E Banking Services

E-Banking
CHAPTER 1
INTRODUCTION
SULLAMUSSALAM SCIENCE COLLEGE AREEKODE Page 1

E-Banking
1.1 INTRODUCTION
Now a day‟s information technology plays a vital role in banking sector. Day by day
increasing change in technology world, it leads to improve E-Banking services of various
banks. In banking industry in the past, large queues could be observed for payment utility
bills or for cash withdrawals/deposits. The banks are succeeded to reduce this queue through
uses of latest technology, but still busy common people are demanding less time methods for
banking transactions. In this regard, banks are going utilize internet facility for customer‟s
transactions. This method will reduce paper work, and will give quick response to customer
while they remain in their office or at home. It provides various advantages to customers of
various banks. Now a days people are educated more than older days, today human lives
becomes machine oriented and they don‟t have enough time to visit bank branch than even
before.
E-Banking means providing banking products and services through electronic

delivery channels like ATM, internet banking, telephone banking and other electronic
delivery channels. Internet banking highly useful to the customer one who have computer
with internet connection, they need not visit bank branch for their business transactions.
Simply they can transact anywhere, anytime if they have internet connection.by dialling the
telebanking number customer can get various facilities like cheque book request, balance
enquiry etc…E-Banking includes the system that enables the financial institution customers,
individual or business, 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 personal
computer (PC), automated teller machine (ATM), kiosk or mobile phone.
Electronic banking is a high-order construct, which consists of several distribution

channels. It should be noted that electronic banking is a bigger platform than just banking via
the internet. The term electronic banking can be described in many ways. In a very simple
form, it can mean the provision of information or services by a bank to its customers, via a
computer, television, telephone, or mobile phone (Daniel, 1999). Electronic banking has
different types of delivery channels: telephone, PC, mobile and the internet. Moreover,
Personal Computer allow customer to use all E-Banking facility at home without go to bank.
It gives customers a variety of services so they can move money between accounts, pay bills,
check balances, and buy and sell mutual funds, securities and also submit electronic loan
applications through PC Banking. A mobile banking service is the newest service in
electronic banking Customers can check their balance and make adjustments between
accounts, account transactions, payments etc. Internet is the interconnection of computer
communication networks which enable the customer to perform all the banking activities
over the internet.it is the latest wave in the information technology. The NET is changing
everything, from the way of conduct commerce and the way of distribution of information.
Several benefits of strong electronic service have also been identified as including satisfied
and retained customers, attraction of new customers, development of customer relationships,

E-Banking
increased sales and market shares, enhanced corporate image, reduced costs and increased
profit margins and business performance.
The main advantage regarding E-Banking is that is availability 24 hours a day and 7
days a week. Customer‟s perception and life style plays important role in growth of E-
Banking system.
The fact is that the customers are even not using all of E-Banking products and
services offered by the bank. So there arise the necessity for the study of customer‟s
awareness and perception towards E-Banking services.
1.2 STATEMENT OF PROBLEM

With the changing environment, banks implemented various E-Banking facilities to the
consumer‟s one after the other. It includes internet banking, mobile banking, sms banking and
telebanking etc. According to consumer‟s interest and convenience they can use the –
Banking transactions through online 24 hour services without hassle. Due to rapid change in
technology and the delivery channels have been introduced. Despite these possibilities, there
are various psychological and behavioural issues such as reluctance to change trust in one‟s
bank, security concerns, preference of human interference and like impede the growth of E-
Banking. In this regard a study has been undertaken on the topic consumer perception
towards E-Banking services with special reference to areekode block panchayath.
1.3 SIGNIFICANCE OF THE STUDY

In the light of digital India and the central government‟s initiative on cashless transaction
economy, it is relevant to study the consumer‟s perception towards E-Banking services. It is
important to be aware of the facilities and its usage and what are their concerns for not using
E-Banking. This is an attempt to know the consumer perception towards E-Banking services
with special reference to areekode block panchayath.
1.4 SCOPE OF THE STUDY

Today the customer demands the bank‟s services for 24 hours. Now in the modern age entire
banking structure has been changed due to widespread internet technology. Now all business
like commerce, trade, import, export, purchase and sale of goods is relying upon electronic
banking by using advanced electronic technology the banking services are fast and
economical.

E-Banking
1.5 OBJECTIVES OF THE STUDY

 To identify the awareness of E-Banking services.
 To know the perception towards E-Banking services.
 To study various services of E-Banking.
 To understand various problems faced by consumers while using E-
Banking services.
 To obtain suggestions for the improvement of E-Banking services.
1.6 HYPOTHESIS
H0: The educational qualification and level of awareness about E-Banking services are
independent.
H1: The educational qualification and level of awareness about E-Banking services are
dependent.
1.7 RESEARCH METHADOLOGY

Research design
The present study is designed as an exploratory research is the research conducted to know
the nature of problem and does not intend to provide a conclusion but a better idea.
Source of data
Under this study both primary and secondary data are used. The primary data is collected by
filling the questionnaire from the consumers of areekode block panchayath.
Sampling
A. Sample size: 100 samples
B. Sample area: Areekode block panchayath
C. Sampling method: Random sampling method
Tools used
A. Data collection tools:
i. Primary data: Questionnaire

ii. Secondary data: Books, journals, websites.

E-Banking
B. Data analysis tools:

For the purpose of analysis the information obtained through primary data the
tools used are percentages, weighted average, chi-square test.
C. Data presentation tools:
The tools used for presentation are tables, graphs, charts, and diagrams.
1.8 LIMITATIONS
1) The study is limited to areekode block panchayath alone.

2) Accuracy of data depends upon the information‟s provided by the respondent
3) Respondents were reluctant to respond.
4) Incomplete information from the respondents.

