DISSERTATION REPORT

ON

Risk Involved In Internet Banking Of SBI

IN PARTIAL FULLFILLMENT FOR THE DEGREE OF

BACHELOR OF BUSINESS ADMINISTRATION

BATCH (2016-19)

SUBMITTED TO : SUBMITTED BY :

Ms Manisha Dogra Albert Ansari

Sem. 6th
 ACKNOWLEDGEMENT
This report has been made possible with the cooperation of many persons whom I wish to
express my gratitude and appreciation. I am very grateful to the people who supported me to
transform the report in the materialistic form

I am thankful to MISS MANISHA DOGRA at BCAS, Dehradun for his gratitude during my
desertation and giving me full cooperation and also valuable information and guidance, without
which it would not be possible for me to complete the manuscript.

I would also thanks librarian and staff members of BCAS , Dehradun for
providing me the required books in this field and my friends who where always there to assist me
at odd hours also.

(Albert Ansari)

BBA 6th sem

 CONTENTS

CHAPTER-1

INTRODUCTION

INTRODUCTION ABOUT THE TOPIC

INDUSTRTY PROFILE

COMPANY PROFILE

CHAPTER-2

REVIEW OF LITERATURE

CHAPTER-3

RESEARCH METHODOLOGY

CHAPTER-4

DATA ANALYSIS & INTERPRETATION

CHAPTER-5

FINDINGS & SUGGESTIONS

CONCLUSIONS

BIBLIOGRAPHY

QUESTIONAIRE
 CHAPTER-1

INTRODUCTION ABOUT
THE TOPIC
INDUSTRY PROFILE
COMPANY PROFILE
 CHAPTER-2

REVIEW OF LITERATURE
 CHAPTER-3

RESEARCH
METHODOLOGY
 CHAPTER-4
DATA ANALYSIS &
INTERPRETATION
 CHAPTER-5

FINDINGS &
SUGGESTIONS
CONCLUSION
BIBLIOGRAPHY
 Introduction
Meaning of Internet Banking
Online banking, also known as internet banking, internet banking or virtual
banking, is an electronic payment system that enables customers of a bank or other
financial institution to conduct a range of financial transactions through the
financial institution's website. The online banking system will typically connect to
or be part of the core banking system operated by a bank and is in contrast to
branch banking which was the traditional way customers accessed banking
services. Fundamentally and in mechanism, online banking, internet banking and
internet banking are the same thing.
To access a financial institution's online banking facility, a customer with internet
access would need to register with the institution for the service, and set up a
password and other credentials for customer verification. The credentials for online
banking is normally not the same as for telephone or mobile banking. Financial
institutions now routinely allocate customers numbers, whether or not customers
have indicated an intention to access their online banking facility.

nternet banking is an initiative that a lot of financial institutions have started for
making the process of banking easy for the customers. Online banking has allowed
a user to execute financial transactions through the internet. Internet banking offers
the customers with almost all the services they can avail, with just about every
service that is traditionally available through a local branch, including deposits that
are done online, using ATMs or through the mail or online bill payment.
Internet banking will not provide direct ATM access, but some of them have made
provisions for the consumers to use the ATMs at other banks and retail stores as
well. One of the biggest advantages of online banking is the convenience it
provides to the customers. Basic banking transactions like paying bills, transferring
funds between accounts that can easily be performed at times which are convenient
to the consumers. A consumer can perform their banking transactions 24 hours a
day, seven days a week. Customers can install the net banking apps to make the
process simple and easy

The purpose is to note the likelihood of continued growth of internet banking and
commerce as individual consumers purchase more and more products to access the
internet and complete both financial and consumer transactions. The growth is
commercial and banking services on-line will grow as long as the hardware
producers innovate with new faster and easy to use products. The pitfalls include
attacks by savage interventionists who attempt to steal information and prevent
end-users from employing the internet for purposes with good intentions. A
challenge is made to software and hardware producers to use modern methods and
techniques to predict where problems exist in internet banking and commerce.
Serious solutions are necessary. Internet banking is very essential in modern era.
Internet banking has a great importance in the today business world. The figure
below shows how they stand:

 Online banking: 25%

 Branches: 21%
 ATM: 17%
 Mail: 9%
 Telephone: 4%
 Mobile: 1%
 Unknown: 23%

Security Aspects Of Banking Transactions

Hebbar Raveendranath (2004) [29] described that the advancements in computing

and telecom have revolutionized the financial industry. Banks are developing
alternative channels of delivery like ATM, tele banking, remote access, internet
banking etc., Some questions that need to be answered are , how can one trust
these channels, our personal data and transactions which are driven by technology.
Are they reliable and accurate? Is there a way out to independently validate the
integrity of information? If we analyze, why the lack of trust exists, we realize that
the primary issues center on the following aspects of information security: a.
Authentication and identity of user: The act of verifying the identity of a user. How
to recognize the person dealing on the net? Can one be sure of his or her identity?
b. Confidentiality: How can one be sure that the information transmitted has not
been intercepted or viewed by any other party in transit? c. Integrity: How can one
ensure that the information sent, received or stored has not been tampered with the
modified at any time
 Types of internet banking
1. Debit Cards
A debit card is similar to an ATM card in that both allow you to deposit cash into
and withdraw money from your checking account at ATMs. The difference is that
you can use a debit card to make purchases at retail locations such as, department
stores and gas stations. Debit cards generally feature a Visa or MasterCard logo so
you can make “debit” or “credit” purchases where these cards are accepted. When
you make a “debit” purchase, you must enter your Personal Identification Number
(PIN). Whereas with a “credit” purchase, you may only have to sign the merchant
receipt.

