PROJECT REPORT ON

ONLINE BANKING AND ITS IMPACT ON CUSTOMERS V/S

BANKERS

SUBMITTED BY:-

NAMITA SAWANT

T.Y.B.M.S. [Semester V]

SEAT NO - 1242086

SUBMITTED TO:

UNIVERSITY OF MUMBAI

ACADEMIC YEAR 2015-2016

ALKESH DINESH MODY INSTITUTE FOR FINANCIAL &

MANAGEMENT STUDIES

SANTACRUZ (E) MUMBAI 400098

UNDER THE GUIDANCE OF

PROF. MEGHA BANSAL

 CERTIFICATE

I Prof. Megha Bansal, officially state that MISS. NAMITA SAWANT

studying in ALKESH DINESH MODY INSTITUTE FOR FINANCIAL

AND MANAGEMENT STUDIES, student of Bachelor of Management

Studies {BMS}, has duly completed his project on “ONLINE BANKING

AND ITS IMPACT ON CUSTOMERS V/S BANKERS” in the academic

year 2015-2016 under my guidance.

The information submitted by me is true and original to the best of my

knowledge.

Prof. MEGHA BANSAL

(Research Guide)
 DECLARATION

I, MISS. NAMITA SAWANT of ALKESH DINESH MODY INSTITUTE OF FINANCIAL

& MANAGEMENT STUDIES of TYBMS [Semester V] hereby declare that I have
completed my project, titled ‘ONLINE BANKING AND ITS IMPACT ON
CUSTOMERS V/S BANKERS’ in the Academic Year 2015-2016. The information
submitted herein is true and original to the best of my knowledge.

PLACE- MUMBAI

___________________

Signature of Student

Miss Namita Sawant

T.Y.BMS

SEAT NO- 1242086

We hereby certify that MISS. NAMITA SAWANT of ALKESH DINESH MODY
INSTITUTE of TYBMS [Semester V] has completed her project, titled ‘ONLINE
BANKING AND ITS IMPACT ON CUSTOMERS V/S BANKERS’ in the academic
year 2015-2016.

______________________ ______________________

Signature of Director Signature of the BMS Coordinator

[Dr.Smita Shukla] [Prof.Sushmita Mukherjee]

 ACKNOWLEDGEMENT

Every project big or small is successful largely due to the effort of a number of
wonderful people who have always given their valuable advice or lent a helping
hand. I sincerely appreciate the inspiration; support and guidance of all those
people who have been instrumental in making this project a success.

I, NAMITA SAWANT, the student of ALKESH DINESH MODY

INSTITUTE, SANTACRUZ, am extremely grateful for the confidence
bestowed in me and entrusting my project entitled “ONLINE BANKING AND
ITS IMPACT ON CUSTOMERS V/S BANKERS”

At this juncture I feel deeply honoured in expressing my sincere thanks to Prof.

MEGHA BANSAL. for assisting me in compiling the project and making the
resources available at right time and providing valuable insights leading to the
successful completion of my project.

I would also like to thank all the faculty members of ALKESH DINESH MODY
INSTITUTE for their critical advice and guidance without which this project
would not have been possible.

Last but not the least I place a deep sense of gratitude to my family members and
my friends who have been constant source of inspiration during the preparation
of this project work.
 ABSTRACT

The Internet has played a key role in changing how we interact with other people
and how we do business today. As a result of the Internet, electronic commerce
has emerged, allowing businesses to more effectively interact with their
customers and other corporations inside and outside their industries.
The banking industries is one such business that is using new communication
media to offer its customer value added service and convenience. This system of
interaction between the consumers and the banking industries is call the online
banking system. Online banking is a new industry which also people to interact
with their banking accounts via the Internet from virtually anywhere in the world.
Most of people choose online banking because it is time saving for them. They
don’t have to wait in a line for a long time. They can do their banking transaction
through online banking.
In online banking there is some issues like hacking, fraud etc which customer
face sometimes. It is responsibility of customer to check their password properly
and be safe from fraudent people and it is responsibility of bankers also to give
best security services to their customers.
Solution on this security problem is banks should use new software-based-
technology.
 INDEX

SR. NO CONTAINT PAGE NO.

1. INTRODUCTION
2. HISTORY OF BANKS IN INDIA
3. TYPES OF BANKS
4. HISTORY OF ONLINE BANKING
5. WHAT IS ONLINE BANKING
6. DEVELOPMENT OF ONLINE BANKING
IN INDIA
7. RBI AND ONLINE BANKING
8. HOW TO USE ONLINE BANKING
9. FEATURES OF ONLINE BANKING
10. SERVICES PROVIDED BY THE SBI AND
ICICI BANK
11. ADVANTAGES AND DISADVANTAGES
OF ONLINE BANKING
12. BENEFITS FOR BANKS AND
CUSTOMER
13. COMPARISON OF ONLINE BANKING
AND MOBILE BANKING
14. CHALLENGES IN ONLINE BANKING
15. TECHNOLOGY USED FOR ONLINE
BANKING
16. SECURITY PROBLEM IN ONLINE
BANKING
17. SECURITY RULES
18. SURVEY ON
CUSTOMER
19. SURVEY ON BANKERS
20. CONCLUSION
21. RECOMMENDATION
22. LIMITATION
23. ANNEXURE
24. BIBLOGRAPHY
 INRODUCTION

The banks have become an essential component of most of the economies as

banking services are described as “engines for economic growth” or act as
“conduits towards promoting economic growth”
Considering the benefits of using internet the banks have started to invest in this
newly created market. At the initial level, banks mainly focus on developing the
commercial web- sites, with the purpose of promoting their products and services
using the internet.
With the rapid development of technology, internet plays a significant role in
changing the banking scenario. It provides an online platform for various banking
transactions through which it offers various services like online payment, online
fund transfer, online stock trading and online shopping etc. The use of internet as
a delivery channel for banking services is increasing widely in banking sector.
Internet banking facilities enable financial institution and customer to access their
accounts, transactions and getting information on financial products & services.
Now a day’s most of the commercial banks have launched various services
through internet banking including latest service like opening online saving
accounts and demand for these services is increasing rapidly.
 HISTORY OF BANKS IN INDIA

The history of banking refers to the development of banks and

banking throughout history, with banking defined by contemporary sources as an
organisation which provides facilities acceptances of deposit, and provision of
funds. The history begins with the first prototype banks of merchants of the
ancient world, which made grains loans to farmers and traders who carried goods
between cities. This began around 2000 BC in Assyria and Later, Greece and
during the Roman Empire, lenders based in temples made loans and added two
important innovations: they accepted deposit and changed money. Archaeology
from this period in ancient China and India also shows evidence of money
lending activity.
The development of banking spread from northern Italy throughout the Holy
Roman Empire, and in the 15th and 16th century to northern Europe. This was
followed by a number of important innovations that took place
in Amsterdam during the Dutch Republic in the 17th century, and in London in
the 18th century. During the 20th century, developments in telecommunications
and computing caused major changes to banks' operations and let banks
dramatically increase in size and geographic spread.
Banking in India in the modern sense originated in the last decades of the 18th
century. Among the first banks were the Bank of Hindustan, which was
established in 1770 and liquidated in 1829-32; and the General Bank of India,
established in 1786 but failed in 1791.
The largest bank, and the oldest still in existence, is the State Bank of India. It
originated as the Bank of Calcutta in June 1806. In 1809, it was renamed as
the Bank of Bengal. This was one of the three banks funded by a presidency
government, the other two were the Bank of Bombay and the Bank of Madras.
The three banks were merged in 1921 to form the Imperial Bank of India, which
upon India's independence, became the State Bank of India in 1955. For many
years the presidency banks had acted as quasi-central banks, as did their
successors, until the Reserve Bank of India was established in 1935, under
the Reserve Bank of India Act, 1934.
In 1960, the State Banks of India was given control of eight state-associated banks
under the State Bank of India (Subsidiary Banks) Act, 1959. These are now called
its associate banks. In 1969 the Indian government nationalised 14 major private
banks. In 1980, 6 more private banks were nationalized. These nationalized banks
are the majority of lenders in the Indian economy. They dominate the banking
sector because of their large size and widespread networks.
The Indian banking sector is broadly classified into scheduled banks and non-
scheduled banks. The scheduled banks are those which are included under the
2nd Schedule of the Reserve Bank of India Act, 1934. The scheduled banks are
further classified into: nationalised banks; State Bank of India and its
associates; Regional Rural Banks (RRBs); foreign banks; and other Indian
private sector banks. The term commercial banks refers to both scheduled and
non-scheduled commercial banks which are regulated under the Banking
Regulation Act, 1949.
Generally banking in India is fairly mature in terms of supply, product range and
reach-even though reach in rural India and to the poor still remains a challenge.
The government has developed initiatives to address this through the State Bank
of India expanding its branch network and through the National Bank for
Agriculture and Rural Development with facilities like microfinance.
 TYPES OF BANKS

