CONTENTS

page

1.introduction
[1.1] background
[1.2] review of literature
[1.3] objectives of study
[1.4] research methodology
[1.6] limitation of study
[1.7] chapter planning

2.conceptual framework
[2.1] basic concept of online study
[22] advantages and disadvantages
[2.3] challenges to online banking system

3.data analysis
[3.1] data presentation
[3.2]data analysis
[3.3] data interpretation

4.conclusion & recommendation

5. referances

6. questionnaires

7. annexure
 CHAPTER- 1

INTRODUCTION

Internet banking is the term used for new age banking system. Internet banking is also called
as online banking and it is an outgrowth of PC banking. Internet banking uses the internet as
the delivery channel by which to conduct banking activity, for example, transferring funds,
paying bills, viewing checking and savings account balances, paying mortgages and
purchasing financial instruments and certificates of deposits.

In the present scenario, most of the business organizations are using the internet for a
variety of communication tasks, such as promotion of consumer awareness and interest,
providing information and consultation, facilitating two-way communications with
customers through e-mail, stimulating product trial and enabling customers to place
orders.In order to avail the benefits that are accrued through using Internet, financial
institutions like banks are transforming themselves and conducting their business
electronically. This transformation from normal banking to electronic banking enabled
customers to transact online, while saving on various factors.

1.1 BACKGROUND:-
The precursor for the modern home online banking services were the distance banking
services over electronic media from the early 1980s. The term online became popular in the
late '80s and referred to the use of a terminal, keyboard and TV (or monitor) to access the
banking system using a phone line. ‘Home banking’ can also refer to the use of a numeric
keypad to send tones down a phone line with instructions to the bank. Online services started
in New York in 1981 when four of the city’s major banks (Citibank, Chase Manhattan,
Chemical and Manufacturers Hanover) offered home banking services using the videotext
system. Because of the commercial failure of videotext these banking services never became
popular except in France where the use of videotext (Minitel) was subsidised by the telecom
provider and the UK, where the Prestel system was used.

The UK's first home online banking services were set up by Bank of Scotland for customers of
the Nottingham Building Society (NBS) in 1983. The system used was based on the UK's
Prestel system and used a computer, such as the BBC Micro, or keyboard connected to the
telephone system and television set. The system (known as 'Homelink') 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 Homelink system.

Typical recipients were gas, electricity and telephone companies and accounts with other
banks. Details of payments to be made were input into the NBS system by the account holder
via Prestel. A cheque was then sent by NBS to the payee and an advice giving details of the
payment was sent to the account holder. BACS was later used to transfer the payment
directly. Stanford Federal Credit Union was the first financial institution to offer online
internet banking services to all of its members in October 1994.

The history of ATM can be traced back to the 1960s, when the first ATM machine was
invented by John Shepherd-Barron he was managing director of De La Rue Instruments.
That Machine was used by Barclays Bank (Barclays Bank in Enfield Town in North London,
United Kingdom) in 1967. However,HSBC was the first bank to introduce ATM in
India back in 1987 in Mumbai followed by Bank of India in 1988. According to R.B.I.
annual report (2008-09) almost all commercial banks are providing ATM facilities to its
customers and to date 27,277 ATMs installed by public sector banks and 15320 ATMs
installed by private sector banks in India.

The banking industry in India is facing unprecedented competition from non-traditional

banking institutions, which now offer banking and financial services over the Internet. The
deregulation of the banking industry coupled with the emergence of new technologies, are
enabling new competitors to enter the financial services market quickly and efficiently. Indian
banks are going for the retail banking in a big way. However, much is still to be achieved.
This study that was conducted by students of IIML shows some interesting facts:
Throughout the country, the Internet Banking is in the nascent stage of development (more
than 50 banks are offering varied kind of Internet banking services).

