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INTRODUCTION:
Housing Development Finance Corporation Bank Ltd. (BSE: 500180, NYSE: HDB) is a
major Indian financial services company based in Mumbai, incorporated in August 1994, after the Reserve
Bank of India allowed establishing private sector banks. The Bank was promoted by the Housing
Development Finance Corporation, a premier housing finance company (set up in 1977) of India. HDFC
Bank has 1,725 branches and over 4,232 ATMs, in 779 cities in India, and all branches of the bank are
linked on an online real-time basis. As of 30 September 2008 the bank had total assets of INR 1006.82
billion. For the fiscal year 2008-09, the bank has reported net profit of Rs.2,244.9 crore, up 41% from the
previous fiscal. Total annual earnings of the bank increased by 58% reaching at Rs.19,622.8 crore in 2008-
09.

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HISTORY:

HDFC Bank was incorporated in 1994 by Housing Development Finance Corporation Limited (HDFC),
India's largest housing finance company. It was among the first companies to receive an 'in principle'
approval from the Reserve Bank of India (RBI) to set up a bank in the private sector. The Bank started
operations as a scheduled commercial bank in January 1995 under the RBI's liberalization policies.

Times Bank Limited (owned by Bennett, Coleman & Co. / Times Group) was merged with HDFC Bank Ltd.,
in 2000. This was the first merger of two private banks in India. Shareholders of Times Bank received 1
share of HDFC Bank for every 5.75 shares of Times Bank.

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

HDFC Bank Ltd was promoted in the year 1994 by the premier housing finance company of the country,
HDFC Ltd. The Bank commenced operations as a Scheduled Commercial Bank in January 1995.
Today the Bank has a nationwide network of over 1412 branches and 3295 ATM͛s spread over 528 towns
and cities across India.
The Bank's American Depository Shares (ADS) are listed on the New York Stock Exchange (NYSE) and the
Global Depository Receipts (GDRs) are listed on Luxembourg Stock Exchange. The Bank has been
bestowed with numerous awards and accolades from top national and international agencies &
magazines.
HDFC Bank comprises of a dynamic and enthusiastic team determined to accomplish the vision of
becoming a World-class Indian bank. Their business philosophy is based on four core values - Customer
Focus, Operational Excellence, Product Leadership and People. They believe that the ultimate identity and
success of the bank will reside in the exceptional quality of their people and their extraordinary efforts.
Members are committed to hiring, developing, motivating and retaining the best people in the industry.
The Bank͛s objective is to build sound business franchises across distinct businesses so as to be a preferred
provider of banking services for target retail and wholesale customer segments. They are committed to
healthy growth in profitability while ensuring the highest levels of ethical standards, professional integrity,
corporate governance and regulatory compliance.

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MISSION AND STRATEGY:

The bank͛s mission is to be " a World Class Indian Bank", benchmarking themselves against
international standards and best practices in terms of product offerings, technology, service levels,
risk management and audit & compliance. The objective is to build sound customer franchises
across distinct businesses so as to be a preferred provider of banking services for target retail and
wholesale customer segments, and to achieve a healthy growth in profitability, consistent with the
Bank's risk appetite. Bank members are committed to do this while ensuring the highest levels of
ethical standards, professional integrity, corporate governance and regulatory compliance.

Their business strategy emphasizes the following :

Increase market share in India͛s expanding banking and financial services industry by following a
disciplined growth strategy focusing on quality and not on quantity and delivering high quality
customer service.
Leverage their technology platform and open scalable systems to deliver more products to more
customers and to control operating costs.
Maintain their current high standards for asset quality through disciplined credit risk management.
Develop innovative products and services that attract targeted customers and address inefficiencies
in the Indian financial sector.
Continue to develop products and services that reduce cost of funds.
Focus on high earnings growth with low volatility.

DISTRIBUTION NETWORK:
HDFC Bank is headquartered in Mumbai. The Bank has an network of 1,725 branches spread in 771 cities
across India. All branches are linked on an online real-time basis. Customers in over 500 locations are also
serviced through Telephone Banking. The Bank has a presence in all major industrial and commercial
centers across the country. Being a clearing/settlement bank to various leading stock exchanges, the Bank
has branches in the centers where the NSE/BSE have a strong and active member base.

