A STUDY ON AWARENESS OF BANKING PRODUCT AMONG

BHANDUP WEST

A Project Submitted to

University Of Mumbai For Partial Completion Of The Degree Of

Master In Commerce ( Advance Financial Accountancy)

Under The Faculty Of Commerce

By

Under The Guidance of

Prof.

Mulund College Of commerce

S.N Road, Mulund (West), Mumbai-400080.

2019-20
 DECLARATION

I the undersigned Miss Kajal H. Tiwari hereby, declare that the work embodied in the project
work titled “A Study On Awareness of Banking Product Among Bhandup West”, from my own
contribution to the research work carried out under the guidance of Prof. is a result of my own
research work and has not been previously submitted to any other Degree/ Diploma to this or any
other university.

Wherever reference has been made to previous work of other, it has been clearly indicated as
such and included in the bibliography.

I, here by further declare that all information of this document has been obtained and presented
in accordance with academic rules and ethical conduct.
 ACKNOWLEDGMENT

To list who all have helped me is difficult because they are so numerous and the depth is so
enormous.

I would like to acknowledge the following as being idealistic channels and fresh dimensions in
the completion of the project.

I take this opportunity to thank the University of Mumbai for giving me chance to do this
project.

I would like to thank my Principal, Dr. for providing the necessary facilities required for
completion of this project.

I take this opportunity to thank our Co-ordinator Mr. Rane , for his moral support and
guidance.

I would like to express my sincere gratitude towards my Project Guide Prof. whose guidance
and care made the project successful.

I would like to thank my College Library, for having provided various references books and
magazines related to my project.

Lastly, I would like to thank each and every person who directly or indirectly helped me in the
completion of the project especially my Parents And Peers who supported me throughout my
project.

INDEX
Sr.No. Topic Page No.

1. Introduction
1.1 Introduction 1
1.2 Defination 3
1.3 History 3
1.4 How is Work & Rules 4
1.5 Types of Bank 5
1.6 Channles 6
1.7 How many product 7
1.8 Risk 9
1.9 Objective of Work 10
1.10 Function of Bank 11
1.11 Importance Of Bank

2. Review Of Literature 12

2.1 Research in India

3. Research Methodology

3.1 Nature of Study 24

3.2 Population & Sampling 24
3.3 primary objective 24
3.4 Location Of Study 24
3.5 Limitation 25
3.6 Data Collection 25

4. Data Analysis And Interpretation 26

5. Conclusion 37

Bibliography 39

Questionnaire 40
TOPIC:

CHAPTER: 1

INTRODUCTION

1.1 Introduction:

A bank is a financial institution that accepts deposits from the public and creates credit. Lending
activities can be performed either directly or indirectly through capital markets. Due to their
importance in the financial stability of a country, banks are highly regulated in most countries.
Most nations have institutionalized a system known as fractional reserve banking under which
banks hold liquid assets equal to only a portion of their current liabilities. In addition to other
regulations intended to ensure liquidity, banks are generally subject to minimum capital
requirements based on an international set of capital standards, known as the Basel Accords.

Banks act as payment agents by conducting checking or current accounts for customers,
paying cheques drawn by customers in the bank, and collecting cheques deposited to customers'
current accounts. Banks also enable customer payments via other payment methods such
as Automated Clearing House (ACH), Wire transfers or telegraphic transfer, EFTPOS,
and automated teller machines (ATMs).

Banks borrow money by accepting funds deposited on current accounts, by accepting term
deposits, and by issuing debt securities such as banknotes and bonds. Banks lend money by
making advances to customers on current accounts, by making installment loans, and by
investing in marketable debt securities and other forms of money lending.

Banks provide different payment services, and a bank account is considered indispensable by
most businesses and individuals. Non-banks that provide payment services such as remittance
companies are normally not considered as an adequate substitute for a bank account.
Banks can create new money when they make a loan. New loans throughout the banking system
generate new deposits elsewhere in the system. The money supply is usually increased by the act
of lending, and reduced when loans are repaid faster than new ones are generated. In the United
Kingdom between 1997 and 2007, there was an increase in the money supply, largely caused by
much more bank lending, which served to push up property prices and increase private debt. The
amount of money in the economy as measured by M4 in the UK went from £750 billion to £1700
billion between 1997 and 2007, much of the increase caused by bank lending.[16] If all the banks
increase their lending together, then they can expect new deposits to return to them and the
amount of money in the economy will increase. Excessive or risky lending can cause borrowers
to default, the banks then become more cautious, so there is less lending and therefore less
money so that the economy can go from boom to bust as happened in the UK and many other
Western economies after 2007.

Banking in its modern sense evolved in the 14th century in the prosperous cities of Renaissance
Italy but in many ways was a continuation of ideas and concepts of credit and lending that had
their roots in the ancient world. In the history of banking, a number of banking dynasties –
notably, the Medicis, the Fuggers, the Welsers, the Berenbergs, and the Rothschilds – have
played a central role over many centuries. The oldest existing retail bank is Banca Monte dei
Paschi di Siena, while the oldest existing merchant bank is Berenberg Bank.

Banking is an industry that handles cash, credit, and other financial transactions. Banks provide
a safe place to store extra cash and credit. They offer savings accounts, certificates of
deposit, and checking accounts. Banks use these deposits to make loans. These loans include
home mortgages, business loans, and car loans.

Banking is one of the key drivers of the U.S. economy. Why? It provides the liquidity needed for
families and businesses to invest for the future. Bank loans and credit mean families don't have
to save up before going to college or buying a house. Companies use loans to start hiring
immediately to build for future demand and expansion.
2 Defination:

The definition of a bank varies from country to country. See the relevant country pages under for
more information.

