A STUDY ON CONSUMER PECEPTION

TOWARDS ONLINE BANKING SYSTEM IN INDIA

(A Case Study In Balangir Town)

A PROJECT REPORT SUBMITTED IN PARTIAL

FULFILMENT OF REQUAREMENT FOR THE AWARD
OF DEGREE OF BACHELOR IN COMMERCE

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UNDER THE GUIDANCE OF
Mr. Abhijeet Tali ( Faculty of Commerce)
SUBMITED BY
BAIBHAV BEHERA
B.COM (Hons) FINAL YEAR

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PERSONAL MEMORANDAM

1. Name of the Project : A Study On Online Banking System In India

2. Name Of the Student :Baibhav Behera
3. Name of the college : JSM Commerce & Arts College
4. Name of the university : Rajendra University
5. Examination Roll No. : RO2521COM032
6. Registration No. :

INTERNAL EXAMINER EXTERNAL

EXAMINER
DEPARTMENT OF COMMERCE
MR. ABHIJEET KU. TALI
(FACULTY OF COMMERCE)

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CERTIFICATE
This is to certify that the dissertation entitled the study of

“A Study On Online Banking System In India”

is being submitted by Baibhav Behera, bearing

Roll No -RO2521COM032under my guidance and supervision.

Place:
Date:

FACULTY OF COMMERCE
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JSM COMMERCE COLLEGE
BALANGIR, ODISHA

DECLARATION

I hereby, declare that this research project entitled,

“A STUDY ON ONLINE BANKING SYSTEM IN INDIA”

prepared and submitted by me towards the partial fulfilment of the BACHELOR

OF COMMERCE degree in JSM COMMERCE COLLEGE, BALANGIR

affiliated to RAJENDRA UNIVERSITY, is my own work and it is not submitted

to any other universities/institution or published anywhere for the award of any

degree Or diploma.

Place: BAIBHAV BEHERA

Date:

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 ACKNOWLEDGEMENT

I am extremely grateful to faculty in commerce Mr. Abhijeet Kumar Tali for his

kind consent to supervise my work. The completion of my work practical study

and preparation of this report would not have been possible without his guidance

and timely advice. I pay my thanks to him for giving me his valuable time even at

odd hours and going through the manuscript. I am also thankful to my friends and

family who has given us feedback and co-operation during the preparation of this

project for their help and suggestion at different stages of study.

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 ABSTRACT
Online Banking gives you the luxury of freely accessing and performing all

traditional banking activities 24x7 without having to personally go to a bank

branch to get your work done. Digital Banking can be done either through a laptop,

tablet or your mobile phone. This is what Digital Banking in India is all about.

After the effect of demonetization, digital cash has been the hotcake among the

citizens of India. Digital cash and online transactions in the current market scenario

have a great effect on e-banking and digital banking. E-banking comprises mainly

of electronic funds transfer and usage of online banking services. Electronic

banking was offered by the international banks initially since flow of digital cash

was not predominant in the Indian market until the advent of demonetization. E-

banking plays a major role in the present banking functionality. Electronic banking

is inferred to be safe and secured, compared to physical banking. E-banking

ensures qualitative banking operations compared to traditional banking. However,

it has its own limitations and challenges when we talk about security, on the

contrary. The discussion throughout the paper revolves around the challenges the

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Indian banks are facing in term of e-banking, opportunity to increase awareness

and measure adopted for safe and secure e-banking. The paper further tries to

discuss some best E-banking practices that are prevailing in the world.

CONTENTS

SERIAL NUMBER PARTICULARS PAGE NUMBER

PERSONAL MEMORANDM
CERTIFICATE
DECLARATION
ACKNOWLEDGEMENT
EXECUTIVE SUMMARY/ ABSTRACT
CHAPTER 1 INTRODUCTION
1.1 INTRODUCTION TO THE STUDY 9
1.2 COMPANY PROFILE 10-24
1.3 INDUSTRY PROFILE 25-31

CHAPTER 2 REVIEW OF LITERATURE 32-35

CHAPTER 3 RESEARCH METHODOLOGY 36-42
3.1 OBJECTIVE OF THE STUDY 37
3.2 SCOPE OF THE STUDY 38
3.3 RESEARCH DESIGN 38
3.4 LIMITATIONS OF THE STUDY 41

CHAPTER 4 DATA ANALYSIS AND 43-63

INTERPRETATION
CHAPTER 5 CONCLUSION 64-71
5.1 FINDING 65-66
5.2 SUGGESTION 73-75
5.3 CONCLUSION 70-71
SUGGESTION 73-75
BIBLIOGRAPHY 76
QUESTIONNAIRE 77-83

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 CHAPTER-1
INTRODUCTION

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1.1 INTRODUCTION
Electronic banking, or e-banking, is the term that describes all transactions that take place
among companies, organizations, and individuals and their banking institutions. First
conceptualized in the mid-1970s, some banks offered customers electronic banking in 1985.
However, the lack of Internet users, and costs associated with using online banking, stunted
growth. The Internet explosion in the late-1990s made people more comfortable with making
transactions over the web. Despite the dot-com crash, e-banking grew alongside the Internet.

Online banking (or internet banking or E-banking) allows customers of a financial

institution to conduct financial transactions on a secure website operated by the institution,
which can be a retail or virtual bank, credit union or building society.

Online banking is the practice of making bank transactions or paying bills via the Internet.
Thanks to technology, and the Internet in particular, people no longer have to leave the house
to shop, communicate, or even do their banking. Online banking allows a customer to make
deposits, withdrawals, and pay bills all with the click of a mouse.
While financial institutions took steps to implement e-banking services in the mid-1990s,
many consumers were hesitant to conduct monetary transactions over the web. It took
widespread adoption of electronic commerce, based on trailblazing companies such as
America Online, Amazon.com and eBay, to make the idea of paying for items online
widespread. By2000,80 percent of U.S.banks offered e-banking. Customer use grew slowly.
At Bank of America, for example, it took 10 years to acquire 2 million e-banking customers.
However, a significant cultural change took place after the Y2K scare ended. In 2001, Bank of
America became the first bank to top 3 million online banking customers, more than 20
percent of its customer base. In comparison, larger national institutions, such as Citigroup
claimed 2.2 million online relationships globally, while J.P. Morgan Chase estimated it had
more than 750,000 online banking customers. Wells Fargo had 2.5 million online banking
customers, including small businesses. Online customers proved more loyal and profitable
than regular customers. In October 2001, Bank of America customers executed a record

1.1 million Electronic bill payments, totaling more than $1 billion. In 2009, a report by
Gartner Group estimated that 47percent of U.S. adults and 30 percent in the United Kingdom
bank online.
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 1.2 ONLINEBANKING-ANOVERVIEW

DEFINITION
Online banking is an electronic payment system that enables customers of a
financial institution to conduct financial transactions on a website operated by
the institution, such as a retail bank, virtual bank, credit union or building
society. Online banking is also referred
As internet banking, e-banking, virtual bank in gand by other terms.
Online banking or E-banking is an umbrella term for the process by which a
customer may perform banking transactions electronically without visiting a
brick-and-mortar institution.
Online banking is the practice of making bank transactions or paying bills via
the Internet. Thanks to technology, and the Internet in particular, people no
longer have to leave the house to shop, communicate, or even do their banking.

HOW ONLINE BANKING EVOLVED INTO A MAINSTREAM

FINANCIAL TOOL

In today’s highly technical world, it’s hard to imagine there was once a time
when all banking was conducted at an actual brick-and-mortar financial
institution. Even simple account transfers required a trip into the bank.
While today’s online banking is filled with amazing innovations, it hasn’t
always been this easy ─ in fact it took a long time to get this far.

HISTORICALDEVOLOPMENT:
The precursor for the modern home online banking services were the distance
banking services over electronic media from the early1980s. The term 'Online'
became popular in the late '80s and referred to the use of a terminal, keyboard
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and TV (or 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 downa
phone line with instructions to the bank. Online services started in New York in
1981 when four of the city's major banks (Citibank, Chase
Manhattan, Chemical and Manufacturers Hanover) offered home banking
servicesusingthevideotexsystem.Becauseofthecommercialfailureofvideotextheseb
ankingservicesnever became popular except in France where the use of videotex
(Minitel) was subsidised by the telecom provider and the UK, where the Prestel
system was used.

While financial institutions took steps to implement in e-banking services in the

mid-1990s, many consumers were hesitant to conduct monetary transactions
over the web. It took widespread adoption of electronic commerce, based on
trailblazing companies such as America Online, Amazon.com and eBay, to
make the idea of paying for items online widespread. By 2000, 80 percent of
U.S. banks offered e-banking. Customer use grew slowly. At Bank of America,
for example, it took 10 years to acquire 2 million e-banking customers.
However, a significant cultural change took place after the Y2K scare ended. In
2001, Bank of America became the first bank to top 3 million online banking
customers, more than20 percent of its customer base. In comparison, larger
national institutions, suchas Citigroup claimed 2.2 million online relationships
globally, while J.P. Morgan Chase estimated it had more than 750,000 online
banking customers. Wells Fargo had 2.5 million online banking customers,
including small businesses. Online customers proved more loyal and profitable
than regular customers. InOctober2001,Bank ofAmerica customers executed a
record 3.1 million electronic bill payments, totalling more than $1 billion. In
2009, a report by Gartner Group estimated that 47 percent of U.S. adults and 30
percent in the United Kingdom are using bank online.
Today, many banks are internet only banks. Unlike their predecessors, these
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internet only banks do not maintain brick and mortar bank branches. Instead,
they typically differentiate themselves by offering better interest rates and more
extensive online banking features.