E-Banking
CHAPTER – 2
REVIEW OF LITERATURE

E-Banking
2.1 REVIEW OF LITERATURE
A Few studies had been made which were indirectly helpful to this investigation. Reviews of
such studies are presented below :
Meuter et.al (2000) found that Customers perceive the quality of services of Internet
banking based on the performance of online delivery systems – not on the processes in which
the delivered service is developed and produced. Because customers perceive Internet
banking service quality based on relatively standardized outcomes determined by online
systems.
Black et.all (2001) Conducted the study to know; what are the customer's perceptions about
internet banking and what are the drivers that drive consumers. How consumers have
accepted internet banking and how to improve the usage rate .The study revealed that
education, gender, income plays an important role in usage of internet banking. . The research
states that if skills can be upgraded there will be greater will to use internet banking by
consumers.
Janeetal (2004) Stated that Online banking requires perhaps the most consumer involvement,
as it requires the consumer to maintain and regularly interact with additional technology (a
computer and an Internet connection).
Riquelme (2006) Investigated that the majority of customers in the sample are satisfied or
very satisfied with the service and online systems attributes. It appears that companies that
offer a wide product portfolio and relevant website content accompanied by prompt and
courteous response create satisfaction online.

E-Banking
Srivastva (2006) Found that (1) perceived risk with online shopping, (2) past experience
with online shopping, (3) perceived benefits of online shopping, (4) perceived ease of online
shopping, and (5) perceived\ uncertainty of online shopping are the factors that affect the
customer perception regarding E-banking.
Kesseven (2007) Said that the mostly used E-Banking services are inter account transfer,
payment to other personal account, transfer to credit card account, recharge mobile phones
among others. Comparing demographic variables of the internet banking users to the non-
internet banking users, the analysis reveals that there is no significant difference between the
two group of users with respect to age group and the education level of the respondents.
Sayar et. All (2007) Discussed that the developments in information technology and the
subsequent evolution of internet banking have fundamentally changed the ways in which
banks implement their business and consumers conduct their everyday banking activities. The
results confirm the influence of internet trust on risk perception and consumer attitudes
towards internet banking. Propensity to trust is a determinant not only for interpersonal
relationships but also for trust in technological systems. This is not a representative study.
Srinivasan (2007) Investigated that in specified region of Karnataka, channel convenience,

channel control and channel security plays an important role in the selection of channels.
Some regions still see people who are struck to branch banking and are not ready for a
change in mindset. Across Telebanking was not popular since it was not perceived as a safe
and convenient channel.
Uppal R.K (2007) The study concludes that the customers of e banks are satisfied with the
different e-channels and their services in the spread of e banking services
Vardhman (2007) Said Online Banking - The Need of the Modern Professional- Internet
Banking has been so popular in the countries it has been implemented in so far due to certain
reasons. Online Banking makes the regular transactions for a client speedy and time efficient
with little or no paperwork involved. There is no need for standing in long ques any more for
making a deposit or getting a withdrawal. Banking has turned into a 24/7 service with the
bank always available to their client.

E-Banking
Safeena (2010) Determined the consumer attitude on internet banking adoption. Finding
shows that perceived usefulness, perceived ease of use, consumer awareness and perceived
risk are the important determinants of online banking adoption and have strong and positive
effect on customers to accept the online banking system.
Rao, K. Rama Mohana and Lakew, Tekeste Berhanu (2011) Examines the service quality
perceptions of customers of public sector and private sector banks in the city of
Visakhapatnam, India. The author reveals that the Reliability and Assurance dimensions of
service quality scored the highest ratings while the Tangibles dimension got the lowest score.
Moreover, the study found a strong dissimilarity in service quality perceptions between
customers of private sector and public sector banks.
Uppal, R.K (2011) Threw light on growth of information technology in various banks. The
objective of this research is to analyze the extent of technological developments in various
bank groups. Findings shows as compared to new private sector banks and foreign banks, in
public sector banks very less IT has taken place. The maximum technology is taking place in
new generation private sector banks and foreign.
Dharma lingam, S. Anand Kannan. V. (2012) Evaluated the service quality in retail
banking in the Tamil Nadu, based on different levels of customers‟ perception regarding
service quality. Data are collected from Three Private Banks, i.e. ICICI,AXIS and HDFC
Bank. The result indicates that customers‟ perception is highest in the tangibles area and
lowest in the Product Variety area.
Bahl, Sarita, (2013) Determined that security and privacy issues are the big issue in e-
banking. If security and privacy issues resolved, the future of electronic banking can be very
prosperous.
Dr. Shamsher Singh (2014) Researched on customer perception of e-banking. This paper
has examined the adoption and impact of e-banking among the customers of different banks.
The banks in India are racing to use this latest technology to reduce their operational costs
and increase customer base. E-banking is a term used for performing balance checks, account
transactions, payments etc.

E-Banking
R. Elavarasi, Dr. S. T. Surulivel (2014) Examined that mean age of e-banking users were
mostly men as compared to women. The major finding is that there is an increasing change in
technology world and it leads to improve e- banking services in various banks.
Sunil Kumar (2015) Has done a study on consumer awareness and usage of e-banking
services. The result of this research was found to be that, the consumers are not frequently
using these services but they have strong desire to use these services in future. The present
study is being undertaken to analyze how the banks have been exploring the feasibility of
using mobile phones as an alternative channel of delivery of banking services.

