UNIVERSITY OF MUMBAI

PROJECT REPORT ON

“STUDY ON INNOVATIVE SERVICES PERFORMED BY BANKS AND

ITS IMPACT ON CUSTOMERS”

T.Y.B.B.I (SEMESTER VI)

ACADEMIC YEAR: 2019-2020

SUBMITTED BY:
AASHMA KHIALANI

THIRD YEAR BACHELOR OF BANKING AND INSURANCE

ROLL NO- 32

PROJECT GUIDE:

PROF.RAHUL MISHRA

H.R. COLLEGE OF COMMERCE AND ECONOMICS VIDYASAGAR

PRINCIPAL K.M. KUNDNANI CHOWK 123, D.W. ROAD,

CHURCHGATE, MUMBAI – 400 020, 2018-2019

 PROJECT REPORT ON

“STUDY ON INNOVATIVE SERVICES PERFORMED BY BANKS AND

ITS IMPACT ON CUSTOMERS”

SUBMITTED

IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE AWARD

OF DEGREE THIRD YEAR BACHELOR OF BANKING AND INSURANCE

BY

Name: AASHMA KHIALANI KAMAL

NO: 32

T.Y.B.B.I (SEMESTER VI)

H.R. COLLEGE OF COMMERCE AND

ECONOMICS VIDYASAGAR PRINCIPAL K.M.

KUNDNANI CHOWK 123, D.W. ROAD,

CHURCHGATE, MUMBAI – 400 020.

 CERTIFICATE

This is to certify that Miss Aashma Khialani student of H.R. College of Commerce & Economics
studying in T.Y.B.B.I (Semester VI), has successfully completed her project report on “A Study
on Innovative Services Performed by banks& its Impact on Customers” in the academic year
“2019-2020”. The information submitted is true and original to the best of the knowledge.

___________________________ ____________________________

(Signature of Project Guide) (Signature of Principal)

_____________________________ ____________________________

(Signature of Internal Examiner) (Signature of External Examiner)

 ACKNOWLEDGEMENT

I take this opportunity to thank the University of Mumbai for giving me chance to do this
project.

I acknowledge the value assistance provided by H.R. College of Commerce &

Economics, for three-year degree course in B.B.I

I specially thank the Principal PROF. PARAG THAKKAR, the

Co-ordinator of B.B.I and my project guide Prof RAHUL MISHRA for guiding me in the

right direction to prepare the project and giving their valuable time, knowledge

and guidance to complete the project successfully.

I would like to thank my College Library, for having provided various reference books and
magazines related to my project.

My family and friends were a great source of inspiration throughout my project,

their support is deeply acknowledged.

 DECLARATION

I, Miss Aashma Khialani the student of H.R. College of Commerce & Economics,
studying in T.Y.B.B.I Semester VI), hereby declare that I have completed the
project report on “A study of overall innovative services performed by banks and its impact on
customers” in the academic year
2019-2020.

The information submitted is genuine and practical to the best of my knowledge.

Date: March 2019

Place: H.R. College, Mumbai

NAME: Aashma Khialani

ROLL NO:32
 TABLE OF CONTENTS
SR. PARTICULARS PG.
NO. NO.
1 8
EXECUTIVE SUMMARY
2 10
INTRODUCTION TO THE RESEARCH
3 12
STATEMENT OF THE PROBLEM
4 13
HYPOTHESIS OF THE STUDY
5 14
OBJECTIVES OF THE STUDY
6 15
LIMITATIONS OF THE STUDY
7 16
SCOPE OF THE STUDY
8 17
RESEARCH METHODOLOGY
9 21
LITERATURE REVIEW
10 27
SECONDARY RESEARCH
(A) CHAPTER:1 Introduction to banks 27

(B) CHAPTER 2: Types of banks 32

(C) CHAPTER 3: What are innovations and why are they important for 36
banking sector.
(D) CHAPTER 4: Types of innovative services . 38

(E) CHAPTER 5: A Differentiation between traditional and modern 45

services

(F) CHAPTER 6: Reasons for growth of innovations. 47

(G) CHAPTER 7: Challenges or risks associated with the innovations 52

(H) CHAPTER 8: Recent developments of the banking sector 55

(I) CHAPTER 9: Government initiative regarding promotion of the 58

innovative services
(J) CHAPTER 10: Impact on the customers with the introduction of modern 67
services.

11 PRIMARY RESEARCH 70

12 CONCLUSION 88

13 BIBLIOGRAPHY 90

14 ANNEXURE 91
 EXECUTIVE SUMMARY

Technology proliferation have made banking customers live in a connected world with increased
expectations from their financial services provider. The developing customer-bank relationship
has necessitated banks to be more customer-centric by taking an innovative approach towards
banking with the objective of creating more value for customers and themselves. The banks may
not be traditional and conservative anymore, they require innovation in bank products in order to
retain and appeal to customers. Banks need to leverage technology to provide simple, easy-to-use,
convenient, and cost-effective products and services to customers and improve the productivity of
their employees. The objective of this paper is to present the innovative bank products and
services which are required in the present technological environment keeping in mind the
requirements of the present and future banking customers. The paper identifies new bank
products like mobile banking apps, new methods of client verification, cardless payment, digital
payments, and use of data, AI and analytics to improve operations. For this purpose, an extensive
research on the leading banking product trends from secondary sources was carried out.
Development of sophisticated products using low cost and robust technology is the key. This calls
for in- depth analysis of customer needs, the market and competitor trends. This analysis plays a
very important role in devising new strategies, products and services. The better the banks
understand their customers, the more successful they will be in meeting their needs. The research
concludes that the business requires innovative bank products and structures to respond to
customer requirements and banks need to leverage technology to gain competitive advantage.

Keywords: innovative approach, client verification, digital payments, AI, customer needs
“The relentless speed of digitization and automation, the rise of fintech and regulatory initiatives will

encourage all financial institutions to become more transparent and nurture richer ecosystems of data and

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partners. It will also force them to better foster internal and external collaboration, accelerate
culture change and truly empower their workforce. It will urge them to balance tech investments
for customers and employees and furthermore, create a need for open, cognitive systems which
not only understand, reason and learn, but also interact with people, entities and other systems.”

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 INTRODUCTION TO THE RESEARCH:
India is one of the fastest growing economies in the world after a decade of financial and banking sector
reforms since 1991. Evidence from across the world suggests that a sound and evolved banking system is
required to sustain economic development. India has a better banking system in comparison to other
developing countries. Banking revolution and growth has gone through innumerable twists and turns in the
post-independence era. Today banking plays an important role in the growth and development of Indian
economy. The process of globalisation and liberalisation has strongly influenced the Indian banking sector.
Emergence of new private sector banks and opening up of branches of foreign banks in India after banking
sector reforms have changed the whole scenario of the banking function in recent years. Banks functions
are more customer oriented now and banks innovate to provide new facilities that are more customer
friendly. Indian banks have undergone a paradigm shift in their objectives. 3 of their profits has become
secondary to developing long term relationships with their customers in order to achieve higher market
penetration and also to survive and grow in today’s cut throat competition.

Today, Indian banks are trying to innovate new and better products and services and provide
new ideas and techniques as well as make tailor made products available to the customers.
Retail Banking or personal banking whose professed aim is “Banking at your doorsteps”
helps to give new and better innovative products and services to the customers and thus
helps the banks to improve their financial position. Retail Banking is not a new concept for
the banking industry. It became popular in the western countries nearly two decades back.
Retail banking is also growing in the Indian Commercial Banking sector in recent years.

Retail banking refers to the dealings of a bank with individual customers both on the liabilities side and

on the assets side of the balance sheet. On the liabilities side-fixed, current and savings accounts of
individuals and, on the assets side, various loans such as personal loan, housing loan, car loan,
consumption loan, education loan, marriage loan etc. are the important retail products offered by the
bank. Retail banking also provides various ancillary services such as credit cards, mobile banking,
internet banking, insurance, depository services etc
.
Retail banking segment in the banking industry is continuously undergoing innovations, product
reengineering, adjustment, and alignments. Given the size, advantages, diverse customer base and
scope for future expansion, there is a need for evolving a systematic approach to Retail banking. Most
of the Indian banks are retail banks in their business composition. The term ‘RETAIL BANKING’

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encompasses various financial products like different types of deposit accounts, housing -
consumer-auto and other types of loan accounts, demat facilities, insurance, mutual funds, credit
and debit cards, ATM and other technology-based services, stock broking, payment of utility
bills, reservation of railway tickets etc., and thus catering to diverse banking needs of an
individual. Usually, the commercial banks to offer retail banking facilities. Their products and
services under retail banking are geared primarily towards individual customers. These include a
wide range of personal banking services like offering savings and checking accounts, bill paying
services, as well as debit and credit cards facility. This research paper talks about the overall
"impact of the innovative services performed by banks on its customers."For this,data has been
collected through primary as well as secondary sources to know whether these innovations are
developing the banking system as a whole or it is moving backwards in terms of innovations.

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 STATEMENT OF THE PROBLEM:

The study is selected or restricted to the individuals of Ulhasnagar area only . The respondents

use both traditional as well as the innovative services . Customers do not completely rely on
innovative or e-services.

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 HYPOTHESIS OF THE STUDY:

H0:Innovative services has resulted in increased innovations in banks

H1:innovative services has not resulted in increased innovations in banks.

Ho:Private sector services are performing better than Public sector services

H1:Private sector services are not performing better than public sector services

Ho :Customers are aware of the innovative services introduced by banks

H1:Customers are not much aware of the innovative services.

