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Management Thesis onServices provided by the

bank through

E-BANKING IN INDIA

By

Abhinav Tawani

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SYNOPSI

S

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A Thesis

ON

Services provided by the

bank through

E-BANKING IN INDIA

Submitted by

ABHINAV A TAWANI

Enroll. No. 08OSB201

OSB Aurangabad.

A report submitted in partial fulfillment of

The requirements of

THE MBA PROGRAM

(The Class of 2010)

OSB Campus

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Introduction

E-banking:-

Internet banking (or E-banking) means any

user with a personal computer and a browser can get

connected to his bank -s website to perform any of the

virtual banking functions. In internet banking system the

bank has a centralized database that is web-enabled. All the

services that the bank has permitted on the internet are

displayed in menu. Any service can be selected and further

interaction is dictated by the nature of service. Once the

branch offices of bank are interconnected through terrestrial

or satellite links, there would be no physical identity for anybranch. It would a borderless entity permitting anytime,

anywhere and anyhow banking.

The delivery channels include direct dialup

connections, private networks, public networks, etc. with the

popularity of computers, easy access to Internet and World

Wide Web (WWW), Internet is increasingly used by banks asa channel for receiving instructions and delivering their

products and services to their customers. This form of

banking is generally referred to as Internet Banking,

although the range of products and services offered by

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different banks vary widely both in their content and

sophistication.

Meaning of E-Banking

E-bank is the electronic bank that provides the financial

service for the individual client by means of Internet.

Need of study

To know the customers perception toward the E-

banking service.

I am interested in E-BANKING that I am taken this topic.

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Benefits of study

1) Organizing Educational Campaign To Create Goodwill

Of Company.

2) Services It Effectively valuable to Create Place in the

Minds of Customer.

3) Availability should be increased by using various

services Strategy.

4) Company should make service equal to or better

than Competitive Brands By All Means.

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Executive summary

The project Report on:

Services provided by the bank through E-BANKING ININDIA

Project carried at:

SBI, SBH, ICICI, ETC.

Project objectives:

Find the customer satisfaction relating to E-banking

service.

To study the awareness of internet banking among the

customers of ICICI and HDFC banks.

Research Methodology:

Primary Data:

In this research with a sample size of nearly 20 customers

data will be available in form of questionnaire collected in

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terms of different questions influencing the use of internet

banking.

Internet banking is considered as dependent on awarenessamong customers which will be studied with help of different

independent variable. Only the customers of HDFC & ICICI

bank are taken as samples for study.

Secondary data:

Collection of information from different kind of books the

data of the company what they maintained.

Conclusion

The basic objective of my research was to analyze the

awareness among customers for internet banking in INDIA. It

gives direction to research tools, research types and

techniques. Although the findings reveal that people know

about the services but still many people are unaware and

many of them are non users so the bank should by

promotion try to retain the customers. Banks should look

forward to have some tie ups with other financial

institutions to increase the service base.

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Interim Report

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A Thesis

ON

Services provided by the bankthrough

E-BANKING IN INDIA

Submitted by

ABHINAV A TAWANI

Enroll. No. 08OSB201

OSB Aurangabad.

A report submitted in partial fulfillment of

Table Contents

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Chapter 1:

Introduction16

Chapter 2: Observation ofstudy..17

Chapter 3: Literature Review

.22

Chapter 4: Objective of

study.27

Chapter 4.1: Limitation of

study27

Chapter 5:

Methodology28

Chapter 5: Questionnaire..

.29

Chapter 6: Data

analysis32

Chapter 7:

findings38

Chapter 8:

Conclusions39

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Acknowledgement

I would like to express my gratitude to all those who gave

me the possibility to complete this project.

I would like express my guide Mr. Mangesh Kela and I am

also thankful to my faculty guide Mrs. J.R. Phansalkar to

continuous guidance.

In the end, I express our gratitude to my friend who inspired

me in this work without their inspirations the work were

almost impossible.

Signature

Abhinav A Tawani

08OSB201

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Declaration

I am Abhinav A Tawani this project report is my original

work and have not been submitted in any form as a part of

any other project.

Information derived from the published and unpublished

work of other has been acknowledgement in the list

references in given in the bibliography.

Abhinav A Tawani

08OSB201

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CERTIFICATE

This is to certify that the Management Thesis titled

Services provide by the banks through E-banking in

INDIAsubmitted

By Abhinav A. Tawani

Enroll No: 08OSB201

During semester 3rd of the MBA Program (The Class of 2010)

embodies original work done by him / her.