2. Automatic Bill Payment

Automatic bill payment transfers money electronically from your account to pay
your bills automatically on the designated payment dates. Be sure to check with
your financial institution because this service may not be free with all accounts. If
you use automatic bill pay, you do not have to pay for postage or worry about late
payments. However, make sure you:
• Have enough money in your account to cover your bills when they are due, and
keep track of your account balance. A bill may be higher than anticipated (for
example, in the summer or winter when your utility bill may be higher), and you
could risk overdrawing your account if you do not have enough money to cover the
bill or transactions made after the bill is processed.
• Check your bills regularly to ensure the bill is accurate and the payment is made.
You may be responsible for late payments if the bill is not paid automatically as
anticipated.

3. Online Bill Payment

Online bill payment is different from automatic bill payment in that you can
designate when bills are paid from your account each month. There are several
ways you can pay bills online. You may be able to pay bills from your online
banking account, through a budgeting software program, and/or by creating an
online account with your service provider (electric, water, or cable/satellite
companies, etc.). If you pay bills online, you may need to: FDIC Money Smart
Check It Out – Study Aid for Adults Page 2 of 2 • Enter the payee’s name, your
account number, and other information related to the bill or company being paid. •
Enter your form of payment (bank account information) and/or payment amount. •
Click the payment option (for example, “Pay” or “Send Payment”) and/or
authorize the payment. Cell Phone (Mobile) Banking Depending on the services
offered by your financial institution and your cell phone service provider, you may
be able to conduct the following banking transactions from your cell phone: •
Receive text message alerts when your account balance reaches a certain level, or
when a certain transaction occurs. Check with your cell phone service provider
regarding fees for sending and receiving text messages if they are not covered in
your plan. • Access your online bank account to check balances, pay bills, and
transfer funds between accounts. • Locate your bank’s closest ATMs. • Pay for
purchases. As with a regular landline telephone, you can also call your bank to
conduct many transactions such as, check your account balance, determine whether
checks/transactions have cleared, and transfer money between accounts.

ADVANTAGES OF ONLINE BANKING.

According to (Gerlach,), internet banking services allow customers handle
their habitual banking transaction without visiting the bank building or
meeting any banks staff. No need to wait until 8 or 9 in the morning before
you can get answer to your bank account request or details Customers can
handle their transactions anywhere they like as long as they are connected to
the internet or where there is availability of internet. However, since most
banks offers 24 hours online banking services 7 days a week, internet
banking can allow you to view and work with your account no matter what
time or day it is. Thus, they can make payments, check balance, transfer
money etc at the comfort zone of their homes or offices. Hence online
banking has broken the limitations of the conventional way of banking thus
provides customers swiftness and convenience.

Time Saving and Money.

When you visit banks, you will discover that most banks branches are always
engaged with one activity and customers have to wait for a long time before
attended to. This is a waste of time and energy. Luckily, some banking
transactions can be handled at home or in office or anywhere that is
convenient for the customers. In other words, customers do not need to wait
for a long time in a long queue or go to their respective banks branch to carry
out their banking business. Online banking therefore helps can help
customers to save time and cost of travelling.

Ease and Efficiency

As long as they adhere to the simple steps to be followed by login in their
information and clicking the right button, customers can able to check their
accounts and know what their balance is, transfer funds and also carry out
other valuable transactions. The timely check can help customers’ overdraft
charges and also to know if the transactions they made was successful and
completed. Hence, banking online helps customers to manage their account
more easily and conveniently.

On Time Gain and Update Information

Online banking systems also provide the customers a timely updates about
both their existing and new products and services, banking news and other
vital information that the customers need to know or be updated with.
Therefore customers can benefit some relative information at the appropriate
time for them to make quick and right decisions.

Profitability
Fewer banking building will be maintained as a result of online banking and
fewer employers will be involved there is a much lower over head with
online banks. The saving they get as a result of this process allows them to
give greater interest rates on savings account and lower lending rates and
service charge.

Cost Effective
Internet banking cost less, this is because there are only few buildings to
maintain and salaries paid to employees will be reduced as well. Since they
have more to safe now and this allows them to increase their interest rate on
savings account and lower lending rate and charges Easier To Catch
Fraudulent Activities Since you have the opportunity of viewing your
account details at anytime, it is easier to know if any fraudulent activities
have gone through your account before much damage is done. Once you log
into your account, you will see immediately whether there is anything wrong
when you check your deposits and debits. If you do not make any transaction
and you see any strange details in your account, you will see it write away
and make necessary alarm to the financial institution While the internet offers
miscellaneous advantages and opportunities, it also presents various security
risks. Having this in mind, banks take wide measures to protect the
information transmitted and processed when banking online. This comprises
ensuring confidential data sent over the internet cannot be accessed on
modified by unauthorised third party. “But banks don’t normally have
influence of the systems used by the customers. The choice is entirely up to
them. More over a system connected that is a pc connected to the internet for
example will usually be used for a number of other applications as well. The
systems used by the online banking customers are therefore exposed to risks
beyond the banks control”. For this reason, the bankers cannot be liable for
them. Berlin, (2007).

