PROJECTREPORT

ON
“
ASTUDYOFAWARENESSABOUTE-
BANKI
NGW.
R.TKALYAN
REGI
ON”

APr
ojectSubmi
tt
edt
o
Uni
ver
sit
yofMumbai
forpar
ti
alcompl
eti
onoft
hedegr
eeof
Mast
eri
nCommer
ce
Adv
ancedAccount
ancySEM -VI

Submi
tt
edBy
MS.SAYALIMUKUNDRAJSHI
LWANT
SEATNO–52
Undert
heGui
danceof
MS.SHEFALIKONDEWAR

K.
G.JOSHICOLLEAGE
OFARTSANDN.
G.BEDEKARCOLLEGEOFCOMMERCE,
THANE
 DECLARATI
ONBYLEARNER

It
heunder
signedMs.Say
alimukundr
ajshi
l
wanther
eby
,decl
aret
hatt
he
wor
kembodi
edi
nthi
spr
ojectwor
kti
tl
ed“
A st
udyofawar
enessaboute-
banki
ngw.
r.
tkal
yanr
egi
on”
,for
msmyowncont
ri
but
iont
other
esear
chwor
k
car
ri
edoutundert
hegui
danceofDr
.(Mr
s.)Shef
alikondewari
sar
esul
tofmy
ownr
esear
chwor
kand hasnotbeenpr
evi
ousl
ysubmi
tt
ed t
o anyot
her
Uni
ver
sit
yforanyot
herDegr
ee/Di
plomat
othi
soranyot
herUni
ver
sit
y.

Wher
everr
efer
encehasbeenmadet
opr
evi
ouswor
ksofot
her
s,i
thasbeen
cl
ear
lyi
ndi
cat
edassuchandi
ncl
udedi
nthebi
bli
ogr
aphy
.

I
,her
ebyf
urt
herdecl
aret
hatal
linf
ormat
ionoft
hisdocumenthasbeen
obt
ained and pr
esent
ed i
n accor
dance wi
th academi
crul
es and et
hical
conduct
.

NameandSi
gnat
ureoft
heLear
ner

Cer
ti
fi
edby

NameandSi
gnat
ureoft
heGui
dingTeacher

2
 ACKNOWLEDGMENT

Tol
i
stwhoal
lhav
ehel
pedmei
sdi
ff
icul
tbecauset
heyar
esonumer
ousand
t
hedept
hissoenor
mous.

Iwoul
dli
ket
oacknowl
edget
hef
oll
owi
ngasbei
ngi
deal
i
sti
cchannel
sand
f
reshdi
mensi
onsi
nthecompl
eti
onoft
hispr
oject
.

It
aket
hisoppor
tuni
tyt
othankt
heUni
ver
sit
yofMumbaif
orgi
vi
ngmechance
t
odot
hispr
oject
.

Iwoul
dli
ket
othankmyPr
inci
palDr
.(Mr
s.)Suchi
tr
aA.Nai
kforpr
ovi
dingt
he
necessar
yfaci
l
iti
esr
equi
redf
orcompl
eti
onoft
hispr
oject
.

It
aket
hisoppor
tuni
tyt
othankourCoor
dinat
orDr
.Neel
am Shai
kh,f
orher
mor
alsuppor
tandgui
dance.

Iwoul
dal
sol
i
ket
oexpr
essmysi
ncer
egr
ati
tudet
owar
dsmypr
ojectgui
deDr
.
Shef
ali
kondewarwhosegui
danceandcar
emadet
hepr
ojectsuccessf
ul.

Iwoul
dli
ket
othankmyCol
l
egeLi
brar
y,f
orhav
ingpr
ovi
dedv
ari
ousr
efer
ence
booksandmagazi
nesr
elat
edt
omypr
oject
.

Last
ly,Iwoul
dli
ket
othankeachandev
eryper
sonwhodi
rect
lyori
ndi
rect
ly
hel
pedmei
nthecompl
eti
onoft
hepr
ojectespeci
all
ymyPar
ent
sandPeer
s
whosuppor
tedmet
hroughoutmypr
oject
.

3
 I
NDEX
SRNO. TI
TLE PG.NO.
1 I
NTRODUCTI ON 6-43
1.1 HISTORYOFE-BANKI NG 8
1.2 INTERNET- ADISTRI BUTIONCHANNEL 9
1.3 THEGLOBALE- BANKI NGSCENARI O 10
1.4 INDIANE- BANKINGSCENARI O 13
1.5 TYPESOFI NTERNETBANKI NGORE- BANKING 14
1.6 FEATURESOFE- BANKI NG 15
1.7 IMPORTANCEOFE- BANKI NG 16
1.8 ADVANTAGES&DI S-ADVANTAGESOFE- BANKING 17
1.9 MEDI UMSOFE- BANKI NG 20
1.10 USAGEOFE- BANKI NG 21
1.11 INTERNETBANKI NGVERSUSTRADI TIONALBANKING 32
1.12 SCOPEANDCHALLENGESOFE- BANKING 33
1.13 TECHNOLOGYI NBANKI NG 39
1.14 THEE- BANKI NGSTRATEGI ES 41
2 RESEARCHMETHODOLOGY 44-
54
2.1 INTRODUCTI ON 44
2.2 MEANI NG/ DEFI
NI TON/ TYPES 46
2.3 HYPOTHESI S 47
2.4 OBJECTI VEOFSTUDY 48
2.5 SCOPEOFTHESTUDY 49
2.6 SIGNIFI CANCEOFSTUDY 50
2.7 LIMITATI ONSOFSTUDY 51
2.8 DATACOLLECTI ON 52
2.9 MODEOFDATACOLLECTI ON 53
2.10 SAMPLESI ZE 54
3 LITERATUREREVI EW 55-
59
3.1 MEANI NGOFREVI EW 55
3.2 WHATDOESREVI EW OFLI TERATUREMEANS? 55
3.3 INDIANAUTHOROFREVI EW 57
3.4 FOREI GNAUTHOROFREVI EW 59
4 COMPANYPROFI LE 63-
66
4.1 OVERVI EW 63
4.2 HISTORY 64
4.3 VISION 64
4.4 MI SSION 64
4.5 ACHI EVEMENT 65
DATAANALYSI Z, INTERRETATI ONAND
5 67-
86
PRESENTATI ON
6 CONCLUSI ONANDSUGGESTI CNS 87-
89
6.
1 CONCLUSI ON 87
6.
2 SUGGESTI CNS 89
  Appendi x 90
  Bibli
ogr aphy 92

4
“
Ast
udyofawar
enessaboutE-Banki
ng
w.
r.
tKal
yanRegion’
’

5
 CHAPTERNO:1
I
NTRODUCTI
ON

El
ect
roni
cbanki
ngi
sanumbr
ell
ater
mfort
hepr
ocessbywhi
cha
cust
omermayper
for
m banki
ngt
ransact
ionsel
ect
roni
cal
l
ywi
thoutv
isi
ti
nga
br
ick-
and-
mor
tari
nst
it
uti
on.Thef
oll
owi
ng t
ermsal
lref
ert
o onef
orm or
anot
herofel
ect
roni
c banki
ng:per
sonalcomput
er(
PC)banki
ng,I
nter
net
banki
ng,v
irt
ualbanki
ng,onl
i
nebanki
ng,homebanki
ng,r
emot
eel
ect
roni
c
banki
ng,
andphonebanki
ng.PCbanki
ngandI
nter
netoronl
i
nebanki
ngi
sthe
mostf
requent
lyuseddesi
gnat
ions.I
tshoul
dbenot
ed,howev
er,t
hatt
he
t
ermsusedt
odescr
ibet
hev
ari
oust
ypesofel
ect
roni
cbanki
ngar
eof
tenused
i
nter
changeabl
y.
El
ect
roni
cbanki
ngi
sanact
ivi
tyt
hati
snotnew t
o banksort
hei
r
cust
omer
s.Banks hav
ing been pr
ovi
ding t
hei
r ser
vices t
o cust
omer
s
el
ect
roni
cal
l
yfory
ear
sthr
oughsof
twar
epr
ogr
ams.Thesesof
twar
epr
ogr
ams
al
l
owedt
heuser
‘sper
sonalcomput
ert
odi
alupt
hebankdi
rect
ly.I
nthepast
howev
er,bankshav
ebeenv
eryr
eluct
antt
opr
ovi
det
hei
rcust
omer
swi
th
banki
ngv
iat
heI
nter
netduet
osecur
it
yconcer
ns.
Today
,banks seem t
o be j
umpi
ng on t
he bandwagon ofI
nter
net
banki
ng.Whyi
sther
easuddeni
ncr
easeofbanki
nter
est
sint
heI
nter
net
?The
f
ir
stmaj
orr
eason i
s because oft
he i
mpr
oved secur
it
y and encr
ypt
ion
met
hodsdev
elopedont
heI
nter
net
.Thesecondr
easoni
sthatbanksdi
dnot
wantt
oloseapot
ent
ialmar
ketshar
etobankst
hatwer
equi
ckt
oof
fert
hei
r
ser
vicesont
heI
nter
net
.
Manyoft
hebanksl
i
keI
CICI
,HDFC,I
ndusI
nd,I
DBI
,Ci
ti
bank,Gl
obal
Tr
ustBank(
GTB)
,BankofPunj
abandSt
atebankofI
ndi
a(SBI
)wer
eof
fer
ing
E-
banki
ngser
vices.Theanal
yst
s‘comment
sthatI
ndi
ahadahi
ghgr
owt
h
pot
ent
ialf
ore-
banki
ngt
hepl
ayer
sfocusedoni
ncr
easi
ngandi
mpr
ovi
ngt
hei
r
E-
banki
ngser
vices.Asapar
toft
his,t
hebanksbegant
ocol
l
abor
atewi
th
f
unct
ionsonl
i
ne.
Whyi
sther
easuddeni
ncr
easeofbanki
nter
est
sint
heI
nter
net
?The
f
ir
stmaj
orr
eason i
s because oft
he i
mpr
oved secur
it
y and encr
ypt
ion
met
hodsdev
elopedont
heI
nter
net
.Thesecondr
easoni
sthatbanksdi
dnot

6
wantt
oloseapot
ent
ialmar
ketshar
etobankst
hatwer
equi
ckt
oof
fert
hei
r
ser
vicesont
heI
nter
net
.
E-
banki
ngi
sdef
inedast
heaut
omat
eddel
i
ver
yofnew andt
radi
ti
onal
banki
ng pr
oduct
s and ser
vices di
rect
lyt
o cust
omer
sthr
ough el
ect
roni
c,
i
nter
act
ivecommuni
cat
ionchannel
s.E-
banki
ngi
ncl
udest
hesy
stemst
hat
enabl
efi
nanci
ali
nst
it
uti
oncust
omer
s.I
ndi
vi
dual
sorbusi
nesses,t
oaccess
account
s,t
ransactbusi
ness,orobt
aini
nfor
mat
iononf
inanci
alpr
oduct
sand
ser
vicest
hroughapubl
i
corpr
ivat
enet
wor
kincl
udi
ngt
heI
nter
net
,Cust
omer
s
accesse-
banki
ngser
vicesusi
ngani
ntel
l
igentel
ect
roni
cdev
ice.
TheE-
banki
ngwasf
ir
stl
yint
roducedi
nIndi
abyt
heI
CICIar
ound1996.
Ther
eaf
termanyot
herbanksl
i
keHDFC,SBI
,IDBI
,Ci
ti
bankTr
ustBanks,UTI
,
et
cfol
l
owed t
heser
vice.Ast
odaypr
ivat
eand f
orei
gn bankhad st
art
ed
capt
uri
ngt
hemar
kett
hroughe-
banki
nghence―t
hecompet
it
ioni
sheat
ingup
andt
hel
ackoft
echnol
ogycanmakeabankl
ooseacust
omer
‖sonow t
he
publ
i
cbanksar
ebr
eaki
ngt
heshackl
esoft
radi
ti
onalset
-upandgear
ingupt
o
f
acet
hecompet
it
ionposedbyt
hepr
ivat
esect
orcount
erpar
ts.

7
1.
1HI
STORYOFE-BANKI
NG

Thepr
ecur
sorf
ort
hemoder
nhomeonl
i
nebanki
ngser
viceswer
ethe
di
stancebanki
ngser
vicesov
erel
ect
roni
cmedi
afr
om t
heear
ly'
80s.Thet
erm
onl
i
nebecamepopul
ari
nthel
ate'
80sandr
efer
stot
heuseofat
ermi
nal
,
key
boar
dandTV(
ormoni
tor
)toaccesst
hebanki
ngsy
stem usi
ngaphone
l
i
ne.‗
Homebanki
ng‘
canal
sor
efert
otheuseofanumer
ickey
padt
osend
t
onesdownaphonel
i
newi
thi
nst
ruct
ionst
othebank.Onl
i
neser
vicesst
art
ed
i
nNew Yor
kin1981whenf
ouroft
heci
ty‘
smaj
orbanks(
Cit
ibank,Chase
Manhat
tan,Chemi
caland Manuf
act
urer
sHanov
er)of
fer
ed homebanki
ng
ser
vicesusi
ngt
hev
ideot
extsy
stem.Becauseoft
hecommer
cialf
ail
ureof
v
ideot
extt
hesebanki
ngser
vicesnev
erbecamepopul
arexcepti
nFr
ance
wher
etheuseofv
ideot
ext(
Mint
el)wassubsi
dizedbyt
het
elecom pr
ovi
der
andt
heUK,
wher
ethePr
est
elsy
stem wasused.

The UK‘
sfi
rsthome onl
i
ne banki
ng ser
vices wer
e setup byt
he
Not
ti
ngham Bui
l
ding Soci
ety(
NBS)i
n 1983 (
"Hi
stor
yoft
he Not
ti
ngham"
Ret
ri
evedon2007-
12-
14.
).Thesy
stem usedwasbasedont
heUK'
sPr
est
el
sy
stem andusedacomput
er,suchast
heBBCMi
cro,orkey
boar
d(Tandat
a
Td1400)connect
edt
othet
elephonesy
stem andt
elev
isi
onset
.Thesy
stem
(
knownas'
Homel
i
nk'
)al
l
owedon-
li
nev
iewi
ngofst
atement
s,bankt
ransf
ers
andbi
l
lpay
ment
s.I
nor
dert
omakebankt
ransf
ersandbi
l
lpay
ment
s,a
wr
it
teni
nst
ruct
iongi
vi
ngdet
ail
soft
hei
ntendedr
eci
pienthadt
obesentt
othe
NBSwhosett
hedet
ail
supont
heHomel
i
nksy
stem.Ty
picalr
eci
pient
swer
e
gas,el
ect
ri
cit
yandt
elephonecompani
esandaccount
swi
thot
herbanks.
Det
ail
sofpay
ment
stobemadewer
einputi
ntot
heNBS sy
stem byt
he
accounthol
derv
iaPr
est
el.Achequewast
hensentbyNBSt
othepay
eeand
anadv
icegi
vi
ngdet
ail
soft
hepay
mentwassentt
otheaccounthol
der
.BACS
wasl
aterusedt
otr
ansf
ert
hepay
mentdi
rect
ly.St
anf
ordFeder
alCr
edi
tUni
on
wast
hef
ir
stf
inanci
ali
nst
it
uti
ont
oof
feronl
i
nei
nter
netbanki
ngser
vicest
oal
l
ofi
tsmember
sinOct
,1994.

8
9
1.
2INTERNET-
ADI
STRI
BUTI
ONCHANNEL

Thei
nter
nethasbecomeanext
ensi
onofhot
elchai
ns'gl
obaldi
str
ibut
ion
sy
stems(
GDSs)
.Itof
fer
sthr
eepar
ti
cul
arst
rat
egi
cpossi
bil
i
ties:
(
1)Todr
iver
evenuesbyext
endi
ngt
hecompany
'sr
eacht
obr
oader
,mor
e
gl
obal
mar
ket
s.
(
2)Tor
educecost
sbyby
passi
ngt
radi
ti
onaldi
str
ibut
ionchannel
s(e.
g.,
air
li
ne
GDSs)
,av
oidi
ngcommi
ssi
ons,
andl
ower
ingt
ransact
ionf
ees.
(
3)Toenhancecust
omerser
vicebypr
ovi
dingmor
eandbet
teri
nfor
mat
ion
wi
thmul
ti
medi
a.

Thepot
ent
ialoft
hemar
ketf
orguest
s'booki
ngt
hei
rownr
oomsi
s
consi
der
abl
e,and el
ect
roni
c booki
ngs ar
e gener
all
yless expensi
vet
o
compl
etet
hant
hosef
rom ot
herchannel
s,not
abl
ytol
l
-fr
eet
elephonel
i
nes.
Thet
echnol
ogyi
snewenought
hatmanydi
ff
icul
ti
esr
emai
n,howev
er.Oft
he
t
op-
tensi
tesmai
ntai
nedbyl
uxur
yhot
eloper
ator
s,f
ori
nst
ance,
nonepr
ovi
ded
f
orr
eal
-t
ime,
onl
i
ner
eser
vat
ions.Mi
dscal
eandeconomyoper
ator
shav
ebeen
abl
etomakebet
terpr
ogr
essi
nonl
i
ner
eser
vat
ions,i
npar
tbecauset
hei
r
r
ooms ar
e mor
e uni
for
m t
han t
hose ofl
uxur
yoper
ator
s.Pur
chaser
s of
cor
por
atet
rav
elar
eabl
etouseel
ect
roni
cbooki
ngt
omoni
torandgai
nbet
ter
cont
roloft
hei
rtr
avelexpenses.Hot
elchai
nst
hatassi
stcor
por
atet
rav
el
depar
tment
sint
hisef
for
t,t
hroughdi
rectconnect
ions,canbenef
it
.Pr
ospect
s
f
orgr
oupsal
esr
emai
nint
hef
utur
e,becauset
hedesi
gnofGDSandi
nter
net
sof
twar
edoesnoty
etcapt
uret
hemanycompl
i
cat
ionsofr
oom-
blockand
meet
ing r
oom pur
chases.Meet
ing pl
anner
s can,howev
er,f
ind meet
ing-
r
elat
edi
nfor
mat
ionont
hei
nter
net
.Amongot
hershor
tcomi
ngsoft
hei
nter
net
ar
etheov
erwhel
mingv
olumeofi
nfor
mat
ionav
ail
abl
eandconcer
nsaboutt
he
secur
it
yofdat
atr
ansmi
ssi
onandst
orage.Per
hapst
hegr
eat
estchal
l
engeof
el
ect
roni
cdi
str
ibut
ioni
sachi
evi
ngsomef
orm ofcompet
it
iveadv
ant
agef
rom
GDSsandwebsi
tes—si
ncesomuchoft
oday
'st
echnol
ogyi
seasi
l
ycopi
ed.
Fi
nal
l
y,nopr
eci
sef
ormul
aexi
stsf
orhowapar
ti
cul
arhot
eloper
ati
onshoul
d
al
l
ocat
eit
sresour
cesf
orel
ect
roni
ccommer
ce.Thatdet
ermi
nat
ionst
ems
f
rom t
hehot
el'
sov
eral
lmar
ket
ingst
rat
egy
.

10
1.
3THEGLOBALE-
BANKI
NGSCENARI
O
Thebanki
ngi
ndust
ryi
sexpect
edt
obeal
eadi
ngpl
ayeri
ne-
busi
ness.
Whi
l
ethebanksi
ndev
elopedcount
ri
esar
ewor
kingpr
imar
il
yvi
aInt
ernetas
non-
branchbanks,banksi
nthedev
elopi
ngcount
ri
esuset
heI
nter
netasan
i
nfor
mat
iondel
i
ver
ytool
toi
mpr
over
elat
ionshi
pwi
thcust
omer
s.
I
near
ly2001,appr
oxi
mat
ely60per
centofe-
busi
nessi
ntheUKwas
concent
rat
edi
nthef
inanci
alser
vicessect
or,andwi
tht
heexpect
ed10-
fol
d
i
ncr
easeoft
heBr
it
ishe-
busi
nessmar
ketby2004,t
heshar
eoft
hef
inanci
al
ser
viceswi
l
lfur
theri
ncr
ease.Ar
oundonef
if
thofFi
nishandSwedi
shbank
cust
omer
sar
ebanki
ngonl
i
ne,whi
l
eint
heUS,accor
dingt
oUNCTAD,onl
i
ne
banki
ngi
sgr
owi
ngatanannualr
ateof60per
centandt
henumber
sofonl
i
ne
account
sar
eexpect
edt
oreach15mi
l
li
onby2003.
Bankshav
eest
abl
i
shedanI
nter
netpr
esencewi
thv
ari
ousobj
ect
ives.
Mostoft
hem ar
eusi
ngt
heI
nter
netasanew di
str
ibut
ionchannel
.Fi
nanci
al
ser
vices,wi
tht
heuseofI
nter
net
,maybeof
fer
edi
nanequi
val
entquant
it
y
wi
thl
owercost
stot
hemor
epot
ent
ialcust
omer
s.Ther
emaybecont
act
s
f
rom eachcor
neroft
hewor
ldatanyt
imeofdayorni
ght
.Thi
smeanst
hat
banksmayenl
arget
hei
rmar
ketwi
thoutopeni
ngnewbr
anches.
Thebanksi
n
t
heUSar
eusi
ngt
heWebt
oreachoppor
tuni
ti
esi
nthr
eedi
ff
erentcat
egor
ies:
t
o mar
keti
nfor
mat
ion,t
o del
i
verbanki
ng pr
oduct
s and ser
vices,and t
o
i
mpr
ovecust
omerr
elat
ionshi
p.
I
nAsi
a,t
hemaj
orf
act
orr
est
ri
cti
nggr
owt
hofe-
banki
ngi
ssecur
it
y,i
n
spi
teofsev
eralcount
ri
esbei
ngwel
lconnect
edv
iaI
nter
net
.Accesst
ohi
gh-
qual
i
tye-
banki
ngpr
oduct
sisani
ssueaswel
l
.Maj
ori
tyofbanksi
nAsi
aar
e
j
ustof
fer
ingbasi
cser
vicescompar
edwi
tht
hoseofdev
elopedcount
ri
es.St
il
l,
e-
banki
ngseemst
ohav
eaf
utur
einAsi
a.Accor
dingt
oMcKi
nseysur
vey
,e-
banki
ngwi
l
lsucceedi
fthebasi
cfeat
ures,
especi
all
ybi
l
lpay
ment
,ar
ehandl
ed
wel
l
.Bi
l
lpay
mentwast
hemostpopul
arf
eat
ure,ci
ted by40 per
centof
r
espondent
soft
hesur
vey
.Howev
er,pr
ovi
dingt
hisser
vicewoul
dbedi
ff
icul
t
f
orbanksi
nAsi
abecausei
trequi
resahi
ghl
evelofsecur
it
yandi
nvol
ves
ar
rangi
ngt
ransact
ionswi
thav
ari
etyofpl
ayer
s.
I
nIndi
a,appr
oxi
mat
elyoneper
centofhi
ghandmi
ddl
e-i
ncomegr
oup
banki
ngcust
omer
sconduct
edbanki
ngont
heI
nter
neti
n2000compar
edt
o5
t
o6per
centi
nSi
ngapor
eandSout
hKor
ea.I
n2001,aReser
veBankofI
ndi
a

11
sur
veyr
eveal
edt
hatmor
ethan20maj
orbankswer
eei
therof
fer
inge-
banki
ng
ser
vicesatv
ari
ousl
evel
sorpl
annedt
odosoi
nthenearf
utur
e.Someoft
he
pr
ivat
ebanksi
ncl
udedI
CICIBank,HDFC Bank,I
ndusI
ndBank,I
DBIBank,
Ci
ti
bank,Gl
obalTr
ustBank,BankofPunj
abandUTIBank.I
nthesamey
ear
,
outofanest
imat
ed0.
9mi
l
li
onI
nter
netuserbase,appr
oxi
mat
ely17per
cent
wer
erepor
tedt
obebanki
ngont
heI
nter
net
.Theabov
est
ati
sti
csr
evealt
hat
I
ndi
adoeshav
eahi
ghgr
owt
hpot
ent
ialf
ore-
banki
ng.Thebankshav
eal
ready
st
art
edf
ocusi
ngoni
ncr
easi
ngandi
mpr
ovi
ngt
hei
re-
banki
ngser
vices.Asa
par
toft
his,t
he banks hav
e begun t
o col
l
abor
ate wi
thv
ari
ous ut
il
it
y
compani
est
oenabl
ethecust
omer
stoper
for
mvar
iousf
unct
ionsonl
i
ne.
I
n2001,
over50per
centoft
hebanksi
ntheUSwer
eof
fer
inge-
banki
ng
ser
vices.Howev
er,
lar
gebanksappear
edt
ohav
eacl
earadv
ant
ageov
ersmal
l
banksi
nther
angeofser
vicest
heyof
fer
ed.Somebanksi
ntheUSwer
e
t
arget
ingt
hei
rInt
ernetst
rat
egi
est
owar
dsbusi
nesscust
omer
s.Apar
tfr
om
af
fect
ing t
he way cust
omer
srecei
ved banki
ng ser
vices;e-
banki
ng was
expect
edt
oinf
luencet
hebanki
ngi
ndust
ryst
ruct
ure.Theeconomi
csofe-
banki
ngwasexpect
edt
ofav
orl
argebanksbecauseofeconomi
esofscal
e
andscope,andt
heabi
l
ityt
oadv
ert
iseheav
il
y.Mor
eov
er,e-
banki
ngof
fer
ed
ent
ryandexpansi
onoppor
tuni
ti
est
hatsmal
lbankst
radi
ti
onal
l
ylacked.
I
n Eur
ope,t
he I
nter
neti
s accel
erat
ing t
he r
econf
igur
ati
on oft
he
banki
ngi
ndust
ryi
ntot
hreesepar
atebusi
nesses:pr
oduct
ion,di
str
ibut
ionand
adv
ice.Thi
sreconf
igur
ati
oni
sbei
ngf
urt
herdr
ivenbyt
heI
nter
net
,duet
othe
combi
nedi
mpactof
:
Theemer
genceofnew,
mor
efocusedbusi
nessmodel
s.
New t
echnol
ogi
calcapabi
l
iti
est
hatr
educesbanki
ngr
elat
ionshi
pand
t
ransact
ioncost
s.
Hi
gh degr
ee ofuncer
tai
ntyov
ert
he i
mpactt
hatnew ent
rant
swi
l
l
hav
eoncur
rentbusi
nessmodel
s.
Thoughe-
banki
ngi
ntheEur
opei
sst
il
lint
heev
olut
ionar
yst
age,i
tis
v
erycl
eart
hati
tishav
ingasi
gni
fi
canti
mpactont
radi
ti
onal
banki
ngact
ivi
ti
es.
Unl
i
kei
ntheUS,t
houghl
argebanksi
ntheEur
opehav
eacompet
it
iveedge
duet
othei
rabi
l
ityt
oinv
estheav
il
yinnewt
echnol
ogi
es,
theyar
est
il
lnotr
eady
t
oembr
acebanki
ng.

