A

PROJECT REPORT
ON
E- BANKING ON HDFC BANK
SUBMITTED TO
UNVERSITY OF MUMBAI
INPARTIAL FULLFILLMENT FOR THE AWARD OF
THE DEGREE OF BACHELOR OF COMMERCE
(BANKING AND INSURANCE)
SEMISTER V, ACADEMIC YEAR: 2014-2015.

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DECLARATION
I hereby declare that the project titled E-BANKING
submitted
by me is based on actual work carried out by me under the
guidance
& supervision of Prof.

The information submitted in this project work is true and

original to the best of my knowledge and belief.

S.I.A COLLEGE OF HIGHER EDUCATION

SIGNATURE OF THE STUDENT

(BHARAT R. SIRVEE)

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PREFACE
With the rapid globalization of the Indian economy, enterprises
are facing with everchanging competitive environment.
Enterprises are adopting strategies aimed atdeveloping
competitive advantage based on enhanced customer value in
terms ofproduct differentiation, quality, speed, service and costs.
In the post liberalization era,with the deregulation of Indian
economy, the financial service sector witnessing acomplete
metamorphosis and technology is playing a very significant role in
thisrecord. Over the last decade India has been one of the fastest
adopters ofinformation technology, particularly because of its
capability to provide softwaresolution to organizations around the
world. This capability has provided atremendous impetuous to the
domestic banking industry in India to deploy the latestin
technology, particularly in the Internet banking and e-commerce
arenas. Banks aregrowing in size by mergers and acquisitions,
which have been driven bycommunication and technology.
Technology is playing a major role in increasing theefficiency,
courtesy and speed of customer service. It is said to be the age
of E-banking.
An Online Banking user is expected to perform at least one of the
following
transactions online:
1. Checking account balance and transaction history
2. Paying bills
3. Transferring funds between accounts
4. Requesting credit card advances
5. Ordering checks
6. Managing investments and stocks trading
From a banks perspective, using the Internet is more efficient
than using other
distribution mediums because banks are looking for an increased
customer base.

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Using multiple distribution channels increases effective market

coverage by enablingdifferent products to be targeted at different
demographic segments. Also Bankscannot risk loosing customers
to competitors within the aggressive competition in thebanking
industry around the world. Moreover Internet delivery offers
customizedservice to suit the needs and the likes of each user.
Mass customization happenseffectively through Online Banking. It
reduces cost and replaces time spent onroutine errands with
spending time on business errands. Online Banking means
lessstaff members, smaller infrastructure demands,
compared with other bankingchannels. From the customers
perspective, Online Banking provides a convenientand effective
way to manage finances that is easily accessible 24 hours a day,
sevendays a week. In addition information is up to date.
Nevertheless Online Banking hasdisadvantages for banks like how
to work the technology, set-up cost, legal issues,and lack of
personal contact with customers. And for customers there are
securityand privacy issues.

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ACKNOWLEDGEMENT
It is a matter of great pleasure for me in submitting the
project report on E-BANKING for fulfillment of the requirement
of my course from THE S.I.A COLLEGE OF HIGHER EDUCATION,
DOMBIVLI (EAST)
I am thankful to and owe a deep gratitude to all those who
have helped me in Preparing this report. Words seem to be
inadequate to express my sincere thanks to Prof. nagariya sir for
her valuable guidance, constructive criticism, untiring efforts and
immense encouragement during the entire course of the study
due to which my efforts have been rewarded.
I express my sincere thanks to our principal Dr.
Mrs.PadmajaArvind and our librarian Mrs. Bharti Rao for giving
me all the facilities during my project and helping and guiding me
during my research work.
I want to thank all who have supported me and gave their
timely guidance. Last but not least I am very grateful to all those
who helped in one way or the other way at every stage of my
work.

Signature
(Bharat R .Sirvee)

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About the project

Title of study
The present study titled in E-BANKING. The study is made by reference to EBANKING services given to customer

Object of the study

To study the E-banking services in detail.
To study of awareness of E-banking services among the customer of
hdfcbank.
To study the customer satisfaction relating to the E-banking services.
To completely study of E-banking provided by hdfc bank

DATA AND METHODOLOGY

For the purpose of the present study, both primary as well as secondary data
were used.
Primary data is collected through questionnaire from 10 customer to
understand the awareness abut the E-banking. Sample was randomly selected.

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INDEX

Chapter
No.
1
2
3
4

Topic

PAGE
NO.

Declaration
Acknowledgement
Preface
Introduction of E-banking
INTRODUCTION
History
Meaning
definition

5
6
7
8
9
10
11
12
13
14
15

History of HDFC bank

Business of HDFC bank
Facilities provided by HDFC bank
E-banking facilities provided by
HDFC bank
Importance of E-banking facility
E- BANKING SERVICES
BENEFITS/CONCERNS OF E-BANKING

News and articles

Recommendation and suggestion

Bibliography
Conclusion
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Chapter 1
Introduction

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INTRODUCTION

Internet banking (or E-banking) means any user with a personal

computer and a browser can get connected to his bank-s website
to perform any of the virtual banking functions. In Internet
banking system the bank has a centralized database that is webenabled.
Internet banking can be defined as a facility provided by banking
and financial institutions, that enable the user to execute bank
related transactions through Internet. The biggest advantage of
Internet banking is that people can expend the services sitting at
home, to transact business.
Internet banking basically allows you to be able to do everything
that you can in your regular banking institution, only with the
benefit that you can do it all right from the convenience of your
own home. You can be comfortable and have peace of mind
knowing that you can keep track yourself of all your banking
issues.

