INTRODUCTION

Electronic Banking (E-banking) or Internet 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. Once the branch offices of bank are interconnected through terrestrial or satellite links,
there would be no physical identity for any branch. It would be a borderless entity permitting
anytime, anywhere and anyhow banking

India is moving forward on the way of the most significant digital revolution and digital
payment system will be an important landmark in the regime of cashless economy in the
coming years. Digital payment system is an electronic medium that allows consumers to
make electronic commerce transactions for their purchase and also financial transactions. The
development of the digital payment in India is anticipated to be driven by digital payment
service providers, effective banking regulatory mechanism and experience of consumers and
these are also growth enhancing factors for digital payment in India (Sumathy and Vipin,
2017). Digital payment system has remarkable momentum particularly after demonetization
in India. The Government of India is taking various steps for efficient utilization of digital
payment platforms to wipe out corruption and black money from the Indian economic
system. Presently, around 60 per cent of the transactions in India are taken place through
digital platforms. Though digital payment is generally accepted by public, there are few
criticisms about processing of digital payment system.To popularize and speed up of
adoption of digital payment, there are many number of digital payment systems are launched
in India. With this backdrop, it is imperative to study the perception of consumers towards
digital payment in Coimbatore district.
In the twenty first century, banking facilities are no longer restricted to working hours but can
be accessed easily anytime and anywhere at your fingertips. The plastic cards in our wallets
have outnumbered the currency notes. This change can be owed to a number environment.
However, the biggest reason for the online banking replacing the traditional banking practices
is the tremendous development and sweeping changes in the field of Information
Technology. Electronic banking is a major part of E-commerce all over the world. E-banking
is the term that signifies and encompasses the entire sphere of technology initiatives that have
taken place in the banking industry. E-banking is a generic term making use of electronic
channels through telephone,mobile phones, internet etc. Delivery of banking services and
products.Various authors define EBanking differently but the definitions depicting the
meaning and features of e-banking most clearly are as follows:

* E-Banking is a mix between Electronic technology and Banking.

* E-Banking is where customers perform banking operations electronically without actually

visiting the branch.

* E-Banking symbolizes providing banking related services by using information technology

without actual visit to the bank by the customer.

Earlier customers had to approach the branch in person - to withdraw cash or deposit a
cheque or request a statement of accounts. Through Internet banking, any inquiry or
transaction is processed online, anywhere and at any time. Banks have come a long way from
their traditional banking methods as the advancement in technology has paved new ways of
delivering bank facilities to the customer, such as ATMs & Internet Banking. What
significantly attracts customers to internet banking is the round the clock availability and ease
of transactions. Many users have turned towards E-Banking due to disappointment with set
methods and implementation. The feature of non-human interaction has also appealed to the
majority. Customers have also chosen electronic banking because of the perception that they
are more secure. Customers are now able to avoid the hurry to reach a bank before it shuts for
the day, as they can now bank through a computer or using ATMs. Automated Teller
Machines and internet banking are the two major types of E-banking methods in use today.
Singhal and Padhmanabhan (2008) describe Internet banking as new age banking which uses
the internet as a delivery channel to conduct regular banking activities like paying bills &
mortgages, checking account balances etc. It's obvious advantages are that it isn't bound by
operational timings, the services can be offered at a minuscule cost and there are no
geographical barriers. The services of bank through internet are a prime attractive feature.
Factor analysis results indicated that utility request, security, utility transaction, ticket
booking and fund transfer are major factors that influence the customers' perception towards
e-banking.

