E-BANKING

Table of contents
Chapters Topic Page no.
1. Introduction
4-15
1.1 Preface 5
1.2 Objectives of the study 12
1.3 Research Methodology 13
1.4 Limitatios of the study 14
2. Profile of the organisation

15-35
3. Analysis and interpretation of data
3-5!
4. Conclusions and reco""endations
51-54
#ibliography
55
1
E-BANKING
INTRODUCTION
2
E-BANKING
P$%&AC%
!"ba#ig or $teret ba#ig meas ay user %ith a &ersoal com&uter ad a bro%ser ca
get coected to his ba#'s %ebsite to &erform ay of the virtual ba#ig fuctios.
$ iteret ba#ig system( the ba# has a cetrali)ed database that is %eb"eabled. *ll the
services that the ba# has &ermitted o the iteret are dis&layed i meu. *y service ca
be selected ad further iteractio is dictated by the ature of service.
+he traditioal brach model of ba# is o% givig &lace to a alterative delivery chaels
%ith *+M et%or#. Oce the brach offices of ba# are itercoected through terrestrial or
satellite li#s( there %ould be o &hysical idetity for ay brach. $t %ould a borderless
etity &ermittig aytime( ay%here ad ayho% ba#ig. +he et%or# %hich coects the
various locatios ad gives coectivity to the cetral office %ithi the orgai)atio is called
itraet. +hese et%or#s are limited to orgai)atios for %hich they are set u&. ,-$.+ is a
live e/am&le of itraet a&&licatio.
'%A(I() *& %-#A(+I()
3
E-BANKING
!lectroic ba#ig 0or et ba#ig1 refers to a a&&licatio of the $teret that allo%s
customers to dial ito ba# et%or#s or their %ebsites( usig their o% tele&hoes ad
com&uters( ad to get a host of ba#ig services directly o their home or office P2s.
3et ba#ig offers you armchair coveiece ad access to your accout iformatio from
ay%here i the %orld( at ay time of the day or ight. +hat meas( as log as you have a
com&uter( a modem( a &hoe lie ad a $teret accout( you do4t eed to %orry about
ba# holidays or ta#ig time out to go to the ba#( or stadig i log 5ueues for a sim&le
trasactio6 7ou ca access most of the ba#4s services from the comfort of your
home8office66
4
E-BANKING
#%(%&IT, *& %-#A(+I()
&or #an-s.
1. Price " $ the log ru a ba# ca save o moey by ot &ayig for tellers or
for maagig braches. Plus( it4s chea&er to ma#e trasactios over the $teret.
2. 2ustomer 9ase " +he $teret allo%s ba#s to reach a %hole e% mar#et" ad
a %ell off oe too( because there are o geogra&hic boudaries %ith the $teret. +he
$teret also &rovides a level &layig field for small ba#s %ho %at to add to their
customer base.
3. !fficiecy " 9a#s ca become more efficiet tha they already are by
&rovidig $teret access for their customers. +he $teret &rovides the ba# %ith a
almost &a&er less system.
4. 2ustomer ,ervice ad ,atisfactio " 9a#ig o the $teret ot oly allo%s
the customers to have a full rage of services available to them( but it also allo%s them
some services ot offered at ay of the braches. +he &erso does ot have to go to a
brach %here that service may or may ot be offer. * &erso ca ta#e &rit of
iformatio( forms( ad a&&licatios via the $teret ad be able to search for
iformatio efficietly istead of %aitig i lie ad as#ig a teller. -ith more better
ad faster o&tios a ba# %ill surely be able to create better customer relatios ad
satisfactio. Offerig e% services( results i im&roved customer e/&eriece ad
stroger customer retetio.
5. $mage " * ba# seems more state of the art to a customer if they offer $teret
access. * &erso may ot %at to use $teret ba#ig but havig the service available
gives a &erso the feelig that their ba# is o the cuttig image.
:. $detifyig &rofitable customers" 2ustomers usig !"ba#ig services have
higher balaces tha average brach teller customers. $vestmets are more tha t%ice
higher tha the average.
5
E-BANKING
&or Custo"ers.
1. 9ill Pay ; 9ill Pay is a service offered through $teret ba#ig
that allo%s the customer to set u& bill &aymets to just about ayoe. 2ustomer ca
select the &erso or com&ay %hom he %ats to ma#e a &aymet ad 9ill Pay %ill
%ithdra% the moey from his accout ad sed the &ayee a &a&er chec# or a electroic
&aymet
2. Other $m&ortat .acilities ; !" ba#ig gives customer the
cotrol over early every as&ect of maagig his ba# accouts. 9esides the 2ustomers
ca( 9uy ad ,ell ,ecurities( 2hec# ,toc# Mar#et $formatio( 2hec# 2urrecy Rates(
2hec# 9alaces( ,ee %hich chec#s are cleared( +rasfer Moey( <ie% +rasactio
=istory ad avoid goig to a actual ba#. +he best beefit is that $teret ba#ig is
free. *t may ba#s the customer does4t have to maitai a re5uired miimum balace.
+he secod big beefit is better iterest rates for the customer.
3. 9igger share i customer's %allet; $t is a %ell #o% fact that customers ted to
#ee& their fiaces at oe &lace. 9a#s holdig customer accouts therefore have
o&&ortuity to cross sell differet &roducts ad services. Recet studies sho% that ba#s
i the >,* lost 2?@ of their most valuable customers i favor of o"ba# .$( %hich
are fle/ible eough to offer diversified services ad &roducts. +hrough the facility of !"
9a#ig ba#s ca surely offer their customers differet &roducts ad services( all at oe
&lace.
6
E-BANKING
/I'ITATI*(, *& %-#A(+I()
1. ,afety situatios aroud *+Ms.
2. *buse of ba# cards by fraudsters at *+Ms.
3. Aager of givig your card umber %he buyig o"lie.
+he moder techology has iflueced the fiacial sector to a large e/tet. $t icreases the
com&etitive efficiecy of the firms ad &rovides so&histicatio to the ed users. $t ma#es
everyoe fittest to survive.
7
E-BANKING
C*(C%$(, 0IT1 %-#A(+I()
*s %ith ay e% techology e% &roblems are faced( here are some cocers associated
%ith e"ba#ig as %ell. +hese are as follo%s;"
1. Custo"er support " ba#s %ill have to create a %hole e% customer relatios
de&artmet to hel& customers. 9a#s have to ma#e sure that the customers receive
assistace 5uic#ly if they eed hel&. *y major &roblems or disastrous ca destroy
the ba#s re&utatio 5uic#ly a easily. 9y sho%ig the customer that the $teret is
reliable you are able to get the customer to trust olie ba#ig more ad more.
2. /a2s " -hile $teret ba#ig does ot have atioal or state boudaries( the la%
does. 2om&aies %ill have to ma#e sure that they have soft%are i &lace soft%are
mar#et( creatig a moo&oly.
3. ,ecurity ; customer al%ays %orries about their &rotectio ad security or accuracy.
+here are al%ays 5uestios %hether or ot somethig too# &lace.
4. *ther challenges ; lac# of #o%ledge from customers ed( sit chages by the ba#s(
etc.