RETAILS BANKS: are probably the banks you’re most familiar with: you’re
checking and savings accounts are held at a retail bank, which focuses
on consumers as customers
.
COMMERCIAL BANKS: focus on business customers. Businesses need
checking and savings accounts just like individuals do, but they also need more
complex services. They might need to accept payments from customers, rely
heavily of lines of credit to manage cash flow, and they might use letters of credit
to do business overseas.

INVESTMENT BANKS: help businesses work in financial markets. If a

business wants to go public or sell debt, they’ll use an investment bank.

CENTRAL BANKS: manage the monetary system for a government. For

example, the Federal Reserve Bank is the US central bank responsible for
managing economic activity and supervising banks.

CREDIT UNIONS: are similar to banks, but they are not-for-profit

organizations owned by their customers (most banks are owned by investors).
Credit unions offer products and services more or less identical to most retail and
commercial banks.
.
ONLINE BANKS: operate entirely online – there are no physical branch
locations to talk with a teller or personal banker. Many brick-and-mortar
banks also offer online services, such as the ability to view accounts and pay bills
online, but internet-only banks are different: they often offer competitive rates on
savings accounts and they’re likely to offer free checking..

SAVING AND LOANS: are less prevalent than they used to be, but they are
still important. This type of bank was important in making home ownership
mainstream, using deposits from customers to fund home loans.
 HISTORY OF ONLINE BANKING

The precursor for the modern home online banking services were the distance
banking services over electronic media from the early 1980s. The term 'Online'
became popular in the late '80s and referred to the use of a terminal, keyboard
and TV (or monitor) to access the banking system using a phone line. 'Home
banking' can also refer to the use of a numeric keypad to send tones down a phone
line with instructions to the bank.
Online services started in New York in 1981 when four of the city's major banks
(Citibank, Chase Manhattan, Chemical and Manufacturers Hanover) offered
home banking services using the videotext system. Because of the commercial
failure of videotext these banking services never became popular except in France
where the use of videotext (Minitel) was subsidised by the telecom provider and
the UK, where the Prestel system was used. For more information about the latter
see Online banking in the U.K..
When the clicks-and-bricks euphoria hit in the late 1990s, many banks began to
view Web-based banking as a strategic imperative. The attraction of banks to
online banking are fairly obvious: diminished transaction costs, easier integration
of services, interactive marketing capabilities, and other benefits that boost
customer lists and profit margins. Additionally, Web banking services allow
institutions to bundle more services into single packages, thereby luring
customers and minimizing overhead.
While financial institutions took steps to implement e-banking services in the
mid-1990s, many consumers were hesitant to conduct monetary transactions over
the web. Today, many banks are internet only banks. Unlike their predecessors,
these internet only banks do not maintain brick and mortar bank branches.
Instead, they typically differentiate themselves by offering better interest rates
and more extensive online banking features.
FIRST ONLINE BANKING SERVICES IN THE UNITED STATES

According to "Banking and Finance on the Internet," edited by Mary J. Cronin,

online banking was first introduced in the early 1980s in New York. Four major
banks—Citibank, Chase Manhattan, Chemical and Manufacturers Hanover—
offered home banking services. Chemical introduced its Pronto services for
individuals and small businesses in 1983. It allowed individual and small-
business clients to maintain electronic check book registers, see account balances,
and transfer funds between checking and savings accounts. Pronto failed to attract
enough customers to break even and was abandoned in 1989. Other banks had a
similar experience.

ONLINE BANKING IN THE U.K.

Almost simultaneously with the United States, online banking arrived in the
United Kingdom. The UK's first home online banking services known as Home
link was set up by Bank of Scotland for customers of the Nottingham Building
Society (NBS) in 1983. The system used was based on the UK's Prestel view link
system and used a computer, such as the BBC Micro, or keyboard (Tan data
Td1400) connected to the telephone system and television set. The system
allowed on-line viewing of statements, bank transfers and bill payments. In order
to make bank transfers and bill payments, a written instruction giving details of
the intended recipient had to be sent to the NBS who set the details up on the
Home link system.

BANKS AND THE WORLD WIDE WEB

In the 1990s, banks realized that the rising popularity of the World Wide Web
gave them an added opportunity to advertise their services. Initially, they used
the Web as another brochure, without interaction with the customer. Early sites
featured pictures of the bank's officers or buildings, and provided customers with
maps of branches and ATM locations, phone numbers to call for further
information and simple listings of products.
 WHAT IS ONLINE BANKING?

Online banking is an electronic payment system that enables customers of

a financial institution to conduct financial transactions 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.
To access a financial institution's online banking facility, a customer with Internet
access would need to register with the institution for the service, and set up a
password and other credentials for customer verification. The credentials for
online banking is normally not the same as for telephone banking. Financial
institutions now routinely allocate customers numbers, whether or not customers
have indicated an intention to access their online banking facility. Customers'
numbers are normally not the same as account numbers, because a number of
customer accounts can be linked to the one customer number. The customer
number can be linked to any account that the customer controls, such as cheque,
savings, loan, credit card and other accounts.
To access online banking, a customer visits the financial institution's secure
website, and enters the online banking facility using the customer number and
credentials previously setup.
 DEVELOPMENT OF ONLINE BANKING IN INDIA

ICICI was the first bank to initiate the Online Banking Revolution in India as
early as 1997 under the brand name Infinity.
ICICI kicked off online banking way back in 1996.But even as a whole, 1196 to
1198 marked the adoption phase, while usage increased only in 1999- due to
lower ISP online charges.
ICICI Bank initiated internet banking in India and later in the year 1999 HDFC
Bank and Citibank followed the same.
In today’s scenario, with the help of internet various banking and financial
services are provided by banks in India.
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 websites which
disseminate 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 Websites: It allow customers to submit
their instructions and applications for different services, queries about their
account balances, etc. but do not allow any fund-based transactions on their
Accounts.
The third level i.e. Fully Transactional Websites: It allows customers to manage
their accounts.
Bank of India recently launched its card-less cash withdrawal service. This
facility helps customers to send money to anyone using Internet banking or by
using ATM, with the help of receiver’s mobile number.
The Business Transformation Program is being implemented by the Bank of
Baroda which will provide its customer convenience banking on a 24 X 7 basis
in India and abroad with integrated delivery channels like, Internet, Phone,
Mobile, and others.
A number of Indian banks have implemented Online Tax Accounting System
(OLTAS) for collection of taxes on behalf of Central Board of Direct Taxes,
Government of India.
ICICI bank launched 24x7 electronic branch, which is a one-stop shop for all
banking transactions. 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 facilitates
customer to store soft copy of their important documents safely such as legal
documents, agreements, policies and various important certificates. ICICI bank
is offering various gifts to customers for start to use internet banking for the first
time.
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. After
launching accounts on Facebook and You tube, SBI took one more step the social
media by launching a twitter handle
LIST OF BANKS WHICH PROVIDE ONLINE BANKING