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 OBJECTIVES OF THE STUDY:

1. To find out whether the existing customers are satisfied with the new services by banking
sector.

2. To analyse the parameter that how these innovations are profitable for the society as well
as banks.

3. To find out which of the services are moving fast in terms of customer satisfaction and
innovations.

4. To find our whether banks are now providing all in one services under one roof.

5. To estimate that what development these services will bring to banks and the overall
economy.

6. To find out whether these services ease out the working of commercial sector.

7. To find out the collaborations of banks with various companies to provide innovations.

8. To bring out the most used services by the customers.

9. To find out what is the role of Government in providing services or promoting the services.

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 SCOPE OF THE STUDY:

This project aims to do a deep research on how the banking sector is introducing new
products and services and its impact on the customers. The area chosen for the research
is Ulhasnagar.

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 LIMITATIONS OF THE STUDY:

1)The survey was conducted with 103 respondents of Ulhasnagar area. So we can't say that
this is the real trends of the banking sector.

2)People are not confident enough to whether rely completely on innovative banking services.
There is hesitancy in their minds with regards to preference.

3)At the time of survey when i gave questions to people, they did not disclose their personal
data truly.

4)The survey was conducted with the help of quantitative and qualitative data analysis

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 RESEARCH METHODOLOGY:

RESEARCH DETAILS:

st
Date on which survey started: 1 January 2020.
th
Date on which survey ended: 28 February 2020.

Population: 103 individuals.

MODES OF DATA USED:

PRIMARY DATA:

Collection of primary data: To collect primary data structured questionnaire were distributed
to students and working professionals through emails, Facebook post and forwarding Google
form across WhatsApp messenger. A sample size of 103 individuals have answered the
survey with adequate and appropriate answers.

TECHNIQUES AND TOOLS USED:

RESEARCH DESIGN:

The research design comprised a method of primary data collection using a survey given to
103

respondents. The design also included secondary data expressed through a review of past
literature in the

concerned area, indicating that a certain segment of the study was exploratory in nature.

The design used descriptive tools such as pie chart and bar graphs to highlight the data analysis.

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RESEARCH INSTRUMENT:
The research tool used was that of a survey comprising 15 questions that
covered different areas of the research problem. The questions were multiple choice in
nature, linear scale open ended and closed ended . It was compulsory for all 103
respondents to answer all the questions. The survey was anonymous but certain
demographic details such as age and occupation were asked for. The questionnaire
made is enclosed in the annexure.

SAMPLE SIZE:
Sample size is the number of respondents who have been surveyed or the number of
people who have filled up the questionnaire.
The sample size of my research project is 103 respondents.

SAMPLING UNIT:
A decision has to be taken concerning a sampling unit before selecting samples.
Sampling unit may be a geographical one such as state, district, village or a construction
unit such as house, flat, etc.
In my research project, the sampling unit consists of respondents who were from
Ulhasnagar and were having bank accounts in their respective banks.

SAMPLING DESIGN:
The study used the technique of Random Sampling for the survey.
This refers to a basic sampling design where a subset of the population is randomly
selected to part of the sample. The sample of this study was limited to 103 respondents.

TABULATION OF DATA:

The data was processed and analysed with the help of percentage using
excel sheet.
The data collected is tabulated and graphical. The present data has been
presented with the help of various chart type-
GRAPHS like Bar-Graphs, Column graphs ,line graphs, etc.
TABLES.
PIE- DIAGRAM.

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 SECONDARY DATA:
Secondary research is the background research done by the researcher on already existing
information regarding topic.
This helps the researcher in determining whether previous research papers have been written
on that particular topic can be covered. It also helps the researcher in building base for the
questions to be asked to the sample population. And to construct an informative questionnaire
and ask all the right questions.
To form secondary data various books, newspaper articles and clipping were read. Journals
and finance blogs, earlier research and study done, former thesis proved were studied

QUANTITATIVE DATA: SURVEYS

This method captures information through the input of responses to a research instrument
containing questions, such as a Questionnaire.

Information can be input either by respondent themselves (example an online survey) or the
researcher can input data (for example, phone survey, a one on one survey, a mall intercept)

The main method for distributing surveys are via a website, postal mail, phone or in person.
However, newer technologies are creating additional delivery options through wireless
devices, such as smart phones and technologies wherein the information gets recorded in real
time and can be viewed and intercepted very easily through pie charts and bar graphs.
Surveys for this project were conducted via a questionnaire which was filled by 103
respondents in the city of Ulhasnagar, India.

QUALITATIVE DATA COLLECTION

Qualitative data collection requires researchers to interpret the information gathered, most
often without the benefit of statistical support. If the researcher is well trained in interpreting
respondents’ comments and activities, this form of research can offer very good information.

However, it may not hold the same level of relevancy as quantitative research due to lack of
scientific controls within the data collection method.

For example, a researcher may want to know more about how customers make purchase
decisions. One way to do this is sit and talk with customers using one on one interview.

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However if the interview process allows the researcher to vary what questions are asked not
all respondents are asked the same question then this type of research may lack controls
needed to follow a scientific approach.

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 LITERATURE REVIEW

ARTICLE:1

St
SBI CUSTOMERS NEED TO BE AWARE OF THESE CHANGES FROM 1
JANUARY,2020.

For SBI account holders, 3 things that change from today

Updated: 01 Jan 2020, 11:01 AM IST

Published by: Sangeeta Ojha

3 things will change for SBI customers from today, 1st January 2020

From , 1st January 2020, few rules are changing for State Bank of India (SBI). So, if
you are an SBI customer, you need to be aware of these changes. In an attempt to
improve customer experience, SBI is making some changes in its services like OTP-based
ATM transactions, up gradation to EMV chip debit card, and reduction in its external
benchmark based rate (EBR) resulting in cheaper home loans. So keep yourself updated.

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1) SBI introduces OTP-based ATM transactions

SBI customers will be able to make ATM withdrawal above ₹10,000 only after an OTP
verification during 8 pm to 8 am from 1st January 2020. The OTP-based withdrawal is
applicable only to withdrawals from SBI ATMs. "With the introduction of its OTP-based
cash withdrawal facility, State Bank ATMs have added another layer of security for cash
withdrawals. OTP will be received on the customer's mobile number registered with the
bank," SBI said. As per this process, once the cardholder enters the withdrawal amount, the
ATM screen displays the OTP fields. The customer has to then enter the OTP received on the
mobile number registered with the bank for getting the cash.

2) New EMV chip-based cards

SBI's magnetic stripes ATM-cum-debit cards will get invalid from today, 1st January 2020.
The bank had asked its customers to update their magnetic stripes ATM-cum-debit cards to
the ones with EMV chip before 31 December 2019. “Apply now to change your Magnetic
Stripe Debit Cards to the more secure EMV Chip and PIN-based SBI Debit card at your home
branch by 31st December 2019. Safeguard yourself with guaranteed authenticity, greater
security for online payments and added security against fraud," SBI had tweeted.

3) SBI home loans to get cheaper

SBI announced a reduction in its external benchmark based rate (EBR) by 25 basis points to
7.80% per annum, from 8.05% per annum. The revision will come into effect from today.
With this reduction, interest rate for existing home loan customers as well as MSME
borrowers who have availed loans linked to external benchmark based rate would come down
by 25 basis points. SBI said new home buyers will get loans at an interest rate starting from
7.90% per annum, as compared to 8.15% earlier.

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Article:2
OFFER CONTACTLESS PAYMENTS ONLY IF
OPTED FOR:RBI TO BANKS
By: FE Bureau

Published: January 16, 2020 4:30:10 AM

At the time of issue or reissue, all physical and virtual cards shall be enabled for use
only at contact-based points of usage, that is, ATMs and point of sale (PoS) devices
within India.

RBI, PoS devices, mobile applications, internet banking, international transactions,

contactless transactions

In a notification on its website, the central bank said the directive is aimed at improving user
convenience and increasing the security of card transactions.

The Reserve Bank of India (RBI) on Wednesday directed banks to offer the facility to carry
out contactless card transactions only to those users who specifically choose to avail it. In a

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notification on its website, the central bank said the directive is aimed at improving user
convenience and increasing the security of card transactions.

At the time of issue or reissue, all physical and virtual cards shall be enabled for use only at
contact-based points of usage, that is, ATMs and point of sale (PoS) devices within India.
Issuers shall provide cardholders a facility for enabling card-not-present domestic and
international transactions, card-present international transactions and contactless transactions,
as per a process detailed by the RBI.

The banks must provide to all cardholders a facility to switch on or off, set and modify
transaction limits within the overall card limit for all types of transactions. This facility must
be made available on a 24×7 basis through multiple channels, including mobile applications,
internet banking, ATMs and interactive voice response (IVR). It may also be offered at
branches or offices of the issuer.

Further, the issuer must send alerts to the user through SMS and e-mail, as and when there is
any change in the status of the card. Banks will be entitled to take a call on whether to disable
the additional features for existing cards that allow contactless and card-not-present
transactions as well as international transactions.

“For existing cards, issuers may take a decision, based on their risk perception, whether to
disable the card not present (domestic and international) transactions, card present
(international) transactions and contactless transaction rights. Existing cards which have
never been used for online (card not present)/ international/ contactless transactions shall
be mandatorily disabled for this purpose,” RBI said in the notification.

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Article:3

Cash is king, digital is divine. That’s how the Reserve Bank of India
concluded its latest assessment of the country’s attempts to push
digitisation in an economy dominated by cash.

The quest to reduce this reliance has prompted decisions ranging from demonetisation to
tinkering with fee structures. All these attempts, the RBI acknowledges, have only nibbled
away at India’s love for cash. But nibbled it has,the central bank says citing a few data points.

1) Currency in circulation as a percentage of GDP was at 11.2 percent in 2018-19, lower

than the 12.1 percent in 2015-16.

2) Notes in circulation (CIC minus coins in circulation) increased at an average rate of

14 percent between October 2014 and October 2016. The same rate of growth would
have taken notes in circulation to Rs 26.04 lakh crore. The actual level of notes in
circulation was about Rs 3.5 lakh crore lower.

