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I wish to express my sincere gratitude to Mrs. Singh Mam principal of Joshi Bedekar College for providing me an opportunity to do my project work on “INTERNET BANKING OF STATE BANK OF INDIA”. This project bears on imprint of many peoples. I sincerely thank to my project guide Mr. Yogesh Sharma sir, for guidance and encouragement in carrying out this project work. I also wish to express my gratitude to the officials and other staff members of “STATE BANK OF INDIA” who rendered their help during the period of my project work. My special thanks to Mr. Bamble the manager of State Bank of India for their kind co-operation to the completion of my project work. Last but not least I wish to avail myself of this opportunity, express a sense of gratitude and love to my friends and my beloved parents for their manual support, strength, help and for everything.
Internet banking has evolved over the last decade from product brochure ware, to a complete financial marketplace for its online customers. Banks see Internet banking as the key channel for growth and customer retention. As such, the online banking model has moved from tactical and lower cost customer service, to a more strategic form of customer engagement. Many banks have adopted the latest technologies and added new Internet banking functionalities and features to stay ahead of the competition. However, when measured by key performance indicators such as customer growth, revenue growth, etc., the value delivered varies from bank to bank. While some banks achieve better customer response and retention from adding new technology/feature bells and whistles, others have received moderate to poor acceptance, which has undermined their return on investment. The challenge is to find the right approach and leverage the right mix of technology and features that keep customers happy and transacting over an extended period of time.
INDEX Sr. no Topic
Pg. no. 7 8 8 9 11 12
Chapter 1 Internet banking 1.1 1.2 1.3 1.4 1.5 Introduction to Internet banking History of Internet banking Development of Internet banking in India Various forms of E-banking Advantages & Disadvantages of Internet banking
Chapter 2 State bank of India 2.1 2.2 2.3 History of State Bank of India Internet banking at State bank of India Changes brought in information
15 16 17 18
technology by SBI 2.4 Internet banking facility through state bank of India 2.5 2.6 Services provided by SBI Internet banking Products & services
20 22 19
Chapter 3 SWOC analysis & Terms of service of online banking
4 4. of users of banks Facilities provided by bank Source of net banking Pg no.2 3.6 3.3 4. 11 46 46 47 48 49 4 .2 4.4 3.3. no.3 4.3 3.7 General information Security Bank’s terms Customer’s obligation Do’s & Don’ts Internet banking risks Types of security threats in online banking 34 35 36 37 37 36 42 Chapter 4 Data analysis & interpretation 44 Chapter 5 Recommendation & suggestion Chapter 6 Conclusion Bibliography Annexure 54 56 58 59 Sr.1 4. Graph name 2.1 3.5 3.5 Use of internet banking from last few years Total use of internet banking Preference for online shopping No.
With reference to experience availed at Amravati camp branch.RESEARCH METHODOLOGY OBJECTIVES The main objectives of the study are: • To understand the concept of Internet banking and importance. • • • To get aware of various aspects of net banking To build up SWOC analysis of Internet banking of SBI To build up various solutions for drawbacks in net banking SCOPE OF STUDY The study is made taking consideration of whole State Bank of India. RESEARCH DESIGN: particulars Number of sample Name of sampling Data 30 Random/ probability 5 . NEED OF THE STUDY This study is needed to find out the working of Internet Banking of SBI and its importance to customer as well as to bank. to bank as well as customers.
Hence the study will lead to new ways to tackle the problems and the SWOC of SBI in respect of internet banking. This was all about how the project will go ahead and the findings from it. • E-circulars of SBI Secondary Data: • Books and magazines • Database at SBI • Internal reports of the banks • Library research • Websites FUTURE SCOPE The study of this topic will help to get the knowledge about process of internet banking and usefulness to banking industry.DATA COLLECTION Primary Data: • The data is to be collected from Manager of SBI. Bamble and other staff members at SBI bank. As the study contains the 360 degree information regarding SBI and its internet banking. Mr. 6 .
CHAPTER 1 INTRODUCTION TO INTERNET BANKING 7 .
It would a borderless entity permitting anytime. The creative processes of development of these services were probably sparked off after many companies started the concept of online shopping.1.2 HISTORY The concept of Internet banking has been simultaneously evolving with the development of the World Wide Web. Once the branch offices of bank are interconnected through terrestrial or satellite links. Many banking organizations had already started creating data ware housing facilities to ease their working staffs. This form of banking is generally referred to as Internet Banking. anywhere and anyhow banking. easy access to Internet and World Wide Web (WWW). The development of 8 . Any service can be selected and further interaction is dictated by the nature of service. The online shopping promoted the use of credit cards through Internet. The delivery channels include direct dialup connections. sometime during the 1980's. etc. 1. Internet is increasingly used by banks as a channel for receiving instructions and delivering their products and services to their customers. there would be no physical identity for any branch. public networks. with the popularity of computers. private networks. All the services that the bank has permitted on the internet are displayed in menu.1 INTERNET BANKING (E-BANKING): INTRODUCTION Internet banking (or E-banking) means any user with a personal computer and a browser can get connected to his banks website to perform any of the virtual banking functions. In internet banking system the bank has a centralized database that is web-enabled. Programmers working on banking data bases came up with ideas for online banking transactions.
