E-BANKING

E-BANKING

CHAPTER 1 INTRODUCTION TO EBANKING

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1.1 INTRODUCTION
Competition and the constant changes in technology and lifestyles have changed the face of banking. Nowadays, banks are seeking alternative ways to provide and differentiate amongst their varied services. Customers, both corporate as well as retail, are no longer willing to queue in banks, or wait on the phone, for the most basic of services. They demand and expect to be able to transact their financial dealings where and when they wish to. With the number of computers increasing every year, the electronic delivery of banking services is becoming the ideal way for banks to meet their clients expectations. Online banking or e-banking can be defined as online systems which allow customers to plug into a host of banking services from a personal computer by connecting with the banks computer over the telephone wires. Technology continues to make online banking easier for the average consumer. Banks are using a variety of names for online banking services, such as PC banking, home banking, electronic banking or Internet banking. Regardless of the given name, these systems certainly offer specific advantages over the traditional banking methods. 2

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E- Banking can be defined as delivery of banks services to a customer at his office or home using Electronic Technology. The quality, range and price of these electronic services decide a banks competitive position in the industry.

Technology in banking has been used in four major ways: To handle a greatly expanded customer base To reduce substantially the real; cost of handling payments To liberate the banks from the traditional constraints on time and place To introduce new products and services.

1.2 What is Electronic Banking?

Electronic banking is the wave of the future. It provides enormous benefits to consumers in terms of the ease and cost of transactions. But it also poses new challenges for country authorities in regulating and supervising the financial system and in designing and implementing macroeconomic policy.

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Other financial Commerce TelephoneMoney Internet Banking Other E- Finance E-Banking E Banking electronic E- services or Providingproductsprepaid Conducting business through electronic delivery financial services Stored valuebanking Providing or channels Insurance, online channels through electronicbrokering products and services payment mechanism. network etc.

E-BANKING Electronic banking has been around for some time in the form of automatic teller machines and telephone transactions. More recently, it has been transformed by the Internet, a new delivery channel for banking services that benefits both customers and banks. Access is fast, convenient, and available around the clock, whatever the customer's location plus, banks can provide services more efficiently and at substantially lower costs.

Electronic banking also makes it easier for customers to compare banks' services and products, can increase competition among banks, and allows banks to penetrate new markets and thus expand their geographical reach. Some even see electronic banking as an opportunity for countries with underdeveloped financial systems to leapfrog developmental stages. Customers in such countries can access services more easily from banks abroad and through wireless communication systems, which are developing more rapidly than traditional wired communication network.

1.3 Comparison between TRADITIONAL BANKING & ELECTRONIC BANKING

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MoneyNextin thethetoon the Gives instructions Types logs the a Client prepares He goes to on Deposits bank is transferred day user E TRADITIONAL BANKING MoneyOnlinebank NameCheque site Banks web Chequetransferred Samein & password is day L E C T R O N I C B A N K I N G

1.4 HISTORY OF E-BANKING

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The concept of Internet banking has been simultaneously evolving with the development of the world wide web. Programmers working on banking data bases came up with ideas for online banking transactions, sometime during the 1980's. The creative processes of development of these services were probably sparked off after many companies started the concept of online shopping. The online shopping promoted the use of credit cards through Internet. Many banking organizations had already started creating data ware housing facilities to ease their working staffs. The development of these databases was widely used during the development of ATM's. Sometime in 1980's, banking and finance organizations in Europe and United States started suggestive researches and programming experiments on the concept of 'home banking'. Initially in the 80's when computers and Internet were not so well developed, 'home banking' basically made use of fax machines and telephones to facilitate their customers. The wide spread of Internet and programming facilities created further opportunities for development of home banking. In 1983, the Nottingham Building Society, commonly abbreviated and referred to as the NBS, launched the first Internet banking service in United Kingdom. This service formed the basis for most of the Internet banking facilities that followed. This facility was not very well developed and restricted the number of transactions and functions that account holders could execute. The facility introduced by Nottingham Building Society is said to have been derived from a system known as Prestel, that is deployed by the postal service department of United Kingdom. The first online banking service in United States was introduced, in October 1994. The service was developed by Stanford Federal Credit Union, which is a financial institution. The online banking services are becoming more and more prevalent due to the well developed systems. Though there are pros and cons of electronic cash technology, it has become a revolution that is enhancing the banking sector. 7

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1.5 VARIOUS FORMS OF E-BANKING:

INTERNET BANKING: Internet Banking lets you handle many banking transactions via your personal computer. For instance, you may use your computer to view your account balance, request transfers between accounts, and pay bills electronically. Internet banking system and method in which a personal computer is connected by a network service provider directly to a host computer system of a bank such that customer service requests can be processed automatically without need for intervention by customer service representatives. The system is capable of distinguishing between those customer service requests which are capable of automated fulfillment and those requests which require handling by a customer service representative. The system is integrated with the host computer system of the bank so that the remote banking customer can access other automated services of the bank. The method of the invention includes the steps of inputting a customer banking request from among a menu of banking requests at a remote personnel computer; transmitting the banking requests to a host computer over a network; receiving the request at the host computer; identifying the type of customer banking request received; automatic logging of the service request, comparing the received request to a stored table of request types, each of the request types having an attribute to indicate whether the request type is capable of being fulfilled by a customer service representative or by an automated system; and, depending upon the attribute, directing the request either to a queue for handling by a customer service representative or to a queue for processing by an automated system. AUTOMATED TELLER MACHINES (ATM): 8

E-BANKING An unattended electronic machine in a public place, connected to a data system and related equipment and activated by a bank customer to obtain cash withdrawals and other banking services. Also called automatic teller machine, cash machine; Also called money machine. An automated teller machine or automatic teller machine (ATM) is an electronic computerized telecommunications device that allows a financial institution's customers to directly use a secure method of communication to access their bank accounts, order or make cash withdrawals (or cash advances using a credit card) and check their account balances without the need for a human bank teller (or cashier in the UK). Many ATMs also allow people to deposit cash or cheques, transfer money between their bank accounts, top up their mobile phones' pre-paid accounts or even buy postage stamps. On most modern ATMs, the customer identifies him or herself by inserting a plastic card with a magnetic stripe or a plastic smartcard with a chip, that contains his or her account number. The customer then verifies their identity by entering a passcode, often referred to as a PIN (Personal Identification Number) of four or more digits. Upon successful entry of the PIN, the customer may perform a transaction. If the number is entered incorrectly several times in a row (usually three attempts per card insertion), some ATMs will attempt retain the card as a security precaution to prevent an unauthorised user from discovering the PIN by guesswork. Captured cards are often destroyed if the ATM owner is not the card issuing bank, as non-customer's identities cannot be reliably confirmed. The Indian market today has approximately more than 17,000 ATMs.

TELE BANKING:

E-BANKING Undertaking a host of banking related services including financial transactions from the convenience of customers chosen place anywhere across the GLOBE and any time of date and night has now been made possible by introducing on-line Telebanking services. By dialing the given Telebanking number through a landline or a mobile from anywhere, the customer can access his account and by following the user-friendly menu, entire banking can be done through Interactive Voice Response (IVR) system. With sufficient numbers of hunting lines made available, customer call will hardly fail. The system is bi-lingual and has following facilities offered Automatic balance voice out for the default account. Balance inquiry and transaction inquiry in all Inquiry of all term deposit account Statement of account by Fax, e-mail or ordinary mail. Cheque book request Stop payment which is on-line and instantaneous Transfer of funds with CBS which is automatic and instantaneous Utility Bill Payments Renewal of term deposit which is automatic and instantaneous Voice out of last five transactions.

