SBI Soubika

SBI ONLINE SAVINGS BANK ACCOUNT
CHAPTER 1
COMPANY PROFILE
Page 1 of 70
1. INTRODUCTION TO STATE BANK OF INDIA:
1.1 BRIEF PROFILE OF ORGANIZATION:

ORIGIN, ESTABLISHMENT & AIM OF THE COMPANY
The origin of the State Bank of India goes back to the first decade of the nineteenth
century with the establishment of the Bank of Calcutta in Calcutta on 2nd June 1806. Three
years later the bank received its charter and it was re-designed as the Bank of Bengal (2nd
January 1809). A unique institution, it was the first joint-stock bank of British India
sponsored by the Government of Bengal. The Bank of Bombay (15th April 1840) and the
Bank of Madras (1st July 1843) followed the Bank of Bengal. These three banks remained at
the apex of modern banking in India till their amalgamation as the Imperial Bank of India on
27th January 1921.
State
Bank
of
India (SBI)
is
the
largest
banking
and financial
services company in India. It is a state-owned corporation with its headquarters in Mumbai,

Maharashtra. The bank traces its ancestry to British India, through the Imperial Bank of
India, to the founding in 1806 of the Bank of Calcutta, making it the oldest commercial bank
in the Indian Subcontinent. Bank of Madras merged into the other two presidencies banks
Bank of Calcutta and Bank of Bombayto form the Imperial Bank of India, which in turn
became the State Bank of India. The Government of India nationalized the Imperial Bank of
India in 1955, with the Reserve Bank of India taking a 60% stake, and renamed it the State
Bank of India. In 2008, the government took over the stake held by the Reserve Bank of
India. SBI is ranked #292 globally in Fortune Global 500 list in 2011.
SBI provides a range of banking products through its vast network of branches
in India and overseas, including products aimed at non-resident Indians (NRIs). The State
Bank Group, with over 16,000 branches, has the largest banking branch network in India. SBI
has 14 local head offices situated at Chandigarh, Delhi, Lucknow, Patna, Kolkata, Guwahati
(North East Circle), Bhuwaneshwar, Hyderabad, Chennai, Trivandrum, Bangalore, Mumbai,
Bhopal & Ahmadabad and 57 Zonal Offices that are located at important cities throughout
the country. It also has around 130 branches overseas.
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It aims to retain the banks position as the premier Indian financial services. It also aims to be
a group with world class standards and significant global business commitments to excellence
in customer, shareholder and employee satisfaction so as to play a leading role in expanding
and diversifying financial services while continuing emphasis on its development banking
role.
KEY DATES:
1806: The Bank of Calcutta is established as the first Western-type bank.
1809: The bank receives a charter from the imperial government and changes its name to
Bank of Bengal.
1840: A sister bank, Bank of Bombay, is formed.
1843: Another sister bank is formed: Bank of Madras, which, together with Bank of Bengal
and Bank of Bombay become known as the presidency banks, which had the right to
issue currency in their regions.
1861: The Presidency Banks Act takes away currency issuing privileges but offers incentives
to begin rapid expansion, and the three banks open nearly 50 branches among them by
the mid-1870s.
1876: The creation of Central Treasuries ends the expansion phase of the presidency banks.
1921: The presidency banks are merged to form a single entity, Imperial Bank of India.
1955: The nationalization of Imperial Bank of India results in the formation of the State
Bank of India, which then becomes a primary factor behind the country's industrial,
agricultural, and rural development.
1969: The Indian government establishes a monopoly over the banking sector.
1972: SBI begins offering merchant banking services.
1986: SBI Capital Markets is created.
1995: SBI Commercial and International Bank Ltd. are launched as part of SBI's stepped-up
international banking operations.
1998: SBI launches credit cards in partnership with GE Capital.
2002: SBI networks 3,000 branches in a massive technology implementation.
2004: A networking effort reaches 4,000 branches.
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JOURNEY AND VISION OF SBI

The State Bank of India, the countrys oldest Bank and a premier in terms of balance
sheet size, number of branches, market capitalization and profits. The bank is entering into
many new businesses with strategic tie ups
a) Pension Funds,
b) General Insurance,
c) Custodial Services,
d) Private Equity,
e) Mobile Banking,
f) Point of Sale Merchant Acquisition,
g) Advisory Services,
h) Structured products etc.
The Bank is forging ahead with cutting edge technology and innovative new banking models,
to expand its Rural Banking base, looking at the vast untapped potential in the hinterland and
proposes to cover 100,000 villages in the next years. It is also focusing at the top end of the
market, on whole sale banking capabilities to provide Indias growing mid / large Corporate
with a complete array of products and services. Today, the Bank is the largest provider of
infrastructure debt and the largest arranger of external commercial borrowings in the country.
It is the only Indian bank to feature in the Fortune 500 list.
The Bank is changing outdated front and back end processes to modern customer friendly
processes to help improve the total customer experience. With about 8500 of its own 10000
branches and another 5100 branches of its Associate Banks already networked, today it offers
the largest banking network to the Indian customer.
The Bank is also in the process of providing complete payment solution to its clientele with
its over 8500 ATMs, and other electronic channels such as Internet banking, debit cards,
mobile banking, etc. With four national level Apex Training Colleges and 54 learning
Centres spread all over the country the Bank is continuously engaged in skill enhancement
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of its employees. The bank is also looking at opportunities to grow in size in India as well as
internationally. It presently has 82 foreign offices in 32 countries across the globe.
It has also 7 Subsidiaries in India
a) SBI Capital Markets,
b) SBICAP Securities,
c) SBI DFHI,
d) SBI Factors,
e) SBI Life and
f) SBI Cards
It is in the process of raising capital for its growth and also consolidating its various holdings.
In a recently concluded mass internal communication program termed Parivartan the Bank
rolled out over 3300 two day workshops across the country and covered over 130,000
employees in a period of 100 days using about 400 Trainers, to drive home the message of
Change and inclusiveness. The CNN IBN, Network 18 recognized this momentous
transformation journey, the State Bank of India is undertaking, and has awarded the
prestigious Indian of the Year Business, to its former Chairman, Mr. O. P. Bhatt in January
2008.
POSITION OF THE COMPANY
SBI is a regional banking behemoth and is one of the largest financial institutions in the
world. It has a market share among Indian commercial banks of about 20% in deposits and
loans. The State Bank of India is the 29th most reputed company in the world according to
Forbes. Also, SBI is the only bank featured in the coveted "top 10 brands of India" list in an
annual survey conducted by Brand Finance and The Economic Times in 2010.
The State Bank of India is the largest of the Big Four banks of India, along with ICICI
Bank, Punjab National Bank and HDFC Bankits main competitors.
SERVICES & PRODUCTS
a) Banking services
b) NRI services
c) International banking
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d) Corporate banking
e) Agricultural banking
f) International banking
g) Advantage (Khata)
h) Advantage plus (Khata plus)
i) CINB (Saral)
j) Privilage (Vyapar)
k) Freedom (Vistar)
l) Electronic Vendor Finance
m) Electronic Dealer Finance
n) Direct Debit
o) E-collection
SBI RETAIL BANKING
a) Term Deposits
b) Recurring Deposits
c) Housing Loan
d) Educational Loan
e) Personal Loan
f) For Pensioners
g) Against Mortgage of Property
h) Against Shares & Debentures
i) Plus Scheme
j) Medi-Plus Scheme
k) Rates of Interest
SERVICES
a) Access to multiple users
b) Account view / Statement
c) Funds Transfer
d) Third party funds transfer (RTGS/NEFT)
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e) Demand Draft request

f) Utility Bill Payment
g) Bulk transaction through file upload
h) Direct and indirect tax payment
i) SMS/Email alerts
j) User hierarchy with discretionary access/rights to accounts
k) MIS reports
l) Host to Host integration
m) Demat View facility
BOARD OF DIRECTORS OF THE COMPANY
After the end of O. P. Bhatt's reign as SBI chairman on March 31, 2011, the post was
taken over by Pratip Chaudhuri, who was the former deputy managing director of the
International division of SBI. As of 06th February, 2013, following is the complete list of the
Board members:
SR.
NO.
NAME
DESIGNATION
Shri Pratip Chaudhuri
Chairman
Shri Hemant G. Contractor
Shri Diwakar Gupta
Managing Director
Shri A. Krishna Kumar
Managing Director
Shri S.Vishvanathan
Managing Director
Shri S. Venkatachalam
Director
Shri D. Sundaram
Director
Shri Parthasarathy Iyengar
Director
Shri Thomas Mathew
Director
10
Shri Jyoti Bhushan Mohapatra
Workmen Employee Director
11
Shri S.K. Mukherjee
Officer Employee Director
Managing Director
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12
Dr. Rajiv Kumar
Director
13
Shri Deepak Amin
Director
14
Shri Harichandra Bahadur Singh
Director
15
Shri Rajiv Takru
Director
16
Dr. Urjit R. Patel
Director
ASSOCIATE BANKS OF SBI

