Bollard Alan, Hunt Chris & Hodgetts Bernard (2011, August 6).

The role of banks in the

economy - improving the performance of the New Zealand banking system. Retrieved from

www. Rbnz .govt. nz/ research _and publications/ speeches/ 2011/4487002.html

CHAPTER-3

REVIEW OF LITERATURE

3.1 INTRODUCTION
Banking has gone through massive transformations in the past decades. This is a universal fact
that banking sector forms the core of any economy. Banking system captures an important place
in a nation’s economy. A banking institution is indispensable in a modern society. The Banking
sector in India has always been one of the most preferred areas of study. In this decade, this
sector has emerged as a sunrise sector in the Indian economy.

In this chapter, review of literature has been done for various important components of banking
sector like internet banking, mobile banking, electronic payment systems, plastic money,
banking sector reforms, technology in banking, ATM banking, etc. The literature review is one
of the important academic requirements. A lot of work has been done in various areas of
banking sector. The following literature review highlights various aspects related to innovative
interventions like Internet Banking, Mobile banking, ATM services, RTGS & NEFT services,
Plastic Money, role of technology, banking sector reforms and other important factors related to
innovation in banking.

3.2 LITERATURE REVIEW OF BANKING SECTOR REFORMS IN

INDIA
Reddy (2009) studied that there was a convergence of performance among public, private and
foreign banks in recent years due to acceptance and adoption of new technology. There was an
appreciating importance of non-interest income in recent years for all banks. Though, PSBs
comparing was extremely poor with the other two categories in terms of profit, PSBs had the
highest efficiency in deposit mobilization. Further, foreign banks and private banks are efficient
in value added services.

“According to Karim, (2010) Indian banking sector had to welcome the transformation in order
to match with the market that resulted from the acceptance of financial liberalization by the
Indian Government. After the transformation, banks have been very much progressive to come
up with those products that have a better match with customer demands and they have been
extremely successful in meeting up the customer needs. This fact is evident from the continuous
injection of products in the financial sphere of Indian economy and accurateness in giving the
customers what they want.”

Another study depicts that the reforms in banking sector have brought about perceptible
improvement in the overall performance of banks. Indian banking is now operating in a more
competitive setting with induction of new banks, both Indian and foreign who have brought in
new work technology, specialized expertise and a variety of new financing Instruments. The
authorities have move towards simplifying and deregulating the complex administered system
of interest rates and have brought rates into closer alignment with underlying market forces.
There is greater transparency and consistency in banks’ account. The capital status of banks has
also got better by accessing the capital market. Banks are attuning themselves to be market
oriented and also responding sensitively to the changes and monetary circumstances. (Seth,
2009)

“While the transition process in the banking sector has certainly not yet come to an end,
sufficient time has passed for an interim review. The objective of the particular paper therefore
is to assess the progress made in liberalizing the banking sector so far and to test if the reforms
have allowed the banking sector to better perform its functions. (Roland)”

“A study on reforms in banking sector says that before the nationalization of large banks in
1969 and 1980, Government-owned banks dominated the banking sector. Due to the scarcity of
competition, the use of technology was minimal and quality of service was not considered for
performance evaluation. (Kumar, Malathy and Ganesh, 2010)”

3.3 LITERATURE REVIEW OF INTERNET BANKING SERVICES

“Internet banking is a radical and new service under the present banking sector and HDFC Bank
is at top in providing this service. It provides state-of-the-art payment gateway services to
industries and companies in order to ease out transaction processing. This in turn results in
enhancement of the credibility of business and makes banking extremely cost-efficient. This is
suggested by Sudeep (2008) in his doctoral thesis with special reference to private banks.”

“A study taken says that many banks and other big organizations are anxious to use this channel
to deliver their services because of its relatively lower and bearable delivery cost, higher sales
capacity and potential for offering greater convenience for customers. It is seen as a
revolutionary development. (Shah and Clarke, 2009)”

“A study mentions the following point. If considering the legal position prevalent, there is an
indebtedness and obligation on the side of the banks not just only to establish the identity but
also to make enquiries about integrity and reputation of the future potential customer. Thus,
even though request for opening account can be accepted over Internet and accounts should be
opened only after appropriate introduction and physical verification of the complete identity of
the customer. From a legal point of view, security and protection procedure adopted by banks
for authenticating needs of the users to be recognized by law as a substitute for signature.
(Shukla and Shukla, 2011)”
Numerous number of studies support the idea that there exist a link between online banking and
customer satisfaction (Saha and Zhao, 2005; Casalo et-al, 2008). Various studies taken up by
Raman et-al (2008), Michael (2007) produced hard data passing successfully these relationships
about between online banking and customer satisfaction. Both studies emphasized a direct
relationship and connection between consumer satisfaction and internet banking.

“A study reveals that many factors like education, knowledge in computer, eagerness, zeal,
receptiveness of the people, people‘s level of convenience and awareness etc. are responsible
for the successful operation of E-banking in any area. Again a large no of people (especially the
old generation) having no computer knowledge are till now prefer the conventional banking but
along with some medium and moderate changes and quick service delivery system. A thorough
study of the data reveals that the young generation is more known to computer and internet
banking. So they are more interested in using the E-banking system. (Paul, 2008)”

“A study taken by Irfana and Raghurama (2013) tries to analyze the customer behavior towards
e-banking services. It is found that most of the respondents who used e-banking facility were in
the age group of 30-40 years. Also, majority of the respondents used e-banking facility for bill
payment, sales, account transfer, purchases, updating of savings account and online bank
statement status. Respondents followed basic safety measures while e-banking. Online safety
measures are not followed by majority of the respondents as they are not aware of them. Offline
safety measures are followed by the respondents to some extent. Over all safety measures
followed by the respondents while e-banking is very low. Majority of the respondents are not
aware of the frauds in e-banking and the security procurable and available to control internet
warnings, dangers and challenges.”

“Jenkins (2007) took up a study in North Cyprus to analyze adoption of internet banking
services in a small island state; assurance of bank service quality. The findings of this study
show that, despite a very small and humble market to share, banks are consistently moving
towards providing internet banking services to their customers. The number of foreign banks
offering these services increased from two (33 percent) to five (83 percent) between 2004 and
2006. On the other hand, the number of domestic banks offering internet banking services
increased from zero to two (11 percent) and they are expected to increase to four (22 percent) by
the end of 2006. Internet banking services are expected to be offered by all domestic banks,
except four very small banks, by the end of 2008. When addressing the question of what
motivated domestic banks to introduce internet banking services, it was found that the quality
assurance of banks’ services was the most important factor affecting the domestic bank’s
decision. In other words, the long run benefits represented by customer satisfaction and
customer retention were more important for banks than short-term profitability.”

“Singh and Kaur (2012) in their study about SBI and ICICI bank found that both the banks
attempted to make their online portals more secure, informative and user-friendly but still they
differ on one account or another. ICICI bank’s portal has good features such as direct access
from home page, Mandatory ‘One Time Password’ if login from different locations/browsers,
large number of transaction in mini statement, More Download Formats of Account Statement,
grouping of billers, facility of prepaid recharge, Debit Card Grid Authentication, etc. On the
other hand, SBI bank’s portal has few good features like mandatory profile password for
number of transaction, drop down menu, display of biller city –wise, display of payment alerts
on Home page etc. From the comparative position, it is clear that ICICI bank’s online portal has
upper hand as compare to SBI Bank. However, ICICI bank may also lack on few features when
its online portal will be compare with other banks in the industry. So, the present study is just
beginning in this line to compare the online portals. Research in future which may be focused
on comparison more and more online portals can come out with the best features enabled model
online banking portal which will be helpful to the bankers and customers using internet
banking. Internet banking in India is only at its primitive stage dominated by the Indian private
and foreign banks. The use of Internet banking is confined to a few consumer segments.”