Research Hypotheses

The following are the specific hypothesis that depicts the framework of this research:
H1: Perceived risk negatively influences intention towards the use of internet banking.

H2: Performance risk negatively influences intention towards the use of internet banking.

H3: Social risk negatively influences intention towards the use of internet banking.

H4: Time risk negatively influences intention towards the use of internet banking.

H5: Financial risk negatively influences intention towards the use of internet banking.

H6: Security risk negatively influences intention to use online banking.

 COMPANY PROFILE

HISTORY OF SBI

State Bank of India is an Indian multinational, Public Sector banking and financial
services company. It is a government-owned corporation with its headquarters in Mumbai,
Maharashtra and also its corporate office in Mumbai, Maharashtra. As of December 2013, it had
assets of US$388 billion and 17,000 branches, including 190 foreign offices, making it the
largest banking and financial services company in India by assets.

State Bank of India is one of the Big Four banks of India, along with Bank of Baroda, Punjab
National Bank and ICICI Bank.

The bank traces its ancestry to British India, through the Imperial Bank of India, to the founding,
in 1806, of the Bank of Calcutta, making it the oldest commercial bank in the Indian
Subcontinent. Bank of Madras merged into the other two "presidency banks" in British
India, Bank of Calcutta and Bank of Bombay, to form the Imperial Bank of India, which in turn
became the State Bank of India. Government of India owned the Imperial Bank of India in 1955,
with Reserve Bank of India (India's Central Bank) taking a 60% stake, and renamed it the State
Bank of India. In 2008, the government took over the stake held by the Reserve Bank of India.

State Bank of India is a regional banking behemoth and has 20% market share in deposits and
loans among Indian commercial banks.

The roots of the State Bank of India lie in the first decade of the 19th century, when the Bank of
Calcutta, later renamed the Bank of Bengal, was established on 2 June 1806. The Bank of Bengal
was one of three Presidency banks, the other two being the Bank of Bombay (incorporated on 15
April 1840) and the Bank of Madras (incorporated on 1 July 1843). All three Presidency banks
were incorporated as joint stock companies and were the result of royal charters. These three
banks received the exclusive right to issue paper currency till 1861 when, with the Paper
Currency Act, the right was taken over by the Government of India. The Presidency banks
amalgamated on 27 January 1921, and the re-organised banking entity took as its name Imperial
Bank of India. The Imperial Bank of India remained a joint stock company but without
Government participation.

Pursuant to the provisions of the State Bank of India Act of 1955, the Reserve Bank of India,
which is India's central bank, acquired a controlling interest in the Imperial Bank of India. On 1
July 1955, the imperial Bank of India became the State Bank of India. In 2008, the Government
of India acquired the Reserve Bank of India's stake in SBI so as to remove any conflict of
interest because the RBI is the country's banking regulatory authority.

SBI has acquired local banks in rescues. The first was the Bank of Bihar (est. 1911), which SBI
acquired in 1969, together with its 28 branches. The next year SBI acquired National Bank of
Lahore (est. 1942), which had 24 branches. Five years later, in 1975, SBI acquired Krishnaram
Baldeo Bank, which had been established in 1916 in Gwalior State, under the patronage of
Maharaja Madho Rao Scindia. The bank had been the Dukan Pichadi, a small moneylender,
owned by the Maharaja. The new bank's first manager was Jall N. Broacha, a Parsi. In 1985, SBI
acquired the Bank of Cochin in Kerala, which had 120 branches. SBI was the acquirer as its
affiliate, the State Bank of Travancore, already had an extensive network in Kerala.

There has been a proposal to merge all the associate banks into SBI to create a "mega bank" and
streamline the group's operations.

The first step towards unification occurred on 13 August 2008 when State Bank of
Saurashtra merged with SBI, reducing the number of associate state banks from seven to six.
Then on 19 June 2009 the SBI board approved the absorption of State Bank of Indore. SBI holds
98.3% in State Bank of Indore. (Individuals who held the shares prior to its takeover by the
government hold the balance of 1.7 %.)

The acquisition of State Bank of Indore added 470 branches to SBI's existing network of
branches. Also, following the acquisition, SBI's total assets will inch very close to the ₹10
trillion marks (10 billion long scales). The total assets of SBI and the State Bank of Indore stood
at ₹9,981,190 million as of March 2009. The process of merging of State Bank of Indore was
completed by April 2010, and the SBI Indore branches started functioning as SBI branches on 26
August 2010.
On October 7, 2013, Arundhati Bhattacharya became the first woman to be appoint

Associate banks

SBI now has five associate banks, down from the eight that it originally acquired in 1959. All
use the State Bank of India logo, which is a blue circle, and all use the "State Bank of" name,
followed by the regional headquarters' name:

 State Bank of Bikaner & Jaipur

 State Bank of Hyderabad
 State Bank of Mysore
 State Bank of Patiala
 State Bank of Travancore

The State Bank of India and all its associate banks are identified by the same blue keyhole logo.
The State Bank of India word mark usually has one standard typeface, but also utilises other
typefaces.

