SL. NO. TOPIC PAGE NO.

EXECUTIVE SUMMERY 6

1. ➢ CHAPTER I – INTRODUCTION 7-13

-What •is online banking? 7

-Features of Online Banking? 7-8

-History of online banking. 8

-History of online banking in India. 9

-ADVANTAGES OF ONLINE BANKING 9

-DISADVANTAGES OF ONLINE BANKING 9-10

-WHAT IS E-COMMERCE? 10-11

-OPPORTUNITIES OF ONLINE BANKING 11

-CHALLENGES OF ONLINE BANKING IN INDIA 11-12

-PROBLEM RELATING TO ONLINE BANKING 12-13

2. ➢ CHAPTER-II – OBJECTIVE 14

3. ➢ CHAPTER- III – CONCEPTUAL FRAMEWORK 15-19

4. ➢ CHAPTER-IV – DATA ANALYSIS 20-26

5. ➢ CHAPTER-V– RECOMMENDATIONS AND CONCLUSIOIN 27

6. ➢ CHAPTER-VI – REFERANCES 28

5
 EXECUTIVE SUMMERY

Technological developments have been growing at an alarming speed in the

international arena. Internet is proudly one of the best in those. So, the banking sector is
also making the best utilization of it. In this study based on online banking, it has been
observed that the development of online banking has increased by leaps and bounds
during the year. Concentrating on the Indian economy , the use of online banking is still
in developing stage.
Today in India the scope of online banking is growing by good decent rise in usage.
The rise in the use of internet is the main criteria for development of online banking.

This project will help us to understand how the online banking came into existence
and its need in modern world. It shows us the insights of the online banking in India. It
shows us the insight of online banking in India. It helps us to understand the opportunity
and the challenges related to online banking sector in India.

6
 CHAPTER : I
INTRODUCTION

WHAT IS ONLINE BANKING?

Online banking is an electronic payment system that enables customers of a financial

institution to conduct financial transactions on a website operated by the institution,
such as a retail bank, virtual bank, credit union or building society. Online banking is
also referred as Internet banking, e-banking, virtual banking and by other terms.
To access a financial institution's online banking facility, a customer with Internet access
would need to register with the institution for the service, and set up some password
(under various names) for customer verification. The password for online banking is
normally not the same as for telephone banking. Financial institutions now routinely
allocate customers numbers (also under various names), whether or not customers
have indicated an intention to access their online banking facility. Customers' numbers
are normally not the same as account numbers, because a number of customer
accounts can be linked to the one customer number. The customer can link to the
customer number any account which the customer controls, which may be cheque,
savings, loan, credit card and other accounts. Customer numbers will also not be the
same as any debit or credit card issued by the financial institution to the customer.
To access online banking, a customer would go to the financial institution's secured
website, and enter the online banking facility using the customer number and password
previously setup. Some financial institutions have set up additional security steps for
access to online banking, but there is no consistency to the approach adopted.
Online banking facilities offered by various financial institutions have many features and
capabilities in common, but also have some that are application specific.

FEATURES OF ONLINE BANKING.

The common features fall broadly into several categories:

A bank customer can perform non-transactional tasks through online banking,

including -

• viewing account balances

• viewing recent transactions
• Downloading bank statements, for example in PDF format
• viewing images of paid cheques

7
 • ordering cheque books
• Download periodic account statements
• Downloading applications for M-banking, E-banking etc

Bank customers can transact banking tasks through online banking, including -

• Funds transfers between the customer's linked accounts

• Paying third parties, including bill payments (see, e.g., BPAY) and third
party fund transfers(see, e.g., FAST)
• Investment purchase or sale
• Loan applications and transactions, such as repayments of enrollments
• Credit card applications
• Register utility billers and make bill payments
• Financial institution administration
• Management of multiple users having varying levels of authority
• Transaction approval processthe process of banking has become much faster

Some financial institutions offer unique Internet banking services, for example:

• Personal financial management support, such as importing data into personal

accounting software. Some online banking platforms support account aggregation to
allow the customers to monitor all of their accounts in one place whether they are
with their main bank or with other institutions.

HISTORY OF ONLINE BANKING.