Signature of the Faculty Supervisor ----------------------------

Name (in Capitals) Mrs. J.R. Phansalkar

Designation Faculty Guide

Campus ... OSB Aurangabad

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BibliographyBook:-

E-banking in India

Banking service operation

(ICFAI)

Indian Banking

Money & Banking

Links Visited

www.google .com

www.icici.com

www.hdfc.com

www.wikipedia.com

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http://www.google.com/http://www.google.com/http://www.icici.com/http://www.hdfc.com/http://www.wikipedia.com/http://www.google.com/http://www.icici.com/http://www.hdfc.com/http://www.wikipedia.com/


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Introduction

E-banking:-

Internet banking (or E-banking) means any

user with a personal computer and a browser can get

connected to his bank -s website to perform any of the

virtual banking functions. In internet banking system the

bank has a centralized database that is web-enabled. All the

services that the bank has permitted on the internet are

displayed in menu. Any service can be selected and further

interaction is dictated by the nature of service. Once the

branch offices of bank are interconnected through terrestrial

or satellite links, there would be no physical identity for any

branch. It would a borderless entity permitting anytime,anywhere and anyhow banking.

The delivery channels include direct dialup

connections, private networks, public networks, etc. with the

popularity of computers, easy access to Internet and World

Wide Web (WWW), Internet is increasingly used by banks as

a channel for receiving instructions and delivering their

products and services to their customers. This form of

banking is generally referred to as Internet Banking,

although the range of products and services offered by

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different banks vary widely both in their content and

sophistication.

Meaning of E-Banking

E-bank is the electronic bank that provides the financial

service for the individual client by means of Internet.

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Observation of study

DEFINITION OF E-BANKING

For this booklet, e-banking is defined as the automated

delivery of new and traditional banking products and

services directly to customers through electronic, interactive

communication channels. E-banking includes the systems

that enable financial institution customers, individuals or

businesses, to access accounts, transact business, or obtain

information on financial products and services through a

public or private network, including the Internet. Customers

access e-banking services using an intelligent electronic

device, such as a personal computer (PC), personal digital

assistant (PDA), automated teller machine (ATM), kiosk, or

Touch Tone telephone. While the risks and controls are

similar for the various e-banking access channels, this

booklet focuses specifically on Internet-based services due

to the Internets widely accessible public network.Accordingly, this booklet begins with a discussion of the two

primary types of Internet websites: informational and

transactional.

E-BANKING SUPPORT SERVICES

WEBLINKING

A large number of financial institutions maintains sites on

the World Wide Web. Some websites are strictly

informational, while others also offer customers the ability to

perform financial transactions, such as paying bills or

transferring funds between accounts.

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WIRELESSE-BANKING

Wireless banking is a delivery channel that can extend thereach and enhance the convenience of Internet banking

products and services. Wireless banking occurs when

customers access a financial institution's network(s) using

cellular phones, pagers, and personal digital assistants (or

similar devices) through telecommunication companies

wireless networks. Wireless banking services in the United

States typically supplement a financial institution's e-

banking products and services.

Person-to-Person Payments

Electronic person-to-person payments, also known as e-mail

money, permit consumers to send money to any person or

business with an e-mail address. Under this scenario, a

consumer electronically instructs the person-to-person

payment service to transfer funds to another individual. The

payment service then sends an e-mail notifying the

individual that the funds are available and informs him orher of the methods available to access the funds including

requesting a check, transferring the funds to an account at

an insured financial institution, or retransmitting the funds to

someone else. Person-to-person payments are typically

funded by credit card charges transfer from the consumers

account at a financial institution. Since neither the payee nor

the payer in the transaction has to have an account with the

payment service, such services may be offered by aninsured financial institution, but are frequently offered by

other businesses as well.

Banking Services through Internet:

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1. The Basic Level Service is the banks web sites which

disseminate information on different products and

services offered to customers and members of public in

general. It may receive and reply to customers queriesthrough e-mail;

2. In the next level are Simple Transactional Web sites

which allows customers to submit their instructions,

applications for different services, queries in their

account balances, etc. but do not permit any fund-based

transactions on their accounts;

3. The third level of Internet banking service are offered

by Fully Transactional Web sites which allow the

customers to operate on their accounts for transfer of

funds, payment of different bills, subscribing to other

products of the bank and to transact purchase and sale

of securities, etc. The above forms of Internet banking

service the customer or by new banks, who deliver

banking service primarily through Internet or other

electronic delivery channels as the value added services.

Some of these banks are known as Virtual banks or

Internet only banks and may not have physical

presence in a country despite offering different banking

services.

The Indian Scenario: -

Internet banking, both as a medium of delivery of

banking services and as a strategic tool for business

development.