“Another work done in the area of internet banking depicts that the risks associated with
Internet banking are many, which the banks have to model using sophisticated systems and
extensive use of technology. The legal framework as its exits requires an updating to streamline
and handle the issues associated with Internet banking. The functional model can be used to
prioritize perceptual variable concerning consumer behavior so that value to the consumer can
be maximized. The banks can focus on strategic consumer groups to maximize its revenues
from Internet banking. (Gupta, 2008)”
“One can access account at any time of the day and are no longer confined to conventional
business hours. Instead of having to adjust your personal schedule to conform to the restrictive
hours of branch offices, you can check your balance and perform most transactions online from
the comfort of your home. For cash withdrawals, you might need to walk a few blocks to find
an ATM, but even this can be done at “odd” hours like 2 AM or 3 AM when the machine is
most likely to be unoccupied. E-Banking is generally faster and more convenient. Traditional
banking can be a relatively slow process, especially if you encounter long lines at the teller
windows or must delay transactions because the bank has already closed. Online access
circumvents these kinds of hassles and allows you to do your transactions relatively quickly
once you are comfortable with the required technology. As long as you have access to a
computer and an Internet connection, physical location is not a problem. If you're on vacation or
traveling somewhere for business reasons, you can still keep an eye on your accounts and
transfer money as needed. This is discussed by Kumar (2014).”

“A study discusses the major disadvantages of plastic money. There are many cases where
various companies do not permit their cards to be used in areas where they have a regional
dispute with. The magnetic strip of a credit card can get worn out due to massive use. If such a
condition happens while travelling, and this is the only way of cash that the consumer has, then
he or she has to wait till the time they receive a new card, which can take a minimum of 48
hours. Credit Card provider financial institutions and companies charge high interest rates (may
be 10% to 25%) on extra money if you fail to pay off up to the fix date of the month. This
interest is their earning, for which they give you extra buying limits then your money. This is
not a good idea that you owe loan on high interest rates and spend it in unnecessary things or
purchasing. This is complete money wastages. (Satam, 2015)”

“A study on factors influencing young user’s online banking channel usage in India shows that,
young user’s actual usage is influenced by their negative feelings towards security and privacy
dimensions of online banking transactions. This may be attributed to the loss experienced by
their past online transactions or lack of awareness of the existing security system. Hence the
banks have to create awareness among the students by educating about their authentication
system, soundness and privacy policies. The Technology Accepted Model (TAM) identified
few factors that influence actual usage of online technology. The aim of this paper was to
extend TAM to add the perception towards risk of transacting online and online efficacy of
individuals to capture their combined influence on actual usage of online banking services
among young users in India. The study identified that all the variables, perceived usefulness,
perceived ease of use, online self-efficacy and risk to influence youngster’s actual usage of
online banking channel. In Indian context, the young users are driven to use online banking
technology because of its ease and usefulness. (Kalaiarasi and Srividya, 2012)”

Rao (2013) in his study mentions that internet banking services the awareness is very low in the
rural area. It is suggested that The SBI should launch campaign to educate and create awareness
to consumers. Instead of merely displaying the information in the branches through posters and
banners, media could use intensively for this purpose in local language. “It is suggested that The
SBI has to initiative necessary measures to increase the awareness level through awareness
programs in the rural areas and the bank has to concentrate more on Promotional measures
through agents, banks services, advertisement and merchant establishments are the sources of
information and awareness providers for bank customers. As part of create awareness SBI
should pay attention to reach out their female customers who are in a majority of cases would
have less experience and willingness to avail e-banking. It is suggested that the SBI is required
to more emphasis on training programs for their employees to aware them in order to promote
Online Banking Services& facilitate all the services to their customers.” SBI can introduce
expert mode of system to reduce troubles of employees while providing guidance about online
banking services as well as to reduce troubles of customers while availing online banking
services.

“With the development of the internet, more knowledge is accessible to people anywhere at any
time. Facilitating communication, data transmission, and global interaction, the internet is a
playing field unlike any other. Transcending the traditional barriers of time and space, the
internet is redefining the world of banking. The internet has created new methods for carrying
out a variety of financial transactions. With these developments, a new era of banking has
emerged which has come to be known as e banking. E-banking encompasses an array of
financial transactions, once done through the tangible exchange of information, now are done
electronically. While the benefits of such advancements have been welcomed, there also have
been drawbacks. Issues such as security, fraud, and theft have deterred people from
participating in the internet e banking revolutions. (Taleghani, Sharifi, Gilaninia, 2011)”

“A study has identified the various factors which explain why certain consumers are not using
internet banking. The two most frequently mentioned factors were perceptions about the risks
associated with internet banking and the lack of perceived need. Other less frequently
mentioned factors were lack of knowledge of the service, inertia, inaccessibility, lacking the
human touch, pricing and IT fatigue. The findings suggest that marketing campaigns which aim
to encourage consumers to become internet bank users are likely to attract more males, the
higher income groups, the better educated, those who have already used the internet to buy
services and /or goods and those who are knowledgeable about internet banking. (Gerrard,
Barton, Cunningham and Devlin, 2006)”

“A study on effects of electronic banking on customer satisfaction and loyalty shows that by
offering personalized Internet banking services which tailor to suit Internet banking products
and services to specific user preference of customers in developing countries, bank management
and marketing practitioners face stiff competition worldwide can still be victorious by
improving customer attitude towards using Internet banking. By making sure that the customers
can easily be reached through the creation of email discussion list, asking customer opinions to
improve a particular Internet banking product and building customers profiles through the use
of transaction log to recommend the most suitable Internet banking services and products based
on customers previous purchasing activities over the Internet, bank management and marketing
practitioners can resolve the Internet banking risks. By offering free Internet banking trainings
and demonstrations to assist users with frequent physical branches visit, it helps the
management and marketing practitioners may reduce the Internet banking risk of insufficient
organizational support.” (Momeni, Kheiry and Dashtipour, 2013)

“Walia and Jain (2012) suggest that at present, Indian banking system needs a fresh outlook and
keeping in mind the various distortions, government should introduce third banking sector
reforms. In the end the key to banking reform may lie in the internal bureaucratic reform of
banks, both private and public. In part this is already happening as many of the newer private
banks (like HDFC, ICICI) try to reach beyond their traditional clients in the housing, consumer
finance. The major factors, which are critical for the success in the complex scenario, are:

a) Commitment to develop strong long lasting relationship with customers and to provide
quality services;
b) Professional, motivated and innovative staff;
c) Commitment to earn the highest possible profits with consistent produce and
management of risk;
d) Obsess for growth.”

3.4 LITERATURE REVIEW OF MOBILE BANKING SERVICES

“SMS banking is the future of banking technology and SMS banking would play an important
role in the creation of a cashless economy, what is left is for us to recognize this fact and utilize
it. (Rotimi, Awodele, Bamidele, 2007) “

Bajaj (2008) suggests that mobile banking also spells more business for banks, especially as
they ride the wireless telephony boom in India's rural hinterland, which has a large population
of the financially excluded.

“The value of mobile banking for consumers is in its immediate location-free access to banking
services enabling time savings, real-time information, and enhanced feelings of control.
(Laukkanen and Lauren, 2005)”

As mobile phone technology is a growing technology in banking, finance and commerce sector
by which we can save our time and can access our account and information of our account from
anywhere and anytime and it also keeps alert us with our account transaction and with other
necessary information. But there is some security related risk and challenges may come to
overcome these risk and challenges we have to improve our security system and improve the
authentication system for secure services and make trust in customer to use of mobile banking
services and can remove barrier in adoption of mobile banking services. (Tiwari, 2014)
“Mobile banking service quality assessment requires analysis of the full interface design. A
good mobile system service will promote users’ adoption intention; contrarily, a poor mobile
system service will decrease users’ adoption intention (Lee, 2005)”

“A study on customer perception towards Mobile Banking in Indian overseas bank, Chennai
shows that a majority of users were between the age group of 30-40. The internet banking does
not seem popular among the above 50 age group with only 12% representing the sample size.
Among the respondents a significant percentage i.e. 41% of the sample are graduates and post
graduates and diploma holders and negligent percentage are school students. Majority of the
users are the salaried class who form 66% of the sample size. The students are the next frequent
user while self-employed and professional formed the next category. There are respondents who
use mobile banking monthly (52%), weekly basis (23%), daily basis (16%), and as and when
required (9%). A substantial number of respondents still use it only when required and the
banker have to attract such customers towards frequent usage. From the statistical analysis it
seems that most of the customers are satisfied with the Mobile banking service provided by
Indian overseas bank. (Palami and Yasodha, 2012)”

