Proforma 1:

Project Report
(Submitted for the Degree of B.Com. Honours in Accounting &Finance under
the University of Calcutta)

TITTLE OF THE PROJECT

Online Banking in India

SUBMITTED BY

Name of the Candidate AMRITAKHATICK

Registration No: 047-1212-0111-18
Name of the College: SIVANATH SASTRI COLLEGE
CU Roll No: 181047-11-0023
College roll no- 703
Paper code: cc.6.1 ch

Supervised by

Name of the supervisor: PROF. MADHUMANTI GHOSH

Name of the College : SIVANATH SASTRI COLLEGE

Month & year of submission

July 2021
Proforma 2:

Supervisor’s Certificate

This is to certify that (AMRITA KHATICK), a student of B. Com 6th Semester Honours in
Accounting & Finance of SIVANATH SASTRI COLLEGE under the University of Calcutta
has worked under my supervision and guidance for his Project Work and prepared a Project
Report with the title (ONLINE BANKING IN INDIA)
The project report, which she is submitting, is her genuine and original work to the best of
my knowledge.

Place: Kolkata Signature:

Date: Name: prof. MadhuManti Ghosh
Designation: Faculty Of Commerce
Name of the College: Sivanath Sastri College

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Proforma 3:

Student’s Declaration
I hereby declare that the Project Work with (Online Banking In India) submitted by me for
the partial fulfilment of the degree of B.Com. Honour’s in Accounting &Finance under the
University of Calcutta is my original work and has not been submitted earlier to any other
University/Institution for the fulfilment of the requirement for any course of study.

I also declare that no chapter of this manuscript in whole or in part has been incorporated in
this report from any earlier work done by others or by me. However, extracts of any
literature which has been used for this report has been duly acknowledged providing details
of such literature in the references.

Place: Kolkata Signature:

Date: Name: Amrita Khatick
C.U. Registration NO:047-1212-0111-18
Roll. No: 181047-11-0023
Name of the College: Sivanath Sastri College

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 ACKNOWLEDGEMENT

This report is an outstanding prospect to convey my gratefulness to those many people

whose timely help and guidance went a long way in finishing this project work from
commencement to achievement. I would like to express my sincere thanks to
Mrs.Madhumanti Ghosh

This project could not be completed without the guidance and support of Our
Professor. Last but not least would like to thank my friends, family members and all
those people who helped me for the completion and deeper understanding of the
concept of performance appraisal. Working on this project to be an enlightening
experience for me.

4
 ABSTRACT

Online banking is a process that has evolved because of the development of technology over
the years. So before going into detail on the online we should have a overview of it birth.
To study the challenges associated with the growth of online banking.

OBJECTIVES:

• To understand the scope and the infrastructure that is there in India for its
development.
• To study the challenges associated with the growth of online banking.

METHODOLOGY:

By questioning various people (friends, relative, family member, etc.) having bank
accounts and by preparing questionnaires.

CONCLUSION:
• People in India are not aware of the full utility of online banking and the
services that can be availed of in online banking.
• Most of the Indian populations are salaries employees who do not have that
volume of transaction that can be used for online transaction.

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6
 TABLE OF THE CONTENT
TOPIC PAGE
SL.NO NO.
I CHAPTER 1-INTRODUCTION 8

1.1 Background of the topic 8-9

1.2 Literature Review 9-11

1.3 Need of the Study 11

1.4 Objective of Study 12

1.5 Methodology Used 12

1.6 Limitation of the Study 12

1.7 Chapter Planning 12-13

II CHAPTER 2- CONCEPTUAL FRAMEWORK 13

2.1 National scenario of Online Banking 15-18

2.2 Different types of online banking 18-20

2.3 International scenario of Online Banking 21
III CHAPTER 3- PRESENTATION OF DATA AND
ANALYSIS 22-46

IV CHAPTER 4- CONCLUSION AND

RECOMMENDATIONS 47
4.1 Conclusion 47

4.2 Recommendations 47
48
V BIBLIOGRAPHY

VII QUESTIONNAIRE 49-51

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 CHAPTER – 1
INTRODUCTION

1.1. BACKGROUND OF THE TOPIC: -Online banking is a process that has

evolved because of the development of technology over the years. So before
going into detail on the online we should have a overview of it birth.

WHAT IS ONLINE BANKING?

If you're like most people, you've heard a lot about online banking but probably
haven't tried it yourself. You still pay your bills by mail and deposit checks at your
bank branch, much the way your parents did. You might shop online for a loan, life
insurance or a home mortgage, but when it comes time to commit, you feel more
comfortable working with your banker or an agent you know and trust.
Online banking isn't out to change your money habits. Instead, it uses today's
computer technology to give you the option of bypassing the time-consuming, paper-
based aspects of traditional banking in order to manage your finances more quickly
and efficiently.
The advent of the Internet and the popularity of personal computers presented both
an opportunity and a challenge for the banking industry.
For years, financial institutions have used powerful computer networks to automate
millions of daily transactions; today, often the only paper record is the customer's
receipt at the point of sale. Now that its customers are connected to the Internet via
personal computers, banks envision similar economic advantages by adapting those
same internal electronic processes to home use.
Today, most large national banks, many regional banks and even smaller banks and
credit unions offer some form of online banking, variously known as PC banking,
home banking, electronic banking or Internet banking. Those that do are sometimes
referred to as "brick-to-click" banks, both to distinguish them from brick-and-mortar
banks that have yet to offer online banking, as well as from online or "virtual" banks
that have no physical branches or tellers whatsoever. The challenge for the banking
industry has been to design this new service channel in such a way that its customers
will readily learn to use and trust it. After all, banks have spent generations earning
our trust; they aren't about to risk that on a Web site that is frustrating, confusing or
less than secure.

HISTORY: -

The precursor for the modern home online banking service were the distance banking
Service over electronic media from the early 1980s. The term online banking became
popular in the last 80s and referred to the use of a terminal, keyboard and monitor to
access the banking system using a phone line. “Home banking” can also refer to the
use of a numeric keypad to send tones down a phone line with instructions to the bank.
8
Online service started in New Work in 1981. When four of the city’s major bank like
city bank, Mhase ManhattenP , chemical and manufacturer over offered the home
banking service using video tax system become of the commercial failure of video tax
these banking service never become popular except in France where the use of video
tax was subsidized by the telecom provider and the UK, where the prirtal system was
used.
The UK’s first home online banking service was set up by Scotland and for custom era
of the Nottingham building society in 1983.The system used was based on the UK’s
Prestel system and used a computer, such as the BBC micro or keyboard connected to
the telephone system and TV set.
The system known as home link allowed online viewing of statements, bank Transfers
and bill payment.
Today many banks are internet only banks. Unlike their predecessors ‘these Internet
only banks do not maintain brick and nortarbank branches instead they differentiate
themselves by offering better interest rates and more extensive online Bank features.

1.2. LITERATURE REVIEW

• Provide an overview and a critical evaluation of a body of literature relating to a

research topic or a research problem.
• Analysis a body of literature in order to classify it by themes or categories,
rather than simply discussing individual works one after another.
• Presents the research and ideas of the field rather than each individual work or
author by itself.

A literature review often forms part of a larger research project, such as within a thesis
(or major paper), or it may be an independent written work, such as a synthesis paper.

