PROJECT REPORT ON

A STUDY ON E-BANKING

SUBMITTED
IN FULFILLMENT OF THE REQUIREMENTS OF THE
AWARD OF DEGREE
BACHALOR OF MANAGEMENT STUDY
BY
TIRTH VELANI
ROLL NO-41456
T.Y.BMS(SEMESTER V)

UNIVERSAL
M.S.G S.G.K.M COLLEGE OF ARTS,SCIENCE & COMMERCE
TILAK ROAD,GHATKOPAR EAST,
MUMBAI-77
1

DECLARATION
I Mr/Miss_______________ studying in the Third Year of
Bachelor of Management Studies course in the academic year
2016-2017
at
M.S.G
S.G.K.M
college
of
Arts,Science&Commerce,Ghatkopar hearby declare that I have
completed the project titledA STUDY ON E-BANKING as a part
of the course requirements of Bachelor of Management Study of
University of Mumbai.

I further declare that the information presented in this project is

true and original to the best of my knowledge.

Date:_______
(TIRTH VELANI)
ROLL NO-41456

Place:Mumbai
2

ACKNOWLEDGEMENT
In completing of this project I am deeply conscious of my debt to
all those,without whose warm support,enragement & guidance
this project was not possible to complete. I am specially greatfull
to MR.SURESH RAO my guide to this project,he actually gave
the life to this project and guidance of my parents & friends this
project took shape.they also provided me much needed criticism
& encouragement.

CERTIFICATE

NAAC ACCREDITED
This is to certify that,Mr/Miss____________ student of
UNIVERSAL COLLEGE,GHATKOPAR studying in T.Y B.M.S
(Semester V),has successfully completed his project report
on___________________________________ in the academic
year 2016-2017 The information submitted is true and original to
the best of the knowledge.

__________________

______________

(Signature of Project Guide)

(Signature of Principal)

__________________

______________

(Signature of Coordinator)

(Signature of External)
4

INDEX
SR. NO

CONTENT
CHAPTER 1

1
2

Introduction to E Banking
Scope Of E - Banking

Need Of E - Banking

History Of E - Banking

CHAPTER 2
1
2
3
4

Indian View Of
E - Banking
Global View Of
E - Banking
Evolution of
E - Banking
Usage Of E - Banking

CHAPTER 3
1
2
3
4

Type Of E Banking
SWOT Analysis Of
E - Banking
E Banking Products
How E Banking Can
be Easy

PAGE NO

CHAPTER 4
1
2

Risk In E-Banking
Simple Guidence
For Safe E-Banking
CHAPTER 5

1
2
3
4

Introduction Of
Axis Bank
History Of Axis
Bank
E-Banking In Axis
Bank
Case Study
CHAPTER 6

1
2
3
4

Concusion
Data Analysis
Questionairy
Websites

CHAPTER 1
1.
2.
3.
4.

Introduction To E-Banking
Scope Of E-Banking
Need Of E-Banking
History Of E-Banking

Introduction to E-Banking
The world is changing at a staggering rate and technology is
considered to be the key driver for these changes around us.
An analysis of technology and its uses show that it has
permated in almost every aspect of our life. Many activities
are handled electronic due to acceptance of information
technology at home as well as at work place. Slowly but
steadily, the Indian customers is moving towards the internet
banking. The ATM and the Net transactions are becoming
popular. But the customer is clear on one thing that he wants
net banking to be simple and the banking sector is
matching its steps to the technology. E Banking or Online
banking is a generic term for the delivery of banking services
and products through the electronic channels such as the
8

telephone , the internet , the cell phone , etc .The concept

and scope of E banking is still evolving, It facilitates an
effective payment and accounting system thereby enhancing
the speed of delivery of banking services considerably.
Several initiatives have been taken by the Government of
India as well as the RBI ( Reserve Bank of India ) ; have
facilitated the development of E Banking in India. The
Government of India enacted the IT Act , 2000 , which
provides legal recognition to electronic transactions and
other means of electronic commerce. The RBI has been
preparing to upgrade itself as regulator and supervision of
the technologically do maintend financial system. It issued
guidelines on the risks and controls in computer and
telecommunication systems to all banks , advising them to
evaluate the risks inherent in the systems and put in place
adequate control mechanisms to address these risks

WHAT IS E BANKING ?
Electronic banking is one of the truly widespread avatars of
E Commerce over the world. Various authors define E
Banking differently but the most definition depicting the
meaning and features of E Banking are as follows :1. Banking is a combination of two. Electronic technology
and Banking.
2. Electronic Banking is a process by which a customer
performs banking Transactions electronically without
visiting a brick and mortar institutions.
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3. E Banking denotes the provision of banking and related

service through Extensive use of technology without direct
recourse to the bank by the customer.

WHAT IS E BANKING ?

DEFINATION OF E BANKING
E Banking is defined as the automated delivery of new and
traditional banking products and services directly to customers
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through electronic , interactive communication channels. E

Banking includes the system that enable financial institutions
customers , individuals or businesses to access accounts ,
transact business , or obtain information on financial products and
services through a public or private network , including the
Internet. Customers access E Banking services using an
intelligent electronic device such as personal computer , personal
digital assistant , automated teller machine , Touch Tone
Telephone. While the risks and controls are similar for the various
e banking access channels , this booklet focuses specifically on
Internet based services.