SBI has five associate banks; all use the same logo of a blue circle and all the associates
use the "State Bank of" name, followed by the regional headquarters' name:
1. State Bank of Bikaner & Jaipur
2. State Bank of Hyderabad
3. State Bank of Mysore
4. State Bank of Patiala
5. State Bank of Travancore
SYMBOL AND SLOGAN
The symbol of the State Bank of India is a circle and a small man at the center of the
circle (and not a key hole). A circle depicts perfection and the common man being the
center of the bank's business.
Slogans : "Pure banking nothing else"
Also includes : "With you - all the way" and : "the banker to every Indian"
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1.2 NATURE OF THE PROJECT:

The title of the project is Study of launch of SBIs new Tech product Online Savings
Bank account. This product was launched very recently i.e. on 4th December 2012,
since this launch was one of its kinds for SBI, and also that it relates to the use of
computer technology, a need was felt to study its process flow and make both the
employees of the bank as well as the customers aware about its benefits. It is basically a
research project aimed to find out how the product works, its current status in terms of
popularity, awareness etc and further to suggest measures to improve its popularity and
highlight its benefits amongst the common masses.
1.3 BRIEF OBJECTIVES/ RESPONSIBILITIES ASSIGNED BY

THE PROJECT MENTOR:
Create awareness about SBI online savings account product.
Help customers open up accounts online.
Motivate customers to make least physical visits to the branch.
Help customers in case they face problems opening accounts online
Study the KYC guidelines
Encourage customers to fulfill all the KYC guidelines while opening their
accounts.
Assist in opening of lockers in the branch.
Make customers aware about other tech products like mobile banking,
internet banking, ATM cum debit card, etc. associated with the Savings
Bank Account.
Page 9 of 70
1.4 PROFILE OF SBI BRANCH: K M SAMBA

BRANCH INFORMATION : KELHI MANDI,SAMBA
1.
DATE OF OPENING
8TH JAN 1981
2.
CIRCLE NAME
CHANDIGARH
3.
LOCKER FACILITY
YES
4.
BRANCH MANAGER
MR. ROMESH KUMAR
STAFF STRENGTH
1.
OFFICERS
2.
ASSISTANTS
3.
MESSENGERS
4.
GUARDS
The branch was opened in the year 1981 at Kehli Mandi, Distt-Samba.
The branch falls in region 3, in Module Jammu, under Chandigarh circle and
covers a rural population type.
The branch has 12 ATMs linked and provides locker facility and has 32,000
Savings Bank account customers.
Present Business level of the Branch is 165 crores.
Per employee profit is 20 Lacs and per employee business is 9.16 crores.
Profit of the Branch as on 31-03-13 is 3.06 Lacs.
Incumbency of the Branch: Chief Manager.
Its the Lead Bank in Distt-Samba and in Samba town is at Rank-2 Business
wise.
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1.5 BRIEF PROFILE OF STUDENT:

A Computer Science (CS) Engineer from Mahant Bachittar Singh College of
Engineering and Technology (MBSCET), Jammu, and currently pursuing MBA from The
Business School, University of Jammu.
Banking has always been my area of interest since childhood and I always wanted to do
my summer internship from the leading bank of Jammu and Kashmir. And this dream
came true with my wonderful experience at State Bank Of India during my summer
training for a period of 2 months.
PERSONAL INFORMATION:
a) NAME : Ms. Soubhika Sharma
b) DATE OF BIRTH : 20th Jan 1990
c) EDUCATIONAL QUALIFICATION: B.E.(Hons), Computer Science
Currently pursuing MBA, from The Business School,
Jammu University
d) E-MAIL ID: soubhikasharma@gmail.com
e) CONTACT NO.: +9469211422
1.6 BRIEF PROFILE OF PROJECT MENTOR AT THE BANK:

PERSONAL INFORMATION:
a) NAME: Mr. Romesh Kumar
b) EDUCATIONAL QUALIFICATION: Post Graduate, Commerce
c) JOB PROFILE: Chief Manager. Currently serving at SBI, K M
Samba
d) CONTACT NO.:+9469385011
Page 11 of 70
CHAPTER 2
FRAMEWORK OF STUDY
(INTRODUCTION)
Page 12 of 70
2. FRAMEWORK OF STUDY
2.1 INTRODUCTION TO SAVINGS ACCOUNT
Savings accounts are one of the most popular deposit accounts for individuals in India. In
such accounts, the depositor is normally issued a cheque book and debit cum ATM card and
the customer is allowed the flexibility of deposits of any amount and withdrawal of funds
from the account at any time. Although, most of the banks have rules for the maximum
number of withdrawals in a period and the maximum amount of withdrawal, yet no bank
strictly enforces these owing to competition in the banking circles. However, banks have
every right to enforce such restrictions if it is felt that the account is being misused as a
current account. These are the basic accounts used by public for savings and making
payments by cheques.
A savings account is basically a deposit account held at a bank or other financial institution
that provides principal security and a modest interest rate. Savings accounts are generally for
money that you don't intend to use for daily expenses. To open a savings account, simply go
down to your local bank with proper identification and address proof and ask to open an
account. Commercial banks (like ICICI, HDFC, etc.); co-operative banks (like Saraswat,
Cosmos, etc.), public sector banks (like State bank of India, Bank of India, etc.) and postal
departments accept deposits by way of opening savings bank account with them.
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The 'savings account' is generally opened in bank by salaried persons or by the persons who
have a fixed regular income. This facility is also given to students, senior citizens, pensioners,
and so on. Savings accounts are opened to encourage the people to save money and collect
their savings.
In India, savings account can be opened by depositing 100 to 5000. The savings account
holder is allowed to withdraw money from the account as and when required. The interest
which is given on savings accounts is sometimes attractive, but often nominal. These days the
banks open Savings Bank Account with zero balance also to attract more and more
customers. Further, as per financial inclusion initiative of the Govt. the banks are supposed to
open No Frill Accounts means accounts of poor population which are opened with zero
balance.
In India, at present, the rate of interest for savings account ranges between 4% to 6% per
annum. The interest rates vary as per the amount of money deposited (lying) in the savings
bank account, scheme opted, and its maturity range. It is also subject to current trend of
banking policies in a country.
The most common type of bank account, and probably the first account one will ever have
(after a checking account), is a savings account. Savings account allows one to keep his/her
money in a safe place while it earns a small amount of interest each month. These accounts
usually require either a low minimum balance, or may require no minimum balance at all.
This depends on the bank and the type of account.
Besides the fact that one will be less likely to spend it, putting ones money in a savings
account is safer because it is insured. If the home is robbed or burns down, ones money may
be lost forever. Banks and credit unions, on the other hand, keep ones money in a locked and
fireproof safe. Banks insure ones money through the DICGC (Deposit Insurance and Credit
Guarantee Corporation). This means that even if the bank goes out of business (which is very
rare!) the money will still be there. When one puts his money into a savings account, it earns
interest. Interest is the money that bank pays, so that they can use your money to fund loans
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for other people. That doesn't mean you can't have your money whenever you want it,
though. That's just how banks make money -- by selling money! Basically, it works like this:
A person opens a savings account at the bank.
The bank pays him interest on the money that he deposits and leaves in that account.
The bank then loans that money out to other people, only they charge a slightly
higher interest rate on the loan than what they pay him for his account.
The difference in interest that they pay to a person verses the interest they charge others is
part of how they stay in business. Interest on savings accounts is usually compounded daily
and paid monthly. The interesting thing about compounded interest is that the bank is paying
you interest on the money that it has lent to others. That means that if your account earns one
percent interest, then each day 1/365th of that one percent of the amount of money you have
in your savings account is then added to your total. This is how it is calculated:
Daily compounding = Principal (1 + interest rate/365)365
= (daily compounded amount)
INTEREST ON SAVINGS ACCOUNTS - IS IT REGULATED BY RBI?
Till 24/10/2011, the interest on Savings Fund accounts was regulated by RBI and it was
4.00% p.a. on daily balance basis. However, w.e.f. 25th October, 2011, RBI has deregulated
SB interest rates and banks are now free to decide the same within certain conditions imposed
by RBI.
WHICH BANKS ARE PAYING MAXIMUM INTEREST RATES ON SAVINGS
ACCOUNTS?
Sometimes a question is asked as to which is the best bank for opening a Savings account?
Frankly speaking there is no straight forward answer to this query, as all banks offer almost
similar facilities to Savings Bank account holders i.e. allowing deposit and withdrawals with
cheque book facilities. However, the customer service and rate of interest varies from bank
to bank and more so from Branch to Branch also. With the usage of ATM card, internet
banking, mobile banking facilities one needs to go to bank only on rare occasions.
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Therefore, now rate of interest is becoming a major deciding factor for opening a new
account. After deregulation by RBI of the Savings Bank interest, each bank is free to fix its
rate of interest on Savings Funds. On the very first day of deregulation, Yes Bank announced
the increase of Savings Fund Interest from 4% to 6%.
In December 2012, Competition Commission of India decided to take a look at the banking
sector of India. Most of the public sector banks offer common 4 percent interest rates even
though the Reserve Bank of India moved to an unregulated regime in October 2011.
For banks, current accounts (CA) and savings accounts (SA) are the steadiest and cheapest
source of funds. Banks usually target at least 30 percent of their total deposits from CA and
SA. Following information has been taken from www.siliconindia.com
a) YES BANK: SAVINGS ACCOUNT INTEREST RATE: 6 PERCENT
Yes Bank is a private bank in India. It was founded by Ashok Kapur and Rana Kapoor, with
the duo holding a collective financial stake of 27.16 percent. The bank provides a higher
return of 7 percent p.a. on Savings Account for balance more than 1 lakh & 6 percent p.a.
for balance up to 1 lakh.
b) KOTAK MAHINDRA: SAVINGS ACCOUNT INTEREST RATE: 6 PERCENT
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Kotak Mahindra is an Indian financial service firm established in 1985. It was previously
known as Kotak Mahindra Finance Limited, a non-banking financial company.
From 1st November, 2011, the bank offers 6.0 percent interest p.a. on Savings Account
balance over 1.lakh and 5.5 percent p.a. on balance up to 1 lakh.
c) INDUSIND BANK: SAVINGS ACCOUNT INTEREST RATE: 5.50 PERCENT
IndusInd Bank offers 5.5 per cent for below 1 lakh and 6 per cent above 1 lakh savings
account deposits. IndusInd Bank Limited is a Mumbai based India new generation bank,
established in 1994. The bank offers commercial, transactional and electronic banking
products and services. Indusind Bank was incorporated in April 1994 by Dr. Manmohan
Singh the then Union Finance Minister.
d) CITIBANK: SAVINGS ACCOUNT INTEREST RATE: 7.25 PERCENT
Citibank provides 7.25 percent interest on amount below 15 Lakhs kept for tenure of 271 to
364 days. The average monthly relationship value requirement for this account is 2 Lakhs,
which includes balances across savings, term deposits, investments, insurance, outstanding
principal on home loan and Citibank Demat Account. Citibank, one of the major international
banks, is the consumer banking arm of financial services giant Citigroup.
Page 17 of 70
e) STATE BANK OF INDIA: SAVINGS ACCOUNT INTEREST RATE: 4.00

