Management Thesis on

Services provided by the bank

through

E-BANKING IN INDIA

By

Pritam Kumar
Shaw

SYNOPS
IS
A Thesis On
Services

provided by the bank

through

E-BANKING IN INDIA

Submitted by

PRITAM KUMAR SHAW

Roll No: 47

Maharaja Srischandra College

Introducti
2
on
E-banking
Internet banking (or E-banking) means any user with a
personal computer and a browser can get connected to his banks
website to perform any of the virtual banking functions. In
internet banking system the bank has a centralized database that
is web-enabled. All the services that the bank has permitted on
the internet are displayed in menu. Any service can be selected
and further interaction is dictated by the nature of service. Once
the branch offices of bank are interconnected through terrestrial
or satellite links, there would be no physical identity for any
branch. It would a borderless entity permitting anytime, anywhere
and anyhow banking. The delivery channels include direct dialup
connections, private networks, public networks, etc. with the
popularity of computers, easy access to Internet and World Wide
Web (WWW), Internet is increasingly used by banks as a channel
for receiving instructions and delivering their products and
services to their customers. This form of banking is generally
referred to as Internet Banking, although the range of products
and services offered by different banks vary widely both in their
content and sophistication.

Meaning of E-Banking
E-bank is the electronic bank that provides the financial
service for the individual client by means of Internet.

Need of study

To know the customers perception toward the E-banking

service, I am interested in E-BANKING that I am taken this topic.

Benefits of study
1) Organizing Educational Campaign To Create Goodwill Of
Company.
2) Services It Effectively valuable to Create Place in the
Minds of Customer.
3) Availability should be increased by using various services
Strategy.
4) Company should make service equal to or better than
Competitive Brands By All Means.

Executive summary
The project Report on:
Services provided by the bank through E-BANKING IN INDIA
Project carried at:
SBI, SBH, ICICI, ETC.
Project objectives:
Find the customer satisfaction relating to E-banking service.
To study the awareness of internet banking among the
customers of ICICI and HDFC banks.
Research Methodology:

Primary Data:
In this research with a sample size of nearly 20 customers data
will be available in form of questionnaire collected in terms of
different questions influencing the use of internet banking.
Internet banking is considered as dependent on awareness among
customers which will be studied with help of different
independent variable. Only the customers of HDFC & ICICI bank
are taken as samples for study.
Secondary data:
Collection of information from different kind of books the data of
the company what they maintained.
4

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 retain the
customers. Banks should look forward to have some tie ups with
other financial institutions to increase the service base.

Table Contents
Chapter
Introduction10

1:

Chapter
2:
Observation
study..11

of

Chapter
3:
Literature
.14

Review

Chapter
4:
Objective
study.17

of

Chapter
4.1:
Limitation
study17

of

Chapter
5:
Collection17
Chapter
Methodology17

Data
5.1:

Chapter 6: Data analysis

18

Chapter 7: findings
19
Chapter 8: Conclusions
20

Annexure-I
Supervisors Certificate
This is to certify that Mr. PRITAM KUMAR SHAW a student of
B.Com. Honours in Accounting & Finance of MAHARAJA
SRISCHANDRA COLLEGE under the University of Calcutta has
worked under my supervision and guidance for his Project Work
and prepared a Project Report with the title Electronic Banking
(e-Banking.).

The project report report, which he is submitting, is his/her

genuine and original work to the best of my knowledge.

____________________________
P.K.C
Place:

Project Guide

Date:
College

Maharaja

Srischandra

Annexure-II
Students Declaration
I hereby declare that the Project Work with the title ELECTRONIC
BANKING (e-Banking.) submitted by me for the partial fulfilment
of the degree of B.Com. Honours in Accounting & Finance under
the University of Calcutta is my original work and has not been
submitted earlier to any other University for the fulfillment of the
requirement for any course of study.

I also declare that no chapter of this manuscript in whole or in

part has been incorporated in this report from any earlier work
done by others or by me. However, extracts of any literature

which has been used for this report has been duly acknowledged
providing details of such literature in the references.

___________________________
Pritam Kumar Shaw
57/7

B.T.Road

Kolkata:700002
Place:

Registration No: 212-

1121-0326-10

Date:

Roll No: 47

Bibliography
Book: E-banking in India
Banking service operation (ICFAI)
Indian Banking
Money & Banking
Links Visited:-

www.google.com
www.icici.com
www.hdfc.com
www.wikipedia.com

Chapter 1

E-banking:-

Introduction

Internet banking (or E-banking) means any user with a personal

computer and a browser can get connected to his bank -s website
to perform any of the virtual banking functions. In internet
banking system the bank has a centralized database that is webenabled. All the services that the bank has permitted on the
internet are displayed in menu. Any service can be selected and
further interaction is dictated by the nature of service. Once the
branch offices of bank are interconnected through terrestrial or
satellite links, there would be no physical identity for any branch.

