer capita l; while finally, customer capital affects business
performance. In addition, there is a negative relationship between process capital
and customer capital in the financial service sector. It suggests that in the financial
service sector, customer satisfaction relies on a sufficient degree of training and R&D
density. Intemperate investment on the support of e-banking operation systems may
not be a good answer

Author Name: Laukkanen, P., Sinkkonen, S. & Laukkanen, T. Topic: “Consumer

resistance to internet banking: postponers, opponents and rejecters” Date:
September,11,2008.

The purpose of this paper is to further the understanding of innovation resistance

by dividing internet banking non-adopters into three groups based on their

57
intentions to use the innovation. Thereafter, the aim is to identify how the
resistance differs in these customer groups. This study identifies three groups of
internet banking non-adopters, namely postpones, opponents and rejecters. The
data were collected by conducting an extensive postal survey among the retail
banking customers in Finland who had not adopted internet banking. The
measurement development was based on consumer resistance theory and the
earlier literature on internet banking. Principal component analysis was used to
classify the resistance items into five adoption barriers derived from the earlier
literature. Thereafter, analysis of variance was used to analyze the statistical
differences in resistance to internet banking between the three groups. Significant
differences were identified between the groups explored. The resistance of the rejecters
is much more intense and diverse than that of the opponents, while the postpones
show only slight resistance. The results also indicate that psychological barriers
are even higher determinants of resistance than usage and value, which are
constructs relate d to ease-of-use and usefulness determining acceptance in the
traditional technology acceptance model. Moreover, the findings highlight the role
of self-efficacy in bank customers' risk perceptions to internet banking. This study
provides further understanding of what inhibits internet banking adoption by
comparing three non-adopter groups with respect to their resistance to internet
banking. It also has implications for management in overcoming non-adopters'
resistance to the innovation.

Author Name: Routray Topic: “Wire less ATM: A Technological Framework to M-

Banking” Date: August 19, 2008.

The study describes that are becoming enablers for organizations to conduct
business more effectively and efficiently. One of the most effective applications is
mobile banking (m-banking). For any application to gain recognition technological
advancements play a vital role. To make m-banking application a success
bandwidth management is an important issue. The increased flexibility and mobility
feature of wireless ATM and its bandwidth on demand function is motivating a large
number of carriers towards deployment of the WATM networks. But there are
certain issues which are required to be addressed in WATM. The issues are cost

58
effective planning of network, location management and handover management. In
this paper we have suggested and evaluate d a technological framework for the m-
banking application using wireless ATM which optimizes the bandwidth usage a
nd provides a n effective handover management. Simulation results show that the
resultant framework is very effective in handling the bandwidth and the handover
issue in wireless ATM and provides an effective WATM framework model.

Author Name: Malhotr a, P. & Singh, B. Topic: “An analysis of Internet banking
offerings and its determinants in India ”. Date: November 07, 2007.

Stated about this research tells us that the larger banks, banks with younger age,
private ownership, higher expenses for fixed assets, higher deposits and lower
branch intensity evidence a higher probability of adoption of this new technology.
Banks with lower market share also see the Internet banking technology as a
means to increase the market share by attracting more and more customers
through this new channel of de livery. Further, the adoption of Internet banking
by other banks increases the probability that a decision to adopt will be made. An
understanding of the factors affecting this choice is essential both for economists
studying the determinants of growth and for the creators and producers of such
technologies. From this perspective, understanding the factors determining the
adoption of technology becomes highly relevant from the policy point of view.
Moreover, the studies on the adoption of financial innovations a re related to
developed markets, e.g. US or European banking markets. Hence, this paper
contributes to the empirical literature on diffusion of financial innovations,
particularly Internet banking, in a developing country.

Author Name: Shah & Braganza Topic: “A Survey of Critical Success Factors in
e-banking”, Date: April 18, 2007.