12
1.
4INDI
AE-
BANKI
NGSCENARI
O
Aspert
hei
nter
nat
ionalr
epor
tthebanki
ngt
ransact
ionsonabr
ickand
mor
tarbanki
ngcost
sar
ound$1.
1.Whi
l
ethr
oughATM i
tcost
sar
ound$0.
27
andj
ust1per
centofov
ert
hecount
erbanki
ngi
ncaseofI
nter
netbanki
ng.
St
ati
sti
cssuchast
hesehav
ewokent
heI
ndi
anBanki
ngI
ndust
ry.Thus,t
he
I
ndi
anbanki
ngsy
stem i
sseei
ngaf
abul
ouschangei
nthequal
i
tyofser
vice
pr
ovi
ded by t
hem.Technol
ogy i
sthe r
oot of t
his change,whi
ch i
s
i
mpl
ement
edbyt
hebanks‘
towi
nmor
ebusi
nessf
rom cust
omer
s.
Al
mostal
lthepr
ivat
esect
orbanksar
emov
ingt
owar
dse-
enabl
i
ngt
hei
r
exi
sti
ngpr
oduct
s.HDFCBankandI
CICIBankhav
etakenal
eadi
nint
roduci
ng
e-
banki
ngi
nIndi
a.
I
nter
netbanki
ngst
art
sfr
om mi
grat
ingexi
sti
ngpr
oduct
stot
henet
.
Thi
sst
art
edi
nit
ial
l
ywi
thsi
mpl
efunct
ionssuchasget
ti
ngi
nfor
mat
ionabout
i
nter
estr
ates,
checki
ngaccountbal
ancesandcomput
ingl
oanel
i
gibi
l
ity
.Then
t
heser
viceswer
eext
endedt
oonl
i
nebi
l
lpay
ment
,tr
ansf
eroff
undsbet
ween
account
sandcashmanagementser
vicesf
orcor
por
ates.Recent
ly,banks
st
art
edset
ti
nguppay
mentgat
eway
sforB2BandB2Ct
ransact
ions.Thi
sist
o
f
aci
l
itat
epay
mentf
ore-
commer
cet
ransact
ionsbydi
rect
lydebi
ti
ng bank
account
s ort
hrough cr
edi
tcar
ds.Banks can ear
n a commi
ssi
on based
i
ncome,
ont
het
ransact
ionorsal
eval
uer
esul
ti
ngi
nhi
gherot
heri
ncome.Thi
s
coul
d be mor
ethan t
he r
evenues t
hey can gener
atef
rom cr
edi
tcar
d
t
ransact
ions.
Pr
ivat
esect
orbankshav
elev
eragedt
heI
nter
netef
fect
ivel
yint
aki
ng
awayt
hecust
omer
sfr
om publ
i
csect
orbanksandsi
gni
fi
cant
lyi
ncr
easedt
hei
r
r
evenue pot
ent
ial
.Int
ernetbanki
ng i
sjustone mani
fest
ati
on oft
hese
banks‘t
echnol
ogi
calcapabi
l
iti
es.They hav
e a compl
ete aut
omat
ion,an
el
ect
roni
ccust
omerdat
abase,r
ealt
imet
ransact
ionpr
ocessi
ngcapabi
l
iti
es
andt
hel
atestt
echnol
ogi
calpl
atf
orms.Managementoft
hesebanksi
sver
y
f
ocusedi
nusi
ngt
echnol
ogyasakeycompet
it
ivet
ool
.Thecapabi
l
ityoft
he
managementi
sal
sov
isi
blei
nter
msoft
hei
rpr
ofi
tabi
l
ity
.Amongt
hepr
ivat
e
sect
orbanksHDFC BankandI
CICIBankhav
eexcel
l
entr
etur
nsonequi
ty
compar
edt
othei
rpeer
sint
hei
ndust
ry.
Thesebankscommencedoper
ati
onsf
ew y
ear
sandhav
enegl
i
gibl
e
excessi
nter
msofbr
anchesandempl
oyees.Ther
efor
eunl
i
kemostot
her

13
banksar
oundt
hewor
ld,e-
banki
ngi
snotanaddedcostf
ort
hem.I
nfacti
tis
expect
edt
ocont
ri
but
esi
gni
fi
cant
lyt
othei
rrev
enuesandpr
ofi
tsi
nyear
sto
come.
Thedi
str
ibut
ionofbanki
ngbusi
nessi
nIndi
aishi
ghl
yskewedbot
h
geogr
aphi
cal
l
yandi
nter
msofcust
omersegment
.Geogr
aphi
cal
l
ythet
op100
cent
ersaccountf
orar
ound 70 per
centoft
hel
oansdi
sbur
sed.Thi
sar
e
expect
edt
oaccountf
ormost
lyear
lyI
nter
netuser
s.I
nter
msofcust
omer
segment
,keyf
ocusont
heassetsi
dei
sthecor
por
atesect
or.Thi
ssegment
account
sforahi
ghshar
eofpr
ofi
tsofbanksandi
sli
kel
ytobeanear
ly
adapt
ert
otheI
nter
net
.Ont
hel
i
abi
l
itysi
deI
nter
netbanki
ngi
sexpect
edt
o
boostcust
omeracqui
sit
ionandpr
ofi
tabi
l
itysi
gni
fi
cant
lyi
nthet
opcor
por
ate
segmentandi
ntheur
banhi
gh/
middl
eincomer
etai
lsegment
s.
Apar
tfr
om e-
banki
ng,f
utur
epr
ospect
sofe-
commer
cei
sal
sost
rong
asi
tissetf
orexpl
osi
vegr
owt
hrat
es.Accor
dingt
otheNASSCOM‘
ssur
vey
,e-
busi
nesst
ransact
ionsi
nIndi
aar
eexpect
edt
oreacht
oRs12bi
l
li
onby2000-
01f
rom Rs4.
5bi
l
li
oni
nthepr
evi
ousy
ear
.Fore-
commer
cet
otakeof
fther
eis
aneedf
orr
ealt
imef
inanci
ali
nter
medi
ati
onandt
her
ear
ever
yfew banks
of
fer
ingt
hisi
nIndi
a.Ther
ightcombi
nat
ionofcust
omerr
elat
ionshi
pand
t
echnol
ogi
cal
compet
encyi
srequi
redt
odomi
nat
ethef
inanci
ali
nter
medi
ati
on
ofe-
commer
ce.Whoel
set
hanpr
ivat
esect
orbankscanpr
ovi
desuchser
vices?
Theyar
eal
lsett
oleadt
hesegmentwi
thamar
ginalcompet
it
ionf
rom f
orei
gn
banks.Goi
ngf
orwar
d,ast
heshar
eofe-
commer
cei
ntheeconomyi
ncr
eases,
t
hese banks shoul
d be abl
eto mov
e up t
hei
rmar
ketshar
e apar
tfr
om
gener
ati
nghi
gherf
eebasedi
ncome.
Butonedoeswonderwhatdi
ff
erencee-
banki
ngmakewi
thonl
y22
per
centoft
heI
nter
netusesgl
obal
l
yut
il
izi
nge-
banki
ngser
vices.I
nIndi
aal
so
t
hepenet
rat
ioni
slesst
han1per
cent
.Iti
snotal
lwi
n-wi
ncasef
orI
nter
net
banki
ng i
nIndi
a.A numberofuncer
tai
nti
es sur
round e-
banki
ng and e-
commer
cev
ent
ures.Amongt
heot
her
s,hur
dlesl
i
kel
owI
nter
netpenet
rat
ion,
secur
it
yissues,t
axconsi
der
ati
onsandcr
edi
tissuescont
inuet
odepr
esst
he
gr
owt
hoft
hesegment
.Ev
eni
fthegov
ernmenthaspassedt
hecy
berl
aws,
st
il
lther
eisal
ackofcl
ari
tyaboutl
egi
slat
iveaspect
sgov
erni
ngt
hesect
orand
t
heef
fect
ivenessoft
headmi
nist
rat
iont
otr
ack&puni
shcy
ber
cri
mes.I
tal
l
dependsont
heabi
l
ityofbankst
oent
ert
hesebusi
nessessuccessf
ull
y.Those

14
bankswhi
chhav
eal
readyst
art
ede-
banki
ngwi
l
lhav
etocont
inuousl
yupdat
e
t
hei
rser
vicest
oret
aint
hepot
ent
ialcust
omer
ssi
nceanycust
omeri
sjusta
cl
i
ckawayf
rom acompet
it
orel
sewher
e.Al
so,onecannotaf
for
dtodepend
onl
yonI
nter
netbanki
ng;br
ickandmor
tarwi
l
lcont
inuet
opl
ayani
mpor
tant
r
ole.Fort
hose,
whi
char
eyett
obegi
n,ar
eignor
ingt
hepot
ent
ialcust
omer
sby
r
emai
ningawayf
rom t
hel
atestt
echnol
ogy
.

1.
5TYPESOFI
NTERNETBANKI
NGORE-
BANKI
NG

Under
standi
ng t
he v
ari
ous t
ypes of I
nter
net banki
ng wi
l
lhel
p
exami
ner
sassesst
her
isksi
nvol
ved.Cur
rent
ly,
thef
oll
owi
ngt
hreebasi
cki
nds
ofI
nter
netbanki
ngar
ebei
ngempl
oyedi
nthemar
ket
place.
I
nfor
mat
ional
Thi
sist
hebasi
clev
elofI
nter
netbanki
ng.Ty
pical
l
y,t
hebankhas
mar
ket
ingi
nfor
mat
ionaboutt
hebank‘
spr
oduct
sandser
vicesonast
and-
al
oneser
ver
.Ther
iski
srel
ati
vel
ylow,
asi
nfor
mat
ionalsy
stemst
ypi
cal
l
yhav
e
nopat
hbet
weent
heser
verandt
hebank‘
sint
ernalnet
wor
k.Thi
slev
elof
I
nter
netbanki
ngcanbepr
ovi
dedbyt
hebanksorout
sour
ced.Whi
l
ether
iskt
o
abanki
srel
ati
vel
ylow,
theser
verorwebsi
temaybev
ulner
abl
etoal
ter
ati
on.
Appr
opr
iat
econt
rol
sther
efor
emustbei
n pl
acet
o pr
eventunaut
hor
ized
al
ter
ati
onst
othebank‘
sser
verorwebsi
te.
Communi
cat
ive
Thi
sty
pe of I
nter
net banki
ng sy
stems and t
he cust
omer
.The
i
nter
act
ionbet
weent
hebank‘
ssy
stem andt
hecust
omer
.Thei
nter
act
ion
may
bel
i
mit
edt
oel
ect
roni
cmai
l
,accountenqui
ry,l
oanappl
i
cat
ions,orst
ati
c
f
il
eupdat
es(
nameandaddr
esschange)
.Becauset
heseser
ver
smayhav
ea
pat
htot
hebank‘
sint
ernalnet
wor
ks,t
her
iski
shi
gherwi
tht
hisconf
igur
ati
on
t
hanwi
thi
nfor
mat
ionalsy
stems.Appr
opr
iat
econt
rol
sneedt
obei
nthepl
ace
t
opr
event
,moni
tor
,andal
ertmanagementofanyunaut
hor
izedat
temptt
o
accesst
hebank‘
sint
ernalnet
wor
ksandcomput
ersy
stems.Vi
ruscont
rol
s
al
sobecomemuchmor
ecr
it
ical
int
hisenv
ironment
.
Tr
ansact
ional

15
Thi
slev
elofI
nter
netbanki
ngal
l
owscust
omer
stoexecut
etr
ansact
ions.Si
nce
a pat
hty
pical
l
yexi
stsbet
ween t
heser
verand t
hebankorout
sour
cer
‘s
i
nter
nalnet
wor
k,t
hisi
sthehi
ghestr
iskar
chi
tect
ureand musthav
ethe
st
rongestcont
rol
s.Cust
omert
ransact
ionscani
ncl
udeaccessi
ngaccount
s,
pay
ingbi
l
ls,
transf
err
ingf
undset
c.

16
1.
6FEATURESOFE-
BANKI
NG
Tr
ansact
ional
:
(e.
g.per
for
ming a f
inanci
alt
ransact
ion such as an
accountt
oaccountt
ransf
er,pay
ingabi
l
lorappl
i
cat
ionsl
i
keappl
yi
ngf
ora
l
oan,
newaccount
,et
c.)
El
ect
roni
cBi
l
lPr
esent
mentandPay
ment(
EBPP)
Fundst
ransf
erbet
weencust
omer
sownchecki
ngandsav
ings
account
s,ort
oanot
hercust
omer
saccount
.
I
nvest
mentpur
chaseorsal
e.
Loanappl
i
cat
ionandt
ransact
ionssuchasr
epay
ment
s.

Non-
tr
ansact
ional
:

(
e.g.onl
i
nest
atement
s,Checkl
i
nks,
Chat
,Co-
browsi
nget
c.)

Fi
nanci
al I
nst
it
uti
on Admi
nist
rat
ion- f
eat
ures al
l
owi
ng f
inanci
al
i
nst
it
uti
onst
omanaget
heonl
i
neexper
ienceoft
hei
renduser
s.ASP/Host
ing
Admi
nist
rat
ion– f
eat
uresal
l
owi
ngt
hehost
ingcompanyt
oadmi
nist
ert
he
sol
uti
onacr
ossf
inanci
ali
nst
it
uti
on.

17
1.
7IMPORTANCEOFE-
BANKI
NG

E-
BANKI
NG

Theusageofebanki
ngbyt
heent
erpr
isescamei
ntoexi
stencei
nmi
d-
90’
s.
e banki
ng came i
nto exi
stence i
n gr
eat
ernumber
s because ofl
ow
oper
ati
ngcost
s.Fi
rsti
tisi
nthef
orm ofATM’
sandphonet
ransact
ions.
Recent
lyi
ttr
ansf
ormedt
oint
ernetanew channelbet
weencust
omer
sand
bankswhi
chbenef
it
sbot
h.Themai
nai
m ofe-banki
ngser
vicesi
stopr
ovi
de
t
hecust
omer
samuchf
ast
erser
viceswi
thl
ow cost
.Fr
om t
hel
astt
went
y
y
ear
s,banki
ngsect
orhaschosenanew met
hodofbanki
ngbasedont
he
pr
ogr
ess of i
nfor
mat
ion t
echnol
ogy
.In addi
ti
on t
o t
hese cust
omer
s,
t
ransact
ionandcommuni
cat
ionabi
l
iti
esar
efast
enedbasedoni
nfor
mat
ion
t
echnol
ogy
.

Thepr
ogr
essofel
ect
roni
cbanki
ngst
art
edwi
thuseofaut
omat
ict
ell
er
machi
nesandaf
ter
war
dsi
tdev
elopedt
oonl
i
nebanki
ng.I
nthef
utur
eitwi
l
lbe
donei
nmobi
l
ephones(
wap-
enabl
ed)
.Any
way
,onl
i
nebanki
ngcont
inuest
obe
t
hebestf
orf
inanci
alt
ransact
ions.

I
MPORTANCEOFE-
BANKI
NG

Ebanki
ngpr
ovi
desmanyadv
ant
agesf
orbanksandcust
omer
s.e-
banki
nghas
madel
i
femucheasi
erandbanki
ngmuchf
ast
erf
orbot
hcust
omer
sand
banks.

Mai
nadv
ant
agesar
easf
oll
ows.

 I
tsav
est
imespenti
nbanks
 I
tpr
ovi
desway
sfori
nter
nat
ional
banki
ng.
 I
tpr
ovi
desbanki
ngt
hroughoutt
hey
ear24/
7day
sfr
om anypl
ace
hav
eint
ernetaccess.
 I
t pr
ovi
des wel
l
-or
gani
zed cash management f
or i
nter
net
opt
imi
zat
ion
 I
tpr
ovi
desconv
eni
encei
nter
msofcapi
tal
,labour
,ti
meal
lthe
r
esour
cesneededt
omakeat
ransact
ion.
 Taki
ng adv
ant
age of i
ntegr
ated banki
ng ser
vices,banks may

18
 compet
einnew mar
ket
s,cangetnew cust
omer
sandgr
ow t
hei
r
mar
ketshar
e.
 I
tpr
ovi
dessomesecur
it
yandpr
ivacyt
ocust
omer
s,byusi
ngst
ate-
of
-
the-
artencr
ypt
ionandsecur
it
ytechnol
ogi
es.

19
1.
8ADVANTAGES&DI
S-ADVANTAGESOFE-
BANKI
NG

Wef
indt
hatt
her
ear
emanyadv
ant
agesofE-
banki
ngl
i
ke:
Onl
i
nebanki
nggi
vesmor
eint
erestr
atest
hananyot
herf
orm of
banki
ngandal
sosav
esl
otofexpenses.

We can car
ry out al
lbanki
ng t
ransact
ions at our own
conv
eni
enceanddonothav
etodependonnor
mal
bankt
imi
ngs.

Lot of pr
eci
ous t
ime i
s sav
ed because of e-banki
ng,as
t
ransact
ions ar
e car
ri
ed outi
n seconds and we can see t
he
updat
esi
mmedi
atel
y.

Si
nceev
ery
thi
ngi
scomput
eri
zed,wesav
eal
lthepaperwor
kandwe
sav
ethet
roubl
eofmai
ntai
ningphy
sicalr
ecor
ds.Ther
eisnot
hing
manual
hencet
her
ecor
dsar
eper
fectandaccur
ate.

Banksal
sopr
ovi
debal
anceal
ert
sifourbal
ancer
educesandal
ert
s
t
hecust
omeri
ncaseofduedat
esofourbi
l
loccur
s.

Ther
e ar
e no ex
tra char
ges and t
hese e-
banki
ng ser
vices ar
e
absol
utel
yfr
ee.Pr
evi
ousl
ybanksusedt
ochar
geheav
il
yforal
lthei
r
ser
vices.

Ther
eisi
mpr
ovementi
ncust
omeraccess,si
ncet
hebankcan
accessmor
ecust
omer
swi
thi
nashor
tti
met
hrought
hei
nter
net
.

The cust
omer
s can be of
fer
ed mor
e ser
vices t
hrough onl
i
ne
banki
ng.

Ther
ear
eal
sosomedi
sadv
ant
agesofonl
i
nebanki
ngwhi
chr
est
ri
cts
peopl
etouset
hisser
vice,
li
ke:

E-
banki
ng has r
educed t
he bank t
o cust
omerper
sonal

20
 i
nter
act
ion,si
nceal
lthet
ransact
ionsar
ehandl
edbyt
he
cust
omerf
rom t
hei
nter
netaccountt
her
eisnoper
sonal
i
zed
banki
ngser
vicewhi
chr
educescust
omert
obanki
nter
act
ion.
Wheny
ouar
eent
eri
nge-
banki
ngi
nst
ruct
ionst
her
eisal
way
sa
chancet
hatt
hei
nfor
mat
ionmaybel
eakedory
ouraccountcanbe
hackedandal
lyourconf
ident
iali
nfor
mat
ioni
sleaked.Ther
ear
e
manybankst
hathav
egoodsecur
it
ysy
stemst
oguar
dsucht
hef
ts.

Youcanaccessy
ouronl
i
nebanki
ngaccountbyent
eri
ngy
ourper
sonal
i
dent
if
icat
ion and y
ourpasswor
d.Thi
s passwor
d can be used by
any
onet
oaccessy
ouraccountandt
ransf
erf
undsorcausef
inanci
al
pr
obl
ems.Wher
eas when y
ou ar
evi
sitt
he bank per
sonal
l
yyour
accounti
shandl
edbyt
hebankst
affandt
her
efor
eyourconf
ident
ial
i
nfor
mat
ioncannotbev
iewedbyany
one.Al
soal
lyouri
nst
ruct
ionsar
e
gi
veni
nwr
it
ingwi
thy
oursi
gnat
ure,
ther
efor
ether
ear
elesschancesof
f
raudandi
nfor
mat
ionl
eak.

Wheny
ouar
eusi
ngi
nter
netbanki
ngt
hei
nter
netsecur
it
yisabi
g
pr
obl
em f
acedbymanybanks.Sot
hecust
omermustbeawar
eoft
he
secur
it
yissuesandpr
otectt
hei
rident
it
yandot
herper
sonaldet
ail
s
f
rom hacker
s.

Tomakeonl
i
nebanki
ngasaf
eandsecur
ebanki
ngexper
iencey
ouneedt
o
f
oll
owt
hesest
eps:

Av
oidaccessi
ngy
ouraccountf
rom acy
bercaf
éorashar
edcomput
er.
I
fyouar
ehappent
odosot
henchangey
ourpasswor
dassoonasy
ou
f
ini
shy
ourbanki
ngt
ransact
ion.

Ev
eryt
imey
ouf
ini
shusi
ngy
ouronl
i
nebanki
ngsessi
ont
hensi
gnout
f
rom t
hesi
ter
athert
henj
ustcl
osi
ngt
hebr
owser
.

Change y
ouri
nter
netbanki
ng passwor
d af
tery
ourf
ir
stl
ogi
n and

21
 t
her
eaf
terr
egul
arl
y.

Usecompl
exanddi
ff
icul
tpasswor
dandmakei
tdi
ff
icul
tforot
her
sto
guess.

Usedi
ff
erenti
dandpasswor
dfordi
ff
erenti
nter
netaccount
s.

Nev
ershar
eyourpasswor
dsorl
ogi
ndet
ail
swi
thany
body
.

Vi
ewy
ouraccountdai
l
yandchecki
twi
thy
ourt
ransact
ions,i
fther
eis
anyt
hingwhi
chdoesnott
all
ywi
thy
ouri
nst
ruct
ionst
heni
nfor
myour
banki
mmedi
atel
y.

Theadv
ant
agesofonl
i
nebanki
ngout
numberi
tsdi
sadv
ant
agesand
t
her
efor
ethi
sfor
m ofbanki
nghasbecomev
erypopul
arwi
tht
hecust
omer
s.
I
nthi
smoder
nageofbanki
ng,
onl
i
nebanki
ngornetbanki
nghasmadet
hings
easi
erf
orpeopl
eandsav
esl
otoft
ime.Thoughi
nter
netbanki
ngi
stheneed
ofev
erycust
omer
,somebanksar
est
il
lnothav
ingadv
ancef
eat
uresl
i
ke
t
ransf
err
ingmoneyt
oanybankacr
osst
hecount
ryoreasyr
egi
str
ati
onf
ornet
banki
ng,
thi
sisbecausesomebanksar
esi
tuat
edi
nther
uralar
easwher
ethe
useofcomput
ersi
snotcommon.Al
lcust
omer
sofal
lbankscanbel
i
nkedby
netbanki
ngonl
yift
echnol
ogyr
eachesev
ent
hemostr
emot
ear
easoft
he
count
ry.

