CUSTOMER AWARENESS IN HDFC BANK FOR THE PARTIAL FULFILLMENT OF THE REQUIREMENT FOR THE AWARD OF TWO YEAR FULLTIME MBA PROGRAMME SUBMITTED TO SUBMITTED BY Dr. Pooja Bha!"a D!#"a Tr!$ah! H%a&'MBA,D%$ar(%) MBA II )& S%( Ro** No. + ,-./01..-0 BABU BANARASI DAS NATIONAL INSTITUTE OF TECHNOLOGY & MANAGEMENT A2h!*%3h Da3 Mar4' Fa!5a6a& Roa&' L782)o9 S%33!o) + :.,-;:.,0 1 ACKNOWLEDGEMENT
At the very outset I would like to express my sincere gratitude to HDFC BA! "or providing me with the opportunity to work with them and to undertake this pro#ect on <CHA$I$ %&CH'('$) * C+,%'-&. A/A.&&,, I HDFC BA!= I "eel proud to getting such opportunity to get mysel" associated with esteemed organi0ation like1 HDFC BA!1 %his pro#ect comes out to 2e a great source o" learning and experience1 A lot o" e""orts have 2een put 2y various people to make this pro#ect a success %his has greatly enhanced my knowledge a2out the vast "ield o" -arketing that an individual pre"ers today3s scenario1 I am grate"ully to Dr.>$ro?.@ D.N.Ka22ar' H%a&'MBA' I)3!7% O? E)4!)%%r!)4 & T%8h)o*o4"' "or providing me the plat"orm and granting me the permission to undergo the summer training in HDFC BA!1 I grate"ully acknowledge my inde2tedness to Mr. S7)!* Ta)&o) >Mar2%!)4 Ma)a4%r@ "or allowing to me to undergo a training session in his 2ranch and gather an in depth knowledge a2out me "or CHA$I$ %&CH'('$) * C+,%'-&. A/A.&&,, I HDFC BA! 1 He was supportive throughout the proceeding o" this pro#ect and inspired me all the way11 I wish to express my deep sense to gratitude and inde2tedness to Mr. A.K.A%r(a' my "aculty mentor "or providing me all "acilities and constructive criticism, encouragement and parental guidance my pro#ect work1 I also wish to thanks him providing me his precious any time I wanted 1 I am extremely thank"ul to my team mem2er who contri2uted their e""orts and continuous encouragement in making this pro#ect success"ully1 (ast 2ut not the least4 I am extremely thank"ul to my "amily mem2ers and my "riends "or their constant support and valua2le guidance1 I hope I can 2uild upon the knowledge and experience that I have gained here and make a valua2le contri2ution towards there industry coning in "uture Divya %ripathi -BA567189671:; .oll o1 ,-./01..-0 BBDI%, (ucknow
6 STUDENT DECLARATION D!#"a Tr!$ah! student o" -BA at BBDI%- here 2y declare that the pro#ect work entitled <CHA$I$ %&CH'('$) * C+,%'-&. A/A.&&,, I HDFC BA!= is compiled and su2mitted under the guidance o" Dr.Pooja Bha!"a' H%a&' MBA' BBDNITM /hatever in"ormation "urnished in this pro#ect report is true to the 2est o" my knowledge1
8 PREFACE %his pro#ect is a part o" the academics carriculum re>uired "or the "ul"illment o" the two years "ull time programme, pursuing post graduate programme in <Ba2u Banarasi Das Institute o" %echnology * -anagement, (ucknow= %he pro#ect called summer training pro#ect was undertaken at HDFC BA! (I-I%&D1 %his pro#ect aimed at analy0ing the market potential o" HDFC BA! vending products with respect to its competitors %he study was carried out interacting closely with the sales team as well as distri2utors and dealers o" (+C!'/1 It also involved "ace to "ace interaction with di""erent customer and corporate individuals1 Academically the pro#ects provide a uni>ue opportunity to have an exposure to real li"e 2usiness environment and to have an insight into the management intricacies, thus helping learning to 2e more purpose "ull and meaning "ull 1 : TABLE OF CONTENT ,1o1 %'?IC ?age o1 11 Introduction '" C'-?A) @ 61 Company ?ro"ile A 81 Company ?er"ormance 16 :1 History 18 B1 ChairmanCs ?ro"ile 1B D1 Awards and Achievements 61 E1 ?roduct In"ormation 6: @1 .esearch -ethodology :B A1 .esearch Design :D 171 '2#ective o" the ,tudy :@ 111 Data Collection * Interpretation B8 161 Findings @: 181 Conclusion @D 1:1 ,uggestion * .ecommendation @E 1D1 (imitation @@ 1E1 Bi2liography @A B 1@1 Annexure A7 INTRODUCTION I)ro&78!o) o I)&!a) Ba)2!)4 %he Indian 2anking can 2e 2roadly categori0ed into nationali0ed 5government owned;, private 2anks and speciali0ed 2anking institutions1 %he .eserve Bank o" India acts a centrali0ed 2ody monitoring any discrepancies and shortcoming in the system1 ,ince the nationali0ation o" 2anks in 1ADA, the pu2lic sector 2anks or the nationali0ed 2anks have ac>uired a place o" prominence and has since then seen tremendous progress1 %he need to 2ecome highly customer "ocused has "orced the slow9moving pu2lic sector 2anks to adopt a "ast track approach1 %he unleashing o" products and services through the net has galvani0ed players at all levels o" the 2anking and "inancial institutions market grid to look anew at their existing port"olio o""ering1 %he Indian 2anking has "inally worked up to the competitive dynamics o" the Fnew3 Indian market and is addressing the relevant issues to take on the multi"arious challenges o" glo2ali0ation1 Banks that employ I% solutions are perceived to 2e F"uturistic3 and proactive players capa2le o" meeting the multi"arious re>uirements o" the large customer3s 2ase1 ?rivate Banks have 2een "ast on the uptake and are reorienting their strategies using the internet as a medium %he Internet has emerged as the new and challenging "rontier o" marketing with the conventional physical world tenets 2eing #ust as applica2le like in any other marketing medium1 D %he Indian 2anking has come "rom a long way "rom 2eing a sleepy 2usiness institution to a highly proactive and dynamic entity1 %his trans"ormation has 2een largely 2rought a2out 2y the large dose o" li2erali0ation and economic re"orms that allowed 2anks to &xplore new 2usiness opportunities rather than generating revenues "rom conventional streams 5i1e1 2orrowing and lending;1 %he 2anking in India is highly "ragmented with 87 2anking units contri2uting to almost B7G o" deposits and D7G o" advances1 Indian nationali0ed 2anks 52anks owned 2y the government; continue to 2ethe ma#or lenders in the economy due to their sheer si0e and penetrative networks which assures them high deposit mo2ili0ation1 %he .eserve Bank o" India acts as a centrali0ed 2ody monitoring any discrepancies and shortcoming in the system1 It is the "oremost monitoring 2ody in the Indian "inancial sector1 %he nationali0ed 2anks 5i1e1 government9owned 2anks; continue to dominate the Indian 2anking arena1 Industry estimates indicate that out o" 6E: commercial 2anks operating in India, 668 2anks are in the pu2lic sector and B1 are in the private sector1 %he private sector 2ank grid also includes 6: "oreign 2anks that have started their operations in India1 1 +nder the am2it o" the nationali0ed 2anks come the speciali0ed 2anking institutions1 %hese co9operatives, rural 2anks "ocus on areas o" agriculture, rural development, unlike commercial 2anks these co9operative 2anks do not lend on the 2asis o" a prime9lending rate1 %hey also have various tax sops 2ecause o" their holding pattern and lending structure and hence have lower overheads1 %his ena2les them to give a E marginally higher percentage on savings deposits1 -any o" these cooperative 2anks diversi"ied into speciali0ed areas 5catering to the vast retail audience; like car "inance, housing loans, truck "inance etc1 in order to keep pace with their pu2lic sector and private counterparts, the co9 operative 2anks too have invested heavily in in"ormation technology to o""er high9end computeri0ed 2anking services to its clients1 NEW GENERATION BANKING %he li2erali0e policy o" $overnment o" India permitted entry to private sector in the 2anking, the industry has witnessed the entry o" nine new generation private 2anks1 %he ma#or di""erentiating parameter that distinguishes these 2anks "rom all the other 2anks in the Indian 2anking is the level o" service that is o""ered to the customer1 Heri"y the "ocus has always 2een centered on the custom understanding his needs, preempting him and conse>uently delighting him with various con"igurations o" 2ene"its and a wide port"olio o" products and services1 %hese 2anks have generally 2een esta2lished 2y promoters o" repute or 2y Fhigh value3 domestic "inancial institutions1 %he popularity o" these 2anks can 2e gauged 2y the "act that in a short span o" time, these 2anks have gained considera2le customer con"idence and conse>uently have shown impressive growth rates1 %oday, the private 2anks corner almost "our per cent share o" the total share o" deposits1 -ost o" the 2anks in this category are concentrated in the high9growth ur2an areas in metros 5that account "or approximately E7G o" the total 2anking 2usiness;1 /ith e""iciency 2eing the ma#or "ocus, these 2anks have leveraged on their strengths and @ competencies vi01 -anagement, operational e""iciency and "lexi2ility and superior product positioning %he private 2anks with their "ocus on 2usiness and service port"olio have a reputation o" 2eing niche players in the industry1 A strategy that has allowed these 2anks to concentrate on "ew relia2le high net worth companies and individuals rather than cater to the mass market1 %hese well9chalked out integrates strategy plans have allowed most o" these 2anks to deliver superlative levels o" personali0ed services1 /ith the .eserve Bank o" India allowing these 2anks to operate E7G o" their 2usinesses in ur2an areas, this statutory re>uirement has translated into lower deposit mo2ili0ation costs and higher margins relative to pu2lic sector 2anks1 A I)ro&78!o) o r%a!* Ba)2!)4 Banking services o""ered to the general pu2lic, .etail 2anking services are a group o" "inancial services that includes installment loans, residential mortgages, e>uity credit loans, deposit services, and individual retirement accounts1 In contrast with /holesale Banking or corporate 2anking, retail 2anking is a high volume 2usiness with many service providers competing "or market share1 ,ome retail 2anking services, "or example, credit cards, are among the most pro"ita2le services o""ered 2y "inancial institutions1 M%a)!)4
<.etail Banking re"ers to the dealing o" commercial 2anks with individual customers, 2oth on lia2ilities and assets side o" the 2alance sheet "ixed, savings current account on the lia2ilities side, and mortgages, loans like personnel, auto, housing and educational on the assets side= .etail 2anking is the new mantra in the 2anking sector, net 2anking, phone 2anking, mo2ile 2anking, A%-3s and 2ill payments are the new 2u00 words that 2anks are using to lure customers