This survey indicates the Critical Success Factors in e- banking and the author
suggest in this article that the organizational factors, which are critical to the success
of e -banking, are investigated. Different piece s of literature report different factors
as key to success and generally based on subjective, perceptual data. A synthesis of

59
existing literature is a basis for survey questions. The data was collected from UK
based financial sector organizations who are offering their services on electronic
channels, using postal questionnaires. The top factors found to be most critical for
the success in e-banking are: quick responsive products/services, organizational
flexibility, services expansion, systems integration and enhanced customer service.
An important lesson from this research is that organizations need to view the e-
banking initiative as a business critical area rather than just a technical issue.
The y need to give attention to internal integration, which may include channels,
technology and business process integration, and improving the overall services
to their customers

Author Name: Bauer, Malik & Falk Topic: “Measuring the quality of e banking
portals”, Date: July 27, 2007.

This article reviews the measuring the quality of E-Banking portals. In the
internet economy, the business model of web portals has spread rapidly over the
last few years. Despite this, there have been very few scholarly investigations
into the service s and characteristics that transform a web site into a portal as well
as into the dimensions that determine the customer’s evaluation of the portal’s
service quality. Based on an empirical study in the field of e-banking the authors
validate a measurement model for the construct of web portal quality based on
the following dimensions: security and trust, basic services quality, cross- buying
services quality, added value, transaction support and responsiveness. Findings –
The identified dimensions ca n reasonably be classified into three service
categories: core services, additional services, and problem-solving services.
Originality/value – The knowledge of these dimensions as major determinants of
consumer’s quality perception in the internet provides banks a promising starting
point for establishing an effective quality management for their e-businesses.

Author Name: Picado, Gonzalez & Eckelman Topic: “Customer Satisfaction Using
QFD” Date: October 20,2004.

60
This study investigated the customer satisfaction using QFD and a research on service
quality and customer satisfaction has become significant in the service industries.
This study develops a case study that considers both external and internal service
management issues and subsequent service innovations based on the framework
of quality function deployment (QFD). The application of the customer window
quadrant (CWQ) and the action plan matrix in the analysis of customer and service
elements constitute a different approach for QFD. Some benefits and disadvantages
of the QFD process are discussed as compared to extant service quality and
customer paradigms. Finally, suggestions and directions are offered for future
applications, with particular interest in the e-bank service management issues.

Author Name: Nitsure, R.R. Topic: “E-Banking: Challenges and Opportunities”.

Date: December 25, 2004.

This article indicates the E-banking Challenges and opportunities lies in the banking
industry. E-banking has the potential to transform the banking business a s it
significantly lowers transaction and delivery costs. This pa per discusses some of the
problems developing countries, which have a low penetration of information and
telecommunication technology, face in realizing the advantages of e- banking
initiatives. Major concerns such as the 'digital divide' between the rich and poor,
the different operational environments for public and private sec tor banks,
problems of security and authentication, management and regulation, and inadequate
financing of small and medium scale enterprises (SMEs) are highlighted.

Author Name: Asghar Topic: “Banking In a Cloud of Electrons”. Date: March 17,
2004.

The study depicts that online banking and the web channel are here to stay. Financial
services rely on multiple distribution channels and e-banking represents the
channel of the future. Success stories around e-banking have taken shape through
a mix of innovation and experience. The financial services sector needs to apply both

61
these factors to their advantage to produce the desired results. Win-win implementation
of e-banking not only require s high Internet penetration rates and stable
infrastructures, but more importantly, for companies to realize the powerful
revenue opportunity of this business arm vis-à-vis the traditional brick and mortar
system of operation. Therefore, it is imperative that all e-banking implementations are
seamlessly integrate d with the core 'traditional' services thereby making the
online experience truly holistic for the customer.

Author Name: Anthony Topic: “User Friendly E-Banking: A Survey of Online E-

Banking Retail Initiatives” Date: September 20, 2004..

This article discusses the importance of usability within the E-Banking sector and
identifies common usability problems and ways to resolve them. It is widely
recognized that online banking provides more revenue per customer and costs less
per transaction than any other channel, including phone banking. Encouraging
news from Forrester Research states that by 2007 the number of Europeans
banking online will double to 130 million. Based on the principles of Human
Computer Interaction (HCI), web usability has become a recognized success factor
for all e-business, including online banking. Users most enjoy those sites that
provide clear information, easy navigation and an engaging customer experience. Yet
people will naturally gravitate to the ones which a re easiest to use and offer the
best service. Banks aiming to profit the most from the increase in online banking
volumes should consider the usability and accessibility of all aspects of the ir site
to welcome them.