SMART CARD:

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E-BANKING A smart card usually contains an embedded 8-bit microprocessor (a kind of computer chip). The microprocessor is under a contact pad on one side of the card. Think of the microprocessor as replacing the usual magnetic stripe present on a credit card or debit card. The microprocessor on the smart card is there for security. The host computer and card reader actually "talk" to the microprocessor. The microprocessor enforces access to the data on the card. The chips in these cards are capable of many kinds of transactions. For example, a person could make purchases from their credit account, debit account or from a stored account value that's reload able. The enhanced memory and processing capacity of the smart card is many times that of traditional magnetic-stripe cards and can accommodate several different applications on a single card. It can also hold identification information, which means no more shuffling through cards in the wallet to find the right one -- the Smart Card will be the only one needed.

Smart cards can also be used with a smart card reader attachment to a personal computer to authenticate a user. Smart cards are much more popular in Europe than in the U.S. In Europe the health insurance and banking industries use smart cards extensively. Every German citizen has a smart card for health insurance. Even though smart cards have been around in their modern form for at least a decade, they are just starting to take off in the U.S. 11

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DEBIT CARD: Debit cards are also known as check cards. Debit cards look like credit cards or ATM (automated teller machine) cards, but operate like cash or a personal check. Debit cards are different from credit cards. While a credit card is a way to "pay later," a debit card is a way to "pay now." When you use a debit card, your money is quickly deducted from your checking or savings account.

Debit cards are accepted at many locations, including grocery stores, retail stores, gasoline stations, and restaurants. You can use your card anywhere merchants display your card's brand name or logo. They offer an alternative to carrying a checkbook or cash.

E-CHEQUE:

An e-Cheque is the electronic version or representation of paper cheque. 12

E-BANKING The Information and Legal Framework on the E-Cheque is the same as that of the paper cheques. It can now be used in place of paper cheques to do any and all remote transactions.

An E-cheque work the same way a cheque does, the cheque writer "writes" the e-Cheque using one of many types of electronic devices and "gives" the e-Cheque to the payee electronically. The payee "deposits" the Electronic Cheque receives credit, and the payee's bank "clears" the e-Cheque to the paying bank. The paying bank validates the e-Cheque and then "charges" the check writer's account for the check

OTHER FORMS OF ELECTRONIC BANKING Direct Deposit Electronic Bill Payment Electronic Check Conversion Cash Value Stored, Etc.

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CHAPTER 2 E-BANKING SERVICES OF STATE BANK OF INDIA

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2.1 State Bank of India: An Overview

The evolution of State Bank of India can be traced back to the first decade of the 19th century. It began with the establishment of the Bank of Calcutta in Calcutta, on 2 June 1806. The bank was redesigned as the Bank of Bengal, three years later, on 2 January 1809. It was the first ever jointstock bank of the British India, established under the sponsorship of the Government of Bengal. Subsequently, the Bank of Bombay (established on 15 April 1840) and the Bank of Madras (established on 1 July 1843) followed the Bank of Bengal. These three banks dominated the modern banking scenario in India, until when they were amalgamated to form the Imperial Bank of India, on 27 January 1921. An important turning point in the history of State Bank of India is the launch of the first Five Year Plan of independent India, in 1951. The Plan aimed at serving the Indian economy in 15

E-BANKING general and the rural sector of the country, in particular. Until the Plan, the commercial banks of the country, including the Imperial Bank of India, confined their services to the urban sector. Moreover, they were not equipped to respond to the growing needs of the economic revival taking shape in the rural areas of the country. Therefore, in order to serve the economy as a whole and rural sector in particular, the All India Rural Credit Survey Committee recommended the formation of a state-partnered and state-sponsored bank. The All India Rural Credit Survey Committee proposed the take over of the Imperial Bank of India, and integrating with it, the former state-owned or state-associate banks. Subsequently, an Act was passed in the Parliament of India in May 1955. As a result, the State Bank of India (SBI) was established on 1 July 1955. This resulted in making the State Bank of India more powerful, because as much as a quarter of the resources of the Indian banking system were controlled directly by the State. Later on, the State Bank of India (Subsidiary Banks) Act was passed in 1959. The Act enabled the State Bank of India to make the eight former Stateassociated banks as its subsidiaries. The State Bank of India emerged as a pacesetter, with its operations carried out by the 480 offices comprising branches, sub offices and three Local Head Offices, inherited from the Imperial Bank. Instead of serving as mere repositories of the community's savings and lending to creditworthy parties, the State Bank of India catered to the needs of the customers, by banking purposefully. The bank served the heterogeneous financial needs of the planned economic development. Branches The corporate center of SBI is located in Mumbai. In order to cater to different functions, there are several other establishments in and outside Mumbai, apart from the corporate center. The bank boasts of having as many as 14 local head offices and 57 Zonal Offices, located at major cities throughout India. It is recorded that SBI has about 10000 branches, well networked to cater to its customers throughout India. ATM Services SBI provides easy access to money to its customers through more than 8500 ATMs in India. The Bank also facilitates the free transaction of money at the ATMs of State Bank Group, which includes the ATMs of State Bank of India as well as the Associate Banks State Bank of Bikaner & Jaipur, State Bank of Hyderabad, State Bank of Indore, etc. You may also transact money through SBI Commercial and International Bank Ltd by using the State Bank ATM-cumDebit (Cash Plus) card. Subsidiaries The State Bank Group includes a network of eight banking subsidiaries and several non-banking subsidiaries. Through the establishments, it offers various services including merchant banking services, fund management, factoring services, primary dealership in government securities, credit cards and insurance. 16

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The eight banking subsidiaries are: State Bank of Bikaner and Jaipur (SBBJ) State Bank of Hyderabad (SBH) State Bank of India (SBI) State Bank of Indore (SBIR) State Bank of Mysore (SBM) State Bank of Patiala (SBP) State Bank of Saurashtra (SBS) State Bank of Travancore (SBT)

2.2 Internet banking at State Bank of India

Where SBI was? In early 1990s more than 7000 branches were using traditional manual procedures. These manual procedures were inherited from the Imperial Bank. Traditional procedures were evolved over decades Very few changes were brought in those procedures as per the need of time. In that time, mainframe or mini computers were used for MIS, RECONCILLATION & FUND SETTLEMENT PROCESS, or we can say that for backhand operations purpose.

Changes brought in Information Technology by SBI: In the next decade internet facility was provided for individuals 17

E-BANKING All SBI branches were connected and ATMS were launch 2001 - KMPG appointed consultant for preparing IT Plan for the Bank. Later on Core banking proposed by the IT consultancy company. 2002 All branches computerized but on decentralized systems, there the initiative of core banking took place 2008- more than 6500 branches (95% of business) on Core Banking Solution (CBS) Internet Banking facility for Corporate customers were also launched in early 2008 More Interfaces developed with e-Commerce & other sites through alternate channels like ATM & Online Banking All Foreign Offices were brought on Centralized Solution Large network is playing the role of backbone for connectivity across the country Multiple Service Providers are providing the links BSNL, MTNL, Reliance, Tata & reliance which are making the system errorless and provide high speed. Multiple Technologies to support the networking infrastructure Leased lines, Dial-up, CDMA & VSAT

2.3 Services provided by SBI internet banking

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Online SBI (www.onlinesbi.com)

State Bank of India is Indias largest bank with a branch network of over 11000 branches and 6 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. OnlineSBI is the Internet banking portal for State Bank of India. The portal provides anywhere, anytime, online access to accounts for State Banks 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 11,000 branches across India.