3) While India’s CIC levels reduced in 2018 as compared to 2014, other countries, with
the exception of Argentina, China, Indonesia, Russia, South Africa, Sweden and
Turkey, had increasing cash levels.

But for each data point that may hint at a reduced reliance on cash, there is another which
says that Indians still trust cash the most. The paper notes this as well. Cash withdrawals at
ATMs as a percentage of GDP have remained constant at 17 percent. Cash withdrawals from
ATMs increased over the past 5 years. India is next only to China in terms of the cash
withdrawals from ATMs. Over the last last five years, the demand for high value
denominated currency has outpaced low value denominated currency which may indicate that
cash is increasingly used as a store of value and less for making payments.

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Digital Payments Gain Traction :

Still, the RBI is hopeful that digital payments will continue to gather pace as infrastructure
builds out and financial literacy improves. Data suggests that dig Still, the RBI is hopeful that
digital payments will continue to gather pace as infrastructure builds out and financial
literacy improves. Data suggests that digital payment adoption is growing at a rapid pace,
albeit on a smaller base. “Overall, the digital payments in the country have witnessed a
compounded annual growth rate of 61 percent and 19 percent in terms of volume and value,
respectively respectively over the past 5 years, demonstrating a steep shift towards digital
payments,” the RBI said.

The use of digital payments channels like NEFT, Unified Payments Interface, IMPS and other
platforms has grown at a CAGR of 42 percent in terms of transaction value over the last 5 years.

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Debit and credit card payments registered a CAGR of 40 percent in terms of value during the
same period. 40 percent in terms of value during the same period. Digital cash, or cash stored
in wallets, has seen a CAGR increase of 78 percent in terms of value, during the last 5 years.
“The value of digital payments to GDP increased from 660 percent in 2014-15 to 862 percent
in 2018-19, making the shift to digital payments in India clearly perceptible,” the RBI.

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 SECONDARY RESEARCH

CHAPTER:ONE
Introduction to banks

A bank is a financial institution licensed to receive deposits and make loans. Banks may also
provide financial services such as wealth management, currency exchange, and safe deposit
boxes. There are several different kinds of banks including retail banks, commercial or
corporate banks, and investment banks. In most countries, banks are regulated by the national
government or central bank.

KEY TAKEAWAYS:

 A bank is a financial institution licensed to receive deposits and make loans.

 There are several types of banks including retail, commercial, and investment banks.

 In most countries, banks are regulated by the national government or the national banks.

Banks are a very important part of the economy because they provide vital services for both
consumers and businesses. As financial services providers, they give you a safe place to store
your cash. Through a variety of account types such as checking and savings accounts, and
certificates of deposit (CDs), you can conduct routine banking transactions like deposits,
withdrawals, check writing, and bill payments. You can also save your money and earn
interest on your investment.

Banks also provide credit opportunities for people and corporations. The money you deposit
at the bank—short-term cash—is used to lend to others for long-term debt such as car loans,
credit cards, mortgages, and other debt vehicles. This process helps create liquidity in the
market—which creates money and keeps the supply going.

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Just like any other business, the goal of a bank is to earn a profit for its owners. For most
banks, the owners are their shareholders. Banks do this by charging more interest on the loans
and other debt they issue to borrowers than what they pay to people who use their savings
vehicles. Using a simple example, a bank that pays 1% interest on savings accounts and
charges 6% interest for loans earns a profit of 5% for its owners.

Banks make a profit by charging more interest to borrowers than they pay on savings
accounts. Banks range in size based on where they're located and who they serve—from
small, community-based institutions to large commercial banks.

Origination of banks:

The term bank has originated from the term ‘Banchi’. In olden days, the traders of Italy who
performed the job of exchanging money were known as Banchi or Bancheri because the table
which they used for making payment was called a Banchi. According to some people, the
term bank is derived from the greek word ‘banque’

A bank deals in money in the same way as a businessman deals in goods. Banks are business
enterprises which deal in money, financial instruments and provide financial services for a
price called interest, discount, commission etc.

Following are cited some prominent definitions of bank:

(1) “Banking is the business of accepting for the purpose of lending or investment, of
deposits of money from the public repayable on demand or otherwise and withdraw-able
by cheque, draft, and order or otherwise.” Indian Banking Regulation Act, 1949

(2) “A bank is an organisation whose principal operations are concerned with the
accumulation of the temporarily idle money of the general public for the purpose of
advancing to others for expenditure.”-R.P. Kent

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Modern banking in India originated in the last decade of the 18th century. Among the
first banks were the Bank of Hindustan, which was established in 1770 and liquidated
in 1829–32; and the General Bank of India, established in 1786 but failed in 1791.

The largest and the oldest bank which is still in existence is the State Bank of India (S.B.I). It
originated and started working as the Bank of Calcutta in mid-June 1806. In 1809, it was
renamed as the Bank of Bengal. This was one of the three banks founded by a presidency
government, the other two were the Bank of Bombay in 1840 and the Bank of Madras in
1843. The three banks were merged in 1921 to form the Imperial Bank of India, which upon
India's independence, became the State Bank of India in 1955. For many years the presidency
banks had acted as quasi-central banks, as did their successors, until the Reserve Bank of
India was established in 1935, under the Reserve Bank of India Act, 1934.

In 1960, the State Banks of India was given control of eight state-associated banks under the
State Bank of India (Subsidiary Banks) Act, 1959. These are now called its associate banks.
In 1969 the Indian government nationalised 14 major private banks; one of the big banks was
Bank of India. In 1980, 6 more private banks were nationalised. These nationalised banks are
the majority of lenders in the Indian economy. They dominate the banking sector because of
their large size and widespread networks.

The Indian banking sector is broadly classified into scheduled and non-scheduled banks. The
scheduled banks are those included under the 2nd Schedule of the Reserve Bank of India Act,
1934. The scheduled banks are further classified into: nationalised banks; State Bank of India
and its associates; Regional Rural Banks (RRBs); foreign banks; and other Indian private
sector banks.The term commercial banks refers to both scheduled and non-scheduled
commercial banks regulated under the Banking Regulation Act, 1949.

Generally the supply, product range and reach of banking in India is fairly mature-even though
reach in rural India and to the poor still remains a challenge. The government has developed
initiatives to address this through the State Bank of India expanding its branch network and

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through the National Bank for Agriculture and Rural Development (NABARD) with facilities
like microfinance.

Thereafter, the Government of India issued the Banking Companies (Acquisition and
Transfer of Undertakings) Ordinance, 1969 and nationalized the 14 largest commercial banks
with effect from the midnight of 19 July 1969. These banks contained 85 percent of bank
deposits in the country. Within two weeks of the issue of the ordinance, the Parliament passed
the Banking Companies (Acquisition and Transfer of Undertaking) Bill,and it received
presidential approval on 9 August 1969.

The following banks were nationalized in 1969:

Allahabad Bank

Bank of Baroda

Bank of India

Bank of Maharashtra

Central Bank of India

Canara Bank

Dena Bank (Now Bank of Baroda)

Indian Bank

Indian Overseas Bank

Punjab National Bank

Syndicate Bank, UCO Bank, Union Bank ,United Bank of India etc.

A second round of nationalizations of six 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 round of nationalizations, the Government of India controlled around 91% of the
banking business of India.The mobile and wireless market has been one of the fastest growing
markets in the world. The arrival of technology and the escalating use of mobile and smart

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phone devices, has given the banking industry a new platform. Connecting a customer
anytime and anywhere to their money and needs is a must have service that has become an
unstoppable necessity. This worldwide communication is leading a new generation of strong
banking relationships. The banking world can achieve superior interactions with their public
base if they accommodate all their customer need.

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 CHAPTER:TWO
Types of banks

Commercial Banks are regulated under the Banking Regulation Act, 1949 and their business
model is designed to make profit. Their primary function is to accept deposits and grant loans
to the general public, corporate and government

Commercial banks can be divided into-

Public Sector Banks
 Private Sector Banks
 Foreign Banks

 Regional Rural Banks

Public Sector Banks:

These are the nationalised banks and account for more than 75 per cent of the total banking
business in the country. Majority of stakes in these banks are held by the government. In terms of
volume, SBI is the largest public sector bank in India and after its merger with its 5 associate
banks (as on 1st April 2017) it has got a position among the top 50 banks of the world.

Some of the examples of public sector banks are as follows:

State Bank of India, Bank of India, UCO Bank, Bank of Baroda, Union Bank of India, United
Bank of India, Vijaya Bank, Dena bank, Central Bank of India

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Private Sector Banks:

These include banks in which major stake or equity is held by private shareholders. All the
banking rules and regulations laid down by the RBI will be applicable on private sector banks
as well. Given below is the list of private-sector banks in India- HDFC Bank

ICICI Bank, Axis Bank, YES Bank, IndusInd Bank, IDBI Bank.

Foreign Banks:

A foreign bank is one that has its headquarters in a foreign country but operates in India as a
private entity. These banks are under the obligation to follow the regulations of its home
country as well as the country in which they are operating. Given below is the list of foreign
banks operating in India –

List of Foreign Banks in India:

Australia and New Zealand Banking Group, Australia Bank, Westpac Banking Corporation
Bank of Bahrain & Kuwait BSCAB Bank Ltd. Sonale Bank Ltd,DBS Bank India Limited.

Regional Rural Banks:

These are also scheduled commercial banks but they are established with the main objective
of providing credit to weaker sections of the society like agricultural labourers, marginal
farmers and small enterprises. They usually operate at regional levels in different states of
India and may have branches in selected urban areas as well. Other important functions
carried out by RRBs include-

Providing banking and financial services to rural and semi-urban areas. Government
operations like disbursement of wages of MGNREGA workers, distribution of pensions, etc.
Para-Banking facilities like debit cards, credit cards and locker facilities

Small Finance Banks

This is a niche banking segment in the country and is aimed to provide financial inclusion to
sections of the society that are not served by other banks. The main customers of small
finance banks include micro industries, small and marginal farmers, unorganized sector
entities and small business units. These are licensed under Section 22 of the Banking
Regulation Act, 1949 and are governed by the provisions of RBI Act, 1934 and FEMA.