1. ICICI BANK

2. STATE BANK OF INDIA

3. HDFC BANK

4. IDBI BANK

5. AXIS BANK

6. ANDHRA BANK

7. BANK OF BARODA

8. BANK OF INDIA

9. HSBC BANK
 RBI AND ONLINE BANKING

1. The Reserve Bank of India constituted a working group on Interest

Banking

2. The group divided the interest banking product in India into 3 types based

on the levels of access granted

3. They are - 1. Information only system.

2. Electronic Information Transfer system.

3. Fully Electronic Transactional system.

INFORMATION ONLY SYSTEM:

General purpose information like interest rates, branch location, bank products
and their features, loan and deposit calculations are provided in the banks website.
There exist facilities for downloading various types of application forms. The
communication is normally done through e-mail. There is no interaction between
the customer and bank's application system. No identification of the customer is
done. In this system, there is no possibility of any unauthorized person getting
into production systems of the bank through internet.

ELECTRONIC INFORMATION TRANSFER SYSTEM:

The system provides customer- specific information in the form of account
balances, transaction details, and statement of accounts. The information is still
largely of the 'read only' format. Identification and authentication of the customer
is through password. The information is fetched from the bank's application
system either in batch mode or off-line. The application systems cannot directly
access through the internet.

FULLY ELECTRONIC TRANSACTIONAL SYSTEM:

This system allows bi-directional capabilities. Transactions can be submitted by
the customer for online update. This system requires high degree of security and
control. In this environment, web server and application systems are linked over
secure infrastructure. It comprises technology covering computerization,
networking and security, inter-bank payment gateway and legal infrastructure.

AUTOMATED TELLER MACHINE (ATM):

ATM is designed to perform the most important function of bank. It is operated
by plastic card with its special features. The plastic card issued by the
Shared Payment Network System can go to any ATM linked to Shared Payment
Networks and perform his transactions.
CREDIT CARDS/ DEBIT CARDS:
The Credit Card holder is empowered to spend wherever and whenever he wants
with his Credit Card within the limits fixed by his bank. Credit Card is a post-
paid card. Debit Card, on the other hand, is a prepaid card with some stored
value. Every time a person uses this card, the Internet Banking house gets money
transferred to its account from the bank of the buyer. The buyers account is
debited with the exact amount of purchases. An individual has to open an account
with the issuing bank which gives debit card with a Personal Identification
Number (PIN). When he makes a purchase, he enters his PIN on shops PIN pad.
When the card is slurped through the electronic terminal, it dials the acquiring
bank system - either Master Card or VISA that validates the PIN and finds out
from the issuing bank whether to accept or decline the transactions. The customer
can never overspend because the system rejects any transaction which exceeds
the balance in his account. The bank never faces a default because the amount
spent is debited immediately from the customer’s account.

SMART CARDS:
Banks are adding chips to their current magnetic stripe cards to enhance security
and offer new service, called Smart Cards. Smart Cards allow thousands of times
of information storable on magnetic stripe cards. In addition, these cards are
highly secure, more reliable and perform multiple functions. They hold a large
amount of personal information, from medical and health history to personal
banking and personal preferences.
.
 CURRENT 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 had focused on three major areas 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 3 exhibit 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
and debit cards) deployed and issued by the schedule commercial banks (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 ATMs. Table no 3 shows NEFT and
RTGS transactions performed in the current financial year 2014-15.
 TYPES OF NO. OF GROWTH IN
INERNET/ELECTRONIC CHANNELS %
CHANNEL YEARS
2010 2014
No of ATM employed (In 60,153 1,76,410 193.27
Actual Figure)
No of Poss employed (In 5,95,958 10,58,642 77.64
Actual Figure)
No of credit card issues ( In 18.33 20.36 11.07
Million)
No of Debit Cards issues ( In 181.97 500.08 174.81
Million )
No of Mobile Banking users 5.96 35.5 495.64
(In Million )
INITIATIVE TAKEN BY THE GOVERNMENT OF INDIA FOR

THE ONLINE BANKING

For growth and development and to promote e-banking in India the Indian
government and RBI have been taken several initiatives.
The Government of India enacted the IT Act, 2000 with effect from October 17,
2000 which provided legal recognition to electronic transactions and other means
of electronic commerce.
The Reserve Bank monitors and reviews the legal requirements of e-banking on
a continuous basis to ensure that challenges related to e-banking may not pose
any threat to financial stability of the nation.
Dr. K.C. Chakrabarty Committee including members from IIM, IDRBT, IIT and
Reserve Bank prepared the IT Vision Document- 2011-17, which provides an
indicative road map i.e. guidelines to enhance the usage of IT in the banking
sector
The Reserve Bank is striving to make the payment systems more secure and
efficient. It has advised banks and other stakeholders to strengthen the security
aspects in internet banking by adopting certain security measures in a timely
manner. RBI believes that the growing popularity of these alternate channels of
payments (such as: Internet Banking, Mobile Banking, ATM etc.) brings an
additional responsibility on banks to ensure safe and secure transactions through
these channels.
National Payments Corporation of India (NPCI) was permitted by the RBI to
enhance the number of mobile banking services and widen the IMPS (Immediate
Payment Service) channels like ATMs, internet, mobile etc. Along with this,
NPCI is also working to bring more mobile network operators which can provide
mobile banking services through a common platform. [26].
On the recommendations of the Damodaran Committee, the guidelines were
induced by RBI that provide internet banking as totally secured and protected,
zero-liability against loss for any customer induced transaction & multi-lateral
arrangements among banks to deal with internet banking frauds. To deal with
online banking frauds, customer can approach with their complaints to Banking
Ombudsman.
Under this Banking Ombudsman Scheme 2006, a customer can file their
complaint against any deficiencies in banking service including internet banking,
credit cards & ATM.
The Basel Committee on Banking Supervision’s (2001) has defined risk
management principles for electronic banking. They primarily focus on how to
extend, adapt, and tailor the existing risk-management framework to the
electronic banking setting.
 HOW TO USE ONLINE BANKING

METHOD 1. SETUP

1. It is required that you already have a bank account, If not then choose a

financial institutions. (For examples- state bank of India)

2. Setup an online login

(ID # and password) with your financial Institution.

3. Once you have your information go to your financial institituation website

and enter your login information.

 METHOD 2. HOW TO NAVIGATE AND VIEW YOUR

ACCOUNTS

1. On the top navigation bar, click “Account” then “account” overview.

2. This will take you to the main page where you can view all of your

accounts and their balances.

3. Click on any account in order to see a detailed view of each Account.

4. This will bring up the transaction bar the current statement to view past

statement are the drop down menu.

METHOD 3. TRASFERING MONEY BETWEEN ACCOUNTS

1. To transfer money between accounts use the navigation bar at the top and

click “Transfer”.

2. For transferring money to another one of your accounts, choose from the

drop down menus then pop up.

3. Select the Account you wish to transfer money “from” and “to”

4. Then enter the correct amount of money you to transfer as well as the

frequency.

