A STUDY ON NET BANKING WITH SPECIAL REFERENCE TO

(Submitted in Partial Fulfillment of the Award of the Degree Of) MASTER OF BUSINESS ADMINISTRATION Submitted By P.LAHARI M.B.A H.T NO: 11031E0027

Under The Guidance Of Mrs._________________ M.B.A (ASST.PROF) DEPARTMENT OF MANAGEMENT STUDIES JAWAHARLAL NEHRU TECHNICAL UNIVERSITY HYDERABAD 2011-2013

DECLARATION I here declare that the project report entitled A STUDY ONNET BANKING has been prepared by me in partial fulfillment of the requirements for the award of the degree of MASTER OF BUSINESS ADMINISTRATIONI also declare that this project work is a result of my effort and it has not been submitted to any other university for the award of any degree or diploma.

PLACE: DATE: P.LAHARI M.B.A H.T NO: 11031E0027

ACKNOWLEDGMENT
With a profound sense of thankfulness, I acknowledge my indebtedness to my company guide Mr.K.ANIRUDH (Finance Manager) Faculty Guide Mrs. SANJEEVA RANI M.B.A., for their valuable guidance, timely suggestions and constant encouragement. Their insightful criticisms and patience throughout the duration of this project have been instrumental in allowing this project to be completed.
My sincere thanks are to the name of Director, Mr. G. SRIDHER REDDY (M.A) (P.hd)., name of HOD,SALEEMUNNISA (M.com, M.B.A) and all the staff members of Department of management studies, JAWAHARLAL

NEHRU TECHNICAL UNIVERSITY

For their consistent guidance in my project work.Their continual support and careful attention to the details involved in producing a document of this nature are very much appreciated.

P.LAHARI M.B.A H.T NO: 11031E0027

CONTENT PAGE

CH. NO. CHAPTER -1

PARTICULARS INTRODUCTION NEED &IMPORTANT OF THE STUDY OBJECTIVES OF THE STUDY SCOPE OF THE STUDY RESEARCH METHODOLOGY LIMITATIONS OF THE STUDY

PAGE NO.

COMPANY PROFILE CHAPTER -2 INDUSTRY PROFILE CHAPTER -3 LETERATURE REVIEW CHAPTER-4 ANALYSIS & INTERRETATION OF THE STUDY CHAPTER -5 FINDINGS OF THE STUDY SUGGESTIONS CHAPTER-06 CONCLUSIONS BIBLIOGRAPHY

CHAPTER- 1

INTRODUCTION
Banking system of a nation is the shadow of nations economy. A healthy and profitable banking system is just like the backbone of nations economy. It is necessary for a nation to achieve growth and remain stable in this global world and global economy. The Indian banking system, with one of the largest banking networks in the world, has witnessed a series of reforms over the past few years like use of E-Banking and the increased participation of private sector banks.

HISTORY OF INDIAN BANKING SYSTEM

Banking in India originated in the last decades of the 18th century. The first banks were The General Bank of India, which started in 1786, and the Bank of Hindustan, both of which are now defunct The oldest bank in existence in India is the State Bank of India, a government-owned bank that traces its origins back to June 1806 and that is the largest commercial bank in the country. Allahabad Bank, established in 1865 and still functioning today, is the oldest Joint Stock bank in India. Central banking is the responsibility of the Reserve Bank of India, which in 1935 formally took over these responsibilities from the then Imperial Bank of India, relegating it to commercial banking functions. After India's independence in 1947, the Reserve Bank was nationalized and given broader powers.

 In 1948, the Reserve Bank of India, India's central banking authority, was nationalized, and it became an institution owned by the Government of India.

In 1949, the Banking Regulation Act was enacted which empowered the Reserve Bank of India (RBI) "to regulate, control, and inspect the banks in India."

The Banking Regulation Act also provided that no new bank or branch of an existing bank could be opened without a license from the RBI, and no two banks could have common directors

LIBERALIZATION IN INDIAN BANKING SYSTEM

In the early 1990s, the government embarked on a policy of liberalization, licensing a small number of private banks. Some of the private sector banks are ING VYSYA Bank, Axis Bank (earlier as UTI Bank), ICICI Bank and HDFC Bank. The next stage for the Indian banking has been setup with the proposed relaxation in the norms for Foreign Direct Investment, where all Foreign Investors in banks may be given voting rights which could exceed the present cap of 10%, at present it has gone up to 49% with some restrictions. Currently, banking in India is generally fairly mature in terms of supply, product range but reach in rural India still remains a challenge for the private sector and foreign banks.

OBJECTIVES
Find the customer satisfaction relating to NET-banking service. To study the awareness of internet banking among the customers of ING VYSYA bank. Awareness among customers for internet banking. To study difference between ING&HDFC Online Banking It gives direction to research tools, research types and techniques. Availability should be increased by using various services Strategy.

NEED FOR THE STUDY

1 Functional requirement
3.1.1 System requirement:

To view your accounts in Online Banking you will need internet access using one of the following supported browsers:

Microsoft Internet Explorer 6 or higher Firefox 3 Safari 3

To view your accounts in Online Cash Manager you will need internet access using one of the following supported browsers:

Microsoft Internet Explorer 6 or higher Firefox 3

SCOPE FOR THE STUDY

Though there are many online systems available on internet but this can compete with them with some advancement in its functionality and can be used by any bank organization to maintain their customers account and online transaction process. The basic functionalities of the system are: Create Account Login Update Profile Password Recovery View Profile ATM and Bank finder Contact Form Amount Transaction EMI and Loan Calculator

 RESEARCH METHODOLOGY
The data collected from questionnaire will be tabulated and analyzed so that it can easily understand to the user. There are a number of ways to be used to present the result of findings are:o Pie-chart o Graphs SAMPLING PLAN: Since it is not possible to study whole universe, it becomes necessary to take sample from the universe to know about its characteristics. Sampling Units: Different Account Holder from the bank. Sample Technique: Random Sampling. Research Instrument: Structured Questionnaire. Contact Method: Personal Interview. SAMPLE SIZE: My sample size for this project was 20 respondents. Since it was not possible to cover the whole universe in the available time period, it was necessary for me to take a sample size of 20 respondents. DATA COLLECTION INSTRUMENT DEVELOPMENT: The mode of collection of data will be based on Primary as well as Secondary data. Primary data: Primary data collection will base on personal interview of customers and people linked with ING VYSYA BANK. I have prepared the questionnaire according to the necessity of the data to be collected. Secondary data: Collection of information from ING VYSYA website and different various websites related to NET BANKING

LIMITATION OF STUDY
Banks are not giving me all information about E-banking services. ING Vysya Bank have a very few branches in Northern India Customer are not aware about the ING Vysya Bank ING Vysya Bank have very few ATM . Research is only done in Agra city.

