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Submitted in partial fulfillment of


In the

Panipat Institute of Engineering And Technology


Supervised by: Submitted by:

MR. ASHISH CHAWLA Jigyasa Oberai

(Branch Manager) Reg. no - 17063


Particulars Page No.

 Declaration (i)

 Acknowledgement (ii)

 Executive summary (iii)

Introduction:- 1-32

 Introduction to industry (1-12)

 Introduction to company (13-22)

 Introduction to topic (23-33)

2. Literature review 34-37

3. Research methodology 38-42

4. Data Analysis and Interpretation 43-54

5. Findings ,Suggestions and Conclusion 55-60

Bibliography (iv-v)

Annexure (vi-viii)

Serial Table Title Page No.

no. No
1 1.2.1 Awards and achievements of hdfc bank 19-20

2 4.1.1 Age 44

3 4.1.2 Gender 45

4 4.1.3 Occupation 46

5 4.2.1 Availing digital banking services 47

6 4.2.2 Familiarity with the digital banking 48

7 4.2.3 Reasons of using the digital services of 49
8 4.2.4 Quantum of visit in the bank from past 6 50
9 4.2.5 Time spent by them during their visit in 51
the bank
10 4.2.6 Recent service availed by the customer in 52
11 4.2.7 Most frequently usable channel for 53
availing the banking services
12 4.2.8 Degree of benefits availed through 54
Internet Banking in paying tax


no. NO. NO.
1 1.1.1 Features of bank 4
2 1.2.8 List Of Competitors 21
3 1.2.9 Board Of Directors 22
4 3.1 Collection of data 39
5 4.1.1 Age 44
6 4.1.2 Gender 45
7 4.1.3 Occupation 46
8 4.2.1 Availing digital banking services 47
9 4.2.2 Familiarity with the digital 48
banking services
10 4.2.3 Reasons of using the digital 49
services of banks
11 4.2.4 Quantum of visit in the bank from 50
past 6 months
12 4.2.5 Time spent by them during their 51
visit in the bank
13 4.2.6 Recent service availed by the 52
customer in bank
14 4.2.7 Most frequently usable channel for 53
availing the banking services
15 4.2.8 Degree of benefits availed through 54
Internet Banking in paying tax
& TECH. hereby declare that project entitled " DIGITAL BANKING IN HDFC BANK " is an
original work and same has not been submitted to any other institute for the award of any
degree. The training report was presented to the supervisor on Mr. ASHISH CHAWLA .
The flexible suggestion has been incorporated in consultant with the supervisor.


I would like to convey my heartiest gratitude to several people, for their support and guidance
which helped me complete my summer internship.

I am immensely thankful to HDFC BANK for giving me the opportunity to carry out my
project work in this esteemed organization and assigning me the project in the area of my
interest in the digital banking.

The satisfaction , which accompanies the successful completion of any task is incomplete
without the mention of the names of those people who made it possible, because success is
the epitome of hard work , perseverance, undeterred missionary, zeal, determination and the most
encouraging guidance and advice which serve as beacon light and crown our efforts with

At this outset, I extend my earnest thanks and gratefulness to my both project guides-
Corporate as well as Academic, namely Mr. ASHISH CHAWLA (Branch Manager, HDFC
BANK), For his precious guidance and mentoring without which my training here would not
have been so rewarding.

I express my profound gratitude and indebtness to” Mr. ATUL GAUTAM (HOD) ”
for his insightful knowledge, patience and encouragement which gave me strength and power
to perform my best.

Finally , I express my heartfelt gratitude to each and every individual who have been
associated with my project work including those whom I may have inadvertently failed to


The study was based on services provided by the bank through digital banking at HDFC
BANK. Objectives of the project are to find the customer satisfaction relating to digital
banking services and to study the awareness of digital banking among the customers of Hdfc

For the above study a questionnaire was designed and the same was provided to the
respondent for their valuable inputs. Inputs were provided in the form of hard copies.

All the aspects of the study including introduction of the study, objective if the study,
research methodology, literature review data interpretation and analysis, findings, suggestions
and conclusions

The basic objective of my research was to analyze the awareness among customers for digital
banking in India. It gives direction to research tools, research types and techniques.

Although the findings reveal that people know about the services but still many people are
unaware and many of them are non-users so the bank should by promotion try to retain the
customers. Banks should look forward to have some tie-ups with other financial institutions
to increase the service base.

The data collection of the study was mainly taken from primary sources i.e. Questionnaire
and secondary sources of data i.e. Google and pamphlet of Hdfc bank.




As the real sector reforms began in 1992, the need was felt to restructure the Indian
banking industry. The reforms measures necessitated the deregulation of the financial
sector, particularly the banking sector. The initiation of the financial sector reforms
brought about a paradigm shift in banking industry. In 1991, the RBI had proposed to
form the committee chaired by M. Narasimham, former RBI Governor in order to review
the financial system viz. aspects relating to structure, Organisations and functioning the
financial system. The Narasimham Committee report, submitted to them finance minister,
Manmohan Singh, on the banking sector reforms highlighted the weaknesses in Indian
banking system and suggested reform measures base the Basle norms. The guidelines that
were issued subsequently laid the foundation for the reformation of Indian banking

(1.1.2.) Meaning of Bank:

A Bank is an institution which accepts deposits from the general public and extends loans
to the households, the firms and the government.

Banks are those institutions which operate in money. Thus, they are money traders, with
the process of development functions of banks are also increasing and diversifying now,
the banks are not nearly the traders of money, they also create credit. Their activities are
increasing and diversifying. Hence it is very difficult to give a universally acceptable
definition of bank.

"Banking business” means the business of receiving money on current or deposit

account, paying and collecting cheques drawn by or paid in by customers, the making of
advances to customers, and includes such other business as the Authority may prescribe
for the purposes of this Act.

Definitions of Bank

Indian Banking Regulation act 1949 section 5 (1) (b) of the banking

Regulation Act 1949 Banking is defined as.

―Accepting for the purpose of the landing of investment of deposits of money from
public repayable on demand or other wise and withdraw able by cheques, draft, order or

―Bank means a bench or table for changing money. GREEK HISTORY

Figure 1.1.1

(1.1.3) History of banking in INDIA:

Without a sound and effective banking system in India it cannot have a healthy economy. The
banking system of India should not only be hassle free but it should be able to meet new
challenges posed by the technology and any other external and internal factors. For the past
three decades India's banking system has several outstanding achievements to its credit. The
most striking is its extensive reach. It is no longer confined to only metropolitans or

cosmopolitans in India. In fact, Indian banking system has reached even to the remote corners
of the country. This is one of the main reasons of India's growth process. The government's
regular policy for Indian bank since 1969 has paid rich dividends with the nationalization of
14 major private banks of India. Not long ago, an account holder had to wait for hours at the
bank counters for getting a draft or for withdrawing his own money. Today, he has a choice.
Gone are days when the most efficient bank transferred money from one branch to other in
two days. Now it is simple as instant messaging or dials a pizza. Money has become the order
of the day. The first bank in India, though conservative, was established in 1786. From 1786
till today, the journey of Indian Banking System can be segregated into three distinct phases.
They are as mentioned below: Early phase from 1786 to 1969 of Indian Banks
Nationalisation of Indian Banks and up to 1991 prior to Indian banking sector Reforms. New
phase of Indian Banking System with the advent of Indian Financial & Banking Sector
Reforms after 1991. To make these phases more explanatory, the scenarios are prefixed as
Phase I, Phase II and Phase II

(1.1.4.) First Phase: 1948 – 1969

Government took major steps in this Indian Banking Sector Reformafter independence. In
1955, it nationalized Imperial Bank of India with extensive banking facilities on a large
scale especially in rural and semi-urban areas. The country inherited a banking system
that was patterned on the British Banking System. There were many joint stock
companies doing banking business and they were concentrating mostly in major cities.
Even the financing activities of these banks were confined to the exports of Jute, Tea etc
and traditional industries like textile and sugar. There was no uniform law governing
banking activity. An immediate concern after the partition of the country was about bank
branches located in Pakistan and steps were taken to close some of them as desire by that
country. In 1949, as many as 55 banks either went into liquidation or went out of banking
business. Banking did not receive much attention of the policy makers and disjointed
efforts were made towards the regulation of the banking industry.