%oday much o" retail 2anking is streamlined through A%-3s or through virtual retail 2anking known as online 2anking, retail 2anking "ocuses strictly on consumer markets1 17 Across the glo2e, retail lending has 2een a spectacular in the commercial 2anking sector, Institution (oans is estimated to have accounted "or nearly one9"i"th o" all 2ank credit, Housing sector is experiencing a 2oom in its credit 1%he retail market has decisively got trans"ormed "rom a sellers market to 2uyers market .etail 2anking is 2ecoming an increasingly complex concept to de"ine1 /hile IpureI retail 2anking is generally conceived to 2e the provision o" mass market 2anking services to private individuals, it has 2een expanded over the years to include in many cases services provided to small9 and medium si0ed 2usinesses1 ,ome 2anks may also include their Iprivate 2ankingI 2usiness 5i1e1 services to high net worth individuals; in their de"inition o" retail 2anking1 %he advantages o" a retail "ranchise are numerousJ R%a!* 6a)2!)4 !) I)&!a In India, retail 2anking has always 2een prevalent in various "orms ever since the evolution o" 2anking1 Co9operative 2anks that have 2een existence in India "or over a century have always had retail thrust1 It is only since the mid nineties that the term retail 2anking has 2een used as a means o" rein"orcing a conscious "oray into this particular line o" 2usiness1 .etail 2anking today "or many 2anks is synonymous with mainstream 2anking, with vast sums o" money 2eing invested in creating and sustaining a retail 2rand, "urther supported 2y re>uisite technological and sta""ing support1 It is pertinent to ponder a2out the causes o" the shi"t 5or increase; o" "ocus towards the retail side1 11 .etail 2anking in India is not a new phenomenon has1 It always 2een prevalent in India in various "orms1 For the last "ew years it has 2ecome synonymous with mainstream 2anking "or many 2anks1 %he typical products o""ered in the Indian retail92anking segment are housing loans, Consumption loans "or purchase o" dura2les, auto loans, credit cards and educational loans1 %he loans are marketed under attractive 2rand names to di""erentiate the products o""ered 2y di""erent 2anks1 .etail lending has turned out to 2e a key pro"it driver "or 2anks within the retail segment4 the housing loans had the least gross asset impairment1 In "act, retailing make ample 2usiness sense in the 2anking sector1 Factors contri2uting to the growth o" retail 2usiness Th% ?o**o9!)4 ar% h% ?a8or3' 9h!8h 8o)r!67% o h% 4ro9h o? R%a!* 673!)%33 ,. Th% %8o)o(!8 $ro3$%r!" a)& h% 8o)3%B7%) !)8r%a3% !) $7r8ha3!)4 $o9%r ha#% 4!#%) a ?!**!$ o a 8o)37(%r 6oo(. :. Th% 8ha)4!)4 8o)37(%r &%(o4ra$h!83 !)&!8a% #a3 $o%)!a* For 4ro9h !) 8o)37($!o) 6oh B7a*!a!#%*" a)& B7a)!a!#%*" 16 -. Th% T%8h)o*o4!8a* !))o#a!o)3 r%*a!)4 o !)8r%a3!)4 73% o? 8r%&! C &%6! 8ar&3' ATM3' &!r%8 &%6!3 a)& $ho)% 6a)2!)4 ha3 8o)r!67%& o h% 4ro9h o? r%a!* 6a)2!)4 !) I)&!a 0. D%8*!)% !) !)%r%3 ra%3 ha#% a*3o 8o)r!67%& o h% 4ro9h o? r%a!* 8r%&! 6" 4%)%ra!)4 h% &%(a)& ?or 378h 8r%&! 'pportunities and challenges o" retail 2anking in India R%a!* 6a)2!)4 ha3 !((%)3% o$$or7)!!%3 !) a 4ro9!)4 %8o)o(" *!2% I)&!a. Th% r!3% o? h% I)&!a) (!&&*% 8*a33 !3 a) !($ora) 8o)r!67or" ?a8or !) h!3 r%4ar&. Th% $%r8%)a4% o? (!&&*% o h!4h;!)8o(% I)&!a) ho73%ho*&3 !3 %D$%8%& o 8o)!)7% r!3!)4. Th% "o7)4%r $o$7*a!o) )o o)*" 9!%*&3 !)8r%a3!)4 $7r8ha3!)4 $o9%r. B7 a3 ?ar a3 a8B7!r!)4 $%r3o)a* &%6 !3 8o)8%r)%&' h%" ar% $%rha$3 (or% 8o(?ora6*% ha) $r%#!o73 4%)%ra!o)3. I($ro#!)4 8o)37(%r $7r8ha3!)4 $o9%r' 8o7$*%& 9!h (or% *!6%ra* a!7&%3 o9ar& $%r3o)a* &%6' !3 8o)r!67!)4 o I)&!aE3 r%a!* 6a)2!)4 3%4(%). Th% 8o(6!)a!o) o? h% a6o#% ?a8or3 $ro(!3%3 3763a)!a* 4ro9h !) h% r%a!* 3%8or'. So(% o? h% 2%" $o*!8" !337%3 r%*%#a) o h% r%a!*; 6a)2!)4 3%8or ar%+ ?!)a)8!a* !)8*73!o)' r%3$o)3!6*% *%)&!)4' a)& a88%33 o ?!)a)8%' *o)4;%r( 3a#!)43' ?!)a)8!a* 8a$a6!*!"' 8o)37(%r $ro%8!o)' r%47*a!o) a)& ?!)a)8!a* 8r!(% $r%#%)!o). 18 R%a!* 6a)2!)4 !3 a 6a)2!)4 3%r#!8% ha !3 4%ar%& $r!(ar!*" o9ar& !)&!#!&7a* 8o)37(%r3. R%a!* 6a)2!)4 !)#o*#%3 9o a3$%83 !.%. B73!)%33 Ba)2!)4 9h%r% ra)3a8!o)3 ar% 8arr!%& o7 9!h !)&73r!%3 a)& or4a)!5a!o)3' 9h%r% a3 a UTI !)&!#!&7a* 873o(%r3 ar% h% %)& 73%r3 o 9ho( h% I)3!7!o) Loa)3 378h a3 $%r3o)a*' a7o a)& ho73!)4 *oa)3 ar% $ro#!&%& %ypes o" .etail Banks 1; Commercial 2ank has two possi2le meaningsJ Commercial 2ank is the term used "or a normal 2ank to distinguish it "rom an investment 2ank1 Commercial 2ank can also re"er to a 2ank or a division o" a 2ank that mostly deals with deposits and loans "rom corporations or large 2usinesses, 6; Community development 2ank are regulated 2anks that provide "inancial services and credit to underserved markets or populations1 8; ?rivate Banks manage the assets o" high net worth individuals1 :; ,avings 2ank accepts savings deposits1 o ?ostal savings 2anks are savings 2anks associated with national postal systems1 1: INTRODUCTION OF E;BANKING %he world is changing at a staggering rate and technology is considered to 2e the key driver "or these changes around us1 An analysis o" technology and its uses show that it has permeated in almost every aspect o" our li"e1 -any activities are handled electronically due to the acceptance o" in"ormation technology at home as well as at workplace1 ,lowly 2ut steadily, the Indian customer is moving towards the internet 2anking1 %he A%- and the et transactions are 2ecoming popular1 But the customer is clear on one thing that he wants net92anking to 2e simple and the 2anking sector is matching its steps to the march o" technology1 &92anking or 'nline 2anking is a generic term "or the delivery o" 2anking services and products through the electronic channels such as the telephone, the internet, the cell phone etc1 %he concept and scope o" e92anking is still evolving1 It "acilitates an e""ective payment and accounting system there2y enhancing the speed o" delivery o" 2anking services considera2ly1 ,everal initiatives have 2een taken 2y the $overnment o" India as well as the .BI 5.eserve Bank o" India;4 have "acilitated the development o" e92anking in India1 %he government o" India enacted the I% Act, 6777, which provides legal recognition to electronic transactions and other means o" electronic commerce1 %he .BI has 2een preparing to upgrade itsel" as regulator and supervisor o" the technologically dominated "inancial system1 It issued guidelines on the risks and controls in computer and telecommunication systems to all 2anks, advising them to evaluate the risks inherent in the systems and put in place ade>uate control mechanisms to address these risks1 ,., WHAT IS E;BANKINGF 1B &lectronic 2anking is one o" the truly widespread avatars o" &9commerce the world over1 Harious authors de"ine &9Banking di""erently 2ut the most de"inition depicting the meaning and "eatures o" &9Banking are as "ollowsJ 11 Banking is a com2ination o" two, &lectronic technology and Banking1 61 &lectronic Banking is a process 2y which a customer per"orms 2anking %ransactions electronically without visiting a 2rick9and9mortar institutions1 81 &9Banking denotes the provision o" 2anking and related service through &xtensive use o" in"ormation technology without direct recourse to the 2ank 2y the customer1 NEED FOR E;BANKING 'ne has to approach the 2ranch in person, to withdraw cash or deposit a che>ue or re>uest a statement o" accounts1 In true Internet 2anking, any in>uiry or transaction is processed online without any re"erence to the 2ranch 5anywhere 2anking; at any time1 ?roviding Internet 2anking is increasingly 2ecoming a Ineed to haveI than a Inice to haveI service1 %he net 2anking, thus, now is more o" a norm rather than an exception in many developed countries due to the "act that it is the cheapest way o" providing 2anking services1 Banks have traditionally 2een in the "ore"ront o" harnessing technology to improve their products, services and e""iciency1 %hey have, over a long time, 2een using electronic and telecommunication networks "or delivering a wide range o" value added products and services1 %he delivery channels include direct dial K up connections, private networks, pu2lic networks etc and the devices include telephone, ?ersonal Computers including the Automated %eller -achines, etc1 /ith the popularity o" ?Cs, easy access to Internet and /orld /ide /e2 5///;, Internet is 1D increasingly used 2y 2anks as a channel "or receiving instructions and delivering their products and services to their customers1 %his "orm o" 2anking is generally re"erred to as Internet Banking, although the range o" products and services o""ered 2y di""erent 2anks vary widely 2oth in their content and sophistication1 HISTORY OF E; BANKING %he precursor "or the modern home online 2anking services were the distance 2anking services over electronic media "rom the early C@7s1 %he term online 2ecame popular in the late C@7s and re"ers to the use o" a terminal, key2oard and %H 5or monitor; to access the 2anking system using a phone line1 FHome 2anking3 can also re"er to the use o" a numeric keypad to send tones down a phone line with instructions to the 2ank1 'nline services started in ew )ork in 1A@1 when "our o" the city3s ma#or 2anks 5Citi2ank, Chase -anhattan, Chemical and -anu"acturers Hanover; o""ered home 2anking services using the videotex system1 Because o" the commercial "ailure o" videotex these 2anking services never 2ecame popular except in France where the use o" videotex 5-initel; was su2sidised 2y the telecom provider and the +!, where the ?restel system was used1 %he +!3s "irst home online 2anking services were set up 2y the ottingham Building ,ociety 5B,; in 1A@8 5IHistory o" the ottinghamI .etrieved on 677E9169 1:1;1 %he system used was 2ased on the +!Cs ?restel system and used a computer, such as the BBC -icro, or key2oard 5%andata %d1:77; connected to the telephone system and television set1 %he system 5known as CHomelinkC; allowed on9line viewing o" statements, 2ank trans"ers and 2ill payments1 In order to make 2ank trans"ers and 2ill payments, a written instruction giving details o" the intended recipient had to 2e sent to the B, 1E who set the details up on the Homelink system1 %ypical recipients were gas, electricity and telephone companies and accounts with other 2anks1 Details o" payments to 2e made were input into the B, system 2y the account holder via ?restel1 A che>ue was then sent 2y B, to the payee and an advice giving details o" the payment was sent to the account holder1 BAC, was later used to trans"er the payment directly1 ,tan"ord Federal Credit +nion was the "irst "inancial institution to o""er online internet 2anking services to all o" its mem2ers in 'ct, 1AA:1 EAOLUTION OF E;BANKING %he story o" technology in 2anking started with the use o" punched card machines like Accounting -achines or (edger ?osting -achines1 %he use o" technology, at that time, was limited to keeping 2ooks o" the 2ank1 It "urther developed with the 2irth o" online real time system and vast improvement in telecommunications during late 1AE73s and 1A@73s1it resulted in a revolution in the "ield o" 2anking with <convenience 2anking= as a 2u00word1 %hrough