Under English common law, a banker is defined as a person who carries on the business of
banking by conducting current accounts for his customers, paying cheques drawn on him/her and
also collecting cheques for his/her customers.[13]

 "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; (Banking Act (Singapore), Section 2, Interpretation).
 "banking business" means the business of either or both of the following:

1. receiving from the general public money on current, deposit, savings or other similar
account repayable on demand or within less than [3 months] ... or with a period of call or
notice of less than that period;
2. paying or collecting cheques drawn by or paid in by customers.
3 HISTORY:

The concept of banking may have begun in ancient Babylonia and Old sangvi, with merchants
offering loans of grain as collateral within a barter system. Lenders in ancient Greece and during
the Roman Empire added two important innovations: they accepted deposits and changed
money.[citation needed] Archaeology from this period in ancient China and India also shows evidence
of money lending.

More modern banking can be traced to medieval and early Renaissance Italy, to the rich cities in
the centre and north like Florence, Lucca, Siena, Venice and Genoa.
The Bardi and Peruzzi families dominated banking in 14th-century Florence, establishing
branches in many other parts of Europe.[2] One of the most famous Italian banks was the Medici
Bank, set up by Giovanni di Bicci de' Medici in 1397.[3] The earliest known state deposit
bank, Banco di San Giorgio (Bank of St. George), was founded in 1407 at Genoa, Italy.[4]
Modern banking practices, including fractional reserve banking and the issue of banknotes,
emerged in the 17th and 18th centuries. Merchants started to store their gold with
the goldsmiths of London, who possessed private vaults, and charged a fee for that service. In
exchange for each deposit of precious metal, the goldsmiths issued receipts certifying the
quantity and purity of the metal they held as a bailee; these receipts could not be assigned, only
the original depositor could collect the stored goods.

4 How It Works
Banks are a safe place to deposit excess cash. The Federal Deposit Insurance
Corporation (FDIC) insures them. Banks also pay savers interest rates or a small percent of the
deposit.

Banks can turn every one of those saved dollars into $10. They are only required to keep 10
percent of each deposit on hand. That regulation is called the reserve requirement. Banks lend
the other 90 percent out. They make money by charging higher interest rates on their loans than
they pay for deposits.

Banks work by paying its customers to lend them money. When a person deposits money into
their bank account, the bank can then lend other people that money. The depositing customer
gains a small amount of money in return (interest on savings), and the lending customer pays a
larger amount of money to the bank in return (interest on loans). To make money for itself, the
bank keeps the difference.

It can be quite difficult to understand banking, since banks are very different from most other
businesses. For one thing, they are highly leveraged, with more than $20 in debt for every $1 of
equity. Also, It can be hard to understand what banks actually do, since they don’t make any real
products. And a lot of people seem to think that banking is “free”, probably because banks keep
advertising free checking accounts, free direct deposit, free bill payment, etc.

5 Rules

To fully understand how banks in the US make money, you need to understand a little about the
history of banking in the US. Traditionally, banks made money by borrowing from depositors at
low interest rates, lending that money at higher interest rates to borrowers, and pocketing the
difference. Banking used to be heavily regulated, and the joke was that it was a 3-6-3 business;
borrow money at 3%, lend it at 6%, and be at the golf course by 3 pm. Most banks also charged a
monthly fee to customers for maintaining a basic account, but most daily transactions were free.
But, overall, fees were low, constituting only 30% of total revenues.

6 Types of Banks

1. Commercial banks provide services to private individuals and to businesses. Retail

banking provides credit, deposit, and money management to individuals and families.

2. Community banks are smaller than commercial banks. They concentrate on the local
market. They provide more personalized service and build relationships with their
customers.

3. nternet banking provides these services via the world wide web. The sector is also called
also called E-banking, online banking, and net banking. Most other banks now offer
online services. There are many online-only banks. Since they have no branches, they can
pass cost savings onto the consumer. Some of the best are Ally Bank, ING, Synchrony,
and Discover.

4. Savings and loans are specialized created to promote affordable homeownership.

5. Credit unions are owned by their customers. This ownership structure allows them to
provide low-cost and more personalized services. You must be a member of their field of
membership to join. That could be employees of companies or schools or residents of a
geographic region.
 6. Investment banking finds funding for corporations through initial public stock
offerings or bonds. They also facilitate mergers and acquisitions. Third, they
operate hedge funds for high net worth individuals. The largest U.S. investment banks are
Bank of America, Merrill Lynch, Citi, Goldman Sachs, J.P. Morgan, and Morgan
Stanley. Large European investment banks include Barclays Capital, Credit Suisse,
Deutsche Bank, and UBS.

7. Channels

Banks offer many different channels to access their banking and other services:

 Branch, in-person banking in a retail location

 Automated teller machine banking adjacent to or remote from the bank
 Bank by mail: Most banks accept cheque deposits via mail and use mail to communicate to
their customers
 Online banking over the Internet to perform multiple types of transactions
 Mobile banking is using one's mobile phone to conduct banking transactions
 Telephone banking allows customers to conduct transactions over the telephone with
an automated attendant, or when requested, with a telephone operator
 Video banking performs banking transactions or professional banking consultations via a
remote video and audio connection. Video banking can be performed via purpose built
banking transaction machines (similar to an Automated teller machine) or via a video
conference enabled bank branch clarification
 Relationship manager, mostly for private banking or business banking, who visits customers
at their homes or businesses
 Direct Selling Agent, who works for the bank based on a contract, whose main job is to
increase the customer base for the bank

8. PRODUCTS :

 Savings account
 Recurring deposit account
 Fixed deposit account
 Money market account
 Certificate of deposit (CD)
 Individual retirement account (IRA)
 Credit card
 Debit card
 Mortgage
 Mutual fund
 Personal loan
 Time deposits
 ATM card
 Current accounts
 Cheque books
 Automated Teller Machine (ATM)

 Saving accounts are a type of deposit account kept by banks that pay interest. They let a
person keep some of their money in the bank for immediate use. They also earn money
through interest. Having a savings account in a bank allows a person to have money
available for an emergency.[1] Savings accounts may be opened at most banks, credit
unions and trust companies.