RETAIL BANKING: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 the VISA Money Transfer, RTGS/NEFT feature Generate account statements Setup Standing Instructions Configure profile settings Use eTax for online tax payment Use ePay for automatic bill payments Interface with merchants for railway and airline reservations Avail DEMAT and IPO services

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CORPORATE BANKING:The OnlineSBI corporate banking application provides features to administer and manage corporate accounts online. The corporate module provides roles such as Regulator, Admin, Uploader, Transaction Maker, Authorizer, and Auditor. These roles have access to the 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, 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 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 Internet Bank transactions for incoming RTGS/NEFT Transactions Internet banking transactions for SBI and associate banks Debit facility where suppliers can directly debit their customers account through internet banking

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2.4 PRODUCTS AND SERVICES: E-Ticketing SBI E-Tax Bill Payment RTGS/NEFT E-Payment Fund Transfer Third Party Transfer Demand Draft Cheque Book Request Account Opening Request Account Statement Transaction Enquiry Demat Account Statement Donation E-Ticketing

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with your credentials and go to Payment and transfer and click on make donation link.After selecting the debit account select the religious/charitable institution whom you want to offer donation. After successful payment you can print an E-receipt for the donation made. 1) E-TICKETING :-

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 there at 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

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E-BANKING 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.

1)

SBI E-TAX:24

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You can pay your taxes online through SBI E-Tax. This facility enables you to pay TDS, Income tax, Indirect tax, Corporation tax, Wealth tax, Estate Duty and Fringe Benefits tax. Click the eTax link in the home page. You are displayed a page with two links Direct Tax and Indirect Tax.

Click the Direct Tax link. You will be redirected to the NSDL site where you can select an online challan based on the tax you wish to pay. Provide the PAN, name and address, assessment year, nature of payment and bank name. On selecting the bank name as SBI and submitting the form, you will be redirected to the Internet Banking site. After submitting the respective ID and password, you can select your account for making payment of taxes. After payment is successful you can print the E-Receipt for the payment. The E-receipt can be printed at a later date also and the same can be retrieved from: Enquiries > Find Transactions > Status Enquiries > Click on the respective transaction to print the tax receipt. The Indirect Tax link is used to make Central Excise and Service Tax payments to Central Board of Excise and Customs. The online payment feature facilitates anytime, anywhere payment and an instant E-Receipt is generated once the transaction is complete. The Indirect Tax payment facility is available to Registered Central Excise/Service Tax Assessee who possesses the 15 digit PAN based Assessee Code. You can make CBEC payments using the Indirect Taxes link available in the Payments/Transfers tab. You need to provide your assessee code as registered with CBEC and select the minor heads towards which you intend to pay tax. Select the appropriate tax type and enter the tax amount. Select an account for debiting the total tax amount. You can use any of your transaction accounts to make the payment. If a payment is successful, CBEC provides a link to generate an E-Receipt for the payment. Internet banking customers can pay tax through site to site integration. For government agencies, which are not Internet-enabled, OnlineSBI offers the Government Tax Payment facility. This facility is available as a post login feature in the retail and corporate banking sites of the Online 25

E-BANKING SBI portal. Please note that the cut-off time for OLTAS and CBEC payment is 8 P.M. IST. Any transactions created after the cut off time will be processed after 7 A.M. on the following day. 2) 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

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 http://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 Auto Pay 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.

1)

RTGS/NEFT :26

E-BANKING You can transfer money from your State Bank account to accounts in other banks using the RTGS/NEFT service. The RTGS system facilitates transfer of funds from accounts in one bank to another on a "real time" and on "gross settlement" basis. This system is the fastest possible interbank money transfer facility available through secure banking channels in India. RTGS transaction requests will be sent to RBI immediately during working hours post working hours requests are registered and sent to RBI on next working day. You can also schedule a transaction for a future date. You can transfer an amount of Rs.1 lac and above using RTGS system. National Electronic Funds Transfer (NEFT) facilitates transfer of funds to the credit account with the other participating bank. RBI acts as the service provider and transfers the credit to the other bank's account. NEFT transactions are settled in batches based on the following timings 1. 6 settlements on weekdays - at 09:00, 11:00, 12:00, 13:00, 15:00 and 17:00 hrs. 2. 3 settlements on Saturdays - at 09:00, 11:00 and 12:00 hrs. Please note that all the above timings are based on Indian Standard Time (IST) only. In order to transfer the funds to an account with other bank, kindly ensure that the bank branch of the beneficiary is covered under the RGTS/NEFT payment system. It is recommended that you choose the Bank/ Branch from the drop down option provided under the link "Add Interbank beneficiary". Please exercise care to provide the correct account number and name of the beneficiary.

1)

E-Payment :-

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You can pay your insurance premium, mobile phone bills and also you can purchase mutual fund units by coming from the billers website and selecting state bank of India in the payment option. LIC PREMIUM: For paying premium of LIC policy logon to www.licindia.com and register your policy details. When the premium is due select State Bank of India in the make payment option. SBI Mutual FUND: You can invest in the SBI Mutual Fund schemes online. Logon to www.sbimf.com and select the scheme in which you want to make investment in the payment option select State Bank of India. CCAVENUES: Enjoy shopping at the CCAvenue Shopping Mall and purchase from a wide variety of products and services through CCAvenue Certified Vendors. Make payments for your purchases using your Internet enabled SBI accounts.

2)

Fund Transfer :-

The Funds Transfer facility enables you to transfer funds within your accounts in the same branch or other branches. You can transfer aggregating Rs.1 lakh per day to own accounts in the same branch and other branches. To make a funds transfer, you should be an active Internet Banking user with transaction rights. Funds transfer to PPF account is restricted to the same branch. Just log on to retail section of the Internet Banking site with your credentials and select the Funds Transfer link under Payments/Transfers tab. You can see all your online debit and credit accounts. Select the debit account from which you wish to transfer funds and the credit account into which the amount is to be credited. Enter the amount and remarks. The remarks will be 28

E-BANKING displayed in your accounts statement for this transaction. You will be displayed the last five funds transfer operations on your accounts. On confirming the transaction, you will be displayed a confirmation page with the details of the transaction and the option to submit or cancel the funds transfer request. A reference number will be generated for your record.

3)

Third Party Transfer :-

You can transfer funds to your trusted third parties by adding them as third party accounts. The beneficiary account should be any branch SBI. Transfer is instant. You can do any number of Transactions in a day for amount aggregating Rs.1lakh. To transfer funds to third party having account in SBI, you need to add and approve a third party, you need to register your mobile number in personal details link under profile section. You will receive a One Time SMS password on your mobile phone to approve a third party. If you do not have a mobile number, third party approval will be handled by your branch. Only after approval of third party, you will be able to transfer funds to the third party. You can set limits for third party transactions made from your accounts or even set limits for individual third parties.

4)

Demand Draft :-

The Internet Banking application enables you to register demand drafts requests online. You can get a demand draft from any of your Accounts (Savings Bank, Current Account, Cash Credit or Overdraft). You can set limits for demand drafts issued from your accounts or use the bank specified limit for demand drafts. You can opt to collect the draft in person at your branch, quoting a reference to the transaction. A printed advice can also be obtained from the site for your record. Alternatively, you may request the branch to courier it to your registered address, and the courier charges will be recovered from you. 29

E-BANKING If you have any queries, kindly approach your branch, quoting the reference number generated for the request.

5)

Cheque Book Request :-

You can request for a cheque book online. Cheque book can be requested for any of your Savings, Current, Cash Credit, and Over Draft accounts. You can opt for cheque books with 25, 50 or 100 cheque leaves. You can either collect it from branch or request your branch to send it by post or courier. You can opt to get the cheque book delivered at your registered address or you can provide an alternate address. Cheque books will be dispatched within 3 working days from the date of request. Just log on to retail section of the Internet Banking site with your credentials and select the Cheque Book link under Requests tab. You can view all your transaction accounts. Select the account for which you require a cheque book; enter the number of cheque leaves required and the mode of delivery. Then, submit the same.