In general, the Internet sites offer only the most basic services. 55% are so called
'entry level' sites, offering little more than company information and basic marketing
materials. Only 8% offer 'advanced transactions' such as online funds transfer, transactions
& cash management services.
Foreign & Private Banks are much advanced in terms of the number of sites &their level of
development.

1.2 Need of Study

This study is needed to find out the working of Internet Banking of Punjab National
Bank and its importance to customer as well as to bank.

1.3 Review of Literature:-

To identify and describe the adoption issues that exist in Indian banks regarding internet
banking, I have read many articles like: diffusion model by (Rogers,1983) analysed
consumers’ attitude towards direct banking (Lockett and Littler,1997).The main advantage
that I found in these researches regarding internet banking is that its availability 24 hours a
day and 7 days a week.The main disadvantages associated with direct
banking,however,included its complexity and the security risks involved in using it.The
results of this exploratory study are used to confirm the choice of approach to the main study.

In December,2005,the global internet access exceeded the 1000 million mark;this was
one of the most important milestones in the internet revolution(IWS,2006).According to
ABA(2004) and FOX(2005) internet based strategy is more effective than the traditional
banking as according to reports it is more profitable,loyal,and produces committed
consumers. According to Black et ab (2002)-In the new banking environment, internet
banking is increasingly managed as an operational activity and an important component of
multi-channel strategy

1.4 Objectives of Study:-

The objectives of this paper are as follows:

 To gain a better understanding of the service quality dimensions that affect customer
satisfaction in the e-banking sector from a consumer perspective. Perceptions of banks
regarding the strategic and operational value of web-based banking, its benefits to
customers and banks, and the key technology considerations.
 To find the gap between the perceived value and the performance of e-banking, if any,
and
 To recommend how to bridge the gap as mentioned above in e-banking
The advantages that this paper can cater to the people and organizations dealing with e-
banking are:

• To facilitate the organization in improving customer service.

• To assist the organization in formulating the marketing strategy as well as

adding some insight while preparing the budget for the year.

• To help in creating awareness about the features of e-Banking with reference

to Punjab National Bank.

1.5 Research Methodology:-

Type of Data:-
• Keeping in view the nature of requirements of the study to collect all the
relevant information regarding the extent of awareness of the customers using
E-banking facilities offered by Punjab National Bank, direct personal
interview method with structured questionnaire was adopted for the
collection of primary data. Secondary data has been collected through the
various internet sites by surfing on Internet and from the records available
with the bank.

Sources of data:
• Following are the methods of sources of data:

PRIMARY DATA:
• Questionnaire was used to collect primary data from respondents. The
questionnaire was structured type and contained questions relating to
different dimensions of e-banking preferences among service class such as
level of usage, factors influencing the usage of e-banking services, benefits
accruing to the users of e-banking services, problems encountered. An
attempt was also made to elicit reasons for its non-usage. The questions
included in the questionnaire were open-ended, dichotomous and offering
multiple choices.

Areas of primary survey- saltlake.

Duration of the survey – 2 months

 SECONDARY DATA:
• Articles on E-Banking taken from journals, magazines published from time to
time. •Through internet.

Technique:
Understanding the various types of Internet banking will help examiners assess therisks
involved. Currently, the following three basic kinds of Internet banking arebeing employed in
the marketplace

Informational
This is the basic level of Internet banking. Typically, the bank has marketing information
about the bank’s products and services on a stand-alone server. The risk is relatively low, as
informational systems typically have no path between the server and the bank’s internal
network. This level of Internet banking can be provided by the banks or outsourced. While the
risk to bank is relatively low, the server or web site may be vulnerable to alteration.
Appropriate controls therefore must be in place to prevent unauthorized alterations to the
bank’s server or web site.

•Communicative
The interaction maybe limited to electronic mail, account enquiry, loan applications, or static
fileupdates(name and address change). Because these servers may have a path tothe bank’s
internalnetworks, the risk is higher with this configuration thanwith informational systems.
Appropriate controls need to be in the place toprevent, monitor, and alert management of any
unauthorized attempt to accessthe bank’s internal networks and computer systems. Virus
controls alsobecome much more critical in this environment.