(1.1.5.) Second Phase: Nationalization 1969 – 1990

After independence, India adopted a socialist pattern of society as its goal. This means in non
technical language a society with wealth distributed as equitably as possible without making
the country a totalitarian state. In 1955, the Imperial Bank of India was nationalized and its

undertaking was taken over by State Bank of India. Its transformation into SBI has been
effective from July 1, 1955.19 there were 7 subsidiaries Banks. Their Associate Bank was

The State Banks group including State Bank of Hyderabad, State Bank of Mysore, State
Bank of Travancore, State Bank of Bikaner and Jaipur, State Bank of Indore, State Bank
of Patiala and State Bank of Saurashtra. As regards the scheduled banks, there were
complaints that Indian Commercial Banks were directing their advances to the large and
medium scale industries and big business houses and that the sectors demanding priority
such as agriculture, small scale industries and exports were not receiving their due share.
This was one of the chief reasons for imposition of social control by amending the
banking regulation act, with effect from 1st February 1969. On 19th July 1969, 14 major
banks were nationalized and taken over they were as under:

• The Central Bank of India Ltd

• The Bank of India Ltd

• The Punjab National Bank Ltd

• The Bank of Baroda Ltd

• The United Commercial Bank Ltd

• The Canara Bank Ltd

• The United Bank of India Ltd

• The Dena Bank Ltd

• Syndicate Bank Ltd

• The Union Bank of India Ltd

• The Allahabad Bank Ltd

• The Indian Bank Ltd

• The Bank of Maharashtra Ltd

• The Indian Overseas Bank Ltd

Each bank was having deposits of more than Rs. 50 crores and having among themselves
aggregate deposits of Rs. 2632 crore with 4130 branches. On 15th April 1980, six more
banks were nationalized.

These banks were:

• The Andhra Bank Ltd18

• The Corporation Bank Ltd

• The New Bank of India Ltd

• The Oriental Bank of Commerce Ltd

• The Punjab & Sind Bank Ltd

• The Vijya Bank Ltd

There were some effects and achievements of nationalized banks. However, there are
some problems relating to NPAs, competition, Competency, overstaffing, inefficiency
etc. for the nationalized bank.

(1.1.6.) Third Phase: 1991-2002 Economic Reforms

The Indian economic development takes place in the realistic world from 1991
―Liberalization, Privatization and Globalization‖ policy. As per ―LPG‖ policy all
restriction on the Indian economy was totally dissolved and the soundest phase for the
Indian banking system adopt over here. This also changed the scenario of the
macroeconomic world. The budget policy and suggestion provided by Dr. Manmohan
Singh and the Governor of Reserve Bank of India. As per the guideline the segments for
development is having various problem and so the importance of public sector cannot be
ignored. The country is flooded with foreign banks and their ATM stations.

Efforts are being put to give a satisfactory service to customers. Phone banking and net
banking is introduced. The entire system became more convenient and swift. Time is
given more importance than money The financial system of India has shown a great deal
of resilience. It is sheltered from any crisis triggered by any external macroeconomics
shock as other East Asian Countries suffered. This is all due to a flexible exchange rate
regime, the foreign reserves are high, and the capital account is not yet fully convertible,
and banks and their customers have limited foreign exchange exposure.


(a) Organized and unorganized banking:

That part of Indian banking system which does not fall under the control of our central bank
(i.e. Reserve Bank of India) is called as un-organised banking. For example, Indigenous
banks. Whereas, organized banking system refers to that part of the Indian banking system
which is under the influence and control of the Reserve Bank of India. For example.
Commercial Banks, Industrial Banks, Agricultural Banks.

(b) Scheduled and Non-scheduled banks:

Under the Reserve Bank of India Act, 1939, banks were classified as scheduled banks and
non scheduled banks.. The scheduled banks are those which are entered in the second
schedule of RBI Act, 1939. Scheduled banks are those banks an which have a paid up capital
and reserves of aggregate value of not less than Rs 5 lakhs and which satisfy RBI.

All Commercial Banks, Regional Rural Banks, State Cooperative Banks are scheduled banks.
On the other hand, non-schedule banks are those banks whose total paid up capital is less
than Rs 5 lakh and RBI has no specific control over these banks. These banks are not
included in the second schedule of RBI Act, 1934.

(c) Indigenous Bankers:

From very ancient days indigenous banking as different from the modern western banking
has been organized in the form of family or individual business. They have been called by
various names in different parts of the country as Shroffs, Sethus, Sahukars, Malayans,
Chettis and so on. They vary in their size from petty money lenders substantial Shroffs.

(d) Central Bank:

In each country there exists central bank which controls a country’s money supply and
monetary policy. It acts as a bank to other banks, and a lender of last resort. India Reserve
Bank of India (RBI) is the Central Bank.

(e) Commercial Bank:

A bank dealing with general public, accepting deposits from making loans to large numbers
of households and firms. Through the process of accepting deposits and lending, commercial
banks create credit in the economy. Some examples (commercial banks in India are State
Bank India (SBI), Punjab National Bank (PNB) etc.

(f) Development Banks:

Development banks are specialized financial institutions. To promote economic development,

development banks provide medium term and long term loans the entrepreneurs at relatively
low rate o interest rates. Some examples of development banks in India are Industrial
Development Bank of India (IDBI), Industrial Financial Corporation of India (IFCI),
Industrial Credit and Investment Corporation of India (ICICI) etc.

(g) Co-Operative Banks:

Co-operative banks are organized under the provisions of the Co- operative societies law of
the state. These banks were originally set up in India to provide credit to the farmers at
cheaper rates. However, the co-operative banks function also in the urban sectors.

(h) Regional Rural Banks:

Regional Rural Banks (RRBs) are established in the rural areas to meet the needs of the
weaker section of the rural population.

(i) National Bank for Agricultural and Rural Development (NABARD):

This bank was established in 1982 in India in view of providing the rural credit to the
farmers. Actually, it is an apex institution which coordinates the functioning of different
financial institutions working in the field of rural credit. NABARD has been making
continuous efforts through its micro-finance programme or improving the access of the rural
poor to formal institutional credit. The self help group (SHG) – Bank linkage programme was
introduced in 1992 as a mechanism to provide financial services to the rural poor people on a
sustainable basis.

(j) EXIM Bank:

It is popularly known as ‘Export Import Bank’. Such banks provide long term financial
assistance to the exporters and importers.


The most common banking terms are as follows:

• Bouncing of a cheque
When an account has insufficient funds the cheque is not payable and is returned by
the bank with a reason “Exceeds arrangement” or “funds insufficient”.

