1

PROJECT REPORT
(SUBMITTED FOR THE DEGREE OF B.COM. HONOURS IN ACCOUNTING & FINANCE UNDER
THE
UNIVERSITY OF CALCUTTA)

Title Of The Project

GROWTH OF ONLINE BANKING IN INDIA

SUBMITTED BY

NAME OF THE CANDIDATE : RAJ SANTRA

SECTION : B.COM(H),3RD YEAR,6TH SEM.
REGISTRATION NO : 141-1111-0159-20
ROLL NO : 201141-21-0077

SUPERVISED BY

NAME OF THE SUPERVISIOR : PROF. DR. BADAL BARAI

DESIGNATION : ASSISTANT PROFFESSOR IN COMMERCE
NAME OF THE COLLEGE : ACHARYA GIRISH CHANDRA BOSE COLLEGE

MONTH & YEAR OF SUBMISSION

MAY, 2023
 2

Supervisor's Certificate

This is to certify that Raj Santra a student of B.Com Honours in Accounting &
Finance in Business of Acharya Girish Chandra Bose College under the University
of Calcutta has worked under my supervision and guidance for his Project Work
and prepared a Project Report with the title “Growth of Online Banking in
India” which he is submitting, is his genuine and original work to the best of my
knowledge.

Place:-
Date:-

Signature
 3

Student's Declaration

I hereby declare that the Project Work with the title “Growth of Online Banking
in India” submitted by me for the partial fulfillment of the degree of B.Com.
Honours in Accounting & Finance in Business under the University of Calcutta is
my original work and has not been submitted earlier to any other University
/Institution for the fulfillment of the requirement for any course of study. I also
declare that no chapter of this manuscript in whole or in part has been
incorporated in this report from any earlier work done by others or by me.
However, extracts of any literature which has been used for this report has been
duly acknowledged providing details of such literature in the references.

Place:-Kolkata
Date:-
Name:-Raj Santra
Address:- Singhipara, Nandankanan(E)Dankuni,Hooghly
Registration No:- 141-1111-0159-20
CU Roll No:- 201141-21-0077
 4

ACKNOWLEDGEMENT
I would like to express my extreme gratitude to Prof. Dr. BADAL BARAI for
providing his valuable time and inputs without which the completion of this
project would not have been possible. I am extremely thankful to him not only
for his valuable assistance but also for his moral support which motivated me
from time to time to complete this project. I would like to thank my friends and
colleagues for their help and support during the making of this project. Their
inputs added many colours and variety to my project.
 5

TABLE OF CONTENT

Chapter Particulars Page

no. no.
1 INTRODUCTION: 6-11
1) Background of Study
2) Literature Review
3) Research Gap
4) Objectives of Study
5) Research Methodology
6) Limitation of Study

2 Conceptual Framework 12-21

1) Concept
2) Industry Profile
3) Company Profile
4) National Scenario
5) International Scenario
6) SWOT/SWOC analysis
3 Presentation of Data, Analysis & Findings 22-30

4 Conclusion & Recommendation 30-31

Bibliography 31
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CHAPTER : 1

INTRODUCTION
Background of Study:-
The internet banking is changing the banking industry and is having the major effects on
banking relationships. Even the Morgan Stanley dean witter internet research
emphasized that web is more important for retail financial services then for many other
industries. Internet banking involves use of internet for delivery of banking products &
services. It falls into four main categories, from Level 1 – minimum functionality sites that
offer only access to deposit account data – to Level 4 sites – highly sophisticated offering
enabling integrated sales of additional products and access to other financial services –
such as investment and insurance. In other words a successful internet banking solution
offers
 Exceptional rates on savings, CDs, and IRAs.
 Checking with no monthly fee, free bill payment and rebates on ATM surcharges.
 Credit cards with low rates
 Easy online applications for all accounts, including personal loans and mortgages.
 24 hour account access.
 Quality customer service with personal attention