The Bank also has 3,898 networked ATMs across these cities. Moreover, HDFC Bank's ATM network can be
accessed by all domestic and international Visa/MasterCard, Visa Electron/Maestro, Plus/Cirrus and
American Express Credit/Charge cardholders

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Activities :
HDFC Bank mainly provides three kinds of banking services:
Ô üersonal Banking
Ô NRI Banking
Ô Wholesale Banking
The following are the products and services provided by the HDFC bank

Ô HDFC Bank provides loans like üersonal Loans , Home Loans , Educational Loans ,Two Wheeler
Loans , New car Loans, Used Car Loans, Overdraft Against Car, Express Loans, etc.
Ô HDFC Bank provides Credit, Debit and Prepaid Cards to help you meet your financial objectives.
Ô HDFC Bank provides facilities like Mutual Funds, Insurance, General & Health Insurance, Bonds,
Financial Planning, Knowledge Center, Equities & Derivatives, Mudra Gold bar.

If one needs to deal in foreign currency and keep tabs on exchange rates every now and then, transfer
funds to India, make payments etc., HDFC Bank has a range of products and services that one can choose
from to transact smoothly, efficiently and in a timely manner.

HDFC Bank has designed two programs to make banking easier for the customers and they are

Ô HDFC Bank Preferred Programme

Ô HDFC Bank Classic Programmme

HDFC Bank offers Private Banking services to high net worth individuals and institutions.
HDFC Bank offers quick, economical and convenient options to remit and transfer funds to India.

Corporate Banking reflects HDFC Bank 's strengths in providing corporate clients in India, a wide array of
commercial, transactional and electronic banking products.
HDFC Bank acts as an active medium between the government and the customers by means of various
services.

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TECHNOLOGY:

Technology has brought about strategic transformation in the working of banks. With years, banks are also
adding services to their customers. The Indian banking industry is passing through a phase of customers
market. The customers have more choices in choosing their banks. With stiff competition and
advancement of technology, the service provided by banks has become more easy and convenient.
HDFC Bank operates in a highly automated environment in terms of information technology and
communication systems. All the bank's branches have online connectivity, which enables the bank to offer
speedy funds transfer facilities to its customers. Multi-branch access is also provided to retail customers
through the branch network and Automated Teller Machines (ATMs)

The Bank has made substantial efforts and investments in acquiring the best technology available


internationally, to build the infrastructure for a world class bank. The Bank's business is supported by
scalable and robust systems which ensure that their clients always get the finest services they offer.

The Bank has prioritized its engagement in technology and the internet as one of its key goals and has
already made significant progress in web-enabling its core businesses. In each of its businesses, the Bank
has succeeded in leveraging its market position, expertise and technology to create a competitive
advantage and build market share.

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The various types of technologies that are used in HDFC Bank include:

6 Real Time Gross Settlement(RTGS)

6 Electronic Fund Transfer (EFT)

6 Electronic Clearing Services (ECS)

6 Corporate Internet Banking

6 Mobile Banking

6 Phone Banking

6 Automated Teller Machine(ATM)

6 Credit Cards

6REAL TIME GROSS SETTLEMENT(RTGS):

Real Time Gross Settlement is an inter-bank funds transfer system, where funds are transferred as
and when the transactions are triggered (i.e. real time).

The acronym 'RTGS' stands for 'Real Time Gross Settlement'. RTGS system is a funds transfer
mechanism where transfer of money takes place from one bank to another on a 'real time' and
on 'gross' basis. This is the fastest possible money transfer system through banking channel.
Settlement in 'real time' means payment transaction is not subjected to any waiting period.

Benefits of RTGS:
Speed: The beneficiary branches are expected to receive the funds in real time, soon after the funds
are transferred by the remitting bank.

Quicker settlement cycles: Cuts across inter-bank and clearing house settlement issues

Wider Boundaries: No geographical limitations within India, as long as it is a participating bank in the
RBI͛s RTGS system.

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6 ELECTRONIC FUNDS TRANSFER (EFT):

x


 is a method of payment where the money transfer between financial institutions
takes place electronically.

The term is used for a number of different concepts

Ô Cardholder- initiated transactions: In this a cardholder makes use of a payment card like a credit or
a debit card.

Ô Direct deposit payroll payments: In this payments are made by business establishments to its
employees probably through a payroll services company.

Ô Direct debit payments: Here payments are made by the customer to a business establishment; the
transaction takes place with the customer͛s permission.

Ô Electronic bill payment: This is done through online banking and it could be delivered by EFT or a
paper cheque.

