Declaration

I am Deion D Furtado this project report is my original work and

have not been submitted in any form as a part of any other
project.
Information derived from the published and unpublished work of
other has been acknowledgement in the list references in given in
the bibliography.

Deion D Furtado

Acknowledgement
I would like to express my gratitude to all those who gave me the
possibility to complete this project.
I would like express my guide Mr. .and I am also
thankful to my faculty guide Mrs. to continuous
guidance.
In the end, I express our gratitude to my friend who inspired me in
this work without their inspirations the work were almost
impossible.

Signature
Deion Furtado.

INDEX
1: Introduction
2: Observation of study..
3: Literature Review
4: Objective of study.
4.1: Limitation of study
5: Methodology
5: Questionnaire..
6: Data analysis
7: findings
8: Conclusions

Introduction
E-banking: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 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.

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.

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.

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 ebanking 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 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.

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.

Research 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
o Pie-chart.
o Graphs.

Significance of the Study

With the rapid development of Information Technology (IT) banks are beginning to rely
heavily on conducting banking transactions electronically.

The study would enable the banks executives and indeed the policy makers of the banks
and financial institutions to be aware of electronics banking as a product of electronic
commerce with a view to making strategic decisions. The research is equally significant
because it would provide answer to factors militating against the implementation of
electronic banking in First Bank of Nigeria plc.
It is the researchers intention that when this work is completely carried out, it will
contribute immensely to the existing literature on the general application of e-banking
services in modern day business. It will also contribute to efficient and effective performance
of the staff that comes closer to the use of electronic banking services. This will eventually
widen the horizon of business executive and employee in the application of electronic
banking services in such vital accounting systems, investment appraisal and a host of others.
Furthermore, the problems associated with the manual process like delay, inaccuracy,
inefficiency which is the bottleneck, the impact of e-banking will show how it has completely
phased it.

Scope of the Study

In pursuance of the objective of the study; attention shall be focused on electronic banking
among other banking services or electronic commerce implementation.
In order to conduct an empirical investigation into the adoption electronic banking in
Nigeria and will also examine the nature of e-banking operations of first bank of Nigeria plc.
This work, for want of time could not cover all the banks in Nigeria that have e-banking
services. The work is therefore limited to First Bank of Nigeria plc, Makurdi branch only. These
limitations in one way or the other might have affected the fullest realization of this research.
The limitation are lack of adequate and up-to date data necessary for successful completion of t

his work. It is a laid down fact that the Information and Communication Technology (ICT)
World is an ever dynamic world. It takes an appreciable account of money and time to get these
developments to this part of the world. For this reason, the researcher then decided to conduct the
study within the technological framework available in Nigeria and at first bank to be precise.
Another problem that has affected the full realization of this study is time constraint. This
work is to be concluded within a short period of time and this restriction in time employed made
it impossible for the researcher to exhaust all areas affected.

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.

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.

Data analysis
1) Users of E-banking

Yes

65%

No

35%

Chart Title

80
60
40
20
0
YES

NO

2) No. of user of the banks

Icici

20%

Sbi

30%

Sbh

20%

Axis

10%

Union

8%

Hdfc

12%

30
25
20
15
10
5
0
Icici

Sbi

Sbh

Axis

Union

3) PREFERENCE FOR ONLINE BILL PAYMENT SERVICES

Yes

60%

No

40%

Hdfc

Chart Title

NO; 40%
YES; 60%

4) PREFERENCE FOR ONLINE SHOPPING

Yes

70%

No

30%

Chart Title
80
70
60
50
40
30

YES; 70

20

NO; 30

10
0
YES

NO

5) PREFERENCE FOR ONLINE FUND TRANSFAR `

Yes

35%

No

65%

Chart Title

80
60
40
20
0
YES

6) SATISFIED CUSTOMERS

NO

Yes

65%

No

35%

Chart Title

NO; 35%

YES; 65%

7) PERFERRED MODE OF PAYMENT (TO BANK)

CHEQUE

50

CASH

25

E-BANKING

25

60
50
40
30

INDIA

50

20
10

25

25

E-BANKING

CASH

0
CHEQUE

8) SPEND PER BILL FOR ON LINE BILL PAYMENT

ABOVE Rs.10

21

BETWEEN RS.5-10

11

BELOW RS.5

32

NOTHING

36

40
35
30
25
20
15
10
5
0
ABOVE 10Rs

BET. Rs 5 OT10

BELOW 5Rs

NOTHING

INTERPRETATION
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 & ebanking.
Different banks different charge for online service.
Questionnaire:1. Name of the customer:2. Do you like E-banking
a. Yes
b. No
3. Tick which bank you preferred
a. Icici
b. Sbi
c. Sbh
d. Axis
e. Union bank
f. Hdfc
g. UTI Bank Ltd
h. Bank of Punjab Ltd
4. Why this bank

a. Service is good
b. They provide security
c. Cheaper service fees.

5. Which type of service mostly you use?

a.

Balance and transaction history search

b. Transfer fund online

c. Card to card fund transfer
d. Open FD
e. Lock / activate debit cards /ATM
f. Request a cheque book
g. Stop payment
h. Railway pass / ticket
i. Shopping
j. Share payment
6. Services of the bank are.
a. poor
b. good

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

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.

RECOMMENDATION

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.

Banks is not take more charge from there customers.

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