mohsin final project on e banking

8/3/2019 Mohsin Final Project on E Banking

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A

PROJECT REPORTOn

Services provided by the bankthrough

E-BANKING IN INDIA

C.T INSTITUTE OF MANAGEMENT AND I.T

{Affiliated to Punjab Technical University, Jalandhar}

Maqsudan Campus

Submitted to submitted by

Ms.Rajwinder kuar Mohsin Showkat

Asst.prof in CTIMIT BBA 4th sem

Jalandhar 94372450676

Acknowledgement1


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I would like express my gratitude to MS.Rajwinder Kaur from the bottom

of my heart, without his help it would have been a dream only to carry out

the project work.

I feel deeply in debted towards people who have guided me in

this project. It would have not have been possible to make such an

extensive report without the help, guidance and inputs from them.

Most of my information source has been from professional books of

banking sector

Project Guide-

Prof: RAJWINDER KAUR

I would firstly like to express my gratitude towards my guide

PROF: RAJWINDER KAUR for having shown so much of flexibility &

guiding in such a way that I was really learning the subject all the

time. She helped me in deciding the project topic. She showed a lot

of openness in her approach and I would like to thank her for her

support in a way that has lead to proper & effective learning.

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Declaration

I am Mohsin Showkat this project report is my original work and

have not been submitted in any form as a part of any otherproject.

Information derived from the published and unpublished work of

other has been acknowledgement in the list references in given in

the bibliography.

Mohsin Showkat

BBA 4

th

sem94372450676

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Table Contents

Chapter 1: Project Title

Chapter 2: Objective of study

Chapter 3: Introduction

Chapter 4: Observation by study

Chapter 5: Literature Review

Chapter6: Methodology

Chapter 7: Collection of data

Chapter8: Analyze data

Chapter 9: Limitations

Chapter 10: Findings

Chapter11: Suggestions

Chapter12: Conclusion

Chapter13: Bibliography

Chapter14: Questionnaire

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Executive summary

The project Report on:

Services provided by the bank through E-BANKING IN INDIA

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.

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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.

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 different banks vary widely both in their content and

sophistication.

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Meaning of E-Banking

E-bank is the electronic bank that provides the financial service

for the individual client by means of Interne

OBSERVATION OF STUDY

Definition:

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

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E-BANKING SUPPORT SERVICES

WEBLINKING

A large number of financial institutions maintains sites on theWorld 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.

WIRELESSE-BANKINGWireless banking is a delivery channel that can extend the reach

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 areavailable and informs him or her 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

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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 offeredby an insured financial institution, but are frequently offered by

other businesses as well.

Banking Services through Internet:

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 mayreceive and reply to customers queries through 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.

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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

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 to16.7 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, phone banking at 35 paise, debit cards at 20paise and Internet banking at 10 paise per transaction.

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

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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

Avail of 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 bank.

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

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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 specifiedamount stored electronically on it. As he goes on making

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 customer and

enables him to withdraw cash up to the transaction limit for the

day. He can also deposit cash or cheque.

Literature ReviewA new review by Tower group of 10 top US e- banking web sites

evaluated several aspects of core online banking components.

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Group found that there is difference in terms of actual 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 data Td1400) 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 intendedrecipient had to be sent to the NBS who set the details up on the

Home link system.

An American study conducted last year by Booz-Allen projects

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

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functions for internet banking and have inbuilt feature to aid with

one to one marketing on the web.

ICICI BANK

ICICI Bank OnlineBanking Services provide the largest private

bank in India right here at your desktops. Banking becomes apleasure as the transactions and services become 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 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

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https://infinity.icicibank.co.in/web/emailus/jsp/emailUs.jsphttps://infinity.icicibank.co.in/web/emailus/jsp/emailUs.jsp


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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 or password

anywhere.

Do not leave your login name and password such that

someone sitting at your computer could see them.

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.

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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

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 accounts16


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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

Finding

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

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RESEARCH METHODOLOGY

Research means a search for knowledge or gain some

new knowledge and methodology can properly refer to the

theoretical analysis of the methods appropriate to a field of

study or to the body of methods and principles particular to

a branch of knowledge. A Research methodology has a

specified framework for collecting the data in an effective

manner. Research methodology means a "defining a

problem, defining the research objectives, developing the

research plan, collecting the information, analyzing the

information and presentation of findings." Such framework

is called Research Design". The research process that

was followed by me consisting following steps;

A) Defining the problem

B) Developing the research plan

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C) Collection of Data

D) Analysis and Interpretation of Data

E) Presentation of findings

A) Defining the problem and research objectives

My research problem is to study the product and services

provided by sales outbound team of standard chartered bank in

Jalandhar

B) Developing the Research Plan

The development of research plan has following steps:

1. Data source

2. Research approach

3. Type of Research Design

4. Research instrument

5. Sampling plan

i) Sample unit

ii) Sample size

iii) Contact methods

6. Questionnaire Design

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1.Data Source: The researcher can get two types of data:

a) Primary Data

b) Secondary Data

c) Data Recording

a) Primary Data

Primary data is a data which did not exist earlier and is being

collected by the researcher first time for its specific objectives. In

other words, direct personal interview is conducted with the help

of questionnaire.

b) Secondary data

Any data which have been collected earlier for some purpose are

the secondary data. Indirect collection of data from sources

containing past or recent past information like bank's brochures,

annual publication, books etc.

Secondary sources used are:

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Text books

Internet sites

Newspaper articles

Broachers

2. Research Approach

Survey is best suited for descriptive and analytical research.