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History
The concept of Internet banking has been simultaneously
evolving

with

the

development

of

the

World

Wide

Web.

Programmers working on banking databases came up with ideas

for online banking transactions, some time during the 1980's. The
creative process of development of these services was probably
sparked off after many companies started the concept of online
Shopping.
Sometime in 1980's, banking and finance organizations in Europe
and

United

States

started

suggestive

researches

and

programming experiments on the concept of 'home banking'.

In 1983, the Nottingham Building Society, commonly abbreviated
and refereed to as the NBS, launched the first Internet banking
service in United Kingdom.
Stanford Federal Credit Union introduced the first online banking
service in United States, in October 1994, which is a financial
institution.

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Indian scenario
As this is a time of globalization customer are getting change
adapting more upgraded technology in their life, in this busy
schedule everyone is looking for a time saving process And its
been come in a way of Internet banking.
As Internet banking is booming now a days as a delivery of
banking services and strategic tool for business development, has
gained wide acceptance internationally and is fast catching up in
India with more and more banks entering the fray.
At present, the total Internet users in the country are estimated
at 1crore. Only about 1% of Internet users did banking online in
1998. This increased to 20.7% in March 2000.
Costs of banking service through the Internet form a fraction of
costs through conventional methods. Rough estimates assume
teller cost at Re.1 per transaction, ATM transaction cost at
45paisa, phone banking at 35paisa, debit cards at 20paise and
Internet banking at 10paise per transaction.
Some of the banks permit customers to interact with them and
transact electronically with them. Such services include request
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for opening of accounts, requisition for cheque books, stop

payment

of

cheques,

viewing

and

printing

statements

of

accounts, movement of funds between accounts within the same

bank, querying on status of requests, instructions for opening of
Letters of Credit and Bank Guarantees etc. HDFC Bank Ltd. has
made e shopping online and real time with the launch of its
payment gateway.

Meaning of e-banking
For many customers electronic banking means 24-hour access to
cash through an automated teller machine (ATM), or direct
deposit of pay cheques into accounts. But electronic banking
involves many different types of transaction.
Electronic banking , also known as electronic fund transfer
(EFT) uses computer and electronic technology as a substitute for
cheques and other paper transaction EFTs is initiated through
devices like cards or codes that let you, or those you authorize.
Access your account. Many financial institution use ATM or debit
cards and personal identification numbers (PINs) for this purpose.
Some use other type of debit cards such as those that require, at
the most, your signature or a scan. For example, some use radio
frequency identification (RFID) or other forms of contactiess
technology that scan your information without direct contact. The
feral electronic fund transfer Act (EFT Act) covers some electronic
consumer transaction.

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BANKING INDUSTRY PROFILE

BANKING

The word "BANK" is derived from the 'Bancus' or 'Banque', which

means a bench. Inthe early days the European moneylenders and
moneychangers used to sit on the benches and exhibit coins of
different countries in big heaps for the purpose of changing and
lending money.

Definition of E-BANKING
Definition:
A Banking company is defined as a company, which transacts the
business of banking in India.

As per Banking Regulation Act 1949 Section 5(b)

"Banking means, accepting for the purpose of lending or
investment, of deposits of money from the public, repayable on
demand or otherwise, and withdrawal by cheque, draft, or
otherwise."

According to Sir John Paget

"No person or body, corporate or otherwise can be a banker who
does not, (a) take deposits accounts, (b) take current accounts,
(c) issue and pay cheques, (d) collect cheques, crossed and
uncrossed, for his customers."In simple words we can say that
bank is a financial institution which deals in money and credit by
obtaining deposits from public and giving loans and credit to
trade and industrial respectively. "

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INTRODUCTION
TO HDFC BANK

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HDFC COMPANY PROFILE

HDFC BANK LTD

Type
Private
Founded 1994
Headquarters HDFC Bank Ltd.,
Mumbai, India
Industry
Banking Insurance
Capital Markets and allied industries
Products
Loans, Credit Cards, Savings,
Investment vehicles Insurance etc.
Website

www.hdfcbank.com

HDFC Bank(NYSE: HDB), one amongst the firsts of the new

generation, tech-savvycommercial banks of India, was
incorporated in August 1994, after the Reserve Bank ofIndia
allowed setting up of Banks in the private sector. The Bank was
promoted by theHousing Development Finance Corporation
Limited, a premier housing financecompany (set up in 1977) of
India..

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COMPANY PROFILE

History
The Housing Development Finance Corporation Limited (HDFC)
was amongst the first to receive an 'in principle' approval from
the Reserve Bank of India (RBI) to set up a bank in the private
sector, as part of the RBI's liberalization of the Indian Banking
Industry in 1994. The bank was incorporated in August 1994 in
the name of 'HDFC Bank Limited', with its registered office in
Mumbai, India. HDFC Bank commenced operations as a
Scheduled Commercial Bank in January 1995.
HDFC Bank was incorporated in 1994 by Housing Development
Finance Corporation Limited (HDFC), India's largest housing
finance company. It was among the first companies to receive an
'in principle' approval from the Reserve Bank of India (RBI) to set
up a bank in the private sector. The Bank started operations as a
scheduled commercial bank in January 1995 under the RBI's
liberalization policies.
Times Bank Limited (owned by Bennett, Coleman & Co. / Times
Group) was merged with HDFC Bank Ltd., in 2000. This was the
first merger of two private banks in India. Shareholders of Times
Bank received 1 share of HDFC Bank for every 5.75 shares of
Times Bank.
In 2008 HDFC Bank acquired Centurion Bank of Punjab taking its
total branches to more than 1,000. The amalgamated bank
emerged with a base of about Rs. 1,22,000crore and net
advances of about Rs.89,000 crore. The balance sheet size of the
combined entity is more than Rs. 1,63,000crores.