The precursor for the modern home online banking services were the distance banking
services over electronic media from the early 1980s. The term 'Online' became popular
in the late '80s and referred to the use of a terminal, keyboard and TV (or monitor) to
access the banking system using a phone line. 'Home banking' can also refer to the use
of a numeric keypad to send tones down a phone line with instructions to the bank. 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 videotex system.

8
HISTORY OF ONLINE BANKING IN INDIA…..

ICICI bank (INDUSTRIAL CREDIT AND INVESTMENT CORPORATION OF INDIA) is

the largest private sector bank in India. ICICI is the first ban to introduce online banking
service in India.

Today ICICI bank has many online banking services in India. These services are called
ICICI NET BANKING.

ADVANTAGES OF ONLINE BANKING.

It's generally secure. But make sure that the website you're using has a valid security
certificate. This let's you know that the site is protected from cyber-thieves looking to steal
your personal and financial information

.
• You have twenty-four-hour access. When your neighborhood bank closes, you
can still access your account and make transactions online. It's a very convenient
alternative for those that can't get to the bank during normal hours because of
their work schedule, health or any other reason.

• You can access your account from virtually anywhere. If you're on a business trip
or vacationing away from home, you can still keep a watchful on your money and
financial transactions - regardless of your location.

• Conducting business online is generally faster than going to the bank. Long teller
lines can be time-consuming, especially on a Pay Day. But online, there are no
lines to contend with. You can access your account instantly and at your leisure.
0
• Many features and services are typically available online. For example, with just
a few clicks you can apply for loans, check the progress of your investments,
review interest rates and gather other important information that may be spread
out over several different brochures in the local bank.

DISADVANTAGES OF ONLINE BANKING.

• Yes, online banking is generally secure, but it certainly

isn't always secure. Identity theft is running rampant, and banks are by no means
immune. And once your information is compromised, it can take months or even

9
 years to correct the damage, not to mention possibly costing you thousands of
dollars, as well.

• Some online banks are more stable than others. Not all online setups are an
extension of a brick-and-mortar bank. Some operate completely in cyberspace,
without the benefit of an branch that you can actually visit if need be. With no
way to physically check out the operation, you must be sure to thoroughly do
your homework about the bank's background before giving them any of your
money.

• Before using a banking site that you aren't familiar with, check to make sure that
their deposits are FDIC-insured. If not, you could possibly lose all of your
deposits if the bank goes under, or its major shareholders decide to take an
extended vacation in Switzerland.

• Customer service can be below the quality that you're used to. Some people
simply take comfort in being able to talk to another human being face-to-face if
they experience a problem. Although most major banks employ a dedicated
customer service department specifically for online users, going through the
dreaded telephone menu can still be quite irritating to many. Again, some are
considerably better (or worse) than others.

• Not all online transactions are immediate. Online banking is subject to the same
business-day parameters as traditional banking. Therefore, printing out and
keeping receipts is still very important, even when banking online

WHAT IS E-COMMERCE?

Electronic commerce, commonly known as E-commerce or eCommerce, is trading in

products or services using computer networks, such as the Internet. Electronic
commerce draws on technologies such as mobile commerce, electronic funds
transfer, supply chain management, Internet marketing, online transaction
processing, electronic data interchange(EDI), inventory management systems, and
automated data collection systems. Modern electronic commerce typically uses
the World Wide Web for at least one part of the transaction's life cycle, although it may
also use other technologies such as e-mail.
E-commerce businesses usually employ some or all of the following practices:

• Provide Etail or virtual storefront on websites with online catalogs, sometimes

gathered into a "virtual mall"
• Buy or sell on websites like 2vulu online marketplaces.
• Gather and use demographic data through web contacts and social media.

10
• Use electronic data interchange, the business-to-business exchange of data.
• Reach prospective and established customers by e-mail or fax (for example, with
newsletters).
• Use business-to-business buying and selling.
• Provide secure business transactions

Some common applications related to electronic commerce in online banking are:

• Document automation in supply chain and logistics

• Domestic and international payment systems
• Enterprise content management
• Group buying
• Automated online assistant
• Newsgroups
• Online shopping and order tracking
• Online banking

