A survey on customer satisfaction

towards internet banking

PROJECT REPORT

Submitted to Punjab University, Chandigarh

in partial fulfillment
for the degree of
Bachelor of Business Administration
(2017-2020)

Supervised by: Submitted By:

Mrs. Manpreet Kaur Samanyu Dhall

Roll No. 17045474

SRI AUROBINDO COLLEGE OF

COMMERCE AND MANAGEMENT,
LUDHIANA
 TABLE OF CONTENTS

 Declaration
 Certificate of Supervisor
 Acknowledgement

Chapter-1 Introduction Page No

Chapter-2 Review of literature

Chapter-3 Research methodology

Chapter-4 Data Analysis and interpretation

Chapter-5 Summary and Conclusion

 Annexure

 Bibliography
 DECLARATION

I, Samanyu Dhall, a Student of BBA 2017-20 Batch, at Sri Aurobindo College of

Commerce and Management, Ludhiana hereby declare that the project on the
topic “A survey on customer satisfaction towards internet banking” is my
original work and that it has not previously formed the basis for the award of any
other Degree, Diploma, Fellowship or other similar titles. It has been done under
the able guidance of Mrs. Manpreet Kaur.

(Signature)

Samanyu Dhall
 CERTIFICATE OF APPROVAL

This is to certify that the project work entitled “A survey on customer Satisfaction
towards internet banking” is a bonafide work carried out by Mr. Samanyu Dhall
in partial fulfillment for the degree of Bachelor of Business Administration at Sri
Aurobindo College of Commerce and Management, Ludhiana affiliated to Panjab
University, Chandigarh. The project report is approved here with.

_______________

Mrs. Manpreet Kaur

Assistant Professor

SACCM, Ludhiana
 ACKNOWLEDGEMENT

AT the outset I bow my head before the ‘Almighty’ for the immense blessings showered on me
to carryout this thesis work successfully. Also I must express my deepest gratitude to all people
along the way. No words can adequately express my sense of gratitude; still I express my
heartfelt thanks through words.

 I am extremely glad to express my deep sense of gratitude to my research supervisor Mrs.

Manpreet Kaur, Assistant Professor, Sri Aurobindo College Of Commerce And Management
for her in valuable guidance for the right blend of flexibility and support , for meticulous reading
of the text , honest criticism and helpful feedback and for always believing in me and
encouraging me to set higher goals.

My sincere thanks are due to Dr. Ajay Sharma, Principal , Sri Aurobindo College Of
Commerce And Management for providing all necessary assistance during the course of my
research.

 I express my deep sense of gratitude to my loving and supportive family. I remember them with
highest sense of gratitude for motivating me to strive for excellence in all ventures. And a special
word of thanks too for his assistance in over coming technical snags during the course of data
entry.
 CHAPTER-1

INTRODUCTION OF BANKING SECTOR INDIA

The Indian banking and financial sector has also welcomed this change. Today, more and more
Indian banks are trying to differentiate themselves in a fiercely competitive industry. Not only
this helps them align their offerings to the constantly evolving customer needs and developments
in technology, it also serves to replace some of traditional bank functions, thereby reducing
significant overheads associated with bank branches.

As an increasing number of Indian banks look at the innovative ways, such as Online banking, to
make a customer's banking experience more convenient, efficient, and effective, it becomes even
more important to ascertain the customers’ perception of the overall service quality and their
satisfaction with the current online banking services. Measuring customer satisfaction can
provide banks useful information about customer loyalty and retention, and also help them
devise effective strategies to use efficient customer service as a distinguishing factor in this
heavily customer-oriented service industry. It is a well-known fact that globalization and
deregulations over the past decade or so, while helped banks expand their reach beyond countries
and continents, have also made them highly competitive. It’s getting increasingly difficult for
these financial institutions to simply compete based on price. Banks are, therefore, looking at
other ways, e.g. offering Internet banking services, to maximize profits as well as retain their
loyal customer base. However, this cannot be accomplished without sufficiently high service
quality, which when fulfills the constantly changing customer needs, results in improved
customer satisfaction. Banks hope to capitalize on these customer satisfaction levels in order to
strengthen the customer loyalty as well as expand their overall customer base. It’s not surprising
that customer satisfaction is rapidly developing into a key success factor from Online or Internet
banking standpoint.

Banking in India originated in the last decades of the 18th century. The first banks were The
General Bank of India, which started in 1786, and Bank of Hindustan, which started in 1790;
both are now defunct. The oldest bank in existence in India is the State Bank of India, which
originated in the Bank of Calcutta in June 1806, which almost immediately became the Bank of
Bengal. This was one of the three presidency banks, the other two being the Bank of Bombay
and the Bank of Madras, all three of which were established under charters from the British East
India Company. For many years the Presidency banks acted as quasi-central banks, as did their
successors. The three banks merged in 1921 to form the Imperial Bank of India, which, upon
India's independence, became the State Bank of India in 1955.

Indian merchants in Calcutta established the Union Bank in 1839, but it failed in 1848 as a
consequence of the economic crisis of 1848-49. The Allahabad Bank, established in 1865 and
still functioning today, is the oldest Joint Stock bank in India. It was not the first though. That
honour belongs to the Bank of Upper India, which was established in 1863, and which survived
until 1913, when it failed, with some of its assets and liabilities being transferred to the Alliance
Bank of Shimla.

When the American Civil War stopped the supply of cotton to Lancashire from the Confederate
States, promoters opened banks to finance trading in Indian cotton. With large exposure to
speculative ventures, most of the banks opened in India during that period fey and lost interest in
keeping deposits with banks. Subsequently, banking in India remained the exclusive domain of
Europeans for next several decades until the beginning of the 20th century.

Foreign banks too started to arrive, particularly in Calcutta, in the 1860s. The Comptoire
d'Escompte de Paris opened a branch in Calcutta in 1860, and another in Bombay in 1862;
branches in Madras and Pondicherry, then a French colony, followed. HSBC established itself in
Bengal in 1869. Calcutta was the most active trading port in India, mainly due to the trade of the
British Empire, and so became a banking centre.

The first entirely Indian joint stock bank was the Oudh Commercial Bank, established in 1881 in
Faizabad. It failed in 1958. The next was the Punjab National Bank, established in Lahore in
1895, which has survived to the present and is now one of the largest banks in India.

Around the turn of the 20th Century, the Indian economy was passing through a relative period
of stability. Around five decades had elapsed since the Indian Mutiny, and the social, industrial
and other infrastructure had improved. Indians had established small banks, most of which
served particular ethnic and religious communities.

The presidency banks dominated banking in India but there were also some exchange banks and
a number of Indian joint stock banks. All these banks operated in different segments of the
economy. The exchange banks, mostly owned by Europeans, concentrated on financing foreign
trade. Indian joint stock banks were generally undercapitalized and lacked the experience and
maturity to compete with the presidency and exchange banks. This segmentation let Lord Curzon
to observe, "In respect of banking it seems we are behind the times. We are like some old
fashioned sailing ship, divided by solid wooden bulkheads into separate and cumbersome
compartments."

The period between 1906 and 1911, saw the establishment of banks inspired by the Swadeshi
movement. The Swadeshi movement inspired local businessmen and political figures to found
banks of and for the Indian community. A number of banks established then have survived to the
present such as Bank of India, Corporation Bank, Indian Bank, Bank of Baroda, Canara Bank
and Central Bank of India.

The fervour of Swadeshi movement lead to establishing of many private banks in Dakshina
Kannada and Udupi district which were unified earlier and known by the name South Canara
district. Four nationalised banks started in this district and also a leading private sector bank.
Hence undivided Dakshina Kannada district is known as "Cradle of Indian Banking".

During the First World War (1914-1918) through the end of the Second World War (1939-1945),
and two years thereafter until the independence of India were challenging for Indian banking.
The years of the First World War were turbulent, and it took its toll with banks simply collapsing
despite the Indian economy gaining indirect boost due to war-related economic activities

Post-independence period

The partition of India in 1947 adversely impacted the economies of Punjab and West Bengal,
paralyzing banking activities for months. India's independence marked the end of a regime of the
Laissez-faire for the Indian banking. The Government of India initiated measures to play an
active role in the economic life of the nation, and the Industrial Policy Resolution adopted by the
government in 1948 envisaged a mixed economy. This resulted into greater involvement of the
state in different segments of the economy including banking and finance. The major steps to
regulate banking included:

The Reserve Bank of India, India's central banking authority, was established in April 1934, but
was nationalized on January 1, 1949 under the terms of the Reserve Bank of India (Transfer to
Public Ownership) Act, 1948 . In 1949, the Banking Regulation Act was enacted which
empowered the Reserve Bank of India "to regulate, control, and inspect the banks in India."

The Banking Regulation Act also provided that no new bank or branch of an existing bank could
be opened without a license from the RBI, and no two banks could have common directors.

Nationalisation

Despite the provisions, control and regulations of Reserve Bank of India, banks in India except
the State Bank of India or SBI, continued to be owned and operated by private persons. By the
1960s, the Indian banking industry had become an important tool to facilitate the development of
the Indian economy. At the same time, it had emerged as a large employer, and a debate had
ensued about the nationalization of the banking industry. Indira Gandhi, then Prime Minister of
India, expressed the intention of the Government of India in the annual conference of the All
India Congress Meeting in a paper entitled "Stray thoughts on Bank Nationalisation." The
meeting received the paper with enthusiasm.

Thereafter, her move was swift and sudden. The Government of India issued an ordinance and
nationalised the 14 largest commercial banks with effect from the midnight of July 19, 1969.
Jayaprakash Narayan, a national leader of India, descrinternet bankinged the step as a
"masterstroke of political sagacity." Within two weeks of the issue of the ordinance, the
Parliament passed the Banking Companies (Acquisition and Transfer of Undertaking) Bill, and it
received the presidential approval on 9 August 1969.