CHAPTER 2 COMPANY PROFILE &INDUSTRY PROFILE

COMPANY PROFILE INTRODUCTION: THE ORIGIN OF ING GROUP

ING group originated in 1990 from the merger between Nationale Nederlanden the largest Dutch Insurance Company and NMB Post Bank Group. Combining roots and ambitions, the newly formed company called Internationale Nederlanden Group. Market circles soon abbreviated the name to I-N-G. The company followed suit by changing the statutory name to ING Group. ING is a global financial services company providing banking, investments, life insurance and retirement services and operates in more than 50 countries.

STRATEGY
INGs overall mission is to help customers manage their financial future. INGs strategic focus is on banking, investments, life insurance and retirement services. They provide retail customers with the products they need during their lives to grow savings, manage investments and prepare for retirement with confidence. With wide range of products, innovative distribution models and strong footprints in both mature and developing markets, ING has the long-run economic, technological and demographic trends on their side.

COPERATE RESPOSIBILITY
ING wants to pursue profit on the basis of sound business ethics and respect for its stakeholders. Corporate responsibility is therefore a fundamental part of INGs strategy: ethical, social and environmental factors play an integral role in business decisions.

THE ING VYSYA BANK Ltd.

ING Vysya Bank Ltd., is an entity formed with the coming together of erstwhile, Vysya Bank Ltd, a premier bank in the Indian Private Sector and a global financial powerhouse, ING of Dutch origin, during Oct 2002. The origin of the erstwhile Vysya Bank was pretty humble. It was in the year 1930 that a team of visionaries came together to form a bank that would extend a helping hand to those who weren't privileged enough to enjoy banking services. ING and ING Vysya Life Insurance are headquartered at Bangalore, while the corporate office of ING Investment Management is situated at Mumbai. In 1980, the Bank completed fifty years of service to the nation and post 1985; the Bank made rapid strides to reach the coveted position of being the number one private sector bank. The 75th anniversary, the Platinum Jubilee of the bank was celebrated during 2005. At present, Shailendra Bhandari is the Managing Director and CEO of ING VYSYA Bank Ltd. in India.

SWOT ANALYSIS: ING VYSYA BANK LIMITED

STRENGHTS: 1) Online Services: ING VYSYA Bank provides online services of all its banking facilities, so a person can access his account from anywhere he is. 2) Advanced Infrastructure: Branches of ING VYSYA Bank are well equipped with advanced technology. All the computerized machines are located in suitable manner & are very useful to the customers & staff of the bank. 3) Friendly Staff: The staff of ING VYSYA Bank in all branches is very friendly & helps the customer in all cases. They provide faster services along with bonding personal relationship with the customers. 4) ATM services: ING VYSYA bank provides ATM services to their customer free of cost even if the customer uses the other banks ATM. 5) Other Facilities to the Customers & Employees: ING VYSYA Bank provides facilities like proper sitting arrangements to the customers And proper Ventilation & sanitary facilities for the employees of the bank.

WEAKNESS: 1) High Initial amount to open a account: In comparison of other banks ING VYSYA Bank offers their savings and current account with a minimum balance of Rs. 5000 and 10000 respectively. 2) Less no. of Branches: Branches of ING VYSYA Bank are to low as compared to other Banks, specially in the rural or semi-rural part of the country.

OPPORTUNITIES: 1) OPEN New Branches: The bank should open branches in that part of the country which are still uncovered with the banking facilities and have good customer base to gain the first mover advantage. 2) Recruit professionally guided students: The bank can recruit these students through tie- ups with colleges. Such students will surely prove as an asset to the bank. 3) Associate with social cause: The bank can also associate itself with social causes like providing relief aid patients, funding towards natural calamities. This will help him to create a good image among the customers and help him to gain the more customer base. THREATS: 1) Competition: ING VYSYA Bank is facing tight competition with other private Banks like Standered Chartered, HDFC, ICICI, IDBI etc. 2) Decentralized Management: Each branch manager is given the authority of taking decisions in their respective branches. The decisions made by different managers are diverse and any one wrong decision can laid to heavy losses to the bank.

The long journey of seventy-five years has had several milestones

1930 Set up in Bangalore 1948 Scheduled Bank 1985 Largest Private Sector Bank 1987 The Vysya Bank Leasing Ltd. Commenced 1988 Pioneered the concept of Co branding of Credit Cards 1990 Promoted Vysya Bank Housing Finance Ltd. 1992 Deposits cross Rs.1000 crores 1993 Number of Branches crossed 300 1996 Signs Strategic Alliance with BBL., Belgium. Two National Awards by Gem & Jewellery Export Promotion Council for excellent performance in Export Promotion

Cash Management Services, & commissioning of VSAT. Golden Peacock Award - for 1998 the best HR Practices by Institute of Directors. Rated as Best Domestic Bank in India by Global Finance (International Financial Journal - June 1998) 2000 State -of - the -art Date Centre at ITPL, Bangalore. RBI clears setting up of ING Vysya Life Insurance Company.

2001 ING-Vysya commenced life insurance business. The Bank launched a range of products & services like the Vys Vyapar Plus, the range of loan schemes for traders, ATM services, Smartserv, personal assistant service, Save 2002 & Secure, an account that provides accident hospitalization and insurance cover, Sambandh, the International Debit Card and the mi-b@nk net banking service. 2002 ING takes over the Management of the Bank from October 7th , 2002 . 2002 RBI clears the new name of the Bank as ING Vysya Bank Ltd, vide letter of 17.12.02 2003 Introduced customer friendly products like Orange Savings, Orange Current and Protected Home Loans

2004 Introduced Protected Home Loans - a housing loan product 2005 2006 Introduced Solo - My Own Account for youth and Customer Service Line Phone Banking Service Bank has networked all the branches to facilitate AAA transactions i.e. Anywhere, Anytime & Anyhow Banking

Names Shailendra Bhandari, Chairman Jayant Mehrotra Janak Desai J M Prasad Brett Morgan Mahesh Dayani Susan Poot B.Ashok Rao Meenakshi A Prasad C V G, Invitee

Designation Managing Director & CEO Chief Financial Officer Country Head - Wholesale Banking Chief- Human Resources Country Head - Branch Banking, Marketing & Private Clients Country Head - Retail Assets Chief Risk Officer and Chief Compliance Officer Chief Auditor Chief Operating Officer Chief Information Officer