 First Online Banking Services in the UnitedStates:

According to "Banking and Finance on the Internet," edited by Mary J. Cronin,
online banking was first introduced in the early 1980s in New York. Four major
banks—Citibank, Chase Manhattan, Chemical and Manufacturers Hanover—
offered home banking services. Chemical introduced its Pronto services for
individuals and small businesses in 1983. It allowed individual and small-
business clients to maintain electronic chequebook, register,see account
balances, and transfer funds between checking and savings accounts. Pronto
failed to attract enough customers to break even and was abandoned
in1989.Otherbankshad a similar experience.

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  First OnlineBanking ServicesintheU.K.:
Almost imultaneously with the United States, online bank in garrived in the
United Kingdom. The UK's first home online banking services known as home
link was set up
byBankofScotlandforcustomersoftheNottinghamBuildingSociety(NBS)in1983.Th
e systemused wasbased onthe UK'sPrestelview link systemand used a computer,
suchasthe BBC Micro, or keyboard (Tandata Td1400) connected to the telephone
system and television set. The system allowed on-line viewing of statements,
bank transfers and bill payments.
Inordertomakebanktransfersandbillpayments,awritteninstructiongivingdetailsofth
e intended recipient had to be sent to the NBS who set the details up on the home
link system.
StanfordFederalCreditUnionwasthefirstfinancialinstitutiontoofferonlineinternet
banking services to all of its members in October 1994.

 BanksandtheWorldWideWeb:
In the 1990s, banks realized that the rising popularity of the World Wide Web
gave them an added opportunity to advertise their services. Initially, they used
the Web as anotherbrochure, without interaction with the customer. Early sites
featured pictures of the bank's officers or buildings, and provided customers
with maps of branches and ATM locations, phone numbers to call for further
information and simple listings of products.
At the beginning of 2004, some 33 million U.S. households (31% of the market)
were using one form or another of online banking. Five years later, 47% of
Americans were banking online, according to a survey by Gartner Group.
Meanwhile, in the UK e-banking grew its reach from 63% to 70% of Internet
users between 2011 and 2012.

 FirstOnlineBankinginIndia:
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ICICI bank is the first one to have introduced Online-Banking in 1994 for a
limited range of services such as access to account information, correspondence
and, recently, funds transfer between its branches. ICICI is also getting into e-
trading, thus offering a broader range of integrated services to the customer.

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 FEATURESOFONLINEBANKING:

Onlinebankingfacilitiesofferedbyvariousfinancialinstitutionshavemanyfeaturesand capabilities
in common, but also have some that are application specific.
Thecommonfeaturesfallbroadlyintoseveralcategories:

(A). Abankcustomercanperformnon-transactionaltasksthroughonlinebanking, including

I. Viewingaccountbalances.
II. Viewingrecenttransactions.
III. Downloadingbankstatements,forexample inPDF format.
IV. Viewingimagesofpaidcheques.
V. Orderingchequebooks.
VI. Downloadperiodicaccountstatements.
VII. DownloadingapplicationsforM-banking,E-banking etc.

(B). Bankcustomerscantransactbankingtasksthroughonlinebanking,including–
I. Fundstransfersbetweenthecustomer's linkedaccounts.
II. Paying third parties, including billpayments (see, e.g., BPAY) and thirdparty
fund transfers (see, e.g., FAST).
III. Investmentpurchaseorsale.
IV. Loanapplicationsand transactions,suchasrepaymentsofenrolments.
V. Creditcard applications.
VI. Registerutilitybillersandmakebillpayments.
VII. Financialinstitutionadministration.
VIII. Managementofmultipleusershaving varying levelsofauthority.
IX. Transactionapprovalprocess.

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Somefinancialinstitutionsofferspecialinternetbankingservices,forexample:
Personal financial management support, such as importing data into personal Accounting
Software. Some online banking platforms support account Aggregation to allow the
customers to monitor alloftheir accounts inone place whether theyare withtheir main bank or
with other institutions.

 ADVANTAGESOFONLINEBANKING:
Many banks have begun to offer customers the option of online-internet banking, a practice
that has advantages for both all parties involved. The convenience of being able to access
accounts at any time as well as the ability to perform transactions without visiting a local
branch, draw many
people to be involved. Some of these advantages of internet banking but are not limited to,
include:
Customer’sconvenience
Direct banksareopenfor businessanywhere there isan internet connection. Theyare also 24
hours a day, 365 days a year openwhile if internet service is not available, customer services
is normally provided around the clock via telephone. Real-time account balances and
informationareavailableatthetouchofa few buttonsthus, making banking faster, easierand
more efficient. In addition, updating and maintaining a direct account is easy since it takes
only a few minutes to change the mailing address, order additional checks and be informed
for market interest rates.
Moreefficientrates
The lack of significant infrastructure and overhead costs allow direct banks to pay higher
interest rates on savings and charge lower mortgage and loan rates. Some offer high-yield
checking accounts, high yield certificate of deposits (CDs), and even no-penalty CDs forearly
withdrawal. In addition, some accounts can be opened with no minimum deposits and carry
no minimum balance or service fees.
Services
Direct banks typically have more robust websites that offer a comprehensive set of features
that may not be found on the websites of traditional banks. These include functional
budgetingandforecastingtools,financialplanningcapabilities,investmentanalysistools,

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Loancalculatorsandequitytradingplatforms.Inaddition,theyofferfreeonlinebill payments, online
tax forms and tax preparation.
Mobility
Internetbankingalsoincludesmobilecapabilities.Newapplicationsarecontinuallybeing created to
expand and improve this capability or smart-phones and other mobile devices.
Transfers
Accounts canbe automatically funded froma traditionalbank account via electronic transfer.
Most direct banks offer unlimited transfers at no cost, including those destined for outside
financial institutions. Theywillalso accept direct deposits and withdrawals that the customer
authorizes such as payroll deposits and automatic bill payment.

Easeofuse
Online accounts are easy to set up and require no more information than a traditional bank
account. Many offer the option of inputting the customer's data online or downloading the
forms andmailing them in. If the customer runs into a problem,he has the option of calling or
e-mailing the bank directly.
Environmentfriendly
Internet banking is also environmentally friendly. Electronic transmissions require no paper,
reduce vehicle traffic and are virtually pollution-free. They also eliminate the need for
buildings and office equipment.

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 THEDISADVANTAGESOFINTERNETBANKING:

Internet banking seems like an obvious choice to leave the hassles of traditional money
management behind inexchange forit.However,therearepotentialproblemsassociatedwith
banking over the internet of which customers may not be aware. Consumers need to weighthe
advantages as well as the disadvantages of internet banking before signing up. Some ofthe
disadvantages of internet banking include:

a. Bank relationship
Atraditional bank provides the opportunityto develop a personalrelationship withthat bank.
Getting toknowthe people atyour local branch can be an advantage when a customer needsa
loan or a special service that is not normallyoffered to the public. A bank manager usually

has some discretion in changing the terms of customer's account if the customer's personal
circumstances change. They can help customers solve problems such as reversing an
undeserved fee. The banker also will get to know the customer and his unique needs. If the
customer has a business account,
this personal relationship may help if the customer needs capital to expand. It’s easier to get
thebank’ssupportifthere issomeonewho understandscustomer'sbusinessand vouchforhis
operating plan.

b. Transactionissues
Sometimes a face-to-face meeting is required to complete complex transactions and address
complicated problems. A traditional bank can host meetings and callin experts to solve a
specific issue. Moreover, international transactions may be more difficult (or
impossible)withsome direct banks. Ifa customer depositscashonaregular basis, a
traditionalbank with a drive-through window may be more practical and efficient.

c. Serviceissues
Some direct banks may not offer all the comprehensive financial services such as insurance
and brokerageaccountsthattraditionalbanksoffer. Traditionalbankssometimesofferspecial
services to loyal customers such as preferred rates and investment advice at no extra charge.
In addition, routine services such as notarization and bank signature guaranteed are not
available online. These services are required for many financial and legal transactions.
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d. Security
Direct banks are subject to the same laws and regulations as traditional banks and accounts
are protected by the FDIC. Sophisticated encryption software is designed to protect your
account information but no system is perfect. Accounts may be subject to phishing, hacker
attacks, malware and other unauthorised activity. Most banks now make scanned copies of
cleared checks available online which helps to avoid and identify check fraud. It enables
verification that all checks are signed by the customer and that dollar or euro amounts have
not been changed. The timely discovery of discrepancies can be reported and investigated
immediately.

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 DIFFERENTTYPESOFONLINEBANKING

COREBANKINGSOLUTION orCBS:
Core Banking is a banking service provided by a group of networked bank branches where
customers may access their bank account and perform basic transactions from any of the
member branchoffices. Core banking is oftenassociated withretailbanking and many banks
treattheretailcustomersastheircorebankingcustomers.Businessesareusuallymanaged via the
Co-opporate banking division of the institution. Core banking covers basic depositing and
lending of money.
Normal Core Banking functions will include transaction accounts, loans, mortgages and
payments. Banks make these services available across multiple channels like ATMs, Internet
banking, mobile banking and branches.
The core banking services rely heavily on computer and network technology to allow a bank
to centralise its record keeping and allow access from any location. It has been the
development of banking software that has allowed core banking solutions to be developed.

 HISTORY
Core banking became possible with the advent of computer and telecommunication
technology that allowed information to be shared between bank branches quickly and
efficiently.
Before the 1970s it used to take at least a day for a transaction to reflect in the account
because each branch had their local servers, and the data from the server in each branch was
sent in a batch to the servers in the data centre only at the end of the day(EoD).
Over the following 30 years most banks moved to core banking applications to support their
operationswhereCORE Banking maystand for"centralizedonlinereal-timeexchange". This
basically meant that all the bank's branches could access applications from centralized data
centres. This meant that the deposits made were reflected immediately on the bank's servers
and the customer could withdraw the deposited money from any of the bank's branches.