“Another work on mobile banking throws light on the present scenario. Around the globe,
various initiatives use the mobile phone to provide financial services to those without access to
Traditional Banks. It has become impetrative for the banks to adopt such technologies and
strategies which ensure their success. As a result, the banks are trying to develop an
understanding about their customers by analyzing their behavior regarding the services. The
findings of the present study convey that the banks must concentrate in not only providing the
core services through Mobile Banking but also improving the quality of the services that leads
to Customer Satisfaction. The research findings confirmed that SMS/Mobile Banking is an
effective banking and financial service delivery channel. Results clearly show that all the
respondents of both the Banks were using the Periodic Balance Service, further Fund Transfer
and Electronic Bill Payment service was most popular among the Bank customers. Since
acceptability of SMS/Mobile banking significantly differ among the Bank customers and hence
it was noted that the major challenges in front of Banks were services like 'poor acceptance
among customers' 'security concerned', etc. (Malik and Gulati, 2013)”
“A study discusses certain key challenges in developing a sophisticated mobile banking
application. These are mainly-

a. There are a large number of different mobile phone devices and it is a big challenge for
banks to offer mobile Banking solution on any type of device. Some of these devices support
Java ME and others support SIM Application Toolkit, a WAP browser, or only SMS.
b. Initial interoperability issues however have been localized, with countries like India
using portals like R World to enable the limitations of low end java based phones
c. There is a myth that there is a challenge of interoperability between mobile banking
applications due to perceived lack of common technology standards for mobile banking.
d. Money eco-systems (many participants, some behaving in unpredictable ways) makes it
very difficult to ensure equilibrium.
e. Proliferation of access mechanisms to payment schemes will dilute security, by allowing
access to the payment system in many different ways. It also seems as if the proliferation of
social media access, connecting in their own way, with their own hash-tags and special codes
happens without clear design and architecture.
f. The customer may be sitting in any part of the world (true anytime, anywhere banking)
and hence banks need to ensure that the systems are up and running in a true 24 x 7 fashion.
Banks unable to meet the performance and reliability expectations may lose customer
confidence.
g. India does possess some infrastructure in the forms of postal payments, reasonable
transport and local governments. Therefore, any mobile banking must be inexpensive enough to
be attractive for the end-customer over existing methods.
h. Although the RBI is supportive of mobile banking in India, there are many regulations t
are being put into place that, only existing financial institutions and banks are allowed to offer
mobile banking, all transactions must be done only in India’s national currency and, only those
having a valid bank account would be allowed mobile banking.
i. India has 18 official languages which are spoken across the country. Additionally, two-
thirds of the population in India is illiterate, creating difficulties in deployment of mobile
banking solutions. (Rao, 2013)”
“According to an article in Business Standard, a sharp increase in use of smartphones has led to
a sudden surge in mobile banking transactions, almost four times in a year in value terms.
Leading the pack is ICICI Bank, the country’s largest private-sector lender, which has reported
a three-fold rise to clock more than Rs 1,000 crore worth of transactions in a month, the first
time by a bank in India ICICI Bank’s share in the country’s mobile banking payments is the
largest. Abonty Banerjee, general manager and head of digital channels, ICICI Bank, says
financial transactions on mobile devices are rising steadily. “In the first quarter of this financial
year, we have already logged Rs 2,635.37 crore worth of mobile banking transactions, close to
half the Rs 5,741 crore seen in full 2013-14. Also, compared with the June quarter of last year,
we have almost tripled our value of mobile transactions — from Rs 941 crore to Rs 2,635.37
crore.” Similarly, the value for June alone was Rs 1,000 crore, compared with Rs 333.23 crore
in the month last year. “Even other banks have seen significant jump in transactions on the
mobile platform. HDFC Bank, India’s second-largest private lender, has also seen its
transactions growing about three times — to Rs 795.6 crore in June this year from Rs 266.3
crore in the month last year. Axis Bank witnessed a five-fold increase during the same period —
from Rs 115.8 in June 2013 to Rs 586.1 crore. In the month, the total value of mobile
transactions across banks grew to Rs 3,985 crore from Rs 1,147 crore a year ago. While private-
sector banks have led the charge in tapping the digital opportunity with better technology, State
Bank of India (SBI) is one of the few state-run lenders that have seen meaningful traction.
(Anand, 2014)”
 Figure 3.1

“Significant effects of perceived usefulness, perceived convenience, perceived flexibility,

perceived reliability etc. on usage of mobile banking in public and private sector banks was
observed. The study found a significant difference in perception of customer related to mobile
banking services in public and private sector banks. Further, a significant effect of perceived
usefulness was examined on both public and private sector banks. Bank customers’ intention to
adopt it would be greater, if they pay more attention to its usefulness. (Motwani, Sukhjeet and
Haryani, 2013)”

"Message-based banking, where you don't even need smartphones, has just been launched (in
India). I do believe that once this is understood by people, there will be an explosion of activity
in the mobile space. This is what the future holds," said SBI chairman Arundhati Bhattacharya.
She said mobile banking will also play a large part in the role of the yet-to-be-launched payment
banks with which SBI plans to have tie-ups. This study shows that mobile banking is an
available option for even ordinary cell phone holders. (Shetty, 2014)

According to Tysiac (2013), mobile banking has the potential to provide convenience to
consumers and new service opportunities for financial institutions, mobile network operators
and innovators. But there are risks involved, too, as consumers engage in payments, financial
transfers and account monitoring via mobile devices such as smartphones and tablet computers.
Regulators have taken interest in making sure benefits are delivered to consumers while risks
are minimized.

According to Furrer (2013), a smart mobile banking strategy also helps in mitigate the tendency
of younger generations to move their funds away from their family’s longstanding relationship
with a local or regional bank.

3.5 LITERATURE REVIEW OF ATM BANKING

Multimodal biometrics along with two tier security provides a higher level of security. The error
rates like FAR (False Acceptance Rate and FRR (False Reject Rate) has been reduced, which
avoids the various types of attacks in ATM system and fraudulent activities are reduced. The
chance given for hackers to make use of fake biometrics to act as an authorized user is strictly
avoided, which makes the ATM system more secure. But the cost spend to design and
implement this type of system is higher when compared to the existing ATM system. (Kande
and Govardhan, 2013)

In recent years, with the wide utilization of internet technology it is necessary to raise ATM
security. However, the internet communication will be exposed there by unwanted people allow
to do different kinds of attacks on ATM System. Some of the threats affected to the ATM are
Eavesdropping spoofing, Skimming Attack, Card Trapping, PIN Cracking, Phishing Attack
ATM Malware, ATM hacking, etc. This point is raised by Lavanya and Raju. (2013)

From a study taken up in Coimbatore city, it is concluded that most of the customers are
satisfied with the ATM services provided by the banks. But still many customers have faced
many problems such as unavailability of ATM centers, non-functioning of ATM machines,
wrong deductions of amount etc. The main problem they have come across is the security
problems like the absence of security personnel and non-functioning of auto door locks. Hence
all these problems must be taken into consideration by banks to provide the customers with
better ATM services. (Umamaheswari and Bhuvaneswari, 2013)

Sachan (2008) highlights the ATM development strategies for the Indian markets. The study
results indicate that ATM Breakdown, ATM Functionality and ATM Location are the three
most important factors for the ATM users. Banks can devise niche strategies to serve the
specialist markets.