5. Hit “continue” and you will be directed to new page where you will double

check all the Information is correct and hit “continue” again.

 FEATURES OF ONLINE BANKING

1. View balances: Checking your balance doesn't require much work. You
simply select Account balances and take a look at your balance and past
transactions. If you have more than one account, you can also do transfers
between accounts.

2. Pay bills: To pay your bills online, you just need to add to your account
the names of the companies you wish to pay bills to. In the Pay Bills
section, select Add payees, search for the name of the company and fill in
the account number for each company. You can also sign up for the ebills
service from epost, a service that sends you a bill by email instead of a
printed one by regular mail.

3. Transfer funds: When you select Transfer Funds, you'll be asked where
to transfer the money to and from, when, and the amount.

4. Set up recurring bill payments or transfers: If you make a regular

payment every month, it might be convenient to set up an automatic
withdrawal from your account.

5. Order cheques: We don't need them much anymore due to online banking
and debit purchases, but if you still use cheques, you can order them
directly from the CIBC website.
 SERVICES PROVIDED BY SBI

Self- account funds transfer across India.

New accounts opening.

New cheque- book request.

Railway tickets booking.

Utility bill payment.

LIC and other insurance premium payments.

Credit card due payments.

Deposit your taxes.

Donations to Red Cross and such at the organisation.

 SERVICES PROVIDED BY ICICI BANK

Bill payments.

Fund transfer.

Account Information.

Smart money order service request.

Convert to EMI account to card transfer.

Prepaid mobile recharge.

Account transfer.
 ADVANTAGES OF ONLINE BANKING

Very convenient. Online banking is a totally easy thing to do. In the comfort of
your home or offices, you can do whatever monetary transactions you wish to do
with your bank.

Unlimited service day and night. The services and various features of your bank
are always available seven days a week and 24 hours daily. The most interesting
thing here is that, everything can happen at just one click of your mouse.

No time constraint. Online banking is also stress free because it never closes
unlike the traditional banking that has cut-off time.

Easy to access via PC. Using your personal computer, you can easily do various
transactions with your bank in view of your business or any other personal or
financial matters.

Easy way of payment. Bill payments can also be handled properly and
smartly. Instead of waiting for certain due dates, you can easily pay all your
transactions using your computer and in coordination with your bank.

Higher interest rate. Another great advantage of online banking is the interest
rates which basically range between 5% to 3.40% annually.
 DISADVANTAGES OF ONLINE BANKING

Complex encryption software is used to protect account information. However,

there are no perfect system.

Accounts are prone to hacking attacks, malware and illegal activities.

Learning- Banks with complicated sites can be difficult to navigate and may
require one to read through tutorials to navigate them.

Transaction Problem- face to face meeting is better in handling complex

transaction and problems.

Understanding the usage of Internet banking might be difficult for a beginner at

the first go.

Though there are some sites which offer a demon how to access online account,
but not all banks offer this facility. So, a person who is new, might face some
difficulty.
 BENEFITS FOR BANKS

INCREASE PROFITABILITY: Adoption of internet helps the banks to

increase their profitability. Banks with Internet banking have better operating
efficiency ratios and profitability as compared to banks, which are not using
internet facilities. The banks can provide banking services to the consumers using
internet banking at a far lower cost as compared to the traditional banking.

Cost effective mechanism: The internet banking provides an opportunity of self-

service channel to the consumers. This help the banks to cut their workforce up
to a particular extent that results in reducing the administrative costs bear by the
banks. Compared to traditional banking system, internet banking is cost-effective
as it reduces the administrative costs and paperwork needed for the bank
transactions. Many studies show that electronic banking has successfully reduced
operating and administrative cost and fees.

Reach where there is no branch: Internet banking has expanded their geographical
reach and may increase customer base through deploying electronic delivery
channels at lower cost. Actually, some banks are doing in that way, they are
providing banking services exclusively via the Internet in some areas because
they do not have bank branches in these areas. whereas many financial institutions
are using the Internet banking as a branchless banking to satisfy their existing
customers and attract new customers in the perspective of convenience and cost
effectiveness.

Improve Customer relationship: - Maintaining the relationship with consumers

has become a strategic priority for most of the banks. Using the internet banking
technology and facilities can provide a means for banks to develop and maintain
a good relationship with their customers by offering easy access to a wide range
of products and services managing a good relationship with the customers may
help to make customer loyalty, customer retention and improve cross-selling.
Internet banking facilities have become a useful tool for improving customer
satisfaction and increasing cross-selling opportunities.
Eco-friendly image: Another important benefit internet banking is that it is eco-
friendly is nature. Internet banking cuts down the paper usage and reduces
pollution as people do not have to travel physically and also does not add carbon
emissions. Implementing the e-banking facilities in the banks show the concern
of the bank towards the environment, which further, will help the banks to create
an eco-friendly image Customer can access their accounts 24 hours a day without
having to have branches on banks.

The customer do all of the work themselves so staff numbers can be reduced.

Traditional banks are very expensive to run, high street rental for a branch cost
hundreds of thousands of pounds per year.

On top of that are staff costs, insurance, heating and lighting costs it has been
estimated that banks can save around 50% on the cost of transactions through the
use of online banking.

Banks can attract new customer to their online business for a transaction of the
cost it takes to get one through the door of a high street branch.

An advertisement in a Sunday newspaper about a new interest account can

generate over 200000 visit to the website in a day.
 BENEFITS FOR CUSTOMERS

Online banking has become an accepted norm of monetary transactions for

millions in India over the past decade. The ease with which a customer can check
his account, make payments online and transfer money between accounts has
made this mode of banking hugely popular among Indians who are perpetually
short of time to visit the bank physically. Online banking also provides a host of
non-transactional features which are quite handy to the customer. However along
with the world of conveniences this method of banking has a few inherent pitfalls
which need to be understood in order to protect your money and avoid
complications subsequently.

Key Benefits of Internet Banking

There are plenty of perks offered by banks to customers who adopt internet
banking over the traditional visit physically to the nearest branch office.

Convenience:

This is the single most important benefits that outweigh any shortcoming of
internet banking. Making transactions and payments right from the comfort of
home or office at the click of a button without even having to step out is a facility
none would like to forego. Keeping a track of accounts through the internet is
much faster and convenient as compared to going to the bank for the same. Even
non transactional facilities like ordering check books online, updating accounts,
enquiring about interest rates of various financial products etc become much
simpler on the internet.

Better Rates:

The banks stand to gain significantly by the use of internet banking as it implies
lesser physical effort from their end. The need to acquire larger spaces for offices
and employ more staff to deal with the customers is significantly reduced making
it financially beneficial to the banks. This means that a portion of savings accrued
can be passed on to the customers in terms of higher rates on deposits and lower
rates on loans.
Services:

Technology has made it extremely convenient for the bank as well as the
customer to access to a host of wonderful services by simply logging in. These
services include financial planning capabilities, functional budgeting and
forecasting tools, loan calculators, investment analysis tools and equity trading
platforms which are available as simple applications on the bank's website.
Additionally most banks also provide the facility of online tax forms and tax
preparation.

Mobility:

Internet banking has a step further in the last few years in the form of mobile
internet banking which accords unlimited mobility to the customer who can
now handle financial transactions even while on the move.

Less waiting time:

It offers less waiting time and more convenience as compared to the traditional
banking system and significantly lowers the cost structure than traditional
delivery channels. It also reduces the time and place limitation and it provides
various benefits to consumers so that they feel convenient while doing banking
activities.