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Distribution network
HDFC Bank is headquartered in Mumbai. The Bank has an
nationwide network of 2000 branches spread in 996 towns and
cities across India. All branches are linked on an online real-time
basis. Customers in over 500 locations are also serviced through
Telephone Banking. The Bank has a presence in all major
industrial and commercial centers across the country. Being a
clearing/settlement bank to various leading stock exchanges, the
Bank has branches in the centers where the NSE/BSE have a
member base.

The Bank also has 5,998 networked ATMs across these towns and
cities. Moreover, HDFC Bank's ATM network can be accessed by
all domestic and international Visa/MasterCard, Visa
Electron/Maestro, Plus/Cirrus and American Express
Credit/Charge cardholders.

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BUSINESS FOCUS
HDFC Bank's mission is to be a World Class Indian Bank. The
objective is to build sound customer franchises across distinct
businesses so as to be the preferred provider of banking services
for target retail and wholesale customer segments, and to
achieve healthy growth in profitability, consistent with the bank's
risk appetite.

The bank is committed to maintain the highest level of ethical

standards, professional integrity, corporate governance and
regulatory compliance. HDFC Bank's business philosophy is based
on five core values: Operational Excellence, Customer Focus,
Product Leadership, People and Sustainability.

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Business of HDFC bank

HDFC Bank deals with three key business segments. - Wholesale
Banking Services, Retail Banking Services, Treasury. It has
entered the banking consortia of over 50 corporates for providing
working capital finance, trade services, corporate finance, and
merchant banking. It is also providing sophisticated product
structures in areas of foreign exchange and derivatives, money
markets and debt trading and equity research.
Wholesale banking services
Blue-chip manufacturing companies in the Indian corp. to small &
mid-sized corporates and agri-based businesses. For these
customers, the Bank provides a wide range of commercial and
transactional banking services, including working capital finance,
trade services, transactional services, cash management, etc. The
bank is also a leading provider for its to corporate customers,
mutual funds, stock exchange members and banks.

Retail banking services

HDFC Bank was the first bank in India to launch an International
Debit Card in association with VISA (VISA Electron) and issues
the MasterCard Maestro debit card as well. The Bank launched its
credit card business in late 2001. By March 2009, the bank had a
total card base (debit and credit cards) of over 13 million. The
Bank is also one of the leading players in the merchant
acquiring business with over 70,000 Point-of-sale (POS)
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terminals for debit / credit cards acceptance at merchant

establishments. The Bank is positioned in various net based B2C
opportunities including a wide range of internet banking services
for Fixed Deposits, Loans, Bill Payments, etc.

Treasury
Within this business, the bank has three main product areas Foreign Exchange and Derivatives, Local Currency Money Market
& Debt Securities, and Equities. These services are provided
through the bank's Treasury team. To comply with statutory
reserve requirements, the bank is required to hold 25% of its
deposits in government securities. The Treasury business is
responsible for managing the returns and market risk on this
investment portfolio.

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Facilities provided by HDFC bank

Personal Banking

Accounts & Deposits

Loans
Cards
Forex
Investments & Insurance

NRI Banking

Accounts & Deposits

Remittances
Investments & Insurance Loans Payment Services

Wholesale Banking

Corporate
Small & Medium Enterprises
Financial Institutions & Trusts
Government Sector

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E-banking facilities provided by

HDFC bank

Net Banking

InstaAlerts

Branch Network

ATM

Email Statements

PhoneBanking

Mobile Banking

P.O.Boxes

Net Banking
HDFC Bank offers you a comprehensive range of
transactions across multiple products through its NetBanking
channel. So just log in to NetBanking and conduct 135 +
transactions from the comfort of your home or office.
You can check your Account Balance, book Fixed and Recurring
Deposits, Download A/c Statement up to 5 years, pay your Bills,
Recharge your Mobile/ DTH connection, and much more in a
secure environment.
You can log in to NetBanking using your Customer ID and IPIN
(password).

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Experience Convenience ... Choose NetBanking!