Transactional
This level of Internet banking allows customers to executetransactions. Since a path
typically exists between the server and the bank oroutsourcer’s internal network, this is the
highest risk architecture and musthave the strongest controls. Customer transactions can
include accessing accounts, paying bills, transferring funds etc.

1.6 Limitations of Study :-

Discrepancies between what were expected by the customers and what

were delivered by the bank were found in the availability of the instructions in only two to
three languages. This is alarming because human interactions occur so seldom and when they
occur they do so in critical situations.

If these high-touch interactions of the high-tech service process fail, there are fewer
opportunities to recover the mistake than in high-touch service processes. Indeed, based on
the nature of the relationship with customers, banking services involve a continuous flow of
interactions between the customer and the service provider.

There arises little gap between the perceived value and performance of e-banking
services offered by Punjab National Bank. The instructions to use an ATM or other e-
banking services offered are not available in different languages and are available only in two
to three languages.
 CHAPTER-2

BASIC CONCEPT OF ONLINE BANKING

ONLINE BANKING is an elctronic payment system that enables customers of a

financial institution to conduct financial transactions on a website operated by the
institution , such as a retail bank , virtual bank credit union or bilding society . online
banking is also referred to as internet banking ,E Bnking orb virtua; bankimng.

To access financial institution’s online banking facility ,a customer with internet

access would need to register with the institution for the service , and setup a
password and other credentials for customer verification . the credentials for the
online banking is normally not the same as for telephone banking, financial
institutions are routinely allocate customers number, whether or not customers have
indicate and intension to acess their online banking facility. Customer’s number are
not normally the same as account numbers , because the number of customers
accounts can be linked to the one customer number . the customer number can be
linked to any account that the customer controls, such as cheque , savings, loan,
credit card and other accounts.

To access online Banking , a customer visits the financial institution’s secure website,
and enters the online banking facility using the customer number and credentials
previously setup , online banking services usually viewing and downloading
balances and statements , and may include the ability to initiate payments , transfers
and other transactions , as well as interacting with a bank in other ways.

Advantages of online banking

There are some advantages on using online banking both for banks and customers:

• Permanent access to the bank

• Lower transaction costs/general cost reductions

• Access anywhere

Disadvantages of online banking

• Security concers

• Loss of human touch

•Delayed statements

Challanges to online banking

Electronic banking is the wave of the future . it provides enourmous benefits to
customers in terms of the ease and cost of transaction. But it also poses new
challenges for country authorities in regarding and supervising the financial system
and in disigning and implementing macroeconimic policy .

This changing financial landsacpe brings with it new challenghes for bank
management and regulatory and supervisory authorities . the major one stem from
increased cross- border transaction resulting from drastically loewer transaction
costs and the greater ease of banking activities , and form the reliance on technology
to provide banking services wth the necessary security.
•Regulatory risk: Beacause the internet allows services to be provided from
anywhere in the world , there is a danger the banks will try to avoid regulation and
supervision .

•Legal risk: Electronic banking carries heightened legal risks for banks. Banks can
potentially expand the geographical scope of their services faster through elecvtronic
banking than through traditional banks. In some cases , however , they might not be
fully versed in a jurisdiction ‘s local laws and regulations before they begin to offer
services there, either with a license or without a license if one is not required. When
a license is not required , a virtual bank—lacking contact with its host country
supervisor –may find it even more difficult to stay abreast of regulatory changes.

•Operational risk: the reliance on new technology to provide services makes

security and system availability the central operational risk of electronic banking .
security threats can come from inside or outside the system, so banking regulators
and supervisors must ensure that banks have appropraire practices in place to
gurantee the confidentially of data, as well as the integrity of the system and the
data.

