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Introduction

What is E-Banking?
E -banking is defined as:

Electronic banking is an umbrella term for the process by which a customer may
perform banking transactions electronically without visiting a brick-and-mortar
institution. The following terms all refer to one form or another of electronic
banking: personal computer (PC) banking, Internet banking, virtual banking,
online banking, home banking, remote electronic banking, and phone banking.
PC banking and Internet or online banking are the most frequently used
designations. It should be noted, however, that the terms used to describe the
various types of electronic banking are often used interchangeably.

Various authors define E-Banking differently but the most definition depicting the
meaning and features of E-Banking are as follows:

Banking is a combination of two, Electronic technology and Banking.

Electronic Banking is a process by which a customer performs banking


Transactions electronically without visiting a brick-and-mortar institutions

Electronic banking is also called Cyber banking , virtual banking and online
banking .

Development of E-Banking

HISTORY:-

E-Banking made its debut in UK and USA during 1920s. It became prominently popular
during 1960s through electronic funds transfers and credit cards. The concept of Webbased banking came into existence, in Europe and USA in the beginning of 1980s.

1980s :
-

Rapid development of the Internet

E-commerce

Early 1980s :
-

Access to their accounts with the computer of the bank

May 1995 :
Wells Fargo - the first bank in the world to offer customer access to their
accounts over the internet .

Allows customer to see their accounts online

Hong Kong (September 1999):

Bank of East Asia first launched internet banking

Mortgage applications, personal loans and stock trading

Basic banking function

Automated Teller
Machine (ATM)
Tele banking or phone
banking
Mobile banking
PC banking
Internet banking
Wireless or PDA
baking

Types of E-Banking

1- ) Automated Teller Machine (ATM)

ATM: This system is


known as anytime
money because with
this service the person
having the ATM card can
withdraw cash any time
he want. Since the ATM
machine can be built any
where like near markets
and railway stations etc ,
so one can easily with
draw money from it .
ADVANTAGES:-

Environmenntal

Communication

Competitiveness

Cost

Convenience

1- ) Accepting deposits
and dispenses cash
2- ) Convenient in
handling accounts
3- ) First electronic
channel introduced

2- ) Tele-banking or Phone Banking


WHAT IS TELE BANKING:
Telephone banking is a service feature offered by many banking institutions. The
process involves using the keypad on a touch-tone telephone to perform a variety
of banking functions. Along with traditional banks, phone banking is also utilized
extensively by online banking institutions, including banks that conduct business
primarily with the use of telephone technology.
The concept of telephone banking has been around for several decades. Initially, the
process required manual intervention by a bank employee. Customers would call into
the bank, answer questions to verify their identities, and submit queries to the service
representative. While somewhat labor intensive, this approach did make it
possible to conduct a number of banking transactions from the comfort of
home.

HISTORY:
It came into operation in the 1970s in the developed countries like the US. It is
accessible for corporate customers that have large volumes of payments to effect
and dispose of a fully automated accounting system. They can establish a
Computer to Computer link with their bank and in this way exchange truly
paperless credit transfers which are handled all the way

How Its Work:


This facility is available with the help of Voice Response System
(VRS or IVR). This system basically, accepts only TONE dialed input. Like the ATM
customer has to follow particular process, initially account number and telephone PIN
are fed for the process to start. Also the VRS system provides the users within
additional facilities such as changing existing password with the new desire .
Online banking (or Internet banking or E-banking) allows customers of a financial
institution to conduct financial transactions on a secured website operated by the
institution, which can be a retail bank,virtual bank, credit union or building
society.

To access a financial institution's online banking facility, a customer having


personal Internet access must register with the institution for the service, and set
up some password (under various names) for customer verification. The
password for online banking is normally not the same as for [telephone banking].
Financial institutions now routinely allocate customers numbers (also under
various names), whether or not customers intend to access their online banking
facility. Customers numbers are normally not the same as account numbers,
because number of accounts can be linked to the one customer number. The
customer will link to the customer number any of those accounts which the
customer controls, which may be cheque, savings, loan, credit card and other
accounts. Customer numbers will also not be the same as any debit or credit card
issued by the financial institution to the customer.
To access online banking, the customer would go to the financial institution's
website, and enter the online banking facility using the customer number and
password. Some financial institutions have set up additional security steps for
access, but there is no consistency to the approach adopted.
A bank customer can perform non-transactional tasks through online banking,
including viewing account balances
viewing recent transactions
downloading bank statements, for example in PDF format
viewing images of paid cheques
ordering cheque books
download periodic account statements
Downloading applications for M-banking, E-banking etc.
Bank customers can transact banking tasks through online banking, including Funds transfers between the customer's linked accounts
Paying third parties, including bill payments (see, e.g., BPAY) and
telegraphic/wire transfers
Investment purchase or sale
Loan applications and transactions, such as repayments of enrollments

Register utility billers and make bill payments


Financial institution administration
Management of multiple users having varying levels of authority
Transaction approval process
the process of banking has become much faster
Some financial institutions offer unique Internet banking services, for example
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 all of their accounts in one place
whether they are with their main bank or with other institutions.
History[edit]
The precursor for the modern home online banking services were the distance
banking services over electronic media from the early 1980s. The term online
became popular in the late '80s and referred to the use of a terminal, keyboard
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 down a
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 services[1][2][3] using the
videotex system. Because of the commercial failure of videotex these banking
services never 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.
The UK's first home online banking services known as Homelink was set up by
Bank of Scotland for customers of the Nottingham Building Society (NBS) in
1983. The system used was based on the UK's Prestel viewlink system and used
a computer, such as the 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. In order to make bank transfers
and bill payments, a written instruction giving details of the intended recipient
had to be sent to the NBS who set the details up on the Homelink system. Typical
recipients were gas, electricity and telephone companies and accounts with other
banks. Details of payments to be made were input into the NBS system by the
account holder via Prestel. A cheque was then sent by NBS to the payee and an

advice giving details of the payment was sent to the account holder. BACS was
later used to transfer the payment directly.
Stanford Federal Credit Union was the first financial institution to offer online
internet banking services to all of its members in October 1994.[4]
Today, many banks are internet only banks. Unlike their predecessors, these
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.
Security

Security token device for online banking.


Security of a customer's financial information is very important, without which
online banking could not operate. Financial institutions have set up various
security processes to reduce the risk of unauthorized online access to a
customer's records, but there is no consistency to the various approaches
adopted.
The use of a secure website has become almost universally adopted.

Though single password authentication is still in use, it by itself is not considered


secure enough for online banking in some countries. Basically there are two
different security methods in use for online banking.
The PIN/TAN system where the PIN represents a password, used for the login and
TANs representing one-time passwords to authenticate transactions. TANs can be
distributed in different ways, the most popular one is to send a list of TANs to the
online banking user by postal letter. The most secure way of using TANs is to
generate them by need using a security token.[citation needed] These token
generated TANs depend on the time and a unique secret, stored in the security
token (two-factor authentication or 2FA). Usually online banking with PIN/TAN is
done via a web browser using SSL secured connections, so that there is no
additional encryption needed.

Another way to provide TANs to an online banking user is to send the TAN of the
current bank transaction to the user's (GSM) mobile phone via SMS. The SMS
text usually quotes the transaction amount and details, the TAN is only valid for a
short period of time. Especially in Germany, Austria and The Netherlands, many
banks have adopted this "SMS TAN" service as it is considered very secure.
Signature based online banking where all transactions are signed and encrypted
digitally. The Keys for the signature generation and encryption can be stored on
smartcards or any memory medium, depending on the concrete implementation.