8
E-BANKING
Internet ban-ing 3ersus traditional "ethod
$ s&ite of so may facilities that $teret ba#ig offers us( %e still seem to trust our
traditioal method of ba#ig ad are reluctat to use olie ba#ig. 9ut here are fe% cases
%here $teret ba#ig %ill tur out to be a better o&tio i terms of savig the moey.
4,to& &aymet4 doe through $teret ba#ig %ill ot cost ay e/tra fees but %he
doe through the brach( the ba# may charge you Rs 5? &er che5ue &lus the service
ta/.
+hrough $teret ba#ig( you ca chec# your trasactios at ay time of the day(
ad as may times as you %at to.
O the other had( i a traditioal method( you get 5uarterly statemets from the
ba# ad if you re5uest for a statemet at your re5uired time( it may tur out to be a
e/&esive affair. +he brach may charge you Rs 25 &er &age( %hich icludes oly 3?
trasactios. Moreover( the ba# brach %ould ta#e eight days to deliver it at your
doorste&.
$f the fud trasfer has to be made outstatio( %here the ba# does ot have a brach(
the ba# %ould demad outstatio charges. -hereas %ith the hel& of olie ba#ig(
it %ill be absolutely free for you.
*s &er the $teret ad Mobile *ssociatio of $dia4s re&ort o olie ba#ig 2??:(
B+here are may advatages of olie ba#ig. $t is coveiet( it is4t boud by
o&eratioal timigs( there are o geogra&hical barriers ad the services ca be
offered at a miiscule cost.B
Cutting *perational Costs
2uttig trasactio costs results i higher &rofit margi for the ba#s. +he eclosed chart
clearly idicates the beefits of !"ba#ig over traditioal methods ba#ig.
#an-ing 'ethod used Cost per Transaction for #an-
1 Maual( &ersoal
Rs. 4? C 1??8" de&edig o 9a#
=igher for .oreig 9a#s( as salaries ad
overheads are higher
2 *+Ms Rs. 2?"3?8" oly
3 $teret 8 P2 Rs. D8" oly
4 +ele&hoe 9a#ig Rs. 158" oly
9
E-BANKING
*s every 9a# %ats to be &rofitable !"ba#ig is becomig ecessity for survival. $t
&rovides eormous beefits to cosumers i terms of the ease ad cost of trasactios.
*#4%CTI5%, *& T1% ,T678
+o gai #o%ledge about the &reset sceario of e"9a#ig ad its uses i the
coutry.
+o study the various services &rovided by $dus$d 9a# to its customers through e"
9a#ig.
+o #o% about diverse measures ado&ted by differet ba#s to icrease customer
satisfactio through the use of e"9a#ig.
+o be o familiar terms %ith the differet uses of $+ ad com&uters i ba#s.
10
E-BANKING
$%,%A$C1 '%T1*7*/*)8
METHOD OF ACCESSING THE DATA: -
$teractio %ith em&loyees of $9L ad of other ba#s.
,ecodary sources.
9oo#s( fiacial e%s&a&ers ad maga)ies.
-ebsites of the ba#s ad fiacial %ebsites.
9rochures ad &am&hlets of differet ba#s.
SAMPLE AREA ; "
Aelhi
11
E-BANKING
/I'ITATI*(, *& T1% ,T678
*lthough $ had a %oderful e/&eriece i com&letig my &roject( yet $ faced a cou&le of
difficulties. !very tas# has its o% limitatios( ad so did the study of aalysis of e"9a#ig
ad its uses. +hey %ere as follo%s;
+he study %as ta#e u& i Aelhi ad the res&oses may ot be a&&licable to other
cities or states.
+ime %as too short to do a aalysis of the &reset sceario of e"ba#ig( &revalet
i the coutry.
Limited &roduct #o%ledge about other ba# &roducts as most of the study %as doe
oly by secodary data.
+here are umerous ba#s i $dia. $t %as ot feasible to study the e"ba#ig
services &rovided by all of them.
9iasess %ould also have also cree& i durig the iteractio %ith the em&loyees of
ba#s regardig various services &rovided by them ad the res&oses of the
customers.
12
E-BANKING
PROFILE OF THE ORGANISATION
13
E-BANKING
A#*6T I(76,I(7 #A(+
Quality Policy:-
IndusInd Bank is committed to meet and strive to exceed customer requirements through
timely, error free and courteous service. We shall continually imrove the effectiveness of
our !ork rocesses through training, customer feed"ack and revie! of systems
IndusInd #an- is the &irst Indian Co""ercial #an- to ha3e its entire net2or- under
I,* certification for 9uality.
14
E-BANKING
#enesis
$dus$d 9a# derives its ame ad is&iratio from the $dus <alley civili)atio " a culture
described by 3atioal Eeogra&hic as 4oe of the greatest of the aciet %orld4 combiig a s&irit of
iovatio %ith soud busiess ad trade &ractices.
Mr. ,richad P. =iduja( a leadig 3o"Residet $dia busiessma ad head of the =iduja
Erou&( coceived the visio of $dus$d 9a# " the first of the e%"geeratio &rivate ba#s i
$dia " ad through collective cotributios from the 3R$ commuity to%ards $dia4s ecoomic ad
social develo&met( brought our 9a# ito beig.
+he 9a#( formally iaugurated i *&ril 1FF4 by Ar. Mamoha ,igh( =oorable Prime Miister
of $dia %ho %as the the coutry's .iace Miister( started %ith a ca&ital base of Rs.1( ???
millio 0>,A 32 millio at the &revailig e/chage rate1( of %hich Rs.:?? millio %as raised
through &rivate &lacemet from $dia Residets %hile the balace Rs.4?? millio 0>,A 13
millio1 %as cotributed by 3o"Residet $dias.
15
E-BANKING
$ ne! era
+he merger %ith the 9a# i Gue 2??4 of *sho# Leylad .iace Ltd.( amog the largest leasig
fiace ad hire &urchase com&aies i $dia( set i motio a &rocess of cosolidatio through the
combied customer base of the merged etity ad its icreased geogra&hical &eetratio. $dus$d
9a# has become oe of the fastest"gro%ig ba#s i the $dia ba#ig sector today %ith its
brach et%or# e/&adig from :1 as o March 31( 2??4 to 13H as o March 31( 2??: C reflectig
a icrease i e/cess of 125@ i 24 moths. +he 9a# has a&&ro/imately 15? *+Ms of its o%(
ad has cocluded multilateral arragemets %ith other ba#s %ith a total et%or# of 15(??? *+M
outlets. *ll the outlets of the 9a#( icludig its braches ad *+Ms( are coected via satellite to
its cetral database that o&erates o the latest versio of $9M's *,4??"H2? series hard%are ad
Midas Ia&iti 0o%( Misys1 soft%are.
$dus$d 9a#'s broad lies of busiess iclude 2or&orate 9a#ig( Retail 9a#ig( +reasury ad
.oreig !/chage( $vestmet 9a#ig( 2a&ital Mar#ets( 3o"Residet $dia 03R$1 8 =igh
3et%orth $dividual 0=3$1 9a#ig( ad 0through a subsidiary1 $formatio +echology.