INDUSTRY PROFILE AN OVERVIEW ON BANKING INDUSTRY

In recent years, the banking industry around the world has been undergoing a rapid transformation. In India also, the wave of deregulation of early 1990s has created heightened competition and greater risk for banks and other financial intermediaries. The cross-border flows and entry of new players and products have forced banks to adjust the product-mix and undertake rapid changes in their processes and operations to remain competitive. The deepening of technology has facilitated better tracking and fulfillment of commitments, multiple delivery channels for customers and faster resolution of miscoordinations. Unlike in the past, the banks today are market driven and market responsive. The top concern in the mind of every bank's CEO is increasing or at least maintaining the market share in every line of business against the backdrop of heightened competition. With the entry of new players and multiple channels, customers (both corporate and retail) have become more discerning and less "loyal" to banks. This makes it imperative that banks provide best possible products and services to ensure customer satisfaction. To address the challenge of retention of customers, there have been active efforts in the banking circles to switch over to customer-centric business model. The success of such a model depends upon the approach adopted by banks with respect to customer data management and customer relationship management. Over the years, Indian banks have expanded to cover a large geographic & functional area to meet the developmental needs. They have been managing a world of information about customers - their profiles, location, etc. They have a close relationship with their customers and a good knowledge of their needs, requirements and cash positions. Though this offers them a unique advantage, they face a fundamental problem. During the period of planned economic development, the bank products were bought in India and not sold. What our banks, especially those in the public sector lack are the marketing attitude. Marketing is a customer-oriented operation. What is needed is the effort on their part to improve their service image and exploit their large customer information base effectively to communicate product availability. Achieving customer focus requires leveraging existing

customer information to gain a deeper insight into the relationship a customer has with the institution, and improving customer service-related processes so that the services are quick, error free and convenient for the customers. Furthermore, banks need to have very strong in-house research and market intelligence units in order to face the future challenges of competition, especially customer retention. Marketing is a question of demand (customers) and supply (financial products & services, customer services through various delivery channels). Both demand and supply have to be understood in the context of geographic locations and competitor analysis to undertake focused marketing (advertising) efforts. Focusing on region-specific campaigns rather than national media campaigns would be a better strategy for a diverse country like India. Customer-centricity also implies increasing investment in technology. Throughout much of the last decade, banks world-over have re-engineered their organizations to improve efficiency and move customers to lower cost, automated channels, such as ATMs and online banking. As is proved by the experience, banks are now realizing that one of their best assets for building profitable customer relationships especially in a developing country like India is the branchbranches are in fact a key channel for customer retention and profit growth in rural and semiurban set up. However, to maximize the value of this resource, our banks need to transform their branches from transaction processing centers into customer-centric service centers. This transformation would help them achieve bottom line business benefits by retaining the most profitable customers. Branches could also be used to inform and educate customers about other, more efficient channels, to advise on and sell new financial instruments like consumer loans, insurance products, mutual fund products, etc. There is a growing realization among Indian banks that it no longer pays to have a "transactionbased" operating model. There are active efforts to develop a relationship-oriented model of operations focusing on customer-centric services. The biggest challenge our banks face today is to establish customer intimacy without which all other efforts towards operational excellence are meaningless. The banks need to ensure through their services that the customers come back to them. This is because a major chunk of income for most of the banks comes from existing customers, rather than from new customers. Customer relationship management (CRM) solutions, if implemented and integrated correctly, can help significantly in improving customer satisfaction levels. Data warehousing can help in providing better transaction experiences for customers over different transaction channels. This

is because data warehousing helps bring all the transactions coming from different channels under the same roof. Data mining helps banks analyse and measure customer transaction patterns and behaviour. This can help a lot in improving service levels. It must be noted, however, that customer-centric banking also involves many risks. The banking industry world over is being thrust into a wild new world of privacy controversy. The banks need to set up serious governance systems for privacy risk management. It must be remembered that customer privacy issues threaten to compromise the use of information technology which is at the very center of e-commerce and customer relationship management - two areas which are crucial for banks' future.

The critical issue for banks is that they will not be able to safeguard customer privacy completely without undermining the most exciting innovations in banking. These innovations promise huge benefits, both for customers and providers. But to capture them, financial services companies and their customers will have to make some critical tradeoffs. When the stakes are so high, nothing can be left to chance, which is why banks must immediately begin developing comprehensive approaches to the privacy issue.

The customer centric business models based on the applications of information technology are sustainable only if the banks protect client confidentiality in the process - which is the basic foundation of banking business.

1.1 EVOLUTION OF BANKING IN INDIA

Banking in India has its origin as early as the Vedic period. It is believed that the transition from money lending to banking must have occurred even before Manu, the great Hindu Jurist, who has devoted a section of his work to deposits and advances and laid down rules relating to rates of interest. During the Mogul period, the indigenous bankers played a very important role in lending money and financing foreign trade and commerce. During the days of the East India Company, it was the turn of the agency houses to carry on the banking business. The General Bank of India was the first Joint Stock Bank to be established in the year 1786. The others which followed were the Bank of Hindustan and the Bengal Bank. The Bank of Hindustan is reported to have continued till 1906 while the other two failed in the meantime. In the first half of the 19 th century the East India Company established three banks; the Bank of Bengal in 1809, the Bank of Bombay in 1840 and the Bank of Madras in 1843 . These three banks also known as Presidency Banks were independent units and functioned well. These three banks were amalgamated in 1920 and a new bank, the Imperial Bank of India was established on 27 th January 1921. With the passing of the State Bank of India Act in 1955 the undertaking of the Imperial Bank of India was taken over by the newly constituted State Bank of India. The Reserve Bank which is the Central Bank was created in 1935 by passing Reserve Bank of India Act 1934. In the wake of the Swadeshi Movement, a number of banks with Indian management were established in the country namely, Punjab National Bank Ltd, Bank of India Ltd, Canara Bank Ltd, Indian Bank Ltd, the Bank of Baroda Ltd, the Central Bank of India Ltd. On July 19, 1969, 14 major banks of the country were nationalized and in 15th April 1980 six more commercial private sector banks were also taken over by the government.

The Indian banking can be broadly categorized into nationalized (government owned), private banks and specialized banking institutions. The Reserve Bank of India acts a centralized body monitoring any discrepancies and shortcoming in the system. Since the nationalization of banks in 1969, the public sector banks or the nationalized banks have acquired a place of prominence and has since then seen tremendous progress. The need to become highly customer focused has forced the slow-moving public sector banks to adopt a fast track approach. The unleashing of products and services through the net has galvanized players at all levels of the banking and financial institutions market grid to look anew at their existing portfolio offering.

Conservative banking practices allowed Indian banks to be insulated partially from the Asian currency crisis. Indian banks are now quoting a higher valuation when compared to banks in other Asian countries (viz. Hong Kong, Singapore, Philippines etc.) that have major problems linked to huge Non Performing Assets (NPAs) and payment defaults. Co-operative banks are nimble footed in approach and armed with efficient branch networks focus primarily on the high revenue niche retail segments.