while usage increased only in 1999. The first online banking service in United States was introduced. 1996 to 1998 marked the adoption phase. The service was developed by Stanford Federal Credit Union. 1. in October 1994. in October 1994.3 DEVELOPMENT OF INTERNET BANKING IN INDIA • The concept of Internet banking has been simultaneously evolving with the development of the World Wide Web.due to lower ISP online charges. The first online banking service in United States was introduced. Though there are pros and cons of electronic cash technology. increased PC penetration and a tech-friendly atmosphere 9 .s. • The online banking services are becoming more and more prevalent due to the well developed systems • ICICI was the first bank to initiate the Internet banking revolution in India as early as 1997 under the brand name • ICICI Bank kicked off online banking way back in 1996. The online banking services are becoming more and more prevalent due to the well developed systems. which is a financial institution. sometime during the 1980&apos. But even for the Internet as a whole. • • The online shopping promoted the use of credit cards through Internet. it has become a revolution that is enhancing the banking sector. • Programmers working on banking data bases came up with ideas for online banking transactions.these data bases were widely used during the development of ATM's.
we are adding close to 15 million mobile users on average in a month. To put things in perspective. although the latter is not recommended for security reasons. in larger perspective this is 7 really nothing to boast of. 1. while in case of Internet it is 14 million users a year. the growth shows a healthy 10% increase from 2008 to 2009 from 10% 57 million users to 71 million Internet users.4 VARIOUS FORMS OF E E-BANKING: a.Use of internet banking from last few years 60 50% 50 40% 40 32% 30 20% 20 12% 10 0 9% 15% 25% 2002 2003 2004 2005 2006 2007 2008 2009 Although. In order to handle his account a user just needs an internet browser. INTERNET BANKING: Internet banking can be used from the home or the office. as well as an internet café. 10 .
For this reason. jewellery. etc. which can be read and debited by the required amount.b. When the specified amount is utilized by the customer. the balance keeps on reducing electronically. c. d. Avail of any service like car rental. Thus it is like an electronic purse. It may be noted that while through a credit card. 11 . which can be used for storing and processing information. etc. For example. petrol bills. debit card are not as popular as credit cards. the customer first makes a purchase or avails service and pays later on. but for getting the debit card. CREDIT CARDS: The credit card enables the cardholders to: Purchase any item like clothes. he can approach the bank to get his card validated for a further specified amount. Pay bills for dining in a restaurant or boarding and lodging in hotel. railway/air tickets. Such cards are used for paying small amounts like telephone calls. As he goes on making transactions with the help of the card. SMART CARDS: Smart Cards have a built-in microcomputer chip. 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. a person can have a smart card from a bank with the specified amount stored electronically on it. a customer has to first pay the due amount and then make a purchase or avail the service. etc.
etc. • Internet banking is available all the time.e.5 ADVANTAGES & DISADVANTAGES OF INTERNET BANKING: Advantages of Internet Banking Internet Banking has several advantages over traditional banking which makes operating a bank account simple and convenient. can transfer funds between accounts. Internet banking allows you to conduct various transactions using the bank's website and offers several advantages. Some of the advantages of internet banking are: • • Internet banking account is simple to open and easy to operate. also you do not have to keep receipts of all the bills as you can now easily view your transactions. 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. i. Now you do not have to stand in a queue to pay off your bills. 1. even in night when the bank is closed or on holidays. You can perform your tasks from anywhere and at any time. The only thing you need to have is an internet connection. He can also deposit cash or cheque.e. Internet banking is quite convenient as you can easily pay your bills. 12 . 24x7.
internet banking may not be useful. 13 . So. • Security of transactions is a big issue. The services include loans. investment options. This means that by the ease of monitoring your account at anytime. • You cannot have access to internet banking if you don’t have an internet connection. a person who is new to internet baking might face some difficulty. but all does not offer this facility. Though there are some sites which offer a demo on how to use internet banking. Funds get transferred from one account to the other very fast. you can get to know about any fraudulent activity or threat to your account before it can pose your account to severe damage.• Internet banking is fast and efficient. • Internet banking is also a great medium for the banks to endorse their products and services. This facility also keeps your account safe. you can keep an eye on your transactions and account balance all the time. You can also manage several accounts easily through internet banking. and many others. thus without the availability of internet access. Your account information might get hacked by unauthorized people over the internet. Disadvantages of internet banking • Understanding the usage of internet banking might be difficult for a beginner at the first go. • Through Internet banking.
do change it and memorize it otherwise your account may be misused by someone who gets to know your password inadvertently. 14 . • • You cannot use internet banking. or the bank’s server is down. It may be due to the loss of internet connectivity in between. After getting your net banking password. the bank’s server is down. or due to a slow connection. in case. Another issue is that sometimes it becomes difficult to note whether your transaction was successful or not.• Password security is a must.
CHAPTER 2 STATE BANK OF INDIA 15 .
The Reserve Bank of India owns about 60% of State bank of India.1 HISTORY OF STATE BANK OF INDIA:The History of State Bank Of India dates back to the first decade of the nineteenth century with the setting up of Bank of Calcutta in Calcutta on 2 June 1806.After three years it was renamed as Bank Of Bengal (2 January 1809). State Bank of India (SBI) has more than 80 offices in nearly 35 other countries. the bank operates more than 15.On 15th April 1840. 2. Tracing its roots back some 200 years to the British East India Company (and initially established as the Bank of Calcutta in 1806). Its domestic operational area is divided into 14 Circles. the Bank of Bombay was initiated and on 1st July 1843. fund management. the Bank of Madras was established. Canada. The bank has other units devoted to capital markets. where it also owns majority stakes in six associate banks. and Nigeria. The Bank's 16 . Structure and Organization The Banks Corporate Office is located at Mumbai.STATE BANK OF INDIA State bank of India is the nation’s largest and oldest bank. credit cards. The Bank is present not just in the major metropolises of India but has wide reach in the villages of India. each with one Local Head Office and a few Zonal and Regional Offices. The integration of the three banks resulted in the creation of Imperial Bank of India on 27th January1921.000 branches within India. factoring and commercial services. including multiple locations in the US. and brokerage services.