Non-banking subsidiaries
Apart from its five associate banks, SBI also has the following non-banking subsidiaries:

 SBI Capital Markets Ltd

 SBI Funds Management Pvt Ltd
 SBI Factors & Commercial Services Pvt Ltd
 SBI Cards & Payments Services Pvt. Ltd. (SBICPSL)
 SBI DFHI Ltd
 SBI Life Insurance Company Limited
 SBI General Insurance
In March 2001, SBI (with 74% of the total capital), joined with BNP Paribas (with 26% of the
remaining capital), to form a joint venture life insurance company named SBI Life Insurance
company Ltd. In 2004, SBI DFHI (Discount and Finance House of India) was founded with its
headquarters in Mumbai.

Other SBI Service Points

As of 31 March 2014: SBI has 43,515 ATMs .SBI group (including associate banks) has 53,000
plus ATMs presently. SBI has become the first bank to install an ATM at Drass in the Jammu &
Kashmir Kargil region. This was the Bank's 27,032nd ATM on 27 July 2012.

Logo and Slogan

 The logo of the State Bank of India is a blue circle with a small cut in the bottom that depicts
perfection and the small man the common man - being the center of the bank's business. The
logo came from National Institute of Design (NID), Ahmedabad and it was inspired
by Kankaria Lake, Ahmedabad.
 Slogans: "PURE BANKING, NOTHING ELSE", "WITH YOU - ALL THE WAY", "A
BANK OF THE COMMON MAN", "THE BANKER TO EVERY INDIAN", "THE
NATION BANKS ON US"

Listings and Shareholding

As on 31 March 2014, Government of India held around 58.59% equity shares in SBI. Life
Insurance Corporation of India is the largest non-promoter shareholder in the company with
14.99% shareholding.
 Literature review
The literature available to the researcher on the application of Information technology in Indian
banks are classified according to the related topics as mentioned be

Uppal & Chawla ,(2016)

About the customer perceptions about internet

b a n k i n g s e r v i c e s i n I n d i a . T h e r e s e a r c h methodology included
survey of 1200 respondents in Ludhiana and respondents included public ,
private and foreign bank sector .The present study investigated the
customer perceptions regarding the necessity of internet banking
services , bank frauds , future of e - b a n k i n g , p r e f e r e n c e s o f
banking customers regarding banks , comparative study
o f banking services in various groups of banks, preferences regarding the use of
e-channels and the problems faced by internet banking customers .The
study depicted that customers of all bank groups are interested in internet banking
services but at the same they face problems like inadequate knowledge , poor
knowledge , lack of infrastructure and difficulty they face in opening an account
.The paper thus framed suitable strategies like customer educatio n
,seminars, proper meetings , proper installation of ATM machines ,proper
networking and infrastructure facilities etc .

El-Sherbini et al. (2017)

Investigated through his study on,”
Bank customer Behavior perspectives towards internet banking services in Kuwait
“the customers perspectivesof usage patterns and problems risingon its utilization.
The paper discussed the strategic implications of the research findings.Empirical
data were gathered from bank customers in Kuwait to achieve the
researchobjectives. All bank customers in Kuwait were considered as
population of researchinterest. The results showed the perceived
importance of internet banking services bycustomers, current and potential
use of IB services in Kuwait and problems perceived by b a n k c u s t o m e r s i n
using IB. The research paper main hypothesis tested that top
f i v e services that were considered relative important in Kuwait banks were
"Review internet banking, their perceived importance for it,
account b a l a n c e " , " O b t a i n d e t a i l e d t r a n s a c t i o n s h i s t o r i e s , " O p e n
a c c o u n t s " , P a y b i l l s " a n d transfer funds between own accounts.
W.S. Saraf Committee [1994] In 1994, the Governor, Reserve bank of India had
appointed a committee on technology issues under the chairmanship of W. S.
Saraf. The committee looked into technological issues related to the payment
system and to make recommendations for widening the use of modern technology
in the banking industry. The Saraf committee recommended setting up institutions
for electronic funds transfer system in India. The committee also reviewed the
telecommunication system like use of BANKNET and optimum utilization of
SWIFT by the banks in India.

Shere Committee [1995] In 1995, RBI formed a committee under the

chairmanship of K. S. Shere, to study all aspects relating to electronic funds
transfer and propose appropriate legislation. The Shere committee had
recommended framing of RBI (EFT system) regulations under section 58 of the
Reserve bank of India Act 1934 (RBI Act.), amendments to the RBI act and to the
bankers book evidence act, 1891 as short term measures and enacting of a few new
acts such as EFT act, the computer misuse and data protection act etc. as long term
measures

. Narasimhan Committee [1998] In order to examine the various issues related to

the technology up gradation in the banking sector, the Reserve Bank of India
appointed Narasimhan committee in September 1998. The committee consists of
representatives from the Government, Reserve Bank of India, banks and academic
institutions associated with the information technology. The committee dealt with
the issues on technology up gradation and observed that the most of the technology
that could be considered suitable for India in some form or the other has been
introduced in some diluted form or as a pilot project, but the desired success has
not been achieved because of the reasons inter-alia lack of clarity and certainty on
legal issues. The committee also suggested implementation of the
Users of Internet Banking .Besides this ,exploration of effects of age , income and
in come were also seen .