 A recurring deposit is a special kind of term deposit offered by banks which help people
with regular incomes to deposit a fixed amount every month into their recurring deposit
account and earn interest at the rate applicable to fixed deposits.[1] It is similar to making
fixed deposits of a certain amount in monthly installments. This deposit matures on a
specific date in the future along with all the deposits made every month. Recurring deposit
schemes allow customers an opportunity to build up their savings through regular monthly
deposits of a fixed sum over a fixed period of time. The minimum period of a recurring
deposit is six months and the maximum is ten years.
 A fixed deposit (FD) is a financial instrument provided by banks or NBFCs which provides
investors a higher rate of interest than a regular savings account, until the given maturity
date. It may or may not require the creation of a separate account. It is known as a term
deposit or time deposit in Canada, Australia, New Zealand, and The United States, and as
a bond in the United Kingdom and India. For a fixed deposit is that the money cannot be
withdrawn from the FD as compared to a recurring deposit or a demand deposit before
maturity. Some banks may offer additional services to FD holders such as loans against FD
certificates at competitive interest rates. It's important to note that banks may offer lesser
interest rates under uncertain economic conditions. The interest rate varies between 4 and
7.50 percent.[1] The tenure of an FD can vary from 7, 15 or 45 days to 1.5 years and can be as
high as 10 years.

 a loan is the lending of money by one or more individuals, organizations, or other entities
to other individuals, organizations etc. The recipient (i.e. the borrower) incurs a debt, and
is usually liable to pay interest on that debt until it is repaid, and also to repay the
principal amount borrowed.
 The document evidencing the debt, e.g. a promissory note, will normally specify, among
other things, the principal amount of money borrowed, the interest rate the lender is
charging, and date of repayment. A loan entails the reallocation of the subject asset(s) for
a period of time, between the lender and the borrower.
 The interest provides an incentive for the lender to engage in the loan. In a legal loan,
each of these obligations and restrictions is enforced by contract, which can also place the
borrower under additional restrictions known as loan covenants. Although this article
focuses on monetary loans, in practice any material object might be lent.
 A credit card is a payment card issued to users (cardholders) to enable the cardholder to
pay a merchant for goods and services based on the cardholder's promise to the card
issuer to pay them for the amounts plus the other agreed charges.[1] The card issuer
(usually a bank) creates a revolving account and grants a line of credit to the cardholder,
from which the cardholder can borrow money for payment to a merchant or as a cash
advance.
 A debit card (also known as a bank card, plastic card or check card) is
a plastic payment card that can be used instead of cash when making purchases. It is
similar to a credit card, but unlike a credit card, the money is immediately transferred
directly from the cardholder's bank account when performing any transaction.
 9. Risk

Banks face a number of risks in order to conduct their business, and how well these risks are
managed and understood is a key driver behind profitability, and how much capital a bank is
required to hold. Bank capital consists principally of equity, retained earnings and subordinated
debt.

After the 2007-2009 financial crisis, regulators force banks to issue Contingent convertible
bonds (CoCos).These are hybrid capital securities that absorb losses in accordance with their
contractual terms when the capital of the issuing bank falls below a certain level. Then debt is
reduced and bank capitalization gets a boost. Owing to their capacity to absorb losses, CoCos
have the potential to satisfy regulatory capital requirement.[20][21]

Some of the main risks faced by banks include:

 Credit risk: risk of loss arising from a borrower who does not make payments as
promised.[22]
 Liquidity risk: risk that a given security or asset cannot be traded quickly enough in the
market to prevent a loss (or make the required profit).
 Market risk: risk that the value of a portfolio, either an investment portfolio or a trading
portfolio, will decrease due to the change in value of the market risk factors.
 Operational risk: risk arising from execution of a company's business functions.
 Reputational risk: a type of risk related to the trustworthiness of business.
 Macroeconomic risk: risks related to the aggregate economy the bank is operating in.[23]

The capital requirement is a bank regulation, which sets a framework within which a bank or
depository institution must manage its balance sheet. The categorization of assets and capital is
highly standardized so that it can be risk weighted.

Banking law is based on a contractual analysis of the relationship between the bank (defined
above) and the customer – defined as any entity for which the bank agrees to conduct an account.

The law implies rights and obligations into this relationship as follows:
 The bank account balance is the financial position between the bank and the customer: when
the account is in credit, the bank owes the balance to the customer; when the account is
overdrawn, the customer owes the balance to the bank.
 The bank agrees to pay the customer's checks up to the amount standing to the credit of the
customer's account, plus any agreed overdraft limit.
 The bank may not pay from the customer's account without a mandate from the customer,
e.g. a cheque drawn by the customer.
 The bank agrees to promptly collect the cheques deposited to the customer's account as the
customer's agent, and to credit the proceeds to the customer's account.
 The bank has a right to combine the customer's accounts, since each account is just an aspect
of the same credit relationship.
 The bank has a lien on cheques deposited to the customer's account, to the extent that the
customer is indebted to the bank.
 The bank must not disclose details of transactions through the customer's account – unless
the customer consents, there is a public duty to disclose, the bank's interests require it, or the
law demands it.
 The bank must not close a customer's account without reasonable notice, since cheques are
outstanding in the ordinary course of business for several days.