• Bank Rate
It is the rate of interest charged by a central bank to commercial banks on the
advances and the loans it extends.

• Cheque
It is written by an individual to transfer amount between two accounts of the same
bank or a different bank and the money is withdrawn form the account.

• Core Banking Solutions (CBS)

In this all the branches of the bank are connected together and the customer can
access his/her funds or transactions from any other branch.

• CRR (Cash Reverse Ratio)

The amount of funds that a bank keep with the RBI. If the percentage of CRR
increases then the amount with the bank comes down.

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• Debit Card
It is a card issued by the bank so the customers can withdraw their money from their
account electronically.

• Demat Account
The way in which a bank keeps money in a deposit account in the same way the
Depository company converts share certificates into electronic form and keep them in
a Demat account.

• E-Banking
It is a type of banking in which we can conduct financial transactions electronically.
RTGS, Credit cards, Debit cards etc come under this category.

• EFT – (Electronic Fund Transfer)

In this we use Automatic teller machine, wire transfer and computers to move funds
between different accounts in different or same bank.

• Initial Public Offering (IPO)

It is the time when a company makes the first offering of the shares to the pubic.

• Leverage Ratio
It is a financial ratio which gives us an idea or a measure of a company’s ability to
meet its financial losses.

• Liquidity
It is the ability of converting an investment quickly into cash with no loss in value.

• Market Capitalization
The product of the share price and number of the company’s outstanding ordinary

• Mortgage
It is a kind of security which one offers for taking an advance or loan from someone.

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• Mutual Fund
These are investment schemes. It pools money from various investors in order to
purchase securities.

• Pass Book
It is a book where all the bank transactions are recorded. They are mainly issued to
Current or Savings Bank account holders.

• Repo Rate
Commercial banks borrow funds by the RBI if there is any shortage in the form of
rupees. If this rate increases it becomes expensive to borrow money from RBI and
vice versa.

• Savings Bank Account

It is account of nominal interest which can only be used for personal purpose and
which has some restrictions on withdrawal.

• SLR (Statutory Liquidity Ratio)

It is amount that a commercial bank should have before giving credits to its customers
which should be either in the form of gold, money or bonds.

• Teller
He/she is a staff member of the bank who cashes cheques, accepts deposits and
perform different banking services for the general mass.

• Universal Banking
When financial institutions and banks undertake activities related to banking like
investment, issue of debit and credit card etc then it is known as universal banking.

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HDFC is a major Indian financial services company based in India, the Bank was promoted
by the Housing Development Finance Corporation, a premier housing finance company (set
up in 1977) of India. 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. For the fiscal
year 2010-11, the bank has reported net profit of 3,926.30 crore (US$871.64 million), up
33.1% from the previous fiscal. Total annual earnings of the bank increased by 20.37%
reaching at 24,263.4 crore (US$5.39 billion) in 2010-11. HDFC Bank has 1,725 branches and
over 5,000 ATMs, in 780 cities in India, and all branches of the bank 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 has a member base. The Bank also has 5,016
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.

The Housing Development Finance Corporation Limited (HDFC) was amongst the first to
receive an 'in principle' approval from the Reserve Bank of India (RBI) to set up a bank in the
private sector, as part of RBI's liberalisation of the Indian Banking Industry in 1994. The
bank was incorporated in August 1994 in the name of 'HDFC Bank Limited', with its
registered office in Mumbai, India. HDFC Bank commenced operations as a Scheduled
Commercial Bank in January

- 14 -

HDFC is India’s premier housing finance company and enjoys an impeccable track record in
India as well as in international markets. Since its inception in 1977, the Corporation has
maintained a consistent and healthy growth in its operations to remain the market leader in
mortgages. Its outstanding loan portfolio covers well over a million dwelling units. HDFC
has developed significant expertise in retail mortgage loans to different market segments and
also has a large corporate client base for its housing related credit facilities. With its
experience in the financial markets, strong market reputation, large shareholder base and
unique consumer franchise, HDFC was ideally positioned to promote a bank in the Indian


HDFC Bank’s mission is to be a World Class Indian Bank. The objective is to build sound
customer franchises across distinct businesses so as to be the preferred provider of banking
services for target retail and wholesale customer segments, and to achieve healthy growth in
profitability, consistent with the bank’s risk appetite. The bank is committed to maintain the
highest level of ethical standards, professional integrity, corporate governance and regulatory
compliance. HDFC Bank’s business philosophy is based on five core values: Operational
Excellence, Customer Focus, Product Leadership, People and Sustainability.



On May 23, 2008, the amalgamation of Centurion Bank of Punjab with HDFC Bank was
formally approved by Reserve Bank of India to complete the statutory and regulatory
approval process. As per the scheme of amalgamation, shareholders of CBOP received 1
share of HDFC Bank for every 29 shares of CBOP.

The amalgamation added significant value to HDFC Bank in terms of increased branch
network, geographic reach, and customer base, and a bigger pool of skilled manpower.

In a milestone transaction in the Indian banking industry, Times Bank Limited (another new

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private sector bank promoted by Bennett, Coleman & Co. / Times Group) was merged with
HDFC Bank Ltd., effective February 26, 2000. This was the first merger of two private banks
in the New Generation Private Sector Banks. As per the scheme of amalgamation approved
by the shareholders of both banks and the Reserve Bank of India, shareholders of Times Bank
received 1 share of HDFC Bank for every 5.75 shares of Times Bank.


HDFC Bank caters to a wide range of banking services covering commercial and investment
banking on the wholesale side and transactional / branch banking on the retail side. The bank
has three key business segments:

Wholesale Banking

The Bank’s target market is primarily large, blue-chip manufacturing companies in the Indian
corporate sector and to a lesser extent, small & mid-sized corporates and agri-based
businesses. For these customers, the Bank provides a wide range of commercial and
transactional banking services, including working capital finance, trade services, transactional
services, cash management, etc. The bank is also a leading provider of structured solutions,
which combine cash management services with vendor and distributor finance for facilitating
superior supply chain management for its corporate customers. Based on its superior product
delivery / service levels and strong customer orientation, the Bank has made significant
inroads into the banking consortia of a number of leading Indian corporates including
multinationals, companies from the domestic business houses and prime public sector


Within this business, the bank has three main product areas - Foreign Exchange and
Derivatives, Local Currency Money Market & Debt Securities, and Equities. With the
liberalisation of the financial markets in India, corporates need more sophisticated risk
management information, advice and product structures. These and fine pricing on various
treasury products are provided through the bank’s Treasury team. To comply with statutory
reserve requirements, the bank is required to hold 25% of its deposits in government
securities. The Treasury business is responsible for managing the returns and market risk on

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this investment portfolio It is recognised as a leading provider of cash management and
transactional banking solutions to corporate customers, mutual funds, stock exchange
members and banks.

 Retail Banking

The objective of the Retail Bank is to provide its target market customers a full range of
financial products and banking services, giving the customer a one-stop window for all
his/her banking requirements. The products are backed by world-class service and delivered
to customers through the growing branch network, as well as through alternative delivery
channels like ATMs, Phone Banking, NetBanking and Mobile Banking.
The HDFC Bank Preferred program for high net worth individuals, the HDFC Bank Plus and
the Investment Advisory Services programs have been designed keeping in mind needs of
customers who seek distinct financial solutions, information and advice on various
investment avenues. The Bank also has a wide array of retail loan products including Auto
Loans, Loans against marketable securities, Personal Loans and Loans for Two-wheelers. It
is also a leading provider of Depository Participant (DP) services for retail customers,
providing customers the facility to hold their investments in electronic form.
HDFC Bank was the first bank in India to launch an International Debit Card in association
with VISA (VISA Electron) and issues the MasterCard Maestro debit card as well. The Bank
launched its credit card business in late 2001. By March 2015, the bank had a total card base
(debit and credit cards) of over 25 million. The Bank is also one of the leading players in the
“merchant acquiring” business with over 235,000 Point-of-sale (POS) terminals for debit /
credit cards acceptance at merchant establishments. The Bank is well positioned as a leader in
various net based B2C opportunities including a wide range of internet banking services for
Fixed Deposits, Loans, Bill Payments, etc.