“A study shows that Mean values are more than 2.5 in all the cases, indicates that people of
Bihar are satisfied from ATM service of various public and private sector banks. Results
indicate that Convenience has the highest mean score implying that it is the most important
dimension of service quality. Thereafter Responsiveness and Accessibility are next important
dimensions of service quality. This study attempts to find out the satisfaction level of customers
in ATM services in Bihar. For this purpose primary data was collected from 100 respondents of
different bank ATM users of Bihar. Data was tested for normality and reliability and then
analyzed to meet the objectives. ( Barun Kumar Jha, Shilpa Sureka and Shitika, 2014)”
“According to a study, a high degree of association between the ratio of the number of ATMs to
the number of tellers and the ratio of the cost per ATM to the cost per teller is seen. The degree
of substitutability of the teller by the ATM is quite high at 0.56, predicting the eventual
replacement of the teller by the ATM. Also the simultaneous decrease in the cost per ATM and
the increase in the teller wage bill have led to the rapid spread of ATMs. This shows that IT
investment is indeed important in the Indian banking sector. (Kumar et al, 2010)”

“A comparative study of customer attitude towards ATM of SBI and ICICI bank highlights that
there is a difference in attitude of customer of ICICI and SBI bank towards use of ATM.
Another objective was to identify the problem usually face by customer while using ATM. This
study find that the main problem face by customer of SBI is that they get old currency notes
from ATM of SBI. 21% people agree that often it’s machine also get out of order. The main
problem from ICICI ATM is that its machine go out of cash and 18% says often it’s ATM does
not work. (Tuli, Khatri and Yadav, 2012)”

“Automated Teller Machine is a computerized telecommunications device that provides the

customers of a financial institution with access to financial transactions in a public space
without the need for a human clerk or bank teller. On most modern ATMs, the customer is
identified by inserting a plastic ATM card with a magnetic stripe or a plastic smartcard with a
chip that contains a unique card number and some security information, such as an expiration
date. Security is provided by the customer entering personal identification number (PIN).
(Adepoju and Alhassan, 2010)”

“A study conducted on Challenges of Automated Teller Machine (ATM) Usage and Fraud
Occurrences in Nigeria shows that most victims of ATM fraud are students and ATM users who
are not aware of any incidence of ATM fraud. A total of 83 females (55. %) and 67 males
(44.7%) from the three banks participated in the study. From the data gathered in obtaining the
most victims of ATM fraud, 41 respondents out of 67 respondents of the male have ever been a
victim of ATM fraud. 24 out of 83 respondents of the female have been a victim of ATM fraud.
This implies that the males are the major victims of ATM fraud from the study. Also, 33 out of
the 60 respondents of the students have ever been a victim of ATM fraud, 7 out of the 20
respondents of business men/women have been a victim of ATM fraud. The age ranges that are
most victims of ATM fraud are respondents of age between 21- 25 years. (Adepoju at el, 2010)”

3.6 LITERATURE REVIEW OF RTGS AND NEFT SERVICES

“As part of its public policy objective of promoting a safe, secure, sound and efficient payment
system, the Reserve Bank has taken several initiatives to develop and promote electronic
payments infrastructure. Towards this end, the RBI introduced the Electronic Clearing Service
(ECS) and the Electronic Funds Transfer (EFT) system in 1995, the Real Time Gross
Settlement (RTGS) system in March 2004, the National Electronic Funds Transfer (NEFT)
system in November 2005 and Cheque Truncation System (CTS) in February 2008.
(Karimzadeh and Alam, 2012)”

“The world-wide application of at least some of these public and private sector principles and
good practices is reflected in findings reported by the World Bank (2008). In 88 of the 98
distinct systems identified by the survey, the central bank settlement authorities grant intra-day
credit to their RTGS system participants by way of loans, repos, or current account overdrafts.
In 85 systems a further source of RTGS liquidity is the ability of participants to draw down
during the day, in full (65) or partially (20), fixed reserves they are required to hold with the
central bank, including reserves held for monetary policy purposes, or deposits required to
finance the central bank itself. In only 40 of the 98 RTGS systems participants make use of lines
of credit between banks.”

“The migration of our payments system towards a cashless society would require some reform
and a lot of effort and sensitization especially for low income customers, who are currently
deeply rooted in using cash and see it as a convenient and easy way of receiving and making
payments. The sensitization exercise would require the combined effort of various stakeholders,
including government, financial institutions and non-bank providers of payment services. The
cashless system of payments idea was well received by the majority of Nigerians, but with some
concerns/challenges which can hamper its success and must be addressed by providers.
(Nwankwo and Eze, 2013)”
As per Whyel (1974), EFTS offers tools to reduce the ever mounting piles of paper-work. It
makes banks over burdened with work. The main challenge is to make EFTS error proof.

“A study investigates the reasons why person-to-person electronic funds transfers are still not
very common in the United States compared with practices in many other countries. The reason
lies in the context of privacy. (Shy, 2010)”

The electronic funds have appeared as a necessity in the nowadays financial industry. The most
important reasons are the transaction processing low cost, low time processing, low risk in the
financial messages transmission (private, personal communication networks). (Poenar, 2008)

There are a plethora of risks and issues which are associated with EFT which in other words has
proved to be disadvantages of electronic banking. “The major issues are the issues of security
and privacy. Security risk arises on account of unauthorized access to a bank’s critical
information stores like accounting system, risk management system, portfolio management
system, etc. the specific privacy issue related to protection of personal data became an issue of
growing concern with the advent of computerized systems which could store and disseminate
large amounts of information with relative ease via automated processes. Research on payment
systems has also been motivated by the important design changes that have occurred in the past
30 years from delayed net settlement system, to real-time gross settlement (RTGS) system, to
the introduction of liquidity-saving mechanisms in many countries more recently. (Jurgilas and
Martin, 2013)”

3.7 LITERATURE REVIEW OF PLASTIC MONEY SERVICES

“The issuing bank should take necessary step to improve their cardholder's awareness and
satisfaction. Varieties of banks card and their services were preferred by them. Services like
wider acceptability, discount on purchase and quick processing, popularity and convenience
services of bill payments opting have to be increased for further satisfaction. Therefore it is
clear that satisfy the cardholder the issuing bank should adopt suitable marketing strategy, to
create better satisfaction and future growth of credit cards in market. (Dwarkadas, 2011)”
“The world has been dreaming of a cashless society ever since credit instruments were
introduced in the 1950s. With the increase in smartphone penetration and 3G networks be-
coming a reality, the outlook for mobile payments in India is optimistic. While we have over
900 million mobile subscribers, less than 40% of our countrymen have bank accounts. One of
the lowest ATM density in the world, low share of Debit/Credit cards in the total retail
electronic payments, further contribute a strong business case. (Patel and Amin, 2012)

Vimala (2014) in her research has studied the impact of credit cards on HDFC bank customers
in Shimoga. According to her study, the plastic money efficient services and credit card
development in Shimoga district contributes significantly to the banking development of the
country. HDFC Bank provide the best timely quality services at the reasonable cost to their
customers in the Shimoga district. 40% of customers and approximately 52% of public
customers belongs to private sector banks, business man and government employees and 08%
are others who use the credit cards and other services effectively in the city. The Most effective
media to promote the credit cards was newspaper, it’s about 55% in the city which created a
strong impact on the HDFC Bank customers and credit cards are quite safe to the people.”

“As many economies now feature new forms of payment such as credit cards, smart cards, and
electronic money, it is increasingly important for policymakers to understand how consumers
substitute between cash and competing media of exchange. Inflation triggers agents to substitute
from money to credit for two reasons: a higher inflation rate both lowers the rate of return on
money and makes default more costly, which relaxes agents' borrowing limits. (Lotz and Zhang,
2013)”

“The Number of innovative products for making payment has developed after the privatization
and globalization. Customers have showed their preference over the usage of the plastic money
generally over a period of time in the banking process. Plastic money is an alternative to the
cash or the standard ‘money’. The use of Plastic cards is more and more increasing for online
payment. Around 50% of payments of the customers are done through credit/Debit cards.
Sample survey shows Debit cards are preferred over credit cards. The main reason for the
increase in plastic money is that the customers are not a victim of a fraud. The customers have
rated that the telephonic payment option is average due to long timeliness and security concern
for CCV/PIN number. (Patil, 2014)”

Plastic Money i.e. usage of Credit card was measured a luxury, and has become needed. These
plastic money and electronic payments was and used by only higher income group. Among the
various financial services rendered by commercial banks and other financial institutions,
extending their credit card facility to customers is an important modern day function. This
facility extended not only to customers in urban areas or cities, but also to customers residing in
rural area. However, today, with development of banking and trading activity, the fixed income
group or salaried classes are also start using the plastic money and electronic payment systems
and particularly Credit cards. There may be the criticism that, it induces far more purchases or
make people spendthrift. This may be so in the initial stage, but when once a customer gets used
to the credit cards, they will know how to use the same in a discretionary manner. (Manivannan,
2013)