These implied contractual terms may be modified by express agreement between the customer
and the bank. The statutes and regulations in force within a particular jurisdiction may also
modify the above terms and/or create new rights, obligations or limitations relevant to the bank-
customer relationship.

10. Objective of bank

1. To safety preservation of saved money of clients.
2. To easy transfer of money from one place to another including foreign and domestic area.
3. To creation of savings and savings mentality.
4. To increasing incomes and profits of each other.
5. To formation and creation of capital and liquidity.
6. To creating loan facility.
7. To assist in foreign exchange.
 8. To making economy to clients.
9. To information collection & providing if necessary.
10. To advising to subscribers on various facts for the interests of them.
11. To creating employment opportunities.
12. To making & increasing consciousness of general people.
13. To giving record facilities to clients for avoiding legal hindrances.

The objectives of commercial banks are two-fold; to offer a wide variety of services to individual and
business customers, and to collect payments including fees, charges and interest on the products and
services provided to customers for the purpose of generating profits for shareholders. Commercial
banks typically offer a robust suite of services in an attempt to be able to serve all the financial
needs of each customer. This results in the opportunity to maximize revenues from each customer. For
example, a customer who has checking and saving accounts, loans, and credit cards for personal and
business use at one bank generates revenues through numerous channels. Revenues can be increased
further if the customer also buys stocks and bonds through a bank’s brokerage arm.

The main purpose of a bank is to lower transaction costs, lower information costs, create
liquidity, and to diversify people's money in a way they could not do on their own.

Their other objective is to make money. They do this by paying the lender (someone with a
savings account) x% and then they lend that person's money out to a borrower (someone with a
home mortgage, car loan, etc) for something
 11. Functions of bank

1. The main functions of banks are accepting deposit and lending loans: A – accepting
deposits 1. Fixed deposits:- These deposits mature after a considerable long period
like 1 year or more than that the rate of interest is fixed the amount deposited cannot be
withdrawn before maturity date. 2. Current A/C deposit:- These are mainly maintain by
business community to facilitate frequent transaction with big amounts. Generally no
rate of interest or very low rate of interest is paid on this account.
2. Savings bank A/C:- It is kind of demand deposits which is generally kept by the
people for the sake of safety. These facility is given for small saver and normally a
small rate of interest is paid.
3. Recurring deposit A/C:- In case of recurring deposit the fixed amount is deposited in
a bank every month for a fixed period of time.
4. Lending loans 1. Call loans:- These loan are called back at any time. Normally, this
loans are taken by bill brokers or stock brokers. 2. Short term loans:- These are
sanctioned for a period up to 1 year. 3.Medium term loans:- These are sanctioned for
the period varying between 1 and 5 years.
5. These loan are sanctioned for a period of more than 5 years it includes: 1. Overdraft:-
The bank grants overdraft facility to its reliable and respectable depositors. It enables
companies, firms and businessmen to withdraw amount over and above their actual
 balance in their current account. 2. Cash credit: Under this facility, the bank allows the
borrower to withdraw cash against certain security. 3. Bills of Exchange:- The bank
provide funds to their customers by purchasing or discounting bills of exchange. The
bank charges commission up to the maturity period of bills.
6. Apart from the main functions, the banks also provide financial services to the
corporate sector and business and society. They are as follows: 1.Merchant Banking:-
Merchant banking is an organization which underwrites securities for companies,
advises in various activities. No person is allowed to carry out any activity as a
Merchant Banker unless holds a certificate granted by SEBI. Thus, merchant banks are
financial institutions which provide specialized services including acceptance of bills
of exchange, corporate finance, portfolio management and other services.
7. Leasing:- Banks have started funding the fixed assets through leasing. It refers to the
renting out of immovable property by the bank to the businessmen on a specified rent
for a specific period on terms which may be mutually agreed upon. A written
agreement is made in this respect.
8. Mutual funds:- The main function of mutual fund is to mobilize the savings of the
general public and invest them in stock market and money market.
9. Venture Capital (VC):-Venture Capital is financial capital provided to early-stage,
high-potential, high risk, growth startup companies. The venture capital fund makes
money by owning equity in the companies it invests in, which usually have a novel
technology or business model in high technology industries, such as biotechnology, IT,
software, etc.
10. ATM:- An ATM is also known as cash point. The banks nowadays provide ATM
facilities. The customers can withdraw money easily and quickly 24 hours a day.
11. Telebanking:- Telebanking is a throwback to the days when people would call into a
central number at their bank/financial institution in order to get balance, check status
and other account-related information. Most financial organizations offer telebanking
services today; however, the public representation is known as telephone-based
customer service or just customer service.
 12. Credit cards:- Credit cards allow a person to buy goods and services up to a certain
limit without immediate payment. The amount is paid to the shops, hotel, etc. by the
commercial banks.
13. Locker Service:- Under this service, lockers are provided to the public in various sizes
on payment of fixed rent. Customers can deposit their valuables, documents, jewellery,
securities, etc. in these lockers.
14. Underwriting:- This facility is provided to the joint stock companies and to the
government. The banks guarantee the purchase of certain proportion of shares, if not
sold in the market.
 The Importance of Commercial Banks

Commercial banks play a critical role in the country’s financial system by providing
liquidity through the creation of loans, access to money on deposit and the availability of
revolving debt using credit cards. Access to money enables businesses to grow, consumers to
make purchases of goods and services, and jobs to be created. This liquidity, combined with
the expedited, simple and efficient transfer of money for a wide range of financial transactions,
is an essential factor in a healthy economy.