- 17 -
Type Private

Traded as BSE: 500180

BSE SENSEX Constituent
CNX Nifty Constituent

Industry Banking, financial services

Founded August 1994

Headquarters Mumbai, Maharashtra, India

Area served India

Key people Aditya Puri (MD)[1]

Products Credit cards, consumer banking, corporate

banking, finance and insurance, investment
banking, mortgage loans, private banking, private
equity, wealth management[2]

Revenue ₹81,602 CRORES (US$12 billion) (2017)[3]

Operating income ₹25,732 CRORES (US$3.8 billion) (2017)[3]

Net income ₹14,55 CRORE(US$2.2 billion) (2017)[3]

Total assets ₹863,840 CRORE(US$130 billion) (2017)[4]

Number of 84,325 (March 2017)[5]


Website HDFCBank.com

- 18 -
HDFC Bank began operations in 1995 with a simple mission: to be a "World-class Indian
Bank". We realised that only a single-minded focus on product quality and service excellence
would help us get there. Today, we are proud to say that we are well on our way towards that
It is extremely gratifying that our efforts towards providing customer convenience have been
appreciated both nationally and internationally.


BrandZ's Top 100 Global Brands List HDFC Bank featured for the fourth time in
the BrandZ's Top 100 Global Brands List

14th Visa Asia Pacific Security India and South Asia Champion Security
Summit Award 2018

National Payments Excellence HDFC Bank wins NPCI National Payments

Awards 2018 Excellence Awards

Barron's World's Top 30 CEOs Mr. Aditya Puri in Barron's Top 30 Global
CEOs for 4th year - Growth Leaders

Dun & Bradstreet Corporate Award Best Bank


- 19 -
Federation of Indian Export Best Bank : Export Finance - Non MSME

Organisation (FIEO)

Business Today Best Bank Awards Bank of the Year

Best in Innovation
Best Large Bank
Fastest Growing Large Bank

Dun & Bradstreet BFSI Awards 2018 India's Leading Bank - Private sector

Euromoney Private Banking and - Net-worth-specific services (High Net Worth

Wealth Management survey 2018 Clients US $ 5-30 MN)
- Asset Management
- SRI/Social Impact Investing
- International Clients

10th BW Businessworld-PwC Best - Fastest Growing Large Bank

Banks' (2017) Survey - Best Large Bank
- Lifetime Achievement Award - Mr. Aditya

- 20 -


Name Last Price Market Cap. Net Interest Net Total Assets
(Rs. cr.) Income Profit

Kotak Mahindra 1,389.80 264,914.21 19,748.49 4,084 264,933.40

ICICI Bank 272.30 175,144.33 54,965.89 6,777.42 771,791.46

Axis Bank 538.35 138,245.39 45,780.31 275.68 691,329.57

IndusInd Bank 1,938.15 116,382.68 17,280.75 3,605.99 221,626.17

Yes Bank 374.80 86,418.13 20,267.42 4,224.56 312,445.60

Bandhan Bank 563.15 67,172.81 4,802.30 1,345.56 44,310.07

RBL Bank 575.70 24,232.91 4,507.57 635.09 61,850.75

ING Vysya Bank 1,027.00 19,719.13 5,205.22 657.85 60,413.23

Federal Bank 79.90 15,801.22 9,752.86 878.85 114976.93

- 21 -

Mrs. Shyamala Gopinath

Mr. Partho Datta

Mr. Bobby Parikh

Mr. Malay Patel

Mr. Keki Mistry

Mr. Aditya Puri

Mr. Paresh Sukthankar

Mr. Kaizad Bharucha

Mr. Umesh Chandra Sarangi

Mr. Srikanth Nadhamuni

- 22 -

- 23 -

- 24 -
(1.3.1) what is meant by digitization?

Digitization is the process of converting data into digital format. Digitalization means
the adoption of technology. But these two words are being used interchangeably.

What is Digital Banking?

At Avoka, we talk a lot about building digital banking solutions to help financial
organizations improve their customer on boarding experiences. But, what is digital

Digital banking is the digitization (or moving online) of all the traditional banking
activities and programs that historically were only available to customers when physically
inside of a bank branch. This includes activities like:

• Money Deposits, Withdrawals, and Transfers

• Checking/Saving Account Management

• Applying for Financial Products

• Loan Management

• Bill Pay

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• Account Services

Consumer preferences have quickly shifted to online and mobile devices, but
many financial organizations have had trouble shifting their On boarding experiences
online and to smaller sc

In addition, until the past few years, banks were not envisioning the tremendous shift
in consumer behaviour that occurred as a result of the millennial generation now become
the largest consumers of financial products.

(1.3.2) What is the Difference between Online and Digital Banking?

For the most part, these two words are synonyms. But, we define online banking a bit
more narrowly: online banking primarily focuses on remote deposits, money transfers, bill
pay, and basic online management of accounts. Other synonyms for online banking
include internet banking, virtual banking, and e-banking. So, online banking focuses on
digitizing the “core” aspects of banking, but digital banking encompasses digitizing every
program and activity undertaken by financial institutions and their customers.

(1.3.3) History of Digital Banking:


• Online Banking is built into Microsoft Money. 100,000 households begin accessing their
bank accounts online.

• Stanford Credit Union begins offering banking services via their website, paving the way
for credit unions and banks across the country.


Online banking hits 20 million users, with 8 different U.S. banks achieving at least a
minimum of 1 million online users.


Avoka was founded to help banks and financial institutions in their digital transformations.

- 26 -

The launch of the I-Phone begins shifting digital banking from desktop computers to


Online banking hits 54 million users in the United States.


Millennial succeed in fundamentally shifting digital banking preferences, signalling to banks

that they must move all services online.

(1.3.4.) Advantages of digitization in banking:-

• Improved customer experience.

• Reduction of costs for banks and customers as well by using ATMs, cashless
transactions etc.

• With more digital data available with banks, they can take data-driven dynamic
decisions by using digital analytics. This benefits both customers and banks.

• Technology is non-discriminatory. Everyone will be treated same at banks.

• Digitalization reduces human error.

• Need of handling large amounts of cash will be reduced

• Opening and maintaining bank accounts are never been this easier.

• Repetitive tasks will be eliminated by automation.

• Rural and urban gap will be eliminated.

• With the increasing cashless transactions, fake currency threat will be reduced.

- 27 -
(1.3.5) saving max accounts

Save upto rs . 6170* when you open a saving max account with HDFC BANK.

Features & Benefits

 HDFC Bank offers several benefits on savings max accounts. Enjoy access to
your account via phone, mobile or laptop and get free lifetime debit cards.
 Get additional benefits on your savings max account with our free personal
accidental death cover and 1% cash back on transactions.
 We also offer special loan schemes, discounts on forex and gift card, and
preferential pricing on new online trading accounts as special benefits on savings
max accounts.

