A

PROJECT ON
AN ANALYSIS OF E-BANKING FACILITIES PROVIDED BY
HDFC BANK
SUBMITTED TO
THE UNIVERSITY OF MUMBAI
IN PARTIAL FULFILLMENT FOR THE AWARD OF
THE DEGREE OF BACHELOR OF COMMERCE
(BANKING AND INSURANCE)
SEMESTER V
(SEAT NO: 1083263)

BY
BHARAT R. SIRVEE
THE S.I.A COLLEGE OF HIGHER EDUCATION
2014-2015
1

DECLARATION BY THE RESERCH STUDENT

I hereby declare that this project titled AN ANALYSIS OF E-

BANKING FACILITIES PROVIDED BY HDFC BANK.

Submitted by me is based on actual work carried out by me under the guidance and
supervision of MR.HASIT KUMAR NAGARIYA.
Any reference to work done by any other person or institution or any
material obtained from other sources have been duly citied and reference.
It is in future to state that this work is not submitted anywhere else for any
examination.

THE S.I.A COLLEGE OF HIGHER EDUCATION

SIGNATURE OF STUDENT

(BHARAT R SIRVEE)

ACKOWLEDGEMENT
I am thankful to Professor MR. HASIT KUMAR NAGARIYA
for her valuable guidance in successful completion of this project.
My overriding debt due to our Principal Dr. PADAMAJA ARVIND
MAM and librarian MRS.BHARATI RAO MAM.
Last but not the least I cannot forget my friends and my parents
whose constant encouragement and support made this task a happy job.

SIGNATURE

BHARAT R SIRVEE
(THIRD YEAR BACHELOR OF COMMERCE)
(BANKING AND INSURANCE)

The SIA College Of Higher Education.

P88, MIDC Residential Area Dombivli Gymkhana Road,
Near BalajiMandir, Dombivli (East).421 203.
Email: sia.college@yahoo.com

CERTIFICATE
This is to certify that,
Mrs. BHARAT R SIRVEE
Student of BCOM (Banking and Insurance V) 2014-2015
Seat No.1083263has successfully completed his Project
Work on AN ANALYSIS OF E-BANKING FACILITIES
PROVIDED BY HDFC BANK under the guidance of MR.
HASIT KUMAR NAGARIYA as per Mumbai University
syllabus.

COURSE CO-ORDINATOR
EXTERNAL EXAMINER

PROJECT GUIDE

PRINCIPAL

INDEX
SR.NO

TOPIC

CHAPTER 1

INTRODUCTION TO E-BANKING

INTRODUCTION

HISTORY

INDIAN SCENARIO

MEANING

DEFINITION

CHAPTER 2

HISTORY OF HDFC BANK

HISTORY

DISTRIBUTION NETWORK

BUSINESS FOCUS

PAGE NO

10

16

CHAPTER 3

BUSINESS OF HDFC BANK

21

CHAPTER 4 FACILITIES PROVIDED BY HDFC BANK

23

CHAPTER 5 E-BANKING FACILITIES PROVIDED BY HDFC BANK

22

CHAPTER 6 IMPORTANCE OF E-BANKING FACILITY

37

CHAPTER7

E-BANKING SERVICES

40

CHAPTER8

BENEFITS/CONCERNS OF E-BANKING

44

CHAPTER9

NEWS AND ARTICLES

53

10

CHAPTER10

SWOT ANALYSIS

49

11

CHAPTER11

RESEARCH AND METHODOLOGY

58

12

CHAPTER12

ANAYLISIS AND INTERPRETATION

63

13

CHAPTER13

CONCLUSION

74

14

BIBLIOGRAPHY

75

15

ANNEXURE

76

PREFACE

With the rapid globalization of the Indian economy, enterprises are facing with
ever changing competitive environment. Enterprises are adopting strategies aimed
at developing competitive advantage based on enhanced customer value in terms of
product differentiation, quality, speed, service and costs. In the post liberalization
era, with the deregulation of Indian economy, the financial service sector
witnessing a complete metamorphosis and technology is playing a very significant
role in this record. Over the last decade India has been one of the fastest adopters
of information technology, particularly because of its capability to provide
software solution to organizations around the world. This capability has provided a
tremendous impetuous to the domestic banking industry in India to deploy the
latest in technology, particularly in the Internet banking and e-commerce arenas.
Banks are growing in size by mergers and acquisitions, which have been driven by
communication and technology. Technology is playing a major role in increasing
the efficiency, courtesy and speed of customer service. It is said to be the age of Ebanking.
An Online Banking user is expected to perform at least one of the following
transactions online:
1. Checking account balance and transaction history
2. Paying bills
3. Transferring funds between accounts
4. Requesting credit card advances
5. Ordering checks
6. Managing investments and stocks trading

From a banks perspective, using the Internet is more efficient than using other
distribution mediums because banks are looking for an increased customer base.
Using multiple distribution channels increases effective market coverage by
enabling different products to be targeted at different demographic segments. Also
Banks cannot risk losing customers to competitors within the aggressive
competition in the banking industry around the world. Moreover Internet delivery
offers customized service to suit the needs and the likes of each user. Mass
customization happens effectively through Online Banking. It reduces cost and
replaces time spent on routine errands with spending time on business errands.
Online Banking means less staff members, smaller infrastructure demands,
compared with other banking channels. From the customers perspective, Online
Banking provides a convenient and effective way to manage finances that is easily
accessible 24 hours a day, seven days a week. In addition information is up to date.
Nevertheless Online Banking has disadvantages for banks like how to work the
technology, set-up cost, legal issues, and lack of personal contact with customers.
And for customers there are security and privacy issues.

About the project

Title of study
The present study titled in E-BANKING. The study is made by reference to EBANKING services given to customer

Object of the study

To study the E-banking services in detail.
To study of awareness of E-banking services among the customer of HDFC
BANK.
To study the customer satisfaction relating to the E-banking services.
To completely study of E-banking services provided by HDFC BANK

DATA AND METHODOLOGY

For the purpose of the present study, both primary as well as secondary data were
used.
Primary data is collected through questionnaire from 30 customer to understand
the awareness about the E-banking. Sample was randomly selected.

Chapter 1
Introduction

10

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.
Internet banking can be defined as a facility provided by banking and financial
institutions, that enable the user to execute bank related transactions through
Internet. The biggest advantage of Internet banking is that people can expend the
services sitting at home, to transact business.
Internet banking basically allows you to be able to do everything that you can in
your regular banking institution, only with the benefit that you can do it all right
from the convenience of your own home. You can be comfortable and have peace
of mind knowing that you can keep track yourself of all your banking issues.

11

History

The concept of Internet banking has been simultaneously evolving with the
development of the World Wide Web. Programmers working on banking databases
came up with ideas for online banking transactions, sometime during the 1980's.
The creative process of development of these services was probably sparked off
after many companies started the concept of online Shopping.
Sometime in 1980's, banking and finance organizations in Europe and United
States started suggestive researches and programming experiments on the concept
of 'home banking'.
In 1983, the Nottingham Building Society, commonly abbreviated and referred to
as the NBS, launched the first Internet banking service in United Kingdom.
Stanford Federal Credit Union introduced the first online banking service in United
States, in October 1994, which is a financial institution.

12

Indian scenario
As this is a time of globalization customer are getting change adapting more
upgraded technology in their life, in this busy schedule everyone is looking for a
time saving process And its been come in a way of Internet banking.

As Internet banking is booming now a days as a delivery of banking services and

strategic tool for business development, has gained wide acceptance internationally
and is fast catching up in India with more and more banks entering the fray.
At present, the total Internet users in the country are estimated at 1crore. Only
about 1% of Internet users did banking online in 1998. This increased to 20.7% in
March 2000.

Costs of banking service through the Internet form a fraction of costs through
conventional methods. Rough estimates assume teller cost at Re.1 per transaction,
ATM transaction cost at 45paisa, phone banking at 35paisa, debit cards at 20paise
and Internet banking at 10paise per transaction.

Some of the banks permit customers to interact with them and transact
electronically with them. Such services include request for opening of accounts,
requisition for cheque books, stop payment of cheques, viewing and printing
statements of accounts, movement of funds between accounts within the same
bank, querying on status of requests, instructions for opening of Letters of Credit
and Bank Guarantees etc. HDFC Bank Ltd. has made e shopping online and real
time with the launch of its payment gateway.

13

Meaning of e-banking

For many customers electronic banking means 24-hour access to cash through an
automated teller machine (ATM), or direct deposit of pay cheques into accounts.
But electronic banking involves many different types of transaction.
Electronic banking , also known as electronic fund transfer (EFT) uses computer
and electronic technology as a substitute for cheques and other paper transaction
EFTs is initiated through devices like cards or codes that let you, or those you
authorize. Access your account. Many financial institution use ATM or debit cards
and personal identification numbers (PINs) for this purpose.
Some use other type of debit cards such as those that require, at the most, your
signature or a scan. For example, some use radio frequency identification (RFID)
or other forms of contactiess technology that scan your information without
direct contact. The feral electronic fund transfer Act (EFT Act) covers some
electronic consumer transaction.

BANKING INDUSTRY PROFILE

BANKING

The word "BANK" is derived from the 'Bancus' or 'Banque', which means a bench.
Inthe early days the European moneylenders and moneychangers used to sit on the
benches and exhibit coins of different countries in big heaps for the purpose of
changing and lending money.

14

Definition of E-BANKING

Definition:
A Banking company is defined as a company, which transacts the business of
banking in India.

As per Banking Regulation Act 1949 Section 5(b)

"Banking means, accepting for the purpose of lending or investment, of deposits of
money from the public, repayable on demand or otherwise, and withdrawal by
cheque, draft, or otherwise."

According to Sir John Paget

"No person or body, corporate or otherwise can be a banker who does not, (a) take
deposits accounts, (b) take current accounts, (c) issue and pay cheques, (d) collect
cheques, crossed and uncrossed, for his customers."In simple words we can say
that bank is a financial institution which deals in money and credit by obtaining
deposits from public and giving loans and credit to trade and industrial
respectively. "

15

Chapter 2

INTRODUCTION
TO HDFC BANK

16

HDFC COMPANY PROFILE

HDFC BANK LTD

Type

Private

Founded

1994

Headquarters HDFC Bank Ltd.,

Mumbai, India
Industry

Banking Insurance
Capital Markets and allied industries

Products

Loans, Credit Cards, Savings,

Investment vehicles Insurance etc.

Website

www.hdfcbank.com

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

17

COMPANY PROFILE

History
The Housing Development Finance Corporation Limited (HDFC) was amongst the
first to receive an 'in principle' approval from the Reserve Bank of India (RBI) to
set up a bank in the private sector, as part of the RBI's liberalization of the Indian
Banking Industry in 1994. The bank was incorporated in August 1994 in the name
of 'HDFC Bank Limited', with its registered office in Mumbai, India. HDFC Bank
commenced operations as a Scheduled Commercial Bank in January 1995.
HDFC Bank was incorporated in 1994 by Housing Development Finance
Corporation Limited (HDFC), India's largest housing finance company. It was
among the first companies to receive an 'in principle' approval from the Reserve
Bank of India (RBI) to set up a bank in the private sector. The Bank started
operations as a scheduled commercial bank in January 1995 under the RBI's
liberalization policies.
Times Bank Limited (owned by Bennett, Coleman & Co. / Times Group) was
merged with HDFC Bank Ltd., in 2000. This was the first merger of two private
banks in India. Shareholders of Times Bank received 1 share of HDFC Bank for
every 5.75 shares of Times Bank.

18

In 2008 HDFC Bank acquired Centurion Bank of Punjab taking its total branches
to more than 1,000. The amalgamated bank emerged with a base of about Rs.
1,22,000crore and net
advances of about Rs.89,000 crores. The balance sheet size of the combined entity
is more than Rs. 1,63,000crores.
Distribution network
HDFC Bank

is

headquartered in Mumbai. The Bank has an nationwide network of 2000 branches

spread in 996 towns and cities across India. All branches are linked on an online
real-time basis. Customers in over 500 locations are also serviced through
Telephone Banking. The Bank has a presence in all major industrial and
commercial centers across the country. Being a clearing/settlement bank to various
leading stock exchanges, the Bank has branches in the centres where the
NSE/BSE have a member base.
The Bank also has 5,998 networked ATMs across these towns and cities.
Moreover, HDFC Bank's ATM network can be accessed by all domestic and
international Visa/MasterCard, Visa Electron/Maestro, Plus/Cirrus and American
Express Credit/Charge cardholders
19

BUSINESS FOCUS
HDFC Bank's mission is to be a World Class Indian Bank. The objective is to build
sound customer franchises across distinct businesses so as to be the preferred
provider of banking services for target retail and wholesale customer segments,
and to achieve healthy growth in profitability, consistent with the bank's risk
appetite.

The bank is committed to maintain the highest level of ethical standards,

professional integrity, corporate governance and regulatory compliance. HDFC
Bank's business philosophy is based on five core values: Operational Excellence,
Customer Focus, Product Leadership, People and Sustainability.

20

Chapter 3
BUSINESS OF DHFC
BANK

21

Business of HDFC bank

HDFC Bank deals with three key business segments. - Wholesale Banking
Services, Retail Banking Services, Treasury. It has entered the banking consortia
of over 50 corporates for providing working capital finance, trade services,
corporate finance, and merchant banking. It is also providing sophisticated product
structures in areas of foreign exchange and derivatives, money markets and debt
trading and equity research.

Wholesale banking services

Blue-chip manufacturing companies in the Indian corp. to small & mid-sized
corporates and agri-based businesses. For these customers, the Bank provides a
wide range of commercial and transactional banking services, including working
capital finance, trade services, transactional services, cash management, etc. The
bank is also a leading provider for its to corporate customers, mutual funds, stock
exchange members and banks.

Retail banking services

HDFC Bank was the first bank in India to launch an International Debit Card in
association with VISA (VISA Electron) and issues the MasterCard Maestro debit
22

card as well. The Bank launched its credit card business in late 2001. By March
2009, the bank had a total card base (debit and credit cards) of over 13 million. The
Bank is also one of the leading players in the merchant acquiring business with
over 70,000 Point-of-sale (POS)

terminals for debit / credit cards acceptance at merchant establishments. The Bank
is positioned in various net based B2C opportunities including a wide range of
internet banking services for Fixed Deposits, Loans, Bill Payments, etc.
Treasury
Within this business, the bank has three main product areas - Foreign Exchange
and Derivatives, Local Currency Money Market & Debt Securities, and Equities.
These services are provided through the bank's Treasury team. To comply with
statutory reserve requirements, the bank is required to hold 25% of its deposits in
government securities. The Treasury business is responsible for managing the
returns and market risk on this
investment portfolio.

23

Chapter 4
Facilities provided by HDFC bank

Facilities provided by HDFC bank

Personal Banking

Accounts & Deposits

Loans

Cards

Forex

Investments & Insurance

NRI Banking

Accounts & Deposits

Remittances

Investments & Insurance Loans Payment Services

Wholesale Banking

Corporate

Small & Medium Enterprises

Financial Institutions & Trusts

Government Sector
24

Chapter 4
E-banking facilities provided
by HDFC bank

25

E-banking facilities provided by HDFC bank

Net Banking

InstaAlerts

Branch Network

ATM

Email Statements

PhoneBanking

Mobile Banking

P.O.Boxes

26

 Net Banking

HDFC Bank offers you a comprehensive range of transactions across

multiple products through its NetBanking channel. So just log in to
NetBanking and conduct 135 + transactions from the comfort of your
home or office.
You can check your Account Balance, book Fixed and Recurring Deposits,
Download A/c Statement up to 5 years, pay your Bills, Recharge your Mobile/
DTH connection, and much more in a secure environment.
You can log in to NetBanking using your Customer ID and IPIN (password).

Experience Convenience ... Choose NetBanking!

Are you tired of heading down to a Bank branch? Of waiting in queues? Of not
knowing how to manage your account at your convenience? We have the answer!
NetBanking is an incredibly convenient and powerful tool, letting you do
everything you want with your accounts at the click of a mouse.
It is Real Time, giving you up-to-the-second details on your account.

27

All you need to do is Log in using your Customer ID and IPIN (NetBanking
password).
Your Customer ID is mentioned on your account statement/ account welcome
letter/ chequebook. (Current account / HUF customers can obtain this from the
branch). You can re-generate your IPIN online in 3 easy steps.
Some of the transactions you can do through NetBanking are:

Check your account balances and download 5 year account statement in 5

formats, instantly

Book Fixed Deposit / Recurring Deposit

Pay Utility Bills

View your Credit Card details and pay your Credit Card Bills

Recharge your Prepaid Mobile & DTH Connections

Invest in Mutual Funds Online

Book IRCTC Tickets online

Purchase a Gift Card

Pay your Taxes online

Update your PAN Details online

Request Stop Payment of a Cheque/ Hotlist you Debit Card/ Credit Card

View your Loan details

Transfer funds between accounts within HDFC Bank and other Bank
Accounts

28

 InstaAlerts

Now you can get regular updates on your bank account on your mobilephone or
email ID. Just register for our Insta Alert service and receive updates on
youraccount as and when the select transaction happens - all this without visiting
the branch or ATM.You can register for any or all of the following alerts:

Debit transactions greater than Rs. 5,000/ Rs.10, 000/ Rs. 20,000/Rs. 50,000
Credit in account greater than Rs. 5,000/ Rs.10, 000/ Rs. 20,000/Rs. 50,000
Account Balance below Rs. 5,000/ Rs.10, 000/ Rs. 20,000/Rs. 50,000 Weekly account balance
Salary Credits
Utility bill payment due Alert
Fees and charges
The service is FREE for you.

29

 Branch Network

Welcome to the networked world of HDFC Bank. You can open an account
and access it from any branch nearest to your residence or office, anywhere
in the country.

The sophisticated, computerized network gives you the flexibility of

accessing your Savings or Current Account from any of over 3,488 branches
and over 11,426 ATMs across India.

30

 ATM
Our wide range of ATMs across the country ensures that you are never too
far away from money. You can cater to your diverse banking needs, right
from just withdrawing cash to a whole host of other transactions to help you
manage your account with complete security and convenience, whenever
you want.
Welcome to 24 hour banking!

Features and benefits

Enjoy various features using our Bank ATMs. Here is a look at what you can do at
our ATMs:
24 hour access to cash : You can withdraw up to Rs. 10,000 per day on your
ATM Card and up to Rs. 25,000 or more on your Debit Card (depending on the
type of card held).

31

Personalized cash withdrawals : Save time on your cash withdrawal

transactions by pre-setting your preferred language / account / amount.
View account balances and mini-statements : Get a mini-statement with the
last 9 transactions on your account, with your account balance.
Change ATM PIN :Change your ATM PIN whenever you want.
Order a cheque book or account statement : You can order a cheque book or
an account statement from our ATMs.
HDFC Bank Credit Card Payment : Pay your HDFC Bank Credit Card bill at
any of our ATMs. The primary account of your Debit / ATM card will be
debited.
Deposit cash or cheques : Deposit cheques or cash into your account at our
selected non-branch ATMs.
Transfer funds between accounts : You can transfer funds between the
accounts. A maximum of 16 accounts (Savings / Current) can be linked to a
card.
Refill your Prepaid mobile : Refill your prepaid mobile using the Prepaid
Mobile Refill service instantly.
Pay your utility bills : Pay your mobile, telephone and electricity bills through
our ATMs using BillPay, a comprehensive bill payment solution.
Cheque Status Enquiry : Get information about the status of a cheque issued
from your account.
32

NetBanking password request : Request for your NetBanking password (IPIN) at

an ATM and it will be sent to your recorder mailing address.
Registration for Mobile Banking : Register for MobileBanking and use our
Banking services through your mobile.
There are no charges levied for use of other banks cards on HDFC Bank ATMs
for cash withdrawals and balance enquires.

Fees and charges

There is no charge for using the card at HDFC Bank ATMs
Charges on Other Bank's
ATM Networks in India

Charges

For Current Account Debit Balance

Card Holders

enquiry

Free

Cash withdrawal - Rs. 20/-* per transaction

Total of 5 ATM Financial and Non-Financial
transactions per month at other Bank ATMs free of
cost.

For

Salary

&

Saving Charges from the 6th Transaction onwards:

Account Debit Card Holders

Rs. 20.00/-* per Financial transaction - i.e Cash

Withdrawals
Rs. 8.50/-** per Non-Financial transaction - e.g.
Balance Inquiry, Pin Change & Mini Statement

33

You will be allowed to withdraw a maximum of Rs. 10,000 per transaction from
another banks ATM, w.e.f. from 15th October 2009.
You will not be charged any fee when you use your ATM / Debit Card at any
merchant location.
However, at petrol pumps and railway stations you will be charged a fee as per
Industry practice.

Transaction
International Visa/ Plus ATMs and Cirrus
ATMs

Cash

Balance

Withdrawal

Inquiry

Rs. 110/-

Rs. 15/-***

34

 Email Statements

Receive your account statements via email without any delays for your Savings
and Current Accounts. You also have the option to maintain the statement on
email, print it or save it on a CD. Your account info is now available to you at the
click of a button with email statements.

Features and benefits

Email statements are FREE

Monthly email statements for your Savings Account

Opt for daily / weekly / monthly email statements for your Current Account

Physical statements will be discontinued if you opt for email statements

Based on the date of account opening, it follows a staggered cycle

Even if you are registered for hold mails, you can opt for email statements

Get information on our new products and mandatory information online.

Email statements will be non-combined statements.

35

 PhoneBanking
PhoneBanking services are a combination of IVR and Agent offering,
depending on the type of transaction. For all transactions that cannot be
completed on the IVR such as reporting loss of cards, logging complaints,
requests & queries, PhoneBanker-assisted services are available

Features and benefits

Get up-to-the-second details of your Savings or Current Accounts and Fixed

Deposits

Get the details of the last 5 transactions on your account.

Enquire on the status of cheques issued or deposited anywhere in India#

Order a Cheque Book / Account statement to be delivered to your mailing

address.

Open a Fixed Deposit or enquire about your Fixed Deposits / TDS#

Transfer funds between Accounts linked to your Customer ID

Pay your cellular, telephone & electricity bills using BillPay

Call PhoneBanking to report Loss of your ATM / Debit / Prepaid Card.

This service is available 24 hours on all days

Get details on HDFC Bank products and services by talking to our

PhoneBanker

Enquire about latest interest / exchange rates by talking to our PhoneBanker

36

 SMS BANKING
With SMSBanking you can access your account on your mobile wherever you are.
Access your bank account, make banking transactions, monitor your accounts and
fixed deposits on your mobile.

SMSBanking, a great way to have your bank account at your fingertips!

What features does SMSBanking have?
Take a look at the features of SMSBanking:

View balance details

Get last 3 transaction details

Request for cheque book

Stop cheque payment

Enquire cheque status

Request for account statement

Get Fixed Deposit details

Request forIPIN generation

37

 NRI SERVICE DESK / OVERSEAS P.O. BOXES:

At HDFC Bank, we make it easier for you to reach us from across the world.
Keeping in mind the global reach of our esteemed NRI customers like you,
our PO Box facility is available for you in USA, UK, UAE, Australia,
Canada,

Saudi

Arabia,

Singapore,

Germany.

So go ahead and mail us your account related* requests to the below listed
local

PO

Box

addresses

in

your

country.

You no longer have to incur expensive courier charges to send us account

instructions. All you need to do is simply mail your instruction to a local PO
Box in your country overseas. What's more, this facility is available to you
free of charge.

38

Chapter 6
Importance of E-banking
facility

39

Importance of E-banking facility

Businesses rely on efficient and rapid access to banking information for cash flow
reviews, auditing and daily financial transaction processing. E-banking offers ease
of access, secure transactions and 24-hour banking options. From small start-up
companies to more established entities, small businesses rely on e-banking to
eliminate runs to the bank and to make financial decisions with updated
information. In an information-driven business climate, companies who do not use
e-banking are at a competitive disadvantage.
Activity Review
Business owners, accounting staff and other approved employees can access
routine banking activity such as deposits, cleared checks and wired funds quickly
through an online banking interface. This ease of review helps ensure the smooth
processing of all banking transactions on a daily basis, rather than waiting for
monthly statements. Errors or delays can be noted and resolved quicker, potentially
before any business impact is felt.

Productivity
E-banking leads to productivity gains. Automating routine bill payments,
minimizing the need to physically visit the bank and the ability to work as needed
rather than on banking hours may decrease the time involved in performing routine
banking activities. Additionally, online search tools, banking actions and other
programs can allow staff members to research transactions and resolve banking
problems on their own, without interacting with bank employees. In some cases,
40

month-end reconciliations for credit card transactions and bank accounts can be
automated by using e-banking files.
Lower Banking Costs
Banking relationships and costs are often based on resource requirements.
Businesses that place more demands on banking employees and need more
physical assistance with wire transfers, deposits, research requests and other
banking activities often incur higher banking fees. Opting for e-banking minimizes
business overhead and banking expenses.
Reduced Errors
Utilizing e-banking reduces banking errors. Automation of payments, wires or
other consistent financial activities ensures payments are made on time and may
prevent errors caused by keyboard slips or user error. Additionally, opting for
electronic banking eliminates errors due to poor handwriting or mistaken
information. In many cases, electronic files and daily reviews of banking data can
be used to double or triple check vital accounting data, which increases the
accuracy of financial statements.
Reduced Fraud
Increased scrutiny of corporate finances through audits and anti-fraud measures
requires a high level of visibility for all financial transactions. Relying on ebanking provides an electronic footprint for all accounting personnel, managers
and business owners who modify banking activities. E-banking offers visibility
into banking activities, which makes it harder for under-the-table or fraudulent
activities to occur.
41

Chapter 7
E- BANKING SERVICES:

42

E- BANKING SERVICES
1. Bill payment service
Each bank has tie-ups with various utility companies, service providers and
insurance companies, across the country. It facilitates the payment of electricity
and telephone bills, mobile phone,
credit card and insurance premium
bills.

To pay bills, a simple one-time registration for each biller is to be completed.

Standing instructions can be set, online to pay recurring bills, automatically. Onetime standing instruction will ensure that bill payments do not get delayed due to
lack of time. Most interestingly, the bank does not charge customers for online bill
payment.

2. Fund transfer

Any amount can be transferred from one account to another of the same or any
another bank. Customers can send money anywhere in India. Payees account
number, his bank and the branch is needed to be mentioned after logging in the
account. The transfer will take place in a day or so, whereas in a traditional
method, it takes about three working days. HDFC Bank says that online bill
payment service and fund transfer facility have been their most popular online
services.
43

3. Credit card customers

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

4. Railway pass

This is something that would interest all the adamant. Indian Railways has tied up
with HDFC bank and you can now make your railway pass for local trains online.
The pass will be delivered to you at your doorstep. But the facility is limited to
Mumbai, Thane, Nasik, Surat and Pune. The bank would just charge Rs 10 + 12.24
percent of service tax.

44

5. Investing through Internet banking

Opening a fixed deposit account cannot get easier than this. An FD can be opened
online through funds transfer. Online banking can also be a great friend for lazy
investors.
Now investors with interlinked demat account and bank account can easily trade in
the stock market and the amount will be automatically debited from their
respective bank accounts and the shares will be credited in their demat account.
Moreover, some banks even give the facility to purchase mutual funds directly
from the online banking system.
So it removes the worry about filling those big forms for mutual funds, they will
now be just a few clicks away. Nowadays, most leading banks offer both online
banking and demat account. However if the customer have there demat account
with independent share brokers, then need to sign a special form, which will link
your two accounts.

6. Recharging your prepaid phone

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

45

7. Shopping at your fingertips

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

46

Chapter 8

BENEFITS/CONCERNS OF
E-BANKING

47

BENEFITS OF E-BANKING

For Banks

Price- In the long run a bank can save on money by not paying for tellers or
for managing branches. Plus, it's cheaper to make transactions over the
Internet.

Customer Base- the Internet allows banks to reach a whole new marketand a well off one too, because there are no geographic boundaries with the
Internet. The Internet also provides a level playing field for small banks who
want to add to their customer base.

Efficiency- Banks can become more efficient than they already are by
providing Internet access for their customers. The Internet provides the bank
with an almost paper less system.

48

 Customer Service and Satisfaction- Banking on the Internet not only

allow the customer to have a full range of services available to them but it
also allows them some services not offered at any of the branches. The
person does not have to go to a branch where that service may or may not be
offer. A person can print of information, forms, and applications via the
Internet and be able to search for information efficiently instead of waiting
in line and asking a teller. With more better and faster options a bank will
surely be able to create better customer relations and satisfaction.

Image- A bank seems more state of the art to a customer if they offer
Internet access. A person may not want to use Internet banking but having
the service available gives a person the feeling that their bank is on the
cutting image.

49

For Customers
Bill Pay- Bill Pay is a service offered through Internet banking that allows
the customer to set up bill payments to just about anyone. Customer can
select the person or company whom he wants to make a payment and Bill
Pay will withdraw the money from his account and send the payee a paper
check or an electronic payment
Other Important Facilities- E- banking gives customer the control over
nearly every aspect of managing his bank accounts. Besides the Customers
can, Buy and Sell Securities, Check Stock Market Information, Check
Currency Rates, Check Balances, See which checks are cleared, Transfer
Money, View Transaction History and avoid going to an actual bank. The
best benefit is that Internet banking is free. At many banks the customer
doesn't have to maintain a required minimum balance. The second big
benefit is better interest rates for the customer.

50

CONCERNS WITH E-BANKING

As with any new technology new problems are faced.

Customer support - Banks will have to create a whole new customer
relations department to help customers. Banks have to make sure that the
customers receive assistance quickly if they need help. Any major problems
or disastrous can destroy the banks reputation quickly an easily. By showing
the customer that the Internet is reliable you are able to get the customer to
trust online banking more and more.
Laws - While Internet banking does not have national or state boundaries,
the law does. Companies will have to make sure that they have software in
place software market, creating a monopoly.
Security - Customer always worries about their protection and security or
accuracy. There are always questions whether or not something took place.
Other challenges - Lack of knowledge from customers end, sit changes by
the banks, etc.

51

Chapter 9
SWOT ANALYSIS

52

SWOT ANALSIS

Strengths
- It has an extensive distribution network comprising of 535
branches in 312 cities & one international office in Dubai this
provides a competitive edge over the competitors.
- The Bank has a strong retail depository base & has more than
million customers.
- Bank has strong brand equity.
- ISO 9001 certification for its depository & custody operations &
for its backend processing of retail operations & direct banking
operation.
- The bank is a market leader in cash settlement service for the
major stock exchanges in its country.
- HDFC Bank is one of the largest private sector banks working
in India.
- It has a highly automated environment in terms of information
technology & communication system.
- Infrastructure is one of the best in the country.
- It has many innovative products like kids Advantage scheme,
NRI services.

53

 Weaknesses
- Account opening and delivery of cheque book take more time. Lack
of availability of different credit products like CC Limit, Bill discounting
facilities.
- Complicated terms and conditions of products, which is not easily
Understandable by the layman.

Opportunities
- Branch expansion
- Door step services
- Greater liberalization is foreign ownership via FDI in Indian Pvt.
Sector banks.
- Infrastructure movements & better systems for trading & settlement
in the Govt. securities & foreign exchange markets.

Threats

The bank has started facing competition from players like SBI, PNB in
the finance market itself. This may reduce the profit margins in the
future.

Some Pvt. Banks have 7 days banking.

54

1. Start early with simple, user-friendly, robust and highly scalable

services.

2. Use the same secure, mobile password in all devices and channels
(including contact centers), for both identification and transaction
confirmation.

3. Include all services in the same portal to gain economies of scope and
repetition. Introduce new services gradually to keep up user interest.

4. Make e-Banking a part of branch banking in order to motivate the

local personnel to sell the service.

5. Provide the same services and user logic to both private and corporate
customers to gain not only the reuse advantages of technology and
branding, but also the economy of repetition.

6. Let your corporate and private users meet each other in the Internet
bank via such thins as mall-like link collection (available to merchants
using the bank's services).

7. Use both real-life situations and interest based personalization and

customization to provide users with targeted offers.
55

Chapter 10
News and articles

56

News and articles

1. Any time money, no more: How frequent transactions at ATMs become
expensive
New Delhi | Updated: Aug 19 2014, 09:31 IST
SUMMARY
Come Nov 1, frequent usage of
ATMs will become expensive, with
RBI imposing limit of transactions

Taking out a mini-statement or even changing PIN will amount to a transaction

57

COME November, frequent usage of ATMs will become expensive, with the RBI
imposing a limit of three transactions financial and non-financial per month
from ATMs of other banks and five from the same bank in the six metropolitan
cities. You will be required to pay a fee of up to R20 for using ATMs beyond the
permitted numbers of transactions in Delhi, Mumbai, Chennai, Bangalore, Kolkata
and Hyderabad.
Taking out a mini-statement or even changing your PIN will amount to a
transaction. The central bank has, however, said that nothing precludes a bank
from offering more than three free transactions at other bank ATMs to its account
holders if it so desires.
Recently, a few banks and the Indian Banks Association (IBA) had approached
RBI seeking changes in the extant instructions regarding free transactions at other
banks' ATMs. the IBA had sought the removal of free transactions at other banks'
ATMs at metro centres and other townships in the country," said the RBI circular.

2. Banks set to beef up security at ATMs after Bangalore incident

Summary:
The bank will further strengthen the security and take appropriate steps:
Corporation Bank

Banks are gearing up to enhance security at

ATMs after a review of threat perception at various locations (Reuters)
58

Alarmed by the recent Bangalore incident, banks are gearing up to enhance

security at ATMs after a review of threat perception at various locations.
"Though our ATMs have adequate security, the bank will review it and beef up
where required," a senior official of Bank told PTI.
As per the usual practice, banks deploy full-time security guards at the off-site
ATMs (Automated Teller Machines), while at the on-site ATM i.e. at the bank
branch, guards are placed only at night.
According to a Corporation Bank official, in the light of the incident in Bangalore,
the bank will further strengthen the security and take appropriate steps.
In a shocking incident on Tuesday, a women employee of Corporation Bank was
attacked brutally at the on-site ATM of the bank.
The assailant had attacked her after entering the ATM booth closely following her
and downing the rolling shutter when she refused to draw money and hand it over
to him.
The private security industry, which manages the cash logistics and security of
bank ATMs, has been raising the security issue of ATM operations time and again
with the government and banks.
"Its the long wait for the gun licences that will cost the ATM security. The
situation could worsen further as the government has announced one lakh more
ATMs in next 2 years.

59

"Imagine what could be state then considering the slow progress on the armed
security front," said Rituraj Sinha managing director of cash management company
SIS Prosegur.
As of August, there were 1,26,950 ATMs of banks across the country. Of this, the
number of onsite ATMs are 63,380 while there 63,570 cash dispensing machines
off-site.
Public sector banks had a combined 72,340 branches, of which 37,672 had onsite
ATMs at the end of March 2013.

3. Soon, you can withdraw cash from ATM even without bank account:
Raghuram Rajan
Summary:
RBI in talks with markets to set up trade receivables exchange to facilitate credit to
MSMEs.

In another effort towards financial inclusion, the RBI has given in-principle
approval to setting up of a new payment system that will facilitate fund transfers
from bank account holders to those without accounts through automated teller
machines (ATMs).
60

Essentially, the sender can have the money withdrawn from his account through
an ATM transaction. The intermediary processes the payment, and sends a code to
the recipient on his mobile that allows him to withdraw the money from any
nearby banks ATM, said RBI governor Raghuram Rajan on Wednesday at the
Nasscom summit, and highlighted how technologies can be used to deepen
financial inclusion. Rajan also said the RBI is in talks with market players to set up
a trade receivables exchange to better facilitate credit to micro, small and medium
enterprises (MSMEs). Rajan explained that MSMEs get squeezed all the time by
their large buyers, who pay after long delays.
The governor also said that the RBI will accelerate dialogue with key players in
the telecom industry in the next few months to better facilitate mobile banking
through the SMS and unstructured supplementary service data channels.

61

Chapter 11
RESEARCH AND METHODOLOGY

62

OBJECTIVES OF THE STUDY

The main objectives of the study are:

To study the awareness level of service class people regarding E-Banking.
To find out the frequency and the factors that influences the adoption of EBanking services.
To measure the satisfaction level of people.
To understand the problems encountered in by service class people while
using E-Banking services(ATM, Phone banking, etc)

63

RESEARCH METHODOLOGY
Research is a careful investigation or inquiry especially through search for new
facts in branch of knowledge: market research specifies the information. Required
to address these issues: designs the method for collecting information: manage and
implements the data collection process analyses the results and communicates the
finding and their implications.
Research problem is the one which requires a researcher to find out the best
solution for the given problem that is to find out the course of action, the action the
objectives can be obtained optimally in the context of a given environment.
RESEARCH DESIGN
A framework or blueprint for conducting the research project. It specifies the
details of the procedures necessary for obtaining the information needed to
structure and/or solve research problems. A good research design lays the
foundation for conducting the project. A good research design will ensure that the
research project is conducted effectively and efficiently. Typically, a research
design involves the following components, or tasks:
Define the information needed.
Design the research.
Specify the measurement and scaling procedures.
Construct and present a questionnaire or an appropriate form for data
collection.
Specify the sampling process and sampling size.
Develop a plan of data analysis.
64

Data Collection:

The objectives of the project are such that both primary and secondary data is
required to achieve them. So both primary and secondary data was used for the
project. The mode of collecting primary data is questionnaire mode and sources of
secondary data are various magazines, books, newspapers, & websites etc.

1. Primary Data: The primary data was collected to measure the customer
satisfaction and their perception regarding HDFC Bank. The primary data was
collected by means of questionnaire and analysis was done on the basis of response
received from the 30 customers. The questionnaire has been designed in such a
manner that the consumers satisfaction level can be measured and consumer can
enter his responses easily.

2. Secondary Data: The purpose of collecting secondary data was to achieve the
objective of studying the recent trends and developments taking place in banking.

65

Sample size
30 customers were selected.
Sampling Unit
Dombivli (Mumbai)

Sampling Technique

Convenient sampling.

Analysis and Interpretation

After the data collection, it was compiled, classified and tabulated manually and
with help of computer. Then the task of drawing inferences was accomplished with
the help of percentage and graphic method.

66

Chapter 12
ANALYSIS AND INTERPRETATION

67

1. Are you aware about Internet banking HDFC bank?

90
80
70
60
50
40

79%

30
20
21%

10
0
yes

No

Interpretation: 79% respondents of HDFC bank are aware about the Internet
banking of HDFC bank and 21% are not aware.

68

2. Are you Internet banking holder of HDFC bank?

60
52%
50
40
30

24%

20
12%

12%

Other

Both

10
0
Yes

No

Interpretation: 52% respondents are banking holder of HDFC bank, 24%

respondent are not banking holder of HDFC bank, 12% respondent are Internet
banking holder of other bank and 12% respondent doing with both.

69

3. Are you doing Internet banking with HDFC bank?

60
50
40
56%

30

44%

20
10
0
Yes

No

Interpretation: 56% respondent of HDFC bank doing Internet banking with it and
44% are not doing with.

70

4. Are you using Internet banking to view the transaction?

20%
Yes
No
56%
24%

Other

Interpretation: 59% respondents of HDFC bank are using Internet Banking to

view the transaction and 49% are not using for this.

71

5. How many times you are using Internet banking in a month?

10

37

Within 10 days
20 days
30 days

34

Daily
Year

9
10

Interpretation: 37% respondents are using Internet Banking within 10 days, 34%
using daily, 10% using in 30 days, 10 %using it in a year and 9% using in 20 days.

72

6. Do you feel other Bank providing better facility to the customer in Internet
banking than HDFC bank?

27%

32%

Yes
No
Other

41%

Interpretation: 41% respondent feels HDFC bank providing better facility in

Internet Banking than other Bank and 27% respondents feels other Bank providing
better facility and rest 32% cant say because of not using any others bank service
of internet banking.

73

7. Within how many days of submitting your application form, Internet banking
Operationalized?

10%

37%

18%

35%

Interpretation: 37% respondents got Internet banking from the Branch within
10days, 35% got 10-20 days, 18% got 20-30 days and 10% got 30-40 days.

74

8. Are you getting requisite information about Internet banking from the website of
HDFC bank?

90
80
70
60
50

85%

Information

40
30
20
10

15%

0
yes

NA

Interpretation: 15% respondents are getting information from HDFC website and
85% are unable to say it.

75

9. What facility you mostly prefer in Internet banking?

30
28%
25
22%
20
18%
15

14%

10

10%
8%

5
0
Transfer
Fund

Pay online Book Airline

tax
ticket

Book Rail
ticket

More than1

NA

Interpretation: 14% respondents use the Internet banking doing the transfer fund,
8% use for pay online tax, 10% for book Rail ticket, 18% for book Airline ticket,
22% use more than 1 service and rest 28% havent ever used Internet banking not
only of HDFC bank even not of other bank.

76

LIMITATIONS
Every research is conducted under some constraints and this research is not an
exception. Limitations of this study are as follows:-

1. There were several time constraints.

2. The study is limited to areas of dombivli only.
3. The sample size of only 30 was taken from the large population for the purpose
of study, so there can be difference between results of sample from total
population.
4. The study is related to service class people only.
5. People were reluctant to go in to details because of their busy schedules.
6. Merely asking questions and recording answers may not always elicit the actual
Information sought.
7. Due to continuous change in environment, what is relevant today may be
Irrelevant tomorrow.

77

Chapter 12
CONCLUSION
The usage of E-banking is all set to increase among the service class. The service
class at the moment is not using the services thoroughly due to various hurdling
factors like insecurity and fear of hidden costs etc. So banks should come forward
with measures to reduce the apprehensions of their customers through awareness
campaigns and more meaningful advertisements to make E-banking popular
among all the age and income groups. Further, with increasing consumer demands,
banks have to constantly think of innovative customized services to remain
competitive. E-Banking is an innovative tool that is fast becoming a necessity. It is
a successful strategic weapon for banks to remain profitable in a volatile and
competitive marketplace of today.

In future, the availability of technology to ensure safety and privacy of etransactions and the RBI guidelines on various aspects of internet banking will
definitely help in rapid growth of internet banking in India.

78

BIBLIOGRAPHY

BOOKS
Malhotra, T. D., Electronic Banking and Information Technology in
Banks
Sultan Chand and Sons, New Delhi,2008.
S.S Kaptan & N.S. Choubey. Indian Banking in Electronic Era
Internet Banking in India-Part I- Dr A. K. Mishra

WEBSITES
www.banknetindia.com
www.bharatbook.com
www.hdfcbank.com
www.google.com
NEWS PAPERS

BUSINESS LINE

ECONOMICS TIMES

THE INDIAN EXPRESS

79

Annexure

80

QUESTIONAIRE
Dear Respondent,
We are conducting a research study of E-banking Preferences among people in
Dombivli. We will appreciate your cooperation in this regard by filling up the
questionnaire carefully. All the information provided by you will be kept
confidential.

Respondents Profile
Name : ________________
Age: ________________
Gender (M/F) : ________________
Profession: ________________
Organization: ________________

1. In which banks do you have your account?

a. State Bank of India
b. HDFC Bank
c. Punjab National Bank
d. ICICI Bank
e. State Bank of Patiala
f. Canara Bank
g. Bank of India

81

2. While opening up the account, are you aware of E-banking services provided by
your bank?

a. yes
b. No

3. How did you get to know about E-banking services of your bank?
a. Personal visit
b. Executive from the bank
c. Advertisements
d. Friends/ Relatives

4. Which of the following E-banking services are you aware of?

e. ATM
f. Debit Card
g. Credit Card
h. Phone banking
i. Mobile banking
j. Internet banking

82

5. Do you use E-banking services?

a. Yes
b. No

6. Which of the following benefits accrue to you, while using E-banking services?
a. Time saving
b. Inexpensive
c. Easy processing
d. Easy fund transfer
e. Any other, please specify

7. To what extent are you satisfied with your Banks E-banking services?
a. Highly Satisfied ___________
b. Satisfied _________
c. Neutral ___________
d. Dissatisfied ___________
e. Highly dissatisfied___________

8. What other services you would like to have through E-banking?

____________________________________________________________
____________________________________________________________

83