Are you tired of heading down to a Bank branch? Of waiting in
queues? Of not knowing how to manage your account at your
convenience? We have the answer!
NetBanking is an incredibly convenient and powerful tool, letting
you do everything you want with your accounts at the click of a
mouse.
It is Real Time, giving you up-to-the-second details on your
account.
All you need to do is Log in using your Customer ID and IPIN
(NetBanking password).
Your Customer ID is mentioned on your account statement/
account welcome letter/ chequebook. (Current account / HUF
customers can obtain this from the branch). You can re-generate
your IPIN online in 3 easy steps.
Some of the transactions you can do through NetBanking are:

Check your account balances and download 5 year account

statement in 5 formats, instantly
Book Fixed Deposit / Recurring Deposit
Pay Utility Bills
View your Credit Card details and pay your Credit Card Bills
Recharge your Prepaid Mobile & DTH Connections
Invest in Mutual Funds Online
Book IRCTC Tickets online
Purchase a Gift Card
Pay your Taxes online
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Update your PAN Details online

Request Stop Payment of a Cheque/ Hotlist you Debit Card/
Credit Card
View your Loan details
Transfer funds between accounts within HDFC Bank and
other Bank Accounts

InstaAlerts

Now you can get regular updates on your bank account on your
mobilephone or email ID. Just register for our Insta Alert service
and receive updates on youraccount as and when the select
transaction happens - all this without visiting the branch or
ATM.You can register for any or all of the following alerts:

Debit transactions greater than Rs. 5,000/ Rs.10, 000/ Rs.

20,000/Rs. 50,000
Credit in account greater than Rs. 5,000/ Rs.10, 000/ Rs.
20,000/Rs. 50,000
Account Balance below Rs. 5,000/ Rs.10, 000/ Rs.
20,000/Rs. 50,000 Weekly account balance
Salary Credits
Utility bill payment due Alert

Fees and charges

The service is FREE for you.

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Branch Network
Welcome to the networked world of HDFC Bank. You can
open an account and access it from any branch nearest to
your residence or office, anywhere in the country.

The sophisticated, computerized network gives you the

flexibility of accessing your Savings or Current Account from
any of over 3,488 branches and over 11,426 ATMs across
India.

ATM
Our wide range of ATMs across the country ensures that you
are never too far away from money. You can cater to your
diverse banking needs, right from just withdrawing cash to a
whole host of other transactions to help you manage your
account with complete security and convenience, whenever
you want.
Welcome to 24 hour banking!

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Features and benefits

Enjoy various features using our Bank ATMs. Here is a look at
what you can do at our ATMs:
24 hour access to cash : You can withdraw up to Rs. 10,000
per day on your ATM Card and up to Rs. 25,000 or more on
your Debit Card (depending on the type of card held).
Personalized cash withdrawals : Save time on your cash
withdrawal transactions by pre-setting your preferred language
/ account / amount.
View account balances and mini-statements : Get a ministatement with the last 9 transactions on your account, with
your account balance.
Change ATM PIN :Change your ATM PIN whenever you want.
Order a cheque book or account statement : You can order
a cheque book or an account statement from our ATMs.
HDFC Bank Credit Card Payment : Pay your HDFC Bank
Credit Card bill at any of our ATMs. The primary account of
your Debit / ATM card will be debited.
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Deposit cash or cheques : Deposit cheques or cash into your

account at our selected non-branch ATMs.
Transfer funds between accounts : You can transfer funds
between the accounts. A maximum of 16 accounts (Savings /
Current) can be linked to a card.
Refill your Prepaid mobile : Refill your prepaid mobile using
the Prepaid Mobile Refill service instantly.
Pay your utility bills : Pay your mobile, telephone and
electricity bills through our ATMs using BillPay, a
comprehensive bill payment solution.
Cheque Status Enquiry : Get information about the status of
a cheque issued from your account.
NetBanking password request : Request for your
NetBanking password (IPIN) at an ATM and it will be sent to
your recorder mailing address.
Registration for Mobile Banking : Register for
MobileBanking and use our Banking services through your
mobile.

There are no charges levied for use of other banks cards on

HDFC Bank ATMs for cash withdrawals and balance enquires.

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Fees and charges

There is no charge for using the card at HDFC Bank ATMs
Charges on Other Bank's ATM
Networks in India

Charges

For Current Account Debit Card

Holders

Balance enquiry - Free

Cash withdrawal - Rs. 20/-* per transaction

For Salary & Saving Account

Debit Card Holders

Total of 5 ATM Financial and Non-Financial transactions per

month at other Bank ATMs free of cost.
Charges from the 6th Transaction onwards:
Rs. 20.00/-* per Financial transaction - i.e Cash
Withdrawals
Rs. 8.50/-** per Non-Financial transaction - e.g. Balance
Inquiry, Pin Change & Mini Statement

You will be allowed to withdraw a maximum of Rs. 10,000 per

transaction from another banks ATM, w.e.f. from 15th October
2009.
You will not be charged any fee when you use your ATM / Debit
Card at any merchant location.
However, at petrol pumps and railway stations you will be
charged a fee as per Industry practice.
Transaction

Cash Withdrawal

Balance Inquiry

International Visa/ Plus ATMs and Cirrus ATMs

Rs. 110/-

Rs. 15/-***

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Email Statements

Receive your account statements via email without any delays for
your Savings and Current Accounts. You also have the option to
maintain the statement on email, print it or save it on a CD. Your
account info is now available to you at the click of a button with
email statements.

Features and benefits

Email statements are FREE

Monthly email statements for your Savings Account
Opt for daily / weekly / monthly email statements for your
Current Account
Physical statements will be discontinued if you opt for email
statements
Based on the date of account opening, it follows a staggered
cycle
Even if you are registered for hold mails, you can opt for
email statements
Get information on our new products and mandatory
information online.
Email statements will be non-combined statements.