Rakesh H M &Ramya T J (2014): - In their research paper titled “A study on Factors

Influencing Consumer Adoption of Internet Banking in India” tried to examine the
factors that influence internet banking adoption. Using PLS, a model is successfully
proved, and it is found that internet banking is influenced by it perceived reliability,
Perceived ease of use and Perceived usefulness. In the marketing process of internet
banking services marketing expert should emphasize these benefits its adoption
provides and awareness can also be improved to attract consumers attention to internet
banking services.

Dorra Gherib (2014): - In their research paper titled “Adoption and diffusion of
internet banking: case of Tunisian banking sector “tried to observe the embracing of
Internet Banking industry. The aim is to make out factors that accelerate or slow down
the implementation process. The literature review enables identifying a set of
variables: organisation, individual and structural. The research methodology used
within this study is the case study. Five case studies in banking sector were executed.
The sample is shaped by banks that adopted the Internet Banking as a modernization.
The analysis allowed the willpower of the related dimensions of the aforesaid
9
variables (competition, perceived benefits, and organised compatibility). Indeed, this
research has exposed some variables some variables that hamper the implementation
of technological innovations.

Ms Nisha Malik & Mr Prakash Saini (2013): - In their research titled on “Private
Sector Banks Services Quality and Customer Satisfaction “A Empirical Study two
Private Sector Banks”. This research paper is an effort to examine the
relationship between service quality and customer satisfaction of two private sector
bank of India. Service quality has been described as a form of attitude that results from
the comparison of prospect with recital (Cronin and Taylor,1992, Parasuraman et al,
1985, Gronroos 1982) argued that customers, while evaluating the quality receive.
Since financial products offered by various banks are similar by nature then why any
bank of product of any bank is preferred than others a matter of interest for

academician as well as banking industry. They may be difference between customer of

public and private sector banks, but why are two banks of one sector being preferred
differently by customers. This research study is an effort to find out the answer of
these questions.

Neeli Prameela, Dr. B. Abdul Azeem & K.V. Geetha Devi (2012): - This study is a
challenge to owing to the high costs occupied increasing the current client base, one of
the main goals of banks and other monetary services providers, which operate through
the internet , should be to develop customer allegiance in order to improve the results.
To achieve this aim, these companies face most imperative challenge in providing and
maintaining services quality. Services quality is an input of customer trust which
becomes satisfaction and lead to loyalty as an output. But the research in the
development of e-loyalty is scarce and partial. This paper attempts to accumulate
invented story in order to understand the overall structure of the formation of e-
loyalty. The literature reviewed provides underlying patterns of relationships between
e-banking loyalty and its influencing factors. Such understanding is relevant for
academicians and researchers for furthering the work in this field. The insights into the
previous studies, considered for this paper, are discussed and suggestion for future
research are provided.

Bindiya Tater, Manish Tanwar, and Krishna Murari (2011): - In their research titled on
“CUSTOMER ADOPTION OF BANKING TECHNOLOGY IN
PRIVATE BANKS OF INDIA”. This paper explores the perception of Indian
customers towards the use of technologies with respect to such factors as convenience,
privacy, security; ease of use, real time accessibility and accurate record of varied
transaction that enables customer’s adoption of Banking Technology. Other factors
such as slow transfer speed, technical failure, frauds and unawareness among customer
that make hindrance in adoption are also tested. The results show that demographic
variables such as gender qualification and income play a positive role in adoption of
banking technology. All the banks are using information technology as a strategic
vehicle to stay competitive against other players. There is no significant difference
between adoption rates of banking technologies by the customers of different private
10
banks. The paper also shows that banking technology helps in increasing customers
satisfaction, customer loyalty, improvised growth, and performance of the banks.

1.2. NEED FOR THE STUDY: -

As a small business owner, you ate likely to spend a good portion of your time in the
bank or doing bank – related activities to keep your business’s finances in order.
Banking can be time -consuming, but online banking makes it easier for entrepreneur
to handle most basic banking activities via a laptop or Internet- ready mobile device.
Taking advantages of online banking will allow you to maximize your time, and the
bank’s online security measures protect sensitive information.

No additional Fees

Business owners can access online accounts as often as needed without incurring
hidden fees. It’s free to sign up for an online banking accounts, and the privilege will
remain active as long as the account holder maintain an account with the bank.

Access from Anywhere

Online banking makes it easy to access your account information at anytime and from
anywhere, making banking possible while away on business, at odd hours or while out
of your bank’s region. All you need to access an online account is Internet access and
your username and password.

Organised Downloadable Reports

Most online banking services provide access to downloadable reports that can help
you reconcile your financial statements. These reports include your deposits, transfers,
ATM withdrawals and any bills you have paid using your online banking account.
Online banking can help you keep your business records organised or serve as
documentation for your bookkeeper or accountant. Some accounts also feature spend
analysers, so you can graphically see where your business’s money is going.

Schedule Regular Payments

Online banking also offers the freedom to schedule payments ahead of time. Rent,
salaries and other fixed payments, in any amount, can be set up through your online
banking account. These payments is automatically deducted in the amount you decide
on the date of your choice. Set up recurring or one-time payments to be mailed
directly to the payee electronically or via postal service by your bank without using paper
check or postage.

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 1.4. OBJECTIVE OF STUDY:

The main objective of this study was to understand the growth of the online banking
sector in India.

To study the opportunities for growth of online banking in India, since India is a very
fast developing country.

To study the challenges associated with the growth of online banking.

To understand the scope and the infrastructure that is there in India for its
development.

1.5. METHODOLOGY USED:

A. PRIMARY DATA: -

By questioning various people (friends, relative, family member, etc.) having bank
accounts and by preparing questionnaires
After the collection of data, it has been analyzed to find out the points to be worked
on. These points are further analyzed in detail and rearranged according to the
requirements, so that the required results can be obtained.

B. SAMPLE: -

In my project there were 25 people used as sample in the project from them the data
has been collected for the preparation of project. They have supplied all the required
data but not confidential data for the sake of confidentiality.

1.6 LIMITATION OF THE STUDY: -

Every project has its own limitations, so as ours. But we have to work irrespective of
these limitations and find our way, so that we can achieve the required aim.
Some of the limitations of our project are: -
The study of this project is limited to people who have been questioned and
understand the project well.
As our project is based on the data collected by the people, we face the Limitation of
extracting that particular collection data because our access is limited for the sake of
confidential information.

1.7 CHAPTER PLANNING: -

Chapter 1- Introduction:
This chapter includes Background of the Study, Literature Review, Need for the study,
Objective of study, Methodology Data, Limitation of the study.

12
Chapter 2- Conceptual Framework:
This chapter includes National Scenario, International Scenario.

Chapter 3- Presentation of Data & Analysis:

This chapter includes Presentation of Data & Analysis. and analysis of respondents

Chapter 4- Conclusion & Recommendations:

This chapter includes Conclusion & Recommendations.

CHAPTER -2
CONCEPTUAL FRAMEWORK
1. The main objective of study is to understand the growth of online banking in
India.
• 7% of account holders in the country are using the Internet for banking
transactions, while branch banking has fallen by a full 15 percentage
points, according to a report by global management consultancy McKinsey
& Company.