PERCENT P.A.
State Bank of India (SBI) is a multinational banking and financial services company
based in India. It is a state-owned corporation with its headquarters in Mumbai,
Maharashtra. As on December 2012, it had assets of $501 billion and 15,003
branches, including 157 foreign offices making it the largest banking and financial
services company in India by assets. SBI provides 4.00 percent interest rate per
annum on its savings account.
f) ICICI BANK: SAVINGS ACCOUNT INTEREST RATE: 4.00 PERCENT P.A.
ICICI Bank provides 4.00 percent interest per annum on its savings account with a
minimum balance of 10, 000 for metro and urban cities, 5,000 for semi urban
and 2, 000 for rural areas. ICICI Bank Limited is an financial services company
headquartered in Mumbai, Maharashtra.
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2.2 HISTORY OF SAVINGS ACCOUNT
Savings accounts are one of the basic accounts individuals may open with a retail
financial intuition. These accounts function as storage of financial instrument, and pays
interest. The history of savings accounts dated back to the 1500s, when Amsterdam in
Holland was a prospering financially due to it being major shipping and trading city. As
there were often surpluses of cash, people looked for a place to store their liquid assets
safely. Cashiers were developed, providing a means of security to store money for a small
fee. The idea soon spread to other countries such as England. From England, these ideas
were carried over to America through English colonies. The idea of a financial institution
developed in Europe as early as the 18th century. In conjunction with the idea of cashiers,
this financial institution, in the form of savings banks, had the objective of providing a
secured savings institution to the population, regardless of social class.
Often than not, these institutions were created based on public initiative. In a few
recorded
circumstances,
socially
dedicated
individuals
also
created
similar
institutionalized foundations to provide similar financial infrastructure for handling and

storing money. The known record of savings bank was said to be established in France in
1765 in the town of Brumuth. However, despite being the known first record of savings
bank, the idea of a savings institution was already suggested in England back in 1697.
Other known beginnings of financial institutions that provided savings accounts were
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savings bank in Hamburg, Germany in 1778, as well as in Berne, Switzerland in 1787.
The first known record in England itself was in 1799.
This later evolved into postal savings banks in 1861. The idea soon spread throughout the
whole world, including the United States which had a spurt of financial institutions
providing savings accounts. All these institutions set the foundation of what a basic
savings account of todays financial services.
2.3
FEATURES OF SAVINGS ACCOUNT
The main features of savings account in bank are as follows:
i.
The main objective of savings account is to promote savings.
ii.
There is no restriction on the number and amount of deposits. However, in India,

mandatory PAN (Permanent Account Number) details are required to be
furnished for doing cash transactions exceeding 50, 000.
iii.
Withdrawals are allowed subject to certain restrictions.
iv.
The money can be withdrawn either by cheque or withdrawal slip of the

respective bank.
v.
The rate of interest payable is very nominal on savings accounts. At present it is

between 4% to 6% p.a in India.
vi.
Savings account is of continuing nature. There is no maximum period of holding.
vii.
A minimum amount has to be kept on savings account to keep it functioning.
viii.
No loan facility is provided against savings account.
ix.
Electronic clearing System (ECS) or E-Banking is available to pay electricity bill,

telephone bill and other routine household expenses.
Page 20 of 70
x.
Generally, equated monthly installments (EMI) for housing loan, personal loan,
car loan, etc., are paid (routed) through savings bank account.
A savings account is an account provided by a bank for individuals to save money and earn
interest on the cash held in the account. A savings account can be used to save money for
specific expenses or for longer-term undefined goals, all while earning interest on the money
in the account.
2.4
ADVANTAGES OF SAVINGS ACCOUNT
Savings accounts are easy to obtain because they generally do not require a credit check.
They are a safe way to store money in a bank. Also, they often offer some small amount of
interest on the money stored in the savings account. The interest is generally less than that of
CDs or money market accounts, but more than offered for checking accounts. Interest is
usually 1 to 2 percent annually.
The advantages of savings account are as follows:
i.
Savings account encourages savings habit among salary earners and others
who have fixed income.
ii.
It enables the depositor to earn income by way of savings bank interest.
iii.
Savings account helps the depositor to make payment by way of issuing

cheques.
iv.
It shows income of a salaried and other person earned during the year.
v.
Savings account passbook acts as an identity and residential proof of the

account holder.
vi.
It provides a facility such as Electronic fund transfer (EFT) to other people's

accounts.
vii.
It helps to do online shopping via facility like internet banking.
viii.
It aids to keep records of all online transactions carried on by the account

holder.
ix.
It provides immediate funds as and when required through ATM.
x.
The bank offers number of services to the savings account holders.

