Dr. B. K. Agarwal Res.

: Prem Kunj, 1, New

Associate Professor, Mohanpuri, Meerut (U.P.)
Faculty of Comm. & Bus. Adm. Mob. : 9412201883, 9997106033
D. N. (PG) College, Meerut (U.P.) E-Mil : [email protected]

Dated : ........................

CERTIFICATE
This is to certify that the work embodied in this thesis entitled
“Impact of Digitization on Indian Banking System with Special
Reference to SBI & ICICI Bank” has been carried out by Mr. Gaurav
Som under my supervision and guidance.
No part of this thesis has been submitted for any other degree or diploma.
The work included in this thesis is original and is own work of the
candidate.
The candidate has put the required attendance as per the ordinance of
Ch. Charan Singh University, Meerut.

(Gaurav Som) (Dr. B. K. Agarwal)

Research Scholar Supervisor
 PREFACE
“An Internet-based financial institution that offers deposit and withdrawal
services, as well as other banking services through ATMs or other
devices, with no physical entry points.”

“Digital banking is a type of banking where financial and banking

services are accessible through the World Wide Web. This is called
digital banking because digital banking has no limits and only exists on
the Internet. With the advent of online cafes and kiosks in various cities,
Internet access will become a problem. Virtual banking is the
development of e-banking and is a rapidly growing popularity of e-
banking. This is not limited to a specific PC, as the customer does not
need to install any financial software on the computer to conduct Internet
banking. Instead of establishing a direct connection between the client
computer and the bank via modem, the Internet is used as a distribution
channel and communication with the bank. This means that virtual
banking can be a cost-effective and convenient form of banking for many
customers. It can be expected to receive its main benefits from retail
services such as short-term lending, deposits, cash management,
including card payments, electronic turnover payments, prepaid
electricity payments, insurance, housing, etc. In these cases, traditional
manual transactions within the bank are replaced by online transactions
made by the customers themselves”.

“Digital banking is a system that provides banking services via the

Internet without the need for space and time. ‘Digital banking’ appeared
in the late 1990s. Banks have also begun to provide their customers with
access to their accounts in the Internet environment, using various
security systems in the development process. A banking customer can
access their accounts securely using the available security systems and
independently perform almost all the necessary functions in a secure
Internet environment created between him and the bank. The term "digital
banking" is a term that indicates the maximum state of technological
equilibrium in the banking sector. This is the time when banking as an
industry goes beyond the mere physical presence and size of the home
office as a measure of the ability - art and science to be everywhere at the
same time. As banks get bigger and more digital, their markets will
become more diffuse, harder to identify and less recognizable by regions
or communities”.

“Efficient digital banking reduces transaction costs and provides

information that affects the efficiency and effectiveness of a transaction.
It has many advantages such as affordable price, time saving, user
friendliness, anytime, anywhere banking services, security, convenience,
utility, environmental protection compared to Real Banking. Thus, the
concept of banking anytime anywhere was introduced via the Internet.
The online billing service provided by banks goes beyond the onerous
task of a person visiting multiple sites to pay their bills for services such
as telephone, water and electricity. Directly from his office, he can pay
his regular monthly bills, such as telephone, electricity, cell phone,
insurance and more. No more missed deadlines. There is no longer an
interest loss, he can plan his accounts in advance and thus avoid losing
time accounts, as well as earn extra interest on his money. The efficiency
of digital banks has allowed the customer to invest in mutual funds and
other financial products. Replenishment of check book, draft / payment
order, opening a fixed deposit account, opening a letter of credit, the
same ease when investing in mutual funds - carefree and paperless
investment is provided to the customer using digital banking”.
The study has been divided into seven chapters. The first chapter given an
overview of digital banking in India. The second chapter deals with the
review of literature available for the research study. The third chapter
deals with research methodology and research hypothesis was used for
the study. The fourth chapter describes the methods and initiatives taken
by banks for digital banking. Chapter fifth describes the analysis and
interpretation of data regarding bank customers. While the sixth chapter
describes the analysis and interpretation of data regarding employees of
SBI & ICICI Bank and in seventh chapter explain the findings &
conclusions draw from the study and given some suggestions for future
development of banking services for customers and bank employees.

