© 2018 IJRAR October 2018, Volume 5, Issue 4 www.ijrar.

org (E-ISSN 2348-1269, P- ISSN 2349-5138)

MOBILE BANKING: A STUDY ON NATIONAL

MISSION ON FINANCIAL INCLUSION AFTER
DEMONETISATION.
S.GOWTHAM (BU160712), UG Student, Department of BBA, Sacred Heart College (Autonomous), Tirupattur.
DR.A.AROCKIA MARY, Research Supervisor & Assistant Professor, Department of Commerce and Management studies.,
Sacred Heart College (Autonomous), Tirupattur.

ABSTRACT
To achieve “National Mission on Financial Inclusion”- Launched in August, 2014 (i.e.,
PradhanMantri Jan-DhanYojana), banking service made easily available to the entire population without
any discrimination. Modern technology (i.e., Mobile technology/Smartphones) plays a major role in
Financial Inclusion of the country. The revolution in the mobile phones transforms every citizen of our
country to move forward towards cashless economy after demonetisations. Moreover, with the advent of
smartphones almost all salaried people and business men are familiar with banking transaction through
mobile banking. This paper made an attempt in highlighting the reason for using and not using mobile
banking and analyse the usage of mobile banking transactions. The researcher analyses the data by using
descriptive and inferential statistical tools to draw findings. Based on the findings, the researcher made
valuable suggestion and conclusion.

Key words: Financial Inclusion, Mobile Banking, Demonetisation.

INTRODUCTION
Mobile banking (M-Banking) has emerged as a popular mode of banking in many developed and
developing countries. In India, there are approximately 13 million mobile banking users. It enables us to do
banking transaction anywhere anytime. Customers don’t need a computer terminal to access their bank
accounts .Among public banks, union bank of India was first to introduce mobile banking. Today many
commercial banks have launched mobile banking using information technology and now they can reach out
to customers and provide them with not only general information about its services but also the opportunity
of performing interactive retail banking transaction anywhere anytime. Mobile banking is a revolution that
is driven by worlds one of the fastest growing sectors.

In India commercial banking industry has involved various financial innovations, which means shifting their
focus from tradition banking to technology banking to satisfy the needs of their customers and to get
competitive edge. Mobile banking is one of such innovations. Mobile banking is defined as doing various

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banking transactions like fund transfer, balance enquiry, investments, paying bills through the use of mobile
phones. It helps the banks to communicate with their clients frequently and generate revenue in terms of
increased customer’s transaction through mobile banking.

REVIEW OF LITERATURE

Dr.Paruldeshwal (Dec 2015)1 found that banks should create awareness about the mobile banking
services through Advertisements, Pamphlets, Demo fares, Campaigning, etc., to create interest among
customers. Trust is more concern so, without security and privacy users will not use for financial
transactions. They focused on usefulness of system, trust building and cost reduction.Pernasharmabamoriya
(2011)2 found that majority customers perceived ‘privacy and security’ a critical issue. The bank should
educate customer to raise awareness regarding mobile banking.Amolabhatt and shahirbhatt (2016)3 found
that mobile banking used to transfer information and communication only to the customer avail the banking
services from the bank.Nidhi Singh and NeenaSingh(2016)4 found that mobile services became a
prospective alternative for the banking sector. This growth is supported by literature as well. The banking
transaction takes anytime and anywhere. The M-Banking provided through technology a substitute to deal
money without using cash.

OBJECTIVES

 To identify the reason for using mobile banking.

 To evaluate the reason for not using mobile banking.
 To find the relationship between demographic factors and doing banking transaction through mobile
banking.

HYPOTHESES

 There is no relationship between gender and doing banking transaction through mobile banking.
 There is no significant relationship between age and doing banking transaction through mobile
banking.
 There is no relationship between occupation and doing banking transaction through mobile banking.
 There is no relationship between income and doing banking transaction through mobile banking.

METHODOLOGY

A questionnaire was adopted and issued to the public who is in Mathur and Tirupattur. There was
100 filled in questionnaire with complete response included in the study. The researcher used convenient
sampling method to collect data with the help of spss v.20 the researcher analyzed the data. The researcher
used different descriptive and inferential statistical tools like frequencies, mean, SD, “t”- test, F- test, cross
tables. The researcher adopted jasmine guptas (2018) questionnaire to test it to the rural area.

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LIMITATION

The researcher felt very difficult to collect data from public because most of them were below
degree standard they do not know about the mobile banking. But most of them have mobile but they do not
know how to use it. The study was limited to Mathur and Tirupattur. Due to lack of time the researcher
collected only 100 data

DATA ANALYSIS

I. DEMOGRAPHIC PROFILE

Table - 1
PARTICULARS COMPONENTS %
Below 25 12
25 to 30 40
AGE 30 to 35 34
35 to 40 10
Above 40 04
Total 100
Male 88
GENDER Female 12
Total 100
UG 52
EDUCATIONAL PG 18
QUALIFICATION PG with M.Phil 22
Diploma 08
Total 100
Retail shop 32
OCCUPATION Professors 30
Company employees 38
Total 100
Upto Rs.10,000 16
Rs.10,000 to Rs.15,000 42
INCOME Rs.15,000 to Rs.20,000 32
Above Rs.20,000 10
Total 100
Yes 88
USING No 12
SMARTPHONE Total 100
Yes 46
USING MOBILE No 54
BANKING Total 100

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It is evident from the above table, 34% of the respondents belong to the age group of 30 to 35 years
and 88% of the respondents were male. More than half of the respondents i.e., 52% are completed up to UG
degree, 38% of the respondents were company employees; 42% of the respondents earn Rs. 10,000 to Rs.
15,000 as their monthly income. 88% of the respondents use mobile phones and only 46% of them use
mobile banking.