Purpose of the Study:-

The main purpose of this study to get an overview of the internet banking sector in The
Indian economy and study as to how it has helped change the banking habits of various
individuals.
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1.2-Literature Review:-
 Dannenberg and Kellner (1998), in their study, overviewed the opportunities for effective utilization of
the Internet with regard to the banking industry. The authors evaluated that appropriate application of
today’s cutting edge technology could ensure
 8

the success of banks in the competitive market. They valuated the services of banks via internet as
websites provide sophisticated line of products and services at low price. The authors analyzed that
transactions via internet reduce the risk of data loss to customers, chance to cut down expenses, higher
flexibility for bank employees, re-shaping the banks’ image into an innovative an technologically leading
institute, etc. The researchers found that banks could move one step further by entering into a strategic
alliance with internet service provider. So the bank of tomorrow stands to be feasible with today’s
technology.
 Daniel (1999), in his research paper, described e-banking as the newest delivery channel offered by the
retail banks in many developing counties. The objective of the study was to analyze the current
provision of electronic services of major retail banking organization in the UK. The researcher thought a
questionnaire found that 25% in the UK were those already providing e-banking services, 50% banks
were testing or developing such services while 25% were not providing any e-banking services.
Electronic channels, PC, digital TV and all these provide greater accessibility and services at lower price.
To make services more adaptable, customers should provided maximum choice and convenience.
Restriction and limitation within organization to operate the services and its market share or strength
were viewed as important to decide and operate the e-banking services.
 Sureshchander and Rajendran (2003), in their paper, focused on investigating the important factors of
customers’ perceived quality in banks of developing economy like India. The authors had taken 15 public
sector banks, 14 private banks and 14 foreign banks for the period under study. The researcher found
that there seems to be a great variation in respect of services offered by three groups of banks. They
used core services such as human element, systemization of services, tangibility of services and
social responsibility as critical factors. They analyzed that three groups of banks in India seem to vary
significantly in terms of service quality factors but from the customers perception of service quality, it
could be acceptable only if could be acceptable only if customers’ need could be satisfied at the right
time in a right manner.

 Slam (2006), in his study observe that the effects of electronic banking on the profitability of Jordanian
banks. The study investigated the reasons behind providing electronic banking service through internet,
their impact on banking service in general, and banks profitability in particular. The result of the study
revealed that electronic infrastructure, cost of training to employees and also the cost involved in
creation of environment where the banks can operate smoothly. However, these services had a positive
impact in the long run on the profitability of banks. The researcher recommended that banks need to
carry out awareness and promotion campaigns to educate clients aware them of feasibility through
 9

reduce time, cost, effort and also to hold training courses for employees to understand the e-banking
business strategies.
 Kautish (2008), describe the paradigm shift of banking sector from traditional banking toonline banking.
The objective of the paper was to discuss the derivation of value added tool of online banking system
which was used to attract new customers and retain the existing ones. It helped the banks to acquire
more business from existing customers. People preferred to use online banking because of its
availability, better performance, ubiquity, speed and its effectiveness. Further, the author discussed two
bank models integrated banking model where the banks provide internet banking service as an
extension to their basic services like ATM and mobile banking. So, it is a kind of hybrid approach and the
other was stand alone internet banking model, where the banks totally rely on the channel. To improve
the service through e-banking, banks should think from the customers’ perspective and there should be
creativity and innovation in designing and implementation of e-banking was a relatively new concept in
the global banking scenario so the best of this concept was yet to come.

Research Gap:-

The research into adoption of new technology domain has attracted many researchers and practitioners as
well. Internet banking is one of the most important information technology applications. A review of the
literature indicated that past studies dealt with the internet banking issue from many angle every researcher
has provided the factors that influence behavioralintension from his or her point of view. The majority of the
past studies focused on exploring factors that affect the adoption or intension to accept internet banking
services for ex: convenience of internet banking transactions, internet experience (Awamleh, 2005), bank’s
web design and transaction speed (Yoon, 2010), switch caused , offline loyalty and offline trust (lee , Tsai and
lanting,2011).however, several studies have investigated the effect of internet banking service quality on
adoption .for ex: Broderick and Vachirapornpuk (2002), Joseph and stone (2003) ,Khan and Mahapatra
(2009), Zarei (2010) indicated that the internet banking service quality play a significant role in influencing the
adoption of internet banking services . At the same time, other previous studies have paid attention to
security and perceived risk.
 10

Base on the researcher knowledge, there has been no study that investigated the relationship between
individual technology readiness and their intention toward the adoption of internet banking services. The
technology readiness refers to “people’s propensity to embraceand use new technology for accomplishing
goals in home life and at work”. Technology readinessreflect an overall state of mind; it is not a measure of
competence, it describes a person not the technology.

