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.

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. 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
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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. E-banking has the potential to transform the banking business as it significantly lowers transaction and delivery costs. This paper discusses some of the problems developing countries, which have a low penetration of information and telecommunication technology, face in realising the advantages of e-banking initiatives. Major concerns such as the digital divide between the rich and poor, the different operational environments for public and private sector banks, problems of security and authentication, management and regulation; and inadequate financing of small and medium scale enterprises (SMEs) are highlighted.

Why E-banking?
There are not many inventions that have changed the business of banking as quickly as the e-banking revolution. World over banks are reorienting their
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business strategies towards new opportunities offered by e-banking. Ebanking has enabled banks to scale borders, change strategic behaviour and thus bring about new possibilities. E-banking has moved real banking behaviour closer to neoclassical economic theories of market functioning. Due to the absolute transparency of the market, clients (both business as well as retail) can compare the services of various banks more easily. For instance, on the internet, competitors are only one click away. If clients are not happy with the products, prices or services offered by a particular bank, they are able to change their banking partner much more easily than in the physical or real bank-client relationship. From the banks point of view, use of the internet has significantly reduced the physical costs of banking operations. As discussed by Turner (2001), progress in information technology has slashed the costs of processing information, while the internet has facilitated its transmission, thus facilitating change in the very essence of the banking business. Around the world, electronic banking services, whether delivered online or through other mechanisms, have spread quickly in recent years. It must be noted that the impact of e-banking is not limited to industrial and advanced emerging economies. Even in countries with underdeveloped banking systems, E-banking has offered many new business opportunities

What Is E-banking?
In simple words, e-banking implies provision of banking products and services through electronic delivery channels. Electronic banking has been around for quite some time in the form of automatic teller machines (ATMs) and telephone transactions. In more recent times, it has been transformed by the the internet a new delivery channel that has facilitated banking transactions for both customers and banks. For customers, the internet offers faster access, is more convenient and available around the clock irrespective of the customers location. For banks, it is a much more efficient and cost- saving channel

Challenges in E-banking for Developing Countries

Based on best practices in developed countries, United Nations Conference on Trade and Development (UNCTAD) report has identified four challenges

that developing countries, in general, are expected to overcome to achieve the advantages that ebanking initiatives can bring about [UNCTAD 2002] 1) The ability to adopt global technology to local requirements: An adequate level of infrastructure and human capacity building are required before developing countries can adopt the global technology for their local requirements. For example, the review of the migration plan of Society for Worldwide Interbank Financial Telecommunications (SWIFT) to the internet shows that to date full migration has not occurred in many developing countries due to the lack of adequate infrastructure, working capital, and required technical expertise. Broadly accepted e-payment systems are another such example. Many corporates and consumers in some developing countries either do not trust or do not have access to the necessary infrastructure to be able to process e-payments. (2) The ability to strengthen public support for e-finance: Historically, most efinance initiatives in developing countries have been the result of cooperative efforts between the private andpublic sectors. For example, Singapores successful TradeNet system was a government-sponsored project. If the public sector does not have the necessary means to implement the projects it is essential that cooperative efforts between public and private sectors, along with the multilateral agencies like the World Bank, be developed to facilitate public support for e-finance related initiatives (3) The ability to create a necessary level of regulatory and institutional frameworks: The lack of regulatory frameworks, trust, security and privacy standards, high trade barriers, customer and investor protections impede progress in implementing e-banking initiatives on a larger scale in many developing countries. (4) The ability to mainstream small and medium scale enterprises (SMEs) towards e-banking: The availability of and access to quality data and banking information is required for SMEs in developing countries to move towards ebanking. Similarly, on-line credit information will enhance SMEs ability to secure financing