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 ADVANTAGES:
CentralizedAccounting:
All the transactions of the bank directly impact the General Ledger and Profit and Loss
Account. This provides a real time total picture about the financial position and situation of
the bank
Thishelpsforfinancialmanagement,averycritical and dynamic function in today’s banking.
CentralizedProductControl&Monitoring:
Centralizationhelpsinbetterproductanalysis,monitoringandrollout.
Aspects like interest rate modifications, product modification and interest application can be
done centrally from one place for all the branches.
Bankcanquicklyrespondtomarketscenarioandcustomerneeds.Thisgivescompetitive edge to the
bank.

IntroductionofTechnologyBased Services:
ServicechannelssuchasATM,eitheron-siteoroffsite,canbe started.
Cheque Deposit Machines (CDM) can be installed. Such machine in WAN connectivity can
allow any customer to deposit the cheque for collection at any branch.
Chequebookprintingmachinecanbeinstalledatcentrallocationtogivepersonalized cheque books.
Such machine in WAN connectivity can receive command from any branch.

CentralizedCustomerAccountManagement:
Anycustomerbecomesthe customerofthe bankratherthanofa branch.
With unique ID / Account Number the accounts of the customers can be viewed centrally by
the bank. As such, customer profile, details of products and services availed by him and
customer behaviour about business of the bank can be well understood.
Suchcustomerviewgivesthe bankopportunitytodecidedirectionsforbusiness development and
marketing strategies.

AdvantagestoHeadOffice:
Consolidationof MIS/statements/reportingatoneplacereducingduplicationof tasksat branches
and it is of real time.
Supervisionofbranchesonriskperceptionspossibleasongoing process.

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Frequent audisandtimelycontrolmeasurescan beinitiated. Faster
and practically real time reconciliation of accounts.
Centralized marking and movement monitoring of NPA accounts.
BetterALM,especiallyforshorttermassetsandliabilitiespossible.
Audit on operationalaspects of the accounts can be done at a single location as entire data is
available at one place.
Byinstalling mailing solutiononthe intranet ofthe bank, writtencommunication inthe form of
letters, between H. O. and branches and vice versa, can be eliminated.

Advantagesto Branch:
Withreducedworkatthebranchestheycanfocusondevelopmentofbusiness,customer service and
attendance and meaningful liaison with customer for getting new business.
Since customer needs are known with proper analysis they can be well attended even before
their demands that boosts the image of bank.

 State Bank of India, World's Largest Centralized Core

ProcessingImplementation:
The story began in 2000. With its growth curve heading northward, State Bank of
India(SBI),the country's largest bank withthe largest branch network, realized the need for a
core banking solution. An expression of interest was invited in July 2000, and the actual
implementation was started in August 2003 when the first branch of the bank was put onTCS'
BαNCS core banking solution.

The planning stage lasted three years, while the BαNCS implementation took another five
years (till July 2008) to complete. The entire project of implementing the core banking
solution was handled by TCS as the systems integrator, while other major technologypartners
in the project were HP, Data craft, Cisco and Microsoft. The core banking solution
implemented at SBI and its associate banks currently execute an average of 42 million
transactions per day with a peak of 1,900 transactions per second through a massive network
ofabout 17,700branchesandover20,000ATMsservicingnearly243 millioncustomers. The CBS
at SBI executes an average of 42 million transactions per day with a peak of 1,900
transactions per second through a network of about 17,700 branches.

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Further, SBI had more than 2 lac employees, and many of them had little familiarity with
Web-based technologybefore the core banking solution's implementation. "SBI and TCS had
to ensure that the bank employees were well-acquainted with the use of the solution, Indeed,
at one point of time, SBI had 58 training centres.

ATM BANKING:
Full-servicebanking, 24hoursaday.
MakebankingmoreconvenientwithATMsanddebitcard.
Convenient Self Service
Deposits–Cashandcheckdepositscanbe madeatmost BBVACompassATMs. Withdraw
Funds – The cash you need when you need it.
Transfer funds–Move fundsbetweencheckingaccountsandsavingsaccountsthat arelinked to
your debit card.
Account Management
CheckBalance–Viewyouraccountbalancebeforeyoumakeawithdrawal.
MiniStatement –Receiveaprint outofyourtransactionhistoryandaccount balances. Customizable
FastCash–SetstandardATMwithdrawalamounts.
Receipt Options–Set whetherornotyouwillreceiveareceipt whenyou maketransactions.
Preferred Language – Choose between English or Spanish.

DIGITALWALLET:
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 walletscanhelptakeyouthere.They aresmartphoneappsthatholdyourpayment

andloyaltycardinformation.GoogleWalletandApple’sPassbookaretwoofthemore

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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.

GoogleWallet
Instead oftapping your credit cardonthe 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 ableto
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.
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 fromthe US and only
in the US. Currently, it supports 20+ merchants on the ground and online, promising more
merchants to come.

Apple’sPassbook
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
canuse your loyaltycard orwhen your airline, movieor concertticket is nearing itsduedate.
You add passes through apps that support Passbook (link opens iTunes). So instead of
bringing your grocerycouponsand stack ofloyaltycardswherever you go, you canstoreit in
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.

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DIGITALCASH:
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 cash is
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.

KIOSK BANKING:
This is the latest development on the remote baking front, also knownas '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 reader at 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 centre across the country.

UnlikeanATM,whichisprimarilyused forcashtransactionslikewithdrawals,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).

NEFT:
National Electronic Funds Transfer (NEFT) NEFT is electronic funds transfer system, which
facilitatestransferoffundstootherbankaccountsinover63000bankbranchesacrossthe

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country.Thisisasimple,secure,safe,fastestandcosteffectivewaytotransferfundespecially for Retail
remittances.

FEATURES&BENEFITS
Customers can remitany amountusing NEFT Customerintending to remitmoney through NEFT
has to furnish the following particulars:
IFSC(IndianFinancialSystemCode)ofthebeneficiaryBank/Branch Full
account number of the beneficiary
Nameofthebeneficiary.
The facility isalso availablethroughonline mode forallinternet bankingand mobile banking
customers,bulkuploadfacilityisalsoavailableatbranches.

TIMINGS
Customers can use this facility between 8 AM and 7 PMon 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
lakhRs.25/-pertransactionifthetransactionamount ismorethanRs.1lakh
NOTE: Charges are waived for customers availing services at our branches in North Eastern
States

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
realtimebasis.ThemaindifferencebetweenRTGSandNationalElectronicFundsTransfer

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(NEFT) is that while transfer via NEFT takes place in batches (with settlements and
transactions being nettedoff), inthe case ofRTGS, thetransactions 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 numberandnameofthebank.The bank branches,bothatthe initiatingandreceiving end,
have to be RTGS- enabled for the transaction to be processed. Customers with Internet
banking accounts can do RTGS transactions on their own.

ONLINEDEMAND DRAFT:

A demand draft is a negotiable instrument similar to a bill of exchange. A bank issues a

demand draft to a client (drawer), directing another bank (drawee) orone ofitsownbranches to
pay a certain sum to the specified party (payee).

A demand draft can also be compared to a cheque. However, demand drafts are difficult to
countermand. Demand drafts can only be made payable to a specified party, also known as
pay to order. But, cheques can also be made payable to the bearer.Demand drafts are orders
of payment by a bank to another bank, whereas cheques are orders of payment from an
account holder to the bank.

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 1.3 SECURITYISSUESOFNETBANKING
 INTRODUCTION:
The Internet has made banking, shopping, and conducting other financial transactions online
quite convenient.But when it comesto your money, you want to make sure yourtransactions
are safe.
Security of a customer's financial information is very important, without which online
banking could not operate.
Presently, Internet banking customers only need a computer withaccess to the Internetto use
Internet banking services. Customers canaccess their banking accounts for manywhere inthe
world. Each customers is provided a login ID and a password to access the service. It is
indeed easy and convenient for customers.
However, the use of password does not provide adequate protection against Internet fraud
such as phishing. The problem with password is
that when it has been compromised, the fraudsters can easily take full control of online
transactions. In such cases, the password is no longer works as an authentication token
because we cannot be sure who is behind the keyboardtyping that password in.
However, easy access and convenience should not be at the expenseand mercy of the
securityofinformation. This is important inorderto ensure the confidentialityofinformation
and that it is not being manipulated or compromised bythe fraudsters.
Inthis lesson, we willreview strategies you should employwhendealing withmoneyand the
Internet. You will learn how to make sure a website is secure, including checking the SSL
certificate. In addition, you'll learn the steps you need to take to
Makeshoppingonlineasafeandenjoyable experience.

 TYPESOFFRAUDS:

Nowadays, the nature of attacks is more active rather than passive. Previously, the threats
were all passive such as password guessing, dumpster diving and shoulder surfing. Here are
some of the techniques used by the attackers today:

• Trojan Attack. The attacker installed a Trojan, such as key logger program, on auser’s
computer. This happens when users visited certain websites and
downloadedprograms.Astheyaredoingthis,keyloggerprogramisalsoinstalledontheircomputer
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without their knowledge. When users log into their bank’s website, the information keyed in
duringthat sessionwillbecapturedandsenttotheattacker. Here,theattackerusestheTrojan
asanagent to piggyback information fromthe user’scomputerto hisbackyard and make any
fraudulent transactions whenever he wants.

• Man-in-the-Middle Attack. Here, the attacker creates a fake website and catches the
attention of users to that website. Normally, the attacker was able to trick the users by
disguisingtheir identityto make it appearthatthemessagewascoming fromatrustedsource.

Once successful, instead of going to the designated website, users do not realize that they
actually go to the fraudster’s website. The information keyed in during that session will be
captured and the fraudsters can make their own transactions at the same time.