Convenience 2anking, the 2ank is carried to the doorstep o" the customer1 %he 1AA73s saw the 2irth o" distri2uted computing technologies and .elational Data Base -anagement ,ystem1 %he 2anking industry was simply waiting "or these technologies1 ow with distri2ution technologies, one could con"igure dedicated machines called "ront9end machines "or customer service and risk control while communication in the 2atch mode without hampering the response time on the "rontend machine1 Tra&!!o)a* 6a)2!)4 $unpowder ?ersonali0ed services %ime consuming 1@ (imited access A!r7a* or E;6a)2!)4 uclear charged .eal time transactions, Integrated plat"orm, All time access Intense competition has "orced 2anks to rethink the way they operated their 2usiness1 %hey had to reinvent and improve their products and services to make them more 2ene"icial and cost e""ective1 %echnology in the "orm o" &9 2anking has made it possi2le to "ind alternate 2anking practices at lower costs1 -ore and more people are using electronic 2anking products and services 2ecause large section o" the 2anks "uture customer 2ase will 2e made up o" computer literate customer, the 2anks must 2e a2le to o""er these customer products and services that allow them to do their 2anking 2y electronic means1 I" they "ail to do this will, simply, not survive1 ew products and services are emerging that are set to change the way we look at money and the monetary system1 ,.: USAGE OF E;BANKING %he rise in the e9commerce and the use o" internet in its "acilitation along with the enhanced online security o" transactions and sensitive in"ormation has 2een the core reason "or the penetration o" online 2anking in everyday li"e1 According to the latest o""icial "igures "rom the o""ice o" ational ,tatistics 5 ', 677E; indicate that su2scriptions to the internet has grown more than B7G "rom 6B million in 677B to :B million in 677E in India1 It has 1A also 2een estimated that D7G o" the population in India use internet in their daily lives1 %he "undamental shi"t towards the involvement o" the customer in the "inancial service provision with the help o" the technology especially internet has helped to reduce the costs o" "inancial institutions as well as helped client to use the service at anytime and "rom virtually anywhere with access to an internet connection1 %he use o" electronic 2anking has removed personnel that "acilitate the transactions and has placed additional responsi2ilities on the customers to transact with the service1 %he computeri0ation o" the 2anking operations has made maximum impact onJ9 1; Internal Accounting ,ystem 6; Customer service 8; Diversi"ication o" system INTERNET BANKING AERSUS TRADITIONAL BANKING In spite o" so many "acilities that Internet 2anking o""ers us, we still seem to trust our traditional method o" 2anking and is reluctant to use online 2anking1 But here are "ew cases where Internet 2anking will turn out to 2e a 2etter option in terms o" saving your money1 C,top paymentC done through Internet 2anking will not cost any extra "ees 2ut when done through the 2ranch, the 2ank may charge you .s B7 per che>ue plus the service tax1 %hrough Internet 2anking, you can check your transactions at any time o" the day, and as many times as you want to1 'n the other hand, in a traditional method, you get >uarterly statements "rom the 2ank and i" you re>uest "or a statement at your re>uired time, it may turn out to 2e an expensive a""air1 %he 2ranch may charge you .s 6B per page, which includes only 87 transactions1 -oreover, the 2ank 2ranch would take eight 67 days to deliver it at your doorstep1 I" the "und trans"er has to 2e made outstation, where the 2ank does not have a 2ranch, the 2ank would demand outstation charges1 /hereas with the help o" online 2anking, it will 2e a2solutely "ree "or you1 As per the Internet and -o2ile Association o" IndiaCs report on online 2anking 677D, I%here are many advantages o" online 2anking1 It is convenient it isnCt 2ound 2y operational timings, there are no geographical 2arriers and the services can 2e o""ered at a miniscule cost1I ,.- DIAGRAM OF E;BANKING SYSTEM E;BANKING PRODUCTS 61 A7o(a%& T%**%r Ma8h!)% >ATM;J %hese are cash dispensing machine, which are "re>uently seen at 2anks and other locations such as shopping centers and 2uilding societies1 %heir main purpose is to allow customer to draw cash at any time and to provide 2anking services where it would not have 2een via2le to open another 2ranch e1g1 on university campus1 An a7o(a%& %**%r (a8h!)% or a7o(a!8 %**%r (a8h!)% 5ATM; is a computeri0ed telecommunications device that provides a "inancial institutionCs customers a method o" "inancialL transactions in a pu2lic space without the need "or a human clerk or 2ank teller1 'n most modern A%-s, the customer identi"ies him or hersel" 2y inserting a plastic A%- card with a magnetic stripe or a plastic smartcard with a chip that contains his or her card num2er and some security in"ormation, such as an expiration date or CHC 5CHH;1 ,ecurity is provided 2y the customer entering a personal identi"ication num2er 5?I;1+sing an A%-, customers can access their 2ank accounts in order to make cash withdrawals 5or credit card cash advances; and check their account 2alances1 -any A%-s also allow people to deposit cash or checks, trans"er money 2etween their 2ank accounts, pay 2ills, or purchase goods and services1,ome o" the advantages o" A%- to customers areJ9 M A2ility to draw cash a"ter normal 2anking hours M Nuicker than normal cashier service M Complete security as only the card holder knows the ?I M Does not #ust operate as a medium o" o2taining cash1 M Customer can sometimes use the services o" other 2ank A%-3s1 T%*% 6a)2!)4 or Pho)% Ba)2!)4+ %elephone 2anking is relatively new &lectronic Banking ?roduct1 However it is "astly 2ecoming one o" the most popular products1 Customer can per"orm a num2er o" transactions "rom the 66 convenience o" their own home or o""ice4 in "act "rom anywhere they have access to phone1 Customers can do "ollowingJ9 M Check 2alances and statement in"ormation M %rans"er "unds "rom one account to another M ?ay certain 2ills M 'rder statements or che>ue 2ooks M Demand dra"t re>uest %his "acility is availa2le with the help o" Hoice .esponse ,ystem 5H.,;1 %his system 2asically, accepts only %'& dialed input1 (ike the A%- customer has to "ollow particular process, initially account num2er and telephone ?I are "ed "or the process to start1 Also the H., system provides the users within additional "acilities such as changing existing password with the new desired, in"ormation a2out new products, current interest rates etc1 Mo6!*% Ba)2!)4+ -o2ile 2anking comes in as a part o" the 2anks initiative to o""er multiple channels 2anking providing convenience "or its customer1 A versatile multi"unctional, "ree service that is accessi2le and viewa2le on the monitor o" mo2ile phone1 -o2ile phones are playing great role in Indian 2anking9 2oth directly and indirectly1 %hey are 2eing used 2oth as 2anking and other channels1 I)%r)% Ba)2!)4+ %he advent o" the Internet and the popularity o" personal computers presented 2oth an opportunity and a challenge "or the 2anking industry1 For years, "inancial institutions have used power"ul computer networks to automate million o" daily transactions4 today, o"ten the only paper record is the customer3s receipt at the point o" sale1 ow that their customers are connected to the Internet via personal computers, 2anks envision similar advantages 2y adopting those same internal electronic processes to home use1 Banks view online 2anking as a power"ul <value added= tool to attract and retain new customers while 68 helping to eliminate costly paper handling and teller interactions in an increasingly competitive 2anking environment1 In India "irst one to move into this area was HDFC Bank1 %hey started we2 2ased 2anking as early as august 1AAE1 ,.0 TYPES OF INTERNET BANKING OR E;BANKING +nderstanding the various types o" Internet 2anking will help examiners assess the risks involved1 Currently, the "ollowing three 2asic kinds o" Internet 2anking are 2eing employed in the marketplace1 I)?or(a!o)a*; this is the 2asic level o" Internet 2anking1 %ypically, the 2ank has marketing in"ormation a2out the 2ank3s products and services on a standalone server1 %he risk is relatively low, as in"ormational systems typically have no path 2etween the server and the 2ank3s internal network1 %his level o" Internet 2anking can 2e provided 2y the 2anks or outsourced1 /hile the risk to a 2ank is relatively low, the server or we2 site may 2e vulnera2le to alteration1 Appropriate controls there"ore must 2e in place to prevent unauthori0ed alterations to the 2ank3s server or we2 site1 Co((7)!8a!#%; this type o" Internet 2anking systems and the customer1 %he interaction 2etween the 2ank3s system and the customer1 %he interaction may 2e limited to electronic mail, account en>uiry, loan applications, or static "ile updates 5name and address change;1 Because these servers may have a path to the 2ank3s internal networks, the risk is higher with this con"iguration than with in"ormational systems1 Appropriate controls need to 2e in the place to prevent, monitor, and alert management o" any 6: unauthori0ed attempt to access the 2ank3s internal networks and computer systems1 Hirus controls also 2ecome much more critical in this environment1 Tra)3a8!o)a*; this level o" Internet 2anking allows customers to execute transactions1 ,ince a path typically exists 2etween the server and the 2ank or outsourcer3s internal network, this is the highest risk architecture and must have the strongest controls1 Customer transactions can include accessing accounts, paying 2ills, trans"erring "unds etc1 FEATURES OF E;BANKING Tra)3a8!o)a*+ 5e1g1 per"orming a "inancial transaction such as an account to account trans"er, paying a 2ill or applications like applying "or a loan, new account, etc1; M &lectronic Bill ?resentment and ?ayment 5&B??; M Funds trans"er 2etween customers own checking and savings accounts, or to another customers account1 M Investment purchase or sale1 M (oan application and transactions such as repayments1 No);ra)3a8!o)a*+ 5e1g1 online statements, Check links, Chat, Co92rowsing etc1; Financial Institution Administration9 "eatures allowing "inancial institutions to manage the online experience o" their end users1 A,?O Hosting Administration K "eatures allowing the hosting company to administer the solution across "inancial institution1 ,./ ADAANTAGE & DISADAANTAGE OF E ; BANKING 6B ADAANTAGES OF E;BANKING+; M Co)#%)!