E-banking in India: Major Concerns First, in India, there is a risk of the emergence of a digital divide as the poor are excluded from the use of the internet and so from the financial system. Empirical evidence shows that richer countries possess higher
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concentrations of internet users (higher than income concentration) in comparison with poorer countries [Hawkins 2002]. In India (where the poverty ratio is still adverse at 26.1 per cent of total population), it is likely that wealthier people will rapidly migrate to e-banking platforms leaving the poor to bear the cost of the physical infrastructure of branches in the form of transaction fees or non-competitive interest rates on their deposits. Second, even today, the operational environment for public, private and foreign banks in the Indian financial system is quite different. A handful of foreign banks operating in India first offered e banking services to their customers such as ATMs, computerized monthly statements, secure online operations, etc. The new generation of private sector banks (who did have developmental obligations similar to their counterparts in the public sector) did not possess a legacy of manual practices and, hence, were able to adopt easily modern banking practices with state-of-the-art operations. However, challenges before the public sector banks are plenty and of a different kind. While, they have to handle volumes which are mind boggling, there are also issues of legacy, old habits and political pressures. Systems of accounting, control and delegation were set up decades ago and adoption of technology in terms of real time banking and its compatibility with all phases of banking is not yet adequately perceived. Furthermore, the security risk involved in computerization is directly related to the size of the network. For PSBs, the major problems are in the form of security risks, network downtime, scarcity of trained personnel, expensive system upgrades and recurring costs given the massive scale of their current operations. A research study by Errol DSouza (2002) on the comparative performance of public and private sector banks in the decade of the 1990s shows that though the turnover/employee ratio rose in PSBs, the turnover per employee in private and foreign banks doubled relative to the ratio for PSBs. Also, this is not due to the presence of a large rural and semi-urban concentration of bank branches amongst PSBs but rather due to technological up gradation in the private and foreign banks. Private and foreign banks have changed the structure of their employment towards a higher skilled workforce by increasing the recruitment of officers and reducing clerical and subordinate staff. The combination of higher technology and higher skills have posted a higher turnover for these banks as they have been able to provide better customer support and have managed their assets well Third, confidentiality, integrity and authentication are very important features of the banking sector and were very successfully managed the world over in pre-internet times. Communication across an open and thus
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insecure channel such as the internet might not be the best base for bankclient relations as trust might partially be lost [Grethen 2001]. Though at different levels in the computerization spectrum, both public and private banks in India have realized the importance of Public Key Infrastructure (PKI) solutions. PKI is expected to guarantee then required level of trust and to provide for the security needs of all e-communities in terms of confidentiality, integrity, no repudiation services, etc. However, the size of the initiative is going to vary significantly between public and private banks. For private banks, security considerations are an important value-added and risk reduction utility for their online and real time transactions. But for public sector banks, computerization is the First agenda a massive exercise given their very large branch networks and security is the second priority. But this endangers the position of public sector banks in the immediate period as breaches of security and disruptions in the systems availability can damage a banks reputation. The more a bank relies on electronic delivery channels, the greater the potential for reputational risks. Fourth, e-banking has created many new challenges for bank management and regulatory and supervisory authorities. They originate not just from increased potential for cross border transactions but also for domestic transactions based on technology applications which raise many security related issues [Hawkins 2002]. The Basel Committee on Banking Supervisions Electronic Banking Group (EBG) (2001) has defined risk management principles for electronic banking. They primarily focus on how to extend, adapt, and tailor the existing risk-management framework to the electronic banking setting. It is necessary to know whether the efforts undertaken by the RBI are sufficient to ensure a reasonable level of security. Fifth, there are some serious implications of international e-banking. It is a common argument that low transaction costs potentially make it much easier to conduct cross-border banking electronically. For many banks, crossborder operations offer an opportunity to reap economies of scale. But crossborder finance also needs a higher degree of cross-border supervision. Such cooperation may need to extend to similar supervisory rules and disclosure requirements (for efficiency and to avoid regulatory arbitrage) and some harmonizing of legal, accounting and taxation arrangements. The real question here is whether India at the present juncture is adequately prepared to face the consequences of cross border e-banking?

Sixth, there is no commercial bank in India, which has exclusively specialized in the small business segment. SMEs in India have generic problems like the inability to provide quality data, to exhibit formal systems and practices and the lack of asset cover. This has created unwillingness in banks to undertake large-scale lending to SMEs. Legal and regulatory compliance has also been inadequate. Traditional drawbacks like asymmetric and nontransparent data and low capital bases continue to characterize their balance sheets. The problem is further compounded due to the preponderance of a large cash economy in this segment. There are many challenges involved in a webbased relationship model for SMEs within India given the current state of regulation