As far as the researcher knowledge there is no internet banking study that focuses on the irrational
dimension (i.e. Innovativeness, optimism, discomfort and insecurity) in the past studies. Furthermore the
reviews of the existing literature of technology readiness have also rebuild that there is no previous study
conducted into technology readiness in the domain of internet banking therefore there is an opportunity for
the researcher to conduct research and bridge this gap in the internet banking research field. Moreover,
findings from previous models about the influences of difference variables on individual intension to accept
new technology are inconsistent . There is a contradiction between previous technology models , which one
model includes some variables, whereas other models omitted them out for ex: UTAUT ignored attitude ,
while other theories (TRA, TAM, TPB and DTPB) considered it as one of the most important variable.

One major criticism of the technology acceptance theories/model is that they have not taken into account
irrational dimension influence. The research to date has tended to focus on specific factors (i.e. attitude,
subjective norms and perceived behavioral control) rather than irrational/emotional dimension(i.e.
optimism, innovativeness, skepticism and discomfort) that significantly technology readiness , which in term
has significant role in influencing individual intension to accept to reject a new technology (Chen and li,
2010, Berndt, Saunders and petzer
,2010;Chan and lin ,2010).

Objectives of the Study:

Objectives of a project tell us why project has been taken under study. It helps us to know more about the
topic that is being undertaken and helps us to explore future prospects of thetopic. Basically it tells what all
have been studied while making the project.
The various research objectives of the study are:
1. To study the internet banking facilities offered by the banks to its customers
 11

2. To study as to how much internet banking has penetrated in the minds

ofthecustomers
3. To gain insights about functioning of internet banking.
4. To explore the future prospects of internet banking.
5. To study the benefits that are provided to the individual under internet banking

Research Methodology:-
The study is concerned with the banking industry in India. Post-liberalization, privatization and globalization
period has shown transformation in banking industry. Particularly, with the introduction of IT in banking
industry a lot of changes have taken place in public sector banks but slowly whereas in new private sector
banks and foreign banks working in India, these changes have come at fast pace because these banks
are fully computerized by birth. Many public sector banks are managing transformation manually not
through IT channels (due to some internal and external constraints) but on the other hand new private
sector banks and foreign banks are managing whole process through e-channels. New private sector banks
and foreign banks as compared to public sector banks provide many new products and services.

The study is confined to Indian Banking Industry. Hence, the universe of the study is banking industry of
India. The performance is analyzed on bank, bank group and industry level. Four bank groups and further
four banks from each bank group have been selected for the study. The study is descriptive and empirical in
nature where secondary and primary data is used to address the objectives. The Indian banking industry was
divided into four major bank groups for the purpose of the required analysis:

Public Sector Banks

(SBI and its Associates-7 and Nationalized Banks - 19) (26 Banks)
Old Private Sector banks (15 Banks)
New Private Sector banks (07 Banks)
Foreign Banks (32 Banks)

Limitation of Study:-
The major Limitation of the study are:

 A small sample size respondent is taken to primary data analysis. So I cannot draw
properinferences about the respondent from this sample size
 I have not used modern statistical tools to analysis the data.
 Due to shortage of time I have not been able to make a depth study.
 I could not collect data from out site of new market.
 This study is based on the prevailing respondents’ satisfaction. But their satisfaction
maychange according to time, fashion need etc.
 12

CHAPTER: 2
CONCEPTUAL FRAMEWORK
Concept (Definition, advantages & disadvantages).

Definition:

 Online banking is an electronic payment system that enables customer of a financial

institution to conduct financial transaction on a website operated by the institution,
such as a retail bank, virtual bank, credit union or building society. Online banking is also
referred as internet banking, e-banking, virtual banking and by other terms.
 Online banking or E-banking is an umbrella term for the process by which a customer
may perform banking transaction electronically without visiting a brick-and-mortar
institution.
 Online banking is the practice of making bank transaction or paying bills via the internet.
Thanks to technology, and the internet in particular, people no longer have to leave the
house to shop, communicate, or even do their banking.