The Indian banking has finally worked up to the competitive dynamics of the new Indian market and is addressing the relevant issues to take on the multifarious challenges of globalization. It has come a long way from being a sleepy business institution to a highly proactive and dynamic entity. Banks that employ IT solutions are perceived to be futuristic and proactive players capable of meeting the multifarious requirements of the large customers base. Private banks have been fast on the uptake and are reorienting their strategies using the internet as a medium The Internet has emerged as the new and challenging frontier of marketing with the conventional physical world tenets being just as applicable like in any other marketing medium.

This transformation has been largely brought about by the large dose of liberalization and economic reforms that allowed banks to explore new business opportunities rather than generating revenues from conventional streams (i.e. borrowing and lending).

The banking in India is highly fragmented with 30 banking units contributing to almost 50% of deposits and 60% of advances. Indian nationalized banks (banks owned by the government) continue to be the major lenders in the economy due to their sheer size and penetrative networks which assures them high deposit mobilization. The Indian banking can be broadly categorized into nationalized, private banks and specialized banking institutions.

The Reserve Bank of India acts as a centralized body monitoring any discrepancies and shortcoming in the system. It is the foremost monitoring body in the Indian financial sector. The nationalized banks (i.e. government-owned banks) continue to dominate the Indian banking arena. Industry estimates indicate that out of 274 commercial banks operating in India, 223 banks are in the public sector and 51 are in the private sector. The private sector bank grid also includes 24 foreign banks that have started their

operations here. Under the ambit of the nationalized banks come the specialized banking institutions. These co-operatives, rural banks focus on areas of agriculture, rural development etc., unlike commercial banks these co-operative banks do not lend on the basis of a prime lending rate. They also have various tax sops because of their holding pattern and lending structure and hence have lower overheads. This enables them to give a marginally higher percentage on savings deposits. Many of these cooperative banks diversified into specialized areas (catering to the vast retail audience) like car finance, housing loans, truck finance etc. in order to keep pace with their public sector and private counterparts, the cooperative banks too have invested heavily in information technology to offer high-end computerized banking services to its clients. Complementing the roles of the nationalized and private banks are the specialized financial institutions or Non Banking Financial Institutions (NBFCs). With their focused portfolio of products and services, these Non Banking Financial Institutions act as an important catalyst in contributing to the overall growth of the financial services sector. NBFCs offer loans for working capital requirements, facilitate mergers and acquisitions, IPO finance, etc. apart from financial consultancy services. Trends are now changing as banks (both public and private) have now started focusing on NBFC domains like long and medium-term finance, working cap requirements, IPO financing etc. to meet the multifarious needs of the business community.

1.2 STRUCTURE OF BANKING INDUSTRY:

Banking system plays an important role in a countrys economy. It promotes growth and development of the country. Indian money market comprises organized and the unorganized institutions. The organized and unorganized institutions in the Indian banking system serve a source of short term credit to agriculture, industry, trade and commerce.

In the Indian banking structure the Reserve Bank of India is the central bank. It regulates, direct and controls the banking and financial institutions in the country. There are three high banking institutions, namely, RBI, NABARD and EXIM Bank. There are separate financial institutions catering to the needs of different sectors of the economy. Development Banks, Investment Banks, Co-operative Banks, Land Development Banks, Commercial Banks in public and private sectors, NABARD, RRBs, EXIM Bank, etc. The indigenous bankers and moneylenders dominate unorganized sector.

The Indian banking structure can be seen from the chart shown under:

Apex Banking Institution

RBI

IDBI

NABARD

EXIM Bank

SIDBI

NHB

IRBI

Banking Institutions

Commercial Banks

Regional Rural Banks

Co- operative Banks

Land Development Banks

Development Bank

Public Private Foreign Sector Sector Banks Bank exchange Banks

PACs

CCBs

SCBs

PLDs

SLDB

All India Level

State Level

SBI and Subsidiaries

Nationalised Banks IDBI ICICI SIDBI

SFCs

SIDC

Foreign Bank

Indian Scheduled Bank

Non Schedule Bank

The chart reveals that there are several apex banking institutions working at the national level. RBI is the highest banking authority regulating, directing and controlling all the banking and financial institutions in the country. There are development banks, namely IDBI, SIDBI, ICICI at the national level and State Financial Corporations and State Industrial Development Corporations which have been set-up.

There are 29 public sector banks. Co-operative banks have three tier system. At the village level there is Primary Agriculture Co-operative Society(PACs), at the district level there is Central Co-operative Bank and at the state level there is State Co-operative Bank. Co-operative banks provide short term and medium loans to the agriculture sector. Land Development Banks provide long term agriculture credit. It comprises Primary Land Development Bank(PLDB) at ht district level and State Land Development Bank(SLDB) at the state level. RRBs provide loans and advances to the rural poor and NABARD is an apex body regulating, directing and controlling the financial and banking institutions providing finance for the agriculture and rural development.

TYPES OF BANKS Modern age is the age of specialization with the changing situation worldwide, bank functions have also undergone a major change. Economic conditions and financial needs of a country are different than those of other countries throughout the world. Some financial institutions deal in accepting deposits and making loans and advances to different sectors of the economy. Some institution makes loans and advances for medium and short term, while others are meant for long term advances. Some are financing industrial sector and foreign trade while others are advancing loans to agriculture sector.

In broader sense of the term banks may be classified into following categories:

Central Bank Commercial Banks Development Banks Investment Banks Co-operative Banks Foreign Exchange Banks Savings Banks Export-Import Bank Specialized National Banks Indigenous Bankers International Financial Institutions

1.3 GROWTH OF BANKING SECTOR

(DECADE WISE)

Pre-Liberalization: The growth of the Banking Sector in the pre liberalization period can be analyzed as under.

1971-80: This was the decade immediately following the Nationalization of 14 commercial banks. Also the banking sector grew at the fastest pace in this decade.

1. Assets: The assets of the sector grew at 21.58 % CAGR 1. They increased from RS.82.52bn to Rs.582.33bn. This kind of growth was achieved due to massive increase in the number of branches resulting in a spurt in deposit mobilization.

2. Deposits: The deposits grew from Rs.64.79bn to Rs.439.87bn. at a CAGR 21.11 %. The growth was higher in later part of the decade. This growth rate would have been higher had the current accounts grown at a rate higher than 18 %. This indicates peoples preference for using bank as place to keep their savings. The bank was not used as a place to keep money to be used for transaction motive. This is further clarified by the poor ratio of average current deposits to total deposits at 23.45 %.

3. Advances:

The advances grew at 19.26 % CAGR from Rs.46.85bn to Rs.272.67bn. Also the growth was higher in the later part of the decade. Thus the advances grew at a pace slower than the deposits due to decreasing credit deposit ratio, which reduced from 72.30 % in 1970 to 61.99 % in 1980.