Chapter 2: Literature review

1.
Hussain Gulzar Rammal, Ralf Zurbruegg -The concept of interest-free financing
was practiced by Arabs prior to the advent of Islam, and was later adopted by
Muslims as an acceptable form of trade financing. While the system had been used on
a small scale for centuries, its commercial application began in the 1970s. 1 Since then
Islamic financing has experienced worldwide acceptance, and by early 2003 there
were at least 176 Islamic banks around the world, with deposits in excess of $147bn
2. Yvonne Saini; Geoff Bick; Loonat Abdulla-This paper investigates the level of
consumer awareness and use of Islamic banking products in South Africa. A non-
probability sampling method was used whereby a questionnaire was administered to
250 respondents and statistically analysed to determine the factors that are important in
the choice between Islamic or conventional banks. It was found that Muslims are aware
of Islamic banks, but their rate of use is low, as Muslim customers regard efficiency,
lower bank charges, the availability of automatic teller machines and an extensive
branch network as important factors when it comes to choosing a bank, rather than
religious motivations for compliance with Islamic conventions. It was concluded that, if
Islamic banks wanted to attract and retain customers and remain relevant in the South
African context, they would have to develop relevant strategies designed to meet
customers' needs. Religion as the sole motivation for choosing Islamic banks is
inadequate.

3. E Honka, A Hortaçsu, MA Vitorino-How does advertising influence consumer

decisions and market outcomes? We utilize detailed data on consumer shopping
behavior and choices over bank accounts to investigate the effects of advertising on the
different stages of the shopping process: awareness, consideration, and choice. We
formulate a structural model with costly search and endogenous consideration sets, and
show that advertising in the U.S. banking industry is primarily a shifter of awareness as
opposed to consideration or choice. Advertising makes consumers aware of more
options, search more, and find better alternatives. This increases the market share of
smaller banks and makes the industry more competitive.
4. MS Sohail, B Shanmugham -This paper examines the current trends in the e-
commerce revolution that has set in motion in the Malaysian banking sector and reports
on an empirical research that was carried out in Malaysia to study the customers’
preference for electronic banking and the factors, which they considered influenced the
adoption of electronic banking. Results based on the analysis of data relating to 300
respondents indicate that while there is no significant differences between the age and
educational qualifications of the electronic and conventional banking users, some
 differences exists on other demographic variables. Analysis further reveals that
accessibility of Internet, a wareness of e-banking, and customers’ reluctance to change
are the factors that significantly affected the usage of e-banking in Malaysia. The paper
discusses on the implications of these. Limitations of the study are highlighted and
further research directions are suggested.
5. Luc Laeven, Fabián Valencia -The paper presents a comprehensive database on
systemic banking crises during 1970–2011. It proposes a methodology to date banking
crises based on policy indices, and examines the robustness of this approach. The paper
also presents information on the costs and policy responses associated with banking
crises. The database on banking crises episodes is further complemented with dates for
sovereign debt and currency crises during the same period. The paper contrasts output
losses across different crises and finds that sovereign debt crises tend to be more costly
than banking crises, and these in turn tend to be more costly than currency crises. The
data also point to significant differences in policy responses between advanced and
emerging economies.

6. MC Keeley -A fixed-rate deposit insurance system provides a moral hazard for

excessive risk taking and is not viable absent regulation. Although the deposit insurance
system appears to have worked remarkably well over most of its 50-year history, major
problems began to appear in the early 1980's. This paper tests the hypothesis that
increases in competition caused bank charter values to decline, which in turn caused
banks to increase default risk through increases in asset risk and reductions in capital.
7. Joseph M. et al (1999)- The study investigates role of technology on Australian
banking sector and 300 customers were surveyed. The findings suggested that except
from convenience/accuracy and efficiency e banking services did not match with
importance rating specified by customers.

8. Lassar, et al (2000)- The study compared two models, that is , SERVQUAL and
technical/functional quality model of technology using 65 bank customers using
SERPERF SCALE. The findings revealed that technical/functional quality model was
better than SERVQUAL because latter was lacking technical dimensions. 2 models
 were having distinct and unique strength for measuring service quality aspects. Bahia,
K and J Nantel (2000)- The paper suggested an alternative scale for measuring service
quality in retail banking. The study developed a scale called as Banking Service Quality
Scale which contained factors like effectiveness and assurance, access, price, tangibles,
service portfolio and reliability. This model was found to be more reliable than
SERVQUAL Jamal, A.,

9. Naser, K., 2002-The study examined key drivers of customer satisfaction using 167
customers and it was found that core and relational performances had impact on
customer satisfaction and there was negative relationship between customer expertise
and customer satisfaction

10. Sureshchandar et al(2002).- The study examined relationship between service quality
and customer satisfaction in Indian banking sector. These were found to be independent
but closely related. Both constructs vary significantly in core services ,human element,
systematization of service delivery, tangibles and social responsibility.