Advantages:

To the customer:

 Anywhere banking no matter wherever the customer is in the world. Balance

enquiry, request for services, issuing instructions etc., from anywhere in the world is
possible.
 Anytime Banking-Managing funds in real time and most importantly, 24 hours a day, 7
days a week.
 Brings down “Cost of Banking” to the customer over a period of time.
 Cash withdrawal from any bank/ATM.
 On-line purchase of goods and services including online payment for the bank

 Innovative, scheme, address competition and present the bank as technology driven in
 13

 thebanking sector market.

 Reduces customer visits to the branch and thereby human intervention.

 Inter-branch reconciliation is immediate thereby reducing chances of fraud and

misappropriation.
 On-line banking is an effective medium of promotion of various schemes of the bank, a
marketing tool indeed.
 Integrated customer data paves way for individualized and customized services.

Disadvantages:
 A customer may have to face some risky transactions and frauds.
 Failure or interruption of power supply cause to break down in e-banking.
 Financial loss of heavy income at times of settlement of higher magnitude.
 Cost to be incurred for training the staff may not be profitable.

Industrial Profile
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
It’s 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 regular policy for Indian bank since 1969 has paid rich dividends with the nationalization
of 14 major private bank of India.Not a long ago, an account holder had to wait for hours at the bank
countries for getting a draft or for withdrawing his own money. Today, he has a choice. Gone are days
when most efficient bank transferred money from one branch to another in two days. Now it is simple as
instant messaging or dial a pizza. Money have become the order of the day.
The first bank in India, though conservative, was established in1786 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.
 Nationalization of Indian Banks and upto 1991 prior to Indian banking
sectorreforms.
 New phase of Indian Banking System with the advent of Indian Financial &
BankingSector Reforms after 1991.
 14

The General Bank of India was set up in the year 1786. Next came Bank of Hindustan and Bengal Bank. The
East India Company established Bank of Bengal(1809), Bank of Bombay(1840) and Bank of Madras(1843) as
independent units and called it Presidency Banks. These three banks were amalgamated in1920 and imperial
bank of India was established which Started as private shareholders banks, mostly European shareholders.

In 1865 Allahabad bank was established and first time exclusively by Indians , Punjab National Banks Ltd.
was set up in 1894 with headquarters at Lahore.Between1906 and 1913, Bank of India, Central Bank of
India, Bank of Baroda, Canara Bank,Indian Bank and Bank of Mysore were set up. Reserve Bank of India
came in 1935.During the first phase of growth was very slow and banks also experienced periodic failures
between 1913 and 1948. There were approximately1100 banks, mostly small. To streamline the functioning
and activities of commercial banks, the government of India came up with TheBanking Companies Act,
1949 which was later changedto Banking Regulation Act 1949 as per Amending Act of, 1965(Act No.23 of
1965). Reserve Bank of India was vested with extensive powers for the supervision of banking in India as the
Central Bank Authority.Government took major steps in this Indian Banking Sector Reform after
independence. In 1955,It nationalized imperial bank of India with extensive banking facilities ona large scale
especially In rural and semi urban are.It formed State Bank of India to act as the principal agent of RBI
and to handle banking transactions of the Union and State Governments all over the country.Seven banks
forming subsidiary of State Bank of India was nationalized in 1960 on 19th july,1969. 14 major commercial
banks in the country was nationalized. This phase has introduced many more products and facilities in the
banking sector in its reforms , in 1991 , a committee set up by his name which worked for liberalization of
banking practices.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 then 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 aflexible exchange rate
regime , the foregin reserves are high , the capital account is not yet fully convertible , and banks and theur
customers have limited faregin exchange exposure.

Company Profile:
 In early 1990’s more than 7000 branches were using traditional manual procedures.
 Thesemanual procedures wereinherited from the imperial bank.
 Traditionalprocedureswereevolved over decades.
 Very few changes were brought in those procedures as per the need of time.
 In that time, mainframe or mini computers were used for MIS,RECONCILLATION& FUND
SETTLEMENT PROCESS, or we can say that for backhand operations purpose.
 15

Changes brought in information Technology by ALLADHABAD BANK:-

 In the next decades internet facility was provided for individuals
 All ALLADHABAD BANK branches were connected and ATM’S were launch
 2001- KMPG appointed consultant for preparing IT Plan for the bank.
 Later on Core banking proposed by the IT consultancy company.
 All ALLABAD BANK branches were connected and ATM’S were launch

 2001 – KMPH appointed IT Plan for the bank.