The bank foresees tremendous growth potential in all these areas. The portal offers anywhere. International Banking Group and Associates & Subsidiaries. Transformation in SBI The SBI has undergone major transformation in the recent years. In 17 . online access to banking services for SBI’s retail and corporate customers. General Insurance. Corporate Banking Group. 2. The bank has ventured into new areas of business like Pension Funds. anytime. Mobile Banking. OnlineSBI is regarded as the Internet banking portal for SBI. Customers with account with internet enabled branch require to get registered for the Internet banking service with the branch. human resources & technology management and inspection & audit. Point Of Sale. credit. The infrastructure is robust and supports secure access to banking services for more than 13. Custodial Services. Private Equity. Merchant Acquisition. group executives for National Banking Group.top management consists of the Chairman. and Structured Products etc.2 INTERNET BANKING AT STATE BANK OF INDIA The Internet Banking service provided by State Bank of India is referred to as OnlineSBI by the bank. OnlineSBI is developed by using advanced technology and tools. OnlineSBI is made for all the customers who have an account at an internet enabled branch of SBI.000 branches across India. and four staff functionaries in charge of finance. Advisory Services.
The User Id & Passwords for login to the OnlineSBI will be sent to the registered address of customer with the Bank. customer will receive User Id. 2. Customer should ensure that his current address is updated in the Bank’s record. Login Password and Transaction password. The form can also be obtained from the branch. Apply for OnlineSBI (Internet Banking) In order to apply for OnlineSBI Online Banking.case the customer’s branch is not internet enabled. It is suggested that new customers should completely read the general information page so that they will get the idea of using the various banking services online.com” and download the application form for Online Banking. it can be submitted to any nearest branch of the bank. On successful processing of the application. Once logged in customer can avail many online banking services offered by Bank and perform various financial transactions. It is very easy to conduct all the banking transactions online. he can transfer his existing account from his branch to an OnlineSBI branch. customers can visit the site at “http://www. Customer can login to net banking site of OnlineSBI using the UserID and login password.3 CHANGES BROUGHT IN INFORMATION TECHNOLOGY BY SBI:• • In the next decade internet facility was provided for individuals All SBI branches were connected and ATM’S were launch 18 . It is useful for those who are unfamiliar with online banking service. After completing the application form.onlinesbi.
CDMA & VSAT 2. 4. • Multiple Technologies to support the networking infrastructure – Leased lines. there the initiative of core banking took place • 2008. • Multiple Service Providers are providing the links – BSNL. 5. Later on Core banking proposed by the IT consultancy company. Tata & reliance which are making the system errorless and provide high speed. MTNL. Fund transfer between his own accounts.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. Access of accounts on real time 24x7x365 basis and downloading of account statements. Transfer of funds to PPF and loan accounts 19 . Transfer of fund to other accounts through third party transfer mode. 2002 – All branches computerized but on decentralized systems.KMPG appointed consultant for preparing IT Plan for the Bank. 24x7 facilities for tax payment through SBI e-Tax. Reliance.4 INTERNET BANKING FACILITY THROUGH STATE BANK OF INDIA: 1. 2.• • • 2001 . Dial-up. 3.
and enables customers to: • Issue Demand Drafts online • Transfer funds to own and third party accounts • Credit beneficiary accounts using the VISA Money Transfer. 9. Mutual f\Fund Payment. 7 8.6 Payment of all kind of utility bills like Telephone bill payment. 2. 10 Booking of Railway and Air tickets online Payments of Taxes viz Direct and indirect tax. 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 20 . Electricity bill payment Mobile bill payments etc listed on the site. Online trading of shares by using 3 in 1 accounts. Transfer of money to any VISA Debit or Credit Card. RETAIL BANKING:The Retail banking application is an integration of several functional areas.5 SERVICES PROVIDED BY SBI INTERNET BANKING 1. Credit card payment LIC premium payment.
Uploader. and draft issues • Make bill payments over the Internet. Transaction Maker. Supply Chain Finance( e-VFS. third party payments. define rights and transaction rules on corporate accounts. reschedule and cancel transactions. modify. The corporate module provides roles such as Regulator. and Auditor. supplier. CORPORATE BANKING:The OnlineSBI corporate banking application provides features to administer and manage corporate accounts online. Authorizer. • Authorize. • Use online transactional features such as fund transfer to own accounts. Admin. These roles have access to the following functions: • Manage users.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 21 .2. vendor and tax collection authorities. Access accounts in several branches with a single sign-on mechanism • Upload files to make bulk transactions to third parties. based on rights assigned to the user • Generate account statement • Enquire on transaction details or current balance 3. VALUE ADDED SERVICES: Tax payments to central and state governments through site to site integration.
air and bus tickets online through online SBI. Submit your travel plan and book the ticket(s)-either • i-ticket or • E-tickets (wherein after successful payment transactions.per transaction shall be levied in addition to the cost of the ticket. an e-ticket is generated which can be printed any time.Debit facility where suppliers can directly debit their customer’s account through internet banking 2. Logon to Indian Airlines website to make a payment for an e. refund amount will be credited to your account directly within 2-3 days. 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. Railways will generate the ticket.com). For an e-ticket. The payment request 22 . Cancellation of E-ticket can be done by logging on to IRCTC's site.in and create an ID there at if you do not have one.onlinesbi. you can select your account.ticket through State Bank of India. Service charges @ Rs. you need to select SBI as the payment option. you shall be required to submit your ticket at a computerized counter of Railways and on cancellation.ticket.10/. • To book your train ticket. You can also book your Air ticket through the e-ticketing feature.co. the amount shall be credited back to your account. After submitting the respective ID and password. After a successful debit.6 PRODUCTS AND SERVICES:1) E-ticketing: You can book your railway. E-ticket can be printed by you whereas the i-ticket will be dispatched by IRCTC at the given address. just log on to irctc. For cancellation of i.