Survey are undertaken to learn about people's knowledge,

beliefs, preferences, satisfaction and so on and to measure these

magnitudes in the general public.

Therefore, I have done this survey for Descriptive and analytical

research process.

Descriptive research includes surveys and fact finding enquiries

of different kinds. The main purpose is description of the state of

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affairs is noted down and analytical research used to analyze the

material and facts.

3. Research instrument

Questionnaire:

Questionnaire (also known as self-administered survey) is a type

of statistical survey handed out in paper form usually to a specific

demographic to gather information in order to provide better

service or goods. A document that contains a set of questions that

has been specially formulated as a means of collecting

information and surveying opinions, etc on a specified subject or

theme, etc .A questionnaire was constructed for my survey.

4. Sampling plan:

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Sample is a group of few items which represents the population or

universe from where it has been taken. The sampling plan calls

for three decisions;

a) Sample unit

b) Sample size

c) Contact methods

a)Sample unit who is to be surveyed?

The target population must be defined that has to be sampled. It

is necessary so as to develop a sample frame so that everyone in

the target population has an equal chance of being sampled. I

have completed my survey in Standard Chartered Bank,

Jalandhar.

b)Sample size - how many people have to be surveyed?

Generally, large sample size gives more reliable results than

small samples. The sample consisted of 20 customers.

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c) Contact methods

Once the sampling plan has been determined the Questionnaire

is how the subject should be contracted i.e. by telephone

interview, personal interview, observation, mail etc. here, in my

survey, I have contacted the respondents through personal

interviews.

5. Questionnaire Design:

a) There are 12 questions in my questionnaire and I asked all

these questions from 20 account holders of Standard Chartered

Bank, Jalandhar.

C) Collecting the information

After this, I have collected the information from the respondents

with the help of Questionnaire.

D) Data Analysis and Interpretation

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The next step is to extract the pertinent findings from the collected

data have tabulated the collected data and developed frequency

distributions.

Thus, the whole data was grouped aspect wise and was

presented in tabular form. Thus, frequencies and percentages

were prepared to render impact of study.

E) Presentations of findings

This was the last step of survey.

LIMITATIONS OF THE STUDY:

Due to constraints of time and resources, the study is likely to

suffer from certain limitations. Some of these are mentioned here

under so that the findings of the study may be understood in a

proper perspective.

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The limitations of the study are:

Some of the respondents of the survey were unwilling to share

information.

The research was carried out on in-house customers. i.e. within

the branch in the small city of Punjab viz. Jalandhar so the

response may vary by including the respondents from other

branches in other areas as well. The sample size and other

parameters were selected accordingly so as to finish the work

within the given time frame.

The information given by the respondents might be biased

because some of them might not be interested to give correct

information.

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DATA COLLECTION

Primary Data:

In this research with a sample size of nearly 20 customers data

will be available in form of questionnaire collected in terms 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.

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Secondary data:

Collection of information from different kind of books the data of

the company what they maintained.

MethodologyOnce 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

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Data analysis

1) Users of E-banking

Yes 65%

No 35%

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2) No. of user of the banks

Icici 20%

Sbi 30%Sbh 20%

Axis 10%

Union 8%

Hdfc 12%

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3) PREFERENCE FOR ONLINE BILL PAYMENT SERVICES

Yes 60%

No 40%

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4) PREFERENCE FOR ONLINE SHOPPING

Yes 70%

No 30%

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

8) SPEND PER BILL FOR ON LINE BILL PAYMENT

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ABOVE Rs.10 21

BETWEEN RS.5-10 11

BELOW RS.5 32

NOTHING 36

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Questionnaire:-

1. Name of the customer:-

2. Adress:-

3. Contact no:-

4. Do you like E-banking

a. Yes

b. No

5. Tick which bank you preferred

a. Icici

b. Sbi

c. Sbh

d. Axis

e. Union bank

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f. Hdfc

g. UTI Bank Ltd

h. Bank of Punjab Ltd

6. Why this bank

a. Service is good

b. They provide security

c. Cheaper service fees.

7. Which type of service mostly you use?

a. Balance and transaction history search

b. Transfer fund online

c. Card to card fund transfer

d. Open FD

e. Lock / activate debit cards /ATMf. Request a cheque book

g. Stop payment

h. Railway pass / ticket

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i. Shopping

j. Share payment

8. Services of the bank are.

a. poor

b. good

c. Very good

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

a. Yes

b. No

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.

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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.

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Suggestions

1. To prevent online banking from remaining customers to

prompt this service through advertising co.

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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

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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Bibliography

Book:-

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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Questionnaire:-

10. Name of the customer:-

11. Adress:-

12. Contact no:-

13. Do you like E-banking

c. Yes

d. No

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14. Tick which bank you preferred

i. Icici

j. Sbi

k. Sbh

l. Axis

m.Union bank

n. Hdfc

o. UTI Bank Ltd

p. Bank of Punjab Ltd

15. Why this bank

d. Service is good

e. They provide security

f. Cheaper service fees.

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16. Which type of service mostly you use?

k. Balance and transaction history search

l. Transfer fund onlinem.Card to card fund transfer

n. Open FD

o. Lock / activate debit cards /ATM

p. Request a cheque book

q. Stop payment

r. Railway pass / ticket

s. Shopping

t. Share payment

17. Services of the bank are.

d. poor

e. good

f. Very good

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

c. Yes

No

mohsin final project on e banking

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