 Later on Core banking proposed by the IT consultancy company.
 2002 – All branches computerized but on decentralized system , there theinitiative of
core Banking took place
 2008 –more than 6500 branches (95%Of business ) on Core Banking solution(CBS)
 Internet Banking facility for corporate customers were also launched in early2008
 More Interfaces developed with e- Commerce &other sites through alternatechannels
like ATM&Online Banking
 All Foreign Offices were brought on centralized Solution
 Large Network is playing the role of backbone for connectivity across the country
 Multiple service providers are providing the links –BSNL, MTNL, Reliance,Tata& Reliance
which are making the system errorless and provide high speed.
 Multiple technologies to support the networking infrastructure-Leased lines, Dial- up,
CDMA & VSAT
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NATIONAL SCENARIO OF ONLINE BANKING

Internet banking has become an integral part of banking system in India. The concept of e-banking is of
fairly recent origin in India. Till the early 90’s traditional model of banking i.e. branch based banking
was prevalent, but after that non-branch banking services were started. The Indian Government
enacted the IT Act, 2000, with effect from the 17th October 2000. To examine different aspects of internet
banking RBI set up a committee on Internet Banking. The committee has focused on three major area of
Internet Banking, Technology and security issues, legal issues and regulatory and supervisory issues. RBI
had accepted the suggestions and recommendations of the working committee and accordingly issued
guidelines to banks to implement internet banking in India. The old manual systems which were
prevalent in Indian Banking for centuries seem to replace by modern technologies.

Table no. 1,2 and 3exhibit a few facts and figures related to internet/electronic banking to present its
current scenario. Table 1
Shows evidence for ATM, POS (Point of sale) and electronic cards
(credit& debit cards) deployed and issued by the schedule commercial bank(SCBs) in India as on
December 2014. It also provides evidence of growing statistics of mobile banking users in India. According
to it, currently 1,76,410 ATM,10,58,642 Point of sale devices,20.36 million credit cards and 500 million
debit cards are working in India and 35.5 million bank customers are using mobile banking .Table also
shows growth rate of these banking channels and it seems to be great in Indian context. Table no. 2
shows current transaction statistics performed through these banking delivery channels. As high as
6090.98 million transactions are electronically done through ATM s. Table no. 3 shows NEFT and RTGS
transactions performed in the current financial year 2014-15. Table no. 4 shows the increasing growth
interest users.
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Table no. 1

Type of internet/electronic No. of channels

Channels

Year Growth in %

2010 2014

No. of ATM deployed (In 60,153 1,76,410 193.27

actual Figure)

No. of POS deployed in (In 5,95,958 10,58,642 77.64

actual Figure)

No. of CREDIT CARDS 18.33 20.36 11.07

issued (In Millions)

No. of DEBIT CARDS 181.97 500.08 174.81

issued (In Millions)

No. of MOBILE BANKING 5.96 35.5 495.64

users (In Million)
 18

Table no. 2

TRANSACTIONS THROUGH INTERNET / ELECTRONIC BANKING DELIVERYCHANNELS

No. of transaction (In Million)

Transaction through Growth in %

No. of transaction (In Million)

Transaction through Years* Growth in %

2011-12 2013-14

ATM 5086.17 6090.98 19.76

POS 645.76 1128.12 74.7

CREDIT CARD 320.42 511.99 59.79

DEBIT CARD 5409.45 6707.1 23.99

MOBILE BANKING 25.55 94.6 270.25

Table no.3
NEFT AND RTGS TRANSACTIONS
No. of Transactions (In Millions)

Transaction Type Years* Growth in %

2010-11 2014-15

NEFT 132 927.55 602.69

RTGS 49 92.75 89.29

Source: compiled from Bank wise ATM/POS/CARD STATISTICS, Reserve Bank of India and Report on
Trends and Progress of Banking in India 2010-11 and RBI website
 19

Table no. 4

INCREASING INTEREST USER IN INDIA

Years

Users 2010 2011 2012 2013 2014

Internet 90,421,849 122,970,441 155,575,944 213,339,324 243,198,922

users

New users 19,486,779 32,548,593 32,605,503 57,763,380 29,859,598

Average 36,452,770

Growth 0% 36% 72% 136% 168%

Source: Internet Live Stats (www.internetlivestats.com)

Internet Banking offers different online services in India. According to a report published by RBI there are
three different levels of banking services offered through internet banking.