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Au Small Finance Bank Ltd. Capital Small Finance Bank Ltd.Fincare Small Finance Bank
Ltd.Equitas Small Finance Bank Ltd,ESAF Small Finance Bank Ltd.Suryoday Small Finance
Bank Ltd.Ujjivan Small Finance Bank Ltd. Utkarsh Small Finance Bank Ltd. North East
Small Finance Bank Ltd. Payments Bank

This is a relatively new model of bank in the Indian Banking industry. It was conceptualised
by the RBI and is allowed to accept a restricted deposit. The amount is currently limited to
Rs. 1 Lakh per customer. They also offer services like ATM cards, debit cards, net-banking
and mobile-banking.

Co-operative banks:

Co-operative banks are registered under the Cooperative Societies Act, 1912 and they are run
by an elected managing committee. These work on no-profit no-loss basis and mainly serve
entrepreneurs, small businesses, industries and self-employment in urban areas. In rural areas,
they mainly finance agriculture-based activities like farming, livestock and hatcheries.

Urban Co-operative Banks, State Co-operative Banks:

Urban Co-operative Banks refer to the primary cooperative banks located in urban and semi-
urban areas. These banks essentially lent to small borrowers and businesses centered around
communities, localities work place groups.

According to the RBI, on 31st March, 2003 there were 2,104 Urban Co-operative Banks of
which 56 were scheduled banks. About 79% of these are located in five states, – Andhra
Pradesh, Gujarat, Karnataka, Maharashtra and Tamil Nadu.

State Co-operative Banks:

A State Cooperative Bank is a federation of the central cooperative bank which acts as
custodian of the cooperative banking structure in the State.

Banks can also be classified on the basis of Scheduled and Non-Scheduled Banks. It is essential
for every individual to check if they are holding their savings or deposit account with a
Scheduled Bank or Non-Scheduled Bank. Scheduled Banks are also covered under the depositor
insurance program of Deposit Insurance and Credit Guarantee Corporation (DICGC), which is
beneficial for all the account holders holding a savings and fixed / recurring deposit account.
Under DICGC, bank deposits of up to Rs 1 lakh, including the fixed, savings, current and
recurring deposits, per depositor per bank in the event of bank failure are insured.

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Scheduled Banks

Scheduled banks are covered under the 2nd Schedule of the Reserve Bank of India Act, 1934.
To qualify as a scheduled bank, the bank should conform to the following conditions:

A bank that has a paid-up capital of Rs. 5 Lakh and above qualifies for the schedule bank
category. A bank requires to satisfy the central bank that its affairs are not carried out in a
way that causes harm to the interest of the depositors.A bank should be a corporation rather
than a sole-proprietorship or partnership firm.

Non-scheduled Banks

Non-scheduled banks refer to the local area banks which are not listed in the Second
Schedule of Reserve Bank of India. Non-Scheduled Banks are also required to maintain the
cash reserve requirement, not with the RBI, but with them.

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 CHAPTER:THREE
What are innovations and why are they important for the banking sector.

Innovation in its modern meaning is "a new idea, creative thoughts, new imaginations in
form of device or method".Innovation is often also viewed as the application of
better solutions that meet new requirements, unarticulated needs, or
existing market needs. Such innovation takes place through the provision of more-
effective products, processes, services, technologies, or business models that are made
available to markets, governments and society. An innovation is something original and more
effective and, as a consequence, new, that "breaks into" the market or society. Innovation is
related to, but not the same as, invention, as innovation is more apt to involve the practical
implementation of an invention (ie new / improved ability) to make a meaningful impact in
the market or society, and not all innovations require an invention. Innovation often[quantify]
manifests itself via the engineering process, when the problem being solved is of a technical
or scientific nature.

I. INTRODUCTION

Indian Banking Sector has witnessed numerous changes from decades. Value creation is an
essential element in present era as market is buyer oriented. Most of the banks have
introduced innovative techniques in banking in order to create value for customers and to add
more and more customers in its network. Since independence Indian banking has undergone a
huge transformation in the years.

The tremendous changes were particularly high in the 1990s and 2000s, when the
introduction of innovations changed the facet of banking the way it was perceived as a result
of induced and autonomous requirement of the environment. In the 1990s, when
liberalization, privatization and globalization policies introduced the banking sector in India
pronounced larger emphasis placed on innovation and technology.

Banks started to use innovative technology to provide better quality of services at fast speed.
Information technology has made it possible and convenient for customers to perform their
banking activities from diverse places which was not possible earlier and to an extent remain
uncovered. Out of all others banks state bank of india is the largest public sector bank to become
first bank that introduced the concept of information technology in banks. In this paper

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i have stated the various information technology services offered by banks. The main purpose
of is to get familiar with varieties of IT services offered by banks.

Technology plays a crucial role in the improvement of banking services and performance of
operations. The introduction of card based payments , debit card and credit cards, in the early
2000’s introduction of Electronic Funds Transfer/ Special EFT(EFT/SEFT); in March
2004 ,Real Time Gross Settlement(RTGS); in 2005/06, introduction of NEFT (National
Electronic Funds Transfer) as a replacement for EFT/SEFT; cheque truncation system, and
many more. The tempo of development for the Indian banking industry has been remarkable
over the past decade. The e-banking services could be availed 24/. Its flexibility and ease of
use are the advantages of IT in banking. Businessman can access their personal and account
information without going to the bank, whenever a person need, even if the bank is closed.
With the help of online banking bill can be paid online that save both time & money. With
the help of online banking it has become easy to compare services offered by different banks.

Innovation is incredibly valuable to banks as it offers new and compelling ways to capture
new business and grow loyalty from consumers. However, innovation requires a degree of
risk, and risk is not a friend to banks. In fact, banks make a living by avoiding and mitigating
it. Warren Buffet once famously summed up the risk-averse nature of banks when he quipped
“Banking is very good business if you don’t do anything dumb.”

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Innovation requires a culture where people feel comfortable trying things that might fail. It
requires trust – and not just internal, but also trust from customers .

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 CHAPTER:FOUR
Types of innovative services performed by the banking sector.

A bank’s job is to provide customers with financial services that help people better manage
their lives. As technology advances and competition increases, banks are offering different
types of services to stay current and attract customers.

Whether you are opening your first bank account or have managed a checking account for
years, it helps to know the different types of banking services available. This ensures you get
the most out of your current financial institution. Deciding which services are most important
can lead you to the bank that best fits your needs.

Banks typically offer a variety of services to assist individuals in managing their accounts

These services are further divided into two main types. They are:

Traditional services and modern services

TRADITIONAL SERVICES:

The first financial intermediaries to function as depository institutions, maintain deposits,

make loans, and directly control the checkable deposits portion of the economy's money
supply. Traditional banks were THE original banks, the financial depository institutions first
to offer checkable deposits. Traditional banks invariably have the word "bank" in their names
and are charted by either the Comptroller of the Currency or one of the fifty state corporation
commissions. Three other types of banks, as a group commonly termed thrift institutions, are
credit unions, savings and loan associations, and mutual savings banks.

Traditional banks are the checking-account-issuing financial intermediaries that most often
come to mind when the term "bank" is used. Like other depository institutions that accept
deposits and make loans, traditional banks are also responsible for maintaining liquid
checkable deposits that are used as money for the economy.

MODERN BANKING SERVICES:

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After Libera-lization, Privatization and Globalization, there was a huge development taken
place in the Indian banking scenario. All Indian banks were forced to compete with world
banks that were permitted to open their branches in India. As a result, all banking customers
were offered multiple and model banking products which are different from traditional and
conventional banking system in India and these banking functions or mostly based on
information technology.

Such modern banking services include new products such as Core Banking Solutions; No
frills account; Demat accounts; Net Banking/ E-Banking; Mobile banking; Debit Card/ Credit
cards; Automated Teller Machines (ATM); Insurance etc.

There are various types of modern banking services providedby banks:

They are as follows :

 Broking Services/Online Trading:

 ATM Service
 Greeen Channels
 Cash deposit machine
 Swayam
 Mobile banking services
 Net banking
 Demat account

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Broking services /Online trading:

Banks introduce State-of-the-Art broking to cater broking needs of online investing

anyplace,anytime. The value proposition is based on State-of-Art technology, unmatched
expertise and operation lease that redefine the way India trades. Capital Markets Ltd. has
expanded its retail broking network to help investors carry out their broking transaction with
confidence.

Automated Teller Machine (ATM):

This is an electronic device which helps the customers for withdrawal, deposits money,
transfer fund etc, round the clock. For Availing the services of an ATM the customer
need ATM card with PIN number (Personal identification number). It provides 24 x7
and 365 days a year service.

Any individual account holder can use ATM Services who is having saving, current, pension
and NRE accounts with banks, after filing the application for Bank's ATM cards, bank issues
ATM card within 7 to 10 days at the registered address mentioned in the form. Then the
customer can collect the PIN number or Personal Identification number from the issuing
branch. Banks offers its customers the convenience of over 8000 ATMs in India with the
largest network in the country and continuing to expand its branches fast.

Cash Deposit Machine:

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The Cash Deposit Machine (CDM) is a self- service terminal that lets customer make transactions
by cash. It is a machine like that allows to deposit cash directly into customers account using the
ATM cum debit card. This machine helps to instantly credit account without visiting the branch.
All successful transactions are credited immediately and customers will be issued an advice slip
confirming the transaction receipt also gives provides the information about updated account
balance. Some of the salient features of CDMs include Instant credit of cash deposit into your
own account, Quick and convenient way to deposit cash, Paperless transaction, The per
transaction limit is Rs.49,900/, Upto200 currency notes can be deposited in a single transaction
and The CDM only accepts denominations of Rs.1000/-, Rs.500/- & Rs.100/- These CDMs are
available to the customer 24 x 7 for their convenience.

