A PROJECT REPORT ON RISK MANAGEMENT IN

E- BANKING SYSTEM IN KOTAK MAHINDRA

BANK PVT LTD.

SUBMITTED TO
Shri .Dr. P.V. V . SATYANARAYANA SIR
SUBMITTED BY
DAIVAM SRI SAI SANKER(19021E0052)
 CHAPTER 1
RESEARCH METHODOLOGY
 INTRODUCTION

 OBJECTIVES OF THE STUDY

 RESEARCH METHOD
 TYPES OF RISKS
 POPULATION
 SAMPLE FRAME
 RESEARCH TOOL
 SAMPLE SIZE
 SAMPLING TECHNIQUES AND UNITS

 COLLECTION OF DATA
 NEED FOR THE STUDY
 EXPECTED CONTRIBUTION OF STUDY
 BENEFICIARIES
  SCOPE OF THE STUDY
ABSTRACT
FINANCIAL RELIEF AND TECHNOLOGY REVOLUTION HAVE
ALLOWED THE DEVELOPMENTS OF LATEST AND A LOT OF
ECONOMICAL DELIVERY AND PROCESS CHANNELS LIKEWISE AS A
LOT OF INNOVATIVE MERCHANDISE AND SERVICES IN BANKING
SYSTEM. BANKING ESTABLISHMENTS FACE COMPETITION SOLELY
FROM EVERY DIFFERENT HOWEVER CONJOINTLY FROM NON-BANK
MONEY INTERMEDIARIES LIKEWISE AS FORM VARIOUS SOURCES OF
FINANCE.
ANOTHER STRATEGIC CHALLENGE FACING BANKING
ESTABLISHMENTS THESE DAYS IS THAT THE GROWING AND
DYNAMIC WANTS AND EXPECTATIONS OF SHOPPERS IN TANDEM
BICYCLE WITH EXAGGERATED EDUCATION LEVELS AND GROWING
WEALTH. SHOPPERS ARE GETTING PROGRESSIVELY DISCERNING
AND BECAME A LOT OF CONCERNED IN THEIR MONEY SELECTIONS.
FOR SEVERAL SHOPPERS, ELECTRONIC BANKING SUGGESTS THAT
24-HOUR ACCESS TO MONEY THROUGH AN AUTOMATIC TELLER
MACHINE (ATM) OR DIRECT DEPOSIT OF PAYCHECKS INTO
CHECKING OR SAVINGS ACCOUNTS.
BUT ELECTRONIC BANKING INVOLVES MANY ALTERNATIVE STYLES
OF TRANSACTIONS. ELECTRONIC BANKING , CONJOINTLY CALLED
ELECTRONIC FUND TRANSFER (EFT), USES LAPTOP AND
ELECTRONIC TECHNOLOGY AS A SUBSTITUTE FOR CHECKS AND
DIFFERENT PAPER TRANSACTIONS. EFTS IS INITIATED THROUGH
DEVICES LIKE CARDS OR CODES THAT PERMIT YOU, OR THOSE YOU
AUTHORIZE, ACCESS YOUR ACCOUNT. SEVERAL MONEY
ESTABLISHMENTS USE ATM OR DEBIT CARDS AND PRIVATE
IDENTIFICATION NUMBERS (PINS) FOR THIS PURPOSE. SOME USE
DIFFERENT STYLES OF DEBIT CARDS LIKE THOSE WHO NEED, AT
THE FOREMOST, YOUR SIGNATURE OR A SCAN. FOR INSTANCE,
SOME USE FREQUENCE IDENTIFICATION (RFID) OR DIFFERENT
VARIETIES OF “CONTACTLESS” TECHNOLOGY THAT SCAN YOUR
DATA WHILE NOT DIRECT CONTACT. THE FEDERAL ELECTRONIC
FUND TRANSFER ACT (EFT ACT) COVERS ELECTRONIC CLIENT
TRANSACTIONS. 