The first level i.e. Basic Level Services: It is basically about website which disseminates information
about different services and products offered by banks. It generally includes receiving and replying to
customers’ queries through email.

 The next level i.e. Simple Transactional Website: It allows customers to submit their instructions
applications for different services, queries about their account balance, etc. but do not allow any fund-based
transactions on their accounts.
 The third level i.e. Fully Transactional Website: It allows customers to manage their accounts, facility of
fund transfer, bills payment, ticket booking, avail facility of other banking products and services and
trading in securities etc.

To sustain in the growing competition, commercial banks in India have adopted several initiatives to
improve banking services and to gain competitive advantage.
 Bank of India recently launched its card-less cash withdrawal services. This facility helps
customers to send money to anyone using internet banking or by using ATM, with the help of
receiver’s mobile number.
 ICICI Bank launched 24*7 electronic banking, which is a non-stop for all banking transaction. It
offers facilities such as cheque deposit machine and an electronic kiosk through which
customers can be accessed internet banking services. ICICI Bank has also introduced E-Locker
for its customers. It is a virtual locker, which can be accessed through ICICI internet banking which
do46cuments, agreements, policies and various important certificates.
 The banks are making their presence on social media like Facebook and Twitter for targeting huge
customer base as well as potential customers,there will be round-the-clock tweets and comments
on the banks’ products and services.
 20

International scenario

The advent of Internet has initiated an electronic revolution in the global banking sector. The dynamic
and flexible nature of this communication channel as well as its ubiquitous reach has helped in leveraging a
variety of banking activities. New banking intermediaries offering entirely new type of banking services have
emerged as a result of innovative e-business models. The Internet has emerged as one of the major
distribution channels of banking products and has advent of internet has initiated an electronic revolution in
the services, for the banks in US and in the European countries. Initially, banks promoted their core
capabilities i.e. products, services and advice through internet. Then, they entered the e-commerce market
as providers/ distributors of their own products and services. More recently, due to advances in internet
security and the advent of relevant protocols, banks have discovered that they can play their primary role as
financial intermediate’s and facilitators of complete commercial transactions via electronic networks
especially through the internet. Some banks have chosen a route of establishing a direct web presence while
others have opted for either being participants of a non- financial services centric electronic market place.
The trends towards electronic delivery of banking products and services is occurring partly as a result of
consumer demand and partly because of the increasing competitive environment in the global banking
industry.The internet has changed the customer’ behaviors who are demanding more customized
products/services at a lower price. Moreover, new competition from pure online banks has put the
profitability of even established brick and mortar banks under pressure. However, very few banks have been
successful in developing effective strategies for fully exploiting the opportunities offered by the internet.
 21

SWOT/SWOC ANALYSIS:-

STRENGTH:

 Greater reach to customers.

 Quicker time to market.
 Ability to introduce new products and services quickly and successfully.
 Ability to understand its customers’ needs.
 Customers are given access to information easily across any location.
 Greater customer loyalty.
 Easy online application for all accounts, including personal loans and mortgage.
 24 hours account access.
 Quality customer service with personal attention

Weaknesses:

 Lack of awareness among the existing customers regarding online banking.

 Obsolesce of technology take place very soon specially in terms of security on internet.
 Procedure for applying for ID and password for using service related to online
bankingtakes time
 Lack of knowledge is found regarding in online banking in employees of SBI
 Implementation of newer technology is little bit complicated

 Employees needs training to obtain knowledge regarding internet – banking.

Opportunities:

 Approximately 75% of customers are not using internet banking.

 Core competency can be achieved in terms of banking if focus is made on awareness
ofinternet banking.
 Can become 1st virtual bank of India.
 Concentration of various services should be made using internet banking.