Author Name: Veneeva Topic: “E-Banking (Online Banking) and Its Role in Today's
Society”, Date: April 27, 2006.

This article describes that world is changing at a staggering rate and technology
is considered to be the key driver for these changes around us. Many activities
are handled electronically due the acceptance of information technology at home
as well as at workplace. Internet can be seen as a truly global phenomenon that has
made time and distance irrelevant to many transactions. The evolution of

62
electronic banking started from the use of automatic teller machines (ATM) and
has passed through telephone banking, direct bill payment, electronic fund transfer
and the revolutionary online banking (Alter, 2002). The future of electronic
banking ac cording to some is the acceptance of WAP enabled banking and
interactive-TV banking (Petrus & Nelson, 2006). But it has been forecasted that
among all the categories, online banking is the future of electronic financial
transaction. The rise in the e-commerce and the use of interne t in its facilitation
along with the enhanced online security of transactions and sensitive information
has been the core reasons for the penetration of online banking in everyday life.

Author Name: Maumbe Topic: “ Digital Financial Service Delivery to Poor

Communities in”, Date: January 03, 2006.

This study depicts that most banks throughout the world, ICT have become the
back bone of financial service delivery and finance networks have shifted from paper-
based to the digital mode. However, digital financial service de livery confronts
a number of challenge s regarding its efficacy in closing the “financial divide”
affecting the poor. Although e-banking is considered an inexpensive way to reach
clients, its accessibility is hindered by a number of factors including poor Internet
penetration, lack of e-banking awareness and customer inflexibility to new
technology. In developing countries most of which are characterize d by extreme
poverty and poor infrastructure, universal Internet-based service provision remains
indefinable. Further, the author argues that developing nations need to improve
educational standards and computer literacy prior to broad-based adoption and
constructive use of Internet services. As result, the poor and unemployed remain
disadvantaged in terms of access to rural Internet based services. Rea l access to “well-
functioning” and “efficient financial services” has the potential to empower poor
communities.

Author Name: Kamiya Topic: “How E-Banking Can Ease Your Life”, Date: August
16, 2006.

63
This articles show that Indian banks are trying to make your life easier. Not just
bill payment, you an make investments, shop or buy tickets and plan a holiday a t
your fingertips. In fact, sources from ICICI Bank tell us, "Our Internet banking
base has been growing a t a n exponential pace over the last few years. Currently
around 78 per cent of the bank's customer base is registered for Internet banking."
To get started, all you need is a computer with a modem or other dial-up device,
a cheking account with a bank that offers online service and the patience to complete
about a one-page application--which can usually be done online. You can avail
the following services: Bill payment Services, Fund Transfer, Credit Card, Internet
shopping, and Investment though Internet e tc. Due to the Internet banking the life of
an individual becomes easy and raises the standard of life of the humans.

Author Name: Awamleh Topic: “Diffusion of Internet Banking amongst educated

consumers in a high income Non-OECD country”, Date: July 29, 2007.

This study analyses the internet banking channels and service preferences of
educate d banking consumers in the UAE and examines the factors influencing
the intention to adopt or to continue the use of internet banking among both
users and non users of internet banking. It is shown that although the banking
sector in the UAE is a regional leader, internet banking in the UAE is yet to
be properly utilized a s a real added value tool to improve customer relationship
and to attain cost advantages. The Technology Acceptance Model (TAM) was
used to identify factors influencing the intention to adopt and continued use of
internet banking customers. Data was collected from internet banking users and
potential users in the United Arab Emirates and factor analyses and multiple
regression analyses were conducted to examine the data. Relative usefulness is
introduced as one of the factors and is defined as the degree to which a new
technology is better than existing ones. There is a significant difference between users
and non-users on six of the seven factors identified. Further, it was revealed that
relative usefulness, perceived risk, computer efficacy and image had a significant
impact on continued usage of internet banking for IB Users, while relative
usefulness and result demonstrability were the only ones significant for Non-users
of internet banking. The effects of age, gender, income, and e-commerce users also

64
explored. Result demonstrability is significant for all categories of non-users except
for those with income below AED 7,000. Implication of results were discussed, and
future re search directions outlined.