6) Account Opening Request:OnlineSBI enables you to open a new account online. You can apply for a new account only in branches where you already have accounts. You should have an INB-enabled account with transaction right in the branch. Funds in an existing account are used to open the new account. You can open Savings, Current, Term Deposit and Recurring Deposit accounts of Residents, NRO and NRE types. Just log on to retail section of the Internet Banking site with your credentials and select the New Account link under Requests tab. You can see all types of accounts. Select the account and account type you wish to open and submit the same. Then, you need to select the branch and 30

E-BANKING enter the initial amount to open the account. You can select any of your accounts for debiting the initial amount. Then, submit the transaction. Your new account opening request will be processed by the branch.

7) Account Statement :The Internet Banking application can generate an online, downloadable account statement for any of your accounts for any date range and for any account mapped to your username. The statement includes the transaction details, opening, closing and accumulated balance in the account. You can generate the online account statement for any date range or for any month and year. The account statement can be viewed online, printed or downloaded as an Excel or PDF file. You also have the option to select the number of records displayed in each page of the statement. The options are 25, 50, 75, 100 and ALL.

8) Transaction Enquiry :OnlineSBI provides features to enquire status of online transactions. You can view and verify transaction details and the current status of transactions. Your VISA transactions can also be viewed separately. Just log on to retail section of the Internet Banking site with your credentials and select the Status Enquiry link under the Enquiries tab. You will be displayed all online transactions you have performed. To view details of individual transactions, you need to click the Transaction Reference number link. You are displayed the debit and credit account details, transaction amount, narration and transaction status

9) Demat Account Statement :31

E-BANKING OnlineSBI enables you to view Demat account statement and maintain such accounts. The bank acts as your depository participant. In the third party site, you can mark a lien on your Demat accounts and use the funds to trade on stock using funds in your SBI savings account. You can view Demat account details, and generate the following statements: statement of holding, statement of transactions, statement of billing.

10) Donation:You can make donation to religious and charitable institution by using Internet Banking of SBI. Simply log on to http://www.onlinesbi.com/ with your credentials and go to Payment and transfer and click on make donation link. After selecting the debit account select the religious/charitable institution whom you want to offer donation. After successful payment you can print an E-receipt for the donation made.

2.5 SWOT analysis of SBIs internet banking

Strengths: Greater reach to customers Quicker time to market Ability to introduce new products and services quickly and successfully Ability to understand its customers needs Customers are given access to information easily across any location Greater customer loyalty Easy online application for all accounts, including personal loans and mortgage 24 hours account access Quality customer service with personal attention

Weaknesses:32

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Lack of awareness among the existing customers regarding internet banking Obsolesce of technology take place very soon specially in terms of security on internet. Procedure for applying for id and password for using services related to internet banking takes time. Lack of knowledge is found regarding internet banking in employees of SBI Implementation of newer technology is little bit complicated Employees needs training to obtain knowledge regarding I-banking

Opportunities: Approximately 95% of customers are not using internet banking. Core competency can be achieved in terms of banking if focus is made on awareness of internet banking Can become 1st virtual bank of India. Concentration of various services should be made using internet banking

Threats: Maintaining Business Edge over competitors in the context of sameness in IT infrastructure Multiple vendor support is necessary for working of highly complex technology Maintaining secured IT infrastructure for business operations Alternative must be there in case of failure of system

2.6 Recommendations and Suggestions

Training and awareness among employees:-

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E-BANKING It is recommended that State Bank of India should conduct various training programmes for the employees, so that they will get aware with the terms of internet banking. After such programmes they can create awareness amongst the consumers.

Exchange of information on threats and vulnerabilities at appropriate forums:There should be an open end discussion on the threats and vulnerabilities coming across the functioning of internet banking work by the employees in the various official forums and meets.

Build an optimal operating model by understanding which activities to retain collaborate and outsource:There should be clear sight of operations which needs to outsource to other companies, this will lead to ease in work for employees. Outsourcing operations like, cyber security department, building IT structure on internet.

Bank should Create and sustain customer, investor and regulator confidence by adopting international accounting standards :Adopting international standards adds some more star to the glory of any company, SBI should impose such standards when it comes to internet banking or virtual banking, this will enhance the goodwill of SBI among regulator, customers and invertors. 34

E-BANKING

Bank should anticipate and get prepared for regulatory changes:Laws regarding IT or cyber laws get change as per the need. SBI should anticipate such kind of changes and get loaded with various plans and actions.

Focus on identifying core competence:SBI possess some unique characteristics or positive points in it and with the help of them it can become a leader in market. Bank should identify such points and concentrate to flourish them more. This can be done with the help of internet banking, as internet banking of SBI is getting largely accepted by customers.

Increasing usage of mobile phones is going to revolutionize the banking culture in near future:Mobile banking is also getting popular in the segment of internet banking thus this can add some more steps to progress for SBI. Bank is into the mobile banking but it is providing limited features.

More stress should be given on security concern on internet:-

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E-BANKING There are some people who are into unethical practices of hacking of accounts of customers. This is nothing but the breach in the security of the SBI on internet. There should be some measures in order to prevent such practices. IT structure should be unbreakable.

CHAPTER 3 E-BANKING SERVICES OF : ICICI BANK

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3.1 ICICI BANK : AN OVERVIEW

ICICI Bank is India's second-largest bank with total assets of Rs. 3,446.58 billion (US$ 79 billion) at March 31, 2007 and profit after tax of Rs. 31.10 billion for fiscal 2007. ICICI Bank is the most valuable bank in India in terms of market capitalization and is ranked third amongst all the companies listed on the Indian stock exchanges in terms of free float market capitalisation. The Bank has a network of about 950 branches and 3,300 ATMs in India and presence in 17 countries. ICICI Bank offers a wide range of banking products and financial services to corporate and retail customers through a variety of delivery channels and through its specialised 37

E-BANKING subsidiaries and affiliates in the areas of investment banking, life and non-life insurance, venture capital and asset management. The Bank currently has subsidiaries in the United Kingdom, Russia and Canada, branches in Singapore, Bahrain, Hong Kong, Sri Lanka and Dubai International Finance Centre and representative offices in the United States, United Arab Emirates, China, South Africa, Bangladesh, Thailand, Malaysia and Indonesia. Their UK subsidiary has established a branch in Belgium. ICICI Bank's equity shares are listed in India on Bombay Stock Exchange and the National Stock Exchange of India Limited and its American Depositary Receipts (ADRs) are listed on the New York Stock Exchange (NYSE).

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E-BANKING ICICI Bank was originally promoted in 1994 by ICICI Limited, an Indian financial institution, and was its wholly-owned subsidiary. In 1955, ICICI was formed by the initiative of the World Bank, the Government of India and representatives of Indian industry. The principal objective was to create a development financial institution for providing medium-term and long-term project financing to Indian businesses. In the 1990s, ICICI transformed its business from a development financial institution offering only project finance to a diversified financial services group offering a wide variety of products and services, both directly and through a number of subsidiaries and affiliates like ICICI Bank. In 1999, ICICI become the first Indian company and the first bank or financial institution from non-Japan Asia to be listed on the NYSE. After consideration of various corporate structuring alternatives in the context of the emerging competitive scenario in the Indian banking industry, and the move towards universal banking, the managements of ICICI and ICICI Bank formed the view that the merger of ICICI with ICICI Bank would be the optimal strategic alternative for both entities, and would create the optimal legal structure for the ICICI group's universal banking strategy. In October 2001, the Boards of Directors of ICICI and ICICI Bank approved the merger of ICICI and two of its wholly-owned retail finance subsidiaries, ICICI Personal Financial Services Limited and ICICI Capital Services Limited, with ICICI Bank. The merger was approved by shareholders of ICICI and ICICI Bank in January 2002, by the High Court of Gujarat at Ahmedabad in March 2002, and by the High Court of Judicature at Mumbai and the Reserve Bank of India in April 2002. Consequent to the merger, the ICICI group's financing and banking operations, both wholesale and retail, have been integrated in a single entity.