Ô Transactions involving stored value of electronic money, possibly in a private currency.

Ô Wire transfer through an international banking network, it generally charges a high fee.

Ô Electronic Benefit Transfer which allows state governments to provide financial and material
benefits to authorized recipients using a plastic debit card.

Card Based EFT:

A card based EFT could be initiated when a payment card like a credit or a debit card is used. This could
take place at an ATM (Automated Teller Machine) or POS (Point of Sale.) Alternatively it could take place
when the card is not present, which covers cards used for mail order, telephone order and internet
purchases.

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EFT Transaction Types:

The different transaction types include

1. Sale- Here the cardholder pays for the purchase or service.

2. Refund- Here a trader refunds an earlier payment made by a cardholder.

3. Withdrawal- Here the cardholder withdraws money from his account like from an ATM. The term
Cash advance could also be used instead of withdrawal especially when the funds are advanced by
a merchant rather than at an ATM.

4. Deposit- Here a cardholder deposits money in his own account usually at an ATM.

5. Cashback- Here a cardholder withdraws money from his account while making a purchase.

6. Inter account transfer- Here transferring of funds between linked accounts belonging to the same
cardholder takes place.

7. üayment- This is transferring the money to a third party account.

8. Enquiry- This is a transaction which is for enquiring only, like it could be for a balance enquiry or
available funds enquiry or linked accounts enquiry or request for a statement of recent
transactions on the account. Here no financial transaction takes place.

9. E top up- Here a cardholder uses a device (typically POS or ATM) to add funds (top-up) to their pre-
paid mobile phone.

10. Mini statement- Here a cardholder uses a device such as an ATM to get details regarding the
recent transactions of his account.

11. Administrative- Here a number of non financial transactions which are covered. A typical example
would be like changing the PIN.

It should be kept in mind that the transactions types offered are different on each terminal. Thus the
transactions offered by an ATM would be different from those offered by a POS terminal.

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EFT Authorization

For a smooth EFT transaction, communication between a number of parties is required. When a card is
used at a merchant or ATM, the transaction is first routed to an acquirer. After this it is routed to the
issuer where the cardholder's account is held. This is done via a number of networks.

A transaction could be authorized offline by any of the entities through a stand-in agreement. A stand-in
agreement could be used when a communication link is not available or it could be done simply to save
communication cost or time.

Stand-in is subject to the transaction amount being below agreed limits, known as floor limits. This limit is
calculated on the risk of authorizing a transaction offline and hence is different for each merchant and
card type. Offline transactions may be subject to other security checks such as checking the card number
against a 'hotcard' (stolen card) list, velocity checks (limiting the number of offline transactions allowed by
a cardholder) and random online authorisation.

Authentication in EFT Transactions

EFT transactions are generally accompanied by means to confirm the card and the card holder. This can be
done by the merchant who could manually check the card holder͛s signature. It could also be done by
checking the card holder͛s PIN number online.

Other information used for verification could be requested from the cardholder (like the card holder͛s
address) or it could be something which is not visible to the cardholder (like the magnetic stripe data).

EMV cards are smartcard based payment cards in which the smartcard technology allows a number of
improved verification procedures.

x


The users can avail following benefits via EFT:

Ô Considerable reduction in transaction time.

Ô Minimum or no paperwork involved.
Ô Fast and easy to use.
Ô Anytime anywhere banking.
Ô No need to go to the bank and form queues.

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Various types of fund transfers are offered by HDFC Bank:

Ô India Link - Money transfer made possible from Middle East through partner exchange houses
of HDFC Bank. In 24 hrs money is credited in HDFC bank account of the beneficiary or Demand
Drafts are issued within 3 days.

Ô Cheque Lock Box - This service is offered by HDFC Bank in US and UK. Local cheques can be sent
to the local mail box which in turn credited into beneficiary͛s c
 

 with local
currency cheque.

Ô Muick Remit - This facility available for sending money from US, UK and Singapore. This is
an online money transfer mode, the money can be credited into recipient͛s HDFC bank account
across India.

Ô Telegraphic Transfer - Money from any part of the world can be sent to beneficiary͛s HDFC
Bank account with TT or wire transfer.

Ô Traditional transfers of cheque, DD etc. are also available with HDFC bank.