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2.5 USES
Some individuals use savings accounts to save up money for a specific goal, such as a down
payment on a home or a future vacation. Others have no specific plans for the money, but use
the account as a way to store their cash in a safe place while earning a return on it. Some
savings accounts are used as an emergency fund, allowing an individual or family to save
money safely to be used in case of emergency circumstances, such as job loss or
hospitalization. An ATM-cum-debit card can often be linked to a savings account, this card
can also be used at Point Of Sales machines to buy things at stores.
FINANCIAL INSTITUTIONS
Most banks, credit unions, and savings and loan associations offer savings accounts. The
financial institution offering savings accounts will generally use the money in savings
accounts to fund loans serviced by the bank, providing the income that is then used to pay the
interest accrued for savings accounts.
SAFETY
Savings accounts are considered extremely safe. In the U.S., they are backed by guarantees
by the federal government, which means that even if the bank fails, your money in a savings
account is insured up to $250,000 and will be returned to you.
2.6 DRAWBACKS
The major drawback of savings account is the lower interest rates associated with it (although
few banks do claim higher interest rates). Savings accounts offer limited use of the funds in
the account because they are generally not available for paying bills or buying items directly
but through cheques or debit cards. Some accounts have Internet access, which can be used to
move money from the savings account to other accounts, but some savings accounts require
the account holder to physically go to the bank in order to deposit or withdraw money.
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2.7
TYPES OF SAVINGS ACCOUNTS
The amount of interest ones money earns in a savings account often depends on the type of
financial institution one has selected and the type of account. Banks and credit unions are
different animals. While banks are commercial businesses, credit unions are typically nonprofit cooperative organizations that are organized for specific groups of people. For
example, state employees usually have access to a State Employees Credit Union. Typically,
loans are less expensive at credit unions, but interest rates may not always be as high as what
you can get at a bank. This isn't always the case, though. Currently, some credit union interest
rates are higher than what you will find at some banks. Sometimes credit unions also pay
interest on accounts that banks usually don't pay interest on, like checking accounts. But, you
have to be a member in order to open an account.
Banks usually offer two types of savings accounts:

a) basic savings account, and
b) a money market account.
The basic savings account (sometimes called a passbook savings account) will usually have
either no minimum balance requirement or a low one, but will offer a very low interest rate
(meaning your money won't earn that much). In April 2004, the average interest rate at banks
for basic savings accounts was less than one percent. A typical basic savings account lets one
withdraw his money whenever he wants.
Money Market accounts usually pay more money in interest, but will typically require one
to have more money in his account. There may be a limit to how many withdrawals one can
make in a month. Sometimes, in addition to the withdrawals, one can also write up to the
three cheques on a money market account each month.
Costs Involved
Sometimes, but not always, banks charge for not maintaining minimum stipulated balance in
a savings account. The fee may be low -- like a dollar a month -- or it may be higher or it
could even be based on your balance. For this reason, one should always shop around and
compare what different banks are offering.
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Things one should look at include:
Fees and services charges on the account
Minimum balance requirements (Some banks charge a fee only if you don't keep a
certain amount of money in your account at all times.)
Interest rate paid on your balance
WHAT HAPPENS WHEN ONE OPENS A SAVINGS ACCOUNT?

When one opens a savings account he gets a small book called a register (like a cheque book
register) where he can write his beginning balance (the amount he originally deposited) and
all of his future deposits and withdrawals. This tool helps him keep track of how much
money he has.
Each month, his bank (or credit union) will send him a statement of his account either in the
mail or by e-mail if he prefers. The statement will list all of his transactions as well as any
fees charged to his account and interest his money has earned. In order to make sure he didn't
forget to write down any withdrawals and/or deposits (and also to double-check the bank's
activities) he should go through each entry in his register and compare it with the bank's
statement. They should match up -- this is referred to as reconciling the account. If they
don't, he will need to find his mistake and correct it in his register (unless it is a bank error,
but that isn't very common). The only other thing is to remember to make deposits into the
account and sit back and watch the money grow.
2.8
WHY ARE SAVING ACCOUNTS SO POPULAR?
Savings accounts are very much popular for the following reasons:
a) EASY ACCESS TO A BANK SAVINGS ACCOUNT
Savings accounts offer easy access to the cash. In other words, ones money
is liquid (meaning he can make a withdrawal easily and quickly) in a bank savings account.
Note that savings accounts are not as liquid as checking accounts, because one can get money
from a checking account by simply writing a check.
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b) BANK SAVINGS ACCOUNTS GROW ONES MONEY

When one has money in a bank savings account, his money earns interest. This is a nice
feature. His bank savings account pays a rate of return on all the money in the account. That
means that he will get "paid" for keeping his money in the account. If he was not going to use
the money anyway, then getting paid a little is better than nothing. Bank savings accounts pay
one more on their money than checking accounts.
c) BANK SAVINGS ACCOUNTS ARE RELATIVELY SAFE
Bank savings accounts offer a safe place to keep their money. Suppose that if one has
1,000 and if he is not going to use that money for another 3 months. He could do several
things with that money. He may carry it around with him, he could put it under his mattress,
or he could put it into a bank savings account.
The safest thing to do with his money is to put it into a savings account. If he carries the
money around with him, he might lose it. If the money is under his mattress, his house could
burn down or be robbed. However, if the money is in a bank savings account, his banking
institution is responsible for the safekeeping of that money. If the bank burns down, his
money won't go with it, and any reputable bank will not just lose his savings. Furthermore,
one earns interest on the money in a savings account. One surely doesnt earn interest on
cash that is sitting under his mattress!!!
2.9 SAVINGS BANK ACCOUNT RULES AND REGULATIONS:

i. As per the extant Reserve Bank of India (RBI) guidelines, which are mandatory,
photographs of all applicant(s) / Power of Attorney holders (i.e. who are authorized to
operate the account(s)) should be furnished to the bank.
ii. As per extant Government of India (GOI) guidelines, PAN / Form No.60/61 (Where
PAN is not available) is required to be furnished.
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iii. Savings Bank A/c (SB A/c) cannot be opened for business purposes as per RBI
directives and hence SB a/c should be used to route transactions of only non-business /
non-commercial nature. In the event of occurrence of such transactions or any other such
transactions that may be construed as dubious or undesirable, the Bank reserves the right
to unilaterally freeze operations in such accounts.
iv. The balance in the special type of account must adhere to the minimum monthly /
quarterly average balance stipulation laid down by the Bank and communicated to you at
the time of opening of the account. Non-maintenance of such monthly/quarterly average
balance will attract applicable penalty on a monthly / quarterly basis and on a date
determined by the bank.
v. If there is no transaction by the account holder in the account continuously for 24 months,
the account automatically gets classified as a dormant / inoperative account whereupon
further debit / credit transactions are not permitted in the ordinary course. A request for
activation of the account has to be made by the customer and the customer is subject
afresh to KYC Compliance.
vi. Satisfactory conduct of the account entails maintaining sufficient balance to honor
cheques issued to third parties. If there are high incidences (i.e. more than 3 cheque
returns for want of funds) to the contrary, the Bank reserves the right to close the account
under intimation to the customer.
vii. Any special instructions, both financial and non-financial in nature, like standing
instructions, stop payment instructions, issuance of cheque books, issuance of duplicate
ATM Cards / PIN etc. must be communicated in writing. Otherwise, it shall not be
binding on the Bank to comply with such instructions.
viii. The bank will be sending through courier or post from time to time PIN mailers and any
other notices / correspondences. Hence, it is incumbent upon the applicant(s) to intimate
change in mailing address, if any, immediately without any loss of time. The bank will
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not be responsible for any loss, damage, or consequences for wrong delivery of the above
items arising out of non-intimation of change in mailing address.
ix. The account number is to be quoted in pay in slips / cheques issued by the account holder
and in all the correspondences with the bank.
x. The account holder(s) is / are expected to verify the entries made in the pass book and
draw the attention of the bank to any errors or omissions that might be discovered. The
bank does not accept any responsibility for any loss arising out of failure on the part of
the account holder to carry out verification of entries in the pass book and to point out
such error and / or omission within one month from the date of updation of pass book.
xi. Alterations, if any, on cheques are required to be authenticated by the drawers full
signature against each such alteration. The Bank reserves the right to refuse payment of
cheques that have been altered in any way unless the alteration is authenticated by the
drawer under full signature as per specimen on record with the Bank. Cheques should be
drawn in such a way as to prevent alteration after issue and the drawers signature should
be uniform with that on record.
xii. No overdrawing is permissible in accounts.
xiii. The bank has the authority to debit the accounts to recover any amount credited
erroneously.
xiv. Collection of outstation instruments entails collection charges. Disputes, if any, in
collection of cheques / instruments will be dealt with as per banks Cheque Collection
Policy.
xv. Interest will be credited every six months on or about 1st September and 1st March
calculated on daily product basis. No interest will be allowed unless the amount accrued
during the half year amounts to Re.1/-
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xvi. When a customer wants his / her operative account at one branch to be transferred to
another branch, he / she has to give his / her request in writing along with unused cheque
books. The bank will transfer the account to other branch and will issue new cheque
book.
xvii. Local cheques, etc., may be tendered for collection sufficiently early in the day as
required vis--vis the local clearing house times. Drawals against clearing cheques will be
normally permitted only against cleared balances as per clearing house rules.
xviii. Please change the PIN for ATM operations, frequently. Please dont keep the blank
signed cheque books. Keep the cheque books in lock and key.
xix. Pass book will be given to all SB account holders. If the customers want statement of
accounts, it will be issued on specific request and on payment of necessary charges.
xx. Immediate credit of outstation / local cheques up to Rs.15000/- is permitted to
satisfactorily operated Savings Bank account holders. For further details, contact your
branch.
xxi. Nomination facility is available.
xxii. The Bank is a member of Banking Codes and Standards Board of India and committed to
honor the covenants of its codes. Customers can get a copy from the branch and the same
is also available in the Banks website www.tmb.in. Similarly the Bank has a Fair
Practice Code and Policy on Deposits which are also available in the same manner.
xxiii. The opening / operating / closing of any account are subject to the extant Know Your
Customer (KYC) guidelines drafted in line with the RBI norms.
xxiv. The Bank reserves the right to close account(s), which according to the Bank, is / are not
conducted satisfactorily, after due notice to the customers without assigning any reasons
thereof.
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xxv. The Bank reserves to itself the right to alter, delete or add any of these rules at any time
without prior intimation to individual customers or to refuse to open an account or to
close any account. However such changes will be posted in the Banks website and in the
Notice Board of the branches.
xxvi. Opening of the Savings Bank Account tantamount to deemed acceptance of the aforesaid
rules and regulations as well as the fact of being informed about the various service
charges being levied by the Bank and the terms and conditions guiding related products
and service.
2.10 KNOW YOUR CUSTOMER (KYC) GUIDELINES:

Any person fulfilling account opening requirements may upon agreeing to comply with the
prescribed rules, open a Savings Bank Account, provided he/she furnishes proof of identity
and proof of address as required by the bank.
PROOF OF IDENTITY
i.
Passport, if the address differs from the one mentioned in the account opening
form
ii.
Voter ID Card, if the address differs from the one mentioned in the account
opening form.
iii.
PAN Card
iv.
Govt./ Defense ID Card
v.
ID Cards of reputed employers
vi.
Driving License
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vii.
Pension Payment orders (Govt./ PSUs), if the address differs from the one
mentioned in the account opening form
viii.
Photo ID Card issued by Post Offices. Photo ID card issued to bonafide students
of Universities/ Institutes approved by UGC/AICTE.
PROOF OF ADDRESS:
i.
Credit card statement
ii.
Salary slip
iii.
Income tax/ wealth tax assessment
iv.
Electricity bill
v.
Telephone bill
vi.
Bank account statement
vii.
Letter from a reputed employer
viii.
Letter from a recognized public authority
ix.
Ration card
x.
Copies of Registered leave and license agreement/ sale deed/ lease agreement may
be accepted as proof of address.
xi.
Certificate issued by hostel and also, proof of residence incorporating local

address, as well as permanent address issued by respective hostel warden of
aforesaid University/ Institute where the student resides, duly counter signed by
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the Registrar/Principal/ Dean of Student Welfare. Such accounts should be closed

on completion of education/ leaving the university/institute.
xii.
For students residing with relatives, address proof of relatives along with their
identity proof, can also be accepted provided declaration is given by the relative
that the student is related to him and is staying with him.
2.11
SBIS SAVINGS BANK ACCOUNT FEATURES:
The savings bank account in SBI provides PAI (Personal Accidental Insurance) of
about 4 lakhs by just paying Rupees 100.
SBI savings account facility also provides an insurance of 5 lakh especially to defense
personals having DSP (Defense Salary package) accounts.
SBI savings account facility provides access to other high tech products like internet
banking through sbionline.com, mobile banking through SBI freedom, and other
ATM-cum- Debit card facilities.
2.12
ONLINE SAVINGS BANK ACCOUNT FACILITY:
Some of the banks came up with the facility of opening the savings account online;
without actually physically visiting the branch and standing in those long queues at the
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branch. The easiest way to bank on the Internet is to open a savings account online. One
can get his first account open, and from there he can add additional accounts and services.
NEED FOR OPENING AN ACCOUNT ONLINE:
With the technological advancements these days, the working classes as well as the
common masses are finding it difficult to manage their time. They want a shortcut to
every task they perform. So a need was felt for such a facility, in which the customer of a
bank establishes a contact with the bank, without actually visiting the branch. This first
contact off course comes in the form of opening an online account.
2.13
SBIS ONLINE SAVINGS ACCOUT OPENING FACILITY:
With the introduction of various electronic banking channels, customers are increasingly
carrying out banking transactions without actually visiting the branch. The Bank has been
offering e-TDR/e-STDR/e-RD to its Savings Bank customers.
However, there has been strong demand for a facility to open Savings Bank Account
online from Retail clients which will help prospective customers establish the first
relationship with the Bank conveniently. On these lines, SBI has developed an online
application system for our Savings Bank Account.
Although there are few private banks who are already providing this facility, SBI started
this facility on 4th December 2012, advising roll-out of the facility to apply for Savings
Bank Account opening online across all the Branches of India.
2.13.1
FEATURES OF THIS PRODUCT:
a. This facility is available only for Regular Savings Bank Account.
b. There are two parts of the Account Opening Form (AOF):

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i.
Customer Information Section and
ii.
Account Information Section.
c. Part i. of the AOF will have to be filled in completely before proceeding to Part ii.
d. Apart from being an extremely convenient mode of application for the customer, the
OSBAA (Online savings bank account application) will reduce the TAT for Savings
Bank account opening considerably.
e. This feature will appeal to the tech savvy upwardly mobile segment and help the
Banks acquire new customers in this segment.
f. This new facility was rolled out across all branches w.e.f. from 04.12.2012.
2.13.2
THE PROCESS FLOW:
1. A link stating Online Account Application will be provided on the homepage of

THE Corporate website viz. sbi.co.in/statebankofindia.com, for online application.
A similar link will also be available on the home page of Internet Banking Portal viz.
onlinesbi.com. This link, when clicked, will open the Account Opening web page in a
new window.
2. All the fields in the physical version of Account Opening Form will be present in the
online version and the applicant will be systematically guided through the form filling
process in such a way that none of the mandatory fields can be left blank
3. After filling in the personal information, the applicant will be asked to give details of
the KYC documents that he will be presenting as a part of the account opening
procedure. The applicant will be given time period of 30 days to apply to the branch
and present the originals and copies of these documents at the branch, failing which
the application will be discarded (by the system automatically).
4. Successful completion of the form filling process of the Customer Information

Section will generate a Temporary Customer Reference Number (TCRN) and the
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details of the application will be stored in the INB server at GITC. An SMS
conveying the TCRN will be generated and sent to the customers mobile number
given in the application form. The applicant has the option of printing the Account
Opening Form (AOF).The print out of the Account Opening Form has to be taken
only on A4 size white paper.
5. The applicant needs to visit the nearest branch for completion of the remaining
formalities. When the applicant visits the branch, there can be two possible scenarios :
Scenario I: The customer gives the printed AOF with the relevant KYC documents.
To open the account through Welcome Kit:

After verification of the documents at the branch, the applicant(s) will be asked to
sign on the print out of the application form and submit his /their passport size
photographs and KYC documents. The Branch Official will invoke Amend Personal
Customer in the CBS, put the CIF/Account Number printed in Welcome Kit and
select dropdown 1 and click Transmit button. This will open a new page, where the
TCRN will have to be entered in the Reference No. field to fetch all the data from
INB server to the CBS. The CIF will be set up after the branch teller checks this data,
amends it if necessary and transmits it in CBS. After amendments of the CIF in CBS,
account will be amended by branch in the usual manner as is being done currently in
case of Welcome Kits.
To open the account without Welcome Kit:

After verification of the documents at the branch, the applicant(s) will be asked to
sign on the print out of the application form and submit his /their passport size
photographs and KYC documents. The Branch Official will invoke Create Personal
Customer in the CBS and enter the TCRN in the Reference No. field to fetch all the
data from INB server to the CBS. The CIF will be set up after the branch teller checks
this data, amends it if necessary and transmits it in CBS.
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After creation of the CIF in CBS, account will be opened by branch in the usual
manner as is being done currently.
Scenario II: The customer has not taken a print of the AOF and has the TCRN,
Temporary
Account Reference Number (TARN) and the relevant KYC
documents.
The Branch official will go to the menu Print/Save Account Opening Form in the
Online Account Application available in onlinesbi.com/sbi.co.in and enter the
TARN given by the applicant(s) and date of birth of the first applicant in the field
provided there.
The account opening form with the details entered by the applicant(s) will display on
the screen and the same can also be downloaded in PDF format. The Branch Official
will then take a print out of the entire form on A4 size white paper only. After
verification of the documents at the branch, the applicant(s) will be asked to sign on
the print out of the application form and submit his /their passport size photographs
and KYC documents.
The remaining process will be the same as in Scenario I.
6. After the account has been opened, the form will be forwarded to the LCPC, for
scanning the Signature and the Photograph of the applicant and completing other
necessary formalities.
2.13.3
SNAPSHOTS OF THE ENTIRE PROCESS
When a customer opens up the account online, he is guided through the entire process in a
very simple and lucid manner. This section provides a glimpse of the entire process in the
form of screen shots taken from the computer. The entire process works exactly in the
same manner as explained in the previous section under the title the process flow.
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2.14
ADDITIONAL BENEFITS: STATE BANK INTERNET BANKING
(ONLINE SBI)
The internet banking portal of State Bank of India also known as Online SBI provides secure
access of the customers to their accounts anywhere in the world. This is the channel which
virtually brings the branches of State Bank of India at the finger tip of the customers. The
internet banking customers (INB customers) can perform almost all the transactions for
which they were earlier required to visit the branches and stand in the queue, at their
convenient time with the use of their personal computer without paying extra charge to the
bank. The bank is also benefited by this facility.
A study has suggested that the transaction cost for one transfer transaction done using
INB is less than 50 paisa for the bank but the same transaction done at any of the branches of
the bank cost Rs. 45/- to the bank. Apart from the monetary benefits, the branches get
additional benefits which have far reaching impact on the operation, business and
profitability of the bank. It helps the branches by having fewer crowds in the branch to
manage and more time for marketing and business development.
Presently the following functions are available in the INB of State Bank of India. The list is
suggestive and not exhaustive.
Viewing account information
Generating account statement
Verifying cheque status
Transfer of funds to own SBI accounts across the country
Transfer of funds to third party (beneficiary) SBI accounts across the country,
Interbank transfer using RTGS, NEFT
Issuance of demand drafts
Payment of utility bills
mobile payments
Tax payment;
Reward points and Cash back offers on INB and Card payment etc
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Presently there are 6 crore internet users in India mostly in metro and urban area. The internet
penetration in India is 5.2% of its total population of 114.80 crore. SBI has a Savings Bank
(ordinary) customer base of 6.22 crore (as on 31.03.2008). However, the total INB users as
on March 2008 are 0.18 crore, a mere 2.89% penetration of its Savings Bank customers and
much lower of its total customers. It has added 81.97 lacs new Savings Bank (ordinary)
customer in the FY 2007-08. However, the new INB users added by the bank are 0.52 lacs
(0.63%) only. If we go by the penetration percentage of internet users in India, about 4.2 lacs
new users only in savings bank a/cs should have been added. SBI and its Associates have a
Savings Banks customer base of 3.44 crore in Metro and Urban areas (as on March 2007 as
per BSR published by RBI). In Urban cities there are 1.96 cr customers and in Metro cities
1.45 cr customers. These customers have access to internet and are literate too. Still the
number of INB users in these areas is not encouraging.
2.15
SPECIFIC OBJECTIVES OF THE PROJECT:
Some of the main objectives of the study are:
To study the entire process flow of the Online Savings account opening facility.
To find out the awareness levels of the product.
To suggest ways to improve the publicity of the product.
2.16 SCOPE OF STUDY:

The study was made taking into consideration the whole of State Bank of India (Jammu
region), with special reference to Samba District.
2.17 PERIOD OF STUDY:

This research study was conducted for a period of 120 days i.e. 2 months (20th May 2013
to 20th July 2013).
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CHAPTER 3
METHODOLOGY
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3 METHODOLOGY
3.1 RESEARCH METHODOLOGY
RESEARCH
Research is the systematic investigation into existing or new knowledge. Research
refers to a search of knowledge. One can also define research as a scientific & systematic
search for pertinent information on a specific topic.
According to M. Stephenson The manipulation of things, concepts
or symbols for the purpose of generalizing, to extend, correct or verify knowledge,
whether that knowledge aids in construction of theory or in practice of an art. The
purpose of research is to discover answers to questions through the application of scientific
procedure.
RESEARCH METHODOLOGY:Research methods or techniques refer to the methods the researchers use in
performing research operations. It may be understood how research is done scientifically. The
task of data collection begins after a research problem has been defined & research design /
plan chalked out. While deciding about the method of data collection to be used for the study,
the researcher should keep in mind two types of data viz. primary & secondary.
Research Methodology includes:
Research Objective
Sampling
Sample size
Sample area
Sample unit
Collection of data
RESEARCH OBJECTIVE
The objective of the survey is Study of launch of our new Tech product Online
Savings Bank account. The method of data collection is PRIMARY.
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SAMPLINGConvenience sampling procedure is followed in this study. In the commonly used
method of this sampling, the researcher attempts to ensure that the sampling selected is a
representative of the population by selection sampling units on the basis of certain
parameters.
SAMPLE SIZE: 100
SAMPLING AREA: Jammu specifically District Samba
SAMPLE UNIT: Customers

RESEARCH INSTRUMENT
The research instruments used for collecting the primary data were the questionnaire.
QUESTIONNAIRE
The questionnaire was carefully developed tested and debugged before they were
administered on a large scale. Each questions contributed to the research objective. The
questionnaire is structured type means there are concrete, definite and predetermined
questions. The questions are presented are exactly same wording and in the same an order
to all respondents. The questionnaire had a mix type of open ended, closed ended and
multiple choice questions.
The questions were limited in numbers simple direct and unbiased technology was
adopted.
We framed a questionnaire set of 30 questions.
The questionnaire was designed in such a way so as to get a response which was
critical to the overall research.
The questions were deliberately split up in to sections so as to avoid any confusion or

sampling errors in the final statistical operations.
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3.2 DATA COLLECTION

Data Collection is an important aspect of any type of research study. Inaccurate data
collection can impact the results of a study and ultimately lead to invalid results. Data
collection methods for impact evaluation vary along a continuum. At the one end of
this continuum are quantitative methods and at the other end of the continuum are
Qualitative methods for data collection.
METHODS OF DATA COLLECTION
1. Primary Data:
Primary data is defined as the first time data collected. It is new in nature. This
type of data is collected directly from the source of information. The techniques,
which are involved in collecting the primary data, are personal interview, surveys,
questionnaire etc. In this project report we have collected data by personal
interview and questionnaire.
2. Secondary Data:
Secondary data is that type data which somebody else had collected and which
had already been passed through the statically process. This indirect information
of the data from sources containing past and present information is collected from
newspapers, journals, business manuals, pamphlets magazines etc. Since the
product to be studied was recently launched so there was no source of secondary
data to be taken into consideration.
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CHAPTER 4
DATA ANALYSIS
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4 ANALYSIS OF DATA
Following segment includes the analysis of the data collected in the form of a
questionnaire of 30 questions.
SECTION 1: PERSONAL INFORMATION