Indian E-banking Scenario

As per the international report the banking transactions on a brick and mortar banking costs around $ 1.1. While through ATM it costs around $ 0.27 and just 1 percent of over the counter banking in case of Internet banking. Statistics such as these have woken the Indian Banking Industry. Thus, the Indian banking system is seeing a fabulous change in the quality of service provided by them. Technology is the root of this change, which is implemented by the banks to win more business from customers. Almost all the private sector banks are moving towards eenabling their existing products. HDFC Bank and ICICI Bank have taken a lead in introducing ebanking in India. Internet banking starts from migrating existing products to the net. This started initially with simple functions such as getting information about interest rates, checking account balances and computing loan eligibility. Then the services were extended to online bill payment, transfer of funds between accounts and cash management services for corporates. Recently, banks started setting up payment gateways for B2B and B2Ctransactions. This is to facilitate payment for e-commerce transactions by directly debiting bank accounts or through credit cards. Banks can earn a commission based income, on the transaction or sale value resulting in higher other income. This could be more than the revenues they can generate from credit card transactions. Private sector banks have leveraged the Internet effectively in taking away the customers from public sector banks and significantly increased their revenue potential. Internet banking is just one manifestation of these banks technological capabilities. They have a complete automation, an electronic customer database, real time transaction processing capabilities and the latest technological platforms. Management of these banks is very focused in using technology as a key competitive tool. The capability of the managementis also visible in

terms of their profitability. Among the private sector banks HDFC Bank and ICICI Bank have excellent returns on equity compared to their peers in the industry.

Advantages Of Internet Banking

1) An internet banking account is simple to open and use. You just enter a few answers to questions in a form while sitting comfortably in your own home or office. To access your account, you establish security measures such as usernames and passwords. To complete the set up of your account, you just print, sign and send in a form. 2. Internet banking costs less. Because there are fewer buildings to maintain, and less involvement by salaried employees, there is a much lower overhead with online banks. These savings allow them to offer higher interest rates on savings accounts and lower lending rates and service charges. Even traditional brick and mortar banks offer better deals such as free bill paying services to encourage their customers to do their banking online. 3. Comparing internet banks to get the best deal is easy. In a short time, you can visit several online banks to compare what they offer re savings and checking account deals as well as their interest rates. Other things you can easily research are what credit cards are available, credit card interest rates, loan terms and the banks own rating with the FDIC. 4. Bouncing a check (accidentally) should be a thing of the past because you can monitor your account online any time, day or night. You can track your balance daily, see what checks have cleared and when and know when automatic deposits and payments are made. This is all possible by simply going online to the banks website and logging into your account. 5. You can keep your account balanced using your computer and your monthly statement. Your bank account information can be downloaded into software programs such as Microsoft Money or Quicken, making is easy to reconcile your account with just a few mouse clicks. The convenience of the data capture online makes it much easier to budget and track where your money goes. Your internet bank account even allows you to view copies of the checks you have written each month. 6. With the ability to view your account at anytime, it is easier to catch fraudulent activity in your account before much damage is done.
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As soon as you log into your account, you will quickly see whether there is anything amiss when you check on your deposits and debits. If anyone writes a check or withdraws funds from your account and you know it wasn't you, you will see it right away. This lets you get started on correcting the problem immediately rather than having to wait a month to even have a clue it is happening as would be the case with a traditional bank. 7. Internet banking offers a great deal more convenience than you could get from a conventional bank. You aren't bound by 'banker's hours' and you don't have to go there physically in your car. Time is not wasted when you have work to do because you can do your office's banking without leaving the office. No matter where you are or what time it is, you can easily manage your money. There are sound reasons why internet banking is growing. The economic advantages have encouraged banks to provide an increasing range of easy to use services via the internet. Customers have found doing business online simple and speedy and have become very comfortable with the arrangement. Internet banking gives people more control over their money in a very convenient way that they find enjoyable and reassuring.