“Another study on plastic money depicts that when plastic money users are satisfied, they will
be attached to the bank for a long time. It will be strength for a specific bank to compete with
other banks. It will help the growth of the plastic money users confidence on the bank and
users will be tempted. If banks want to sustain positively, there is no alternative but to satisfy
the customers, especially the plastic money users, because they use it against their valuable
deposited money in the bank. Bank must improve its strategies to fill up the demand of Plastic
money users because if the users switch to another bank, the particular bank will lose some cash
flow that will negatively affect the goal of the bank. (Sumi and Safiullah, 2014)”

“A research shows the usage of Debit cards in rural areas is also influenced by some of the
factors like age, income, occupation, educational level, and years of association with the bank.
These factors are said to be influential in the usage of debit cards among the rural consumers.
The results allow banks’ decision makers to develop strategies that can increase the usage of
Debit Cards by Rural customers. Debit cards are widely used everywhere; fortunately our rural
India has started the eve of adopting the new technology of ATMs and debit cards. The major
customers of rural areas consists of students, business people, vendors and farmers, this amply
indicates the growth of the nation and raise in the standards of people. Literacy was one of the
factor affecting the adoption and long term usage of ATMs and debit cards, but now a days the
trends are even changing in the rural areas. The secured transactions are ensured by the
technology, the continuous need for withdrawal of money and change in the customer’s attitude
towards debit cards has influenced the long term usage of debit cards in rural areas. (Ravikumar
and Maran, 2013)”

3.8 LITERATURE REVIEW OF ROLE OF TECHNOLOGY IN BANKING

“Raheem and Krishnamoorthy (2011) in their study concluded that the of effects of new
banking technology on service quality in public sector banks in Chennai city, using Multiple
Log Linear Regression analysis, which explain that the value of co efficient (b) of new banking
technology variables viz., Net Banking (1.65), ATMs smart, credit and debit cards (1.065),
FOREX Remittances (1.99), E-Finance (1.069), ATM and Bill Payments (1.04) determined
service quality in public sector banks is significant. The signs of the co-efficient (b) of the entire
five new banking technology attributes are positive indicating that the higher the level of the
new banking technology, higher will be the service quality in public sector banks in Chennai
city. The value of co-efficient of determination (R2) indicates that the parameters included in
the new banking technology attributes bring about differences in service quality by 0.6875 ( i.e
68.75 per cent) in public sector banks. Therefore, the new banking technology attributes viz.,
Net Banking, ATMs smart, credit and debit cards, FOREX Remittances, E-Finance, ATM and
Bill Payments, are most important variables which determined service quality of public sector
banks in Chennai City. The study has highlighted that new banking technology and quality
service in public sector banks in Chennai city which need to improve to survive the competition
posed by the new entrants in the foreign sector. The exiting organizational structure and policies
of public sector banks are ill equipped to meet the new objective. Despite various committees
being set up to examine the changes required in the exiting insurance framework, not much
work has been done to improve quality of service delivery. Asset management not only entails
the management of funds but also efficient handling of clients who are the invisible assets on
the balance sheet. If public sector banks hope to survive, they will have to equip themselves
with a commitment to quality services”.

Due to the growth of IT sector, banks are being able to reach their customers anywhere at any
time. (Paul, 2013)
“In the last two decades, there has been a paradigm shift in banking industry by the
technology-based approach in business. Banks across the world are motivated to integrate
information technology (IT) into their daily operations to gain top-line as well as bottom line
benefits. (KesharwaniI and Radhakrishna, 2013)”

“With e-banking services, one can actually carry out a number of transactions sitting on one’s
seat with just a few clicks. Net banking customers view their account balance and also open
fixed deposits, transfer funds, pay electricity, telephone or mobile phones bills and much more.
The accounts of the customers are updated as soon as the transaction takes place i.e., the
accounts show the information updated to the last second. This means if a cheque issued by you
has been debited from your account in the morning, your account status will reflect this when
you log in to your accounts in the afternoon as against the earlier updating at the end of the day.
This highlights the advantageous part of technology in banking sector. (Singh, Pandey and
Gupta, 2011)”

“The Internet is an extremely efficient channel for banks to collect the information from
customers and manage information flow to meet wide-range financial needs of individuals and
businesses. In fact, offering e-banking services is not only allow small banks to enter markets
and reach customers that were previously off limits to them, but also to provide a considerable
economies of scale in record storage and data processing - which were only available to large
banks (which have the necessary equipment). (Yang, Whitefield, Bhanot and Johnson)”

Technology is being used to engage customers throughout their lifecycle. Banks are now
focusing on their service offerings to suit customer preferences. Technology is playing a
strategic role in driving the growth of the organisation and is no longer viewed as a support
function, few banks are launching campaign as a ‘corporate social responsibility’ objective with
a purpose to promote Green banking which is paperless and queue less banking and also
promotes use of recyclable products for Bank’s stationery using TYVEK material. (Manohar
and Kumar, 2013)

A study taken by Roopadarshini and Shilpa (2014) focuses to find out the impact of IT
innovation in banking and to analyze the impact of banking technologies. Following table
shows the technological changes in banking services. Around 50% of the respondents are highly
satisfies with the technological changes taken place in banking area. On the other hand 5% are
not satisfied.

Figure 3.2

It is also seen from the figure below that around 24% of the respondents are satisfied with the
security aspect.
 Figure 3.3

It is also deduced that E - Banking facilities have reduced the cost and the time of customers.
Technological up gradation in banking sector for reaching the customers demand is a must.
Majority of customers are satisfied by the high safety and security provided by the bank. Banks
should update the technological innovation in order to satisfy the need of the customer. The
suggestions say that the banks should maintain of high quality assets. Protecting the pin number
is equally important as protecting hard cash. Replacement of old with new technology helps to
attract more customers. Bank should interact with the customers to render better service.

“Consumer acceptance of online banking: an extension of the technology acceptance model is

another good work in the field of mobile banking with special reference to technology.
Advances in electronic banking technology have created novel ways of handling daily banking
affairs, especially via the online banking channel. The acceptance of online banking services has
been rapid in many parts of the world, and in the leading e banking countries the number of
e banking contracts has exceeded 50 percent. Investigates online banking acceptance in the light
of the traditional technology acceptance model (TAM), which is leveraged into the online
environment. On the basis of a focus group interview with banking professionals, TAM
literature and e banking studies, developed a model indicating online banking acceptance
among private banking customers in Finland. The model was tested with a survey sample
(n=268). The findings of the study indicate that perceived usefulness and information on online
banking on the Web site were the main factors influencing online banking acceptance.
(Pikkarainen, Pikkarainen, Karjaluoto and Pahnila, 2004)”

“In the task of making banking services available to everyone, technology has an important role
to play in creation of channels beyond branch networks. The RBI has set up an Advisory Group
for IT Enabled Financial Inclusion to facilitate development of information technology
solutions for delivery of banking services. Technology can play an important role in reducing
operating cost of providing banking services, particularly in the rural and low income groups
segments. The technology, if blended appropriately with the right business model and policy,
holds the key to extending affordable, viable and sustainable access to finance for the
population at large. (Trivedi, 2009)”
“Computerization in Indian banking sector and the use of modern innovation has increased
many folds after the economic liberalization as the country’s banking sector has been exposed
to the worlds market. In 1984a committee was formed by RBI on mechanization in the banking
industry whose chairman was Dr. C Rangarajan, Deputy Governor of RBI. Under
mechanization an electronic ledger posting machine was installed which included a type writer
keyboard, a printer, two floppy disc drives and a video screen. The machine was used to prepare
statement on accounts for customers, maintaining primary ledgers and post transaction entries in
them. The reports were submitted by the committee in 1989 and computerization began from
1993 with the settlement between bank administration and bank employees association. In 1994
for issues related to payment system, security settlement and check clearing a committee on
technology was set up in the banking industry which emphasized on Electronic Funds Transfer
system. (Mittal, Jadaun and Dash, 2013)”