A second dose of nationalization of 6 more commercial banks followed in 1980. The stated
reason for the nationalization was to give the government more control of credit delivery. With
the second dose of nationalization, the Government of India controlled around 91% of the
banking business of India. Later on, in the year 1993, the government merged New Bank of India
with Punjab National Bank. It was the only merger between nationalized banks and resulted in
the reduction of the number of nationalised banks from 20 to 19. After this, untilthe 1990s, the
nationalised banks grew at a pace of around 4%, closer to the average growth rate of the Indian
economy.

Linternet bankingeralisation

In the early 1990s, Narasimha Rao government embarked on a policy of linternet

bankingeralization, licensing a small number of private banks. These came to be known as New
Generation tech-savvy banks, and included Global Trust Bank (the first of such new generation
banks to be set up), which later amalgamated with Oriental Bank of Commerce, Axis Bank,
ICICI Bank and HDFC Bank. This move, along with the rapid growth in the economy of India,
revitalized the banking sector in India, which has seen rapid growth with strong contrinternet
bankingution from all the three sectors of banks, namely, government banks, private banks and
foreign banks.

The next stage for the Indian banking has been set up with the proposed relaxation in the norms
for Foreign Direct Investment, where all Foreign Investors in banks may be given voting rights
which could exceed the present cap of 10% at present it has gone up to 74% with some
restrictions.

The new policy shook the Banking sector in India completely. Bankers, till this time, were used
to the 4-6-4 method (Borrow at 4%; Lend at 6%; Go home at 4) of functioning. The new wave
ushered in a modern outlook and tech-savvy methods of working for traditional banks. All this
led to the retail boom in India. People not just demanded more from their banks but also received
more.

Currently, banking in India is generally fairly mature in terms of supply, product range and
reach-even though reach in rural India still remains a challenge for the private sector and foreign
banks. 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. The stated policy of the Bank on the Indian Rupee is to manage volatility but
without any fixed exchange rate-and this has mostly been true.

In March 2016, the Reserve Bank of India allowed Warburg Pincus to increase its stake in Kotak
Mahindra Bank to 10%. This is the first time an investor has been allowed to hold more than 5%
in a private sector bank since the RBI announced norms in 2010 that any stake exceeding 5% in
the private sector banks would need to be vetted by them.

In recent years critics have charged that the non-government owned banks are too aggressive in
their loan recovery efforts in connection with housing, vehicle and personal loans. There are
press reports that the banks' loan recovery efforts have driven defaulting borrowers to suicide.

Adoption of banking technology

The IT revolution had a great impact in the Indian banking system. The use of computers had led
to introduction of online banking in India. The use of the modem innovation and computerisation
of the banking sector of India has increased many folds after the economic linternet
bankingeralisation of 1991 as the country's banking sector has been exposed to the world's
market. The Indian banks were finding it difficult to compete with the international banks in
terms of the customer service without the use of the information technology and computers.

The RBI in 1984 formed Committee on Mechanisation in the Banking Industry (1984) whose
chairman was Dr C Rangarajan, Deputy Governor, Reserve Bank of India. The major
recommendations of this committee were introducing MICR Technology in all the banks in the
metropolis in India. This provided use of standardized cheque forms and encoders. In 1988, the
RBI set up Committee on Computerisation in Banks (1988) headed by Dr. C.R. Rangarajan
which emphasized that settlement operation must be computerized in the clearing houses of RBI
in Bhubaneswar, Guwahati, Jaipur, Patna and Thiruvananthapuram. It further stated that there
should be National Clearing of inter-city cheques at Kolkata, Mumbai, Delhi, Chennai and
MICR should be made Operational. It also focused on computerisation of branches and
increasing connectivity among branches through computers. It also suggested modalities for
implementing on-line banking. The committee submitted its reports in 1989 and computerisation
began form 1993 with the settlement between INTERNET BANKINGA and bank employees'
association. In 1994, Committee on Technology Issues relating to Payments System, Cheque
Clearing and Securities Settlement in the Banking Industry (1994) was set up with chairman Shri
WS Saraf, Executive Director, Reserve Bank of India. It emphasized on Electronic Funds
Transfer (EFT) system, with the BANKNET communications network as its carrier. It also said
that MICR clearing should be set up in all branches of all banks with more than 100 branches.
Committee for proposing Legislation on Electronic Funds Transfer and other Electronic
Payments (1995) emphasized on EFT system. Electronic banking refers to DOING BANKING
by using technologies like computers, internet and networking, MICR, EFT so as to increase
efficiency, quick service, productivity and transparency in the transaction.

Traditional bank offering Online Banking services to their customer to deliver banking products
and service to customers directly through electronic communication channels. Online Banking
includes the systems that enable financial institution customers, individuals or corporate to
access accounts, transact business, or obtain information on financial products and services
through a public or private network, like internet or mobile phone. When a customer opens an
account with a bank, he/she receives a welcome kit from the bank. This kit contains all the
important documents including confidential information required by the customer including
document with account number, Debit cum ATM card, ATM PIN, customer’s user ID, online
banking password, phone banking password, checkbook, etc. Customer should ensure that all the
passwords or PIN should be received in a closed envelope failing which he/she should report to
the bank immediately. Customer need to complete a form for activating Online Banking facility
and submit it in person at a bank’s branch. Only once the net banking facility gets activated,
customer can login to the website and enter user ID and password to access his account details
and conduct financial transactions. Banks maintain high security regarding the password
authentication and encryption. Moreover, banks suggest customers to keep their password secret
and change it periodically. One should read the net banking guidelines thoroughly before
conducting financial transactions over the internet.

WHAT IS INTERNET BANKING

The twenty-first century is characterised by the use of information and communication

technology which has revolutionised our working and living patterns. A new era of banking,
termed "Internet banking" has emerged, where customers can perform their financial transactions
electronically over the internet through their personal computer or laptop at a time convenient to
them, without having to be restricted to regular branch operating hours. Furthermore, customer is
expected to perform at least one of the following transactions online, namely viewing account
balance and transaction histories, paying bills, transferring funds between accounts, ordering
cheques, managing investments and stock trading.

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. India can be said to be on the threshold of a major
banking revolution with net banking having already been unveiled

Internet banking is defined as "the provision of retail and small value banking products and
services through electronic channels. Such products and services can include deposit-taking,
lending, account management, the provision of financial advice, electronic bill payment, and the
provision of other electronic payment products and services such as electronic money."

Online banking or Internet 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.

History of Internet Banking At Global Level

The concept of Internet banking has been simultaneously evolving with the development of the
World Wide Web. Programmers working on banking data bases came up with ideas for online
banking transactions, sometime during the 1980s. The creative process of development of these
services was probably sparked off after many companies started the concept of online shopping.
The online shopping promoted the use of credit cards through Internet. Many banking
organizations had already started creating data ware housing facilities to ease their working
staffs.

Sometime in 1980s, banking and finance organizations in Europe and United States started
suggestive researches and programming experiments on the concept of 'home banking'. Initially
in the 80's when computers and Internet were not so well-developed, 'home banking' basically
made use of fax machines and telephones to facilitate their customers. The widespread of
Internet and programming facilities created further opportunities for development of home
banking.

In 1983, the Nottingham Building Society, commonly abbreviated and referred to as the NBS,
launched the first Internet banking service in United Kingdom. This service formed the basis for
most of the Internet banking facilities that followed. This facility was not very well-developed
and restricted the number of transactions and functions that account holders could execute. The
facility introduced by Nottingham Building Society is said to have been derived from a system
known as Prestel that is deployed by the postal service department of United Kingdom.

The first -online banking service in United States was introduced, in October 1994. The service
was developed by Stanford Federal Credit Union, which is a financial institution. The online
banking services are becoming more and more prevalent due to the well-developed systems.
Though there are pros and cons of electronic cash, it has become a resolution that is enhancing
the banking sector.

Indian scenario
Indian economy is witnessing stellar growth over the last few years. There have been rapid
developments in infrastructural and business front during the growth period. Internet adoption
among Indians has been increasing over the last one decade. Indian banks have also risen to the
occasion by offering new channels of delivery to their customers. Internet banking is one such
new channel which has become available to customers. Customer acceptance for Internet
banking has been good so far. In this study the researcher tried to conduct a qualitative and
quantitative investigation of Internet Banking customer acceptance among Indians. The
researcher tried to identify important factors that affect customer's behavioral intention for
internet banking .The researcher also proposes a research model which has extended from
Technology Acceptance Model for predicting internet banking acceptance. The findings of the
study would be useful for Indians banks in planning and upgrading their internet banking service.
Banks could increase internet banking adoption by making their customer awareness about the
usefulness of the service. It is seen that from the study that the variable perceived usefulness has
a positive influence on internet banking use, therefore internet banking acceptance would
increase when customers find it more usefulness. Banks should plan their marketing campaigns
taking into consideration this factor. Proper marketing communications which would increase
consumer awareness would result in better acceptance of internet banking. The variable
perceived ease of use had a positive influence on internet banking use. That means customers
would increase internet banking usage when they find it easier to use. Banks should therefore try
to develop their internet banking site and interface easier to use. Banks could also consider
providing practical training sessions for customers at their branches on usage of internet banking
interface.

Product and Banks in India are at different stages of the web-enabled Services offered: banking
cycle. Initially, a bank, which is not having a web site, allows its customer to communicate with
it through an e-mail address" communication, is limited to a small number of with gradual
branches and offices which have access to this e-mail count. Adoption of Information
Technology, the bank puts up a web site that provides general information on deposits products,
application forms for downloading and Vijay Bank provides information on e-mail option for
enquiries and feedback. This is website about its NRI and other services. Customers are required
to fill in applications on the Net and can later receive loans or other products requested .A few
banks provide the customer to enquire into at their local branch. His demat account
(security/shares) holding details, transaction details and status of instructions given by him.
These web sites still do not allow online, Some of the banks permit customers to transactions for
their customers interact with them and transact electronically with them. Such services include
request for opening of accounts, requisition for cheque books, stop payment of cheques, viewing
and printing statements of accounts, movement of funds between accounts within the same bank,
querying on status or requests, instructions for opening of Letter of Credit and Bank Guarantees,
etc.

These services are being initiated by banks like ICICI Bank Ltd., Citinternet bankingank, Global
Trust Bank Ltd., UTI Bank Ltd., Bank of Citinternet bankingank Bank of Madura Ltd., Federal
Bank Ltd., etc. Some of the more aggressive players in this area such as ICICI Bank Ltd., HDFC
Bank Ltd providing and real time with the launch of its payment gateway. Internet banking
services have been entering into agreements with their customers setting out the terms and the
terms and conditions include information on conditions of the services. The access through user-
ID and secret password, minimum balance and charges, authority to the bank for carrying out
transactions performed through the service, liability of the user and the bank, disclosure of
personal information for statistical analysis and credit scoring also, non-transferability of the
facility, notices and termination, etc.

Private Banks in India were the first to implement internet banking services in the banking
industry. ICICI Bank was the pioneer bank in India who started some of Services related to
Internet Banking. Private Banks, due to late entry into the industry, understood that the
establishing network in remote corners of the country is a very difficult task. It was clear to them
that the only way to stay connected to the customers at any place and at anytime is through
internet applications. They took the internet applications as a weapon of competitive advantage
to corner the great monoliths like State Bank of India, Indian Bank etc. Private Banks are pioneer
in India to explore the versatility of internet applications in delivering services to customers. In
the current scenario Indian customers are moving towards Internet Banking, slowly but steadily.
Most of the big Indian banks like SRI, BOB, & BOI, etc. have started providing Internet Banking
Services.

There is a clear need to develop a better understanding of how consumers evaluate these services
& develop e-loyalty. Service quality is one of the main factors determining the success/failure of
electronic commerce (Santos, 2003). Automated service quality has tended to lag behind because
practitioners have focused mainly on issues of usability & measurement of use (AI-Hawar,
2005). Therefore, customer perception & preferences of service quality have a significant impact
on bank's success
Components of Internet Banking
Retail Banking
Retail banking is banking in which banking institutions execute transactions directly with
consumers, rather than corporations or other banks.

Services offered include:

 Savings and transactional accounts,
 Mortgages,
 Personal loans,
  Debit cards,
 Credit cards, and so forth.

Saving account
Saving account is a account maintained by retail financial institutions that pay interest but cannot
be used directly as money in the narrow sense of a medium of exchange. These accounts let
customers set aside a portion of their liquid assets while earning a monetary return. For the bank,
money in a savings account may not be callable immediately and therefore often does not incur a
reserve requirement freeing up cash from the bank's vault to be lent out with interest.

Transactional account
A transactional account is a deposit account held at a bank or other financial institution, for the
purpose of securely and quickly providing frequent access to funds on demand, through a variety
of different channels.
Transactional accounts are meant neither for the purpose of earning interest nor for the purpose
of savings, but for convenience of th.e business or personal client; hence do they tend not to bear
interest. Instead, a customer can deposit or withdraw any amount of money any number of times,
subject to availability of funds.

Mortgage loan

A mortgage loan is a loan secured by real property through the use of a mortgage note which
evidences the existence of the loan and the encumbrance of that realty through the granting of a
mortgage which secures the loan. However, the word mortgage alone, in everyday usage, is most
often used to mean mortgage loan.
The word mortgage is a Law French term meaning "death contract," meaning that the pledge
ends when either the obligation is fulfilled or the property is taken through foreclosure. A home
buyer or builder can obtain financing either to purchase or secure against the property from a
financial institution, such as a bank, either directly or indirectly through intermediaries. Features
of mortgage loans such as the size of the loan, maturity of the loan, interest rate, method of
paying off the loan, and other characteristics can vary considerably.
In many jurisdictions, though not all (Bali, Indonesia being one exception) it is normal for home
purchases to be funded by a mortgage loan. Few individuals have enough savings or liquid funds
to enable them to purchase property outright. In countries where the demand for home ownership
is highest, strong domestic markets have developed.

Unsecured debt
In finance, unsecured debt refers to any type of debt or general obligation that is not
collateralised by a lien on specific assets of the borrower in the case of a bankruptcy or
liquidation or failure to meet the terms for repayment. In the event of the bankruptcy of the
borrower, the unsecured creditors will have a general claim on the assets of the borrower after
the specific pledged assets have been assigned to the secured creditors, although the unsecured
creditors will usually realize a smaller proportion of their claims than the secured creditors. In
some legal systems, unsecured creditors who are also indebted to the insolvent debtor are able to
set-off the debt, which actually puts the unsecured creditor with a matured liability to the debtor
in a pre-preferential position.

Unsecured loans
Unsecured loans also called signature loans or personal loans. These loans are often used by
borrowers for small purchases such as computers, home improvements, vacations or unexpected
expenses.

An unsecured loan means the lender relies on the borrower's promise to pay it back. Due to the
increased risk involved, interest rates for unsecured loans tend to be higher. Typically, the
balance of the loan is distrinternet bankinguted evenly across a fixed number of payments;
penalties may be assessed if the loan is paid off early. Unsecured loans are often more expensive
and less flexinternet bankingle than secured loans, but suitable if the lender wants a short-term
loan.

Debit card
A debit card (also known as a bank card or check card) is a plastic card that provides the
cardholder electronic access to his or her bank account(s) at a financial institution. Some cards
have a stored value with which a payment is made, while most relay a message to the
cardholder's bank to withdraw funds from a designated account in favor of the payee's designated
bank account. The card can be used as an alternative payment method to cash when making
purchases. In some cases, the primary account number is assigned exclusively for use on the
Internet and there is no physical card.
In many countries the use of debit cards has become so widespread that their volume has
overtaken or entirely replaced checks and, in some instances, cash transactions. The development
of debit cards, unlike credit cards, has generally been country specific resulting in a number of
different systems around the world, which were often incompatinternet bankingle. Since the mid-
2000s, a number of initiatives have allowed debit cards issued in one country to be used in other
countries and allowed their use for internet and phone purchases.
However, unlike credit cards, the funds paid using a debit card are transferred from the bearer's
bank account, instead of having the bearer pay back the money at a later date.
Debit cards usually also allow for instant withdrawal of cash, acting as the ATM card for
withdrawing cash. Merchants may also offer cashback facilities to customers, where a customer
can withdraw cash along with their purchase.

Types of debit card systems

 Magnetic strip
 Signature strip
 Card security code
There are currently three ways that debit card transactions are processed: EFTPOS (also known
as online debit or PIN debit), offline debit (also known as signature debit) and the Electronic
Purse Card System. One physical card can include the functions of all three types, so that it can
be used in a number of different circumstances.
Although many debit cards are of the Visa or MasterCard brand, there are many other types of
debit card, each accepted only within a particular country or region, for example Switch (now:
Maestro) and Solo in the United Kingdom, Interac in Canada, Carte Bleue in France, Laser in
Ireland, "EC electronic cash" (formerly Eurocheque) in Germany, UnionPay in China and
EFTPOS cards in Australia and New Zealand. The need for cross-border compatinternet
bankingility and the advent of the euro recently led to many of these card networks (such as
Switzerland's "EC direkt", Austria's "Bankomatkasse" and Switch in the United Kingdom) being
re-branded with the internationally recognised Maestro logo, which is part of the MasterCard
brand. Some debit cards are dual branded with the logo of the (former) national card as well as
Maestro (for example, EC cards in Germany, Laser cards in Ireland,
Switch and Solo in the UK, Pinpas cards in the Netherlands, Bancontact cards in Belgium, etc.).
The use of a debit card system allows operators to package their product more effectively while
monitoring customer spending. An example of one of these systems is ECS by Embed
International.
Online Debit System
Online debit cards require electronic authorization of every transaction and the debits are
reflected in the user's account immediately. The transaction may be additionally secured with the
personal identification number (PIN) authentication system; some online cards require such
authentication for every transaction, essentially becoming enhanced automatic teller machine
cards.
One difficulty with using online debit cards is the necessity of an electronic authorization device
at the point of sale (POS) and sometimes also a separate PINpad to enter the PIN, although this is
becoming commonplace for all card transactions in many countries.
Overall, the online debit card is generally viewed as superior to the offline debit card because of
its more secure authentication system and live status, which alleviates problems with processing
lag on transactions that may only issue online debit cards. Some on-line debit systems are using
the normal authentication processes of Internet banking to provide real-time on-line debit
transactions. The most notable of these are Ideal and POLL.

Offline Debit System

Offline debit cards have the logos of major credit cards (for example, Visa or MasterCard) or
major debit cards (for example, Maestro in the United Kingdom and other countries, but not the
United States) and are used at the point of sale like a credit card (with payer's signature). This
type of debit card may be subject to a daily limit, and/or a maximum limit equal to the
current/checking account balance from which it draws funds. Transactions conducted with
offline debit cards require 2-3 days to be reflected on users' account balances.
In some countries and with some banks and merchant service organizations, a "credit" or offline
debit transaction is without cost to the purchaser beyond the face value of the transaction, while a
fee may be charged for a "debit" or online debit transaction (although it is often absorbed by the
retailer). Other differences are that online debit purchasers may opt to withdraw cash in addition
to the amount of the debit purchase (if the merchant supports that functionality); also, from the
merchant's standpoint, the merchant pays lower fees on online debit transaction as compared to
"credit" (offline) debit transaction.

Electronic Purse Card System

Smart-card-based electronic purse systems (in which value is stored on the card chip, not in an
externally recorded account, so that machines accepting the card need no network connectivity)
are in use throughout Europe since the mid-1990s, most notably in Germany (Geldkarte), Austria
(Quick Wertkarte), the Netherlands (Chipknip), Belgium (Proton), Switzerland (CASH) and
France (Mon€o, which is usually carried by a debit card). In Austria and Germany, all current
bank cards now include electronic purses.

Prepaid debit cards

Prepaid debit cards, also called reloadable debit cards, appeal to a variety of users. The primary
market for prepaid cards are unbanked people, an umbrella term used to descrinternet bankinge
diverse groups of individuals- typically with poor credit ratings- who do not use banks or credit
unions for their financial transactions.

The advantages of prepaid debit cards include being safer than carry cash, worldwide
functionality due to Visa and MasterCard merchant acceptance, not having to worry about
paying a credit card bill or going into debt, the ability for anyone over the age of 18 to apply and
be accepted without regard to credit quality and the ability to direct deposit paychecks and
government benefits onto the card for free.
Some of the first companies to enter this market were MiCash, RushCard and Net spend who
gained high market share as a result of being first to market. However, in the past few years there
have been several new providers such as TransCash, 247card and iKobo that carry a number of
other benefits, such as money remittance service, card-to-card transfers and the ability to apply
without a social security number.

Credit card
A credit card is a small plastic card issued to users as a system of payment. It allows its holder to
buy goods and services based on the holder's promise to pay for these goods and services. The
issuer of the card creates a revolving account and grants a line of credit to the consumer (or the
user) from which the user can borrow money for payment to a merchant or as a cash advance to
the user.
A credit card is different from a charge card: a charge card requires the balance to be paid in full
each month. In contrast, credit cards allow the consumers a continuing balance of debt, subject to
interest being charged. A credit card also differs from a cash card, which can be used like
currency by the owner of the card. Most credit cards are issued by banks or credit unions, and are
the shape and size specified by the ISO/IEC 7810 standard as ID-1. This is defined as 85.60 x
53.98 mm (33/8 x 21/8 in) in size.

How credit cards work

Credit cards are issued by a credit card issuer, such as a bank or credit union, after an account
has been approved by the credit provider, after which cardholders can use it to make purchases at
merchants accepting that card. Merchants often advertise which cards they accept by displaying
acceptance marks -generally derived from logos -or may communicate this orally, as in "We take
(brands X, Y, and Z)" or "We don't take credit cards".

When a purchase is made, the credit card user agrees to pay the card issuer. The cardholder
indicates consent to pay by signing a receipt with a record of the card details and indicatingthe
amount to be paid or by entering a personal identification number (PIN). Also, many merchants
now accept verbal authorizations via telephone and electronic authorization using the Internet,
known as a card not present transaction.
Electronic verification systems allow merchants to verify in a few seconds that the card is valid
and the credit card customer has sufficient credit to cover the purchase, allowing the verification
to happen at time of purchase. The verification is performed using a credit card payment terminal
or point-of-sale (POS) system with a communications link to the merchant's acquiring bank.
Data from the card is obtained from a magnetic stripe or chip on the card; the latter system is
called Chip and PIN in the United Kingdom and Ireland, and is implemented as an EMV card.
For card not present transactions where the card is not shown (e.g., e-commerce, mail order, and
telephone sales), merchants additionally verify that the customer is in physical possession of the
card and is the authorized user by asking for additional information such as the security code
printed on the back of the card, date of expiry, and billing address.
Virtual Banking
A direct bank is a bank without any branch network. It offers its financial services by:
 Telephone banking
 Online banking
 Automated teller machines (often through interbank network alliances)
 Mail banking
 Mobile banking
By eliminating the costs associated with bank branches, direct banks may offer higher interest
rates and lower service charges on their products than their traditional competitors. Telephone
banking Telephone banking is a service provided by a financial institution, which allows its
customers to perform some banking transactions over the telephone.
Most telephone banking services use an automated phone answering system with phone keypad
response or voice recognition capability. To ensure security, the customer must first authenticate
through a numeric or verbal password or through security questions asked by a live
representative. With the obvious exception of cash withdrawals and deposits, it offers virtually
all the features of an automated teller machine: account balance information and list of latest
transactions, electronic bill payments, funds transfers between a customer's accounts, etc.
Usually, customers can also speak to a live representative located in a call centre or a branch,
although this feature is not always available 24/7. In addition to the self-service transactions
listed earlier, some telephone banking representatives can also do what was traditionally
available only at a branch: loan applications, investment purchases and edemptions, chequebook
orders, debit card replacements, change of address, etc.
Banks which operate mostly or exclusively by telephone are known as phone banks. They also
help modernise the user by using special technology.
Online banking
Online 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.
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 for customer
verification. The password for online banking is normally not the same as for telephone banking.
Financial institutions now routinely allocate customer numbers, 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.

Automatic teller machine

An automated teller machine or automatic teller machine (ATM), also known as an automated
banking machine (ABM) in Canada, and a Cash point, cash machine or sometimes a hole in the
wall in British English, is a computerised telecommunications device that provides the clients of
a financial institution with access to financial transactions in a public space without the need for
a cashier, human clerk or bank teller. ATMs are known by various other names including ATM
machine, automated banking machine, and various regional variants derived from trademarks on
ATM systems held by particular banks.
On most modern ATMs, the customer is identified by inserting a plastic ATM card with a
magnetic stripe or a plastic smart card with a chip that contains a unique card number and some
security information such as an expiration date. Authentication is provided by the customer
entering a personal identification number
Using an ATM, customers can access their bank accounts in order to make cash withdrawals,
debit card cash advances, and check their account balances as well as purchase prepaid cell
phone credit. If the currency being withdrawn from the ATM is different from that which the
bank account is denominated in (e.g.: Withdrawing Japanese
Yen from a bank account containing US Dollars), the money will be converted at an official
wholesale exchange rate. Thus, ATMs often provide one of the best possinternet bankingle
official exchange rates for foreign travellers, and are also widely used for this purpose.
ATMs are placed not only near or inside the premises of banks, but also in locations such as
shopping centres/malls, airports, grocery stores, petrol/gas stations, restaurants, or anywhere
frequented by large numbers of people. There are two types of ATM installations: on- and off-
premise. On-premise ATMs are typically more advanced, multi-function machines that
complement a bank branch's capabilities, and are thus more expensive. Off-premise machines are
deployed by financial institutions and Independent Sales Organizations (ISOs) where there is a
simple need for cash, so they are generally cheaper single function devices. In Canada, ATMs
not operated by a financial institution are known as "White Label ABMs".

Mail banking

Mail banking is a service provided by a financial institution which allows its customers to
deposit cheques into their account by mail. It is primarily used by virtual banks (as they may not
offer branches or ATMs that accept deposits) and by customers who live too far from a branch.
Typically, the institution that advertises such a service will provide its own self-addressed
stamped envelopes as a courtesy.

Mobile banking

Mobile banking is also known as M-Banking, SMS Banking is a term used for performing
balance checks, account transactions, payments, credit applications and other banking
transactions through a mobile device such as a mobile phone or Personal Digital Assistant
(PDA). The earliest mobile banking services were offered over SMS. With the introduction of
the first primitive smart phones with WAP support enabling the use of the mobile web in 1999,
the first European banks started to offer mobile banking on this platform to their customers.
Mobile banking has until recently (2010) most often been performed via SMS or the Mobile
Web. Apple's initial success with iPhone and the rapid growth of phones based on Google's
Android (operating system) have led to increasing use of special client programs, called apps,
downloaded to the mobile device.
The advent of the Internet has enabled new ways to conduct banking business, resulting in the
creation of new institutions, such as online banks, online brokers and wealth managers. Such
institutions still account for a tiny percentage of the industry.

A mobile banking conceptual model:

In one academic model, mobile banking is defined as:
Mobile Banking refers to provision and availment of banking- and financial services with the
help of mobile telecommunication devices. The scope of offered services may include facilities
to conduct bank and stock market transactions, to administer accounts and to access customised
information."
According to this model Mobile Banking can be said to consist of three inter-related concepts:
 Mobile Accounting
 Mobile Brokerage
 Mobile Financial Information Services
Most services in the categories designated Accounting and Brokerage are transaction-based. The
non-transaction-based services of an informational nature are however essential for conducting
transactions - for instance, balance inquiries might be needed before committing a money
remittance. The accounting and brokerage services are therefore offered invariably in
combination with information services. Information services, on the other hand, may be offered
as an independent module.
Credit Union
A credit union is a member-owned financial cooperative, democratically controlled by its
members, and operated for the purpose of promoting thrift, providing credit at competitive rates,
and providing other financial services to its members. Many credit unions also provide services
intended to support community development or sustainable international development on a local
level, and could be considered community development financial institutions. Worldwide, credit
union systems vary significantly in terms of total system assets and average institution asset size,
ranging from volunteer operations with a handful of members to institutions with several billion
dollars in assets and hundreds of thousands of members
Differences from other financial institutions:
Credit unions differ from banks and other financial institutions in that the members who have
accounts in the credit union are the owners of the credit union and they elect their board of
directors in a democratic one-person-one-vote system regardless of the amount of money
invested in the credit union.
Generally speaking, credit unions see themselves as of "higher moral ground" than banks; they
feel that they are "community-oriented", and "serve people, not profit".
Surveys of customers at banks and credit unions have consistently shown a significantly higher
customer satisfaction rate with the quality of service at credit unions.
A credit union's policies governing interest rates and other matters are set by a volunteer Board
of Directors elected by and from the membership itself. Credit unions offer many ofthe same
financial services as banks, often using a different terminology; common services include: share
accounts (savings accounts), share draft accounts (checking accounts), credit cards, share term
certificates (certificates of deposit), and online banking.
Normally, only a member of a credit union may deposit money with the credit union, or borrow
money from it. As such, credit unions have historically marketed themselves as providing
superior member service and being committed to helping members improve their financial
health. In the microfinance context, "credit unions provide a broader range of loan and savings
products at a much cheaper cost [to their members] than do most microfinance institutions".

Field of membership:
Legally, and for tax purposes, credit unions are considered to be non-profits. Banks assert that
since this status exempts credit unions from many federal and state taxes, credit unions can
provide more competitive products. This has led to a variety of laws which limit how credit
unions may accept members. Historically, these meant credit unions were left with the
individuals which banks found to be less desirable or those in a limited geographic area. More
recently, credit unions have been able to broaden their eliginternet bankingility requirements to
accept more members.

Not —for-profit status:

In the credit union context, "not-for-profit" should not be confused with "non-profit" charities or
similar organizations. Credit unions are "not-for-profit" because they operate to serve their
members rather than to maximize profits. But unlike non-profit organizations, credit unions do
not rely on donations, and are financial institutions that must turn what is, in economic terms, a
small profit (i.e. "surplus") to be able to continue to serve their members. According to the World
Council of Credit Unions (WOCCU), a credit union's revenues(from loans and investments) need
to exceed its operating expenses and dividends (interest paid on deposits) in order to maintain
capital and solvency and "credit unions use excess earnings to offer members more affordable
loans, a higher return on savings, lower fees or new products and services.
Global dispersion

The directors of the Mulukanoor Women's Thrift Cooperative stand at the entrance to their credit
union in Karimnagar district, Andhra Pradesh, India
Based on data from the World Council of Credit Unions, at the end of 2010 there were 52,945
credit unions in 100 countries around the world. Collectively they served 188 million members
and oversaw US $1.5 trillion in assets. The World Council does not include data from co-
operative banks, so, for example, some countries generally seen as the pioneers of credit
unionism, such as Germany, France, the Netherlands and Italy, are not included in their data. The
European Association of Co-operative Banks reported 38 million members in those four
countries at the end of 2010.
The countries with the most credit union activity are highly diverse. According to the World
Council, the countries with the greatest number of credit union members were the United States
(92 million), India (20 million), Canada (11 million), South Korea (5.6 million), Kenya and
Brazil(3.9 million each), Thailand (3.6 million), Australia 3.4 million, Ireland (3.0 million), and
Mexico (2.6 million).
The countries with the highest percentage of credit union members in the economically active
population were Ireland (75%), Barbados(72%), St. Lucia (67%), Belize (65%), Grenada (59%),
Trinidad & Tobago and Jamaica (54% each), Canada (46%), Antigua & Barbuda (45%), and the
United States (44%). Several African and Latin American countries also have high credit union
membership rates, as does Australia. The average percentage for all countries considered in the
report is 7.5%
Importance of Internet Banking

The Internet banking is changing the banking industry and is having the major effects on banking
relationships. Even the Morgan Stanley Dean Witter Internet research emphasised that Web is
more important for retail financial services than for many other industries. Internet banking
involves use of Internet for delivery of banking products & services. It falls into four main
categories, from Level 1 - minimum functionality sites that offer only access to deposit account
data - to Level 4 sites - highly sophisticated offerings enabling integrated sales of additional
products and access to other financial services- such as investment and insurance.

In other words a successful Internet banking solution offers:

 Exceptional rates on savings, certificate of deposits, and IRAs.
 Checking with no monthly fee, free bill payment & rebates on ATM surcharges.
 Credit cards with low rates.
 Easy online applications for all accounts, including personal loans and mortgages.
 24 hours account access.
 Quality customer service with personal attention.

Features of Internet Banking

Internet banking is used widely by masses, and has numerous benefits to offer. Nowadays, all
banks provide online banking facility to their customers as an added advantage. Gone are the
days, when one had to transact with a bank which was only in his local limits. Online banking
has opened the doors for all customers, to operate beyond boundaries. Nowadays, people are so
busy in their work lives, that they don't even have time to go to the bank for conducting their
banking transactions. Internet banking enables people to carry out most of their banking
transactions using a safe website, which is operated by their respective banks. It provides many
features and functions to their customers, and enables them to view their account balance,
transfer money from their account to another account, view their account summary, etc.
In this procedure, many financial transactions can be carried out by simply utilizing a computer
with an Internet connection. The necessary things that a person needs for using online banking
are, an active bank account with balance in it for transactions, debit or a credit card number,
customer's user ID, bank account number, the Internet banking PIN number, and a PC with
access to the web. People using Internet banking are certainly benefited by the online services
their respective banks are providing them with. The primary reason why it is so famous and
mostly used is that, customers are allowed to bank at non-working hours.
Banks create their banking interfaces and websites in a viewable and user-friendly manner,
which enable customers to conduct their financial transactions with ease. If they are stuck in any
process while performing their online transactions, banks have another helpful facility that is
'phone banking', wherein customers can call the banks toll-free number and get assistance in
completing their transactions. Electronic bill payment, viewing and downloading financial
records, and money transfers are some of the general transactions which the customers generally
carry out. When a customer views the bank's website, there are many options available, but to
execute those transactions, he would obligatorily need to log into his virtual account. Without
logging in, he won't be allowed to carry out any kind of the transactions. Initially, when he opens
an account with the bank, the bank gives a welcome kit which contains important documents that
include the check book; a document on which the customer's user ID, online banking password,
phone banking password, and account number is embedded. The kit also contains some other
confidential data, the credit or debit card, and the card details. The website will prompt the user
to enter the necessary details like the Internet banking password and account number, and then
will display his account information. In this stage, he can carry out all functions that are available
on the website.

The Internet banking facilities provided by banks differ from bank to bank, and country to
country. To know all online banking services and processes, one has to thoroughly refer to the
guides which were made available in the welcome kit. Moreover, proper care has to be taken
regarding the confidential documents as, Internet banking frauds are on an increase.

Advantages and Disadvantages of Online Banking

Pros of Online Banking:
Online banking or Internet banking, offers the convenience of banking from anywhere, at any
time of the day or night. It is a free facility provided by the banks to their customers. Expediting
the payment of bills, helping people keep track of the balance in their account and transferring
money between accounts are some of the advantages of Internet banking.
Paying Bills Online:
Online banking provides people the facility of paying bills online from their checking account,
money market account or credit card account or from their home equity line of credit. In order to
avail this facility, people would have to set up payees or pay to accounts for which they would
need a copy of their bills. Recurring payments can be made without delay, by making use of the
facility of being able to set up pay to accounts, on completing a simple formality. One can
schedule bill payments up to one year in advance. Online banking helps people keep their bill
payment history in an electronic format, thus eliminating the need for paperwork. Some
companies also dispatch bills directly to the customer's online banking service. However, not all
companies offer e-bills. The customer can thus receive, view and pay e-bills or electronic
versions of their paper bills.

Electronic Funds Transfer:

Online banking allows the facility of electronic transfer of funds between a number of accounts
maintained with the same bank. Generally, people can transfer money from their checking or
their savings account to the following: credit cards, line of credit and investment account. People
can also transfer money from their personal account to the personal account of others, assuming
that the accounts are maintained with the same bank. Customers can also opt to transfer funds
from their personal account, maintained with a bank, to the accounts maintained in other
financial institutions. Withdrawals and deposits are thus facilitated by electronic fund transfers.

Other Facilities:
One can access one's account from anywhere in the world and view the current balance in the
linked accounts. The system of linked accounts allows the bank to transfer funds from the
customers savings account to cover the overdrawn checking and credit card account. Viewing the
balances in linked accounts helps a person keep a check on spending habits. Stopping payments
on checks, re-ordering checks, requesting copies of paid checks, savings and checking account
statements are some of the other facilities of online banking.

Cons of Online Banking:

Although the advantages clearly outnumber the disadvantages of Internet banking, some people
may prefer banking the old-fashioned way due to the following reasons:

Safety Concerns:
In the article titled, "Is Online Banking Safe", cyber scams that may target unsuspecting
customers was explored in great detail. Phishing, the presence of malicious software, key logger
issues and security concerns due to weak wireless security networks deter people from opting for
Internet banking.

Meant for Tech Savvy People:

People belonging to the older generation may not be tech savvy and may find it difficult to adapt
to online banking.
Online banking is a wonderful facility that can save us time and make our life simpler. However,
one must take adequate measures to protect oneself from getting cyber scammed.
Internet banking is the latest development that has added a new dimension to banking
transactions by making it more convenient, which has eliminated the long wearisome waiting-
lines. But, there are some serious problems that you may encounter while banking through the
Internet, due to which many still prefer to go directly to the banks instead of availing this facility.

Problems face by general people for using Internet Banking

For carrying out Internet banking properly, a basic knowledge of computers and the Internet is
required, which limits the number of people willing to avail this facility. Many people, who are
not comfortable with computers and the Internet, often find it difficult to use Internet banking.
Therefore, for beginners, Internet banking is really time-consuming. In addition to this, people
also find a difficulty in trusting a completely mechanized system like Internet banking, in case of
financial matters. In many instances, a simple mistake, like clicking a wrong button, may create a
big problem. And so, many individuals often keep wondering if they have properly executed the
transaction. However, this uneasiness can be avoided by printing the transaction receipt and
keeping it with oneself, until the bank statement is received.
While banking through the Internet, one has to be careful about the security of their Internet bank
account. The security of your Internet bank account depends to a great extent on the security of
your computer, password and pin number.
In Internet banking, one has to make sure that the banking session is secure, as in many instances
you may encounter proxy websites. These proxy websites can easily access their bank account, if
they can crack their user name, password or pin number. Due to such security problems, many
people are apprehensive about Internet banking.
Sometimes, Internet banking can be time-consuming and tedious, as many websites take quite a
long time to get started. Besides this, Internet bank account may also take considerable time to
get started. We may also encounter technical difficulties and connectivity problems while
conducting Internet banking transactions.
However, with the advances in technology, many banks have taken the adequate measures to
ward off any problems related to the security of Internet banking. Customers can also follow
some simple precautionary measures, like not disclosing the password and pin number to
anyone, changing the password at regular intervals and installing antivirus software to ensure
security and safety of their Internet banking transactions. Online banking tutorials are also
provided by many banks to help familiarize people with Internet banking.

STATEMENT OF THE PROBLEM

Economic globalization, information technology revolution, changing customer requirements
and increasing competition have posed a lot of challenges to the existing banking sector in India..
The banks now compete with one another to offer value added services to customer to widen
their client bases. Technology aided products like ATMs, point of sale devices, Anywhere
Banking, Smart Cards, Online Banking and WAP Banking have given the customers to choose
his channel of getting catered to his requirements.. Now the major objective of both private and
public sector banks is to attract a large customer base by offering more delivery channels, giving
more importance to customer relationships. Online Banking is gaining popularity as a delivery
channel. The customers benefit by saving time at the counter of the branch having access to hard
cash at any given point of time, being able to check their accounts from anywhere, as well as
saving transaction cost to the bank. On the other side, the bank saves on its operating costs, as
otherwise it would require trained staff to later to customer needs and can reduce the cost of the
transactions.
The both private and nationalized banks provide Online Banking competitively. Its objective was
to provide financial assistance to needy industries. But now it undertook banking services and
non-banking services also. It is in this context that this study has been carried out to find out the
level of satisfaction of customers on Online Banking services offered by nationalized banks
 CHAPTER-2
REVIEW OF LITERATURE

Dannenberg and Kellner (1998), in their study, overviewed the opportunities for effective
utilization of the Internet with regard to the banking industry. The authors evaluated that
appropriate application of today’s cutting edge technology could ensure the success of banks
in the competitive market. They evaluated the services of banks via internet as websites
provide sophisticated line of products and services at low price.

Daniel (1999), in his research paper, descrinternet bankinged e-banking as the newest
delivery channel offered by the retail banks in many developing countries. The objective of
the study was to analyze the current provision of electronic services of major retail banking
organizations in the UK. The researcher through a questionnaire found that 25% banks in
the UK were those already providing e-banking services, 50% banks were testing or
developing such services while 25% were not providing any e-banking services.

Sathye (1999), in his research paper, explored the factors affecting the adoption of internet
banking by Australian customers. The author stated that internet and other virtual banking
had significantly lower the cost structure than traditional delivery channels. So, the banks
should encourage customers to use internet for banking transactions. The author also
emphasized that for adoption of internet banking, it was necessary that the banks offering
this service made the consumers aware about the availability of such a product and explain
how it adds value to the other products.

Wenninger (2000) evaluated the emerging role of electronic commerce in banks. E-

commerce had created new form of competition and compelled banks to make choices about
the services they offer, the size of their branch network and extent of their support to inter-
bank payments network. The main objective of the study was to understand the changes that
had taken place with the introduction of electronic commerce.

Kamesam (2001) studied the changes that took place in the Indian banking industry which
emphasized on technological advancements and profitability in banks. Technology has
helped in centralized data storage with decentralized processing which has helped in
reduction of costs and NPAs. Further, emergence of services such as electronic data
interchange (EDI), usage of smart cards,

Unninthan (2001) descrinternet bankinged the impact of e-banking adaptation on

Australian and Indian banking sectors with the help of qualitative and quantitative analysis.
The researcher found that Australia had a strong platform for e-banking growth with 37.7
per cent of population willing to engage in e-banking mostly in urban areas due to literate
young working population with discretionary income.

Aki (2002) highlighted the impact of technology in banking sector. New technologies
cannot replace the branch network but these can support old methods of delivering the
services. The author evaluated the structural change in Finnish banking sector from the
period 1993 to 2002 which showed that 42 per cent of households have internet connection
with banks and 90 per cent have mobile banking services.

Alu et al. (2002) reviewed that information technology was rapidly changing the banking
industry. The study evaluated the impact of IT on the banking industry in Nigeria. The
analysis was done through a structured questionnaire and out of 260 respondents, 86 per
cent agreed that IT was really helping the banks, 83.1 per cent agreed that IT had a great
positive impact on services rendered by the banks and 66.5 per cent disagreed that IT had an
effect on services rendered by the banks.

Durkin and Howcroft (2003) evaluated that the banker-customer relationship was
improved through mobile, phone and internet banking. The authors found that new
technology has made the banks very competitive and profitable and internet has played a
key role in it. Perception of bankers and customers regarding the use of internet was
examined. They pointed out that as consumer usage of remote bank delivery channels
increases, relationship management will become more important. Further, the combination
of traditional and new delivery channels, if followed, can help to improve their productivity
and profitability.

Lustik (2004), in his study, tried to assess the profitability of electronic banking services for
the banks. In order to analyze the cost structure for traditional and electronic channel
transactions, the author explored the implementation techniques of activity based costing
(ABC). The results of the study indicated that electronic channels provide cost saving for
banks and their clients. The study revealed that with help of ABC technique, banks can
reduce and regulate some costs.

Pikkarainen, Karjaluoto, and Pahnila (2004) define Internet banking as an ‘Internet portal,
through which customers can use different kinds of banking services ranging from bill payment
to making investments’. With the exception of cash withdrawals, Internet banking gives
customers access to almost any type of banking transactions at the click of a mouse. The use of
the Internet as a new alternative channel for the distribution of financial services has become a
competitive necessity instead of just a way to achieve competitive advantage with the advent of
globalization and fierce competition (Flavian, Torres, & Guinaliu, 2004; Gan, Clemes,
Limsombunchai, & Weng, 2006) [8]. Rueangthanakiet Pairot, 2008 defined Customer‘s
satisfaction as the company's ability to fulfill the business, emotional, and psychological needs of
its customers. However, customers have different levels of satisfaction as they have different
attitudes and experiences as perceived from the company. Customer’s satisfaction is affected by
the importance placed by the customers on each of the attitudes of the product/ service. Customer
satisfaction measurement allows an organization to understand the key drivers that create
satisfaction or dissatisfaction; and what is really driving their satisfaction during a service
experience.

Suleiman et al. (2005) studied the impact of E-banking on Malaysian banking sector. The
study aimed at providing an overview of E-banking adoption in Malaysia. Out of 53.9 per
cent, who used e-banking, 85 per cent used it for savings bank facility, 55.8 per cent for
current account facility, 37 per cent for bill payment, 35.3 per cent for visa /master card
and 30.8 per cent used for third party transfer. The researchers analyzed websites of the
banks in order to know the impact of e-banking.
Heng Michael et al. (2006) analyzed the impact of e-banking on brick and mortar banks
through innovation model. The researchers’ analyzed 8 core capabilities to assist the banks
migrated to e-banking environment. Their capabilities fall into two groups relating to
configuration of existing business model. They suggested that banks need to develop
uniquely innovative services and products on the one hand and innovative business model
that changes the way banks operate on the other.
Manoharan (2007) highlighted the e-payment system in India and its performance impact
on Indian banking sector. The author descrinternet bankinged that competition in banking
industry had forced the banks to rethink the way they operate their business. So, e-banking
has made it possinternet bankingle to find alternate banking practices. In the paper, the
author divided the payment system in India into three parts, i.e., large value payment
system, retail payment system, and retail electronic system. Each one includes different
categories of e-payment.
Kautish (2008) descrinternet bankinged the paradigm shift of banking sector from
traditional banking to online banking. The objective of the paper was to discuss the
derivation of value added tool of online banking system which was used to attract new
customers and retain the existing ones. It helped the banks to acquire more business from
existing customers. People preferred to use online banking because of its availability, better
performance, ubiquity, speed and its effectiveness.
 CHAPTER-3
RESEARCH METHODOLOGY

OBJECTIVES
The overall objective of present study is to analysis the customer's acceptance of Internet
Banking & their perception towards this according to their residing area. The specific objectives
of the study are enunciated below:
 To analysis the perceive usefulness of internet banking.
 To measure the level of awareness among customers have.
 To check the perception of risks associates with internet banking.
 To examined the reach of internet banking.

NEED OF THE STUDY

Today Internet being one of the needs of life .Since the area of economic reforms, banking sector
has been witnessing numerous changes. The nationalized bank and new private sector banks
have introduced number of innovative products and services. And due to technological
Advancement the services provided by bank are increasing day by day and it provides more
comforts, privacy, wealth and safety to the individual. These services are adopted by all the
banks. A large number of studies have been conducted in banking sector but these studies have
covered almost all the services offered by bank. So the present study is an attempt to analyze the
user perception for internet banking

Research is:
Research in common refers to a search for knowledge. We can also define research as a scientific
and systematic search for pertinent information on a specific topic.
D.Slesinger and M.Stephenson define research as the 'manipulation of things, concepts or
symbols for the purpose of generalizing to extend, Correct or verify knowledge, whether that the
practice of an art".
Research methodology is:
Research methodology is a way to systematically solve the research Problem. The steps adopted
by the researcher to solve the research problem.

Research process is:

Research process consists of series of actions or steps necessary to effectively carry out research.
The various steps, which provide useful guidelines regarding research Process for the preparation
of the report.
 Formulating research problem;
 Extensive literature survey;
 Determining sample design;
 Collecting the data;
 Execution of the project;
 Analysis of the data;
 Interpretation and suggestions;
 & Conclusions

Nature of study
The study was totally a fact-finding study. The main aim of this is to find out the customers
perception towards internet banking, what are the reasons that they uses it & if not uses than why
& their reasons for this , reach of internet banking and its benefits to customers..

Sample design
A sample design is definite plan determined before data was actually collected for obtaining a
sample from given population in this study convenience sampling is used.

Sample size
The sample size taken for survey includes 100 respondents. The sample Takes into
consideration/constitutes the Professors & students in the organization.
Collecting the data
In dealing with any problem it is often found that data at hand are inadequate and therefore it
becomes necessary to collect data that are appropriate. These are several ways of collecting the
appropriate data, which defer considerably. In context of time and other resources. Here for the
purpose of study two kinds of data has been used. The
 Primary data &
 Secondary data

Primary data
The Primary data are those, which are collected afresh for the first Time, and thus happens to be
original in character. With reference to this study, data is collected through
 Questionnaire &
 Interview method

Questionnaire Method
Data is gathered by distrinternet bankinguting questionnaire among the Professors & students.
Questionnaire is prepared and pre tested before using it for data collection.
Questionnaire is a structured one consisting of questions, which are close ended having fixed
response pattern with multiple Answers & open ended pattern to know the actual views of
respondents.

Interview method
The study also includes obtaining information from knowledgeable persons. This interview is an
informal or unstructured One with competent and articulate individuals, programmers and
professionals of the organization.

Secondary data
The secondary data are those that are already available, i.e. they Refer to the data, which have
already been collected and analyzed by someone else. Secondary data is gathered from the
different websites.
 CHAPTER-4

DATA ANALYSIS & INTERPRETATION

Data analysis and interpretation is done with the help of graphs.

1. Do you have an Internet Bank Account?

Particulars No. of respondents %age

Yes 30 30%
No 70 70%
Total 100 100%

80%

70%

60%

50%

40%

30%

20%

10%

0%
yes no

Interpretation:

The above bar graph shows that 30% of the respondents say yes they do use internet banking and
70% of the respondents say don’t use internet banking.
The Questions based on the respondents who don’t have internet bank account.

2. What are the main reasons that you have not opened an Internet Bank
Account?

Particulars No. of respondents %age

Never heard of internet banking 40 40%
Concerned about security 0 0%
Haven’t taken time open an account 34 33.33%
Don’t seen any real value in having this 26 26.67%
type of a/c
Not available through my bank 0 0%
Others 0 0%
Not applicable 0 0%
Total 100 100%

Interpretation:

The above bar graph shows 40% of the respondents say that they never heard about internet
banking, 33.33 of the respondents say that they don’t have time to open an account, 26.67% of
the respondents say that don’t see any real value of having such account
3. How likely is it that you will open an internet banking a/c within the next 12
months?

Particulars No. of respondents %age

Very unlikely 0 0%
Somewhat unlike 0 0%
Neither unlikely not likely 0 0%
Somewhat likely 34 34%
Very likely 66 66%
Not applicable 0 0%
Total 100 100%

80%

70%

60%

50%

40%

30%

20%

10%

0%
’s

’s
th

ar
th

th

ye
on

on

on
m

1
m

n
1

ha
6

12
an

et
to
th

to

or
1
ss

M
Le

Interpretation:

The above bar graph shows that 66.67% of the respondent’s replies that very likely they would
like to open on account within next 12 month, 33.33 of the respondent’s replies that somewhat
likely they would like to open an account within next 12 months.

4. How long have you been using the internet banking?

Particulars No. of respondents %age

 Less than 1 month 0 0%
1 to 6 month’s 0 0%
6 to 12 month’s 20 20%
More than 1 year 80 80%
Total 100 100%

80%

70%

60%

50%

40%

30%

20%

10%

0%
Less than 1 month 1 to 6 month’s 6 to 12 month’s Morethan 1 year

Interpretation:

The above bar graph shows that 80% of the respondents reply that they used I-Banking form last
one year and 20% of the respondents reply that they used I-Banking from last 6 to 12 months.
5. Have you preformed any of the following activities on-line?

Particulars No. of respondents %age

Tax-filling 23 23.54%
On-line bill payments 71 70%
Purchase/ sold financial product 65 65%
Check-balance online 25 24.36%
Inter-account transfers 63 63.25%
Neither of these 0 0%
Total 100 100%

Interpretation:
The above bar graph shows that 23.54% of the respondents reply that they use internet banking
for tax filing, 70% of the respondents reply that they use internet banking for on-line bill
payments, 65% of the respondents reply that they use internet banking for the purchasing of
financial products, 24.36% of the respondents reply that they use internet banking for checking
their balances and 63.25% of the respondents reply that they use internet banking form inter-
account transfers.

6. How frequently do you use telephone banking services per month?

Particulars No. of respondents %age

 Less than 1 40 40%
1 to 3 times 45 45%
3 to 8 times 10 10%
8 to 12 times 5 5%
Over 12 times 0 0%
Total 100 100%

Interpretation:

The above graph shows that 40% of the respondents say that they use telephone banking only
once a month, 45% of the respondents reply that they use telephone banking for 1 to 3 times in a
month, 10% of the respondents say that they use telephone banking for 3 to 8 times in a month
and 5% of the respondents reply that they use telephone banking for 8 to 12 times in a month.
7. Do you consider that INTERNET BANKING is safe & secure for your transactions?

Particulars No. of respondents %age

Yes 80 80%
No 20 20%
Total 100 100%

90%

80%

70%

60%

50%

40%

30%

20%

10%

0%
yes no

Interpretation:

The above bar graph shows that 80% respondents consider internet banking is safe & secure for
their financial transactions, 20% respondents consider risk factor is always exit while they using
internet banking.
8. Do you feel any kind of problem while using internet banking?

Particulars No. of respondents %age

Yes 15 15%
No 75 75%
Total 100 100%

17%

Yes
No

83%

Interpretation:

The above pie chart shows that 15% of the respondents agreed that they face few problems while
using internet banking and 75% of the respondents agreed that it is simple & easy to operate &
they don’t face any problems while using internet banking.
9. Is there is any need to give information about internet banking services in your
area?

Particulars No. of respondents %age

Yes 45 45%
No 55 55%
Total 100 100%

45%
Yes
No
55%

Interpretation:

The above pie chart shows that 45% of the respondents say that there is need to give information
about internet banking services in their area and 55% of the respondents refuse to give any kind
of information in their area.
10. Do you agree that internet banking makes your life more comfortable?

Particulars No. of respondents %age

Yes 100 100%
No 0 0%
Total 100 100%

Yes
No

100%

Interpretation:

The above pie chart shows that 100% of the respondents agree with this that internet banking
make their life more easy & comfortable
11. Are you willing to provide credit card & purchase information over the internet
when this information is encrypted?

Particulars No. of respondents %age

Yes 40 40%
No 60 60%
Total 100 100%

40%

Yes
No
60%

Interpretation:

The above pie chart shows that 40% of the respondents agree to provide credit card & purchase
information over the internet when this information is encrypted and 60% of the respondents
refuse to give credit card & purchase information over the internet when this information is
encrypted.
12. Are you willing to provide credit card information and personal information over
the internet to a Web vendor who is well known and reliable?

Particulars No. of respondents %age

Yes 67 67%
No 33 33%
Total 100 100%

33%

Yes
No

67%

Interpretation:

The above pie chart shows that 67.45% respondents agreed to provide credit card information
and personal information over the internet to a Web vendor who is well known and reliable and
32.55 of refuse to provide credit card information and personal information over the internet to a
Web vendor who is well known and reliable.
13. What is the name of bank you have an internet banking a/c with?

Particulars No. of respondents %age

State Bank of Patiala 50 50%
State Bank of India 20 20%
HDFC Bank 20 20%
Axis Bank 10 10%
Total 100 100%

60%

50%

40%

30%

20%

10%

0%
State Bank of Patiala State Bank of India HDFC bank Axis Bank

Interpretation:
The above bar graph The 50% of respondents have and Internet Bank account in State Bank of
Patiala, 20% of respondents have an internet banking account in State Bank of India 20% of
respondents have account in HDFC bank & 10% of respondents have an internet bank account in
Axis Bank.
14. In addition to your Internet bank account, do you also have a traditional bank
account?

Particulars No. of respondents %age

Yes 100 100%
No 0 0%
Total 100 100%

100%

90%

80%

70%

60%

50%

40%

30%

20%

10%

0%
yes no

Interpretation:
Every respondent uses traditional bank account with Internet bank account.
15. What is the most important reason you opened an internet banking a/c?

Particulars No. of respondents %age

Convenience 52 52%
Time save 23 23%
Safety 20 20%
Interest 5 5%
Total 100 100

Interpretation:
The above graph shows that 52% of respondents replied that they opened & uses internet
banking Account for the convenience, 23% of respondents replied that they use it for easiness of
their transaction & time saving, 20% of respondents answered that they use it for safety purposes
and 5% of respondents replied that they use internet banking for the Interest.
16. Do you consider any kind of risk by using internet banking services as compare to
traditional banking?

Particulars No. of respondents %age

Feel no risk 65 65%
Feel risk 35 35%
Total 100 100%

35%

Feel no risk
Feel risk

65%

Interpretation:
The above bar graph shows that 65% of the respondents don’t feel any kind of risk by using
internet banking services as compare to traditional banking and 35% of respondents feel risk like
fraud in their transactions, manipulation of their account, etc.
 CHAPTER-5
FINDINGS, SUGGESTION AND CONCLUSION

FINDINGS:

 30% of the respondents say yes they do use internet banking and 70% of the respondents
say don’t use internet banking.
 40% of the respondents say that they never heard about internet banking, 33.33 of the
respondents say that they don’t have time to open an account, 26.67% of the respondents
say that don’t see any real value of having such account
 66.67% of the respondent’s replies that very likely they would like to open on account
within next 12 month, 33.33 of the respondent’s replies that somewhat likely they would
like to open an account within next 12 months.
 80% of the respondents reply that they used I-Banking form last one year and 20% of the
respondents reply that they used I-Banking from last 6 to 12 months.
 23.54% of the respondents reply that they use internet banking for tax filing, 70% of the
respondents reply that they use internet banking for on-line bill payments, 65% of the
respondents reply that they use internet banking for the purchasing of financial products,
24.36% of the respondents reply that they use internet banking for checking their
balances and 63.25% of the respondents reply that they use internet banking form inter-
account transfers.
 40% of the respondents say that they use telephone banking only once a month, 45% of
the respondents reply that they use telephone banking for 1 to 3 times in a month, 10% of
the respondents say that they use telephone banking for 3 to 8 times in a month and 5% of
the respondents reply that they use telephone banking for 8 to 12 times in a month.
 80% respondents consider internet banking is safe & secure for their financial
transactions, 20% respondents consider risk factor is always exit while they using internet
banking.
 15% of the respondents agreed that they face few problems while using internet banking
and 75% of the respondents agreed that it is simple & easy to operate & they don’t face
any problems while using internet banking.
 45% of the respondents say that there is need to give information about internet banking
services in their area and 55% of the respondents refuse to give any kind of information
in their area.
 100% of the respondents agree with this that internet banking make their life more easy
& comfortable
 40% of the respondents agree to provide credit card & purchase information over the
internet when this information is encrypted and 60% of the respondents refuse to give
credit card & purchase information over the internet when this information is encrypted.
 67.45% respondents agreed to provide credit card information and personal information
over the internet to a Web vendor who is well known and reliable and 32.55 of refuse to
provide credit card information and personal information over the internet to a Web
vendor who is well known and reliable.
 50% of respondents have and Internet Bank account in State Bank of Patiala, 20% of
respondents have an internet banking account in State Bank of India 20% of respondents
have account in HDFC bank & 10% of respondents have an internet bank account in Axis
Bank.
 Every respondent uses traditional bank account with Internet bank account.
 52% of respondents replied that they opened & uses internet banking Account for the
convenience, 23% of respondents replied that they use it for easiness of their transaction
& time saving, 20% of respondents answered that they use it for safety purposes and 5%
of respondents replied that they use internet banking for the Interest.
 65% of the respondents don’t feel any kind of risk by using internet banking services as
compare to traditional banking and 35% of respondents feel risk like fraud in their
transactions, manipulation of their account, etc.
SUGGESTIONS

This study confirmed that one way to shift people from non-users segment to users segment can
be educating them about the services provided & benefits of using these services.

If banks arrange workshops in Financial Institutions & other places, where knowledge & training
will be given to use Internet Banking & about it benefits & also opens Internet Bank Accounts at
same time. This will act as boon for Banks.

By making Internet Banking operations more easily, the Banks can enhance the level of users &
also gives more satisfaction to existing ones because they also faces few problems while using
Internet Banking.

The security for their funds is the main factor that people fear to open an Internet Bank Account,
by giving them assurance that their funds are secure if they start uses Internet Banking. The
Banks can increase their customer's percentage.

The Government can also play an important role in the promotion of Internet Banking by making
strict rules & regulations in case of any fraud arise. 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 can attach with technology & its upcoming features & benefits from new technology
can play good role in the promotion of Internet Banking. Because this is well proved fact that
people show their interest in which activities, they uses those at their best level as compare to if
one pumping them to do.

The instructions to use Internet Banking services should be made available in different languages
so that it will be more convenient for the customers to use Internet Banking services.
CONCLUSION

When investigating all the variables and the response by consumers, this study reveals that the
perception of the consumers can be changed by awareness program, friendly usage, fewer
charges, proper security, and the best response to the services offered. The study also provides
the kind of correlation between different factors.
In case of the consumers who don't 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 individual's behaviour or in our region only environment that
surrounds the public determines the behaviour and decisions of the individuals. So if consumer
sees most of their colleagues or friends who surround him/her using Internet banking then it may
influence his/her decision to follow Internet banking option.
 LIMITATIONS

The result of this study shows that Perceived ease of usefulness, reach of Internet Banking, risks
associated with this and customers attitude are the important determinants of online banking
adoption. This study meets the desired objective; but it suffers from one setback. The relatively
small size of the sample limits generalization of the outcome of the study. This study was
conducted to explore the factors influencing intentions to adopt internet banking services. As
such, there is still room for further investigation into the adoption of internet banking services.

The replication of this study on a wider scale with more internet banking customers and with
different national cultures is essential for the further generalization of the findings.

The time limit is also can important factor which act as barrier in the whole research process.
The shortage of time period forces to do research on small size of sample.

The mostly respondents are not using Internet Banking, so fairly 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 are using Internet Banking.

The research is conducted only at one financial institution in Patiala region only. So further
investigation is does by taking into account more financial institutions & other institutions from
different regions of Punjab or India as whole.
 Annexure-I
REFERENCES

[1] Agarwal, R, Rastogi, S &Mehrotra, A.,"Customers 'perspectives regarding e-banking inan

emerging economy," Journal of Retailing and Consumer Services, vol. 16, pp. 340-351,2009.

[2] Aladwani, A., "Online Banking: A Field Study of Drivers, Development Challenges, and
Expectations," International Journal of Information Management, vol. 21, pp. 213-225, 2001.

[3] Aldas-Manzano, J, Lassala-Navarre, C, Ruiz-Mafe, C &Sanz-Blas, S., "The role ofconsumer

innovativeness and perceived risk in online banking usage," International Journalof Bank
Marketing, vol. 27, no. 1, pp. 53-75, 2009.

[4] Al-Hajri, S &Tatnall, A., "Technological Innovation and the Adoption of InternetBanking in
Oman," The Electronic Journal for Virtual Organizations and Networks, vol. 10,pp. 59-83, 2008.

[5] BomilSuh&Ingoo Hun; "Effect of Trust on Customer Acceptance of

InternetBanking"graduate school of management 'Korea Advanced Institute Of Science
&Technology, 207-43 cheongryangri-Dong;Dongdaemum-Gu, Seoul 130-012, South Korea.

[6] Alsajjan, B & Dennis, C., "Internet Banking Acceptance Model: Cross-
MarketExamination,"Journal of Business Research. 2009.

[7] Al-Somali, S, Gholami, R & Clegg, B., "An Investigation into the Acceptance of
OnlineBanking in Saudi Arabia," Technovation, vol. 29, pp. 130-141. 2009.

[8] Amin, H., "Internet Banking Adoption among Young Intellectuals," Journal of
InternetBanking and Commerce, vol. 12, no. 3. 2007.

i
[9] Chau, P & Lai, V., "An Empirical Investigation of the Determinants of User Acceptance of
Internet Banking," Journal of Organizational Computing and Electronic Commerce, vol. 13, no.
2, pp. 123-145, 2003.

[10]RahmathSafeena; Hema Date & Abdullah Kammani; "Internet Banking adoption in an

Emerging Economy," International Arab Journal of E-Technology, volume2; no.1, j January
2011.

[1 l]Rajesh Kumar Srivastava; "Customer's Perception on Usage of Internet Banking" innovative

Marketing, volume3; issue4, 2007.

[12]Dr.A VinayaGamoorthy & K.Senthilumar,"Role of reach of Internet Banking in

India"Journal of Business Research.2008.

[13] https://www.Indianbanks.net.in Ijsp/startinternet banking.jsp

[14] https://en.wikipedia.org/wiki/online banking

[15] http ://www. encrypt. standardbank. co. za/

[16] https ://www. banknetind i a. com/banking/bknaintro .htm

[17] https//www.hsbc.co.in/

ii
 Annexure-II

QUESTIONNARIE ON CUSTOMER SATISFACTION TOWARDS INTERNET

BANKING

Name of respondent _______________________

Address _________________________________
Area (Urban/Rural)________________________
Phone No.________________________________

This survey is designed to understand Internet user’s perspective on Internet banking,

their experience with Internet banking, and their expectations on Internet banking services
in urban & rural areas. Your participation in this survey is greatly appreciated

1. Do you have an Internet Bank Account?

Yes  No.
These questions (2nd to 3rd) for the respondent answered “No” to having an Internet Bank
Account

2. What are the main reasons that you have not opened an Internet Bank Account?
(Check all that apply)
Never head of INTERNET BANKING  Concerned about security 
Haven’t taken time open an account 
Don’t see any real value on having this type of a/c  Others 
Not available through my Bank  Not Applicable 
3. How likely is it that you will open an INTERNET BANKING a/c within the next 12
Months?
Very unlikely  Somewhat unlike 
Neither Unlikely or likely  Somewhat likely 
Very likely  Not applicable

iii
4. What is the name of bank you have an INTERNET BANKING a/c with?
…………………………………………………………………………
5. How long have you using the INTERNET BANKING?

Less than 1 month  1 to 6 month’s 

6 to 12 month’s  More than 1 year 
6. Have you performed any of the following activities on line? (plz check all you are
currently using )

Tax- filling  On- line bill payments 

Purchased/sold financial product  Check- balance online 
Inter- account transfers Neither of these 

7. How frequently do you use telephone banking services per month?

Less than1  1 to 3 times 

3 to 8 times  8 to 12 times 

Over 12 times 

8. What is the most important reasons you opened an INTERNET BANKING a/c?

a. ……………………………………………….
b. ……………………………………………….
c. ……………………………………………….

9. Do you consider that INTERNET BANKING is safe & secure for your transactions?

Yes  No. 

10. Do you feel any kind of problem while using INTERNET BANKING?

iv
 Yes  No. 
11. Are you whiling to provide credit card information and personal information over the
Internet to a Web vendor who is well known and reliable?

Yes  No. 
12. Is there is any need to give information about INTERNET BANKING services in your
area?

Yes  No. 
13. Do you agree that INTERNET BANKING makes your life more comfortable?

Yes  No. 

14. Are you willing to provide credit card & purchase information over the Internet when
this information is encrypted?

Yes  No. 

15. Do you consider any kind of risk by using INTERNET BANKING SERVICES AS
compare to traditional
…………………………………………………………………………

THANKS YOU