(1.3.6) Regular Savings Account

Enjoy 24*7 accesses to your bank with regular savings accounts that is designed to meet your
day to day banking needs.

 HDFC Bank offers a range of benefits on regular savings accounts. For instance,
customers get access to a wide network of branches and ATMs, along with multiple
modes of banking.
 Other benefits on our regular savings accounts include easy bill payment options, free
transactions alerts via mobile and email and free monthly statements.
 We also provide customised benefits on regular savings accounts, such as
personalised cheque books and the option to choose a debit card to match your

lifestyle needs.

(1.3.7)Women’s Savings Account

A comprehensive solution to women’s banking investment & lifestyle needs.

 HDFC Bank offers a range of features on women’s savings account. These

include the Easy Shop women’s debit card with cash back offers, along with
higher daily shopping and ATM cash withdrawal limits.
 Among the accessibility features of our women’s savings account, our
customers enjoy instant transaction alerts, easy bill payment options and
multiple modes of banking.

- 28 -
 Besides these, our account holders can avail exclusive benefits on women’s
savings accounts, such as preferential pricing on new online trading accounts
and insurance cover



Save precious time and money with HDFC Net Banking services. Internet Banking is a
convenient way to bank from the comfort of your home or office. Monitor, control and
transact your bank account online using our Net Banking facility - a one stop solution for all
of your banking needs. This service is available to you 24 x 7.

Features of Net Banking

Bank 24X7 - anywhere, anytime

Stringent security for safe Online Banking

View account details for Savings Account, Current Account, Term Deposits and DEMAT

Transfer funds online between your third party accounts with HDFC BANK or any other
bank account via NEFT, RTGS or IMPS Book a Term Deposit and do premature withdrawal

Online Password Regeneration & unlock User ID instantly

View and update your Profile details such as mobile number, email ID, correspondence
address, AADHAR Number etc. online instantly View HDFC Life insurance policy,
switch funds, pay premium online

Apply online for new HDFC Life insurance policy

View account balance, account activity and check cheque status.

(1.3.9.) What is IMPS fund transfer?

Immediate Payment Service (IMPS) enables you to instantly transfer funds online safely from
your bank account to accounts maintained with other banks participating in IMPS. This

- 29 -
service is available 24x7, even on Sundays and any Bank holidays through Net Banking and
Mobile Banking. All you need is a Valid MMID (for mobile banking) and device connected
to the internet and HDFC BANK’S net banking, SMS Banking or Mobile banking facility.
This service is brought to you by the National Payments Corporation of India (NPCI) in
collaboration with member banks.

• Fund Transfer using account number and IFSC

• Fund Transfer using mobile number and MMID (Mobile Money Identifier)

You can also use IMPS Merchant Payments Service to make instant payments to merchants /
enterprises. This facility is available only through Mobile Banking and Net Banking.

Features of IMPS:
• Debit and credit confirmation to sender and receiver.

• Safe and secure transaction

• Available 24*7, including Sunday and bank holidays.

• Instant funds transfer

• Benefits of IMPS

• Easy and Simple to use

• Hassle free transaction

• Inexpensive, accessible, safe and secure

• Avoidance of going to banks for transferring the money to the beneficiary.

SMS Banking
HDFC BANK’S SMS Banking service enables you to access your bank account, investment
account and DEMAT account on your mobile phone.
It is quick and easy, available to you 24X7 and it's absolutely free HDFC BANK’S inclusive
banking app is powered by SMS.

Key features:
• Access your Savings / Current Accounts, Credit Cards and Loans from anywhere

- 30 -
• Available on Android

• It's safe, as it works only through the mobile number registered with the bank and
allows only basic banking transactions, recharge and small value fund transfer

• No PIN or password is required to access this app.

• All requests are processed by SMS and do not require internet access to transact.
Standard SMS charges will apply.

• 36 banking transactions including prepaid mobile/DTH recharge & small value fund

• Link your AADHAR (UID) to bank account



• Transfer money up to Rs. 2,500 without adding/ registering beneficiary

• HDFC Payment Gateway

• HDFC Payment Gateway enables you to shop online, transfer money for online
trading account, pay utility bills and much more.

Merchant Websites
Shop online - Make purchases across various online shopping sites offering gifts, flowers,
exclusive designer wear, jewellery, latest electronic gadgets / household items and more

• Subscribe online to books / periodicals /magazine

• Book air and bus tickets online

• Book movie tickets online

• Register online to matrimonial, educational sites or astrology services

• Transfer money instantly to your account with HDFC Securities and other brokers, for
funding your margin money or funding your IPO account

• Pay utility bills mobile, telephone, gas, electricity, etc.

• Pay insurance premium

• Make donations to charitable and religious institutions

- 31 -
• Make online payments towards Mutual Fund investments

Mobile Banking
Welcome to the world of convenience banking on your mobile phone. Now, you can
experience the benefits of online banking anywhere and anytime, without the need for a
All this convenience comes to you in a secure and user friendly application for phones and
tabs on the iOS, Blackberry, Android and Windows platforms.

• Bill Pay & Recharge

• Credit Card

• Investments

• Service Requests

USSD (Unstructured Supplementary Service Data)

Now access your bank account from your mobile phone even without an internet connection.
Experience the benefits of banking on the move with USSD on any mobile phone. Smart
phone are not required.

• Service is available on select Telecom Service Providers and is not available on

CDMA phones.

• Simply dial *99# code from your mobile number registered with the Bank and access
your balance details, last 3 transactions and do fund transfer without the need of

• Benefits of using *99# for Fund Transfer:

• No need for internet or Smartphone. Anyone having a GSM phone can transfer funds
to any other person via Mobile Number, Virtual Payment Address or Bank Account

• Works only from the Registered Mobile Number

• Funds are transferred instantaneously

• No need to add beneficiary details every time

- 32 -
• Transfer up to INR 5000 / day

Phone Banking
• Your nearest HDFC BANK branch is on your phone.
Your 24-hour Customer Contact Centre offers you personalised service round the
clock. Simply call whenever you need to access your Bank.

• Quick and easy access anywhere, anytime

• PIN based security - High security feature ensures your account is secured with a 6
digit Phone Banking Personal Identification Number (PIN) which can also be changed

• Interactive Voice Response System (IVRS) - A quick and easy self-service option
bringing banking to your fingertips

• Customer Care Officers available 24 x 71

Cheque Deposit Kiosk (CDK)

Cheque Deposit Kiosk (CDK) is a self-service terminal that enables you to deposit cheque
without any manual intervention of the branch officer.

Now, there's no need to fill deposit slips and stand in long queues at the counter. Deposit your
cheque through the simple and fast CDK installed in the branch. Immediate receipt No need
to fill cheque deposit slips No need to stand in long queues To use the CDK, you simply need
to have HDFC BANK’S account number in which you wish to deposit the cheque.

- 33 -
Chapter - 2

- 34 -

A Literature review provides an overview and a critical evaluation of a body of literature

relating to a research topic or a problem. It analysis a body of literature in order to classify it
by themes or categories, rather than simply discussing individual works one after the other.

2.1 RAKESH H M & RAMYA T J (2014)

In their research paper titled “A Study on Factors Influencing Consumer Adoption of Internet
Banking in India” tried to examine the factors that influence internet banking adoption. Using
PLS, a model is successfully proved and it is found that internet banking is influenced by its
perceived reliability, Perceived ease of use and Perceived usefulness. In the marketing
process of internet banking services marketing expert should emphasize these benefits its
adoption provides and awareness can also be improved to attract consumers’ attention to
internet banking services.