• Use of the Internet for banking has seen a massive rise in the 2010-11
survey, taking the overall number of bank consumers who use the Net to
close to 7 per cent of the total bank account holders -- a seven-fold jump
since 2007 -- even as for the first time in the past 13 years, branch
16banking has come down by a full 15 percentage points during the same
period.

• India leads growth in Asia in mobile and Internet usage for banking. While
there was a 15 per cent decline in branch usage in India, the growth in
usage of the Internet and mobile before the first time since we started this
survey in 1998, we see a marked shift away from using branches as a
main channel for interaction in many markets. This is a fundamental shift
in consumer behavior, and has significant implications for banks. The
scale of branch network is a less decisive factor for capturing customers
now.

• The worst casualty is loyalty as there is a full 40 percentage point drop in

loyalty since 2007, though 95 per cent are seemingly satisfied with their
main banks, says associate partner Jatin Pant, adding the average
number of banking relationships across the country rose 19 per cent from
1.4 in 2007 to 1.7 in 2011, while the average percentage of people willing
to shop around rose 15, marking a greater willingness of consumers to
vote with their feet and engage with a broader variety of financial

13
institutions.

Banking has almost tripled." When it comes to financial planning too,

there is a marked progress with the percentage of consumers using
financial planners soaring from 14 per cent in 2007 to 43 per cent in 2011,
while the percentage of consumers willing to take risks on capital growth
rose by 20 per cent to 44 per cent, up from 24 per cent. At the same time,
the survey says, dissatisfaction too rose with their financial planners.

Challenges associated with online banking in India:

Lack of outline plans & sufficient study to perform new technology, Lack of choose
that how perform technology with the highest efficiency,
• Lack of culture and knowledge of
banks about Electronic banking, Lack of engagement of banks management in the
system, Lack of management to use experts in IT section, Traditional attitude toward
data reengineering, Lack of economical justification and risk to use Electronic banking
systems.
• Challenges with performing system
17 Weakness of available facilities, Lack of money protection, Lack of special
enterprises or their support ,ca, gateway institutes such as VISA, Lack of content &
customers interest
• Cost and Fees
Customer service delivery attributes in the electronic banking industry are
important, in view of the fact that online banking, mobile banking and ATM
interaction
are the main sources of service delivery.
Therefore, offering high quality services to satisfy consumer’s needs, at ‟ lower cost
and fees, will be the Potential competitive advantage of electronic banking
sustainability and growth in thefuture. At present, studies show that electronic
banking has successfully reducedoperating and administrative cost and fees (Ahmad,
2011; Migdadi, 2008; Suganthi,2010 and Bankole et al, 2011) while at the same time
research has proven that, costand fees savings have helped e-based banks offer
lower or no service cost/fees(Ahmad, 2008). Cost was once considered as the major
competitive priority and a keyaspect for the future development in every
organization (Burgess, 1998). Prior researchhas empirically found a positive
relationship between cost/fees and customers servicedelivery as a critical factor with
the use of electronic banking (Ching et al, 2011 adKhumbula,2010).
❖ catching up in e-banking: -
The average e-banking penetration for developing countries by the end of
1999 was close to 5% (World Bank Survey, 2001).
In India, over 50 banks are offering online banking services. ICICI Banks e banking is
very impressive.
14
 2.1 NATIONAL SCENARIO IN ONLINE BANKING: -

The technology development in banking can be outlined as follows: -

1960 - Introduction of Mechanized banking.
1970 – Computerization of banking industry.
1980 - Introducing banking based on computer linked communication

The use of computer technology impacted the working pattern of bank in a larger way.
Since 1966, the development process of computerization in banking industry can be
clearly experienced and it started with the signing of first wage settlement with bank
union regarding use of ICT or IBM accounting machines for inter- branch
reconciliation etc. In 1970, SBI has initiated the process of installing a ledger- posting
machine with mainframe computer at its selected branches. In 1983, Reserve bank of
India formed a committee on computerisation & mechanisation and Dr. C. Rangrajan
was appointed its chairman. Committee’s purpose was to formulate a plan for
mechanising the Indian banking industry. The main recommendation of this
committee was bank branches, regional & head offices should adapt computerisation
and installation of Advanced Ledger Posting Machines. Afterwards, in 1991,
Narasimhan Committee paved the way for banking sector reforms. In 1994, RBI
appointed Saraf Committee that recommended the use of EFT, electronic clearing
services and extension of MICR even in small towns.

Foreign and private sector banks significantly adopted the use of information
technology in the last decade. The primary reason for this is the increased competition
and the popularity of the internet phenomenon around the world.

The entry of the private & multinational banks who were having better technological
based financial services, forced Indian banks to adapt the technological advancement
to achieve competitiveness and customer retention.

In 1970, technology was logical move for the banks with starting ATM & Point of
Sales facilities that continued in 1980s with the introduction of Tele- Banking and E-
Banking in 1990s. In Feb. 1997, Shared Payment Network System (SPNS) was
introduced and this was shared network of ATMs of 11 banks. 'SWADHAN' brand
name was given to the ATM cards. SPNS has a facility to link with international hub,
as, Master Card & VISA. In 1985, The ATM card facility was introduced by CITI
Bank in India.
Past ten years experienced drastic changes that made convenience of banking clients
the most important aspect of banking business. In India big cities are way ahead in
using e-banking. The latest banking delivery channels include private networks, direct
dial-up connections, public network etc. The banking devices are ATMs, telephones
and personal computers etc. Therefore, technological advancements transformed the
branch banking to e-banking that is known as
‘Anywhere Anytime Banking’. Banks achieved greater efficiency in operation through
15
the use of technology.

➢ Impact of Technology

The effect of technology in banking industry is as follows:

1. Paradigm shift from traditional banking to customize banking as the services

can be delivered via computer and

2. Convenient banking i.e. "Anytime, Anywhere banking". A customer can

check balance by logging into banks website through a username and
password. In this way he can enquire balance, status of cheques, perform
funds transfers, order drafts, request issue of cheque books etc.

It has been experienced that e-banking enhanced the bank- customer

relationship as e-banking user customers are more profitable for bank and
they do not switch their banks frequently and use more banking products and
services. The information gap created due to the human involvement is
covered by the information technology and online banking. The advantage of
e-banking is the availability of information about banking products &
services on their website. This helps the prospective customers to gather this
information easily without visiting a bank branch. Now availability of
information is comparatively cheaper for the consumer. The result of e-
banking is the virtual corporate system which minimized the human contact
to maximize the effect.

The entire business of banking and structure has risen significantly. The other reason
for this is the current market features, as, entry of a number of private sector banks and
MNC banks in the Indian banking industry. But the industry was ruled by public sector
banks before these private players. As a result of liberalisation private sector banks
gained a strong position in the banking industry. For example, ICICI Bank is the leading
bank in the private players of banking sector with more than a million customers, 600
branches and 2000 ATMs all over in India. That leads to the cut- throat competition
among the banks for increasing the customer base. The scenario compelled banking
industry to adapt technological advancements to provide better and competitive
services. Mostly banks operating in the country added information technology with their
services to add an additional value to their services.