E-Banking
CHAPTER – 3
THEORETICAL FRAMEWORK

E-Banking
3.1 ELECTRONIC BANKING
Meaning
E-banking, also known as internet banking, online banking or virtual banking is an

electronic payment system that enables customers of a bank or other financial institution to
conduct a range of financial transactions through the financial institution‟s website. To
access a financial institution‟s online facility, a customer with internet access would need
to register with the institution for the service, and set up a password and other credentials
for the verification. For other E-banking facilities, necessary procedures are to be done
according to banker‟s instructions. For the use of ATM facility, the card must be availed.
There are two ways to offer Internet banking. First, an existing bank with physical offices
can establish a web site and offer Internet banking in addition to its traditional delivery
channels. Second, a bank may be established as a “branch less, Internet only, or virtual
bank” without any physical branch.
3.2 HISTORY OF E –BANKING

The origin of the modern online banking services was the distance banking
services over electronic media from the early 1980s. The term „online‟ became popular in
the late 1980s and referred to the use of a terminal, keyboard and TV (or monitor) to
access the banking system using a phone line. Online services started in New York in
1981 when four of the city‟s major banks (Citibank, Chase Manhattan, Chemical and
Manufacturers Hanover) offered home banking services using the videotext system.
Because of the commercial failure of these banking services never became popular except
in France where the use of videotext (Minitel) was subsidized by the telecom provider and
the UK, where the Prestel system was used. The UK‟s first home online banking service
was known as Homelink and it was set up by Bank of Scotland for customers of the
Nottingham Building Society (NBS) in 1983. The system used was based on the UK‟s
Prestel view link system and used a computer, such as the BBC Micro, or keyboard
(Tandata Td1400) connected to the telephone system and television set.
The system allowed on-line viewing of statements, bank transfers and bill
payments. In order to make bank transfers and bill payments, a written instruction giving

E-Banking
details of the intended recipient had to be sent to the NBS who set the details up on the
Homelink system. Typical recipients were gas, electricity and telephone companies and
accounts with other banks. Details of payments to be made were input into the NBS
system by the account holder via Prestel. BACS was later used to transfer the payment
directly. Stanford Federal Credit Union was the first financial institution to offer online
internet banking services to all of its members in October 1994.
Today, many banks are internet only banks. They typically differentiate themselves
by offering better interest rates and more extensive online banking features. In India, the
ICICI was the first bank introduced online banking facility and which was in 1996.
3.3 IMPORTANCE OF E- BANKING IN THE PRESENT INDIA
E -banking is information technology based banking. Under this system, the banking
services are delivered by a computer-controlled system. In India, E-banking is of fairly
recent origin. In this fast moving technological world, every human activity is transforming
to technology based, and the human life style also changed with this a lot of. So, a speed
and convenient system is necessary in the banking sector also. Here comes the use and
effectiveness of e- banking with the present world‟s requirements.
E -banking ensures 24 hours of service to its customers. The cost of transactions and effort
for the access is negligibly small compared to the traditional banking system. The Indian
government has put a reasonable care to this system and announced various programs and
schemes like Digital India, Jan dhan yojana, Adhar linking with bank accounts, cashless
economy initiatives etc. It is hopeful that Indian banking sector is fairly mature and also
they are trying to make innovations in this sector. The shops keepers are very willing to
install the POS swiping facility to simplify the money transactions with customers and
dealers.
3.4 SALIENT FEATURES OF E-BANKING

The salient features of Internet Banking in India enlisted below:
 Easily adoptable by customers.
 Easy to deploy and maintains.
 Cost effective solution.

E-Banking
 Enables the bank to reach its customers on the net.
 Reduce rush at the counters of the bank.
 Enables the customers of the bank to access information from anywhere and at any
time.
 Balance and transaction history search.
 Order new statements.
 Mobile banking.
 Money Transfers.
 Pay bills with PAYTM or others.
 Receive bills online, view and make payments electronically.
 Pay anyone payments.
 SMS banking services
3.5 BENEFITS OF E- BANKING
Benefits for Customers:-
 Convenient banking.
 Customized products and services.
 Easy access.
 Low cost and save time.
 Round the clock availability.
 Elimination of waiting time.
 Avoid travelling to and from a bank.

E-Banking
 Privacy.
 Ease of shopping around for best price.
 Information gateway.
 Financial planning capability.
 Offers new value to customers.
Benefits for Banks:-
 Lower cost per transaction.

 Increase customer relationship.
 Create customer loyalty.
 Reduce errors, time consumed and overhead charges.
 Ability to customize products and services as per customer‟s requirements.
 Ability to access a large market.
 Reach new segments of the population.
 Minimum physical infrastructure requirement.
 Increase customer knowledge.
 Eliminate the waste paper.
 Increase in flexibility and the opportunities for improved service .
3.6 DRAWBACKS OF E- BANKING
 The complex encryption software is used to protect the account information. Even
though, there are no perfect systems. So, the accounts are prone to the hacking
attacks, the phishing, the malware and the illegal activities.
 The online banking is generally secure. But, it is not always secure. Even the banks
do not have confidence in their security system.
 Personal relationship with bank and staffs cannot be utilized for special benefits,
acquiring loans and financial advices.
 The customer service can be below the expected quality.

E-Banking
 Lack of implementing advanced technologies and services like developed

countries.
 If any problem occurred to internet or system, the customer must wait until its back
up for accessing account.
 Much type of online transactions take up to 3 to 4 days to settle, especially when
you make deposit by mailing cheques.
 When online link goes down, you cannot resort to any alternative system to get
your transactions processed.
 Increasing number of fraudulent websites.
3.7 TOOLS, PRODUCTS AND SERVICES OF E-BANKING
3.7.1 TOOLS OF E- BANKING
 AutomatedTeller Machine
The Automated Teller Machines are computerized telecommunication device that provides
a financial institutions customers a method of financial transactions in a public space
without the need for a human clerk or bank teller. These are meant for balance enquiries,
cash withdrawals and many other facilities depending upon policies of the bank. This
requires a valid Customer Id and password to log in and is therefore safe to be used.
 Debit Card
Debit Cards is another advanced technology of the electronic banking. Now-a-days, these
cards are the multi-purpose cards and can be used in ATMs for balance enquiry and cash
withdrawal or can be used for easy shopping at various counters. Debit Cards ensure the
automatic deduction of amount from the account just by scratching it on the machine.