Online office suites

• Shopping cart software

• Teleconferencing
• Electronic tickets
• Social networking
• Instant messaging

OPPORTUNITIES OF ONLINE BANKING

Timmers (2000) supports this view, highlighting the key features of the Internetsuch as
24hour availability, almost immediate access, and the absence of physical borders.
Indeed, the Internet has been one of the key drivers in promoting E-Commerce in the
banking sector(Jeevan, 2000). The opportunities for banks in the Internet arena are
varied (Stamoulis, 2000).Despite this plethora of opportunities, threats to the e-banks
abound. One major threat to banks is the“Internet only” virtual banks. With US$ 2
million, one can set up a fully-functional ,Internet Only bank and provide payment
services on the Internet. The Internet banks serve also as gateways offering
identification and authorization services toa number of third party service providers.
There are user-friendly opportunities for conducting business over the Internet with
telephone companies, Energy Company, tax board and other institutions. Demand for
those services influences also the usage rates of Internet banks. For example in 2002 in
USA, 81867 private individuals submitted electronic tax declarations79727 of them did it
through Internet banks and 2140 through

11
tax boards own home page.

(20.3% of declarations were submitted electronically). This is increasing the benefits of

Internet banks for the consumers and is a win-win situation for the banks and service
providers.

Several studies including Schultz et al. (2001) suggest that security measures that are
inconvenient for users may weaken E-Banking prospect, for example because of lack of
user acceptance or outright resistance .Here we note some challenges of Electronic
banking systems (H. C. Lau & Etal, 2001)

CHALLENGES OF ONLINE BANKING IN INDIA

Based on „best practices‟ in developed countries, United Nations Conference on Trade

and Development (UNCTAD) report has identified four challenges that developing
countries, in general ,are expected to overcome to achieve the advantages that e-
banking initiatives can bring about (UNCTAD 2002):

• The ability to adopt global technology to local requirement .An adequate level of
infrastructure and human capacity building are required before developing
countries can adopt the global technology for their local requirements
• The ability to strengthen public support for e-finance: Historically, most e-finance
initiatives in developing countries have been the result of cooperative efforts
between the private and public sectors.
• The ability to create a necessary level of regulatory and institutional frameworks:
The lack of regulatory frameworks, trust, security and privacy standards, high
trade barriers, customer and investor protections impede progress in
implementing e-banking initiatives on a larger scale in many developing
countries.
• The ability to mainstream small and medium scale enterprises(SMEs) towards e-
banking: The availability of and access to quality data and banking information is
required for SMEs in developing countries to move towards e-banking.

PROBLEM RELATING TO ONLINE BANKING.

• Passwords: The key to protecting your Internet banking account is protecting

your password. Using a strong password -- one that contains mixed-case letters,
numbers, and even symbols if the bank allows it -- will decrease the likelihood of
a hacker cracking the password and gaining access to your account. You should
also ensure that the password to access your company’s accounts is not the
same as any other password you use, since not every site maintains the same

12
 level of security a bank does. If a hacker manages to steal a password from an
insecure site, he can access any account that password unlocks.

• Phishing: One of the primary methods a hacker gains access to account

information is through phishing, or tricking the victim into giving up the
information voluntarily. A hacker might send an e-mail or even call, pretending to
be a representative of the bank and informing you about some irregularities with
your account. All you need to do to sort things out is to provide your password or
other account information to verify your identity. If you ever receive a
communication that appears to be from your bank and requests this type of
information, contact your bank by phone immediately. Do not give out account
information to a caller, and do not click any links provided in any e-mails that
claim to be from your bank. You should also ensure that any employees with
access to the company’s accounts follow the same procedures.

• Keyloggers: Keyloggers are malware programs that record keystrokes and other
data, allowing a hacker to capture your password as you enter it. Maintaining up-
to-date antivirus suites on your company computers can prevent these malicious
programs from gaining a foothold, and setting up your network’s firewall to
monitor outgoing traffic can help you determine when an infection occurs. Many
keyloggers and viruses use email to travel from computer to computer, so adding
anti-virus protection to your company’s email server can help filter out these
attacks.

• Two-Factor Authentication:If your bank offers two-factor authentication,

adopting the technology is a great way to keep your account information safe.
Two-factor authentication requires a second code when logging into your
account, either provided by an electronic token, or via message sent to a
registered cell phone or other device. The extra layer of security renders your
password useless to a hacker without the accompanying code.

13
 CHAPTER-II
OBJECTIVE
• To understand the growth of online banking in India.
• To understand the challenges associated with online banking in India.
• To understand the notion of online banking with respect to customer accessibility.