Most of banks created their image as a departmental store for financial services that
are having a long range of financial products and services, such as, deposit schemes,
lending services, credit & debit cards, custodial services, advisory services, bill
discounting facility etc. Other than these services, banks in India also providing 3rd
party financial products, such as, insurance policies & mutual fund units. Banks
adopted computerisation of branches and new service delivery mechanism, as e-
banking, tele- banking, ATMs, mobile banking etc. to provide more flexible and
16
 convenient service with comparatively less cost to their customers.

➢ Modes of Distribution: - Banking industry was one of the pioneers among the
technology adopters. Banks were having correct vision to anticipate the future
requirement of innovative mechanism to offer banking services. Private sector banks
had a major contribution in revolutionising the Indian banking industry. The modes of
offering banking products and services are as follows:

1. Internet Banking: It is also known as Web Banking or PC Banking or e-

Banking. The easy accessibility to internet facility and availability of computer
lead the banks to provide their products and services through new delivery
medium i.e. internet. Today, all private and public sector banks are providing e-
banking services to their clients.

2.Phone Banking: It is also known as Tele- Banking or Mobile Banking or M-

Banking. India has experienced tremendous increase in the number of mobile
phone users. The rate of penetration of mobiles and landlines has risen
significantly, and this leads to encourage banks to grab this opportunity and thus
offered mobile- banking services. Through this service customers can avail
information regarding the bank account by sending a SMS.

3.Plastic Money: It is referred to ATM cards, debit cards and credit cards etc.
Banks have provided ATM facility to their customers and it is connected via V-
SAT. Through using ATM, customers can avail a numerous service, such as,
withdrawal of funds, account balance enquiry, order a cheque book, deposit fund,
have information regarding banking products etc. Even through ATM banks are
offering value added services also.

E-Banking

Now- a- days IT is playing intrinsic role in banking sector. Now customers need to
only visit the bank’s website to view their bank account. Customers can avail a
numerous service through e-banking, such as, can check account balance online,
online fund transfer, pay bills online etc. According to a research study conducted by
Booz & Allan, “internet is the most economic banking mode”.

E- Banking has following stages:

I. Information Kiosk: The conventional information and data are available on the
bank’s website regarding products and services offered by the bank.

II. Basic I- Banking: Through this internet – banking infrastructure has been set by
the bank to access basic banking services, as, online opening of a bank account, online
payment of bills, access account statement and

17
 III. Virtual Medium: This mode of e-banking uses internet
facility as a mode of conducting banking transactions. Customers can buy and sell
products and services offered through payment gateway service of bank. Enquire bank
account balance online

2.2. DIFFERENT TYPES OF ONLINE BANKING:

o DIGITAL WALLET:

Nowadays, we find ourselves carrying cold hard cash less and less because you can just
as easily make your purchase with payment cards, and track your spending online. Plus,
it’s more secure than carrying $350 to buy the latest iPad (MINI).
Certain payment or loyalty cards also let you earn rewards or entries to contests, but they
do add up. They make your wallet unnecessarily thick and heavy. Perhaps it is time to
swap the system again; this time, for something that you have always been carrying
around: your smartphone Digital wallets can help take you there. They are smartphone
apps that hold your payment and loyalty card information. Google Wallet and Apple’s
Passbook are two of the more popular ones we often hear about, but if they are not your
fancy, there are plenty of other digital wallets that carry perks and benefits that you may
prefer.

I. Google Wallet

Instead of tapping your credit card on the NFC machine at the checkout counter, all you
have to do is wave your smartphone or tap it on the machine to make your payments. It’ll
be able to identify the credit card information linked on your Google account.
For this to work, Google Wallet requires Near Field Communication (NFC) technology
available, which unfortunately is only available on certain smartphones and tablets.17
You link your debit or credit card to your Google account and you can leave your wallet
at home –
but at the moment, it only works with phones and credit cards from the US and only in
the US. Currently, it supports 20+ merchants on the ground and online, promising more
merchants to come.

II. Apple’s Passbook

Apple’s Passbook was introduced in iOS 6 and relies on scanning 2D barcodes to help
you manage your movie, concert and airline tickets as well as loyalty cards and coupons
for selected merchants.The result: you get location and time based notifications when
you’re near a cafe where you can use your loyalty card or when your airline, movie or
concert ticket is nearing its due date.You add passes through apps that supportPassbook
(link opens iTunes).
So instead of bringing your grocery coupons and stack of loyalty cards Passbook. Unlike
Google Wallet, you cannot use your debit or credit card for purchases in-store, however
you can use Bill Guard to view your bank balance and other related information on your
iPhone.
18
 o DIGITAL CASH:

Digital Cash acts much like real cash, except that it’s not on paper. Money in your bank
account is converted to a digital code. This digital code may then be stored on a
microchip, a pocket card (like a smart card), or on the hard drive of your computer.

The concept of privacy is the driving force behind digital cash. The user of digital cashis
assured an anonymous transaction by any vendor who accepts it. Your
special bank account code can be used over the internet or at any participating merchant
to purchase an item. Everybody involved in the transaction, from the bank to the user to
the vendor, agree to recognize the worth of the transaction, and thus create this new form
or exchange.

o KIOSK BANKING:

This is the latest development on the remote baking front, also known as 'Touch-screen'
banking. A kiosk is a self- service banking terminal that can be operated with both credit
& debit cards. The Debit/credit card can be swiped at against the card readerat the kiosk
and account accessed post entering the ATM PIN. Currently, very few banks like
Citibank offer this facility to their customers at select ATM centres across the country.

Unlike an ATM, which is primarily used for cash transactions like withdrawals, deposits,
etc., a kiosk is primarily used for non-cash transactions like cheque book request, printing
bank account statements, funds transfer etc. The number of transactions a particular
location is expected to be able to support is key here along with the types of transactions
required. An ATM and a Kiosk can both easily perform the same non cash and non-
deposit transactions however the real differentiators come down
to how much time/ input the transaction takes (Financial Kiosks have full keyboards and
document printers, ATMs generally don`t) and queuing considerations (at an ATM, most
people just want to get their cash and go).

o NEFT:

National Electronic Funds Transfer (NEFT) NEFT is electronic funds transfer system,
which facilitates transfer of funds to other bank accounts in over 63000 bank branches
across the country. This is a simple, secure, safe, fastest and cost effective way to transfer
funds especially for Retail remittances.

FEATURES & BENEFITS

Customers can remit any amount using NEFT Customer intending to remit money
through NEFT has
to furnish the following particulars:
19
1. IFSC (Indian Financial System Code) of the beneficiary Bank/Branch

2.Full account number of the beneficiary

3.Name of the beneficiary.
The facility is also available through online mode for all internet banking and mobile
banking customers. For corporate customers, bulk upload facility is also available at
branches.

TIMINGS

Customers can use this facility between 8 AM and 7 PM on all weekdays and between 8
AM and 1 PM on Saturday. There are twelve hourly settlements between 8 AM and 7 PM
on all weekdays and six hourly settlements between 8 AM and 1 PM on Saturdays.
The money will be credited to the beneficiary’s account on the same day or at the most

next day in case the message is sent during the last batch of settlement. Union Bank offers
NEFT facility to its customers through all its branches.