(Gaurav Som)
Research Scholar
 ACKNOWLEDGEMENT
This thesis is incomplete without thanking a few people who supported
me thoroughly in carrying out this research work successfully.
First and foremost, thanks to the Almighty God, for his blessing’s without
which my research work would have not seen the light the day.
I am also express my gratitude towards Dr. B. K. Agarwal, Associate
Professors, Faculty of Commerce and Business Administration, D. N.
(PG) College, Meerut the guide and the mentor of my research who
impacted the positively direction of my research, its methodology, and its
analysis. I am indebted to him and sincerely thank him for his continued
support and his ability to be a source of guidance throughout my research
work right from the initial stage of synopsis to the final submission of the
thesis. I am amazed at his capacity to influence the course of my thinking
in a most unconventional manner. His suggestions were apt, concise and
crisp providing an ample room for personal creativity. I was greatly
benefited from his deep understanding of the subject and the clarity of
vision. While I deem it important to share the credit for the strength of
this thesis, only I should be held solely responsible for any further error
of facts or judgement.
I am equally grateful to Prof. (Dr) Ajai Kumar, Principal, D. N. College,
Meerut; Dr. B. S. Yadav, Ex-Principal, D. N. College, Meerut; Dr. Sudhir
Kumar, Ex-Dean & Convenor, Faculty of Commerce & Business
Administration., C.C.S. University, Meerut and Dr. R. K. Singhal,
Ex-HOD & Associate Professor, Faculty of Commerce & Business
Administration, D. N. College, Meerut for extending their full hearted
co-operation towards.
I am also highly grateful towards Dr. S. K. Sharma, H.O.D. & Associate
Professor, Faculty of Commerce & Business Administration, D. N.
College, Meerut, Dr. Himanshu Agarwal, Dr. Deepak Kumar & Mr. C. K.
Singh, Associate Professors, faculty of Commerce and Business
Administration, D. N. College, Meerut for supporting my educational
endeavours.
I would also like to thank all the selected respondents of selected branch
of SBI & ICICI Bank in NCR, whose responses formed the basis of this
research work. They all were very enthusiastic, co-operative and
responsive. I wish them happiness in life and bright future ahead.
My family and friends are an equal source of love and joy in my
life. I wish to convey a profound thanks to my parents Shri. Jagdish Singh
Som and Smt. Latesh Som, my father-in-law Shri. Lokesh Tomar, my
mother-in-law Smt. Shardha and my sister Ms. Pooja for their support,
co-operation and encouragement, especially during those times when this
stupendous task of research work looked like a distant dream. I thank
them for their solidarity.
I would like to extend a special thanks to my loving wife Ms. Anshu Som
who cheered me up throughout this journey and helped me to conduct this
research work. I also dedicate this Ph.D. thesis to my lovely son Vedansh
Som & Ayansh Som, who is the reason of pride and joy in my life.
I would also like to thank the librarian and library staff of several
institutes who allowed me to use the literature and various other relevant
study materials. Here I will like to mention the name of a few important
libraries i.e., D.N. (PG) College, Meerut; C.C.S. University of Meerut;
Ratan Tata Library, University of Delhi and Ministry of Commerce and
Trade, New Delhi.

(Gaurav Som)
Research Scholar
 CONTENTS
Supervisor’s Certificate
Plagiarism Certificate
Preface
Acknowledgement
Chapter 1 An Overview of Digital Banking in India 1-37
1.1 An Overview of Banking
1.2 An Overview of Information Technology
1.3 Importance of Digital Banking
1.4 Present Scenario of Indian Banking
1.5 Overview of Digital Banking
1.6 Role of ICT in Digital Banking
1.7 Kinds of Digital Fund Transfer in India
1.8 Methods of Digital Banking
1.9 Customer Satisfaction with Digital
Banking
Chapter-2 Review of Literature 38-72
2.1 Review of Literature on Banking
2.2 Review of Literatures on Internet
Banking
2.3 Review of Literatures on Digital Banking
2.4 Research Gap
Chapter-3 Research Methodology 73-92
3.1 Introduction
3.2 Statement of Research Problem
3.3 Objectives of the Study
 3.4 Research Hypothesis
3.5 Research Design
3.6 Sampling Procedure & Collection of Data
3.7 Limitation of the Study
Chapter-4 Methods & Initiatives taken by Banks for 93-108
Digital Banking
4.1 Methods of Digital Banking
4.2 Services of Digital Banking
4.3 Initiatives taken by Banks for Digital
Banking
4.4 SWOT Analysis of Digital Banking
4.5 Major Challenges in Digital Banking
4.6 Types of Digital Banking
4.7 Models of Digital Banking
Chapter-5 Analysis and Interpretation of Data 109-167
Regarding Bank Customers
5.1 Introduction
5.2 Reliability for Data Collection
5.3 Analysis of Primary Data: Part ‘A’
5.4 Analysis of Primary Data: Part ‘B’
5.5 Analysis of Primary Data: Part ‘C’
5.6 Analysis of Primary Data: Part ‘D’
5.7 A Study of Demographic Variables and
Satisfaction of Bank Customer
5.8 A Study of Demographic Variables and
Challenges of Digital Banking
5.9 Conclusion
Chapter-6 Analysis and Interpretation of Data 168-205
Regarding Employees of SBI & ICICI Bank
6.1 Introduction
6.2 Reliability for Data Collected
6.3 Data Analysis of Part ‘A’
6.4 Data Analysis of Part ‘B’
6.5 Data Analysis of Part ‘C’
6.6 Data Analysis of Part ‘D’
6.7 Data Analysis of Demographic Variables
of Bank Employees
6.8 Conclusion
Chapter-7 Findings, Conclusion and Suggestions 206-237
7.1 Introduction
7.2 Summary of the Work Done
7.3 Findings of Bank Customers
7.4 Findings of Bank Employees
7.5 Conclusions Drawn from the Study
7.6 Suggestions for Future Development
7.7 Scope of the Study