2.2 (SHAIKH & KARJAJUOTO, 2015).

Mobile banking had provided its first service by the end of 1990s with the cooperation of
German company Playbox and Deutsche Bank

2.3 ( BARNES & CORBITT 2003; TOBBIN 2012).

Mobile banking is being defined as realizing the interaction in between the bank and the
customer through mobile phones, personal digital assistants (PDA), and other tools except
smart phones and computers

2.4 DUBE T., Kosmas N., COLLIN M., Lloyd C., (2011), “Adoption And Use of
SMS/Mobile Banking Services in Zimbabwe:

An Exploratory Study” The findings showed that although SMS banking was first launched
in 2004, the service was still in its infancy. Evidence showed that accessibility and
affordability were the major drivers to the adoption of SMS banking. The research confirmed

- 35 -
the assertion that the appeal is more about accessibility and affordability in developing
countries. This has been exacerbated by the lack of regulation for electronic banking in
Zimbabwe. The study recommended an increased awareness campaign by banks and
development of policy and regulation for electronic banking in Zimbabwe.

2.5 (DIXIT & DATTA, 2010)

Internet banking is a form of self service technology. This paper investigates the factors
which are affecting the acceptance of e-banking services among adult customers and also
indicates level of concern regarding security and privacy issues in Indian context. The finding
depicts many factors like security ' privacy trust innovativeness familiarity awareness
level increase the acceptance of e-banking services among Indian customers. Based on the
results of current study1Bank’s managers could segment the market on the basis of age group
and take their opinion and will provide them necessary guidance regarding use of online


Determining factors affecting customer perception and attitude towards and satisfaction with
e- banking is an essential part of a bank3s strategy formulation process in an emerging
economy like India. The major findings depict that customers are influenced in their usage of
e-banking services by the kind of account they hold their age and profession attach
highest degree of usefulness to balance enquiry service among e-banking services consider
security ' trust most important in affecting their satisfaction level and find slow transaction
speed the most frequently faced problem *while using e-banking.

2.7 (ACCENTURE, 2005).

Internet Banking was thought to signal a revolution in banking distribution. Banks invested
heavily in the development of the Internet channels

2.8 (THULANI ET AL, 2009)

It provides universal connection from any location worldwide and is universally accessible
from any Internet linked computer

2.9 (HAMID ET AL, 2007).

PC banking is defined as a home banking whereby consumers supplied with a financial

software package on disks, allowing consumers to fill in details offline and then to send them
- 36 -
into the bank over the bank’s private network. Unlike PC banking, Internet Banking or online
banking does not require proprietary software or access to a private network


E-banking includes the systems that enable financial institutions, customers, individuals or
businesses whether small or big or medium scale to access accounts, carry out transactions or
obtain information on financial products and services through a public or private network
using Internet.


E-banking involves customers using Internet to operate their bank accounts and obtain
information without visiting a bank branch.


Competition is the pushing force for the introduction of e-banking

- 37 -
Chapter –3

- 38 -

Research is an art of scientific investigation. In other word research is a scientific and

systematic search for pertinent information on a specific topic. The logic behind taking
research methodology into consideration is that one can have knowledge about the
method and procedure adopted for achievement of objectives of the project. With the
adoption of this others can evaluate the results also. Its main aim is to keep the
researchers on the right track.

The methodology adopted for studying the objectives was surveying the awareness
among customers of District Panipat. So keeping in view the nature of requirements of
the study to collect all the relevant information regarding the DIGITAL BANKING of
HDFC BANK with direct personal interview method with structured questionnaire was
adopted for the collection of primary data

Secondary data has been collected through the various magazines and newspapers and by
surfing on Internet. And the guide in the organization was consulted at many times.


Primary Objective:

TO analyse the perception of customer regarding digitalisation in banking sector.

Secondary Objective

 To identify the major factors why people opted to digital banking.

 To understand the intention of users to use digital banking services.
 To study the main reasons that can affect the user’s intention for not using digital
banking services provided by the banks.


A sample design is a definite plan for obtaining a sample from a given population. It
refers to the techniques or the procedure the researcher would adopt in selecting items for
the sample. Sample design may as well lay down the number of items to be included in
the sample for example the size of the sample.

- 39 -
Sample design is determined before data are collected. Here we select the population as
sample in our sample design. The selected respondents should be as representatives of the
total population.

3.3 POPULATION: - The persons holding digital account and using digital services related
to business class of District Panipat were taken into consideration.


Figure 3.1

Data was collected by using main two methods i.e. primary data and secondary data.


Primary data is the data which is used or collected for first time and it is not used by
anyone in the past. There are number of sources of primary data from which the information
can be collected.

- 40 -
We choose the following resources for our research:

• Questionnaire:-

This method of data collection is quite popular, particular in case of big enquiries. Here in our
research we set 11 simple questions and request the respondents to answer these questions
with correct information.

• Respondents:-

Respondents help in creation of more accurate idea about our research. We personally
meet the respondents inside and outside the banks.


Secondary data is the data which is available in readymade form and which is already used by
people for some purposes. There may be various sources of secondary data such as-
newspapers, magazines, journals, books, reports, documents and other published information.

• Banks Annual Reports

Banks issues their annual reports to get the people informed with the profitability and growth
of the bank. These annual reports helps us a lot to get the latest data and other related
information for our research. It tells us about the increase or decrease in profits and other

• Journals And Publications Of Different Banks

We also take into consideration the journals and publications issued by the bank at different
times. We comes to know about the Branches, ATM, locations and other useful information

• Manuals And Broachers Of Different Banks

We take the help of bank staff and other people who gives us deep information and data
which may not be available at anywhere. They gives us there full co-operation.

• Internet

We also take into consideration the internet facility with which we collect lot of latest

- 41 -

SAMPLE SIZE: Keeping in mind all the constraints the size of the sample of the study
was selected as 50

SAMPLING TECHNIQUE: Convenience Sampling

Convenience sampling is a non-probability sampling technique where subjects are selected

because of their convenient accessibility and proximity to the researcher.

RESEARCH DESIGN: Type of Research: - Descriptive research

Descriptive research is also called Statistical Research. The main goal of this type of research
is to describe the data and characteristics about what is being studied. The idea behind this
type of research is to study frequencies, averages, and other statistical calculations. Although
this research is highly accurate, it does not gather the causes behind a situation.

The regular interaction with the Customers and the Line Managers revealed about the various
strategies involved in performing business activities and gathering data using various
techniques and software applications

Descriptive research includes Surveys and fact-finding enquiries of different kinds. The main
characteristic of this method is that the researcher has no control over the variables; he can
only report what has happened or what is happening



In order to understand the nature and characteristics of various respondents in this study, the
information was collected and analyzed according to their socioeconomic
background which included the characteristic of their respondents like education, age marital
status and monthly income. This description shows that respondents included in this
survey belong to different backgrounds and this turn increase the scope of the study.

- 42 -
Chapter – 4
Data Analysis

- 43 -


4.1.1 Age
Table 4.1.1

Particulars %age of Respondent

Below 25 years 18%
26-35 years 54%
36-50 years 20%
Above 50years 8%

%ge of respondents
Below 25 years 26-35 years
36-50 years above 50 years


Figure 4.1.1

Analysis & Interpretation:

From the above study we find that 18% of the respondents are below 25 age group and 54%
respondents are between 26-35 age groups, 20% respondents are between36-50 age group,
8% respondents are above 50 age group.

