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Research Project Report


Banking in Developing and Developed Country

Submitted to the MBA Department in Partial

fulfillment of the Requirement for the degree
Masters of Business Administration
Session 2013-2015


U.P.T.U , Lucknow

M.B.A. IV Sem
Roll No. 1306870112

Meerut Institute of Engineering &

NH. 58 Baghpat Bypass, Road Meerut U.P.


I would like to thank the respected Branch Manager of Federal Bank, for their
cooperation and assistance in conducting the survey over their Branch. I would also like
to thank the customers of the respective branch to share their views, opinions and
feedback on Online Banking.
I would like to thank my Ms. Akansha Dubey for encouraging the students in doing the
project work and providing all the necessary help.
I would also like to express my gratitude to my All Facility for allotting various
supervisors to help us out with the project work and to make our work more easy.
Further, I would like to thank my supervisor, Mrs. Sutapa Roy, who motivated me to take
up this challenging topic.
I would be failing in my duty if I fail to acknowledge the moral support I received from
my family members and friends.

M.B.A. IV Sem
Roll No. 1306870112


Online banking (or Internet banking or E-banking) allows customers of a
financial institution to conduct financial transactions on a secure website
operated by the institution, which can be a retail or virtual bank, credit union
or building society. It may include of any transactions related to online
The main purpose that banks have been serving since their inception is
keeping our money safe for us. While keeping our money safe, they also let
us earn a certain amount of interest on the money deposited with them.
Traditional banks have been doing this, and internet banks continue the same
function. The only difference is in the way the transactions are made.
To access a financial institution's online banking facility, a customer having
personal Internet access must register with the institution for the service, and
set up some password (under various names) for customer verification. The
password for online banking is normally not the same as for telephone
banking. Financial institutions now routinely allocate customer numbers
(also under various names), whether or not customers intend to access their
online banking facility. Customer numbers are normally not the same as
account numbers, because a number of accounts can be linked to the one
customer number. The customer will link to the customer number any of
those accounts which the customer controls, which may be cheque, savings,
loan, credit card and other accounts. To access online banking, the customer
would go to the financial institution's website, and enter the online banking
facility using the customer number and password. Some financial


institutions have set up additional security steps for access, but there is no
consistency to the approach adopted.
Since bills are paid online, the need to writing checks, affix postage, and
post the payment in the mail is eliminated. Once the amount is entered and
the payee is checked off, the funds are automatically deducted from the
payer's choice of account.

Banking in India originated in the last decades of the 18th century. The IT
revolution influenced the Indian banking system a lot. The use of computers


had led to existence of online banking in India. The use of modern

innovation and computerization of the banking sector of India has increased
many folds after the economic liberalization of 1991 as the country's
banking sector has been exposed to the world's market. The Indian banks
were finding it hard to compete with the international banks in terms of the
customer service without the use of the information technology and
computers. Internet banking as a medium of delivery of banking services
and as a 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. In the light of this background, the objective of this paper
is to study the perceived usefulness of Internet Banking. This paper tries to
know the level of awareness among customers. This paper also tries to check
the perception of risks closely connected with Internet Banking and study
the scope of Internet Banking, so that companies can fulfill their duty in an
appropriate and suitable manner.




Financial sector reforms were initiated as part of overall economic reforms in
the country and wide ranging reforms covering industry, trade, taxation,
external sector, banking and financial markets have been carried out since mid
1991. A decade of economic and financial sector reforms has strengthened the
fundamentals of the Indian economy and transformed the operating
environment for banks and financial institutions in the country.
The most significant achievement of the financial sector reforms has been the
marked improvement in the financial health of commercial banks in terms of
capital adequacy, profitability and asset quality as also greater attention to risk
management. Further, deregulation has opened up new opportunities for
banks to increase revenues by diversifying into investment banking,







securitization, etc. At the same time, liberalization has brought greater

competition among banks, both domestic and foreign, as well as competition
from mutual funds, NBFCs, post office, etc.


originated in the first decade of 18th

century with The General Bank of India coming into existence in 1786. This

was followed by Bank of Hindustan. Both these banks are now defunct. The
oldest bank in existence in India is the State Bank of India being established
as "The Bank of Bengal" in Calcutta in June 1806. A couple of decades
later, foreign banks like Credit Lyonnais started their Calcutta operations in
the 1850s. At that point of time, Calcutta was the most active trading port,
mainly due to the trade of the British Empire, and due to which banking
activity took roots there and prospered. The first fully Indian owned bank was
the Allahabad Bank, which was established in 1865.
By the 1900s, the market expanded with the establishment of banks such as
Punjab National Bank, in 1895 in Lahore and Bank of India, in 1906, in
Mumbai - both of which were founded under private ownership. The Reserve
Bank of India formally took on the responsibility of regulating the Indian
banking sector from 1935. After India's independence in 1947, the Reserve
Bank was nationalized and given broader powers.
In terms of quality of assets and capital adequacy, Indian banks are considered
to have clean, strong and transparent balance sheets relative to other banks in
comparable economies in its region. The Reserve Bank of India is an
autonomous body, with minimal pressure from the government.
Currently, India has 88 scheduled commercial banks (SCBs) - 28 public
sector banks (that is with the Government of India holding a stake), 29 private


banks (these do not have government stake; they may be publicly listed and
traded on stock exchanges) and 31 foreign banks. They have a combined
network of over 53,000 branches and 17,000 ATMs. According to a report by
ICRA Limited, a rating agency, the public sector banks hold over 75 percent
of total assets of the banking industry, with the private and foreign banks
holding 18.2% and 6.5% respectively.

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Without a sound and effective banking system in India it cannot have a
healthy economy. The banking system of India should not only be hassle
free but it should be able to meet new challenges posed by the technology
and any other external and internal factors.
For the past three decades India's banking system has several outstanding
achievements to its credit. The most striking is its extensive reach. It is no
longer confined to only metropolitans or cosmopolitans in India. In fact,
Indian banking system has reached even to the remote corners of the
country. This is one of the main reason of India's growth process. Not long
ago, an account holder had to wait for hours at the bank counters for getting
a draft or for withdrawing his own money. Today, he has a choice. Gone are
days when the most efficient bank transferred money from one branch to
other in two days. Now it is simple as instant messaging or dial a pizza.
Money have become the order of the day.
The journey of Indian Banking System can be segregated into three distinct
phases. They are as mentioned below:

Early phase from 1786 to 1969 of Indian Banks

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Nationalisation of Indian Banks and up to 1991 prior to Indian

banking sector Reforms.


New phase of Indian Banking System with the advent of Indian

Financial & Banking Sector Reforms after 1991.

The General Bank of India was set up in the year 1786. Next came Bank of
Hindustan and Bengal Bank. The East India Bank established Bank of
Bengal (1809), Bank of Bombay (1840) and Bank of Madras (1843) as
independent units and called it Presidency Banks. These three banks were
amalgamated in 1920 and Imperial Bank of India was established which
started as private shareholders banks, mostly Europeans shareholders.
In 1865 Allahabad Bank was established and first time exclusively by
Indians, Punjab National Bank Ltd. was set up in 1894 with headquarters at
Lahore. Between 1906 and 1913, Bank of India, Central Bank of India, Bank
of Baroda, Canara Bank, Indian Bank, and Bank of Mysore were set up.