%)8%9 +nlike your corner 2ank, online 2anking sites never close4 they3re availa2le 6: hours a day, seven days a week, and they3re only a mouse click away1 /ith pressures on time and longer travelling periods, more and more people "ind it tiresome waiting in >ueues1 ?eople want "lexi2ility, and Internet 2anking o""ers #ust that1 M U6!B7!"9 I" you3re out o" state or even out o" the country when a money pro2lem arises, you can log on instantly to your online 2ank and take care o" 2usiness, 6:LE1 M Tra)3a8!o) 3$%%&9 'nline 2ank sites generally execute and con"irm transactions at or >uicker than A%- processing speeds1 M E??!8!%)8";)ou can access and manage all o" your 2ank accounts, including I.A3s, CDs, even securities, "rom one secure site1 M E??%8!#%)%33; -any online 2anking sites now o""er sophisticated tools, including account aggregation, stock >uotes, rate alert and port"olio managing program to help you manage all o" your assets more e""ectively1 -ost are also compati2le with money managing programs such as >uicken and -icroso"t money1 M Ch%a$%r a*%r)a!#%J 9 /ith increasing competition, it seems to 2e the cost "actor that is driving 2anks to o""er the "acility1 %he Internet is still a very cheap alternative to opening a physical 2ranch, and most o" the push seems to 2e coming "rom the supply side1 %he costs o" a 2anking service through the Internet "orm a "raction o" costs through conventional methods1 M Fro( 3)o6 #a*7% o )%8%33!"J; A couple o" years ago, there was a 2elie" even among 2ankers that customers opening new accounts wanted the online 2anking "acility, #ust to I"eel goodI and very "ew o" them actually used the services1 %oday, 2ankers 2elieve that the trend "rom Pnice to haveC is 6D changing to Pneed to haveC1 %he Isno2 valueI o" 2anking with an organisation that could o""er service on the Internet has given way to a genuine necessity, he "eels1 IIt all depends on how 2usy a person is1I DISADAANTAGES OF INTERNET BANKING M Sar;7$ (a" a2% !(%9In order to register "or your 2ank3s online program, you will pro2a2ly have to provide ID and sign a "orm at a 2ank 2ranch1 I" you and your spouse wish to view and manage their assets together online, one o" you may have to sign a dura2le power o" attorney 2e"ore the 2ank will display all o" your holdings together1 M L%ar)!)4 87r#%39 Banking sites can 2e di""icult to navigate at "irst1 ?lan to invest some time andLor read the tutorials in order to 2ecome com"orta2le in your virtual lo22y1 M Ba)2 3!% 8ha)4%3; &ven the largest 2anks periodically upgrade their online programs, adding new "eatures in un"amiliar places1 In some cases, you may have to re9enter account in"ormation1 ,.G HOW E;BANKING CAN EASE YOUR LIFE Indian 2anks are trying to make your li"e easier1 ot #ust 2ill payment, you can make investments, shop or 2uy tickets and plan a holiday at your "ingertips1 In "act, sources "rom HDFC Bank tell us, I'ur Internet 2anking 2ase has 2een growing at an exponential pace over the last "ew years1 Currently around E@ per cent o" the 2ankCs customer 2ase is registered "or Internet 2anking1I %o get started, all you need is a computer with a modem or other dial9up device, a checking account with a 2ank that o""ers online 6E service and the patience to complete a2out a one9page application9 which can usually 2e done online1 )ou can avail the "ollowing services1 ,. B!** $a"(%) 3%r#!8%J &ach 2ank has tie9ups with various utility companies, service providers and insurance companies, across the country1 It "acilitates the payment o" electricity and telephone 2ills, mo2ile phone, credit card and insurance premium 2ills1 %o pay 2ills, a simple one9time registration "or each 2iller is to 2e completed1 ,tanding instructions can 2e set, online to pay recurring 2ills, automatically1 'ne9time standing instruction will ensure that 2ill payments do not get delayed due to lack o" time1 -ost interestingly, the 2ank does not charge customers "or online 2ill payment1 :. F7)& ra)3?%rJ Any amount can 2e trans"erred "rom one account to another o" the same or any another 2ank1 Customers can send money anywhere in India1 ?ayee3s account num2er, his 2ank and the 2ranch is needed to 2e mentioned a"ter logging in the account1 %he trans"er will take place in a day or so, whereas in a traditional method, it takes a2out three working days1 HDFC Bank says that online 2ill payment service and "und trans"er "acility have 2een their most popular online services1 -. Cr%&! 8ar& 873o(%r3J Credit card users have a lot in store1 /ith Internet 2anking, customers can not only pay their credit card 2ills online 2ut also get a loan on their cards1 ot #ust this, they can also apply "or an additional card, re>uest a credit line increase and $od "or2id i" you lose your credit card, you can report lost card online1 0. Ra!*9a" $a33J %his is something that would interest all the aam #anta1 Indian .ailways has tied up with HDFC 2ank and you can now make your railway pass "or local trains online1 %he pass will 2e delivered to you at your 6@ doorstep1 But the "acility is limited to -um2ai, %hane, asik, ,urat and ?une1 %he 2ank would #ust charge .s 17 Q 1616: percent o" service tax1 /. I)#%3!)4 hro74h I)%r)% 6a)2!)4J 'pening a "ixed deposit account cannot get easier than this1 An FD can 2e opened online through "unds trans"er1 'nline 2anking can also 2e a great "riend "or la0y investors1 ow investors with interlinked demat account and 2ank account can easily trade in the stock market and the amount will 2e automatically de2ited "rom their respective 2ank accounts and the shares will 2e credited in their demat account1 -oreover, some 2anks even give the "acility to purchase mutual "unds directly "rom the online 2anking system1 ,o it removes the worry a2out "illing those 2ig "orms "or mutual "unds, they will now 2e #ust a "ew clicks away1 owadays, most leading 2anks o""er 2oth online 2anking and demat account1 However i" the customer have there demat account with independent share 2rokers, then need to sign a special "orm, which will link your two accounts1 G. R%8har4!)4 "o7r $r%$a!& $ho)%J ow there is no need to rush to the vendor to recharge the prepaid phone, every time the talk time runs out1 Rust top9up the prepaid mo2ile cards 2y logging in to Internet 2anking1 By #ust selecting the operatorCs name, entering the mo2ile num2er and the amount "or recharge, the phone is again 2ack in action within "ew minutes1 1. Sho$$!)4 a "o7r ?!)4%r!$3J (eading 2anks have tie ups with various shopping we2sites1 /ith a range o" all kind o" products, one can shop online and the payment is also made conveniently through the account1 'ne can also 2uy railway and air tickets through Internet 2anking1 6A CHANGING TECHNOLOGIES ELECTRONIC BANKING; HDFC BANK %he technologies areJ9 %elephone 2anking -o2ile 2anking IH. A%- &F% AF% TELEPHONE BANKING /hen 2anking and "inancial services are delivered to the customer o" a 2ank through the medium o" telephone is called as telephone1 It uses AH.5automated voice response; In this technology a customer uses the tone9phone to send digiti0ed data messages to the system in order to activate a particular service1 the system contains so"tware to recogni0e the toneOword1 MOBILE BANKING It re"ers to the 2anking activity that are carried out on mo2ile phone1 Current -o2ile Banking ApplicationsJ o ,-, Banking o /A? Banking o ,%! 5,im %oolkit; Banking 87 IAR Interactive Hoice .esponse 5IH.; is a so"tware application that accepts a com2ination o" voice telephone input and touch9tone keypad selection and provides appropriate responses in the "orm o" voice IH. has come into our li"e at the 2eginnings o" A73s1 First step in %elephone Banking ?eak transaction volume in salary payment days "or 2alance in>uiry Integrated with A%- system ATM>AUTOMATED TELLER MACHINE@ 'n most modern A%-s, the customer is identi"ied 2y inserting a plastic A%- card with a magnetic stripe or a plastic smart card with a chip, that contains a uni>ue card num2er and some security in"ormation such as an expiration date or CHHC 5CHH;1 Authentication is provided 2y the customer entering a personal identi"ication num2er 5?I;1 +sing an A%-, customers can access their 2ank accounts in order to make cash withdrawals, credit card cash advances, and check their account 2alances as well as purchase prepaid cellphone credit1 ELECTRONIC FUND TRANSFER &lectronic Funds %rans"er 5&F%; is a system o" trans"erring money "rom one 2ank account directly to another without any paper money changing hands1 'ne o" the most widely9used 81 &F% programs is Direct Deposit, in which payroll is deposited straight into an employeeCs 2ank account1 &F% is sa"e, secure, e""icient, and less expensive than paper check payments and collections1 AUTOMATED FUND TRANSFER %he automatic "unds trans"er is a "inancial transaction that ensures "unds are sent and received on schedule without the need "or human intervention1 SECURITY MEASURES %here exist two di""erent security methods "or online 2anking1 11 %he ?IO%A system where the ?I represents a password, used "or the login and %As representing one9time passwords to authenticate transactions1 %As can 2e distri2uted in di""erent ways, a1 the most popular one is to send a list o" %As to the online 2anking user 2y postal letter1 %he most secure way o" using %As is to generate them 2y need using a security token1 %hese token generated %As depend on the time and a uni>ue secret, stored in the security token 5this is called two9"actor authentication or 6FA;1 +sually online 2anking with ?IO%A is done via a we2 2rowser using ,,( secured connections, so that there is no additional encryption needed1 21 Another way to provide %As to an online 2anking user, is to send the %A o" the current 2ank transaction to the userCs 5$,-; mo2ile phone via ,-,1 %he ,-, text usually >uotes the transaction amount and details, the %A is only valid "or a short period o" time1 86 &specially in $ermany and Austria, many 2anks have adapted this I,-, %AI service as it is considered as very secure1 61 ,ignature 2ased online 2anking where all transactions are signed and encrypted digitally1 %he !eys "or the signature generation and encryption can 2e stored on smartcards or any memory medium, depending on the concrete implementation1 COUNTER MEASURES %here exist several countermeasures which try to avoid attacks1 11 D!4!a* 8%r!?!8a%3 are used against phishing and pharming, the use o" class98 card readers is a measure to avoid manipulation o" transactions 2y the so"tware in signature 2ased online 2anking variants1 61 %o protect their systems against %ro#an horses, users should use #!r73 38a))%r3 and 2e care"ul with downloaded so"tware or e9mail attachments 88 ARCHITECTURE In the internet architecture there is a /&B ,&.H&.1 %o the we2 server the BA! ,&.H&. is connected1 Banks access the customer data2ase and then get connected to the we2 server "or the transactions1 %he we2 8: server is connected to the internet1 Firewalls are used "or the protection1 MAIN CONCERNS IN INTERNET