•Reputational risk: Breaches of security and disruptions to the system’ availability

can damage a bank’s reputation. The more a bank relies on electronic delivery
channels , the greater the potential for reputational risks . If one electronic bank
encounters problems that can cause customers to lose confidence in electronic
delivery channels as a whole or to view bank failures as systemwide supervisory
deficiancies, these problems can potentially affect other providers of electronic
banking services . in many countries where electronic banking is becoming trend,
bank supervisors have put in place internal guidance notes for examiners , and many
have realised risk management for books

Reputational risks also stem from customer misuse of security precautions or

ignorance about the need for such precautions . security risks can be amplified and
may result in a loss confidence in electronic delivery channels.
 CHAPTER-3

PERCEIVED VALUE AND PERFORMANCE OF E-

BANKINGIn PNB: PRESENTATION OF DATA AND AN
ANALYSIS

Perceived Value
In every industry, E-commerce is revolutionizing the way business is conducted. New
business models are replacing out-dated ones and organizations are rethinking business
process designs and customer-relationship management strategies. Punjab National Bank is
in no exception to this transformation. This section examines PNB’s views on providing
banking services to customers using the web. Specifically, it addresses issues such as the
strategic need for Internet banking, its effect on customer-bank relationships, and customers’
experiences in Internet banking.

Why e-banking is chosen in Punjab national bank

E-banking is chosen by PNB bank as it is a fast process as transactions are made over
internet and it’s also an easy process for the customers to undergo a transaction anywhere
over the world, customers are not required to come to the bank for transactions , they can do
it from their home and its an user friendly process. There was a survey made before
introducing E-banking in PNB bank and It could be observed that the highest preference was
given Quality of service and the proximity as the second important reason for selecting the
bank. This indicates that the bank works more for providing good quality of service rather
than popularity.

Furthermore, PNB, the bank see Internet banking as a strategic opportunity that can reduce
transaction costs, enhance customer service, increase the customer base and improve cross-
selling opportunities. In addition, Internet banking is perceived more favourably by banks
that offer it compared to those that do not.

 The bank believe that providing these services to customers in the new economy is
essential for survival and thus, mandatory. Respondents felt that banks not
providing e-transaction capabilities would lose customers to competitors who offer
such services. This perception is supported by the fact that a large percentage of the
banks who currently do not offer web-based banking plan to do so in the near future.

 Another benefit of Internet banking for PNB was the impression it gave to the public
of a cutting-edge bank, thereby enhancing its reputation.

 This study also showed that e-banking is not perceived as a threat by many bricks-
and-mortar banks. In fact, most banks are attempting to form alliances and
partnerships with banks, financial institutions, and other businesses with physical
presence in order to provide services that cannot be delivered on the web alone (e.g.
cash withdrawals, effective customer service).

Electronic Banking Product Use

Source: wikipedia

The above diagram shows the different services offered by the bank and the accurate
percentage of usage of those services by the customers. It can be seen most customer use the
Direct Deposit service i.e. 52.4%; 35.2% is the usage of ATM cards; 20% respondents use
the Debit card facility; 24.8% use the Automatic Payment system and the rest i.e. 3.9%
usage is made on computer banking.

From an operational perspective, the high officials of PNB perceived that web based banking
would have significant benefits.

 E-transactions could significantly lower the cost per transaction and thus contribute
to the bottom line of the bank.
 Internet banking allows the bank to offer ancillary services such as insurance,
brokerage services, and mortgage payments through their web site. Such services are
offered either directly or through a partner arm. Revenues generated from these
services are an added bonus to the bank as shown in the above diagram.
 Successful launch of an e-commerce site improves service quality as the customer is
presented with several options (Internet, in person, ATM, phone, interactive voice
response, etc.) to transact with the bank. These options can result in an increased
number of customer accounts.
 Internet banking allows customers to conduct certain transactions (e.g., checking
balances, funds transfers, bill payment, etc.) online at any time. This added
convenience to the customer lowers transaction costs to the bank—a win-win
proposition for the bank and its customers. In the above diagram there are several
products or services which are used by the bank. These products benefit the
customers and thus it reduces their physical visit to the bank.
 Punjab National Bank (PNB) is also offering recharge of prepaid mobile card, which
can be done by computer banking also. Often these banks tie with other banks to use
their ATM like: HDFC and SBI; PNB, UTI and Global Trust Bank.