E-Banking
 Credit Card
A credit card system is a type of retail transaction settlement and credit system, named after
the small plastic card issued to users of the system. In the case of credit cards, the issuer
lends money to the consumer. Credit cards become very popular in India with the
introduction of foreign banks in the country.
 Smart Card
A Smart card is a plastic card used for storing and retrieving personal information.
Normally, it is the size of a credit card and contains electronic memory and possibly an
embedded integrated circuit .
 Kiosk machine
A kiosk is a small, free structure that displays information or provides a service. Kiosks can
be manned or unmanned , and unmanned kiosks can be digital or non- digital. In business,
kiosks are often used in locations with highfoot traffic. In shopping mall ,for example an
unmanned ,non –digital kiosk can be placed near entrances to provide people passing by
with directions or promotional messaging .manned kiosks temporarily set up in aisels can
provide businesses that have seasonal sales cycles with a cost effective way to display
wares, and digital kiosks placed near movie theatres can provide online banking or ticket
sales services.
3.7.2 E-BANKING SERVICES

 Online Bill Payment Service
Each bank has tie - ups with various utility companies,service providers and
insurance companies, across the country. You can facilitate payment of electricity
and telephone bills, mobile phone and insurance premium bills . To pay your bills,
all you need to do is complete a simple one-time registration for each biller. You can
also set up standing instructions online to pay your recurring bills, automatically.
Generally, the bank does not charge customers for online bill payment.

E-Banking
 Fund Transfer
You can transfer any amount from one account to another of the same or any
another bank. Customers can send money anywhere in India. Once you login to your
account, you need to mention the payee‟s account number, his bank and the branch.
The transfer will take place in a day or so, whereas in a traditional method, it takes
about three working days.
Types of fund transfer
 EFT
It is the electronic transfer of money from one bank account to another , either
within a single financial institution or across multiple institutions,via computer
based systems , without the direct intervention of bank staff.
 NEFT
National electronic fund transfer (NEFT) is a nation- wide payment system
facilitating one to one funds transfer. Under this scheme ,individuals can
electronically transfer funds from any bank branch to any individual having an
account with any other bank branch in the country participating in the scheme .it
operates on a deferred net settlement (DNS) basis which settles transactions in
batches .There is no minimum limit and maximum limit is 10 lakhs .
 RTGS
It is the electronic payment system that allows individuals to transfer
funds between banks . it is based on gross settlements where transaction
is settled on an instruction basis The minimum limit of transactions is 2
Lakhs and maximum limit is 10lakhs.
 UPI
It is a payment system launched by national payment corporation of india and
regulated by the reserve bank of india which facilitates the instant fund transfer
between two bank accounts on the mobile platform. It is built over (imps) for
transferring funds using virtual payment address,account number with IFS
Code,mobile number with MPIN.

E-Banking
 Shopping At Your Fingertips

Leading banks have tie ups with various shopping websites. With a range of all kind
of products, you can shop online and the payment is also made conveniently through
your account. You can also buy railway and air tickets through Internet banking.
 Credit Card Customers

With Internet banking, customers can not only pay their credit card bills online but
also get a loan on their cards. If you lose your credit card, you can report lost card
online.
 Ticket Booking
Internet banking provides the facility to book various tickets like railway, air
tickets, movie tickets and other programs entry passes through online by making tied
up with those parties.
 Investing Through Internet Banking
You can open an FD online through funds transfer. Now investors with interlinked
demat account and bank account can easily trade in the stock market and the amount
will be automatically debited from their respective bank accounts and the shares will
be credited in their demat account. Moreover, some banks even give you the facility
to purchase mutual funds directly from the online banking system. Nowadays, most
leading banks offer both online banking and demat account. However if you have
your demat account with independent share brokers, then you need to sign a
special form, which will link your two accounts.
 Recharging Your Prepaid Phone

Now, we can top-up our prepaid mobile phones by logging in to Internet banking.
By just selecting your operator‟s name, entering your mobile number and the
amount for recharge, your phone is again back in action within few minutes.

E-Banking
 Lending
E-banking allows the customers the ability to apply for loans online. Make
immediate loan decisions and give an on-the-spot response. Our interactive loan
decisions are based on financial institution‟s own decision criteria and the
applicant‟s real time credit bureau data at all major credit bureaus.
 Imaging
Internet banking provides customers fast, easy and secure electronic access to their
check images and statements, it is convenient for them from home or office.
 Account Alerts
E-banking gives the financial institution the opportunity to notify customers with
real time email account alerts. Customers define real-time, “tell me when” alerts that
notify them when a check clears an account: an account balance threshold is met;
and/or a specified transaction activity occurs. This solution is the perfect add-on to
Internet Banking solution, enabling a financial institution to truly leverage 24/7
online banking channel
 .Account Opening & Funding

E-banking provides an automated online account opening and funding process for
new accounts. Automating real-time account opening and funding allows you to
lower account opening costs by minimizing costly manual processes and making
products and services available to consumers 24/7.
3.8 Types of e banking
 Internet banking
Internet banking is the use of internet as a delivery channel for the bankingservices,
including traditional services, such as opening an account, or transferring funds among
different accounts, as well as new banking services such as electronic bill presentment and
payment, which allow the customers to pay and receive the bills on a bank's web site. There
are two ways to offer internet banking. First, an existing bank with physical offices can