date of journey and number of tickets. The request may be processed based on values sent from the airlines website. Select OnlineSBI to make the payment. Once a transaction is processed. On selecting the bank name as SBI and submitting the form. To book bus tickets to destinations in Karnataka. Provide details about the start and end points of your journey. Provide your credentials and select the SBI account that will be debited 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 23 . you will be redirected to the Internet Banking site. Estate Duty and Fringe Benefits tax. Verify availability of seats on the selected date and confirm the transaction. Wealth tax. After payment is successful you can print the E-Receipt for the payment. Corporation tax. You are displayed a page with two links Direct Tax and Indirect Tax. log on to the KSRTC website. You will be redirected to the NSDL site where you can select an online challan based on the tax you wish to pay. assessment year. an appropriate response will be sent to airlines site to update the status of the transaction. This facility enables you to pay TDS. Provide the PAN. You can print the E-ticket immediately. Indirect tax. name and address. 2) SBI e-tax:You can pay your taxes online through SBI E-Tax. Income tax. Click the Direct Tax link. you can select your account for making payment of taxes. nature of payment and bank name. You are provided a KSRTC reference number for your eTicket. After submitting the respective ID and password. Click the e-Tax link in the home page.will be redirected to Internet Banking site.
onlinesbi. You can pay telephone. anywhere payment and an instant E-Receipt is generated once the transaction is complete. Select an account for debiting the total tax amount. you can make payment online. with all the bill details. 3) Bill payment: A simple and convenient service for viewing and paying your bills online. 365 days a year. Once the bill is uploaded by the biller. Simply logon to https://www. insurance. The Indirect Tax payment facility is available to Registered Central Excise/Service Tax Assessee who possesses the 15 digit PAN based Assessee Code.the respective transaction to print the tax receipt. CBEC provides a link to generate an E-Receipt for the payment. 24 . You can make CBEC payments using the Indirect Taxes link available in the Payments/Transfers tab. Using the bill payment you can view and Pay various bills online. You can see 'how do i' to learn the steps for using the facility. The Indirect Tax link is used to make Central Excise and Service Tax payments to Central Board of Excise and Customs. You need to provide your Assessee code as registered with CBEC and select the minor heads towards which you intend to pay tax. credit cards and other bills from the comfort of your house or office. If a payment is successful.com/ with your credentials and register the biller to which you want to pay. The online payment feature facilitates anytime. 24 hours a day. electricity. You can use any of your transaction accounts to make the payment. Select the appropriate tax type and enter the tax amount. directly from your SBI account.
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. This system is the fastest possible interbank money transfer facility available through secure banking channels in India. a State-of-the-Art online trading platform predominantly to cater to every trading need (presently available to Indian Residents Only) and offers a truly world class experience of online investing . RBI acts as the service provider and transfers the credit to the other bank's account. Demat Account and an Online Trading Account to give you a convenient and paper free trading experience under one roof. This service provides you with a 3-in-1 account which is an integrated platform of Bank Account. You can also schedule a transaction for a future date. The RTGS system facilitates transfer of funds from accounts in one bank to another on a "real time" and on "gross settlement" basis. You can transfer an amount of Rs.anyplace. 5) eZtrade@sbi State Bank of India (SBI) in alliance with Motilal Oswal Securities Limited and SBI Caps Securities Limited (SSL) now introduces you to 'eZtrade@sbi'.4) RTGS/NEFT:You can transfer money from your State Bank account to accounts in other banks using the RTGS/NEFT service.1 lac and above using RTGS system. Buying and selling of shares is now just a click 25 . eZtrade@sbi will let you trade from the comfort of your home or office through the Internet. anytime. We provide online trading of shares of Companies listed on BSE and NSE. National Electronic Funds Transfer (NEFT) facilitates transfer of funds to the credit account with the other participating bank.
easy and hassle-free online shares/securities trading experience with India's Largest Bank. 7) Fund transfer:The Funds Transfer facility enables you to transfer funds within your accounts in the same branch or other branches. 26 . So go ahead and enjoy your fast. Logon towww. CCAVENUES: Enjoy shopping at the CCAvenue Shopping Mall and purchase from a wide variety of products and services through CCAvenue Certified Vendors. you should be an active Internet Banking user with transaction rights. Funds transfer to PPF account is restricted to the same branch.1 lac per day to own accounts in the same branch and other branches. 6) E-payment:You can pay your insurance premium.sbi mf. SBI Mutual FUND: You can invest in the SBI Mutual Fund schemes online. mobile phone bills and also you can purchase mutual fund units by coming from the biller’s website and selecting state bank of India in the payment option. You can transfer aggregating Rs. To make a funds transfer.com and select the scheme in which you want to make investment in the payment option select State Bank of India.away. LIC PREMIUM: For paying premium of LIC policy logon to premium is due select State Bank of India in the make payment option. Make payments for your purchases using your Internet enabled SBI accounts.