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 PhoneBanking
PhoneBanking services are a combination of IVR and Agent
offering, depending on the type of transaction. For all
transactions that cannot be completed on the IVR such as
reporting loss of cards, logging complaints, requests &
queries, PhoneBanker-assisted services are available

Features and benefits

Get up-to-the-second details of your Savings or Current

Accounts and Fixed Deposits
Get the details of the last 5 transactions on your account.
Enquire on the status of cheques issued or deposited
anywhere in India#
Order a Cheque Book / Account statement to be delivered to
your mailing address.
Stop payment of a single cheque or a series of cheques, 24
hours a day
Get details of the outstanding loan amount, enquire about
your loan account, request for an interest certificate and
repayment schedule, etc #.
Open a Fixed Deposit or enquire about your Fixed Deposits /
TDS#
Transfer funds between Accounts linked to your Customer ID
Pay your cellular, telephone & electricity bills using BillPay
Call PhoneBanking to report Loss of your ATM / Debit /
Prepaid Card.
This service is available 24 hours on all days
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Get details on HDFC Bank products and services by talking

to our PhoneBanker
Enquire about latest interest / exchange rates by talking to
our PhoneBanker

SMS BANKING
With SMSBanking you can access your account on your mobile
wherever you are. Access your bank account, make banking
transactions, monitor your accounts and fixed deposits on your
mobile.

SMSBanking, a great way to have your bank account at

your fingertips!
What features does SMSBanking have?
Take a look at the features of SMSBanking:

View balance details

Get last 3 transaction details
Request for cheque book
Stop cheque payment
Enquire cheque status
Request for account statement
Get Fixed Deposit details
Request forIPIN generation
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 NRI SERVICE DESK / OVERSEAS P.O.

BOXES:
At HDFC Bank, we make it easier for you to reach us from
across the world. Keeping in mind the global reach of our
esteemed NRI customers like you, our PO Box facility is
available for you in USA, UK, UAE, Australia, Canada, Saudi
Arabia,
Singapore,
Germany.

So go ahead and mail us your account related* requests to

the below listed local PO Box addresses in your country.
You no longer have to incur expensive courier charges to
send us account instructions. All you need to do is simply
mail your instruction to a local PO Box in your country
overseas. What's more, this facility is available to you free of
charge.

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Importance of E-banking facility

Businesses rely on efficient and rapid access to banking
information for cash flow reviews, auditing and daily financial
transaction processing. E-banking offers ease of access, secure
transactions and 24-hour banking options. From small start-up
companies to more established entities, small businesses rely on
e-banking to eliminate runs to the bank and to make financial
decisions with updated information. In an information-driven
business climate, companies who do not use e-banking are at a
competitive disadvantage.

Activity Review
Business owners, accounting staff and other approved employees
can access routine banking activity such as deposits, cleared
checks and wired funds quickly through an online banking
interface. This ease of review helps ensure the smooth processing
of all banking transactions on a daily basis, rather than waiting
for monthly statements. Errors or delays can be noted and
resolved quicker, potentially before any business impact is felt.

Productivity
E-banking leads to productivity gains. Automating routine bill
payments, minimizing the need to physically visit the bank and
the ability to work as needed rather than on banking hours may
decrease the time involved in performing routine banking
activities. Additionally, online search tools, banking actions and
other programs can allow staff members to research transactions
and resolve banking problems on their own, without interacting
with bank employees. In some cases, month-end reconciliations
for credit card transactions and bank accounts can be automated
by using e-banking files.
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 Lower Banking Costs

Banking relationships and costs are often based on resource
requirements. Businesses that place more demands on banking
employees and need more physical assistance with wire transfers,
deposits, research requests and other banking activities often
incur higher banking fees. Opting for e-banking minimizes
business overhead and banking expenses.

Reduced Errors
Utilizing e-banking reduces banking errors. Automation of
payments, wires or other consistent financial activities ensures
payments are made on time and may prevent errors caused by
keyboard slips or user error. Additionally, opting for electronic
banking eliminates errors due to poor handwriting or mistaken
information. In many cases, electronic files and daily reviews of
banking data can be used to double or triple check vital
accounting data, which increases the accuracy of financial
statements.

Reduced Fraud
Increased scrutiny of corporate finances through audits and antifraud measures requires a high level of visibility for all financial
transactions. Relying on e-banking provides an electronic
footprint for all accounting personnel, managers and business
owners who modify banking activities. E-banking offers visibility
into banking activities, which makes it harder for under-the-table
or fraudulent activities to occur.

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E- BANKING SERVICES:

1. Bill payment service

Each bank has tie-ups with various utility companies, service providers and
insurancecompanies, across the country. It facilitates the payment of
electricity and telephonebills, mobile phone, credit card and insurance
premium bills.
To pay bills, a simple one-time registration for each biller is to be
completed. Standinginstructions can be set, online to pay recurring bills,
automatically. One-time standinginstruction will ensure that bill payments
do not get delayed due to lack of time. Mostinterestingly, the bank does not
charge customers for online bill payment.

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2. Fund transfer

Any amount can be transferred from one account to another of the same or
any anotherbank. Customers can send money anywhere in India. Payees
account number, hisbank and the branch is needed to be mentioned after
logging in the account. Thetransfer will take place in a day or so, whereas
in a traditional method, it takes aboutthree working days. ICICI Bank says
that online bill payment service and fund transferfacility have been their
most popular online services.

3. Credit card customers

Credit card users have a lot in store. With Internet banking, customers can
not only paytheir credit card bills online but also get a loan on their cards.
Not just this, they can alsoapply for an additional card, request a credit line
increase and God forbid if you loseyour credit card, you can report lost card
online.