4. Net worth: The Net worth increased from Rs.1.16bn to Rs.5.33bn at a CAGR of 16.48 %. The Capital of the banks remained flat throughout the decade growing at just 8.54 % and also the growth came in the later part of the decade. The capital increased form Rs.470.2mn to Rs.1.07bn. However, the Reserves grew at a healthy pace of 20 % CAGR from Rs.690mn to Rs.4.27bn. Thus the banks in this decade did not raise capital and funded their growth from internal accruals. This resulted in a wide gap between Reserves and Capital indicating the banks hunger for Capital. 1981-90: 1. Assets: The growth of the sector was significantly subdued since the last decade. The assets grew at just 16.30 % CAGR compared to 21.58 % in the previous decade. The total assets increased from Rs.582.33bn to Rs.2636.93bn.

2. Deposits: Deposits increased from Rs.439.86bn to Rs.1820.46bn at a CAGR of 15.26 %. The current accounts remained the usual laggards in terms of growth growing at just 12.67 % CAGR. The term and saving deposits grew at a slightly faster pace of 16.17 % and 15.5 % CAGR.

3. Advances: Advances grew at a CAGR of 16.79 % from Rs.272.67bn to Rs.1287.85bn. This is due to the fact that the banks have stepped up their credit-deposit ratio from 62 % to 70.74 %. This indicates higher investment than saving in the economy.

4. Net worth: The Net worth increased from Rs.5.33bn to Rs.47.1bn. Thus the net worth grew at a whopping 24.33 % CAGR. The capital hungry banks went on capital raising spree in the latter half of the decade. Thus the capital grew at a CAGR of 34.53 %. In absolute terms, the capital soared from Rs.1.06bn at the beginning of the decade to Rs.20.73bn at the end of the decade. The Reserves however grew at more or less constant pace of 19.97 % CAGR throughout the decade. At the end of the decade the Capital had kept pace with the Reserves and the gap between them had significantly narrowed down.

Post-Liberalization: The growth of this sector after 1991 can be represented as under. 1991-2000:

1. Assets: The rate of the sector further slowed down during this decade. The assets grew at a CAGR of 15.24 % from Rs.2636.93bn to Rs.11103.68bn. The growth rate however, was greater in the later part of the decade indicating future prospects of increase in growth.

2. Deposits: The deposits grew from Rs.1820.47bn to Rs.9003.06bn at a CAGR of 16.69 %. There was a spurt in the last 3-4 years of the decade indicating improving trend. In this decade however, the savings accounts were the laggards in terms of growth at 13.34 % CAGR. The term deposits grew at 18.38 % and current deposits grew at 15.23 %. This reversal of trend in growth rates shows that the people are increasingly using banks to deposit money to be used for transaction motive.

3. Advances:

The advances increased from Rs.1287.85bn to Rs.4434.69bn at a CAGR of 12.46 %. The lower growth in advances is due to the decline in credit-deposit ratio from 70.74 % in 1990 to 49.26 %. This shows there was a marked decline in investment in this decade with savings exceeding investment.

4. Net worth: The Net worth grew at a feverish pace of 36.60 % CAGR, the highest in last three decades. This was mainly because the RBI opened the Banking sector to Private sector. As many as 9 New Private Sector Banks started their operations in this period. They brought a lot of capital in the period 1993-95. However in the later half of the decade, capital growth was virtually nil. The Reserves grew at 37.54 % CAGR from Rs.26.36bn Rs.438.34bn. However, contrary to Capital the Reserves recorded exceptional growth in the later half of the decade due to improving profits of private as well as public sector banks. However the gap between reserves and capital is once again widening.

CHAPTER- 3
Literature Review

LITERATURE REVIEW
INTERNET AND THE BANKING SYSTEM
The rapid growth of the Web creates a tremendous opportunity for new businesses, but also requires a new way of viewing the market place for the community banker. Experts estimates that consumer use of on-line banking services will increase over 20-fold by the end of the century. Geography and the number of branches become irrelevant and community banks are able to offer the same level of service and convenience to customers as the largest banks. In the past, over 60% of existing bank customers have cited their bank selection to be based on convenience of location. For the customers of today, convenience of location includes the availability of 24-hour access via the Internet. (Wilson, 1996) Seitz and Stickel (1999) considered that financial service companies are using the Internet as a new distribution channel. The goals are: complex products may be offered in an equivalent quality with lower costs to more potential customers there may be contacts from each place of earth at any time of day and night Seybold (1998) identifies 8 critical success factors for electronic banking: Own the customers total experience Streamline business processes that impact the customer Provide a 360-degree view of customer relationship Let customers help themselves Help customers do their job Deliver personalized service

COMPARISION WITH HDFCC FEATURES &ING VYSYA E BANKING SYSTEM

Book Fixed Deposit / Recurring Deposit Pay Utility Bills View your Credit Card details and pay your Credit Card Bills Recharge your Prepaid Mobile & DTH Connections Invest in Mutual Funds Online Book IRCTC Tickets online Purchase a Gift Card Pay your Taxes online Update your PAN Details online View your Tax Credit Satement (Form 26 AS) Request for a Demand Draft/ Chequbook Request Stop Payment of a Cheque/ Hotlist you Debit Card/ Credit Card View your Loan details Apply for IPO Request for Debit Card PIN Regeneration Register for Third Party Transfer
Transfer funds between accounts within HDFC Bank and other Bank Accounts

ING VYSYA BANK FEATURES

Bank from anywhere quickly and comfortably
With your ING Vysya internet banking id, you can bank from any location. Save considerable time and effort with this convenient facility.

Improved look and feel with a single view dashboard of your ING relationships
ING Vysya's new e-banking module has undergone aesthetic and functional changes to offer an enhanced user experience. The home page dashboard, for instance, provides a view of all your linked savings account, deposit account, demat account, investment account, as well as loans and payments. You can also opt for an online demonstration to make your way around the new module more easily.

Register for ING Vysya's e-banking facility instantly

If you hadn't registered for internet banking at the time of account opening, ING Vysya's new e-banking facility allows you to register online instantly. You dont have to visit your ING Vysya branch or opt for the phone banking facility to register for internet banking.

Conduct financial transactions, make bill payments and shop in one place
You can perform a number of banking-related tasks quickly and conveniently with ING Vysya's new e-banking module.

