ternet Banking in Rural Indi

SUBMITTED BY:
SHRISTI PODAR 109
YASH INANI
125
PROJECT | IIND SEMESTER |
ANURAG NAIR
133

ABSTRACT
Given that India has an extensive network of bank branches in rural areas established by
commercial banks, the main rationale for concern about the parallel rural banking system is
provided by its implications for financial inclusion. Within the Indian financial sector, the

role of the rural banks is important but not apparently pre-eminent. This synopsis discusses
the development of internet banking in rural areas. The applications of internet banking of
several rural consumers in rural areas are investigated and examined. The research objective
is to investigate the opportunity of using internet banking in the new generation of rural area.

INTRODUCTION
Reforms to the Indian financial sector over the past 15 years have resulted in significant
growth and availability of financial services. These have unleashed increased competition,
diversification of financial services and wider capital markets enabled by regulatory
liberalization along with more stringent prudential regulation and better supervision. Yet
substantial proportions of the population continue to be deprived of financial services. The
Rural Financial Access Survey (RFAS) found that 59% of rural households in Uttar Pradesh
and Andhra Pradesh do not have deposit or savings accounts with the formal financial sector
and 79% do not have access to credit from a formal source. As a separate group, 87% of
marginal farmers and 70% of small farmers have no formal credit while 70% of marginal
farmers and 45% of small farmers do not have deposit or savings accounts with a formal
financial institution. Within the Indian financial sector, the role of the rural banks is important
but not apparently pre-eminent.

DYNAMICS OF RURAL ECONOMY

Services sector is getting increasing importance in the rural areas also -from coffee shops to
cable television operators. Assessing and meeting of credit needs of this sector is important.
The integration between rural and urban areas has increased significantly, with the result,
mobility of labour, capital, products and even credit between the two is increasing.
Commercialization of agriculture, particularly the increasing role of cash crops like cotton
has resulted in substantial role for suppliers' and buyers' credit.

TECHNOLOGY AND RURAL BANKING

The concept of Automated Teller Machines (ATMs) is the best example. At present, ATMs
are city oriented in our country. It is inevitable that ATMs will be widely used, in semi-urban
and rural areas. The technology-led process is leading us to what has been described as
virtual banking. The benefits of such virtual banking services are manifold. Through the

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competition, many banks quickly realized that there are a momentous number of customers
like to do banking electronically.

OBJECTIVE OF THE RESEARCH

1. To understand adaptability to net banking services in Rural India
2. This research is spread across rural areas around Mumbai

METHODOLOGY
1. Prepare a questionnaire related to people
a. Which is the prominent bank in this locality?
b. Do you have a Bank account?
c. What banking services do you use?
d. Are you aware about the Net Banking services?
e. Are you comfortable making transactions online?
f. What is the medium through which you use the net banking services?

2. Prepare a questionnaire related to bank

a. What is the penetration level of SBI Net banking services Rural India?
b. What is the primary Medium of usage of these services?
c. List the services that come under Net Banking in Rural India?
d. How is the bank spreading the awareness about the Net Banking in rural
India?
e. What is the growth rate of Net Banking in rural India?

3. Analyze the data collected

4. Tabulate the results

EXPECTED OUTCOME
Evaluating the responses on these questions asked, we will present a detailed presentation on
the following parameters:
1. Adaptability to Net Banking services in rural India?

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2. Penetration of net banking in rural India?

3. Emergence of Banking services in rural India?

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