In this manner, the bankers perceive an increase in their 'Point of Cash Delivery'. Apart
from this credit, debit card have are becoming preferred medium of payment. Thus,
technology has created various delivery channels for bank customers.

Frequency of using online banking facility

 Source: wikipedia

The above pie chart shows the regular use of e-banking facility used by the customers. 28%
people use it once or twice per week, as all the persons store their cash in the bank instead of
their house. And there are few persons who use the e-banking facility several times a month,
as per our diagram n results it shows it conquered 23% of the position.

These people using more and more e-banking products will thus reduce their physical
presence in the branch. 21% customers use it once a month may be for drawing up salary or
for paying bills etc. There are few customers who never use the e-banking services i.e. 6% and
2% customers’ uses e-banking facility every day. And the rest 20% customers hardly use the
facility, may be they visit at regular intervals physically.

 Geographical Reach:
Punjab National Bank also perceived that Internet banking
allows expanded customer contact through increased geographical reach and lower
cost delivery channels. In fact other banks are doing business exclusively via the
Internet — they do not have traditional banking offices and only reach their
customers online. And some financial institutions are using the Internet as an
alternative delivery channel to reach existing customers and attract new customers
.
 Branding:
Relationship building is a strategic priority for PNB. The bankers
perceived that e- banking technology and products can provide a means for this
 national bank to develop and maintain an ongoing relationship with their customers
by offering easy access to a broad array of products and services. By capitalizing on
brand identification and by providing a broad array of financial services, PNB hope to
build customer loyalty, cross-sell, and enhance repeat business
.
 Customer Demographics:
The bankers perceived that e- banking will help the bank to offer a
wide array of options to their banking customers. Some customers will rely on
traditional branches to conduct their banking business. For many, this is the most
comfortable way for them to transact their banking business. Those customers place a
premium on person-to-person contact. Other customers are early adopters of new
technologies that arrive in the marketplace
. These customers were the first to obtain PCs and the first to
employ them in conducting their banking business. The demographics of banking
customers will continue to change. The challenge to all banks is to understand their
customer base and find the right mix of delivery channels to deliver products and
services profitably to their various market segments.
The bankers perceived that e-banking will help the bank to
remain competitive with other banks,retain customers, attract new customers, reduce
operating expenses, or generate income.

 The bankers perceived that customers who adopt online banking are typically more
profitable to the bank, stay with the bank longer and use more products strengthening
the bank customer relationship. Information Technology and Internet banking has
bridged the information gap, which was interestingly because of human involvement.

 The bankers perceived that the bank can make the information of products and
services available on their site, which is, an advantageous proposition. Prospective
customer can gather all the information from the website and thus if he comes to the
branch with queries it will be very specific and will take less time of employee.
Customer can visit these websites and can compare the services offered by a bank with
that of another. Customer can get all the information, by saving money and time. The
trend thus emerging out is that of virtual corporate system where the human role is
minimized to maximum effect.

Basic transactional web sites allow customers to review account balances, holdings and
recent banking statements. Systems that allow customers to initiate transactions online, such
as transferring money between accounts or making payments, will provide additional
advantages to the customer.
Pie-chart showing different age group peoples using the net
banking facility

Source: Internet

In the above diagram we can see the age group which uses the most of net banking
facility services provided by the bank. The maximum usage is done by the middle aged
people i.e. 25%, and the 24% of usage is also done by the people aged 25-34. Younger
persons are being more likely to adopt internet banking which has also linked age and
adoption of technologies. This pie-chart also indicates that older consumers may be
discouraged from the utilization of electronic banking by issues such as limitation of
mobility and visibility.