Scope Of E Banking
The traditional mode of banking is manual. It is paper based.
It is now no longer acceptable in the changing global
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economy. With the widespread internet technology , the

business is also electronic electronic commerce ,
electronic import and export , electronic procurement of
goods , electronic trade mobile banking , etc
The banking sector , if it is to survive in the 21st century ,
shall have to change the entire banking structure. It shall
have to provide better , economical and quick monetory
services through the use of advance electronic technology.
The customers of the banking are fast becoming computer
literate. They are now able to interact more fluently with the
prevision of basic electronic services
The needs of the customers have also changed. They
require the services of banks at home , in offices , 24 hours a
day , seven days a week , anywhere , anytime and anyhow
The banks are quite alive to the changing needs of the
customers. They fully realize that if they are to compete they
shall have to provide electronic delivery of financial services
to the customers
They are rendering services such as electronic fund transfer
( ETF ) , payment by phone services , personal computer
banking , point of sale transfer , electronic check
conversations , etc , etc
The scope of E banking is now fast expanding in the
developed and also under developed countries of the
world.

OBJECTIVES OF E BANKING
1. The banking at any point of time can give the customers
information related to their
Accounts and accounts status
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 The balance enquiry

The fund transfer standards
The cheque book request.

2. The system can provide information related to the different

types of account that are existing within the bank

3. The system can provide the bank administration with the

information on the number of customers who are exisiting
in the system
4. The system at any point of time can provide the
information related to the executed transactions by the
customers
5. The system with respect to the necessities can identify all
the history details of theatrical participants along with their
outcome of the results.
6. The system with respect to the necessities can provide
the status of research and development process that is
under schedule within the organization currently.
7. With proper storage of the data in a relational environment
can Applegate itself to cater to the standards of providing
a clear and easy path for future search standards that
may arise due to organizational policies.

13

Features of Internet Banking

Easily adoptable by customers.

Easy to maintain.
Cost effective solution.
Enables the bank to reach its customers on the net.
Reduce rush at the customers of the bank
Enables the customers of the bank to access
information from anywhere and at any time.
Balance and transactions history search.
Transaction history export.
Order new statements.
Mobile banking
Transfers
Pay Bills
Pay anyone payments
SMS banking services

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NEED FOR E 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 the delivering a wide range of
value added products and services. The delivery channels include
direct dial up connections , private networks , public networks
and the devices include telephone. Personal Computers including
the Automated Teller Machine ( ATM ) , 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.

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HISTORY OF E BANKING
The concept of internet banking has been simultaneously evolving
with the development of the world wide web. Programmers
working on banking data bases comes up with the ideas for online
banking transactions , sometimes during the 1980s. The creative
process of development of these services are probably sparked
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off after many companies started the concept of online shopping.

The online shopping promoted the use of credit cards through
Internet. Many banking organizations had already started creating
data ware housing facilities to ease their working staffs. The
development of these databases were widely used during the
development of ATMs.
Sometimes in 1980s , banking and finance organizations in
Europe and United States started suggestive researches and
programming experiments on the concept of home banking .
Initially in the 80s when computers and internet were not so well
developed. home banking basically made use of fax
machines and telephones to facilitate their customers. The
widespread of Internet and programming facilitates created
further opportunities for development 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. This service formed the basis for the
most of the Internet banking facilities that followed. This facility
was not well-developed and restricted the number of transaction
and functions that account holder could execute. The facility
introduced by Nottingham Building Society is said to have been
derived from a system known as Prestel,that is deployed by the
postal service department of United Kingdom.

The first online banking service in United States was introduced,

in octuber 1994. The service was developed by Standford Federal
Credit Union,which is a financial institution. The online banking
services are becoming more and more prevalent due to well17

developed systems. Though there are pros and cons of electronic

cash, it has become a revolution that is enhancing the banking
sector.

Chapter 2
1.Indian View Of E-Banking
2.Global View Of E-banking
3.Evolution Of E-Banking
4.Usage Of E-Banking

18

Indian View
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 : INFORMATION ONLY SYSTEM :- General purpose
information like interest rates , branch location , bank
products and their features , load and deposit
calculations are provided in the banks website. Their
exist facilities for downloading various types of
application forms. The communication is normally done
through email. There is no interaction between the
19

customers and the banks 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.
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
read only format. Identification and authentication of
the customer is through password. The information is
fetched from the banks application system either in
batch mode or off-line mode. The application systems
cannot directly access through the internet.
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. It includes the following
o ATM
o DEBIT CARDS
o SMART CARDS
o MOBILE BANKING

THE INDIAN SCENERIO

20

Drivers of Change :- Advantages previously held by large financial

institutions have shrunk considerably. The internet has leveled the
playing field and afforded open access to customers in the global
marketplace. Internet banking is a cost effective delivery cahnel
for financial institutions. Customers are embracing many benefits
of internet banking. Access to ones accounts at anytime and from
any location via the World Wide Web is a convenience unknown a
short time ago. Thus , a banks internet presence transforms from
brouchreware status to Internet Banking status once the bank
goes through a technology integration effort to enable the
customers to access information about his or her specific account
relationship. The six primary drivers of internet banking includes ,
in order of primacy are :

Improve customer access

Facilitate the offering of more services
Increase customer loyalty
Attract new customers
Provide services offered by competitors
Reduce customer attrition.

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Global View
Since the inception,Internet banking has experienced strong and
sustained growth.the world bank report on leapfrogging in efinance pointed out that the three countries with impressive
progress in information technology in this sense are
Estonia,Republic of Korea and Brazil. Creation of the worlds
leading electronic banking system has been done at a remarkable
low cost compared to other world-class internet banks. In the
European Union,60 million people,representing 18 per cent of the
adult population.use online banking in France,the number of
online banking accounts is recording an annual growth rate of 75
per cent. However,Estonia is the country that has become a
22

leader in Internet Banking not only among eastern European

countries,but also in world ranking,through a combination of easy
to-use software,free-of-charge transaction and behavior changes
resulting from the influence of the Nordic countries IT culture on
Estonia

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