During the first phase the growth was very slow and banks also experienced
periodic failures between 1913 and 1948. To streamline the functioning and
activities of commercial banks, the Government of India came up with The

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Banking Companies Act, 1949 which was later changed to Banking

Regulation Act 1949 as per amending Act of 1965. Reserve Bank of India
was vested with extensive powers for the supervision of banking in India as
the Central Banking Authority.

Government took major steps in this Indian Banking Sector Reform after
independence. In 1955, it nationalised Imperial Bank of India with extensive
banking facilities on a large scale specially in rural and semi-urban areas. It
formed State Bank of India to act as the principal agent of RBI and to handle
banking transactions of the Union and State Governments all over the
Seven banks forming subsidiary of State Bank of India was nationalised in
1960 on 19th July, 1969, major process of nationalisation was carried out. 14
major commercial banks in the country was nationalised.
Second phase of nationalisation Indian Banking Sector Reform was carried
out in 1980 with seven more banks. The following are the steps taken by the
Government of India to Regulate Banking Institutions in the Country:

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1949 : Enactment of Banking Regulation Act.


1955 : Nationalisation of State Bank of India.


1959 : Nationalisation of SBI subsidiaries.


1961 : Insurance cover extended to deposits.


1969 : Nationalisation of 14 major banks.


1971 : Creation of credit guarantee corporation.


1975 : Creation of regional rural banks.


1980 : Nationalisation of seven banks with deposits over 200 crore.

Banking in the sunshine of Government ownership gave the public implicit
faith and immense confidence about the sustainability of these institutions.

This phase has introduced many more products and facilities in the banking
sector in its reforms measure. In 1991, under the chairmanship of M
Narasimham, a committee was set up by his name which worked for the




The country is flooded with foreign banks and their ATM stations. Efforts
are being put to give a satisfactory service to customers. Phone banking and

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net banking is introduced. The entire system became more convenient and
swift. Time is given more importance than money.
The financial system of India has shown a great deal of resilience. It is
sheltered from any crisis triggered by any external macroeconomics shock as
other East Asian Countries suffered. This is all due to a flexible exchange
rate regime, the foreign reserves are high, the capital account is not yet fully
convertible, and banks and their customers have limited foreign exchange

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In India the banks are being segregated in different groups. Each group has
their own benefits and limitations in operating in India. Few of them only
work in rural sector while others in both rural as well as urban. Many even
are only catering in cities. Some are of Indian origin and some are foreign

Banks - Public/ Private Sector


Public Sector Banks


Private Sector Banks


Internet Banking


Foreign Banks in India


Indian Banks Abroad

Public Sector Banks
Indian Bank

Indian Overseas Bank

Allahabad Bank

Bank of India

Punjab National Bank

Andhra Bank

Union Bank

Dena Bank

Canara Bank

Syndicate Bank

State Bank of Hyderabad Bank of Baroda

Sate Bank of Saurashtra

State Bank of Bikaner & Oriental Bank

State Bank of Travancore

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Punjab & Sind Bank

Bank of Maharashtra

State Bank of India


Vijaya Bank

State Bank of Mysore


UCO Bank

State Bank of Indore

UTI Bank

Corporation Bank

United Bank

Private Sector Banks

South Indian Bank

Centurian Bank

Cosmos Bank

IndusInd Bank

City Union Bank

Lakshmi Vilas Bank


Federal Bank

Bank of Rajasthan

Jammu & Kashmir Bank

Catholic Syrian Bank

Bank of Punjab

Nedungadi Bank

Saraswat Bank

ING-Vysya Bank

Development Credit Bank

DhanLakshmi Bank

Kalyan Bank

Ratnakar Bank

Kotak Bank

Karur Vysya Bank

Mandavi Bank

United Western Bank

Internet Banking

Bank of Baroda

IndusInd Bank

Federal Bank


UTI Bank

State Bank of India

State Bank of

Bank of Punjab



Canara Bank

Bank of Baroda


Corporation Bank

Punjab National Bank


Foreign Banks in India

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Standard Chartered Bank

Citi Bank

Abu Dhabi C.Bank

American Express Bank

ABN Amro Bank

ANG Bank

Banque Nationale De Paris

Asian Development


Indian banks Abroad
State Bank of India
Bahamas, Bahrain, Bhutan, Bangladesh, Belgium, Canada, France, Germany,
Hong Kong , Japan
Maldives, Mauritius , Nepal , Nigeria, Singapore , Sri Lanka , South Africa , UK
, US
Bank of Baroda
Bahamas , Belgium , Fiji , Mauritius , South Africa , Seychelles, Oman , UAE ,
UK , USA , Hong Kong
Syndicate Bank
UK, Qatar, Oman,
State Bank of India
Bank of India

Syndicate Bank
Canara Bank

Bank of Baroda

Export-Import Bank Of India State Bank of India
Bank of Baroda

Bank of India

Export-Import Bank Of India Indian Overseas Bank
Bank of India

State Bank of India

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Bank of India

State Bank of India

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A landmark ". COM" ventures in India between ICICI BANK and SIFY for online
distribution of retail banking products and services.
In a major development in the Internet world, ICICI Bank, the banking subsidiary of
ICICI Ltd. (NYSE: IC and IC.D) and Satyam Infoway Ltd. (NASDAQ: SIFY) announced
the setting up of a new ".COM" Bank for on-line distribution of retail banking products
and services on the Internet. This landmark agreement marks the coming together of
India's first Internet Banking provider, ICICI Bank, and India's largest private ISP and
mega-Portal, Satyam Infoway, to create a unique partnership between a major Bank and a
mega-Portal. The marriage between banking and portals is expected to be a win-win
potent combination, which is expected to result in improved customer orientation, lower
distribution cost, long-term customer relationships with ease of banking wherever and
whenever the customer wants it and enhanced profitability. The range of retail banking
products to be distributed through the portal would include savings accounts, current
accounts, fixed deposits, bill payments and other retail banking products that ICICI Bank
may offer through this on-line channel.
The surge in demand for e-commerce related services stems from the rapid growth in
Internet penetration in the country and a fundamental change in the business paradigm.
The two companies would therefore also explore several opportunities to complement
each other's strengths to capitalise on the opportunities in e-commerce. This would
include providing a platform for trade facilitation and payments over the Internet using
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innovative banking products of ICICI Bank. SIFY has a buyer to seller ordering/selling
website,, which is on-line except for the payments that are still
physical. ICICI Bank has developed an Internet based 'business to business' payment
module for purchasers and sellers to effect payments online. A synergistic offering of
these two products would be made so that such customers/users can complete the entire
transaction and payments online.
The two companies would expect to co-operate wherever feasible to extend the reach and
channels for distribution of financial products from ICICI Bank and Internet products
from SIFY. ICICI Bank, as a part of its "Click and Brick" strategic focus would set up
ATMs at the Satyam Access Points and Cyber Cafes, thereby increasing its reach across
the country. It would also offer Satyam Internet terminals at its branches, enabling
visitors to surf the Internet, thereby attracting new customers to its branches.