22
1.
9MEDI
UMSOFE-
BANKI
NG
Var
ious pr
oduct
s and ser
vices El
ect
roni
c banki
ng,al
so known
el
ect
roni
cfundt
ransf
er(
EFT)
,usescomput
erandel
ect
roni
ctechnol
ogyasa
subst
it
utef
orchecksandot
herpapert
ransact
ions.EFTsar
eini
ti
atedt
hrough
dev
icesl
i
kecar
dsorcodest
hatl
ety
ou,ort
hosey
ouaut
hor
ize,accessy
our
account
.Manyf
inanci
ali
nst
it
uti
onsuseATM ordebi
tcar
dsandPer
sonal
I
dent
if
icat
ionNumber
s(PI
Ns)f
ort
hispur
pose.Someuseot
herf
ormsof
debi
tcar
dsandper
sonalI
dent
if
icat
ionNumber
s(PI
Ns)f
ort
hispur
pose.
Someuseot
herf
ormsofdebi
tcar
dssuchast
hoset
hatr
equi
re,
att
hemost
,
y
oursi
gnat
ureorascan.Thef
eder
alEl
ect
roni
cFundTr
ansf
erAct(
EFTAct
)
cov
erssomeel
ect
roni
cconsumert
ransact
ions.

Fol
l
owi
ngar
etheel
ect
roni
cmedi
um bywhi
chser
vicesar
egener
all
ypr
ovi
ded
byt
hebanksasapar
tofe-
banki
ngser
vices.
I
nter
netBanki
ng
ATM (
Aut
omat
icTel
l
erMachi
ne)
PhoneBanki
ng
Mobi
l
eBanki
ng
Pay
mentCar
ds(
Debi
ts/
Credi
tCar
d)
Al
ltheabov
emedi
umspr
ovi
deser
vices,
whi
chcanbe,
alsoknowasany
t
imeany
wher
ebanki
ng‖
.Thi
sfaci
l
itat
est
hecust
omeroft
hebankt
ooper
ate
t
hei
raccountf
rom anycor
neroft
hewor
ld,wi
thoutv
isi
ti
ngl
ocalorany
subsi
diar
ybr
anchoft
hei
rbanks.Ef
for
tsar
emadebyt
hebanknotonl
yto
pr
ovi
det
hef
aci
l
ityt
othecust
omer
,butal
sot
oreducet
heoper
ati
onalcostof
t
hebankbypr
ovi
dinge-
banki
ngser
vices.Sowi
tht
his,bankshav
etoempl
oy
l
essst
affandst
il
lwoul
dbeabl
etodel
i
verser
vicet
othecust
omer,
roundt
he
cor
ner
.

23
 1)I
nter
netBanki
ng

Netbanki
ng i
s a web-
based ser
vice t
hatenabl
es t
he banks aut
hor
ized
cust
omer
stoaccesst
hei
raccounti
nfor
mat
ion.I
tal
l
owst
hecust
omer
stol
og
ont
othebankswebsi
tewi
tht
hehel
pofbank‘
sissuedi
dent
if
icat
ionand
per
sonali
dent
if
icat
ionnumber(
PIN)
.Thebanki
ngsy
stem v
eri
fi
est
heuser
andpr
ovi
desaccesst
other
equest
edser
vices,t
her
ageofpr
oduct
sand
ser
viceof
fer
edbyeachbankont
hei
nter
netdi
ff
erswi
del
yint
hei
rcont
ent
.
Mostbanksof
fernetbanki
ngasav
alue-
addedser
vice.Netbanki
nghasal
so
l
edt
otheemer
gentofnewbanks,
whi
choper
ateonl
ythr
ought
hei
nter
netand
donotexi
stsphy
sical
l
y,Suchbanksar
ecal
l
edv
irt
ualbanksor―I
nter
netOnl
y
banks.
A coupl
e ofy
ear
s ago,t
her
e was a bel
i
efev
en among banker
sthat
cust
omer
sopeni
ngnew account
swant
edt
heonl
i
nebanki
ngf
aci
l
ity
,justt
o
‗
feelgood‘andv
eryf
ewoft
hem act
ual
l
yusedt
hatser
vices.Today
,banker
s
bel
i
evet
hatt
het
rendf
rom ‗
nicet
ohav
e‘i
schangi
ngt
o‗needt
ohav
e‘.
aft
er
al
li
tdependsonhowbusyaper
soni
s.

 Ser
vicespr
ovi
dedt
hroughI
nter
netBanki
ng
1)Accounti
nfor
mat
ion
2)E-
cheques(
Onl
i
neFundTr
ansf
er)
3)Bi
l
lPay
mentSer
vice
4)Request
sAndI
nti
mat
ions
5)DematAccountshar
etr
adi
ng

Accounti
nfor
mat
ion
Pr
ovi
dessummar
yofal
lbankaccount
s.Al
l
ow t
ransact
iont
racki
ngwhi
ch

24
enabl
es r
etr
iev
aloft
ransact
iondet
ail
sbasedonchequenumber
,tr
ansact
ion
amount
,anddat
e.Pr
ovi
deaccountst
atementandt
ransact
ionr
epor
tsused
on user
-def
ined cr
it
eri
a.Cust
omer
s can ev
en downl
oad and pr
intt
he
st
atementofaccount
s.
E-
Cheques(
Onl
i
neFundTr
ansf
er)
Cust
omercant
ransf
erf
unds:Tr
ansf
erf
undsbet
weenaccount
s,ev
eni
fthey
ar
eindi
ff
erentbr
anches‘ci
ti
esCust
omercanal
sot
ransf
erf
undst
oany
per
sonhav
inganaccountwi
tht
hesamebankany
time,any
wher
e,usi
ngt
hir
d
par
tyf
undst
ransf
eropt
ion.
Bi
l
lPay
mentSer
vice
BanksBi
l
lPayi
stheeasi
estwayt
omanagebi
l
ls.A/
chol
dercanpayt
hei
r
r
egul
armont
hlybi
l
lsi
.e.t
elephone,
elect
ri
cit
y,mobi
l
ephone,
insur
anceet
c.at
any
time,any
wher
eforf
ree.Sav
est
imeandef
for
t.Makebi
l
lpay
ment
sat
cust
omer
‘sconv
eni
encef
ormt
hei
rhomeorof
fi
ce.Let
’sa/
chol
der
scheck
t
hei
rhi
l
lamountbef
orei
tisdebi
tedf
ormt
hei
raccount
.Nodebi
tst
oaccount
wi
thoutt
hei
rknowl
edge.Nomor
emi
sseddeadl
i
nes,nomor
elossofi
nter
est
– a/
c hol
dercan schedul
ethei
rbi
l
lsi
n adv
ance,av
oid mi
ssi
ng t
he bi
l
l
deadl
i
nesaswel
lasear
next
rai
nter
estont
hei
rmoney
.Tr
ackpay
menthi
stor
y
–al
lpay
ment
stoabi
l
lerar
est
oredaut
omat
ical
l
yforf
utur
eref
erence.No
queui
ngupatcol
l
ect
ioncent
ersorwr
it
ingchequeanymor
e!Justaf
ewcl
i
cks
andcust
omer
saccountwi
l
lbedebi
tedf
ort
heex
actamountt
heyask.
Request
sAndI
nti
mat
ionsCanel
ect
roni
cal
l
ysubmi
tar
equestf
or:
Cheque-
book
St
oppay
menti
nst
ruct
ions
Openi
ngaf
ixeddeposi
t
Openi
ngar
ecur
ri
ngdeposi
t
I
nti
mat
efort
hel
ossofATM car
d
Regi
steronl
i
nef
orphoneandmobi
l
ebanki
ng
Chequest
atusOnl
i
neappl
i
cat
ionf
ordebi
tcar
d
I
ssueaDDoraBanker
‘schequef
orm accountatspeci
alr
ates.Just
sel
ectt
heaccountt
obedebi
tedf
orm andgi
vedet
ail
soft
heamount
,
l
ocat
ionandbenef
ici
ary
.Thedemanddr
aftwi
l
lbecour
ier
edt
oa/
c
hol
deratt
hei
rmai
l
ingaddr
ess.
Cust
omer
scangett
hei
rappl
i
cat
ionsf
ori
ssuanceofLet
ter
sofCr
edi
t

25
 andBank
Guar
ant
eespr
ocessedonl
i
ne.
Booky
ourRai
l
way
sTi
cketOnl
i
ne.
DematAccountandShar
eTr
adi
ng

DematAccount
Demati
s commonl
y used abbr
evi
ati
on ofdemat
eri
ali
zat
ion whi
ch i
sa
pr
ocesswher
ebysecur
it
iesl
i
keshar
e,debent
uresar
econv
ert
edf
ormt
he
mat
eri
al(
Paperdocument
s)unt
oel
ect
roni
cdat
aandst
oredi
nthecomput
er
ofanel
ect
roni
cDeposi
tor
y.
Adeposi
tor
yisasecur
it
ybanks,
‘wher
edemat
eri
ali
zedphy
sical
secur
it
iesar
e
hel
dincust
ody
,andf
orm wher
etheycanbet
raded.Thi
sfaci
l
itat
esf
ast
er,
risk
-
fr
eeandl
owcostset
tl
ement
.

Shar
eTr
adi
ng
I
n shar
etr
adi
ng a cust
omercan buyand sel
lsecur
it
ies onl
i
ne wi
thout
st
eppi
ngi
ntoabr
oker
‘sof
fi
ce.Oncet
heshar
ear
edemat
eri
ali
zedt
hent
he
t
radi
ngcanbedonef
rom homeorof
fi
ce.Asdemata/
car
edi
rect
lyl
i
nkedt
o
t
hecust
omer
‘sbanka/
c,sot
her
eisnoneedt
owr
it
echequef
ort
hepay
ment
s
ort
ofi
l
lupt
hesl
i
pst
odeposi
tthecheque.
Amountf
ort
hepur
chaseandsal
e
ofsecur
it
iesi
saut
omat
ical
l
ydebi
tedorcr
edi
tedt
othei
rbanka/
c.i
tal
so
br
ingst
hesameconv
eni
encewhi
l
einv
est
ingi
nMut
ualf
undsal
soHassl
efr
ee
andPaper
less.

2)ATM (
Aut
omat
icTel
l
erMachi
ne)
Aut
omat
edTel
l
erMachi
nesor24-
hourTel
l
ersar
eel
ect
roni
cter
minal
s
t
hatl
ety
ou bankal
mostany
time.To wi
thdr
aw cash,makedeposi
ts,or
t
ransf
erf
undsbet
weenaccount
s,y
ougener
all
yinser
tanATM car
dandent
er
y
ourPI
N.Somef
inanci
ali
nst
it
uti
onandATM owner
schar
geaf
ee,
par
ti
cul
arl
y
t
o consumer
s who don‘
thav
e account
s wi
tht
he mor
on t
ransact
ions at
r
emot
elocat
ions.Gener
all
y,ATMsmustt
elly
out
heychar
geaf
eeandi
ts
amountonoratt
het
ermi
nalscr
eenbef
orey
oucompl
etet
het
ransact
ion.
Checkt
her
ulesofouri
nst
it
uti
onandATMsy
ouuset
ofi
ndoutwhenor

26
whet
heraf
eei
schar
ged.
I
twon‘
tbej
usti
fIst
artexpl
aini
ngwhatanATM i
s.ATMsandcash
di
spenser
sar
ebyf
art
hel
argesti
nvest
mentev
ermadei
nel
ect
roni
csel
f-
ser
vicebyf
inanci
ali
nst
it
uti
ons.Ov
erUS$40bi
l
li
onhasbeeni
nvest
edi
n
si
mpl
ybuy
ingt
hesemachi
nesandmanyt
imest
hati
nrunni
ngt
hem.Ther
e
ar
enowov
er1.
1mi
l
li
onmachi
nesoper
ati
ngi
nov
er140count
ri
eswor
ldwi
de.
Thebanksar
elosi
ngt
hecashi
erschecks,checkcashi
ngandev
en
cashdi
spensi
ngt
othe-
stor
esandgr
ocer
yst
ores.Theyar
easl
eepatt
he
swi
tchandwat
chi
ngmor
etr
ansact
ionswal
kawayt
oconv
eni
encest
oresand
super
mar
ket
sthatpr
ovi
de24houraccessandi
ntegr
atedt
ransact
ions.
ATMsdopr
ovi
deal
argersetoff
unct
ions,suchascheckcashi
ng,
t
icketsal
esormoneyor
der
s.Weal
readyknow t
hatcashdi
spensi
ngasa
dedi
cat
edf
unct
ioni
sasust
ainabl
eappl
i
cat
ions,t
hequest
ioni
swhet
hert
hat
appl
i
cat
ioncanbei
ncor
por
atedsuccessf
ull
yint
oamor
ecompl
exconsumer
pr
oductt
hatof
fer
smul
ti
pleappl
i
cat
ions.I
tiswor
thnot
ingt
hat
,duet
omar
ket
sat
urat
ion,
over
all
ATM usagei
sincr
easi
ngwhi
l
etr
ansact
ionv
olumeonaper
-
ATM basi
sisnowi
ndecl
i
ne.
Cashwi
thdr
awal
Wi
thdr
aw upt
oRs.
15,
000/
-perdayf
rom y
ouraccount
.Fastcashopt
ions
pr
ovi
dest
hef
aci
l
ityofwi
thdr
awi
ngpr
efi
xedamount
s.Ul
tr
aFastCashopt
ion
al
l
owsy
out
owi
thdr
awRs.
3000/
-inoneshot
.
Bal
anceEnqui
ry
Knowy
ourl
edgerbal
anceandav
ail
abl
ebal
ance
Mi
niSt
atement
Getapr
int
outofy
ourl
ast8t
ransact
ionsandy
ourcur
rentbal
ance.
Deposi
tCash/Cheques
Av
ail
abl
eatal
lful
lfunct
ionATMs.Cust
omer
scandeposi
tbot
hcashand
cheques.Cashdeposi
tedi
nATMswi
l
lbecr
edi
tedt
otheaccountont
hesame
day(
prov
idedcashi
sdeposi
tedbef
oret
hecl
ear
ing)andchequesar
esentf
or
cl
ear
ingont
henextwor
kingday
.
FundsTr
ansf
er:
Tr
ansf
erf
undsf
rom oneaccountt
oanot
herl
i
nkedaccounti
nthesame
br
anch.

27
PI
NChanges
Changet
hePer
sonal
Ident
if
icat
ionNumber(
PIN)ofATM orDebi
tcar
d.
Pay
ment
s
Thel
atestf
eat
ureofourATMs,t
hisf
unct
ional
i
tycanbeusedf
orpay
mentof
bi
l
ls,maki
ngdonat
ionst
otempl
es/t
rust
s,buy
ingi
nter
netpacks,ai
rt
ime
r
echar
gesf
orpr
epai
dmobi
l
ephonesandmuchmor
e.
Ot
her
s
Requestf
oraeckbookf
rom ourATMsandourconcer
nedbr
anchwi
l
ldi
spat
ch
i
tsucht
hati
treachesy
ouwi
thi
n10wor
kingday
s.
ATM Adv
ant
ages
24-
houraccesst
ocash
Youcanwi
thdr
awupt
oRs.10,
000/
-perdayony
ourATM Car
d.Thef
astcash
opt
ionsav
esy
ourt
imebypr
ovi
dingt
hecashi
ndenomi
nat
ionsofRs.500/
-
Bal
ancei
nqui
ry
Yourupdat
edbal
ancewi
l
lappearont
hescr
eenandwi
l
lal
sobepr
int
edont
he
t
ransact
ionsl
i
p.
Mi
ni-
stat
ementr
equest
Getdet
ail
soft
hel
ast9t
ransact
ionsony
ouraccountwi
tht
hemi
ni-
stat
ement
,
al
ongwi
thy
ourbal
ance.
Chequebookr
equest
Sendusar
equestf
orachequebookoraccountst
atementi
twi
l
lar
ri
veaty
our
door
step.
Fundst
ransf
er
Tr
ansf
ermoneyf
rom oneofy
ouraccount
stoanot
her
.It
‘seasy
,sel
ectt
he
accountf
rom whi
chy
ouwantt
otr
ansf
er,t
heni
ndi
cat
etheamountandt
he
accountt
owhi
chy
ouwanti
ttr
ansf
err
ed.Bot
haccount
smustbel
i
nkedt
o
y
ourATM car
dandcust
omerI
D.A maxi
mum of5sav
ingand5Cur
rent
account
scanbel
i
nked.
PI
Nchange
Yourcanconv
eni
ent
lychar
gey
our(
PIN)gi
venatt
het
imeofopeni
ngy
our
account
)whenev
ery
ou wi
sh.St
ayt
otal
l
yin cont
roland ensur
ecompl
ete
secur
it
yfory
ourATM Car
d.
Bi
l
lPay
Payy
ourcel
l
ular
,tel
ephoneandel
ect
ri
cit
ybi
l
lsusi
ngy
ourATM Car
d.

28
29
 3)Tel
ebanki
ngorPhoneBanki
ng:
Tel
ephone banki
ng i
srel
ati
vel
y new El
ect
roni
c Banki
ng Pr
oduct
.
Howev
eri
tisf
ast
lybecomi
ngoneoft
hemostpopul
arpr
oduct
s.Cust
omer
canper
for
m anumberoft
ransact
ionsf
rom t
heconv
eni
enceoft
hei
rown
homeorof
fi
ce;i
nfactf
rom any
wher
etheyhav
eaccesst
ophone.Cust
omer
s
candof
oll
owi
ng:
-
Checkbal
ancesandst
atementi
nfor
mat
ion
Tr
ansf
erf
undsf
rom oneaccountt
oanot
her
Paycer
tai
nbi
l
ls
Or
derst
atement
sorchequebooks
Demanddr
aftr
equest
.

Thi
sfaci
l
ityi
sav
ail
abl
ewi
tht
hehel
pofVoi
ceResponseSy
stem (
VRS)
.
Thi
s sy
stem basi
cal
l
y,accept
s onl
y TONE di
aled i
nput
.Li
ke t
he ATM
cust
omerhas t
ofol
l
ow par
ti
cul
arpr
ocess,i
nit
ial
l
yaccountnumberand
t
elephonePI
Nar
efedf
ort
hepr
ocesst
ost
art
.Al
sot
heVRSsy
stem pr
ovi
des
t
heuser
swi
thi
naddi
ti
onalf
aci
l
iti
essuchaschangi
ngexi
sti
ngpasswor
dwi
th
t
henewdesi
red,
inf
ormat
ionaboutnewpr
oduct
s,cur
renti
nter
estr
ateset
c.

30
 4)Mobi
l
eBanki
ng:
Mobi
l
ebanki
ngcomesi
nasapar
toft
hebanksi
nit
iat
ivet
oof
fer
mul
ti
plechannel
sbanki
ngpr
ovi
dingconv
eni
encef
ori
tscust
omer
.Av
ersat
il
e
mul
ti
funct
ional
,fr
eeser
vicet
hati
saccessi
bleandv
iewabl
eont
hemoni
torof
mobi
l
ephone.Mobi
l
ephonesar
epl
ayi
nggr
eatr
olei
nIndi
anbanki
ng-bot
h
di
rect
lyand i
ndi
rect
ly.Theyar
e bei
ng used bot
h as banki
ng and ot
her
channel
s.
Mobi
l
e Banki
ng r
efer
sto pr
ovi
sion and ai
l
mentofbanki
ng-and
f
inanci
alser
viceswi
tht
hehel
pofmobi
l
etel
ecommuni
cat
iondev
ices.The
scopeofof
fer
edser
vicesmayi
ncl
udef
aci
l
iti
est
oconductbankandst
ock
mar
kett
ransact
ions,t
o admi
nist
eraccount
s and t
o access cust
omi
zed
i
nfor
mat
ion.
Accor
dingt
othi
smodelMobi
l
eBanki
ngcanbesai
dtoconsi
stoft
hreei
nter
-
r
elat
edconcept
s:
Mobi
l
eAccount
ing
Mobi
l
eBr
oker
age
Mobi
l
eFi
nanci
alI
nfor
mat
ionSer
vices
Mostser
vicesi
nthecat
egor
iesdesi
gnat
edAccount
ingandBr
oker
age
ar
e t
ransact
ion-
based. The non-
tr
ansact
ion-
based ser
vices of an
i
nfor
mat
ionalnat
urear
ehowev
eressent
ialf
orconduct
ingt
ransact
ions-f
or
i
nst
ance,bal
ancei
nqui
ri
esmi
ghtbeneeded bef
orecommi
tt
ing amoney
r
emi
tt
ance.Theaccount
ing and br
oker
ageser
vicesar
ether
efor
eof
fer
ed
i
nvar
iabl
yincombi
nat
ionwi
thi
nfor
mat
ionser
vices.I
nfor
mat
ionser
vices,on
t
heot
herhand,
maybeof
fer
edasani
ndependentmodul
e.

31
32
 5)Pay
mentCar
ds(
Debi
ts/
Credi
tCar
d)

Thecar
dindust
ry,whi
chi
sgr
owi
ngatt
her
ateof20% perannum,i
s
f
loodedwi
thcar
dsr
angi
ngf
rom gol
d,si
l
ver
,gl
obal
,smar
ttosecur
ethel
i
sti
s
endl
ess.Fr
om j
ustt
wopl
ayer
sinear
ly80s,t
hei
ndust
rynowhousesov
er10
maj
orpl
ayer
svy
ingf
oramaj
orchunkoft
hecar
dpi
e.
Cur
rent
lyf
ourmaj
orbi
shopsar
erul
i
ngt
hecar
dempi
re– Ci
ti
bank,
St
andar
dChar
ter
edBank.HSBCandSt
ateBankofI
ndi
a(SBI
).Thei
ndust
ry,
whi
chi
scat
eri
ngt
oov
er3.
8mi
l
li
oncar
duser
s,i
sexpect
edt
odoubl
ebyt
he
f
iscal2003.Accor
dingl
ytoast
udyconduct
edbySt
atebankofI
ndi
a,Ci
ti
bank
i
sthedomi
nantpl
ayer
,hav
ingi
ssued1.
5mi
l
li
oncar
dssof
ar.St
anchar
t
f
oll
owswaybehi
ndwi
th0.
67mi
l
li
on,
whi
l
eHongKongBankhas0.
3mi
l
li
on
cr
edi
tcar
dcust
omer
s.Amongt
henat
ional
i
zedbanks,SBIt
opst
hel
i
stwi
th
0.
28mi
l
li
oncar
ds,
fol
l
owedbyBl
anksofBar
odaat0.
22mi
l
li
on.
Thecr
edi
tcar
dmar
keti
nIndi
a,whi
chst
art
edouti
n1981,i
sont
he
v
ergeofanunpr
ecedent
edboom.Bet
ween1987and2000,t
hemar
kethas
v
irt
ual
l
ygr
ownt
oov
er3.
8mi
l
li
oncar
dswi
thal
most25-
30% gr
owt
hinnew
car
dhol
der
s.
Thel
atesti
nnov
ati
oni
ncr
edi
tcar
dsi
sthei
ntr
oduct
ionofamagnet
ic
sl
i
pint
hecar
dforusei
nwi
thdr
awi
ngcashatt
heaut
omat
ict
ell
ermachi
ne
(
ATM)
,ofwhi
chabut60000ar
eal
readyi
nexi
stencei
nthewor
ld.I
nIndi
aal
so
ATMshav
emadel
ateappear
ance,butnow spr
eadi
ngv
eryr
api
dly
.Asper
st
ati
sti
cspubl
i
shedbyRBIt
her
ear
e895ATMsi
nIndi
aasatt
heendoft
he
y
ear2001buti
tisal
sor
egul
arl
yincr
easi
ng.
Adv
ant
agesofCr
edi
tCar
d
Thef
oll
owi
ngar
etheadv
ant
agesofcr
edi
tcar
ds:
1.
Thecr
edi
tcar
dhol
der
sneednott
ocar
ryei
thert
rav
eler
‘schequesorcash
wi
tht
hem andt
heyar
efr
eef
rom t
hesecur
it
yofcash.
2.
Trav
eli
ngf
aci
l
iti
esar
eav
ail
abl
einhot
els,r
est
aur
ant
sandai
rway
stot
he
car
dhol
der
s.
3.
Eachcar
dhol
derget
sinsur
ancef
aci
l
itywhi
chi
supt
oonel
akhonor
dinar
y
i
nsur
ance.
4.
Ithasbecomeast
atussy
mbol
.Rai
l
wayt
icket
sar
eav
ail
abl
eonspeci
al
wi
ndows.Ext
rachar
gesar
emadebyt
her
ail
wayandt
hecancel
l
ati
onof

33
t
icket
sisal
soal
l
owedandt
heamounti
sdi
rect
lycr
edi
tedi
nthebankaccount
oft
hecar
dhol
der
.

5.
Thebusi
nessoft
hecar
dhol
deri
ndi
vi
dual
sori
nst
it
uti
onhasbeenbecause
t
hebusi
nessmenar
eassur
edf
ort
hepay
mentast
het
ransact
ionshav
ebeen
f
inal
i
zedont
hebasi
sofcr
edi
tcar
ds.
6.
Credi
tcar
dsenhancet
hecr
edi
tofbanksandt
hecr
edi
tofnewcust
omer
s
andconsumer
sisenhanced.
7.
Deposi
tsi
nsav
ingandcur
rentaccount
sincr
ease.
8.
Ser
vicechar
gesoncr
edi
tcar
dincr
easet
hepr
ofi
tabi
l
ityofbanks.

Di
sadv
ant
agesofCr
edi
tcar
dsi
tsownDi
sadv
ant
agesasdi
scussedbel
ow:
1.
Credi
tcar
disacont
acti
nadv
anceandi
fthecar
dhol
derdoesnotmake
pay
ment
,ther
ecov
erybybankbecomesdi
ff
icul
t.
2.
Car
dhol
der
sspendi
nexcessoft
hei
rincomesandi
tposest
hepr
obl
em of
r
ecov
eryf
ormt
hem.
3.
Bank‘
spr
ofi
tabi
l
ityi
sadv
ersel
yaf
fect
edduet
oincr
easei
nov
erdr
aftof
car
dhol
der
sanddi
ff
icul
ti
esi
nrepay
mentbyt
hem.

Fut
ureofCr
edi
tCar
ds
I
nIndi
athi
sfaci
l
ityhasi
ncr
easedt
hebusi
nessact
ivi
ti
es;mi
ddl
eand
uppermi
ddl
ecl
assesar
eav
ail
i
ngt
hisf
aci
l
ity
.Ithasbecomepopul
arand
st
atussy
mbol
inourcount
ryhencet
hepr
ospect
sofcr
edi
tcar
dsar
ebr
ight
.

Smar
tCar
ds
Asmar
tcar
dresembl
esacr
edi
tcar
dexceptt
hati
thasami
crochi
p
embeddedwi
thi
nit
,whi
chal
l
owst
hesmar
tcar
dtost
orei
nfor
mat
ionand
somet
imest
oev
enper
for
m si
mpl
ecal
cul
ati
ons.Commonsmar
tcar
dchi
ps
t
ypi
cal
l
yhol
dsabout8,
000by
tes(
char
act
ers)ofi
nfor
mat
ion,whi
chenabl
es
t
hesmar
tcar
dtoper
for
m av
ari
etyoff
unct
ionssuchasi
dent
if
icat
ion,
stor
ing
bankaccounti
nfor
mat
ionanhol
dingdi
git
alcash.
Anumberofsmar
tcar
dsar
eont
hemar
kett
oday
,andt
hesear
eusedi
n
awi
der
angeofappl
i
cat
ions.Mondexhasr
ecei
vedal
otofr
ecogni
ti
oni
nthe

34
f
inanci
alpr
ess,and sev
eralbankshav
eal
readyconduct
ed t
ri
alswi
thi
ts
smar
tcar
d.Wel
l
sFar
go&Co.
,amaj
orCal
i
for
niabankbasedi
nSanFr
anci
sco,
wi
l
lissueMondexsmar
tcar
dst
oal
lofi
tsonl
i
nebanki
ngcust
omer
sin2998,
a
numberwhi
ch coul
dreach i
ntot
he hundr
eds oft
housands.Because
Mast
erCar
dInt
ernat
ionalhol
dsa51%st
akei
nMondex,i
tcoul
dbecomet
he
def
act
oint
ernat
ional
standar
dforbank-
issuedsmar
tcar
ds.
Smar
tCar
ds–ThenewI
nnov
ati
on
Asmar
tcar
disami
niat
uri
zedper
sonalcomput
er(
PC)
,whi
chcanbe
usedf
oradazzl
i
ngar
rayofappl
i
cat
ions,
andal
soas‗
digi
tal
‘cash.I
tcont
ains
a mi
cro pr
ocessor
,memor
yand t
ail
ored sof
twar
e.The sof
twar
e secur
it
y
sy
stem usedf
ort
hesecar
dsi
sal
mostasf
oolpr
oofast
hoseusedbynucl
ear
est
abl
i
shment
sandl
eadi
ngi
nter
nat
ionalbanks!Smar
tcar
dscanmanage
secur
it
y pr
ocedur
es usi
ng passwor
ds and st
ate-
of-
the-
art encr
ypt
ion
t
echni
ques.Fur
ther
,ident
it
ytr
ait
ssuchasdi
git
izedphot
os,si
gnat
uresand
f
inger
pri
ntsbei
ngpl
acedont
hecar
dmakei
tfr
aud-
proof
.

35
36
1.
10USAGEOFE-
BANKI
NG
Ther
isei
nthee-
commer
ceandt
heuseofi
nter
neti
nit
sfaci
l
itat
ion
al
ong wi
tht
he enhanced onl
i
ne secur
it
y oft
ransact
ions and sensi
ti
ve
i
nfor
mat
ionhasbeent
hecor
ereasonf
ort
hepenet
rat
ionofonl
i
nebanki
ngi
n
ev
ery
dayl
i
fe.Accor
ding t
othe l
atestof
fi
cialf
igur
es f
rom t
he of
fi
ce of
Nat
ionalSt
ati
sti
cs(ONS2007)i
ndi
cat
ethatsubscr
ipt
ionst
othei
nter
nethas
gr
ownmor
ethan50%f
rom 25mi
l
li
oni
n2005t
o45mi
l
li
oni
n2007i
nIndi
a.I
t
hasal
sobeenest
imat
edt
hat60% oft
hepopul
ati
oni
nIndi
ausei
nter
neti
n
t
hei
rdai
l
yli
ves.The f
undament
alshi
ftt
owar
ds t
he i
nvol
vementoft
he
cust
omeri
nthef
inanci
alser
vicepr
ovi
sionwi
tht
hehel
poft
het
echnol
ogy
especi
all
yint
ernethashel
pedt
oreducet
hecost
soff
inanci
ali
nst
it
uti
onsas
wel
lashel
pedcl
i
entt
ouset
heser
viceatany
timeandf
rom v
irt
ual
l
yany
wher
e
wi
thaccesst
oani
nter
netconnect
ion.Theuseofel
ect
roni
cbanki
nghas
r
emov
edper
sonnelt
hatf
aci
l
itat
ethet
ransact
ionsandhaspl
acedaddi
ti
onal
r
esponsi
bil
i
ties on t
he cust
omer
sto t
ransact wi
tht
he ser
vice. The
comput
eri
zat
ionoft
hebanki
ngoper
ati
onshasmademaxi
mum i
mpacton:
-
1)I
nter
nal
Account
ingSy
stem
2)Cust
omerser
vice
3)Di
ver
sif
icat
ionofsy
stem

37
1.
11I
NTERNETBANKI
NGVERSUSTRADI
TIONALBANKI
NG

I
nspi
teofsomanyf
aci
l
iti
est
hatI
nter
netbanki
ngof
fer
sus,west
il
l
seem t
otr
ustourt
radi
ti
onalmet
hodofbanki
ngandi
srel
uct
antt
ouseonl
i
ne
banki
ng.Buther
ear
efewcaseswher
eInt
ernetbanki
ngwi
l
ltur
noutt
obea
bet
teropt
ioni
nter
msofsav
ingy
ourmoney
.
'
Stoppay
ment
'donet
hroughI
nter
netbanki
ngwi
l
lnotcostanyext
ra
f
eesbutwhendonet
hrought
hebr
anch,t
hebankmaychar
gey
ouRs50per
chequepl
ust
heser
vicet
ax.
Thr
oughI
nter
netbanki
ng,y
oucanchecky
ourt
ransact
ionsatanyt
ime
oft
heday
,andasmanyt
imesasy
ouwantt
o.Ont
heot
herhand,i
na
t
radi
ti
onalmet
hod,y
ougetquar
ter
lyst
atement
sfr
om t
hebankandi
fyou
r
equestf
orast
atementaty
ourr
equi
redt
ime,i
tmayt
urnoutt
o bean
expensi
veaf
fai
r.Thebr
anchmaychar
gey
ouRs.
25perpage,whi
chi
ncl
udes
onl
y30t
ransact
ions.Mor
eov
er,t
hebankbr
anchwoul
dtakeei
ghtday
sto
del
i
veri
taty
ourdoor
step.
I
fthef
undt
ransf
erhast
obemadeout
stat
ion,
wher
ethebankdoesnot
hav
eabr
anch,t
hebankwoul
ddemandout
stat
ionchar
ges.Wher
easwi
tht
he
hel
pofonl
i
nebanki
ng,
itwi
l
lbeabsol
utel
yfr
eef
ory
ou.Aspert
heI
nter
netand
Mobi
l
eAssoci
ati
onofI
ndi
a'
srepor
tononl
i
nebanki
ng2006,"
Ther
ear
emany
adv
ant
agesofonl
i
nebanki
ng.I
tisconv
eni
ent
,iti
sn'
tboundbyoper
ati
onal
t
imi
ngs,
ther
ear
enogeogr
aphi
calbar
ri
ersandt
heser
vicescanbeof
fer
edat
ami
niscul
ecost
.

38
1.
12SCOPEANDCHALLENGESOFE-
BANKI
NG
E-
banki
ngi
sthet
ermt
hatsi
gni
fi
esandencompassest
heent
ir
espher
e
oft
echnol
ogyi
nit
iat
ivest
hathav
etakenpl
acei
nthebanki
ngi
ndust
ry.E-
banki
ng i
s a gener
ict
erm maki
ng use ofel
ect
roni
c channel
sthr
ough
t
elephone,mobi
l
ephones,i
nter
netet
c.f
ordel
i
ver
yofbanki
ngser
vicesand
pr
oduct
s.Theconceptandscopeofe-
banki
ngi
sst
il
li
nthet
ransi
ti
onalst
age.
E-
banki
nghasbr
okent
hebar
ri
ersofbr
anchbanki
ng.
Cur
rentSt
atusandScopeofE-
banki
ngi
nIndi
a
I
nter
netBanki
nghasbecomeani
ntegr
alpar
tofbanki
ngsy
stem i
n
I
ndi
a.Theconceptofe-
banki
ngi
sofr
ecentor
igi
ninI
ndi
a.Ti
l
ltheear
ly90’
s
t
radi
ti
onalmodelofbanki
ngi
.e.br
anchbasedbanki
ngwaspr
eval
ent
,but
af
tert
hatnon-
branchbanki
ngser
viceswer
est
art
ed.I
nter
netbanki
ngi
sused
wi
del
ybymassesandhasnumer
ousbenef
it
stoof
fer
.Nowaday
s,al
lbanks
pr
ovi
deonl
i
nebanki
ngf
aci
l
ityt
othei
rcust
omer
sasanaddedadv
ant
age.
Onl
i
nebanki
nghasopenedt
hedoor
sforal
lcust
omer
s,t
ooper
atebey
ond
boundar
ies.Peopl
ear
esobusyi
nthei
rwor
kli
ves,t
hatt
heydon’
tev
enhav
e
t
imet
ogot
othebankf
orconduct
ingt
hei
rbanki
ngt
ransact
ions.I
nter
net
banki
ngenabl
epeopl
etocar
ryoutmostoft
hei
rbanki
ngt
ransact
ionsusi
nga
saf
ewebsi
te,whi
chi
soper
atedbyt
hei
rrespect
ivebanks.I
tpr
ovi
desmany
f
eat
uresandf
unct
ionst
othei
rcust
omer
s,andenabl
est
hem t
ovi
ew t
hei
r
accountbal
ance,
transf
ermoneyf
rom t
hei
raccountt
oanot
heraccount(
bei
t
i
nthei
rrespect
ivebankoranyot
herbank)
.
Thecr
edi
tofl
aunchi
ngi
nter
netbanki
ngi
nIndi
agoest
oICI
CIBank.
Ci
ti
bankandHDFCBankf
oll
owedwi
thi
nter
netbanki
ngser
vicesi
n1999.The
Gov
ernmentofI
ndi
aenact
edt
heI
TAct
,2000wi
thef
fectf
rom Oct
ober17,
2000whi
chpr
ovi
dedl
egalr
ecogni
ti
ont
oel
ect
roni
ctr
ansact
ionsandot
her
means ofel
ect
roni
c commer
ce.The Reser
ve Bank i
s moni
tor
ing and
r
evi
ewi
ngt
hel
egal
andot
herr
equi
rement
sofe-
banki
ngonacont
inuousbasi
s
t
oensur
ethate-
banki
ngwoul
ddev
eloponsoundl
i
nesande-
banki
ngr
elat
ed
chal
l
engeswoul
dnotposeat
hreatt
ofi
nanci
alst
abi
l
ity
.Accor
dingt
orepor
t
ofRBIi
nJan2016,
ther
ear
e196079ATM and1337310poi
ntofsal
edev
ices
i
nIndi
a.Tocopewi
tht
hepr
essur
eofgr
owi
ngcompet
it
ion,
Indi
ancommer
cial
bankshav
eadopt
edsev
erali
nit
iat
ivesande-
banki
ngi
soneoft
hem.The
compet
it
ionhasbeenespeci
all
ytoughf
ort
hepubl
i
csect
orbanks,ast
he

39
newl
yest
abl
i
shedpr
ivat
esect
orandf
orei
gnbanksar
eleader
sint
headopt
ion
ofe-
banki
ng.I
ndi
an banks of
fert
othei
rcust
omer
sfol
l
owi
ng e-
banki
ng
pr
oduct
sandser
vices

 Aut
omat
edTel
l
erMachi
nes(
ATMs)

 I
nter
netBanki
ng

 Mobi
l
eBanki
ng

 PhoneBanki
ng

 Tel
ebanki
ng

 El
ect
roni
cCl
ear
ingSer
vices

 El
ect
roni
cCl
ear
ingCar
ds

 Smar
tCar
ds

 Door
stepBanki
ng

 El
ect
roni
cFundTr
ansf
er

Tosust
aini
nthegr
owi
ngcompet
it
ion,
commer
cialbanksi
nIndi
ahav
e
adopt
ed sev
erali
nit
iat
ives t
oimpr
ove banki
ng ser
vices and t
o gai
n
compet
it
iveadv
ant
age.Thef
ew oft
hei
nit
iat
ivest
akenbyI
ndi
anbanksf
or
i
nter
netbanki
ngar
ement
ionedbel
ow:
 BankofI
ndi
arecent
lyl
aunchedi
tscar
d-l
esscashwi
thdr
awalser
vice.
Thi
sfaci
l
ityhel
pscust
omer
stosendmoneyt
oany
oneusi
ngI
nter
net
banki
ngorbyusi
ngATM,
wit
hthehel
pofr
ecei
ver
’smobi
l
enumber
.

 TheBusi
nessTr
ansf
ormat
ionPr
ogr
am i
sbei
ngi
mpl
ement
edbyt
he
BankofBar
odawhi
chwi
l
lpr
ovi
dei
tscust
omerconv
eni
encebanki
ng
ona24*
7basi
sinI
ndi
aandabr
oadwi
thi
ntegr
ateddel
i
ver
ychannel
s
l
i
keI
nter
net
,Phone,
Mobi
l
e,andot
her
s.

 Sev
eralI
ndi
anbankshav
eimpl
ement
edOnl
i
neTaxAccount
ingSy
stem
(
OLTAS)f
orcol
l
ect
ionoft
axesonbehal
fofCent
ralBoar
dofDi
rect

40
 Taxes,
Gov
ernmentofI
ndi
a.

 I
CICIbankl
aunched24x7el
ect
roni
cbr
anches,whi
chi
saone-
stop
shopf
oral
lbanki
ngt
ransact
ions.I
tof
fer
sfaci
l
iti
essuchascheque
deposi
tmachi
neandanel
ect
roni
cki
oskt
hroughwhi
chcust
omer
scan
beaccessedi
nter
netbanki
ngser
vices.I
CICIBankhasal
soi
ntr
oduced
E-
Lockerf
ori
tscust
omer
s.I
tisav
irt
uall
ocker
,whi
chcanbeaccessed
t
hroughI
CICIi
nter
netbanki
ngwhi
chf
aci
l
itat
escust
omert
ost
oresof
t
copyoft
hei
rimpor
tantdocument
ssaf
elysuchasl
egaldocument
s,
agr
eement
s,pol
i
ciesandv
ari
ousi
mpor
tantcer
ti
fi
cat
es.I
CICIbanki
s
of
fer
ingv
ari
ousgi
ft
stocust
omer
sforst
artt
ousei
nter
netbanki
ngf
or
t
hef
ir
stt
ime.

 Thebanksar
emaki
ngt
hei
rpr
esenceonsoci
almedi
ali
keFacebook
andTwi
tt
erf
ort
arget
inghugecust
omerbaseaswel
laspot
ent
ial
cust
omer
s;t
her
ewi
l
lber
ound-
the-
clockt
weet
sandcomment
sont
he
bank’
spr
oduct
sandser
vices.Af
terl
aunchi
ngaccount
sonFacebook
andYouTube,
SBIt
ookonemor
est
epont
hesoci
almedi
abyl
aunchi
ng
at
wit
terhandl
e.

ScopeofE-
banki
ng.
 Unt
appedRur
alMar
ket
s:Cont
ri
but
ingt
o70%oft
het
otalpopul
ati
on
i
nIndi
aisal
argel
yunt
appedmar
ketf
orbanki
ngsect
or.I
nal
lur
ban
ar
easbanki
ngser
vicesent
eredbutonl
yfew bi
gvi
l
lageshav
ethe
banksent
ered.So t
hatt
he banksmustr
each i
nremai
ning al
l
v
il
lagesbecausemaj
ori
tyofI
ndi
anst
il
ll
iv
ingi
nrur
alar
eas.

 Mul
ti
pleChannel
s:Bankscanof
fersomanychannel
stoaccess
t
hei
rbanki
ngandot
herser
vicessuchasATM,Localbr
anches,
Tel
ephone/
mobi
l
e banki
ng,v
ideo banki
ng et
c.t
oincr
ease t
he
banki
ngbusi
ness.

 Compet
it
iveAdv
ant
age:Thebenef
itofadopt
inge-
banki
ngpr
ovi
des
a compet
it
ive adv
ant
age t
othe banks ov
erot
herpl
ayer
s.The
i
mpl
ement
ati
onofe-
banki
ngi
sbenef
ici
alf
orbanki
nmanyway
sas
i
treducescostt
obanks,
impr
ovescust
omerr
elat
ion,
incr
easest
he

41
 geogr
aphi
calr
eachoft
hebank,
etc.Thebenef
it
sofe-
banki
nghav
e
become oppor
tuni
ti
es f
ort
he banks t
o manage t
hei
rbanki
ng
busi
nessi
nabet
terway
.

 I
ncr
easi
ngI
nter
netUser
s& Comput
erLi
ter
acy
:To usei
nter
net
banki
ngi
tisv
eryi
mpor
tantori
nit
ialr
equi
rementt
hatpeopl
eshoul
d
hav
eknowl
edgeabouti
nter
nett
echnol
ogysot
hatt
heycaneasi
l
y
adoptt
hei
nter
netbanki
ngser
vices.Thef
ast
-i
ncr
easi
ngi
nter
net
user
sinI
ndi
acanbeav
erybi
goppor
tuni
tyandbanki
ngi
ndust
ry
shoul
dencasht
hisoppor
tuni
tyt
oat
tr
actmor
eint
ernetuser
sto
adopti
nter
netbanki
ngser
vices.

 Wor
thyCust
omerSer
vice:Wor
thycust
omerser
vicesar
ethebest
br
andambassadorf
oranybankf
orgr
owi
ngi
tsbusi
ness.Ev
ery
engagementwi
thcust
omeri
sanoppor
tuni
tyt
odev
elopacust
omer
f
ait
hint
hebank.Whi
l
eincr
easi
ngcompet
it
ioncust
omerser
vices
hasbecomet
hebackbonef
orj
udgi
ngt
heper
for
manceofbanks.

 I
nter
netBanki
ng:Fi
nancewi
l
lpi
ckupandt
her
ewi
l
lbei
ncr
easi
ng
conv
ergencei
nter
msofpr
oductof
fer
ingsbanki
ngser
vices,shar
e
t
radi
ng,i
nsur
ance,l
oans,basedont
hedat
awar
ehousi
nganddat
a
mi
ning t
echnol
ogi
es.Any
time any
wher
e banki
ng wi
l
lbecome
commonandwi
l
lhav
etoupscal
e,suchupscal
i
ngcoul
dincl
ude
banks l
aunchi
ng separ
atei
nter
netbanki
ng ser
vices apar
tfr
om
t
radi
ti
onal
banki
ngser
vices.

 Ret
ail Lendi
ng: Recent
ly banks hav
e adopt
ed cust
omer
segment
ati
onwhi
chhashel
pedi
ncust
omi
zi
ngt
hei
rpr
oductf
oli
os
wel
l
.Thus,r
etai
llendi
nghasbecomeaf
ocusar
eapar
ti
cul
arl
yin
r
espectoff
inanci
ngofconsumerdur
abl
es,housi
ng,aut
omobi
l
es
et
c.,Ret
aill
endi
ng has al
so hel
ped i
nri
sks di
sper
saland i
n
enhanci
ngt
heear
ningsofbankswi
thbet
terr
ecov
eryr
ates.

Chal
l
engesf
orE-
banki
ngi
nIndi
a:
 Secur
it
yRi
sk:Thepr
obl
em r
elat
edt
othesecur
it
yhasbecomeoneof
t
hemaj
orconcer
nsf
orbanks.Al
argegr
oupofcust
omer
sref
usest
o

42
 optf
ore-
banki
ngf
aci
l
iti
esduet
ouncer
tai
ntyandsecur
it
yconcer
ns.
Accor
dingt
otheI
AMAIRepor
t(2006)
,43% ofi
nter
netuser
sar
enot
usi
ngi
nter
netbanki
ngi
nIndi
abecauseofsecur
it
yconcer
ns.So,i
t’
sa
bi
gchal
l
engef
ormar
ket
ersandmakesconsumer
ssat
isf
iedr
egar
ding
t
hei
rsecur
it
yconcer
ns,whi
chmayf
urt
heri
ncr
easet
heonl
i
nebanki
ng
use.

 TheTr
ustFact
or:Tr
usti
sthebi
ggesthur
dlet
oonl
i
nebanki
ngf
ormost
oft
hecust
omer
s.Conv
ent
ionalbanki
ngi
spr
efer
redbyt
hecust
omer
s
becauseofl
ackoft
rustont
heonl
i
nesecur
it
y.Theyhav
eaper
cept
ion
t
hatonl
i
net
ransact
ioni
sri
skyduet
owhi
chf
raudscant
akepl
ace.
Whi
l
eusi
nge-
banki
ngf
aci
l
iti
esl
otofquest
ionsar
isesi
nthemi
ndof
cust
omer
ssuchas:Di
dtr
ansact
iongot
hrough?Di
dIpusht
het
ransf
er
but
tononceort
wice?Tr
usti
samongt
hesi
gni
fi
cantf
act
orswhi
ch
i
nfl
uencet
hecust
omer
’swi
l
li
ngnesst
oengagei
nat
ransact
ionwi
th
webmer
chant
s.

 Cust
omerAwar
eness:Awar
eness among consumer
s aboutt
he e-
banki
ngf
aci
l
iti
esandpr
ocedur
esi
sst
il
latl
owersi
dei
nIndi
anscenar
io.
Banksar
enotabl
etodi
ssemi
nat
epr
operi
nfor
mat
ionaboutt
heuse,
benef
it
s and f
aci
l
ityofi
nter
netbanki
ng.Less awar
eness ofnew
t
echnol
ogi
esand t
hei
rbenef
it
sisamong oneoft
hemostr
anked
bar
ri
ersi
nthedev
elopmentofe-
banki
ng.

 Pr
ivacyr
isk:Ther
iskofdi
scl
osi
ngpr
ivat
einf
ormat
ion&f
earofi
dent
it
y
t
hef
tisoneoft
hemaj
orf
act
orst
hati
nhi
bitt
heconsumer
swhi
l
eopt
ing
f
ori
nter
netbanki
ngser
vices.Mostoft
heconsumer
sbel
i
evet
hatusi
ng
onl
i
ne banki
ng ser
vices make t
hem v
ulner
abl
etoi
dent
it
ythef
t.
Accor
dingt
othest
udyconsumer
swor
ryaboutt
hei
rpr
ivacyandf
eel
t
hatbankmayi
nvadet
hei
rpr
ivacybyut
il
izi
ngt
hei
rinf
ormat
ionf
or
mar
ket
ing and ot
her secondar
y pur
poses wi
thout consent of
consumer
s.

 St
rengt
heni
ngt
hepubl
i
csuppor
t:I
ndev
elopi
ngcount
ri
es,i
nthepast
,
moste-
fi
nancei
nit
iat
iveshav
ebeent
her
esul
tofj
ointef
for
tsbet
ween
t
hepr
ivat
eandpubl
i
csect
ors.I
fthepubl
i
csect
ordoesnothav
ethe

43
 necessar
yresour
cest
oimpl
ementt
hepr
oject
siti
simpor
tantt
hatj
oint
ef
for
tsbet
weenpubl
i
candpr
ivat
esect
orsal
ongwi
tht
hemul
ti
lat
eral
agenci
esl
i
ket
heWor
ldBank,
bedev
elopedt
oenabl
epubl
i
csuppor
tfor
e-
fi
nancer
elat
edi
nit
iat
ives.

 Av
ail
abi
l
ityofPer
sonnelser
vices:I
n pr
esentt
imes,banks ar
eto
pr
ovi
desev
eralser
vicesl
i
kesoci
albanki
ngwi
thf
inanci
alpossi
bil
i
ties,
sel
ect
iveupgr
adat
ion,comput
eri
zat
ionandi
nnov
ati
vemechani
zat
ion,
bet
ter cust
omer ser
vices, ef
fect
ive manager
ial cul
tur
e, i
nter
nal
super
visi
on and cont
rol
,adequat
e pr
ofi
tabi
l
ity
,st
rong or
gani
zat
ion
cul
tur
e et
c.Ther
efor
e,banks mustbe abl
eto pr
ovi
de compl
ete
per
sonnel
ser
vicet
othecust
omer
swhocomewi
thexpect
ati
ons.

 I
mpl
ement
ati
on ofgl
obalt
echnol
ogy
:Ther
eisa need t
o hav
e an
adequat
elev
elofi
nfr
ast
ruct
ureandhumancapaci
tybui
l
dingbef
oret
he
dev
elopi
ng count
ri
es can adoptgl
obalt
echnol
ogy f
ort
hei
rlocal
r
equi
rement
s.I
ndev
elopi
ngcount
ri
es,manyconsumer
sei
therdonot
t
rustordonotaccesst
othenecessar
yinf
rast
ruct
uret
obeabl
eto
pr
ocesse-
pay
ment
s.

 Non-Per
for
ming Asset
s(NPA)
:Nonper
for
ming asset
sar
eanot
her
chal
l
enget
othebanki
ngsect
or.Vehi
clel
oansandunsecur
edl
oans
i
ncr
easesN.
P.A.whi
cht
erms50%ofbanksr
etai
lpor
tfol
i
owasal
sohi
t
duet
oupwar
dmov
ementi
nint
erestr
ates,r
est
ri
cti
onsoncol
l
ect
ion
pr
act
icesandsoar
ingr
ealest
atepr
ices.Sot
hatev
erybankmustt
ake
car
eaboutr
egul
arr
epay
mentofl
oans.

 Compet
it
ion:Thenat
ional
i
zedbanksandcommer
cialbankshav
ethe
compet
it
ionf
rom f
orei
gnandnewpr
ivat
esect
orbanks.Compet
it
ioni
n
banki
ngsect
orbr
ingsv
ari
ouschal
l
engesbef
oret
hebankssuchas
pr
oductposi
ti
oni
ng,
innov
ati
vei
deasandchannel
s,newmar
kett
rends,
cr
osssel
l
ingadatmanager
ialandor
gani
zat
ionalpar
tthi
ssy
stem
needst
obemanage,asset
sandcont
ainr
isk.Banksar
erest
ri
cti
ng
t
hei
radmi
nist
rat
ivef
oli
obyconv
ert
ingmanpoweri
ntomachi
nepower
i
.e.banksar
edecr
easi
ngmanualpower
sandget
ti
ngmaxi
mum wor
k
donet
hroughmachi
nepower
.Ski
l
ledandspeci
ali
zedmanpoweri
sto

44
 beut
il
izedandr
esul
tor
ient
edt
arget
edst
affwi
l
lbeappoi
nted.

 Handl
i
ng Technol
ogy
:Dev
elopi
ng oracqui
ri
ng t
her
ightt
echnol
ogy
,
depl
oyi
ngi
topt
imal
l
yandt
henl
ever
agi
ngi
ttot
hemaxi
mum ext
enti
s
essent
ial
toachi
eveandmai
ntai
nhi
ghser
viceandef
fi
ciencyst
andar
ds
whi
l
eremai
ning costef
fect
iveand del
i
ver
ing sust
ainabl
eret
urnt
o
shar
ehol
der
s. Ear
ly adopt
ers of t
echnol
ogy acqui
re si
gni
fi
cant
compet
it
iveadv
ancesManagi
ngt
echnol
ogyi
skeychal
l
engef
ort
he
I
ndi
anbanki
ngsect
or.

1.
13TECHNOLOGYI
NBANKI
NG

The i
ntr
oduct
ion of new t
echnol
ogi
es has r
adi
cal
l
ytr
ansf
ormed
banki
ngt
ransact
ions.I
nthepast
,cust
omer
shadt
ocomephy
sical
l
yint
othe
bankbr
ancht
odobanki
ngt
ransact
ionsi
ncl
udi
ngt
ransf
ers,deposi
tsand
wi
thdr
awal
s.Bankshadt
oempl
oysev
eralt
ell
erst
ophy
sical
l
ymakeal
lthose

45
t
ransact
ions.Aut
omat
icTel
l
erMachi
nes(
ATMs)
wer
etheni
ntr
oducedwhi
ch
al
l
owedpeopl
etodot
hei
rbanki
ngont
hei
rown,pr
act
ical
l
yany
timeand
any
wher
e.Thi
shel
pedt
hebankscutdownont
henumberoft
ell
ersandf
ocus
onmanagi
ngmoney
.TheI
nter
nett
henbr
oughtanot
herv
enuewi
thwhi
ch
cust
omer
scoul
ddobanki
ng,r
educi
ngt
heneedf
orATMs.Onl
i
nebanki
ng
al
l
owedcust
omer
stodof
inanci
alt
ransact
ionsf
rom t
hei
rPCsathomev
ia
I
nter
net
.Now,wi
tht
heemer
genceofWi
rel
essAppl
i
cat
ionPr
otocol(
WAP)
t
echnol
ogy
,bankscanuset
hei
nfr
ast
ruct
ureandappl
i
cat
ionsdev
elopedf
or
t
heI
nter
netandmov
eitt
omobi
l
ephones.Nowpeopl
enol
ongerhav
etobe
t
iedt
oadeskt
opPCt
odot
hei
rbanki
ng.TheWAi
nter
facei
smuchf
ast
erand
conv
eni
entt
han t
heI
nter
net
,al
l
owi
ng cust
omer
sto seeaccountdet
ail
s,
t
ransact
iondet
ail
s,makebi
l
lpay
ment
s,andev
encheckcr
edi
tcar
dbal
ance.
The costoft
he av
erage pay
mentt
ransact
ion on t
he I
nter
neti
s
mi
nimum.Sev
eralst
udi
esf
oundt
hatt
heest
imat
edt
ransact
ioncostt
hrough
mobi
l
ephonei
s16cent
s,af
ull
ycomput
eri
zedbankusi
ngi
tsownsof
twar
eis
26cent
s,at
elephonebanki
s54cent
s,abankbr
anch,$1.
27,anATM,27
cent
s,andont
heI
nter
neti
tcost
sjust13cent
s.Asar
esul
t,t
heuseoft
he
I
nter
netf
orcommer
cialt
ransact
ionsst
art
edt
ogai
nmoment
um i
n1995.Mor
e
t
han2,
000 banksi
nthewor
ld now hav
etr
ansact
ionalwebsi
tesand t
he
gr
owt
hofonl
i
nel
endi
ngsol
uti
onsi
smaki
ngt
hem mor
ecostef
fi
cient
.Recent
dev
elopment
sar
enow encour
agi
ngbankst
otar
getsmal
lbusi
nessesasa
separ
atel
endi
ngcat
egor
yonl
i
ne.
Banksar
eincr
easi
ngl
ybui
l
dingpay
menti
nfr
ast
ruct
urewi
thv
ari
oussecur
it
y
mechani
sms(
SSL,SET)becauset
her
eist
remendouspot
ent
ialf
orpr
ofi
t,as
mor
e and mor
e pay
ment
s wi
l
lpass t
hrough t
he I
nter
net
.Howev
er,t
he
chal
l
engef
orbanksi
stoof
ferapay
ment
sback-
bonesy
stem t
hatwi
l
lbeopen
enought
osuppor
tmul
ti
plepay
menti
nst
rument
s(cr
edi
tcar
ds,debi
tcar
ds,
di
rectdebi
ttoaccount
s,e-
checks,
digi
talmoneyet
c.)andscal
abl
eenought
o
al
l
ow f
ora st
abl
e ser
vice r
egar
dless oft
he wor
kload.The mar
ketf
or
El
ect
roni
cBi
l
lPr
esent
mentandPay
ment(
EBPP)i
sgr
owi
ng.
Accor
dingt
oast
udy
,18mi
l
li
onhousehol
dsi
ntheUSar
eexpect
edt
o
payt
hei
rbi
l
lsonl
i
neby2003compar
edt
o2mi
l
li
onhousehol
dsi
n2001.As
mor
enumberofbi
l
lpay
ersar
eget
ti
ngonl
i
ne,sev
eralbanksar
emaki
ng
ef
for
tst
ofi
ndway
stomeett
hegr
owi
ngneedsofEBPP.Est
abl
i
shedbanks

46
canemer
geaskeyonl
i
nei
ntegr
ator
sofcust
omerbi
l
lsandcancapi
tal
i
zeon
t
hishi
ghpot
ent
ialmar
ket
.Gr
owi
ngwi
tht
hepopul
ari
tyofEBPPi
sal
sot
he
pay
ingofmul
ti
plebi
l
lsatasi
ngl
esi
teknownasbi
l
laggr
egat
ion.Of
fer
ing
onl
i
nebi
l
lpay
mentandaggr
egat
ionwi
l
lincr
easet
hecompet
it
ivenessand
at
tr
act
ivenessofe-banki
ngser
vicesandwi
l
lal
l
owbankst
ogener
ateser
vice-
f
eei
ncomef
rom t
hebi
l
ler
s.
I
ntheB2B segment
,thecust
omerv
aluepr
oposi
ti
onf
oronl
i
nebi
l
l
pay
menti
smor
ecompel
l
ing.B2Be-
commer
cei
sexpect
edt
ogr
owf
rom $406
bni
n2000t
o$2.
7tnby
2004,andmor
ethanhal
fofal
ltr
ansact
ionswi
l
lbe
r
out
ed t
hrough onl
i
ne B2Bmar
ket
places.Ther
eis a need f
oraut
omat
ed
pay
mentsy
stemst
oreducecostandhumaner
ror
,andenhancecash-
fl
ow
management
.To meett
his need,a gr
oup ofbanks and non-
fi
nanci
al
i
nst
it
uti
onsl
edbyCi
ti
bankandWel
l
sFar
gohav
efor
medacompanycal
l
ed
Fi
nanci
alSet
tl
ement
sMat
ri
x(FSMx
).I
tpr
ovi
desbusi
nessbuy
ersandsel
l
ers
wi
thaccesst
osecur
epay
mentpr
ocessi
ng,i
nvoi
cingandot
herser
vicest
hat
par
ti
cipat
ingf
inanci
alser
vicesf
ir
msof
fer
.
AB2Bmar
ket
placewoul
dpr
ovi
demi
nimum v
aluet
oit
scust
omer
sifi
t
j
ustmat
chesbuy
ersandsel
l
ers,l
eav
ingt
hef
inanci
alaspect
soft
ransact
ions
t
obehandl
edt
hrought
radi
ti
onalnon-
Int
ernetchannel
s.Thi
snew f
orm of
col
l
abor
ati
onbet
weenpar
tner
swi
thcompl
ement
arycor
ecompet
enci
esmay
pr
ovet
obeanef
fect
ivebusi
nessmodel
fore-
busi
ness.

1.
14THEE-
BANKI
NGSTRATEGI
ES

47
 Thoughe-
banki
ngof
fer
svastoppor
tuni
ti
es,y
etev
enl
esst
hanonei
n
t
hreebankshav
ean-
banki
ngst
rat
egyi
npl
ace.Accor
dingt
oast
udy
,lesst
han
15per
centofbankswi
tht
ransact
ionalwebsi
teswi
l
lreal
i
zepr
ofi
tsdi
rect
ly
at
tr
ibut
abl
etot
hosesi
tes.Hence,banksmustr
ecogni
zet
heser
iousnessof
t
hechal
l
engeaheadanddev
elopast
rat
egyt
hatwi
l
lenabl
ethem t
olev
erage
t
heoppor
tuni
ti
espr
esent
edbyt
heI
nter
net
.

Nosi
ngl
ee-
banki
ngst
rat
egyi
sri
ghtf
orev
erybanki
ngcompany
.But
whet
hert
heyadoptanof
fensi
veoradef
ensi
vepost
ure,
theymustconst
ant
ly
r
e-ev
aluat
ethei
rst
rat
egy
.Int
hef
ast
-pacede-
economy
,bankshav
etokeepup
wi
tht
heconst
ant
lyev
olv
ingbusi
nessmodel
sandt
echnol
ogyi
nnov
ati
onsof
t
heI
nter
netspace.Ear
lye-
busi
nessadopt
erl
i
keWel
l
sFar
gonotonl
yent
ered
t
hee-
banki
ngi
ndust
ryf
ir
stbutal
soshowedf
lexi
bil
i
tyt
ochangeast
hemar
ket
dev
eloped.Notmanybankshav
ebeenase-
busi
ness-
sav
vy.Butt
hepr
essur
e
i
snowbui
l
dingf
oral
lbankst
odev
elopsounde-
busi
nessst
rat
egi
est
hatwi
l
l
at
tr
actandr
etai
nincr
easi
ngl
ydi
scr
imi
nat
ingcust
omer
s.

Themaj
orpr
obl
em wi
tht
hebanks,whi
chhav
eal
readyi
nvest
edhuge
amount
sint
hei
ronl
i
ne i
nit
iat
ives,i
sthatt
hei
ronl
i
ne of
fer
ings r
emai
n
unpr
ofi
tabl
e.Thoughbankshav
eenr
oll
edsomeexi
sti
ngcust
omer
sint
hei
r
onl
i
nepr
ogr
ams,t
heyar
enotget
ti
ngcust
omer
sinl
argenumber
s.Thi
shas
madebankswonderwhet
hert
her
eisanyv
aluei
ntheonl
i
nechannel
.Just
enr
oll
i
ngcust
omer
sforonl
i
nebanki
ngmaynotbesuf
fi
cientunt
ilandunl
ess
t
heyuset
hesi
teact
ivel
y.Banksmustmakeef
for
tst
oincr
easet
hei
rsi
te
usage bycust
omer
s and ef
fect
ivel
yco-
ordi
nat
ethe onl
i
ne channelwi
th
br
anchesandcal
lcent
ers.Thenonl
ytheywi
l
lbeabl
etoder
ivemaxi
mum
v
aluet
hati
ncl
udescostr
educt
ion,cr
oss-
sel
l
ing oppor
tuni
ti
es,and hi
gher
cust
omerr
etent
ion.

Cust
omer
shav
esomer
ati
onalr
easonsf
orst
ayi
ngof
fl
ine.Someof
t
heser
easonsi
ncl
udeusabi
l
ityf
eat
uresoft
hesi
te,concer
nsaboutsecur
it
y
andf
requentcompl
aint
sthatsi
gni
ngupi
scompl
i
cat
edandt
ime-
consumi
ng.
Bankscansol
vet
hesepr
obl
emsbyr
efocusi
ngi
nvest
mentoni
mpr
ovi
ngt
he
si
te'
s basi
cfunct
ional
i
ty and user
-f
ri
endl
i
ness,and av
oidi
ng adv
anced
f
eat
urest
hatmostcust
omer
snei
therunder
stand norv
alue.Banksmust

48
makeef
for
tst
ofami
l
iar
izecust
omer
swi
tht
hei
rsi
tesandshow t
hem how
easyandef
fi
ci
entt
heonl
i
nechannel
ist
ouse.

I
ntegr
ati
ngt
heonl
i
nechannelwi
tht
her
estoft
hebanki
sanot
her
i
mpor
tanti
ssuet
hatbanksmustf
ocusupon.Thi
sisi
mpor
tantbecausenear
ly
al
lthe v
alue oft
he onl
i
ne channeli
sreal
i
zed of
fl
ine _i
n cr
oss sal
es
compl
etedi
not
herchannel
sandi
ncostr
educt
ions.Anact
ivel
yusedonl
i
ne
channel
shoul
dal
soser
veasamedi
um t
osel
lbanki
ngser
vicesf
ort
hebr
anch
st
aff
,the cal
lcent
er,and t
he r
elat
ionshi
p manager
.I
ntegr
ated channel
s
wor
kingt
oget
herar
efarmor
eef
fect
ivet
hanagr
oupofchannel
swor
king
wi
thoutanycoor
dinat
ion.
Tof
aci
l
itat
ethi
sint
egr
ati
on,
banksmustf
ormul
atepat
hst
hatpeopl
ein
v
ari
ous cust
omersegment
s ar
eli
kel
ytot
ake among t
he channel
s.The
i
nter
act
ionsi
neachchannelcant
henbewor
kedar
oundt
hesepat
hs.For
exampl
e,acal
lcent
err
epr
esent
ati
vemustwor
koutwhi
chchannel
sthe
cust
omerusedbef
orecomi
ngt
oher
,andwhi
chchannel
sthecust
omeri
s
l
i
kel
ytov
isi
tnext
.Eachchannelmusthav
eent
ryandexi
tpoi
ntst
hatmust
wel
comecust
omer
sandt
hensendt
oot
herchannel
s.Hence,
theov
eral
lgoal
ofbanksi
stocr
eat
easeaml
essmul
ti
channel
exper
ience.
On t
he ot
herhand,t
hose banks t
hatar
e pl
anni
ng t
o bui
l
dthei
ronl
i
ne
busi
nesseswi
l
lhav
etounder
standsev
eralst
rat
egi
cissuesl
i
kedot
heyhav
e
t
her
ightbusi
nessmodelf
ore-banki
ng?How shoul
dtheypr
icet
hei
re-
banki
ngpr
oduct
sandser
vices?Banker
spl
anni
ngt
omov
eint
oe-
banki
ng
hav
etoexpl
oredi
ff
erentopt
ions,makei
nvest
ment
sandhav
etodev
elopa
v
ari
etyofpar
tner
shi
ps.Theyhav
etoputt
hei
rti
meandef
for
tst
oident
if
ythe
bestoppor
tuni
ti
es.I
nthecaseoft
radi
ti
onalbanks,i
ftheyar
etooaggr
essi
ve
i
nusi
ngpr
icei
ncent
ivest
obui
l
dthei
re-
busi
ness,t
heyr
iskt
hepr
ofi
tabi
l
ityof
t
hei
rtr
adi
ti
onalbusi
ness.Howev
er,i
ftheydo notof
fersuf
fi
cientpr
ice
i
ncent
ivesf
orcust
omer
stobankonl
i
ne,t
hei
ref
for
tst
obui
l
dasounde-
banki
ngbusi
nessmaynotf
ruct
if
y.
Bankshav
etobecr
eat
ivei
nret
hinki
ngor
gani
zat
ionalst
ruct
uresand
managementpr
ocesses.Tr
adi
ti
onalbankst
hatar
econser
vat
ivei
nnat
ure
mayf
indi
tdi
ff
icul
ttoat
tr
actandr
etai
nonl
i
net
alent
.Mor
eov
er,
get
ti
ngpeopl
e
i
nthet
radi
ti
onalbusi
nesst
ohel
pbui
l
dane-
ent
erpr
isewoul
dnotbeaneasy

49
t
ask.Tomakeal
lthi
shappen,r
equi
resamaj
orr
evi
sionofi
ncent
ivesy
stems,
pl
anni
ngandbudget
ingpr
ocesses,
andmanagementr
oles.Bankscanexpl
oit
t
heoppor
tuni
ti
espr
ovi
dedbyt
heI
nter
neti
ftheydemonst
rat
ecour
age,use
t
hei
rimagi
nat
ion,
andt
akedeci
siv
eact
ion.
Whi
l
emostoft
hebankshav
est
art
edf
ocusi
ngone-
banki
ngact
ivi
ti
es,
anew chal
l
engei
nthef
orm ofmobi
l
ebanki
nghasemer
ged.M-
Banki
ngi
s
bot
hanaddi
ti
onaloppor
tuni
tyf
orbankst
oof
fert
hei
ronl
i
neser
vicesandan
addi
ti
onalchannelf
rom whi
cht
oaccessnew cust
omer
sandcr
oss-
sel
lto
exi
sti
ng cust
omer
s.Rapi
dly changi
ng l
i
fest
yles ofcust
omer
s and t
hei
r
demandf
ormor
espeedandconv
eni
encehassubduedt
her
oleofbr
anch
banki
ng t
o a cer
tai
n ext
ent
.Wi
tht
he pr
oli
fer
ati
on ofnew t
echnol
ogi
es,
di
sint
ermedi
ati
onoft
radi
ti
onalchannel
sisbei
ngwi
tnessed.Bankscango
bey
ondt
hei
rtr
adi
ti
onalr
oleasachannelf
orbanki
ng/
financi
alser
vicesand
canbecomepr
ovi
der
sofper
sonal
i
zedi
nfor
mat
ion.Theycansuccessf
ull
y
l
ever
agem-
banki
ngt
o:
Pr
ovi
deper
sonal
i
zedpr
oduct
sandser
vicest
ospeci
fi
ccust
omer
sand
t
husi
ncr
easecust
omerl
oyal
ty.
Expl
oitaddi
ti
onalsour
cesofr
evenuef
rom subscr
ipt
ions,t
ransact
ions
andt
hir
d-par
ty.
Ref
err
als.
M-
Banki
nggi
vesbankst
heoppor
tuni
tyt
osi
gni
fi
cant
lyexpandt
hei
r
cust
omerr
elat
ionshi
ps pr
ovi
ded t
heyposi
ti
on t
hemsel
ves ef
fect
ivel
y.To
l
ever
aget
heseoppor
tuni
ti
es,
theymustf
orm st
ruct
uredal
l
ianceswi
thser
vice
af
fi
li
ates,andacqui
recompet
it
iveadv
ant
agei
ncol
l
ect
ing,pr
ocessi
ngand
depl
oyi
ngcust
omeri
nfor
mat
ion.

50
 CHAPTERNO:
2
RESEARCHMETHODOLOGY

2.
1INTRODUCTI
ON
E-
banki
ngi
sdef
inedas“
thedepl
oymentofbanki
ngser
vicesandpr
oduct
s
ov
erel
ect
roni
c and communi
cat
ion net
wor
ks di
rect
lyt
othe cust
omer
s”
(
SinghandMal
hot
ra,
2004)
.[
1]Theseel
ect
roni
candcommuni
cat
ionnet
wor
ks
i
ncl
udeaut
omat
edt
ell
ermachi
nes(
ATMs)
,di
rectdi
al-
upconnect
ions,
pri
vat
e
andpubl
i
cnet
wor
ks,i
nter
net
,tel
evi
sions,mobi
l
edev
icesandt
elephones.
Amongt
heset
echnol
ogi
es,
thei
ncr
easi
ngpenet
rat
ionofper
sonalcomput
ers,
r
elat
ivel
yeasi
eraccesst
othei
nter
netandpar
ti
cul
arl
ythewi
derdi
ff
usi
onof
mobi
l
ephoneshav
edr
awnt
heat
tent
ionoft
hemostbankst
oE-
banki
ng.
Howev
er,t
hecont
inui
ng conv
ergenceofi
nfor
mat
ion,communi
cat
ion and
medi
atechnol
ogi
esi
sal
soopeni
ngupnewel
ect
roni
cchannel
sofdel
i
ver
ing
banki
ngser
vices.Si
gni
fi
cantdi
ff
erencesexi
stamongbanksi
nter
msoft
hei
r
E-
banki
ngcapabi
l
iti
es.Thesedi
ff
erencescant
aket
womai
ndi
mensi
ons
1.Useofel
ect
roni
cchannel
s.
2.Sophi
sti
cat
ionofbanki
ngser
vicesdel
i
ver
edov
eranel
ect
roni
cchannel
.
Manyest
abl
i
shedbanksi
ndev
elopedcount
ri
esbeganwi
thATMsand
ev
olv
edt
hroughper
sonalcomput
er-
banki
ng,t
elephone,E-
banki
ng,i
nter
net
-
banki
ng,TV-
banki
ngandMobi
l
e-banki
ng.Someoft
hekeydr
iver
sof
fer
ingE-
banki
ngser
vicesi
ncl
uder
educi
ngt
ransact
ioncost
s,i
ncr
easi
ngconv
eni
ence,
i
mpr
ovi
ng accessi
bil
i
tyf
or bet
ter f
und admi
nist
rat
ion,av
ail
abi
l
ity and
t
imel
i
nessoft
ransact
ions (
BrownandMol
l
a,2005)
[2]
.Thepr
imar
yser
vices
pr
ovi
dedbyE-
banksar
etr
ansf
err
ingf
undsf
rom one’
saccount
,pay
ingbi
l
ls
andchecki
ngt
heaccountbal
ances.Loans,shar
etr
adi
ng,ser
vicebundl
i
ng
andahostofot
herf
inanci
alser
vicesar
ebei
ngaddedt
othesepr
imar
y
ser
vices.
Ear
li
erbanksusedbr
anch-
based oper
ati
ons but t
he adv
ent of
mul
ti
plet
echnol
ogi
esand appl
i
cat
ionshaschanged t
henat
ureoff
inanci
al
ser
vices del
i
ver
ed t
o t
he cust
omer
s.The r
eason i
sthe numer
ous key
adv
ant
agest
hatbankscoul
dgai
nbypr
ovi
dingel
ect
roni
cbanki
ngser
vices.I
n
t
hisway
,theyhav
elower
edt
het
ransact
ioncost
s,hel
pedf
ort
he24hour
s

51
t
radi
ng,mor
e ext
ended busi
nesst
err
it
oryand i
ncr
easedt
heef
fi
ciency i
n
dai
l
y banki
ng pr
ocesses as wel
l
.Today banks ar
efaci
ng compet
it
ive
env
ironment
.Inor
dert
osucceedi
nsuchmar
ket
place,
theymustof
ferawi
de
ar
rayofpr
oduct
swi
tht
hel
atest
technol
ogy
.Atpr
esent
,manybanksand
f
inanci
ali
nst
it
uti
onsar
eact
ivel
ydev
elopi
ngnewel
ect
roni
cbanki
ngpr
oduct
s
f
ort
hei
rcust
omer
s,t
hroughoutt
hewor
ld.
Secur
it
yisessent
ialf
ort
heaut
hent
icat
ionandpr
ivacy
.Thesecur
it
y
concer
nsf
oruser
s’aut
hent
icat
ion,
dat
aandt
ransact
ion.Aut
hor
izat
ioncanbe
done t
hrough passwor
d pr
otect
ion,encr
ypt
ed smar
tcar
ds,f
ir
ewal
l
s and
secur
esocketl
ayer(
SSL)whi
chensur
ethatonl
yval
i
duser
sandpr
ogr
ams
hav
eaccesst
oinf
ormat
ionsuchasuseraccount
s,f
il
esanddat
abases.Dat
a
andt
ransact
ionsecur
it
ycanbepr
otect
edt
hrought
hesecr
etekeyencr
ypt
ion
and t
he publ
i
c/pr
ivat
e key encr
ypt
ion t
o ensur
e pr
ivacy
,int
egr
it
y and
conf
ident
ial
i
tyofbusi
nesst
ransact
ionswhi
char
ebasi
sforsev
eralonl
i
ne
t
ransact
ions.

52
 2.
2MEANI
NG/
DEFI
NITON/
TYPES

Def
ini
ti
onofResear
chMet
hodol
ogy
I
tisasci
enceofst
udy
inghow 
resear
ch 
i
stobecar
ri
edout
.Essent
ial
l
y,
t
hepr
ocedur
esbywhi
ch r
esear
cher
sgo aboutt
hei
rwor
kofdescr
ibi
ng,
expl
aini
ngandpr
edi
cti
ngphenomenaar
ecal
l
ed 
resear
chmet
hodol
ogy
.Iti
s
al
so 
def
ined 
ast
hest
udyofmet
hodsbywhi
chknowl
edgei
sgai
ned.
Meani
ngofResear
chMet
hodol
ogy
Resear
chmet
hodol
ogy
 i
sat
ermt
hatbasi
cal
l
y means 
thesci
enceof
howr
esear
ch 
i
sdonesci
ent
if
ical
l
y.I
tisawayt
osy
stemat
ical
l
yandl
ogi
cal
l
y
sol
ve a pr
obl
em,hel
p us 
under
stand 
the pr
ocess notj
ustt
he pr
oduct
of
 r
esear
ch,andanal
yzesmet
hodsi
naddi
ti
ont
othei
nfor
mat
ionobt
ainedby
t
hem.
The 
resear
chmet
hodol
ogy
 i
sasci
encet
hatst
udy
inghow 
resear
ch 
i
s
donesci
ent
if
ical
l
y.I
tist
hewayt
osy
stemat
ical
l
ysol
vet
he 
resear
ch 
probl
em
byl
ogi
cal
l
yadopt
ingv
ari
ousst
eps.Al
soi
tdef
inest
hewayi
nwhi
cht
hedat
a
ar
ecol
l
ect
edi
nar
esear
chpr
oject
.

Tpesofr
esear
chmet
hods
 BasicResearch
 Appli
edResear ch
 Problem ori
entedresear
ch
 Problem solv
ing
 Quant i
tat
iveResearch
 Quali
tativ
eResearch

53
2.
3HYPOTHESI
S

Nul lhypothesisofe- banking(Ho): Thepr efer

enceof i
nternet
banking 
f acil
it
yisnotbasedont heeducat i
onoftherespondents.Hence
the 
nullhy pothesis 
isrejectedandt he al
ter
nat
ivehypothesi
s i
saccept ed.
Therefore, t
hereissignificantrelat
ionshi
pbetweeneducat i
onand24- hour
serv
iceofnetbanki ngr espectively
.

Alt
ernateHypothesisofe-banking  (
H1):
 
E-banking i
strusted
suff
ici
entlybycustomer sduetosaf et
y ,secur
it
yandpr ivacyofaccounts
rel
atedissues. 
Alt
ernateHy pot
hesis (
Ha) :Knowledgebar r
ier
sareoneoft he
chal
lengesf ori
mplement at
ionanddev elopmentof e-
banking i
nI ndi
a.

Di
ff
erencebet
weenofNul
lhy
pot
hesi
sandAl
ter
nat
ivehy
pot
hesi
s.

Null
Hypothesis(Ho):Peoplear
enotsati
sfi
edwi t
ht heexist
ingser
viceof
i
nter
netbanking.
 Thereisnor el
ati
onshi
pbetweencustomers’satisf
acti
onine-
banki
ng
thanordinar
ybankinganddemographiccharacteri
sti
cs
 Ther
eisnosi
gnif
icantdi
ff
erencebet
weenbr
anchv
isi
tsaf
tere-
banki
ng
andbef
oree-
banking
 Therei
snor el
ati
onbet
weencustomers’sati
sfact
ionine-
banki
ngthan
ordi
nar
ybankingwit
hcustomerknowledgeaboute-banki
ng,av
ail
abi
li
ty
andimprov
ementofaccountcontr
olmov ements

Alt
ernati
veHy pothesis(H1):
Peoplearesati
sfi
edwi ththeint
ernetbanki
ng
ser
vicethattheyuse.
 Ther eisrel
ationshi
pbetweencustomers’sat
isfact
ionine-banki
ngthan
or
dinarybankinganddemogr aphi
ccharacter
isti
cs.
 Therei
ssignif
icantdi
ff
erencebet
weenbr
anchv
isi
tsaf
tere-
banki
ng
andbef
oree-banking
 Therei
srel
ati
onbet
weencust omers’
satisf
act
ionine-banki
ngthan
ordi
nar
ybanki
ngwithcustomerknowledgeaboute-banki
ng,av
ail
abil
i
ty
andimprov
ementofaccountcont
rolmov ements

54
2.
4OBJECTI
VEOFSTUDY

 Tost
udypeopl
eawar
enessaboutt
hee-
banki
ngser
vicesi
nindi
a
 Toanal
yzepeopl
esat
isf
act
ionl
evel
int
heE-
Banki
ngser
vices.
 Toknowt
her
easonf
orr
efer
ri
nge-
banki
ngser
vices.
 Toknowt
hepeopl
eper
cept
ionaboute-
banki
ng.
 Toknow t
hesoci
aleconomi
cchar
act
eri
sti
csoft
hecust
omer
sofE-
banks
 Toi
dent
if
yther
easonsf
orpr
efer
ri
ngE-
banki
ng.
 Tost
udyt
heconsumer
’sser
vicequal
i
tyi
nE-
banki
ngSy
stem.
 To f
ind outt
heopi
nion oft
her
espondent
sregar
ding t
hev
ari
ous
pr
obl
emsofE-
banki
ng
Togi
vev
aluabl
esuggest
ionst
oimpr
oveawar
enessandsat
isf
act
ionaboutE-
banki
ng ser
vices

55
56
2.
5SCOPEOFTHESTUDY
Todayt
hecust
omerdemandst
heser
vicesofbanks24hour
swher
ehe
l
i
vesev
enhei
sint
heai
rpl
ane.
Nowi
nthi
smoder
naget
heent
ir
ebanki
ngst
ruct
urehasbeenchanged
duet
owi
despr
eadi
nter
nett
echnol
ogy
.Nowal
lthebusi
nessl
i
kecommer
ce,
t
rade,i
mpor
t,expor
t,pur
chaseandsal
eofgoodsi
srel
yi
nguponel
ect
roni
c
banki
ng.Byusi
ngt
headv
anceel
ect
roni
ctechnol
ogyt
hebanki
ngser
vicesar
e
f
astandeconomi
cal
.
Ther
eisasav
ingt
imeansav
ingofmoneyi
ntheuseofE-
banki
ng.I
f
anycount
rywant
stowor
kint
hewor
ldmar
ket
,itwi
l
lhav
etoi
mpr
ovet
he
banki
ngser
vicesati
nter
nat
ionall
evelbecauseol
dtr
adi
ti
onalbanki
ngi
snot
accept
abl
eint
hechangi
nggl
obal
economy
.
Theonl
i
nebanki
ngf
aci
l
ityhasbeenpr
ovi
dedbyt
hel
argenumberof
commer
cialbanks.Onot
herhandcr
edi
tcar
dfaci
l
ityi
sal
soav
ail
abl
eint
he
v
ari
ouscommer
cialbanks.Now ev
erybankwant
stoat
tr
actt
hecust
omer
s
andf
ort
hispur
poset
heof
fer
sthel
atestf
aci
l
iti
essoiseem t
hatnoanybank
wi
l
lsur
viv
eint
hemar
keti
fhef
ail
stopr
ovi
deupdat
efaci
l
iti
es.

57
2.
6SI
GNI
FICANCEOFSTUDY
The st
udy i
s gi
ven a cl
earpi
ctur
e ofcust
omer
s pr
ospect
ivef
or
i
nnov
ati
vebanki
ngser
vicespr
ovi
dedbyt
hei
rbanks.I
tindi
cat
eswhet
her
,the
cust
omeri
ssat
isf
iedwi
thhi
sorherbankornot
.Iti
sal
sopayanat
tent
ion
t
owar
dst
hepr
obl
em f
acedbyt
hecust
omer
swhi
l
eusi
ngt
hei
nter
netbanki
ng
ser
vicesori
nnov
ati
vebanki
ngser
vicespr
ovi
dedbyt
hebank.I
tmayhel
pthe
bankt
otakenecessar
yact
ionagai
nstt
hepr
obl
em oft
hei
rcust
omer
sandt
o
maket
hei
nnov
ati
vebanki
ngser
vicemor
eandmor
epopul
ar.Thest
udygi
ves
an i
dea ofcust
omer
s mi
nd set
,thei
rhabi
tofusi
ng t
radi
ti
onalbanki
ng
ser
vicesandt
heawar
enessr
egar
dingmoder
nandl
atesti
nter
netbanki
ng
ser
vices.Becauseoft
hisst
udynotonl
ycust
omerorbankgott
hei
deaf
or
i
mpr
ovementabouti
nnov
ati
vebanki
ngser
vicesort
hecust
omer
’sawar
eness
r
egar
dingt
heuseofeasye-
banki
ngser
vicesbutal
soi
twi
l
lgui
det
hesoci
ety
,
al
ayman,
Gov
ernmentandf
utur
eresear
cherf
ort
het
remendousmoder
nway
oft
hinki
ng f
orbet
teri
nnov
ati
ve ser
vicesand t
he i
mpl
ement
ati
on oft
he
appr
opr
iat
est
epsagai
nstt
hedi
ff
icul
ti
esofi
nter
netbanki
ngser
vices.Banks
cancomet
oknowt
hechal
l
engesoft
hee-
banki
ngser
vicesandbyt
hisst
udy
;
bankscanconv
ertt
hechal
l
engesi
ntof
utur
eoppor
tuni
ti
es.

Thi
sresear
chwi
l
ldef
ini
tel
ymeett
heneedofmaxi
mum sat
isf
act
ionoft
he
cust
omer
sand t
hissat
isf
act
ion maket
hei
nter
netbanki
ng ser
viceeasy
,
appr
oachabl
e,popul
arandav
ail
abl
eforeachandev
erycust
omerwhowant
s
t
ousei
t.

58
2.
7LI
MITATI
ONSOFSTUDY
 Pr
obl
emsofsecur
it
y:
Secur
it
yandpr
ivacyaspect
sar
emaj
ori
ssuei
ncaseofE-
banki
ngTr
ansact
ion.
Var
ioussi
tesar
enotpr
oper
lyl
ockedatt
oensur
eweat
hercust
omer
’smoney
i
ssaf
eincy
berwor
ldornot
.
 Hi
ghCost
:
Thei
nfr
ast
ruct
uralcostofpr
ovi
dingE-
Banki
ngf
aci
l
ityi
sver
yhi
gh.Thebanks
notonl
yhav
etoaut
omat
efr
ont
-endser
vicesbutal
sobackof
fi
ceser
vices,
whi
chi
nvol
vehi
ghcost
.
 Lackofawar
eness:
Anot
hergr
eathi
ndr
ancei
slackofawar
enessbecauseef
fect
iveandwi
de
medi
aef
for
tsi
npubl
i
shi
ngI
nter
netBanki
ngneedt
obeemphasi
zed.
 Lackofcomput
eri
zat
ion:
Lack ofcomput
eri
zat
ion and l
ow densi
ty oft
elephone l
i
nes i
a al
so a
bot
tl
eneckf
oronl
i
nebanki
ng.I
nIndi
a,outof65000bankbr
anches,onl
y
30000br
anchesar
ecomput
eri
zed.
 Wr
ongassumpt
ionbypeopl
e:
ManyPeopl
ear
eawayf
rom netbanki
ngont
heassumpt
iont
hati
sismor
e
expensi
vet
hant
het
radi
ti
onalmet
hodofdeal
i
ngwi
thbankt
ransact
ions.They
st
il
lpr
efergoi
ngt
obankt
oper
for
mtr
ansact
ions.

59
2.
8DATACOLLECTI
ON

Dat
acol
l
ect
ioni
sthepr
ocessofgat
her
ingandmeasur
ingi
nfor
mat
ion
onv
ari
abl
esofi
nter
est
,inanest
abl
i
shedsy
stemat
icf
ashi
ont
hatenabl
esone
t
oanswerst
atedr
esear
chquest
ions,
testhy
pot
heses,
andev
aluat
eout
comes.
Thedat
acol
l
ect
ioncomponentofr
esear
chi
scommont
oal
lfi
eldsofst
udy
i
ncl
udi
ng phy
sicaland soci
alsci
ences,humani
ti
es,busi
ness,et
c.Whi
l
e
met
hodsv
arybydi
sci
pli
ne,t
heemphasi
sonensur
ingaccur
ateandhonest
col
l
ect
ionr
emai
nst
hesame.
The i
mpor
tance of ensur
ing accur
ate and appr
opr
iat
e dat
a col
l
ati
on
Regar
dlessoft
hef
iel
dofst
udyorpr
efer
encef
ordef
ini
ngdat
a(quant
it
ati
ve,
qual
i
tat
ive)
,accur
atedat
acol
l
ect
ioni
sessent
ial
tomai
ntai
ningt
hei
ntegr
it
yof
r
esear
ch.Bot
hthe sel
ect
ion ofappr
opr
iat
e dat
a col
l
ect
ion i
nst
rument
s
(
exi
sti
ng,
modi
fi
ed,
ornewl
ydev
eloped)andcl
ear
lydel
i
neat
edi
nst
ruct
ionsf
or
t
hei
rcor
rectuser
educet
hel
i
kel
i
hoodofer
ror
soccur
ri
ng.
Consequencesf
rom i
mpr
oper
lycol
l
ect
eddat
aincl
ude
i
nabi
l
ityt
oanswerr
esear
chquest
ionsaccur
atel
y
i
nabi
l
ityt
orepeatandv
ali
dat
ethest
udy
di
stor
tedf
indi
ngsr
esul
ti
ngi
nwast
edr
esour
ces
misl
eading ot
her r
esear
cher
s t
o pur
sue f
rui
tl
ess av
enues of
i
nvesti
gati
on
compr
omi
si
ngdeci
sionsf
orpubl
i
cpol
i
cy
causi
nghar
mtohumanpar
ti
cipant
sandani
mal
subj
ect
s

Whi
l
ethedegr
eeofi
mpactf
rom f
aul
tydat
acol
l
ect
ionmayv
aryby
di
sci
pli
neandt
henat
ureofi
nvest
igat
ion,t
her
eist
hepot
ent
ialt
ocause
di
spr
opor
ti
onat
ehar
m whent
heser
esear
chr
esul
tsar
eusedt
osuppor
tpubl
i
c
pol
i
cyr
ecommendat
ions.

60
2.
9MODEOFDATACOLLECTI
ON

SECONDARYDATA:
Ar
ti
clesonE-
Banki
ngt
akenf
rom j
our
nal
s,magazi
nespubl
i
shedf
rom
t
imet
oti
me.
Thr
oughi
nter
net
.

PRI
MARYDATA
Quest
ionnai
rewasusedt
ocol
l
ectpr
imar
ydat
afr
om r
espondent
s.The
quest
ionnai
re was st
ruct
ured t
ype and cont
ained quest
ions r
elat
ing t
o
di
ff
erentdi
mensi
onsofe-
banki
ngpr
efer
encesamongser
vicecl
asssuchas
l
evelofusage,f
act
orsi
nfl
uenci
ngt
heusageofe-
banki
ngser
vices,benef
it
s
accr
uing t
othe user
s ofe-
banki
ng ser
vices,pr
obl
ems encount
ered.An
at
temptwasal
somadet
oel
i
citr
easonsf
ori
tsnon-
usage.Thequest
ions
i
ncl
udedi
nthequest
ionnai
rewer
eopen-
endedandof
fer
ingmul
ti
plechoi
ces.

61
2.
10SAMPLI
NGSI
ZE

I
tindi
cat
es t
he number
s ofpeopl
eto be sur
vey
ed.Though l
arge
sampl
esgi
vemor
erel
i
abl
eresul
tst
hansmal
lsampl
esbutduet
oconst
rai
nt
oft
imeandmoney
,thesampl
esi
zewasr
est
ri
ctedt
o44r
espondent
s.The
r
espondent
sbel
ongt
odi
ff
erentpeopl
es.

62
 CHAPTERNO:3
LI
TERATUREREVI
EW

 Meani
ngofLi
ter
atur
eRev
iew
Li
ter
atur
eRev
iew pr
ovi
desanov
erv
iew andacr
it
icalev
aluat
ionof
i
nfor
mat
ion,dat
arel
ati
ng t
oar
esear
ch t
opi
c ora r
esear
ch pr
obl
em.I
t
anal
ysesabodyofl
i
ter
atur
einor
dert
ocl
assi
fyi
tbyt
hemesorcat
egor
ies,
r
athert
hansi
mpl
ydi
scussi
ngi
ndi
vi
dualwor
ksoneaf
teranot
her
.Itpr
esent
s
t
her
esear
chandi
deasoft
hef
iel
drat
hert
haneachi
ndi
vi
dualwor
koraut
hor
byi
tsel
f.Whenwewr
it
eat
hesi
s,
 di
sser
tat
ion,or
 r
esear
chpaper
,wewi
l
lhav
e
t
o conducta l
i
ter
atur
erev
iew t
o si
tuat
eyourr
esear
ch wi
thi
n exi
sti
ng
knowl
edge.Thel
i
ter
atur
erev
iewgi
vesy
ouachancet
o:

 Demonst
rat
eyourf
ami
l
iar
it
ywi
tht
het
opi
candschol
arl
ycont
ext
 Dev
elopa 
theor
eti
cal
framewor
k and 
met
hodol
ogy
 fory
ourr
esear
ch
 Posi
ti
ony
our
sel
finr
elat
iont
oot
herr
esear
cher
sandt
heor
ist
s
 Showhowy
ourr
esear
chaddr
essesagaporcont
ri
but
est
oadebat
e

 WhatdoesLi
ter
atur
erev
iewmean?
Al
i
ter
atur
erev
iewi
sasur
veyofschol
arl
ysour
cesonaspeci
fi
ctopi
c.
I
tpr
ovi
desanov
erv
iewofcur
rentknowl
edge,
all
owi
ngy
out
oident
if
yrel
evant
t
heor
ies,
 
met
hods,andgapsi
ntheexi
sti
ngr
esear
ch.Conduct
ingal
i
ter
atur
e
r
evi
ew i
nvol
vescol
l
ect
ing,ev
aluat
ingandanal
ysi
ngpubl
i
cat
ions(
suchas
booksandj
our
nalar
ti
cl
es)t
hatr
elat
etoour
 r
esear
chquest
ion.Ther
ear
efi
ve
mai
nst
epsi
nthepr
ocessofwr
it
ingal
i
ter
atur
erev
iew:

1.Sear
ch 
forr
elev
antl
i
ter
atur
e
2.Ev
aluat
e sour
ces
3.I
dent
if
y t
hemes,
debat
esandgaps
4.Out
li
ne 
thest
ruct
ure
5.Wr
it
e y
ourl
i
ter
atur
erev
iew

63
  E-
Banki
ngAwar
eness
I
nfor
mat
ion Technol
ogy has become a necessar
ytooli
ntoday
’s
or
gani
zat
ions.Bankst
odayoper
atei
nahi
ghl
ygl
obal
i
zed,pr
ivat
izedanda
compet
it
iveenv
ironment
.Inor
dert
osur
viv
eint
hisenv
ironmentbanks,hav
e
t
ouseI
nfor
mat
ionTechnol
ogy(
IT)whi
chi
sincr
easi
ngl
ypl
ayi
ngasi
gni
fi
cant
r
olei
nimpr
ovi
ngt
heser
vicesi
nthebanki
ngi
ndust
ry.Onl
i
nebanki
ngi
san
el
ect
roni
cpay
mentsy
stem t
hatenabl
escust
omer
sofaf
inanci
ali
nst
it
uti
ont
o
conductf
inanci
alt
ransact
ionsonawebsi
teoper
atedbyt
hei
nst
it
uti
on,such
asar
etai
lbank,
vir
tualbank,
credi
tuni
onorbui
l
dingsoci
ety
.Onl
i
nebanki
ngi
s
al
so r
efer
red as I
nter
netbanki
ng,E-
banki
ng,v
irt
ualbanki
ng.E-
banki
ng
pr
ovi
desser
vicessuchasMobi
l
ebanki
ng,
ATM ki
osks,
FundTr
ansf
er

Sy
stem,RealTi
meGr
ossSet
tl
ement(
pay
ment&al
l
otmentsy
stem)
,Cr
edi
t/
Debi
t/
Smar
t,Cashgov
ernmentser
vices,
Cust
omerRel
ati
onshi
pManagement
.
Thepr
ivat
eandf
orei
gnbanksbr
oughtnewt
echnol
ogi
esandr
ender
ed
t
echnol
ogy
-basedwor
ldcl
assqual
i
tyser
vicest
ocust
omer
sthr
oughATMs,
cr
edi
tcar
dsandi
nter
netbanki
ng.Theuseoft
echnol
ogyi
nbanki
nghas
r
esul
tedi
nav
ail
abi
l
ityofmul
ti
pledel
i
ver
ychannel
sli
keATMs,t
elebanki
ng,
i
nter
netbanki
ng,mobi
l
ebanki
ng,any
wher
eandany
timebanki
nget
c.Thus,
t
het
erm E-
banki
ngi
ncl
udesRTGS,NEFT,ECS,Cr
edi
tcar
dsanddebi
tcar
ds,
Chequet
runcat
ion,ATM,Tel
ebanki
ng,I
nter
netbanki
ngandMobi
l
ebanki
ng.
Theconceptand scopeofe-
banki
ng i
sst
il
lint
het
ransi
ti
onalst
age.E-
Banki
nghasbr
okent
hebar
ri
ersofbr
anchbanki
ng.
Thei
mpor
tanceofel
ect
roni
cbasedbanki
ngpr
oduct
sisi
ncr
easi
ngday
byday
.Ar
evi
ew ofexi
sti
ngl
i
ter
atur
erev
eal
sthei
mpact
,chal
l
enges,t
rends
anddev
elopmentmadebyE-
banki
ngi
ntheI
ndi
anbanki
ngsect
or.Ther
epor
ts
br
ief
lysummar
izedbel
ow:

64
 Nat
ional
Lit
erat
urer
evi
ew

1)Pooj
aMal
hot
ra&Bal
winderSI
NGH(
2009)
,“TheI
mpactofI
nter
net
Banki
ngonBankPer
for
manceandRi
sk:
TheI
ndi
anExper
ience”
.
Thepaperdescr
ibest
hecur
rentst
ateofI
nter
netbanki
ngi
nIndi
aand
di
scussesi
tsi
mpl
i
cat
ionsf
ort
heI
ndi
anbanki
ngi
ndust
ry.Par
ti
cul
arl
y,
i
tseeks t
o exami
ne t
he i
mpactofI
nter
netbanki
ng on banks’
per
for
manceandr
isk.Usi
ngi
nfor
mat
iondr
awnf
rom t
hesur
veyof85
schedul
edcommer
cial
bank’
swebsi
tes,
dur
ingt
heper
iodofJune2007,
t
her
esul
tsshowt
hatnear
ly57per
centoft
heI
ndi
ancommer
cialbanks
ar
epr
ovi
dingt
ransact
ionalI
nter
netbanki
ngser
vices.Theuni
var
iat
e
anal
ysi
sindi
cat
es t
hatI
nter
netbanks ar
elar
gerbanks and hav
e
ef
fi
ciencyr
ati
osandpr
ofi
tabi
l
ityascompar
edt
onon-
Int
ernetbanks.
I
nter
netbanksr
elymor
eheav
il
yoncor
edeposi
tsf
orf
undi
ngt
hannon-
I
nter
netbanksdo.Howev
er,t
hemul
ti
pler
egr
essi
onr
esul
tsr
evealt
hat
t
hepr
ofi
tabi
l
ityandof
fer
ingofI
nter
netbanki
ngdoesnothav
eany
si
gni
fi
cantassoci
ati
on,on t
he ot
herhand,I
nter
netbanki
ng has a
si
gni
fi
cantandnegat
iveassoci
ati
onwi
thr
iskpr
ofi
l
eoft
hebanks.
2)V.Raj
a,JoeA.(
2012)
,“Gl
obale-
banki
ngscenar
ioandchal
l
engesi
n
banki
ngsy
stem”
,
Thi
spaperi
san at
temptt
o expl
oret
hev
ari
ousl
evel
sofi
nter
net
banki
ngser
vicespr
ovi
dedbybanksusi
ngt
hesecondar
ydat
a.I
tal
so
compar
est
het
radi
ti
onalbanki
ngsy
stemswi
thnetbanki
ng.I
tli
stsout
t
hev
ari
ousadv
ant
agesofi
nter
netbanki
ngandt
hesuccessf
ulsecur
it
y
measur
esadopt
edbydi
ff
erentbanksf
orsecur
edbanki
ngt
ransact
ions.
I
tal
soanal
yseshow E-
banki
ngcanbeusef
ulf
orbanki
ngi
ndust
ry
dur
ingt
hisgl
obal
financi
almel
tdown.

3)Shi
l
piKhandel
wal
(2013)“
EBanki
ng:
Fact
orsofAdopt
ioni
nIndi
a”,
Thi
spaperpr
esent
sthel
astdecadehaswi
tnessedadr
ast
icchangei
n
t
heeconomi
candbanki
ngenv
ironmental
lov
ert
hewor
ld.Wi
tht
he

65
economi
candf
inanci
alsect
orr
efor
msi
ntr
oducedi
nthecount
rysi
nce
ear
ly1990s,t
heoper
ati
ngenv
ironmentf
orbanksi
nIndi
ahasal
so
under
gonear
api
dchange.I
ncr
easi
ngl
y,mor
eandmor
epeopl
ear
e
swi
tchi
ngt
oel
ect
roni
cpl
atf
ormsf
orexecut
ingf
inanci
alt
ransact
ions.
I
nter
netbanki
nghasbr
oughtabouta360-
degr
eechangei
ntheent
ir
e
banki
ngi
ndust
ry.Thewi
derusageofcel
lphoneandi
nter
netcer
tai
nly
seems t
o be pl
ayi
ng a r
olei
n bl
urr
ing phy
sicalboundar
ies,and
unl
ocki
ngawhol
enew wor
ldofoppor
tuni
ti
esf
orbanksi
ntappi
ng
newer cust
omer segment
s and i
nrecor
ding gr
eat
er v
olume of
t
ransact
ions.Fort
hebanks,t
echnol
ogyhasemer
gedasast
rat
egi
c
r
esour
ce f
orachi
evei
n hi
gheref
fi
ciency
,cont
rolof oper
ati
ons,
pr
oduct
ivi
tyandpr
ofi
tabi
l
ity
.Forcust
omer
s,i
tist
her
eal
i
zat
ionoft
hei
r
any
wher
e,any
time,any
waybanki
ngdr
eam.Thi
shaspr
ompt
edt
he
banks t
o embr
ace t
echnol
ogy t
o meett
he i
ncr
easi
ng cust
omer
expect
ati
onandf
acet
het
oughcompet
it
ion.Thi
sresear
chpaperi
s
f
ocused on whatar
ethe dr
iver
sthatdr
ive consumer
stowar
ds
adopt
ionofEbanki
ng.Howconsumer
shav
eaccept
edi
nter
netbanki
ng
andhowt
oimpr
ovet
heusager
atewer
ethef
ocusofr
esear
char
eai
n
t
hisst
udy
.
4)SudhakarA.M.
,Sur
yanar
ayana,(
2011)
,“Emer
gingmobi
l
ebanki
ng
scenar
ioandi
tsadopt
ioni
nIndi
a:ast
udy
”,
Wi
th br
oadband communi
cat
ion t
echnol
ogi
caldev
elopment
s and
mobi
l
ephonespenet
rat
ion(
481mi
l
li
onbyJune2009)i
ntocommon
man'
sli
fehav
etr
igger
edmaj
ort
hrusti
ntheBanki
ngser
vicesect
orof
I
ndi
a.Wi
th Mobi
l
e Banki
ng-a r
evol
uti
onar
y appr
oach t
o banki
ng
t
ransact
ionshascr
eat
edast
rongconnect
ivi
tybet
weencust
omer
sand
t
hebanksasbot
hwi
l
ltr
ansactwi
thmi
nimum costandi
nmi
nimum
t
ime.I
tisat
imel
yandi
tscost
-ef
fect
iveser
vicescandel
i
vermobi
l
e
moneyt
onon-
bankedpoorpeopl
eandwi
l
linduceeconomi
cgr
owt
hof
t
hecount
ry.Thi
sar
ti
cledi
scussest
hest
atusofMobi
l
eBanki
ngi
nIndi
a
andot
hercount
ri
eswi
themphasi
sondat
asecur
it
yandst
andar
dsand
i
tsi
mpl
i
cat
iononbanki
ngsect
or.

66
 5)RakeshHM &Ramy
aTJ(
2014)
,“ASt
udyonFact
orsI
nfl
uenci
ng
ConsumerAdopt
ionofI
nter
netBanki
ngi
nIndi
a”,
I
nthei
rresear
ch paperaut
hort
ri
ed t
o exami
ne t
he f
act
orst
hat
i
nfl
uencei
nter
netbanki
ngadopt
ion.Usi
ngPLS,
amodeli
ssuccessf
ull
y
pr
oved and i
tisf
ound t
hati
nter
netbanki
ng i
sinf
luenced byi
ts
per
cei
vedr
eli
abi
l
ity
,Per
cei
vedeaseofuseandPer
cei
vedusef
ulness.
I
nthemar
ket
ingpr
ocessofi
nter
netbanki
ngser
vicesmar
ket
ingexper
t
shoul
demphasi
zet
hesebenef
it
sit
sadopt
ionpr
ovi
desandawar
eness
can al
so be i
mpr
oved t
o at
tractconsumer
s’at
tent
ion t
oint
ernet
banki
ngser
vices.

I
nter
nat
ional
Lit
erat
urer
evi
ew

1) Van B.
,Paul
,Vel
oso,Fr
anci
sco M.and Ol
i
vei
ra,P.
,(2012)
,
“
Innov
ati
onbyUser
sinEmer
gingEconomi
es:Ev
idencef
rom Mobi
l
e
Banki
ngSer
vices”
,
Thi
spaperexami
nedt
heext
entt
owhi
chuser
sinemer
gingeconomi
es
i
nnov
ate,andwhet
hert
hesei
nnov
ati
onsar
emeani
ngf
ulonagl
obal
st
age.To st
udyt
hisi
ssue,t
her
esear
cherconduct
ed an empi
ri
cal
i
nvest
igat
ion i
ntot
he or
igi
n and t
ypes ofi
nnov
ati
ons i
nfi
nanci
al
ser
vices of
fer
ed v
ia mobi
l
e phones,a gl
obal
,mul
ti
-bi
l
li
on-
dol
l
ar
i
ndust
ry wher
e emer
ging economi
es pl
ay an i
mpor
tantr
ole.The
r
esear
cherused t
he compl
etel
i
stofmobi
l
efi
nanci
alser
vices,as
r
epor
ted by t
he GSM Associ
ati
on (
GSMA)
,and col
l
ect
ed det
ail
ed
hi
stor
ies oft
he dev
elopmentoft
he ser
vices and t
hei
rinnov
ati
on
pr
ocess.Anal
ysi
soft
hisst
udyshowst
hat85% oft
hei
nnov
ati
onsi
n
t
hisf
iel
d or
igi
nat
ed i
n emer
ging mar
ket
s.The r
esear
cher al
so
concl
udes t
hatatl
east50% ofal
lmobi
l
efi
nanci
alser
vices wer
e
pi
oneer
edbyuser
s,appr
oxi
mat
ely45%bypr
oducer
s,and5%j
oint
lyby
user
s and pr
oducer
s.Addi
ti
onal
l
y,ser
vices dev
eloped by user
s
di
ff
usedatmor
ethandoubl
ether
ateofpr
oducer
-i
nnov
ati
ons.Fi
nal
l
y,
t
her
esear
cherobser
vedt
hatt
hree-
quar
ter
soft
hei
nnov
ati
onst
hat
or
igi
nat
ed i
n emer
ging mar
ket
s hav
e al
ready di
ff
used t
o OECD

67
count
ri
es and t
hatt
he (
user
)innov
ati
ons ar
ether
efor
e gl
obal
l
y
meani
ngf
ul.

2)ShazaW.Ezzi
(Apr
il2014)
,“ATheor
eti
cal
Model
forI
nter
netBanki
ng:
Bey
ondPer
cei
vedUsef
ulnessandEaseofUse”
,
Aut
hort
ri
edt
oinqui
reddi
ff
erentt
ypesofel
ect
roni
cbanki
ngl
i
keATM’
s,
t
elephonebanki
ng,andel
ect
roni
cfundst
ransf
er,I
nter
netbanki
ngl
i
ke
has ev
olv
ed f
rom consumer
s’needs t
o hav
e super
ioraccess t
o
banki
ngser
vicescl
earofmostbanks’t
ell
er-
staf
fed,nor
maloper
ati
ng
hour
s.Addi
ti
onal
l
y,I
nter
netbanki
nghasgr
ownswi
ft
lyf
rom t
her
ecent
andt
hespani
ncr
easesi
necommer
ce.I
nter
netbanki
ng(
IB)cont
inues
t
ogov
ernt
hel
andscapeofel
ect
roni
cbanki
ngasconsumer
scont
inue
t
ouseI
Btocompl
eteschedul
ebanki
ngt
ransact
ionsi
naddi
ti
ont
o
conduct
ing on-
li
ne sal
es and pur
chasi
ng.Thi
s st
udy pr
esent
sa
t
heor
eti
calmodelconsi
der
ed t
o hel
presear
cher
sand pr
act
it
ioner
s
bet
terunder
standt
heaccept
anceandadopt
ionofI
nter
netBanki
ng.
Thepr
oposedmodelmay
bepar
ti
cul
arl
yusef
uli
ndev
elopi
ngnat
ions
wher
econsumer
sar
eloat
htouseI
nter
netBanki
ngev
enwhent
he
ser
vicesar
eav
ail
abl
e.Howev
er,ar
evi
ew ofsev
eralst
udi
est
hathav
e
i
nvest
igat
edconsumer
s’accept
anceofI
nter
netbanki
ngser
vicesf
rom
amul
ti
pli
ci
tyofper
spect
iveshav
enotr
eachedacl
earconsensusof
t
he f
act
orst
hatcont
ri
but
eto ov
eral
lconsumeraccept
ance and
adopt
ion.Thepaperconcl
udeswi
thdi
scussi
onsoft
hemanager
ial
i
mpl
i
cat
ionsandav
enuesf
orf
utur
eresear
ch.

3)DorraGheri
b(2014)
, “
Adopt
ionanddi
ff
usi
onofi
nter
netbanki
ng:
caseofTunisi
anbanki
ngsector”
,
Inthi
spaper,aut
hortr
iedtoobserv
etheembr
aci
ngofInt
ernetbanki
ng
i
ntheTuni
si
anbanki
ngi
ndust
ry.Theai
mist
omakeoutf
act
orst
hat
accel
erat
eorsl
ow downt
hei
mpl
ement
ati
onpr
ocess.Thel
i
ter
atur
e

68
r
evi
ew enabl
esi
dent
if
yingasetofv
ari
abl
es:or
gani
zat
ional
,indi
vi
dual
andst
ruct
ural
.Ther
esear
chmet
hodol
ogyusedwi
thi
nthi
sst
udyi
sthe
casest
udy
.Fi
vecasest
udi
esi
nbanki
ngsect
orwer
eexecut
ed.The
sampl
eisshapedbybankst
hatadopt
edt
heI
nter
netBaki
ngasa
moder
nizat
ion.The anal
ysi
s al
l
owed t
he wi
l
lpoweroft
he r
elat
ed
di
mensi
onsoft
heaf
oresai
dvar
iabl
es(
compet
it
ion,
per
cei
vedbenef
it
s,
andor
gani
zat
ionalcompat
ibi
l
ity
).I
ndeed,t
hisr
esear
chhasexposed
some v
ari
abl
es t
hathampert
he i
mpl
ement
ati
on oft
echnol
ogi
cal
i
nnov
ati
ons.
4)Nabi
lHussei
n Al
-Fahi
m (
2013)
,“An t
ent
ati
ve St
udyofFact
ors
di
str
essi
ngt
heI
nter
netBanki
ngespousal
:AQual
i
tat
iveSt
udyamong
Post
graduat
eSt
udent
s”,
Thest
udybyaut
horf
indsoutt
hef
act
orst
hataf
fectt
hei
nter
net
banki
ng espousalamong post
graduat
e’st
udent
sinI
nter
nat
ional
I
slami
c Uni
ver
sit
y Mal
aysi
a (
II
UM)
. Appr
oach- Semi st
ruct
ured
i
nter
viewswi
thei
ghti
nfor
mant
s;f
ouradopt
ersandf
ournon-
adopt
ers
onpost
graduat
e’st
udent
swer
econduct
edt
oexpl
oret
hisi
ssue.The
r
esul
tsr
eveal
edt
hatadopt
ersandnon-
adopt
ersr
eal
i
zedt
hati
nter
net
banki
ng(
IB)hasqui
teal
otofbenef
it
sandameni
ti
es.Howev
er,non-
adopt
erswer
econcer
nedaboutsomef
act
orsl
i
ket
rust
,easeofuse,
awar
enessandsecur
it
y.Ther
esul
tsal
soshowedt
hatadopt
ershad
posi
ti
vei
nfl
uenceonuseofonl
i
nebanki
ngandt
heydi
dnothav
e
pr
obl
emswi
tht
hesef
act
orsbecauset
heyhadsuf
fi
cientknowl
edge
andexper
iencei
nusi
ngonl
i
nebanki
ng.Thef
indi
ngsar
eimpor
tantt
o
enabl
e bankExecut
ivest
o hav
e a bet
terunder
standi
ng ofcl
i
ent
s’
per
cept
iont
oadopti
nter
netbanki
ng.Thi
swi
l
lhel
pbanks’manager
s
andowner
sfor
mul
atest
rat
egi
est
hatcoul
dsi
gni
fi
cant
lyaf
fectI
BA
amongt
hei
rcust
omer
s.
5)Donnel
i
eKMuzi
vi
dzi
,Rangar
ir
aiMbi
zi&Ti
nasheMukwazhe(
2013)
,
“
An Anal
ysi
s ofFact
ors ThatI
nfl
uence I
nter
netBanki
ng Adopt
ion
amongI
ntel
l
ect
ual
s:CaseofChi
nhoy
iUni
ver
sit
yofTechnol
ogy
”,
Thi
spaperi
nvest
igat
est
headopt
iononi
nter
netbanki
nghasr
emai
ned
sl
uggi
shdespi
tet
heef
for
tsbybankst
opr
omot
ethet
echnol
ogy
.The
pur
poseoft
her
esear
chpr
ojectwast
oident
if
ythef
act
orst
hataf
fect

69
t
headopt
ionofi
nter
netbanki
ngi
nabi
dtoconst
ructway
stosal
vage
t
he si
tuat
ion.The r
esear
ch f
ocused on i
ntel
l
ect
ual
s who bet
ter
under
standt
echnol
ogyt
hant
hegener
alpubl
i
c.Dat
awascol
l
ect
ed
usi
ng quest
ionnai
res and i
nter
views f
rom t
he popul
ati
on of5000
st
udent
sandacademi
cst
affatChi
nhoy
iUni
ver
sit
yofTechnol
ogy
.A
sampl
eof450st
udent
sandst
affwer
esel
ect
edf
rom t
hepopul
ati
on.
The r
esear
ch i
dent
if
ied v
ari
ous f
act
orst
hati
mpose bar
ri
ers and
enhanceadopt
ionof

i
nter
netbanki
ng.Chi
efamongt
hesewer
ecompr
omi
sedsecur
it
yof
t
ransact
ionsandmar
ket
ingexposur
e.I
tal
sounear
thedt
hei
mpactof
demogr
aphi
c on i
nter
netbanki
ng adopt
ion.Two hy
pot
heses wer
e
t
est
ed,t
hef
ir
stonewhi
chwasmeantt
odet
ermi
nei
fther
eexi
stany
r
elat
ionshi
p bet
ween age and i
nter
netbanki
ng adopt
ion.I
twas
concl
uded t
hatt
her
eis a negat
iver
elat
ionshi
p bet
ween age and
i
nter
net banki
ng adopt
ion.The second hy
pot
hesi
s assumed an
associ
ati
onbet
weeni
nter
netbanki
ngandl
evelofeducat
ion.Educat
ion
was deemed a pr
erequi
sit
ein enhanci
ng t
he smoot
h adopt
ion of
i
nter
netbanki
ng and henceoneshoul
d hav
easi
gni
fi
cantl
evelof
educat
ion t
otake up t
he t
echnol
ogy
.In wagi
ng a pr
otr
act
ed war
agai
nstl
owl
evel
sofi
nter
netbanki
ngadopt
iont
her
esear
chconcl
uded
banksshoul
drat
herconcent
rat
einpr
omot
ingt
hepr
oduct(
int
ernet
banki
ng)
.Bank shoul
d al
so i
nst
it
ute measur
es t
o guar
ant
ee t
he
secur
it
yoft
ransact
ionst
oint
ernetbankuser
sast
hisr
emai
nst
he
st
umbl
i
ngbl
ockt
omanypot
ent
ial
cust
omer
s.

70
 CHAPTERNO:4
COMPANYPROFI
LE

4.
1OVERVI
EW

I
ndi
anbanki
ngi
ndust
ryhasbeendi
vi
dedi
ntot
wopar
ts,
organi
zedand
unor
gani
zedsect
ors.Theor
gani
zedsect
orconsi
stsofReser
veBankofI
ndi
a,
Commer
cialBanks and Co-
oper
ati
ve Banks,and Speci
ali
zed Fi
nanci
al
I
nst
it
uti
ons (
IDBI
,ICI
CI,I
FC et
c).The unor
gani
zed sect
or,whi
ch i
s not
homogeneous,i
slar
gel
ymadeupofmoneyl
ender
sandi
ndi
genousbanker
s.
Anout
li
neoft
heI
ndi
anBanki
ngst
ruct
uremaybepr
esent
edasf
oll
ows:

Fi
g.1:
Out
li
neoft
heI
ndi
anBanki
ngst
ruct
ure
Ther
ear
edi
ff
erentpubl
i
csect
or,pr
ivat
esect
or,commer
cialand f
orei
gn

71
banksexi
sti
nIndi
a.Det
ail
saboutoneofwel
lknown(
her
ewehav
etaken
exampl
eofHDFCbank)bankar
eil
l
ust
rat
edbel
ow:
Housi
ngDev
elopmentFi
nanceCor
por
ati
onLi
mit
ed(
HDFC)
HDFCBankLi
mit
edi
sanI
ndi
anf
inanci
alser
vicescompanybasedi
nMumbai
,
Mahar
asht
rat
hatwasi
ncor
por
atedi
nAugust1994.HDFCBanki
sthef
if
thor
si
xthl
argestbanki
nIndi
abyasset
sandt
hef
ir
stl
argestbankbymar
ket
capi
tal
i
zat
ion as ofNov
ember1,2012.The bankwas pr
omot
ed byt
he
Housi
ng Dev
elopmentFi
nance Cor
por
ati
on,a pr
emi
er housi
ng f
inance
company(
setupi
n1977)ofI
ndi
a.

4.
2HI
STORY

HDFC Bankwas i
ncor
por
ated i
n 1994 byHousi
ng Dev
elopmentFi
nance
Cor
por
ati
onLi
mit
ed(
HDFC)
,Indi
a'
slar
gesthousi
ngf
inancecompany
.Itwas
among t
hef
ir
stcompani
est
orecei
vean'
i
npr
inci
ple'appr
ovalf
rom t
he
Reser
veBankofI
ndi
a(RBI
)tosetupabanki
nthepr
ivat
esect
or.TheBank
st
art
edoper
ati
onsasaschedul
edcommer
cialbanki
nJanuar
y1995under
t
heRBI
'
sli
ber
ali
sat
ionpol
i
cies.
Ti
mesBankLi
mit
ed(
ownedbyBennet
t,Col
eman&Co.
/TheTi
mesGr
oup)
wasmer
gedwi
thHDFCBankLt
d.,i
n2000.Thi
swast
hef
ir
stmer
geroft
wo
pr
ivat
ebanksi
nIndi
a.Shar
ehol
der
sofTi
mesBankr
ecei
ved1shar
eofHDFC
Bankf
orev
ery5.
75shar
esofTi
mesBank.
I
n 2008 HDFC Bank acqui
red Cent
uri
on Bank ofPunj
ab t
aki
ng i
tst
otal
br
anchest
omor
ethan1,
000.Theamal
gamat
edbankemer
gedwi
thabaseof
aboutRs.1,
22,
000cr
oreandnetadv
ancesofaboutRs.
89,
000cr
ore.The
bal
ancesheetsi
zeoft
hecombi
nedent
it
yismor
ethanRs.
1,63,
000cr
ore.

4.
3VI
SION

To be cust
omerdr
iven bestmanaged ent
erpr
ise t
hatenj
oys mar
ket
l
eader
shi
pinpr
ovi
dinghousi
ngr
elat
edf
inance.

4.
4MI
SSI
ON

Topr
ovi
deapackageofat
tract
ivef
inanci
alser
vicesf
orhousi
ngpur
poses

72
t
hroughacompet
entandmot
ivat
edt
eam ofempl
oyeesusi
ngt
hest
ate-
of-
the
-
artt
echnol
ogyt
omai
ntai
nfi
nanci
alst
abi
l
ityandgr
owt
hoft
heor
gani
zat
ion
whi
l
stcont
ri
but
ingt
othenat
ional
goal
ofpr
ovi
dingdecenthousi
ngt
oal
l
.
4.
5ACHI
VEMNET

HDFC Bankdeal
swi
tht
hreekeybusi
nesssegment
s.-Whol
esal
eBanki
ng
Ser
vices,Ret
ailBanki
ng Ser
vices,Tr
easur
y.I
thas ent
ered t
he banki
ng
consor
ti
aofov
er50cor
por
atesf
orpr
ovi
dingwor
kingcapi
talf
inance,t
rade
ser
vices,cor
por
atef
inance,and mer
chantbanki
ng.I
tis al
so pr
ovi
ding
sophi
sti
cat
edpr
oductst
ruct
uresi
nar
easoff
orei
gnexchangeandder
ivat
ives,
moneymar
ket
sanddebtt
radi
ngAndEqui
tyr
esear
ch.
 Whol
esal
ebanki
ngser
vices

TheBankpr
ovi
desawi
der
angeofcommer
cialandt
ransact
ionalbanki
ng
ser
vices,i
ncl
udi
ng wor
king capi
talf
inance,t
rade ser
vices,t
ransact
ional
ser
vices,cashmanagement
,et
c.Thebanki
sal
soal
eadi
ngpr
ovi
deroft
he
abov
eser
vicest
oit
scor
por
atecust
omer
s,mut
ualf
unds,st
ock-
exchange
member
sandbanks.
 Ret
ail
banki
ngser
vices

HDFCBankwast
hef
ir
stbanki
nIndi
atol
aunchanI
nter
nat
ionalDebi
tCar
din
associ
ati
onwi
thVI
SA(
VisaEl
ect
ron)andi
ssuest
heMast
erCar
dMaest
ro
debi
tcar
daswel
l
.TheBankl
aunchedi
tscr
edi
tcar
dbusi
nessi
nlat
e2001.t
he
bankhadat
otal
car
dbase(
debi
tandcr
edi
tcar
ds)ofov
er13mi
l
li
on.
TheBanki
sposi
ti
onedi
nvar
iousnetbasedB2Coppor
tuni
ti
esi
ncl
udi
nga
wi
de r
ange ofI
nter
netbanki
ng ser
vices f
orFi
xed Deposi
ts,Loans,Bi
l
l
Pay
ment
s,et
c.Wi
thFi
nestofTechnol
ogyandBestofManpoweri
nBanki
ng
I
ndust
ryHDFCBank'
sret
ailser
viceshav
ebecomebyandl
arget
hebesti
n
I
ndi
aandt
otalnumberofcur
rentandsav
ingsaccountofmor
ethan50%,
HDFCBANKhasf
ull
pot
ent
ial
tobecomeI
ndi
a'
sNo.
1Pr
ivat
eSect
orBank.

 Tr
easur
y

Wi
thi
nthi
s busi
ness,t
he bank has t
hree mai
n pr
oductar
eas -
For
eign
ExchangeandDer
ivat
ives,LocalCur
rencyMoneyMar
ket&DebtSecur
it
ies,

73
andEqui
ti
es.Theseser
vicesar
epr
ovi
dedt
hrought
hebank'
sTr
easur
yteam.
Tocompl
ywi
thst
atut
oryr
eser
ver
equi
rement
s,t
hebanki
srequi
redt
ohol
d
25% ofi
ts deposi
tsi
n gov
ernmentsecur
it
ies.The Tr
easur
ybusi
ness i
s
r
esponsi
blef
ormanagi
ngt
her
etur
nsandmar
ketr
iskont
hisi
nvest
ment
por
tfol
i
o
 I
nfr
ast
ruct
ureandbusi
nessgr
owt
h

AsonDecember2012,HDFCBankhas2,
776br
anchesand10,
490ATMs,i
n
1,
399ci
ti
esi
nIndi
a,andal
lbr
anchesoft
hebankar
eli
nkedonanonl
i
ner
eal
-
t
imebasi
s.66,
076empl
oyeesar
ewor
kingi
nHDFC.AsofDecember2012,
t
hebankhadbal
ancesheetsi
zeofRs.3837bi
l
li
on.Fort
hef
iscaly
ear2011-
12,t
hebankhasr
epor
tednetpr
ofi
tof5167.
07cr
ore(
US$950mi
l
li
on)
,up
31.
6%f
rom t
hepr
evi
ousf
iscal
.
 Pr
oduct
s

Cr
edi
tcar
ds,consumerbanki
ng,cor
por
atebanki
ng,f
inanceandi
nsur
ance,
i
nvest
mentbanki
ng,mor
tgagel
oans,pr
ivat
ebanki
ng,pr
ivat
eequi
ty,weal
th
management
.
Someofot
herachi
evement
sar
eli
stedbel
ow:
 HDFCbanki
sthesecondl
argestpr
ivat
ebanki
ngsect
ori
nIndi
ahav
ing
2,
201br
anchesand7,
110ATM’
s.

 HDFCbanki
slocat
edi
n1,
174ci
ti
esi
nIndi
aandhasmor
ethan800
l
ocat
ionst
oser
vecust
omer
sthr
oughTel
ephonebanki
ng.

 Thebank’
sATM car
discompat
ibl
ewi
thal
ldomest
icandi
nter
nat
ional
Vi
sa/
Mast
ercar
d,Vi
saEl
ect
ron/Maest
roandAmer
icanExpr
ess.Thi
s
i
soner
eason f
orHDFC car
dst
o bet
hemostpr
efer
red car
dfor
shoppi
ngandonl
i
net
ransact
ions

 HDFC bank has t

he hi
gh degr
ee ofcust
omersat
isf
act
ion when
compar
edt
oot
herpr
ivat
ebanks.

 Theat
tri
ti
onr
atei
nHDFCi
slowandi
tisoneoft
hebestpl
acest
owor
k
i
npr
ivat
ebanki
ngsect
or.

 HDFChasl
otsofawar
dsandr
ecogni
ti
on,i
thasr
ecei
ved‘
BestBank’

74
 awar
dfr
om v
ari
ousf
inanci
alr
ati
ngi
nst
it
uti
onsl
i
keDunandBr
adst
reet
,
Fi
nanci
alexpr
ess,Eur
omoneyawar
ds f
orexcel
l
ence,Fi
nance Asi
a
count
ryawar
dset
c

 HDFC has good f

inanci
aladv
isor
sint
erms ofgui
ding cust
omer
s
t
owar
dsr
ighti
nvest
ment
s.

CHAPTERNO: 5
DATAANALYSI S,
I
NTERPRETATION
ANDPRESENTATION

75
 DATA
ANALSI
S
1)WHATI
SYOURAGE?

AgeGroup(iny
ear
s) No.ofRespondent
s Percent
age
20-25 40 90.909091%
26-
50 3 6.8181818%
Above50 1 2.2727273%
Tot
al 44 100%

I
nter
pret
ati
ons

1.20-
25Agepeopl
ear
e90.
91% Responds.

2.26-
50Agepeopl
ear
e6.
81% Responds.

76
3.Abov
e50Agepeopl
ear
e2.
27% Responds.

2)AREYOUMALEORAFEMALE?

Gender No.ofRespondent
s Per
cent
age
Mal
e 19 43.
18181818%
Femal
e 25 56.
81818182%
Tot
al 44 100%

I
nter
pret
ati
ons

Female56.
18%areandmor
ethanMal
esi
e.43.
18%Whi
chgi
vei
nfor
mat
ion
aboutE-
Banki
ng.

77
 WHATI
3) SYOURMARI
TALSTATUS?

Mari
tal
St at
us No.ofRespondent
s Percent
age
Marri
ed 5 11.36363636%
Unmar r
ied 39 88.63636364%
Total 44 100%

I
nter
pret
ati
ons

1.Mar
it
alSt
atusi
nMar
ri
edPeopl
eis11.
36%andUnmar
ri
edi
s88.
63%

78
 4)WHATI
SYOURCURRENTOCCUPATI
ON?

Occupat ion No.ofRespondent

s Percent
age
Empl oyee 25 56.81818182%
Business 10 22.72727273%
Agricul
ture 1 2.
272727273%
Professional 5 11.36363636%
Student 3 6.
818181818%
Tot
al 44 100%

I
nter
pret
ati
ons

Accor
dingt
otheAbov
einf
ormat
ionofoccupat
ionempl
oyesar
ethehi
gher
ar
ether
espondent
sthati
s56.
82%andBusi
nessr
espondent
sar
e22.
72%,
St
udentr
espondent
sar
e6.
82%,
prof
essi
onal
respondent
sar
e11.
36%andt
he
l
astwhi
chi
shav
ingt
hel
owestr
espondent
sisAgr
icul
tur
eis2.
27%.

79
 5)WHATI
SYOURI
NCOMELEVEL?

Income No.ofRespondent
s Percent
age
Upt
oRs. 1,
00,
000 27 61.363636%
Rs1,
00,
001t oRs3,00,
000 10 22.727273%
AboveRs3,00,000 7 15.909091%
Total 44 100%

I
nter
pret
ati
ons

TheFol
l
owi
ngpi
echar
tandTabl
einf
ormat
ionr
egar
dingI
ncome.

1.Peopl
ehav
ingupt
o₹1,
00,
000i
ncomear
eabout61.
36%.

2.Peopl
ehav
ing₹1,
00,
001t
o₹3,
00,
000i
ncomear
eabout22.
72%.

3.Peopl
ehav
ingAbov
e₹3,
00,
000i
comear
eabout15.
91%

80
 6)DOYOUHAVEAKNOWLEDGEONE-
BANKI
NG?

Knowl
edge No.ofRespondent
s Per
cent
age
Yes 42 9.
5454545%
No 2 4.
5454545%
Tot
al 44 100%

I
nter
pret
ati
ons

Ar
ound95%Peopl
eknownaboutE-
banki
ngand5%peopl
ehav
enoi
deaabout
i
t.

81
 7)DOYOUUSEOFE- NG?
BANKI

Use No.ofRespondent
s Per
cent
age
Yes 38 86.
363636%
No 6 13.
636364%
Tot
al 44 100%

I
nter
pret
ati
ons

86% ofPeopl
eusese-
banki
ngand14%peopl
edoesnot
.

82
 6)HOW OFENLYDOYOUUSEOFE-
BANKI
NG?

Oft
en No.ofRespondent
s Percent
age
Dail
y 14 31.81%
Weekly 11 25%
Monthl
y 11 25%
Never 8 18.18%
Total 44 100%

I
nter
pret
ati
ons

32%ofpeopl
edai
l
yusesE-
banki
ng.

25% ofpeopl
eWeekl
yusesE-
banki
ng.

15% ofpeopl
eMont
hlyE-
banki
ng.

18% ofpeopl
eNev
erusesE-
banki
ng.

83
 7)WHI
CHBANKYOUPERFEROFE-
BANKI
NG?

Banks No.ofRespondent
s Per
cent
age
SBI 26 59.
09090909%
I
CICI 6 13.
63636364%
HDFC 8 18.
18181818%
OTHER 4 9.
090909091%
TOTAL 44 100%

I
nter
pret
ati
ons

Most
lySBIBankuser
susesE-
Banki
ngwhi
chi
shi
ghert
hati
sabout59%

I
CICIBankuser
susesE-
Banki
ngwhi
chi
sabout14%

HDFCBankuser
susesE-
Banki
ngwhi
chi
sabout18%

OTHERBankuser
susesE-
Banki
ngwhi
chi
sabout9%

84
 8)WHYTHI
SBANK?

par
ti
cul
ars No.ofRespondent
s Per
cent
age
Ser
vicei
sgood 29 65.
90%
Pr
ovi
dessecur
it
y 11 25%
Cheaperser
vicef
ees 4 9.
09%
Tot
al 44 100%

I
nter
pret
ati
ons

Accordi
ngtotheabovei
nformation65.91%ofpeoplesaythatE-Banki
ng
servi
cei
sgood25%ofpeopl esaythatE-Banki
ngitPr
ovideSecuri
tyand
9.09%ofpeoplesayt
hatE-Banki
ngCheaperSer vi
ceFees.

85
 9)WHICHOFTHEFOLLOWI
NGE-
BANKI
NGSERVI
CESYOUAREAWARE
OF?

Services No.ofRespondent
s Percent
age
I
nternetBanking 22 50%
Mobi l
eBanking 13 29.545455%
PhoneBanki ng 6 13.636364%
DebitCards 3 6.8181818%
Total 44 100%

I
nter
pret
ati
ons

AccordingtotheRecentResear
chitisfoundthatI
nter
netBanki
ngand
Mobi l
eBankingaremostlyusedthati
sabout50%and29%r espect
ivel
y.
DebitcardandPhoneBankingareusedv eryl
essthati
s7%and14%
respecti
vel
y.

86
 10)
DOYOUFEELE-
BANKI
NGSYSTEM OFTHEBANKI
SCUSTOMER
FRI
ENDLY?

Cust
omerFr i
endl
y No.ofRespondent
s Percent
age
Yes 37 84.090909%
No 7 15.909091%
Total 44 100%

I
nter
pret
ati
ons

84%ofthePeopl
esayt
hatE-
Banki
ngSy
stem i
sCust
omerFr
iendl
yand16%
sayt
hatiti
snot.

87
 11)
DOYOUTHI
NKI
TSAVESTI
ME?

Sav
est
ime No.ofRespondent
s Per
cent
age
Yes 43 97.
727273%
No 1 2.
2727273%
Tot
al 44 100%

I
nter
pret
ati
ons

98%ofuser
ssayt
hati
tsav
est
het
imeand2%ofuser
ssayt
hati
tisnot
.

88
 12)
HOW BANKSPROVI
DEE-
BANKI
NGDETAI
LSTOYOU

Det
ail
s No.ofRespondent
s Per
cent
age
Vi
aSMS 29 65.
90909091%
E-
Mai
l 12 27.
27272727%
Ot
her
s 3 6.
818181818%
Tot
al 44 100%

I
nter
pret
ati
ons

Thedet
aili
nfor
mat i
onaf
terthet
ransacti
onisprov
idedtotheuservi
aSMS,
E-
Mail
,andOthers.Accor
dingtot
her esear
chmostlythet
ransact
ion
i
nfor
mationisprov
idedt
hroughSMSandE- Mai
l
.

89
13)DOYOUTRUSTTHESECURI
TYOFONLI
NEBANKI
NSERVI
CE?

Tr
ustonSecur
it
y No.ofRespondent
s Per
cent
age
Yes 38 86.
36363636%
No 6 13.
63636364%
Tot
al 44 100%

I
nter
pret
ati
ons

Tr
ustt
heSecur
it
yofonl
i
neBanki
ngSer
vice

86%ofpeoplet
urstt
heSecur
tyofonl
i
nebanki
ngservi
ceand14%ofPopl
e
doesnotTr
ustt
heSecur
it
yofonli
neBanki
ngServ
ice.

90
14)DOYOUTHI
NKHUMANCONTACTI
SIMPORTANTWI
THBANKS
RELATI
ON?

HumanContact No.ofRespondent
s Percent
age
Yes 33 75%
No 11 25%
Total 44 100%

I
nter
pret
ati
ons

75%say
sthatI
tisI
mpor
twi
thbankr
elat
ionand25%doesnot
.

91
15)WHATARETHEMAI
NDI
SADVANTAGEOFVI
SINGI
NBANKBRANCH?

No.of
Di
sadv
ant
ageofVi
singi
nbank Respondent
s Percent
age
Wai
ti
ng 25 56.81818182%
Di
stance 5 33.33333333%
Openi
ngTi
mes 7 3.
333333333%
Qual
i
tyofSer
vice 7 13.33333333%
Tot
al 44 100%

I
nter
pret
ati
on

Mostofpeoplef acecommonpr oblemswi t

hthebankswhicharewai t
ingin
l
ine,di
stance,OpeningTimesandCl osingTime,Qual
it
yofService.The
resear
chshowst hat57%ofpeoplear ehav i
ngprobl
em ofstandinginli
ne.
11%ofPeopl earehav i
ngdist
ancepr oblemsthati
sthebankisf orawayfrom
thei
rcomesot heyfacethi
sprobl
ems.

92
16)HAVEYOUEVERVI
SITEDYOUERBANKBRANCHSI
NCEYOUSTARTED
ONLI
NEBANKING?

Onl
i
neBankingusei
nBank No.ofRespondent
s Percent
age
Yes 26 59.090909%
No 18 40.909091%
Total 44 100%

I
nter
pret
ati
ons

Everv
isi
tinyourbankbranchpeopl
euseofonl
i
nebankingi
nbranch
Accor
dingtothedatacoll
ect
ion59%sayst
hati
tisusi
ngthatandreami
ng
41%peopledoesnotuse.

93
17)WHATI
SYOURFUTUREEXPECTATI
ONSE-
BANKI
NG?

No.of
Fut
ureExpect
ati
ons Respondent
s Per
centage
Reasonabl
ecost 13 29.54%
Expect
ednei
thert
echni
queint
erv
ent
ionnor 6 13.
63%
qual
it
yservi
ces
Secur
it
y 25 56.
81%
Tot
al 44 100%

I
nter
pret
ati
ons

Fut
ureExpect
ati
onsofE-
banki
ngontheBankstheReasonabl
ecosti
s25%
andExpect
edneit
hert
echni
queint
erv
ent
ionnorqual
it
y17%andSecurit
y58%.

94
 CHAPTERNO:6
CONCLUSI
ON AND
SUGGESTI
ON

1CONCL
5. USI
ON
Thi
s st
udyat
tempt
ed t
oident
if
ykeyqual
i
tyat
tr
ibut
es ofi
nter
net
banki
ngser
vicesbyanal
yzi
ngi
nter
netbanki
ngcust
omer
s&t
hei
rcomment
s
onbanki
ngexper
ience.Thef
indi
ngsoft
hisst
udyshowt
hatdespi
teofmany
adv
ant
agesofonl
i
nebanki
ng.Peopl
est
il
lconsi
deri
tasanal
ter
nat
ivef
or
anal
yzi
ngt
hei
rbankr
ecor
ds.Al
thoughev
erybankt
odaypr
ovi
dest
hef
aci
l
ity
ofonl
i
nebanki
ngbutmostofpeopl
eusei
tonl
yonceamont
h.Thi
sreasoni
s
t
hati
ncaseofi
nter
netbanki
ngi
nter
per
sonali
nter
act
ionwi
thcust
omer
sis
sel
dom possi
ble.I
dent
if
icat
ion&measur
ementofcust
omer
‘sexpect
ati
onsof
t
hei
nter
netbanki
ngser
vicespr
ovi
deaf
rameofr
efer
ence& t
hei
rrel
ated
qual
i
tydi
mensi
on.
Themai
nfact
orswhi
chper
suadepeopl
etouseonl
i
nebanki
ngar
e
comf
ort&conv
eni
ence&t
hef
aci
l
itywhi
chat
tract
sthem mosti
squal
i
ty&
quant
it
yofi
nfor
mat
ion.Ther
efor
ethei
mpl
ement
ati
onofqual
i
tyi
nit
iat
ives
shoul
dbegi
nwi
thdef
ini
ngcust
omer
‘sneed&pr
efer
encest
hei
rrel
atedqual
i
ty
di
mensi
onsTher
eisst
il
lal
otneededf
ort
hebanki
ngsy
stem t
omaker
efor
ms
andt
rai
nthei
rcust
omer
sforusi
ngi
nter
netf
ort
hei
rbanki
ngaccount
.Goi
ng
t
hrought
hesur
veyt
hemai
npr
obl
em l
i
est
hatst
il
lcust
omerhav
eaf
earof
hacki
ngofaccount
sandt
husdonotgoonf
ori
nter
netbanki
ng.Banksar
e
t
ryi
ngt
hei
rlev
elbestbypr
ovi
dingt
hebestsecur
it
yopt
ionst
othecust
omer
s
butt
hent
other
eisl
otoff
act
orswhi
chbet
ray
sacust
omerf
rom openi
ngan
i
nter
netbankaccount
.
Banksar
epr
ovi
dingf
reei
nter
netbanki
ngser
vicesal
sosot
hatt
he
cust
omer
scanbeat
tract
ed.Byaski
ngt
hebankempl
oyswecamet
oknow
t
hatmaxi
mum number
sofi
nter
netbankaccounthol
der
sar
eyout
h and
busi
ness man.E-
Banki
ng i
s an i
nnov
ati
vet
oolt
hati
sfastbecomi
ng a

95
necessi
ty.I
tisasuccessf
ulst
rat
egi
cweaponf
orbankst
oremai
npr
ofi
tabl
ein
av
olat
il
eandcompet
it
ivemar
ketpl
aceoft
oday
.Ifpr
opert
rai
ningshoul
dbe
gi
vent
ocust
omerbyt
hebankempl
oyst
oopenanaccountwi
l
lbebenef
ici
al
secondl
ythewebsi
teshoul
dbemadef
ri
endl
i
erf
rom wher
ethef
ir
stt
ime
cust
omer
s can di
rect
ly make and access t
hei
raccount
s.I
nfut
ure,t
he
av
ail
abi
l
ityoft
echnol
ogyt
oensur
esaf
etyandpr
ivacyofe-
tr
ansact
ionsand
t
heRBIgui
del
i
nesonv
ari
ousaspect
sofi
nter
netbanki
ngwi
l
ldef
ini
tel
yhel
pin
r
api
dgr
owt
hofi
nter
netbanki
ngi
nIndi
a.

96
5.
2SUGGESTI
ON
Wecanseet
het
imei
schangi
ngandwet
hepassageoft
imepeopl
ear
e
accept
ingt
echnol
ogyt
her
eisst
il
lal
otofper
cept
ualbl
ocki
ngwhi
chhamper
s
t
hegr
owt
hit
‘st
henor
malt
endencyofahumannott
ohav
echangeswor
kon
t
heol
dtr
ack,
that
‘sal
sooneoft
her
easonf
ort
hesl
owaccept
anceofi
nter
net
banki
ngaccount
s.
Banksshoul
dobeyt
heRBInor
msandpr
ovi
def
aci
l
iti
esaspert
he
nor
ms,whi
char
enotbei
ngf
oll
owedbyt
hebanks.Whi
l
ethecust
omer
mustbegi
vent
hepr
omptser
vicesandt
hebankof
fi
cershoul
dnot
hav
eanyf
earonmi
ndt
opr
ovi
det
hef
aci
l
iti
esasperRBInor
mst
othe
uni
tsgoi
ngsi
ck.
I
nter
netbanki
ngf
aci
l
itymustbemadeav
ail
abl
einal
lbr
anchesof
t
heset
woBanks.
Eachsect
ionoft
heseBanksshoul
dbecomput
eri
zedev
eni
nrur
al
ar
easal
so.
Per
sonal
i
zedbanki
ngshoul
dbegi
venat
hrustasmor
eandmor
e
banksar
eachi
evi
ngi
nusual
ser
vices.
Cov
eri
ngupt
het
ownsi
nrur
alar
easwi
thATMssot
hatt
hepeopl
ein
t
hosear
eascanal
soav
ail
bet
terser
vices.
Pr
omptdeal
i
ngwi
thper
manentcust
omer
sandspeedyt
ransact
ions
wi
thouthar
assi
ngt
hecust
omer
s.
Fai
rdeal
i
ngwi
tht
hecust
omer
s.Mor
econt
ri
but
ionsf
rom t
he
empl
oyeesoft
hebank.Thest
affshoul
dbeco-
oper
ati
ve,
fri
endl
yand
mustbecapabl
eofunder
standi
ngt
hepr
obl
emsoft
hecust
omer
s.
Gi
vepr
opert
rai
ningt
ocust
omer
sforusi
ngi
-banki
ng
Cr
eat
eat
rusti
nmi
ndofcust
omer
stowar
dssecur
it
yoft
hei
raccount
s
Pr
ovi
deapl
atf
ormf
rom wher
ethecust
omer
scanaccessdi
ff
erent
account
sat
singl
eti
mewi
thoutext
rachar
ge.
Maket
hei
rsi
tesmor
euser
sfr
iendl
y.Cust
omer
sshoul
dbemot
ivat
ed
t
ouseI
-banki
ngf
aci
l
iti
esmor
e.

97
 APPENDEX
1)Whati sYourAge?
o 20- 25
o 26- 50
o Abov e50
2)Arey oumal eorf emal e?
o Mal e
o Femal e
3)Whati sy ourmar it
al status?
o Mar ried
o Unmar ri
ed
4)Whati sy ourcur r
entoccupat ion?
o Empl oy ee
o Busi ness
o Agr i
cultur e
o Pr ofessi onal
o St udent
5)Whati sy ouri ncomel evel?
o Upt oRs.1, 00,000
o Rs.100, 000t o3, 00,000
o Abov eRs.300, 000
6)Doy ouhav eaknowl edgeonE- banki
ng?
o Yes
o No
7)Doy ouuseE- banking?
o Yes
o No
8)Howof tendoy ouuseE- banking?
o Dai ly
o Weekl y
o Mont hl
y
o Nev er
9)Whichbanky oupreferf orE- banki
ng?
o SBI
o ICI CI
o HDFC
o AXI S
10)Whyt hisbank?
o Ser vicei sgood
o Pr ov i
dessecur it
y
o Cheaperser vi
cef ees
11)Whi choft hef ol
lowi ngE- bankingser
vicey
ouar
eawar
e0f
?
o Inter netBanki ng

98
 o MobileBanki ng
o PhoneBanki ng
o DebitCar ds
12)Doyouf eelE-bankingsystem ofthebanki scustomerfr
iendl
y?
o Yes
o No
13)Doyout hinkitsavestime?
o Yes
o No
14)Howbankspr ovideE-bankingDetail
st oyou?
o ViaSMS
o E-
Mai l
o Boucher s
o Others
15)Doyout rustthesecurit
yofonl i
nebanki ngservi
ce?
o Yes
o No
16)Doyout hinkhumancont acti
simpor tantforbanki
ngrel
ati
on?
o Yes
o No
17)Whataret hemai ndisadvantageofv i
siti
ngbankbranch?
o Waiti
ng
o Dist
ance
o OpeningTi mes
o Quali
tyofSer v i
ce
18)Haveyouev ervi
sitedyourbankbr anchsinceyoustar
tedusingonl
i
ne
banki
ng?
o Yes
o No

99
 BI
BLI
OGRAPHY

Websi
tesRef
fer
ed
ht
tps:
//www.
jkbankonl
i
ne.
com/
cor
p/Aut
hent
icat
ionCont
rol
l
er?
FORMSGROU
P_
ID_
_=Aut
hent
icat
ionFG&_
_START_
TRAN_
FLAG_
_=Y&FG_
BUTTONS_
_=LOA
D&ACTI
ON.
LOAD=Y&Aut
hent
icat
ionFG.
LOGI
N_FLAG=1&BANK_
ID=JKB
ht
tps:
//en.
wiki
pedi
a.or
g/wi
ki
/Onl
i
ne_
banki
ng
ht
tps:
//r
etai
l
.onl
i
nesbi
.com/
ret
ail
/l
ogi
n.ht
m
ht
tps:
//en.
wiki
pedi
a.or
g/wi
ki
/Onl
i
ne_
banki
ng
ht
tps:
//www.
scr
ibd.
com/
doc/
25049932/
Final
-Pr
oject
-on-
E-banki
ng
ht
tps:
//sear
ch.
1and1.
com/
find?
q=e+banki
ng+sof
twar
e+downl
oad&ae=1000
0&at
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ang=en&mkt
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igi
n=30&mt
y=b&kwd=e%20banki
ng%20sof
twar
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%20downl
oad&net
=g&cr
e=188396069729&pl
a=&dev
ice=c&dev
icem=&mob=
&sou=s&adp=1t
1&kwi
d=kwd-
152577625025&agi
d=20662936025&ci
d=287830025&ei
d=&l
oci
=&l
ocp=9040
240&v
t=1&gcl
i
d=Cj
wKCAi
A1uHSBRBUEi
wAkBCt
zbD5eVdMr
czNHz7DhUUdl
A
mxRYpf
68HCggC4Eb-
CShxUnDDi
9_f
SNBoCKO4QAv
D_BwE
ht
tps:
//kupdf
.com/
downl
oad/
proj
ect
-r
epor
t-
on-
e-
banki
ng_
58f
f5467dc0d60407d959e8f
_pdf

BooksRef
fer
d
E-
Banki
nggl
obal
prespect
ive(
Aut
hor
-Vi
vekGupt
a)

100