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4. Railway pass

This is something that would interest all the aamjanta. Indian Railways has
tied up withICICI bank and you can now make your railway pass for local
trains online. The passwill be delivered to you at your doorstep. But the
facility is limited to Mumbai, Thane,Nasik, Surat and Pune. The bank would
just charge Rs 10 + 12.24 percent of service tax.
5. Investing through Internet banking

Opening a fixed deposit account cannot get easier than this. An FD can be
openedonline through funds transfer. Online banking can also be a great
friend for lazyinvestors.
Now investors with interlinked demat account and bank account can easily
trade in thestock market and the amount will be automatically debited from
their respective bankaccounts and the shares will be credited in their demat
account.
Moreover, some banks even give the facility to purchase mutual funds
directly from theonline banking system.
So it removes the worry about filling those big forms for mutual funds, they
will now bejust a few clicks away. Nowadays, most leading banks offer both
online banking anddemat account. However if the customer have
theredemat account with independentshare brokers, then need to sign a
special form, which will link your two accounts.

Page | 37

6. Recharging your prepaid phone

Now there is no need to rush to the vendor to recharge the prepaid phone,
every timethe talk time runs out. Just top-up the prepaid mobile cards by
logging in to Internetbanking. By just selecting the operator's name,
entering the mobile number and theamount for recharge, the phone is
again back in action within few minutes.

7. Shopping at your fingertips

Leading banks have tie ups with various shopping websites. With a range
of all kind ofproducts, one can shop online and the payment is also made
conveniently through theaccount. One can also buy railway and air tickets
through Internet banking.

Page | 38

BENEFITS/CONCERNS OF E-BANKING
BENEFITS OF E-BANKING

For Banks
Price- In the long run a bank can save on money by not
paying for tellers or for managing branches. Plus, it's
cheaper to make transactions over the Internet.
Customer Base- the Internet allows banks to reach a
whole new market- and a well off one too, because there
are no geographic boundaries with the Internet. The
Internet also provides a level playing field for small banks
who want to add to their customer base.
Efficiency- Banks can become more efficient than they
already are by providing Internet access for their customers.
The Internet provides the bank with an almost paper less
system.
Customer Service and Satisfaction- Banking on the
Internet not only allow the customer to have a full range of
services available to them but it also allows them some
services not offered at any of the branches. The person does
not have to go to a branch where that service may or may
Page | 39

not be offer. A person can print of information, forms, and

applications via the Internet and be able to search for
information efficiently instead of waiting in line and asking
ateller. With more better and faster options a bank will
surely be able to create better customer relations and
satisfaction.
Image- A bank seems more state of the art to a customer if
they offer Internet access. A person may not want to use
Internet banking but having the service available gives a
person the feeling that their bank is on the cutting image.

Page | 40

For Customers
Bill Pay- Bill Pay is a service offered through Internet
banking that allows the customer to set up bill payments to
just about anyone. Customer can select the person or
company whom he wants to make a payment and Bill Pay
will withdraw the money from his account and send the
payee a paper check or an electronic payment

Other Important Facilities- E- banking gives customer

the control over nearly every aspect of managing his bank
accounts.

Besides

the

Customers

can,

Buy

and

Sell

Securities, Check Stock Market Information, Check Currency

Rates, Check Balances, See which checks are cleared,
Transfer Money, View Transaction History and avoid going to
an actual bank. The best benefit is that Internet banking is
free. At many banks the customer doesn't have to maintain
a required minimum balance. The second big benefit is
better interest rates for the customer.

Page | 41

CONCERNS WITH E-BANKING

As with any new technology new problems are faced.
Customer support - Banks will have to create a whole new
customer relations department to help customers. Banks
have to make sure that the customers receive assistance
quickly if they need help. Any major problems or disastrous
can destroy the banks reputation quickly an easily. By
showing the customer that the Internet is reliable you are
able to get the customer to trust online banking more and
more.
Laws - While Internet banking does not have national or
state boundaries, the law does. Companies will have to
make sure that they have software in place software
market, creating a monopoly.
Security - Customer always worries about their protection
and security or accuracy. There are always questions
whether or not something took place.
Other challenges - Lack of knowledge from customers
end, sit changes by the banks, etc.
Page | 42

Strengths

Right strategy for the right products.

Superior

customer

service

Weaknesses

vs.

competitors.

Some gaps in range for certain

Great Brand Image

High degree of customer satisfaction.

Good place to work

Lower response time with efficient

Processes and systems, etc

and effective service.

Management cover insufficient.

Sectoral growth is constrained by

Dedicated

workforce

sectors.

Customer

service

staff

needs

training.

aiming

at

making a long-term career in the

low

field.

competition for staff

unemployment

levels

and

Opportunities

Profit margins will be good.

Could extend to overseas broadly.

Great risk involved

New specialist applications.

Very high competition prevailing in

Could seek better customer deals.

Fast-track

career

development

Threats

the industry.

major competitors.

opportunities on an industry-wide

basis.

for

developing

techniques to provide added-value

Lack of infrastructure in rural areas

could constrain investment.