Challenges:

 Maintaining Business Edge over competitors in the context of sameness in IT

infrastructure
 Multiple vender support is necessary for working of highly complex technology
 Maintaining secured IT infrastructure for business operations
 Alternative must be there in case of failure of system.
 22

CHAPTER 3
PRESENTATION OF DATA, ANALYSIS AND FINDINGS

Customers perspection on Online Banking and Traditional Banking

A survey was conducted on online banking in India for the primary data among 25 people. The
analysis of this survey or data is as follows:-

Q1. Do you think online banking is better than traditional Banking?

NO
28%

YES
72%

POLL out of 25: Yes – 72%; No- 28%

FINDINGS: The people understand that online banking is better than the traditional banking
because of its nature.
Q2. Overall, how satisfied are you with our online banking service?

very satisfied
satisfied
neutral
unsatisfied

POLL OUT OF 25:very satisfied-28%; satisfied-40%; neutral-20%; unsatisfied-12%

 23

FINDINGS:Majority of peoples are satisfied with online banking but some peoples are also very
satisfied, neutral, unsatisfied.

Q3. Is Bank –a –net easy to use?

yes
no

POLL OUT OF 25: yes-60%; No-40%

FINDINGS: Majority of people understand that online banking is easy to use because they cansave
their time.

Q4. Do you trust the security of online banking service?

52%
51%
50%
49%
48%
47%
46%
YES NO

Poll out of 25: Yes –52%; No – 48%;

 24

FINDINGS: Majority of the people think that their Account is secured, but not all. Their
security concern should be eradicated. This will attract customers.

Q5. How often do you use online banking?

50%
45%
40%
35%
30%
25%
20%
15%
10%
5%
0%
WEEKLY MONTHLY REGULARLY RARELY

POLLoutof25: Weekly – 20%; Monthly – 44%; Regularly – 8%; Rarely – 28%

FINDINGS: Most of the people do not need the services of banks regularly or maybe there is noneed.
They may transact with the bank on monthly basis for most of the time.

Q6. What type of transaction do you make in online banking?

50%
45%
40%
35%
30%
25%
20%
15%
10%
5%
0%
CHECK BALANCES PAYMENTS TRANSFER OF OTHER
FUNDS

POLL out of 25: Check balances – 44%; Payments – 28%; Transfer of fund – 8%;other -20%
 25

FINDINGS: The utility of the online banking is service is not used to the extent is should be and it is
being majorly used for the purpose of checking the balance in the account. The reason for this is the
low volume of transactions among the people.

Q7.Are you aware of net banking services offered by the banks?

Awareness of internet banking services

No
12%

Yes
88%

POLL out of 25: Yes-88%; No-12%

FINDINGS: Itis good for the banks as most of the respondents were aware of the
internet banking and all the services provided under internet banking.

Q8.In which bank do you have your Acccount?

Account in the respective bank

Others
16% SBI
40%
HDFC
20%

PNB
24%

POLL out of 25: HDFC banks-20%; PNB-24%; SBI-40%; Others-16%

 26

FINDINGS:It was witnessed that today public sector bank State bank of India has the
largest customer base but the private banks are also catching up and after State Bank of
India, PNB and HDFC has the highest customer base .Multi-national banks are also
making their presence noticeable in the Indian scenario.

Q9.Are you aware of the methods which can be undertaken to make

any kind offraud?

Awareness of methods of fraud

Yes
32%

No
68%

POLL out of 25: Yes-32%; No-68%

FINDINGS:It’s pretty tragic but most of the respondents are unaware of the techniques
which can be taken up for any type of fraud.

Q10.Does your bank educate you about the internet banking services
being offered?
 27
Educating about internet banking

No
40%

Yes
60%

POLL out of 25: Yes-60%; No-40%

FINDINGS: Most of the respondents felt that they are not properly educated of
internet banking and its benefits to them.

Q11. What benefits do you see in internet banking?

benefits seen by customers

Time Convenience
10% 16%
Speed
21%
Transparency
53%

POLL out of 25: Convenience-16%; Speed-21%; Transparency-53%; Time-10%

FINDINGS:.Most of the respondents felt that the transparency provided by internet

banking is the highest motivating factor for an individual to use internet banking; rest
speed convenience and time are also the other motivating factors.
 28

Q12.Would you prefer using net banking instead of visiting your bank
every now and then?