Availability:

With the help of internet banking, costumer can access their banking facilities
and services all around the clock i.e. 24 hours and 365 days from anywhere
anytime. They don’t need to wait for timing of bank branches
COMPARISON OF ONLINE AND MOBILE BANKING
 CHALLENGES IN ONLINE BANKING

The challenges related to e-banking prevail in Indian context are discussed below:

Security Risk: The problem related to the security has become one of the major
concerns for banks. A large group of customers refuses to opt for e-banking
facilities due to uncertainty and security concerns. According to the IAMAI
Report (2006), 43% of internet users are not using internet banking in India
because of security concerns. So it’s a big challenge for marketers and makes
consumers satisfied regarding their security concerns, which may further increase
the online banking use.

Privacy risk: The risk of disclosing private information & fear of identity theft
is one of the major factors that inhibit the consumers while opting for internet
banking services. Most of the consumers believe that using online banking
services make them vulnerable to identity theft. According to the study
consumers’ worry about their privacy and feel that bank may invade their privacy
by utilizing their information for marketing and other secondary purposes without
consent of consumers.

The Trust Factor: Trust is the biggest hurdle to online banking for most of the
customers. Conventional banking is preferred by the customers because of lack
of trust on the online security. They have a perception that online transaction is
risky due to which frauds can take place. While using e-banking facilities lot of
questions arises in the mind of customers such as: Did transaction go through?
Did I push the transfer button once or twice? Trust is among the significant factors
which influence the customers’ willingness to engage in a transaction with web
merchants.
Customer Awareness: Awareness among consumers about the e-banking
facilities and procedures is still at lower side in Indian scenario. Banks are not
able to disseminate proper information about the use, benefits and facility of
internet banking. Less awareness of new technologies and their benefits is among
one of the most ranked barrier in the development of e-banking.

Less Internet Penetration in Indian Context: The internet banking channel has
evolved over the years. In 2011, 60 percent of the times basic transactions in
banks were conducted in North America through online channels, whereas
internet banking usage in India increased from 1 percent in 2006 to 7 percent in
2011. So the knowledge and availability of internet is still a one of the biggest
challenges that prevails in Indian context.

According to the report of IAMAI 2006 around 22% of internet users do not have
knowledge about transferring online. So the penetration of internet and
knowledge related to internet are major hurdles
 TECHNOLOGY USED FOR ONLINE BANKING

DIGITAL DEPOSIT APPS

Although credit cards, debit cards, direct deposit and on-line bill payments have
made old-fashioned paper checks a vanishing species, paper checks are still
encountered by most people from time to time. Internet technology and mobile
apps have been developed that make deposit a check as easy as scanning the
check into a digital format or taking photographs of the front and back with a
smartphone or other mobile device. The resulting digital file or photographs can
then be sent to the bank where the check is processed in the same way as a deposit
made at the teller window — and certainly seems like the future of branch
banking.
Bank of America, Chase Bank, and Citi Bank are just a few of the major financial
institutions now offering mobile check deposit through their apps.

Photo Bill Payment Apps

Following fast on the heels of digital deposit technology are photo bill payments
apps that facilitate payments to companies that only issue hard-copy bills and
invoices.
This new technology in banking works by transmitting information from the bill
into an individual’s bank account using a digital photograph of the bill. The
payment amount, due date and company issuing the bill is collected, allowing the
bill to be paid electronically from the user’s account. Regular bill payments can
also be scheduled using these apps.
Currently only a few banks offer this service, including City Bank Texas, but like
all new technologies that make life more convenient, use of this service is sure to
spread.
SMARTPHONE CREDIT CARD SCANNERS

Studies have shown that consumers tend to spend more when using a credit or
debit card to make a purchase than they might with cash. This fact has been a
selling point for companies who market and service credit card processing
machines.
However, new technology now circumvents the traditional credit card machine
by allowing credit or debit card payment processing using a reader attached to a
mobile device (one example of this service is the Square app). The scanner reads
the card, and the specified amount of money is transferred directly from the
cardholders account into the payee’s account.
According to the Better Business Bureau, this new banking technology allows
small vendors to sell more goods to a wider market and gives a competitive edge
to small businesses that only receive occasional credit card payments and
craftspersons who sell at venues that are traditionally cash-based, such as craft
shows and flea markets.

4. Electronic Meetings
Teleconferencing itself is not a new technology, but teleconferencing with a bank
teller or loan officer in lieu of a personal meeting at the local bank branch is
relatively new and likely to be a big player in future banking technology.
Combined with on-line applications that are completed prior to the
teleconference, this service can be used to open a new account or apply for a loan
or mortgage.
MOBILE PAYMENT APPS

Debit and credit cards were the technology in banking

industry that revolutionized payment for goods and services in the twentieth
century. Now, those payment methods are no longer convenient enough for many
shoppers and are being replaced by mobile payment apps that serve the same
function.
Payment apps are increasingly accepted at many mainstream stores. To use a
mobile payment app, the user’s credit or debit card information is loaded into the
app. Instead of searching through a wallet full of cards, the consumer selects a
card to use from the menu on their smartphone and then touches the phone to an
in-store reader. The payment is processed like a regular credit or debit card
transaction.
Level Up and Dwolla remain popular mobile payment apps for small business
owners, according to Fox Business News. While access is currently limited,
Google Wallet is looking to be a popular mobile payment app in years to come.
The Google Wallet app also offers deals for certain stores that customers can
redeem just like coupons, as well as a loyalty program.
 OPPORTUNITY FOR ONLINE BANKING

INCREASING INTERNET USERS AND COMPUTER LETERACY:

To use internet banking it is very important or initial requirement that people
should have knowledge about internet technology so that they can easily adopt
the internet banking services. The fast increasing internet users in India can be a
very big opportunity and banking industry should encash this opportunity to
attract more internet users to adopt internet banking services. Table no 4 shows
evidence of increasing number of internet users in India. As per the last available
data, as on 1 July 2014, there are 243,198,922 Indians who are using internet and
it is increasing approximately 3.5 crores every year on an average. It is also shows
the rate of growth which is 168 percent since 2010. It is very much evident
through the data provided by IAMAI (The Internet and Mobile Association of
India). According to the ComScore Report, 2013 India is now world’s third
largest Internet user after U.S. and China. The computer literacy has gone upward
in the last decade. Those with higher IT literacy may have a more positive
perception towards e-banking in general and May thus, be more likely to accept
e-banking services

Initiatives taken by government agencies for financial literacy: Financial

literacy and education play a crucial role in financial inclusion, and inclusive
growth. A study reported that there is significant impact of financial literacy on
use of internet banking, If customers are not financially educated they will simply
avoid using new online services and not change their traditional way of banking,
thus banks will not be able to convert users into their new online banking
strategies. Various government institutions like RBI, SEBI, IRDA and various
other market players have taken a number of initiatives on financial education.
They have prepared a school curriculum along with various topics including
internet banking, banking product and services, net banking to educate the school
students, college students, working executives, middle income group, home
makers, retired personnel, self-help groups etc.
Competitive Advantage: The benefit of adopting e-banking provides a
competitive advantage to the banks over other players. The implementation of e-
banking is beneficial for bank in many ways as it reduces cost to banks, improves
customer relation, increases the geographical reach of the bank, etc. The benefits
of e- banking have become opportunities for the banks to manage their banking
business in a better way.
 SECURITY PROBLEM IN ONLINE BANKING