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6 ELECTRONIC CLEARING SERVICES:

It is a mode of electronic funds transfer from one bank account to another bank account using the
services of a Clearing House. This is normally for bulk transfers from one account to many accounts or
vice-versa. This can be used both for making payments like distribution of dividend, interest, salary,
pension, etc. by institutions or for collection of amounts for purposes such as payments to utility
companies like telephone, electricity, or charges such as house tax, water tax, etc or for loan installments
of financial institutions/banks or regular investments of persons.

RBI offers Electronic Clearing System (ECS) for faster collections (ECS Debit) and payments (ECS Credit).

ECS Credit can be utilised for payments like interest / dividend etc. ECS Debit is normally used for
collections which include payment of utility bills (electricity, telephone), collection of taxes etc.

ECS Credit/Debit facility can be availed at all available locations.

Following broad steps are common for both ECS Credit and ECS Debit:

The company needs to obtain a mandate from the beneficiary / payee which would provide all the
details as stipulated by Reserve Bank of India.

The company will have to route the ECS through a Sponsor Bank. The company is required to submit a
E1 form to get a User code from RBI through the Sponsor Bank. One user code is obtained for ECS at all
RBI locations.

The company then submits the data in soft form for effecting the ECS. The data is provided in separate
files sorted city wise.

The data has to be provided to the Sponsor Bank at least 7 working days before the settlement date.
The settlement date is the date on which the account of the beneficiary will be credited (ECS Credit) or
payee's account will be debited (ECS Debit).

ECS Credit: Within 2 days of the settlement date, RBI provides a list of uncredited / returned items.

ECS Debit: Within 1 day of the settlement date, RBI provides the final list of accounts debited and as per
RBI regulations, no late rejects are accepted by RBI

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6 CORüORATE INTERNET BANKING(ENet):

ENetΡ allows multi-branch connectivity and can integrate with heterogeneous core back-end systems
across branches in India . This integration provides a seamless access point for clients.

ENetΡ's 3-level hierarchical design (domains, groups and companies) is well suited to today's corporate
vision of managing global businesses.

The major advantages of ENetΡ are

Secured Gateway Architecture

ENetΡ gateway architecture provides clients secured uniform access to the bank. ENetΡ Gateway
provides global banking information through its multiple branch connectivity and global connectivity
interface. The ENetΡ Gateway is highly configurable and scalable and can be easily enhanced to
provide multiple delivery channel support to devices like PDA, Fax, Pagers, and Phones.
Security
ENetΡ offers 12 levels of application and system security. Some of the key security features include
provision on pre-approved beneficiaries, SSL, RSA/TRIPLEDES Encryption, Smart Card and ActivCard
security. ENetΡ can also be easily integrated with major third party security software without many
programming changes.
Customisable User Interface
The ENetΡ Interface is easily customisable. ENetΡ is developed using Object Oriented programming
techniques and can be implemented in phases due to its modular structure.

Account Information

ENetΡ offers complete Cash Management functions like cash reporting and payments information. This
module can be used to view and print the following:
Statements of Account and Balances
Consolidated Balances across multiple currency accounts.
Drill down facilities for transactions and historical balances.

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ENetΡ delivers the client to export account information, which can in turn be used by the client's host
accounting systems. Such integration facilities for SAP, Oracle Financial and other ERP systems are
currently built into ENetΡ.

üayments

ENetΡ allows the client to make Domestic payments using one of the following payment options:

Single Payment.
Multiple Payments / Quick Payments.
Bulk Payments.
Upload offline created files.

Ú
 
 
   


The customer needs a PC or notebook or network computer which can connect to the Internet and run an Internet
Browser (Netscape Navigator 5.x or Internet Explorer 5.x).

a     



Enables you to upload the salary payment instructions for your employees stationed countrywide.

       



ENetΠkeeps you updated of your foreign currency transactions, positions of your forward bookings and rates.

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HDFC Netbanking
HDFC Netbanking is the internet banking service which provides you the information of your accounts and
let you mange your account online from anywhere, anytime. It avoids the long queues and lots of paper
work. With HDFC bank͛s Netbanking you can manage your account by a click of a mouse. The HDFC
Netbanking uses good infrastructure and standard technologies to provide safe and secure service to its
clients.