These enhanced web sites will enable customers to pay bills, apply for and review
loans and mortgages, and check credit card bills.Using the Internet, financial
information from a bank can be linked to account information stored in a program
such as Microsoft Money on a home computer. These features improve "stickiness" of
customers leading to a lower attrition rate.

Growth of online banking customers in india:

as per the findings of internet and Mobile Association of India(IAMAI), about 23% of
the online users prefer internet as banking channel in india , second only to ATM which is
preferred by 53% further the study reveals that the people are not using internet based bank
websites for executing financial transactions in india . The major reasons identified for the
same were security concerns(43%), preference for face–to-face transactions (39%), lack of
knowledge about transferring online(22%), lack of user friendliness (10%), and lack of the
facility in the current bank(2%).

E-banking is being use

E-banking
Using Atm
not using any of them

Source: internet

E-banking has gained wide acceptance internationally . in india also the things are changing
fast. With the advent of Net-banking , Indian economy is on the tbreshold of a major banking
revolution. In 2002 , only about a dozen banks were providing E-banking services. The
Indian banks lag far behind the international or presence of providing online banking. In fact,
this is not possible without creating sufficient infrastructure or presence of sufficient number
of users. The experience of two of the leading private sector banks i.e ICICI bank and HDFC
Bank shows that the number of transaction carried out on the internet is still very limited
compared to banking customers base
 1. Are you aware of net banking services offered by the banks?

(a) Yes

(b) NO

Awareness of internet
banking services
No
10%

Yes
90%

Interpretation of the above diagram

It is good for the banks as most of the respondents were aware of

the internet banking and all the services provided under internet
banking
2. In which company bank do you have your account?

(a) Axis bank

(b) Standard Chartered Bank

(c) HSBC Bank

(d) HDFC Bank

(e) State Bank of India

(f) Other banks

Account in the respectice bank

5% 10%
Axis
SCB
35% 20% HSBC
HDFC
5% SBI
30%
Other banks

Interpretation of the above diagram

It was witnessed that today public sector bank State bank of

India has the largest customer base but the private banks are also
catching up and after State bank of India HDFC has the highest
customer base .Multi-national banks are also making their
presence noticeable in the Indian scenario
3. Do you feel safe in disclosing your details on net?

(a) Yes

(b) NO

safety in disclosing details

No
40%
Yes
60%

Interpretation of the above diagram

This question witnessed a fifty fifty answer from most of the

respondents, few of the respondents felt safe in disclosing their
details but still there were a lot people who felt unsafe in
disclosing and feared their personal information may used by
some other person
4. Are you satisfy with your bank services?

(a) Yes

(b No

Satisfaction with banking

services
No
20%

Yes
80%

Interpretation of the above diagram

It is very interesting to see that most of the respondents are

happy from the services their respective bank is providing ,the
rest of the respondents felt there is a scope of improvement still
they were also happy
5. What are your main transactions you would prefer to do by net?

(a) Money transfers

(b) Checking of your current balance

(c) Create Fixed Deposits Online

(d) Request a Demand Draft

(e) Pay Bills

(f) Order a Cheque Book

(g) Request Stop Payment on a Cheque

Main transactions

Stop payment Money

14% transfer
16%
Order cheque
book Current bal
14% 13%

Pay bill FD
16% 13%
DD
14%
 Interpretation of the above diagram

It is interesting to see that a respondent would like to do all the

transactions which one does personally on a visit to the bank.
Thus, internet banking has a promising future ahead

6. Are you aware of the benefits of net banking which are available?

(a) Yes

(b) No

No
10% Benefits of Internet
0% banking

Yes
90%

Interpretation of the above diagram

It is pretty amazing to see that most of the respondents are aware

of the benefits of internet banking
 7. Are you aware of the methods which can be undertaken to make any
kind of fraud?