● Bibliography 238-256

● Questionnaire i-xiv
 LIST OF TABLES
Table Page
Particulars .
No. No.
5.1 Case Processing Summary 113
5.2 Reliability Statistics 113
5.3 Statistics of the Demographic Profile of Respondents 114
5.4 Name & Type of Selected Banks 115
5.5 Age wise Classification of Respondents 116
5.6 Gender wise Classification of Respondents 117
5.7 Education of Selected Respondents 118
5.8 Marital Status of the Respondents 119
5.9 Profession wise Classification of Respondents 120
5.10 Number of User of Digital Banking 121
5.11 Number of Internet users in Selected Customers 122
5.12 Bank Account Holder using www Browser 123
5.13 Banks are Technologically Advanced 124
5.14 E-Banking Facilities Provided by Banks 125
5.15 How Long do Log on to Bank Website 126
5.16 Type of E-Banking over the Internet 127
5.17 Study on the basis of Internet Banking Features 128
5.18 Table of Difficulties onto Login Bank Website 129
5.19 Table of Information on the Website updated often enough 130
5.20 Table of Services being Offered Adequate 131
5.21 Table Showing Internet Banking is Convenient 132
5.22 Table Presenting of Awareness about 24 hrs Online ATM 133
Services
5.23 Table Showing Frequently use of ATM per month 134
5.24 Table Showing the Awareness about the Telephone Banking 135
5.25 Table Showing the using Telephone Banking Services 136
5.26 Using Cell Phone for Banking Transactions 137
5.27 Table Showing the Mobile Banking Service Provider 138
5.28 Table of Mobile Banking Service are Addition 139
5.29 Frequency Table of Bills Paying by Mobile 140
5.30 Table Showing of Visiting Bank Branch per month 141
5.31 Table Showing the Reasons to Visiting Bank Branch 142
5.32 Table Showing methods of Payment use by the Customer 143
5.33 Table Showing the Frequency of Sending and Receiving the 144
Money
5.34 Table Showing the entity to which they Transfer the Funds 145
5.35 Classification of Mode of Payment 146
5.36 Table Showing Preferred Communication with Financial 147
Advisers
5.37 Descriptive Statistics of Digital Technology usage by the 149
Customer
5.38 Communalities Table for Technology usage by the Bank 150
Customers
5.39 Total Variance for Technology usage by the Bank Customers 151
5.40 Component Matrixa for Technology usage by the customers 152
5.41 Descriptive Statistics of Digital Technology usage by Bank 155
Customers
in SBI and ICICI Banks
5.42 Test of Homogeneity of Variances of Technology usage by 156
Customers
5.43 One Way ANOVA for Type of Banks (i.e., Public & Pvt. Sector 157
Banks) and Technology usage by Bank Customers
5.44 Group Statistics of Type of Banks and Challenges with Digital 159
Banking
5.45 Group Statistics of type of Independent Samples Test of type of 159
Banks (Public & Pvt. Banks)
5.46 Group Statistics of Male and Female Respondents 160
5.47 Group Statistics of type of Independent Samples Test of Gender 161
5.48 Group Statistics of Marital Status 162
5.48 Group Statistics of type of Independent Samples Test of 162
Marital
6.1 Case Processing Summary 171
6.2 Case Processing Summary 172
6.3 Descriptive Statistics of the Demographic Profile of Bank 173
Employees
6.4 Name of Selected Bank 174
6.5 Type of Selected Bank 175
6.6 Age wise Classification of Managers and Employees of Selected 176
Banks
6.7 Gender wise Classification of Respondents 178
6.8 Marital Status of the Respondents 178
6.9 Classification of Annual Income of the Respondents 179
6.10 Educational Qualification of the Respondents 180
6.11 Job Category of Respondents 181
6.12 Classification on the basis of Job Experience 182
6.13 Table Showing the Individuals Visit the Bank Branch in a Day 183
6.14 Time Span of Digital Banking 184
6.15 Frequency of updating Website by the Banks 185
6.16 Table Showing the Reasons the Behind Introducing the Digital 186
Banking
6.17 Table Showing Potential Customer Mindful on the NET 187
6.18 One-Sample Test Satisfaction of Bank Customers 188
6.19 Table Showing the Digital Channels do Customers Support 190
6.20 Security Measures of Digital Banking 191
6.21 How often to the Record Digital Fraud 192
6.22 How to Reduce Digital Fraud 193
6.23 Bank Rating on the basis of Level of Investment 194
6.24 Rate of Management Involvement in Digital Banking 195
6.25 Table of Descriptive Statistics 196
6.26 Table of Levine’s Test of equality of Error Variances 197
6.27 Table of Tests of between Subjects Effects 197
6.28 Table of Group Statistics of SBI and ICICI Bank 198
6.29 Table of Independent Samples Test of SBI and ICICI Banks 199
6.30 Table of Group Statistics of Male and Female Employees 200
6.31 Table of Independent Samples Test of Male and Female 200
Employees