65
 CHAPTER- 4
DATA ANALYSIS, PRESENTATION &
INTERPRETATION

66
 DATA ANALYSIS & DIAFGRAM INTERPRETATION

Gender:

Sr. No. Gender No. of Respondents

1. Male 31

2. Female 39

Male Female

44%

56%

Interpretation:
In the above diagram the no. of person using the Internet banking is shown. Out of total
response 56% of females & 44% males are using internet banking. From this it is
understood that female usage of internet banking is more as compared to male.

67
Age group:

Sr. No Age No. of Respondent

1 Bellow 20 18

2 21-30 27

3 31-40 19

4 41-50 5

5 50 Above 1

50 Above
1%

41-50
7%

Bellow 20 Bellow 20
26%

31-40 21-30
27%

31-40

41-50

21-30 50 Above
39%

Interpretation:
The above diagram represents the aged group of the people who are using the Internet
banking. The age group between 21-30 is the highest percentage in aged person using
the Internet banking. The age group more than 50 is the lowest percentage in the

68
diagram. The people in the aged group below 20 for using the internet banking is 26%.
The people in the aged group 21 – 30 is 39%. The people in the aged group 31-40 is
27%. The people in the aged group 41-50 is 7% and for more than 50 is 1%.

1. Do you think that E-banking services are necessary in present scenario?

No. of Respondent
Yes 68
No 2

3%

Yes

No

97%

Interpretation:
As shown in the above diagram, The E- Banking services in the present scenario is
essential in today generation. Out of total response the no. of people using E- banking
services used is 97% & the no. of people not using the E-Banking services is 3%.

2. From which bank you are availing the e-banking services?

69
 Banks No. of Respondent
ICICI 31
HDFC Bank 21
Other 18

26%
ICICI
44%
HDFC Bank
Other
30%

Interpretation:
The above diagram shows the no. of customer of ICICI & HDFC Bank using the E-
Banking services. The no. of customer in ICICI Bank is 44% it is more than the no. of
customer in HDFC Bank. The no. of customer in HDFC Bank is 30% it is less than the
ICICI Bank. In the diagram there are some response of customer who’s using the E-
Banking services from other bank also. The no. of customer using the E-Banking
services from other bank is 26%.

3. Where do you hear about Internet banking services?

Sources No. of Respondent

Mass media (television, 9
newspaper, radio)
Bank directly 41
An SMS from mobile operator 7
Friends or family 13

70
 No. of Respondent

Mass media (television,

19% 13% newspaper, radio)
Bank directly
10%
An SMS from mobile
operator
58%
Friends or family

Interpretation:
The diagrams interpreted the sources of information where the bank customer get to
know about the E-banking services. There are various sources such as Mass Media,
Bank directly, an sms from bank directly & Friends or Family. The no. of customer
getting the information from Mass media (television, newspaper, radio) is 13%. The
no. of customer getting the information from Bank directly is 58%. The no. of customer
getting the information from an mobile operator through an sms is 10% and the no. of
customer getting the information from friends & family is 18%.

4. Why you have choosed this bank?

Reasons No. of Respondent

Services is good 32
They provide security 29
Cheaper services fees 1
Other 8

71
 1% Services is good
11%

They provide
security
46%

Cheaper services
fees
42%

Other

Interpretation:
The diagram indicates the reasons behind choosing a particular bank by the customer.
There are several reasons for selecting a specific bank. The no. of customer is 46% who
think that their bank provide a good services. The no. of customer is 42% who think
that their bank provide proper security. The no. of customer is 1% who think that their
bank offered a cheaper service fee. The no. of customer is 11% who’s reason for
selecting their bank is other.