One of the most popular uses of electronic banking is Electronic Fund Transfers (EFTs). In
an EFT, the customer initiates the transfer of money to or from her account to the account of
another party. This can be a one-time transaction or a set up to be recurring payments at a
certain time each month. Internet banking means that any user with a computer and an
internet connection can get connected to his bank's website in order to perform the functions
of virtual banking. 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 on the
page's menu. Using E-Banking, any service can be selected and interaction can be dictated by
the nature of the service. The traditional branch model of banking is being developed in such
a way that it gives place to an alternative delivery channel with ATM network. Once the
branch offices of all the banks are interconnected through terrestrial or satellite links, there
would be no physical identity for any branch

What Is E-Banking Or Internet Banking

Electronic banking is one of the truly widespread avatars of E-commerce the world over. In
simple words, e-banking implies provision of banking products and services through
electronic delivery channels. Various authors define E-Banking differently but the most
definition depicting the meaning and features of E-Banking are as follows: “E-Banking is a
combination of two, Electronic technology and Banking.” “Electronic Banking is a process
by which a customer performs banking Transactions electronically without visiting a brick-
and-mortar institutions.” “E-Banking denotes the provision of banking and related service
through Extensive use of information technology without direct recourse to the bank by the
customer.”
NEEDS AND IMPORTANCE OF THE STUDY

As a result, registered Internet banking users can now perform common banking transactions
such as ….

• Writing checks,

• Paying bills,

• Transferring funds,

• Printing statements, and

• Inquiring about account balances.

The popular services covered under E-banking include:-

1. Automated Teller Machines,

2. Credit Cards,

3. Debit Cards,

4. Smart Cards,

5. Electronic Funds Transfer (EFT) System,

6. Cheque Truncation Payment System,

7. Mobile Banking
OBJECTIVES OF THE STUDY

The study is confined to the following objectives

 To study the utilization level of e-banking services among the customers of HDFC
bank.
 To study the challenges faced by customers in utilizing e-banking services of HDFC
bank
 To identify the consumers perception on cashless transactions in digital economy
 To identify the factors influencing consumers towards cashless transactions
Consumers’ Perception towards Cashless Transactions and Information Security in
the Digital Economy com
 To analyze the awareness of the consumers concerning the information security in
cashless transaction

 There is no significant difference is perceived by respondents for various attributes of

digital payment on the basis of gender of respondents.
 There is no significant difference is perceived by respondents for various attributes of
digital payment on the basis of age of respondents.
SCOPE OF THE STUDY

The customer can access his account anytime and from any part of the world,

Attracts new customers

Facilitate the offering of more services

No monthly payments are required for availing this service

 Free of charge bill reimbursement and refunds on ATM surcharges,

 Attractive interest rates on CDs, savings, etc.,

 Credit card service at minimal charges,

 Simple online submissions for personal accounts,

loans and credits,

 Increase customer loyalty

 Provide services offered by competitors

 Reduce customer attrition

RESEARCH METHODOLOGY
The current study is based on primary data collected from 150 respondents from the different
parts of Delhi. A well-structured questionnaire was designed to collect the information from
the respondents the questionnaire was designed to study perception of customer towards
adoption of digital payment mode. Likert five point scales were used for obtaining responses.
The responses have been collected by means of face-to-face interviews by authors.

SAMPLING DESIGN:

Sampling unit: This call is for defining the target population to be surveyed. In this research
the sampling unit was the customers who have been using the digital payment modes.
Sample size: In this survey the sample size decided was 150.
Sampling procedure: We adopted Intercept interview method for collection of primary data,
as it is not possible to take appointment from a large number of respondents. Purpose of this
research was told to respondents and questions were explained to them in case there was any
need for understanding any particular question. There had been no personal bias or distortions
were allowed while recording the responses
The present study aims to explore the major factors responsible for internet banking
based on respondents’ perception on various internet applications.
LIMITATIONS OF STUDY

 The e-banking and m-Banking system as well as knowledge about user behavior in
relation to technology, a long way to become a close associate of common man.
 The interpretations of the results of this study were limited. There were several
limitations of this study: data collection, generalizability of the study, and scope of the
study.
 The secondary data was collected on the basis of random sampling, so it was not
possible to get exact and accurate result for the study, access to the customers and to
fill the questionnaire from that was not easy.
 In the present study only bank customers have been studied. The users of e-Banking
and m- Banking were very large.
 Education status of the customer was high. Maximum of the customers were graduate
and having internet facility with them. Most of the users are using mobile phones, so
the results were positive.
 In this study the emphasis was given on the customer satisfaction towards the
technology used in banking only, the major issue of security and privacy was not
included.