E-Banking
establish a web site and offer internet banking in addition to its traditional delivery
channels. Second, a bank may be established as a 'branchless',' Internet only', or 'virtual'
bank. The Reserve Bank of India constituted a working group on Intemet Banking.
 Mobile banking
Mobile banking is a service provided by a bank or other financial institution that allows its
customers to conduct financial transactions remotely using a mobile device such as asmart
phone or tablet .it uses software ,usually called app, provided by the financial institution for
the purpose. It is available on a 24 hour basis.
 Sms banking
It is a form of mobile banking. It is a facility used by some banks or other financial

institutions to send messages (also called notifications or alerts) to customers mobile phones
using sms messaging, or a service provided by them which enables customers to perform
some financial transactions using sms.
 Telephone banking
Telephone banking is one of the most popular banking .it is a service provided by a bank or
other financial institution, that enables customers to perform a range of financial
transactions over the telephone, without the need to visit a bank branch or ATM . it cannot
be used for cash documents (such as cheques ) for which customers must visit an ATM or
bank branch.
3.9 PROGRESS OF E-BANKING IN INDIA
The internet banking in India is growing steadily with the increasing number of
internet users and smart phones. It is growing across a deep and wide demographic that
includes age, income, gender, culture. The number of credit and debit cards in India is
steadily rising but Indians still prefer debit cards over credit cards. In March 2016, a total of

E-Banking
24.51 million credit cards and 661.8 million debit cards were in operation, according to the
Reserve Bank of India. It is estimated that the cost to the bank per transaction done over the
Internet is nearly one eighth of that done through branch banking.
3.10 THE FUTURE SCENARIO
Compared to banks in abroad, Indian banks offering online services still have a long way to
go. For online banking to reach a critical mass, there has to be sufficient number of users
and the sufficient infrastructure in place. Though various security options like line
encryption, branch connection encryption, firewalls, digital certificates, automatic signoffs,
random pop-ups and disaster recovery sites are in place or are being looked at, there is as yet
no Certification Authority in India offering Public Key Infrastructure which is absolutely
necessary for online banking.
The customer can only be assured of a secured conduit for its online activities if an
authority certifying digital signatures is in place. The communication bandwidth available
today in India is also not enough to meet the needs of high priority services like online
banking and trading. Banks offering online facilities need to have an effective disaster
recovery plan along with comprehensive risk management measures. Banks offering online
facilities also need to calculate their downtime losses, because even a few minutes of
downtime in a week could mean substantial losses.
Some banks even today do not have uninterrupted power supply unit or systems to
take care of prolonged power breakdown. Proper encryption of data and effective use of
passwords are also matters that leave a lot to be desired. Systems and processes have to be
put in place to ensure that errors do not take place. Even though there is a wide scope of
market in India for e-banking services if the banks and government initiate with stronger
decisions. The security features against hacking could be more hard and better. In 1.3
billion of population, there is a larger opportunities of E-banking by reaching at the every
customers with the help of internet.

E-Banking
CHAPTER 4
ANALYSIS AND INTERPRETATION

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GENDER WISE CLASSIFICATION

Table no: 4.01
Gender Number of respondents Percentage
Male 52 52
Female 48 48
Total 100 100
Source: Primary data
Chart no: 4.01
Female
48%
Male
52%
INTERPRETATION
Male respondents are more than female respondents; they constitute 52 per cent and only 48
per cent from female respondents.

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EDUCATIONAL QUALIFICATION OF RESPONDENTS
Table no: 4.02

Education qualification Number of respondents percentage
Up to SSLC 22 22
HSC 27 27
UG 20 20
PG 17 17
Others 14 14
Total 100 100
Source: primary data
Chart no: 4.02
30
25
20
15
percentage
10
0
Up to SSLC UG PG Others
HSC
INTERPRETATION
27 per cent are studied up to HSE and 17 per cent are post graduates.20 % is graduates. It is
clear that majority of respondents aware of E-Banking services because they are educated.

E-Banking
OCCUPATION OF REPONDENTS
Table no: 4.03
Occupation Number of respondents Percentage
Gov. employee 18 18
Private employee 46 46
Self employed 15 15
Others 21 21
Total 100 100
Chart no: 4.03
50
45
40
35
30
25
20 Percentage
15
10
5
0
Gov. employee Private Self employed Others
employee
INTERPRETATION
It is clear from the table that 46 % of the respondents are private employees. Only 18 per cent
of respondents are fall in the category of Govt. employee. It is clear that the maximum
Number of persons can adopt E-Banking services because of their busy daily life.

E-Banking
ANNUAL INCOME OF RESPONDENTS

Table no: 4.04
Annual income No. of respondents Percentage
Below 1 lakh 52 52
1 lakh – 3 lakh 40 40
3- 5 lakh 8 8
Total 100 100
Chart no: 4.04
60
50
40
30 Percentage
20
10
0
Below 1 lakh 1 lakh – 3 3- 5 lakh
lakh
INTERPRETATION
52 per cent of respondents are having the annual income of below 1 lakh. Only 8 per cent
respondents are earning above 3 lakh. At the same time 40 per cent respondents are earning
1-3 lakh.

E-Banking
BANK ACCOUNT OF CONSUMERS

Table no: 4.05
Category No. of respondents Percentage
SBI 49 49
Federal 20 20
HDFC 16 16
Others 15 15
Total 100 100
Chart no: 4.05
60
50
40
30
Percentage
20
10
0
SBI Federal HDFC Others
INTERPRETATION
Among the total respondents,49 % of respondents are the customers of SBI,20 % respondents
are Federal bank,16 % of respondents are the customers of HDFC,15 % of them are
customers of others banks.

E-Banking
TYPE OF BANK ACCOUNT

Table no. 4.06
Type of bank account No. of respondents percentage
Savings a/c 80 80
Current a/c 4 4
Recurring deposit a/c 6 6
Fixed deposit a/c 10 10
Total 100 100
Chart no: 4.06
Fixed deposit a/c
Recurring deposit a/c
percentage
Current a/c
Savings a/c
0 20 40 60 80 100
INTERPRETATION
From the above table that is clear that most (80 per cent) customers have savings account in
the bank. Savings accounts are mainly opened for increasing saving habits of the people.10
per cent have fixed deposits. Only 4 per cent have current account. Current accounts are
mainly opened by the business man

E-Banking
DURATION OF USING BANKING SERVICES

Table no: 4.07
Period No. of respondents percentage
< 1 year 13 13
1-2 year 23 23
2-3 year 17 17
>3 year 47 47
Total 100 100
Chart no: 4.07
< 1 year
13%
>3 year 1-2 year

47% 23%
2-3 year
17%
INTERPRETATION
The analysis reveals that 47 per cent of respondents are using banking services for more than
3 years. Only 13 per cent of them are using banking services for less than 1 year.