CHARGES

Rs. 5/ per transaction if the transaction amount is less than Rs. 1 lakh
Rs. 25/- per transaction if the transaction amount is more than Rs. 1 lakh
NOTE: Charges are waived for customers availing services at our branches in North
Eastern States

o RTGS:

Real Time Gross Settlement (RTGS) is an electronic form of funds transfer where the
transmission takes place on a real time basis.
In India, transfer of funds with RTGS is done for high value transactions, the minimum
amount being Rs 2 lakh. The beneficiary account receives the funds transferred, on a real
time basis. The main difference between RTGS and National Electronic Funds Transfer
(NEFT) is that while transfer via NEFT takes place in batches (with settlements and
transactions being netted off), in the case of RTGS, the transactions are executed
individually and on gross basis.The customer initiating the funds transfer through RTGS
has to have the Indian Financial System Code (IFSC) of the beneficiary's bank, along
with the name of the beneficiary, account number and
name of the bank. The bank branches, both at the initiating and receiving end, have to be
RTGS-enabled for the transaction to be processed. Customers with Internet banking
accounts can do RTGS transactions.

20
 2.3. International Scenario:

The advent of internet has initiated an electronic revolution in the global banking sector.
The dynamic and flexible nature of this communication channel as well as its ubiquitous
reach has helped in leveraging a variety of banking activities. New banking
intermediaries offering entirely new types of banking services have emerged as of
innovative e-business models. The internet has emerged as one of the major distribution
channels of banking products and services, for the banks in US and in the European
countries, Initially, banks promoted their core capabilities i.e., products, services and
advice through Internet. Then, they entered the e-commerce market as provider/
distributors of their own products and services. Most recently, due to advances in Internet
security and the advent of relevant protocols, banks have discovered that they can play
their primary role as financial intermediators and facilitators of complete commercial
transaction via electronic network especially through the internet. Some banks have
chosen a route of establishing a direct web presence while others have opted for either
being an owner of financial services centric electronic marketplace. The trend towards
electronic delivery of banking products and services is occurring partly as a results of
consumer demand and partly because of the increasing competitive environment in the
global banking industry. The Internet has changed the customer’s behaviour who are
demanding more customized products/services at a lower price.

Moreover, new competition from pure online banks has put the profitability of even
established brick and mortar banks under pressure. However, very few banks have been
successful in developing effective strategies for fully exploiting the opportunities offered
by the internet. For traditional banks to define what niche markets to serve and decide
what products/services to offer there is a need for a clear and concise Internet commerce
strategy. Banking transactions had already started taking place through the Internet way
back in 1995.

The Internet promised an ideal platform for commercial exchange, helping banks to
achieve new levels of efficiency in financial transaction by strengthening customer
relationship, promoting price discovery and spend aggregation and increasing the reach.
Electronic finance offered considerable opportunities for banks to expand their client base
and rationalize their business while the customers received value in the form of saving in
time and money.

21
 CHAPTER-3
PRESENTSTION OF DATA AND ANALYSIS
For case study a survey was conducted from November2015 to February2016 for the project
“Online-Banking”. This survey was done on the basis of 114 respondents from various
sectors.

Mainly the objective of the research is to understand online banking users’ behaviors,
opinions, preferences and expectations. The questions were designed in such way to cover
all the relating fields. The fieldwork and data analysis were conducted by me after
consulting with my supervisor and with the help of my friend. I am very much grateful to
them.
DEMOGRAPHIC:
A. GENDER BASIS ANALYSIS

PARTICULARS RESPONDENTS NON-RESPONDENTS TOTAL-RESPONDENTS

A.
MALE 72 6 78

FEMALE 28 8 36

TOTAL 100 14 114

TABLE: 1 GENDER BASIS ANALYSIS
DATA ANALYSIS IN RESPECT OF RESPONDENTS

90
78
80
72
70

60

50

40 36
28
30

20
6 8
10

0
RESPONDENTS NON-RESPONDENTS TOTAL-RESPONDENTS

MALE FEMAL
SOURCES: ABOVE TABLE 1

22
 ANALYSIS:
Data collected from 114 respondents, out of 100 respondents perform online banking and
this is represented by a column chart with male and female basis analysis. It is good for the
banks as most of the respondents are aware of the internet banking and all the services have
enjoyed them being offered by banks.

23
 • AGE BASIS ANALYSIS:

AGE GROUP FREQUENCY PERCENTAGE CUMULATIVE FREQUENCY

BELOW 20 34 30% 34

20-35 44 38% 78

35-50 24 21% 102

ABOVE 50 12 11% 114

TABLE:2 AGE BASIS ANALYSIS

AGE GROUP ANALYSIS

BELOW 20 20-35 35-50 ABOVE 50

SOURCES: ABOVE TABLE 2

ANALYSIS:
Out of 114 respondents 34 respondents are in below 20 age group, 44 respondents in 20-
35 age group, 24 respondents in 35-50 age group and 12 respondents in
above 50 age group. This shows with the help of a Pie-Chart.

24
 • OCCUPATION BASIS ANALYSIS:

OCCUPATION FREQUENCY CUMULATIVE PERCENTAG

FREQUENCY E
STUDENT 31 31 27%

SELF- 21 52 18.00%
EMPLOYED
EMPLOYEE 47 99 41.00%

OTHERS 15 114 14.00%

TABLE 3 : OCUPATION BASIS ANNALYSIS

OCCUPATION BASE ANALYSIS

15
31

47
21

SOURCES:ABOVE TABLE 3

ANALYSIS: Among 114 respondents 27% are students, 18% are self-employed, 41%
are employees and 14% are others.

25
 • INCOME BASIS ANALYSIS:

MONTHLY FREQUEN CUMULATIVE PERCENTAG

INCOME CY FREQUENCY E
0-10000 32 32 28%
10000-20000 21 53 18%
20000-30000 17 70 15%
30000-40000 14 84 12%
40000-50000 8 92 7%
ABOVE 50000 22 114 20%
TABLE 4. INCOME BASIS ANALYSIS

MONTHLY INCOME
35
32

30

25 22
21

17
20 14

15 8

10

0
0-10000 10000-20000 20000-30000 30000-40000 40000-50000 ABOVE 50000
SOURCES: ABOVE TABLE 4

ANALYSIS:
Among 114 respondents 28% belong to Rs.0-10000 income group, 18%
belong to Rs.10000-20000 income group, 15% belong to Rs.20000-30000
income group, 12% belong to Rs.30000-40000 income group, 7% belong to
Rs.40000-50000 and 20% belong to above Rs.50000 group.

26
1. EDUCATIONAL PROFILE:
EDUCATIONAL FREQUENCY PERCENTAGE CUMULATIVE
QUALIFICAT ON FREQUENCY

MADHYAMIK 26 23% 26
HIGHER 38 33% 64
SECONDARY
GRADUATE 20 18% 84
POST- 11 9% 95
GRADUATE
OTHERS 19 17% 114
SOURCES: QUESTINNARIE

EDUCATIONAL QUALIFICATION

OTHERS 19

11
POST-GRADUATE

20

GRADUATE

HIGHER SECONDARY 26
38

MADHYAMIK

0 5 10 15 20 25 30 35 40
FIG.1 EDUCATIONAL QUALIFICATION

INTERPRETATION:
Among 114 respondents 23% are madhyamik pass, 33% are HS pass, 18%
are graduate, 9% are post-Graduate and 17% are others.
27
 2. HOW OFTEN DO YOU USE INTERNET PER WEEK?