Prefer using net banking

No
12%

Yes
88%

Poll out of 25: Yes-88%; No-12%

FINDINGS: It was witnessed that most of the respondents preferred using internet
banking over there conventional banking system. Thus, internet banking has a bright
future ahead.

Q13.Are you aware of the benefits of net banking which are available?

Benefits of Internet banking

No
12%

Yes
88%
 29

Poll Out of 25: Yes-88%; No-12%

FINDINGS: It is pretty amazing to see that most of the respondents are aware of the
benefits of internet banking.

Q14.What are main disadvantages of online banking?

Overall Difficulty
Overall Difficulty of using
of using online
No online banking System
banking System
Disadvantage 32% Lack of assistance
40%

Security Concerns
Security Lack of assistance
Concerns 8%
No Disadvantage
20%

Poll Out of 25: Overall difficulty of using online banking System-32%; Lack of
assistance-8% ; Security Concerns-20%; No Disadvantage-40%
FINDINGS:Most of the respondents felt that no disadvantage provided by internet
banking but some people also face problem like Overall difficulty of using online
banking system,Lack of assistance, Security Concerns.

15Q. Are you started to use more net banking ?

100
%

90
%

80
%

70
%

60
%

50 ye n
 30

Poll out of 25: Yes-12%; No-88%

FINDINGS:Most of the people who are not starting online Banking after
demonetization.

CHAPTER: 4
CONCLUSION
From all of these, we have learnt that information technology has empowered customers and
businesses with information needed to make better investment decisions. At the time, technology is allowing
banks to offers new products, operate more efficiently, raise productivity, expand geographically and
compete globally. A more efficient, productive banking industry is providing services of greater quality and
value.

E-Banking is a generic term for delivery of banking services and products through electronic
channels, such as the telephone, the internet, the cell phone, etc. The concept and the scope of e-banking is
still evolving. It facilitates an effective payment and accounting system thereby enhancing the speed of
delivery of banking services considerably. While E-Banking has improved efficiency and convenience, it has
also posed severe challenges to the regulator and supervisors. Several initiative taken by the government
of India, as well as the RBI, have facilitated the development of e-banking in India. The government of
India enacted the IT Act, 2000, which provides legal recognition to electronic transactions and other means of
electronic commerce. The RBI has been preparing to upgrade itself as a regulator and supervisor of the
technologically dominated financial system. It issued guidelines on risks and control in computer and
telecommunication system to all banks, advising them to evaluate the risks inherent in the system and put in
place adequate control mechanism to address the risks. The existing regulatory framework over banks has
also been extended to E-Banking. It covers various issues that fall within the framework of technology,
security standards, and legal and regulatory issues.

RECOMMENDATION
1. Bank should motivate the age group of 31 to 60 years to use online banking services for their banking
purposes.
2. Bank should adopt some new policies and incentives to the online banking customers for making large
number oftransactions.
3. Bank should improve the technical and physical accessibility of online banking services
4. For the women customers bank have to take necessary steps to use online banking services.
5. Bank should provide more facilities like training program, awareness camps to all types of customers.
6. Bank should make collaboration with other financial institution to collect their bill payment premium
 31

and other finance related matter online.

7. Bank should implement easy way to access online banking services for the people who are unaware
about how to use online banking services very fluently.

8. Bank should improve the online banking service quality of website design, home page ofbank web site
and server availability.

BIBLIOGRAPHY
 State Bank of India- www.onlinesbi.com

 Punjab National Bank- www.pnbindia.co.in

 HDFC BANK- www.hdfcbank.com

 Internet Banking in India-Part I- Dr A. K. Mishra

 Hsbc bank :- www.hsbc.co.in

 THE BUSINESS LINE.

 ICICI BANK – www.icicibank.com

 Bank netindia- http://www.banknetindia.com/banking/ibkgintro.htm

 Ez articles:- http://ezinearticles.com/?A-Brief-History-of-Internet-Banking&id=353450

 Express cmputers: http://www.expresscomputeronline.com/20020916/indtrend1.shtml

 E-finance by Vasant C Josh