E-Banking
AWARNESS ABOUT E-BANKING SERVICES

Table no: 4.08
Response No. of respondents percentage
Yes 74 74
No 26 26
Total 100 100
Chart no: 4.08
No
26%
Yes
74%
INTERPRETATION
Most of the customers are aware about E-Banking services. At the same time 26 per cent of
customers are not aware of E-Banking services. They are aware about ATM only. Mainly
educated respondents are aware about E-Banking services provided by the bank.

E-Banking
SOURCE OF KNOWING E-BANKING SERVICES

(RANKING)
Table no: 4.09
source Rank 1 Rank 2 Rank3 Rank 4 Rank 5
Bank officials 32 20 8 32 8
Advertisement 20 8 32 20 20
Family 8 44 8 20 20
Friends 20 20 32 20 8
Others 20 8 20 8 44
Source Ran Ran Rank Rank Rank Mean square Rank

k1 k2 3 4 5
Bank officials 160 80 24 64 8 2.52 5
Advertisement 100 32 96 40 20 2.88 3
Family 40 176 24 40 20 3 2
Friends 100 80 96 40 8 3.24 1
Others 100 32 60 16 44 2.36 4
Chart no: 4.09
6
5
4
3
2
Rank
1
0
INTERPRETATION
Most customers came to know E–Banking services from friends and secondly from families.
3rd rank goes to advertisement .Last rank goes to others. They came to know E-Banking
services also from other services include co-workers.

E-Banking
LEVEL OF AWARENESS ABOUT VARIOUS E-

BANKING SERVICES
Table no: 4.10
SERVICES HW A N LA HNA Percentage
Online bill 210 88 57 22 6 77

payment
Fund 180 112 24 22 17 71
transfer
Ticket 145 132 42 24 12 71
booking
Shopping 210 108 33 24 8 77
Lending 100 76 42 40 27 57
Recharging 320 80 9 22 2 87
Chart no: 4.10
100
90
80
70
60
50
40
30
20 Percentage
10
0
INTERPRETATION
Most of the customers (87per cent) are highly aware about recharging service.77 per cent of
customers are aware about online bill payment.71 per cent of respondents are aware about
fund transfer and ticket booking. Only 57 per cent of customers are aware about lending
services provided by the bank.

E-Banking
MOST FAMILIAR FUND TRANSFERS

Table no: 4.11
Category No. of respondents Percentage
EFT 50 50
RTGS 22 22
UPI 9 9
NEFT 19 19
Total 100 100
Chart no: 4.11
NEFT
19%
UPI EFT
9% 50%
RTGS
22%
INTERPRETATION
Among the total respondents, 50 % of respondents are more familiar with EFT (Electronic
fund transfer), 22 % of respondents are familiar with RTGS (Real time gross settlement), 19
% of respondents are familiar with NEFT (National electronic fund transfer), and remaining
are familiar with UPI (United payment scheme).

E-Banking
USAGE OF BANKING SERVICES

Table no: 4.12
Use No. of respondents percentage
Regularly 14 14
Often 39 39
Occasionally 25 25
Sometimes 14 14
Rarely 8 8
Total 100 100
Chart no: 4.12
40
35
30
25
20
15 percentage
10
INTERPRETATION
It is clear from the table that 39 per cent of respondents are using E-Banking often.14 per cent
respondents are using regularly.8 per cent of respondents are rarely using E-Banking service.
This is because of their unawareness about using E-Banking services.

E-Banking
E-BANKING SERVICES PERSONALLY ADOPTED

Table no: 4.13
E-Banking services No. of respondents that are personally
adopted
ATM/debit cards 100
Mobile banking 22
Internet banking 26
Cash deposit machine 56
Credit card 24
Tele banking 9
Any other 46
Chart no: 4.13
100
90
80
70
60
50
40
30 No. of respondents that are
personally adopted
20
10
0
INTERPRETATION
From the above table it is clear that all respondents have ATM card. Only are using mobile
banking facility. Credit card facility is using by only 24 persons. Cash deposit machine is
using by 56 persons. 46 persons are using other E-Banking services like SBI buddy, self-
service kiosk etc.

E-Banking
INFLUENCING FACTORS TO PREFER BANKING

SERVICES
Table no: 4.14
Factors SA A N DA SDA percentage
Easy 280 156 15 0 0 90

Accessibility
Time saving & 250 124 33 12 2 64.2
money saving
Innovative and 60 72 160 16 6 64.4
efficient services
Ensure security 190 224 15 2 0 82.2
Relevance after 75 72 156 26 2 66.2

demonetization
Chart no: 4.14
90
80
70
60
50
40
30
20
10 percentage
0
INTERPRETATION
As per the opinion of the respondents, highest influencing factor is easy accessible (90%),
next most influencing factor is ensure security (86%), and third influencing factors are both
time saving, money saving and efficient services(64 %), and the least influencing factor is
demonetization

E-Banking
LIMITING FACTORS FACED BY CUSTOMERS

WHILE OPERATING TRANSACTION (RANKING)
Table no: 4.15
Factors Rank1 Rank2 Rank3 Rank
4
Fear about security 56 32 11 1
Lack of through knowledge 35 25 22 18
Networking problem 44 29 18 9
Pseudo massages received 36 45 12 7
Factors Rank1 Rank2 Rank3 Rank4 Mean Rank

square
Fear about security 224 96 22 1 3.43 1
Lack of through knowledge 140 75 44 18 2.77 4
Networking problem 176 87 36 9 3.28 2
Pseudo massages received 144 135 24 7 3.1 3
Chart no: 4.15
4.5
4
3.5
3
2.5
2
1.5 Rank
1
0.5
0
Fear about Lack of Networking Pseudo
security through problem massages
knowledge received
INTERPRETATION
As per the opinion of respondents, highest limiting factor is fear about security, second
limiting factor is networking problem, third limiting factor is pseudo massages received, and
the lowest limiting factor is lack of through knowledge.