Services offered through HDFC Netbanking

Ô Funds transfer between accounts

Ô Demand Draft request
Ô Bills payment
Ô Cheque Book order
Ô Account Statement and View Balances
Ô Online Fixed deposits
Ô Request to stop payment of a cheque
Ô Third Party transfer

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6 ATM:
An automated teller machine (ATM), also known as automatic banking machine (ABM), Cash Machine,
or Cash point, is a computerized telecommunications device that provides the clients of a financial
institution with access to financial transactions in a public space without the need for a cashier, human
clerk or bank teller. On most modern ATMs, the customer is identified by inserting a plastic ATM card with
a magnetic stripe or a plastic smart card with a chip, that contains a unique card number and some
security information such as an expiration date or CVVC (CVV). Authentication is provided by the customer
entering a personal identification number (PIN).

Using an ATM, customers can access their bank accounts in order to make cash withdrawals, credit
card cash advances, and check their account balances as well as purchase prepaid cellphone credit. If the
currency being withdrawn from the ATM is different from that which the bank account is denominated in
(e.g.: Withdrawing Japanese Yen from a bank account containing US Dollars), the money will be converted
at a wholesale exchange rate. Thus, ATMs often provide the best possible exchange rate for foreign
travelers and are heavily used for this purpose as well.

With over 4,393 ATMs present across India, you can withdraw cash and do much more at HDFC Bank ATM.
The sophisticated, computerised network gives the flexibility of accessing one͛s account.

FEATURES AND BENEFITS:

Ô è -hour access to Cash

Ô üersonalised Cash Withdrawals .
Ô View Account Balances & Mini-statements.
Ô Change ATM üIN
Ô Order a Cheque Book / Account Statement
Ô HDFC Bank Credit Card üayment.
Ô Deposit Cash or Cheques
Ô Transfer Funds between accounts
Ô Refill your ürepaid Mobile .
Ô üay your Utility Bills ʹ
Ô Cheque Status Enquiry

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6 MOBILE BANKING:
Now one can access their bank account and conduct a host of banking transactions through their mobile,
with HDFC͛s unique Mobile Banking service . One can check their account level information such as
balance details, mini statement, cheque status as well as carry out financial transactions such as Funds
Transfer using HDFC Bank Mobile Banking service.

Using HDFC Mobile Banking service, one can avail of a host of features at their finger tips:
Ô Perform funds transfers
Ô Get balance details
Ô Obtain last 3 transaction details
Ô Request a cheque book
Ô Stop a cheque payment
Ô Enquire cheque status
Ô Request an account statement
Ô Get Fixed Deposit details
Ô Request for I-PIN generation

How does it work?

One can access HDFC Bank Mobile Banking service using SMS on your mobile phone. Customers can
access their account balance, mini statement, account statement etc using based SMS service. HDFC Bank
Mobile Banking is also available on ngpay wherein besides the above mentioned non financial
transactions, customers can also perform funds transfers from their HDFC Bank account using the mobile
phone.

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6 üHONEBANKING:

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

Following services are available via ühoneBanking:

Check account balance ʹ Customers can second details of their Savings or Current Accounts and Fixed
Deposits. One can also get the details of the last 5 transactions on your account, or have a mini
statement of last 15 transactions faxed across to you.

Enquire on the cheque status - Customers can use Phone Banking to check on the status of cheques
issued or deposited from anywhere in India.

Order a Cheque Book / Account Statement - Just call Phone Banking and get your Cheque Book or
latest Account Statement delivered at your doorstep.

Stop üayment ʹ One can stop payment of a single cheque or a series of cheques, 24 hours a day.

Loan Related queries - Get details of the outstanding loan amount, enquire about loan account,
request for an interest certificate and repayment schedule, etc. One just has to call Phone Banking in
their city, select preferred language and dial 4 to speak to HDFC Phone Banker.

Demat Related Mueries - Get details of Account holding, Transaction details, ISIN Number of a scrip,
status of Depository Slips, Client Master list details, Charges for the account and others. One has to

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call Phone Banking in their city, select preferred language & dial 5 to speak to HDFC Phone Banker.

Open a Fixed deposit *#- One has to talk to HDFC Phone Banker to open a Fixed Deposit over the
phone, by simply authorizing a transfer of funds from their Savings Account.

Transfer Funds between accounts*# - Customers can also transfer money from one of the accounts to
another. Both accounts must be linked to their Customer ID. One can transfer amounts upto Rs 1 Lac
in a single day.

üay your bills - Pay cellular, telephone, electricity bills through Phone Banking using BillPay, a
comprehensive bill payments solution.