INTRODUCTION
 THE QUICK ADVANCING INTERNATIONAL INFO
INFRASTRUCTURE (INCLUDING INFO TECH-NEOLOGY AND LAPTOP
NETWORKS LIKE THE WEB AND TELECOMMUNICATIONS SYS-
TEMS) ALTER THE EVENT OF ELECTRONIC COMMERCE AT A
WORLDWIDE LEVEL. THE NEARLY UNIVERSAL PROPERTY THAT THE
WEB OFFERS HAS CREATED IT A USEFUL BUSINESS TOOL.
THESE DEVELOPMENTS HAVE CREATED A REPLACEMENT FORM OF
ECONOMY, THAT SEVERAL DECISION THE ‘DIGITAL ECONOMY’.
THIS QUICK RISING ECONOMY IS CONVEYANCE WITH IT SPEEDILY
DYNAMIC TECHNOLOGIES, INCREASING DATA INTENSITY ALL
TOLD AREAS OF BUSINESS, AND CREATINGVIRTUAL OFFER CHAINS
AND NEW KINDS OF BUSINESSES AND REPAIR DELIVERY CHANNELS
LIKE E-BANKING.
AS AN IMMEDIATE CONSEQUENCE OF THE EMERGENCE OF THE
‘DIGITAL ECONOMY’, THE BALANCE OF POWER LOOKS TO BE
SHIFTING TO THE PURCHASERS. CUSTOMERS SQUARE MEASURE
MORE AND MORE DEMANDING ADDITIONAL PRICE, WITH
MERCHANDISE CUSTOM TO THEIR ACTUAL DESIRES, AT LESS
VALUE, AND AS QUICKLY AS ATTAINABLE.
TO MEET THESE DEMANDS, BUSINESSES OUGHT TO DEVELOP
INNOVATIVE WAYS IN WHICH OF MAKING PRICE WHICH
FREQUENTLY NEEDED TOTALLY DIFFERENT INFRASTRUCTURE
ARCHITECTURES TOTALLY DIFFERENT IT.
INFRASTRUCTURES AND TOTALLY DIFFERENT MEANS OF
CONSIDERING DOING BUSINESS. THIS TRANSFOR-MATION OF
BUSINESS FROM ASSOCIATE DEGREE PREVIOUS COMPANY TO A
REPLACEMENT AGILE ELECTRONIC CORPORATION ISN'T SIMPLE
AND NEEDS PLENTY OF INNOVATIVE THINKING , DESIGNING AND
INVESTMENT. THIS BOOK CAN COWL SEVERAL OF THOSE PROBLEMS
IN E-BANKING CONTEXT.
WHAT IS E-BANKING?
IN ITS TERRIBLY BASIC TYPE, E-BANKING WILL MEAN THE SUPPLY
OF KNOWLEDGE A COUPLE OF BANK AND ITS SERVICES VIA A
HOME PAGE ON THE GLOBE WIDE NET (WWW). A LOT OF SO-
PHISTICATED E-BANKING SERVICES OFFER CLIENT ACCESS TO
ACCOUNTS, THE POWER TO MANEUVER THEIR CASH BETWEEN
COMPLETELY DIFFERENT ACCOUNTS, AND CREATING PAYMENTS OR
APPLYING FOR LOANS VIA E-CHANNELS. THE TERM E-BANKING
ARE GOING TO BE UTILIZED IN THIS BOOK TO EXPLAIN THE LATTER
STYLE OF PROVISION OF SERVICES BY A CORPORATION TO ITS
CUSTOMERS. SUCH CUSTOMERS IS ALSO EITHER A PERSONAL OR
ANOTHER BUSINESS.
TO GRASP THE ELECTRONIC DISTRIBUTION OF PRODUCTS AND
SERVICES, THE WORK OF RAYPORT AND SVIOKLA (1994; 1995)
MAY BE A SENSIBLE START LINE. THEY HIGHLIGHT THE DIF-
FERENCES BETWEEN THE PHYSICAL MARKET PLACE AND ALSO THE
VIRTUAL MARKET PLACE, THAT THEY DESCRIBE AS ASSOCIATE
DEGREE INFORMATION-DEFINED ARENA. WITHIN THE CONTEXT OF
E-BANKING, ELECTRONIC DELIVERY OF SERVICES SUGGESTS THAT
A CLIENT CONDUCTING TRANSACTIONS EXPLOITATION ON-LINE
ELEC-TRONIC CHANNELS LIKE THE WEB.
MANY PEOPLE SEE THE EVENT OF E-BANKING AS A
REVOLUTIONARY DEVELOP-MENT, BUT, LOOSELY, E-BANKING
MIGHT BE SEEN AS ANOTHER STEP IN BANKING EVOLUTION.
SIMILAR TO ATMS, IT PROVIDES SHOPPERS ANOTHER MEDIUM FOR
CONDUCTING THEIR BANKING. THE FEARS THAT THIS CHANNEL
CAN FULLY REPLACE EXISTING CHANNELS MIGHT NOT BE
REALISTIC, AND SKILL TO THIS POINT SHOWS THAT THE LONG RUN
MAY BE A MIXTURE OF “CLICKS (E-BANKING) AND MORTAR
(BRANCHES)”. THOUGH KICK OFF PRICES FOR A WEB BANK-ING
CHANNEL IS HIGH, IT WILL QUICKLY BECOME PROFITABLE ONCE A
IMPORTANT MASS IS ACHIEVED . RISK MANAGEMENT