Methods used in RESEARCH METHOLOGY:

o PRIMARY DATA
o SECONDARY DATA

• PRIMARY DATA- Primary data consists of a collection of original data collected

by the researcher. It is often undertaken after the researcher has gained some
insight into issue by reviewing secondary research or by analyzing previously
collected primary data. It can be accomplished through various method, including
questionnaire and telephone conversation.
The PRIMARY DATA used in the conceptual framework of this study is:
Direct questionnaire among people: 25 People were asked direct
questions on ONLINE BANKING. Their review is mentioned in ’CHAPTER III’.

• SECONDARY DATA- Secondary data is collected by someone other than time

user. Common sources of secondary data are,
o Census
o organizational records
o data collection
o through qualitative methodology or qualitative research.

14
 CHAPTER- III:
CONCEPTUAL FRAMEWORK

1. The main objective of study is to understand the growth of online banking in

India.

• 7% of account holders in the country are using the Internet for banking
transactions, while branch banking has fallen by a full 15 percentage
points, according to a report by global management consultancy McKinsey
& Company.
• Use of the Internet for banking has seen a massive rise in the 2010-11
survey, taking the overall number of bank consumers who use the Net to
close to 7 per cent of the total bank account holders -- a seven-fold jump
since 2007 -- even as for the first time in the past 13 years, branch
banking has come down by a full 15 percentage points during the same
period.
• India leads growth in Asia in mobile and Internet usage for banking. While
there was a 15 per cent decline in branch usage in India, the growth in
usage of the Internet and mobile before the first time since we started this
survey in 1998, we see a marked shift away from using branches as a
main channel for interaction in many markets. This is a fundamental shift
in consumer behavior, and has significant implications for banks. The
scale of branch network is a less decisive factor for capturing customers
now.
• The worst casualty is loyalty as there is a full 40 percentage point drop in
loyalty since 2007, though 95 per cent are seemingly satisfied with their
main banks, says associate partner Jatin Pant, adding the average
number of banking relationships across the country rose 19 per cent from
1.4 in 2007 to 1.7 in 2011, while the average percentage of people willing
to shop around rose 15, marking a greater willingness of consumers to
vote with their feet and engage with a broader variety of financial
institutions.
• Banking has almost tripled." When it comes to financial planning too,
there is a marked progress with the percentage of consumers using
financial planners soaring from 14 per cent in 2007 to 43 per cent in 2011,
while the percentage of consumers willing to take risks on capital growth

15
 rose by 20 per cent to 44 per cent, up from 24 per cent. At the same time,
the survey says, dissatisfaction too rose with their financial planners.

2. Challenges associated with online banking in India:

Lack of outline plans & sufficient study to perform new technology, Lack of choose that
how perform technology with the highest efficiency, Lack of culture and knowledge of
banks about Electronic banking, Lack of engagement of banks management in the
system, Lack of management to use experts in IT section, Traditional attitude toward
data reengineering, Lack of economical justification and risk to use Electronic banking
systems.

➢ Challenges with performing system

Weakness of available facilities, Lack of money protection, Lack of special

enterprises or their support ,ca, gateway institutes such as VISA, Lack of content &
customers interest

➢ Cost and Fees

Customer service delivery attributes in the electronic banking industry are

important, in view of the fact that online banking, mobile banking and ATM interaction
are the main sources of service delivery.

Therefore, offering high quality services to satisfy consumers‟ needs, at lower cost and
fees, will be the

Potential competitive advantage of electronic banking sustainability and growth in the

future. At present, studies show that electronic banking has successfully reduced
operating and administrative cost and fees (Ahmad, 2011;Migdadi, 2008; Suganthi,
2010 and Bankole et al, 2011) while at the same time research has proven that, cost
and fees savings have helped e-based banks offer lower or no service cost/fees
(Ahmad, 2008). Cost was once considered as the major competitive priority and a key
aspect for the future development in every organization (Burgess, 1998). Prior research
has empirically found a positive relationship between cost/fees and customers service
delivery as a critical factor with the use of electronic banking (Ching et al, 2011 ad
Khumbula,2010).