Swayam:

Swayam is a barcode based passbook printing kiosk. Swayam has rolled out at more than
2500 branches of SBI and is installed at maximum number of branches. Customers can print
their passbooks of Recurring Deposit, Savings, as well as PPF account through the facility
24*7, even after branch timings.

Mobile Banking Services:

Mobile Banking is a service provided by banks or other financial institution that allow their
customers to do financial transaction using mobiles like smart phone or tablet. It is quick and
simpleway of banking. Mobile banking app helps to check the account balance, transfer
funds, pay in bills etc. Banks provides the mobile/ phone banking services to their customers.
It enable SMS alerts on debit/credit transactions and cheque returns on mobile of customer
and also provide information on enquiries on account balance/cheque, foreign currency
exchange rates and issuing of cheque book through phone etc.

a) Green Channel Counter (GCC):GCC aims at providing Customers with a secure,

simple and quick way of executing daily Banking transactions .It provides Customer with ease as
there is no need to remember the 11 digit account number or carry passbook, fill in pay in slips /
withdrawal forms, etc. To identify a Customer only the ATM cum Debit Card and PIN

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is needed and his / her Bank Account. Customer swipes the Shopping cum Debit Card,
selects a particular transaction and enters the amount and the PIN.

b)Geen Remit card(GRC ):was introduced on 2nd January, 2012 to facilitate large
number of non-homecash deposit transactions at SBI branches. In this a cardholder can swipe
the card at GCC or at Cash Deposit Machines (CDM) and transfer money to the beneficiary
whose account number is mapped to the card.

Core Banking Solution (CBS):

Core Banking Solution (CBS) is networking of branches, which enables Customers to operate
their accounts, and avail banking services from any branch of the Bank on CBS network,
regardless of where he maintains his account. The customer is no more the customer of a
Branch. He becomes the Bank’s Customer. Under this system all CBS branches are inter-
connected with each other. Therefore, Customers of CBS branches can avail various banking
facilities from any other CBS branch located anywhere in the world. This CBS helps the
customers:

 To deposit cash into the account.

 To deposit cheques/cash into account of some other person who has account in a CBS
branch.
 To get the statement of account.
 To transfer funds from his account to some other account – his own or of third party,
provided both accounts are in CBS branches.

Demat Accounts:

These are maintained by banks for high value transactions which are maintained in electronic
forms for dealing in shares and securities of the customers mostly dealing in Government
Bonds

Net Banking:

This is the easy way of doing banking from the convenient place of the customer and avoids
queue or delay. We can also check balance,transfer funds, pay bills, open fixed and recurring
deposits etc. Each customer is given a unique user ID and password for the purpose of accessing

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internet banking. Electronic Banking is also known as Electronic fund Transfer. Electronic means
to transfer funds from one account to other account by ways of NEFT, RTGS or IMPS.

 NEFT- National Electronic Fund Transfer

 RTGS- Real Time Gross Settlement

 IMPS-Immediate Payment Service

Bankassurance:

Insurance is a means of protection from financial loss. Banks in collaboration with insurance
companies provide the services of banking as well as insurance. It is an arrangement by
which the company undertakes to provide a guarantee of compensation for specified loss,
damages, illness, or death in return for payment of specified premium. The largest insurance
company in India is owned by government.

Lock-Box and Night Safe Services:

These services are provided by some banks. Lock-box helps the customers particularly the
traders, to keep cheques and other remittances in a box for next day collection and certain
entries should be passed. Night safe service is useful to the traders who receive large amount
of money after the banking hours and who feel insecured at their premises.

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 CHAPTER:FIVE

A differentiation between traditional and modern services.

Presence:

Banks exist physically for Modern banking services do

serving the customers not have physical presence as
services are provided online

Security:

Traditional banking does not Online banking is the tempting

encounter e -security threats.
Finance control:
target for hackers. Security is
one of the problems faced by
customers in accessing the
internet

Customers who often travel Customers who often travel

abroad cannot pay close abroad can have greater control
attention and control of their over their finances
finances.
Time:

It consumes a lot of time as It does not consume time as

customers have to visit banks to customers do not have to visit
carry out bank transactions banks to check bank balances or
like-checking bank to transfer money from one
balances ,transferring money account to another. Customers
from one account to another can access their account readily
from anywhere with a computer
and internet access

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Expensive.:

Customers have to spend Customers do not have to spend

money for visiting banks. money for visiting banks. They
can avoid bank charges that
may be charged for certain
teller transactions or when they
pay bills electronically —
directly from their account to
the merchant. It helps to save
money on postal charges.
Accessibility:

People have to visit banks only Internet banking is available at

during the working hours. any time and it provides 24
hours access
Cost :

The cost incurred by traditional Such costs are eliminated as the

banks includes a lot of banks do not have physical
operating and fixed costs. presence.
Customer Service :

ln traditional banks, the In online banking, the

employees and clerical staff of customers do not have to stand
the bank can attend only few in queues to carry out certain
customers at a time. bank transactions
Contact :

Customers can have face to face Customers can have only

contact in traditional banking. electroonic contacts.

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 CHAPTER:SIX
Reasons for growth of the innovative services.

Over the last decade, new technology – especially the Internet and smart phones – have
changed our personal lives, and in many ways made them better. But the technology changes
have affected more than just our personal lives – they've also brought many changes to small
businesses and the way you bank.

In the past, you had to regularly go to your bank to manage your business' money and
transactions. Now, that's drastically changed, thanks to Internet and online banking. I have
put together some of the reasons for growth of the innovative services in the banking sector.

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Expansion of Open Banking:

More and more regulatory bodies globally are requiring banking organizations to enable
customers to share their data securely with third parties to power new financial services and
increase competition in the banking industry. By making account and payment data available

through secure application programming interfaces (APIs), consumers have greater freedom
and control in how they interact with their financial service providers.

Open banking APIs accelerate innovation and collaboration, leading to expanded banking
ecosystems that could include more than just financial services to make a consumer’s
lifestyle better. What is exciting about open banking is that making consumer consent a
central part of open banking strategy places an increased emphasis on consumer value
propositions. In other words, if improved value isn’t part of the open banking consumer
proposition, the customer will not allow the sharing of their data.

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Commitment to Phygital Delivery:

With the high cost of a traditional branch network and the increasing number of transactions
moving to digital channels, more and more traditional financial services companies are
introducing digital-only banking entities. Some banks are launching digital-only banks to
collect deposits, while other financial firms are using digital platforms to provide lending,
investing and specialty services. In each instance, the focus is on innovative customer
experiences and increased value to the consumer, supported by customer data and advanced
analytics that can personalize engagement.

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Payments Everywhere:

The payments industry has been, and will continue to be, one of the most dynamic areas of
innovation in the banking industry. Impacted by changing consumer expectations and driven
by technological advances, innovation will continue to come from traditional financial
institutions, fintech firms and big tech players.

As the infrastructure of payments continues to evolve, innovation will move the payments
industry from a series of specific products to part of everything consumers do. Differentiation
will be driven by data, technology and delivery, changing the dynamics of how and where we
pay and receive payments. Payment innovation trends will occur in conjunction with the
Internet of Things (IoT), point of sale (POS), mobile wallets, cryptocurrencies, and the
blockchain.

Innovating for Tomorrow:

To be able to compete and grow where margins are thin, competition is fierce, regulations are
changing and technology has an increasing impact, financial institutions must place
innovation as a top priority. Organizational cultures must be shifted to support innovations
that will impact increasingly outdated business models. Banks and credit unions must also
anticipate consumer needs and innovate in ways that will prioritize the most effective mix of
capabilities, processes and people.

Convenience:

In this busy and hectic schedule it is difficult for an individual to make time to visit bank for
checking their account balance, interest rates, successful transfer of money, and any other update.
Banking system has developed virtual banking system for customer convenience where

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an individual can access their banking system anytime and anyplace. There are many
scenarios when there is banking holiday due to which your money can’t be transferred.
Online banking system has provides an ease by providing 24 hours and 365 days services. It
resolves issues faced by the customers during traditional banking system. An individual don’t
need to stand in queue for any money deport and transfer.

Quality service: Internet banking has improved the quality of services by providing them
convenience to perform their transactions anytime during the day. The consumers are able to
apply for loan, insurance, and any other services without visiting the banks physically which
shows that the quality of e-banking is fast and effective.

High liquidity:

You can transfer money and utilize anytime which is the greatest advantage to access internet
banking. You don’t need to visit banks for transferring money which can be done from
anywhere without visiting to the banks physically.

Low cost banking service:

Internet banking reduce enable to reduce operational costs with better quality of services. It
provides convenience with high customer service at lower rate. The Bank charges minimal
amount for operations which reflect that the e-banking services are reasonable and efficient.

Transfer service:

The virtual banking system provides convenience to transfer money 24 hours in 365 days.
You don’t need to stick to perform any transaction within working hours as you can do as per
your convenience in 24 hours.

Monitoring service:

The customers can access their updated passbook anytime for monitor their transactions to
manage their financial plans.

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 CHAPTER:SEVEN
Challenges or risks associated with these innovations.

The banking industry, like many other industries today, is facing unprecedented change as it
moves toward digitalization. While most bankers have started to embrace the technological
revolution, there are still challenges that need to be overcome.

