SYNOPSIS FOR FINAL PROJECT GROWTH OF E-BANKING IN INDIA AS A PART OF THE FULFILLMENT OF MASTER OF BUSINESS ADMINISTRATION AWARDED BY MAHARISHI

DAYANAND UNIVERSITY, ROHTAK

SUBMITTED TO: CONTROLLER OF EXAMINATION M.D. UNIVERSITY, ROHTAK PROJECT SUPERVISOR: Ms. RUPALI MADAN (LECTURER-MBA DEPTT.)

SUBMITTED BY: ANKITA GOYAL REG. NO. 06-LAMS-3 INST. ROLL NO. 6MBA 05

LINGAYAS INSTITUTE OF MANAGEMENT AND TECHNOLOGY SESSION 2006-08

INSTITUTE OF MANAGEMENT STUDIES AND RESEARCH MAHARISHI DAYANAND UNIVERSITY, ROHTAK PROFORMA FOR APPROVAL OF PROJECT PROPOSAL Name of the student ______________________________ Class Roll No. Institutes name Title of the Project Subject Area ______________________________ ______________________________ ______________________________ ______________________________

Name and designation of the Supervisor_________________ _________________________________________________ Signature of the supervisor Signature of the Principal/Director Date: Signature of the student

SYNOPSIS

APPROVED

NOT APPROVED

Comments/Suggestions for reformulating the Project _________________________________________________________________________ _________________________________________________________________________ ________________

Authorized Signatory Date:

Declaration I Ankita Goyal Univ.Reg. No.06-LAMS-03 of MBA (Finance & Human Resource) From Lingayas Institute of Management & Technology hereby declare that the project entitled Growth of E-Banking in India is an original work and the same has not been submitted to any other institute for the award of any other degree. The feasible suggestions have been duly incorporated in consultation with the supervisor.

Signature of Supervisor Forwarded By

Signature of Student

Director Principle of Institute

Contents Introduction Review of Existing Literature

Objectives of the study

Research Methodology

Limitations of the study

Bibliography

INTRODUCTION
Internet banking (or E-banking) means any user with a personal computer and a browser can get connected to his bank -s website to perform any of the virtual banking functions. In Internet banking system the bank has a centralized database that is web-enabled. All the services that the bank has permitted on the Internet are displayed in menu. Any service can be selected and further interaction is dictated by the nature of service. The traditional branch model of bank is now giving place to an alternative delivery channels with ATM network. Once the branch offices of bank are interconnected through terrestrial or satellite links, there would be no physical identity for any branch. It would a borderless entity permitting anytime, anywhere and anyhow banking. The network that connects the various locations and gives connectivity to the central office within the organization is called Intranet. These networks are limited to organizations for which they are set up. SWIFT is a live example of Intranet application. The Internet banking is changing the banking industry and is having the major effects on banking relationships. In India, a number of banks have either gone for Internet Banking or are on the verge of going for it. Penalty due to non-payment of bill is not new to anyone of us. And quite obviously, who likes the long procedure of writing a cheque, standing in a long queue and then ensuring that the particular amount is available in your bank account? Similarly, Mr Sharma, who is on business tour for at least 25 days a month, finds it difficult to clear his dues on time because of his busy schedule. He, like many of us, was possibly not aware of the online services, banks are offering these days. With just a click, all his dues would have been cleared long back. However, it's never too late to mend. Indian banks are trying to make your life easier. Not just bill payment, you can make investments, shop or buy tickets and plan a holiday at your fingertips. In fact, sources from ICICI Bank tell us, "Our Internet banking base has been growing at an exponential pace over the last few years. Currently around 78 per cent of the bank's customer base is registered for Internet banking." To get started, all you need is a computer with a modem or other dial-up device, a checking account with a bank that offers online service and the patience to complete about a onepage application--which can usually be done online.