16
 ➢ Challenges in E-banking for Developing Countries

Based on best practices in developed countries, United Nations Conference on

Trade and Development (UNCTAD) report has identified four challenges that
developing countries, in general, are expected to overcome to achieve the advantages
that e banking initiatives can bring about (UNCTAD 2002):

(1) The ability to adopt global technology to local requirements: An adequate level of
infrastructure and human capacity building are required before developing countries can
adopt the global technology for their local requirements.

(2) The ability to strengthen public support for e-finance: Historically, most e-finance
initiatives in developing countries have been the result of cooperative efforts between
the private and public sectors.

(3) The ability to create a necessary level of regulatory and institutional frame works:
The lack of regulatory frameworks, trust, security and privacy standards, high trade
barriers, customer and investor protections impede progress in implementing e-banking
initiatives on a larger scale in many developing countries.

(4) The ability to mainstream small and medium scale enterprises(SMEs) towards e-
banking: The availability of and access to quality data and banking information is
required for SMEs in developing countries to move towards e-banking. Similarly, on-

line credit in formation will enhance SMEs ability to secure financing.

➢ Status:

The Internet includes all related web-enabling technologies and open

telecommunication networks ranging from direct dial-up, the public World Wide Web,
cable, and virtual private networks.

• Internet banking (e-banking) is defined to include the provision of retail and

small value banking products and services through electronic channels as well as
large value electronic payments and other wholesale banking services delivered
electronically. Status in developing countries Developing countries are in
catching up in e-banking:-
• Th e av er age e -banking penetration for developing countries by the end of
1999 was close to 5% (World Bank Survey, 2001).
• In India, over 50 banks are offering online banking services. ICICI Banks e-
banking is very impressing.

17
 3. TO UNDERSTAND THE SCENARIO OF ONLINE BANKING IN INDIA W.R.T.
CUSTOMER ACCESSIBILITY

• Compared to banks 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. The 'Infinity'
product of ICICI Bank Ltd. gets only about 30,000 hits per month, with around
3,000 transactions taking place on the Net per month through this service.
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.
• Users of Internet Banking Services are required to fill up the application forms
online and send a copy of the same by mail or fax to the bank. A contractual
agreement is entered into by the customer with the bank for using the Internet
banking services. In this way, personal data in the applications forms is being
held by the bank providing the service. The contract details are often one-sided,
with the bank having the absolute discretion to amend or supplement any of the
terms at any time. For these reasons domestic customers for whom other access
points such as ATMs, tele-banking, personal contact, etc. are available, are often
hesitant to use the
Internet banking services offered by Indian banks. Internet Banking, as an additio
nal delivery channel,may, therefore, be attractive / appealing as a value added
service to domestic customers. Non-resident Indians for whom it is expensive
and time consuming to access their bank accounts maintained in India find net
banking very convenient and useful.
• The Internet is in the public domain whereby geographical boundaries are
eliminated .Cyber crimes are therefore difficult to be identified and controlled. In
order to promote Internet banking services, it is necessary that the proper
legal infrastructure is in place. Government has introduced the Information
Technology Bill, which has already been notified in October 2000.Section 72 of
the Information Technology Act, 2000 casts an obligation of confidentiality
against disclosure of any electronic record, register, correspondence and
information, except for
certain purposes and violation of this provision is a criminal offence. The Depart

18
 ment of Telecommunications (DoT) is moving fast to make available additional
bandwidth, with the result that Internet access will become much faster in the
future. This is expected to give a fillipto Internet banking in India.
• The proposed setting up of a Credit Information Bureau for collecting and sharing
credit information on borrowers of lending institutions online would give a fillip to
electronic banking. The recommendations of the Vasudevan Committee on
Technological Upgradation of Banks in India have also been circulated to banks
for implementation. In this background, banks are moving in for technological
upgradation on a large scale. Internet banking is expected to get a boost from
such developments .
• Reserve Bank of India has taken the initiative for facilitating real time funds
transfer through the Real Time Gross Settlement (RTGS)System. Under the
RTGS system,
transmission, processing and settlements of the instructions will be done on a co
ntinuous basis. Grosssettlement in a real time mode eliminates credit and
liquidity risks. Any member of the system will be able to access it through only
one specified gateway in order to ensure rigorous access control measures at
the user level. Generic Architecture both domestic and cross border, aimed
at providing interconnectivity across banks has been accepted for implementat.R
BI reference made this year, in the Monetary and Credit Policy statement of the
Governor, banks have been advised to develop domestic generic model in their
computerization plans to ensure seamless integration. The abovementioned effor
ts would enable online banking to become more secure and efficient .
• With the process of dematerialization of shares having gained considerable
ground in recent years, banks have assumed the role of depository participants.
In addition to customers' deposit accounts, they also maintain demat accounts of
their clients. Online trading in equities is being allowed by SEBI. This is
another area which banks are keen to get into. HDFC Bank Ltd. has tied up with
about 25 equity brokerages for enabling third party transfer of funds and
securities through its business-to-business (B2B) portal, 'e- Net'. Demat account
holders with
the bank can receive securities directly from the brokers' accounts. The bank has
extended its web interface to the software vendors of National Stock Exchange
through a tie-up with NSE. The InfoTech arm of the exchange. The bank
functions as the payment bank for enabling fund transfer.