ABOUT SBI
The Bank is actively involved since 1973 in non-profit activity called Community Services Banking. All our branches and administrative offices throughout the country sponsor and participate in large number of welfare activities and social causes. Our business is more than banking because we touch the lives of people anywhere in many ways. Their commitment to nation-building is complete & comprehensive. EVOLUTION OF SBI The origin of the State Bank of India goes back to the first decade of the nineteenth century with the establishment of the Bank of Calcutta in Calcutta on 2 June 1806. Three years later the bank received its charter and was re-designed as the Bank of Bengal (2 January 1809). A unique institution, it was the first joint-stock bank of British India sponsored by the Government of Bengal. The Bank of Bombay (15 April 1840) and the Bank of Madras (1 July 1843) followed the Bank of Bengal. These three banks remained at the apex of modern banking in India till their amalgamation as the Imperial Bank of India on 27 January 1921. Primarily Anglo-Indian creations, the three presidency banks came into existence either as a result of the compulsions of imperial finance or by the felt needs of local European commerce and were not imposed from outside in an arbitrary manner to modernise India's economy. Their evolution was, however, shaped by ideas culled from similar developments in Europe and England, and was influenced by changes occurring in the structure of both the local trading environment and those in the relations of the Indian economy to the economy of Europe and the global economic framework.

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About Online SBI

State Bank of India is India's largest bank with a network of over 13000 branches and 5 associate banks located even in the remotest parts of India. State Bank of India (SBI) offers a wide range of banking products and services to corporate and retail customers. Online SBI is the Internet banking portal for State Bank of India. The portal provides anywhere, anytime, online access to accounts for State Bank's Retail and Corporate customers. The application is developed using the latest cutting edge technology and tools. The infrastructure supports unified, secure access to banking services for accounts in over 13,000 branches across India. The Retail banking application is an integration of several functional areas, and enables customers to: Issue Demand Drafts online Transfer funds to own and third party accounts Credit beneficiary accounts using RTGS/NEFT feature Generate account statements Setup Standing Instructions Configure profile settings

Use e Tax for online tax payment Use e Pay for automatic bill payments

Interface with merchants for railway and airline reservations Avail DEMAT and IPO services Pay bill of Visa Credit Card issued by any Bank. The Online SBI corporate banking application provides features to administer and manage corporate accounts online. The corporate module provides roles such as Regulator, Admin, Uploaded, Transaction Maker, Authorizer, and Auditor. These roles have access to the
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following functions: Manage users, define rights and transaction rules on corporate accounts Access accounts in several branches with a single sign-on mechanism
Upload files to make bulk transactions to third parties, supplier, vendor and tax collection authorities.

Use online transactional features such as fund transfer to own accounts, third party payments (both Inter and Intra bank), and draft issues Make bill payments over the Internet. Authorize, modify, reschedule and cancel transactions, based on rights assigned to the user Generate account statement Enquire on transaction details or current balance In addition to the above the Internet banking application also provides the following value added services: Tax payments to central and state governments through site to site integration. Supply Chain Finance( e-VFS- Electronic Vendor Finance Scheme) Direct Debit Facility E Collection Facilities for: Core Banking Transactions Inter Bank Transactions for incoming RTGS/NEFT Transactions Internet Banking Transactions for SBI & Associate Banks Direct Debit facility where suppliers can directly debit their customers account through Internet Banking

E BANKING SERVICES

A) E-Ticketing

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You can book your railway, air and bus tickets online through OnlineSBI. To book your train ticket, just log on to irctc.co.in and create an ID thereat if you do not have one. Submit your travel plan and book the ticket(s)-either

i-ticket (where the delivery of tickets will be made at your address) or

e-tickets (wherein after successful payment transactions, an e-ticket is generated which can be printed any time. For an e-ticket, the details of photo identity card will required to be filled in)and select State Bank of India in the payment options. You will be redirected to Internet Banking site of SBI (www.onlinesbi.com). After submitting the respective ID and password, you can select your account. After a successful debit, Railways will generate the ticket. E-ticket can be printed by you whereas the i-ticket will be dispatched by IRCTC at the given address. Service charges @ Rs.10/- per transaction shall be levied in addition to the cost of the ticket. Cancellation of E-ticket can be done by logging on to IRCTC's site; refund amount will be credited to your account directly within 2-3 days. For cancellation of i-ticket, you shall be required to submit your ticket at a computerized counter of Railways and on cancellation, the amount shall be credited back to your account. You can also book your Air ticket through the e-ticketing feature. Logon to Indian Airlines website to make a payment for an e-ticket through State Bank of India, you need to select SBI as the payment option. The payment request will be redirected to Internet Banking site. The request may be processed based on values sent from the airlines website. Once a transaction is processed, an appropriate response will be sent to airlines site to update the status of the transaction. You can print the E-ticket immediately. To book bus tickets to destinations in Karnataka, log on to the KSRTC website. Provide details about the start and end points of your journey, date of journey and number of tickets. Verify availability of seats on the selected date and confirm the transaction. Select OnlineSBI to make the payment. Provide your credentials and select the SBI account that will be debited for the payment. You are provided a KSRTC reference number for your e-Ticket.