3.2 What makes I.CI.C.I. different from other banks? (Why I.C.I.C.I.?)

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E-BANKING ICICI is one of the leading private sector banks in India, which combines financial strength with a reputation for innovation and a universal culture that embraces change. On March 31, 2002 ICICI formally merged with ICICI bank and emerged as India's first Universal Bank. ICICI bank offers a wide spectrum of domestic and international banking services to facilitate trade, investment, cross border business, treasury and foreign exchange services. ICICI bank has been quick to realize that E- banking has changed from a somewhat experimental delivery vehicle into an increasingly mainstream one for delivery of broad spectrum of banking products and services. Basic E- banking services are rapidly changing from competitive differentiator to competitive necessity. The group has leveraged on a number of tie-ups to come up with its various offering: For its Internet banking offering the ICICI bank uses Infinity from Infosys, For its credit card business its uses Vision Plus from Pay Sys, USA, For WAP services the banks has tie-up with cellular service providers Orange and Airtel.

The Bank has been offering phone banking free of charge and was first to launch an Internet Banking service in the country named Infinity. Infinity now provides a host of online banking solutions to retail as well as corporate customers. ICICI's constant endeavor in providing more value to the customers has resulted in Infinity being the front-runner amongst online banking offerings in the country. Also, in keeping with the customers need for increased security, Corporate Infinity now provides multiple levels of authentication besides user ID/ password and includes security tokens. ICICI provides custom tailored solution that can support even the most complex business strategy. ICICI is now moving all its operations into the era of 'virtual integration'. Not only has this drastically reduced costs, but it has also increased and improved its services to customers.

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3.3 E-banking Services Provided By ICICI Bank

ICICI Bank has a huge range of products to offer to its customers. The chart below shows the different types of e-business services provided by the bank. 41

E-BANKING

ICICI BANK

Online Banking Services

Tele Banking

ATM

Cards

Monitory Services

Other Services

Phone Banking

Mobile Banking

Credit Card Debit Card Travel Card

1. Bill Payment 2. Smart Money Order 3. Card-2-Card Fund Transfer 4. E Cheques

1. Shopping 2. Prepaid Mobile Recharge 3. Ticket Booking

Checking Services 1. Bank A/c 2. Credit card 3. Demat

1. Mobile Banking Fund Transfer

Prepaid Card Purchase Card Business Cards

I.Online Banking Services

1. Monitory Services

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E-BANKING a. Bill Payment: ICICI Bank Internet Banking is the most convenient channel to manage and pay bills anytime, anywhere. No more hassles of writing cheques or standing in queues to pay bills. Whats more bill payment on ICICIBank.com is free for all customers. ICICI Bank has tied up with major organizations across the country to facilitate payment of bills for Utility Companies (Electricity and Telephone) Bills, ICICI Bank credit card, Mobile Phone and Insurance Premium bills. For customers ease the bank has enabled the billers in following two modes: Presentment Type Billers: : For these billers, the bill will be presented in their Internet Banking Account. One needs to login to www.icicibank.com with their Internet Banking User ID and login Password to view and pay their bill. The Customers can also choose to receive email alerts upon presentment of their bills online. Payment Type Billers: For these billers, one can register and pay any amount immediately. To pay bills, whats needed to be done, is complete a simple one time registration for each biller. One can also set up standing instructions online to pay their recurring bills, automatically. With standing instructions facility on ICICIBank.com one no longer needs to remember the due dates of bills. Setting up a one-time standing instruction will ensure that customer don't miss out on his bill payments due to lack of time. Setting up a standing instruction online is very simple, when scheduling a bill payment, just mention the periodic frequency and the number of times for which the payment is to be made and the standing instruction will get created automatically. The Customer may login to ICICIBank.com to modify or cancel standing instructions set by him as and when required.

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E-BANKING a. Smart Money Order ICICI Bank has recently announced the launch of Smart Money Order, in partnership with India Post (The Department of Posts, Ministry of Communication and Information Technology, Government of India). Smart Money Order is a unique service that allows people to send a money order anytime and to any destination in India. The salient features of the facility are as under: All Retail Internet Banking Customers can use this facility. Money is delivered at the receiver's doorstep. Easiest way to send money to near and dear ones anywhere in India. Receiver need not hold a bank account. No need to handle physical cash. No need to visit the Post Office to send a money order. Service is available 24 X 7 X 365.

Sending a Smart Money Order is very simple. Just login to ICICIBank.com and give the address of the person (receiver) and amount of money to be sent. The senders can then sit back & relax while his near & dear ones receive money conveniently at their door-step.

a. Card to Card Funds Transfer Card to Card Funds Transfer is a revolutionary service that allows people to transfer money from their Bank account to any other Visa Debit or Credit Card, anytime, anywhere in India. Forget cumbersome and time-consuming DDs, cheques and pay orders. Transact from the comfort of your home or office through ICICI Bank Internet Banking. Send money to over 27 Million Visa Cardholders across 150 cities in India. Send money to any Visa Debit or Credit Card issued in India Its one of the easiest way to transfer money. It doesn't get simpler than this.

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E-BANKING a. Funds Transfer(e Cheques) This facility makes, transferring funds from ones ICICI Bank Account very simple. There are various options provided online for transferring funds. One can choose to: Transfer Funds to his own linked ICICI Bank Accounts Transfer Funds to other ICICI Bank accounts, anywhere in India Transfer Funds to specified Non-ICICI Bank accounts With Funds Transfer on ICICIBank.com, a customer can: Forget about writing out & sending cheques/ DD's or pay orders to the payee. Free himself from the worry of payment instruments getting lost/misplaced in transit. Transact from the comfort of his home or office through ICICI Bank Internet Banking. Transfer money to any ICICI Bank account, anywhere in India. Transfer money to specified non-ICICI Bank Accounts in over 100 cities across India. ECheques facility on ICICIBank.com is absolutely free of charge! Transfer Funds to ones own linked ICICI Bank Accounts A customer can transfer funds instantaneously between any of his ICICI Bank accounts that are linked to his Internet Banking User ID. Transfer Funds to other ICICI Bank accounts, anywhere in India Simple login to ICICIBank.com and complete a one-time registration & confirmation of the ICICI Bank Account number to which one wishes to transfer funds. One may thereafter transfer funds instantly to the registered account number. Transfer Funds to specified Non-ICICI Bank accounts One can now transfer funds to other Bank Accounts in over 100 cities across India. Just login to ICICIBank.com and complete a one-time registration & confirmation of the Third Party Bank Account and transfer funds anytime whenever required. The Fund Transfer requested usually takes 3 working days. Please note that the actual time taken to credit the account depends on the time taken by the Payee's bank to process the payment. The money will reach Payee's bank within the time stipulated by Reserve Bank Of India. 45

E-BANKING All transactions on ICICIBank.com are highly safe & secure. Fund Transfer transactions need to be authenticated at the time of making the transfer by entering transaction password and/or any 3 random digits of ATM/Debit Card.

2. Other Online Services a. Shopping ICICI Bank has tied up with major shopping websites to facilitate online shopping for all its Internet Banking Customers. Choose products online and pay conveniently through ICICI Bank Internet Banking Service. Online Shopping Process ICICI banks esteemed partners are

Railway ticket booking was never so easy. One can Book railway ticket through www.irctc.co.in using ICICI Bank Internet Banking. IRCTC will deliver ticket to delivery address mentioned.

A Customer Shop for anything with just a click of the mouse. He can select the product he wants and pay for it with ICICIBank.com Internet Banking Service.