19
 CHAPTER-IV
DATA ANALYSIS
A Survey was conducted on 25 people of and the data of the survey is below.

QUESTION-1

What kind of banking do you prefer?

12
10
8
6
4
2
0

Traditional
Other
Both

TYPE OF Traditional Other Both

BANKING

NO. OF 5 8 12
PEOPLE

This shows us the preference of people toward the type of banking. They prefer to use
the services of both the online and traditional banking rather than a particular type.
From this survey I came to know that out of 25 people, 5 people prefer traditional
banking, 8 people prefer online banking and 12 people prefer both i.e. online and
traditional banking.

20
The People who are mainly involved in online banking are the people of the age group
of 20-30 years. They prefer online banking as they are familiar with both the good and
bad points of online banking.

QUESTION-2

Do the people think that account is secure in online banking?

12
10
8
6
4
2
0
YES
NO
CANT SAY

OPENION YES NO CANT SAY

NO OF PEOPLE 11 7 7

Majority of the people think that their Account is secured, but not all. Their security
concern should be eradicated. This will attract customers.

11 out of 25 people think that online is secure because of the following:

• viewing account balances

• viewing recent transactions
• Downloading bank statements, for example in PDF format
• viewing images of paid cheques
• ordering cheque books
• Download periodic account statements
• Downloading applications for M-banking, E-banking etc

7 out of 25 people think that online banking is not at all secured because:
• Passwords
• Phishing

21
 • Key loggers
• Two-Factor Authentication

QUESTION-3

Do you think online banking is better than traditional banking?

14
12
10
8
6
4
2
0
YES NO CANT SAY

Opinion YES NO CANT SAY

NO. OF PEOPLE 13 5 7

There are about 5 out of 25 people who don’t think online banking is not better then
traditional banking as they are not familiar with the process of online banking. The
people don’t know the basic positive point of online banking. For eg. Some people think
that online banking is not secure then traditional banking. Password can be hacked etc.

There are 13 out of 25 people who think that online banking is better than traditional
banking as they know the positive point of online banking. For eg. The people know that
due to online banking fast access to account can take place, payments can be faster
the usual mode etc.

QUESTION-4

How frequently do you use banking service?

22
 15

10

0
weekly
monthly
regularly
rearly

TIME WEEKLY MONTHLY REGULARLY REARLY

PERIOD

NO. OF 5 11 2 7
PERSON

Out of 25 people only 5 people use their Banking service weekly. These are those class
of people who either do their own business or who are involve in business like shop
keeping, tours and travels etc.

Out of 25 people only 2 people use their banking services regularly. These are those
people who use whose business is totally dependable on banking. Eg. Government
Suppliers, Share brokers, Agents of LIC etc.

Out of 25 only 7 people use their banking services rarely. These types of people are
either student or whose age limit is below 22 years.

QUESTION-5

How happy are the people with their online banking service provided with their banks?

10
8
6
4
2
0
Completely Partially Fairly Not at all

23
 HAPPINESS Completely Partially Fairly Not at all
LEVEL

No. of 4 9 9 3
people

The satisfaction level of people with the online banking service of their banks has a
mixed review.

FINDING: out of 25 people 4 people are completely happy with their online Banking.
This is due to they know the advantages or advantages of online Baking and they
usually involved in internet services. And more over these people are basically of the
age group between 20-25 years.