Objectives

a) To study the internet banking facilities offered by the banks to its customers.

b) To study as to how much internet banking has penetrated in the minds of the
customers.

c) To explore the types of risks customer faces while using internet banking
services.

d) To study the benefits that is provided to the individual under internet banking
services.

The need for addressing the following issues was also emphasized:

a. Encryption on Public Switching Telephone Network (PSTN) lines

b. Admission of electronic files as evidence

c. Treating Electronic Funds Transfers on par with crossed cheques / drafts for

d. Purposes of Income Tax etc

e. Electronic Record keeping

f. Provide data protection

g. Implementation of digital signatures

h. Clarification on payment finality in case of EFT

INFORMATION TECHNOLOGY (IT)/COMPUTER EDUCATION

With a view to dissipating Information Technology education to the remotest areas of our
country amongst the downtrodden classes, requests received for donations from NGOs /
Institutions / schools, both government and private (whether aided or unaided) / reputed
universities or technical institutes to acquire hardware (computers and other accessories) and/or
software may be considered provided the Bank is satisfied that the purpose is to spread IT
education amongst the needy.

Preference to be given to NGOs / institutions undertaking projects in under developed and

backward regions of the country, particularly tribal areas which are predominantly inhabited by
downtrodden and under privileged people.

RESEARCH METHODOLOGY
Research methodology means the method that is used for research on a specific topic. In this
research methodology, the basic trends will be taken into account. The basic purpose of
including this chapter is to assess the methodology that is used for research and the reason
for choosing that specific methodology in respect to how it helps and leads to a conclusion.

3.1 Research Philosophy

The methods used for a research include pondering over the in a theoretical way so that the
research approach can be applied, Mason stated (2002). The main purpose of explaining
research philosophy here is to get to know of as many research methods and information as
possible so that research can be made by gathering data about the Corporate Social
Responsibility of the organizations and how they actually practice it.

There are also techniques defined used for data acquisition for the purpose of research in case
the data could not be obtained. Saunders et al., (2007) mentions that research philosophy can
be categorized as is shown in the diagram below:

The major approaches are as follows:

. Realist Approach: The realistic approach states that all the data and information
collected are purely related to true beliefs
. Positivist Approach: This approach includes the hard facts and figures about the
research
. Interpretive: It includes getting information about the real time experiences of the
people included in the research

In this research paper, realist approach has been used. Information and data were collected
based on true beliefs.

3.2 Research Design

Research design gives the direction or framework how to carry out or conducting the research
project so that the desired result can be obtained. It is also called the overall research plan.
The basic purpose of this study is to know how do firms use Internet Banking to build brand
equity .

3.3 Units of analysis

Unit of analysis in this research is the case studies of four multinational companies SBI

3.4 Sample

In this study, sample consists of 4 multinational companies who are performing in different
parts of the world. This sample is based on non probability sample technique because the
sample is selected on the basis of convenience and by keeping in the mind the main issue,
variables on which this study is focusing environment, labor and local community and the
research questions. A sample of this study is representative because all the 4 companies deal
in different part of their world. It is not possible that all of them perform the same for us.
Some of them will be good, others will be moderate and few of them will be weak in this
scenario.
3.6 Research Approach

Inductive research approach will be carried out in this research and a result of provisional and
belief is a theory created by this research. The important inspection and assessment of the
specific process is done. In order to reach and find out to the areas of that general and basic
process and practice is called inductive thought. In this research, qualitative inductive
approach is being used.

This study focus on Internet Banking partlarly MNCs and its effect on brand equity for this
research
case study is the most appropriate research strategy because the case study look a research
question in its real-life context and it include in-depth examination of few insistence. In this
study multi case study approach will be used.

Internet Banking is an important issue these days. This study will check that how a firm use
Internet Banking and how
it affect company.s brand equity. Does it effect in a positive manner or negative manner. In
order to check all these issues case study strategy are the most appropriate choice.

3.8 Data Collection

3.8.1 Secondary Data

Secondary data collection method is the one in which the data is already available and is not
the firsthand information. For this particular research, secondary data were used. This data
can both be used in small or large scaled surveys. The reliability of the data can be questioned
in the fact that the figures and facts were not collected by the researcher directly through
Primary Research, which is the mail disadvantage of conducting research on secondary data
available already. The data includes in this research was collected from different company
reports, websites, articles, company blogs, pressure groups. reports and the like.
 DATA ANALYSIS AND INTERPRETAITON
1. About respondent

AGE NO. OF RESPONDENTS

Below 18 4
19-30 46
31-40 17
41 and above 33

(a) Age

50
45
40
35
30
years

25
20
15
10
5
0
Below 18 19-30 31-40 41 and above
age

NO. OF RESPONDENTS
2.