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E-BANKING

One can Bid and Buy products across 1500 categories and be rest assured with safe and secure payment through ICICIBank.com.

b. Prepaid Mobile Recharge Service One can recharge his Prepaid Mobile from the comfort of his home or office, anytime, anywhere with Prepaid Mobile Recharge Facility on ICICIBank.com. Now one no longer needs to rush to the vendor for buying recharge codes, every time ones talk time runs out. All he needs to do is just top-up his prepaid mobile card by logging in to Internet Banking on ICICIBank.com. What's more, this service is absolutely free for all ICICI Bank Account holders. How does it work? To avail this facility, one needs to follow the steps given below: Login to www.icicibank.com with your Internet Banking User id and Password. Go to Banking (or) Bill Pay section. Click on the Prepaid Mobile Recharge option. Select the Operator Name & Circle, enter Mobile Number and Amount for recharge. Enter Transaction Password to complete the transaction. The request will be completed in a few minutes

c. Ticket Booking

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E-BANKING Book your Rail and Air Tickets Online With ICICI Bank one need not visit booking reservation centers any more. Customers can now buy their train tickets online and pay using the banks Internet Banking Facility. For this ICICI Bank has tied up with IRCTC. The salient features of the facility are as under: All internet banking customers can use the facility. For booking tickets, please visit www.irctc.co.in (for railway tickets). Select your journey date and other details On payment option, select ICICI Bank for making the payment. You will be redirected to secured login page of ICICI Bank. After logging on to the site you will be displayed payment amount, and Payee Details. You will be required to confirm the transaction by entering transaction password. On successful authentication, your Bank Account will be immediately debited and payment confirmation number will be provided. Within some time you will also receive online confirmation from IRCTC website. Tickets are booked immediately and PNR number is provided online at Partner's website. Cancellation of tickets: No cash will be paid at the time of cancellation. Your bank account will be credited with the ticket amount less cancellation charges as levied by IRCTC. ICICI Bank does not levy any cancellation charges.

The total value of the tickets will be debited from the Bank account, which you have registered for Mobile Banking. ICICI Bank will send a SMS to you about successful debit. Once IRCTC has booked the tickets they will also send a SMS to you intimating you of the same along with the PNR number. The tickets will be delivered at the address that you have mentioned on IRCTC's website while registering with IRCTC. 48

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II ATM
ICICI Bank's 24 Hour ATM network is one of the largest and most widespread ATM Network in India. Our ATMs are located in commercial areas, residential localities, major petrol pumps, airports, near railway stations and other places which are conveniently accessible to our customers. ICICI Bank ATMs features user-friendly graphic screens with easy to follow instructions. ICICI has introduced ATMs which interact with customers in their local language for increased convenience. Following are the features available on their ATMs, which can be accessed from anywhere at anytime. Cash Withdrawal: Withdraw upto Rs. 25,000/- per day from your account. Fast Cash option provides the facility of withdrawing prefixed amounts. Ultra Fast Cash option allows you to withdraw Rs.3000/- in one shot. Balance Enquiry : Know your ledger balance and available balance Mini Statement: Get a printout of your last 8 transactions and your current balance. Deposit Cash / Cheques: Available at all full function ATMs, Customers can deposit both cash and cheques. Cash deposited in ATMs will be credited to the account on the same day (provided cash is deposited before the clearing) and cheques are sent for clearing on the next working day. Funds Transfer: Transfer funds from one account to another linked account in the same branch. PIN Change: Change the Personal Identification Number (PIN) of ATM or Debit card. Payments: The latest feature of our ATMs, this functionality can be used for payment of bills, making donations to temples / trusts, buying internet packs, airtime recharges for prepaid mobile phones and much more... Others: Request for a checkbook from our ATMs and our concerned branch will dispatch it such that it reaches you within 10 working days. 49

E-BANKING Charges: There is no charge levied on ICICI Bank customers for transacting on ICICI Bank's ATMs. However for customers not maintaining the minimum quarterly average balance in their savings account, first 6 transactions in the quarter will be free and Rs. 25 per transaction will be charged thereafter.

III CARDS IN ICICI BANK

ICICI Bank offers a variety of cards to suit your different transactional needs. Our range includes Credit Cards, Debit Cards and Prepaid cards. These cards offer you convenience for your financial transactions like cash withdrawal, shopping and travel. These cards are widely accepted both in India and abroad. Following are the different types of cards offered by ICICI Bank 1. Credit Card ICICI Bank Credit Cards gives the facility of cash, convenience and a range of benefits, anywhere in the world. These benefits range from life time free cards, Insurance benefits, global emergency assistance service, discounts, utility payments, travel discounts and much more. There are different types of credit cards available in icici bank. Therefore Customers can select the required card according to their needs. 2. Debit Card The ICICI Bank Debit Card is a revolutionary form of cash that allows customers to access their bank account around the clock, around the world. The ICICI Bank Debit Card can be used for shopping at more than 3.5 Lakh merchants in India and 24 million merchants worldwide. 3. Travel card Presenting ICICI Bank Travel Card. The Hassle Free way to Travel the world. Traveling with US Dollar, Euro, Pound Sterling or Swiss Francs; Looking for security and convenience; take 50

E-BANKING ICICI Bank Travel Card. Issued in duplicate. Offers the Pin based security. Has the convenience of usage of Credit or Debit card. The ICICI Bank Travel Card can be used to transact over the Internet 4. Prepaid Card: ICICI Bank brings to its customers a complete bouquet of pre-paid cards providing payment solutions at your fingertips. ICICI Bank pre-paid cards are a safe & convenient way for associate payments, disbursements, gifting & small ticket transactions. Pre-paid cards are available on a VISA platform thus providing accessibility to over 3.5 Lakh merchant establishments & cash withdrawal from all VISA ATMs in India. 5. Purchase Card The ICICI Bank Purchase Card is a card based payment solution that streamlines and effectively controls procurement processes of corporates. Purchase card can be used for expenses like Travel & Entertainment (T&E), Telecommunications, MRO, Office products, Professional services & Utility payments. A credit limit is assigned to the corporate on the card and the corporate can thereafter use the card for making payments to all vendors & suppliers. The corporate gets a credit period of up to 50 days and can thereafter repay ICICI Bank as per the billing due date. And ICICI Bank Purchase card can be used on any VISA or MasterCard Network. Purchase card can be used for all Indirect Expenses that an organization would be incurring. These expenses can be routed through the Purchase Card for extracting maximum benefits from the solution. 6. Business Card

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E-BANKING The ICICI Bank Business Card is aimed at SMEs as an enabler for their business. The Business card is a smart alternative to cheques, cash, and personal credit cards. With its purchasing convenience, cost savings, available credit, and detailed reporting facilities, the ICICI Bank Business Credit card offers what your business needs to stay on top

IV.Tele Banking
1. Phone banking
A user friendly automated service menu offers convenient access to customers account coupled with security as, all their transactions are protected by a Atm Pin - The Personal password to customers Banks & Credit card Account and Tpin for Demat Account. Self Phone Banking (IVR) access Mechanisms are as follows: For Deposits --The customer would need to key-in his ATM/Debit Card Number and its corresponding ATM PIN. For Credit Cards -The customer would need to key-in his 16 digit Card Number and its corresponding ATM PIN. For Demat Account Holders -The customer would need to key-in his 14 Digit Demat Account Number and its TPIN For Bond Account Holders -The customer would need to key in his Bonds holder Number only. What's more...this facility comes totally free of charge! Registration for Phone Banking There is no phone banking registration which needs to be done for Banks /Cards /Bonds it is given to the customer by default.