• Phishing. One ofthe primary methodsa hacker gainsaccessto account information is

through phishing, or tricking the victim into giving up
the information voluntarily. A hacker might send an e- mail or even call, pretending to be a
representativeofthe bankand informing youabout some irregularitieswithyouraccount. All you
need to do to sort things out is to provide your passwordorother account information to verify
your identity. If you ever receive a communication that appears to be from your bank and
requests this type of information, contact your
bank byphone immediately. Do not giveout account informationtoacaller, anddonot click any
links provided in any e-mails that claimto be from your bank. You should also ensure that
any employees with access to the company’s accounts follow the same procedures.

• Keyloggers. Keyloggers are malware programs that record keystrokes and other data,
allowing a hacker to capture your password as you enter it. Maintaining up-to-date antivirus
suites on your company computers can prevent these malicious programs from gaining a
foothold, and setting up your network’s firewall to monitor outgoing traffic can help you
determine when an infection occurs. Many keyloggers and viruses use email to travel from
computer to computer, so adding anti-virus protection to your company’s email server can
help filter out these attacks.
• Spyware. Spyware is the number one way that online banking credentials are stolen
andusedforfraudulentactivities.Spywareworksbycapturinginformationeitheronyour

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computer, or while it is transmitted between your computer and websites. Often times, it is
installed through fake “popup”

ads asking you to download software. Industry standard Antivirus products detect andremove
softwareofthis type, usually by blocking the download and installation before it can infect
your computer.

• VIRUSES. Viruses are designed to compromise your computer systems, and allow
others to gain access to your files, etc. This is different than spyware in that a virus may
search for information considered to be ofvalue, where spyware will wait for input or action
from whomever is using the computer. A system that is compromised may be used to attack
other systems, denying people legitimate access to services. An example would be the recent
activities of the group called
“Anonymous.” This group took over computer systems around the world, and used them to
launch attacks on websites. These types of attacks are called “denial of service” attacks. One
ofthe most common scenarios with viruses is where theywill discover financialdata such as
payroll files, bank account information, and credit card information. This information is then
transferred to criminals who sell it on the black market, or worse – use it for blackmail.
Criminals can get anywhere from pennies to hundreds of dollars for each piece of
information, depending on what it is and how they can exploit it.

• Hacking. Hacking works similarly to viruses. A “hacker” uses software to probe for
vulnerabilities, and then uses programming techniques, software utilities, or system
commands to exploit the vulnerability. The primary objective is to gain access to yoursystem.
Once this access is obtained, you can think of it like a burglary – they search for anything of
value and often times leave damage behind. More threatening are those hackers who simply
take control
of your systemand wait, to see what information becomes available or what other systems
they can gain access to.

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33|Page
• MAN IN THE BROWSER. Man in the browser is a security attack where the
perpetrator installs a
Trojan horseona victim’s computerthat’s capable ofmodifying that user’s Webtransactions as
they occur in real time. According to security expert Philipp Guhring, the technology to
launch a man in the browser attack is both high-tech and high priced. Use of the tactic has
been limited to financial fraud in most cases, due to the resources required. Both Firefox and
Internet Explorer on Windows have been successfully targeted.

• Identity Theft – Identity theft refers to all types of crime in which someone illicitly
obtains and uses another person's personal data through deception or fraud, typically for
monetary gain.

With enough personal information about an individual, a criminal can assume thatindividual's
identity to carry out a wide range of crimes. Identity theft occurs through a wide range of
methods—from very low-tech means, such as check forgery and mail theft to more high-
techschemes, suchascomputer spyware and socialnetworkdata mining. The following table1
illustrates well-known social Web sites that have been attacked.
• Spam: Spam is an electronic 'junk mail' or unwanted messages sent to your email
account or mobile phone. These messages vary, but are essentially commercial and often
annoying in their sheer volume. They maytryto persuade you to buya product or service, or
visit a website where you can make purchases; or they may attempt to trick you intodivulging
your bank account or credit card details.
• Nigerian Scam: Nigerian or Frauds 409 or 419 arebasically the lottery scam in which
some overseas persons are involved to cheat innocent persons or organizations by promising
to give a good amount of money at nominal fee charges. Their intention is to steal money in
the form of fee against the lottery prize.

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 STEPSTOSECUREONLINE BANKING:
 Whenisawebsitesecureforfinancialtransactions?
Before sending any sensitive or financial information online, you want to know that you are
communicating with a secure site. Secure sites make sure all information you send
is encrypted—or protected—as it travels across the Web. The https address heading and your
browser's security symbol are two signs indicating you are on a secure site.
Webaddresseseitherbeginwithhttporhttps. Iftheaddress is https,the informationyousend to it is
encrypted and will look like gibberish if intercepted bycybercriminals.

 Your browser will use a security symbol or lock to indicate that the browser verifies
that the website is a secure site. As seen in the examples below, the look of each browser's
symbol can be slightly different, and it is usually located in the address bar.

 Security alertsandtheSSLcertificate
Secure sites have an SSL certificate. An SSL certificate does two things. First, it acts like a
virtualpassport or driver's license. It means, I am who I sayI am. Second, it
enables encryption. Ifa site does not have an SSL certificate, the address will begin with http
instead of https, and your browser will not show a lock symbol. If it has an SSL certificate,
you can access it by clicking your browser's lock.

WhatshouldIlookforonanSSLcertificate?
The following is an example of an SSL certificate accessed by Firefox. Your browser's SSL
certificate may look different from Firefox's, but you should have access to the same
information.
1. Issued To: Check here to make sure the website you are doing business with matches
the website on the certificate.
2. IssuedBy:Makesure
the certificate authority that issued the SSLcertificateto the website istrustworthy. There are
many different certificate authorities, and like all companies some are more trustworthythan
others. Verifiable SSL certificate authoritycompanies you are likelyto see include VeriSign,
RSA Data Security, Thawte, Geotrust, GoDaddy, and Comodo.
3. Validity: Make sure the SSL certificate has not expired. If it's expired, your
information is not guaranteed to be encrypted.

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 TENSTEPSTOMINIMIZESECURITYISSUES:
1) Install Latest Security Software: Prevention is better than cure and the same is true
for all online transactions. The World Wide Web is full of malware, spam and spyware and
the best protection to avoid your security being compromised is to use good antivirus
software. One can also seek to purchase a full version of protection software rather than an
anti-virus which can guard against phishing, malware and Trojans.

2) Use Auto Update for All Software: If you thought your security on the internet was
not at risk thanksto allthe protective software that you mayhave installed, think again. Even a
smallglitch inanyofthe software being used activelycan lead to possible hacking attempt. The
most commonlyhackedsoftwareincludeswebmailclientsandwebbrowsers. Makesure that you
always have updated to the latest version of your browser and mail clients like thunderbird
and Firefox.
Web browser companies release patches as updates regularly to cover any such securityglitch
in the software. If you findithard to manually check and update their software, the best way is
to keep the auto update option enabled for all software in your computer.

3) Look for Encryption Signs: Before entering any confidential information or sensitive
data on any webpage, check if the website us using proper encryption. Encryption is asecurity
measure that helps protect data while travelling over the various networks on the
internet.Thebasicsighsofencryption includean internet protocol urladdressstarting with https
(where s stands or security) as well as a sign displayed a closed padlock located in the right
corner of the screen.

4) Use Different Passwords: Arecent study has revealed that majorityofthe people use
common passwords for a number of transactions including sensitive transactions like net
banking and credit cards for theconvenienceofrecollecting. Using thesamepassword makes
you at high risk, as if hackers can somehow get access to one password, theywould virtually
have access to all your accounts. The best wayto keep you safe in the virtualworld is to use
unique passwords for different transactions.

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5) Cash on delivery option: If any sites are offering cash on delivery option, don't
hesitate to use it as it is a good safetytip at no cost. Manysites give this option, but manyof us
ignore it mainly because of our carelessness in going through all details.

6) Dealing with Offers: You might be getting lot of promotional mails and coupons as
mails fromretailcompanies. But while utilizing suchoffers, it is recommended to go directly to
the seller site rather than entering details in the coupon link, which will be usually sent by
third parties.
7) Check Website's Digital Certificate: Before doing any transaction from online
retailers and merchant websites, make sure to check for safe digital certificates that can
authenticate the website. Independent services like VeriSign for example is a popular
authentication service provider which helps users to make sure that the website they are
dealing with is genuine and not some fraudulent imposter.

8) AvoidUsingPublicComputers: Alwaysusepersonalcomputersorelectronicgadgets like

phones or tablets to complete any financial transaction over the internet. Never use any public
computers or your friend's mobile for such sensitive transaction as their security may have
been compromised. Also make sure you always connect to the internet using a secured Wi-Fi
connection which is password protected. Doing financial transactions over a publicWi-Fi
connection is highly unsafe and not recommended.

9) Stay Away from Phishing Emails Seeking Confidential Information: Any

promotional mails from your bank or any thirdparty websites or vendors seeking your
sensitive banking information must be ignored as spam. A lot of innocent people have been
trapped by such phishing websites and emails in the past coming in the name of banks, RBI,
IT department etc.Anymailseeking your bankinginformationbyoffering lucrative lotteryor
content winnings must never be encouraged.

10) Buy From Reputed Merchants: Doing online transaction from reputed merchant
websites and e-commerce platforms make sure your security is not compromised.

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 CHAPTER2
REVIEWLITERATURE

38|Page
Introduction
Review of literature forms an integral as wellas an essentialpart of modern research studies.
No researchstudyisconsideredcompleteunlessanextensive literature review is made bythe
researcher. Thebasicpurposeofundertakingthisexercise is tofindtheresearchgapbetween,
studies conducted so far or literature available, and also to finalize precisely the topic of
research handtoget insight intotheresearch topicselected forstudy. Inthissensethisexercise
becomes a sort of exploratory research.