You can make partial withdrawals from your fixed deposit account with a few mouse clicks Auto schedule and pay your utility bills, subscription bills, etc online Shop online with your ING Vysya savings account, and make the most of the advantages that come with this

Some of the added functionalities are real time fund transfers through RTGS (Real Time Gross Settlement), sending demand drafts (DD) through your e-banking account, and making online transactions through your joint account

INTERNET BANKING:
Internet Banking lets you handle many banking transactions via your personal computer. For instance, you may use your computer to view your account balance, request transfers between accounts, and pay bills electronically. Internet banking system and method in which a personal computer is connected by a network service provider directly to a host computer system of a bank such that customer service requests can be processed automatically without need for intervention by customer service representatives. The system is capable of distinguishing between those customer service requests which are capable of automated fulfillment and those requests which require handling by a customer service representative. The system is integrated with the host computer system of the bank so that the remote banking customer can access other automated services of the bank. The method of the invention includes the steps of inputting a customer banking request from among a menu of banking requests at a remote personnel computer; transmitting the banking requests to a host computer over a network; receiving the request at the host computer; identifying the type of customer banking request received; automatic logging of the service request, comparing the received request to a stored table of request types, each of the request types having an attribute to indicate whether the request type is capable of being fulfilled by a customer service representative or by an automated system; and, depending upon the attribute, directing the request either to a queue for handling by a customer service representative or to a queue for processing by an automated system. AUTOMATED TELLER MACHINES (ATM): An automated teller machine or automatic teller machine (ATM) is an electronic computerized telecommunications device that allows a financial institution's customers to directly use a secure method of communication to access their bank accounts, order or make cash withdrawals and check their account balances without the need for a human bank teller. Many ATMs also allow people to deposit cash or cheques, transfer money between their bank accounts, top up their mobile phones' pre-paid accounts or even buy postage stamps. On most modern ATMs, the customer identifies him or herself by inserting a plastic card with a magnetic stripe or a plastic smartcard with a chip, which contains his or her account number. The customer then verifies their identity by entering a pass code, often referred to as a PIN (Personal Identification Number) of four or more digits. Upon successful entry of the PIN, the

customer may perform a transaction.

The Indian market today has approximately more than 17,000 ATMs.

A. CREDIT CARDS/ DEBIT CARDS: The Credit Card holder is empowered to spend wherever and whenever he wants with his Credit Card within the limits fixed by his bank. Credit Card is a post paid card. Debit Card, on the other hand, is a prepaid card with some stored value. Every time a person uses this card, the Internet Banking house gets money transferred to its account from the bank of the buyer. The buyers account is debited with the exact amount of purchases. An individual has to open an account with the issuing bank which gives debit card with a Personal Identification Number (PIN). When he makes a purchase, he enters his PIN on shops PIN pad. When the card is slurped through the electronic terminal, it dials the acquiring bank system - either Master Card or VISA that validates the PIN and finds out from the issuing bank whether to accept or decline the transactions. The customer can never overspend because the system rejects any transaction which exceeds the balance in his account.

B. TELE BANKING: Undertaking a host of banking related services including financial transactions from the convenience of customers chosen place anywhere across the GLOBE and any time of date and night has now been made possible by introducing on-line Telebanking services. By dialing the given Telebanking number through a landline or a mobile from anywhere, the customer can access his account and by following the user-friendly menu, entire banking can be done through Interactive Voice Response (IVR) system. With sufficient numbers of hunting lines made available, customer call will hardly fail. The system is bi-lingual and has following facilities offered Balance inquiry and transaction inquiry in all Inquiry of all term deposit account Statement of account by Fax, e-mail or ordinary mail. Cheque book request Stop payment which is on-line and instantaneous Transfer of funds with CBS which is automatic and instantaneous Utility Bill Payments Renewal of term deposit which is automatic and instantaneous

C. SMART CARD:

Banks are adding chips to their current magnetic stripe cards to enhance security and offer new service, called Smart Cards. Smart Cards allow thousands of times of information storable on magnetic stripe cards. In addition, these cards are highly secure, more reliable and perform multiple functions. They hold a large amount of personal information, from medical and health history to personal banking and personal preferences D. E-CHEQUE: An e-Cheque is the electronic version or representation of paper cheque. It can now be used in place of paper cheques to do any and all remote transactions.

An E-cheque work the same way a cheque does, the cheque writer "writes" the e-Cheque using one of many types of electronic devices and "gives" the e-Cheque to the payee electronically. The payee "deposits" the Electronic Cheque receives credit, and the payee's bank "clears" the e-Cheque to the paying bank. The paying bank validates the e-Cheque and then "charges" the check writer's account for the check E. MOBILE BANKING : Mobile banking is a term used for performing balance checks, account transactions, payments, credit applications and other banking transactions through a mobile device such as a mobile or Personal Digital Assistant . The earliest mobile banking services were offered over SMS. With the introduction of the first primitive smart phones with WAP support enabling the use of the mobile web in 1999, the first European banks started to offer mobile banking on this platform to their customers.

The Common Language Runtime

The Common Language Runtime (CLR) is the engine that supports all the .NET languages. Most modern languages use runtimes, these runtimes may provide libraries used by the language, or they may have the additional responsibility of executing the code (as with Java). Runtimes are nothing new, but the CLR represents a radical departure from Microsofts previous strategy. To start, the CLR and .NET framework are much larger and more ambitious. The CLR also provides a whole set of related services such as code verification, optimization, and garbage collection, and can run the code from any .NET language. However, before it can be executed by the CLR, any source code that you develop (in C# or some other language) needs to be compiled. Compilation occurs in two steps in .NET:

1.

Compilation of source code to IL

2.

Compilation of IL to platform-specific code by the CLR

This two-stage compilation process is very important, because the existence of the IL (managed code) is the key to providing many of the benefits of .NET. 4. Features of Dot Net

Simple: Dot Net framework supports a very user friendly IDE Visual Studio which makes dot net very simple. Visual Studio supports a rich set of design tools, including a well known set of debugging tools and IntelliSense, which catches errors and offers suggestions as you type. It also supports the robust code-behind model, which separates the .NET code you write from the web-page markup tags.

Platform independence: First, it means that the same file containing IL code instructions can be placed on any platform; at run-time the final stage of compilation can then be easily accomplished so that the code will run on that particular platform. platform independence. In other words, by compiling to IL you obtain platform independence for .NET, in much the same way as compiling to Java byte code gives Java

Performance improvement: Instead of compiling the entire application in one go (which could lead to a slow start-up time), the JIT compiler simply compiles each portion of code as it is called (just-in-time). When code has been compiled once, the resultant native executable is stored until the application exits; so that it does not need to be recompiled the next time that portion of code is run.

Common Type System: This data type problem is solved in .NET through the use of the Common Type System (CTS). The CTS defines the predefined data types that are available in IL, so that all languages that target the .NET Framework will produce compiled code that is ultimately based on these types.

Common Language Specification: The Common Language Specification (CLS) works with the CTS to ensure language interoperability. The CLS is a set of minimum standards that all compilers targeting .NET must support. CLS works in two ways. First, it means that individual compilers do not have to be powerful enough to support the full features of .NET this should encourage the development of compilers for other programming languages that target .NET. Second, it provides a guarantee that, if you restrict your classes to exposing only CLS-compliant features, code written in any other compliant language can use your classes. Garbage collection: The .NET runtime relies on the garbage collector instead. This is a program whose purpose is to clean up memory. The idea is that all dynamically requested memory is allocated on the heap (that is true for all languages, although in the case of .NET, the CLR maintains its own managed heap for .NET applications to use). , when .NET detects that the managed heap for a given process is becoming full and therefore needs tidying up, it calls the garbage collector.

