CHAPTER - 1

INTRODUCTION

CHAPTER 1 INTRODUCTION
1.1 Internet Banking
The Internet banking is changing the banking industry and is having the major effects on banking relationships. Even the Morgan Stanley Dean Witter Internet research emphasized that Web is more important for retail financial services than for many other industries. Internet banking involves use of Internet for delivery of banking products & services. It falls into four main categories, from Level 1 - minimum functionality sites that offer only access to deposit account data - to Level 4 sites highly sophisticated offerings enabling integrated sales of additional products and access to other financial services- such as investment and insurance. In other words a successful Internet banking solution offers. · Exceptional rates on Savings, CDs, and IRAs · Checking with no monthly fee, free bill payment and rebates ·Credit on cards ATM with
2

surcharges low rates

· Easy online applications for all accounts, personal ·24 loans hour and account

including mortgages access

· Quality customer service with personal attention

1.2 DRIVERS OF CHANGE
Advantages previously held by large financial institutions have shrunk considerably. The Internet has leveled the playing field and afforded open access to customers in the global marketplace. Internet banking is a cost-effective delivery channel for financial institutions. Consumers are embracing the many benefits of Internet banking. Access to one's accounts at anytime and from any location via the World Wide Web is a convenience unknown a short time ago. Thus, a bank's Internet presence transforms from 'brouchreware' status to 'Internet banking' status once the bank goes through a technology integration effort to enable the customer to access information about his or her specific account relationship. The six primary drivers of Internet banking includes, in order of primacy are: · Improve customer access · Facilitate the offering of more services · Increase customer loyalty · Attract new customers · Provide services offered by competitors · Reduce customer attrition

1.3 INDIAN BANKS ON WEB

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The banking industry in India is facing unprecedented competition from non-traditional banking institutions. However.4 EMERGING CHALLENGES Information technology analyst firm. are enabling new competitors to enter the financial services market quickly and efficiently. 55% are so called 'entry level' sites. Only 8% offer 'advanced transactions' such as online funds transfer. 1." By the year of 2002. offering little more than company information and basic marketing materials. these Internet sites offer only the most basic services. the Meta Group. Indian banks are going for the retail banking in a big way. 4 . a large sophisticated and highly competitive Internet Banking Market will develop which will be driven by · Demand side pressure due to increasing access to low cost electronic services. recently reported that "financial institutions who don't offer home banking by the year 2000 will become marginalized. which now offer banking and financial services over the Internet. This study which was conducted by students of IIML shows some interesting facts: · Throughout the country. The deregulation of the banking industry coupled with the emergence of new technologies. · Foreign & Private Banks are much advanced in terms of the number of sites & their level of development. · In general. much is still to be achieved. transactions & cash management services. the Internet Banking is in the nascent stage of development (only 50 banks are offering varied kind of Internet banking services).

out of businesssince they are unable to bring to play in the new context. · Global players in the fray · Close integration of bank services with web based Ecommerce or even disintermediation of services through direct electronic payments (ECash). · Growing customer awareness and need of transparency. · Move from one stop shopping to 'Banking Portfolio' i. 5 . The Internet and its underlying technologies will change and transform not just banking. · More convenient international transactions due to the fact that the Internet along with general deregulation trends eliminates geographic boundaries. unbundled product purchases. It will force lethargic players who are struck with legacy cost basis. But that's because they fail to respond to the challenge of the Internet.e. Certainly some existing brick and mortar banks will go out of business. It will enable nimble players to leverage their brick and mortar presence to improve customer satisfaction and gain share. but all aspects of finance and commerce. It represents much more than a new distribution opportunity.· Emergence of open standards for banking functionality.

CHAPTER 2 RESEARCH METHEDOLOGY 6 .

7 . 2. deciding modes of data collection and the means of analysis of data and the final presentation leading a logical interpretation is known as methodology. In 1st chapter the topic was introduced.2 PURPOSE OF THE STUDY To Study Customers Perception Towards Internet Banking In Raipur City.CHAPTER 2 RESEARCH METHEDOLOGY The process of developing statement. 2. In the 2nd chapter the research methodology of the study is given.1 STATEMENT OF THE PROBLEM “Customers Perception Towards Net Banking – A Study In Raipur City”.

The sample is selected for the 8 . To determine the first step of any research it define the boundaries of research. all the customer of different banks of raipur city was selected.4 POPULATION Population is the total area. who are the subject to study. 2. • • To find out customers suggestions for improving in internet banking facility. • To find out main purpose of using internet banking by customers in raipur city. To achieve the objective of the study. • To identify where customers in raipur city are taking proper safety precautions while doing internet banking. number of persons or group of person.5 SAMPLE A sample is a finite number of units taken for the purpose of the study out of the Universe. To find out customers satisfaction towards internet banking facility.2.3 OBJECTIVE OF THE STUDY • To find out why customers in Raipur city adopted internet banking. 2.