OCCUPATION NO OF RESPONDENTS
Student 33
Employee 40
Business 22
Housewife 5

45
40
no. of respondent

35
30
25
20
15
10
5
0
Student Employee Business Housewife
occupation

NO OF RESPONDENTS
3. ) Monthly income

MONTHLY INCOME NO. OF RESPONDENT

Less than 10,000 11
10,000-20,000 53
20,000-30,000 27
30,000-40,000 9

9% 11%

27%

53%

Les s than 10,000 10,000-20,000 20,000-30,000 30,000-40,000

4. . Qualification

QUALIFICATION NO. OF RESPONDENTS

Under-graduate 42
Graduate 37
Post-graduate 14
Professional 7

7%

14%

42%

37%

Under-graduate Graduate Post-graduate Professional

 
5. Types of account maintained IN SBI AT INTERNET BANKING

Accounts SBI ICICI

Saving 54 31
Current 6 8
Fixed deposit 9 6
Any other 2 2
Net banking 70 30

Types of account maintained

60
50
40
no. of
30
respond
20
ent
10
0
Saving Current Fixed Any other
deposit
Types of account

SBI ICICI
6. Frequency of your visit to bank

SBI ICICI
Daily 4 3
Weekly 8 9
Monthly 40 21
Yearly 8 7

Frequency of your visit ot bank

50
no. of respondents

40

30

20

10

0
Daily Weekly Monthly Yearly
time

SBI ICICI
7). Presence of enquiry counter

SBI INTERNET BANKING

YES 50 39
NO 10 1

Presence of enquiry counter

60
50
no. of respondent

50
39
40
30
20
10
10 1
0
SBI ICICI
name of the bank
SBI
YES NO

good relationship with the customers.

 Waves In Banking Technology

As per the Reports of RBI [8] [9], the first wave in banking technology began with the use of
Advanced Ledger Posting Machines (ALPM) in the 1980s. The RBI advised all the banks to go
in for huge computerization at the branch level. There were two options: automate the front
office or the back office. Many banks opted for automating the front office in the first phase.
Whereas banks like State Bank of India also concentrated on the back office automation at the
branch level. The Second wave of development was in Total Branch Automation (TBA) which
came in late 1980s. This automated both the front-end and back-end operations within the same
branch. TBA comprised of total automation of a particular branch with its own database. In the
third wave, the new private sector banks entered into the field of automation. These banks opted
for different models of having a single centralized database instead of having multiple databases
for all their branches. This was possible due to the availability of good network infrastructure.
Earlier, banks were not confident of running the whole operation through a single data center.
However, when a couple of private sector banks showed that it can be done efficiently, other
banks began to show interest and they also began consolidating their databases into a single
database. The banks followed up on this move by choosing suitable application software that
would support centralized operations. The fourth wave started with the evolution of the ATM
delivery channel. This was the first stage of empowerment of the customer for his own
transactions. The second stage was the Suvidha experiment in Bangalore. This showed the power
of technology and how the reach can be increased amazingly at a great pace. Seeing these, all the
banks started revamping their retail delivery channels. Their core focus became increasing the
number of customers they can service at a lower cost. The main channels for these were internet
banking and mobile banking. After this, came the alliances for payment through various other
gateways. The third important development happening now is the realtime gross settlement
system of the RBI. Once this was in place, transactions between banks could be done through the
settlement system, online, electronically thereby, ensuring faster collection. The process of
computerization had started from Back Office Application, after that Total Branch Automation
and nowadays it is the period of implementation of Core Banking Solutions (CBS). A key trend
in the last couple of years has been the focus on core banking systems. With the implementation
of core banking systems across the banks, the usage level of IT for customer management has
increased. Core banking systems have enabled banks to launch new products and services
targeting specific customer segments after understanding their banking and investment
requirements. ATM, internet banking and mobile banking have improved customer convenience
by providing anywhere any time banking services. The utility bill presenting and payment has
helped customers to pay their bills online at the click of a button. Electronic clearing system and
electronic funds transfer have facilitated faster funds movement and settlement for the customers
of different banks and different centers. The electronic data interchange and cash management
service facilities have enabled better funds management for the customer. Very few banks
offered customers the ability to access their accounts and perform at least simple money
transactions using internet banking. Advancements in information technology have made it
possible for the banks to use the internet as a delivery channel for banking services.
Technological developments have introduced tremendous changes in the ability of financial and
non financial firms to efficiently collect, store, use and sell information about their customers.
Balasubramanya S.(2002) [10] in his study analyzed that the automation in the banking sector
has come a long way starting with the Rangarajan Committee report on the banking sector
reforms during the eighties, followed by reports of the Narasimhan Committee in the nineties.
With over 65,000 branches of the banks (public, private and the cooperative sector) in the
country, the author found that the percentage of branches covered by automation was very low.
Though many banks had claimed that more than 70% business has been automated due to the
enforcement of RBI guidelines, in reality it was much lower, as many functions in each branch
were still done manually or with partial automation. Hence, there was a significant amount of
automation work to be achieved in the banking sector.
 FINDINGS
IT Framework For Indian Banking Sector
IT planning is an ongoing effort intended to match the bank’s technology capabilities with its changing
strategic objectives. It is necessary for a bank to identify technology gaps and develop a plan that supports
the bank’s long/medium term-strategic goals in order to bridge the gaps. It is imperative for banks to have
a clearly defined technology planning process that is based on a well founded technology action plan for
the following reasons:

a. Increasing competition, new products and changing distribution channels.

b. Banks currently spend a huge amount of their budget annually on technology. Such Investments will
only continue to escalate.

c. Effective technology management requires an underlying technology plan. Without it, Scarce
resources are likely to be wasted and opportunities missed.