3.9 LITERATURE REVIEW OF OTHER IMPORTANT ASPECTS

RELATED TO INNOVATION IN BANKING
A study shows that to strive, to attract and to retain customers, the bank has to introduce
innovative products, which will enhance the customer services and marketing services with the
help of different channels targeted at specific customer. (Dhanabhakyam and Anitha, 2011)

The biggest challenge to obtain effective customer knowledge includes obtaining a complete
view of customers is complex and quite difficult. The main challenge is to move away from
stand alone, disjointed, inconsistent channels to a cohesive, integrated, multi-channel offering.
The cost and difficulty of meeting with the strict and highly rigid government regulations and
client privacy and security requirements is also an issue. This view is regarding CRM in
banking sector which says that CRM is all about bringing people, processes, methods and
technology altogether – a case study of banking sector in India. (Bihari, 2012)

“A study shows that customer satisfaction vary according to the nature of the services and in
this case, highest customer satisfaction is shown in such areas like prices charged by banks is
nominal, favorable location of bank branches and staff attitude toward problem solving of
customers. When the private banks are compared with public sector banks, private sector bank
customers were found to be more satisfied with their bank because of their multiple branches at
convenient locations and technology (like check deposit machines, utility bill accepting
machines etc.) which were not even seen in public sector banks. But when we talk about public
sector banks customers of public sector banks were more satisfied with reputation, reliability
and the prices which public sector banks impose on services like cheque/cash deposit and
cheque/cash withdraw (it has been shown that price charges are lower in public sector banks
than in private sector). When we compare both types of banks in terms of customer care service,
private sector banks are favored more than public sector banks. Although overall both public
and private sector bank customers are satisfied with their banks but due to wide difference of
response, both public and private sector banks should concentrate on their weak areas in order
to meet their customer expectations and this study gives us some sort of guidelines to managers
of banks to take suitable decisions to get more satisfied responses from their customers. (Mishra
and Pandey, 2013)”

“Delivering high service quality is one of the best ways for banks to respond to competition.
Trustworthy and valid measures of customer service quality are essential to achieve, and as a
result service quality programmes should become high priority matters of the banks.
Expenditure on such programmes should be viewed as long-term investment for future growth,
development and profitability. It is, therefore, suggested that banks should make investment in
research in order to understand customer needs and expectations at all stages in the service
delivery process so as to determine the key components of service quality. They should also
conduct frequent training programs in areas like prompt cash payments and receipts at the
counter, efficient pass book and statement service, prompt collections and remittance services,
early decisions on credit applications and quick attention to complaints. All these activities also
have direct impact on customers’ perception towards service quality. Bank should also offer
such products or services which would fully meet customers’ needs and develop systems and
procedures which are user-friendly. They should make best use of technology in products,
services, systems and environment so as to ensure speed, accuracy and efficiency. Although,
these banks have invested in technology heavily, there are still many bottlenecks which need to
be addressed. (Padhy and Swar)”

“Another study says that developing countries like India, still has a huge number of people who
do not have access to banking services due to scattered and fragmented locations. But if we talk
about those people who are availing banking services, their expectations are raising as the level
of services are increasing due to the emergence of Information Technology and competition.
Since, foreign banks are playing in Indian market, the number of services offered has increased
and banks have laid emphasis on meeting the customer expectations. the various challenges and
opportunities like rural market, transparency, customer expectations, management of risks,
growth in banking sector, human factor, global banking, environmental concern, social, ethical
issues, employee and customer retentions. Banks are striving to combat the competition. The
competition from global banks and technological innovation has compelled the banks to rethink
their policies and strategies. (Goyal and Joshi, 2012)”

“Lohani amd Shukla (2011) studied that the perceived quality of services provided by private
sector bank (ICICI) is better than public sector bank (Bank of Baroda) in Lucknow city region.
It is evident that public sector banks have a strong presence in the market, but in recent times
they are facing stiff competition from private sector banks in the range and quality of services
offered. In the present scenario banks have to be service oriented in order to keep ahead of
competition. Public sector banks must concentrate on providing updated information to
customers regarding the new services offered by them. They must also change their policies,
customer service norms and service efficiency keeping in view the strategies adopted by private
sector banks.”

“Tiwari studied that Union Bank of India is providing very innovative services. This bank has
focused on the backward side of the society. The CSR policy of the bank is really very
innovative. This is the only bank that is providing this type of facility to the rural area. It is
observed that banks in India moving towards sustainability through innovative service
operations and offerings. The sample considered here for analysis has proved this point very
clearly. The rate at which innovation are adopted by firm constitute an important part of the
process of technological change. Union Bank of India is more aggressive in innovation and it is
position ahead it terms of services. So the banks must create and sustain an environment that
promotes creativity. Also innovation can give the better success to the banking sector. It is one
of the best policies and the key of success of any bank.”
“Accepting the key role of perceived risk in online banking adoption, finding an operational
segmenting variable that could both reduce consumers risk perception and positively influence
internet banking adoption would be of great managerial interest. It is believed that consumer
innovativeness, understood as the tendency to willingly embrace change and try new things and
buy new products more often and more quickly than others may successfully assume that role.
(Manzano, Navarre, Mafe and Blas, 2008)”

Long time back Brian (1996) suggested that private banks must be prepared to attract a new
generation of primarily middle –aged investors.

Indian banks have adopted measures either for reducing carbon emission or for public
awareness as a part of Green Banking initiations. Many Indian banks have started to realize the
importance and they are taking up various Green Banking initiatives. “Government of India,
Ministry of Finance, Department of Financial Services has issued guidelines / instructions to
banks on Green Initiatives. Advising banks to take proactive steps in this regard by increasing
the use of electronic payment systems, elimination of post-dated cheques and gradual phase-out
of cheques in their day-to-day business transactions. As part of the Green Initiative, the Public
Sector Bank (PSBs), Financial Institutions, viz., NABARD, SIDBI, EXIM Bank, and Public
Sector Insurance Companies (PSICs) would take up the e-Governance initiatives in a pro-active
manner. Through these initiatives, it is expected that on one hand, the quality and efficiency of
the service delivery will improve and, on the other, banks will gradually move towards less
paper based transactions. (Manohar et al, 2013)”

3.10 KEY OBSERVATIONS AND RESEARCH GAP

A lot of studies have been taken up by researchers and academicians on different innovations. In
the course of review of literature, there were many studies which were found to be instrumental
in this research work. Following are the key observations identified related to the review of
literature on this study:

a) Many studies have emphasized on the positive role played by banking sector reforms in
the development and improvement of Indian banking industry. Karim(2010) ,
Reddy(2009), Seth(2009) and Roland have given credit to liberalization in banking
 operations and introduction of new financial instruments for improved performance of
public and private sector banks in past decades.

b) Shah and Clarke(2009) have mentioned that most of the banks and big organizations
now are anxious to use internet banking because of its relatively lower and bearable
delivery cost, higher sales capacity and potential for offering greater convenience for
customers.

c) A direct relationship and connection between consumer satisfaction and internet

banking is mentioned by many researchers like Saha and Zhao(2005), Casalo et-
al(2008), Raman et-al(2008) and Michael(2007).

d) A study on e-banking reveals that the young generation is more known to computer
and internet banking. So they are more interested in using the E-banking system. (Paul,
2008)

e) Tiwari (2014) in his study mentions that mobile phone technology is a growing
technology in banking, finance and commerce sector by which we can save our time
and can access our account and information of our account from anywhere and
anytime and it also keeps alert us with our account transaction and with other necessary
information.

f) A key challenge posed before mobile banking is use of different regional languages
across the nation is discussed by Rao(2013). India has 18 official languages which are
spoken across the country. Additionally, two-thirds of the population in India is
illiterate, creating difficulties in deployment of mobile banking solutions.