BANKING In a survey conducted 2y the 'nline Banking Association, mem2er institutions rated security as the most important issue o" online 2anking1 %here is a dual re>uirement to protect customersC privacy and protect against "raud1 Banking ,ecurelyJ 'nline Banking via the /orld /ide /e2 provides an overview o" Internet commerce and how one company handles secure 2anking "or its "inancial institution clients and their customers1 ,ome 2asic in"ormation on the transmission o" con"idential data is presented in ,ecurity and &ncryption on the /e21 ?C -aga0ine 'nline also o""ers a primerJ How &ncryption /orks1 A multi9layered security architecture comprising "irewalls, "iltering routers, encryption and digital certi"ication ensures that your account in"ormation is protected "rom unauthorised accessJ Firewalls and "iltering routers ensure that only the legitimate Internet users are allowed to access the system1 &ncryption techni>ues used 2y the 2ank 5including the sophisticated pu2lic key encryption; would ensure that privacy o" data "lowing 2etween the 2rowser and the In"inity system is protected1 Digital certi"ication procedures provide the assurance that the data you receive is "rom the In"inity system1 8B ADAANTAGES OF INTERNET BANKING 11B&&FI%, F'. BA!, (arge customer coverage (ower cast o" operation International promotion o" products and services Increasing customer satis"action and providing personali0ed relationship with customers1 61 B&&FI%, F'. ,-A(( %' -&DI+- B+,I&,, to run its operations more e""ectively lower cost than traditional "inancial management mechanisms1 81 B&&FI%, F'. C+,%'-&., Convenience96: hrs a day and E days a week Cost9 reducing trans"er "ees ,peed9 "aster circulation o" assets Competitiveness9"ostering competition in "inancial market1 Communication9 communicate easily 8D &nvironmental9a2olishing the uses o" paper DISADAANTAGES OF INTERNET BANKING 8E I)%r)% 6a)2!)4 3%r#!8%3 $ro#!&% a )7(6%r o? 6%)%?!3 o 8o)37(%r3. D%3$!% h% 4ro9!)4 $o$7*ar!" o? !)%r)% 6a)2!)4' ! 8a))o 6% &%)!%& ha 3o(% $%o$*% 3!** r%(a!) h%3!a) &o!)4 ra)3a8!o)3 o)*!)% %3$%8!a**" 9h%r% (o)%" !3 8o)8%r)%&. So(% o? h% &!3a&#a)a4%3 ar% +; ,. I($%r3o)a*.; Do!)4 ra)3a8!o)3 o) h% !)%r)% 8a) 6% #%r" !($%r3o)a*. I) oh%r 9or&3' "o7 o)*" &o 673!)%33 9!h h% 73% o? a 8o($7%r. No !)&!#!&7a* o r%8%!#% a)& 8h%82 "o7r (o)%" or 8orr%8 3o(% 9ro)4 !)?or(a!o) ha "o7 (!4h ha#% 9r!%) o) a 8%ra!) ?or(. A)& 3o ?or $%o$*% 8o(?ora6*% &%a*!)4 9!h r%a* $%o$*% 9ho $ro#!&% $%r3o)a*!5%& 3%r#!8%3 a)& 73!)4 $a$%r a)& (o)%"' !)%r)% 6a)2!)4 !3 )o !&%a*. :. La82 o? r73; Ma)" $%o$*% 3!** &o)E r73 h% !)%r)%. For h% )%9 73%r3 9ho ha#% $%r?or(%& ?!)a)8!a* ra)3a8!o)3 ?or o)*" a ?%9 !(%3' h%" (a" 3!** ha#% h!3 &o76 9h%h%r or )o h%" &!& h% r!4h h!)4 378h a3 8*!82%& h% r!4h 67o) a)& 3o o). Th%" 8a) o)*" 6% 8o(?ora6*% o)8% h%" $r!) h% ra)3a8!o) r%8%!$ a)& h% ra)3a8!o) a$$%ar%& o) h% 6a)2 3a%(%). -. D!??!87* ?or ?!r3 !(%r3; For a ?!r3 !(% 73%r' )a#!4a!)4 hro74h a 9%63!% o? a) !)%r)% 6a)2 (a" 6% har& a)& (a" a2% 3o(% !(%. O$%)!)4 a) a88o7) 8o7*& a*3o a2% !(% a3 3o(% 3!%3 a32 ?or )7(%ro73 $%r3o)a* &%a!*3 !)8*7&!)4 a $hoo !&%)!?!8a!o) 9h!8h 8a) !)8o)#%)!%)8% h% $o%)!a* 873o(%r. B%8a73% o? h!3 8o($*%D!"' h%" (a" 6% &!38o7ra4%& o 73% h!3 !)%r)% 6a)2!)4 3%r#!8%. T7or!a*3 a)& *!#% 873o(%r 37$$or (a" 6% $ro#!&%&' ho74h' o h%*$ h% 8*!%) !) h!3 or h%r )%%&%& a323 3o !E3 6%3 o a2% h% !(% o 2)o9 h% #!r7a* 8@ %)#!ro)(%). 0. S%87r!" ?ra7&.; Ma)" $%o$*% 3h" a9a" ?ro( !)%r)% 6a)2!)4 6%8a73% o? h% 3%87r!" hr%a. Th%" 8a)E h%*$ 67 9orr" a6o7 h!3 a3$%8 9ha 9!h )%93 o) ?ra7&7*%) 6a)2 ra)3a8!o)3 ha $o$ 7$ %#%r" )o9 a)& h%). Ho9%#%r' h!3 3ho7*& )o 6% a $ro6*%( a3 6a)23 ha $ro#!&% !)%r)% 6a)2!)4 3%r#!8%3 $r!or!!5% 3%87r!" a6o#% a)"h!)4 %*3%. S!)8% h%" #a*7% h%!r 873o(%r3' h%" a*9a"3 73% h% (o3 a&#a)8%& 3%87r!" %8h)o*o4" !) $ro%8!)4 h%!r 9%63!%3. /. Ba)2 3!% 8ha)4%3; Mo3 6a)23 7$4ra&% h%!r o)*!)% $ro4ra(3 o) a $%r!o&!8 6a3!3 3o(%!(%3 a&&!)4 )%9 ?%a7r%3 a)& $ro&783. Wh%) h!3 ha$$%)3' h% 6a)2 (a" a32 873o(%r3 o r%;%)%r a88o7) !)?or(a!o) 9h!8h 8a) 6% a 8a73% o? 9orr". G. A88%33!6!*!"9 I" the Internet goes down in your area or the area o" the 2anking o""ice, you will 2e una2le to access your accounts1 %his includes 2eing una2le to withdraw money "rom A%-s or to use your de2it card1 TIPS TO AAOID INTERNET BANKING FRAUDS Th% #ar!o73 9a"3 o a#o!& !)%r6a)2!)4 ?ra7&3 ar%+; ,. Ph!3h!)4 A personCs personal details are o2tained 2y "raudsters posing as 2ankers, who "loat a site similar to that o" the personCs 2ank1 %hey are asked to provide all personal in"ormation a2out themselves and their account to the 2ank on the pretext o" data2ase upgradation1 %he num2er and password are then 8A used to carry out transactions on their 2ehal" without their knowledge1 :. Ha82!)4 Here, personal data is stolen through hacking1 %he "raudster needs to 2e an adept cy2er criminal who can steal in"ormation stored or transacted in any computer1 ,ometimes, a spyware is installed in computer to gain access to all "iles1 -. S%87r!)4 "o7r a88o7) Here are some simple tips to prevent you "rom "alling into the trap o" cy2er criminals1 .emem2er, a simple ignorance or oversight can make a huge dent in your hard9earned savings1 Avoid online 2anking on unsecured wi"i systems and operate only "rom ?Cs at home1 ever reveal password to anyone1 Do not even write it on a piece o" paper on diary1 Rust memorise it1 It should 2e alphanemeric and change it "re>uently1 ever reply to >ueries "rom 2ank online a2out account or personal details1 %he personal in"ormation should not 2e kept in a pu2lic computer or in emails1 0. Ch%82 3!%3 Ur* Always check the +.( o" your 2ankCs we2 site1 Fraudsters can lure you to enter your user ID and password at a "ake we2site that resem2les your 2ank1 I" you see anything other than the 2ankCs genuine +.(, it has to 2e "ake1 ever enter your user ID or password or such sensitive in"ormation without ascertaining that you are on the right we2site1 Always type the /e2 address o" your 2ank into the 2rowser address space1 ever click on the link in the email1 :7 /. F7**;$roo? $a339or& Change your online 2anking password at regular intervals1 Also, avoid easy9to9guess passwords, like "irst names, 2irthdays, kidCs or spouseCs name and telephone num2ers1 %ry to have an alpha9numeric password, one that com2ines alpha2ets and num2ers1 I" you have several 2ank accounts, never use the same online 2anking password "or all1 ever select the option on 2rowser that stores or retains user name and password1 As it can easily 2e cracked 2y cy2er criminals1 Also, never paste your password, always type it in1 %his little amount o" P"inger exerciseC will go a long way in sa"ety1 G. A*9a"3 8h%82 E*a3 *o44%&E -ost 2anks have a Clast logged inC panel on their we2sites1 I" your 2ank has it, check the panel whenever you log in1 I" you notice irregularities 5like you are logging in a"ter two days, 2ut the panel says you logged in that morningS;, report the matter immediately to your 2ank and change your password right away1 Always log out when you exit the online 2anking portal1 Close the 2rowser to ensure that your secure session is terminated1 ever exit simply 2y closing the 2rowser1 1. K%%$ "o7r 3"3%( 7$ o &a% .egularly check "or security updates "or your computer operating system1 -ost security updates are aimed at reducing risks to your computer, these may 2e data9related or otherwise1 -ake sure that your operating system and 2rowser have the latest security patches installed1 And, always install these only "rom trusted we2sites1 Install a personal "irewall to :1 prevent hackers "rom gaining unauthorised access to your computer, especially i" you connect to the Internet through a ca2le or a D,( modem1 H. P76*!8 a88%33 8a) 6% !)j7r!o73 DonCt leave the ?C unattended a"ter keying in in"ormation while transacting on the we2site1 Avoid accessing your 2ank online at cy2er ca"es or on a share or pu2lic computer1 Also, avoid locations that o""er online connections through wireless networks 5/i9Fi;, where privacy and security are minimal1 I. P76*!8 PC3 Also, using et 2anking services at cy2er ca"es leaves one vulnera2le to data thieves1 Another modus operandi adopted 2y cheats these days is stealing data "rom pu2lic computers or shared ?Cs1 %he "raud here takes advantage o" unsecured cy2er ca"es1 A police o""ice says, I,ometimes, the ca"e owners are hand9in9glove with the thugs1I :6 COMPANY PROFILE AB'+% %H& '.$AITA%I'J %he Housing Development Finance Corporation (imited 5HDFC; was amongst the "irst to receive an Fin principle3 approval "rom the .eserve Bank o" India 5.BI; to set up a 2ank in the private sector, as part o" .BI3s li2eralisation o" the Indian Banking Industry in 1AA:1 %he 2ank was incorporated in August 1AA: in the name o" FHDFC Bank (imited3, with its registered o""ice in -um2ai, India1 HDFC Bank commenced operations as a ,cheduled Commercial Bank in Ranuary 1AAB1 ?.'-'%'., HDFC is IndiaCs premier housing "inance company and en#oys an impecca2le track record in India as well as in international markets1 ,ince its inception in 1AEE, the Corporation has maintained a consistent and healthy growth in its operations to remain the market leader in mortgages1 Its outstanding loan port"olio covers well over a million dwelling units1 HDFC has developed signi"icant expertise in retail mortgage loans to di""erent market segments and also has a large corporate client 2ase "or its housing related credit "acilities1 /ith its experience in the "inancial markets, strong market reputation, large shareholder 2ase and uni>ue consumer "ranchise, HDFC was ideally positioned to promote a 2ank in the Indian environment1 :8 BRANCH NETWORK Currently HDFC Bank has 1:1D 2ranches, 88@6 A%-s, in BB7 cities in India, and all2ranches o" the 2ank are linked on an online real9time 2asis1 %he 2ank o""ers many innovative products * services to individuals, corporate, trusts, governments, partnerships, "inancial institutions, mutual "unds, insurance companies1 It is a path 2reaker in the Indian 2anking sector1 In 677E HDFC Bank ac>uired Centurion Bank o" ?un#a2 taking its total 2ranches to more than 1,7771 %hough, the o""icial license was given to Centurion Bank o" ?un#a2 2ranches, to continue working as HDFC Bank 2ranches, on -ay 68, 677@1 BUSINESS FOCUS HDFC BankCs (!33!o) is to 2e a /orld9Class Indian Bank1 %he BankCs aim is to 2uild sound customer "ranchises across distinct 2usinesses so as to 2e the pre"erred provider o" 2anking services in the segments that the 2ank operates in and to achieve healthy growth in pro"ita2ility, consistent with the 2ankCs risk appetite1 %he 2ank is committed to maintain the highest level o" ethical standards, pro"essional integrity and regulatory compliance1 HDFC BankCs 2usiness philosophy is 2ased on "our core valuesJ 'perational &xcellence, Customer Focus, ?roduct (eadership and ?eople1 :: HDFC BANK SERAICES a. NET BANKING+ et Banking is HDFC BankCs Internet Banking service1 ?roviding up9to9the9second account in"ormation, et Banking lets you manage your account "rom the com"ort o" your mouse 9 anytime, anywhere1 6. HDFC Ba)2 N% Ba)2!)4 S%87r% A88%33 HDFC Bank has implemented a new security solution "or its customers K ,ecure Access 1As your security is our top priority, we have initiated the ,ecure Access solution to protect you "rom "raudsters and hackers 9 who are looking to "ind a way to access your account1 Currently "ollowing transactions are covered under ,ecure Access M %rans"er "rom one HDFC Bank account to other HDFC Bank account holders 5under distinct customer ID; M %rans"er "rom HDFC Bank account to any other BankCs account 5also known as .