(a) Yes

(b) No

Awareness of methods of fraud

Yes
30%

No
70%
Interpretation of the above diagram

It’s pretty tragic but most of the respondents are unaware of the
techniques which can be taken up for any type of fraud

8. Are you aware of all the methods which can be taken up to secure your
transaction?

(a) Yes

(b) No

Methods to secure
transactions
Yes
20%

No
80%

Interpretation of the above diagram

Even with the increasingly knowledge of internet banking most

of the respondents are unaware the software and methods taken
up by the bank to secure each and every transaction.
9. Does your bank educate you about the internet banking
services being offered?

(a) Yes

(b) No

Educating about internet

banking
No
40%

Yes
60%

Interpretation of the above diagram

Most of the respondents felt that they are not properly

educated of internet banking and its benefits to them.
 10. Would you prefer using net banking instead of visiting your
bank every now and then?

(a) Yes

(b) No

Prefer using net banking

No
10%

Yes
90%

Interpretation of the above diagram

It was witnessed that most of the respondents preferred using internet

banking over there conventional banking system. Thus , internet
banking has a bright future ahead
 11. What benefits do you see in internet banking?

(a) Convenience

(b) Speed

(c) Transparency

(d) Time

benefits seen by customers

Time Convenience
10% 16%

Speed
21%

Transparency
53%

Interpretation of the above diagram

Most of the respondents felt that the transparency provided by
internet banking is the highest motivating factor for an
 individual to use internet banking; rest speed convenience and
time are also the other motivating factors .

An Individuals Study of E-Banking System

in PNB: Findings

YEAR IN WHICH e-BANKING STARTED

• IN PNB, e-BANKING STARTED AFTER 2000.

PROCESS TO AVAIL BENEFITS OF e-BANKING

 CUSTOMER HAVING SAVING A/C OR CURRENT A/C CAN HAVE THE
BENEFITS OF e-BANKING.IN THE USERS RATIO OF INTERNET BANKING
65% OF CUSTOMERS ARE USING THIS SERVICE.

SECURITY BY THE BANK TO USERS

 IN PNB, VIRTUAL KEYBOARD IS PROVIDED ONLINE AND UNDER URL
BAR LOCK OPTION IS TOO AVAILABLE.

ANY KPO OR BPO FOR SOLVING THE QUERIES OF USERS

  CONTACT CENTRES OF THE BANK ARE PRESENT TO SOLVE THE

QUERIES OF USERS.

REVIEW FOR ERRORS

 IN PNB ERRORS CAN BE CORRECTED WITHIN MINUTES AMONG
BRANCHES.

MEASURES PROVIDED BYTHE BANK TO OMIT THE PROBLEMS

OF USERS
 THE USERS ARE ASKED TO CONTACT THE CONTACT CENTRES i.e.
(BPO.)

VALUE ADDED SERVICE OTHER THAN e-BANKING SERVICE

 e-TAX, PAY UTILITY BILLS, e-RAIL RESERVATION.

NEW INNOVATION IN NEAR FUTURE

 PNB is looking forward for e-R.D, e-F.D, e-TDR.

VIRUS PROTECTION SOFTWARE UPDATION ON SERVERS

 IT HAPPENS WITHIN MINUTES.

PRIME OBJECTIVES TOWARDS e-BANKING

 THE BANK HASSOCIAL BENEFITS WITH BUSINESS BENEFITS.

DIFFERENT FROM OTHERS BANKS IN e-BANKING

 HEPUNJAB NATIONAL BANK HAS BRAND NAME, TRUSTWORTHINESS,
AND TRANSPARENCY.