$dus$d 9a# &rovides multi"chael facilities icludig *+Ms( 3et 9a#ig( Mobile 9a#ig(
Phoe 9a#ig( Multi"city 9a#ig ad $teratioal Aebit 2ards. $t %as oe of the first ba#s to
become a &art of R9$'s Real +ime Eross ,ettlemet 0R+E,1 system. $t has im&lemeted a
eter&rise"%ide ris# maagemet system ecom&assig global best &ractices i the area of Ris#
Maagemet( %ith hel& from IPME. +his has eabled the 9a# to remai i the forefrot i
com&lyig %ith the re5uiremets of 9asel $$. $t is the first ba# i $dia to receive $,O F??1;2???
certificatio for its 2or&orate Office ad its etire et%or# of braches.
-ith its roots i $dia traditio ad em&hasis o customer care( $dus$d 9a#'s service
&hiloso&hy is %ell reflected i the commuicatio taglie J-e 2areK Ail ,eL.
16
E-BANKING
I%&'(I%& B$%) $* $ #+$%,-
&irst ,cheduled Co""ercial #an- to be inaugurated in the post liberalised era: in
the year 1;;4.
'a<ority sta-e o2ned by the global conglo"erate 1indu<a )roup.

Asho- /eyland &inance =5ehicle &inance di3ision of Asho- /eyland> "erger 2ith
IndusInd #an- in 2!!4 increased geographical penetration and custo"er base.
*ffers a co"prehensi3e range of financial products and ser3ices in areas of retail
deposits: ad3ances: corporate deposits: ,'% ad3ances: third party products: utility
pay"ents.

1as a "uch di3ersified custo"er base co"prising salaried class: house-2i3es: ($Is:
entrepreneurs: P,6?s: pri3ate sector organi@ations: etc.
17
E-BANKING
,overage in India
I#/ Presence.-
Incorporated in 1;;4
M 1A; #ranches
M 31 AT's
I#/ ser3es the entire breadth of the Indian %cono"y along 2ith its presence in 141
geographical locations in 2A states.
#y 'arch 2!!B I#/ is ai"ing to increase its branch net2or- to 2!!.
18
E-BANKING
*echnology used "y IB+
IB+ is a tech savvy "ank and has got excellent systems !hich ensure error free, fast and
cost effective transaction rocessing.
The technology partners include -
M IndusInd Technologies /td.
M 1T'T
*-,.%/+/#0
M Centrali@ed Core #an-ing Application - -quation12 from 3isys, ').
M 1ard2are Platfor" - IB3 i - series $(1455 - highly scala"le.
$PP+I,$*I/%
M Internet #an-ing C 6Bank!orld7 from ,89, Ireland
M AT' ,2itch C 6Base941*andem7 an $*3 s!itch from $,I, '(.
19
E-BANKING
#oard 'e"bers
B/$8& /: &I8-,*/8(
'r. $. ,eshasayee Maagig Airector( *sho# Leylad Ltd.
'r. $. ,undarara"an .ormer Ay Maagig Airector of ,9$
'r. T. Anantha (arayanan 2hartered *ccoutat ad !/&ert i *griculture ad Rural !coomy
7r. T. T. $a" 'ohan Professor( .iace N *ccoutig( $$M( *hmedabad
'rs. Palla3i ,hroff Practisig La%yer
'r. Pre"chand )odha
M.A. of $&ca Laboratories Ltd.( havig &ractical e/&eriece of ,,$ N
*griculture
'r. A<ay 1indu<a 9usiessma
'r. ,ushil Chandra Tripathi $.*., 0Retired1( *dvocate
'r. Asho- +ini .ormer Maagig Airector of ,9$
'r. $o"esh ,obti Maagig Airector N 2!O
20
E-BANKING
3ilestones
3et %orth crossed a milestoe figure of Rs. 1??? crores at Rs. 1?5: crores.
,uccessful com&letio of EAR issue of Rs. 145.F: crores.
9usiess +urover touched a figure of Rs 2D.H?? crores registerig a gro%th of
1D.14@ over the &revious year.
3et%or# of 9raches icreased to 1H? alog %ith FF off"site *+M,( thus havig
&resece i over 141 geogra&hical locatios s&read over 2H ,tates icludig >io
+erritories.
=ighest *1O ratig for its 2ertificates of Ae&osits by $2R* ad =ighest P1O ratig for
its .As by 2R$,$L.
9esto%ed %ith the &restigious $9* *%ard for techology im&lemetatio 0,+P1.
*dded a umber of e% busiess ad &roduct lies( via the lauch of $dus EOLA ad
$dus Eift 2ard( !"Remittace facility( tie"u& %ith umber of 9a#s for *+M usage( tie"
u& %ith Religare ,ecurities to e/ted Portfolio Maagemet services ad 9acassurace
tie"u& %ith *viva Life $surace.
Ra#ed amog the to& te ba#s i the coutry i the !+5?? list of leadig com&aies i
$dia.
Rated as the best amog to& 1? &rivate sector ba#s i a survey coducted by 9usiess
,tadard i 3ovember 2??5.
9esto%ed $dia's Most Productive 9a# status by a 9usiess +oday"IPME ,urvey.
Preseted Ruer u&"9a#ig +echology *%ard by $9*( .iacle ad +.2$.
=ooured %ith *%ard for 2or&orate ,ocial Res&osibility at the $dia 9rad ,ummit.
21
E-BANKING
e- B$%)I%# (-8;I,-( P8/;I&-& B0 I%&'(I%&
B$%)
$dus$d 9a# believes i addig coveiece to the ba#ig e/&eriece of its customers.
$ts *lterate Aelivery 2haels give 24/H accesses to its services( from ay%here i the
%orld.
+he 9a# &rovides various ty&es of e"ba#ig services to its customers( %hich aim to
&rovide satisfactio ad ease to them. +hese services are as uder;"
1. I(76,(%T
$duset " $teret 9a#ig service from $dus$d 9a# offers ba#ig services olie %ith
the same &ersoal efforts that customers receive at the brach. +he olie re5uests are
&rocessed by a &roactive team of Personal #an-ers adherig to service 5uality stadards.
+he $teret ba#ig service &rovided by the ba# adds more value to 3R$4s %ho ca vie%
their balaces olie ad also effect fuds trasfer " just at the clic# of a mouse. Moreover(
$teret ba#ig has o time )oes ad is accessible roud the cloc# %ithout restrictig it to
ay geogra&hical boudary.
22
E-BANKING
2. I(76, PA8 C %-0A//%T
$t is a sim&le ad coveiet %ay to trasact olie from ay%here at ay time. -ith this
service oe ca create o% e"-allet ad assig accouts to it. +he customers ca the
shop D donate D subscribe online %ith the list of Merchats ad authori)e the trasactio
from their chose ba# accout usig their trasactio &ass%ord. Moreover( they ca also
vie% all these trasactios olie.
3. 5I,A '*(%8 T$A(,&%$
5I,A '*(%8 T$A(,&%$ - E5I,A CA$7-to-CA$7 TransferF
3o more %aitig i 5ueues i 9a# braches( gettig the Aemad Arafts made( ad %ritig
che5ues that ta#es days to clear( $dus$d 9a# &rovides the oly solutio to ma#e it
sim&ler( coveiet ad faster by IndusInd #an- 5I,A 'oney Transfer.
.rom $dus$d 9a# accout( customers ca o% trasfer moey to ay of the 23 millio
<$,* 2ards ay%here i $dia through Indus(et - IndusInd #an-?s (et #an-ing ser3ice
ad ay of IndusInd #an- AT'.