5. Which type of E-banking services you want to use?

( You can choose more than 1)

Services want to uses by the customer No. of Respondent

Transfer fund online 31 (44%)
Online purchase and payment 48 (69%)
Regular checking of bank statement 22 (31%)
Request any card or cheque book 8 (11%)
service
Other 11 (16%)

Total Respondents: 70 ( 31*100/70 = 44%)……

72
 (44%)

(69%)

(31%)

(11%)

(16%)

Interpretation:
The interpretation of the above graph is, As shown in the graph their are different no.
customer want to use different services through the E-banking. The no. of customer
want to transfer fund online through the E-Banking services is 44%. The no. of
customer want to purchase & payment online through the E-Banking services is 69%.
The no. of customer want to check their bank statement regularly through the E-
Banking services is 31%. The no. of customer want to request any card or cheque
book through the E-Banking services is11%. The no. of customer want to use any
other services through the E-Banking services is 16%.

6.-Manual banking is more convenient than Internet banking?

Options No. of Respondent

Strongly agree 12
Agree 38
Neutral 15
Disagree 3
Strongly disagree 2

73
 3%
Strongly agree
4%

Agree 17%

Neutral 22%

Disagree

Strongly disagree

54%

Interpretation:
In the above diagram we get to know about the customer view related the Manual
banking & Internet banking. The customer response related to it different, the no. of
customer who strongly agree with the point is 17%. The no. of customer who agree
with the point is 54%. The no. of customer who’s in-between situation (Neutral) with
the point is 22%. The no. of customer who disagree & strongly disagree with the point
is same 4%.

7. State the Degree Of Confidence On E-Banking?

Options No. of Respondent

Little 15
Some 31
Not at all 2
High 17
Very high 5

74
 Little
7%
22% Some
24%
Not at all

3% High
44%
Very high

Interpretation:
The above diagram represent the degree of confidence of customer on E-banking
services. As shown on the above customer have some degree of confidence on E-
banking services. The no. customer have different opinion, confidence on E-banking
services. There are 22% of customer who having a little degree of confidence on E –
banking services. There are 44% of customer who having a some of degree confidence
on E –banking services. There are 3% no. of customer who doesn’t have not at all a
degree of confidence on E –banking services. There are 24% of customer who having
a high degree of confidence on E –banking services. There are 7% of customer who
having a very high degree of confidence on E –banking services.

8. To What Extent you are Satisfied with your banks "E- Banking services"?

Options No. of Respondent

Highly satisfied 19
Satisfied 31
Neutral 18
Dissatisfied 2

75
 3%
Highly satisfied
27%
26%
Satisfied

Neutral

Dissatisfied

44%

Interpretation:
The above diagram shows the satisfaction level of customer on E-banking services
provided by their banks. The customers which are highly satisfied through the E-
banking services is 27%. and those are just satisfied through the E-banking services is
44%. The customer who having neutral opinion on it is 26%. The customer are
dissatisfied through the E-banking services is 3%.

9. Which of the following benefits you get, while using E- Banking services? (can
choose more than one option)

Benefits No. of Respondent Percentage

Time saving 51 73%
Less expensive 35
50%
Easy fund transfer 28
40%
Easy processing 16
23%

76
 (73%)

(50%)

(40%)

(23%)

Interpretation:
The above diagram represents the some of the benefits getting by the customer while
using E-banking services. The following are the benefits getting through E -banking
Time savings, Less expensive, Easy fund transfer, Easy processing. There are different
respondent we getting in our survey, There are 73% of customer get the benefits of
Time saving through E-banking services. There are 50% of customer get the benefits
of Less expensive through E-banking services. There are 40% of customer get the
benefits of Easy fund transfer through E-banking services & 23% of customer get the
benefits of Easy processing through E-banking services.