Attacks[edit]
Attacks on online banking used today are based on deceiving the user to steal
login data and valid TANs. Two well known examples for those attacks are
phishing and pharming. Cross-site scripting and keylogger/Trojan horses can
also be used to steal login information.
A method to attack signature based online banking methods is to manipulate the
used software in a way, that correct transactions are shown on the screen and
faked transactions are signed in the background.
A 2008 U.S. Federal Deposit Insurance Corporation Technology Incident Report,
compiled from suspicious activity reports banks file quarterly, lists 536 cases of
computer intrusion, with an average loss per incident of $30,000. That adds up to
a nearly $16-million loss in the second quarter of 2007. Computer intrusions
increased by 150 percent between the first quarter of 2007 and the second. In 80
percent of the cases, the source of the intrusion is unknown but it occurred
during online banking, the report states.[5]

The most recent kind of attack is the so-called Man in the Browser attack, where a
Trojan horse permits a remote attacker to modify the destination account number
and also the amount.
Countermeasures[edit]
There exist several countermeasures which try to avoid attacks. Digital
certificates are used against phishing and pharming, the use of class-3 card
readers is a measure to avoid manipulation of transactions by the software in
signature based online banking variants. To protect their systems against Trojan
horses, users should use virus scanners and be careful with downloaded
software or e-mail attachments.
In 2001, the U.S. Federal Financial Institutions Examination Council issued
guidance for multifactor authentication (MFA) and then required to be in place by
the end of 2006.

Advantages of Tele-banking:-

i.

Balance inquiry and transaction inquiry

ii.

Inquiry of term deposit account

iii.

Statement of account by Fax, e-mail or ordinary mail.

iv.

Cheque book request

v.

Stop payment which is on-line and instantaneous.

vi.

Transfer of funds

vii.

Utility Bill Payments

viii.

Voice out of last five transactions.

3- ) Mobile Banking
What is mobile banking:
Mobile banking comes in as a part of the banks initiative to offer multiple channel
banking providing convenience for its customer. A versatile multifunctional, free
service that is accessible and viewable on the monitor of mobile phone. Mobile
phones are playing great role in banking- both directly and indirectly. They are
being used both as banking and other channels.

SMS-banking:
The Short Message Service (SMS) is a GSM service to exchange text
messages up to 140 byte (or 160 characters of 7 bit). The transmission of mobile-

originated short messages is carried out by the short message


service center (SMSC) of the particular network operator.

4- ) PC & Digital TV Banking


PC Banking:
PC Banking - The forerunner to Internet banking has been around since the late 1980's
and is still widely used today. Individual banks provide software which is loaded on to an
SME's office computer. The SME can then access their bank account via a modem and
telephone link to the bank. Access is not necessarily via the Internet .

PC banking makes things easier


You can access your account just from your home PC, 24 hours per day, 7 days per
week. All you need is a computer with an internet connection, and a card reader, which
can be obtained at your Fortis Bank. The card reader gives you unique codes based on
your bank card and pin number, so your account stays safe.

PC banking goes faster


Because you dont need to go all the way to your local bank office, you save a lot of
time that you dont want to be wasting in traffic. A lot of information and reports can be
obtained with a few clicks, and transactions can be done without signing papers. Most
of your time will be spend on going to the website and logging in, so it is advisable to do
all your banking at a certain time. For example, Every Monday you log in and do your
transactions and administration. Now you just log in once and process all transfers and
reports at once.

Digital TV Banking:
Digital TV Banking- Using the standard digital reception
equipment (set top box and remote control), users can access
their bank account. Abbey National and HSBC services are
available via Digital TV providers. One of its main selling points
is that no account details are transmitted via the World Wide Web.
Advantages:
24 hour, 7 day a week access
No need to queue as you would at a bank

Disadvantages:
Limited use of your account compared to other methods
Costs are incurred when accessing your account (charged at local rate)
There is no personal interaction between yourself and the bank (employee/advisor)
You cannot deposit physical cash using TV banking i.e. cheques, cash in hand. This
would require a personal visit to the bank
If your Sky TV system fails to function you cannot access TV bank.

5- ) INTERNET BANKING

Internet Banking lets you handle many banking transactions via your personal
computer. For instance, you may use your computer to view your account balance,
request transfers between accounts, and pay bills electronically. Internet banking
system and method in which a personal computer is connected by a network service
provider directly to a host computer system of a bank such that customer service
requests can be processed automatically

The advent of the Internet and the popularity of personal computers presented both an
opportunity and a challenge for the banking industry. For years, financial institutions
have used powerful computer networks to automate million of daily transactions; today,
often the only paper record is the customers receipt at the point of sale. Now that their
customers are connected to the Internet via personal computers, banks envision similar
advantages by adopting those same internal electronic processes to home use. Banks
view online banking as a powerful value added tool to attract and retain new
customers while helping to eliminate costly paper handling and teller interactions in an
increasingly competitive banking environment
It generally implies a service that allows customers to use some form of computer to access
account-specific information and possibly conduct transactions from a remote location - such as
at home or at the workplace. The obvious advantage to the consumer is convenience--one bank
recently used the advertising motto "bank naked" to emphasize the customer's freedom to
conduct routine banking transactions from the comfort and security of his/her home 24X7.

THREE TYPES OF INTERNET


BANKING

INFORMATIO
NAL

This is the basic level of Internet or


E-Banking. Typically, the bank has
marketing information about the
banks products and services
The risk is relatively low, as
informational systems typically have
no path between the server and the

COMMUNUCAT
IVE

TRANSACTIO
NAL

This type of Internet banking systems is


relatively more riskier than the
informational system, as banks share
some information to the clients also such
as bank accounts, loan applications and
account enquiry etc. Because these
servers may have a path to the banks

This level of Internet banking allows


customers to execute transactions. Since
a path typically exists between the
server and the bank or outsourcers
internal network, the risk is at its peak,
for this bank may also perform some
sort of security applications to lower the
risk at transactional system

ADVANTAGES OF INTERNET
BANKING

Convenience

Unlike your corner bank,


online banking sites never
close; theyre available 24

Transaction speed

Online bank sites generally


execute and confirm
transactions at or quicker
than ATM processing

Efficiency

You can access and manage


all of your bank accounts,
from one secure site.

Effectiveness

Many online banking sites


now offer sophisticated
tools, including account
aggregation, stock quotes,
rate alert, etc.

6- ) WIRELESS OR PDA
BANKING

With a phone number and a special PIN


number a customer can access to his
account balance from his cellular device.

Allows user to pay bills, transfer funds


between accounts and check accounts from
anywhere.

Offers wireless banking.

Security is an important issue in Wireless


Banking.

Newsbytes reports that wireless banking


users will number over 7 million in the US
by 2005.

7- ) Wireless Application Protocol

The most widespread solution for mobile banking is based on micro-websites following the
WAP standard (Wireless Application Protocol). The function of WAP banking is in many
ways similar to the function of Electronic banking using http. The client sends a request
and gets a response with page content which is stored on or dynamically generated by a
standard web server. The main difference is in the usage of a WAP gateway for the
conversion of the protocols. At banks must be considered that very sensitive data is
processed. While a normal content provider doesnt has to observe special security
precautions, and in some cases can even use the services of extern providers, has to
secure its web server and WAP Gateway especially against unauthorized access. This is
especially necessary because of the fact that inside the WAP Gateway the encryption
protocol is converted from SSL/TLS to WTLS with the effect that data is not encrypted
while it is processed. While authentication is assured via a PIN (personal identification
number) of the user, authorization for transactions is realized via transaction numbers
(TAN).