You can see all your online debit and credit accounts. You can set limits for third party transactions made from your accounts or even set limits for individual third parties. If you do not have a mobile number. You will be displayed the last five funds transfer operations on your accounts.1lakh. you need to register your mobile number in personal details link under profile section.Just log on to retail section of the Internet Banking site with your credentials and select the Funds Transfer link under Payments/Transfers tab. A reference number will be generated for your record. you will be displayed a confirmation page with the details of the transaction and the option to submit or cancel the funds transfer request. 8) Third party transfer :You can transfer funds to your trusted third parties by adding them as third party accounts. 27 . You will receive a One Time SMS password on your mobile phone to approve a third party. Enter the amount and remarks. you will be able to transfer funds to the third party. you need to add and approve a third party. Only after approval of third party. The remarks will be displayed in your accounts statement for this transaction. Transfer is instant. The beneficiary account should be any branch SBI. On confirming the transaction. To transfer funds to third party having account in SBI. third party approval will be handled by your branch. Select the debit account from which you wish to transfer funds and the credit account into which the amount is to be credited. You can do any number of Transactions in a day for amount aggregating Rs.
Cash Credit. 10) Cheque Book Request :- You can request for a cheque book online. You can view all your transaction accounts. You can opt for cheque books with 25. You can either collect it from branch or request your branch to send it by post or courier. Current. You can get a demand draft from any of your Accounts (Savings Bank.9) Demand Draft :The Internet Banking application enables you to register demand drafts requests online. If you have any queries. and the courier charges will be recovered from you. and Over Draft accounts. You can opt to get the cheque book delivered at your registered address or you can provide an alternate address. Cash Credit or Overdraft). quoting a reference to the transaction. kindly approach your branch. Cheque books will be dispatched within 3 working days from the date of request. quoting the reference number generated for the request. You can set limits for demand drafts issued from your accounts or use the bank specified limit for demand drafts. Current Account. A printed advice can also be obtained from the site for your record. Alternatively. Select the account for which you require a cheque 28 . 50 or 100 cheque leaves. You can opt to collect the draft in person at your branch. Cheque book can be requested for any of your Savings. you may request the branch to courier it to your registered address. Just log on to retail section of the Internet Banking site with your credentials and select the Cheque Book link under Requests tab.
Then. Your new account opening request will be processed by the branch. submit the transaction. You can apply for a new account only in branches where you already have accounts. The account statement can be viewed online. You can see all types of accounts. opening. 12) Account Statement :- The Internet Banking application can generate an online. Just log on to retail section of the Internet Banking site with your credentials and select the New Account link under Requests tab. Then. You can select any of your accounts for debiting the initial amount. enter the number of cheque leaves required and the mode of delivery. 11) Account Opening Request:OnlineSBI enables you to open a new account online. The statement includes the transaction details. printed or downloaded as an Excel or PDF file. you need to select the branch and enter the initial amount to open the account. You can open Savings. NRO and NRE types. Funds in an existing account are used to open the new account. Select the account and account type you wish to open and submit the same. submit the same. You can generate the online account statement for any date range or for any month and year.book. You should have an INB-enabled account with transaction right in the branch. You also have the option to select the 29 . downloadable account statement for any of your accounts for any date range and for any account mapped to your username. Term Deposit and Recurring Deposit accounts of Residents. Then. closing and accumulated balance in the account. Current.
You can view Demat account details. You can view and verify transaction details and the current status of transactions.number of records displayed in each page of the statement. In the third party site. The options are 25. You will be displayed all online transactions you have performed. you need to click the Transaction Reference number link.com/ with your credentials and go to Payment and transfer and click on make donation 30 . Just log on to retail section of the Internet Banking site with your credentials and select the Status Enquiry link under the Enquiries tab. narration and transaction status 14) Demat Account Statement:- OnlineSBI enables you to view Demat account statement and maintain such accounts. Simply log on to http://www. The bank acts as your depository participant. 75. 100 and ALL. you can mark a lien on your Demat accounts and use the funds to trade on stock using funds in your SBI savings account. 13) Transaction Enquiry :- OnlineSBI provides features to enquire status of online transactions. transaction amount. You are displayed the debit and credit account details. Your VISA transactions can also be viewed separately. statement of transactions. and generate the following statements: statement of holding. To view details of individual transactions. 15) Donation:- You can make donation to religious and charitable institution by using Internet Banking of SBI. 50.onlinesbi. statement of billing.
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 31 .
CHAPTER 3 SWOC ANALYSIS & TERMS OF SERVICE OF ONLINE BANKING 32 .
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. • 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 33 . • Procedure for applying for id and password for using services related to internet banking takes time. including personal loans and mortgage • 24 hours account access • Quality customer service with personal attention WEAKNESSES:• Lack of awareness among the existing customers regarding internet banking • Obsolesce of technology take place very soon specially in terms of security on internet.
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. 3. Normally OnlineSBI services will be open to the customer only after he acknowledges the receipt of password. you need to register at each branch separately. If you maintain accounts at more than one branch. You should register for ‘OnlineSBI’ with the branch where you maintain the account. • Concentration of various services should be made using internet banking CHALLENGES:• 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 TERMS OF SERVICE: ONLINE SBI 3.1 GENERAL INFORMATION: 1. 34 .OPPORTUNITIES:• • Approximately 95% of customers are not using internet banking. 2.