10. For what purpose do you use Internet Banking? (can choose more than one
option )

Purpose No. of Respondent Percentage

Mobile phone bill 38 54%
Utility (electricity, water) 39 56%
School fees 21 30%
Goods for home 25 36%
Goods for work 15 21%
Other 13 19%

77
 Other 19%
13

Goods for work 21%

15

Goods for home 36%

25

School fees 30%

21

Utility (electricity, water) 56%

39

Mobile phone bill 54%

38

0 5 10 15 20 25 30 35 40 45

Utility
Mobile School Goods for Goods for
(electricit Other
phone bill fees home work
y, water)
Percentage 54% 56% 30% 36% 21% 19%
No. of Respondent 38 39 21 25 15 13
Percentage No. of Respondent

Interpretation:
The diagram shown the purpose of customer for using the e-banking services. There
are 54% of customer use the E-banking services to pay their mobile phone bill. There
are 56% % of customer use the E-banking services to pay their utility (electricity, water
bill). There are 30% of customer use the E-banking services to pay their school fees of
their children & 36 % of customer use the E-banking services to get the goods for their
home. The 21% of customer use the E-banking services to get the goods for their work.
The 19% no. of customer use the E-banking services for their other purpose.

78
11. Are you satisfied with the number of services offered by your bank on Online
Banking platforms?

Option No. of Respondent

Always 27
Sometime 41
Never 2

3%

Always

38%
Sometime

59%
Never

Interpretation:
The diagram represents the satisfaction of the customer on E-banking services of their
respective bank. The 38% 0f respondents are always satisfied with the number of
services offered by their bank on Online Banking platforms. The 59% of respondents
are satisfied sometime with the number of services offered by their bank on Online
Banking platforms. The 3% are never satisfied with the number of services offered by
their bank on Online Banking platforms.

79
12. Do you feel secure while making payment through E- Banking?

Options No. of Respondent

Not at all 3
Little 42
Somewhat 11
Very Much 14

20% 4% Not at all

Little

16%
Somewhat
60%

Very Much

Interpretation:
The diagram represent the opinion of customer on E-banking security while making
payment or transferring any fund. Only 4% customers not at all have faith on making
payment through E-banking. The 60% of customers have a little faith on making
payment on E-banking platform. The 16% customers are somewhat trusting on payment
through E-banking services. The 20% customers are very much trust on their banks E-
banking payment method.

80
13. Do you think using the internet for banking would make your life easier?

Options No. of Respondent

Very likely 24
Somewhat likely 31
Neither likely nor Unlikely 12
Very unlikely 3

5% Very likely
17%

34% Somewhat
likely

Neither likely
nor Unlikely

Very unlikely

44%

Interpretation:
The diagrams interpreted that, the thinking of consumer for using internet banking can
make their life better. The 34% of customers thinks that the internet is beneficial for
banking. The 44% of customers believe that there are some benefit to use internet for
banking. The 17% customers select the neutral option to it. Only 5% customers don’t
think that through the internet the banking would be easier.

81
14. Which of the offers do you get by your bank while using E- Banking? (can
choose more than one option)

Options No. of Respondent percentage

Cashback 37 53%
Discount 29 41%
Gift – Voucher 33 47%
Free shipping 17 24%

24%
Free shipping 17

47%
Gift – Voucher 33

41%
Discount 29

53%
Cashback 37

0 5 10 15 20 25 30 35 40

Gift –
Cashback Discount Free shipping
Voucher
Percentage 53% 41% 47% 24%
No. of Respondent 37 29 33 17

Percentage No. of Respondent

Interpretation:
The above diagram interpret the offers getting by the customer for using E-banking.
There are different offers that any one can get for using internet banking. Such as
Cashback, discount, Gift- vouchers, Free shipping etc. The 53% customers got the
cashback offer for using the E -banking. The 41% customers got the discount offer for
using the E -banking. The 47% customers got the Gift – vouchers for using the E -
banking. The 24% customers get the free shipping for using the E -banking.

82
 CHAPTER- 5
CONCLUSION AND SUGGETIONS

83
5.1 Conclusions
In a country like India, there is a need for providing better & customized services to
customer. Bank must be concerned about the attitudes of customers with regards to
acceptance of internet banking. The importance of security and privacy for acceptance
of internet banking has been noted in many earlier studies and it was found that people
claim that they have knowledge about security issues but they have no clear idea about
all kinds of frauds. The present study shows that customers are more reluctant to accept
new technologies or methods that might contain very little risk. Hence, banks should
design a secure website to address security and trust issues.
The survey was conducted with 70 people of Mumbai (suburban area). So we can’t say
this is the real trends of net banking of whole in the country.
The study found that due to technological innovations and significant change in
demographic profile of customers, there is a huge market potential lying ahead.
People are not so confident enough to whether to depend completely on online banking.
There is hesitancy in their minds with regards to preference. So they use both the
services online and offline banking.
At the time of survey when I give questionnaires to people, they very casually fill it
without think of the depth of the study.
Another point is people are not show their personal data truly.
The study was conducted with the help of students, service holders and business men
etc.