Re-generation requests for ATM / Debit card üIN / NetBanking IüIN,etc - Call PhoneBanking in order
to regenerate ATM / Debit card PIN / Net Banking IPIN,etc.

Report loss of ATM / Debit / ürepaid Card - If ATM / Debit / Prepaid Card is lost, one can call any
PhoneBanking number to hotlist / block the card(s).

Learn about all other HDFC products - Get details on HDFC Bank products & services by talking to the
PhoneBanker.

Enquire about latest Interest / Exchange rates - Get latest Interest rates on Deposits and Foreign
Exchange rates by talking to our PhoneBanker.

Request a Demand Draft / Manager's Cheque #** - Call PhoneBanking and get a Demand Draft /
Manager's Cheque delivered to your doorstep.

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Servers:

The bank started with applications on SCO-Unix boxes from Compaq almost eight years back. The software
then used was Micro Banker from i-flex Solutions (then called CITIL). The set-up supported about 10
branches initially.

With an expansion in the number of branches the bank felt the need to consider Unix/RISC boxes rather
than an Intel/SCO Unix platform, and selected the Sun platform. Since then the bank has been running
applications on a Sun platform..

With the growth in transaction volumes, number of branches and the number of users the hardware
platform has also been upgraded. Till recent times the database was operating on a direct attached
storage (DAS), and from 1st April 2003 the bank switched to storage attached network (SAN).

The bank's earliest server was a Sun Ultra 170; over time it moved to Sun Ultra 3500, 4500, and then Sun
E10 K. Now the applications run on Sun's Star Fire 15K Server.

Banking applications
The bank uses separate software for corporate and retail banking as there was no single package that met
both their business requirements.

On the corporate side HDFC Bank started with MicroBanker and then moved to Flexcube in 2002. They use
Flexcube UBS, which operates on a Compaq Alpha box-GS160. This database was also on DAS and was
moved to SAN over last year (December 2002). The bank uses SAN solutions from Hitachi Data Systems.
On the retail side the bank uses Finware from i-flex solutions.

The bank did not face any serious migration issues as they use upgraded products or new products usually
from the same vendors. The vendors have programs that enable the migration or upgrades.

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Storage

The bank currently deploys SAN but feels they will need to consider NAS sometime in the future.
According to C. N. Ram the bank's storage requirement is growing at a rate of four to five percent every
month. With an increase in data volume, the capacity of the hardware also needs to be updated. This calls
for huge investments as all areas like backup, disaster recovery and others need to be addressed. The
bank has to store data for seven years as per the RBI guidelines, and as it is not necessary to store the data
on-lineͶthe bank uses tapes for off-line storage. The bank anticipates storage costs to come down, and
bulk purchases would be economical.

Disaster Recovery setup

HDFC Bank͛s approach is to protect their data first as the basis for a business continuity plan.

The bank has a disaster recovery (DR) site at Chennai. The data at the main center is replicated in real-time
on-line at the Chennai site. The data is stored on the servers at the DR site and the database is constantly
replenished. If some disaster was to occur, data (up to the last second) will be replicated, and be available.
This gives both, the bank and the customer a feeling of security.

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6 CREDIT CARDS ONLINE:

HDFC Bank NetBanking service is now available for Credit Cards also. Now using HDFC Bank
Credit Card has become more convenient and time saving. One can now access their Credit
Card account from home or office or even while traveling. With NetBanking customers can
view their card account information and do much more just at the click of a button.
Currently the following Credit Cards Netbanking features are available :-

One can View:

Account Information
Unbilled Transactions
Credit Card Statement
Download Card Statement (upto last 6 months)
One can Request for:

Autopay Register (Only for HDFC Bank account holders)

Autopay Deregister
Statement on E-Mail
Credit Card ATM PIN
Register New Card
Deregister Card
Credit Card Payment (Only for HDFC Bank account holders)

This service is offered completely free and customers are assured of complete privacy
during the use of NetBanking facility.

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Banking through multi-channels

Today banking is not limited to a branch. People have lesser time to spend on their banking
activities and would like to avail the banking services through other channels. In a
competitive market where the services offered command market share, banks are constantly
vying for customers. Banking has become a process of choice and convenience.

By offering different channels even the banks have been successful in diverting their
operations from a branch to other channels. The result of which has been a cut in the cost
per transaction at the branch. An average transaction at the branch costs around Rs.100; at
an ATM it is about Rs.40, and on the Internet it's around Rs. 20.