It would a borderless entity permitting anytime, anywhere and

anyhow banking.
The delivery channels include direct dialup connections, private
networks, public networks, etc. with the popularity of computers,
easy access to Internet and World Wide Web (WWW), Internet is
increasingly used by banks as a channel for receiving instructions
and delivering their products and services to their customers. This
form of banking is generally referred to as Internet Banking,
although the range of products and services offered by different
banks vary widely both in their content and sophistication.

Meaning of E-Banking
E-bank is the electronic bank that provides the financial service
for the individual client by means of Internet.

10

Chapter 2

Observation of study

DEFINITION OF E-BANKING

For this booklet, e-banking is defined as the automated

delivery of new and traditional banking products and services
directly
to
customers
through
electronic,
interactive
communication channels. E-banking includes the systems that
enable financial institution customers, individuals or businesses,
to access accounts, transact business, or obtain information on
financial products and services through a public or private
network, including the Internet. Customers access e-banking

services using an intelligent electronic device, such as a personal

computer (PC), personal digital assistant (PDA), automated teller
machine (ATM), kiosk, or Touch Tone telephone. While the risks
and controls are similar for the various e-banking access
channels, this booklet focuses specifically on Internet-based
services due to the Internets widely accessible public network.
Accordingly, this booklet begins with a discussion of the two
primary types of Internet websites: informational and
transactional.
E-BANKING SUPPORT SERVICES WEBLINKING A large number of
financial institutions maintains sites on the World Wide Web.
Some websites are strictly informational, while others also offer
customers the ability to perform financial
transactions, such as paying bills or transferring funds between
accounts.
WIRELESS E-BANKING Wireless banking is a delivery channel that
can extend the reach and enhance the convenience of Internet
banking products and services. Wireless banking occurs when
customers access a financial institution's network(s) using cellular
phones, pagers, and personal digital assistants (or similar
devices) through telecommunication companies wireless
networks. Wireless banking services in the United States typically
supplement a financial institution's e-banking products and
services. Person-to-Person Payments Electronic person-to-person
payments, also known as e-mail money, permit consumers to
send money to any person or business with an e-mail address.
Under this scenario, a consumer electronically instructs the
person-to-person payment service to transfer funds to another
individual. The payment service then sends an e-mail notifying
the individual that the funds are available and informs him or her
of the methods available to access the funds including requesting
a check, transferring the funds to an account at an insured
financial institution, or retransmitting the funds to someone else.
Person-to-person payments are typically funded by credit
11

card charges transfer from the consumers account at a financial

institution. Since neither the payee nor the payer in the
transaction has to have an account with the payment service,

such services may be offered by an insured financial institution,

but are frequently offered by other businesses as well.
Banking Services through Internet:
1. The Basic Level Service is the banks web sites which
disseminate information on different products and services
offered to customers and members of public in general. It may
receive and reply to customers queries through e-mail;
2. In the next level are Simple Transactional Web sites which
allows customers to submit their instructions, applications for
different services, queries in their account balances, etc. but do
not permit any fund-based transactions on their accounts;
3. The third level of Internet banking service are offered by
Fully Transactional Web sites which allow the customers to
operate on their accounts for transfer of funds, payment of
different bills, subscribing to other products of the bank and to
transact purchase and sale of securities, etc. The above forms of
Internet banking service the customer or by new banks, who
deliver banking service primarily through Internet or other
electronic delivery channels as the value added services. Some of
these banks are known as Virtual banks or Internet only banks
and may not have physical presence in a country despite offering
different banking services.
The Indian Scenario:
Internet banking, both as a medium of delivery of banking
services and as a strategic tool for business development.
At present, the total internet users in the country are estimated
at 9 lakh. However, this is expected to grow exponentially to 90
lakh by 2003. Only about 1 percent of Internet users did banking
online in 1998. This is increased to 16.7 percent in March 2000. (India Research, May 29, 2000, Kotak Securities)
Cost of banking service through the Internet from a fraction of
costs through conventional methods. Rough estimates assume
teller cost at Re.1 per transaction, ATM transaction cost at 45
paise, phone banking at 35 paise, debit cards at 20 paise and
Internet banking at 10 paise per transaction.

12

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 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 Avail of any
service like car rental, etc.
2. Debit Cards: A debit card is issued on payment of a specified amount by
the issuing company like a telephone company to a customer on
cash payment or on debiting his account by a bank. Thus it is like
an electronic purse, which can be read and debited by the
required amount.
It may be noted that while through a credit card, the
customer first makes a purchase or avails service and pays later
on, but for getting the debit card, a customer has to first pay the
due amount and then make a purchase or avail the service. For
this reason, debit card are not as popular as credit cards.
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. As he goes on making
transactions with the help of the card, the balance keeps on
reducing electronically. When 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.
13