The security of information may be one of the biggest concerns to the Internet
users. For electronic banking users who most likely connect to the Internet via
dial-up modem, is faced with a smaller risk of someone breaking into their
computers. Only organizations such as banks with dedicated Internet connections
face the risk of someone from the Internet gaining unauthorized access to their
computer or network. However, the electronic banking system users still face the
security risks with unauthorized access into their banking accounts. Moreover,
the electronic banking system users also concern about non-repudiability which
requires a reliable identification of both the sender and the receiver of on-line
transactions. Non-secure electronic transaction can be altered to change the
apparent sender. Therefore, it is extremely important to build in non-repudiability
which means that the identity of both the sender and the receiver can be attested
to by a trusted third party who holds the identity certificates.
 ATTACTS

The Citibank $10 million break-in is one example of how the system is vulnerable
to hackers. Hackers have many different ways that they can try to break into the
system. The problem of the systems today are inherent within the setup of the
communications and also within the computers itself. The current focus of
security is on session-layer protocols and the flaws in end-to-end computing. A
secure end-to-end transaction requires a secure protocol to communicate over
untrusted channels, and a trusted code at both endpoints. It is really important to
have a secure protocol because the trusted channels really don’t exist in most of
the environment. For example, downloading a game off the Internet would be
dangerous because Trojan horses and viruses could patch the client software after
it is on the local disk, especially on systems like Windows 95 which does not
provide access control for files. This leads to the use of software-based
protections and hardware-based protections.
Many systems today use some form of software-based protection. Software-based
protection are easily obtained at lower costs than hardware-based protection.
Consequently, software-based protection is more widely used. But, software-
based protection has many potential hazards. For software-based systems, there
are four ways to penetrate the system. First of all, attacking the encryption
algorithms is one possible approach. This form of attack would require much time
and effort to be invested to break in. A more direct approach would be using brute
force by actually trying out all possible combinations to find the password. A
third possible form of attack is to the bank’s server which is highly unlikely
because these systems are very sophisticated. This leaves the fourth possible
method, which also happens to be the most likely attack, which is to attack the
client’s personal computers. This can be done by a number of ways, such as
planting viruses (e.g. Trojan horse) as mentioned above. But, unlike the
traditional viruses, the new viruses will aim to have no visible effects on the
system, thus making them more difficult to detect and easy to spread
unintentionally. The attacker is assumed to have network access to any machine
on any Ethernet sub-net between the file/server and the clients under attack. In
under a day, a software package could be designed to exploit the lack of
authentication in the NFS security product to patch the object code of any
executable on-the-wire as it travels between the NFS server and the client
machine.
When the client retrieves data from the NFS server, it sends a short request
message detailing which block from the file it is interested in. The attack software
is located on an Ethernet segment between the client and the NFS server, so it is
able to sense this traffic.
The attack software waits for any request for a particular block of a particular
executable such as the block containing the session key generation code in the
Netscape executable.
The software then is able to forge a reply from the NFS server and transmit it to
the client. If the forged packet reaches the client before the real reply, it is
accepted and the real reply is discarded as a duplicate. The forged reply generally
reaches the client before the real reply.
 WHAT CAN CUSTOMER DO?

To ensure that the

bank’s security
measures cannot be undermined by the manipulation, it is essential, too,
take step to protect the system they use. These being include security-
conscious when using the internet and checking the banks statements
regularly.

Should customers nevertheless suspect that they have come across

internet fraudsters, they should ensure that access to their online account is
blocked immediately and report to their any irregularities to their bank
without delay. All relevant information should be saved so that the attempt
at fraud can be traced.

It is highly important for people who use computers to maintain

backup files regardless of whether or not they bank online. A convenient
way of making backups is to save a data in removable hard drive or a CD.
SECURITY RULES

RULE 1.

INSTALL SECURITY SOFTWARE:

(Including an up-to-date virus scanner)

Install additional security software. Some security problems cannot be

sloved with your operating system’s standard tools alone. An important additional
tool is an efficient virus scanner that is continuously updated online and thus able
to defect new viruses. New viruses are being discovered almost every day and it
is quite possible to become infected while surfing the net.
Remember that, as long as you are online, third parties can build up a
picture of what information is on your pc because your computer has its own
address on the web and can thus be accessed from outside.
If you do not have adequate security in place, you run the risk of
unauthorised persons joining access to data ( e.g. PINs and TANs, which,
incidentally, should never be save) by means of surreptitiously installed spyware
applications. These can gather sensitive data without your knowledge, such as
account information and passwords, or even record your keystrokes. The data is
then send to an unknown e-mail address or server. Spyware programmes may be
hidden in internet pages, e-mail or e-mail attachments and are therefore
sometimes also called TROJAN HORSES. Malicious software which particularly
target core function of the operating system is also known as rootkit.
RULE 2.

PROTECT SENSITIVE DATA WHEN SENDIND IT OVER

OPEN NETWORK:

Any understand transmission of data over the internet may be intercepted

or viewed by unauthorised third parties.

The banks have taken steps to ensure that data sent when banking online
is encrypted before transmission. Enter your PIN and other access codes only
when you are sure that you are on your BANK’S SECURE PAGES and have an
encrypted connection. One of the way you can verify this is by checking that the
internet address (URL) of your bank start with “http://”

Don’t forget that the data transmitted during online banking session is not
automatically encrypted when it is save on your pc and should therefore be
protected by further security measures.

As a general rule, never send your sensitive information over open network unless
it is encrypted. Protect your confidential correspondence by using approved
encreption method May of which are available free of charge.
RULE 3.

BE SURE YOU KNOW WHO YOU ARE DEALING WITH

Check the URL in the address box of the browser and make sure your
bank’s internet address is correctly spelled. The tiniest descriptions may be a
signature that the site is fake.

Check, too, the security information provided by the browser, such as the
results of CERTIFICATE VERFICATION. This allows among other things, the
credentials of the server to which connected to be confirmed by an independent
authority – the certificate issuers.

A favourite trickle of the hackers is to obtain the Infor” they need by

impersonating someone is a position of trust. In a scam known as Phishing, for
example- you will be asked by the fraudsters to accept or re-enter confidential
access codes (such as your PIN or Tans) on the website of your bank.

You may receive such a request by e-mail or via manipulated internet

pages. But the link will take you to a bogus website created the phisher, who will
then be able to capture your confidential codes.

So it is very important to verify that you are entering your confidential

access codes on your banks genuine website.
RULE 4.

CHOOSE A SECURE PASSWORD:

If you want to use your pc to start an application like online banking, you
normally have to begin by entering a password. This enables you to prove who
you are and show that you are authorised to work on a particular computer or with
a particular application. So it is vitally important not to share this information
with anyone. It also means that you should not write it down anywhere and that
your password should be unique and difficult to guess.

A GOOD PASSWORD is usually six to eight character long and a

combination of upper and lower core letters, numbers and special symbol. A
simple method is to create a password from the first letters of a saying or a poem.
Adding special symbol or numbers can add further complexity. ‘2hRbt1’ might
stand for “two heads are better than one”. For example change your password if
you have reason to suspect someone may have discovered it.

RULE 5.

USE UP- TO-DATE PROGRAMME VERSIONS.

Use only an up-to-date version of your preferred internet browser and pc
operating system. Only in the most recent version will all known security holes
have been filled.

Software manufactures also develop small programmes known as bug fixes or

patches to solve security problems they have discovered. You should install these
bug fixes or patches as soon as possible to protect your pc from known
vulnerabilities. Keep abreast of the latest development most manufacturers
operate information services for this purpose.
SURVEY ON CUSTOMERS

1. WHAT IS YOUR REASON FOR CHOOSING ONLINE BANKING

SERVICE?