"But unfortunately a very small percentage of the customers out there use the Internet. This
is due to factors like low PC penetration, and penetration of Internet itself is low. A large
number of the bank͛s customers use ATMs. Typically 55 percent of the transactions are on
the ATM, 30 percent branch, 8 percent on telephone and 7 percent Internet."

Rolling out new branches

S.R. Balasubramanian, VP-IT, HDFC Bank explained the branch set-up procedure. The bank
follows a standard procedure and the entire process is well streamlined. From the selection
of the location, physical set-up of the branch, the infrastructure requirements, hardware,
software, connectivity, is all documented to have standardized branches across the country.

He further explained that they have some regular vendors for purchases. The bank follows
the reverse auction system, wherein all preferred vendors are called and a base price is
quoted according to which the vendors quote their prices.

"We have to reach to all areas of the country and wherever there is an opportunity we have
to identify it, connect and reach our customers. Earlier it took us around 14-15 days to open
a new branch after the physical set-up was ready, but now it takes just five days to set up a
branch. The entire process is so well documented and streamlined that it is easy to roll out a
branch," said S.R. Bala.

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The bank follows a similar procedure to roll out ATM's.

Interesting development:
Some countries have a credit bureau that collects information from all banks in the country.
It is mandatory for all financial institutions to give data to this bureau. If this data is not
exchanged, every bank is vulnerable to fraud. For example, someone could defraud a
particular bank, then go to another bank for a new account, and defraud them too.

Thus this bureau plays an important role and all the banks contribute data to it, which
enables them to screen their new and existing customers and keep a tab on defaulters.

A similar kind of credit bureau is being setup in India and it will be called CIBIL (Credit
Information Bureau of India limited). It is a joint venture between Housing Development
Finance Corporation Ltd. (HDFC), State Bank of India (SBI), Dun & Bradstreet Information
Services India Pvt. Ltd. (DB) and Trans Union International Inc. (TU). This system will keep a
check on defaultersͶin case there is a defaulter with one bank, the chances of that person
getting into another bank are reduced.

Over a period of time all banks are expected to become members and share data with CIBIL.

Future of banking and technology:

The future is integration as people will have less time for banking. People will want to
process more transactions on the Internet. There will be more activity in terms of
applications and services on the mobile. Geography will not be an inhibitor any more as
everything is executable on the Net.

Integration will be the next real big thing. As a customer one will want a one-stop shop that
will take care of all their needs. For instance people will want to buy their mutual funds,
redeem their mutual fund, buy insurance policies, renew policies, buy cinema tickets, railway
tickets, and numerous similar transactions through the bank. The ATM will still serve as a
cash dispensing medium, but the Internet and mobile will be very active.

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CONCLUSION:
In the coming years HDFC Bank plans to deploy connections, with built-in redundancy in the network. For
example, Madras could be connected to Bangalore and Kolkata, with all three of them being connected to
Chandivili. Therefore, if the Kolkata-Chandivili link fails, then Kolkata will use the Madras link to connect to
the Chandivili data center.

The bank is also considering alternate connectivity solutions as VSATs are relatively more expensive, and
in remote areas it is difficult to set up the required infrastructure.

The bank has tested CDMA and GSM solutionsͶespecially for ATMs as they consume very small
bandwidths.

The bank's servers have also undergone phases of development inline with the bank's expansion plans.

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BIBLIOGRAüHY:

Ô http://www.hdfcbank.com/wholesale/sme/non_funded_services/cash_management_services/cas
h_management_services_collection.htm

Ô http://www.hdfcbank.com/wholesale/corporates/large_corporates/value_added_services/cash_
management_services/cash_management_services_ecs.htm

Ô http://www.hdfcbank.com/personal/access/ccnb/ccnb.htm

Ô http://www.hdfcbank.com/personal/access/phonebanking/phonebanking.htm

Ô http://www.hdfcbank.com/personal/accounts/demat_faqs_aoo.htm

Ô http://www.scribd.com/doc/4374980/PROJECT-ON-HDFC-BANK

Ô http://www.hdfcbank.com/personal/access/netbanking/netbanking_register.htm

Ô http://www.hdfcbank.com/personal/payments/RTGS/rtgs.htm

Ô http://en.wikipedia.org/wiki/HDFC_Bank

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THANKING YOU,

Done by:

Yashvi Chitalia (10)

Prachi Mehta(36)

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