6. However the applicant has the option to selectively view the accounts on the ‘OnlineSBI’. 5. will be available on the ‘OnlineSBI’. (To begin with the services will be extended only to single or Joint “E or S” accounts only). The User-id and Password given by the branch must be replaced by User Name and Password of customer’s choice at the time of first log-on. This is mandatory. please bring it to the notice of the branch by e-mail or letter. If you believe that any information relating to your account has a discrepancy. We invite you to visit your account on the site frequently for transacting business or viewing account balances. all account holders are entitled to register. The ‘OnlineSBI’ service is VERISIGN certified which guarantees. that it is a secure site. It means that 35 .2 SECURITY: 1. In a joint account. Bank will make reasonable use of available technology to ensure security and to prevent unauthorized access to any of these services. 3. The Branch where the customer maintains his account will assign: a) User-id & b) Password 2. All accounts at the branch whether or not listed in the registration form. 3.4. but transactions would be permitted based on the account operation rights recorded at the branch. as users of ‘OnlineSBI’.
customers may avoid using PCs with public access. However. 6. Therefore if a customer forgets his password. 4. You are welcome to access ‘OnlineSBI’ from anywhere anytime. • The two-way communication is secured with 128-bit SSL encryption technology. 3. which ensures the confidentiality of the data during transmission. 36 .• You are dealing with SBI at that moment. he must approach the branch for reregistration. 5. Rules and regulations applicable to normal banking transactions in India will be applicable mutatis mutandis for the transactions executed through this site. SBI will soon be implementing PKI/Digital Signature. There is no way to retrieve a password from the system. All requests received from customers are logged for backend fulfillment and are effective from the time they are recorded at the branch. as a matter of precaution. 3. 2.3 BANK’S TERMS: 1. These together with access control methods designed on the site would afford a high level of security to the transactions you conduct. The bank may also convert this into a discretionary service anytime. The OnlineSBI service cannot be claimed as a right.
Dispute between the customer and the Bank in this service is subject to the jurisdiction of the courts in the Republic of India and governed by the laws prevailing in India. The customer has an obligation to maintain secrecy in regard to Username & Password registered with the Bank. 3. 3. The bank presupposes that login using valid Username and Password is a valid session initiated by none other than the customer.5 DO’S & DON’TS: 1. 37 . The changes will be notified to the customers through a notification on the Site. The customer will not attempt or permit others to attempt accessing the ‘OnlineSBI’ through any unlawful means. 3. 2.4. Transaction executed through a valid session will be construed by SBI to have emanated from the registered customer and will be binding on him / her. The customer should keep his/her ID and password strictly confidential and should not divulge the same to any other person.4 CUSTOMER’S OBLIGATIONS: 1. The Bank reserves the right to modify the services offered or the Terms of service of ‘OnlineSBI’. Any loss sustained by the customer due to non-compliance of this condition will be at his/her own risk and responsibility and the Bank will not be liable for the same in any manner. 5.
Similarly it is a good practice to commit the password to memory rather than writing it down somewhere. or borrower performance. 3. date of birth etc. As a precaution a password that in is generic nature. Internet banking can attract deposits. This might give access to your account information to others.6 INTERNET BANKING RISKS: CREDIT RISK: Credit risk is the risk to earnings or capital arising from an obligator's failure to meet the terms of any contract with the bank or otherwise to perform as agreed. address. driving license. guessable or inferable personal data such as name. invested or otherwise exposed through actual or implied contractual agreements . It arises any time bank funds are extended. committed . whether on or off the bank’s balance sheet.2. issuer. loans and other relationships from a large pool of possible customers than other forms of marketing. Credit risk is found in all activities where success depends on counterparty. telephone member. Greater access to customers who primarily seek the best rate or term reinforces the 38 . Interest rate risk arises from different between the timing of rate changes and timing of cash flows. It may not be safe to leave the computer unattended during a valid session. is best avoided. 3. INTEREST RATE RISK: Internet rate risk is the risk to earnings or capital arising from movements in interest rates. The customer is free to choose a password of his own for OnlineSBI services.
FOREIGN EXCHANGE RISK: Foreign Exchange risk is present when a loan or portfolio of loans is dominated in a foreign currency or is funded by borrowings in another currency. Increased monitoring of liquidity and changes in deposits and loans may be warranted depending on the volume and nature of internet account activities. banks will enter into multi-currency credit commitments that permit borrowers to select the 39 . without incurring unacceptable losses. Asset/liability and loan portfolio management systems should be appropriate for products offered through internet banking. In some cases. Liquidity risk arises from the failure to recognize or address changes in market conditions affecting the ability of the bank to liquidate assets quickly and with minimum loss in value. or securitization programme as a result of Internet banking activities. The risk arises from market making. LIQUIDITY RISK: Liquidity risk is the risk to earnings or capital arising from a bank's inability to meet its obligations when they come due. Banks may have exposed to price risk if they create or expand deposit brokering. equity and commodities markets. PRICE RISK: Price risk is the risk to earnings or capital arising from changes in the value of traded portfolio of financial instruments. loan sales. dealing and position taking in interest rate. including the ability to react quickly to changing market conditions. Appropriate management systems should be maintained to monitor.need for managers to maintain appropriate asset/liability management systems. foreign exchange. and manage price risk if assets are activity traded. measures.
Transaction risk is evident in each product and service offered and encompasses product delivery. This risk may expose institution to litigation. and manage information. or a decline in its customer base. transaction processing. communications strategies with the press and public. This affects the institution's ability to establish new relationships or services. financial loss. maintain a competitive position. Appropriate systems should be developed if bank engage in these activities. social or economic development. complexity of products and services. 40 . TRANSACTION RISK: Transaction risk is the current and prospective risk to earnings and capital arising from fraud. A bank's reputation can suffer if it fails to deliver on marketing claims or to provide accurate.currency they prefer to use in each rollover period. National Banks need to a sure that their business Continuity plans include the internet banking business. computing systems. A high level of transaction risk may exist with Internet banking products. particularly if those lines of business are not adequately planned. Regular testing or business continuity plan. will help the bank ensure it can respond effectively and promptly to any adverse customer of media reactions. error. Foreign exchange risk can be intensified by political. system development. and the internal control environment. REPUTATION RISK: Reputation risk is the current and prospective impact on earnings and capital arising from negative public opinion. and the inability to deliver products or services. timely services. implemented and monitored.