%$, * &F%; M Hisa -oney %rans"er M %hird ?arty Demand Dra"t through et Banking 8. Th!r& Par" Tra)3?%r %hird9?arty %rans"er is a et Banking "eature "or which you will need your uni>ue Customer ID and I?I 5password;1 (ogin to et Banking to con"irm that your ID is active in our records1 FEATURES & BENEFITS o need to individually log on to internet 2anking o" every account1 Rust log on to 'ne Hiew and manage upto FIH& accounts in di""erent 2anks1 M .emem2er only '& password1 :B M o charges whatsoever HOW SECURE IS ONEAIEWF 'ne Hiew gives you the world class 2anking security and technology sophistication youCd expect o" HDFC Bank, with "eatures such asJ M .o2ust "irewall protection makes it nearly impossi2le to 2reak through1 M All in"ormation is transmitted using advanced 16@ 2it ,ecure ,ocket (ayer 5,,(; encryption technology1 M Automatic time9outs ensure that your account details are not viewed 2y others1 M )ou can only view your accounts and cannot transact, so your money is a2solutely sa"e1 MOBILE BANKING+ )our -o2ile is now your 2ankS ow access your 2ank account and conduct a host o" 2anking transactions through your mo2ile, with our uni>ue -o2ile Banking service1 )ou can check your account level in"ormation such as 2alance details, mini statement, and che>ue status as well as carry out "inancial transactions such as Funds %rans"er using HDFC Bank -o2ile Banking service1 FEATURES OF MOBILE BANKING +sing our -o2ile Banking service, you can avail o" a host o" "eatures at your "inger tips M ?er"orm "unds trans"ers M $et your 2alance details M '2tain your last 8 transaction details M .e>uest a che>ue 2ook :D M ,top a che>ue payment M &n>uire che>ue status M .e>uest an account statement M $et Fixed Deposit details M .e>uest "or I9?I generation M .e>uest a che>ue 2ook AUTOMATED TELLER MACHINE+ /ith wide spread network o" :,777 A%-s across India, en#oy the "ollowing 2ene"its at your convenience1 M :0;ho7r a88%33 o Ca3h 9 /ithdraw up to .s117, 777O9 per day on your A%- Card and up to .s1 1B,777 on your De2it Card1 M P%r3o)a*!5%& Ca3h W!h&ra9a*3 K ,ave time on your cash withdrawal transactions 2y pre9setting your pre"erred language O account O amount1 M A!%9 A88o7) Ba*a)8%3 & M!)!;3a%(%)3 9 $et details o" the last A transactions on your account with the mini9statement, along with your account 2alance1 M Cha)4% ATM PIN 9 Change your A%- ?I at any given point in time1 M Or&%r a Ch%B7% Boo2 C A88o7) Sa%(%) M HDFC Ba)2 Cr%&! Car& Pa"(%) 9 -ake payment o" your HDFC Bank Credit Card dues using the A%-1 %he primary account o" your De2it O A%- card will 2e de2ited1 M D%$o3! Ca3h or Ch%B7%3 9 Deposit Cash or Che>ues into your account without visiting the Branch1 Availa2le at on9Branch HDFC Bank A%-s M Tra)3?%r F7)&3 6%9%%) a88o7)3 K %rans"er money 2etween your accounts1 Both accounts must 2e linked to your A%- O De2it Card1 -aximum o" 1D AOCs 5,avings O Current; can 2e linked to a card1 :E REFILL YOUR PREPAID MOBILE K .e"ill your prepaid mo2ile using ?repaid -o2ile .e"ill service instantly1 HDFC Bank o""ers K ?repaid -o2ile .e"ill, which allows you to recharge your prepaid mo2ile phone anytime "rom anywhere and pay directly "rom your Bank account1 Avoid hassles o" withdrawing cash or searching "or a retailer "or 2uying the recharge card1 M )ou can avail o" this service in two convenient waysJ ?repaid -o2ile .e"ill on Internet ?repaid -o2ile .e"ill on A%- PHONE BANKING+ )our phone is now your 2ank1 /hen you dial in to ?hone Banking, a voice prompt will guide you through the various transactions1 )ou may also talk to a ?hone Banker, who will provide you with the re>uired assistance1 Avail o" the "ollowing services via ?hone BankingJ a. Ch%82 "o7r a88o7) 6a*a)8% ; $et up9to9the9second details o" your ,avings or Current Accounts and your Fixed Deposits1 )ou can also get the details o" the last B transactions on your account, or have a mini statement o" last A transactions "axed across to you1 6. E)B7!r% o) h% 8h%B7% 3a73 ; )ou can use ?hone Banking to check on the status o" che>ues issued or deposited "rom anywhere in India1 8. Or&%r a Ch%B7% Boo2 C A88o7) Sa%(%) ; Rust call ?hone Banking and get your Che>ue Book or latest Account ,tatement delivered at your doorstep1 &. So$ Pa"(%) ; ,top payment o" a single che>ue or a series o" che>ues, 6: hours a day1 Loa) R%*a%& B7%r!%3 ; $et details o" the outstanding loan amount, en>uire a2out your loan account, re>uest "or an interest certi"icate :@ and repayment schedule, etc1 Rust call ?hone Banking in your city and dial : to speak to our ?hone Banker %. O$%) a F!D%& &%$o3! or E)B7!r% o) "o7r F!D%& &%$o3!3 C TDSJK ; %alk to our ?hone Banker to easily open a Fixed Deposit over the phone, 2y simply authori0ing a trans"er o" "unds "rom your ,avings Account1 ?. Tra)3?%r F7)&3 6%9%%) a88o7)3JK ; )ou can also trans"er money "rom one o" your accounts to another1 Both accounts must 2e linked to your Customer ID1 )ou can trans"er amounts upto .s 1 (ac in a single day1 4. Pa" "o7r 6!**3 ; ?ay your cellular, telephone, electricity and HDFC Bank Credit Card 2ills through ?hone Banking using Bill ?ay, a comprehensive 2ill payments solution1 h. R%$or *o33 o? "o7r ATM C D%6! Car& C For%D P*73 Car& ; I" your A%- O De2it O Forex plus Card are lost, call any ?hone Banking num2er to deactivate your card5s;1 !. L%ar) a6o7 a** o7r oh%r $ro&783 ; $et details on HDFC Bank products * services 2y talking to our ?hone Banker1 j. E)B7!r% a6o7 *a%3 I)%r%3 C ED8ha)4% ra%3 ; $et latest Interest rates on Deposits and Foreign &xchange rates 2y talking to our ?hone Banker1 2. R%B7%3 a D%(a)& Dra? C Ma)a4%rE3 Ch%B7% KJJ ; Call ?hone Banking and get a Demand Dra"t O -anagerCs Che>ue delivered to your doorstep1 *. D%(a R%*a%& Q7%r!%3 ; $et the Account holding details, %ransaction details, I,I um2er o" a scrip, ,tatus o" Depository ,lips, details o" Client -aster list 5Dividend account, Charges De2it account, ?A etc1; * others1 Call ?hone Banking in your city * dial B to speak to our ?hone Banker1 :A Products P%r3o)a* 6a)2!)4 +nder ?ersonal Banking, HDFC o""ersJ Accounts * Deposits (oans Cards Demat Investments Insurance Forex ?remium Banking ?rivate Banking NRI 6a)2!)4 +nder .I Banking, HDFC o""ersJ Accounts * Deposits -oney %rans"er Investments * Insurance .esearch .eports ?ayment ,ervices SME 6a)2!)4 +nder ,-& Banking, HDFC o""ersJ U1EV B7 Accounts * Deposits Business Financing %rade ,ervices ?ayments * Collections Cards Who*%3a*% 6a)2!)4 HDFC o""ers /holesale Banking "or Corporates and Financial Institutions * %rusts1 %he Bank also provides services such as Investment Banking and other services in the $overnment sector1 Services Who*%3a*% 6a)2!)4 3%r#!8%3 HDFC Bank provides a range o" commercial and transactional 2anking services, including working capital "inance, trade services, transactional services, cash management, etc1 to large, small and mid9si0ed corporates and agriculture92ased 2usinesses in India1 %he 2ank is also a leading provider o" these services to its corporate customers, mutual "unds, stock exchange mem2ers and 2anks1 R%a!* 6a)2!)4 3%r#!8%3 HDFC Bank was the "irst 2ank in India to launch an International De2it Card in association with HI,A 5Hisa &lectron;1 %he 2ank also issues the -asterCard -aestro de2it card1 %he Bank launched its credit card 2usiness in late 67711 By the end o" Rune 6718, it had a credit card 2ase o" B1A: million1 By -arch 6716, the 2ank had a total card 2ase 5de2it and credit cards; o" over 1A1E million1 %he Bank is also one o" the leading B1 players in the Imerchant ac>uiringI 2usiness with over 6:7,777 point9o"9sale 5?',; terminals "or de2it O credit cards acceptance at merchant esta2lishments1 %he Bank is positioned in various net 2ased B6C opportunities including a wide range o" Internet 2anking services "or Fixed Deposits, (oans, Bill ?ayments, etc B6 RESEARCH METHODOLOGY I)ro&78!o) %he two wheeler industry in India collectively produces 67 (akh vehicles a year1 ,ome players have managed to cut through consumer resistance with innovation, pricing and aggressive marketing1 %he competition level in the two wheeler industry is very high now1 -any 2rands are "ighting in the market "or maximum share1 %hey have to 2ring out a lot o" di""erentiation among them1 %he ma#or duty o" the marketer is to know the reasons "or pre"erring particular motor 2ike 2y the consumers1 RESEARCH DESIGN P7r$o3% o? L!%ra7r% R%#!%9 (iterature review is one o" the prime parts o" every pro#ect1 %he very 2asic purpose o" the literature review is to gain insight on the theoretical 2ackground o" the research pro2lem1 It helps the researcher to gain strong theoretical 2asis o" the pro2lem under study and also help to explore whether any one has done research on the related issue1 %hat3s why literature review helps one to "ind out the path o" pro2lem solving1 In this regards the very 2asic purpose o" the literature review in this dissertation is same as mentioned M%ho&o*o4" %he research will 2e done through survey method1 %he collection o" data will 2e done through >uestionnaire, interview and related we2sites %he sample si0e taken "or this research is 177 customers those who having HDFC Bank1 %he area o" this survey consist o" (ucknow city %he collection o" data will 2e done with the help o" a structured >uestionnaire1 %he designing o" >uestionnaire needs precision and classi"ication o" the su2#ect, so that the respondents can easily understand the >uestion and can answer it sincerely and correctly1 So7r8%3 o? Daa B8 Pr!