11. Gani A,Mushtaq Bhatt(2003)-The study is conducted to do a comparative study of

service quality of commercial banks and its dimensions in commercial banks.
SERVQUAL is used and sample size was 800 customers. The study found out that
CITI bank and Standard chartered bank are good in tangibility and in reliability also
they are good. In responsiveness parameter Indian banks are inferior to foreign banks.
In Assurance and empathy Indian banks are inferior.
12. Navdeep Aggarwal and Mohit Gupta (2003)- This study basically finds out the
primary dimensions and sub dimensions of service quality. Informal structured
interviews are conducted with branch managers and academicians to formulate a
banking service quality model. The study found out that service time and personal
interactions are very important along with ambience for service quality
13. Zhou, L( 2004)- The study analysed impact of service quality in banks on customer
satisfaction in china’s retail banking and it was found out that reliability and assurance
were the primary drivers of customer satisfaction. It was also found out that there were
significant variations in expectations and perceptions in customers

14. Debashis and Mishra(2005)-The study analysed and measured customer satisfaction
in branch services provided by nationalized banks in northern India . 1200 customers
were given questionnaires and it was found out that computerization, accuracy in
transactions, attitude of staff and availability of staff influenced customer satisfaction.
Least important factor was promotion of the products and various schemes.

15. Mushtaq M Bhat (2005)- This study finds out service quality parameters in bank
through SERVQUAL and influence of demographic variables . The study was limited
to SBI,PNB ,Jammu and Kashmir bank Citi bank and Standard Chartered Grind lay’s
bank. Sample size was 800 and study found out that foreign banks are better than
Indian banks. SBI was found to be relatively poor on reliability and responsiveness.
Banks in Delhi were comparatively better in service quality

16. Alka Sharma,Varsha Mehta(2005)-The study focuses on service quality of four

leading banks and their comparison.
17. Joshua A J, V Moli, P. Koshi (2005)- The study evaluated and compared service
quality in old and new banks using sample size of 480. The study found out that
customers were satisfied in reliability, empathy and price and for other parameters the
difference between expectations and perceptions were smaller than public sector banks
18. Mohammad et al(2005)- The study tries to develop a comprehensive model of
banking automated service quality taking into consideration unique attributes of each
delivery channel and other dimensions which influence service quality

19. Raul and Ahmed(2005)-The study investigated customer service in public sector
banks in 3 districts in Assam and it was found that customers were dissatisfied with the
management, technology and interactive factors along with high service charges.
Communication gap was the root cause of poor service and service was different in
rural and urban sectors

20. Sharma and Sharma( 2006)-The study analysed customer delight in urban consumer
banking. The study found out that customers were satisfied with loan facilities, bank
environment, routine work procedures, location ,interest rates etc and were dissatisfied
with loan formalities and promotion through media.

21. M Sathye -Quantifies the factors affecting the adoption of Internet banking by
Australian consumers. The sample for this survey was drawn from individual residents
and business firms in Australia. Shows that security concerns and lack of awareness
about Internet banking and its benefits stand out as being the obstacles to the adoption
of Internet banking in Australia. Suggests some of the ways to address these
impediments. Further suggests that delivery of financial services over the Internet
should be a part of overall customer service and distribution strategy. These measures
could help in rapid migration of customers to Internet banking, resulting in considerable
savings in operating costs for banks.
22. Amruth Raj Nippatlapalli (2013) In his research paper “A Study on Customer
Satisfaction of Commercial Banks: Case Study on State Bank of India”. This paper
present Customer satisfaction, a term frequently used in marketing, is a measure of how
products and services supplied by a company meet or surpass customer expectation.
Customer satisfaction is defined as "the number of customers, or percentage of total
customers, whose reported experience with a firm, its products, or its services (ratings)
exceeds specified satisfaction goals."Banking in India originated in the last decades of
the 18th century. The first banks were The General Bank of India, NOW which started
in 1786, and Bank of Hindustan, which started in 1790; both are now defunct. The
oldest bank in existence in India is the State Bank of India, which originated in the
Bank of Calcutta in June 1806, which almost immediately became the Bank of Bengal.
This was one of the three presidency banks, the other two being the Bank of Bombay
and the Bank of Madras, all three of which were established under charters from the
British East India Company. For many years the Presidency banks acted as quasi-
central banks, as did their successors. The three banks merged in 1921 to form the
Imperial Bank of India.