INTERNET USE RATE FREQUENCY PERCENTAGE CUMULATIVE FREQUENCY

ONE HOUR 5 4% 5

TWO 9 8% 14
HOURS
THREE 28 25% 42
HOURS
MORE 72 63% 114
THAN
THREE
HOURS
SOURCES: QUESTIONNARIE

INTERNET USE RATE PER WEEK

5 9

28

One hour two hours three hours more than three hours

FIG.2 INTERNET USE PER WEEK

SOURCES: QUESTIONNARIE

INTERPRETATION:
Among 114 respondents 63% use internet more than three hours per week,
25% use internet three hours per week, 8% use internet two hours per week and
4% use internet one hour in a week.

28
3. IN WHICH BANK DO YOU HAVE AN ACCOUNT?

NAME OF FREQU PERCEN CUMULATIVE

BANKS ENCY TAGE FREQUENCY
SBI 27 24% 27
AXIS 21 18% 48
ICICI 13 11% 61
UCO 12 10% 73
HDFC 8 7% 81
UBI 9 8% 90
BOI 6 6% 96
PNB 5 5% 101
STANDARD 3 2% 104
CHARTERED
OTHERS 10 9% 114

SOURCES: QUESTIONNARIE

PREFERABLE BANKS
30
27

25
21

20

15 13
12
10
10

SBI AXIS ICICI UCO HDFC UBI BOI PNB STANDARD CHARTERED OTHERS

FIG.3 PREFERABLE BANKS

29
INTERPRETATION:
Among 114 respondents, 27 respondents have SBI bank a/c, 21 have AXIS
bank a/c, 13 have ICICI bank a/c, 12 have UCO bank a/c, 8 have HDFC bank
a/c, 9 have UBI bank a/c, 6 have BOI bank a/c, 5 have PNB bank a/c, 3 have
STANDARED CHARTERED bank a/c and 10 have others bank a/c.

30
4. DO YOU AVAIL OF BANKING FACILITIES ONLINE?

PARTICULARS FREQUEN PERCENTA CUMULATIVE

CY GE FREQUENCY

ONLINE BANKING 100 88.00% 100

USERS

OFFLINE BANKING 14 12.00% 114

USERS
SOURCES: QUESTIONNARIE

ONLINE & OFFLINE BANKING USERS

OFFLINE BANKING
USERS
12%

ONLINE BANKING
USERS
88%

FIG.NO 4 ONLINE AND OFLINE BANKING USERS

SOURCES: QUESTIONNARIE

INTERPRETATION:
Most of the respondents prefer online banking services. About 88%
respondents support online banking services and only 12% respondents
support offline banking services.
31
5. IS YOUR BANK OPERATED UNDER CORE-BANKING FACILITY?

CORE BANKING FREQUEN PERCENTA CUMULATIVE

FACILITY CY GE FREQUENCY
YES 91 91% 91

NO 0 0% 91

CAN'T SAY 9 9% 100

SOURCES: QUESTIONNARIE

POLL FOR CORE BANKING SOLUTION

YES, 91
100

90

80

70

60

50

40

30
CAN'T SAY, 9

20 NO, 0

10

FIG.5. CORE BANKING SOLUTION

32
INTERPRETATION:
Among 100 respondents 91% say that their bank run under core banking system but only
9% have no clear concept about this and they choose “CAN’T SAY” option.

33
6.HOW FREQUENTLY DO YOU USE ONLINE BANKING SERVICES?

USE OF ONLINE FREQU PERCEN CUMULATIVE

BANKING ENCY TAGE FREQUENCY
DAILY 14 14% 14
WEEKLY 21 21% 35
MONTHLY 41 41% 76
OCCASIONALLY 11 11% 87
YEARLY 13 13% 100
NEVER 0 0% 100
SOURCES: QUESTIONNARIE

USE OF ONLINE BANKING

NEVER

13
YEARLY

11
OCCASIONALLY

41
MONTHLY
21

WEEKLY
14

DAILY

0 5 10 15 20 25 30 35 40 45
FIG.6 USE OF ONLINE BANKING

INTERPRETATION:
Most of the people do not need the services of banks regularly. They may
transact with banks on monthly basis, weekly or occasionally. This chart shows
the habits of people in case of use of online banking
34
 7.HOW MUCH DO YOU SPEND FOR A SINGLE ONLINE TRANSACTION?

TRANSAC
TION FREQUE PERCENT CUMULATIVE
AMOUNT NCY AGE FREQUENCY
0-1000 40 40% 40
1000-5000 25 25% 65
5000-10000 15 15% 80
10000- 10 10% 90
20000
ABOVE 10 10% 100
20000
SOURCES: QUESTIONNARIE

MONEY SPEND FOR SINGLE TRANSACTION

ABOVE 20000
10%
10000-20000
10%

0-1000
40%

5000-10000
15%

1000-5000
25%

FIG NO.8 MONEY SPEND FOR SINGLE TRANSACTION

INTERPRETATION:
Most of the online banking users have a tendency to spend Rs.1000 or below
this amount in a single transaction.

35
 8.WHY, DO YOU AVAIL OF ONLINE BANKING?
PURPOSE OF ONLINE FREQUE PERCENT CUMULATIVE
BANKING NCY AGE FREQUENCY
PRIVACY 9 9% 9
24*7 BUSINESS HOURS 36 36% 45
CONVENIENCE 16 16% 61
NOT TO MOVE 13 13% 74
ANYWHERE
EASY TO USE 11 11% 85
SAVING TIMES & 12 12% 97
SPEED
HARD TO SAY 3 3% 100
SOURCES:QUESTINNARIES

BENEFITS SEEN BY CUSTOMERS

36
40
35
30
16
25 13
11 12
20
15
10
5

FIG 8.BENIFITS SEEN BY CUSTOMERS

INTERPRETATION:
Most of the respondents felt that the “24*7 BUSINESS HOURS” provided by
the internet banking is the highest motivating factor for an individual to use
internet banking and rest prefer “PRIVACY”,” CONVENIENCE”, “NOT TO
MOVE” etc.
36
 9.RATING OF THE MAIN TRANSACTIONS
TRANSACTIONS EXCEL GOO AVER POO NOT
LENT D AGE R APPLICABL
E
FUND TRANSFER 35 25 15 20 5
ATM BANKING 68 12 10 8 2
BALANCE ENQUIRY 80 10 10 0 0
ONLINE FIXED 10 15 10 25 40
DEPOSIT
REQUEST A 30 20 10 40 0
DEMAND DRAFT
PAY BILLS 71 14 8 7 0
ONLINE SHOPPING 65 20 7 8 0
ONLINE RECHARGE 60 25 15 0 0
SOURCES: QUESTIONNARIE

RATING OF TRANSACTIONS
90
80
70
60
50
40
30
20
10
0
FUND ATM BANKING ONLINE REQUES PAY ONLIN
TRANSF BALANCE FIXED TA BILLSO E
ER ENQUIRY DEPOSIT DEMAN NLINE RECHAR
D SHOPPI GE
DRAFT NG

EXCELLENT GOOD AVERAGE POOR NOT APPLICABLE

FIG.9 RATING OF TRANSACTION

INTERPRETATION:
It is interesting to see that most of the respondents give “EXCELLENT” rating to ATM
Banking, Balance Enquiry, Pay Bills, Online-Shopping and Online Recharge.
37
10.DOES YOUR BANK EDUCATE YOU ABOUT THE ONLINE
BANKING SERVICES BEING OFFERED?