or ethical standards. regulations. They include communication channels. civil money penalties. prescribed practices. technological. and managerial capacities and capabilities. The organization’s internal characteristics must be evaluated against the impact of economic. STRATEGIC RISK: Strategic risk is the current and prospective impact on earnings or capital arising from adverse business decisions. laws. the business strategies developed to achieve those goals. The risk is a function of the compatibility of an organization’s strategic goals. the resources deployed against these goals. or nonconformance with. Compliance risk is also arises in situations where the laws or rules governing certain bank products or activities of the bank’s clients may be ambiguous or untested. and the quality of implementation. regulatory. delivery networks. or lack of responsiveness to industry changes. and other environmental hangs. 41 . The resources needed to carry out business strategies are both tangible and intangible. and the voiding of contracts. Compliance risk exposes the institution to fines.COMPLIANCE RISK: Compliance risk is the risk to earning or capital violations of. rules. payment of damages. competitive. operating systems. improper implementation of decisions.
an attacker calls the bank's help desk impersonating an authorized user. This could then be used as a point of attack. this technique is used.A technique to capture encrypted messages then using software to break the code and gain access to messages. Guessing Passwords . 42 . attackers may try to exploit know vulnerabilities. and passwords. In operating systems of particular kind. Types of attacks may include: Sniffers . user ID's. The purpose of an attack may vary.7 TYPES OF SECURITY THREATS IN ONLINE BANKING: Banks and service providers require guarding against various types of online attacks. Brute Force .To gain information about the system along with changing password.3. Logon Ids and passwords may be captured with this software. this software is used to capture keystrokes from a specific PC. The purpose is to find a modem connected to the network.To dial every number on a known bank telephone exchange. Social Engineering .We can test all possible combinations to enter into a network using this software.Also familiar as network monitors. Random Dialing . During a short time frame. they also may try to make an unauthorized entry into a Web site repeatedly thus denying service to other customers.
Attempting to deduce information from them there by intercepting transmissions.com Original bank website: www. 43 .com. These website are believed to aim to trick persons into disclosing their sensitive personal information Fake e-mails: Fake e-mails Email send from fraudulent bank Verify the personal information Guide customer enter the fraud link. Fraudulent Bank Websites: A suspicious bank website: www.onlinesbi. Internet traffic is particularly susceptible to this threat.sbionline. Disclosing their ATM card numbers and their passwords Viruses and Worms-Trojan Horse Program: Viruses and Worms-Trojan Horse Program When we open some suspicious websites or email Trojan Horse Program will install our computer secretly Hidden in the computer When you access bank websites Capture our account and the password.Hijacking .
CHAPTER 4 DATA ANALYSIS & INTERPRETATION 44 .
45 .1) Use of internet banking Yes 65% 70 60 50 40 30 20 10 0 users of E-banking yes 35% no 65% No 35% Interpretation: It is found that 65% of people use internet banking 2) Preference for online shopping Yes 70% No 30% 80 70 60 50 40 30 20 10 0 yes no 30% yes no 70% Interpretation: It is found that about 70% people give preference to online shopping.
20% people use ICICI & Sbh bank. 10% people use Axis & 8% people use 10% Union bank 46 . of user of the banks ICICI 20% SBI 30% SBH 20% AXIS 10% UNION 8% HDFC 12% 35 30 30 25 20 20 15 10 10 5 0 8 12 20 icici sbi sbh axis union Hdfc Interpretation: It is found that about 30% people use SBI. 12% people use Hdfc bank.3) No.
4) Do you use the following facility provided by the bank Facility Phone banking Mobile banking Net banking Electronic fund transfer Atm Total Frequency 1 2 23 1 23 50 % 2% 4% 46% 2% 46% 100% 50 45 40 35 30 25 20 15 10 5 0 2 4 46 phone banking mobile banking net banking electronic fund transfer atm 2 facility 4 Interpretation: From the above table it is found that majority of (46%) respondents are using the facility of net banking& ATM followed by (4%) are using mobile banking 47 .
5) From where you heard about net banking for the 1st time
Source Friend Relatives Magazines Leaflets of the company Bank employee Internet Frequency 20 8 3 2 3 5 % 40% 16% 6% 4% 6% 10%
45 40 40 35 friend 30 25 20 15 10 10 5 0 6 6 4 16 bank employee relatives magazines leaflets of company internet
From the above table it is found that majority of (40%) respondents are heard about net banking first time from friends followed by (16%) are heard from their relatives.
6) How did you learn to use of net banking
Learn from Self From website of bank From staff of bank Friend total frequency 17 5 7 21 50 % 34% 10% 14% 42% 100%
45 40 35 30 25 20 15 34
self friend 14 10 from website of bank from staff of bank
10 5 0
From the above table it is found that majority of (42%) respondents are learn to use net banking from their friends followed by (34%) are learn to use self (14%) are learn from bank staff and (10%) are learn from website of bank.
7) Reason due to you started using net banking Reasons IT saves time IT is safe & secure I can use IT any where I don’t have time to go to bank Total 50 100% Frequency 21 6 15 8 % 42% 12% 30% 16%
45 40 35
30 30 25 20 15 10 5 0 12
IT saves time IT is safe % secure I can use IT any where 16 I don’t have time to go to bank
From the above table it is found that majority of (42%) respondents are started to use net banking because it saves time followed by (30%) are started because it saves time (16%) are stared because respondents don’t have time to go to the bank and (12%) are stared because it is safe & sec secure.