At present, the total internet users in the country are

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estimated at 9 lakh. However, this is expected to grow

exponentially to 90 lakh by 2003. Only about 1 percent

of Internet users did banking online in 1998. This is

increased to 16.7 percent in March 2000.- (India Research, May 29, 2000, Kotak Securities)

Cost of banking service through the Internet from a

fraction of costs through conventional methods. Rough

estimates assume teller cost at Re.1 per transaction,

ATM transaction cost at 45 paise.

Plastic Cards as Media for Payment: -

There are four types of plastic cards being used as

media for making payments. These are:1. Credit Card

2. Debit Card

3. Smart Card

4. ATM Card

1. Credit Cards: -

The credit card enables the cardholders to: Purchase any

item like clothes, jewellery, railway/air tickets, etc.

Pay bills for dining in a restaurant or boarding and lodging

in hotel

Availof any service like car rental, etc.

2. Debit Cards: -

A debit card is issued on payment of a specified amount by

the issuing company like a telephone company to a

customer on cash payment or on debiting his account by a

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bank.

Thus it is like an electronic purse, which can be read and

debited by the required amount.

It may be noted that while through a credit card, the

customer first makes a purchase or avails service and pays

later on, but for getting the debit card, a customer has to

first pay the due amount and then make a purchase or avail

the service. For this reason, debit card are not as popular as

credit cards.

3. Smart Cards: -

Smart Cards have a built-in microcomputer chip, which can

be used for storing and processing information. For example,

a person can have a smart card from a bank with the

specified amount stored electronically on it. As he goes onmaking transactions with the help of the card, the balance

keeps on reducing electronically. When the specified amount

is utilized by the customer, he can approach the bank to get

his card validated for a further specified amount. Such cards

are used for paying small amounts like telephone calls,

petrol bills, etc.

4. ATM Cards: -

The card contains a PIN (Personal Identification Number)

which is selected by the customer or conveyed to the

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customer and enables him to withdraw cash up to the

transaction limit for the day. He can also deposit cash or

cheque.

Literature Review

A new review by Tower group of 10 top US e- banking web

sites evaluated several aspects of core online banking

components. Group found that there is difference in terms ofactual functionality and usability. Among different banks and

their services.

The UK's first home online banking services were set up by

the Nottingham Building Society (NBS) in 1983 ("History of

the Nottingham". Retrieved on 2007-12-14.). The system

used was based on the UK's Prestel system and used a

computer, such as the BBC Micro, or keyboard (Tan dataTd1400) connected to the telephone system and television

set. The system (known as 'Home link') allowed on-line

viewing of statements, bank transfers and bill payments. In

order to make bank transfers and bill payments, a written

instruction giving details of the intended recipient had to be

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sent to the NBS who set the details up on the Home link

system.

An American study conducted last year by Booz-Allenprojects that by the year 2000, 16 million US households will

be using Internet banking. While these numbers do not

appear to be significant as compared to the total population,

each Internet user is projected to be 50-250% more

profitable than the average banking customer. It is expected

that these Internet customers will be some of the banking

system's most profitable customers representing close to

30% of all retail banking profits. The study projects that by

1999, 1,500 banks will have Internet Web sites and at least

500 of these banks will be offering full-fledged Internet

banking services.

In 2001 Micro banker send detailed questionnaire to the

leading vendors of internet banking software27 companies

responded with information on thirty programs the

aggregate outcome of the outcome was that almost all the

companies have developed functions for internet bankingand have inbuilt feature to aid with one to one marketing on

the web.

ICICI Bank

ICICI Bank OnlineBanking Services provide the largestprivate bank in India right here at your desktops. Banking

becomes a pleasure as the transactions and servicesbecome instant with ICICI Bank online Internet banking.

The services provided are totally secure and unique.

These cover online account transactions and operations,

credit card and account applications and payments, share

trading and investments through mutual funds, bill

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payments, statement generation and a virtual demo of

each service. See in brief in final report.

Role of customer when using e-banking

You can access ICICIBank.com only by using your User

ID and Password. During the first login attempt, it is

mandatory to change both passwords - login and

transaction which would have been mailed to you by

the bank.

If you forget your password, you will have written to us

using the "Email Us" option. The Bank will then issue a

new password and send it to your mailing address as

per our records. Kindly check with your branch that this

address is updated...

Make sure no one can see the account login name or

password you are entering when you log on to

ICICIBank.com.

Logout of ICICIBank.com before moving on to other

Websites.

Before leaving the PC please "close" the browser.

Do not write your ICICIBank.com login name orpassword anywhere.

Do not leave your login name and password such that

someone sitting at your computer could see them.

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Never reveal your ICICIBank.com login name and

password to anyone (no representative of ICICI Bank

will ever ask you for your ICICIBank.com password).

Notify ICICI Bank immediately if you notice any unusual

account activity.