The two companies shall examine further business

opportunities, which would effectively synergise the
financial services strength of ICICI Bank and its Affiliates and
the technological expertise of Satyam Infoway and its
Affiliates. ICICI Bank and Satyam Infoway through this
partnership will play a strategic role in providing
revolutionary e-commerce solutions in India.

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The memorandum of understanding was signed today between Mr. H.N Sinor, Managing
Director & CEO of ICICI Bank and Mr. R. Ramraj, Managing Director of Satyam Info
ICICI is a diversified financial services Bank offering a wide range of products and
services to corporate and retail customers in India. ICICI Bank, a subsidiary Bank has
been the pioneer of Internet banking in India. ICICI Bank has been gearing itself for the
opportunities that would be created from the e-Commerce revolution.
Satyam Info way Ltd. is the leading integrated Internet and E-commerce Bank operating
in India. SatyamOnline, the most comprehensive portal site of Indian origin is one of the
key offerings from SIFY in the business to consumer segment. Recently it entered into an
agreement to acquire IndiaWorld Communications Private Limited, which would result in
the integration of IndiaWorld's popular websites like, and with SIFY's portals. The combined portal would be the largest India related
Internet portal.

1. Key Business Objectives

Organizations are facing tremendous competition word-wide. There is pressure on the
organisations to improve their profitability and efficiency for their survival and growth.

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The customers expectations about the product and services are increasing and they do
not hesitate to change their brand loyalty or the loyalty towards the organisations with
whom they have been dealing for a long time. The deregularisation, liberalization and
globalisation process have given freedom to the organisations in terms of selecting and
producing the products and services, selecting the market segment and targeting a
customer group at the same time they have to meet more rigid and regulatory
requirements to satisfy the regulators that the deregulation or liberalization does not work
against the interest of the customers and the society. The organisations also have to
safeguard their resources to protect the interest of shareholders.
The changing environment particularly that of competition, customer expectations and
emerging technology have influenced the banks word-wide. Thus, the key business
objectives of a bank are to manage increasing competition by improving their product
and services, improving efficiency and productivity by restructuring their systems and
work procedures and improving employees productivity, ensuring compliance with the
regulatory requirements and safeguarding the assets. All these issues can be addressed by
implementation of the right type of technology for the right purpose. The technologybased solutions have put the banks in a competitive advantage, improved the efficiency of
the operations and provided excellent customer service. The technology has helped the
organisations to take strategic decisions based on the on-line data rather than based on the
past experience and intuitive decisions. The computer assisted audit techniques have
helped the banks to ensure safeguarding of resources and to ensure that the banks are
operating efficiently and effectively. The extensive use of technology has also brought
down the transaction cost and the rental cost of the premises. Thus, the computerisation

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of banks operations had tremendous impact on their future prospects. The central bank of
any country though operate in a monopoly situation but has to demonstrate as a role
model its efficiency and effectiveness to guide and supervise the whole banking system.


Organisation structure:
The whole organisation behaves as a Privar, with one legal guardian. All directors and
shareholders are from among workers and all of the have taken an oath through affidavit.
In the court of law that neither their family members shall have clPublic Sectorm or share
in the assets or profits of the Bank. All workers of Bank are the proud owners of the
organisation. The workers believe in the concept that manpower is superior to money

Recruitment is the process of seeking out and attempting to attract
individuals in external labour markets, who are capable of and






Recruitment is an intermediate activity whose primary function

is to server as a linked between Human Resource Planning on
the one hand on the other. Sources of recruitment are through
internal and external channels. PUBLIC SECTOR recruits its
employees both externally as well as internally. Recruitment
for the Public Sector is done through interviews of selected
applicants and people who pass the interviews of selected
applicants and people who pass the interview are required to
undergo a medical test before he/she is finally placed in the
Public Sectors.

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Employees are also recruited through internal mobility. This is done on

the basis of merit and seniority. After passing the examination
the candidates are called for an interview along with the
employees who have become eligible for promotion on the
basis of seniority.

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Training And Development

Training is the systematic modification of behavior through learning,







development and planned experience. Training needs exist

when there is a gap between the present performance of








Development on the other hand implies educational process Public
Sectormed at growth and maturity of managerial personnel in
terms of insight attitudes, adaptability leadership and human
relations on the basis of conceptual and theoretical knowledge.
Sahara Public Sectors has various training programme, which
are spread over every field. These trainings are Public
Sectormed at imparting particle knowledge of the specific area
and to make employees more capable to work not only
efficiently but with accuracy. This also facilitates the customer
to have their work done fast as per their requirements,
because in most of the cases customer do not have the
technical knowledge of the Public Sectors business. PUBLIC
SECTOR also conducts training on human behaviour in order to
update its employees on how to deal with its customers. In
PUBLIC SECTOR training is immediately called for whenever an
employee is elevated to next promotional post.

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Future growth proposals:

PUBLIC SECTOR Literacy programme Hub centre

Basic flying training

Induction of simulators

Instrument training simulators

Boeing simulators

Job Analysis & Job Description

Job analysis is the process by which data in regard to each job is systemically observed
and noted. It provides information about the nature of job and characteristics or
qualifications that are desirable in the job holder. Job description generally describe the
work performed, the responsibilities involved, skill and training required, conditions
under which job is done, relationship with other jobs are personal requirement of the job.
Job description study gives a better understanding of tasks performed and the type of
qualifications required to perform them. It is also used to give a measures for setting job
standards, which gives an indication of productivity of each employee performing job. In
PUBLIC SECTOR subordinates and junior staff level employees eligibility criteria is
metric. The junior staff should be able to read and write English as well as Hindi. The
jobs are properly defined to all structure of the hierarchy.

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Performance appraisal
It has many facets. It is an exercise of observation and judgement, it is a feedback
process, and it is organization intervention. Performance apprPublic Sectorsal is a
measurement process as well as emotional process. While it is fPublic Sectorrly easy to
pre-describe how the process should work, descriptions of how it actually works in
practice are rather discouraging.
Functions and objectives of performance apprPublic Sectorsal:
1. It seeks to provide an adequate feedback to each individual on his/her performance.
2. Its purpose is to serve as a basis for improving or changing behavior towards more
effective working habits.
3. It Public Sectorms at providing data to managers with whom they may judge future
job assignments and compensation.
Performance ApprPublic Sectorsal is used for:
1. Identifying employees for salary increase, promotion, transfer lay-off or termination
of services.
2. Determining training needs for further improvement in performance.
3. Motivating employees by indicating their performance levels.
4. Establishing a basis of research and reference for personnel decisions in future.
In PUBLIC SECTOR employees are required to fill up a self apprPublic Sectorsal form.
Employees are apprPublic Sectorsed every year in the PUBLIC SECTOR. Performance
apprPublic Sectorsal is carried out in PUBLIC SECTOR for determining training needs
for further improvements in performance, identifying employees for salary increases,
motivating employees by indicating their performance level.
Transfer & promotions:
It refers to a horizontal or lateral movement of an employee from one job to another in
the same organization without any significant change in status or pay. In PUBLIC
SECTOR two mPublic Sectorn situations generate transfer situations
1. An individual employee may request a transfer in seeking his own preference and his
own benefits.

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2. Public Sectors may also initiate transfer as a requirement for more effective
operations or as a solution to human relations problems.

Whereas promotion refers to advancement of an employee to a higher position carrying

responsibilities, higher status and better salary. In PUBLIC SECTOR promotion is given
under following conditions:
1. It is a device to retPublic Sectorn a reward, to an employee for his years of service.
2. It is to impress upon others that opportunities are open to them also in Public Sectors,
if they perform well.
3. It is to increase individual effectiveness.
4. It is to build loyalty, morale and a sense of belongings in the employees.
5. It is recognition of a job well done by an employee.
6. It is to promote a sense of job satisfaction in the employees.

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Pay And Allowances

The pay and allowances of an employee are payable from the date from which he takes
charge of the post or service to which he is appointed. If the charge is service to which he
is appointed. If the charge is before 12.00 noon, the pay and allowances shall be
admissible from the same day, if at 12.00 noon or thereafter, they shall be payable from
the following day.
1) Advance of salary while proceeding on leave:
An employee proceeding on Privilege leave, Maternity Leave and/or Sick Leave shall be
eligible to be pPublic Sectord in advance agPublic Sectornst the salary due for the full
period of the leave subject to the usual deductions e.g. on account of provident fund
subscription, Income - tax etc. In case in which the leave granted to an employee extends
beyond he next pay-day, the amount of advance should also include the pay and
allowance due to him, upto the date of his proceeding on leave.
2) Temporary Duty (tour within India):
The employees undertaking duty tour will be eligible for payment of DPublic Sectorly
Allowance/ Hotel Accommodation as per conditions lPublic Sectord down from time to
3) For Employees required to travel by RPublic Sectorl/Road/Sea
DPublic Sectorly Allowance shall be admissible for the period of stay at outstation. No.
D.A. will be given for the period of journey. For the day of arrival at the outstation and
the day of departure from the outstation only half dPublic Sectorly allowance shall be
4) For employees required to travel by Public Sectorr
Employees will be entitled for the payment of dPublic Sectorly allowance at the
applicable rates for each day of absence from HQrs. The Day in this case shall mean a
period of 24 hours or part thereof from the time the outward journey commences to the
time the return journey ends at the base station.
5) Temporary duty tour abroad:

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The duty tour undertaken by an employee at a foreign station, will be subject to the
following conditions:

The employees going abroad for temporary duty tour/training/conference, etc. are
released foreign exchange by the Bank on he basis of the prescribed per diem
rates. The employees are required to meet all their expenses in the foreign
country, like boarding and lodging, transportation expenses, incidental expenses
and cash allowance from the amount of foreign exchange so advanced to them. If
the stay abroad is for the same number of days for which foreign exchange had
been released to an employee, then the total expenses shall, not be more than the
amount of foreign exchange released to him.


In the unlikely event of an employee having to extend his stay abroad for official
purposes, beyond the sanctioned period, he should contact his Departmental Head
well in advance, so that release of additional foreign exchange could be arranged
for him.


In the case of hotel expenditure being less than the amount of foreign exchange
released to an employee, the unspent amount has to be refunded by the employee,
the unspent amount has to refunded by the employee, to the Bank in foreign


In case, in which the entitled class of accommodation is not avPublic Sectorlable,

the competent authority may permit the employee to travel by a higher class.

6) Transportation of personal effects:

The employees will also be reimbursed the actual cost of transportation by the goods
trPublic Sectorn and where the two stations are not connected by trPublic Sectorn, by the
cheapest mode of surface transport of his personal effects not exceeding the limits shown

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Basic Pay (Pre-Revised)

Total Baggage allowance when travelling

With family



family (kgs)

Rs 10,000 and above



Rs. 5,000 and above



Below 5,000



Provided that:
(a) The competent authority may permit transportation of such effects in the Banks own
services in which case the limits will be deemed to be inclusive of free baggage
allowance permissible under its tariffs and the transportation will be made as and
when and to the extent that space and load are avPublic Sectorlable in the Public
(b) No costs other than those of actual transportation such packing, unpacking, storage,
insurance, handling agent charges and the like will be borne by the Bank.
Medical Facilities For Temporary Employees:
The Medical facilities applicable to permanent employees of the Bank are also applicable
to temporary employees.
Working Hours
All employees except the member of flying crew will, according to the nature of duties
assigned to and performed by them, be classified, from time to time into the following
a) Those observing 38 hours work per week including a dPublic Sectorly break of half
an hour on all working days except Saturdays.
b) Those observing 44 hours work per week including a dPublic Sectorly break of half
an hour on all working days (except Saturdays)
c) The actual hours of dPublic Sectorly work shall be such as are notified from time to
time by the regional Head at region branch.
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Overtime is payable only to subordinate & clerical staff members @twice the rate of
Basic Salary + D.A. for number of hours.
Pay Day
Staff will be pPublic Sectord their monthly salary usually two working days prior to the
end of the months.
Mode of payments
An employees is required to open a serving Bank A/c in a designated branch, (consult
manager/reporting head) salary will be deposited into the account. On payday, employees
will be handed a pay slip contPublic Sectorning a detPublic Sectorled breakup of the
remuneration for the month the required deductions and the net pay.
An employees commencement salary:
Commencement salary will very according to the category of employment, which will be
advised to the employee in the appointment letter. Any increases or other adjustments
arising from a salary review, change of job etc will be notified to the employee.
Retirement benefits
Every employee who has completed one years continuous service shall, subject to the
regulations to be made hereafter in this behalf, contribute the contributory provident fund
each month a minimum of 10 percent a maximum of 20 percent of his provident fund
pay. The Banks contribution to the fund shall, however, be limited to 10 percent of his
provident fund pay.
The Banks contribution to the fund is payable to the employee after five years of
membership of the fund. Subject to this an the other regulations to be made thereafter in
this behalf, all the accumulated balance to the credit of an employee on the day he ceases
to be an employee of the Bank, is payable to him or his nominee or nominees or
The Bank also pays gratuity to all its employees calculated at the rate of 15 days wages
for every completed year of service or part thereof in excess of six months subject to a
minimum service period of 5 years a maximum of 20 months wages. The gratuity

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liability of the Bank is funded through the group gratuity scheme (cash accumulation
scheme) of the life insurance Corporation of India. This scheme includes a special
feature, namely, whereas gratuity payable on death under the payment gratuity act is
limited by the length of service rendered upto the time of death, the scheme provides for
the payment of an amount based on the length of service which the employee could have
put in upto the normal retirement date but for his untimely death.
Provident fund statutory contribution:
The provident fund deduction forms are part of the employees salary and represents
statutory deduction of 10% from the basic salary and DDA. The Bank contributes and
equivalent amount towards an exempted provident fund scheme managed by Trustees
drawn among the staff of Sahara Public Sectors. This is a retirement benefit.
Employees staff insurance (ESIS)
The Bank is legally obliged to deduct from an employees salary contribution to ESIS
provided that the monthly salary does not exceed Rs 6500 (Rupees six thousand and five
hundred only) the Bank also pays a higher amount as its contribution.
Insurance premium under salary saving schemes
An employee may have the premier on selected life insurance policies deducted from the
salary each pay day and credited directly to the employees policy account with the life
insurance corporation.
Equated monthly installments (EMI) towards of any loans, avPublic Sectorled by an
employee from either the Bank or the financial institutions will be deducted from salary,
on the employees authorising the Bank for such deduction. This authority letter has to
be routed through the financial institutions granting the loans.

- 34 -

In appreciation and recognition of exemplary performance, contribution, length of service
to the PUBLIC SECTOR, the management rewards the employee appropriately. The
award is in the form of a gift or certificate as decided by the management.
The management also rewards its employees employee of the month and employee of
the year for their outstanding performance. The employees selected become the member
of staff welfare committee also. Long service awards are given to those employees who
have completed their 5 years or 10 years of service and are entitled for gifts along with
A part from this, the Bank motivates its employees by providing them good
infrastructure. Monthly culture activities are organised to keep the employees motivation
high. Employees are given responsibility & authority in their selected area, in order to
enhance their capabilities. And promotions are given based on their performance in the
Bank. All these rewards given by the Bank attracts & motivates the employees to work
better and prove themselves.
If any employee has a problem he can directly speak to the CEO, who is accessible to
anyone at anytime. In case a grievance arises, round the table meeting is called and
problems is dealt in best possible manner.
In PUBLIC SECTOR communication is very formal. The Bank prefers communication
in a two way process. The Bank prefers to be more informal in dealing with employees
on dPublic Sectorly basis. Since, this style of working makes the employees feel much
happier and motivated.
Public Sector India Ltd. selects the future employees keeping everything in mind right
from the qualification of the employees to the future prospects-both of the organisation
and the employees.

- 35 -

The first step involves the filling up of Manpower Indent Form. This form is filled up by
the department, which is having the vacancy. The form consists of various questions
which are to be answered like if the current vacancy is a replacement vacancy, its reason
is to be specified -the factors which resulted it like death, retirement etc.
The department is required to give the qualifications that the future candidate should
In the next step, this form is given to the Human Resource (HR) department; this
department sees if the position can be filled through internal sources. The internal sources
can be transfers, promotion etc. In the case of internal sources, the recommendations of
the employees are not taken into consideration. If the HR department does not find
suitable candidate within the organisation then this department has to give reasons for it.
The form then goes to the Corporate HR for its approval.
When the suitable candidate is not available within the organisation, the organisation then
moves to the outside world for filling up the vacancies.
If the number of employees required is large then the Bank has in its consideration three

The Data bank of the organisation.


Contacting large consultants.

The Bank maintains a databank of the candidates, which is used when the number of
vacancies to be filled up is large. The sources of databank can be the qualified candidates
who had applied in the organisation earlier but due to some reasons could not join the

- 36 -

Advertisements are the second big source to attract the candidates. These are having
much larger scope and reach to a number of people. The qualifications required by the
organisation and the criteria could be described in detail.
Large number of consultants also constitutes a big source. Many people register
themselves with these consultants and they act as a bridge between the organisation and
the candidates. The consultants provide the Bank required details about all criteria. These
consultants are fixed for the organisation, which are chosen on the basis of their
performance. In case of overseas recruitment it is checked whether their Indian
counterparts can perform the job efficiently or not. If need arises then they are also taken
through consultants.
But if the number of vacancies is very small then the organisation takes the help of the
local consultants.
The candidates are then required to fill up the Application Form. This form requires the
candidate to fill the details regarding the previous employment, if any and his personal
data. The form is having details regarding like the marital status, organisation structure,
the position held by the candidate, his salary structure, the top three deliveries to the
organisation that proved to be beneficial to the organisation, career goals, his strengths
and weaknesses etc.
After the application form has been duly filled and submitted, the selection process starts
wherein the candidate has to pass through various stages and interview. The interview
panel consists of the persons from Corporate (HR), and other persons including the
executives from the department for which the vacancy is to be filled.
The selected candidates are then short-listed. The short listed candidates are then given
priority numbers; this is due to the reason that sometimes the candidate who is having
first priority is unable to join the organisation due to some reasons then in that case the

- 37 -

candidate next in the priority list is given preference. The candidate has to under go
medical examination and his credentials are verified.
After qualifying these stages, the candidate is then absorbed in the organisation and
explained his/her duties. This phase marks the end of the selection procedure.
Public Sector India Ltd.also performs Campus interviews as and when the need arises.
The esteemed organisation also provides apprentice training-wherein the organisation
trains the people in the working of the organisation and gives then stipend. If these
trainees are found useful to the organisation then they are absorbed in the organisation
else they are given certificate so that they can show this as an experience and get a job

- 38 -

HRM in the Banking Industry

When we talk of human resource management, we have in our mind a variety of things.
These include:


Skill development and up-gradation of knowledge and skills of the employees.

Motivating the employees,

Effective utilization of the employees skills and capabilities

Attracting the personnel and their retention

Wages, salaries and rewards and

Monitoring and controlling the employees performance

These aspects of human resource management and development are essential for every
sector but in the case of tourism, they have a special significance. This is because
tourism is a service industry and here the customer is not only buying a service or a
product but he is also experiencing and consuming the quality of service which is
reflected in the performance of the person involved in the production and delivery of the
service. Since what is marketed here is a relationship between the customer and the
producer of services, the importance of human resources becomes vital for the success of
the business. Generally, in such service operations the emphasis has been on courtesy
and efficiency and it is assumed that the service in tourism is all smiles and effective
communication. However, with the changing nature of tourism and growing special
sation only smiles, communications skills and courtesy will not serve the purpose. For
example, a guide may be very good in communication but unless he or she is equipped
with knowledge and information related to the monument or the city, he or she will not be
able to perform quality service. Similarly, a driver may be very good at driving but unless
he knows the roads and addresses of the city, only his driving capabilities will be of no
help in providing quality service. And we must remember here that tourists, whether
foreign or domestic, are increasingly becoming more demanding as regards quality of
- 39 -

Generally, human resource management, planning and development in tourism have to be

taken at both macro as well as micro levels. At the macro level, one takes into account the
educational and training infrastructure available in a country and the efforts initiated by
the ICAO. This also includes the efforts initiated by the private sector. At the micro level,
one takes into account how best individual organizations plan and manage their human
resources V S Mahesh, formerly Vice President (Human Resources) with the Taj Group
of Hotels, is of the opinion that two central features common to all sectors of the tourism
industry must be considered in this regard:
1) The concept of Moments of Truth (MOT), and
2) MOTs relationship to the attainment of service excellence in an organization.
Jan Carlzon has defined MOT as an intention between a customer and an organization,
which leads to a judgement by the customer about the quality of service received by her
or him. In tourism industry, 95% of the MOTs take place between customers and the
front line staff and most of the time they are not visible to the management. For example,
how a hotel receptionist is handling the customers or how an escort is conducting the tour
is not visible to the management. Yet, the tourists experience of the holiday is dependent
on how the staff manning such services has treated him or her. Mahesh has pointed out
that in case of negative experiences, only less than five percent cases get reported to the
management by the customers and hence according to him the crucial questions is are
human beings capable of doing their job correctly, willingly and with a smile, when they
know that their management is most unlikely to be able to see or hear them, let alone bear
of their failure to do so? This puts additional on the human resources management
factor in the tourism industry. Certain organizations, companies and even destinations are
known for their hospitality and are even termed as service leaders in their areas of
operations. Researches conducted by various scholars in this area show that they have
achieved this, status, through effective human resource management in their

According to Gail Cook Johnson these companies have applied the

principal of empowerment to all employees. This empowerment is manifested in the way

that companies:

- 40 -

Are highly focused and consistent in everything they do and say in relation to

Have manager who communicate with employees

Facilitate, rather that regulate, their employees response to customers

Solicit employee feedback about how they can do things better

Stress the importance of team work at each level of the organization and

Plan carefully the organizations recruitment and training needs.

These companies give less emphasis on hierarchy and formal relationship rather; they
adopt flat organizational structure in terms of span of control. Johnson further states that
these service leaders can be recognised for:

Their unfailing commitment to service principles,

Their investments in people to ensure staffing competence,

A management philosophy which stresses communication a proactive orientation and

employee feedback and

A dedication to teamwork

In fact, human resource management and customers care/expectations management are

inter related area in the area of tourism.

Sarah Mansfield has identified four key

principles in the development of customer care within companies. These according to her

Customer care starts at the top was meaning that commitment to the principle of
customer care must emanate from senior management levels within an
organization. Successful management is not only about the right management
style but also an attitude, ethos or culture of the organization which overrides the
management techniques used, such that in the absence of other instructions these
values will dictate how an employee will behave.

- 41 -


Customer care involves everyone within the organization. It is not just about
front-line staff. The contrary view only services to reinforce the electricians or
administrators, opinion that the standard of service they give in support of the
front-line staff is not important. How can cleaners do the right job unless they
fully appreciate their customer needs and the importance of their role? High
standards of customer care cannot be achieved by ignoring seasonal, part time or
voluntary staff that represents the face of the business to many customers.


Care for your staff and they will care for your customers. Too often organizations
look first to the customer, whereas the emphasis should be placed on the staff.
Improving the experience of the staff encourages a better service and a better
experience for customers. More customers are obtained thereby improving the
climate in which management and staff work.

Investment and greater

professionalism follow success and the cycle of achievement is reinforced.


Its a continuous, meaning that customer care is not a quick fix Research but it
long term plan.

According to V S Mahesh The nature, determinates and problem areas of service quality
within tourism points clearly to the central role of personnel, at all levels, in attaining
levels, of excellence in this respect. Development the service culture, within a Bank, and
within tourism industry, cans he seen as crucial to the success of tourism. Hence, the
activities of an HRD manager in tourism can be categorised as:

Human resource planing and

Human resource development

Aspect like forecasting, recruiting and induction in the human resource area are taken
care of through human resource planning. The identification of specific developmental
needs for the manpower aimed at developing and exploiting the competencies of the
human resources are taken care of through human resource development.

- 42 -

In this Section, we will deal with certain aspects which are relevant for managers or
entrepreneurs at an organizations level in the area of human resource planning. Human
resource planing can be termed as a process for preparing a plan for the future personnel
needs of an organization. It takes into account the internal activities of the organization
and the external environmental factors. In a service industry like tourism, such planning
also aims at improving the quality of manpower resources. Human resource planning

Analysis of existing manpower resources,

Planning for future needs taking into account how many people with what skills and
at what levels the organization will need, and

Planning for the development of the employees by adopting in-house training and
continuing education methods to upgrade the knowledge and skills of the employees.

- 43 -

Recruitment procedure is a vital factor of an organization. If it is not done properly the
production procedure will be hampered. Hence productivity will fall down. So the
organization will be in trouble and it will affect the employer- employee relationship. So
recruitment procedure should be done in proper and correct manner. The new candidates
should replace the vacant post so that the production of the Bank does not hamper. By
this the productivity will increase and the organization will gain profit. So the employer
will be happy and will not hesitate to distribute bonus and increments to the workers. The
workers will also be more motivated to work. Hence there will be harmonious
relationship in the organization. It will also stabilize the organization in the long run.

- 44 -

The objective of the study

The objectives of this report are the following:-

1. To analyze the usefulness of Online Banking.

2. To know the level of awareness among customers.

3. To

examine the reach of Online Banking.

4. To analyze the risk involved in Online Banking

- 45 -

Area of the study :- The scope of the study is restricted to the various districts of West
Bengal. For the collection of the primary data the study is confined to Kolkata region of
West Bengal state only.
Sampling Unit :- In this study, the sampling unit was the people of West Bengal.
Sample Size :- The sample size was so selected that it could be adequate enough to
represent the fair number of population, and also give the true picture. The total sample
size was restricted to 30.
Data Type :- In the present study the primary data has been collected through
questionnaire. Information available on web-portals have also been used.
Questionnaire Method :- The primary data was collected by administering structured
questionnaire to the people who have a bank account.
Nature of the Study :- The Descriptive Research Study has been used. The basic aim
is to gain familiarity and to achieve new insights along with describing the existing facts.
Statistical Tools and Techniques :- Statistical tool of percentage analysis has been used
for the analysis of the data and to draw a meaningful conclusion there from.

- 46 -

Henceforth, a brief history about Online Banking is going to be provided, its types and
their advantages and disadvantages
After this step, the data analysis and interpretation would be presented which came from
primary and secondary data collection.
After the completion of data analysis , there would be simple conclusions and
recommendations best on the given topic as far as my knowledge.
And in the completion of the project I have included the references and the questionare
prepared by me for the manager of The Federal Bank.
The design is as such:

Chapter1- Conceptual framework.

Chapter 2-Analysis and findings.

Chapter 3-Conclusion and Recommendation.

Chapter 4-Bibliography & Annexure

- 47 -


Online Banking Indian

Compared to banks abroad, Indian banks offering online services still have a long way to
go. For online banking to reach a critical mass, there has to be sufficient number of users
and the sufficient infrastructure in place. The 'Infinity' product of ICICI Bank Ltd. gets
only about 30,000 hits per month, with around 3,000 transactions taking place on the Net
per month through this service. Though various security options like line encryption,
branch connection encryption, firewalls, digital certificates, automatic signoffs, random
pop-ups and disaster recovery sites are in place or are being looked at, there is as yet no
Certification Authority in India offering Public Key Infrastructure which is absolutely
necessary for online banking. The customer can only be assured of a secured conduit for
its online activities if an authority certifying digital signatures is in place. Users of
Internet Banking Services are required to fill up the application forms online and send a
copy of the same by mail or fax to the bank. A contractual agreement is entered into by
the customer with the bank for using the Internet banking services. In this way, personal
data in the applications forms is being held by the bank providing the service. The
contract details are often one-sided, with the bank having the absolute discretion to
amend or supplement any of the terms at any time. For these reasons domestic customers
for whom other access points such as ATMs, tele-banking, personal contact, etc. are
available, are often hesitant to use the Internet banking services offered by Indian banks.
Internet Banking, as an additional delivery channel, may, therefore, be attractive /
appealing as a value added service to domestic customers. Non-resident Indians for
whom it is expensive and time consuming to access their bank accounts maintained in
India find net banking very convenient and useful. The Internet is in the public domain
whereby geographical boundaries are eliminated. Cyber crimes are therefore difficult to
be identified and controlled. In order to promote Internet banking services, it is necessary
that the proper legal infrastructure is in place. Government has introduced the

- 48 -

Information Technology Bill, which has already been notified in October 2000. Section
72 of the Information Technology Act, 2000 casts an obligation of confidentiality against
disclosure of any electronic record, register, correspondence and information, except for
certain purposes and violation of this provision is a criminal offence.

The Department of Telecommunications (DoT) is moving fast to make available

additional bandwidth, with the result that Internet access will become much faster in the
future. This is expected to give a fillip to Internet banking in India. The proposed setting
up of a Credit Information Bureau for collecting and sharing credit information on
borrowers of lending institutions online would give a fillip to electronic banking. The
recommendations of the Vasudevan Committee on Technological Upgradation of Banks
in India have also been circulated to banks for implementation. In this background, banks
are moving in for technological upgradation on a large scale. Internet banking is expected
to get a boost from such developments. Reserve Bank of India has taken the initiative for
- 49 -

facilitating real time funds transfer through the Real Time Gross Settlement (RTGS)
System. Under the RTGS system, transmission, processing and settlements of the
instructions will be done on a continuous basis. Gross settlement in a real time mode
eliminates credit and liquidity risks. Any member of the system will be able to access it
through only one specified gateway in order to ensure rigorous access control measures at
the user level. Generic Architecture both domestic and cross border, aimed at providing
interconnectivity across banks has been accepted for implementation by RBI. Following a
reference made this year, in the Monetary and Credit Policy statement of the Governor,
banks have been advised to develop domestic generic model in their computerization
plans to ensure seamless integration. The above mentioned efforts would enable online
banking to become more secure and efficient. With the process of dematerialization of
shares having gained considerable ground in recent years, banks have assumed the role of
depository participants. In addition to customers' deposit accounts, they also maintain
demat accounts of their clients. Online trading in equities is being allowed by SEBI. This
is another area which banks are keen to get into. HDFC Bank Ltd., has tied up with about
25 equity brokerages for enabling third party transfer of funds and securities through its
business-to-business (B2B) portal, 'eNet'. Demat account holders with the bank can
receive securities directly from the brokers' accounts. The bank has extended its web
interface to the software vendors of National Stock Exchange through a tie-up with NSE.
IT the InfoTech arm of the exchange. The bank functions as the payment bank for
enabling funds transfer.

- 50 -


Very convenient. Online banking is very convenient and comfortable. In the

comfort of ones home or offices, one can do whatever monetary transactions one
wishes to do with his bank.

Unlimited service day and night. The services and various features of banks are
always available seven days a week and 24 hours daily. The most interesting thing
here is that, everything can happen at just one click of mouse.

No time constraint. Online banking is also stress free because it never closes
unlike the traditional banking that has cut-off time.

Easy to access via PC. Using personal computer, one can easily do various
transactions with bank in view of business or any other personal or financial matters.

Easy way of payment. Bill payments can also be handled properly and smartly.
Instead of waiting in queues, one can easily pay all the transactions at a click of a

Smart. Online banking is also ubiquitous or simply put smart. This enables to do
troubleshooting regarding any problem that may arise in business.

Lower banking cost. With online banking facility one can reduce its bank
charges like cheque book charges etc.

Easy transaction. Another advantage is the speed of every transaction. Online

transactions, compared to ATM or traditional banking, works faster. Thus business
matters could benefit so much from this speed feature.

Banking online is both efficient and effective. With just one secure site, all
financial transactions can be managed orderly.

- 51 -


First is the slow processing from the moment you entered a financial transaction
with your bank via the computer. Usually the bank will require you to submit certain
documents like an identification card, signature and the like. Not only will the bank
online require you to submit documents but also to provide special power of attorney
in cases where you want to do transactions together with your spouse. A concrete
example is when you want to manage all your wealth and resources together as a
couple and you wish to view it online. Certain technical procedures regarding online
banking may be taxing too and complicated.

Another disadvantage is the so-called learning curve. This means, banking

online especially in locating the sites may be complicated and hard to find.

Another disadvantage is bank site changes. If this occurs, the bank will require
you to re-enter all your information again and other related data.

Finally is the trust aspect. Online banking should be entered very carefully if
you wish to enjoy your financial life.

- 52 -

Indian Banking Industry - A Brief

A large chunk of the Indian banking industry still belongs to the public sector banks
having the most extensive network of physical branches. These are followed by large
private banks and lastly by multinational banks (MNC) who have the smallest physical
network and therefore their online banking needs to be the most developed and able to
address user needs without requiring human intervention. The fact that most government
organisations have their payroll accounts with public sector banks contributes
significantly to the large customer bases of these banks. Traditional public sector banks
have existed for many years and have serviced diverse income groups. This has resulted
in their customer base being huge as well as belonging to a wider demographic
representation, given Indias heterogenous population as well. However, most of the
traditional customers prefer to bank with a bank with a human touch and prefer public
sector banks as they form an emotional relationship with their bank personnel, which is
not really encouraged by private sector or multi-national banks.

Indian Banking Scenario

Indian Internet Banking


- 53 -

The new generation which has been banking for less than a decade prefers faster
transactions and more professional relationships as compared to the traditional customer.
For them, opening a bank account is incidental and connected to their direct deposit
salary accounts. The private sector bank has captured the corporates and IT sector as
compared to the public sector bank. As a result, banks in the public sector tend to have a
huge user base, but very few of their customers have the technology orientation or the
inclination to use electronic media for banking. Therefore, the awareness of customers of
public sector banks about online banking as an active banking tool is relatively lower. To
tap this type of user base that has an inherent barrier to and not an obvious need for
internet usage, just adding an internet banking channel to a banks lists of services may
not be enough of an incentive. A streamlined, simple and customer satisfaction oriented
approach to service novice users only can help banks achieve better internet banking

- 54 -


Analysis and Discussion

This chapter deals with the results which came from analysis of primary and secondary
OBJECTIVE_-To Analyze the Purpose of using Internet
The various Customers have used internet for different purposes the following graph
represents the statistics about those purposes. Majority of the peoples (44%) are using
internet for entertainment, 13% are use for banking 12% for shopping 11% for research
and 18% for combination of all.


No of Persons







- 55 -

Purpose of using Internet

- 56 -

Objective-To analyze the time since Internet is being used

The various Customers have used internet from different span of times and the following
chart represents the statistics about those time intervals.74% customers are using internet
from less than 3 years and 5% are using from 5-10 years.

< 3 years

No of Persons

Percentage %

3<5 years


5<10 years


Time since using Internet

Objective- Analyze the Gender of respondents:-

- 57 -

The following graph represents that the majority of respondents are male (77%) and
females are 23%.

No of Persons

Gender of respondents

- 58 -


Objective-To analyze the age group of respondents:The following graph represents that the majority of respondents are of age range 25-35
(i.e. 45%) and lower range is above 60.

Age Group
16-25 years
25-35 years
35-50 years
50-60 years
Above 60

No of Persons


Age range of respondents

- 59 -


Objective-To analyze the awareness about e-banking:The following graph represents that the majority of respondents are not aware about ebanking (59%) on the other hand 41% respondents know about e-banking.

Awareness about

No of Persons



Awareness about e-banking

- 60 -

E-banking saves time:The following graph represents that 100% respondent said e-banking saves the time.

E-banking saves time

E-banking has increased the pace of transactions:The following graph represents that 92% respondent said e-banking saves the time while
other 8% said no.

E-banking has increased the pace of transactions

- 61 -

E-banking has makes your life easy:The following graph represents that 100% respondent said e-banking made the life very

E-banking has makes your life easy

- 62 -

Objective- To analyze the Satisfaction from E-banking facilities from their banks:The following graph represents that 87% respondent said they are satisfied from their
banks regarding e-banking facilities while other 13% said not satisfied.

No of persons


Satisfaction from E-banking facilities from their banks

- 63 -

Summary of the Observations

While investigating all the variables and the responses by consumers, this study reveals
that the perception of the consumers can be changed and can be made positive by
awareness program, friendly usage, fewer charges, proper security, and the best response
to the services offered.
In case of the consumers who dont use Internet banking services, having all facilities at
their disposal, technology was not the biggest issue. The first thing that all bankers should
concern about is the requirement of awareness. Even though these people are inclined
towards the manual banking, these can be turned to potential customers, it is well proven
thing, which says the surrounding influences the individuals behaviour or in our region
only environment that surrounds the public determines the behaviour and decisions of the
individuals. So if a consumer sees most of his colleagues or friends who surround
him/her using Internet banking then it may influence his/her decision to follow Internet
banking option.

- 64 -

Limitations of Study
1. The present study is based on the data collected from sample areas of Kolkata only and
the result may vary from other states or the national average.
2. The result of this study shows that perceived ease of usefulness, reach of Online
Banking, risks associated with this and customers attitude are the important determinants
of online banking adoption.
3. The replication of this study on a wider scale with more Online Banking customers and
with different national cultures is essential for the further generalization of the findings.
4. The time limit is also an important factor which acts as a barrier in the whole research
process. The shortage of time period forces to do research on small size of sample.
5. Most of the respondents due to lack of awareness and security factor fear to use Online
Banking, so fair conclusion is not done as per the responses of few ones only. So there is
scope for further investigation at larger scale & by taking more respondents who use
Online Banking.

- 65 -

This study confirmed that one way to shift people from non users segment to users
segment can be educating them and making them aware about the services provided and
benefits of using these services. If banks arrange workshops in Financial Institutions and
other places, where knowledge about the benefits of Online Banking and training is
imparted to use Online Banking and also open Internet Bank Accounts simultaneously
then this will act as boon for Banks. By making Online Banking operations more easy,
the Banks can enhance the level of users & can also give more satisfaction to existing
ones as they face numerous problems while using Online Banking. The security for their
funds is the main factor due to which people fear to open an Internet Bank Account.
Thus, by giving them assurance that their funds are secured even if they resort to Online
Banking could assist Banks to increase their customers percentage. The Government can
also play a vital role in the promotion of Online Banking by making strict rules &
regulations in case any fraud arises. No doubt IT Act plays an important role but there is
need of more Government enrolment because it is good for Indian economy to accelerate
their growth rate.
If people associate themselves with technology & its upcoming features, they can avail
lots of benefits from new technology and it can play significant role in the promotion of
Online Banking. It is well proved that activities in which people show keen interest, they
use those activities at their best as compared to those where pumping is done to do so.
The instructions to use Online Banking services should be made available in different
languages so that it will be more convenient for the customers to use Online Banking

- 66 -


To complete this project report I have taken help of the following : Rajesh Kumar Srivastava; Customers Perception on Usage of Internet
Banking Innovative Marketing, volume 3; issue 4, 2007.
Dr.A Vinaya Gamoorthy & K. Senthilumar; Role of reach of Internet
Banking in India Journal of Business Research. 2008.
Srivastava, Dr. Saurabh Internet Banking - A Global Way to Bank !
Divya Singhal & V.Padhmanabhan (2008), The Journal of Nepalese
Business Studies Vol. V, No. 1, 2008, December Page: 101-111
Neha Dixit & Dr. Saroj K.Datta (2010) Acceptance of E-banking among
Adult Customers: An Empirical Investigation in India, Journal of Internet
Banking and Commerce, Vol. 15 no. 2.
Rahmath Safeena, Hema Date & Abdullah Kammani; Internet Banking
adoption in an emerging economy International Arab Journal of ETechnology, volume 2; no.1, January 2011.
David D. VanHoose (2009) Two-sided markets, bank card payment
networks, and public policy, Networks Financial Institute Policy Brief No.
2008-PB-06, Indianapolis.
Balachandher (2001) Electronic Banking in Malaysia: A Note on Evolution of
Services and Consumer Reactions, Multimedia University, Malaysia

- 67 -


The following questionnaire is prepared by me for the Manger of Federal bank of C R
1. In which year your bank started online services ?
2. Does Your Competitiors also provides similar services with respect to you ?


3. Does your bank sell a product or service that is time-constrained? For example, do you work for a
financial firm offering online trading or payment services, or a travel or entertainment business offering
online booking ?


4. Are your customers prone to use the latest gadgets, such as PDAs, two-way pagers and
mobile phones ?


5. Does online banking provide more revenue than traditional banking ?

- 68 -



6. What percentage of your customers using online banking services provided by you ?





7. Does online banking provides more reach and frequency than traditional banking?


8. Does online banking helps you to retain your customer and helps in to discover new
customers ?


9. Does the revenue coming from the online banking crosses the expenses made on online
banking ?


10. Do you provide and kind of training programme to your employees so they promote more online


11. What kind of services are you providing in online banking ?

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Online bill payment

Online fund/money transfer

Online payroll direct deposit

Mobile Recharge

Online Bookings
International Payments

Online Purchase

12. Do you advertise your bank on other websites ?



if yes which _______________________

13. How does your bank connected to internet ?




14. Is the security always updated to protect any theft or fraudulent ?



15. Did online banking done well according to you expectations?



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