Bill payment service


E-BANKING SERVICES

Fund transfer

Credit card

Debit Card

Bill payment service:


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. One-time 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.

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. ICICI Bank says
that online bill payment service and fund transfer facility have been their most popular online
services.

Credit card:
Credit card customers
A credit card is part of a system of payments named after thesmall plastic card issued to users
of the system. It is a cardentitling its holder to buy goods and services based on theholder's

promise to pay for these goods and services. The issuerof the card grants a line of credit to the
consumer (or the user)from which the user can borrow money for payment toa merchant or as a
cash advance to the user.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.

Debit Card:
Debit cards are also known as check cards. Debit cards look likecredit cards or ATM (automated
teller machine) cards, butoperate like cash or a personal check. Debit cards are differentfrom

credit cards. While a credit card is a way to "pay later," adebit card is a way to "pay now." When
you use a debit card, yourmoney is quickly deducted from your checking or savingsaccount.
Debit cards are accepted at many locations, includinggrocery stores, retail stores, gasoline
stations, and restaurants.You can use your card anywhere merchants display your card's brand
name or logo. They offer an alternative to carrying a checkbook or cash.
Debit Card Debit Card is an identity card issued by a bank to a customer, which the customer
can use to buy goods. The price of the goods is charged to customer's bank account.

BENEFITS OF E-BANKING

BENEFITS FOR SMALL BUSINESS:-

It enables a business;
To run its operations more
effectively
Lower cost than traditional
financial
Management mechanisms
Communication
-

communicate easily

Environmental

Benefits for Customers


-

Abolishing the uses of paper

Others
-

Offering one-stop-shop solutions

Benefits for Banks

Banks have quickly leveraged the capabilities of and Web 2.0 technologies and adopted the
online banking model. Every mainstream bank now offers a host of banking services and
products to an ever increasing base of customers. Through online banking, banks have been
able to reach out to millions of customers not in their geographical area of operations and offer
more products and a relatively better, convenient and flexible banking experience than that
prevalent in traditional, fixed-location branches.
More Customers
Through online banking, better service levels and strategic marketing initiatives, banks are able
to reach out to more customers than possible through traditional banking through physical
location branches.
Online Only Products and Services
Leveragability--and amenability of new technologies, tools and widespread broadband Internet
acceptance--has made it possible for banks to offer a whole host of online only products and
services to customers, such as CDs, e-bank statements, financial calculators, and news feeds.
Broader Customer Base
Banking online has afforded customers user-friendly features of Websites, robust security
technologies, privacy protection measures, and mainstream Internet acceptance. Banks can
reach out to a broader customer base beyond the geographical confines of their locations or
base operations.
Attractive Rates and Incentives

Better management practices, consolidated operations and streamlined savings from managing
and delivering online banking services allow banks to offer attractive rates and other incentives
to customers.
Cost Savings
Banks save a significant amount of operational capital from not having to open brick and
mortar branches in new locations and far-flung areas. These savings are passed onto the
consumer in the form of reduced or no fees for inter-bank and even intra-bank money.

DISADVANTAGE OF E-BANKING

A need for customer skill to deal with computers and browsers.


E.g. Elderly, Housewives Inconvenient

It will make the customer have some confusion or delay.

Security Risk

Security Risk Of E-Banking

Increasing number of fraud net bank websites

Fake emails purporting to be sent from banks

Use of Trojan Horse programs to capture user IDs and passwords

State bank of India


The evolution of State Bank of India can be traced back to the first decade of the 19th
century. It began with the establishment of the Bank of Calcutta in Calcutta, on 2 June
1806. The bank was redesigned as the Bank of Bengal, three years later, on 2 January
1809. It was the first ever joint-stock bank of the British India, established under the
sponsorship of the Government of Bengal. Subsequently, the Bank of Bombay
(established on 15 April 1840) and the Bank of Madras (established on 1 July 1843)
followed the Bank of Bengal. These three banks dominated the modern banking
scenario in India, until when they were amalgamated to form the Imperial Bank of India,
on 27 January 1921.
An important turning point in the history of State Bank of India is the launch of the first
Five Year Plan of independent India, in 1951. The Plan aimed at serving the Indian
economy in general and the rural sector of the country, in particular. Until the Plan, the
commercial banks of the country, including the Imperial Bank of India, confined their
services to the urban sector. Moreover, they were not equipped to respond to the
growing needs of the economic revival taking shape in the rural areas of the country.
Therefore, in order to serve the economy as a whole and rural sector in particular, the
All India Rural Credit Survey Committee recommended the formation of a statepartnered and state-sponsored bank.
The All India Rural Credit Survey Committee proposed the take over of the Imperial
Bank of India, and integrating with it, the former state-owned or state-associate banks.
Subsequently, an Act was passed in the Parliament of India in May 1955. As a result,
the State Bank of India (SBI) was established on 1 July 1955. This resulted in making
the State Bank of India more powerful, because as much as a quarter of the resources
of the Indian banking system were controlled directly by the State. Later on, the State
Bank of India (Subsidiary Banks) Act was passed in 1959. The Act enabled the State
Bank of India to make the eight former State-associated banks as its subsidiaries.
The State Bank of India emerged as a pacesetter, with its operations carried out by the
480 offices comprising branches, sub offices and three Local Head Offices, inherited
from the Imperial Bank. Instead of serving as mere repositories of the community's
savings and lending to creditworthy parties, the State Bank of India catered to the needs
of the customers, by banking purposefully. The bank served the heterogeneous financial
needs of the planned economic development.
Branches
The corporate center of SBI is located in Mumbai. In order to cater to different functions,

there are several other establishments in and outside Mumbai, apart from the corporate
center. The bank boasts of having as many as 14 local head offices and 57 Zonal
Offices, located at major cities throughout India. It is recorded that SBI has about 10000
branches, well networked to cater to its customers throughout India.
ATM
SBI provides easy access to money to its customers through more than 8500 ATMs in
India. The Bank also facilitates the free transaction of money at the ATMs of State Bank
Group, which includes the ATMs of State Bank of India as well as the Associate Banks
State Bank of Bikaner & Jaipur, State Bank of Hyderabad, State Bank of Indore, etc.
You may also transact money through SBI Commercial and International Bank Ltd by
using the State Bank ATM-cum-Debit (Cash Plus) card.
Subsidiaries
The State Bank Group includes a network of eight banking subsidiaries and several
non-banking subsidiaries. Through the establishments, it offers various services
including merchant banking services, fund management, factoring services, primary
dealership in government securities, credit cards and insurance.