B) Bill Payment
A simple and convenient service for viewing and paying your bills online. No more late payments No more queues No more hassles of depositing cheques

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Using the bill payment you can view and Pay Various bills online, directly from your SBI account. You can pay telephone,electricity, insurance,credit cards and other bills from the comfort of your house or office, 24 hours a day, 365 days a year. Simply logon to https://www.onlinesbi.com/ with your credentials and register the biller to which you want to pay, with all the bill details. Once the bill is uploaded by the biller, you can make payment online.You can see 'how do i' to learn the steps for using the facility. You can also set up AutoPay instructions with an upper limit to ensure that your bills are paid automatically whenever they are due. The upper limit ensures that only bills within the specified limit are paid automatically, thereby providing you complete control over these payments. The e-PAY service is available in various cities across the country and you can now make payments to several billers in your region.

C) Secure Card Transaction

State Bank of India offers the following services for safe and secure paperless banking: State Bank ATM-cum-Debit Card: State Bank of India offers unparalleled convenience through State Bank ATM-cum-Debit card. With this card, there is no need to carry cash in your wallet. You can now withdraw cash and make purchases anytime you wish to with your ATMcum-Debit card. You can use your ATM-cum-Debit card to transact for FREE at any of over 20,000 ATMs of any bank in State Bank Group within the country. Verified by Visa (VBV) is an easy to use, secured online payment service from State Bank of India in association with VISA that lets you shop securely online with your existing State Bank
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of India Visa Debit Card. This service through a simple checkout process, confirms your identity when you make purchases on the Internet. Verified By VISA Service allows you to create a password and it protects your online transactions just like you use your PIN at the ATM. Maestro Card/Master Card Secure Code/VbV for VISA classic and Silver cards is a new service from State Bank of India, in association with MasterCard that lets you shop online securely with your existing State Bank of India Debit Card which may be used only on merchant websites that subscribe to services of "MasterCard SecureCode". Secure Code Service confirms your identity through a simple check process when you make online purchases. Secure Code Service allows you to create a password and it protects your online transactions just like you use your PIN at the ATM.

D) MOBILE BANKING

State Bank Freedom Your Mobile Your Bank Away from home, balance enquiries can be made and/or money sent to the loved ones or bills can be paid anytime 24x7!!! That is what State Bank FreedoM offers -convenient, simple, secure, anytime and anywhere banking. 1. Mobile Banking Service over Application/ Wireless Application Protocol (WAP) The service is available on java enabled /Android mobile phones (with or without GPRS) where the user is required to download the application on to the mobile handset. The service can also be availed via WAP on all phones (java/non java) with GPRS connection. The following functionalities are available:
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Funds transfer (within and outside the bank) Interbank Mobile Payment Services (IMPS): Enquiry services (Balance enquiry/ Mini statement) Cheque book request Demat Enquiry Service Bill Payment (Utility bills, credit cards, Insurance premium), Donations, Subscriptions Mobile Top up

M Commerce (Top up of Tatasky, BigTV, SunDirect, DishTV, DigitalTV and Videocon d2h connections, SBI life insurance premium) Business Rules All Current/ Savings Bank Account holders in P segment are eligible. Transaction limit per customer per day is Rs.50,000/- with a calendar month limit of Rs.2,50,000/ All customers can avail the Service irrespective of their telecom service provider. The Service is free of charge. SMS/GPRS cost will be borne by the customer.

2. Mobile Banking Service over SMS: The service is available on all phones (java/non java) with/without GPRS connection. No need to download the application. Ordinary SMS charges are applicable. The following functionalities are available: Enquiry Services (Balance Enquiry/Mini Statement) Mobile Top up DTH Top up/ recharge IMPS- Mobile to Mobile Transfer Change MPIN Business Rules All Current/ Savings Bank Account holders in P segment are eligible.