The sample size is 50. It was collected in all the hours of the day. For the optimum sample should be selected sample should represent whole universe. and for the analysis of data “PERCENTAGE METHOD” has been used.6 DATA COLLECTION TOOL Data is collected by the questionnaire. It neither feasible nor desirable to go each and everyone so sampling is done. and the sample units are the people of the city.convenient study. 2. 9 .

CHPTER 3 DATA ANALYSIS AND INTERPRETATION 10 .

1 AGE OF RESPONDENTS AGE GROUP Below 25 26 – 35 36 – 45 46 – 55 Above 55 TOTAL FREQUENCY 16 22 4 8 0 50 PERCENTAGE 32% 44% 8% 16% 0 100% 25 20 15 Series1 10 5 0 Below 25 26 – 35 36 – 45 46 – 55 Above 55 INTERPRETETION: From the above table it is found that majority of the respondents (44%) falls under the age of 26 – 35 years followed by (32%) under the age group below 25 years respectively.CHAPTER 3 DATA ANALYSIS AND INTERPRETATION 3. 11 .

3. 12 .2 GENDER OF RESPONDENTS GENDER MALE FEMALE TOTAL FREQUENCY 40 10 50 PERCENTAGE 80% 20% 100% female 20% MALE FEMALE male 80% INTERPRETETION: From the above table it is found that majority of the respondents (80%)are male and (20%) of respondents are female.

13 .3.3 MARITAL STATUS OF RESPONDENTS MARITAL STATUS MARRIED UNMARRIED TOTAL FREQUENCY 16 34 50 PERCENTAGE 32% 68% 100% MARRIED 32% MARRIED UNMARRIED UNMARRIE 68% INTERPRETETION: From the above table it is found that majority of the respondents (68%) are unmarried followed by (32%) respondents are married.

3.4 DUCATION QUALIFICATION OF RESPONDENTS EDUCATION FREQUNCY QUALIFICATION UNDER 8 GRADUATE GRADUATE 22 POST GRADUATE 20 TOTAL 50 PERCENTAGE 16% 44% 40% 100% POST GRADUATE 40% UNDER GRADUATE 16% GRADUATE 44% INTERPRETETION: From the above table it is found that majority of the respondents (44%) are graduate followed by (40%) are post graduate and remain (16%) are under graduate. 14 .

3.5 EMPLLOYMENT STATUS OF THE RESPONDENTS EMPLOYMENT STATUS EMPLOYED UNEMPLOYED SELF EMPLOYED TOTAL FREQUENCY 28 17 5 50% PERCENTAGE 56% 34% 10% 100% SELF EMPLOYED 10% UNEMPLYOED 34% EMPLOYED 56% INTERPRETETION: From the above table it is found that majority of the respondents (56%) are employed followed by (34%) of respondents are unemployed and remain (10%) are selfemployed. 15 .

16 .20000 20000-30000 INTERPRETETION: From the above table it is found that majority of the respondents (54%) are having monthly is above 30000 followed by (26%) respondents having monthly income is 20000 – 30000.20000 20000 – 30000 Above 30000 TOTAL FREQUENCY 4 7 8 13 27 50 PERCENTAGE 8% 14% 16% 26% 54% 100% LESS THEN 5000 5000-10000 ABOVE 30000 10000 .10000 10000 .3.6 MOTHLY PERSONAL INCOME OF RESPONDENTS MOTHLY INCOME Less then 5000 5000 .

7 NUMBER OF DEPENDENTS NUMBER OF DEPENDEND 1 2 3 More than 3 TOTAL FREQUENCY 11 23 7 9 50 PERCENTACE 22% 46% 14% 18% 100% 50% 45% 40% 35% 30% 25% 20% 15% 10% 5% 0% 1 22% 46% 18% 14% 2 3 More than 3 INTERPRETETION: From the above table it is found that majority of the respondents (46%) are having 2 dependents in their family followed by (22%) respondents are having only 1 dependent.3. 17 .

8 NATURE OF FAMILY OF RESPONDENTS NATUR OF FAMILY NUCLEAR FAMILY JOINT FAMILY TOTAL FREQUENCY 43 7 50 PERCENTACE 86% 14% 100% JOINT FAMILY 14% NUCLEAR FAMILY 86% INTERPRETETION: From the above table it is found that majority of the respondents (86%) are having nuclear family and rest (14%) respondents are having joint family. 18 .3.

9 OCCUPATION OF THE RESPONDENTS OCCUPATION ENTEPRENEUR LAWER DOCTORE ENGG. ACADEMIC GOVT. 19 .3. EMPLOYEE OTHER (SPECIFIED) TOTAL FREQUENCY 50 50 PERCENTACE 100% 100% OTHER SPECIFY 100% INTERPRETETION: From the above table it is found that majority of the respondents (100%) are from other specify.