(ar" &aa ?rimary data consists o" original in"ormation "or the speci"ic purpose at hand1 It is "irst hand in"ormation "or the direct users o" respondents1 %he tools used to collect the data may vary and can 2e collected through various methods like >uestionnaire, personal interview S%8o)&ar" &aa ,econdary data is the data which is already 2een collected and assem2led1 %his data is availa2le with the companies or "irms and it can 2e collected "rom newspapers, periodicals, maga0ines, we2sites etc1 Sa($*% D%3!4) %he sample si0e taken "or this research is 177 customers having HDFC Bank1 Sa($*!)4 T%8h)!B7% Convenient ,ampling techni>ue is used "or this pro#ect1 Daa Co**%8!o) Too* Nuestionnaires as the primary "orm o" collecting data1 Sa!3!8a* %8h)!B7%3 11 Bar Diagrams 61 ?ie9Chart Sa!3!8a* oo*3 ,tatistical so"tware like -icroso"t &xcel B: NEED OF THE STUDY M %o determining growth direction o" online 2anking service1 M ?romoting &92anking services in 2anking industry1 M Customer perception will 2e taken into consideration a2out the internet 2anking1 OBJECTIAES %o study a2out the "actors that a""ects the customer perception towards e2anking o" HDFC 2ank1 %o analy0e Customer Awareness towards HDFC BA!1 %o "ind out the ma#or pro2lems "aced 2y the customers while using e9 2anking services1 %o know a2out the current and "uture prospects o" &9Banking to the customers1 %o get "eed 2ack on what consumer expects "rom HDFC BA!1 %o analy0e Customer Awareness towards electronic services o""ered 2y HDFC BA! and per"ormance o" the 2anks Develop skills in report writing through data collection, data analysis, data extraction, and presentation1 BB DATA ANALYSIS AND ITS FINDINGS ANALYSIS OF DATA COLLECTED Cha)4!)4 %8h)o*o4" a)& C73o(%r A9ar%)%33 o9ar&3 HDFC BANK !) L782)o9 C!" Sa%(%) o? Pro6*%( ,tepping down o" HDFC Bank position "orm a market leader to an ordinary market survivor has posed and alarming condition 2e"ore the company1 %he present study would like to have an insight o" consumer3s perception a2out the criteria o" selecting the 2ikes1 &specially to "igure out whether it is 2rand driven or >uality driven BD
CHAPTER L 0+ DATA ANALYSIS & INTERPETATION InterpretationJ %he result shows that ma#ority o" respondents i1e1 EDG are males who are using the &92anking services and 6:G are the "emale who are using &92anking services1 Female are not using this service 2ecause they have less knowledge a2out the internet and they trust "ace to "ace interaction more1 ,o it shows that &92anking is more "amous among male1 BE InterpretationJ %he result shows that ma#ority o" respondents i1e1 6EG "alls under the category o" 61987 years and 68G "alls under 2elow 67years it shows that &92anking is mainly "amous among youngsters as they are the ma#or users o" &92anking and least comes under a2ove B7years1 B@ InterpretationJ %he result shows that ma#ority o" respondents that are using &2anking are Businessman i1e1 86G they are using &92anking services 2ecause it results in time saving1 And 6EG respondents are working in private sector and 6:G respondents are working in government organi0ations and 1EG are others which include students and housewives they are using &92anking 2ecause it saves time and students they have complete knowledge o" internet1 BA InterpretationJ %he result o" this study shows that 86G o" the respondents who are using &92anking "all under the income category o" 17,77796B,777 and 87G "alls under the income category o" 6B,777 to B7,777 and 68G G "alls under the income category o" more than B7,777 and 1BG G "alls under the income category o" 2elow 17,7771 D7 N6; /hile opening up the account, were you aware o" &92anking services provided 2y HDFC 2ankW InterpretationJ According to this survey ma#ority o" respondents i1e1E8G were aware a2out &92anking services provided 2y their 2ank and 6EG o" respondents were not aware a2out the &92anking services provided 2y their 2ank at the time o" opening up o" their account 2ecause o" lack o" awareness and some are using 2anking services "rom last so many years at that time 2ank was not o""ering &92anking service so they were not aware at that time 2ut now they are aware1 D1 N8; I" answer to >uestion no16 is )&,, which o" the "ollowing &92anking services is you aware o"W D6 InterpretationJ According to this study almost every customer is using more one &2anking service and De2it Card is used 2y almost ABG o" respondents and mo2ile 2anking is used 2ut @AG o" respondents and D1G respondents are using phone 2anking and only 1G are using one line 2anking this shows the trend that how customers are using &92anking and among all the &9 2anking products de2it cards are mostly used 2y respondents 2ecause they are easy to use and do not re>uire technical or computer knowledge1 N:; Are you availing &92anking servicesW D8 D: ND; i" answer to >uestion no1: is yes, how "re>uently do you use each o" the "ollowing servicesW InterpretationJ %he results shows ma#ority o" the respondents use internet 2anking, as1 BB respondents are like to use internet 2anking 2ecause according to them it3s easy to use and easily accessi2le1 %hey can use this any time anywhere1 ,o it3s good "or them to use this "acility o" &9 2anking they are satis"ied with this "acility o" & 2anking1 DB InterpretationJ %he results shows ma#ority o" the respondents use mo2ile 2anking, as1 :B respondents are like to use mo2ile 2anking 2ecause according to them it3s easy to use and easily accessi2le1 %hey can use this any time anywhere1 ,o it3s good "or them to use this "acility o" &9 2anking they are satis"ied with this "acility o" &2anking1 %hey also have the same reasons 2ecause its saves their time period 2ut the usage o" mo2ile 2anking is less as compare to internet 2anking1 Because in the time o" technology the most respondents are like to use the "acility o" internet instead o" using any other1 DD InterpretationJ %he results shows ma#ority o" the respondents use phone 2anking, as1 :: respondents are like to use phone 2anking 2ecause according to them it3s easy to use and easily accessi2le1 %hey can use this any time anywhere1 ,o it3s good "or them to use this "acility o" &9 2anking they are satis"ied with this "acility o" &92anking1 As phone 2anking is also used 2y less people as compare to other respondents who are using internet 2anking as phone 2anking is also same as mo2ile 2anking so the respondents are mainly used this as mo2ile 2anking1 DE InterpretationJ %he results shows ma#ority o" the respondents use one line 2anking, as1 81 respondents are like to use one line 2anking 2ut one line 2anking is used 2y very less respondents 2ecause they are not "ully aware a2out this "acility provided 2y 2anks so the main "ocus is on internet 2anking, mo2ile 2anking, phone 2anking etc1 ,o they don3t have any knowledge a2out the one line 2anking1 InterpretationJ %he results shows ma#ority o" the respondents use de2it card, as1 B1respondents are like to use de2it card 2ecause according to them it3s easy to use and easily accessi2le1 %hey can use this any time anywhere1 -ost o" the respondents are used this "acility a"ter the internet 2anking 2ecause it3s the main "acility which is used 2y the customers and they really like this "acility1 D@ NE; %ick the "eature which you like while considering HDFC 2ankW Interpretation net 2ankingJ As per the survey, 16 respondents liked the et Banking services provided 2y HDFC 2ank1 DA N@; /hich o" the "ollowing "actors in"luence you the most to use &92anking servicesW Interpretation o" All time availa2ilityJ %he result shows that according to B7G respondents all time availa2ility strongly in"luence them to use &9 2anking and according to 6AG respondents all time availa2ility in"luence E7 them more than average to use &92anking and according to EG respondents all time availa2ility in"luence them less than average to use &92anking the reason o" variation in views o" respondents is the 2ecause o" their pre"erences and perception1 Interpretation o" &asy o" +seJ %he results shows that according to :BG respondents ease o" use strongly in"luence them to use &92anking and according to 6BG respondents ease o" use in"luence them more than average to use &92anking and according to BG respondents ease o" use in"luence them not at all to use &92anking1 E1 Interpretation o" earnessJ According to :1G respondents nearness strongly in"luence them to use &92anking and according to 68G respondents nearness in"luence them average to use &92anking and according to :G respondents nearness in"luence them less than average to use &92anking1 Interpretation securityJ According to 8AG respondents security strongly in"luence them to use &92anking and according to 68G respondents security in"luence them more than average to use &92anking and according to 18G respondents security in"luence them less than average to use &92anking1 E6 Interpretation Direct AccessJ %he result shows that according to :BG respondents direct access strongly in"luence them to use &92anking and according to 6@G respondents direct access in"luence them more than average to use &92anking and according to EG respondents direct access in"luence them less than average to use &92anking1 E8 Interpretation Friends and relativesJ %he result shows that according to :EG respondents their "riendsOrelatives strongly in"luence them to use &92anking and according to 6BG respondents their "riendsOrelatives in"luence them more than average to use &92anking and according to AG respondents their "riendsOrelatives in"luence them less than average to use &92anking1 E: Interpretation status sym2olJ %he result shows that according to B6G respondent3s status sym2ol strongly in"luence them to use &92anking 2ecause now a days a person who is using &92anking services is considered as a high pro"ile person and according to 6@G respondents status sym2ol in"luence them more than average to use &92anking services1 NA; %o what extent are you satis"ied with your Banks3 &92anking servicesW EB InterpretationJ %he most o" the customers are really liked the "acilities provided 2y 2anks as they strongly agree that the "acilities are good "or them so they like to avail the &92anking services provided 2y the di""erent 2anks and the result shows that :@G respondents are highly satis"ied with the e9 2anking services provided 2y their 2ank and 6@G respondents are satis"ied with the e92anking services provided 2y their 2ank and 1:G respondents are dissatis"ied with the e92anking services provided 2y their 2ank1 HDFC ED InterpretationJ From this we can analysis that most o" the respondents that is 1A respondents are satis"ied with the services provided 2y the 2ank1 %hat they like the 2anking services provided 2y the 2y HDFC 2ank and the 2ank also easily satis"ied their customers1 EE N17; /hich o" the "ollowing 2ene"its accrue to you, while +sing e92anking servicesW InterpretationJ -ost o" the respondents think that the ma#or 2ene"it "rom &9 2anking services is time saving "acility1 Because the ma#or pro2lem which the respondents "aced is time pro2lem so &92anking eases their lives and save their time so they like this "acility 2ecause o" this "acility1 E@ HDFC InterpretationJ /e can analysis that the customers o" HDFC really satis"ied with the time saving "acility o" &92anking1 %hey thought