1. AGE
AGE GROUPS (in years)
NO. OF RESPONDENTS
18-25
32
26-40
43
40-60
22
Above 60
AGE OF RESPONDENTS
3%
22%
32%
18-25yr
26-40yr
40-60yr
ABOVE 60yr
43%
INFERENCE:
The above indicates that majority of the respondents (43%) who were surveyed
belonged to the age group between 26 to 40 years and only 3% of them belonged to
age above 60 yrs.
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2. GENDER:
GENDER
NO. OF RESPONDENTS
MALE
66
FEMALE
34
GENDER
34%
MALE
66%
FEMALE
INFERENCE:
The above indicates that majority of the respondents (66%) who were surveyed were
males while 34% were females.
3. EDUCATIONAL QUALIFICATION:
EDUCATIONAL QUALIFICATION
NO.OF RESPONDENTS
UG
GRADUATE
57
PG
14
OTHER
21
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EDUCATIONAL QUALIFICATION
8%
21%
UG
GRADUATE
PG
14%
OTHER
57%
INFERENCE:
Graduates while 8% had some other educational qualification.
4. MARITAL STATUS
MARITAL STATUS
NO.OF RESPONDENTS
Single
32
Married
68
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MARITAL STATUS
32%
Single
68%
Married
INFERENCE:
married while 32% were unmarried.
5. OCCUPATION
OCCUPATION
NO.OF RESPONDENTS
Business
21
Salaried
38
Household
13
Student
19
Other
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OCCUPATION
Other
9%
Business
21%
Student
19%
Household
13%
Salaried
38%
INFERENCE:
The above indicates that majority of the respondents (38%) who were surveyed
belonged to salaried class while only 9% followed some other occupation.
6. MONTHLY INCOME
MONTHLY INCOME (in Rupees)
NO.OF RESPONDENTS
0-10,000
35
10,001-25,000
41
25,001-50,000
20
Above 50,000
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MONTHLY INCOME
No. of Respondents
50
40
30
20
10
0
0-10,000
10,001-25,000
25,001-50,000
Above 50,000
Monthly income (in Rupees)
INFERENCE:
The above indicates that majority of the respondents (41%) who were surveyed had the
monthly income within the range of Rupees 10,001-25,000 while only 4% belonged to
the range of a monthly income of Rupees 50,000 and above.
SECTION 2: SAVINGS BANK ACCOUNT
7. DO YOU HAVE A SAVINGS BANK ACCOUNT?
SAVING ACCOUNT
NO.OF RESPONDENTS
Yes
77
No
23
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DO YOU HAVE A SAVINGS ACCOUNT?

No
23%
Yes
77%
INFERENCE:
The above indicates that majority of the respondents (77%) who were surveyed had
their savings account while 23% did not have. Those of which who were not having
the savings account were encouraged to open one with SBI, highlighting the special
features provided by opening a savings account with State Bank of India.
8. IF YES, WITH WHICH BANK(S)?
WITH WHICH BANK(S)
NO.OF RESPONDENTS (OUT OF 77)
SBI
67
J&K
72
PNB
40
ICICI
20
Other
35
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BANK(S) YOU HAVE ACCOUNT WITH

80
70
60
50
40
30
20
10
0
SBI
J&K
PNB
ICICI
Other
INFERENCE:
The above indicates that majority of the respondents (72 out of 77) had account with
J&K bank, while 67 out of 77 had it with SBI, while only 20 had it with ICICI.
9. FACTORS YOU CONSIDER WHILE OPENING A SAVINGS ACCOUNT?
S.No.
FACTORS
Easy accessibility
Interest rates
Internet banking
Mobile banking
Other
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FACTORS YOU CONSIDER WHILE OPENING A

SAVING ACCOUNT
60
No. of Respondents
50
40
30
20
10
0
1
1,2
1,2,3,4
1,2,5
Factors
INFERENCE:
The above indicates that majority of the respondents (49 out of 77) felt that easy
accessibility was the only factor they consider while opening an account.
10. ARE YOU AWARE OF THE ONLINE SAVINGS BANK ACCOUNT

FACILITY PROVIDED BY ANY OF THE BANK(S)
BANK(S)
NO.OF RESPONDENTS (OUT OF 77)
SBI
ICICI
52
HDFC
57
Other
45
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AWARENESS ABOUT THE ONLINE SAVINGS

BANK ACCOUNT OPENING FACILITY
60
No. of respondents
50
40
30
20
10
0
SBI
ICICI
HDFC
Other
INFERENCE:
The above indicates that only 3 of the respondents knew about the SBIs savings bank
account opening facility while majority of the respondents knew about this facility
provided by private banks like ICICI, HDFC etc.
11. DO YOU USE INTERNET?

YES
12
NO
65
DO YOU USE INTERNET?

16%
YES
84%
NO
Page 57 of 70

INFERENCE:
Since the area under study was Samba, being a district with rural population, majority
of the population (84%) did not use internet.
12. DO YOU THINK ITS USEFUL FOR BANKS TO HAVE ONLINE FACILITY?
Yes
12
No
10
I dont care
55
IS IT IMPORTANT FOR BANKS TO

HAVE ONLINE FACILITY?
16%
13%
Yes
No
I dont care
71%
INFERENCE:
Majority of the respondents (71%) had an indifferent view when they were asked about
their opinion.
13. ARE YOU MAKING USE OF THE ONLINE FACILITY FOR YOUR SAVINGS
BANK ACCOUNT?
Yes
7
No
70
Page 58 of 70
ARE YOU USING THE ONLINE FACILITY?

9%
Yes
No
91%
INFERENCE:
Majority of the respondents (91%) never used the Online Facility for their accounts.
And 9% who used it admitted that they are using the facilities of PNB and HDFC
majorly.
14. WHAT ARE THE REASONS YOU ARE NOT USING THE ONLINE SAVINGS
ACCOUNT FACILITY?
S.NO. REASONS
1.
No internet access
2.
I feel it is not secure
3.
It is a waste of time
4.
My bank doesnt provide it
5.
Other
Page 59 of 70
REASONS YOU ARE NOT USING THE FACILITY

60
No. of respondents
50
40
30
20
10
0
1
2,3
1,2,3
Reasons
INFERENCE:
Majority of the respondents (48 out of 77) felt that these facilities are not secure and
are a waste of time. The reason for them believing so was primarily because they feel
that such technology related activities may put their money at stake.
15. HAVE YOU EVER VISITED STATE BANK OF INDIA WEBSITE?

Yes
15
No
62
VISITED SBI'S WEBSITE?

19%
Yes
No
81%
Page 60 of 70

INFERENCE:
Majority of the respondents (81%) had never visited SBIs website.
SECTION 3: SBI ONLINE SAVINGS BANK FACILITY
Since only 3 out of 77 respondents were aware of this facility of opening of savings
account online and that too because of their interaction with the bank officials. There
were actually 2 respondents who were making use of the Internet banking facility for
SBI and they too were not frequent users of the facility. But they were completely
satisfied with the services of SBI and felt that Internet banking was really very safe.
Page 61 of 70
CHAPTER 5
CONCLUSIONS AND
RECOMMENDATIONS
Page 62 of 70
5. CONCLUSIONS AND RECOMMENDATIONS:
5.1 CONCLUSIONS:
From the analysis made above, following can be concluded:
1. Majority of the respondents have savings account with J&K bank (72 out of 77), with
SBI holding the second position (67 out of 77).
2. Easy accessibility is the major factor that people consider while opening their savings
account.
3. There are not many internet users in the area under study.
4. Majority of the respondents (71%) were indifferent on the view of importance of
online facility for banks.
5. Majority of the respondents (91%) were not using the online facility for their savings
account in different banks.
6. The primary reason for the respondents to not take up the online facility for their banks
was they felt that such facilities are not secure and find it a complete waste of time.
Also they felt that such technology puts their valuable money at stake.
7. Majority of the respondents (81%) had never visited SBIs website
8. Only 3 out of 77 respondents knew about the online facility of opening a savings
account by SBI, and that too with their interaction with the bank officials.
9. Also, there were only 2 respondents who were using the internet banking with their
SBI bank account and were completely satisfied with its services.
5.2 RECOMMENDATIONS:
Since, the product under study was launched very recently i.e. on 4th December 2012,
majority of the respondents (customers and even the employees of the bank) were not
aware about its existence. So the major area of concern for this product is its popularity
and awareness at the very first place. So following can be recommended about this
product:
Page 63 of 70
To make people aware about the product with mass advertisement in print
media as well as on television, radio etc.
Create mass awareness campaigns for customers banking with SBI and other
banks.
Since it was found that the bank employees too had difficulties related to the
working of this product, so employee training programs should be introduced.
Introduce more banking coordinators and banking facilitators (BC/BF) who

could assist in its popularity.
To motivate customers to inculcate the habit of making least physical visits to

the branch and open up their accounts online.
Bank should look for ways to build a mechanism to follow up the enquiry
process for the customers who generate TCRN/TARN, but never report back to
branch within the said interval of time, for submission of KYC documents.
This was observed as a lacuna in the study of this product.
To highlight the benefits they could obtain by using the internet banking
facility for their savings bank account.
5.3 LIMITATIONS OF STUDY:

Every study has its own limitations in terms of methodology and the resources available for
its conduct. This study is no expectation to it and has been carried under following limitation.
Some of the limitations of this project are:
The study was limited to a brief period of two months only.
Most of the time was spent in preparation of the questionnaire and pilot testing.
Also due to the busy schedule of the respondents, responses were delayed and
subsequently less time was spent in analyzing the results.
The questionnaire included objective answers, so it was difficult to reflect the

reasons for certain patterns.
Some of the respondents were not forthcoming with information as they thought
it to be a waste of time.
Page 64 of 70
Respondents lack of time to give information and their casual attitude was a big
hindrance in the study.
Some respondents had difficulty in responding due to lack of awareness.