REVIEW OF EXISTING LITERATURE

Internet banking in India The Reserve Bank of India constituted a working group on Internet Banking. The group divided the Internet banking products in India into 3 types based on the levels of access granted. They are: i) Information Only System - General purpose information like interest rates, branch location, bank products and their features, loan and deposit calculations are provided in the banks website. There exist facilities for downloading various types of application forms. The communication is normally done through e-mail. There is no interaction between the customer and bank's application system. No identification of the customer is done. In this system, there is no possibility of any unauthorized person getting into production systems of the bank through Internet. ii) Electronic Information Transfer System - The system provides customer- specific information in the form of account balances, transaction details, and statement of accounts. The information is still largely of the 'read only' format. Identification and authentication of the customer is through password. The information is fetched from the bank's application system either in batch mode or off-line. The application systems cannot directly access through the Internet. iii) Fully Electronic Transactional System - This system allows bi-directional capabilities. The customer for online update can submit transactions. This system requires high degree of security and control. In this environment, web server and application systems are linked over secure infrastructure. It comprises technology covering computerization, networking and security, inter-bank payment gateway and legal infrastructure. E-banking provides the following services:

Bill payment service Fund transfer Credit card Railway pass Investing through Internet banking Recharging your prepaid phone Shopping at your fingertips

Internet banking versus traditional method Inspite of so many facilities that Internet banking offers us, we still seem to trust our traditional method of banking and is reluctant to use online banking. But here are few cases where Internet banking will turn out to be a better option in terms of saving your money. 'Stop payment' done through Internet banking will not cost any extra fees but when done through the branch, the bank may charge you Rs 50 per cheque plus the service tax. Through Internet banking, you can check your transactions at any time of the day, and as many times as you want to. On the other hand, in a traditional method, you get quarterly statements from the bank and if you request for a statement at your required time, it may turn out to be an expensive

affair. The branch may charge you Rs 25 per page, which includes only 30 transactions. Moreover, the bank branch would take eight days to deliver it at your doorstep. If the fund transfer has to be made outstation, where the bank does not have a branch, the bank would demand outstation charges. Whereas with the help of online banking, it will be absolutely free for you. As per the Internet and Mobile Association of India's report on online banking 2006, "There are many advantages of online banking. It is convenient, it isn't bound by operational timings, there are no geographical barriers and the services can be offered at a miniscule cost." Security Precautions Customers should never share personal information like PIN numbers, passwords etc with anyone, including employees of the bank. It is important that documents that contain confidential information are safeguarded. PIN or password mailers should not be stored, the PIN and/or passwords should be changed immediately and memorized before destroying the mailers. Customers are advised not to provide sensitive account-related information over unsecured e-mails or over the phone. Take simple precautions like changing the ATM PIN and online login and transaction passwords on a regular basis. Also ensure that the logged in session is properly signed out. Growth in Internet banking Numerous factors including competitive cost, customer service and demographic considerations are motivating banks to evaluate their technology and assess their electronic commerce and Internet banking strategies. Many researchers expect rapid growth in customers using online banking products and services. The challenge for national banks is to make sure the savings from Internet banking technologies more than offset the costs and risks associated with conducting business in cyberspace.

OBJECTIVES OF THE STUDY

To study how Information technology helps in todays Banking system, it helps to identify customer needs and offer tailor made products to match them. To study the evolution of Internet banking and structure of E-banking. To study how centralized operations and process automation is done using core banking applications. To study the risks and security measures associated with E- banking.

RESEARCH METHODOLOGY
Research is an academic activity and the term is used in a technical sense. According to Clifford, research comprises defining and redefining problems, formulating hypothesis or suggested solution, collecting, organizing and evaluating data making deductions and reaching conclusion, and at least carefully testing the conclusions to determine whether they fit the formulating hypothesis. Methods of data collection Primary Data: Primary data will be collected through Questionnaire and Personal Interviews.

Secondary Data: These will be extracted from existing literature in magazines, Internet, books, newspapers, etc.

Analysis of data Analysis of data refers to the analysing and interpreting the data collected. The analysis of data in this project will done by table, graphs, etc.

LIMITATIONS OF THE STUDY

The probable limitations of the project can be: There can be biases in providing information by the bank manager. Getting information of all the banks is a tedious and time taking task.

BIBLIOGRAPHY
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http://www.worldjute.com/ebank.html http://us.rediff.com/money/2006/nov/17mc.html http://www.banknetindia.com/banking/ibkgintro.htm http://www.banknetindia.com/banking/rps1.htm http://www.banknetindia.com/banking/rps1.htm http://www.banknetindia.com/banking/rps.htm