23
E-BANKING
4. AT's
+he %ide *+M et%or# of $dus$d ba# &rovides the follo%ig services to its customer
base;"
7eposit Cash D CheGue - ,&ecial de&osits sli&"cum"evelo&es are &rovided at the
*+M ceters. +he customers just have to fill i the details of cash or che5ues ad isert it
ito the de&osit slot.
0ithdra2 Cash " Oe ca %ithdra% u& to Rs 15(???8" &er day from his accout usig
the *+M8Aebit card i ay of the $dus$d *+Ms across the coutry subject to
availability of balace i the accout. Oe ca also sho& u& to Rs 25??? &er day usig
his8her debit card.
&unds Transfer " .le/ibility to allo% o"lie trasfer of fuds bet%ee the various
accouts li#ed %ith the *+M8Aebit card of the customer.
&ast Cash " $ s&ite of holdig multi&le accouts( the customers have the o&tio of
%ithdra%ig cash through their &rimary accout oly.
5isa 'oney Transfer " <isa Moey +rasfer is a revolutioary service %hich eables
the customer of $dus$d 9a# to trasfer moey from their debit card to ay other
visa debit 8credit card aytime( ay%here i $dia.
<. I(76, #I// PA8
24
E-BANKING
$dus 9ill &ay is a sim&le( coveiet ad secure %ay of maagig bills from ay%here( at
aytime.+he customers ca &ay their +ele&hoe bills( !lectricity bills( Mobile bills(
$surace Premium( Eas charges( +a/es etc. +his service is absolutely &$%% for customers.
=. P1*(% #A(+I()
+he customers of $dusid ba# ca o% call o the toll free umbers 1D?? 22 ?? :1 0*ll
M+3L N 9,3L subscribers or ?22"44?::::: 0Local call i Mumbai1.
$dus$d ba# offers follo%ig facilities %hich the customers ca avail %ith the hel& of
&hoe ba#ig service;
M 9alace !5uiry for ,avigs.
M Readig out last 3 trasactios.
M ,tatus of che5ue issued by customer.
M ,to& &aymet of a issued che5ue.
M Aetailed statemet by .*P.
M $teral fuds trasfer bet%ee 2 *82s.
M Re5uest for 2he5ue boo#.
M Re5uest debit card re&lacemet.
M ,tatemet re5uest for statemet of *82 by mail or fa/.
>. '*#I/% T*P 6P,
$3A>, MO9$L! +OP >P', " eables the customer to refill his mobile &re&aid card directly
through $dus$d *+M's. Mobile +o& >&s is a <alue added service offered to all $dus$d
25
E-BANKING
customers through *+M chael. 2ustomers ca recharge their mobile refills from $9L
*+M's aytime.
+he >,P of this &roduct is availability for early all o&erators vi); Orage( *irtel( 9PL
Mobile( $A!*( ,P$2!( Reliace( <odafoe( +ata $dicom( 9,3L( M+3L etc.
?. *(/I(% $%'ITTA(C%
Indus :ast 8emit
$dus".ast Remit is a fast( sim&le( safe ad secure %ay to sed moey to your family i
$dia from the comfort of your home.
$t uses the *utomated 2learig =ouse 0*2=1 %hich is &a&erless ad 1??@ olie
remittace &latform to trasfer fuds from >ited ,tates to $dia.
9y usig $dus".ast Remit you ca directly debit your local >, ba# accout ad credit the
beeficiary's accout %ith $dus$d 9a# or istruct $dus$d 9a# to issue demad draft
favorig beeficiary.
Indus (eed 8emit
$dus ,&eed"Remit is a &roduct uder Ru&ee Ara%ig *rragemet ,cheme of Reserve
9a# of $dia( %hich facilitates 3R$'s to trasmit fuds olie through !/chage =ouses.
+his &roduct is offered to !/chage =ouses i E22 coutries as %ell as i =og Iog ad
,iga&ore.
26
E-BANKING
$dus$d 9a# has a strog 3R$ base i E22 coutries. +he majority of $dias are
remittig fuds to $dia i $dia Ru&ees through !/chage =ouses. $dus$d 9a# has tie"
u&s %ith !/chage =ouses i >*!( Oma( 9ahrai( Iu%ait ad =og Iog %ho serve the
$dia &o&ulatio there. Reserve 9a# of $dia uder the RA* ,cheme has &ermitted 9a#
to receive remittace through ,&eed Remittace route from various !/chage =ouses i the
-orld.
@. %-'AI/ ,TAT%'%(T,
$dus$d 9a# customers ca have their accout statemets iformatio at their figerti&s.
+hey ca choose to receive their Mothly8Quarterly ,avigs or 2urret *ccout ,tatemet
Olie at their e"mail address8es i a all"e% PA. format. +heir olie statemets ca be
do%loaded to &rit( save ad archive for future referece. $t is com&letely user friedly.
+his service comes to the $dus$d customers .R!! of cost ad is yet aother measure i
the costat edeavor of the 9a# to ehace customer"coveiece.
10. '*#I/% #A(+I()
>der this( iformatio based services is offered to customers by %ay of ,M, messages( for
%hich they have to register. +hese could be evet or fre5uecy based alerts.
:eatures:
27
E-BANKING
M Aaily balace u&date
M +rasactio based *lerts o Aebits N 2redits ito the accout
M ,tadig $structios R,uccess' messages
M P>LL message service S by sedig #ey %ords li#e R+P3' or R9*L' or %ith &arameters to
5:H:H5H
M Aeal maturity iformatio %ould be set to the customers before 3 days of maturity
M 9roadcasts.
AA. &$%%7*' 3-I(-1 ACC*6(T
I#/ &reedo" 3-in-1 a8c grats their customers com&lete ide&edece from the hassles of
covetioal tradig &rocedures by hel&ig them to trade olie. +his meas o more
callig u& bro#ers( %ritig che5ues8delivery istructios or eve %aitig edlessly to get
trasactios doe. ,im&ly go olie ad get the deal doe i secods ad rea& the beefits of
&a&er"free tradig %ith com&lete tras&arecy.
$9L hel&s the customers to itegrate their 9a# ad Aemat accout %ith their tradig
accout esurig that the fuds8shares ca be seamlessly moved from their li#ed
9a#8Aemat accout to e/ecute their trasactios. +he 9a# a8c ad the Aemat a8c are
automatically debited or credited. +he customers ca trade i all 3,!89,! scri&s as may
times as &ossible.
A9. %&T D ,%&T &ACI/IT8
28
E-BANKING
!lectroic fud trasfer facility is available at 4???? 9a# braches i $dia. .uds
trasferred %ill be credited to the customers accout o the secod %or#ig day.
,!.+ facility is available at 1??? locatios %ith 5uic#er remittace o&tio. +he customers
ca trasfer fuds to ay 9a# accout %ith the fuds gettig credited i the e/t %or#ig
day. *ll the $dus$d 9raches are 3!.+ eabled.
A2. $T), &ACI/IT8

R+E, facility is available at 25??? ba# braches i $dia( %ho are coected to R+E,
&latform at R9$.
>der this service( fuds trasferred uder the straight through &rocess of R+E,( %ill be
credited to the beeficiaries accout o the same day 0%ith i 2hrs1.