CONVENIENCE 3 25%

TO SAVE TIME 5 42%

24HRS. ACCESS 4 33%

TO ACCOUNT

OTHERS 0 0%

TOTAL 12 100%

REASON FOR CHOOSING ONLINE BANKING

0%

CONVENIENCE
33% 25%

TO SAVE TIME

24HRS. TO ACCESS
42% ACCOUNT
OTHERS

MOST OF PEOPLE CHOOSE ONLINE BANING TO SAVE THEIR

TIME. THEY CAN DO BANK’S TRANSACTION THROUGH ONLINE
BANKING WITHOUT VISIT THE BANK.
 2. HOW OFTEN DO YOU USE ONLINE SERVICES?

DAILY 2 17%
WEEKLY 6 50%
MONTHLY 4 33%
NEVER 0 0%
TOTAL 12 100%

HOW OFTEN DO YOU USE ONLINE SERVICES?

0%
17%
33% DAILY
WEEKLY
MONTHLY
NEVER
50%

50% OF PEOPLE USE ONLINE BANKING SERVICE WEEKLY TO DO

BANK’S TRANSACTION.
 3. WHICH ONLINE FEATURES DO YOU USE REGULARLY?

PAY BILLS 6 50%

MAKE AN ACCOUNT 3 25%
INQUIRY
TRANSFER 3 25%
ORDER 0 0%
OTHERS 0 0%
TOTAL 12 100%

WHICH ONLINE FEATURES DO YOU USE

REGULARLY
0% 0%
PAY BILLS

25%
MAKE AN ACCOUNT
INQUIRY
50%
TRANSFER
25%
ORDER

50% OF PEOPLE USE ONLINE BANKING FOR PAY BILLS BECAUSE IT

IS EASY TO PAY BILLS THROUGH ONLINE. IT IS TIME SAVING
PROCESS FOR CUSTOMER.
 4. WOULD YOU USE YOUR MOBILE PHONE TO DO YOUR
BANKING?

YES 10 83%
NO 2 17%
TOTAL 12 100%

USES OF MOBILE PHONE FOR ONLINE BANKING

17%

YES
NO

83%

ALL PEOPLE DON’T HAVE LAPTOP OR COMPUTER THAT’S WHY 83%

PEOPLE SAID THAT THEY CHOOSE MOBILE FOR ONLINE BANKING.
IT IS VERY CONVENIENT FOR THEM.
 5. WOULD YOU USE YOUR COMPUTER TO DO YOUR BANKING?

YES 9 75%
NO 3 25%
TOTAL 12 100%

USES OF COMPUTER FOR ONLINE BANKING

25%
YES
75% 25%
NO

75% OF PEOPLE SAID THAT THEY USE COMPITER OR LAPTOP FOR

ONLINE BANKING BECAUSE IT IS CONVENIENT FOR THEM.
 6. DO YOU STILL VISIT BANKS SINCE YOU STARTED USING
ONLINE BANKING?

YES 7 58%
NO 5 42%
TOTAL 12 100%

HOW MUCH PEOPLE STILL VISIT BANKS

42%
YES
58% 42%
NO

58% OF PEOPLE SAID THAT THEY STILL VISIT BANKS FOR DO OTHER
BANKING TRANSACTION.
 7. OVERALL HOW MUCH SATISFIED YOU WITH ONLINE
BANKING SERVICE?

VERY SATISFIED 2 17%

SATISFIED 9 75%
NEUTRAL 1 8%
UNSATISFIED 0 0%
TOTAL 12 100%

HOW MUCH PEOPLE SATISFIED THROUGH ONLINE

BANKING

0%
8% 17%

VERY SATISFIED
SATISFIED
NEUTRAL
75% UNSATISFIED

75% PEOPLE ARE SATISFIED THROUGH USING ONLING BANKING

BECAUSE IT IS TIME SAVING AND ADVANCED TECHNOLOGY TO DO
ALL BANKING TRANSACTION THROUGH MOBILE OR LAPTOP.

SURVEY ON BANKERS
 1. HOW LONG HAVE YOU BEEN ASSOCIATED WITH THE
BANK?

NEWLY JOINT 0 0%
1-6 MONTH 1 8%
LESS THAN A YEAR 3 25%
1-5 YEAR 8 67%
TOTAL 12 100%

PEOPLE ASSOCIATED WITH THE BANKS

0%
8%
25% NEWLY JOINT
1-6 MONTH
67%
LESS THAN AYEAR
1-5 YEAR

67% OF PEOPLE ASSOCIATED WITH THE BANKS BETWEEN 1-5 YEAR.

IT MEANS THEY HAVE WORK EXPERIENCE MORE THAN 1 YEAR.
 2. WHICH OF THE FOLLOWING TYPE OF BANKING ACCOUNT
DO YOU HAVE?

SAVING ACCOUNT 7 59%

BASIC CHECKING 0 0%
ACCOUNT
MONEY MARKET 1 8%
DEPOSIT ACCOUNT
BUSINESS 4 33%
ACCOUNT
TOTAL 12 100%

TYPE OF BANKING ACCOUNT

SAVING AACOUNT

33% BASIC CHECKING

AACOUNT
MONEY MAKET
59% DEPOSIT ACCOUNT
8% BUSINESS ACCOUNT

0%

SBI BANKERS SAID THAT, THEY HAVE 59% OF PEOPLE’S SAVING

AACOUNT IN THEIR BANK. IT SHOWS THAT PEOPLE ARE
INTERESTED TO SAVE THEIR MONEY IN SBI BANK.
 3. ARE YOU ABLE TO ACCESS YOUR BANKING ACCOUNT
ONLINE?

YES 12 100%
NO 0 0%
TOTAL 12 100%

ABLENESS TO ACCESS BANKING ACCOUNT

YES
100% 0% 0%
NO

100% BANKERS SAID THAT THEY ARE ABLE TO ACCESS BANKING

ACCOUNT ONLINE.
 4. ARE YOU ABLE TO PROVIDE VARIOUS ONLINE BAKING
FACILITY TO YOUR CUSTOMERS?

YES 12 100%
NO 0 0%
TOTAL 12 100%

ABLENESS TO PROVIDE VARIOUS ONLINE

FACILITY
0%

YES
NO

100%

100% BANKERS OF SBI SAID THAT THEY ARE ABLE TO PROVIDE

VARIOUS ONLINE BANKING FACILITY TO THEIR CUSTOMERS. FOR
EXAMPLE- PAY BILLS, TRANSFER MONEY, ACCOUNT INQUIRY ETC.
 5. HOW MUCH INTEREST RATE YOU PROVIDE TO THE
CUSTOMER? PLEASE MENTION HERE.

INTEREST RATE PROVIDE BY THE BANK TO THE

CUSTOMER

SAVING ACCOUNT

100%

SBI BANK PROVIDE 4% INTEREST RATE ON SAVING ACCOUNT.

THAT’S WHY PEOPLE ARE INTERESTED TO INVEST THEIR MONEY IN
SBI BANK.
 6. WHICH OF THE FOLLOWING FACILITY IS GIVEN MORE
IMPORTANCE IN YOUR BANK?

LOAN FACILITY 7 58%

LESS INTEREST 0 0%
RATE
ATM FACILITY 5 42%
TOTAL 12 100%

BEST FFACILITY WHICH PROVIDE THROUGH THE

BANK

42%
LOAN FACILITY
58% LESS INTEREST RTAE
ATM FACILITY

0%

58% OF SBI BANKERS SAID THAT THEY PROVIDE GOOD LOAN

FACILITY TO THE CUSTOMERS.
 7. WHICH KIND OF PROBLEM YOU FACE DURING PROVIDE
THE ONLINE BANKING TO THE CUSTOMERS?