The Risks Involved In Internet banking

Without a doubt, the technological growth has considerably affected the profile of Bank risks
and financial institution formation more generally. Some of these risks are increased, while
others on the contrary are possible to be decreased. In any case, the growth of electronic banking
has created a new basis with regard to the degree of exposure to the risk and therefore
consequently the need of not only a differentiated regulating frame, but also mechanisms of
monitoring to be formed, which has already begun to be shaped in the fields of Basle Committee
ofBanking Supervision. The degree of exposing to risks, which are related to the electronic
banking, depends mainly on the degree of adopting new alternative electronic means of
distribution of services and products. The business risk is the risk of not being able to achieve the
business targets due to inappropriate strategies, inadequate resources or changes in the economic
or competitive environment. Various banking foundations comprehend that online exchange
essentially improves information security hazards with practically zero consideration being paid
towards the result including further internet banking related exchange risks. Controls including
the supervision of dangers are creating at a moderate pace when contrasted with the force at
which heaps of associations are developing without the combination of risk management
standards in their business game plans. Online money related exchanges don't make new danger
bunches, yet to a specific degree attracts thoughtfulness regarding the dangers that few financial
institution faces. These dangers, which have basic attributes, are clarified next:
 Transactional Risks:
Depicted as the potential danger to savings, money and investments coming up from the scam,
carelessness and the inadequacy to maintain foreseen administration force. A hoisted force of
risk may exist with online banking services, because of the need to have refined inside controls
and consistent openness. A decent number of tools in monetary exchanges are footed on creative
foundations that associate with legacy systems utilizing multifaceted interfaces, in so doing
expanding the inaccuracy liable to happen while completing an exchange. The requirement for
disproving of an exchange and the capacity to ensure information ought not to be ignored. The
existence of third parties, adds to risks connected with money related exchanges, giving that no
aggregate control over the third party is practiced by the organization. There is an eminent
danger of exchange errors even within the sight of framework connections and nonappearance of
perfect strategies between the bank and the third-party sources.

Compliance Risk:
Depicted as the potential threat to savings or investment resulting because of the failure to adjust
to, or encroachments of rules and ethical values. Dangers connected with being consistent may
achieve diminished status, tactile money related fatalities, and shortened business opportunities.
Banks ought to warily grasp and read between the lines displayed laws seeing that they relate to
internet money saving and assurance consistency with different controls like regional banking.
The risk is fundamentally expanded when the money related exchange, client or the bank is
situated in additional than one nation furthermore by opposing directions, charge practices and
treatment commitments athwart different locales. The need to keep up customer data privately
and ask about customers' authorization before giving out the data builds the danger of being
consistent. Banks ought to be viewed as solid caretakers of monetary information since with
regards to information privacy, clients are very uneasy

Reputation Risk:
Portrayed as the danger to income, savings and investments brought about by apathetic general
visibility. Financial body's status could get marked through online budgetary exchanges did
inadequately, (for example, confined availability, or decreased response). Dreadful performance
prospects are always associated with online channels because of the absence of endurance from
clients who pay less attention to the difficulty being faced by the financial institutions.
 Information security Risk:
Depicted as the danger to income, savings and investments surfacing because of unauthentic
information protection strategies, therefore uncovering the association to unethical practices and
Denial-of-Service (DoS) thefts. The danger is consequential because of the quick pace of the
innovation, with the truth that the online channels are easily available and accessible. Banks
provides the valuable information to the customers through website for example (United Bank of
India) United Online is the name of Internet Banking service of United Bank of India. The
service is highly secure as it uses 256 bit SSL encryption for the data transmission through
internet. With Internet Banking, your bank travels with you around the world. You have on-line,
real-time access. We call it 24 X 7 X 365 banking. United Online services are meant to serve the
need of the customers of Bank.

Eligibility

The customers of any branch of Bank having savings or current account are eligible to avail e
banking services.

Services
Bank is offering a huge range of services through this 24x7x365 channel to the users, which are
detailed here under:

1. Home

The home page of United Online greets the user and also gives him the following information -
a. Summary of all the accounts of the user. b. The date and time of his last log-in to help him
ascertain that there is no unauthorized access to his accounts and personal information. c. The no
of days in which his log-in and transaction passwords are likely to expire.

2. My Accounts

The option gives the summary of the operative type, term deposit type and also Loan type of
accounts of a user. It also gives individual details of such accounts with balances. The user can
have the statement of any of his accounts for any period starting from the date of migration of his
branch to CBS. The user can print or save the statements as well.
 3 Fund Transfers

Under this option the user gets the facility to transfer funds between different accounts. The
options available to him are as under:

a. Transfer of Funds between self accounts

b. Transfer of funds from self account to any third party account within any branch of bank- In
this process the user has to enter the 13 digit account number of the third party account. The user
may verify the name of the third party account online. After the confirmation the user may
proceed with transferring of funds. Online transfers get executed immediately. User may
schedule a transfer for a future date. User may query into the status and

history of fund transfers .The user always has the option to terminate a request for transfer which
is not execute

c. Inter Bank fund transfer (NEFT/RTGS) – - In this process the user has to enter the required
details of the third party account and save the payee details. The user needs to enter the required
details. After the confirmation the user may proceed with transferring of funds. Online fund
transfers get executed as per the guidelines of RBI. User may schedule a transfer for a future
date. User may query into the status and history of fund transfers .The user always has the option
to terminate a request for transfer which is not executed.