g) Some of the threats related to the ATM are Eavesdropping spoofing, Skimming
Attack, Card Trapping, PIN Cracking, Phishing Attack ATM Malware, ATM hacking,
etc. This point is raised by Lavanya and Raju. (2013)

h) A study taken up in Coimbatore city by Umamaheswari and Bhuvaneswari reveals that

most of the customers are satisfied with the ATM services provided by the banks. But
 still many customers have faced many problems such as unavailability of ATM
centers, non-functioning of ATM machines, wrong deductions of amount etc.(2013)

i) The electronic funds have appeared as a necessity in the nowadays financial industry.
The most important reasons for the use of electronic fund transfer systems are the
transaction processing low cost, low time processing, low risk in the financial
messages transmission (private, personal communication networks). (Poenar, 2008)

j) The issuing bank should take necessary step to improve their cardholder's awareness
and satisfaction. This point is raised by Dwarkadas(2011).

k) A research shows the usage of Debit cards in rural areas is also influenced by some of
the factors like age, income, occupation, educational level, and years of association with
the bank. These factors are said to be influential in the usage of debit cards among the
rural consumers. The results allow banks’ decision makers to develop strategies that can
increase the usage of Debit Cards by Rural customers. Debit cards are widely used
everywhere; fortunately our rural India has started the eve of adopting the new
technology of ATMs and debit cards. The major customers of rural areas consists of
students, business people, vendors and farmers, this amply indicates the growth of the
nation and raise in the standards of people. Literacy was one of the factor affecting the
adoption and long term usage of ATMs and debit cards, but now a days the trends are
even changing in the rural areas. (Ravikumar and Maran, 2013)

l) Due to the growth of IT sector, banks are being able to reach their customers anywhere
at any time. (Paul, 2013)

m) Most of the studies indicate that introduction of new and updated technology has
changed the face of Indian banking sector.

n) SMS banking is the future of banking technology and SMS banking would play an
important role in the creation of a cashless economy. This is mentioned by Rotimi,
Awodele, Bamidele(2007).
 o) According to Vimala, the plastic money efficient services and credit card development
contributes significantly to the banking development of the country.

Research Gaps have been also identified. Not much work has been taken up specifically in
Eastern Uttar Pradesh region though many developments have taken place in banking sector in
this region as well. Attitude of bank employees towards various innovative products and
services is also very relevant as they deal with the customers and know the exact reality of
banking operations which has been taken up in this study which till now has not been covered
by a descent number of researchers. Studies related to customers and bank employees’ attitude
towards NEFT and RTGS are also now been observed especially in India. Factors like ease of
handling ATMs, simplicity in operations, impact of knowledge about computers and mobiles,
cost, accessibility in regions, ease of understanding and availability have not been studied much
in composite manner. Various promotional activities like advertising, public awareness
programmes; bancassurance, coins dispenser machines, etc. have also been studied in this
research which have not been studied earlier to much extent.

REFERENCES

Texts
Shah Mahmood & Clarke Steve (2009). E-Banking Management: Issues, Solutions, and

Strategies: Issues, Solutions. New York: IGI global

Arora, Kaushal K. (1992). Development banking In India. New Delhi: Atlantic Publishers and

Distributors

Dadabhoy Bakhtiar (2013). Barons of Banking. Noida: Random House India

Gomez Clifford (2008). Financial Markets, Institutions, and Financial Services. New Delhi:

PHI Learning Pvt. Ltd

Journals And Magazines

Adepoju, Adelowo Solomon & Alhassan Mohammed Enagi (2010). Challenges of Automated

Teller Machine (ATM) Usage and Fraud Occurrences in Nigeria – A Case Study of Selected

Banks in Minna Metropolis. Journal of Internet Banking and Commerce, 15(2), 1-10

Aldas-Manzano Joaquin, Lassala-Navarre Carlos, Ruiz-Mafe Carla & Sanz-Blas Silvia (2008).

The role of consumer innovativeness and perceived risk in online banking usage. International

Journal of Bank Marketing, 27(1), 53-75

Devadevan, V. (2013), Mobile Banking in India – Issues & Challenges, International Journal of

Emerging Technology and Advanced Engineering, 5(3)

Archana Kande & Govardhan, A . (2013). Enhance the Security in the ATM System with

Multimodal Biometrics and Two-Tier Security. International Journal of Advanced Research in

Computer Science and Software Engineering, 3(10), 261-266

Bajaj Kapil (2008). Banking on the move: Mobile banking is fast catching up as an alternative

channel for banking services. Here's what you should know about it. Business Today.

http://search.proquest.com/docview/198249280?accountid=44542
Berris, Brian A (1996). Five "end-of-century" trends in domestic private banking. Trusts &

Estates, 135(13)

Bihari, Suresh Chandra (2012). CRM is all about bringing people, processes & technology

together – a case study of banking sector in India. Romanian Journal of Marketing, 50-56

Dhanabhakyam, M. & Anitha, V. (2011). A Study On Consumer Perception Towards Services

Of Selected Public And Private Sector Banks. Journal of Asian Research Consortium, 1(2), 79-

85

Dwarkadas, Jajoo Rupa (2011). Consumers perspectives towards Credit Card. International

Referred Research Journal, 3(31), 47-49

Furrer Will (2013). Anywhere, anytime, any device banking. Texas Banking, 102(11), 15-17

Gerrard Philip, Cunningham, J. Barton & Devlin, James F. (2006). Why consumers are not

using internet banking: a qualitative study. Journal of Services Marketing, 20(3), 160-168

Goyal, Krishna A. & Joshi Vijay (2012). Indian Banking Industry: Challenges and

Opportunities. International Journal of Business Research and Management, 3(1), 18-28

Gupta, P.K. (2008). Internet Banking In India – Consumer Concerns And Bank Strategies.

Global Journal Of Business Research, 2(1), 43-51

Irfana Shakira & Raghurama, A. (2013). Innovation In Indian Banking: Extent Of Precautions

Taken By The Customers While E-Banking. Astitva International Journal of Commerce

Management and Social Sciences, 2(1), 48-67

Jenkins Hatice (2007) Adopting internet banking services in a small island state: assurance of

bank service quality. Managing Service Quality, 17(5), 523-537

Kalaiarasi, H. & Srividya,V. (2012).A study on factors influencing young user’s online banking

channel usage in India. Journal of Commerce & Accounting Research, 1(3), 17-22
Karim, M. (2010). The Impact of Financial Liberalization on the Transformation of Indian

Banking Sector. SSRN

Karimzadeh Majid & Alam Dastgir (2012). Changing Indian Banking Strategies For

Transformation. Asian Journal Of Research In Banking And Finance, 2(3)

Kesharwani Ankit & Radhakrishna Gajulapally (2013). Drivers and Inhibitors of Internet

Banking Adoption in India. Journal of Internet Banking and Commerce, 18(3)

Kumar Lakshmi, Malathy, D. & Ganesh, L.S. (2011). The diffusion of ATM technology in

Indian banking. Journal of Economic Studies, 38(4), 483-500

Kumar, Amit (2014). E-Banking: A Best Way To Do A Secure Transaction. International

Multidisciplinary Research Journal, 1(8), 1-5

Laukkanen, T., Lauronen, J. (2005). Consumer value creation in mobile banking services.

International Journal of Mobile Communications, 3(4), 325-38.

Lavanya, K. & Raju, C. Naga (2013). A Comparative Study on ATM Security with Multimodal

Biometric System. International Journal of Computer Science & Engineering Technology, 4(6),

808-812

Lee, I., Kim, J. & Kim, J. (2005). Use contexts for the mobile internet: A longitudinal study

monitoring actual use of mobile internet services. International Journal of Human-Computer

Interaction, 18(3), 269-92.