23. Mr. Vijay Prakash Gupta & Dr. P. K. Agarwal (2013) In their research paper
“Comparative Study of Customer Satisfaction in Public Sector and Private Sector
Banks in India”. This paper gives with the introduction of liberalization policy and
RBI's easy norms several private and foreign banks have entered in Indian banking
sector which has given birth to cut throat competition amongst banks for acquiring
large customer base and market share. Banks have to render various types of services to
its customers and if the customers are not satisfied with the services provided by the
banks then they will defect which will impact economy as a whole since banking
system plays an important role in the economy of a country, also it is very costly and
difficult to recover a dissatisfied customer. Since the competition has grown manifold
in the recent times it has become a herculean task for organizations to build loyalty, the
reason being that the customer of today is spoilt for choice. It has become imperative
for both public and private sector banks to perform to the best of their abilities to retain
 their customers by catering to their explicit as well as implicit needs. Many a times it
happens that the banks fail to satisfy their customer which can cause huge losses for
banks and there the need of this study arises. The purpose of this research article is to
examine the customer satisfaction among group of customer towards the public sector&
private sector banking industries in India. Study is cross-sectional and descriptive in
nature. The researcher tries to makes an effort to clarify the Customer Service
satisfaction in Indian banking Sector. Descriptive research design is used for this study,
where the data is collected through the questionnaire. The information is gathered from
the different customers of the two banks, viz., PNB and HDFC Bank located in the
Meerut Region, Uttar Pradesh. Hundred bank respondents from each bank were
contacted personally in order to seek fair and frank responses on quality of service in
banks.
24. The service quality model developed by Zeithamal, Parsuraman and Berry (1988)
has been used in the present study. The analysis clearly shows that there exists wide
perceptual difference among Indian (public sector) banks regarding overall service
quality with their respective customers, when compared to Private sector banks.
Whereas the said perceptual difference in private banks is narrow.
25. Ms. Nisha Malik & Mr. Chand Prakash Saini (Jul 2013) In their research titled on
“Private Sector Banks Service Quality and Customer Satisfaction” A Empirical Study
two Private Sector Banks”. This research paper is an effort to examine the relationship
between service quality and customer satisfaction of two private sectors bank of India.
Service quality has been described as a form of attitude that results from the
comparison of prospect with recital
26. (Cronin and Taylor, 1992, Parasuraman et al, 1985). Gronroos 1982) argued that
customers, while evaluating the quality of service, compare the service they expect with
perceptions of the services they actually receive. Since financial products offered by
various banks any particular bank of product of any bank is preferred than others a
matter of interest for academician as well as banking industry. They may be difference
between customers of public and private sector banks, but why are two banks of one
sector being preferred differently by customers. This research study is an effort to find
out the answer of these questions.
27. Vijay M. Kumbhar (2011) In his research paper “Factors Affecting the Customer
satisfaction In E-Banking: Some evidences Form Indian Banks”. This study evaluates
major factors (i.e. service quality, brand perception and perceived value) affecting on
customers’ satisfaction in e-banking service settings. This study also evaluates
influence of service quality on brand perception, perceived value and satisfaction in e-
banking. Required data was collected through customers’ survey. For conducting
customers’ survey liker scale based questionnaire was developed after review of
literature and discussions with bank managers as well as experts in customer service
and marketing. Collected data was analyzed using principle component (PCA) using
SPSS 19.0. A result indicates that, Perceived Value, Brand Perception, Cost
Effectiveness ,Easy to Use, Convenience, Problem Handling, Security/Assurance and
Responsiveness are important factors in customers satisfaction in e-banking it explains
48.30 per cent of variance. Contact Facilities, System Availability, Fulfillment,
Efficiency and Compensation are comparatively less important because these
dimensions explain 21.70 percent of variance in customers’ satisfaction.
Security/Assurance, Responsiveness, Easy to Use, Cost Effectiveness and
Compensation are predictors of brand perception in e-banking and Fulfillment,
Efficiency, Security/Assurance, Responsiveness, Convenience, Cost Effectiveness,
Problem Handling and Compensation are predictors of perceived value in e-banking.

28. Krishnamoorthy, V. and Dr. Srinivasan. (2013) found and explained; that banks are
finding difficulty in retaining their existing customers, for which either they need to
come up with innovating, customized products or they need to develop trust with their
customers and maintain the relation with them.
CHAPTER:3

Research Methodology:

i. Nature of study
This study will be descriptive and analytical in nature. The study is to analyses the awareness of
banking product among bhandup west . The study analyses the awareness about the banking
product knowledge of students.

ii. Population and Sampling

Population:

The population of the study consists of the currently college going students and those are
levening in Bhandup which located in suburban area of Mumbai.

Sampling:

As the study is proposed to be indicative in nature, the samples is 50. The sampling method is
random sampling. Questionnaire is spread randomly in students to survey on their banking
awareness of products.

iii. Primary Objective:

 To know awareness about banking product which is provided by bank among
students.
 To analyze the savings habit of the students
 To know the which banking product is beneficial for people and in which product
they were investing
 To know the basic banking knowledge and their thinking about bank product
 To suggest measures as to increase the banking product awareness among the college
students those unaware with the banking product

iv. Location of study:

The study is conducted in Bhandup West . The area is selected is used to study of day to day
banking product amongst people or students in this region.
 v. Limitations:

The following limitation are considered during preparation of research project:

 Study restricted to Bhandup area of Mumbai suburbs

 Study restricted to research on among post graduation students
 Study restricted to research on students who is currently attending college
 There are many students and persons who are unaware with the many banking
product
 There are many students who are not responding to the questionnaire
vi. Data collection:

Research involves getting primary and secondary data. The primary data is collected from
sample of total population represent the universe. The data is collected for the purpose of
study with the help of a questionnaire from the respondents belonging to bhandup. The
questionnaire is prepared and data collected from Google Form.

Secondary data required for the study is collected from previous research reports available on
related topics, journals and web resources. Secondary data is used for the study the previous
results, for detailed introduction and for literature review.

CHAPTER: 4 Data Analysis

Q.1) What is your age?

Out of 50 people responses 62% population belongs to 16-25 years age, 18% population belongs
to 26-35 years age , 14% belongs to 36-45 years age and 6% people belongs to 45& above years
age.

Q.2) What is your qualification?

Out of 50 responses provided 52% people are graduate, 36% people are post graduate,
8% people are secondary i.e 12th and 4% people are primary i.e 10th pass.

Q.3) your gender?

Out of 50 responses 54% persons are female , 46% persons are male and 0% are prefer
not to say.

Q.4) Your occupation?

Out of 50 responses 40% of people are unemployed (20 people unemployed), 24% of
people are salaried employee ( 12 salaried employee), 22% of people are professional (
11 professional) and 14% of people are self employed ( 7 people).

Q.5) Are you aware with banking product?

from above chart 74% of people are aware with banking product i.e 37 people knows ,
20% of people are unaware with banking product i.e 10 people and 8 % of pepole halfly
knows and halfly are unaware.
Q.6) In which banking product do you invest?

Out of 50 persons 58% of people invest their money in saving A/c of banking product,
38% of people select fixed deposit A/c from banking product, 24% of people would like
to invest in Recurring A/c and 22% of people go for car and home loan and 18% of
persons who invest in other i.e mutual funds, shares etc.
Q.7) Which product as per your opinion is beneficial?