that it3s a good "or them to use the &2anking services 2ecause it3s save their time and they can easily access the service1 EA N11; !indly rate the "ollowing reasons enlisted "or not using the &92anking servicesW InterpretationJ From the non users, an attempt was made to elicit the reasons "or its non usage1 As shown in the ta2le, satis"action with traditional 2anking was considered as prime de9motivating "actor, "ollowed closely 2y the "ear @7 o" insecurity, then Fhidden cost3 "actor, which suggested their resistance to change, which to some extent can 2e countered 2y aggressive advertisement and utili0ing other modes o" awareness dissemination as well1 @1 16;.ate the "ollowing statements with regards to potential pro2lems identi"ied in &92anking servicesW Factors Highly considered -a#or Average -inor Ignora2le A %ime consuming 1@ 1: A 8B 88 B ,ecurity Issue @ 67 6A 87 66 C A%- out o" order A 1@ 1: 88 8B D Internet Connectivity Issue 1@ 6B 18 6A 6: & ?assword "orgotten 66 8B A 1@ 6B F Card misplacedO-isuse 6@ 1D 8B 61 A $ Di""iculty in Claiming False 8B 8B 61 1A @ InterpretationJ According to this result 86G respondent3s time as a minor identi"ied potential pro2lems in &92anking services and 87G respondents consider time as a ignora2le identi"ied potential pro2lems in &92anking @6 services 2ut 1EG respondents highly consider time as a identi"ied potential pro2lems in &92anking services1 InterpretationJ %he result shows 6@G respondents highly consider security issue as in or identi"ied potential pro2lems in &92anking services and 1@G respondents consider security issue as ma#or identi"ied potential pro2lems in &92anking services InterpretationJ %he result shows that 86G respondents consider A%- out o" order as a ignora2le identi"ied potential pro2lems in &92anking services and @8 87G respondents consider A%- out o" order as a minor identi"ied potential pro2lems in &2anking services and @G respondents consider A%- out o" order as a highly considered identi"ied potential pro2lems in &92anking services1 InterpretationJ %he result shows that 6EG respondents consider internet connectivity as minor identi"ied potential pro2lems in &92anking services and 1EG respondents consider internet connectivity as highly considered identi"ied potential pro2lems in &2anking service1 @: InterpretationJ %he result shows that 86G respondents consider password "orgotten as a ma#or identi"ied potential pro2lems in &92anking services and @G respondents consider password "orgotten as an average identi"ied potential pro2lems in &92anking services1 InterpretationJ %he result shows that 6EG respondents consider di""iculty in claiming "alse statement as an average identi"ied potential pro2lems in &9 @B 2anking services and 1BG respondents consider di""iculty in claiming "alse statement as a minor identi"ied potential pro2lems in &92anking services1 N18; I" you use, rate your online 2anking "acility on the "ollowing criteria using a scale o" 1 to B 5where 1 is very dissatis"ied and B is very satis"ied; @D InterpretationJ From a2ove its clear that ma#ority o" our respondents were satis"ied and very satis"ied with the >uality o" in"ormation provided at online 2anking1 %his result show that the customers are satis"ied with the in"ormation >uality provided 2y the 2ank, >uality o" in"ormation play very important role i" the customer understand what is provided then he can demand it more otherwise not1
@E InterpretationJ From a2ove its clear that ma#ority o" our respondents get average and satis"ied with the >uality and >uantity o" content provided at online 2anking1 Nuantity o" in"ormation also play vital role in online 2anking 2ecause the customer o" 2ank want simple in"ormation and as per their re>uirement only then he get satis"ied1 @@ InterpretationJ From a2ove its clear that ma#ority o" our respondents were very satis"ied and satis"ied with the security o" personal in"ormation provided at online 2anking1 %his result shows that the 2ank customers 2elieve that their personal in"ormation is secure while using online 2anking "acility provided 2y the 2anks1 @A N1:; I" answer to >uestion no16 is ', even i" you are not aware a2out & Banking services then would you like to have in"ormation a2out this or would you like to get in"ormation "rom the 2ank itsel"W InterpretationJ %he result shows B:G respondents will like to get in"ormation "rom the 2ank itsel" and :DG respondents will not like to get in"ormation "rom the 2ank itsel" as &92anking services is provided 2y every 2ank so ma#ority o" respondents wants to get in"ormation a2out &92anking1 A7 N1B; /ould you like to use e 2anking services a"ter $etting the re>uired knowledge a2out the services '""ered 2y the HDFC 2anksW InterpretationJ %he result shows that BAG respondents would like to use & Banking services a"ter getting the re>uired knowledge a2out the services o""ered 2ecause now a days &92anking services considered very important and everyone use these services daily to do work easily and >uickly 2ut :1G respondents would not like to use & Banking services a"ter getting the re>uired knowledge a2out the services o""ered 2y the 2anks1 A1 CONCLUSION HDFC BA!is one o" leading two wheeler producer in the world and a ma#or player in the Indian -arket1 %hey were the producer o" largest selling 2anks o" the world that is HDFC BA!,plendor it has its own importance still in the market1 But "rom the past two or three years HDFC BA!su""ered a slight loss in its market share and Ba#a# 2ecame a 2ig competitor to HDFC BA!1 Customer Awareness and changing technology towards HDFC BA! is very good1 It has created a very good 2rand image "or it sel" 2y providing low maintenance, "uel e""icient, sleek looking models along with e""icient a"ter sales service1 It has attracted every class o" customers1 In today3s competitive 2usiness environment, it is only due to the positive perception o" the consumer that the company is 2eing a2le to compete in the market with its other competitors1 A6 RECOMMENDATONS AND SUGGESTIONS %he customers should 2e provided with enough in"ormation regarding e""ective maintenance o" the 2ike so that the consumers get the 2est "rom the 2ike1 HDFC BA!has to identi"y those dealers who are "acing the pro2lem with sales and take ade>uate measures to keep up the so "ar created 2rand image1 HDFC BA!has o""ered #ust one model 5HDFC BA!?(&A,+.&; "or women whereas its competitors are o""ering more then two so they should concentrate on that aspect1 A8 LIMITATIONS OF THE STUDY 11 In this study it is not possi2le to collect the opinion o" all the customers owing to personal constraints1 ,o the assumptions are drawn on the 2asis o" the in"ormation given 2y the respondents1 61 %he study needs to 2e completed within a speci"ied time o" one month and in certain restricted areas1 ,o the "indings cannot 2e generali0ed "or the company as a whole1 81 %his study covers only a HDFC BA! sector1 ,o this study will not 2e applica2le "or those areas1 A: BIBLIOGRAPHY BIB(I'$.A?H) BooksJ 1; aresh !1 -alhotra 5677:; <-arketing .esearch=, B th edition, ?earson ?rentice Hall ?u2lications1 6; Cooper Donald .1 and ,chindler ?amela ,1 56778; <Business .esearch -ethod=, @ th &dition, %ata -c$raw Hill ?u2lications, ?age um2erJ 18E 91D11 /e2sitesJ httpJOO2anking9online9internat12logspot1comOsearchOla2elOBanking httpJOOen1wikipedia1orgOwikiOonlineX2anking httpJOOwww12anknetindia1comO2ankingOi2kg1htm httpJOOwww1icici2ank1comO httpJOOwww1hd"c2ank1com AB ANNEMURE Nuestionnaire D%ar R%3$o)&%)' /e are conducting a research study on e92anking1 /e will appreciate your cooperation in this regard 2y "illing up the >uestionnaire care"ully1 I assure you that the in"ormation provided 2y you will 2e kept con"idential and will 2e used "or academic purpose only1 ?lease put a tick 5X; in appropriate 2rackets1 ameJ XXXXXXXXXXXXXXXXXXXXXXXXXXXXX $enderJ -ale Female AgeJ Below 67 67987 819:7 :19B7 A2ove B7 'ccupationJ $overnment ?rivate Business Housewi"e ,tudent 'ther -onthly IncomeJ Below 17,777 17,777 K 6B777 6B7779B7777 -ore than B7777 Q:@ Wh!*% o$%)!)4 7$ h% a88o7)' 9%r% "o7 a9ar% o? E;6a)2!)4 3%r#!8%3 $ro#!&%& 6" HDFC 6a)2F )es o 5I? No' a)39%r B7%3!o) )o. ,, &!r%8*";1 Q-@ !? a)39%r o B7%3!o) )o.: !3 YES' 9h!8h o? h% ?o**o9!)4 E;6a)2!)4 3%r#!8%3 !3 "o7 a9ar% o?F Internet Banking -o2ile Banking ?hone Bank AD 'ne (ine Banking De2it Card Q0@ Ar% "o7 a#a!*!)4 E;6a)2!)4 3%r#!8%3F )es o Q/@ Ho9 8o)#%)!%) "o7 ?!)& a88%33!)4 "o7r 6a)2 o)*!)%F &asy ormal Di""icult QG@ !? a)39%r o B7%3!o) )o.0 !3 "%3' ho9 ?r%B7%)*" &o "o7 73% %a8h o? h% ?o**o9!)4 3%r#!8%3F Factors 'nce in a day 'nce in a week 'nce in a 'nce in a month In"re>uently A Internet Banking B -o2ile Banking C ?hone Banking D 'ne (ine Banking & De2it Card Q1@ T!82 h% ?%a7r% 9h!8h "o7 *!2% 9h!*% 8o)3!&%r!)4 HDFC 6a)2F Features HDFC A et Banking B Credit Card 'nline D Instant Alerts & -o2ile Banking F A%- $ ?hone 2anking AE H I -o2ile I %H Banking QH@ Wh!8h o? h% ?o**o9!)4 ?a8or3 !)?*7%)8% "o7 h% (o3 o 73% E; 6a)2!)4 3%r#!8%3F Factors ,trongly -ore than Average (ess than ot at all A All time availa2ility B &ase o" use C earness D ,ecurity & Direct access F FriendsO .elatives $ ,tatus sym2ol QI@ To 9ha %D%) ar% "o7 3a!3?!%& 9!h "o7r Ba)23N E;6a)2!)4 3%r#!8%3F Highly ,atis"ied ,atis"ied eutral Dissatis"ied Highly Dissatis"ied Q,.@ Which of the following benefts accrue to you, while Using e-banking services? Time Saving Inexpensive Easy Processing Easy Fund Transfer Any Other________________ A@ Q,,@ K!)&*" ra% h% ?o**o9!)4 r%a3o)3 %)*!3%& ?or )o 73!)4 3h% E; 6a)2!)4 3%r#!8%3F Factors Hi ghl -ore than Average (ess than (east importan A o need5 ,atis"ied with traditional 2anking; B It seems like a 2otheration C Insecurity D o access to internetOmo2ile & (ack o" operational knowledge F Hidden costs Any other, please speci"yXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX Q,:@ Ra% h% ?o**o9!)4 3a%(%)3 9!h r%4ar&3 o $o%)!a* $ro6*%(3 !&%)!?!%& !) E;6a)2!)4 3%r#!8%3F Factors Highly considered -a#or Average -inor Ignora2le A %ime consuming B ,ecurity Issue C A%- out o" order D Amount de2ited 2ut not withdrawn & Internet Connectivity Issue F ?assword "orgotten $ Card misplacedO-isuse H Di""iculty in Claiming False AA Q,-@ I? "o7 73%' ra% "o7r o)*!)% 6a)2!)4 ?a8!*!" o) h% ?o**o9!)4 8r!%r!a 73!)4 a 38a*% o? , o / >9h%r% , !3 #%r" &!33a!3?!%& a)& / !3 #%r" 3a!3?!%&@ Factors 1 6 8 : B A Nuality o" in"ormation B Nuality and Nuantity o" content C ,ecurity o" personal in"ormation Q,0@ If answer to question no.2 is N, even if you are not aware about ! "anking services then woul# you like to have infor$ation about this or woul# you like to get infor$ation fro$ the bank itself? )&, ' %&'( Wo7*& "o7 *!2% o 73% E;Ba)2!)4 3%r#!8%3 a?%r 4%!)4 h% r%B7!r%& 2)o9*%&4% a6o7 h% 3%r#!8%3 o??%r%& 6" h% 6a)23F )&, ' 177