EDUCATING NET FREQUE PERCENT CUMULATIVE

BANKING NCY AGE FREQUENCY

YES 46 46% 46

NO 54 54% 100

EDUCATING ABOUT INTERNET BANKING

SOURCES: QUESTIONNARIE
%

EDUCATING NET BANKING

46%
54%

YES NO

FIG.10 EDUCATING NET BANKING

INTERPRETATION:
Among 100 respondents 46 people said that their bank educated them about
the several online banking services and on the other hand 54 people said that
their bank did not educate them about their net banking services.

38
11.ARE YOU AWARE OF THE SECURITY THREATS AND FRAUDS
IN ONLINE BANKING AND FAMILIAR WTH THE METHODS OF
SECURED ONLINE TRANSACTIONS?
AWARENESS OF FREQUE PERCENT CUMULATIVE
FRAUDS NCY AGE FREQUENCY
YES 58 58% 58

NO 27 27% 75

CAN'T SAY 15 15% 100

SOURCES:QUESTIONNARIE

AWARENESS OF FRAUDS AND SECURED BANKING

YES, 58

60

50

40 NO, 27

30 CAN'T SAY, 15

20

10

0
FIG.11.AWARNESS OF FRAUDS AND SECURED BANKING

INTERPRETATION:
It is good to see that most of the users have knowledge about frauds and security
issues of net banking but even with the increasingly knowledge of internet
banking some respondents are unaware the methods taken up by the bank to
secure each and every transaction.

39
 12.DOES YOUR BANK UPGRADE ONLINE SERVICES REGULARLY?

UPGRADATI
FREQU PERCEN CUMULATIVE
ON OF
ENCY TAGE FREQUENCY
ONLINE
SERVICES
YES 66 66% 66
NO 29 29% 95
CAN’T 5 5% 100
SAY
SOURCES:QUESTIONNARIE

UPGRADATION OF NET BANKING

CAN’T SAY
5%

NO
29%

YES
66%

FIG.12 UPGRADATION OF NET BANKING

INTERPRETATION:
This is very interesting to see that most of the online banking users think that
their banks upgrade their services regularly. But some people did not think so
and some few did not come to a conclusion.

40
13.ARE YOU IN THE OPINION THAT YOUR BANK CHARGES
UNNECESSARY FOR ONLINE SERVICES?

VOTE FOR FREQU PERCEN CUMUL

UNNECESSA ENCY TAGE ATIVE
RY BANK FREQUE
CHARGES NCY
YES 37 37% 37
NO 51 51% 88
CAN'T 12 12% 100
SAY
SOURCES:QUESTIONNARIE

RATING FOR BANK CHARGES

51
60
37
50

40
12
30

20

10

FIG.13 RATING FOR BANK CHARGES

INTERPRETATION:
37% users think that their banks charge unnecessary for online services. While 51%
people
think that their banks don’t do such and 12% people are unable to answer this question.

41
14.DO YOU THINK ONLINE BANKING IS BETTER SUBSTITUTE
OF TRADITIONAL BANKING SYSTEM?

ONLINE FREQUENCY PERCENTAGE CUMULATIVE

BANKING- FREQUENCY
BETTER
SUBSTITUE
YES 69 69% 69
NO 23 23% 92
CAN'T SAY 8 8% 100
SOURCES:QUESTIONNARIE

PREFERENCE OF NET BANKING

23

69

YES NO CAN'T SAY

FIG.14.PREFFERENCE OF NET BANKING

INTERPRETATION:
It was witnessed that most of the respondents preferred using Internet Banking
over there traditional banking system. Thus, Internet Banking has a bright future
ahead.

42
 15.WHICH FACTOR DO YOU THINK RESPONSIBLE FOR NON-
ACCESSBILITY OF ONLINE BANKING BY MAJORITY OF
PEOPLE IN YOUR AREA?

NON-ACCESSBILITY FREQUE PERCENT CUMULAT

NCY AGE IVE
FREQUEN
CY
LACK OF AWARNESS 18 18% 18

INADEQUATE ATM 12 12% 30

SERVICE
RURAL AREA 8 8% 38
LACK OF
COMPUTE 22 22% 60
R
FACILITY
LESS
INTERNET 25 25% 85
CONNECTI
ON
LACK OF 15 15% 100
KNOWLEDGE
SOURCES:QUESINNARIE

REASON OF NON-ACCESSBILITY OF NET BANKING

LACK OF KNOWLEDGE
15

LESS INTERNET CONNECTION 25

LACK OF COMPUTER FACILITY 22

RURAL AREA 8

12
INADEQUATE ATM SERVICE

18
LACK OF AWARNESS

0 5 10 15 20 25 30
FIG.15 REASON OF NON-ACCESBILITY OF NET BANKING
43
INTERPRETATION:
Among 100 respondents 18 choose “LACK OF AWARNESS”, 12 choose
“INADEQUATE ATM SERVICE”, 8 choose “RURAL AREA”, 22 choose
“LACK OF COMPUTER FACILITY”, 25 choose LESS INTERNET
CONNECTION” and 15 choose “LACK OF KNOWLEDGE” option.

44
16.IN YOUR OPINION WHICH ONLINE OPERATION SHOULD BE
MODIFIED PROMPTLY FOR BETTER SERVICES IN FUTURE?
MODIFICATIO CUMULAT
N OF FREQUE PERCENT IVE
SERVICES NCY AGE FREQUEN
CY
ATM SERVICE 31 31% 31
ACCOUNTS 3 3% 34
SERVICE
FUND TRANSFER 11 11% 45
BILL PAYMENT 13 13% 58
E-TAX PAYMENT 8 8% 66
E-DEPOSIT 2 2% 68
DEMAT SERVICE 7 7% 75
LOANS & CREDIT 2 2% 77
SERVICE
INTERNET
18 18% 95
SECURITY
SERVICE
SOURCES: QUESTIONNARIES

VOTE FOR MODIFICATION OF SERVICES

35 31
30
25 18
20 11
13

15 8 7
5
3 2 2
10
5

FIG.16 WHICH ONLINE SERVICE SHOULD BE PREFER IN FUTURE

INTERPRETATION:
This chart shows that “ATM SERVICE”, “BILL PAYMENT” and
“INTERNET SECURITY SERVICE” should be modified in near future.
45
 17.RATING OF ONLINE BANKING SERVICES.

RATING FREQUE PERCENT CUMULAT

NCY AGE IVE
FREQUEN
CY
EXCELLENT 18 18% 18
VERY GOOD 15 15% 33
GOO 35 35% 68
D
AVERAGE 12 12% 80
POO 15 15% 95
R
HARD TO SAY 5 5% 100
SOURCES: QUESNNARIE

VOTE FOR ONLINE BANKING

HARD TO
SAY EXCELLEN
T
5%
18%
POO
R
15%

AVERAG VERY
E GOOD
12% 15%

GOO
D
35%
EIG.17 ONLINE BANKING SERVICE

INTERPRETATION:
The satisfaction level of people with the online banking services of their banks has a
mixed
Review. This may due to multiple reasons. Moreover 35 people choose “GOOD” option.