A4. %C, &ACI/IT8
$dus$d ba# &rovides t%o #id of !lectroic 2learig ,ystem 0!2,1 facility to its
customers %hich are as uder;"
29
E-BANKING
o ECS Credit for salary &aymets ad other &aymets at fi/ed fre5uecy.
o ECS Debit is as &er madate give by the customers to debit their accout to%ards
!M$ or Recurrig Ae&osit istallmets.
e- B$%)I%# (-8;I,-( P8/;I&-& B0 /*.-8
B$%)(
Aes&ite of various e"ba#ig facilities &rovided by $dus$d ba#( there are may services
%hich the ba# has ot &romoted as yet. *s a suggestio measure( $ may li#e to ame ad
e/&lai a fe% of it( %hich other ba#s have bee &rovidig from 5uiet a log time. $ %ould
li#e the 9a# authorities to have a loo# at them ad &rovide these services to its re&uted
customer base( ad hece im&rove customer satisfactio ad cotetmet. ,ome of these
services are; "
1. *I,)-* B//)I%#
+his service is &rovided by $2$2$ 9a#. -ith this service customers eed ot visit
reser3ation centers for boo#ig tic#ets ay more. +hey ca buy their trai tic#ets olie
ad &ay usig the $teret 9a#ig .acility of the ba#. .or this $2$2$ 9a# has tied u& %ith
$dia Rail%ay 2aterig ad +ourism 2or&oratio Ltd 0$R2+21.+his facility is available to
all iteret ba#ig customers of $2$2$ 9a#.
30
E-BANKING
.or the &ur&ose of ma#ig &aymet the customer's 9a# *ccout %ill be immediately
debited ad &aymet cofirmatio umber %ill be &rovided. +ic#ets are boo#ed immediately
ad P3R umber is &rovided olie to the customer( at Parter4s %ebsite.
.urther( 3o cash %ill be &aid at the time of cacellatio. +he customer's ba# accout %ill
be credited %ith the tic#et amout less cacellatio charges as levied by $R2+2. $2$2$ 9a#
does ot levy ay cacellatio charges.
9. (3$8* 3/%-0 /8&-8
+his facility is beig &rovided by ICICI #an-. ,"art 'oney *rder is a service &rovided
i &artershi& %ith $dia Post 0+he Ae&artmet of Posts( Miistry of 2ommuicatio ad
$formatio +echology( Eovermet of $dia1.
,"art 'oney *rder is a ui5ue service that allo%s the customers to sed a moey order
aytime ad to ay destiatio i $dia. *ll Retail Internet #an-ing 2ustomers ca use this
facility. >der this( moey is delivered at the receiver4s doorste&.
2. /%- ;I-W
Oe<ie% is a revolutioary service from =A.2 9a# that allo%s its customers to maage
multi&le accouts i differet ba#s through oe sigle olie iterface.
31
E-BANKING
$f you are a =A.2 9a# customer ad have oe or more accouts %ith 2itiba#( $2$2$
9a#( =,92 $dia( ,tadard 2hartered 9a# the Oe<ie% is just right for you.
.or this service( the customers do't eed to idividually log o to iteret ba#ig of every
accout. +hey just have to log o to Oe <ie% ad they ca maage u& to .$<! accouts i
differet ba#s. +hey %ill have to remember oly O3! &ass%ord. *d this service is
&rovided absolutely .R!! to the customers of =A.2 9a#.
4. /%+I%- *$B P$03-%*
+his service is &rovided by $2$2$ 9a#. $t has tied u& %ith olie ta/ &re&aratio service
&roviders to hel& its customers to &re&are ad file their ta/es olie. +he customers ca
choose their desired service offered by the service &roviders( &ay o"lie usig
%%%.iciciba#.com ad avail of huge discouts.
,imilarly( this service is also &rovided by may other ba#s icludig */is 9a#.
2ose5uet to the authorisatio of the 9a# by R9$ ad Eovt. of $dia for coductig Eovt.
9usiess( the 9a# is hadlig 2ollectio of various 2etral8 ,tate +a/es through its
authorised 9raches.
<. --P$03-%*(
*/is ba# &rovides this e"ba#ig facility to its customers. +he 9a# has etered ito tie"
u&s %ith various Eovt. Ae&artmets for &rovidig various E29 ad E22 olie &aymet
facility to the citi)es ad busiesses thus &rovidig coveiece to them.
32
E-BANKING
.e% of the im&ortat olie &aymet tie"u&s etered ito by */is 9a# %ith various Eovt.
Ae&artmets is as uder;
AE.+ ePaymets
$R2+2 " Olie Rail%ay Reservatio
M2A " Muici&al +a/ or .ees ePaymets
,am&ar# " >tility 9ill ePaymets
M2A " e+ederig Project
9agalore Oe Project " >tility 9ill ePaymets
=. /%+I%- $'*./8I($*I/% ,/&- C/$, D
+his service is curretly beig &rovided by 2iti9a#. +he customers ca order a Aemad
Araft olie ad have it delivered i over H?? locatios i $dia.
+o do so( they %ill eed a *nline Authorisation Code =*AC> %hich is a oe time &rocess
that has bee itroduced sice 3ovember( 2??: i the 9a#.
33
E-BANKING
ANALYSIS AND INTRPRETATION
OF DATA
34
E-BANKING
#an-ing ,er3ices Through Internet
+here are basically( 3 !" 9a#ig service Levels &rovided by ba#s. +hese are discussed as
belo%;"
i. +he !"i# Le$e% ,ervice is the 9a#s' %eb sites %hich dissemiate iformatio o
differet &roducts ad services offered to customers ad members of &ublic i
geeral. $t may receive ad re&ly to customer's 5ueries through e"mail(
ii. $ the &e't %e$e% are ,im&le +rasactioal -eb sites %hich allo%s customers to
submit their istructios( a&&licatios for differet services( 5ueries i their accout
balaces( etc. but do ot &ermit ay fud"based trasactios o their accouts(
iii. +he t(ird %e$e% of $teret ba#ig service are offered by .ully +rasactioal -eb
sites %hich allo% the customers to o&erate o their accouts for trasfer of fuds(
&aymet of differet bills( subscribig to other &roducts of the ba# ad to trasact
&urchase ad sale of securities( etc. +he above forms of $teret ba#ig service the
customer or by e% ba#s( %ho deliver ba#ig service &rimarily through $teret
or other electroic delivery chaels as the value added services. ,ome of these
ba#s are #o% as R<irtual' ba#s or R$teret oly' ba#s ad may ot have
&hysical &resece i a coutry des&ite offerig differet ba#ig services.
35
E-BANKING
e-Banking: *he Indian (cenario
Internet #an-ing in India.
Olie ba#ig is e/&ected to e/&lode i the e/t fe% years. -e %ill be eterig the age of
o"&hysical e/chage of cash aided by com&lete tras&arecy leadig to &erfectly
com&etitive electroic mar#et &lace ad ievitably to customer su&remacy. Ero%th i olie
ba#ig %ill be drive by the follo%ig reasos;
$creasig access to lo% cost electroic services.
!mergece of o&e stadards i the ba#ig idustry.
$m&roved customer a%areess.
36
E-BANKING
!try of global majors i the mar#et.
$tegratio of ba#ig services %ith e"commerce ad emergece of e"cash.
2oveiet iteratioal trasactios( as $teret elimiates geogra&hic boudaries.