Security: .NET can really excel in terms of complementing the security mechanisms provided by Windows because it can offer code-based security, whereas Windows only really offers role-based security.

Rich API (Application Programmers Interface) / Namespaces: .Net API is very rich as compared to other languages.

Robust : Most programs fail for one of the two reasons: (i) (ii) Memory Management Exceptional conditions at run time

While designing the language one of the aim was to ensure that .Net programs are as robust as possible i.e. they should rarely fail. So due importance was given to the above two factors in the .Net.

Better support for Dynamic Web Pages: .Net offers an integrated support for web pages, using a new technology ASP.NET. With ASP.Net, code in your page is compiled, and may be written in a any of the .Net languages like C#, J# or VB.Net Efficient Data Access: A set of .Net components, collectively known as ADO.NET provides efficient access to relational databases and variety of data sources. Components are also available to allow access to the file system and to directories.

Object-Oriented: C# is based on object-oriented paradigm. Object-oriented programs are organized around data (i.e. objects) and a set of well-defined interfaces (public methods) to that data.

Introduction to Web Applications in Dot Net

1. Introduction Web applications run on the Web Server. Web applications are accessed through web clients i.e. web browsers like Internet Explorer or Netscape. Whenever you access some web site by specifying the URL (Universal Resource Locator), you are accessing some web application. The main components of a web application written in .net are:

 ASP.Net (aspx files) HTML ASP.Net (aspx file) are also .net programs, which run on the Server and then send the result/response to the client. Aspx pages can be thought of as a combination of HTML and C# or VB. net or any .net compatible language code. You access the web application by specifying the URL. If the URL corresponds to an

HTML page the web server simply returns the HTML page to the client, which then displays it. If the URL corresponds to the aspx, then it is executed on the Server and the result/response is returned to the client, which is then displayed by the client. A web application is nothing but a web-site. 2. Web Client: In web client based architectures, the user interaction layer is separated from the traditional client layer. Web browser manages the user interaction but leaves the rest to applications on the server side, including the logic for driving the user interface, interacting with components in the middle-tier, and accessing databases.

3. The HTTP Protocol: The HTTP is an application level protocol (generally implemented over TCP/IP Connection). The HTTP is a stateless protocol based on requests & responses. In this paradigm, client application (such as your web browser) sends request to the server (such as the web server of an online store) to receive info (such as downloading a catalog) or to initiate specific processing on the server (such as placing an order).

4.The Requirements for Developing & Hosting Web Applications: The following are the most essential requirements for developing and hosting web applications: (ii) Server-side Runtime Support - This includes support for network services and a runtime for executing the applications.

(iii) Deployment Support Deployment is the process of installing the application on the server. Deployment could also include customizing the application. For building and running web applications, the .NET provides the following to meet each of the above requirements: (i) ASPX Pages: These are the building blocks for developing web Applications in .NET. ASPX pages can be developed using any dot net compatible language. (ii) Web development Server for Hosting Web Applications: IIS is providing .NET runtime for providing all the facilities for writing web applications in .NET. The IIS is responsible for initializing, invoking and managing the life cycle of ASPX files (iii) Packaging Structure & Deployment Descriptor The .NET specification defines a packaging structure for web applications. The specification also defines a deployment descriptor for each web application. The deployment descriptor is an XML file that lets you customize the web application at deployment time ASP.NET Applications ASP.NET applications are divided into multiple web pages. This division means that a user can often enter an ASP.NET application at several different points, and follow a link out of your application to another part of your web site or another web server.

3.2.3 Economic Personal Banking including personal finance, banking on an international arena, banking on a priority basis. Transaction Banking includes management of cash, facilities related to credit availability and services related to trade. Relationship services with the investors. Depository Services including dematerialized account openings and associated updates.

Internet Banking services comprising of account specifications, transaction details, performance of monetary transactions, bill payment through electronic means, etc Latest All the News and updates related to related the bank to the the market head of (world/national) About Us information under

Specifications and online availability of loans, debit and credit cards, insurance and other investment services. 4. System Design

4.1 Scope: Though there are many online systems available on internet but this can compete with them with some advancement in its functionality and can be used by any bank organization to maintain their customers account and online transaction process.

The basic functionalities of the system are: Create Account Login Update Profile Password Recovery View Profile ATM and Bank finder Contact Form Amount Transaction EMI and Loan Calculator Delete account Logout

4.2 Database design:

Database design is required to manage the large bodies of information. The management of data involves both the definition of structure of the storage of information and provisions of mechanism for the manipulation of information. in addition to the database system must provide for the safety of information handled, despite the system crashes due to attempts art unauthorized access. for developing an efficient data base , we will have to full fill certain condition such as: Control Redundancy Ease of use Accuracy and integrity Avoiding inordinate delays Recovery from failure Privacy and security Performance

There are 6 major steps in design process. The first 5 steps are usually done on paper and finally the design is implemented. Identify the tables and relationship Identify the data that is needed for each table and relationship Resolve the relationship Verify the design Implement the design
NORMALIZATION

Normalization is a technique that is more applicable to record based data models. Each of the process can be carried out independently to arrive at normalized tables. Normalization refines the data structure and data are group in simple way as

possible. So later changes can be bring about the least impact on database structure and eliminates data redundancy.

DATA INTEGRITY

Data integrity refers to the procedure that ensures correctness of the data entered in the database. Functions have been provided in the software, which check data while being entered. Integrity problems are occurred due to hardware or software malfunctions such as power failure and disk crashes. Side effect from the program development may also be the reason.

DATA CONSISTENCY

Problem with data consistency occur when adding records without first checking for records with same key or deleting records without deleting other related records. Likewise the software is coded such that primary keys cant be duplicated. For developing an efficient database, we have to fulfill certain conditions such as : Control redundancy Ease of use Data independence Privacy and security Performance For achieving the above criterias we have to make use of various features that are available with DBMS such as: Enforcing integrity constraints to ensure data integrity and to reduce data inconsistency.

 Recovery from failures using backup facility.

DATABASE TABLES AND STORED PROCEDURES

DATABASE TABLES 1. bk_register This table has been included in many modules such as Login, register, Update, View Profile, Transaction, Password Recovery.

2.contact
This table has been used in the contact page where user can submit the feedback and queries along with his name and email id.

3.loc
This table has been used in the ATM and Bank finding Module where one can find the address of ATM or bank by providing the type and the state.

* STORED PROCEDURES A stored procedure is a subroutine available to applications accessing a relational database system. Stored procedures (sometimes called a proc, sproc, StoPro, StoredProc, or SPS) are actually stored in the database data dictionary.