The eight banking subsidiaries are:


State Bank of Bikaner and Jaipur (SBBJ)
State Bank of Hyderabad (SBH)

State Bank of India (SBI)

State Bank of Indore (SBIR)

State Bank of Mysore (SBM)

State Bank of Patiala (SBP)

State Bank of Saurashtra (SBS)

State Bank of Travancore (SBT)

Products And Services


Personal Banking
SBI Term Deposits SBI Loan For Pensioners
SBI Recurring Deposits Loan Against Mortgage Of Property

SBI Housing Loan Loan Against Shares & Debentures

SBI Car Loan Rent Plus Scheme

SBI Educational Loan Medi-Plus Scheme

Other Services
Agriculture/Rural Banking
NRI Services

ATM Services

Demat Services

Corporate Banking

Internet Banking

Mobile Banking

International Banking

Safe Deposit Locker

RBIEFT

E-Pay

E-Rail

SBI Vishwa Yatra Foreign Travel Card

Broking Services

Gift Cheques

ICICI

ICICI Bank is India's second-largest bank with total assets of Rs. 3,634.00 billion (US$
81 billion) at March 31, 2010 and profit after tax Rs. 40.25 billion (US$ 896 million) for
the year ended March 31, 2010. The Bank has a network of 2,530 branches and 6,102
ATMs in India, and has a presence in 19 countries, including India.
ICICI Bank offers a wide range of banking products and financial services to corporate
and retail customers through a variety of delivery channels and through its specialised
subsidiaries in the areas of investment banking, life and non-life insurance, venture
capital and asset management.
The Bank currently has subsidiaries in the United Kingdom, Russia and Canada,
branches in United States, Singapore, Bahrain, Hong Kong, Sri Lanka, Qatar and Dubai
International Finance Centre and representative offices in United Arab Emirates, China,
South Africa, Bangladesh, Thailand, Malaysia and Indonesia. Our UK subsidiary has
established branches in Belgium and Germany.
ICICI Bank Limited (NSE: ICICIBANK, BSE: 532174, NYSE: IBN, NASDAQ: IBN) is a
major banking and financial services company based in Mumbai. It is the second largest
bank in India and the largest private sector bank in India by market capitalization. The
bank also has a network of 2,529 branches (as on 31 March 2010) and about 6,102
ATMs in India and presence in 19 countries, as well as some 24 million customers (at
the end of July 2007). ICICI Bank offers a wide range of banking products and financial
services to corporate and retail customers through a variety of delivery channels and
specialization subsidiaries and affiliates in the areas of investment banking, life and
non-life insurance, venture capital and asset management. (These data are dynamic.)
ICICI Bank is also the largest issuer of credit cards in India. ICICI Bank's shares are
listed on the stock exchanges at BSE, NSE, Kolkata and Vadodara (formerly Baroda) ;
its ADRs trade on the New York Stock Exchange (NYSE).

The Bank is expanding in overseas markets and has the largest international balance
sheet among Indian banks. ICICI Bank now has wholly owned subsidiaries, branches
and representatives offices in 19 countries, including an offshore unit in Mumbai. This
includes wholly owned subsidiaries in Canada, Russia and the UK (the subsidiary
through which the HiSAVE savings branch is operated), offshore banking units in
Bahrain and Singapore, an advisory branch in Dubai, branches in Belgium, Hong Kong
and Sri Lanka, and representative offices in Bangladesh, China, Malaysia, Indonesia,
South Africa, Thailand, the United Arab Emirates and USA. Overseas, the Bank is
targeting the NRI (Non-Resident Indian) population in particular.
ICICI reported a 1.15% rise in net profit to 1,014.21 crore on a 1.29% increase in total
income to 9,712.31 crore in Q2 September 2008 over Q2 September 2007. The bank's
CASA ratio increased to 30% in 2008 from 25% in 2007.
ICICI Bank is one of the Big Four banks of India, along with State Bank of India, Punjab
National Bank and HDFC Bankits main competitors

ICICI Bank's equity shares are listed in India on Bombay Stock Exchange and the
National Stock Exchange of India Limited and its American Depositary Receipts (ADRs)
are listed on the New York Stock Exchange (NYSE).

In 1994, the Industrial Credit and Investment Corporation of India established ICICI
Bank, to undertake commercial banking operations - taking deposits, credit cards, car
loans etc. In 1998, its stake was reduced to 46 per cent through a public offering of
shares in India in 1997; an equity offering in the form of ADRs listed on the NYSE in
1999; an all-stock amalgamataion of Bank of Madura in 2000; and secondary market
sales to institutional investors in 2001.
However, in October 2001, the Boards of ICICI and ICICI Bank approved the reverse
merger of ICICI and its retail finance subsidiaries ICICI Personal Financial Services
Limited and ICICI Capital Services Limited, with the more profitable ICICI Bank.
At the same time, ICICI Bank started its international expansion by opening
representative offices in New York and London. In India, ICICI Bank bought the Shimla
and Darjeeling branches that Standard Chartered Bank had inherited when it acquired
Grindlays Bank. In 2003, ICICI Bank opened subsidiaries in Canada and the United
Kingdom (UK), and in the UK it established an alliance with Lloyds TSB. It also opened
an Offshore Banking Unit (OBU) in Singapore and representative offices in Dubai and
Shanghai. In 2004, ICICI Bank opened a representative office in Bangladesh to tap the
extensive trade between that country, India and South Africa. In 2005, ICICI Bank
acquired Investitsionno-Kreditny Bank (IKB), a Russia bank with about US$4mn in
assets, head office in Balabanovo in the Kaluga region, and with a branch in Moscow.

ICICI Bank renamed the bank as ICICI Bank Eurasia. Also, ICICI Bank established a
branch in Dubai International Financial Centre and in Hong Kong.
In 2006, ICICI Bank UK opened a branch in Antwerp, in Belgium. ICICI Bank opened
representative offices in Bangkok, Jakarta, and Kuala Lumpur. In 2007, ICICI Bank
amalgamated Sangli Bank, which was headquartered in Sangli, in Maharashtra State,
and which had 158 branches in Maharashtra and another 31 in Karnataka State. With
respect to the international sphere, ICICI Bank also received permission from the
government of Qatar to open a branch in Doha. Also, ICICI Bank Eurasia opened a
second branch, this time in St. Petersburg. In 2008, The US Federal Reserve permitted
ICICI Bank to convert its representative office in New York into a branch. ICICI Bank
also established a branch in Frankfurt. In 2009, ICICI Bank made huge changes in its
organisation like elimination of loss making department and restreching outsourced staff
or renegotiate their charges in consequent to the recession. In addition to this, ICICI
Bank adopted a massive approach aims for cost control and cost cutting. In consequent
of it, compesation to staff was not increased and no bonus declared for 2008-09. On 23
May ICICI Bank announced that it would merge with Bank of Rajasthan through a
share-swap in a non-cash deal that values the Bank of Rajasthan at about 3,000 crore.
ICICI Bank announced that the merger expand ICICI Bank's branch network by 25%. [9]
[10][11]
On 18h October 2010, ICICI Bank will inaugurate I-Express, an instant crossborder money transfer option for Non-Resident Indians (NRIs). This service will be
available through the ICICI Bank's select partners in the Gulf Cooperation Council.