ReviewofLiterature:
E-banking is an innovation when new information technologies merge into traditionalbanking
services. Operating costs minimization and revenue maximization are the major drivers that
boost e-banking services (Sannes, 2001; Reibstein, 2002). E-banking service is basically a
self-service by customers, so for banks, it requires less resources and lower transaction and
production costs (Southard and Siau, 2004; Witman and Poust, 2008). Astudy about the e-
banking over 1999–2006 shows that the application of e-banking can improve
banks’performance in termsofthe growth in assets, reduction inoperating expenses
andportfolio enhancement (Dandapanietal., 2008).Evenin1990s, Sraeel(1996)emphasises that
creating virtualbanking will notonlycreate anew service deliverychannel, but also lead to
value creation to both banks and customers (Hwang et al., 2007; Murphy, 2007).
AmatoMcCoy (2005) further argues that customers will be attracted to e-banking when the
advanced e-banking services like e-transfer and e-bill options are available. Through
interviewing banks in a small island and examining their e-banking websites from 2004 to
2006, Jenkins (2007) indicates that those banks were using e-banking as an assurance to their
customers to maintain a competitive quality of service. To continually improve the
performance of e-banking services, several core-capacities are critical:

 PlanningnewITinfrastructure
 Enhancingtransactionsecurity
 Providingvalue-addedcontent
 Deliveringdifferentiatedservices
 Managingcustomerrelationships
 TheretentionandexpansionofrelationshipswithrelativeolderandlowerIT awareness
customers (Wu et al., 2006)
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E-banking in developing countries grows rapidly in the past decade (Akinci et al., 2004).
Their research indicates that for consumers’ attitudes and adoption towards e-banking, there
were significant differences between the two groups, e-banking users and non-e-banking
users, with respect to demographic profiles, attitudinal properties and preferences for service
delivery channels. For instance, in China, there were only 6000 computers connected to the
internet with 40,000 internet users in 1995, but there were 10.2 million internet-connected
computers and 26.5 million internet users nationwide by the end of June 2001 (Zhao, 2002).
Luet al. (2005)revealthat oneofthekeystrategic responsesofbanks inChina before joining WTO
was to develop e-banking to a more competitive environment, even under the current
condition of lack of practical customer credit system. In another research, Laforet and Li
(2005) examine the extent of e-banking and m-banking in China by investigating its market
status, identifying the target customers, the demographic characteristics of users and non-
users, and comparing their attitudes towards e-banking adoption. They conclude that there
was a low awareness of such services in China, owing to security concerns, perceived risks,
low computer skills and a Chinese tradition of cash-carry banking.

Centeno (2004) argues that speed, the convenience of remote access, 24/7 availability and
price incentives are the main motivation factors for the consumers to use internet banking.
Durkin et al. (2008) notes that the simplicity of the products offered via internet banking
facilitates the adoption of internet banking by consumers. Calisir and Gumussoy (2008)
compare the consumer perception of internet banking and other banking channels and report
that internet banking, ATM and phone banking substitute each other. Maenpaa et.al. (2008)
examine the consumer perceptions of internet banking in Finland and their findings indicate
that familiarity has a moderating role in the perception. Guerrero et al. (2007) examine the
usage of internet banking by Europeans and their results indicate that ownership of diverse
financial products and services, attitude towards finances and trust in the internet as abanking
channelinfluence clients‟ usage of internet banking. Confirming other papers,Sohail and
Shanmu gham (2003) document accessibility of internet, awareness of e-banking and
resistance to change are found to be influencing Malaysians use of internet banking. Another
factor that promotes clients usage of internet banking is seller support (Nilsson, 2007).

40|Page
Joseph and Stone (2003) investigated the customer perception of the impact of technology
on service delivery in the banking sector. According to the findings of this research, high
scores on the ability to deliver service via technology appear to be correlated with high
satisfactionwithservicesdeemed most importantto customers. Hence, availabilityofinternet
banking services appears to be very important for banks for customer satisfaction and
retention. However, availabilityof internet banking services itself is not a sufficient factorto
increase customer satisfaction. User friendliness of the internet banking services appears tobe
an important factor for customers to use these services. In a similar study, Lang and Colgate
(2003) found that customers who do not have IT gap, find it easier to use internet banking
services therefore theyhave higher satisfaction levels than the ones who do not have IT skills.
The empirical study by Broderick and Vachirapornpuk (2002) also show that the level and
nature of customer participation in using internet banking services has the greatest impact on
the perception of service quality

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Chapter 3
RESEARCH
METHODOLOGY

42|Page
 OBJECTIVESOFTHESTUDY:
Themainobjectivesofthestudyare_

 Tounderstandthegenesisand concept ofOnline-Banking.

 Toanalysetheimportance,functions,advantagesandlimitationsofOnline-
Banking.
 To explain the different form of Online-Banking and to
analysetherules&regulationregardingOnline-Banking
guided by RBI.
 Tohighlighting onthesecurityproblems ofOnline-Bankingandhowtoreduce
thesecurity
Issueswiththehelpof securitycontroltools.
 ToanalysethetrendofOnline-Banking withthehelp ofprimarydata.
 Toanalysethepresent e-bankingscenarioconcernedwithATM,
Internet banking, Mobile banking, credit card-debit card, fund
transfer and other e-banking services.
 ToexaminetheimpactofATM, Internetbanking, MobilebankingandCredit
cardson
Customersatisfactionbyanalysingtheproblemsfacedbythe customers.

NEEDOFTHESTUDY:

For the partial fulfillment of requirement for the degree of Master in Commerce this reporthas
been submitted to Nice College Of Commerce, Balangir (Affiliated to Rajendra University)
and carried out in Balangir Town. This assignment is also to get practical and general
knowledge of various activities of management taking all relevant aspects of management in
to consideration. So this study is focus on marketing and consumerperceptioncarried out in
Balangir Town to studythe consumer perceptionon Online Banking System.

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 SCOPEOFTHESTUDY:

The study was undertaken at BALANGIR TOWN. The scope of the study involved study of
mindset of the consumer from the grass root level on Online Banking System. The study
includes the executives and non-executives of different Banking companies of the town,
interaction with various potential consumers and agents,making of questionnaire, and other
relevant things.The study is totally based on the responses fetched from such persons. The
main aim is to get experience and gain practical knowledge.

 Theresultofthisresearchwouldhelpthecompanytohaveabetterunderstanding about the

consumer’s perception towards online banking.
 The study helps the company by creating awareness about the consumers of different
ages and income levels.
 Thestudyalsoenablesthecompanytofocustheconsumer’spreferencesand expectations on
the product which they offer.

RESEARCHMETHODOLOGY:
Methodology is a systematic way of solving a problem it includes the research
methodsfor solving a problem it includes the research methods for solving the problem.

Typeofresearch Data :Descriptiveresearch

source :PrimaryandSecondarydata
Datacollection method :Interview,surveyandinternet
Datacollectiontools :Questionnaires

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 DESIGNOFTHESTUDY
Aresearchdesign is a basic planwhichguides theresearcher inthe collectionand analysis of data
required for practicing the research. It is the conceptual structure which the research is
conducted.It constitutes the Blue Print for the collection, measurement and analysis of the
data. The study is carried out to understand the consumer perception about Online Banking
System in Balangir town. For this study I have used exploratory research design. This
research covers 50 consumers in Balangir city, belonging to various age and income groups.

SAMPLINGTECHNIQUE
The sampling technique that adapted to conduct the surveywas ‘Convenient Random
Sampling’and the area ofthe researchwasconcentrated inthe cityofErodeonly. The survey
wasconducted byvisiting different places like colleges, corporateoffices, respondent’shome
etc...

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 DATA SOURCE
The task of data collection begins after a research problem has been defined. In this
study data was collected through both primary and secondary data source.
A. PrimaryData
Aprimarydata isa data,which iscollected forgathering information first time and to
analyze the problem. In this study the primary data was collected among the
consumers using questionnaire.
B. SecondaryData
Secondary data consist of information that already exits somewhere, having been
collected for some other purpose. In this study secondary data was collected from
company websites, magazines and brochures.

FIELDWORK
An interview-schedule and well-structured questionnaire is administered to the target
respondents to collect primarydata (Copyofquestionnaire is attached in the appendix).Open
and close ended questions are used in the questionnaire. The orderofthe questions is in such a
manner that they begin with simple questions and lead on the questions that needed more
involvement from respondents. The secondary data are collected from periodicals,magazines,
journals and internet

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 LIMITATIONSOFTHESTUDY:
There were certain limitations in undertaking this research work. As it is understood that the
limitations are a part of the project, they have been overshadowed by the benefits of thestudy.
 Thesurveyconductedmaynotbeconsideredascomprehensiveasonlylimited respondents
could be contacted because of the time constraint.
 Customer information is highly confidential, so organization doesn’t disclose it
properly.
 Objectivesandthepurposesofthestudyandthequestions hadto beexplainedto the
respondents and their responses may be biased.
 Someoftherespondentswerereluctanttogivetheir responses.
 Only limited sample size had been considered for the study and therefore, the
conclusions drawn based onthis may not be a reflectionofthe entire population.
The sample size chosen for the questionnaire was only 100 and that may not
represent the true picture of the consumer perception about the online banking
sector.

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 CHEPTERPLAN:
OrganizationoftheStudy
Thereportofthestudyincludesthefollowingfivechapters namely:
CHAPTER-1: Introduction
This chapter includes introductionofvarious topics which is relatedto this studyand the step by procedure of the
research methodology was adopted to carry out this study and its limitation.
CHAPTER-2: ReviewofLiterature
ThischaptercontainsthereviewofliteratureonOnlineBanking System
CHAPTER-3:ConceptualProfile
Thischaptercontainsthe conceptualprofile ofOnlineBankingSystem
CHAPTER- 4: Dataanalysis&interpretation
This chapter presents the organized data in the form of tables, graphs & diagrams. The datawould then be
analyses using appropriate techniques.
CHAPTER-5:Findings&suggestions
Thischapterpresentsthesummaryofthestudy,thefindingsduringthestudy,arrivedconclusions and acceptable &
comprehensive suggestions.