,hift from oe"sto& sho&&ig to ubudled &roduct &urchases.
Product and ,er3ices *ffered. -
9a#s i $dia are at differet stages of the %eb"eabled ba#ig cycle. $itially( a
ba#( %hich is ot havig a %eb site( allo%s its customer to commuicate %ith it
through a e"mail address' commuicatio( is limited to a small umber of braches
ad offices %hich have access to this e"mail cout.
-ith gradual ado&tio of $formatio +echology( the ba# &uts u& a %eb site that
&rovides geeral iformatio o de&osits &roducts( a&&licatio forms for
do%loadig ad e"mail o&tio for e5uiries ad feedbac#.
9a#s &rovide iformatio o their %ebsites about 3R$ ad other services.
2ustomers are re5uired to fill i a&&licatios o the 3et ad ca later receive loas
or other &roducts re5uested for at their local braches.
* fe% ba#s &rovide the customer to e5uire ito his demat accout 0security8shares1
holdig details( trasactio details ad status of istructios give by him. +hese %eb
sites still do ot allo% olie trasactios for their customers.
,ome of the ba#s &ermit customers to iteract %ith them ad trasact electroically
%ith them. ,uch services iclude re5uest for o&eig of accouts( re5uisitio for
che5ue boo#s( sto& &aymet of che5ues( vie%ig ad &ritig statemets of
accouts( movemet of fuds bet%ee accouts %ithi the same ba#( 5ueryig o
status or re5uests( istructios for o&eig of Letter of 2redit ad 9a# Euaratees(
etc.
+hese services are beig iitiated by ba#s li#e $2$2$ 9a# Ltd.( 2itiba#( Elobal
+rust 9a# Ltd.( *P$, 9a# Ltd.( $dus$d 9a#( 2itiba#( 9a# of Madura Ltd.(
.ederal 9a# Ltd.( etc.
37
E-BANKING
,ome of the more aggressive &layers i this area such as $2$2$ 9a# Ltd.( =A.2
9a# Ltd.( *P$, 9a# Ltd.( $A9$ 9a#( =,92 9a#( $dus$d 9a#( Elobal +rust
9a# Ltd.( ad 9a# of Pujab Ltd.( offer the facility of recei&t( revie% ad &aymet
of bills olie.
=A.2 9a# Ltd. has made e"sho&&ig olie ad real time %ith the lauch of its
&aymet gate%ay.
9a#s &rovidig iteret ba#ig services have bee eterig ito agreemets %ith
their customers settig out the terms ad coditios of the services.
+he terms ad coditios iclude iformatio o the access through user"$A ad
secret &ass%ord( miimum balace ad charges( authority to the ba# for carryig
out trasactios &erformed through the service( liability of the user ad the ba#(
disclosure of &ersoal iformatio for statistical aalysis ad credit scorig also( etc.
The &uture ,cenario. -
o 2om&ared to ba#s abroad( $dia ba#s offerig olie services still have a log %ay
to go. .or olie ba#ig to reach a critical mass( there has to be sufficiet umber
of users ad the sufficiet ifrastructure i &lace.
o <arious security o&tios li#e lie ecry&tio( brach coectio ecry&tio(
fire%alls( digital certificates( automatic sig"offs( radom &o&"u&s ad disaster
recovery sites are is i &lace or are beig loo#ed at( there is as yet o 2ertificatio
*uthority i $dia offerig Public Iey $frastructure( %hich is absolutely ecessary
for olie ba#ig.
o +he commuicatio bad%idth available today i $dia is also ot eough to meet
the eeds of high &riority services li#e olie ba#ig ad tradig.
o 9a#s offerig olie facilities also eed to calculate their do%time losses( because
eve a fe% miutes of do%time i a %ee# could mea substatial losses.
o * cotractual agreemet is etered ito by the customer %ith the ba# for usig the
$teret ba#ig services.
o Aomestic customers for %hom other access &oits such as *+Ms( teleba#ig(
&ersoal cotact( etc. are available are ofte hesitat to use the $teret ba#ig
services offered by $dia ba#s. $teret 9a#ig( as a additioal delivery chael(
may( therefore( be attractive8 a&&ealig as a value added service to domestic
customers. 3o"residet $dias( for %hom( it is e/&esive ad time cosumig to
38
E-BANKING
access their ba# accouts maitaied i $dia fid et ba#ig very coveiet ad
useful.
o 2yber crimes are difficult to be idetified ad cotrolled.
o $ order to &romote $teret ba#ig services( it is ecessary that the &ro&er legal
ifrastructure is i &lace.
o +he Ae&artmet of +elecommuicatios 0Ao+1 is movig fast to ma#e available
additioal bad%idth( %ith the result that iteret access %ill become much faster i
the future.
o Reserve 9a# of $dia has costituted a grou& to e/amie differet issues relatig to
e"ba#ig ad recommed techology( security legal stadards ad o&eratioal
stadards #ee&ig i vie% the iteratioal best &ractices.
What do ,omuters do in Banks
T1% 7I&&%$%(T 6,%, *& I(&*$'ATI*( T%C1(*/*)8 I(
#A(+,. -
39
E-BANKING
11 ,igle -ido% ,ystem 0,-,1; "

o +he cashier or teller %ho acce&ts the cash( #eys i the data from his termial after
recei&t of the amout.
o +he amout is straight a%ay &osted to the system.
o $f the customer %ishes to u&date &assboo# the same is also u&dated through the
security form &riter8&ass boo# &riter.
o $f a customer %ishes to obtai a draft( the cler# #eys i the details of the accout to
be debited ad the &articulars of the drafts to be issued o the machie.
o +he customer's accout is debited ad security form &riter &rits out draft ad cler#
ca had over the same to customer duly siged.
21 *y +ime 9a#ig; "
+his refers to ba#ig service beig available 24 hours a day ad 3:5 days a year.
9a#ig( beig a service idustry( is &rimarily drive by customers eeds.
!ach customer is %illig to &ay a &rice for the services &rovided it is made available
to him %he he %ats ad %here he %ats.
$ the &reset day of server com&etitio( ba#ig services are drive by techology(
%hich is more orieted to%ards &rovidig better services to the customer.
+he coce&t of ba#ig hours has bee chaged from the fi/ed 4 hours to 24 hours.
+his has bee made &ossible through use of *+Ms. !ve uder the maual service(
the ba#s have stated to e/ted the service from the traditioal 4 hours to 5 hours ad
eve u& to 12 hours say from D *M to D PM.
,ome ba#s have itroduced the &ractice of ,uday 9a#ig or =oliday 9a#ig.
40
E-BANKING
31 *utomated +eller Machie 0*+M1; "
*+M is a machie i the ature of a com&uter i geeral sese( but is dedicated to do
certai ty&es of s&ecific jobs oly.
+he hard%are ad the &ro&rietary i.e. the soft%are used i oe machie ca ot be
used i oe machie.
2ustomers ca %ithdra% ad de&osit moey through *+M at ay hour of the day.
41 ,hared Paymet 3et%or# ,ystem 0,P3,1; "
+he ,P3,( amed ,-*A=*3( has bee s&osored by the $dia 9a#'s
*ssociatio
$t is a et%or# of *+Ms( &oits of sale termials ad 2ash Ais&esers %ith a vie% to
&ool the resources of the ba#s ad uderlies the s&irit of com&etitio through
coo&eratio.