The study reveals that ATM banking, Online banking, Online shopping, Online
recharge, etc are performed by so many respondent but it does not reflect that NEFT,
RTGS, or D MAT services are not performed by the people.

5.2 Findings
➢ One of the most important reasons for which people are opting the Private banks
is due to the e-banking services and inter connectivity between the branches.
➢ The people having high income are more concerned for the e-banking services
as compared to average and low income group.
➢ 70 people respond to this study. But out of which 3 people think that e-banking
is not necessary for the present scenario.

84
 ➢ 30 respondents in ICICI & 21 in HDFC are availing the e-banking services.
➢ Out of 70 31 are male and 39 are female. That’s mean the female are more
frequently uses the e- banking services. Working ladies and school-college
student having knowledge about the service.
➢ Most of the respondents who lies under 21-30 are using E-Banking services.
➢ Among 70 respondents most of them are either service holder or business
person. Because the service are more benefited towards this people.
➢ It is very interesting to see that 30 people have account in ICICI, & 21 in HDFC.
But ICICI has more customer than others.
➢ 24*7 Business hours is the main benefit which online banking users have seen
among other options.
➢ Most of the online banking users have a tendency to spend Rs.1000 or below
this amount in a single transaction.
➢ Users got excellent services from ATM BANKING, BALANCE ENQUIRY,
BILLS PAYMENT, ONLINE SHOPPING and ONLINE RECHARGE etc, and
other services have not excellent performance like that.
➢ Most of the users have no requirement for daily base transactions, they prefer
monthly base transactions.

➢ This study revealed that most of the users claim that they aware of security
threats and they took recommend steps to secure the net banking.
➢ People also claim that ATM SERVICE, BILL PAYMENT SERVICE,
INTERNET SECURITY SERVICE should be modified in near future. Some
people also want a customer feedback service.
➢ Moreover 18 people are highly satisfied with this services and 31 people are
satisfied and remain are not properly satisfied.

5.3 Suggestions
We can see the time is changing and we are now accepting technology but there is still
a lot of perceptual blocking which hampers the growth its normal tendency of
technology, that why the growth of internet banking is very primitive nature.

❖ Recommendations to banks:
➢ Banks should obey the RBI norms and provide facilities as per the norms. But
this are not completely followed by the banks. Some of our respondents

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 complained that their bank do not give feedback of online transaction in proper
times. If customers do not get proper feedback then their interest in online
services will be reduced. So bank should take proper steps to build their
feedback services.
➢ Internet banking facilities must be made available in all banks as well as in all
branches.
➢ Link failure is a big problem specially in HDFC bank and for this reason the
important business deal have been hampered so bank should modified there
software immediately
➢ Now ICICI and HDFC banks install automated balance update machine to avoid
customer harassment.
➢ To prevent online banking from remaining customer to prompt this services
through advertising co.
➢ After repairing this basic deficiency bank must ensure that their service is
competitive.
➢ Bank should not take more charge from their customer
➢ The users of e-banking services is still not up to the mark as expected by the
banks. This require awareness among the customer about benefit of this service.
The customer should be educated about the benefit of this services, this would
help the bank in a long run.
➢ Fair dealing with the customers is more preferable. The banks staff should be
co-operative, friendly and must be capable to understand the problems of the
customers.
➢ Bank should give proper training to customers to use net banking.
➢ Bank should always update the security systems and create a trust in the mind
of customers towards security of their accounts.
➢ Banks should make their sites more user friendly, customers should be
motivated to use internet banking facilities more.
➢ Banks are now using two factor authentication i.e. password and OTP but they
should improve that and using three factor authentication because hackers
sometimes break the two factor authentication system.