Since the survey was primarily conducted in the rural area, the respondents were
not much educated, and it was difficult to interact with them.
Being a rural area, it was difficult to convince the respondents in terms of

technological benefits of the product.
Many of the surveyed people did not reply to all the questions.
The sample size was very small which may not represent the entire population.
Page 65 of 70
ANNEXURE: QUESTIONNAIRE
ONLINE SAVINGS BANK ACCOUNT OPENING FACILITY
Note: Your responses will remain strictly confidential. This survey questionnaire is being
conducted for education research purpose only.
SECTION 1: PERSONAL INFORMATION

1. Name (optional).........................................................
2. Age (in years)
18-25
26-40
3. Gender
Male
Female
40-60
Above 60
4. Educational Qualification
Under Graduate
Graduate
Other..................................
5. Marital status
Single
Post Graduate
Married
6. Occupation
Business person
Salaried
Other..................................
Household
7. What is your monthly income (in Rupees)?

0-10,000
10,001-25,000
25,001-50,000
Student
Above 50,000
SECTION 2: SAVINGS BANK ACCOUNT

8. Do you have a savings bank account?
Yes
No (end the questionnaire)
9. If yes, with which bank(s)?
SBI
J&K
PNB
ICICI
Other (please specify)...........................................
Page 66 of 70

10. Which factors do you consider for opening a savings account?
Easy accessibility
Interest rates
Internet banking
Mobile banking
11. Are you aware of the online savings bank account opening facility provided by any of
these banks?
SBI
ICICI
HDFC
12. Do you use internet?
Yes
No (move to Q.15)
13. If yes, how many hours per day on an average you spend online?
Less than 1 hour
1-5 hr
5-10 hr
More than 10 hr
14. How long have you been using internet services?
Less than 1yr
1-5 yr
5-10 yr
More than 10 yrs
15. Do you think it is useful for banks to have online facility?

Yes
No
I dont care
16. Are you making use of the online facility for your savings bank account
Yes
No (move to Q18)
17. If yes, for which bank?
SBI
PNB
ICICI
HDFC
18. What are the reasons you are not using the online savings account facility?
No internet access
I feel it is not secure
It is a waste of time
My bank doesnt provide it
Other
If other, please specify
..........................................................................................................................................
19. Have you ever visited State Bank of India website?
Yes
No
Page 67 of 70

SECTION 3: SBI ONLINE SAVINGS BANK FACILITY
Fill this section ONLY if you are using the SBI online savings bank account facility
20. Do you think SBI caters to all your banking needs?
Yes
No
21. From past how many years you are banking with SBI?
Less than 1 yr
1-5 yr
5-10 yr
More than 10 yrs
22. How did you get to know about the SBIs online savings bank account facility?
Bank officer
Advertisement
Word of mouth
other.......................
23. How often do you use this facility?
Daily
Weekly
Monthly
Yearly
24. What are the things you usually do in your online account?
Transact money
Check statements
Pay bills
other
..........................................................................................................................................
25. What are the problems you face while using the online facility?
Slow transactions
loading time of pages
Security issues
other
..........................................................................................................................................
26. What do you like most about the online facility?
Saves time
Safe
No physical visit to branch
other
..........................................................................................................................................
27. How satisfied are you with the online savings bank account facility
Completely satisfied
Satisfied
Neither satisfied nor dissatisfied
Dissatisfied
Completely dissatisfied
Page 68 of 70

28. Compared to other online savings bank facility that are available with other banks,
would you say that SBI online savings bank account facility is
Much better
Somewhat better
About the same
Somewhat worse
Much worse
29. What are the improvements you would like to see in your online facility?
It should be more secured
fast processing
User friendly
other
..........................................................................................................................................
30. Would you like to recommend this facility to your friends and colleagues?
Yes
No
Suggestions, if any
..........................................................................................................................................
..........................................................................................................................................
.............................................................................................................................
Your Contact details (OPTIONAL):

Email id......................................
Phone number...........................
Address.............................................................................................................................
..........................................................................................................................................
Page 69 of 70
BIBLIOGRAPHY:
1. www.sbi.co.in
2. www.onlinesbi.co.in
3. SBI Times
4. www.siliconindia.com (for interest ratings of different banks in section
2.1.1)
5. http://topicalfinanceblog.com/history-of-savings-account/
6. money.howstuffworks.com
7. www.wikipedia.com
8. SBI Annual Report 2011-2012
Page 70 of 70

SBI Soubika

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SBI Soubika

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SBI ONLINE SAVINGS BANK ACCOUNT

SBI ONLINE SAVINGS BANK ACCOUNT

1. INTRODUCTION TO STATE BANK OF INDIA:

1.1 BRIEF PROFILE OF ORGANIZATION:

services company in India. It is a state-owned corporation with its headquarters in Mumbai,

SBI ONLINE SAVINGS BANK ACCOUNT

SBI ONLINE SAVINGS BANK ACCOUNT

JOURNEY AND VISION OF SBI

SBI ONLINE SAVINGS BANK ACCOUNT

SBI ONLINE SAVINGS BANK ACCOUNT

SBI ONLINE SAVINGS BANK ACCOUNT

e) Demand Draft request

Shri Pratip Chaudhuri

Shri Hemant G. Contractor

Shri Diwakar Gupta

Shri A. Krishna Kumar

Shri Parthasarathy Iyengar

Shri Thomas Mathew

Shri Jyoti Bhushan Mohapatra

Workmen Employee Director

Shri S.K. Mukherjee

Officer Employee Director

SBI ONLINE SAVINGS BANK ACCOUNT

Dr. Rajiv Kumar

Shri Deepak Amin

Shri Harichandra Bahadur Singh

Shri Rajiv Takru

Dr. Urjit R. Patel

ASSOCIATE BANKS OF SBI

Slogans : "Pure banking nothing else"

SBI ONLINE SAVINGS BANK ACCOUNT

1.2 NATURE OF THE PROJECT:

1.3 BRIEF OBJECTIVES/ RESPONSIBILITIES ASSIGNED BY

Create awareness about SBI online savings account product.

Help customers open up accounts online.

Motivate customers to make least physical visits to the branch.

Help customers in case they face problems opening accounts online

Study the KYC guidelines

Assist in opening of lockers in the branch.

SBI ONLINE SAVINGS BANK ACCOUNT

1.4 PROFILE OF SBI BRANCH: K M SAMBA

8TH JAN 1981

MR. ROMESH KUMAR

Present Business level of the Branch is 165 crores.

Profit of the Branch as on 31-03-13 is 3.06 Lacs.

Incumbency of the Branch: Chief Manager.

SBI ONLINE SAVINGS BANK ACCOUNT

1.5 BRIEF PROFILE OF STUDENT:

1.6 BRIEF PROFILE OF PROJECT MENTOR AT THE BANK:

SBI ONLINE SAVINGS BANK ACCOUNT

SBI ONLINE SAVINGS BANK ACCOUNT

SBI ONLINE SAVINGS BANK ACCOUNT

SBI ONLINE SAVINGS BANK ACCOUNT

A person opens a savings account at the bank.

SBI ONLINE SAVINGS BANK ACCOUNT

a) YES BANK: SAVINGS ACCOUNT INTEREST RATE: 6 PERCENT

b) KOTAK MAHINDRA: SAVINGS ACCOUNT INTEREST RATE: 6 PERCENT

SBI ONLINE SAVINGS BANK ACCOUNT

c) INDUSIND BANK: SAVINGS ACCOUNT INTEREST RATE: 5.50 PERCENT

d) CITIBANK: SAVINGS ACCOUNT INTEREST RATE: 7.25 PERCENT

SBI ONLINE SAVINGS BANK ACCOUNT

e) STATE BANK OF INDIA: SAVINGS ACCOUNT INTEREST RATE: 4.00

f) ICICI BANK: SAVINGS ACCOUNT INTEREST RATE: 4.00 PERCENT P.A.

SBI ONLINE SAVINGS BANK ACCOUNT