E-Banking
OPINION ABOUT VARIOUS FACTORS REGARDING

E-BANKING SERVICES
TABLE NO: 4.16
Factors Very low Low Average High Very Percentage
high
Overall trust 0 4 147 160 45 71.2
Trust in 2 40 174 64 20 60
technology
Security 0 22 177 80 40 64.2
form
Fraud 0 8 129 184 35 72.4
24 hour 0 18 54 112 225 81.8

service
Chart no: 4.16
90
80
70
60
50
40
30
Percentage
20
10
0
INTERPRETATION
As per the opinion of respondents, 24 hour service is the factor that leads the respondents to
use E-Banking services (82%), other factor is fraud, then third factor is overall trust, and the
last factor leading to is overall trust in technology.

E-Banking
CHI – SQUARE TEST
HO: The educational qualification and level of awareness about E-Banking

services are independent.
Table no: 4.17

Not aware Not aware Total
SSLC 2 14 16
HSC 11 10 21
UG 22 2 24
PG 21 0 21
OTHERS 18 0 18
Total 74 26 100
O E (O-E)2/E
2 11.84 8.177
11 15.54 1.326
22 17.76 1.012
21 15.54 1.918
18 13.32 1.644
14 4.16 23.27
10 5.46 3.775
2 6.24 2.881
0 5.46 5.46
0 4.68 4.68
Calculated value, x2 = ∑ (O-E) 2/E
=54.143
Degree of freedom = (c-1) (r-1) = 4
Table value at 5 per cent level of significance for 4 degree of freedom is 9.49.The calculated
value is more than the table value. Therefore the null hypothesis rejected. Therefore the
educational qualification and level of awareness about E-Banking Services are independent.

E-Banking
CHAPTER 5
FINDINGS, SUGGESTIONS AND
CONCLUSIONS

E-Banking
5.1 FINDINGS
It is found that majority of the respondents are aware about E-Banking services provided by
the BANK. But only some of the respondents are using these services. Major findings are;
 ATM is the most preferred E-Banking service to the respondents.

 80% of the respondents are using savings bank deposit of the bank.
47% of the people are started to using E-Banking services from more than 3 year.
This is because most of the people are using at least ATM facility provided by the
bank.
 Majority of the respondents are aware the E-Banking services from their friends and
relatives.
 87% of respondents are aware about recharging service provided by the bank.50 % of
the respondents is more familiar with EFT.
 39% of respondents using E-Banking service in often.
 Only some respondents are using internet banking and mobile banking facility. Most
of them aware about mobile banking and internet banking even though they are not
using such facilities.
 90% of the respondents have the opinion the most influencing factor is that it is easily
accessible.
 The limiting factors faced by consumers while operating E-Banking services are fear
about security and networking problem.
 The opinion about E-Banking services by the respondents is 24 hours service, and
trust in technology.
 The educational qualification and level of awareness of E-Banking services are
dependent. Because they can know more about E-Banking services.

E-Banking
5.2 SUGGESTIONS
Suggestions from the study
 Bank should give awareness to their customers to use more of E-

Banking services.
 Motivate the customers to use E-Banking services.
 Make the site more users friendly.
 Create a trust in the minds of consumers towards the security issues.
 Avoid networking problem with proper technologies as it creates
delay in transactions.
 E-Banking system should be enhanced to make the online enquiry
and online payment much easier to consumers.
 Promote the use of fund transfers as many of them are aware of it.
Suggestions from the respondents
 Reduce the charges levied for the use of E-Banking services.

 Bring innovative developments into E-Banking so that it creates an
interest to use E-Banking services.
 Provide more offers and discounts for all products by the use of
cards.
 More advertisement should be made in print Medias, television
channels etc.to aware general public.
 The bank should take necessary steps of create awareness among
rural people about the advantages of E-Banking.
 Give opinion to change the address provided in E-Banking.

E-Banking
CONCLUSION
E-Banking has become a necessary survival weapon. Today, the click of the
mouse offers customers banking services at a much lower cost and also empowers them with
unprecedented freedom in choosing vendors for their financial service needs. Banks have to
upgrade and constantly think of new innovative customized packages and services to remain
competitive. Banks have come to realize that survival in the new E-Economy depends on
delivering some or all of their banking services on the internet while continuing to support to
support their banking traditional infrastructure. The rise of E-Banking is redefining business
relationships and the most successful banks will be those that can truly strengthen their
relationship with their customers .without any doubt, the international scope of E-Banking
provides new growth perspectives and internet business is a catalyst for new business
processes.
Most of the customers are aware about E-Banking services but they hesitate to use it and
some customers are unaware about all E-Banking services provided by the bank. So the bank
should take some measures for removing such hesitation of customers and for increasing
awareness among public about the E-Banking products and services.