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CHAPTER-4

DATAANALYSIS,
RESULTS
&INTERPRETATION
S

49|Page
35 |Page

50|Page
 DATAANALYSISANDINTERPRETATION
1. GENDERBASISANALYSIS

DATA
ANALYSISINRESPECTOF
RESPONDENTS
90 78
80 72

70

60

50

40
28
30

20
6 8
10

0
RESPONDENTS NON-RESPONDENTS TOTAL-RESPONDENTS
MALE FEMALE

PARTICULA RESPONDEN NON- TOTAL-

RS TS RESPONDENTS RESPONDENTS

MALE 72 6 78

FEMALE 28 8 36

TOTAL 100 14 114

INTERPRETATION:
Datacollectedfrom114respondents,outof100respondentsperformonlinebankingand this is
represented by a column chart with male and female basis analysis. It is good for 51|Page
the banks
as most of the respondents are aware of the internet banking and all the services have
enjoyed them being offered by banks.
 2. AGEBASIS ANALYSIS:

AGEGROUPANALYSIS

BELOW20 20-35 35-50 ABOVE50

AGE FREQUEN PERCENTA CUMULATIVE

GROUP CY GE FREQUENCY

BELOW20 34 30% 34

20-35 44 38% 78

35-50 24 21% 102

ABOVE 50 12 11% 114

INTERPRETATION:
Outof114 respondents34 respondentsarein below 20agegroup,44 respondentsin 20-
35agegroup,24respondentsin35-50agegroupand12respondentsinabove50age group. This
shows with the help of a Pie-Chart.

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36 |Page
 3. OCCUPATIONBASISANALYSIS:

OCCUPATIONBASEANALYSIS
15
31

47
21

OCCUPATI FREQUEN CUMULATIVE PERCENTA

ON CY FREQUENCY GE
STUDENT 31 31 27%

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

OTHERS 15 114 14.00%

INTERPRETATION:
Among114respondents27%arestudents,18%areself-employed,41%areemployees and 14%
are others.

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37 |Page
 4. INCOMEBASISANALYSIS:

35
32
30

25 22
21
20 17
14
15

10 8

0
0-10000 10000-20000 20000-30000 30000-40000 40000-50000 ABOVE50000

MONTHLY INCOME

MONTHLY FREQUEN CUMULATIVE PERCENTA

INCOME CY FREQUENCY GE
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%

ABOVE50000 22 114 20%

INTERPRETATION:
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%
belongtoRs.30000-40000incomegroup,7%belongtoRs.40000-50000and20%belong to
above Rs.50000 group.

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38 |Page
 5. EDUCATIONALPROFILE:

EDUCATIONALQUALIFICATION
19
OTHERS

11
POST-GRADUATE

20
GRADUATE

HIGHERSECONDARY 38

MADHYAMIK 26

0 5 10 15 20 25 30 35 40

EDUCATIONAL FREQUEN PERCENTA CUMULATIVE

QUALIFICATION CY GE FREQUENCY
MADHYAMIK 26 23% 26

HIGHERSECONDARY 38 33% 64

GRADUATE 20 18% 84

POST-GRADUATE 11 9% 95

OTHERS 19 17% 114

INTERPRETATION:
Among114respondents23%are Madhya mik pass,33%areHSpass,18%are graduate, 9%
are Post-Graduate and 17% are others.

55|Page
39 |Page
 6. HOW OFTEN DO YOUUSE INTERNET PERWEEK?

INTERNET USE RATE

PERWEEK
5 9

28

72

ONEHOUR TWOHOURS THREEHOURS MORETHANTHREEHOURS

INTERNETUSERATE FREQUEN PERCENTA CUMULATIVE

CY GE FREQUENCY

ONEHOUR 5 4% 5

TWOHOURS 9 8% 14

THREEHOURS 28 25% 42

MORETHANTHREE 72 63% 114

HOURS

INTERPRETATION:
Among 114 respondents 63% use internet more than three hours per week, 25% use
internetthreehoursperweek,8%useinternettwohoursperweekand4%useinternet one hour in a
week.
56|Page
7. INWHICH BANK DOYOUHAVE ANACCOUNT?

PREFERABLE BANKS
30
27

25
21
20

15
13
12
10 10

SBI AXIS ICICIUCO HDFC UBI BOI PNB STANDARDCHARTEREDOTHERS

NAME OF BANKS FREQUEN PERCENTA CUMULATIVE

CY GE 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

INTERPRETATION:
Among114respondents,27respondentshaveSBIbanka/c,21haveAXISbanka/c,13
haveICICIbanka/c,12haveUCObanka/c,8haveHDFCbanka/c,9haveUBIbank 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. 57|Page
 8. DOYOUAVAILOFBANKINGFACILITIES ONLINE?

ONLINE& OFFLINEBANKING USERS

OFFLINE BANKING USERS 12%

ONLINE BANKING USERS 88%

PARTICULARS FREQUEN PERCENTA CUMULATIVE

CY GE FREQUENCY

ONLINEBANKING 100 88.00% 100

USERS

OFFLINEBANKING 14 12.00% 114

USERS

INTERPRETATION:
Mostoftherespondentspreferonlinebankingservices.About88%respondentssupport online
banking services and only 12% respondents support offline banking services.

40 |Page
58|Page
 9. ISYOURBANKOPERATED UNDERCORE-BANKINGFACILITY?

POLL
FORCOREBANKINGSOLUTION
100 YES,

90

80

70

60

50

40

30
CAN'T
20
NO,0
10

COREBANKING FREQUEN PERCENTA CUMULATIVE

FACILITY CY GE FREQUENCY
YES 91 91% 91

NO 0 0% 91

CAN'T SAY 9 9% 100

INTERPRETATION:
Among100respondents91%saythattheirbankrunundercorebankingsystem butonly 9% have
no clear concept about this and they choose “CAN’T SAY” option.

59|Page
 10. HOWFREQUENTLYDOYOUUSE ONLINE BANKINGSERVICES?

USEOFONLINE BANKING

NEVER

YEARLY 13

OCCASIONALLY 11

MONTHLY 41

WEEKLY
21

DAILY
14
0 5 10 15 20 25 30 35 40 45

USEOFONLINE FREQUEN PERCENTA CUMULATIVE

BANKING CY GE 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

INTERPRETATION:
Most of the people do not need the services of banks regularly. They may transact with
banksonmonthlybasis,weeklyoroccasionally. Thischarts how the habit so people in case of
use of online banking is.

60|Page
41 |Page
 11. HOWMUCH DOYOUSPENDFOR ASINGLE ONLINETRANSACTION?

MONEYSPENDFORSINGLETRANSACTION
ABOVE 20000

10000-20000
10%

40%

5000-10000
15%

25%

TRANSACTI
FREQUEN PERCENTA CUMULATIVE
ON
CY GE FREQUENCY
AMOUNT
0-1000 40 40% 40
1000-5000 25 25% 65
5000-10000 15 15% 80
10000-20000 10 10% 90
ABOVE20000 10 10% 100

INTERPRETATION:
MostoftheonlinebankinusershaveatendencytospendRs.1000orbelowthisamount in a single
transaction.

61|Page
42 |Page
 12. WHYDOYOUAVAILOFONLINEBANKING?

BENEFITSSEEN
BYCUSTOMERS
40 36
35
30
25
20 16
13 11 12
15
10
5
0

PURPOSEOFONLINE FREQUEN PERCENTA CUMULATIVE

BANKING CY GE FREQUENCY
PRIVACY 9 9% 9
24*7 BUSINESS HOURS 36 36% 45
CONVENIENCE 16 16% 61
NOTTOMOVEANYWHERE 13 13% 74
EASYTOUSE 11 11% 85
SAVINGTIMES&SPEED 12 12% 97
HARDTO SAY 3 3% 100

INTERPRETATION:
Mostoftherespondentsfeltthatthe“24*7BUSINESSHOURS”providedbytheinternet
bankingisthehighestmotivating factorforanindividualtouseinternetbankingandrest prefer
“PRIVACY”,”CONVENIENCE”, “NOT TO MOVE” etc.
62|Page
 13. RATINGOFTHEMAINTRANSACTIONS
RATINGOFTRANSACTIONS
90
80
70
60
50
40
30
20
10
0
FUND ATM BANKING ONLINE REQUEST PAYBILLS ONLINE ONLINE
TRANSF BALANC FIXED A SHOPPIN RECHAR
ER E DEPOSIT DEMAND G GE
ENQUIR DRAFT
Y

EXCELLENTGOOD AVERAGE POOR NOTAPPLICABLE

TRANSACTIONS EXCELLE GOO AVERAG POO NOT

NT D E R APPLICABLE
FUNDTRANSFER 35 25 15 20 5
ATM BANKING 68 12 10 8 2
BALANCE ENQUIRY 80 10 10 0 0
ONLINEFIXED DEPOSIT 10 15 10 25 40
REQUESTADEMAND 30 20 10 40 0
DRAFT
PAYBILLS 71 14 8 7 0
ONLINESHOPPING 65 20 7 8 0
ONLINERECHARGE 60 25 15 0 0

INTERPRETATION:
Itisinterestingtoseethatmostoftherespondentsgive“EXCELLENT”ratingtoATM Banking,
Balance Enquiry, Pay Bills, Online-Shopping and Online Recharge.

63|Page
 14. DOESYOURBANKEDUCATEYOUABOUTTHEONLINEBANKING
SERVICESBEING OFFERED?

EDUCATINGABOUT
INTERNET BANKING

YES NO

EDUCATINGNET FREQUEN PERCENTA CUMULATIVE

BANKING CY GE FREQUENCY

YES 46 46% 46

NO 54 54% 100

INTERPRETATION:
Among100respondents46peoplesaidthattheirbankeducatedthemabouttheseveral online
banking services and on the other hand 54 people said that their bank did not educate them
about their net banking services.