Need for internet banking

One has to approach the branch in person, to withdraw cash or deposit a cheque or
request a statement of accounts. In true Internet banking, any inquiry or transaction is
processed online without any reference to the branch (anywhere banking) at any time.
Providing Internet banking is increasingly becoming a "need to have" than a "nice to
have" service. The net banking, thus, now is more of a norm rather than an exception in
many developed countries due to the fact that it is the cheapest way of providing
banking services
Banks have traditionally been in the forefront of harnessing technology to improve their
products, services and efficiency. They have, over a long time, been using electronic
and telecommunication networks for delivering a wide range of value added products
and services. The delivery channels include direct dial up connections, private
networks, public networks etc and the devices include telephone, Personal Computers
including the Automated Teller Machines, etc. With the popularity of PCs, easy access
to Internet and World Wide Web (WWW), Internet is increasingly used by banks as a

channel for receiving instructions and delivering their products and services to their
customers. This form of banking is generally referred to as Internet Banking, although
the range of products and services offered by different banks vary widely both in their
content and sophistication.
Indias banking sector is growing at a fast pace. India has become one of the most
preferred banking destinations in the world. The reasons are numerous: the economy is
growing at a rate of 8%, Bank credit is growing at 30% per annum and there is an everexpanding middle class of between 250 and 300 million people (larger than the
population of the US) in need of financial services. All this enables double-digit returns
on most asset classes which is not so in a majority of other countries. Foreign banks in
India achieving a return on assets (ROA) of 3%, their keen interest in expanding their
businesses is understandable even more so when compared with the measly 1%
average ROA for the Top 1000 banks in the world.
From the perspective of banking products and services being offered through Internet,
Internet banking is nothing more than traditional banking services delivered through an
electronic communication backbone, viz, Internet. But, in the process it has thrown open
issues which have ramifications beyond what a new delivery channel would normally
envisage and, hence, has compelled regulators world over to take note of this emerging
channel. Some of the distinctive features of i-banking are:
1. It removes the traditional geographical barriers as it could reach out to customers of
different countries / legal jurisdiction. This has raised the question of jurisdiction of law /
supervisory system to which such transactions should be subjected,
2. It has added a new dimension to different kinds of risks traditionally associated with
banking, heightening some of them and throwing new risk control challenges,
3. Security of banking transactions, validity of electronic contract, customers privacy,
etc., which have all along been concerns of both bankers and supervisors have
assumed different dimensions given that Internet is a public domain, not subject to
control by any single authority or group of users,

4. It poses a strategic risk of loss of business to those banks who do not respond in
time, to this new technology, being the efficient and cost effective delivery mechanism of
banking services,
5. A new form of competition has emerged both from the existing players and new
players of the market who are not strictly banks.

Why this
research
An analysis of the differences in risk perceptions between bank customers using
Internet Banking and those not using Internet Banking was done and it showed that

risk perceptions in terms of financial, psychological and safety risks among


customer not using the internet was more meaningful than those using internet
banking. Customers not preferring to use internet banking thought that they would
be swindled when using this service, and therefore, are particularly careful about
high risk expectation during money transfers from and between accounts. Only
37% of Indian Internet users come from Top 10 cities i.e. Mumbai, Bangalore,
Delhi, Calcutta, Chennai, Pune, Hyderabad, Ahmedabad, Surat and Nagpur.
Another day and another number. As per IAMAI and I-cube, the number of active
Internet user (i.e. ones who logon to Internet atleast once a month) is now 32
million and numbers who have used Internet atleast once stands at 46 million.
Maximum of the person who are going on for internet banking lies in the age
bracket of 26-35. but the rise in the age the level of users become low.
Approximately 17% of female use internet banking. This a matter of concern for a
banks what are the causes why this is happening.
Although many major banks have started offering i-banking services, the slow pace
will continue until the critical mass is achieved for PC, internet connections and
telephones. However, the upsurge of IT professionals with growing demands is
pressuring the government and bureaucracy in the country to support and develop
new initiatives for a faster spread of i-banking. But then to there is a fear in mind
of customer using internet as a medium for the banking transaction.
Private and foreign banks are trying to turn more and more customer
towards the usage if internet for the banking transaction. This study is basically to
know the relation of various independent variables on the customer usage of
internet for banking.

OBJECTIVE OF THE STUDY

TO UNDERSTAND THE DEMOGRAPHIC FACTOR


TO STUDY THE CUSTOMERS AWARENESS TOWARDS E-BANKING
TO FIND OUT THE FACTOR WHICH ENCOURAGE OR DISCOURAGE
THE CUSTOMER IN THE USAGE OF E-BANKING SERVICES.
TO STUDY & EVALUATE CUSTOMERS PERCEPTION
&EXPECTATIONS ON E-BANKING

Literature
review:-

[1] IAMAI report on online banking 2006 . 43% of online banking user

havent started online financial transaction because of security reasons, 39% havent
started because they prefer face to face, 22% havent started because they dont know
how to use, for 10% sites are not user friendly and for 2% banks are not providing the
facility of internet banking. According to research 68% of the customers can not say that
when they will be starting the financial transactions through internet.
Maximum numbers of online banking users are male and maximum of them are in age
the group of 25-35. Numbers of female users are very less i.e. 17% only. More than
60% of the people who are having account with have accounts in 3-4 banks.
Only 37% of Indian Internet users come from Top 10 cities i.e. Mumbai, Bangalore,
Delhi, Calcutta, Chennai, Pune, Hyderabad, Ahmedabad, Surat and Nagpur. Another
day and another number. As per IAMAI and I-cube, the number of active Internet user
(i.e. ones who logon to Internet atleast once a month) is now 32 million and numbers
who have used Internet atleast once stands at 46 million.
[2] The Indian Internet Banking Journey In 2001, a Reserve Bank of India
survey revealed that of 46 major banks operating in India, around 50% were either
offering Internet banking services at various levels or planned to in the near future.
According to a research report,( India Research, Kotak Securities, May 2000.) while in
2001, India's Internet user base was an estimated 9 lakh; it was expected to reach 90
lakh by 2003. Also, while only 1% of these Internet users utilized the Internet banking
services in 1998, the Internet banking user base increased to 16.7% by mid- 2000.
[3] Meuter et al. (2000) have identified critical incidents of customer satisfaction
and dissatisfaction with technology-based service encounters. Given that business-tobusiness transactions are the fastest growing segment of technology-driven services
(Hof, 1999); Meuter and his colleagues (2000) suggested investigating what drives
business customer satisfaction or dissatisfaction with technologydriven services.
According to Gnroos (1982), customers distinguish the quality of customer interactions
that take place during service delivery (functional quality) and the quality of the outcome
the customer receives in the service encounter (technical quality).

Customers perceive the quality of services of Internet banking based on the


performance of online delivery systems not on the processes in which the delivered
service is developed and produced. Because customers perceive Internet banking
service quality based on relatively standardized outcomes determined by online
systems, customer attitudes toward that outcome reflect overall quality of services
delivered

Customers usually perceive risks in conducting transactions electronically and


particularly if the transactions involve money. Risk perception can be of six different
types:

time

risk,

finacial

risk,

performance

risk,

psychological

risk

and

safety/confidentiality risk. It is generally considered that risk perception could be higher


for electronic banking services. This study aims to understand extent to which whether
this is consideration is valid as well as to determine the levels of risk perception
differences among those using Internet Banking and those not using it.

RESEARCH METHODOLOGY

RESEARCH TYPE
We use descriptive research

and exploratory research design in our studies.

Descriptive research is also called Statistical Research. The main goal of this type
of research is to describe the data and characteristics about what is being studied.
The idea behind this type of research is to study frequencies, averages, and other
statistical calculations. Although this research is highly accurate, it does not gather
the causes behind a situation. Descriptive research is used to obtain information
concerning the current status of the phenomena to describe "what exists" with
respect to variables or conditions in a situation.

Here we also tried to find out the main cause why there is perceptual blocking of
the Indian customers towards internet banking. The methods involved range from
the survey which describes the status quo, the correlation study which investigates
the relationship between variables, to developmental studies which seek to
determine changes over time.