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1. Mobile Banking
Bank on the move with ICICI Bank Mobile Banking. With ICICI Bank, Banking is no longer what it used to be. ICICI Bank offers Mobile Banking facility to all its Bank, Credit Card, Demat and Loan customers. Checking Services ICICI Bank Mobile Banking can be divided into two broad categories of facilities: Alert facility: ICICI Bank Mobile Banking Alerts facility keeps the customer informed about the significant transactions in his Accounts. It keeps him updated wherever he goes. Request facility: ICICI Bank Mobile Banking Requests facility enables a customer to query for his account balance. a. Bank Account With Mobile Banking customers can remain updated while they are on the move, without even making a phone call or a visit to the Branch. ICICI Bank Mobile Banking for Bank Accounts helps customers keep in track with their bank accounts. b. Credit Card With Mobile Banking one can remain updated while on the move, without even making a phone call or a visit or logging on the Internet. ICICI Bank Mobile Banking for Credit Cards helps one to get all the current and previous details of his credit card transactions 53

E-BANKING

c. Demat With Mobile Banking a customer can remain updated while on the move, without even making a phone call or a visit or logging on the Internet. ICICI Bank Mobile Banking for Demat Accounts helps customers query their demat account information anytime at their convenience Mobile Banking Fund Transfer ICICI Bank has recently announced the launch of Mobile Banking Funds Transfer. Mobile Banking Funds Transfer is a unique service that offers ICICI Bank customers a modern and easy-to-use alternative means of account-to-account funds transfer. The service will allow the customer to transfer funds to another customers account by sending a simple SMS-based instruction. The service is available 24x7x365. The service can be used by customers who have registered themselves for Mobile Banking. Money transfer to payee happens instantly. No need to handle physical cash. Using Mobile Banking Funds Transfer is very easy. One can use SMS or the GPRS channel to send money to the payee. The sender can then sits back and relax while his near and dear ones receive money conveniently anytime anywhere.

3.4 ONLINE SECURITY

While ICICI Bank strives to provide with a secure banking environment, they urge us not to part with the user ID, PINs or passwords and other sensitive account information to anyone. This will preserve the security of account and of our transactions.

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E-BANKING Security Measures ICICI Bank is committed to provide its customers with a secure banking experience. It strives to utilize state-of-the-art technology to protect financial information. It employs a wide range of security features for their website as well as for Internet Banking Services. ICICI Bank employs a range of security features for its Online Banking Service. Firewall (Virtual electronic fence that prevents unauthorized access to the ICICI Bank server); 128 bit Secure Socket Layer; Verisign Digital Certificate; Two levels of passwords for executing Financial Transactions; Secured Funds Transfer & Bill Payment. Technology updates In order to effectively counter the latest security threats, ICICI ensures that their systems are constantly updated to maintain the security of accounts.

3.5 UNIQUE SECURITY FEATURES

Secure Login For logging in into ICICIBank.com account, one needs to use Internet Banking user Id and password. The web page on which we are required to input these details is a secure page. When one logins successfully, the Web browser will establish a secure SSL connection between computer and the Web servers. This allows to communicate with ICICI privately and to conduct online transactions safely.

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E-BANKING Number of Login Attempts In case a person is unable to provide the correct user Id and password, he will not be granted access. After 5 unsuccessful login attempts, his user Id will be blocked automatically by the system. To re-enable Internet Banking User ID, he can call on ICICI 24-Hour Phone banking numbers. Timed Logout ICICI unique security features continue to protect us once we have logged in successfully. To protect our accounts against unauthorized access, their systems are designed to automatically terminate a secure online session if extended inactivity is detected. Hence, if a person login and leave the session inactive for an unduly long period, the session will be terminated. If session terminates automatically, we can login again to continue the activities. In addition, after logging in into ICICIBank.com, one cannot use the Back', Forward' and Refresh' buttons on their browser. If he clicks on any of these buttons, secure session will be logged out automatically. This is done to ensure that no unauthorized entry can be made in his online account during his absence from the computer system. Expiry of User Id Internet banking User ID expires if it is not used for a period of more than one year. However, if one has lost/misplaced his Internet Banking User ID/passwords, it is advisable to inform ICICI and they will disable the same to prevent unauthorized usage. Passwords can also be re-issued upon request.

3.6 Recommendations For End User (Consumer)

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1. Secure PC a. Anti-Virus Software: Install and Update Anti-Virus Software We should always protect the computer by using up-todate anti-virus software that is capable of scanning files and email messages for viruses. This will prevent files from being corrupted or lost and also prevent PC from getting infected with the virus. Anti-virus software protects from Trojan horses. Trojan horses are typically sent to computer systems through email. They are particularly dangerous because they have the potential to allow others to gain control of the computer system remotely, without ones knowledge or consent. These programs can capture and send sensitive information stored on the hard drive to any other person who has gained remote access to computer. A variety of anti-virus software packages are available on the market today. Many of these products install anti-virus updates to computer automatically, as long as we have the update feature enabled. Installing an Anti-Virus software package is simple and will save hours of frustration spent on trying to restore an infected computer system. b. Use a Personal Firewall: Any computer or device connected to the Internet that is not properly protected is vulnerable to a variety of malicious Internet intrusions and attacks. This applies to all cable modem, digital subscribe line (DSL) and dial-up users. The likelihood of a malicious individual entering the computer increases significantly the longer the computer is on and is connected to the Internet. A personal firewall will help protect from intrusion. Firewalls create a barrier between computer and the rest of the Internet. A firewall can be a hardware device, a software application or a combination of the two. Firewalls can prevent malicious attacks and block certain types of data from entering the computer or private network. They can also be set up to alert you if anyone tries to access system. c. Scan computer for spy ware regularly: 57

E-BANKING Spyware and adware are programs that monitor our Internet activity and potentially relay information to a disreputable source. Free spyware removal programs are available on the Internet. Shut down computer or disconnect it from the Internet, when not in use. 1. Change Passwords Periodically: It is recommended that one should change passwords regularly, at least every 30 days or so. To change passwords, login to ICICI Bank.com and go to the 'My Accounts' section, then click on the 'Change Password' option given on top of the screen. 2. Keep Internet Banking Passwords Confidential: It assures that ICICI Bank officials will never ask for Internet Banking Passwords. 3. Take Care to Log Off: Log Off from ICICI Bank.com every time after one has completed his online banking session. Do not close browser. 4. Add ICICI Bank.com to List of Favourite Sites: It is recommend that one can bookmark / add to his favourites the URL of the bank (for example-www.icicibank.com) in order to access information and transact on his account with ICICI Bank. 5. Clear browser's cache: Clear browser's cache and history after each session so that account information is removed, especially if one has used a shared computer to access Internet Banking on ICICIBank.com. 6. Disable the "Auto Complete" function on browser: If one is using Internet Explorer, turn off the 'Auto Complete' function on browser to prevent browser from remembering Passwords. 58

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3.7 Tips For Use When Banking Through The Internet

1. Avoid accessing your Internet Banking account from a cyber cafe or a shared computer. However, if you happen to do so change your passwords from your own computer. 2. Every time you complete your online banking session, log off from ICICIBank.com. Do not just close your browser. 3. To access ICICI Bank's Internet Banking, always type in the correct URL (http://www.icicibank.com/) into your browser window. Never click a link that offers to take you to our website. 4. If your log-in IDs or passwords appear automatically on the sign-in page of a secure website, you should disable the Auto Complete function to increase the security of your information. To disable the Auto Complete function: 1. Open Internet Explorer and click "Tools" > "Internet Options" > "Content". 2. Under "Personal Information", click "Auto Complete. 3. Uncheck "User names and passwords on forms" and click "Clear Passwords". 4. Click "OK". 5. Change your Internet Banking passwords (both log-in password and transaction password) after your first log-in, and thereafter regularly (at least once in a month). 6. Your password should be complex and difficult for others to guess. Use letters, numbers and special characters [such as !,@, #,$, %, ^, &,* (, )] in your passwords. 7. For additional security to financial transactions through Internet Banking, create and maintain different passwords for log-in and for transactions. 8. If you have more than one Internet Banking user ID, use a different password for each of the user IDs. You may also view all your accounts with ICICI Bank under a single user ID by linking your various accounts to your preferred Internet Banking user ID. 9. Never share your Internet Banking passwords with others, even family members. Do not reveal them to anybody, not even to an ICICI Bank employee.