46
 CHAPTER-4

RECOMMENDATIONS & CONCLUSIONS

4.1 CONCLUSION:

• People are not confident enough to whether to rely completely on online banking.
There is hesitancy in their minds with regards to preference. So, they use both the
techniques of banking i.e. Online and Traditional.
• Because of the complexity and the unawareness in the people regarding the online
banking, there is less utilization of the online banking services provided by the
banks.
• People are not sure whether their account is completely secured in online banking.
Security concern is the main and the core reason why people do not tend to use
online banking.
• People in India are not aware of the full utility of online banking and the services
that can be availed of in online banking.
Most of the Indian populations are salaries employees who do not have that volume of
transaction that can be used for online transaction

4.2 RECOMMENDATION:
After analyzing the entire study on online banking with respect to both the primary and the
secondary data, the following recommendations can be put forth: -
• The infrastructure for the development is not being implemented in way that could be
beneficial.
• There are various obstacles in the banking scenario with regards to guidelines and
issues for functioning. This has led to decline in the usage of the online banking service of
the banks.
• The people having accounts can be urged to take up an internet banking facility. They
should be motivated rather than just being told that there exists a service of online banking.
• There are more people who are not actually aware of all the benefits that they reap out
of the transaction of online banking. They should be proper awareness.
Most of the people do not count online banking due the problems of security concerns.
Proper security software should be developed, and people should be convinced that their
accounts are secured in online transaction

47
 CHAPTER-4

BIBLIOGRAPHY

9.1. WEBSITES:
• www.google.com
• www.wikipedia.in
• www.slideshare.net
• www.investopedia.com
• www.sbionline.com
• www.sbi.co.in
• www.rbi.org.in
• www.rbi.in

9.2. BOOKS:

• An Introduction to E-Commerce: - written by Ramit Kumar Roy & Debasri Dey and
published by the Elegant Publications.
• E-Commerce: - written by Prof.(Dr.) Dilip Kumar Chakraborty & Prof. Debdulal
Chatterjee and published by B.B. Kundu Grandsons.
• Introduction to Information Technology & its Business Application: - written by
A.K. Mukhopadhyay & A. Das and published by Kalimata Pustakalaya.

48
 Online Banking in India
QUESTIONNAIRE
Dear Respondent,

I am a student of Raja Peary Mohan College, Department of commerce, and presently doing a project on
“ Online Banking in India”. I request you to kindly fill the questions stated below and I assure you that the
data generated by you will be kept confidential.

A. PERSONAL PROFILE:
i. Name……………………………………………………………… ii. Gender: -Male Female

iii. Age Group: - Below 20-35 , 35-50 , Above 50

20

iv. Occupation…………………………………………… v. Monthly Income ……………………………………………..

B. EDUCATIONAL PROFILE:

Madhyamik H.S Graduate Post-Graduate Other. .

• QUESTION 1: HOW OFTEN DO YOU USE INTERNET PER WEEK?

ONE HOUR TWO HOURS THREE HOURS MORE THAN THREE HOURS

• QUESTION 2: IN WHICH BANK DO YOU HAVE AN ACCOUNT?

SBI AXIS ICICI UCO HDFC UBI BOI PNB

STANDARD CHARTERED OTHER.(specify)…………………………………………………………………………

• QUESTION 3: DO YOU AVAIL OF ALL BANKING FACILITIES ONLINE? YES NO.

• QUESTION 4: IS YOUR BANK OPERATED UNDER CORE-BANKING FACILITY?

YES NO. CAN’T SAY.

• QUESTION 5: HOW FREQUENTLY DO YOU USE ONLINE BANKING SERVICES?

DAILY WEEKLY MONTHLY OCCASIONALLY YEARLY NEVER

• QUESTION 6: HOW MUCH DO YOU SPEND FOR A SINGLE ONLINE TRANSACTION?

0-1000 1000-5000 5000-10000 10000-20000 ABOVE 20000

• QUESTION 7: WHY DO YOU AVAIL OF ONLINE BANKING?

PRIVACY 24*7 BUSINESS HOURS CONVENIENCE NOT TO MOVE ANYWHERE

EASY TO USE SAVING TIMES & SPEED HARD TO SAY OTHER.(Specify)…………….

49
 • QUESTION 8: KINDLY RATE THE FOLLOWINGS OF YOUR ONLINE BANKING SERVICES:
QUESTIONS EXCELLENT GOOD AVERAGE POOR NOT
APPLICABLE
FUND TRANSFER
ATM BANKING
BALANCE ENQUIRY
ONLINE FIXED DEPOSIT
REQUEST A DEMAND DRAFT
PAY BILLS
ONLINE SHOPPING
ONLINE RECHARGE
OTHER

• QUESTION 9: DOES YOUR BANK EDUCATE YOU ABOUT THE ONLINE BANKING SERVICES
BEING OFFERED?
YES NO CAN’T SAY.

• QUESTION 10: ARE YOU AWARE OF THE SECURITY THREATS AND FRAUDS IN ONLINE
BANKING AND FAMILIAR WITH THE METHODS OF SECURED ONLINE TRANSACTIONS?YES
NO CANT’T SAY

• QUESTION 12: DOES YOUR BANK UPGRADE ONLINE SERVICES REGULARLY?

YES NO CAN’T SAY.

• QUESTION 13: ARE YOU IN THE OPINION THAT YOUR BANK CHARGES UNNECESSARY FOR
ONLINE SERVICES? YES NO CAN’T SAY.

• QUESTION 14: DO YOU THINK ONLINE BANKING IS BETTER SUBSTITUTE OF TRADITIONAL

BANKING SYSTEM? YES CAN’T SAY NO.

• QUESTION 15: WHICH FACTOR DO YOU THINK RESPONSIBLE FOR NON-ACCESSEBILITY OF

ONLINE BANKING BY MAJORITY OF PEOPLE IN YOUR AREA?
LACK OF AWARNESS OF PEOPLE INADEQUATE ATM SERVICES RURAL AREA

LACK OF COMPUTER FACILITY LESS INTERNET CONNECTION LACK KNOWLEDGE

OTHER REASON…………………………………………………………….

• QUESTION 16: IN YOUR OPINION WHICH ONLINE OPERATIONS SHOULD BE MODIFIED

PROMPTLY FOR BETTER SERVICES IN FUTURE?
ATM SERVICES ACCOUNTS SERVICES FUND TRANSFER BILL PAYMENT

E-TAX PAYMENT E-D EPOSIT MARKET INVESTMENT & DEMAT SERVICES

LOANS & CREDIT SERVICES INTERNET SECURITY SERVICES

OTHER CUSTOMER RELATIONSHIP SERVICES……………………………………………………………………………

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 • QUESTION 17: GIVE YOUR OVERALL RATING IN ONLINE BANKING SERVICES.

EXCELLENT VERY GOOD GOOD

AVERAGE POOR HARD TO SAY.

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