E-Banking
BIBLIOGHRAPHY
BOOKS
1. SOHANI AK and RAO NAGESWARA KATURI ,innovations in banking
,HYDERBAD :THE ICFAI UNIVERSITY PRESS 2008
2. KOTHARI CR :Research Methodology: methods and techniques, 2nd Edition New
Age International Publishers, New Delhi(2009)
3. TULSIAN P, VISHAL PANDEY C; quantitative techniques, Pearson education new
Delhi, (2004)
JOURNALS
 International journal of multidisciplinary research vol.2 issue January
2012,issue,January 2012 ,issue 22315780
 International journal of scientific and research publications vol.3, issue 9,September
2013
 International journal of innovative research and development
 International journal of commerce and management research
WEBSITES
https://www.scribd.com
https://www.slideshare.com
https://www.wikipedia.com

E-Banking
APPENDIX

E-Banking
QUESTIONNAIRE
Dear sir/madam,
I am Mubeena T of fourth semester M.com finance student of sullamussalam science college

Areekode and I am conducting a project on “CONSUMER PERCEPTION TOWARDS E
BANKING SERVICES “. I would be obliged if you kindly fill up the questionnaire which is
required for collecting data for my project. I assure you that I will keep the information
confidential and use only for my academic purpose.
1. Name
2. Age
3. Gender Male Female
4. Educational qualification
Up to SSLC HSE
UG PG
OTHERS
5. Occupation
Govt. employee Private employee
Self-employed others
6. Annual income
Below 1 lakh 1-3 lakh 3-5 lakh
7. In which bank you have account?
SBI Federal bank HDFC
Others
8. Type of your bank account?
Saving a/c Current a/c
Recurring deposit a/c Fixed deposit a/c
9. How long have you using banking services?
Less than 1 year 1-2 year 2-3 year
More than 3 year

E-Banking
10. Do you have any awareness among e-banking services?
Yes No
11. If yes, how did you come to know about e-banking services?
From bank officials from advertisement
From family members from friends
Others
12. Rate your level of awareness about various e-banking services?
E-banking services Highly Aware Neutral Less Not aware

aware aware
Online bill payment
Fund transfer
Ticket booking
Shopping
Lending
Recharging
13. Among these which fund transfer are more familiar to you?
EFT (Electronic Fund Transfer) RTGS (Real Time Gross

Settlement)
UPI (Unified Payment Scheme transfer NEFT (National Electronic Fund
Transfer)
14. How often do you use e-banking services?
Regularly Often Occasionally
Sometimes Rarely
15. The E-banking services that you have personally adopted
Internet banking Mobile banking ATM
Cash deposit machine Self-service kiosk Telebanking
Credit card any other (please specify)

E-Banking
16. Which are influencing factors encourages you to prefer E-banking services?
Influencing factors Strongly Agree Neutral Disagree Strongly

agree disagree
Easy Accessibility
Time saving & money saving
Innovative and efficient service
Ensure security
Relevance after demonetization
17. Rank the following Limiting factors faced by customer while operating transactions?
(Rank from 4(high) to 1(low).
Limiting factor Rank

Fear about
Security
Lack of through knowledge
Networking problem
Pseudo massages received
18. Rate your opinion about various factors regarding E-banking services?
Factors Very low Low Average High Very

high
Overall trust
Trust in technology
Ease of use
Security form
Fraud
24 hour service
19. Your suggestion for improvement of E-banking services
-------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------
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E-Banking

SULLAMUSSALAM SCIENCE COLLEGE AREEKODE Page 1

E-Banking means providing banking products and services through electronic

Electronic banking is a high-order construct, which consists of several distribution

SULLAMUSSALAM SCIENCE COLLEGE AREEKODE Page 2

1.2 STATEMENT OF PROBLEM

1.3 SIGNIFICANCE OF THE STUDY

1.4 SCOPE OF THE STUDY

SULLAMUSSALAM SCIENCE COLLEGE AREEKODE Page 3

1.5 OBJECTIVES OF THE STUDY

1.7 RESEARCH METHADOLOGY

A. Data collection tools:

i. Primary data: Questionnaire

SULLAMUSSALAM SCIENCE COLLEGE AREEKODE Page 4

B. Data analysis tools:

C. Data presentation tools:

1) The study is limited to areekode block panchayath alone.

SULLAMUSSALAM SCIENCE COLLEGE AREEKODE Page 5

SULLAMUSSALAM SCIENCE COLLEGE AREEKODE Page 6

2.1 REVIEW OF LITERATURE

SULLAMUSSALAM SCIENCE COLLEGE AREEKODE Page 7

Srinivasan (2007) Investigated that in specified region of Karnataka, channel convenience,

SULLAMUSSALAM SCIENCE COLLEGE AREEKODE Page 8

SULLAMUSSALAM SCIENCE COLLEGE AREEKODE Page 9

SULLAMUSSALAM SCIENCE COLLEGE AREEKODE Page 10

SULLAMUSSALAM SCIENCE COLLEGE AREEKODE Page 11

3.1 ELECTRONIC BANKING

E-banking, also known as internet banking, online banking or virtual banking is an

3.2 HISTORY OF E –BANKING

SULLAMUSSALAM SCIENCE COLLEGE AREEKODE Page 12

3.3 IMPORTANCE OF E- BANKING IN THE PRESENT INDIA

3.4 SALIENT FEATURES OF E-BANKING

 Easy to deploy and maintains.

 Cost effective solution.

SULLAMUSSALAM SCIENCE COLLEGE AREEKODE Page 13

 Enables the bank to reach its customers on the net.

 Reduce rush at the counters of the bank.

 Balance and transaction history search.

 Order new statements.

 Pay bills with PAYTM or others.

 Receive bills online, view and make payments electronically.

 Pay anyone payments.

 SMS banking services

3.5 BENEFITS OF E- BANKING

Benefits for Customers:-

SULLAMUSSALAM SCIENCE COLLEGE AREEKODE Page 14

Benefits for Banks:-

 Lower cost per transaction.

3.6 DRAWBACKS OF E- BANKING

SULLAMUSSALAM SCIENCE COLLEGE AREEKODE Page 15

 Lack of implementing advanced technologies and services like developed

3.7 TOOLS, PRODUCTS AND SERVICES OF E-BANKING

3.7.1 TOOLS OF E- BANKING

SULLAMUSSALAM SCIENCE COLLEGE AREEKODE Page 16

3.7.2 E-BANKING SERVICES

SULLAMUSSALAM SCIENCE COLLEGE AREEKODE Page 17

Types of fund transfer

SULLAMUSSALAM SCIENCE COLLEGE AREEKODE Page 18