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E-BANKING 10. Always check the last log-in to your Internet Banking account. Log in to ICICIBank.com and see the left hand side of the My Accounts page to view the date and time of your last log-in.

ANNEXTURE

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QUESTIONAIRE
I. REGARDING SBI: 1. What is OnlineSBI? OnlineSBI is the Internet Banking portal of SBI to provide world class online banking services. 2. What is special about Internet banking website for Visually challenged persons? The specially designed website for visually challenged persons, is one step forward to provide 24x7 banking facility to them. Initially this website is equipped with the features like Account summary, Fund transfer within own accounts, Transaction summary & change password facility, any time/anywhere. This dedicated web-site contains the relevant information for the visually challenged customers. 3. What are the prerequisites for accessing this site? You can access this URL (http://www.onlinesbi.com/sbivc.html) from any computer that has internet connectivity. Any screen reading software must be installed on your computer to read the contents of the webpage. For security reasons it is advisable to use headphone during access of this website.

4. How can I access this URL? You need to have an account with State Bank of India. You are required to apply for the Internet banking service with your home branch. Branch will provide you the Pre-printed kit in Braille, containing user name, password and general information for SBI online banking. Now log on to http://www.onlinesbi.com/sbivc.html. At the first time login, you need to go through a simple initialization process. You will be prompted to create your new user id and password.

5. What are the good practices for creating a password? 61

E-BANKING a. Please avoid choosing a password that is generic in nature, guessable or inferable. b. Password should contain at least one digit from 0 to 9, one alphabet from capital A to capital Z , small a to small z and one special character such as at, ampersand, Hash, asterisk & exclamation mark. c. Avoid passwords that can be easily linked to your personal information such as name, date of birth, address, phone or car number. d. It is good practice to commit your password to memory rather than to write it down somewhere. e. For security reasons, keep changing your password at regular intervals. 1. What is deadman's switch? Deadman switch is a special key combination that enables you to lock Internet access to your accounts. When you face a security threat to your financial information during an Internet banking session, you can use the deadman switch to lock your user name. Your username will be deactivated and even you cannot access your accounts through the Internet. 2. What should I do when I face a physical threat while operating my accounts through Internet banking? Immediately press the Alt 0 key combination to lock your username. This is the deadman switch combination and will deactivate your username instantly. Please note that after your username is deactivated, even you cannot login to Internet banking. 3. How long will the user session be active? If you do not perform any operation for 10 minutes after logging into Internet banking, your session will expire. You will be logged out automatically.

I.

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1. What hardware and software do I need to access ICICI Bank

Internet Banking?
We recommend the following: Computer with 500MHz processor or higher 64 MB RAM or higher Internet connection of 28.8 kbps or higher The following operating systems: Windows 98, NT, 2000, XP The following browsers: Microsoft Internet Explorer 5.XX and above 2. What's your role in enhancing security of your online

banking experience?
Always ensure your PC is updated with latest anti-virus and operating system patches. Install personal firewall and anti-spy ware to protect your PC from internet attacks Always change your online banking passwords periodically say every month. Review credit card & bank statements regularly and report any irregularities to the bank. You report any suspicious or fraudulent e-mail/sites to the bank immediately.

1. Can other people view my personal information when I am

using the Internet?

If a secure session is established and the information is encrypted during transmission, then others will not be able to view your information. However, you should be aware that some Web browsers will store information on your computer even after you are finished conducting your online activities, this is called caching. Therefore, you should close your 63

E-BANKING browser once you are finished using the Internet, particularly if you visit secure sites to conduct financial transactions, check account balances or view any other information that you regard as private and confidential. 2. Are email transmissions secured? Email sent over the Internet is generally not secure unless it is encrypted. In reality, most email programs currently do not have this capability. To send us an email securely, we recommend that you do so by using the secure email function provided by some online services like Online Banking. 3. How can I recognize a scam e-mail? Without using additional measures such as a digital signature, it is easy for fraudsters to imitate e-mails. But that doesn't mean you can't recognise scam e-mails. Cyber-criminals often place alarming, enticing or exciting subjects in their e-mails with the hope of tempting you to respond impulsively and divulge the requested information. So, always take your time to read the e-mail carefully. In case of doubt, it is better not to respond. If you do choose to respond, always first check that the mail is genuine by contacting the company that is the apparent sender by telephone, for instance. 4. What is phishing? 'Phishing' refers to the practice of fraudsters 'fishing' for your details in order to find out and misuse sensitive personal and financial information. Criminals may, for instance, make identical copies of existing corporate websites, or send scam e-mails to elicit a response from you and trick you into divulging your personal information.

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DATA ANALYSIS
1. Users of E-BANKING YES NO 70% 30%

2. Users of various banks ICICI SBI HDFC 40% 35% 25%

2. Preference for online bill payment YES NO 60% 40%

3. Preference for online fund transfer YES 75% 65

E-BANKING NO 25%

4. Preferred mode of payment to bank CASH CHEQUE E-BANKING 20% 50% 30%

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FINDINGS
1. You can access your account at any time of the day and are no longer confined to conventional business hours. 2. Online banking is generally faster and more convenient. 3. There are many useful features and services available online besides for the usual transactions. 4. Although online banking is generally secure with modern encryption technology, it is still possible for identity theft or fraud to occur if you fall victim to a phishing site or otherwise have your sensitive account information compromised 5. Some types of services may not be available online or may be more difficult to do. 6. Using online banking effectively requires some basic computer literacy and familiarity with navigating the Internet.

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CONCLUSION
From all of this, we have learnt that information technology has empowered customers and businesses with information needed to make better investment decisions. At the same time, technology is allowing banks to offer new products, operate more efficiently, raise productivity, expand geographically and compete globally. A more efficient, productive banking industry is providing services of greater quality and value.

E-banking has become a necessary survival weapon and is fundamentally changing the banking industry worldwide. Today, the click of the mouse offers customers banking services at a much lower cost and also empowers them with unprecedented freedom in choosing vendors for their financial service needs. No country today has a choice whether to implement E-banking or not given the global and competitive nature of the economy. The invasion of banking by technology has created an information age and commoditization of banking services. Banks have come to realize that survival in the new e-economy depends on delivering some or all of their banking services on the Internet while continuing to support their traditional infrastructure. The rise of E-banking is redefining business relationships and the most successful banks will be those that can truly strengthen their relationship with their customers.

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E-BANKING Without any doubt, the international scope of E-banking provides new growth perspectives and Internet business is a catalyst for new technologies and new business processes. With rapid advances in telecommunication systems and digital technology, E-banking has become a strategic weapon for banks to remain profitable. It has been transformed beyond what anyone could have foreseen 25 years ago. Two years ago, E-banking was a strategic advantage, nowadays; it is a business reality, if not a necessity.

BIBLIOGRAPHY: 1. The Changing Era Of E-Banking A. Vijayakumar 2. Handbook Of Banking Information N.S.Toor 3. Information Technology Dr. S. Upendra Rao

WEBLIOGRAPHY: 1. 2. 3. 4. 5. 6. 7. http://en.wikipedia.org/wiki/Online_banking www.onlinesbi.com http://www.icicibank.com www.rbi.org.in www.statebankofindia.com http://www.karlonia.com/2009/02/28/online-banking-advantages-and-disadvantages/ http://www.buzzle.com/articles/history-of-internet-banking.html

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