Lohani, Maya B., Shukla, Kamlesh Kumar (2011). Comparative Study Of Customer Perception

Towards Services Provided By Public Sector Bank And Private. International Journal Of

Engineering And Management Sciences, 2(3), 143-147

Lotzy Sebastien Zhangz Cathy (2013). Paper or Plastic? Money and Credit as Means of

Payment
Malik Garima & Gulati Kapil (2013). An Exploratory Study on Adoption and Use of

SMS/Mobile Banking in India with Special Reference to Public Sector Banks. Pacific Business

Review International, 5(11), 70-77

Manivannan, P. (2013). Plastic Money a way for cash Less Payment System. GRA - Global

Research Analysis, 2(1), 11-12

Manohar, B. & Kumar, CH Vijaya (2011). Green Banking “Bye-bye cheques, hello electronic

payments”. Asia Pacific Journal of Management and Entrepreneurship, 1(3), 60-74

Mishra, Navin Kumar & Pandey, Vijay Kumar (2013). Customer Satisfaction: A Comparison of

Public and Private Banks of India. International Journal of Marketing and Technology, 3(5),

166-175

Mittal Prachi, Jadaun Sneha Singh & Dash Manoj Kumar (2013). Computerization In Banks -

Some Issues. IOSR Journal of Business and Management, 8(4), 1-11

Momeni Mandan, Kheiry Bahram & Dashtipour Maasomeh (2013). Analysis the effects of

Electronic Banking on Customer Satisfaction and Loyalty (Case study: Selected Branches of

Melli Bank in Tehran). Interdisciplinary Journal Of Contemporary Research In Business, 4(12),

230-241

Motwani Bharti, Matharu Sukhjeet & Haryani Sharda (2013). A Comparative Study of Mobile

Banking Services in Public and Private Sector Banks. International Journal of Marketing and

Business Communication, 2(3), 41-48

Padhy, Prasanta K. & Narayan Swar, Biranchi (2009). A Study on Customer Satisfaction &

Service Gaps In Selected Private, Public & Foreign Banks. 3rd IIMA Conference, Marketing

Paradigms for Emerging Economies, Indian Institute of Management, 2009

Palani, A. & Yasodha, P. (2012). A Study On Customer Perception Towards Mobile Banking In

Indian Overseas Bank Chennai. International Journal of Marketing and Technology, 2(4), 262-

276

Patil Sushma (2014). Impact Of Plastic Money On Banking Trends In India. International

Journal Of Management Research and Business Strategy, 3(1)

Paul Sabita (2013). The Adoption Of Electronic Banking (E-Banking) In Odisha, India.

International Journal Of Scientific & Technology Research, 2(5), 258-262

Pikkarainen Tero, Pikkarainen Kar, Karjaluoto Heikki Pahnila Seppo (2004). Consumer

acceptance of online banking: an extension of the technology acceptance model. Internet

Research, 14(3), 224

Raheem, A. Abdul. New Banking Technology and Service Quality in Public Sector Banks: A

Micro Level Study. Anvesha, 4(1), 70-75

Rao, Chilumuri Srinivasa (2013). Consumer Awareness in Rural India with special reference to

E-Banking services of State Bank of India. Paripex - Indian Journal Of Research, 2(2)

Rao, R.Srinivasa (2013). Trends, Challenges And Future Functionalities In Mobile Banking.

International Journal of Research in Advent Technology, 1(5), 593-602

Reddy, A. (2009). Banking Sector Performance During Liberalization In India-A Review. SSRN

Electronic Journal

Roopadarshini, S. Shilpa, S. (2014). A Study on Impact of Information Technological

Innovation in Present Banking Scenario. Asia Pacific Journal of Management &

Entrepreneurship Research, 3(1), 233-242

Rotimi Emmanuel, Awodele Oludele & Bamidele Olutayo (2007). SMS Banking Services: A

21st Century Innovation in Banking Technology. Issues in Informing Science and Information

Technology, 4, 227-234

Sachan Amit (2008). ATM Development Strategies for the Indian Market: The Use of Conjoint

Analysis. ASBM Journal of Management, 1(1), 80-93

Satam, M. M. (2015). Impact of Plastic Money on Banking Trends in India. International

Journal Of Multifaceted And Multilingual Studies, 1, 1-7

Sensarma, R. & Jayadev (2009). Are bank stocks sensitive to risk management? Journal of Risk

Finance, 10(1), 7-22

Shukla Ruby & Shukla Pankaj (2011). E-Banking: Problems and Prospects. International

Journal of Management & Business Studies 1(1), 23-25

Singh Kanhaiya, Pandey, U. S. & Gupta Priya (2011). Technological Innovation In Indian

Banking Sector – Use Of It Products. International Journal of Management and Strategy, 3(2)

Singh Tejinderpal & Manpreet Kaur (2012). Internet Banking: Content Analysis Of Selected

Indian Public And Private Sector Banks’ Online Portals. Journal of Internet Banking and

Commerce, 17(1), 1-10

Sumi, Farhana Rahman & Safiullah, Ayesha Binte (2014). Problems and Prospects of Plastic

Money in Bangladesh. IOSR Journal of Business and Management, 16(12), 31-38

Taleghani Mohammad, Sharifi Azita Sherej & Gilaninia Shahram (2011). The Role of Key

Factors in E- Banking for New Enterprises (Concepts & Applications). Interdisciplinary

Journal Of Contemporary Research In Business, 3(3), 999-1006

Tiwari Utkarsh. Innovation In Banking Sector in 21ST Century

Trivedi Pratima (2009). Information Technology key to financial inclusion. E-Track: Business

of future, 5(1)

Tuli Richa, Khatri Abhijeet & Yadav Anita (2012). A comparative study of customer attitude

towards ATM of SBI and ICICI bank. International Journal of Marketing and Technology,

2(8), 463-475

Umamaheswari & Bhuvaneswari, R. (2013). A Study On Customers Perception Towards Atm

Services Of Banks’ With Special Reference To Coimbatore City. International Journal of

Marketing and Technology, 3(9), 205-215

Vimala, V. & Sarala, K.S. (2014). SBI Bank Customer’s Satisfaction Towards The Use Of

Plastic Money In Shimoga District – An Empirical Study. International Journal of Social and

Allied Research, 2(3)

Vimala,V.(2012). The Impact Of Credit Cards On Hdfc Bank Customers In Shimoga – An

Evaluative Study. Abhinav: National Monthly Refereed Journal Of Research In Commerce &

Management, 2(7), 29-37

World Bank Group, (2008). Payment Systems Worldwide: A Snapshot (Outcomes of the

Global Payment Systems Survey 2008).

Yang Jiaqin, Whitefield Mike, Bhanot Rina & Johnson, Robert F. (2005). E-Banking In Rural

Area - Recent Trend And Development: A Case Study.

Walia Karan & Jain Monika (2012). Financial Sector Reforms & Their Impact On Banking

Sector. International Journal of Marketing and Technology, 2(10), 52-61

Seth Neha (2009). Banking Reforms in India – Problems and Prospect. SSRN

Roland Christian. Banking Sector Liberalization in India. Ninth Capital Markets Conference.

Indian Institute of Capital Market

Whyel, George L. (1974). Electronic Funds Transfer Systems. The CPA Journal. 15

Riquelme, Hernan E. & Rios, Rosa E. (2010). The moderating effect of gender in the adoption

of mobile banking. International Journal of Bank Marketing, 28(5), 328-341

Jurgilas Marius & Martin Antoine (2013). Liquidity-saving mechanisms in collateral-based

RTGS payment systems. Springer, 29-60

Allsopp Peter, Summers Bruce & Veale John (2009). The Evolution Of Real-Time Gross

Settlement. Financial Infrastructure Series Payment Systems Policy And Research

Nwankwo, Odi & Eze, Onyekachi Richard (2013). Electronic Payment in Cashless Economy of

Nigeria: Problems and Prospect. Journal of Management Research, 5(1), 138-151

Jha, Barun Kumar, Sureka Shilpa & Shitika (2014). Customers’ Satisfaction for ATM Services

In Bihar, India. International Journal of Interdisciplinary and Multidisciplinary Studies (IJIMS.

1(4), 42-49.

Tiwari, Aditya Kumar (2014). Imperative & challenges of mobile banking in India.

International Journal of Emerging Technology and Advanced Engineering, 5(3)

Patel Bansi & Amin Urvi (2012). Plastic Money : Roadmay Towards Cash Less Society.

Paripex - Indian Journal Of Research, 1(11), 95-99

Websites

Irshad C.V. (2014, August 16). Importance of Banks in the Development of the Country.

Retrieved from http://icv.hubpages.com/hub/IMPORTANCE-OF-BANKS-IN-THE-

DEVELOPMENT-OF-THE-COUNRTY