II. Reason for using mobile banking

Table - 2

Reason for using mobile banking Mean SD

To save time 0.46 0.501
To perform banking transaction 0.42 0.496
To transfer money 0.42 0.496
To save travel time 0.40 0.492
To do transaction during non- 0.38 0.488
banking hours
Cost effective 0.14 0.349
To impress people 0.10 0.302

The researcher used mean and standard deviation to know the reason for using mobile banking. The
respondents use mobile banking to save time because it secures the highest mean score of 0.46. Next to this,
to perform banking transaction (mean=0.42); to transfer money (mean=0.42); and to save travel time
(mean=0.40). But the least mean score i.e., 0.10 was shown to impress people.

III. Reason for not using mobile banking

Table - 3

Reason for not using mobile banking MEAN SD

Small screen 0.80 0.273
Do not know how to use 0.42 0.496
Security issues 0.38 0.488
Fear of misuse 0.32 0.469
No need 0.30 0.461
Difficult to use 0.26 0.441
No trust 0.26 0.441
Do not have smartphone 0.22 0.416

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Low internet connection 0.10 0.302

Requires lot of time 0.10 0.302
Cannot afford internet 0.10 0.302

From the above table, it clearly shows that, the mean and standard deviation values to find out the
reason for not using mobile banking. The highest mean score i.e., 0.80 given to small screen; followed to
that do not know how to use (mean=0.42); security issues (mean=0.38); fear of misuse of information
(0.32);no need (mean=0.30).but the least score secured by ‘Cannot afford internet facilities’ ‘Requires lot of
time’ and ‘Low internet connectivity’ (mean=0.10). Do not have smartphone (mean=0.22); No trust and
difficult to use (mean=0.26)

IV. TESTING OF HYPOTHESES

1. H0: There is no relationship between gender and doing banking transactionthrough mobile
banking.

Table - 4

Gender t-test for equality of mean

Frequency Mean SD t df Sig.(2 tailed)
Male 88 1.41 0.721 -.404 98 0.687
Female 12 1.50 0.798 P>0.05H0: Accepted

The researcher used t-test, to find the relationship between gender and mobile banking transaction
through mobile banking. The value of P>0.05 (i.e., 0.687), null hypothesis accepted. So, there is no
significant relationship between gender and doing banking transaction through mobile banking.

2. H0: There is no significant relationship between age and doing banking transaction
through mobile banking.

Table - 5

Age Sum of df Mean f sig

squares square
Between the group 0.087 1 0.087 0.164 0.687
P>0.05 H0: Accepted
Within the group 52.273 98 0.533

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The researcher used ‘f’ test to find out the relationship between age and doing banking transaction
through mobile banking.The value of P>0.05 i.e., 0.687, the null hypothesis is accepted. So, it is concluded
that these is no relationship between age and doing banking transaction through mobile banking.

3. H0: There is no relationship between occupation and doing banking transaction through
mobile banking.

Table - 6

Occupation Level of doing banking transaction through

mobile banking.
Low Moderate High Total
Retail shop 30 02 0 32
Professors 20 02 8 30
Company employee 22 10 6 38
Total 72 14 14 100

H0: Null hypothesis

H1: Alternative hypothesis

H0:there is no relationship between occupation and doing banking transaction through mobile banking

H1: There is relationship between occupation and doing banking transaction through mobile banking

Table - 7
Chi-square test
Value df Asymp.sig
(2-tailed)
Pearson chi-square 17.918 4 0.001
P<0.05H0: Not Accepted

The researcher used chi-square test to find out the no relationship between occupation and doing
banking transaction through mobile banking.P<0.05, (i.e., 0.001), therefore null hypothesis rejected. Hence
alternative hypothesis accepted. So, there is a no relationship between occupation and doing banking
transaction through mobile banking.

4. H0: There is no relationship between income and doing banking transaction through
mobile.

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Table - 1

Sum of square Df Mean square F Sig

Between group 0.180 3 0.60 0.111 0.954
Within group P>0.05
52.180 96 0.544

The researcher used ‘F’ test to find out the relationship between income and doing banking
transaction through mobile. The value of P>0.05 i.e., 0.954, the null hypothesis accepted. It is concluded
that, there is no relationship between income and doing banking transaction through mobile.

CONCLUSION

After seeing the result the researcher would conclude that, there is a good signs, as any financial
inclusion initiative based on mobile phone has high potential to get adopted and succeed. It is predicted that
future is in the hands of MMO”s (i.e., Mobile money operators) but not on banks, because of the number of
smartphone holders are increasing every day. Hence, banks should conduct some awareness programs in
rural sides to make transact through mobile to contribute towards the National Mission on financial
inclusion after demonetization.

FOR FURTHER RESEARCH,

The researcher suggested that, to meet the need of future generation the study need to concentrate on
youngsters to know about their awareness and usage of m-banking.

REFERENCES

1. Dr.Parul deshwal, ‘ A study of mobile banking in India’, International journal of advanced

research in IT and EngineeringVol-4,No.12,Dec.2015.ISSN;2278-6244.Impact factor;5.418
2. Perna sharma bamoriya and preeti singh, ‘Issues and challenges in mobile banking in India: A
customers perspective’, Vol-2,No.2,2011.IISN 2222-1697(Paper),IISN 2222-2847(Online)
3. Amola bhattand Shahir bhatt ‘Factors affecting customer’s adoption of mobile banking and
commerce. April 2016, vol 21, No.1.
4. Nidhi Sinha and Neera Sinha, ‘A study on mobile banking and its impact on customers banking
transaction’, A comparative analysis of public and private sector banks in India’FFIB Business
review,vol-5,Issues 2,april-june 2016.
5. Jasmine gupta, the IUP journal of bank management vol.XVII.No. 2, 2018

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