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❖ Recommendations to users:
➢ Use Anti-virus and maintain the integrity of your computer / mobile phones by
scanning regularly for computer viruses.
➢ If using the same computer or mobile for online banking, e-mail and web
browsing, always LOG OFF banking sessions before checking e-mail or web
browsing, computer viruses today are capable of installing themselves through
e-mail links as well as web sites where just passively moving your mouse over
an image could be enough to install a script that grabs your cached online
banking credentials (user ID and password) and allows a criminal to steal money
from your account. Always keep your anti-virus software up-to-date.
➢ Always use original operating system with original commercial anti-virus
which could be better than crack version or free sample.
➢ If you are using computer with multiple operating system (e.g. Ubuntu, Dos or
Windows) you must separately install anti-virus for each O.S.
➢ Do not respond to e – mails requesting account information, account verification
or banking access credentials such as usernames, passwords, PIN codes and
similar information.
➢ Clear a browser cache before starting an online banking session to eliminate
copies of web pages that have been stored on the hard disk.
➢ Verify the secure session (https or not https) in the browser.
➢ Avoid using automatic login features that save your personal details.
➢ Create a strong password but that will be easy to remember without writing it
down anywhere.
➢ Frequently change your password combination for better protection.
➢ Last but not the least, some of our respondents share that they received a phone
call by which a male or female gave a news that the respondents won lottery
worth 25 lacs or a big amount from either their mobile company or somewhere
else. But the fact is this type of caller want customers bank detail or ATM card
details to send a huge money and someone were trapped by it and told them
their very confidential information and then scam happened when customers
want to check the bank balance they see there is no balance at all and this is
very shocking news to them. So do not believe such phone call or e-mail
otherwise you will be cheated.

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 ANNEXURE

QUESTIONARE:

E- BANKING SURVEY

Email:
_________________
Name:
__________________

Age Group:
• Below 20
• 21-30
• 31-40
• 41-50
• More than 50

1. Do you think that E-Banking services is necessary in present scenario?

• Yes
• No

2. From which bank you are availing the E- Banking services?

• ICICI Bank
• HDFC Bank
• Other

3. Where do you hear about Internet banking services?

• Mass Media (Television, Newspaper, Radio)
• Bank directly
• An SMS from Mobile operator
• Friends & Family

4. Why you have choosed this bank?

• Services is good
• They provide security
• Cheaper services fees
• Other

5. Which type of E – Banking services you want to use?

▪ Transfer fund online
▪ Online purchase and payment

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 ▪ Regular checking of bank statement
▪ Request any card or cheque book service
▪ Other

6. Manual banking is more convenient than Internet banking?

• Strongly Agree
• Agree
• Neutral
• Disagree
• Strongly Disagree

7. State the degree of Confidence on E – Banking?

• Little
• Some
• Not at all
• High
• Very high

8. To what extent you are satisfied with your banks “E –Banking services”?
• Highly satisfied
• Satisfied
• Neutral
• Dissatisfied

9. Which of the following benefits you get, while using E –banking services? (can choose
more than one option)
▪ Time saving
▪ Less expensive
▪ Easy fund transfer
▪ Easy processing

10. For what purpose do you use Internet banking? (can choose more than one option)
▪ Mobile phone bill
▪ Utility (electricity, water)
▪ School fees
▪ Goods for home
▪ Goods for work
▪ Other

11. Are you satisfied with the number of services offered by your bank on Online
Banking platforms?

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 • Always
• Sometime
• Never

12. Do you feel secure while making payment through E – Banking?

• Not at all
• A little
• Somewhat
• Very much

13. Do you think using the internet for banking would make your life easier?
• Very likely
• Somewhat likely
• Neither likely nor unlikely
• Very unlikely

14. Which of the offers do you get by your bank while using E – banking? (can choose
more than one option )
▪ Cash back
▪ Discount
▪ Gift – vouchers
▪ Free shipping

BIBLIOGRAPHY
WEBSITES:
www.google.com
www.wikipedia.com
www.rbi.org.in
www.investopedia.com
www.scribd.com
www.hdfc.com
www.icici.com
www.comparisonbetween.com
www.slideshare.com

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