An applied research centre to create

opportunities

Vulnerable to reactive attack by

High volume/low cost market is

intensely competitive.

services

Page | 43

1. Start early with simple, user-friendly, robust andhighly scalable

services.
2. Use the same secure, mobile password in all devices and
channels (including contact centers), for both identification and
transaction confirmation.
1. Include all services in the same portal to gain economies of
scope and repetition. Introduce new services gradually to keep
up user interest.
2. Make e-Banking a part of branch banking in order to motivate
the local personnel to sell the service.

3. Provide the same services and user logic to both private and
corporate customers to gain not only the reuse advantages of
technology and branding, but also the economy of repetition.
4. Let your corporate and private users meet each other in the
Internet bank via such thins as mall-like link collection
(available to merchants using the bank's services).

7.Use both real-life situations and interest basedpersonalization

and customization to provide userswith targeted offers.
Page | 44

News and articles

1.

Any time money, no more: How

frequent transactions at ATMs

become expensive
New Delhi | Updated: Aug 19 2014, 09:31 IST
SUMMARY

Come Nov 1, frequent usage of

ATMs will become expensive, with
RBI imposing limit of transactions

Taking out a mini-statement or even changing PIN will amount to a transaction

Page | 45

COME November, frequent usage of ATMs will become expensive, with the RBI imposing a limit of
three transactions financial and non-financial per month from ATMs of other banks and five
from the same bank in the six metropolitan cities. You will be required to pay a fee of up to R20 for
using ATMs beyond the permitted numbers of transactions in Delhi, Mumbai, Chennai, Bangalore,
Kolkata and Hyderabad.
Taking out a mini-statement or even changing your PIN will amount to a transaction. The central
bank has, however, said that nothing precludes a bank from offering more than three free
transactions at other bank ATMs to its account holders if it so desires.
Recently, a few banks and the Indian Banks Association (IBA) had approached RBI seeking changes
in the extant instructions regarding free transactions at other banks' ATMs. Referring to the growing
cost of ATM deployment and maintenance incurred by banks, on one hand, and the rising
interchange outgo due to these free transactions (on the other), the IBA had sought the removal of
free transactions at other banks' ATMs at metro centres and other townships in the country," said the
RBI circular.

2.Banks set to beef up security at ATMs

after Bangalore incident
Summary:
The bank will further strengthen the security and take appropriate steps: Corporation Bank

Banks are gearing up to enhance security at ATMs after a

review of threat perception at various locations (Reuters)

Alarmed by the recent Bangalore incident, banks are gearing up to enhance security at ATMs
after a review of threat perception at various locations.

Page | 46

"Though our ATMs have adequate security, the bank will review it and beef up where required,"
a senior official of Canara Bank told PTI.
As per the usual practice, banks deploy full-time security guards at the off-site ATMs
(Automated Teller Machines), while at the on-site ATM i.e. at the bank branch, guards are
placed only at night.
According to a Corporation Bank official, in the light of the incident in Bangalore, the bank will
further strengthen the security and take appropriate steps.
In a shocking incident on Tuesday, a women employee of Corporation Bank was attacked
brutally at the on-site ATM of the bank.
The assailant had attacked her after entering the ATM booth closely following her and downing
the rolling shutter when she refused to draw money and hand it over to him.
The private security industry, which manages the cash logistics and security of bank ATMs, has
been raising the security issue of ATM operations time and again with the government and
banks.
"Its the long wait for the gun licences that will cost the ATM security. The situation could
worsen further as the government has announced one lakh more ATMs in next 2 years.
"Imagine what could be state then considering the slow progress on the armed security front,"
said Rituraj Sinha managing director of cash management company SIS Prosegur.
As of August, there were 1,26,950 ATMs of banks across the country. Of this, the number of
onsite ATMs are 63,380 while there 63,570 cash dispensing machines off-site.
Public sector banks had a combined 72,340 branches, of which 37,672 had onsite ATMs at the
end of March 2013.

1.

Page | 47

3.Soon, you can withdraw cash from ATM even

without bank account: Raghuram Rajan
Summary:
RBI in talks with markets to set up trade receivables exchange to facilitate credit to MSMEs.'

In another effort towards financial inclusion, the RBI has given in-principle approval to setting
up of a new payment system that will facilitate fund transfers from bank account holders to those
without accounts through automated teller machines (ATMs).
Essentially, the sender can have the money withdrawn from his account through an ATM
transaction. The intermediary processes the payment, and sends a code to the recipient on his
mobile that allows him to withdraw the money from any nearby banks ATM, said RBI
governor Raghuram Rajan on Wednesday at the Nasscom summit, and highlighted how
technologies can be used to deepen financial inclusion.
Rajan also said the RBI is in talks with market players to set up a trade receivables exchange to
better facilitate credit to micro, small and medium enterprises (MSMEs). Rajan explained that
MSMEs get squeezed all the time by their large buyers, who pay after long delays.
All would be better off if the MSME could sell its claim on the large buyer in the market. The
MSME would get its money quickly, while the market would get a claim on the better rated large
buyer instead of holding a claim on the MSME. The large buyer could get a better price for his
purchases.
The governor also said that the RBI will accelerate dialogue with key players in the telecom
industry in the next few months to better facilitate mobile banking through the SMS and
unstructured supplementary service data channels.
The RBI had recently put out a report by a technical committee on mobile banking, which
recommended a standardised procedure for registration and authentication of customers for
mobile banking services and the adoption of a common application platform across all banks,
which can work on any handset.
Page | 48

Page | 49

OBJECTIVES OF THE STUDY

The main objectives of the study are:
To study the awareness level of service class people
regarding E-Banking.
To find out the frequency and the factors that influences the
adoption of E-Banking services.
To measure the satisfaction level of people.
To understand the problems encountered in by service class
people while using E-Banking services(ATM, Phone banking,
etc)

Page | 50

RESEARCH METHODOLOGY
Research is a careful investigation or inquiry especially through
search for new facts in branch of knowledge: market research
specifies the information. Required to address these issues:
designs the method for collecting information: manage and
implements the data collection process analyses the results and
communicates the finding and their implications.