Chapter 3

Literature Review
A new review by Tower group of 10 top US e- banking web
sites evaluated several aspects of core online banking
components. Group found that there is difference in terms of
actual functionality and usability. Among different banks and their
services.
The UK's first home online banking services were set up by
the Nottingham Building Society (NBS) in 1983 ("History of the
Nottingham". Retrieved on 2007- 12-14.). The system used was
based on the UK's Prestel system and used a computer, such as
the BBC Micro, or keyboard (Tan data Td1400) connected to the
telephone system and television set. The system (known as
'Home link') allowed on-line viewing of statements, bank transfers
and bill payments. In order to make bank transfers and bill
payments, a written instruction giving details of the intended
recipient had to be sent to the NBS who set the details up on the
Home link system. An American study conducted last year by
Booz-Allen projects that by the year 2000, 16 million US
households will be using Internet banking. While these numbers
do not appear to be significant as compared to the total
population, each Internet user is projected to be 50-250% more
profitable than the average banking customer. It is expected that
these Internet customers will be some of the banking system's
most profitable customers representing close to 30% of all retail
banking profits. The study projects that by 1999, 1,500 banks will
have Internet Web sites and at least 500 of these banks will be
offering full fledged Internet banking services. In 2001 Micro
banker send detailed questionnaire to the leading vendors of
internet banking software27 companies responded with
information on thirty programs the aggregate outcome of the
outcome was that almost all the companies have developed

functions for internet banking and have inbuilt feature to aid with
one to one marketing on the web.

ICICI Bank

ICICI Bank Online Banking Services provide the largest

private bank in India right here at your desktops. Banking
becomes a pleasure as the transactions and services become
instant with ICICI Bank online Internet banking. The services
provided are totally secure and unique. These cover online
account transactions and operations, credit card and account
applications and payments, share trading and investments
through mutual funds, bill payments, statement generation and
a virtual demo of each service. See in brief in final report.
14

Role of customer when using e-banking

You can access ICICIBank.com 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 ICICIBank.com.
Logout of ICICIBank.com before moving on to other
Websites.
Before leaving the PC please "close" the browser.
Do not write your ICICIBank.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 reveal your ICICIBank.com login name and password
to anyone (no representative of ICICI Bank will ever ask you for
your ICICIBank.com password).
Notify ICICI 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 ICICI 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
Link bank account to ATM
Lock / activate debit cards /ATM
Request a cheque book
Stop payment
15

HDFC

Net Banking is HDFC Bank's Internet Banking service. Providing

up-to-the-second account information, Net Banking lets you
manage your account from the comfort of your mouse - anytime,
anywhere.
Features offered by HDFC bank for internet banking
View account balances and statements
Transfer funds between accounts
Request stop payments
Pay bills
Create fixed deposit online
Order cheque books
USE OF E-BANKING IN INDIA FEOM LAST FEW YEARS
Year 2002 2003 2004 2005 2006 2007 2008 2009
Incr.%
9

12

15

20

25

32

40

50

Finding
In 2002-2009 the user of the E-banking is increase in
more in every year.

16

Chapter 4

Objective of study
Find the customer satisfaction relating to E-banking service.
To study the awareness of internet banking among the
customers of ICICI and HDFC banks.

Chapter 4.1

Limitation of Study
Banks are not giving me all information about E-banking
services.
They do not permit to meet any of the employees in their bank.

Chapter 5

Data collection
Primary Data:
In this research with a sample size of nearly 20 customers
data will be available in form of questionnaire collected in terms

of different questions influencing the use of internet banking.

Internet banking is considered as dependent on awareness among
customers which will be studied with help of different
independent variable. Only the customers of HDFC & ICICI bank
are taken as samples for study.
Secondary data:
Collection of information from different kind of books the
data of the company what they maintained.

Chapter 5.1

Methodology
Once the findings are finalized by a research, suggestions should
be made for the betterment of enterprise. The data collected from
questionnaire will be tabulated and analyzed so that The result
can be presented as simple as possible. There are a number of
ways like Pie-chart, Graphs etc.
17

Final Report
Chapter 6

Data analysis
1) Users of E-banking
Yes 65%
No 35%
2) No. of user of the banks
Icici 20%
Sbi 30%
Sbh 20%
Union 8%
Hdfc 12%

Axis 10%

3) PREFERENCE FOR ONLINE BILL PAYMENT SERVICES

Yes 60%
No 40%
4) PREFERENCE FOR ONLINE SHOPPING
Yes 70%
No 30%

5) PREFERENCE FOR ONLINE FUND TRANSFAR

Yes 35%
No 65%

6) SATISFIED CUSTOMERS
Yes 65%
No 35%
7) PERFERRED MODE OF PAYMENT (TO BANK)
CHEQUE 50
CASH 25
E-BANKING 25

18

Chapter 7

Findings
1. In the users ratio of internet banking 65% of customers are
using this service.
2. More banks are connecting to the any software co. to running
the E-banking service. In these services the Sbi banks is top in
service of E-banking.
3. The services that are mostly used by maximum customers are
transactions, online trading, bill payment, shopping etc.
4. The mode of the cash deposit in bank is for use to online
truncation cash, cheque & e-banking.
5. Different banks different charge for online service.

Suggestions
1. To prevent online banking from remaining customers to prompt
this service through advertising co.
2. After repairing this basic deficiency, banks must ensure that
there services is competitive.
3. Banks is not take more charge from there customers.

19

Chapter 8

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 retain the customers. Banks
should look forward to have some tie ups with other financial
institutions to increase the service base.

20