$t became o&eratioal i Mumbai o 1
st
.ebruary 1FFH ad i t%o years about 15?
*+Ms %ere o%ed ad istalled by 3D ba#s icludig foreig ba#s( &ublic ad
&rivate sector $dia commercial ba#s as also coo&erative ba#s.
+he biggest advatage of the et%or# is that the *+M cards issued by differet
ba#s ca used at ay member ba#s *+M.
9a#s ca have as may *+M as they %at ad follo% some stadards set by the
,P3, committee.
41
E-BANKING
51 2ustomer ,ervices; "
+he follo%ig customer services are offered through the system;
i. 2ash %ithdra%al 0u& to a s&ecified limit1.
ii. 2he5ue82ash de&osit 0the recei&t beig oly for the de&osit of the evelo&e
cotaiig cash but ot for the amout therei1.
iii. !5uiry about balaces.
iv. Pritig of statemet of accouts.
v. Re5uest for che5ue boo# ad stadig istructios.
vi. +rasfer of fuds.
vii. P$3 chage.
:1 +ele ba#ig; "
.rom the covetioal ba#ig( %here the services %ere &rovided maually across
the table( it has come to a stage %here the customer is ot re5uired to visit the ba#
e5uiry of balace i the accout( sedig a remittace( to get a statemet of
accout( etc.
+eleba#ig services are( geerally( &rovided by the ba# over the tele&hoe o a
s&ecial umber.
+he umber at the ba# is coected to a termial i the ba#( %hich is either
hadled maually or is automated by coectig the same to the com&uter et%or#.
42
E-BANKING
H1 =ome 9a#ig; "
>der home ba#ig the customer is served at his residece ad there is o eed for
the customer to visit the ba#'s &remises for a umber of routie trasactios.
$f the customer eeds some iformatio the same ca be got by cotactig the ba#
over the &hoe as described i the teleba#ig.
$f the customer %ats to &ut through trasactio ad %ishes to see his accout or to
get a statemet of his accout( he may have to use a P2.
+he home ba#ig service ca be broadly classified uder t%o grou&s( oe
%ithout usig the iformatio techology ad aother usig iformatio techology.
-he customer cotacts the ba# o the &hoe o s&ecific techology is
ivolved ad the services of teleba#ig are &rovided to him.
D1 !lectroic .ud +rasfer "
o $ $dia the fud trasfers are basically doe through Mail +rasfer( Araft or
+elegra&hic +rasfer.
o $ case of +elegra&hic +rasfer 0++1 agai the Ae&artmet of +elecommuicatio
%as the sole &rovider of +ele&hoe( +ele/ ad +elegram facilities.
o -ith the &rocess of liberali)atio &rivate o&erators have started &rovidig alterative
voice commuicatio chaels through mobile &hoes ad vast commuicatio as a
alterative chaels for data commuicatio.
43
E-BANKING
o $t %as ormal for ay ++ to be credited to the beeficiary's accout after delay of 2
to 4 days
o +he differet forms of !.+ &revalet i the use are;
!.+ through !lectroic Aata $terchage
9*3I3!+
R9$3!+
$AR9+ <,*+ 3et%or#
!.+ from Poit of ,ales
!lectroic 2ash
,-$.+" Elobal ,ystem for .uds +rasfer
!lectroic 2learig ,ettlemet
F1 Plastic 2ards as Media for Paymet; "
+here are four ty&es of &lastic cards beig used as a media for ma#ig &aymets. +hese are;
44
E-BANKING
$. 2redit 2ards "
+he credit card eables the cardholders to;
Purchase ay item li#e clothes( je%ellery( rail%ay8air tic#ets( etc.
Pay bills for diig i a restaurat or boardig ad lodgig i a hotel.
*vail of ay service li#e car retal( etc.
$$. Aebit 2ard "
* debit card is issued o &aymet of a s&ecified amout by the issuig com&ay li#e a
tele&hoe com&ay to a customer o cash &aymet or o debitig his accout by a ba#.
+hus it is li#e a electroic &urse( %hich ca be read ad debited by the re5uired amout.
$t may be oted that %hile through a credit card( the customer first ma#es a &urchase or
avails service ad &ays later o( but for gettig the debit card( a customer has to first &ay the
due amout ad the ma#e a &urchase or avail the service.
$$$. ,mart 2ards "
45
E-BANKING
,mart 2ards have a built"i microcom&uter chi&( %hich ca be used for storig ad
&rocessig iformatio. .or e/am&le( a &erso ca have a smart card from a ba# %ith the
s&ecified amout stored electroically o it. *s he goes o ma#ig trasactios %ith the hel&
of the card( the balace #ee&s o reducig electroically. -he the s&ecified amout is
utili)ed by the customer( he ca a&&roach the ba# to get his card validated for a further
s&ecified amout. ,uch cards are used for &ayig small amouts li#e tele&hoe calls( &etrol
bills( etc.

$<. *+M 2ards "
+he card cotais a P$3 0Persoal $detificatio 3umber1 %hich is selected by the customer
or coveyed to the customer ad eables him to %ithdra% cash u& to the trasactio limit for
the day. 2ustomers ca also de&osit cash or che5ue. +hey ca do ay #id of trasactio at
a *+M( at ay time of the day.
1?1 $tra"9a# N $ter"9a# a&&licatios; "
2om&uteri)atio is o% all &ervasive i ba#s. *lmost all the activities i a ba# ca be
&erformed more efficietly %ith the hel& of com&uters. 9roadly( %e ca divide the
a&&licatios of com&uteri)atio i ba#s i t%o ty&es;"
46
E-BANKING
A> Intra-Bank $lications:
i. .uds trasfer ad &aymet message.
ii. $ter"9rach Recociliatio.
iii. Quic# dis&osal of loa8ivestmet &ro&osal.
iv. .uds iformatio from clearig ceters to the fud maagemet office for o&timal
allocatio of fuds.
v. 2ash Maagemet Product.
vi. +reasury Maagemet.
vii. *y 9rach 9a#ig.
viii. *sset Liability Maagemet.
i/. !"mail.
/. ,oft%are distributio i the ba#.
/i. Orgai)atioal bulleti boards( %hich may cotai the follo%ig;
a. 2irculars.
b. 3e%s letters( &hoe ad address directories.
c. 2ofidetial circular o attem&ted frauds.
/ii. =uma Resources Aevelo&met ad Persoel *dmiistratio.
/iii. Maagemet $formatio ,ystems
a. 9orro%er's &rofile.
b. 9rach &rofile.
c. !m&loyee aalysis.
d. Product8service &rofile.
e. 9usiess &rofile of braches.