- 44 -
4.1.2 Gender
Table 4.1.2

Particulars No. of Respondent %age

Male 38 76%

Female 12 24%

Total 50 100%

No. of Respondent
Male Female
0% 0%


Figure 4.1.2

Analysis & Interpretation:

From the above result we come to know that out of 50, 38 respondents are male and 12
respondents are female which is 76% and 24% are respectively.
From the above data we conclude that most of our respondents are male.

- 45 -
4.1.3 Occupation

Table 4.1.3

Particulars No. of Respondent %age

Business 21 42%

Government 9 18%

Professional 12 24%

Student 8 16%

Business Government Professional Student

16% 42%

Figure 4.1.3

Analysis & Interpretation;

From the above study we find that 42% respondents are business man, 18% respondents are
government employees, 12% respondents are students. From the above data we conclude that
most of our respondents are business man or professionals.

- 46 -

4.2.1 Respondents were asked about whether they are availing digital banking services.
The result is as follows: -
Table 4.2.1

Particulars No. of Respondents

Yes 42

No 8

No. of respondents
No. of respondents



Figure 4.2.1

Data analysis and interpretation;

From the above graph it was concluded that 86% of the respondents are availing digital
banking services and the remaining 14% respondents have yet not used the digital banking

This conclude that majority of respondents are moving towards the Digital India.

- 47 -
4.2.2 Respondents were asked about their familiarity with the digital banking services.
The result is as follows:

Table 4.2.2

Particular No. of Respondents

More than 1 year ago 7

6 months ago 32

3 months ago 8

Have not used yet 3

No. of Respondents
More than 1 year ago 6 months ago 3 months ago Have not used yet

6% 14%


Figure 4.2.2

Data analysis and interpretation;

From the above graph it was concluded that majority of respondents were aware about the
digital banking services from past 6 months after the demonetization and with the passage of
time respondents were becoming familiar with digital banking.

- 48 -
4.2.3. Respondents were asked about the reasons of using the digital services of banks.
The result is as follows:

Table 4.2.3

Particulars No. of respondents

Convenience 10

To save time 20

24 hours access to account 11

Others 9

No. of respondents




Convenience To save time 24 hours Others
access to

Figure 4.2.3

Data analysis and interpretation;

From the above graph it was concluded that majority of the respondents start using digital
services to avail 24 hours access to their accounts. And the second preference is given to the
convenience of using these services.

- 49 -
4.2.4. Respondents were asked about their quantum of visit in the bank from past 6
months. The result is as follows:

Table 4.2.4

Particulars No. of Respondents

Once a month 6

2-3 times a month 11

Once or twice a week 25

More than 3 times a week 8

No. of Respondents
Once a month 2-3 times a month
Once or twice a week More than 3 times a week

16% 12%


Figure 4.2.4

Data analysis and interpretation;

The above data concluded that 50% of the respondents visit the bank almost 2 or 3 times a
week and few respondents visit even more than that. This shows that still there is something
which needs to be more digitalized.

- 50 -
4.2.5. Respondents were asked about the time spent by them during their visit in the
bank. The result is as follows:

Table 4.2.5

Particulars No. of respondents

Less than 10 min. 8
10 – 20 min. 27
20 – 30 min. 12
More than 30 min. 3

No. of respondents


To save time
24 hours
access to others

Figure 4.2.5

Data analysis and interpretation;

The above graph shows that the average time spent by the respondent is approximately 10 to
30 min. among the total no. of respondents there are very few respondents who spent more
than 30 min. in the branch. This shows that banks are using upgraded techniques.

- 51 -
4.2.6. Respondents were asked about the recent service availed by the customer in bank.
The result is as follows:

Table 4.2.6

Particulars No. of respondents

Manage your account 5
Transfer of fund RTGS/NEFT 21
Mobile no. and Aadhaar Update 18
Cheque book or stop cheque 6

Manage your account

No. of respondents
Transfer of fund RTGS/NEFT

Mobile no. and Aadhaar Update

Cheque book or stop cheque
request 10%

36% 42%

Figure 4.2.6

Data analysis and interpretation;

From the above data it was concluded that 42% of the total respondents visit to the branch for
RTGS/NEFT, which is also the part of digital banking, and 36% respondents have come to
link their Aadhaar. The remaining 22% respondents have come for have come for their
request or quarries.

- 52 -
4.2.7. Respondents were asked about the most frequently usable channel for availing the
banking services. The result is as follows:

Table 4.2.7

Particulars No. of respondents

Online banking 12
Mobile banking 20
Smart phone application 10
Customer service representative 8

No. of respondents



No. of respondents

Online banking Mobile banking Smart phone Customer
application service

Figure 4.2.7

Data analysis and interpretation;

From the above data it was concluded that majority of the respondents uses online
banking and mobile banking and the next preference is being given to the Customer
Service Representative by the respondents.

- 53 -
4.2.8. Respondents were asked about the degree of benefits availed through Internet
Banking in paying tax

Table 4.2.8

Particulars No. of respondents

Yes 42

No 8

No. of Respondents
Yes No



Figure 4.2.8

Data analysis and interpretation;

From the above graph it was concluded that majority of the respondents are with the view
that Internet banking plays a vital role for doing their day to day business so as to pay the

- 54 -
Chapter -5

- 55 -
This chapter summarizes the findings emerged from analysis of the results pertaining to
various aspects of digitalization in banking sector, few suggestions have been recommended
for the efficient functioning and effective management of the digital banking.

5.1 Findings
The present findings from the interpretation of the results regarding factors considered for
adopting Digital banking services by bank customers, functional / psychological barriers, and
usefulness and benefits of digital banking services are enumerated here.

(1) Internet centre in the study area is the place for using internet for around 50 per cent of
the respondents.

(2) Though majority of the bank customers perceive the ATM usage as important, the
importance of ATM usage is significantly related to location, education and occupation of the
bank customers based on the present study.

(3) The perceived importance of Tele-banking is independent of the location and income but
depends upon sex, age, education and occupation of the bank customers.

(4) The internet banking is important for bank customers and at the same time the
importance of internet banking is significantly related to their age, education, occupation and

(5) The extent of services like Online Enquiry, Online Payment, Credit Card and Telephone
Banking has been at “Fair” level whereas the extent of services such as ATM Card, Debit
Card, Internet Banking, Depository Service, and Investment Advisory Service, e-Transfer of
Funds, Core Banking and Anywhere Banking has been “good” by the bank.

(8) There is significant relationship between adoption of digital banking and location, age,
education and income of the bank customers.

(9) The adoption of digital banking is significantly associated with the number of banking
transactions per month among bank customers.

- 56 -
(10) The bank customers consider “Like to use new technologies”, “IB has made banking
easy” and “Use IB for better rate offers and charges only” as the primary reasons for adoption
of digital banking.

(11) It is found that some bank customers have not adopted digital banking services as they
do not trust the internet as a channel for banking and it is complicated to use as well as they
cannot afford the Internet fee.

(12) The “Variety of services offered by the bank” is very important criteria and other criteria
such as “Size of the bank”, “Reputation of the bank”, “Ownership of the bank-Overseas”, and
“Ownership of the bank-Local” are the important criteria while “Familiarity with the bank” is
neither unimportant nor important for the bank customers to consider for adopting digital

(13) It is found that “Withdrawals using ATM” is the service performed in the banks very
much to the expectation of the bank customers. Besides this, User friendliness of Digital
Banking, Debit Card Facilities and Security of Transactions are the other three services
performed very well by the banks to the bank customers’ expectation in that order.