Tax Payment
Any United Online user may pay the following taxes online

I .Direct Tax (CBDT) - https://onlineservices.tin.nsdl.com/etaxnew/tdsnon tds.jsp

Indirect Tax (CBEC) - https://cbec.nsdl.com/EST/InputPageForEPaymen tServlet
W.B Commercial Tax - https://ebank.unitedbankofindia.com/

iv. Maharashtra Sales Tax - http://www.mahavat.gov.in/

v. User may generate duplicate receipts of the taxes paid using this service.

Alerts
User may subscribe to the following SMS alerts online for his accounts

a) Account Debit/Credit Alerts : Operative Accounts

b) End of the day balance Operative Accounts

c) Login Password Expiry No of Days

d) Salary Credited Operative Accounts

e) Salary Credited Operative Accounts

Mails
Every user of United Online service is linked to a Relationship Manager who looks into the
mails and requests made by the user. For this purpose the user is provided with a mail option,
which he can use for communicating with the Relationship Manager. The mail option enables
him to:

a. Compose and send mails to his RM

b. Receive mails from the RM

c. Create different folders for storing mails

d. Mail alert box for receiving alert mails from Bank

e. Storing of sent items f. Purging of old mails.

7. Profile & Password

This option enables the user to customize the internet banking options as under

: a. Changing of passwords –Login, transaction or SMS passwords

b. Changing of own profile by nicknaming accounts

c. Changing of date format viz. dd/mm/yy to mm/dd/yyyy and like.

d. Changing of amount format from lakhs to millions

. e. Changing address, phone no, primary accounts etc.

Activity
The option enables the user to query on his own activities as under:

History of activities under each category like fund transfers done, bill payments done etc. The
queries are also available for non-financial type of activities like log-on done in the past,
added/modified payees, file uploads done etc
 Conclusion
Internet banking empowers individuals to manage their accounts and other banking
activities by means of the web at their homes and other private spots at any chosen
time without the need to physically be in a bank. Internet Banking risks ought to be
recognized and controlled by banks in a mindful methodology in view of the
simple characteristics and issues of web transactions or internet based transactions.
Available risk management standards stay suitable for online money transactions
and such esteem recommendations should be customized, adjusted and, maybe
reached out to manage the exact risk formed by the traits of web-based money
exchanges.

Internet banking or internet banking does not make novel danger bunches, but
rather to a certain degree attracts perceived risks that few financial foundations
faces and risk management controls have not created at fundamentally the same as
force and heaps of organizations, especially the less imperative ones, have been
weakened in their drive to coordinate online money transactions risk management
inside their present risk management plans. The dangers ought to be founded on
the class of customer, the association's value-based capacities, the significance and
worth of the amassed information to the association and customer, the
straightforwardness of utilizing the plan and with degree and extent of exchanges.
It is broadly suggested that banks that practices online banking services should
clarify the authenticity of transactions and convey it to their customers.
 Bibliography
[1] Internet banking in India by Dr. A.K. Mishra, IIM Lucknow

[2] Dynamics of Banking Technology Adoption:An Application to Internet Banking by Yoonhee Tina
Chang, Department of Economics, University of Warwick, December 2016

[3] Journal of Internet Banking and Commerce, August 2017, vol. 16, no.2
(http://www.arraydev.com/commerce/jibc/)

[4] A Study on Customer Perception Towards Internet Banking: Identifying Major Contributing Factors
by Divya Singhal and V. Padhmanabhan

[5] The adoption of virtual banking: an empirical study by Shaoyi Liao!,*, Yuan Pu Shao!, Huaiqing
Wang!, Ada Chen .

[6] http://muse.jhu.edu/journals/eservice_journal/v001/ 1.1nath.pdf [7]

http://www.arraydev.com/commerce/JIBC/2005- 08/KassimTry.asp [8]
http://goliath.ecnext.com/coms2/gi_0199- 2056596/Challenges-of-the-E-banking.html [9]
http://muse.jhu.edu/journals/eservice_journal/v001/ 1.1nath.pdf [10]
http://www.cfo.com/article.cfm/14570156 [11]Technology Innovations in Bank of Africa (Uganda): An
evaluation of customer’s perception by Musa Moya, Rehema Nanvuma and Akodo Robinah
 QUESTIONNAIRE

Question Yes No N/A Comments

A. Risk Management

A.1 Does your institution have a

comprehensive risk management
framework in place to continuously:
a. Identify threats and vulnerabilities?
b. Evaluate internal controls to control
any risk exposure?
c. Monitor risks arising from its e-banking
activities?
A.2 Does the supervisory board and senior
management (or a designated committee)
has oversight over the risk management
process?
A.3 Does your institution has adequate staff
with the necessary knowledge and skills to
deal with the technical complexities of e-
banking?
A.4 Are formal information security
policies and procedures available which
include e-banking activities?
A.5 Are the risk management and e-banking
activities audited (internally or externally) at
least every three years?
Please indicate in the comments column when was the
last time it was audited.