TIME TO TAKE A SINGLE ONLINE TRANSACTION

 IN PNB, BRANCH TO BRANCH OR BANK TO BANK – IN SECONDS

INTERNATIONAL – 5 TO 7 HOURS.

IF WEBSITE IS HACKED, IS IT GOVERNMENT OR BANK TO PAY

DEBTS
 THE BANKHAS TO PAY THE DEBT.
 DRAWBACK

 NO SUCH DRAWBACK IN PNB

Chapter- 4

Conclusion &
Recommendation

In conclusion, as has been rightly noted by the Working Group that "the applicability of
various existing laws and banking practices to e-banking is not tested and is still evolving,
both in India and abroad. With rapid changes in technology and innovation in the field of e-
banking, there is a need for constant review of different laws relating to banking and
commerce."
The establishment of the multidisciplinary high level standing committee to review the legal
and technological requirements of e-banking on a continual basis and recommendations of
appropriate measures as and when necessary would really be a panacea for legal clarifications
as and when they arise.

The key in such future and further deliberations would be to encourage banks towards
innovation and where necessary or required evolve new practices and customs to complement
the banking laws in force from time to time.
Keeping in view the terms of reference, the Group has made a number of recommendations in
preceding chapters. A summary of these recommendations is given below.

Technology and Security Standards

The role of the network and database administrator is pivotal in securing the information
system of any organization. Organizations should make explicit security plan and document
it.

Legal Issues
The banks providing Internet banking service, at present are only accepting the request for
opening of accounts. The accounts are opened only after proper physical introduction and
verification. Under the present regime there is an obligation on banks to maintain secrecy
and confidentiality of customer’s account.

Regulatory and Supervisory Issues

All banks, which propose to offer transactional services on the Internet, should obtain
approval from RBI prior to commencing these services. Bank’s application for such
permission should indicate its business plan, analysis of cost and benefit, operational
arrangements like technology adopted, business partners and systems and control procedures
the bank proposes to adopt for managing risks, etc.
 REFERANCE
INTERNET
http://www.onlinebanking.net/online-banking-services/
http://www.productivity501.com/choosing-online-bank/244/
http://www.banknetindia.com/banking/ibkg.htm

REFERENCE BOOKS

 R.K. UPPAL
 BANKING WITH TECHNOLOGY
 NEW CENTURY PUBLICATIONS
 ANNEXURE
QUESTIONNAIRES
Dear Respondent,

I am student of CITY COLLEGE OF COMMERCE & BISINESS

ADMINISTRATION, I am doing this research to compare different services
provided by bank to its clients.

1. Are you aware of net banking services offered by the banks?

(a) Yes

(b) No

2. In which company bank do you have your account?

(a)Axis bank

(b)Standard Chartered Bank

(c)HSBC Bank

(d)HDFC BANK
(e)STATE BANK FOF INDIA

(f)OTHER BANK

3. Do you feel safe in disclosing your details on net?

(a)Yes

(b)No

4. Are you satisfy with your bank services?

(a)Yes

(b) No

5. What are your main transactions you would prefer to do by net

(a) Money transfers

(b) Checking of your current balance

(c) Create Fixed Deposits Online

(d) Request a Demand Draft

(e) Pay Bills

(f) Order a Cheque Book

(g) Request Stop Payment on a Cheque

6. Are you aware of the benefits of net banking which are available?

(a) Yes

(b) No
7. Are you aware of the methods which can be undertaken to make any
kind of fraud?

(a) Yes

(b)No

8. Are you aware of all the methods which can be taken up to secure your
transaction?

(a) Yes

(b) No

9. Does your bank educate you about the net banking services being offered?

(a) Yes

(b) No

10. Would you prefer using net banking instead of visiting your bank every
now and then?

(a) Yes

(b) No

11. What benefits do you see in internet banking?

(a) Convenience

(b) Speed

(c) Transparency
 (d) Time

Personal Information
Name:

Age: Sex: Phone No:

Occupation: Signature: