A Summer Internship report on

“Electronic Payment System ”

Submitted to

SOS Political Science And Public Administration

Jiwaji University,Gwalior (M.P.)

In partial fulfillment of the requirements for the award of the degree of

Master of Business Administration (FA)

Session 2018-2019

By

Chhaya Sharma

Master of Business Administration (FA)

3rd Semester

Roll No:-181073029

Under the guidance of

Mrs. Swati Tripathi

Assistant Professor

School of Studies in management

Jiwaji University,Gwalior (M.P.)

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 DECLARATION

I hereby declare that the project report titled “Electronic payment system” is my original work

and has not been published or submitted for any degree, diploma or other similar titles
elsewhere. This has been undertaken for the purpose of partial fulfillment of MBA at Jiwaji
university Gwalior M.P.

Chhaya Sharma

MBA 3rd

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 CERTIFICATE
This to certify that Miss Chhaya Sharma student of MBA 3rd semester of SOS in a political
science and public administration, Jiwaji university,Gwalior (M.P.) has successfully completed
their summer training project report. They have prepared this report entitled “Electronic payment
system in HDFC bank Datia (M.P.)” under my direct supervision and guidance.

Mrs.Swati Tripathi

Project Mentor

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 ACKNOWLEDGEMENT

It is really a matter of pleasure for me to get an opportunity to thank all the persons who
contributed directly and indirectly for the successful completion of the project report, Electronic
payment system.

I wish to express my gratitude to the branch manager of HDFC bank, Datia for giving mean
opportunity to be a part of their esteem organization and enhance my knowledge by granting
permission to do a summer training project. They provided me with their assistance and support
whenever needed, which has been instrumental in completion of this project. I am thankful to
them, for their support and encouragement throughout the tenure of the project. Also I am
thankful to my faculty guide Mrs.Swati Tripathi, for being a source of support during this
training project. Last but not the least I am grateful to all the staff member of HDFC bank for
their kind cooperation and help during the course of my project.

Chhaya Sharma

MBA 3rd SEM

PREFACE

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This project report attempt to bring under one cover the entire hard work and dedication put in
by me in the completion of the project work on “Electronic payment system” of HDFC bank.

I have expressed my experiences in my own simple way. I hope who goes through it will find it
interesting and worth reading. All constructive feedback is cordially invited.

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TABLE OF CONTENT
1. COMPANY PROFILE

2. THEORETICAL ASPECTS OF ELECTRONIC PAYMENT SYSTEM

3. PRACTICAL ASPECTS OF ELECTRONIC PAYMENT SYSTEM

4. RESEARCH METHODOLOGY

5. ANALYSIS AND GRAPHICAL PRESENTATION OF DATA

6. FINDINGS

7. CONCLUSION

8. SUGGESTION

BIBLIOGRAPHY

ANNEXTURE:

QUESTIONNAIRE

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COMPANY PROFILE

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 BACKGROUND

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 RBI’s liberalisation 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.

PROMOTER
HDFC is India’s premier housing finance company and enjoys an impeccable track
record in India as well as in international markets. Since its inception in 1977, the
Corporation has maintained a consistent and healthy growth in its operations to remain
the market leader in mortgages. Its outstanding loan portfolio covers well over a million
dwelling units. HDFC has developed significant expertise in retail mortgage loans to
different market segments and also has a large corporate client base for its housing related
credit facilities. With its experience in the financial markets, strong market reputation,
large shareholder base and unique consumer franchise, HDFC was ideally positioned to
promote a bank in the Indian environment.

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.

CAPITAL STRUCTURE

As on 31st March, 2015 the authorized share capital of the Bank is Rs. 550 crore.
The paid-up share capital of the Bank as on the said date is Rs501,29,90,634/- (
2506495317 ) equity shares of Rs. 2/- each). The HDFC Group holds 21.67 % of the
Bank's equity and about 18.87 % of the equity is held by the ADS / GDR Depositories (in
respect of the bank's American Depository Shares (ADS) and Global Depository Receipts
(GDR) Issues). 32.57 % of the equity is held by Foreign Institutional Investors (FIIs) and
thebankhas4,41,457shareholders.

The shares are listed on the Bombay Stock Exchange Limited and The National Stock
Exchange of India Limited. The Bank's American Depository Shares (ADS) are listed on
the New York Stock Exchange (NYSE) under the symbol 'HDB' and the Bank's Global
Depository Receipts (GDRs) are listed on Luxembourg Stock Exchange under ISIN No
US40415F2002.

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 DISTRIBUTION NETWORK

HDFC Bank is headquartered in Mumbai. As of March 31, 2015, the Bank’s

distribution network was at 4,014 branches in 2,464 cities.All branches are linked on an
online real-time basis. Customers across India are also serviced through multiple delivery
channels such as Phone Banking, Net Banking, Mobile Banking and SMS based banking.
The Bank’s expansion plans take into account the need to have a presence in all major
industrial and commercial centres, where its corporate customers are located, as well as
the need to build a strong retail customer base for both deposits and loan products. Being
a clearing / settlement bank to various leading stock exchanges, the Bank has branches in
centres where the NSE / BSE have a strong and active member base.

The Bank also has a network of 11,766 ATMs across India. 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.

TECHNOLOGY

HDFC Bank operates in a highly automated environment in terms of information

technology and communication systems. All the bank’s branches have online
connectivity, which enables the bank to offer speedy funds transfer facilities to its
customers. Multi-branch access is also provided to retail customers through the branch
network and Automated Teller Machines (ATMs).
The Bank has made substantial efforts and investments in acquiring the best
technology available internationally, to build the infrastructure for a world class bank. In
terms of core banking software, the Corporate Banking business is supported by
Flexcube, while the Retail Banking business by Finware, both from i-flex Solutions Ltd.
The systems are open, scaleable and web-enabled.
The Bank has prioritised its engagement in technology and the internet as one of
its key goals and has already made significant progress in web-enabling its core
businesses. In each of its businesses, the Bank has succeeded in leveraging its market
position, expertise and technology to create a competitive advantage and build market
share.

BUSINESS PROFILE

HDFC Bank caters to a wide range of banking services covering commercial and
investment banking on the wholesale side and transactional / branch banking on the retail
side. The bank has three key business segments:

 Wholesale Banking

The Bank’s target market is primarily large, blue-chip manufacturing companies

in the Indian corporate sector and to a lesser extent, small & mid-sized corporates and
agri-based businesses. For these customers, the Bank provides a wide range of

9
commercial and transactional banking services, including working capital finance, trade
services, transactional services, cash management, etc. The bank is also a leading
provider of structured solutions, which combine cash management services with vendor
and distributor finance for facilitating superior supply chain management for its corporate
customers. Based on its superior product delivery / service levels and strong customer
orientation, the Bank has made significant inroads into the banking consortia of a number
of leading Indian corporates including multinationals, companies from the domestic
business houses and prime public sector companies. It is recognised as a leading provider
of cash management and transactional banking solutions to corporate customers, mutual
funds, stock exchange members and banks.

 Treasury

Within this business, the bank has three main product areas - Foreign Exchange
and Derivatives, Local Currency Money Market & Debt Securities, and Equities. With
the liberalisation of the financial markets in India, corporates need more sophisticated risk
management information, advice and product structures. These and fine pricing on
various treasury products 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.

 Retail Banking

The objective of the Retail Bank is to provide its target market customers a full
range of financial products and banking services, giving the customer a one-stop window
for all his/her banking requirements. The products are backed by world-class service and
delivered to customers through the growing branch network, as well as through
alternative delivery channels like ATMs, Phone Banking, NetBanking and Mobile
Banking.
The HDFC Bank Preferred program for high net worth individuals, the HDFC
Bank Plus and the Investment Advisory Services programs have been designed keeping
in mind needs of customers who seek distinct financial solutions, information and advice
on various investment avenues. The Bank also has a wide array of retail loan products
including Auto Loans, Loans against marketable securities, Personal Loans and Loans for
Two-wheelers. It is also a leading provider of Depository Participant (DP) services for
retail customers, providing customers the facility to hold their investments in electronic
form.
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 2015, the bank
had a total card base (debit and credit cards) of over 25 million. The Bank is also one of
the leading players in the “merchant acquiring” business with over 235,000 Point-of-sale
(POS) terminals for debit / credit cards acceptance at merchant establishments. The Bank
is well positioned as a leader in various net based B2C opportunities including a wide
range of internet banking services for Fixed Deposits, Loans, Bill Payments, etc.

RATING AND AWARD

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 Credit Rating
HDFC Bank has its deposit programmes rated by two rating agencies - Credit
Analysis & Research Limited. (CARE) and Fitch Ratings India Private Limited. The
bank's Fixed Deposit programme has been rated 'CARE AAA (FD)' [Triple A] by CARE,
which represents instruments considered to be "of the best quality, carrying negligible
investment risk".
CARE has also rated the bank's Certificate of Deposit (CD) programme "PR 1+"
which represents "superior capacity for repayment of short term promissory obligations".
Fitch Ratings India Pvt. Ltd. (100% subsidiary of Fitch Inc.) has assigned the "tAAA
(ind)" rating to the bank's deposit programme, with the outlook on the rating as "stable".
This rating indicates "highest credit quality" where "protection factors are very high".
HDFC Bank also has its long term unsecured, subordinated (Tier II) Bonds of
Rs.4 billion rated by CARE and Fitch Ratings India Private Limited. CARE has assigned
the rating of "CARE AAA" for the Tier II Bonds while Fitch Ratings India Pvt. Ltd. has
assigned the rating "AAA (ind)" with the outlook on the rating as "stable". In each of the
cases referred to above, the ratings awarded were the highest assigned by the rating
agency for those instruments.

Corporate Governance Rating:

The bank was one of the first four companies, which subjected itself to a
Corporate Governance and Value Creation (GVC) rating by the rating agency, The Credit
Rating Information Services of India Limited (CRISIL). The rating provides an
independent assessment of an entity's current performance and an expectation on its
"balanced value creation and corporate governance practices" in future. The bank was
assigned a 'CRISIL GVC Level 1' rating in January 2007 which indicates that the bank's
capability with respect to wealth creation for all its stakeholders while adopting sound
corporate governance practices is the highest

Awards and Accolades :

HDFC Bank began operations in 1995 with a simple mission: to be a "World-class Indian
Bank". We realized that only a single-minded focus on product quality and service
excellence would help us get there. Today, we are proud to say that we are well on our
way towards that goal.

Over the years, the Bank has received recognition and awards from several leading
organizations and publications, both domestic and international (details are available
on http://www.hdfcbank.com/aboutus/awards/default.htm).

THEORETICAL ASPECT

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 An electronic payment system is a way of making transaction or paying for goods and services
through an electronic medium, without the use of cheques or cash. it is also called an electronic
payment system or online payment system.

The electronic payment system has grown increasingly over the last decades due to the growing

spread of internet-based banking and shopping. As the world advances more with technology
development, we can see the rise of electronic payment system and payment processing devices.
As these increase, improve and provide ever more secured online payment transactions the
percentage of cheques and transaction will decrease.

ELECTRONIC PAYMENT METHODS

One of the most popular payment forms online are credit and debit cards. Besides them, there are
also alternative payment methods, such as bank transfer, electronic wallets, smart card or bitcoin
wallet (bitcoin is the most popular cryptocurrency).

E- payment methods could be classified into two areas, credit payment system and cash payment
system.

credit payment system

Credit card-
A Form of the E Payment system which requires the use of the guard issues by a financial
institute to the card holder for making payments online or through an electronic device, without
the use of cash.
E Wallet-
A form of prepaid account that stores user’s financial data, like credit and debit card information
to make and online transaction easier.
Smart card –
A plastic card with a microprocessor that can be loaded with funds to make transactions ; also
known as a chip card.

Cash Payment System

Direct Debit-
A financial transaction in which the account holder instructs the bank to collect a specific
amount of money from his account electronically to pay for goods and services.
E-Cheques-
A digital version of an old paper cheques. its an electronic transfer of money, bank account,
usually checking account, without the use of the paper cheque.
E-Cash
it is a form of an electronic payment system, where a certain amount of money is stored on a
client’s device and made accessible for online transaction.
Stored value card

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 A card with the certain amount of money that can be used to perform the transaction in the issuer
store. A typical example of stored value card are gift cards.

Pros and cones of using an electronic payment system

E Payment systems are made to facilitate the acceptance of electronic payment for online
transactions. with growing popularity of online shopping, E Payment systems became a must for
online consumers- to make shopping and banking more convenient. it comes with many benefits,
such as :
 Reaching more clients from all over the world, results in more sales.
 more effective and efficient transaction- its because transactions are made in seconds, without
wasting customer’s time. it comes with speed and simplicity.
 convenience – customer can pay for items on an E commerce website at anytime and anywhere.
they just need an internet connected device. As simple as that!
 Lower transaction cost and decreased technology costs.
 Expenses control for customers, as they can always check their virtual account where they can
find the transaction history.
 Today its easy to add payments to a website, so even a non technical person may implement it in
minutes and start processing online payments.
 payment gateways payment providers offer highly effective security and antifraud tools to make
transactions reliable.

Drawbacks

 E-Commerce fraud is growing 30% per year. if you follow the security rules, there shouldn’t be
such problem, but when a merchant chooses a payment system which is not highly secure, there
is a risk of sensitive data breach which may cause identity theft.
 the lake of anonymity- For most, its not a problem at all, but you need to remember that some of
your personal data is stored in the database of the payment system.
 The need of internet access- As you make guess, if the internet connection fails its impossible to
complete a transaction, get to your online account, etc.
E Commerce, as well as M Commerce, is getting bigger year after year, so having an electronic
payment system in your online store is a must. It simple, fast and convenient, so why not have
one?
Still, one of the most popular payment methods are credit and debit card system , but people also
choose some alternatives or local payment methods. If you run an online business, find out what
your target audience needs and provide the most convenient and relevant electronic payment
system.
Turning point in the history of e-payment-
Have you ever imagined how the world would look like if we had to pay for goods with a grain
or the animals we have just hunted? for thousand of years, it was the reality we had to cope
with.luckily these days are over and electronic payment methods are now available for

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everybody and are an important part of our day to day activities and life.now days paying for
goods and services is really convenient- it can be as easy as easy a one time click.
its obvious that the development of e payments is closely related to online commerce and follows
the improvements in that field. as you probably know and experienced, e -commerce is
extremely convenient and online payments are way more suited to customer’s requirements that
traditional payment form like cash. there are a variety of payment methods today, such as online
banking, credit and debit card, charge card or e- wallet, but take a step back and look at how it all
began.
1. It all started with the world wide web
The origin of e-payment is, of course, related to the beginning of the internet, which
revolutionized the world like nothing before. after all, if there were no world wide web, there
wouldn’t be online stores and e-services.
2. The beginning of the e-payment systems
Along with the internet development, pioneer online payment services started to operate in the
first half of the 90s. in 1994 Stanford federal credit union was established- The first financial
institution which offered online internet banking services to all of its members. however, first
online payment system were not user friendly at all and required specialized knowledge of
encryption or data transfer protocol. What is more, the system were not adapted to constant
changing of users’ number and their transaction.
3. Evolution of payment possibilities
Most of the modern payment systems are easy to use with the payment process minimized to
just a few simple steps. there are website or app based, which means there is no need to install a
distinct software or buy special equipment, which was the case a few yeasr ago. Now a days
systems are available from any device connected to the internet.
4. Time for game chargers
The online and offline payments are interpenetrating distinction between these two becomes
more and more blurred each years. It is related mainly to the dynamic growth of technologically
advanced mobile devices with internet connection, and retailers who allow you to pay in their
brick and mortar stores with your smart phones are nothing exceptional nowadays.
5. Social network and new technologies

It is also of the consistent popularity of social network and online gaming facebook only has 155
billion mothly active users and is still growing. Till today, the network extends its functionality
with online games, Which allows us making in game purchases.

Furthermore, mobile technologies are developing fast and customers no longer need pc’s and
laptop to buy online. The future of E Payments depends on the development of new technologies
and role of the internet in our life.

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 Practical Aspect
An electronic payment, in short, can be simply defined as paying for goods or services on the
internet. it includes all financial operations using electronic devices, such as computers,
smart phones and tablets.

E-payment come with various methods, like credit and debit card payments and bank
transfers. Note that one of the most popular and common online payment methods nowadays
a credit cards.

How E- Payment works

Online payments are made instantly, so its convenient and saves lot of time. it is important,
especially today when every aspects of our lives happens at a fast pace.

the entire process behind the payment button is complicated, so here’s the basics to make you
understand it better.

1. Customer action – The process begins when a customer visits the merchant’s site and adds
to the cart items (products or services) they want to buy. They, then need to fill out the
payment form with certain information (e.g. card number, expiration date, CVV code,
address). Depending on the payment method, the customer is either redirected to external
service or bank’s website or continues the payment on the website or in an app.
2. Payment authentication by the operator – The payment gateway (with other parties
involved) checks whether the payment information is valid. If everything’s OK, the process
continues and the payment gateway reports back the successful transaction. After that, the
customer receives a payment confirmation — the notification is usually displayed in real-
time.
3. Payment to the seller’s account – An online payment provider receives a payment from a
customer’s bank and transfers it to the merchant’s account.
In general, e-payments are considered a fast and secure alternative to traditional payment
methods, such as bank transfers, checks, etc. Accepting electronic payments comes with lots of
benefits for both merchants (of any size) and consumers.

Moreover, electronic payments are highly effective for international transactions. It is generally
cheaper, easier and faster than other payment methods. As a merchant, you don’t have to worry
about currency conversion or high commission.

Understanding electronic payment system (RTGS, NEFT, IMPS)

If you’re a business owner in India who has recently started implementing digital transactions in

your business, your knowledge shouldn’t be limited to net banking and card payments. If you’ve

15
heard about NEFT, IMPS, and RTGS, you’d already know that they are used to transfer funds

from one account to another. However, are you well-versed in the difference between the 3

modes? This leads to us to the next question: why should you know the difference, anyway?

Let’s say, one fine day, you decide to transfer funds to your vendor’s account. You try wiring the

payment through NEFT, but you’re unable to get it done as it’s Sunday. You weren’t familiar

with the fixed timing of NEFT, so now you try to get it done through RTGS instead, but that fails

as well since your amount is lower than the minimum transaction value.

What you needed in this situation was IMPS, but you had to figure that out through trial and

error. Without knowing the difference between the three methods, you had no way of knowing

which one would work for you. Let’s fix that. Before you get stuck in another trial-and-error

payment mess, read on to understand the three methods and how each one can help you. We’ve

done the research so you won’t have to.

NEFT (National Electronic Funds Transfer)

With NEFT, you can transfer any amount to the recipient’s account in a one-on-one transfer

basis. NEFT transactions don’t have a maximum limit for funds that can be transferred in a

single day.

– Timings for NEFT

One important feature of this method is that the funds are transferred in batches that are settled in

half-hourly time slots. The fund transfers are processed in 12 batches between 8 a.m. to 6:30

p.m. on weekdays and 6 batches between 8 a.m. to 1 p.m. on Saturdays. NEFT is not available

on Sundays and bank holidays. If a transfer is initiated any time after the specified hours for that

day, it will be processed on the next working day.

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 – Transaction limits
Even individuals without bank accounts can deposit cash through NEFT up to Rs. 2 lakhs (but

it’s limited to Rs. 50,000 per transaction). With NEFT, you can initiate transactions to transfer

funds from one bank account to another throughout India. However, you must make sure that the

banks are a part of the NEFT transfer network (another way to say this is that the banks should

be NEFT-enabled).

– Procedure
To transfer funds via NEFT, all you have to do is log in to your net banking portal and add the

recipient as a beneficiary. You’ll need to enter details like their name, account number, account

type and IFSC code under the Add New Payee section. Once you choose NEFT as the preferred

mode of transfer and enter the amount to be transferred, the fund transfer will be completed.

RTGS (Real Time Gross Settlement)

Business owners can use RTGS when they need to transfer large amounts instantly. One

advantage that RTGS has over the other methods is the transaction speed, since the entire amount

is transferred in real time.

– Timings for RTGS

Though the available hours for RTGS transactions vary based on the individual banks and their

branches, this is the standard timing:

 7:00 a.m. to 6:00 p.m. for customer transactions

 7:00 a.m. to 7:45 p.m. for inter-bank transactions

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– Transaction limits
There’s a minimum limit of Rs. 2 lakhs for RTGS transactions, and there’s no maximum limit as

such.

To get an RTGS-enabled account, you can either contact your bank or check your eligibility

status in your online banking portal. If you’re using RTGS for a fund transfer, make sure that

both you and the recipient have RTGS enabled accounts.

– Procedure
To transfer funds via RTGS, log in to your banking portal and add the recipient as a beneficiary

by entering details like their name, account number, account type and IFSC code. Then choose

RTGS as the mode of transfer and enter the amount to be transferred, and the fund transfer will

be completed.

IMPS (Immediate Payment Service)

IMPS is another real-time payment service, but the distinguishing factor is that IMPS is

available 24⁄7 and you can avail the service even on bank holidays. Using IMPS, you can transfer

comparatively lower amounts, up to Rs. 2 lakhs, instantly.

So, you can think of IMPS as the fund transfer mode that has the best features of both RTGS and

NEFT. You can transfer amounts as low as you want, any time you want, with instant results.

Though IMPS services are mostly used online, a few banks offer SMS services. Check with your

bank to see if they support IMPS transfers via SMS.

The IMPS service is offered by the National Payments Corporation of India (NPCI). Their

services allow customers to transfer funds through both banks and Prepaid Payment Instrument

(PPI) issuers. PPIs are instruments that allow you to purchase goods and services or initiate fund

18
 transfers using value that is stored in thePPI. Some examples of PPIs include smart cards,

magnetic stripe cards, digital wallets, and vouchers. Individuals without bank accounts can

transfer funds by IMPS using PPI.

– Procedure
To transfer funds via IMPS, you should first register for the mobile banking service of the

concerned bank and generate a Mobile Money Identifier (MMID) and MPIN from the bank. You

should make sure that your beneficiary or recipient has the MMID and MPIN too.

Once you’ve registered, log in to your net banking portal and select IMPS as the preferred mode

of transfer. Then you should fill in details like the recipient’s mobile number, the

recipient’s MMID, the amount to be transferred, and your MPIN. Once this is done, you will

receive a confirmation message via SMS.

Factors that differentiate the 3 modes

 Timing: The available hours for each type of fund transfer depend on the individual bank and

their customer service schedule. NEFT and RTGS services will be unavailable on weekends and

bank holidays, while IMPS services can be availed round the clock. Also, NEFT transfers funds

in timed batches, while RTGS and IMPS are real-time transfer modes.

 Transaction limit: This is one of the most important differences. NEFT and IMPS have no

minimum value, while RTGS has a minimum fund value of Rs. 2 lakhs. Each mode has a

different maximum fund limit.

 Service fee: The fee charged for the fund transfer transaction varies between the three modes.

RTGS is comparatively expensive, while NEFT and IMPS are less so.

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 Transaction speed: NEFT has fixed batch time slots and can take around 2 hours for the recipient

to receive the funds, whereas RTGS and IMPS transfers take place in real time and are usually

complete within minutes.

Tip: Before initiating a transfer using any of these modes, read the applicable conditions

and rules (if any). Consult your bank in case of queries and verify the details with a bank official

to stay on the safer side.

Advantages of using online fund transfer services

Online fund transfers are reliable, fast and convenient. Using these services, you can transfer

funds easily without having to wait in long queues to withdraw cash or try to be physically

present at the bank. They also offer choice and flexibility — if you consider factors like the value

of funds you want to transfer, transaction speed, cost and timing, you can select the service that

suits your needs best for each transaction.

Services provided by HDFC bank for e-payment

Mobile App-
HDFC bank mobile banking LITE –

HDFC bank mobile banking LITE App is an app which helps customers use SMS/Toll-free
Banking in an easy way in which customers can conduct inquiry based transactions without
remembering short codes or toll-free numbers and without having any internet access. Country:
India .Launch Date: 2016.

PayZapp App -

HDFC Bank PayZapp, a complete payment solution, giving you the power to pay in just One
Click.
With PayZapp, you can shop on your mobile at partner apps, buy movie tickets, groceries,
compare and book flight tickets and hotels, shop online and get great discounts at SmartBuy,

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send money to anyone in your contact list or to your bank account, pay bills and recharge your
mobile, DTH and data card and many more.
You can link your Debit and Credit Card, of any Bank, to PayZapp and enjoy the most
convenient and secure way of payment.

Loan assist –

The application also lets you manage your finances like calculation of your EMI,loan transfer
to HDFC Bank for Loans like Personal Loans, Business Loans,Home Loans, future planning
with financial tools, premium calculators and credit score.

Smart Hub App –

HDFC Bank SmartHub offers a wide range of payment solutions to help every business grow
and accept cashless payments from their customers. SmartHub offers you, a) Bharat QR Code
Based Payments - Customers can scan this QR code with their phone and pay instantly using
their payment app.

Kisan App –

This app aggregates key information required by the farmer and presents it in a basket. Be it
shopping for seeds, implements or any other agro products, the farmer can bank on for the best
deals on quality agro products. Moreover, the farmer can learn best practices, get weather
updates, mandi rates, expert advise, agri news, information on government schemes, godowns,
livestock centers, crop insurance , DD Kisan Advisories and much more. Not to forget, the best
loan offers await you with minimal eligibility criteria.

Research Methodology
Objective:

1. To evaluate the prospects of Electronic payment in Indian banking industry and

financial institutions.
2. To evaluate the impact of Electronic payment on the operations of financial
institutions in the country.
3. To examine the effect of electronic payment on bank customer relationship.
4. To seek to examine the challenges facing the implementation of electronic payment in
country.

 Source of Data collection : Primary Data

 Tools for Data collection : Questionnaire
 Tools fir Data Analysis : Pie Chart

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 Scope and Significance of the Study : As part of the objectives of the project
the focus will be on the Electronic payment and its implementation in India.
Further, the other applications of e-payment will also be studied. As an
empirical investigation is required to get insights and generate findings, the
study will evaluate the scope and situation of Electronic payment in HDFC
bank.The scope of the research will extend to conducting analysis to gain
insights about the various factors that affects the implementation procedure.
The project will also study the effects of perceptions and behaviour of
customers and employees towards implementation of technology on the
prospects of Electronic payment.This study will provide important insights
and knowledge about the prospects of Electronic payment in the country.
This study will put forward the various factors related to India that can affect
the implementation of technology in the country and will inform about the
various barriers that can be faced in implementing Electronic payment and
will assist the law makers of the country in making strategic decisions.
 Sampling size: The sample size consisted of 40 respondents.
 Sampling population: Staff personals of HDFC bank.
 Sampling Technique: Sample should be selected in such a manner that all the
section of the people is included in the population.

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Analysis and Graphical Presentation of Data
1.Is E-Payment system saves your time and money ?

5%

Agree
40%
Disagree
35%
Strongly disagree
Strongly agree
Neutral

10% 10%

The above pie chart displays the result of the question in percentage. The information gathered
shows that 40% of the respondents are agree, 10% of respondents are disagree,10% of
respondents are strongly disagree, 35% of the respondents are strongly agree and 5% of
respondents are neutral.

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 2. Is e-payment system is better than offline payment system ?

5%

Agree
30% 40%
Disagree
Strongly Disagree
Strongly agree
Neutral

10%
15%

The above pie chart shows the result in percentage. The gathered information shows that 40% of
respondents of HDFC bank are agree,15% of respondents are disagree , 10% of respondents are
strongly disagree, 30% of respondents are strongly agree and 5% of respondents are neutral.

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 4. Is e-payment system open 24 Hours a day?

10%

30% Agree
Disagree
25%
Strongly disagree
Strongly agree
Neutral

20%
15%

The above pie chart shows the result in percentage. The gathered information shows that 30% of
respondents of HDFC bank are agree,20% of respondents are disagree , 15% of respondents are
strongly disagree, 25% of respondents are strongly agree and 10% of respondents are neutral.

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4.Exchange money from one location to another location

10%

30% Agree
Disagree
30% Strongly Disagree
Strongly agree
Neutral

20%
10%

The above pie chart shows the result in percentage. The gathered information shows that 30% of
respondents of HDFC bank are agree,20% of respondents are disagree , 10% of respondents are
strongly disagree, 30% of respondents are strongly agree and 10% of respondents are neutral.

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Large number of user satisfied in this

5%

Agree
30% 40%
Disagree
Strongly disagree
Srongly agree
Neutral

15%
10%

The above pie chart shows the result in percentage. The gathered information shows that 40% of
respondents of HDFC bank are agree,10% of respondents are disagree , 15% of respondents are
strongly disagree, 30% of respondents are strongly agree and 5% of respondents are neutral.

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Get quick response in this

5%

Agree
40%
Disagree
35%
Strongly Disagree
Strongly agree
Neutral

10% 10%

The above pie chart shows the result in percentage. The gathered information shows that 40% of
respondents of HDFC bank are agree,10% of respondents are disagree , 10% of respondents are
strongly disagree, 35% of respondents are strongly agree and 5% of respondents are neutral.

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Findings
1. Internet centre in the study area is the place for using internet for around 50 % of the
respondents.
2. through majority of the bank customers perceive the ATM usage as important, the
importance of ATM usage is significantly related to location, education and
occupation of the bank customers based on the present study.
3. The perceived in importance of tele banking is independent of the location and income
but depends upon Sex, Age, Education and occupation and income.
4. The internet banking is important for bank customers and at the same time the
importance of the internet banking is significantly related to their age, education,
occupation and income.
5. The services such as deposits using ATM and telephone banking performed by the
bank are just good in turn indicating the act these services are some what upto the
expectation of the bank customers.
6. It is found that withdrawls using ATMs is the service performed in the bank very
much to the expectation of the bank customers. Besides this user friendliness of E
Banking, debit card facility and security of transactions are the other three services
performed very well by the banks to the bank customers’ expectation in that order.
7. it is eliciped that debit card facility followed by withdrawls using ATMs, Internet
Banking and E Transfer of funds are the first four 187 qualities services provided by
the banks via E Banking/ Electronic Payment System to the bank customers.

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 Conclusion
The findings of this report provide a broad picture of the current situation. The literature review
has shown that there is a lack of research into the issues blind and partially sighted people face
when using ePayment solutions and that electronic payment systems are up and coming and
therefore need to be reviewed further. Whilst the team only had a limited period in which to
conduct the review, the lack of research was apparent. This suggests that whilst research may
exist it is not freely available in the public domain. As such it is likely that industry stakeholders
are not fully aware of the issues blind and partially sighted people face by the lack of
accessibility features in ePayment solutions. Therefore there is a need for RNIB to conduct
focussed research into the common ePayment methods. By doing this RNIB can provide the
industry with the information needed to provide more inclusive solutions which will remove the
barriers which currently exist.

The technology review highlights that each ePayment system has its own draw backs and that a
holistic approach to these solutions is needed in order to bring about accessibility improvements.
As such it will be necessary to provide guidance on all aspects of the major solutions from
location in the environment to interface design. Only by doing this will these solutions become
better for blind and partially sighted people.

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Suggestion
Electronic channel mostly used by people living in urban area. It is
suggested that the bankers should take measures for creating awareness and
educate all kinds of people about electronic channels.
The young generations are more aware about E-Banking system then older
generation. The older generation having less confident on E-Banking. Due to
it complexity and operating methodology. It is suggested that the bankers
should take measures for developing confidence about E-Banking operations
among older generations.
The high income groups of customers are having more awareness about E-
Banking services than other income group customers. Therefore, the bankers
should take necessary steps to create awareness to other income group of
customers by way of conducting seminars, exhibition, customer meet,
advertisements etc.,
Among all the E-Banking channels ATM and mobile banking services most
familiar among the users. It is suggested that the bankers should take much
efforts to inculcate knowledge and awareness about other E-Banking
channels to the customers.
Availability cash in ATM centre is always problematic aspect among the
customers. Therefore, it is suggested that the bankers took care of the
availability of cash in ATM centers particularly in remote ATM locations.
Internet security is the one of the prominent set back of E-Banking
operations in many times. It is suggested that the bankers should take
initiative and measures for a perfect E-Banking security system such as bio-
metric and iris recognition etc.

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Bibliography
Denis Abrazhevich.” “Electronic Payment Systems:a User-Centered Perspective and
Interaction Design”, Proefschrift. -ISBN 90-386-1948-0NUR 788, 2004. [2] Kaur Manjot, E-
Commerce, Kalyani Publcation, New Delhi(2012). [3] Ailya Izhar, Aihab khan, Malik
Sikandar Hayat Khiyal, 4Wajeeh Javed and Shiraz Baig“, Designing and implementation of
Electronic Payment gateway for developing countries”, journal of Theoretical and applied
information technology, vol, 26 No. 230 ] Hossein Bidgoli (2002).Electronic commerce.
Acadmic press. Ed. California: USA [5] Joseph P.T, S.J (2008) An Indian perspective, 3 rd
edition, E-Commerce, by PHI learning private limited. [6] Delali Kumaga Dec 2010 The
challenges of implementing Electronic Payment Systems – The Case of Ghana’s E-zwich
Payment System [7] Yang Jing,” “On-line Payment and Security of E-
commerce”.Proceedings of the 2009 International Symposium on Web Information Systems
and Applications (WISA’09)Nanchang, P. R. China, May 22-24, 2009, pp. 046-050 [8]
Kalkota Ravi, Electronic Commerce, Pubished by arrangement with Pearson Education ,Lnc
and Dorling Kindersley Publishing lnc(1997).April 2011.

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Annexure

Questionnaire:
I chhaya Sharma pursuing master of business administration from jiwaji university, Gwalior
mp. I am writing a research paper, which a part of my academic curriculum. currently
conducting a survey, to know the “Electronic Payment System”.

Please help me by filling out this questionnaire. all information will be treated in strict
confidence and will not share with anyone.

Thank you

Please provide the following information

Part A

Organization information

Name of the organization HDFC Bank

Life of organization

Personal information
Gender
Age
Education
Designation
Total professional experience
Email
Phone

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Part B

Please encircle the appropriate number against each statements according to the scale given
below:-

strongly agree Agree Neutral Disagree strongly Disagree

1 2 3 4 5

Marketing Strategies

1 E Payment system saves your time and 1 2 3 4 5

money
2 E Payment system is better than offline 1 2 3 4 5
payment system
3 E Payment System open 24 hrs a day 1 2 3 4 5
4 Exchange money from one location to 1 2 3 4 5
another location
5 Large number of user satisfied in this 1 2 3 4 5
6 get quick response in this 1 2 3 4 5
7 Reduce paper work 1 2 3 4 5
8 It is reliable service. 1 2 3 4 5
9 Hacker can access to digitized information 1 2 3 4 5
and record of E Payment.
10 Customer has to be alert, he must be with 1 2 3 4 5
secure site in which using E Payment system.
11 Need internet and E Payment system use 1 2 3 4 5
experience.
12 Gateway play important role in E Payment 1 2 3 4 5
system.
13 Chance of making mistakes 1 2 3 4 5

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