20 .3.10 DO YOU HAVE SAVING ACCOUNT IN BANK SAVING ACCOUNT YES NO TOTAL FREQUENCY 50 50 PERCETAGE 100% 100% ACCOUNT IN BANKK 100% INTERPRETETION: From the above table it is found that majority of (100%) respondents having a bank account.

3. 21 .11 DO YOU USE THE FOLLOWING FACILITY PROVIDED BY THE BANK FACILITY PHONE BANKING MOBILE BANKING NET BANKING ELECTRONIC FUND TRANSER ATM TOTAL 25 20 15 10 5 0 1 2 3 4 5 FEQUENCY 1 2 23 1 23 50 PCENTAGE 2% 4% 46% 2% 46% 100% INTERPRETETION: 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 facility.

12 SCINCE HOW LONG YOU ARE USING NET BANKING TIME LESS THEN 6 MONTH 6 MONTH – 1 YEAR 1 – 3 YEAR MORE THEN 3 YEAR TOTAL 25 20 15 10 5 0 1 2 3 4 FREQUENCY 5 10 20 15 50 PERCENTAGE 10% 20% 40% 30% 100% INTERPRETETION: From the above table it is found that majority of (40%) respondents are using internet banking 1 – 3 years followed by (30%) are using more then 3 years (20%) are using 6month – 1 year and (10%) are using net banking less then 6 month.3. 22 .

23 .3.13 FROM WHERE YOU HEARD ABOUT NET BANKING FOR THE 1ST TIME SOURCES FRIEND RELATIVES NEWS PAPER MAGAZINE LAEFLETS OF THE COMPANY BANK EMPLOYEE INTERNET OUTHER SPCIFY TOTAL 25 20 15 Series1 10 5 0 1 2 3 4 5 6 7 8 FREQUENCY 20 8 3 2 5 3 5 50 PERCENTAGE 40% 16% 6% 4% 10% 6% 10% 100% INTERPRETETION: 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 there relatives.

14 HOW DID YOU LEARN TO USE THE NET BANKING LEARN FROM SELF FRIEND FROM WEBSITE OF THE BANK FROM BANK STAFF OTHER SPECIFY TOTAL 25 20 15 Series1 10 5 0 1 2 3 4 5 FREQUENCY 17 21 5 7 50 PERCENTAGE 34% 42% 10% 14% 100% INTERPRETETION: From the above table it is found that majority of (42%) respondents are learn to use net banking from there friends followed by (34%) are learn to use self (14%) are learn from bank staff and (10%) are learn from website of bank. 24 .3.

25 .15 REASON DUE TO YOU STARTED THE USING NET BANKING REASON IT SVES TIME IT IS SAFE AND SECURE I CAN USE IT ANY WHERE I DON’T HAVE TIME TO GO TO BANK TOTAL 25 42% 20 15 10 12% 5 0 IT SVES TIME IT IS SAFE I CAN USE IT I DON’T AND ANY HAVE TIME SECURE WHERE TO GO TO BANK 30% FREQUNCY 21 6 15 8 50 PERCENTAGE 21% 12% 30% 16% 100% 16% INTERPRETETION: 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 & secure.3.

3. 26 .16 PURPOSE OF USING NET BANKING PURPPOSE 1 2 3 4 5 6 7 8 9 10 11 TOTAL FREQUENCY 16 7 5 9 10 3 50 PERCENTAGE 32% 14% 10% 18% 20% 6% 100% 18 16 14 12 10 8 6 4 2 0 1 2 3 4 5 6 7 8 9 10 11 INTERPRETETION: From the above table it is found that majority of (32%) respondents are using net banking for view account balance followed by (20%) are using for cheque book request (18%) are using for cheque status enquiry.

17 SAFETY PRECAUTION FOLLED BY RESPONDENTS SAFETY PECAUTIONS 1 2 3 4 5 6 7 8 9 10 TOTAL 14 12 10 8 6 4 2 0 1 2 3 4 5 6 7 8 9 10 FREQUENCY 3 8 1 5 12 6 2 13 50 PERCENTAGE 6% 16% 2% 10% 24% 12% 4% 26% 100% INTERPRETETION: From the above table it is found that majority of (26%) respondents are using safety precautions that they always logout to terminate the session followed by (24%) are never use cyber cafes to access there online account and (16%) are keep there password top secret and change it often. 27 .3.

3.17 ARE YOU SATISFIED WITH YOUR NET BANKING EXPERIENCE SATISFIED YES NO TOTAL FREQUENCY PERCENTAGE 50 100% 50 100% 60 50 40 30 20 10 0 1 2 INTERPRETETION: From the above table it is found that majority of (100%) respondents are satisfied with there net banking experience. 28 .

SUGGESTIONS 29 . LIMITSTION.CHAPTER 4 FINDINGS.

• It is found that majority of (100%) respondents are satisfied by net banking facility.CHAPTER 4 FINDINGS.1 FINDINGS • It is found that majority of (42%) respondents are adopted net banking because it saves time followed by (30%) are adopted because it saves time (16%) are adopted because respondents don’t have time to go to the bank and (12%) are adopted because it is safe & secure. SUGGESTION 4. • It is found that majority of (26%) respondents are using safety precautions that they always logout to terminate the session followed by (24%) are never use cyber cafes to access there online account and (16%) are keep there password top secret and change it often. LIMITATIONS . • It is found that majority of (32%) respondents main purpose of using net banking for view account balance followed by (20%) are using for cheque book request (18%) are using for cheque status enquiry. 30 .

4.3 SUGGESATIONS • Net banking site should be made more interactive . • Net banking should be made user friendly • Net banking site should be made more safe for transaction. 4. 31 . • Inadequate and wrong information from respondents.2 LIMITATIONS • Since the sample are taken out of universe was very small the conclusion cannot be generalized for whole Raipur city. • The respondents not willing to answer.

BIBLIOGRAPHY 32 .

K.google. 2004 P.BIBLIOGRAPHY • Kothari. • www. Research Methodology New Age International Publisher 3rd Addition .P. New Delhi. C.com 33 . 4 – 23.

APPENDIX 34 .

Marital status. (a) Do you have saving account in a bank? Yes { } No { } (b) Please mention the name of the bank ………………………… 3. 2nd Sem. Since how long you are using Net Banking facility? { } Less then 6 month { } 6 month – 1 year { } 1 – 3 year { } more then 3 year 35 . Educational Qualification.1  2   3  >3 k. Employment status. Nature of family.d. Occupation.B.5000  5000>=10000  10000>=20000 20000>= 30000  above 30000 j.QUESTIONNAIRE Respected Sir/Madam. employed  unemployed  self-employed i. Your information will be kept confidential and will be exclusively used for academic purpose.) PART-1 1. Raipur (C. Do you use following facilities provided by your bank? Yes No • Phone banking { } { } • Mobile banking { } { } • Net banking { } { } • Electronic fund transfer { } { } • ATM { } { } 4. Demographic Information a. married  unmarried g. Institute of Management Pt. Nameb.[ ] Entrepreneur [ ] Lawyer [ ] Doctor [ ] Egg. [ ] Academic [ ] Govt.S. under graduate  graduate  post graduate h.A. Nandan Kulkarni M. Monthly personal income. nuclear family  joint family l. Kindly provide me your valuable opinion to fill this questionnaire.G. Addressc. Sexmale  female f. I need your help in conducting this study.U. Phone no.less  than Rs. Number of dependents. R. Age groupbelow 25 26-35  36-45  46-55   above 55 e. I am conducting a survey entitled “Customer Perception Towards Internet Banking – A Study In Raipur City”. employee [ ] others (specify)………………… PART – 2 2.

Please tick against the safety precaution you follow? { } I never respond to email that request personal information. { } Because I don’t have time to go to the bank.. { } Because it is safe & secure. 12. { } Always logout to terminate the session. from where you heard about NET BANKING for the first time? { } Friend { } Relatives { } News paper { } Magazine { } Leaflets of bank { } Bank employee { } Internet { } other specify ………………. @ etc. { } Disable “auto complete” function to prevent internet browser for remembering password. 10. { } Do not use same password for other online account. …………………………………………………………………………………………… Date : Signature 36 . { } Because I can use it any where. Please give suggestion for improvement in “internet banking” facility provided by different banks. 7. { } Ensure that site is running in secure mode. For which purpose you do net banking? { } View account balance. { } Tax deduction at source enquiry. { } Cheque book request. { } Use special character like #. 6. How did you learn to use the NET BANKING? { } Self { } Friend { } From website of bank { } from bank staff { } Other specify ………….(a) Are you satisfied with your internet banking experience? { } Yes { } No (b) If no. { } Buy/Sell mutual fund. { } Request stop payment of cheque. Please mention the reason due to which you started using NET BANKING? { } Because it saves time. $. { } Request for demand draft. in password. { } Never use cyber cafes to access my online account. { } Transfer fund to other bank accounts. 8. { } Incase of suspicion.5. report the matter to customer care.. { } I have installed antivirus software to keep my computer secure. 9. { } Book fixed deposits. { } Keep my password top secret & change it often. { } Download account statement. { } Pay utility bill. { } Cheque status enquiry. state reason ………………………………………………………………………….

37 .

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