Keep all documents that include your account

information in a secure location.

When you login you can view the date and time of your

last log in.

Features offered by ICICI bank for internet banking

Balance enquiry and statement

Transfer fund online

Card to card fund transfer Use debit card online

Prepaid mobile recharge

Subscribe for mobile banking

Link bank account to ATM

Lock / activate debit cards /ATM

Request a cheque book

Stop payment

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HDFC

Net Banking is HDFC Bank's Internet Banking service.

Providing up-to-the-second account information, Net

Banking lets you manage your account from the comfort

of your mouse - anytime, anywhere.

Features offered by HDFC bank for internet banking

View account balances and statements

Transfer funds between accounts Request stop payments

Pay bills

Create fixed deposit online

Order cheque books

USE OF E-BANKING IN INDIA FEOM LAST FEW YEARS

Year 2002 2003 2004 2005 2006 2007 2008 2009Incr.

%

9 12 15 20 25 32 40 50

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Finding

In 2002-2009 the user of the E-banking is increase in more in

every year.

Objective of study

Find the customer satisfaction relating to E-banking

service.

To study the awareness of internet banking among the

customers of ICICI and HDFC banks.

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Limitation of Study

Banks are not giving me all information about E-

banking services.

They do not permit to meet any of the employees in

their bank.

Data collection

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Primary Data:

In this research with a sample size of nearly 20 customers

data will be available in form of questionnaire collected interms of different questions influencing the use of internet

banking.

Internet banking is considered as dependent on awareness

among customers which will be studied with help of different

independent variable. Only the customers of HDFC & ICICI

bank are taken as samples for study.

Secondary data:

Collection of information from different kind of books the

data of the company what they maintained.

Methodology

Once the findings are finalized by a research, suggestions

should be made for the betterment of enterprise.

The data collected from questionnaire will be tabulated and

analyzed so that

The result can be presented as simple as possible. There are

a number of ways like

o Pie-chart

o Graphs

Questionnaire:-

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1. Name of the customer:-

2. Do you like E-banking

a. Yes

b. No

3. Tick which bank you preferred

a. Icici

b. Sbi

c. Sbh

d. Axis

e. Union bank

f. Hdfc

g. UTI Bank Ltd

h. Bank of Punjab Ltd

4. Why this bank

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a. Service is good

b. They provide security

c. Cheaper service fees.

5. Which type of service mostly you use?

a. Balance and transaction history searchb. Transfer fund online

c. Card to card fund transfer

d. Open FD

e. Lock / activate debit cards /ATM

f. Request a cheque book

g. Stop payment

h. Railway pass / ticket

i. Shopping

j. Share payment

6. Services of the bank are.

a. poor

b. good

c. Very good

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7. Are you satisfied with the using of E-banking?

a. Yes

b. No

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Final Report

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Data analysis

1) Users of E-banking

Yes 65%

No 35%

2) No. of user of the banks

Icici 20%

Sbi 30%

Sbh 20%

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Axis 10%

Union 8%

Hdfc 12%

3) PREFERENCE FOR ONLINE BILL PAYMENT

SERVICES

Yes 60%

No 40%

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4) PREFERENCE FOR ONLINE SHOPPING

Yes 70%

No 30%

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5) PREFERENCE FOR ONLINE FUND TRANSFAR `

Yes 35%

No 65%

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6) SATISFIED CUSTOMERS

Yes 65%

No 35%

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7) PERFERRED MODE OF PAYMENT (TO BANK)

CHEQUE 50

CASH 25

E-BANKING 25

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8) SPEND PER BILL FOR ON LINE BILL PAYMENT

ABOVE Rs.10 21

BETWEEN RS.5-10 11

BELOW RS.5 32

NOTHING 36

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Findings

1. In the users ratio of internet banking 65% of customers

are using this service.

2. More banks are connecting to the any software co. to

running the E-banking service. In these services the Sbi

banks is top in service of E-banking.

3. The services that are mostly used by maximum

customers are transactions, online trading, bill

payment, shopping etc.

4. The mode of the cash deposit in bank is for use to

online truncation cash, cheque & e-banking.

5. Different banks different charge for online service.

Suggestions

1. To prevent online banking from remaining customers to

prompt this service through advertising co.

2. After repairing this basic deficiency, banks must ensure

that there services is competitive.

3. Banks is not take more charge from there customers.

Conclusion

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The basic objective of my research was to

analyze the awareness among customers for

internet banking in INDIA. It gives direction to

research tools, research types and techniques.

Although the findings reveal that people know

about the services but still many people are

unaware and many of them are non users so

the bank should by promotion try to retain the

customers. Banks should look forward to have

some tie ups with other financial institutions

to increase the service base.

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