Research problem is the one which requires a researcher to find

out the best solution for the given problem that is to find out the
course of action, the action the objectives can be obtained
optimally in the context of a given environment.

RESEARCH DESIGN

A framework or blueprint for conducting the research project. It

specifies the details of the procedures necessary for obtaining the
information needed to structure and/or solve research problems.
A good research design lays the foundation for conducting the
project. A good research design will ensure that the research

Page | 51

project is conducted effectively and efficiently. Typically, a

research design involves the following components, or tasks:
Define the information needed.
Design the research.
Specify the measurement and scaling procedures.
Construct and present a questionnaire or an appropriate
form for data collection.
Specify the sampling process and sampling size.
Develop a plan of data analysis.

Data Collection:
The objectives of the project are such that both primary and
secondary data is required to achieve them. So both primary and
secondary data was used for the project. The mode of collecting
primary data is questionnaire mode and sources of secondary
data are various magazines, books, newspapers, & websites etc.

1. Primary Data: The primary data was collected to measure the

customer satisfaction and their perception regarding HDFC Bank.
The primary data was collected by means of questionnaire and
analysis was done on the basis of response received from the
customers. The questionnaire has been designed in such a
manner that the consumers satisfaction level can be measured
and consumer can enter his responses easily.
Page | 52

2. Secondary Data: The purpose of collecting secondary data

was to achieve the objective of studying the recent trends and
developments taking place in banking.

Sample size

15 customers were selected.

Sampling Unit
Dombivli (Mumbai)
Sampling Technique

Convenient sampling.
Analysis and Interpretation
After the data collection, it was compiled, classified and tabulated
manually and with help of computer. Then the task of drawing
inferences was accomplished with the help of percentage and
graphic method.

Page | 53

CHAPTER 6

Page | 54

1. Are you aware about Internet banking HDFC bank?

Aware
90
80
70
60
50
40

79%

30
20
21%

10
0
yes

No

Interpretation: 79% respondents ofHDFC bank are aware about

the Internet banking of HDFC bank and 21 are not aware.

Page | 55

2. Are you Internet banking holder of HDFC bank?

Internet Banking Holder of HDFC bank

60
52%
50
40
30

24%

20
12%

12%

Other

Both

10
0
Yes

No

Interpretation: 52% respondents are banking holder of HDFC

bank, 24% respondent are not banking holder of HDFC bank,
12% respondent are Internet banking holder of other bank and
12% respondent doing with both.

Page | 56

3. Are you doing Internet banking with HDFC bank?

Internet Banking with HDFC bank

60
50
40
30

56%
44%

20
10
0
Yes

No

Interpretation: 56% respondent of Bank of Baroda doing

Internet banking with it and 44% are not doing with.

Page | 57

5. Are you using Internet banking to view the transaction?

View the Transaction

20%

Yes
No
56%

Other

24%

Interpretation: 59% respondents of HDFC bank are using

Internet Banking to view the transaction and 49% are not using
for this.

Page | 58

6. How many times you are using Internet banking in a month?

Using Internet Banking

10

37

Within 10 days
20 days
30 days

34

Daily
Year

9
10

Interpretation: 37% respondents are using Internet Banking

within 10 days, 34% using daily, 10% using in 30 days, 10
%using it in a year and 9% using in 20 days.

Page | 59

6. Do you feel other Bank providing better facility to the customer

in Internet banking than HDFC bank?

Better Facility

27%

32%

Yes
No
Other

41%

Interpretation: 41% respondent feels HDFC bank providing

better facility in Internet Banking than other Bank and 27%
respondents feels other Bank providing better facility and rest
32% cant say because of not using any others bank service of
internet banking.

Page | 60

7.

Within how many days of submitting your application form,

Internet banking Operationalized?

Operationalized Internet Banking

10%

30-40

18%

20-30 days

35%

10-20 days

37%

Within 10 days
0

10

20

30

40

Interpretation: 37% respondents got Internet banking from the

Branch within 10days, 35% got 10-20 days, 18% got 20-30 days
and 10% got 30-40 days.

Page | 61

8. Are you getting requisite information about Internet banking

from the website of HDFC bank?

Information
100
80
60
85%

Information

40
20

15%

0
yes

NA

Interpretation: 15% respondents are getting information from

BOB website and 85% are unable to say it.

Page | 62

9. What facility you mostly prefer in Internet banking?

Using Internet Banking

30

28%

25
22%

20
15

18%
14%

10

10%

8%

5
0
Transfer
Fund

Pay online Book Airline

tax
ticket

Book Rail
ticket

More than1

NA

Interpretation: 14% respondents use the Internet banking

doing the transfer fund, 8% use for pay online tax, 10% for book
Rail ticket, 18% for book Airline ticket, 22% use more than 1
service and rest 28% havent ever used Internet banking not only
of HDFC bank even not of other bank.
Page | 63

Page | 64