(14) The services such as “Deposits using ATM” and “Telephone Banking” performed by
the banks are just “good” in turn indicating that these services are somewhat up to the
expectation of bank customers.

(15) There is no notable difference between the performed services such as “Deposits using
ATM”, “Credit card facilities”, “Telephone banking”, “Reasonableness in cost”, “Security of
transactions”, “Adequacy of knowledge provided by bank” and “Promptness in attending

- 57 -
5.2. Suggestions

The following suggestions are recommended for enhancing digital banking services of banks
to the customers

1) Banks should take necessary steps to create awareness among rural people about the
advantages of digital banking services available in the banks.

2) The digital banking system should be enhanced to make the online enquiry and online
payment much easier to the customers.

3) Public sector banks should improve their digital banking services to compete with their
private sector counterparts.

4) Most of the customers have not availed of the digital banking services because they do not
trust the internet channel presuming it as complicated. So banks may set up a team of
personnel to train the customers to get acquainted with internet channel.

5) The bank customers have perceived the risk of getting wrong information from digital
banking services. These illusions should be removed from the minds of the customers by
bank people as these factors are the barriers for most of the customers for not adopting these

6) Though digital banking is convenient and easy to use, customers are afraid of adopting
these services because they think that using these “services are difficult and complicated”.
So, on-site training can be provided to the bank customers who intend to use digital banking

General Suggestions:
The delivery of financial services at affordable costs to vast sections of people including
disadvantaged and low income groups’ is relates to financial inclusion. Unrestrained access
to public goods and services is the sine qua non of an open and efficient society. 196 It is
argued that as banking services are in the nature of public good, it is essential that availability
of banking and payment services to the entire population without discrimination is the prime
objective of public policy To achieve this sound financial and banking service is essential and
therefore Indian bankers should take resolutions to implement the policy of “einclusion” in
all the branches, which enable its customers to enhance the knowledge of e-banking and avail
all form of banking services. It will include the maximum number of people under the shelter

- 58 -
of financial inclusion for this purpose, it is the duty of the bankers to inculcate the feeling of
that e-banking /internet banking is safe and secure. This can be possible only when a banker
take steps to have a separate on-line centre in their premises with enough number of
computers and uninterrupted internet facility.

5.3. Conclusion

Based on this study, the opinion of the sample respondents among the bank customers the
various aspects of digital banking services provided by banks are evaluated using appropriate
statistical techniques such as Cross tabulation analysis with Kruskal-Wallis test, t-test in
addition to descriptive statistics like mean and standard deviation. It is concluded from the
results of the study that the usage of ATM, Tele banking and Internet banking are perceived
as important and the use of these services is associated with socio-economic and
demographic characteristics of the respondents. Though, most of the customers prefer manual
banking over digital banking, the customers tend to use e-banking / internet banking and
adoption of e-banking and internet banking services among the bank customers is
significantly influenced by the number of times visiting the banks as well as the number of
banking transactions per month. Most of the services through digital banking performed by
both banks are beyond the expectation of the customers. From this, it is apparent that there is
significant difference in the perceived level of benefits of digital banking between public and
private sector banks as well as between non-users and users of DB. It is also concluded that
the usefulness of digital banking provided by private sector banks is remarkably higher than
that of public sector banks.. It is further concluded that the bank customers may also continue
to use digital banking in the future” as it is useful in getting account details and balance
statements as well as for transferring funds. Moreover, bank customers tend to strongly
recommend to others to use digital banking as it is useful for loan transaction, paying bills
using available cash in the accounts, making order to buy and sell shares and generating latest
reports of banking transactions.

- 59 -

Due to constraints of time and resources, the study is likely to suffer from certain
limitations. Some of these are mentioned here under so that the findings of the study may
be understood in proper perspective. The limitations of the study are:

 Some of the respondents of the survey were unwilling to share information

 The research was carried out in a short period of 6 weeks Therefore
the sample size and other parameters were selected accordingly so as to finish
the work within the given time frame.
 The information given by the respondents might be biased because some of them
might not be interested to give correct information
 The officials of the bank supported me a lot, but did not have sufficient time to
make the points more clear.

- 60 -

• Kothari C.R. (1990) Research Methodology: Method and Techniques, New Delhi

• Bodie. Z, Kane. A & Marcus’s. A: Essentials of Investments

• Prof. E Gordon & Dr. K. Natrajan “Banking Theory Law and Practice”

• http://www.kotak.com/sme-banking/convenience-banking/net-banking.html

• https://en.m.wikipedia.org/wiki/Digital_banking

• http://shodhganga.inflibnet.ac.in/bitstream/10603/9516/14/14_chapter%207.pdf

• http://www.kotak.com/personal-banking/accounts-deposits/811-accounts/kotak-

• https://www.scribd.com/mobile/doc/25049932/Final-Project-on-AE-banking#

• http://www.my3q.com/research/tingcht/FIT.phtml

• http://www.cc.gatech.edu/gvu/user_surveys/survey-1998-04/questions/banking.html

• http://www.projectfever.com/index.php?main_page=product_info&products_id=34

• http://shodhganga.inflibnet.ac.in/bitstream/10603/117794/9/09_chapter2.pdf


• Broachers and pamphlets of 811 A/c.

• Broachers and pamphlets of digital services.




Dear Customer,
I am the studen t of B.B.A IN PIET , PATIKYLANA-PANIPAT. I
am undergoing the project entitled named “Digital Banking ”. So by filling this
questionnaire please help me completing my project.

Name ______________________

Name of the Bank & Branch ____________________


(A) Male (B) Female


(A) Below 25 years (B) 26-35 years (C) 36-50 years (D) Above 50years


(A) Business (B) Professional (C) Service (D) Student (E) Others

1. Do you use Digital Banking services provided by your bank?

(a) Yes (b) No

2. When was the first time you came to know about your digital bank?

(a) More than 1 year ago (b) 6 months ago (c) 3 months ago

(d) Last month (e) Have not used yet

3. When was the first time you used the banking services of your digital bank?

(a) A year ago (b) 6 months ago (c) 3 months ago

(d) Last month (e) Have not used yet

4. What were your reasons for choosing Digital Banking services? (Answer can be more
than one)

(a) Convenience (b) Time saving

(c) 24 hours access to account (d) others

5. In the past 6 months, how often have you visited your Digital bank?

(a) Almost never (b) Once a month (c) 2-3 times in a month

(d) Once or twice a week (e) 3 or more times in a week

6. On an average, how much time do you spend in your digital bank during each visit?

(a) Less than 10 min. (b) 10 – 20 min.

(c) 20 – 30 min. (d) More than 30 min.

7. Which of the following banking services have you availed recently at your digital bank?

(a) Manage your account (b) Transfer of fund including NEFT/RTGS

(c) Mobile no. and Aadhaar update (d) Cheque book or stop cheque

8. Which of the following channel have you used to avail banking services?

(a) Online/ Internet banking (b) Mobile banking

(c) Smartphone application (d) Customer service representative

9. Do you feel that digital banking helps you in filling tax return?

(a) Yes (b) No

10. Overall, how satisfied are you with your Digital banking services?

(a) Very unsatisfied (b) Unsatisfied (c) Neutral

(d) Satisfied (e) Very satisfied

11. Any suggestions _________________________________________________