BD Inter-Bank $lications: -
i. !lectroic .uds +rasfer( icludig;
a. Retail !.+ 0,mall value credit trasfer1 o et settlemet basis.
b. -holesale !.+ 0Large value credit trasfer1 o Real +ime Eross ,ettlemet
0R+E,1 basis for time critical &aymets.
ii. +rasferrig balace from et settlemet systems to R+E, ,erver at &eriodic
itervals. +he et obligatio could be from;
a. Local &a&er"based clearig
47
E-BANKING
b. $ter"city &a&er"based clearig 0icludig $+ discoutig facilities1
c. 9ul# &aymets C !2, 0Aebit( 2redit( R*P$A1 icludig itercity.
d. ,hared *+M et%or#s
e. ,mart cards ad other &re"&aid8&re"authori)ed debit cards
iii. !/chage of defaultig borro%ers list amog R9$ ad ba#s
iv. !A$ services to the e/tet they &ertai to &aymet cycle to !A$ 0!lectroic Aata
$terchage1
v. Re&ortig of govermet accout trasactios
vi. Re&ortig of 9,R 09asic ,tatistical Returs1 etc. to R9$
vii. *sset Liability Maagemet
viii. $traet i R9$ to eable ba#s to get circulars( &ress releases etc.
i/. Returs to be submitted by the ba#s to Ae&artmets of 9a#ig ,u&ervisio 0A9,1
for off"site su&ervisio ad moitorig.
Internet #an-ing C An *3er3ie2
$teret 9a#ig sites ca be segregated ito three categories from Level $( %hich offer just
miimum fuctioalities such as access to oe's de&osit accout data( to Level $$$ sites that
offer so&histicated services. +o be successful( a $teret ba# must offer;
=igh rates o de&osits.
48
E-BANKING
24 hour access.
.ree chec#ig ad bill &aymet facilities %ith rebates o *+M surcharges.
2redit cards %ith lo% rates.
,im&le ad easy olie a&&licatios for all accouts icludig &ersoal loas.
$ovative &roducts.
=igh 5uality customer service.
!"ba#ig has become a ecessary survival %ea&o ad is fudametally chagig the
ba#ig idustry %orld%ide. +o day( the clic# of the mouse offers customers ba#ig
services at a much lo%er cost ad also em&o%ers them %ith u&recedeted freedom i
choosig vedors for their fiacial service eeds. 3o coutry today has a choice %hether to
im&lemet !"ba#ig or ot give the global ad com&etitive ature of the ecoomy. +he
ivasio of ba#ig by techology has created a iformatio age ad commoditi)atio of
ba#ig services. 9a#s have come to reali)e that survival i the e% e"ecoomy de&eds
o deliverig some or all of their ba#ig services o the $teret %hile cotiuig to
su&&ort their traditioal ifrastructure.
.
49
E-BANKING
CONCLUSIONS AND
RECOMMENDATIONS
Conclusion
50
E-BANKING
+echology iovatio ad fierce com&etitio amog e/istig ba#s have eabled e"
ba#ig to reach its e/istig level. 9a#s have traditioally bee i the forefrot of
haressig techology to im&rove &roduct ad efficiecy. +echology is alterig the
relatioshi&s bet%ee ba#s ad its iteral ad e/teral customers.
+he major drivig force behid the ra&id s&read of e"ba#ig is its acce&tace as a
e/tremely cost effective delivery chael. 9ut o the fli&side( it is associated %ith may
ris#s. 9a#s eed to have a effective disaster recovery &la alog %ith com&rehesive ris#
maagemet tool( %hich is sigificat ot oly to the ba# but also to the ba#ig system as
a %hole.
$teret has created &lety of o&&ortuities for &layers i the ba#ig sector. -hile the e%
etrats have the advatage of latest techology( the good"%ill of the established ba#s
gives them a s&ecial o&&ortuity to lead the olie %orld. 9y merely &uttig e/istig service
olie %o't hel& the ba#s i holdig their customer close. $stead( ba#s must lear to
ca&itali)e their customer's differet olie fiacial"services relatioshi&s.
2omig home( $dia is o threshold of a major ba#ig revolutio %ith the ivasio of et
ba#ig. May atioali)ed( &rivate ad foreig sector ba#s have ado&ted ad have eve
relied o e"ba#ig to ehace ad maitai their customer base. !"ba#ig is &layig a
major role i icreasig the &roductivity ad &rofitability of the $dia ba#s ad ba#s are
ta#ig iitiatives i ado&tig e% ad diversified techi5ues ad &olicies to &rovide better
customer satisfactio %ays %ith the hel& of !"ba#ig.
.rom all of this( %e have leart that iformatio techology has em&o%ered customers ad
busiesses %ith iformatio eeded to ma#e better ivestmet decisios. *t the same time(
techology is allo%ig ba#s to offer e% &roducts( o&erate more efficietly( raise
&roductivity( e/&ad geogra&hically ad com&ete globally. * more efficiet( &roductive
ba#ig idustry is &rovidig services of greater 5uality ad value.
+he rise of !"ba#ig is redefiig busiess relatioshi&s ad the most successful ba#s
%ill be those that ca truly stregthe their relatioshi& %ith their customers.
-ith ra&id advaces i telecommuicatio systems ad digital techology( !"ba#ig has
become a strategic %ea&o for ba#s to remai &rofitable. $t has bee trasformed beyod
%hat ayoe could have foresee 25 years ago.
51
E-BANKING
+o coclude %e may say that( 2 years ago: %-ban-ing 2as a strategic ad3antage:
no2adaysH it is a business reality: if not a necessity. +he coclusios ca be sum u& as
follo%s;
+echological develo&met has bee othig less tha e/&losio. 9a#s have bee
haressig such techological iovatios o oe had ad ada&tig themselves to
such chages o the other had.
Processig( storage ad trasmissio of iformatio is very essece of ba#ig ad
fiacial services.
+he electroic techology has bought revolutioary chages i these areas. +he
elimiatio of &a&er as medium for &rocessig ad storage of trasactios 8
iformatio has bee a great evet. Large volume of iformatio ca be &rocessed(
stored ad retrieved very ecoomically at terrific s&eed( %hich is ot &ossible
maually.
+he s&ace re5uired for maagig eormous volume of iformatio has bee reduced
dramatically.
-ith the revolutio i telecommuicatio techology( iformatio ca be made
accessible from remote distace at lighteig s&eed. +he fial out&ut of iformatio
after mai&ulatio ad aalysis ca be &rited by &riter at high s&eed directly from
com&uters.
+hus( the com&uter o% has the ability to retrieve data or u&date files
istataeously. ,ubse5uetly %ith the develo&met i telecommuicatio( Local
*rea 3et%or# 0L*318-ide *rea 3et%or# 0-*31 have bee established.
$eco""endations
52
E-BANKING
+o &revet olie ba#ig from remaiig a e/&esive additioal chael that does
little to retai footloose customers( ba#s must act 5uic#ly.
+he first ad most obvious ste& they should ta#e is to see to it that the basic &roblem
fuelig dissatisfactio has bee addressed.
*fter re&airig this basic deficiecy( ba#s must esure that there services is
com&etitive.
Obviously( it should iclude chec#ig( savigs ad bro#erage services( %hich achor
customers to the istitutio.
$ additio( to meet the challege of olie bro#erage ad other e% etrats( ba#s
%ould eed to add Jsu&ermar#etsL sellig &roducts such as mortgage( mutual fuds
ad isurace.
#ibliography
53
E-BANKING
,e( Maagemet $formatio ,ystem
$dia 9a#ig( ,. 3ataraha ad R. Parames%ara
9a#ig C $ the 3e% Milleium( $2.*$ >iversity
%%%.idusid.com
%%%.google.com
%%%.icici.com
%%%.idbi.com
%%%.hdfc.com
%%%.%i#i&edia.com
54