64|Page
 15. AREYOUAWAREOFTHESECURITY THREATSANDFRAUDSINONLINE
BANKINGAND FAMILIAR WTH THE METHODS OF SECURED ONLINE
TRANSACTIONS?

AWARENESSOFFRAUDSANDSECUREDBANKING
YES,

60

50

40 NO,

30
CAN'TSAY,
20

10

AWARENESSOF FREQUEN PERCENTA CUMULATIVE

FRAUDS CY GE FREQUENCY
YES 58 58% 58

NO 27 27% 75

CAN'T SAY 15 15% 100

INTERPRETATION:
Itisgoodtoseethatmostoftheusershaveknowledgeaboutfraudsandsecurityissuesof 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.

65|Page
43 |Page
16. DOESYOURBANKUPGRADEONLINESERVICES REGULARLY?

UPGRADATIONOF
NETBANKING
5%

NO 29%

YE S

UPGRADATION
OF ONLINE FREQUEN PERCENTA CUMULATIVE
SERVICES CY GE FREQUENCY

YES 66 66% 66

NO 29 29% 95

CAN’T 5 5% 100
SAY

INTERPRETATION:
Thisisveryinterestingtoseethatmostoftheonlinebankingusersthinkthattheir banks upgrade
their services regularly. But some people did not think so and some few did not come to a
conclusion.

66|Page
17. AREYOUINTHEOPINIONTHATYOURBANKCHARGESUNNECESSARY
FOR ONLINE SERVICES?

RATINGFOR BANK
CHARGES
37
60 51

50

40

30

20 12

10

0
YES NO CAN'TSAY

VOTE FOR CUMULATI

FREQUEN PERCENTA
UNNECESSARY VE
CY GE
BANKCHARGES FREQUEN
CY
YES 37 37% 37

NO 51 51% 88

CAN'T 12 12% 100

SAY

INTERPRETATION:
37%usersthinkthattheirbankschargeunnecessaryforonlineservices. While51%people think that
their banks don’t do such and 12% people are unable to answer this question.

67|Page
68|Page
 18. DOYOUTHINKONLINEBANKINGISBETTERSUBSTITUTEOF
TRADITIONALBANKING SYSTEM?

PREFERENCE OF
NETBANKING
8

23

69

YES NO CAN'TSAY

ONLINE
FREQUEN PERCENTA CUMULATIVE
BANKING-
CY GE FREQUENCY
BETTER
SUBSTITUE
YES 69 69% 69
NO 23 23% 92
CAN'T 8 8% 100
SAY

INTERPRETATION:
ItwaswitnessedthatmostoftherespondentspreferredusingInternetBankingoverthere traditional
banking system. Thus, Internet Banking has a bright future ahead.

69|Page
 19. WHICH FACTOR DO YOU THINK RESPONSIBLE FOR NON-
ACCESSBILITYOFONLINEBANKINGBYMAJORITYOFPEOPLEINYOUR
AREA?

REASONOFNON-ACCESSBILITYOFNETBANKING

LACKOFKNOWLED G
15

LESSINTERNETCONNECTION 25

LACKOFCOMPUTERFACILITY
22

RURALAREA
8

INADEQUATEATMSERVICE
12
LACKOFAWARNESS
18

0 5 10 15 20 25 30

CUMULATI
NON-ACCESSBILITY FREQUEN PERCENTA
VE
CY GE
FREQUEN
CY
LACKOFAWARNESS 18 18% 18

INADEQUATEATM 12 12% 30
SERVICE
RURALAREA 8 8% 38

LACKOF
22 22% 60
COMPUTER
FACILITY
LESS
25 25% 85
INTERNET
CONNECTIO
N
LACKOFKNOWLEDGE 15 15% 100

INTERPRETATION:
Among 100 respondents 18 choose “LACK OF AWARNESS”, 12 choose “INADEQUATE
ATM SERVICE”, 8 choose “RURAL AREA”, 22 choose “LACK OF
COMPUTERFACILITY”,25chooseLESSINTERNETCONNECTION”and15choose 70|Page

44 |Page
“LACKOFKNOWLEDGE”option.

20. INYOUROPINIONWHICHONLINEOPERATIONSHOULDBEMODIFIED
PROMPTLYFOR BETTER SERVICES IN FUTURE?

VOTEFORMODIFICATIONOFSERVICES
35 31
30
25
20 18
15 13
11
10 8 7
5 3 5
0 2 2

MODIFICATION CUMULATI
FREQUEN PERCENTA
OF VE
CY GE
SERVICES FREQUEN
CY
ATMSERVICE 31 31% 31
ACCOUNTSSERVICE 3 3% 34
FUNDTRANSFER 11 11% 45
BILLPAYMENT 13 13% 58
E-TAXPAYMENT 8 8% 66
E-DEPOSIT 2 2% 68
DEMATSERVICE 7 7% 75
LOANS&CREDIT 2 2% 77
SERVICE
INTERNET
18 18% 95
SECURITY
SERVICE
CUSTOMER
5 5% 100
FEEDBACK
SERVICE

INTERPRETATION:
Thischartshowsthat“ATMSERVICE”,“BILLPAYMENT”and“INTERNET SECURITY
SERVICE” should be modified in near future.
71|Page
 CHAPTER-
5FINDINGS,
SUMMARY,
&CONCLUSION

72|Page
 5.1 THE MAJOR FINDINGS OF THE PRIMARY SURVEY ARE:

114 people respond to this study. But out of which 100 people claim that they

perform online banking service.

72respondentsuseinternetmorethanthreehoursinaweek.
Out of 100 people 72 are male and 28 are female. That’s mean the male have
more knowledge about the transactions and having more knowledge about the
services provided by the banks. Only working ladiesand school-college students
having knowledge about that service.
Mostoftherespondentswholiesunderbelow20-35areusingE-Bankingservices.
Among 100 respondents’ 68 people are either service holders or business men.
Because the services are more benefited towards this people.
Most oftherespondentsareeitherH.SpassorGraduate.


70%respondentswhoareusingthisfacilitieshavingincomelieuptoRs.30000,andtherest
having income between Rs.30000-50000.
 Itisveryinteresting to seethat71 peoplehaveaccountsin SBI,
AXISandICICI banks.ButSBI BANK has more customers than others.
 Among 100 respondents91 said that their banks run under CORE
BANKING SOLUSION and this is very good for Indian economy.
 24*7BUSINESSHOURSisthemainbenefit whichonline
bankingusershaveseenamongother options.
 Most of the onlinebanking users have a tendency to spend Rs.1000
orbelow this amount in a single transaction.
UsersgotexcellentservicesfromATMBANKING,BALANCEENQUARY,BILL
S PAYMENT, ONLINE SHOPPING andONLINE RECHARGE etc. and other

73|Page
services have not excellent performance like that.
Among 100 respondents 46 people said that their bank educated them about
the several online banking servicesandontheotherhand54 peoplesaidthat their bank did
noteducatethemabout their net banking services. So it is very controversial matter.
Mostof
theusershavenorequirementfordailyormonthlybasetransactions,theyprefer monthly
base transactions.
 This studyrevealedthat most oftheusers claim thattheyaware ofsecurity
threatsand theytook recommend steps to secure the net banking.


Maximumnumberofrespondentsclaimthattheirbanksdonotchargeextrachar
gesfornet banking facilities.
 Outof100respondents69
peopletoldthattheywillcontinueonlinebankingactivitiesinfuture.
Mostoftherespondentsclaimthat LACKOF
AWARENESS,LESSCOMPUTERFACILITIES and LESS INTERNET
CONNECTION are the main causes for non-accessibility of online banking by
majority of people in their area.
People alsoclaim thatATMSERVICE,BILLPAYMENTSERVICE
andINTERNET SECURITY SERVICE should be modified in near future. Some
people also vote for CUSTOMER FEEDBACK service.
Moreover18 peoplearehighlysatisfied with this servicesand50 peopleare
satisfiedandremain are not properly satisfied.

74|Page
ADVANTAGESOFONLINEBANKING

1. Offersonpurchasesandpayments–

consumersgetgreatoffersiftheyareonline shoppers and make

payments using a debit card

2. IfconsumershaveVisaorMastercard,theycanget betterdeals

3. Schedulepayments–

Recurringpaymentsandtransferscanbechallengingtodealwithif one is

using traditional methods

4. Throughonlinebanking,onecanschedulethesepaymentswithoutmakingerror

5. Thisnewmethodismorereliableandsavesenergy,time,andeffort

6. Openfixeddepositsandrecurringdepositsonline–

Openingfixeddeposits,and recurring deposits traditionally is too

long and tiring

75|Page
7. Withonlinebanking,consumerscandoit

withjustafewclicks.Theycanalsoschedule thetransaction date, check

your returns, etc. This methodisa morerelaxed and convenient approach

for consumers

8. Investinginmutualfunds–

Onlinebankingisaconvenientmethodtodealwithmutual funds

investments

9. Theprocessiserror-free,paper-free,andhassle-free

10. Onecaneasilykeeptrackofinvestmentandfluctuateit(bywithdrawingandde

positing) whenever needed with some clicks

11. ApplyingforIPOs–

Applyingforaninitialpublicoffering(IPO)throughonlinebanking is pretty

simple because the procedure is easy to follow

12. Travelbookings–Thereisnota singleperson

wholikestostandinqueuestomakea booking

13. WithOnlinebanking,youcanbookyourflight,hotel,orrestaurantjustus

ingyour fingertips

14. Youschedulethesereservationswithinafewminutes

15. Thisprovidesconsumerswithastress-freetrip

16. Verification–

76|Page
 Onlinebankingallowsyoutoexperiencequickproceedings,including

verification of your KYC documents

17. Allyouhavetodoisuploadallthedocumentsandtrackyourapplication

18. ProperTrackofTransactions–

Thebankprovidesacknowledgementslipsafter transactions that

are likely to be lost

19. However,internetbankingmakesitpossibletokeeptrackofallthetransaction

sinitiated by the user very easily

20. Inthe‘TransactionHistory’section,transactionsandfundtransferswillbelis

talong with other details suchaspayee names, bank account numbers,

the amount paid, date, and time of payment.