Out of 25 people 3 are not at all happy with their online bnking service because they are
less involved in Internet service or they do not know how to use internet service at all.
The second reason is that the these 3 people are very frightened to use there online
service because of the threat involved in online banking like Hacking of accounts,
Phishing etc.

QUESTION-6

What type of transaction do you make in online banking?

15

10

0
Check
Payment
Balance Transfer of
Other
fund

Type of Check Payment Transfer Other

transaction Balance of fund

No. of 11 7 2 5
people

The utility of the online banking is service is not used to the extent is should be and it is
being majorly used for the purpose of checking the balance in the account. The reason
for this is low volume of transaction among the people.
24
QUESTION-7

Given the opportunity to shift from traditional Banking to Online Banking will the people
prefer to do so?

The survey was done on 30 people who were divided in the age group of 20-40 years,
41-60 years, 60 and above.

Between the age group of 20-40 years the people were ready to shift from traditional
banking to online banking. Out of these people also there were many of them who use
online banking from the day of opening of their account. No. of people in this category
were 8 out of 25.

Ready to shift
Already using online banking

Online banking Ready to shift Already using

online
banking

No. of people 5 3

The advantages that they were knowing about online banking were as follow:

• viewing account balances

• viewing recent transactions
• Downloading bank statements, for example in PDF format
• viewing images of paid cheques
• ordering cheque books
• Download periodic account statements
• Downloading applications for M-banking, E-banking etc

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 Bank customers can transact banking tasks through online banking, including -

• Funds transfers between the customer's linked accounts

• Paying third parties, including bill payments (see, e.g., BPAY) and third
party fund transfers(see, e.g., FAST)
• Investment purchase or sale
• Loan applications and transactions, such as repayments of enrollments
• Credit card applications
• Register utility billers and make bill payments
• Financial institution administration
• Management of multiple users having varying levels of authority
• Transaction approval process the process of banking has become much fast

In the age group of 41-60 years the people, these people were not ready to change
from traditional banking to online banking. But after them a satisfactory reason they
were ready to shift from the traditional to online banking system.

But some people after giving a satisfactory reason also were not ready to shift from
traditional to online banking. Some of the reasons that were there not to shift from
traditional to online banking were-
• Passwords
• Key loggers
• Phishing

In the age group of 60 and above the people were not at all ready to shift from
traditional banking to online as they were not knowing how to internet or were very
scared to do transaction without their physical presence.

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 CHAPTER-V
RECOMMENDATIONS AND CONCLUSIOIN
❖ CONCLUSION:

The people are not confident enough to weather to relay completely on online
banking. There is hesitation in the mind of people with regard to preference. So they
use both the technique of Banking i.e. Online Banking and Traditional Banking.

Because of the complexity and the awareness in the people regarding the online
banking, there is less utilization online banking services provided by the bank.

People are not completely sure whether there account is completely secure in
online banking or not. Security concern is the main and the core reason why people
do not tend to use online banking.

People in India are not aware of the full utility of online banking and the services that
can be availed of in online banking.

Most of the Indian population are salaries employees who do not have that volume
of transaction that can be used for online transaction.

❖ RECOMMENDATION:

After analyzing the entire study on online banking with respect to both the primary and
secondary data the following recommendations can be put forward-

• The infrastructure for the development is not being implemented in the way that
could be beneficial.
• There are various obstacles in the banking scenario with regards to guidelines
and issues for functioning. This has led to decline in the usage of the online
banking service of the bank.
• The people having account can be urge to take up an internet banking facility.
They should be motivated rather than just being told that there exists a service of
online banking.
• There are many people who are not aware of all the benefits that they reap out of
the transaction of online banking. They should be a proper awareness among the
people about online banking.
• Most of the people do not opt for online banking due to the problems of security
concerns. Proper security software should be developed and people should be
convicted that their account are secured in online transactions.

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 CHAPTER-VI
REFERANCES
• BANKS:

ICICI Bank Limited

Axis Bank Limited
Bank Of India

• INTERNET:

http://www.onlinebanking.net

http://www.sendmoneyindia.org

http://www.ehow.com

http://www.intenetworldstar.com

http://www.economictime.indiatime.com

http://www.indiamba.com

http://www.searchdatacenter.com

• REFERANCE BOOKS

R.K. UPPAL
BANKING WITH TECHNOLOGY
NEW CENTURY PUBLICATIONS
NEW DELHI

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