Transaction limit per customer per day is Rs.1,000/- with a calendar month limit of Rs.5,000/ All customers can avail the Service irrespective of telecom service provider. The Service is free of charge. SMS cost will be borne by the customer.

As a matter of abundant precaution, Customers are requested to delete all the messages sent to the number 9223440000, once the response for their request has been received. 3. Mobile Banking Service over USSD (Unstructured Supplementary Service Data)
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The service is available on all phones (java/non java) with/without GPRS connection. No need to download the application. The following functionalities are available: Enquiry Services (Balance Enquiry/Mini Statement) Mobile Top up Funds Transfer (within Bank) Business Rules All Current/ Savings Bank Account holders in P segment are eligible. Transaction limit per customer per day is Rs.1,000/- with a calendar month limit of Rs.5,000/ The Service is available for subscribers of select telecom operators only. The Service is free of charge. USSD session charges will be borne by the customer. The service is session based and requires a response from the user within a reasonable time.

E) CINB SARAL

CINB SARAL is a simplified version of Corporate Internet Banking with default transaction rights, ideal for Single user entrepreneurs consisting of sole proprietorship concerns, micro enterprise, individual businessmen having non individual account at our branches.

The facility which is highly customer friendly provides the ease and convenience of Retail Internet Banking without compromising on the security of the customer. The product facilitates hassle free and safe online transactions like funds transfer, third party transfer, various tax payments and merchant transactions etc. by a single user corporate without the need for elaborate role based account management required in Vyapaar and Vistaar.

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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.

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DATA INTERPRETATION

Using E-Banking

Most Preferred Service Providing Better Service

SBI Grading

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Findings
1.

In the users ratio of internet banking 73% 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 bank 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.

5.

Among all bill payment is the most preferred service of the costumers. Most of the customers are not aware about CINB SARAL.

Recommendation
1. The bank should come forward with more meaningful advertisements and awareness campaigns to create awareness among customers regarding E-banking services and to make E-banking popular among the entire age and income group. 2. Systems should be simple to use, fast and user friendly. Service should be standardized so that wherever the solution is used the customer is familiar with the procedure followed. Customers should have ready sources of advice, whether this is through call centers, through publicity or through physical presence. 3. Efforts should be made to provide the users of E-banking with an instant solution at the time of using E-banking services such as in case of password forgotten, ATM out of order etc. 4. E banking services should be designed to reduce the cost of transactions for the financial institution as much as to deliver value to the customer. However, an electronic banking solution can be designed as a low-cost bank account on a card or telephone, with a number of features valuable to customers, such as cash withdrawals and cash-back transactions, deposits, payments and transfers.
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QUESTIONNAIRE
Name_______________________ Age___________ Gender____________

Q-1)what is your occupation? a) b) c) d) Business Service Professional Others________________

Q-2)what is your income group? a) b) c) d) 1-3 lacs 3-5 lacs 5-7 lacs Above 7 lacs

Q-3)which type of A/C do you have? a) b) c) d) Saving Current Demat All in one

Q-4) do you use E-Banking service? a) Yes b) No

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Q-5) why SBI bank? a) b) c) Service is good Security Cheaper service fee

Q-6) which type of service do you use mostly? a) b) c) d) e) Bill payment Mobile banking Service card transaction CINB SARAL E-Ticketing

Q-7) do you use E-Bill payment service? a) Yes b) No

Q-8) do you use mobile banking service? A) Yes b) No

Q-9) do you use ATM service? a) Yes b) No

Q-10) do you use E-Ticketing service? a) Yes b) No

Q-11) do you use CINB SARAL service? a) Yes b) No

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Q-12) do you have A/c with any other bank? If yes a) b) c) d) e) HDFC AXIS YES bank Others_____________ No

Q-13) which bank is providing better E-Banking service? a) b) c) d) e) SBI AXIS YES bank HDFC Others______________

Q-14) how you grade SBI E-Banking service? a) b) c) d) Excellent Good Average Poor

Q-15) how frequently you use SBI E-Banking service? a) b) c)

d)

Once in a day Once in a week Once in a month Cant say

Q-16) how you rank the security parameters of SBI E-Banking service? a) b) c) d) e) Best Good Average Poor Worst
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Q-17) would you like to suggest any improvement in SBI E-Banking services? ______________________________________________________________ _____ ______________________________________________________________ _____

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