Statement of the problem

Identification of information needed to solve the problem

Selection or development of instruments for gathering the information

Identification of target population and determination of sampling

procedure

Design of procedure for information collection

Collection of information

Analysis of information

Generalizations and/or predictions

DATA COLLECTION
Primary Data: Structured Questionnaire
Secondary Data: Online Database, Journals, Surveys

SAMPLING

We have used convenience sampling technique. It is also called haphazard or


accidental sampling. Members of the population are chosen based on their relative
ease of access. To sample friends, co-workers, or shoppers at a single mall, are all
examples of convenience sampling. Sometimes called grab or opportunity
sampling, this is the method of choosing items arbitrarily and in an unstructured
manner from the frame. Though almost impossible to treat rigorously, it is the
method most commonly employed in many practical situations.

Sample Unit: JAIPUR Internet Users (for banks)


Sample Technique: Convenient sampling
Sample Area: JAIPUR
Sample Size: 100

TOOLS
Statistical : SPSS
Techniques : MDS , Multiple Regression, cross tabs, anova test, factor analysis, chi
square test.

Primary research entails the use of immediate data in determining the survival of
the market. The popular ways to collect primary data consist of surveys, interviews
and focus groups, which shows that direct relationship between potential customers
and the companies. Whereas secondary research is a means to reprocess and reuse
collected information as an indication for betterments of the service or product.
Both primary and secondary data are useful for businesses but both may differ
from each other in various aspects.
In secondary data, information relates to a past period. Hence, it lacks aptness and
therefore, it has unsatisfactory value. Primary data is more accommodating as it
shows latest information.
Secondary data is obtained from some other organization than the one
instantaneously interested with current research project. Secondary data was
collected and analyzed by the organization to convene the requirements of various
research objectives. Primary data is accumulated by the researcher particularly to
meet up the research objective of the subsisting project.
Secondary data though old may be the only possible source of the desired data on
the subjects, which cannot have primary data at all. For example, survey reports or
secret records already collected by a business group can offer information that
cannot be obtained from original sources.
Firm in which secondary data are accumulated and delivered may not
accommodate the exact needs and particular requirements of the current research
study. Many a time, alteration or modifications to the exact needs of the
investigator may not be sufficient. To that amount usefulness of secondary data
will be lost. Primary data is completely tailor-made and there is no problem of
adjustments.

Summary of the reportInternet 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 webenabled. 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 which 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.
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. Transactions can be submitted by the customer for online update. 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.
Automated Teller Machine (ATM):
ATM is designed to perform the most important function of bank. It is operated by
plastic card with its special features. The plastic card is replacing cheque, personal
attendance of the customer, banking hours restrictions and paper based verification.
There are debit cards. ATMs used as spring board for Electronic Fund Transfer. ATM
itself can provide information about customers account and also receive instructions
from customers - ATM cardholders. An ATM is an Electronic Fund Transfer terminal
capable of handling cash deposits, transfer between accounts, balance enquiries, cash
withdrawals and pay bills. It may be on-line or 0ff-line. The on-line ATN enables the
customer to avail banking facilities from anywhere. In off-line the facilities are confined
to that particular ATM assigned. Any customer possessing ATM card issued by the
Shared Payment Network System can go to any ATM linked to Shared Payment
Networks and perform his transactions.

Credit Cards/Debit Cards:


The Credit Card holder is empowered to spend wherever and whenever he wants with
his Credit Card within the limits fixed by his bank. Credit Card is a post paid card. Debit
Card, on the other hand, is a prepaid card with some stored value. Every time a person
uses this card, the Internet Banking house gets money transferred to its account from
the bank of the buyer. The buyers account is debited with the exact amount of
purchases. An individual has to open an account with the issuing bank which gives debit
card with a Personal Identification Number (PIN). When he makes a purchase, he
enters his PIN on shops PIN pad. When the card is slurped through the electronic
terminal, it dials the acquiring bank system - either Master Card or VISA that validates
the PIN and finds out from the issuing bank whether to accept or decline the
transactions. The customer can never overspend because the system rejects any
transaction which exceeds the balance in his account. The bank never faces a default
because the amount spent is debited immediately from the customers account.
Smart Card:
Banks are adding chips to their current magnetic stripe cards to enhance security and
offer new service, called Smart Cards. Smart Cards allow thousands of times of
information storable on magnetic stripe cards. In addition, these cards are highly
secure, more reliable and perform multiple functions. They hold a large amount of
personal information, from medical and health history to personal banking and personal
preferences.
You can avail the following services through E-Banking.
Bill payment service
You can facilitate payment of electricity and telephone bills, mobile phone, credit card
and insurance premium bills as each bank has tie-ups with various utility companies,
service providers and insurance companies, across the country. To pay your bills, all
you need to do is complete a simple one-time registration for each biller. You can also
set up standing instructions online to pay your recurring bills, automatically. Generally,
the bank does not charge customers for online bill payment.
Fund transfer
You can transfer any amount from one account to another of the same or any another
bank. Customers can send money anywhere in India. Once you login to your account,
you need to mention the payees's account number, his bank and the branch. The
transfer will take place in a day or so, whereas in a traditional method, it takes about
three working days. ICICI Bank says that online bill payment service and fund transfer
facility have been their most popular online services.
Credit card customers
With Internet banking, customers can not only pay their credit card bills online but also
get a loan on their cards. If you lose your credit card, you can report lost card online.
Railway pass
This is something that would interest all the aam janta. Indian Railways has tied up

with ICICI 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, Nashik, Surat and Pune.
Investing through Internet banking
You can now open an FD online through funds transfer.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 you the facility to
purchase mutual funds directly from the online banking system.
Nowadays, most leading banks offer both online banking and demat account. However
if you have your demat account with independent share brokers, then you need to sign
a special form, which will link your two accounts.
Recharging your prepaid phone
Now just top-up your prepaid mobile cards by logging in to Internet banking. By just
selecting your operator's name, entering your mobile number and the amount for
recharge, your phone is again back in action within few minutes.
Shopping
With a range of all kind of products, you can shop online and the payment is also
made conveniently through your account. You can also buy railway and air tickets
through Internet banking.
Advantage of Internet banking
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."
Through Internet banking, you can check your transactions at any time of the day, and
as many times as you want to. Where in a traditional method, you get quarterly
statements from the bank. 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.
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 memorised
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.

Analysis and interpretation

Q-1: Age:a) less 20

21-30

c 31-40

41-50

+51

Interpretation:-in this study 20-30 years persons more than to others.22% less than 20 years, 68%
20-30 year old persons, 16% 31-40 years , 11% is 41-50 year , 3% above 50

Q-2: sex:Male

b) Female

INTERPRETATION:Take 67 mens
And 33 womens in this study

Q-3: Monthly income:


(a). < Rs. 10000

(b) Rs 10001-20000

Rs 20001-30000

(d). Rs 30000 above

INTERPRETATION:-in this study we found out 28% less than 10000 salary persons,

34% in mid 10000-20000, 23% in mid 20000-30000, and 15% in above 30000.

Q-4: Qualification:
a) Graduates

Post Graduates

Ph.D.

Professional

INTERPRETATION:-

61% are graduates


30% are post graduates
7% are PH.D.
3% are professionals

Q-5: you using E-Bank services:


a) Yes

No

INTERPRETATION:In this study I found out lots of people aware about the E-BANKING and using the EBANKING services.
94% using E-BANKING services.
6% not using the E-BANKING services.

Q-6: What kind of a/c you operating


Saving

current

others

INTERPRETATION:Saving A/C operators are 88%.


Current A/C operators are 11%.
Other A/c holder is only 1%.

Q7: Have you purchased any product through WWW.


Yes

No

Q-8: Have you performed any of the following activities on-line?

Tax Filling

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

none

Q-9: What benefits you derive from bank for using E-Banking
FACTORS

Rank-1

Rank-2

Rank-3

Rank-4

Rank-5

Discount
Reward point
Low process
Better customer care
Better security

INTERPRETATION:CUSTOMER GIVES 1ST RANK OF THE LOW PROCESS BENEFIT.


2ND RANK FOR BETTER CUSTOMER CARE, 3RD RANK MOST OF BETTER SECURITY,
4TH RANK FOR DISCOUNT, 5TH RANK FOR REWARD POINT.
1ST- 44% FOR LOW PROCESS
2ND RANK- 48% FOR BETTER CUSTOMER CARE
3RD RANK- 36% FOR BETTER SECURITY

4TH RANK- 42% FOR DISCOUNT


5TH RANK- 30% FOR REWARD POINT.

Q-12: Which bank has better and easy homepage for internet banking service?
HDFC Banks

Axis Bank

SBI Bank

Bank of Baroda

Other, Specify.

INTERPRETATION:-

Relationship between gender and uses E-BANKING:Hypothesis:


H0- there is no difference between gender and usage of E-BANKING.
H1- male uses E-BANKING more than females.

Q-2: sex:a) Male

b) Female

Q-5: you using E-Bank services:


a) Yes

No

Crosstabs
[DataSet1]

Case Processing Summary


Cases
Valid
N
Q-2 * Q-5

Missing
Percent

100

100.0%

Total

Percent
0

.0%

Percent
100

100.0%

Q-2 * Q-5 Crosstabulation


Count
Q-5
1
Q-2

Total

64

67

30

33

94

100

Total

Analysis:I found that after the result male uses E-BANKING more than females.
So hypothesis alternative is accepted and null hypothesis is rejected.
Out of 67 males 64 uses e-banking and 3 not uses e-banking.

Out of 33 females 30 uses e-banking and 3 not uses e-banking.


So result is men uses e-banking more than females.

Relation between highest qualification and uses of E-BANKING: -

Q-4: highest qualification:


a) Graduates

Post Graduates

Ph.D.

Professional

Q-5: you using E-Bank services:


a) Yes

No

Analysis:Crosstabs
Case Processing Summary
Cases
Valid
N
Q-4 * Q-5

Missing
Percent

100

100.0%

Total

Percent
0

.0%

Percent
100

100.0%

Q-4 * Q-5 Crosstabulation


Count
Q-5
1
Q-4

Total

58

60

28

31

94

100

Total

PH.D. person are 100% using e-banking, Graduates person out of 60, 58 uses e-banking services,
Post graduates 28 using e-banking services out of 31, out of 7 professionals 6 uses e-banking
services.

Relation between monthly income and spent in managing a/c:-

Q-3: Monthly income:


(a). < Rs. 10000

(b) Rs 10001-20000

Rs 20001-30000

(d). Rs 30000 above

Case Processing Summary


Cases
Valid
N
Q-3 * Q-10

Missing
Percent

100

Total

Percent

100.0%

Percent

.0%

100

Total

100.0%

Q-3 * Q-10 Crosstabulation


Count
Q-10
1
Q-3

10

13

28

13

34

23

15

19

24

16

41

100

Total

Analysis:-

This test is found that high level income person uses has a/c on a
monthly basis.
Which has Less than 10000 salary:Uses

regular

occasionally

Weekly

monthly

Less than
10000
1000020000
2000030000
Above
30000

10

13

13

Relation between uses e banking services and benefits:

Q-5: you using E-Bank services:


a) Yes

No

Q-11: What benefits you derive from bank for using E-Banking
FACTORS
Discount
Reward point

Rank-1

Rank-2

Rank-3

Rank-4

Rank-5

Low process
Better customer care
Better security

Analysis:
Case Processing Summary
Cases
Valid
N

Missing
Percent

Total

Percent

Percent

Q-5 * Q-11(1)

94

94.0%

6.0%

100

100.0%

Q-5 * Q-11(2)

94

94.0%

6.0%

100

100.0%

Q-5 * Q-11(3)

94

94.0%

6.0%

100

100.0%

Q-5 * Q-11(4)

94

94.0%

6.0%

100

100.0%

Q-5 * Q-11(5)

94

94.0%

6.0%

100

100.0%

Q-5 * Q-11(1) Cross tabulation


Count
Q-11(1)
1
Q-5

Total

Total

14

14

32

26

92

15

14

32

27

94

Q-5 * Q-11(2) Cross tabulation


Count
Q-11(2)
1
Q-5

Total

10

19

32

30

92

11

19

33

30

94

Total

Q-5 * Q-11(3) Cross tabulation


Count
Q-11(3)
1
Q-5

Total

44

21

11

12

92

44

21

12

13

94

Total

Q-5 * Q-11(4) Cross tabulation


Count
Q-11(4)
1
Q-5

Total

Total

20

47

15

92

20

48

16

94

Q-5 * Q-11(5) Cross tabulation


Count
Q-11(5)
1
Q-5

Total

Total

16

35

10

22

92

17

35

10

23

94

E banking users 1 gives priority to low process, 2 nd it gives to the better customer care,
4rd it gives to the better security, than discount and reward point.

Conclusion and Suggestion


There is still a lot needed for the banking system to make reforms and train there
customers for using internet for there banking account. Going through the survey the
main problem lies that still customer have a fear of hacking of accounts and thus do
not go on for internet banking. Banks are trying there level best by providing the best
security options to the customers but then to there is lot of factors which betrays a
customer from opening an internet bank account.

Banks are providing free internet banking services also so that the customers can be
attracted. By asking the bank employs we came to know that maximum numbers of
internet bank account holders are youth, business man and HNIs.

If proper training should be given to customer by the bank employs to open an


account will be beneficial secondly the website should be made friendlier from where
the first time customers can directly make and access there accounts.

We can see the time is changing and we he passage of time people are accepting
technology there is still a lot of perceptual blocking which hampers the growth its the
normal tendency of a human not to have changes work on the old track, thats also
one of the reason for the slow acceptance of internet banking accounts.

Give proper training to customers for using e-banking

Create a trust in mind of customers towards security of there accounts

Provide a platform from where the customers can access different accounts
at single time without extra charge.

Make there sites more users friendly.

Customers should be motivated to use I banking facilities more.

SBI and ICICI bank are largest bank in india which provides a better e banking
services to the customer. But customer not affiliated with only sbi and icici bank. So its
a major issue for all the banks. Customer not 100% aware with the e-banking services
and products. People think e-banking is harmful for the society but its not true so bank
needs to advertise the security segment to the customer.
With increased developments, we are seeing the demand for the traditional service
delivery points and branch networks diminishing, while that of internet service based
takes on the central role. But that does not mean that the whole of the tradional system
will be diminished or will be wiped out completely, because there are several types of

works which can be more effectively dont by the tradional labor system rather than
ebanking

Appendix
Consumer perception towards e-banking
Name: ________________________________________
Address: ________________________________________
Phone no: -

________________________________________

Q-1: Age:b) less 20

21-30

c 31-40

41-50

+51

Q-2: sex:b) Male

b) Female

Q-3: Monthly income:


(a). < Rs. 10000

(b) Rs 10001-20000

Rs 20001-30000

(d). Rs 30000 above

Q-4: Qualification:
b) Graduates

Post Graduates

Q-5: Are you using E-Banking services:

Ph.D.