21. QuickandSecure–

Iftwoaccountsareheldatthesamebank,userscantransfer funds instantly

between them

22. As per theuser’s convenience, funds can betransferred via NEFT,

RTGS, and IMPS.

Taskslikebillpayments,loanandtaxpayments,andEMIpaymentscanbedon

equickly

23. Moreover,itprovidessecurityduetouniqueIDsandpasswords

77|Page
 CONCLUSIONANDLIMITATION:

In a country like India, there is need for providing better and customized services to

the customers. Banks must be concerned about the attitudes of customers with regard

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 kind frauds. The present study showsthat customersare

morereluctant to accept newtechnologiesormethodsthat might contain littlerisk.

Hence, banks should designthe websitetoaddress securityand trust issues.

Thesurveywasconductedwith114peopleofUttarparaarea.So

wecan’tsaythatthisisthereal trends of net banking of whole the country.

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

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.

78|Page
Anotherpointispeoplearenotdisclosetheirpersonaldatatruly.

Duetoshortageoftimedata can’tbecollectedformaltypesofpeople.

Thestudywasconductedwiththehelpofstudents,serviceholdersandbusinessmenetc.

ThestudyrevealsthatATMBANKING,BILLPAYMENT,ONLINESHOPPINGandONL

INE RECHARGE

Etc. are performed by so many respondents but it does not reflect that NEFT, RTGS

or DMAT services are not performed by the people.

79|Page
 RECOMMENDATIONS:

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 in nature.

Recommendationstobanks:

• BanksshouldobeytheRBI normsandprovide

facilitiesasperthenorms.Butthisarenot completely followed by the banks. Some

of our respondents complained that their bank do not

givefeedbackofonlinetransactioninpropertimes.Ifcustomersdonot getproper

feedbackthen their interest in online services will be reduced. So bank should

take proper steps to build their feedback services.

• Internetbankingfacilitiesmustbemadeavailableinallbanksaswellasinallbran

ches.

• There are some co-operative banks in this area and this type of banks still

do not have core-banking facilities. For this reason this type of bank lose their

customers. So co-operative banksshould becoveredundercore-

bankingsystem.

80|Page
 SUGGESTIONS:

 Changeyourpasswordregularly

For the first timeyou login to yourinternet bankingaccount, you will

needtousethepassword providedbythebank.However,you

needtochangethispasswordinordertokeepyouraccount safe.Inaddition,keep changing

your password atregularintervals. More importantly,keepthe password confidential at

all times.

 Donotusepubliccomputerstologin

Avoid logging into your bank accountat common computers in cyber cafes or

libraries.These

arecrowdedplaces,andtherearemorechancesofyourpasswordbeingtracedorseenbyothers

. Ifyou haveto login from such places, make sure you clear the cache and browsing

history,and deleteall the temporary files from the computer. Also, never allow the

browser to remember your ID and password.

81|Page
  Donotshareyourdetailswithanyone

yourbank will neverask for your confidential informationvia phoneor email.

So whether you getanapparent phone call fromthe bank or an email requesting

your details,do not give out your login information. Use your login ID and

password only onthe official login page of the

bank,whichshouldbeasecurewebsite.Lookfor'https://'intheURLwhenloggingin;i

tmeans that the website is secure.

 Keepcheckingyoursavingsaccountregularly

Check youraccountaftermaking anytransactiononline. Verify

whethertherightamonthas beendeductedfromyouraccount.Ifyou

seeanydiscrepanciesintheamount, informthebank immediately.

 Alwaysuselicenceanti-virussoftware

Toprotect your computer from new viruses, ensure that you always use licenceanti-

virus software.Piratedversionsofanti-virussoftwaremaybeavailableforfree,

buttheymayfailto

protectyourcomputerfromnewvirusesprevalentintheonlineworld.Inaddition,you willget

82|Page
notifications for updates in the software periodically. Make sure that you keep your

anti-virus updated, so that your confidential information is always protected.

 Disconnecttheinternetconnectionwhennotinuse

Mostbroadbandusersdonotdisconnecttheinternetconnectionontheircomputer

whentheyare notusing it. Malicious hackers canaccess your computer via aninternet

connectionand steal your confidential banking information. Tokeep yourdata

protected, ensure that you disconnect from the internet when you do not require it.

 TypeyourinternetbankingURL

Itisa safer totypeyour bank URLintheaddressbar ofthebrowser thanclickinlinksgiven

inan email. There are instances of fraudsters sending emails with fraudulent websites

links that aredesigned exactlylikethebank’soriginalwebsite.Onceyou

enteryourlogindetailsonsucha website, they may Be used to access your account and

steal your money. While loggingon, check for 'https://'in the URL and ensurethat it is

your bank’s authentic website.

83|Page
 BIBLIOGRAPHY
WEBSITES:
• www.google.com
• www.wikipedia.in
• www.slideshare.net
• www.scribed.in
• www.investopedia.com
• www.yahoo.com
• www.sbionline.com
• www.sbi.co.in
• www.linkedin.com
• www.rbi.org.in
• www.rbi.in

BOOKS:

• AnIntroductiontoE-Commerce:-
writtenbyRamitKumarRoy&DebasriDeyand published by the Elegant
Publications.
• E-Commerce:-writtenbyProf.
(Dr.)DilipKumarChakraborty&Prof.Debdu
• Lal Chatterjee and published by B.B. Kundu Grandsons.
• Introduction to information technology & its Business
Application:- written by A.K. Mukhopadhyay & A. Das by kali
matapustakalaya.

84|Page
QUESTIONNAIRE
How long have you been using the WWW?

Less than 1 month

1 to 6 months
6 to 12 months
More than 1 year

How many hours per week do you use your computer for fun/play?

Less than 1
1 to 5 hours
5 to 10 hours
10 to 20 hours
over 20 hours

How many hours per week do you use your computer for work?

Less than 1
1 to 5 hours
5 to 10 hours
10 to 20 hours
over 20 hours

How many hours per week do you use your computer for personal reasons?

Less than 1
1 to 5 hours
5 to 10 hours
10 to 20 hours
over 20 hours

85|Page
Have you performed any of the following activities on-line? (Please check all that apply)

Tax filing

Purchased/sold financial product (e.g., stock, bonds)

Neither of these

How frequently do you use telephone banking services per month (for example, balance inquiry,
fund transfer between accounts)?

Less than 1
1 to 3 times
3 to 8 times
8 to 12 times
over 12 times

How frequently do you visit your bank branch per month?

Less than 1
1 to 3 times
3 to 8 times
8 to 12 times
over 12 times

How frequently do you use an Automated Teller Machine (ATM) per month?

Less than 1
1 to 3 times
3 to 8 times
8 to 12 times
over 12 times

86|Page
What is the main reason that you typically visit your bank branch (please choose the single most
important reason)?

to make a deposit
to get advice for investment options
to inquire about a balance
to withdr aw cash
other

Have you purchased any product through WWW?

Yes
No

Approximately how many times have you purchased any product through the Internet in the last
12 months?

Less than 1
1 to 3 times
3 to 8 times
8 to 12 times
over 12 times

In the past five years, other than for geographical relocation, how many times have you switched
to a different bank?

Never
1 to 3 times
3 to 8 times
over 8 times

Have you used (or are currently using) any off-the-shelf personal finance management software
programs (such as Quicken, MS Money, or Meca software)?

Yes
No

87|Page
If you answered Yes to the previous question, how long have you been a regular user of such
software?

Less than 1 month

1 to 6 months
6 to 12 months
More than 1 year

Not applicable (check here if you answered "No" above)

For your on-line banking, which of the following category best explains your situation?

o Your bank provides you with an application software program that operates on your PC.
You then dial into the bank via modem, download data, and operate the program that is
resident on your PC.

o You use a Web browser, but the actual banking software resides on the bank's server in
the form of bank's home page.

o Don't use either of these/don't use on-line banking

Do you have a bank account for which you interact with your bank mostly through a WWW
browser? (If yes, we refer to this type of bank account as an Internet bank account)

Yes
No

What banking services do you use which your Internet bank offers? (Please check all you are
currently using)
Seeking product and rate information

Calculate loan payment information

Download loan applications

Download personal bank transaction activity

Check balances on-line

88|Page

Inter-account transfers

On-line bill payments

 Apply for consumer loans or credit cards online

Others

Not Applicable
What is the percentage of your household monthly income you deposit to your Internet bank
account?
%

know
Not Applicable
What was the single most important reason that you chose this particular bank as your
Internet bank? (please choose one)

have a traditional bank account with the same bank

The brand name of the bank
The excellent service offered by this bank
Others
Not Applicable
In addition to your Internet bank account, do you also have a traditional bank account?
Yes
No
Not applicable

These questions were asked if the respondent answered "No" to having an Internet bank account.
What are the main reasons that you have not opened an Internet bank account yet? (check all that
apply)

Under age

Never heard of Internet banking

Concerned about security

Haven't taken time to open an account

Don't see any real value in having this type of account

Too new. I would like to see how it works, then I may open an account
Not available through my bank
Others
Not Applicable

How likely is it that you will open an Internet bank account within the next 12 months?

89|Page
 Very neither Unlikely

Somewhat Unlikely

Neither Unlikely nor Likely

Somewhat Likely

Very Likely
Not applicable

90|Page