Following are the stored procedures used in this system : sps_contact sps_forgot Sps_Global sps_loc sps_register sps_transac

Eg. Sample code of sps_contact

We can avail the following services through E-Banking:

Bill payment service
You can facilitate payment of electricity and telephone bills, mobile phone, credit card and insurance premium bills as each bank has tie-ups with various utility companies, service providers and insurance companies, across the country. 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. 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 payees'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 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.

Investing through Internet Banking 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. Recharging your prepaid phone Now just top-up your prepaid mobile cards 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.

Shopping 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.

Advantage Of Internet Banking

As per the Internet and Mobile Association of India's report on online banking 2006, "There are many advantages of online banking. It is convenient, it isn't bound by operational timings, there are no geographical barriers and the services can be offered at a very low cost."

Through Internet banking, you can check your transactions at any time of the day, and as many times as you want to. Where in a traditional method, you get quarterly statements from the bank. If the fund transfer has to be made outstation, where the bank does not have a branch, the bank would demand outstation charges. Whereas with the help of online banking, it will be absolutely free for you.

Security Precautions
Customers should never share personal information like PIN numbers, passwords etc with anyone, including employees of the bank. It is important that documents that contain confidential information are safeguarded. PIN or password mailers should not be stored, the PIN and/or passwords should be changed immediately and memorised before destroying the mailers.

Customers are advised not to provide sensitive account-related information over unsecured e-mails or over the phone. Take simple precautions like changing the ATM PIN and online login and transaction passwords on a regular basis. Also ensure that the logged in session is properly signed out.

PLASTIC CARDS AS MEDIA FOR PAYMENT:There are four types of plastic cards being used as media for making payments. These are:
1. Credit Card 2. Debit Card 3. Smart Card 4. ATM Card 1. Credit Cards: The Credit Card is a post paid card. The credit card enables the cardholders to: Purchase any item like clothes, jewellery, railway/air tickets, etc. Pay bills for dining in a restaurant or boarding and lodging in hotel etc. 2. Debit Cards: A Debit Card, on the other hand, is a prepaid card with some stored value. Every time a person uses this card, the Internet Banking house gets money transferred to its account from the bank of the buyer. The buyers account is debited with the exact amount of purchases. 3. Smart Cards: Smart Cards have a built-in microcomputer chip, which can be used for storing and processing information. For example, a person can have a smart card from a bank with the specified amount stored electronically on it. The specified amount is utilized by the customer, he can approach the bank to get his card validated for a further specified amount. Such cards are used for paying small amounts like telephone calls, petrol bills etc. 4. ATM Cards: The card contains a PIN (Personal Identification Number) which is selected by the customer or conveyed to the customer and enables him to withdraw cash up to the transaction limit for the day. He can also deposit cash or cheque.

Role of customer when using e-banking

You can access Internet Banking only by using your User ID and Password. During the first login attempt, it is mandatory to change both passwords login and transaction which would have been mailed to you by the bank. If you forget your password, you will have written to us using the "Email Us" option. The Bank will then issue a new password and send it to your mailing address as per our records. Kindly check with your branch that this address is updated...

Make sure no one can see the account login name or password you are entering when you log on to INGVYSYABANK.COM

Logout of INGVYSYABANK.COM before moving on to other Websites. Before leaving the PC please "close" the browser. Do not write your INGVYSYABANK.COM login name or password anywhere.

Do not leave your login name and password such that someone sitting at your computer could see them.

Never present your INGVYSYABANK.COM login name and password to anyone (no representative of ING VYSYA BANK will ever ask you for your INGVYSYABANK.COM password).

Notify ING VYSYA Bank immediately if you notice any unusual account activity.

Keep all documents that include your account information in a secure location.

When you login you can view the date and time of your last log in.

Features offered by ING Vysya Bank for internet banking

Balance enquiry and statement Transfer fund online Card to card fund transfer Use debit card online Prepaid mobile recharge Subscribe for mobile banking Lock / activate debit cards /ATM Request a cheque book Stop payment

USE OF E-BANKING IN INDIA FROM LAST FEW YEARS Year Incr.% 2003 9 2004 12 2005 15 2006 20 2007 25 2008 32 2009 40 2010 50

Finding From 2003-2010 , the user of the E-banking is increasing every year.

CHAPTER-4 DATA ANALYSIS

Data analysis
1) Users of E-banking

Yes No

65% 35%

Currently 65 % of the bank customers availing the facility of NET BANKING

2) No. of user of the banks

SBI ICICI HDFC ING Vysya Other Banks

30% 20% 10% 5% 35%

3) Preference for online bill payment services Yes No 60% 40%

Majority of the customers are now opt online bill payment. i.e. 60% of the bank customers are now using online bill payment.

4) Preference for online shopping

Yes No

70% 30%

Similarly, 70% of the customers are now using online shopping that saves the precious time of the customers.

5) Preference for online fund transfer Yes No 35% 65%

Only few customers are using the online fund transfer facility i.e. 35%

6) Satisfied Customers Yes No 65% 35%

Most of the customer are satisfied with the E-Banking as they save their time and have found full security for their transaction online.

CHAPTER-5

Findings
1. In the users ratio of internet banking 65% of customers are using this service. 2. In these services the ING VYSYA bank is top in service of NET BANKING 3. The services that are mostly used by maximum customers are transactions, online trading, bill payment, shopping etc. 4. The mode of transaction that a customer used more rottenly is through cash, cheque & e-banking respectively. 5. Different banks charge different rates for online service.

Suggestions
1. Demonstration of E-Banking should be provided to the existing customers to promote NET BANKING 2. Encourage customers that E-banking is totally safe if you take necessary precautions like protect your password from others. 3. Provide discounts on shopping through NET BANKING

Conclusion
The basic objective of my research was to analyze the awareness among customers for internet banking in INDIA. It gives direction to research tools, research types and techniques. Although the findings reveal that people know about the services but still many people are unaware and many of them are non users so the bank should by promotion try to aware the customers about the benefits of NET BANKING Banks should look forward to have some tie ups with other financial institutions to increase the service base.

Bibliography
Collection of information for the research is taken from the ING VYSYA Bank website (www.ingvysyabank.com) and other websites like :
www.google.com www.economictimes.com www.wikipedia.com www.worldjute.com

ANNEXURE
A.Questionnaire:1. Name of the customer:-

2. Do you like E-banking a. Yes b. No

3. Tick which bank you preferred a. ICICI b. SBI c. Axis d. HDFC e. PNB f. ING VYSYA g. Any Other

4. Why this bank a. Service is good b. They provide security c. Cheaper service fees.

5. Which type of service mostly you use? a. Online Bill Payments b. Transfer fund online c. Online shopping d. A and B e. B and C f. A and C g. All h. none 6. Services of the bank are. a. poor b. good

c. Very good

7. Are you satisfied with the using of E-banking? a. Yes b. No