8) Internet users in India by occupation Senior executive: 22% Junior executive: 22% Student: 20% Self-employed: 10% Businessman/industrialist: 03% Small businessman/traders: 03% Housewife: 02% Other: 18%. 25 20 22% 15 22% 10 10% 5 3% 0 3% 2% 20% 18% senior executives junior executives student self employed businessmen/industrialist small businessmes housewife other 51 .
F i n a l l y w e c a n t h e a g e group between 26-35 are the 26 maximum users of the internet 52 . 46-60 and 61a n d a b o v e h a v e s t a r t e d u s i n g i n t e r n e t 60 61a i n r e c e n t .9) The time you are using internet Age 18-25 26-35 36-45 46-60 60+ Less than a month 3 0 0 0 1 1-6 months 2 0 3 2 3 6-12 months 12 12 15 0 8 0 18 16 14 12 10 8 6 4 2 0 18-25 26-35 36-45 46-60 60+ 6-12 month 12 1-6 month 6 less than a month Interpretation: From the above interpretation we can say that all the yo u n g e r h a v e b e e n using internet since last one year but age group between 36-45.
35 53 . s i mi l a r l y % between 26-35 51% people have own internet while 1% don’t have own internet. 61and above 1 % people have own internet.10) No. 36-45 20% people have own internet while 2% don’t have own internet. of people having internet Age 18-25 26-35 36-45 46-60 60+ Own internet 27 51 20 8 1 Don’t have internet 3 1 2 4 3 3 1 2 4 3 27 51 20 8 1 0 age 18-25 26-35 36-45 don’t have internet 46-60 60+ own internet Interpretation: From the above interpretation we can say that age group between 18-25 27% people have own internet wh i l e % wh o d o n ’t h a v e % o wn i n t e r n e t i s 3% . 3%don’t have own internet. 46-60 8% people have own internet while 4% don’t have own internet. 26-35 own maximum % of internet. Finally we can see that age group .
CHAPTER 5 SUGGESTIONS & RECOMMENDATION 54 .
Proper training of Bank staff to give impressive presentation.RECOMMENDATIONS & SUGGESTIONS • Advertising is not appropriate. Regular connected with customer. • Timely payment of salary and Promotion of employees will boost their morale. • All the complaints of Customer should be deal in proper manner because it is the customer who will give good or bad mouth about bank services. 55 . • • • Existing customer should always be informed about the new product. as many people are not aware of internet banking Therefore Hoarding and Boards should be displayed at various prime locations in the city. • Non maintenance & other charges which are very high as compared to other Banks should be reduced.
CHAPTER 6 CONCLUSION 56 .
If such a system was not trusted and not reliable. It provides comfort to customers at the same time it provides cost cutting to SBI by eliminating physical documentation. Feedback can be obtained easily as internet is virtual in nature. Study states that internet banking provides greater reach to customers. Customer loyalty can be gain. 57 . Bank should know that No system is perfect. Internet banking saves time of bank as well as those of customers. however a system of such a type will need to be very secure. This is a system which holds account details and customers wealth. then SBI would face serious laws and would lose business. Personal attention can be given by bank to customer also quality service can be served.CONCLUSION Studying the project I came to know that Internet banking is clearly the way forward for the State Bank of India.
eHow.com • www.com • www.statebankofindia.com • www.BIBLIOGRAPHY Books:• SBI Training guide for internet banking Websites:- • www.weikipedia.Indiatimes.onlinesbi.com 58 .com • www.
UNION BANK F. ICICI B. Do you like E-banking Yes No 3. HDFC G. They provide security c. Why this bank a. SBI C. 59 . Service is good b. Cheaper service fees. Name of the customer: Age: profession: 2. BANK OF PUNJAB LTD 4. AXIS E. SBH D.Annexure Questionnaire: (for customer) 1.UTI BANK LTD H. Tick which bank you prefer A.
Share payment 6. Open FD e. Lock / activate debit cards /ATM f. Card to card fund transfer d. poor b. Services of the bank are…. Electronic fund transfer e. Transfer fund online c. Phone banking b. a. Railway pass / ticket i. Stop payment h. Do you use the following facility provided by the bank a. Request a cheque book g. Which type of service mostly you use? a. Shopping j. Net banking d.5. Balance and transaction history search b. Atm 60 . Mobile banking c. good c. Very good 7.
8. I don’t have time to go to bank 11. Bank employee f. IT saves time b. from where you heard about net banking for the 1st time a. From website of bank c. From staff of bank d. The time you are using internet A) Le s s t h a n a mo n t h B) 1 to 6 months C) 6 to 12 months D) More than a year 61 . Self b. Friend b. IT is safe & secure c. How did you learn to use of net banking a. Relatives c. Leaflets of the company e. Friend 10. Magazine d. Internet 9. Reason due to you started using net banking a. I can use IT any where d.
Are you satisfied with the using of E-banking? a. Are you aware of the benefits of net banking which are available? (a) Yes (b) No Suggestion: 62 .12. Are you aware of frauds from Internet banking? a. No 14. Yes b. Yes b No 13.
How much amount can I transfer by using internet banking? 6. Is everyone aware about net banking facility? Yes No 3.Which type of fund transfers can be done on internet banking? 63 . What are the charges for internet banking? 5.Questionnaire: (For bank manager) 1. How can I apply for SBI internet banking? 10. Do you educate your customers about internet banking service you provide? 7. Name: Age: Post: 2. What extra precautions you have taken for internet banking? 8. What are the benefits of SBI internet banking? 9. How many customers use internet banking? 4.
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