Out of 50 responses 24 persons says that fixed deposit is more beneficial then other, 19 persons
says that saving A/c is beneficial, 13 persons says that loans is better then other product , 30% of
peoples opinion about recurring is beneficial and 24% of persons are other product of banking.
Q.8) AS per above question no. 7, state the reasons why it is beneficial to you?

As per question no.7 Out of 50 responses 50% of person says that it is risk free, 42% of person
says that it is for emergency purpose, 34% of says that it is more convince than other, 28% of
person says that it is easy way to invest in banking product and 20% are in other.
Q.9) Are You satisfied with banking product?

Out of 50 responses 62% of people are satisfied with banking products, 20% of people are not
satisfied with banking products and 18% of people may be satisfied with the products.
Q.10) Is it profitable to invest in banking product comparing with other investment product?

From above pie chart 40% of responses says that it is profitable to invest in banking products,
20% of responses invest in other investment and 40% of responses says that may be it is
profitable to invest in banking product as compare to other product or investment.
Q.11) Finally, is there any other information would you like to share?

From above diagram out of 50 only 20 people response to this question in that 50% of responses
give no information, 5% of responses says that they don’t know more about banking product,
5% of says that it depends on investment, 5% of says that it beneficial by investing in share and
5% of responses says that they are unaware with banking product.
CHAPTER: 5

Conclusion

As per detailed analysis of data it is found that the overall banking product uses and
knowledge amongst people in bhandup west are poor as compared to global standard.
The whole part of data is collected from the currently leaveing people in bhandup east
age of 15 to 45 & above years of age. It is also observed that the most of data is collected
from 15-20 years which shows that people or students in this age group posses less
awareness of banking product.

There is more focus needs to be given on increasing awareness of bnking product

amongst all the people or students of different area or faculties as awareness of banking
product is needed to grow in future and students are aslo future of country. So proper
knowledge of banking product is need to be present in them.

Regarding personal information in one question which asked that any other information
would you like to share? Only 5% of people response that they are unaware with the
banking product or they don’t know about much and some of want to invest in other
product or investment.

Regarding day to day banking in one question asked is it profitable to invest in banking
product? Some of people says that yes it is but some of says that the other investment is
beneficial or profitable to invest. Less % of people invest their money in home loan or car
loan.

As per using primary method of Google Form by preparing questionnaire I observed that
most of people invest saving and fixed deposit of banking product. these is indirectly
shows that lack of awareness of banking product among people leavening in bhandup
east .
Regarding basic banking knowledge one question asked with respect to why it is
beneficial to you? Most of replied as it is risk free , some of replied that it is emergency
purpose and some of replied that it is for conveyance purpose, some of replied other
purpose.

Regarding basic banking product knowledge one question asked are you aware with
banking product? Most of replies come as yes and may be or no. This shows they don’t
clear about banking product knowledge. This also means people or students posses
negative knowledge about banking product.

Banking product awareness is necessary to present as helpful for the economic growth. If
is not present in people then economic growth would not meaningful.

Overall it is concluded that the students or people does not have basic knowledge of
banking product with respect to in which banking product have to invest. It is necessary
to create awareness of banking product among people.
BIBLIOGRAPHY:

References

1. "Bank of England". Rulebook Glossary. 1 January 2014. Retrieved 13 July 2018.

2. Hoggson, N. F. (1926) Banking Through the Ages, New York, Dodd, Mead & Company.
3. Goldthwaite, R. A. (1995) Banks, Places and Entrepreneurs in Renaissance Florence,
Aldershot, Hampshire, Great Britain, Variorum
4. "Banking 2010" (PDF). TheCityUK. pp. 3–4. Archived from the original (PDF) on 2012-
06-15. Retrieved 2011-06-20.(638 KB) charts 7–8
5. From Wikipedia, the free encyclopedia https://en.wikipedia.org › wiki › Bank
6. FAM Nawi, AS Yazid, MO Mohammed - International Business Research, 2013 -
mbri.ac.ir
7. Y Saini, G Bick, L Abdulla - South African Journal of Economic and …, 2011 -
scielo.org.za
8. MS Sohail, B Shanmugham - Information sciences, 2003 – Elsevierf

9. shodh.inflibnet.ac.in › jspui › bitstream › 03_literature review

10. by PV Ranjith - 2012
11. The service quality model developed by Zeithamal, Parsuraman and Berry (1988)
12. Amruth Raj Nippatlapalli (2013) In his research paper “A Study on Customer
Satisfaction of Commercial Banks: Case Study on State Bank of India”.
 Questionnaire

Q.1. What is your Age?

o 16-25
o 26-35
o 36-45
o 45& above

Q.2. What is your Qualifications?

o Primary
o Secondary
o Graduate
o Post graduate

Q.3. What is your Gender?

o Female
o Male
o Prefer not to say

Q.4. Your Occupation ?

o Self employed
o Salaried employee
o Professional
o Unemployed

Q.5. Are you aware of banking products?

o Yes
o No
o May be
Q.6. In which banking product do you invest?

o Car/Home loan
o Saving Account
o Recurring Account
o Fixed Deposit
o Other

Q.7. Which product as per your opinion is beneficial?

o Fixed Deposit
o Saving Account
o Loans
o Recurring Account
o Others

Q.8. As per above question no.7, State the reasons why it is beneficial to you?

o Risk Free
o Easy Way
o Emergency Purpose
o Convince
o other

Q.9. Are you satisfied with the banking product?

o Yes
o No
o May be

Q.10. Is it profitable to invest in banking product comparing with other investment product?

o Yes
o No
o Maybe

Q.11. Finally, is there any other information would you like to share?