Professional

b) Yes

No

Q-6: What kind of a/c do you operate?


a) Saving

current

others

Q-7: Have you performed any of the following activities on-line?


Tax Filling

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

None

Q-8: Have your purchased any product through WWW?


Yes

No

Q-9: Factors influencing the use of E-Banking


FACTORS

Strongly
Agree

Agree

Neutral

Disagree

Strongly
Disagree

Rank-4

Rank-5

Accessibility
Saves time
Easy to acquire information
Self-service
More facilities
Security/less risk to use
Greater control over finance

Q-10: What benefits you derive from bank for using E-Banking
FACTORS
Discount
Reward point
Low process
Better customer care
Better security

Rank-1

Rank-2

Rank-3

Q-11: The main reason that you typically visit your bank branch (please choose a single
most important reason)
To make a deposit & withdrawal

To get advice for investment options

To inquire about a balance

Other, Please specify .

Q-12: Which bank has better and easy homepage for internet banking Service
HDFC Bank

Axis Bank

SBI Bank

Bank of Baroda

Other,Specify.

Short Description of report


Conclusion:
This paper introduced the main theme-banking, covered in the paper. It has set the
background, defined E-banking, and briefly discussed its evolution and importance to
the banking industry and customers worldwide. In conclusion E-banking creates issues
for banks and regulators alike. For their part, banks should:

Have a clear and widely disseminated strategy that is driven from the top and takes into
account the effects of E-banking, together with an effective process for measuring
performance against it.

Take into account the effect that e-provision will have upon their business risk
exposures and manage these accordingly.

Undertake market research, adopt systems with adequate capacity and scalability,
undertake proportional advertising campaigns and ensure that they have adequate
staff coverage and a suitable business continuity plan.

Ensure they have adequate management information in clear and comprehensible


format.

Take a strategic and proactive approach to information security, maintaining adequate


staff expertise, building in best practice controls and testing and updating theses the
market develops. Make active use of system based security management and
monitoring tools.

Ensure that crisis management processes are able to cope with Internet related
incidents. One of the benefits that banks experience when using E-banking is increased
customer satisfaction. This due to that customers may access their accounts whenever,
from anywhere, and they get involved more, this creating relationships with banks.14

Banks should provide their customers with convenience, meaning offering service
through several distribution channels (ATM, Internet, physical branches) and have more
functions available online. Other benefits are expanded product offerings and extended
geographic reach. This means that banks can offer a wider range and newer services
online to even more customers than possible before. The benefit which is driving most
of the banks toward E-banking is the reduction of overall costs. With E-banking banks
can reduce their overall costs in two ways: cost of processing transactions is minimized
and the numbers of branches that are required to service an equivalent number of
customers are reduced. With all these benefits banks can obtain success on the
financial market. But E- banking is a difficult business and banks face a lot of
challenges.
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 webenabled. 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 which 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.
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. Transactions can be submitted by the customer for online update. 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.
Automated Teller Machine (ATM):
ATM is designed to perform the most important function of bank. It is operated by
plastic card with its special features. The plastic card is replacing cheque, personal
attendance of the customer, banking hours restrictions and paper based verification.
There are debit cards. ATMs used as spring board for Electronic Fund Transfer. ATM
itself can provide information about customers account and also receive instructions
from customers - ATM cardholders. An ATM is an Electronic Fund Transfer terminal
capable of handling cash deposits, transfer between accounts, balance enquiries, cash
withdrawals and pay bills. It may be on-line or 0ff-line. The on-line ATN enables the
customer to avail banking facilities from anywhere. In off-line the facilities are confined

to that particular ATM assigned. Any customer possessing ATM card issued by the
Shared Payment Network System can go to any ATM linked to Shared Payment
Networks and perform his transactions.
Credit Cards/Debit Cards:
The Credit Card holder is empowered to spend wherever and whenever he wants with
his Credit Card within the limits fixed by his bank. Credit Card is a post paid card. Debit
Card, on the other hand, is a prepaid card with some stored value. Every time a person
uses this card, the Internet Banking house gets money transferred to its account from
the bank of the buyer. The buyers account is debited with the exact amount of
purchases. An individual has to open an account with the issuing bank which gives debit
card with a Personal Identification Number (PIN). When he makes a purchase, he
enters his PIN on shops PIN pad. When the card is slurped through the electronic
terminal, it dials the acquiring bank system - either Master Card or VISA that validates
the PIN and finds out from the issuing bank whether to accept or decline the
transactions. The customer can never overspend because the system rejects any
transaction which exceeds the balance in his account. The bank never faces a default
because the amount spent is debited immediately from the customers account.
Smart Card:
Banks are adding chips to their current magnetic stripe cards to enhance security and
offer new service, called Smart Cards. Smart Cards allow thousands of times of
information storable on magnetic stripe cards. In addition, these cards are highly
secure, more reliable and perform multiple functions. They hold a large amount of
personal information, from medical and health history to personal banking and personal
preferences.
You can avail the following services through E-Banking.
Bill payment service
You can facilitate payment of electricity and telephone bills, mobile phone, credit card
and insurance premium bills as each bank has tie-ups with various utility companies,
service providers and insurance companies, across the country. To pay your bills, all
you need to do is complete a simple one-time registration for each biller. You can also
set up standing instructions online to pay your recurring bills, automatically. Generally,
the bank does not charge customers for online bill payment.
Fund transfer
You can transfer any amount from one account to another of the same or any another
bank. Customers can send money anywhere in India. Once you login to your account,
you need to mention the payees's account number, his bank and the branch. The
transfer will take place in a day or so, whereas in a traditional method, it takes about
three working days. ICICI Bank says that online bill payment service and fund transfer
facility have been their most popular online services.
Credit card customers
With Internet banking, customers can not only pay their credit card bills online but also

get a loan on their cards. If you lose your credit card, you can report lost card online.
Railway pass
This is something that would interest all the aam janta. Indian Railways has tied up
with ICICI 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, Nashik, Surat and Pune.
Investing through Internet banking
You can now open an FD online through funds transfer.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 you the facility to
purchase mutual funds directly from the online banking system.
Nowadays, most leading banks offer both online banking and demat account. However
if you have your demat account with independent share brokers, then you need to sign
a special form, which will link your two accounts.
Recharging your prepaid phone
Now just top-up your prepaid mobile cards by logging in to Internet banking. By just
selecting your operator's name, entering your mobile number and the amount for
recharge, your phone is again back in action within few minutes.
Shopping
With a range of all kind of products, you can shop online and the payment is also
made conveniently through your account. You can also buy railway and air tickets
through Internet banking.
Advantage of Internet banking
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."
Through Internet banking, you can check your transactions at any time of the day, and
as many times as you want to. Where in a traditional method, you get quarterly
statements from the bank. 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.
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 memorised
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.

THANKS

Bibliography and
Webliography

Kothari C.R., research management, 4th edition 2004.


Research management journal, icfai press, October 2010 consumer
perception towards E-BANKING.

Webliography:www.sbi.com
www.icici.com
www.bpointroduction.com