SECURITY RISK 5 42%

TECHNICAL 5 42%
PROBLEM
LACK OF 2 16%
KNOWLEDGE
ABOUT ONLINE
BANKING
TOTAL 12 100%

PROBLEM DURING ONLINE BANKING

SECURITY RISK
16%

42% TECHNICAL PROBLEM

42% LACK OF
KNOWLEDGE ABOUT
ONLINE BANKING

42% OF SBI BANKERS SAID THAT THEY FACE SECUTITY AS WELL

AS TECHNICAL PROBLEM DURING ONLINE BANKING.
 8. HOW MUCH YOU ARE SATISFIED WITH YOUR JOB?

SATISFIED 4 33%
VERY SATISFIED 2 17%
DISSATISFIED 0 0%
AVERAGE 6 50%
TOTAL 12 100%

SATISFACTION THROUGH JOB

33%
SATISFIED
50%
VERY SATISFIED
DISSATISFIED
17%
AVERAGE

0%

IT SHOWS THAT 50% OF SBI BANKERS ARE AVERAGE SATISFIED

WITH THEIR JOB.
 9. WHICH IMPROVEMENT ACCORDING TO YOU SHOULD BE
HAPPEN IN THE BANK?

IMPROVEMENT ACCORDING TO THE BANKERS

NO

100%

100% OF SBI BANKERS SAID THAT THEY DON’T WANT ANY

IMPROVEMENT IN THE BANK BECAUSE THEY DON’T HAVE RIGHT
TO DECIDE ON IMPROVEMENT’S DECISSION. ONLY BANK MANAGER
HAVE A RIGHT TO TAKE ANY IMPROVEMENT DECISION.
 CONCLUSION

Online banking is changing the banking industry and is having the major effects
on banking relationship. ICICI bank initiate the first online banking in India.
Online banking has advantages as well as disadvantages also. Advantages like
customers can pay bills through online, they can check their account balance
through online banking without visit the banks. Disadvantages like security
problem, fake e-mail, hacking, and fraud through online banking.
All banks who provide online banking they should follow security-software-
based system. It will help them to protect from security issues. And customer also
have to give concentrate on their security password. It should be keep changing
in a six months so hackers or other fraudent people can’t harm their account.
From the views and opinion given in the questionnaire, I thus have come to
a conclusion that is –
CUSTOMER POINT OF VIEW:
Customers are satisfied to using online banking service because it is time saving
and easy to communicate with bank without visit the banks. Customer can do
many activities through online banking like they can pay bills, they can transfer
money to anyone etc.
BANKERS POINT OF VIEW:
SBI banks are providing good online banking services to the customers but some
time they have to face some security and technical problem. But they are trying
to improvement on this problem. They focus on customer services that’s why
people are saving money in the SBI bank because SBI bank give 4% interest rate
on the saving account.

RECOMENDATION
1. Bank should improve their security level for online banking.
2. Bank should follow new security-software-base technology.
3. Banks should give more importance on customer’s trust level. So
customers can invest their money in the bank with audaciously
4. It will beneficial for the bank, if customers are investing more in their bank
because it will give highest turnover to the bank.
5. Customer also keep in mind one thing while doing online banking that is,
don’t login your banking account in front of unknown person.
6. Customer should always keep changing their passwords so they can protect
themselves from the fraudent people.
7. Before opening online account in any bank customer should check full
details of that banks so they can protect themselves from the fraud banks.
8. Customer should be aware about the fraud web-sites.
9. For example – SBI bank has original web site like www.sbionline.com

But fraud web site like www.onlinesbi.com

10. Overall customers and bankers both play a important role in online
banking. So both have to understand their duties and responsibility for
online banking.

LIMITATION
1. The biggest limitation is the time
2. Error while calculating the questionnaire
3. Difficulty on banker’s survey while fill forms through the
bankers.
4. Difficulty in finding the information.
5. Lack of knowledge about the banks.
 ANNEXURE

SURVEY ON CUSTOMER

Name:
Age:
Sex:
Banks Name:

1. WHAT IS YOUR REASON FOR CHOOSING ONLINE BANKING

SERVICES?

a) CONVENIENCE
b) TO SAVE TIME
c) 24 HOURS ACCESS TO TIME
d) OTHER

2. HOW OFTEN DO YOU USE ONLINE BANKING SERVICES?

a) DAILY
b) WEEKLY
c) MONTHLY
d) NEVER

3. WHICH ONLINE FEATURES DO YOU USE REGULARLY?

a) PAY BILLS
b) MAKE AN ACCOUNT INQUIRY
c) TRANSFER FUNDS BETWEEN ACCOUNT
d) ORDER CHECK BOOKS
e) OTHER
4. WOULD YOU USE YOUR MOBILE PHONE TO DO YOUR
BANKING?

a) YES
b) NO

5. WOULD YOU USE YOUR COMPUTER/ LAPTOP TO DO YOUR

BANKING

a) YES
b) NO

6. DO YOU STILLVISIT THE BANKS SINCE YOU STARTED USING

ONLINE BANKING?

a) YES
b) NO

7. OVERALL, HOW SATISFIED YOU ARE WITH ONLINE BANKING

SERVICE?

a) VERY SATISFIED
b) SATISFIED
c) NEUTRAL
d) UNSATISFIED
SURVEY ON BANKERS

Name:
Age:
Sex:
Bank name:

1. HOW LONG HAVE YOU BEEN ASSOCIATED WITH THE BANK?

a) NEWLY JOINT
b) 1-6 MONTH
c) LESS THAN A YEAR
d) 1-5 YEAR

2. WHICH OF THE FOLLOWING TYPE OF BANKING ACCOUNTS DO

YOU HAVE?

a) SAVING ACCOUNT
b) BASIC CHECKING ACCOUNT
c) MONEY MARKET DEPOSIT ACCOUNT
d) BUSINESS/ CORPORATE ACCOUNT

3. ARE YOU ABLE TO ACCESS YOUR BANKING ACCOUNT

ONLINE?

a) YES
b) NO
4. ARE YOU ABLE TO PROVIDE VARIOUS ONLINE BANKING
FACILITY TO YOUR CUSTOMER?

a) YES
b) NO

5. HOW MUCH INTEREST RATE YOU PROVIDE TO THE

CUSTOMER? PLEASE MENTION HERE.

-----------------------------------------------------------------------
6. WHICH OF THE FOLLOWING FACILITY IS GIVEN MORE
IMPORTANCE IN YOUR BANK?

a) LOAN FACILITY
b) LESS INTEREST RATE
c) ATM FACILITY

7. WHICH KIND OF PROBLEMS YOU FACE DURING PROVIDE THE

ONLINE BANKING TO THE CUSTOMER?

a) SECURITY PROBLEM
b) TECHNICAL PROBLEM
c) LACK OF KNOWLEDGE ABOUT ONLINE
BANKING
8. HOW MUCH YOU ARE SATISFIED WITH YOUR JOB?

a) SATISFIED
b) VERY SATISFIED
c) DISSATISFIED
d) AVERAGE

9. WHICH IMPROVEMENT ACCORDING TO YOU SHOULD BE

HAPPEN IN THE BANK? PLEASE MENTION HERE.

------------------------------------------------------------------------
 BIBLOGRAPHY

Accessing data base that helped me a lot, some are listed below

Internet sites

1. www.sbibank.com
2. www.wikipedia.com
3. Http://www.electrobank.com/ebaeb.htm
4. Http://www.hp.com/ibpprogs/gsy/advantage/june96/custspot.html
5. Http://www.rsa.com/set/bankset.htm
6. http://www.slideshare.net/ranjeet143yadav/internet-banking-7193691