The future of banking will require new ideas and methods for accomplishing tasks on a greater
scale. And, perhaps most significantly, the customer will be at the forefront of the future. Today’s
banking customer expects more, demands faster access, and expects better results than in the past.
Banks and financial institutions that are unable to compete with these expectations

will likely struggle to maintain viability in the long run. The banking industry is being
challenged in many ways, but there are 4 that stand out.

Consumer experience:

The customer experience is at the forefront of the challenges facing the banking industry today. In
many ways, traditional banks are not delivering the level of service that customers are
demanding, especially when it comes to technology. For example, more customers are using
mobile devices for transactions. A 2018 study found that 50 percent of banking customers use
their smartphones or other mobile devices. But customers still expect in-person customer

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service as well. The same study found that 25 percent wouldn’t be comfortable opening an
account with a bank that didn’t have a local presence.

Increasing pressure from competition:

Young consumers especially are open to change in their financial services provider. In a
recent survey, Accenture found that 31 percent of banking customers would consider banking
with Facebook, Amazon or Google if they offered the same type of services they currently
enjoy. Already, financial technology (fintech) startups are taking advantage of this mindset
by offering apps that support investing and other innovative financial services.

Investor expectations:

Despite all of the news about banking profits, banks and other financial institutions are not
meeting their shareholders’ expectations for return on investment or equity. Part of the reason
for this is the lack of accurately understanding customer expectations, which translate into
lower customer enrollment and retention rates.

Regulatory conditions:

Regulations in the banking and financial services industry continue to escalate, requiring
banks to spend a large part of their discretionary budget on compliance. Building systems and
processes that are able to keep up with regulations and industry standards require resources
on every level.

Attitude and Culture:

Innovation requires a culture of short cycle failures and improvement iterations, which have
to be learned and accepted. These methodologies go against the typical long-term planning
found in banks. Like start-ups, banks have to learn to “fail fast and fail often” without
putting trillions of dollars at stake. There are inherent risks when constantly trying novel
ideas especially since 90 percent of start-ups fail. Traditional banks do not have to entirely
abandon their workplace culture, but need to make the environment appealing and stimulating
to attract skilled workers who can re imagine the possibilities and capabilities of the industry.

Innovation requires a change in attitude from what the banks want to offer to what customers
really need. This seems pretty obvious, but it is especially difficult to create in large revenue-
oriented organizations. One additional reason American banking organizations are out of touch

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with their customers is that the demographics of banking executives has stayed relatively
stagnant while customer profiles have changed significantly in recent decades.

Banks should actively seek to understand what customers are concerned about and develop
solutions to address what customers are looking for. Incentivizing consumers for honest
feedback with perks and deals can go a long way in fostering a better relationship.

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 CHAPTER:EIGHT
Recent developments of the banking sector.

Indian economic environment is witnessing path breaking reform measures. The financial
sector, of which the banking industry is the largest player, has also been undergoing a
metamorphic change. Today the banking industry is stronger and capable of withstanding the
pressures of competition. While internationally accepted prudential norms have been adopted,
with higher disclosures and transparency, Indian banking industry is gradually moving towards
adopting the best practices in accounting, corporate governance and risk management. Interest
rates have been deregulated, while the rigour of directed lending is being progressively reduced.

Today, we are having a fairly well-developed banking system with different classes of banks
– public sector banks, foreign banks, private sector banks – both old and new generation,
regional rural banks and co-operative banks with the Reserve Bank of India as the fountain
Head of the system. In the banking field, there has been an unprecedented growth and
diversification of banking industry has been so stupendous that it has no parallel in the annals
of banking anywhere in the world.

Banks have benefitted in several ways by adopting newer technologies. E-banking has resulted in
reducing costs drastically and has helped generate revenue through various channels. As per last
available information, the cost of a bank transaction on Branch Banking is estimated to be in a
range of Rs.70 to Rs.75 while it is around Rs.15 to Rs.16 on ATM, Rs.2 or less on Online
Banking and Rs.1 or less on Mobile Banking. The number of customer base has also increased
because of the convenience in 'Anywhere Banking'. Digitization has reduced human error. It is
possible to access and analyse the data anytime enabling a strong reporting system.

RBI has been a guiding force for the banks in forming regulations and giving
recommendations to achieve various objectives. Commercial Banks in India have moved
towards technology by way of Bank Mechanization and Automation with the introduction to
MICR based cheque processing, Electronic Funds transfer, Inter-connectivity among bank
Branches and implementation of ATM (Automated Teller Machine) Channel have resulted
in the convenience of Anytime banking. Strong initiatives have been taken by the Reserve
Bank of India in strengthening the Payment and Settlement systems in banks.

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Technological Milestones in Indian Banks:

Source: IMAI

Indian Government is aggressively promoting digital transactions. The launch of United

Payments Interface (UPI) and Bharat Interface for Money (BHIM) by National Payments
Corporation of India (NPCI) are significant steps for innovation in the Payment Systems
domain. UPI is a mobile interface where people can make instant funds transfer between
accounts in different banks on the basis of virtual address without mentioning the bank
account. Today banks aim to provide fast, accurate and quality banking experience to their
customers. Today, the topmost agenda for all the banks in India is digitization.

Source: Banking on Technology, Perspectives on the Indian banking Industry

According to the RBI Report there are 2,22,475 Automated Teller Machines (ATMs)
and 25,29,141 Point of Sale devices (POS). Implementation of electronic payment system
such as NEFT (National Electronic Fund Transfer), ECS (Electronic Clearing Service),
RTGS (Real Time Gross Settlement), Cheque Truncation System, Mobile banking
system, Debit cards, Credit Cards, Prepaid cards have all gained wide acceptance in
Indian banks. These are all remarkable landmarks in the digital revolution in the
banking sector. Online banking has changed the face of banking and brought about a
noteworthy transformation in the banking operations.

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The most used services:

National Electronic Funds Transfer (NEFT) is the most commonly used electronic
payment method for transferring money from any bank branch to another bank in India. It
operates in half hourly batches. At present there are 23 settlements.

Real Time Gross Settlement (RTGS) is primarily used for high-value transactions which
are based on 'real time'. The minimum amount to be remitted through RTGS is Rupees Two
Lakhs. There is no upper limit.

Immediate Payment Service (IMPS) is an instant electronic funds transfer facility offered
by National Payments Corporation of India (NPCI) which is available 24 x 7.

The usage of Prepaid payment instruments (PPIs) for purchase of goods & services and
funds transfers has increased considerably in recent years. The value of transactions through
PPI Cards (which include mobile prepaid instruments, gift cards, foreign travel cards &
corporate cards) & mobile wallets have jumped drastically from Rs.105 billion and Rs. 82
billion respectively in 2014-15 to Rs. 277 billion and Rs. 532 billion respectively in 2016-17.

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 CHAPTER: NINE
Government initiatives regarding promotion of the innovative services.

77,000 payments bank accounts opened in Maharashtra, Goa postal circle:

The Maharashtra and Goa Circle of India Post has got over 77,000 customers for its payments
bank since the facility was launched across 650 districts by Prime Minister Narendra Modi on
September 1. Maharashtra and Goa Postal Circle had 42 branches of the IPPB along with 210
access points. The main of these IPPBs is to build the most accessible, affordable and trusted
bank for the common man by removing barriers for the unbanked and underbanked segments of
society. It is important to note that the Post department serves 40 crore customers and operates
around 1.5 lakh branches across the country with a workforce of 3 lakh postmen.

Govt To Infuse INR 42,000 Crore In PSU Banks By March:

The government will infuse Rs 42,000 crore in the state-owned banks by March-end and the next
tranche would be released by mid-December. State-owned banks will need less capital to meet
their capital adequacy norms, as the Reserve Bank of India recently decided to defer the deadline
for them to meet the global norms or Basel-III requirement by a year till March 2020.

Prime Minister Modi launches APIX technology in Singapore

Prime Minister Narendra Modi has launched the APIX (Application Programming Interface
Exchange), a banking technology platform designed to reach nearly two billion people
worldwide who are still without bank accounts. The APIX will support banks to reach out
people without bank accounts in 23 countries including the 10 ASEAN members.

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MUDRA Bank

Micro Units Development Refinance Agency(MUDRA) Bank

has been created to enhance credit facilitate to boost the growth of small business in rural areas.

In2015, the government allocated 10,000 crores to promote startup culture in the country.
The MUDRA banks provides loans for Rs. 10 lakh to small enterprises which are non-
corporate, non-farm small/micro enterprises. It comes under Pradhan Mantri Mudra
Yojana(PMMY) which was launched on 8th April 2015.

Micro Units Development Refinance Agency(MUDRA) Bank has been created to enhance
credit facility to boost the growth of small business in rural areas. In 2015, the government
allocated 10,000 crores to promote startup culture in the country. The MUDRA banks
provides loans for Rs. 10 lakh to small enterprises which are non-corporate, non-farm
small/micro enterprises. It comes under Pradhan Mantri Mudra Yojana(PMMY) which was
launched on 8th April 2015

Under the aegis of PMMY, MUDRA has created three products namely 'Shishu', 'Kishore' and
'Tarun' to signify the stage of growth / development and funding needs of the beneficiary micro
unit / entrepreneur and also provide a reference point for the next phase of graduation / growth.

Infrastructure Development Fund (DIDF):

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National Bank for Agriculture and Rural Development (NABARD) is an apex development
bank in India. The Government of India had announced creation of Infrastructure
Development Fund under NABARD with a total corpus of Rs. 8000 crore over a period of 3
years (i.e. 2017-18 to 2019-20)

Financial Inclusion in India through Digitisation of Monetary Transactions:

The government of India intends to carry out crores of digital financial transactions for the
present and upcoming years with the help of Unified Payment Interface (UPI), Unstructured
Supplementary Service Data (USSD) banking methods, Immediate Payment Service (IMPS),
National Electronic Funds Transfer (NEFT), Aadhaar Pay, debit cards, BHIM, and credit cards.

Moreover, the government wants to make it compulsory for fertiliser depots, block offices,
petrol pumps, road transport offices, hospitals, colleges, universities, etc. to make
arrangements for accepting payments for services and products through digital payment
systems. It makes a lot of sense especially when customers are required to

make high-value payments at these institutions or offices. The government intends to achieve
this by issuing a mandate to the above-mentioned institutions.

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Apart from this, the government also wants to make it mandatory that every government
receipt is offered exclusively through any digital mode. Presently, many government
operations are carried out digitally and customers receive receipts for payments in the digital
form. However, this has not been completely effective in every part of the nation. To attract
more and more users for digital modes of payment, the government is trying its best to
remove or reduce service charges that are levied by companies on the electronic transactions.

These digital financial apps will help in eliminating corruption apart from achieving financial
inclusion. These apps aim to attain financial inclusion by offering interesting and attractive
bonuses for both users and merchants. Customers who make use of these cashless payment tools
will be able to enjoy referral bonus schemes and meanwhile, merchants will get cashback rewards
and points when they allow customers to transact through these cashless systems.

Pradhan Mantri Jan Dhan Yojana (PMJDY):

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PMJDY is a financial inclusion program of Government of India open to Indian citizen
(minor of age more than 10 can also open account with guardian to manage it) , that aims to
expand and make affordable access to financial services such as bank accounts, remittances,
credit, insurance and pensions. This financial inclusion campaign was launched by the Prime
Minister of India Narendra Modi on 28 August 2014.[1] He had announced this scheme on
his first Independence Day speech on 15 August 2014.

According to an analysis of various studies, "Beyond enabling account ownership and the use
of financial services, the PMJDY also facilitated financial inclusion for a variety of
demographics. While the programme has made significant headway towards genuine
financial inclusion, it is clear that improving policy communication, widening and deepening
progress in low-income states, and ironing out the kinks in the bank-agent model will be
crucial if these hard-fought gains are to prove sustainable."

Run by Department of Financial Services, Ministry of Finance, under this scheme 15 million
bankaccounts were opened on inauguration day. The Guinness Book of World Records
recognized this achievement, stating: "The most bank accounts opened in one week as a part
of the financial inclusion campaign is 18,096,130 and was achieved by the Government of
India from August 23 to 29, 2014".By 27 June 2018, over 318 million bank accounts were
opened and over ₹792 billion (US$12 billion) were deposited under the scheme.

The government is promoting these schemes not only to increase the number of people who

are getting the benefits from them but also to highlight the work they have done in the last 5
years. India seems to be going towards the era of entrepreneurship

Advantage India:

Robust Demand

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Increasing working population, demand for Housing and personal finance, disposable
incomes, rural banking, etc. are expected to remain key demand drivers in the future.

Innovative Services:

Government is taking several initiatives to promote the banking sector as a whole because
it

Is the sector that is going to get affected the most and it is very important to upgrade the

Banking sector from time to time and to improve relations with the customers, to increase

Trade related activities from time to time .

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Mobile wallets, Internet banking & extension of ATM Facilities, Cloud Computing, Big data
analytics, etc. are some of the innovative services boosting the operational efficiency and
reach of banking services.

Mobile wallet industry likely to grow 150% in 5 years: Capgemini. India's drive to become a
less-cash economy as e-wallet industry is expected to grow to US$4.4 billion by 2022.

Around 80% of transactions in the newer banks are made through digital channels (The
Indian Banks’ Association’s survey, 2016)

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Policy Support & Government Initiatives

Indian Government has undertaken many policy reforms and initiatives to strength banking
sector such as Banking Regulation (Amendment) Bill 2017, Insolvency and Bankruptcy Code
(Amendment) Ordinance 2017, Mudra Scheme, Pradhan Mantri Vaya Vandana Yojna,
Pradhan Manrti Jan Dhan Yojna, Public Credit Registry (PCR), Capital Infusion Scheme,
simplification of KYC norms, etc.

Rising M&A and Investments:

Government of India launched India Post Payments Bank (IPPB) and has opened branches
across 650 districts to achieve the objective of financial inclusion.

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The total value of mergers and acquisition during FY17 in banking was US$ 79 million with
the biggest merger deal in the microfinance segment of IndusInd Bank Limited and Bharat
Financial Inclusion Limited of US$ 2.4 billion.

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 CHAPTER TEN:
Impact on the customers with the introduction of modern services.
Customer Behaviour:

Banking customers become more experienced and savvier using technology-based banking
services.

Bank customers are today more informed than ever before and have a high level of
confidence in choosing

products and service providers for themselves. As a

result of the recent crisis and the reduced trust in banks,

customers are now much more willing to purchase

products and services from various banks than they

were

in the past, and are consequently banking with

multiple comparing products and services between

different providers is becoming easier for customers

through direct channels, Internet blogs, and forums,

and social. networks. Consequently, customers have

increased the number of their banking relationships.

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Changes in the number of customer banking

relationships in response to recent developments in

the

banking industry and financial markets (over the past

two

years)

At the same time, the use of self service and direct

channels has become a top priority for the majority

of banking customers.

Top 3 Emerging changes in customer behaviour that

will impact the banking business over the next three years This trend is accompanied by the
customers’ need for better and more personalized services. In addition, customers have
become more price-sensitive as indicated by the change in customer reactions to pricing
strategies for banking products and services.

As a result of this changing customer behaviour, banks need to offer innovative and more
personalized services investing in the digital channels in order to attract and retain customers.
Only by doing so can they gain a competitive edge in the fight for new customers and win
back the trust of their existing customers

Customer Satisfaction Is the Largest Competitive Advantage for Banks:

The banking industry is a commoditized space. With everyone offering nearly the same products
and services without much room to compete on price, the experience customers have with their
banks is what gives one bank a competitive advantage over another. There are two areas where
banks can really look to stand out by delivering an incredible customer experience.

Interpersonal Service:

In our experience, the relationship between a bank and their customer has the biggest impact
on customer satisfaction. People want to be treated as if they matter. They want to form a

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relationship with their bank, and they want their bank to make an effort to get to know them
instead of just pushing a product.

Consistent Omni-Channel Experience:

In modern banking, there are many ways for customers to interact with a bank, including
online and mobile banking, at an ATM, and over the phone. One of the biggest things we’ve
seen is that a consistent experience across channels matters to customers. Whether it’s
transferring information quickly between channels or making sure deposit times are
consistent no matter how a deposit is made, these things matter. To provide a great customer
experience, banks need to deliver on the expectations their customers have in all channels.

Effective Problem-Solving:

Customers are reasonable. They know that an occasional problem or mishap is possible. But
they also expect that their bank will make the situation right. This means fixing the problem
quickly and effectively.

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 PRIMARY RESEARCH

DATA ANALYSIS AND INTERPRETATION:

Q1)AGE:
AGE GROUPS NO. OF RESPONDENTS
0-18 years 1
18-26 years 65
26-31 years 28
31-40 years 8
41-50 years 1
51-60 years -
Above 60 years -

ANALYSIS:

Most of the respondents who were surveyed are in the age groups of 18-34 years (63.1%),
followed by respondents in the age group of 26-31 years (27.2%) and respondents of age
group of 31-40 years (7.8%).The least expected respondents are from the age groups 41-50
years, 51-60 years and 0-18 years.

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Q2:GENDER:

GENDER NO. OF RESPONDENTS

MALE 34
FEMALE 69

ANALYSIS:

The total number of respondents were 103 , out of which 69 individuals were
females respondents and 34 were the male respondents.

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Q3) PROFESSION:

PROFESSION NO.OF RESPONDENTS

GOVERNMENT EMPLOYEE 4
PRIVATE EMPLOYEE 43
STUDENT 47
BUSINESSMAN 5
HOUSEWIFE 4

ANALYSIS:

Majority of the customers were the students(47) following them were the
private employees of banks as well as companies (43).following closely are the
businessman (5) of them. The least numbers were the government
employees(4) and the housewives which were 4

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Q4) WHICH TYPES OF BANKS DO YOU CONSIDER AS
EXCELLING IN PRACTISING THE INNOVATIVE SERVICES?

BANKS NO. OF RESPONDENTS

Co-operative banks 10
Private banks 83
Public sector banks 10

ANALYSIS:

According to the respondents,the private banks(80.6%) are said to be the most

excelling and practising in the promotion of the innovative services,followed
by the public sector banks (9.7%) and the co-operative banks .

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Q5) WHICH TIE-UPS OF BANKS DO YOU KNOW
ARE INTRODUCED FOR INNOVATIONS?

TIE-UPS NO. OF RESPONDENTS

Banks and card companies 31

Banks and insurance companies 68

Banks and mutual fund 48
companies
Banks and broking service providers 18

ANALYSIS:

The tie ups of the banks with companies are introduced for innovations.
Amongst them the tie ups of the banks with the insurance companies are known
by 66% respondents. Followed by banks and mutual fund companies which are
known to 48% people.The least number of tie ups known to people are from
card companies (31 % ) and broking service providers(18%)
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Q6)WHICH FACTOR PROMOTES YOU TO USE THE
NEW TECHNIQUES IN BANKING?

FACTORS NO.OF RESPONDENTS

Easy to operate 23
Cost effectiveness 57
Quick service 19
Technically more convenient 4

ANALYSIS:

The most important factor that promotes people to use the new techniques of
banking is cost effectiveness which carries the majority i.e. (55.3%) followed
by the second factor which carries the majority is ease of operation (22.3%) and
the least factors are quick services and technically more convenient.

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Q7) ARE BANKS UP-TO-DATE WITH THE INNOVATIONS OR ARE
THEY MOVING BACKWARDS?

INTRODUCTION OF A NEW NO. OF RESPONDENTS

SERVICE
Uptodate with the services 81
Moving backwards 22

ANALYSIS:

Majority of the respondents which is (78.6%) think that banking sector is

upgrading in terms of inrtroduction of a new service and (21.4%) think that it
is moving backwards.

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Q8:)WHICH OF THESE NEWLY LAUNCHED SERVICES ARE YOU
AWARE OF?

INNOVATIONS NO. OF RESPONDENTS

Broking services by banks 24
Online trading 74
EPS(electronic payment system ) 33
Bankassurance 19

ANALYSIS: Majority of the respondents(71.8%) are aware of the online

trading services by the banks followed by the EPS system which is (32%)
and the least awareness is of broking services by banks(23%)and
bankassurance (19%)
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Q9)WHICH OF THESE NEW PAYMENT SERVICES ARE
YOU AWARE OF?

PAYMENT SERVICES NO. OF RESPONDENTS

UPI 21
POINT OF SALE TERMINAL 52
CARDS 29
MOBILE WALLETS 57

ANALYSIS:

Majority of the payment services which are known to the customers are:

Mobile wallets(55.3%)

Point of sale terminal(52%)

AND LEAST NUMBER KNOWN TO CUSTOMERS ARE:

Near field communication (29%)

Unified payment interface (20.4%)

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Q10)HOW Frequently do you use the following e-services?

SERVICES NEVER WEEKLY MONTHLY DAILY

USEED
BRANCH 3 99 1 -
BANKING
ATM 2 9 91 1
SERVICES
INTERNET 3 67 31 2
BANKING
GREEN 5 35 61 2
CHANNEL
RETAIL 6 44 52 1
BANKING

ANALYSIS:

Customers today ,according to the data use atm services the most .They use
it majorly on monthly basis.

Branch banking is used more and more on weekly basis.

Internet banking also is used more and more on weekly basis whereas
retail banking and green channels are used more on a monthly basis.

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81 | P a g e
Q11)HOW MUCH CONVENIENT IS TO OPERATE THESE
NEW(innovative) SERVICES APART FROM THE
TRADITIONAL SERVICES?

CONVENIENCE NO. OF RESPONDENTS

VERY EASY 32
EASY 69
DIFFICULT 2
VERY DIFFICULT -

ANALYSIS:

The operation of these new services are easy according to the customers (67%)
tell us that it is easy to operate and 31% find it very much easy to operate.
Only 2% find it difficult to operate.

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Q12)WHICH OF THESE PROMOTIONAL TECHNIQUES DO
BANKS USE FOR THEIR NEW SERVICES?

PROMOTIONAL TECHNIQUES NO. OF RESPONDENTS

ADVERTISING 39
PERSONAL VISITS 49
EXECUTIVE FROM BANK 14
ONLINE AWARENESS 57

ANALYSIS:

The promotional techniques mostly used by the banks are:

Online awareness(57%) and Personal visits(49%)

And least used techniques are:

Advertising and executive from banks.

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Q13)ARE THESE INNOVATIVE SERVICES HELPFUL FOR
THE EMERGING FUTURE?

HELPFUL? NO. OF RESPONDENTS

YES 80
NO 23

ANALYSIS:

These modern services are helpful for the emerging future as majority of
the customers have estimated a yes which carries (77.7%) and 23% say
no according to their estimation.

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Q14) HOW FAMILIAR YOU ARE WITH THE INNOVATIVE
SERVICES INTRODUCED BY THE BANKING SECTOR?

ANALYSIS:

Majority80.6% of the customers said they are moderately aware of the

innovations i.e. 3 on scale of 5 .

12.6% said that they are aware of the innovations about 2 on scale of 5.

6.8% said that they are aware of innovations about 4 on scale of 5.

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86 | P a g e
 CONCLUSION

1)In banking sector Information technology has brought a major transformation in economy.
With the change in technology banks have become more competitive in their workings and
operation. The banks are able to increase their market share with the implementation of
information technology. The common society has started relying on the new services. Banking
has spread its branches and has reached those customers who never availed banking service.
Information Technology has promoted paperless banking that has supported sustainability
measures. These IT services have made the banks to spread their operations and have made
banking transaction more dynamic and convenient. The information technology has resulted in
tremendous transformation in the customer satisfaction. Today more & more customers prefer
and use modern services of the banks instead of traditional services. Thus IT in banking sector
has given a tremendous positive movement towards greater economic development. Many banks
have implemented information technology in their banks and offer various services.

That proves my H0 number1:that innovative services has resulted in increased

innovations in banks.

2)Private Sector Banks are better as they provide more customized services and greater personal
interaction. A dissatisfied customer can degrade the banks as a whole .The banking sector as a
whole is contributing to the economy. But it is distinguished into private and public sector.
Though both the sectors perform very well in providing their innovative services.

But according to the respondents and according to the analysis the hypothesis number 2
H0:Private banks are performing better than public sector banks, is proved.

3)The customer is the centre of all kinds of business whether it is manufacturing or trading the
goods and services. The success of banking sector is completely dependent on how much
customers are satisfied with the services provided by banks. The increased level of awareness of
customers creates the chances of success of any organization. Thus, instead of focusing on the
earning of profits, the major objective of business has become to make the customers aware about
the banking services. As the awareness level of customers increase, their satisfaction levels
towards the banking services shall also increase. The various services provided by banks are
technological and many of them are used by the customers. Banks provides various kinds of
services like safety of funds, depository, phone banking, innovative services, other IT based

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services, one step banking, etc. In the era of technology, all banks are providing the efficient
services.

The customers should be aware about the services of banks and it depends on the promotional
tools and active participation of banks, on the

social media. It has been checked in the present study to what extent customers of public
sector and foreign banks are aware about it. On the

other hand, it has been measured that the awareness level among the customers of banking
sector is more due to the advertising level and promotion techniques and facilities by banks.

The study was based on primary data that has been collected through structured
questionnaire filled by 103 respondents and study of Hypothesis number3 proves that
H0:customers are aware of the innovative services or the modern services performed by
the banks.

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 BIBLIOGRAPHY

NEWSPAPER ARTICLES:

https://www.livemint.com/money/personal-finance/for-sbi-account-holders-3-
things-that-change-from-today-11577684593828.html

https://www.financialexpress.com/industry/banking-finance/offer-contactless-
card-payments-only-if-opted-for-rbi-to-
banks/1824521/?utm_campaign=fullarticle&utm_medium=referral&utm_sourc
e=inshorts

https://m.economictimes.com/

WEBLINKS:

www.ibef.org

myactivity.google.com

www.indiaservices.in

www.google.com

www.iosrjournals.org

www.rbi.org.in

www.hitachi-solutions.com

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 ANNEXURE:QUESTIONNAIRE

Q1) AGE

a) 0-18 years
b) 18-26 years
c) 26-31 years
d) 31-40 years
e) 41-50 years
f) 51-60 years
g) Above 60 years

Q2) GENDER

a) MALE
b) FEMALE

Q3) PROFESSION

A) GOVERNMENT EMPLOYEE
B) PRIVATE EMPLOYEE
C) STUDENT
D) BUSINESSMEN
E) HOUSEWIFE

Q4) WHICH TYPE OF BANKS DO YOU CONSIDER AS EXCELLING IN

PRACTISING THE INNOVATIVE SERVICES?

A) CO-OPERATIVE BANKS
B) PRIVATE BANKS
C) PUBLIC BANKS

Q5) WHICH TIE-UPS OF BANKS DO YOU KNOW ARE INTRODUCED

FOR INNOVATIONS?

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A) BANK AND CARD COMPANIES
B) BANK AND INSUARANCE COMPANIES
C) BANK AND MUTUAL FUND COMPAINIES
D) BANK AND BROKING SERVICE PROVIDERS

Q6) WHICH FACTOR PROMOTES YOU TO USE THE NEW

TECHNIQUES IN BANKING

A) EASY TO OPERATE
B) COST EFFECTIVENESS
C) QUICK SERVICE
D) TECHNICALLY MORE CONVENIEINT

Q7) ARE BANKS UP TO DATE WITH THEIR INNOVATIONS OR ARE

THEY MOVING BACKWARDS?

A) UP TO DATE
B) MOVING BACKWARDS

Q8) WHICH OF THESE NEWLY LAUNCHED SERVICES ARE YOU

AWARE OF?

A) BROKING SERVICES
B) ONLINE TRADING
C) EPS
D) BANKASSURANCE

Q9)WHICH OF THE NEW PAYMENT SERVICES ARE YOU AWARE OF?

A) UPI
B) POINT OF SALE TERMINAL
C) CARDS
D) MOBILE WALLETS

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Q 10) HOW FREQUENTLY DO YOU USE THE FOLLOWING E-BANKING
SERVICES?

A) BRANCH BANKING

B) ATM SERVICES

C) INTERNET BANKING

D) GREEN CHANNELS

E) RETAIL BANKING

Q11) HOW MUCH CONVENIENT IS TO OPERATE THESE NEW

SERVICES?

A) VERY EASY
B) EASY
C) DIFFICULT
D) VERY DIFFICULT

Q12) WHICH OF THESE PROMOTIONAL TECHNIQUES DO BANK USE

FOR THEIR NEW SERVICES?

A) ADVERTISING
B) PERSONAL VISITS
C) EXECUTIVE FROM BANK
D) ONLINE AWARENESS

Q13) ARE THESE MODERN SERVICES HELPFUL FOR THE EMERGING

FUTURE?

A) YES
B) NO

Q14) HOW FAMILIAR YOU ARE WITH THE INNOVATIVE SERVICES

INTRODUCED BY THE BANKING SECTOR?

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(ON SCALE OF 1 TO 5) 1 BEING NOT FAMILIAR AT ALL AND 5 BEING
VERY MUCH FAMILIAR

Q15) WHICH IMPROVEMENTS WOULD YOU RECOMMEND IN THE

FUTURE?

________________________________________________________________
______

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