ABSTRACT
E-BANKING OR NET BANKING REFERS TO SYSTEMS THAT MODIFY
BANK CUSTOMERS TO ACCESSACCOUNTS AND DATA ON BANK
MERCHANDISE AND SERVICES THROUGH A PERSONNEL LAPTOP OR
DIFFERENT INTELLIGENT DEVICE. INFO TECHNOLOGY IS THAT THE
KEY DRIVERS OF DATA AGE.
IT IS EXTREMELY PRICE EFFECTIVE CHANNEL FOR DELIVERY OF
BANKING SERVICES; IT'S NOT FREE FROM THE RISKS. A DISTRICT
FROM PRICE OF REDUCTION IN PRICE OF TRANSACTIONS NET
BANKING ADDITIONALLY CAUSED A BRAND NEW SET OF RISKS
THAT TOO IN NEW FORMS. REGULATORS AND SUPERVISORS
EVERYWHERE THE PLANET SQUARE MEASURE AWARE OFDIFFERENT
SORTS OF RISKS IN NET BANKING.
AN IMPORTANT AND DIGNITY OF NET BANKING IS THAT HERE
TECHNOLOGY PLAYS A BIG ROLE AS A SUPPLY OF TOOL FOR
MANAGEMENT OF RISKS.
BECAUSE OF QUICKER AND SPEEDIER INFO TECHNOLOGY, THERE'S
NO CONCLUSIVENESS EITHER WITHIN THE SORT OF RISKS OR
MEASURES TO REGULATE THEM.

INTRODUCTION
BANKING AS A SERIOUS A PART OF MONETARY SECTOR, IS
LIFEBLOOD OF WHOLE TRADE, NECESSARY TO SURVIVE.
IT PLAYS A DECISIVE ROLE IN FAST THE SPEED OF ECONOMIC
PROCESS IN EVERY ECONOMY. TECHNOLOGY IS ANOTHER RISING
TREND WITHIN THE BANKING SECTOR AND NEW PROBLEMS HAVE
STARTED CROPPING UP, THAT GOES TO CAUSE SURE ISSUES WITHIN
THE FUTURE.
EVEN THOUGH NET BANKING IT'S NOT FREE FROM RISKS. ASIDE
FROM REDUCTION OF PRICE OF TRANSACTIONS NET BANKING
ADDITIONALLY BROUGHT A BRAND NEW SET OF RISKS.
INTERNET BANKING ADDITIONALLY BROUGHT A BRAND NEW SET
OF RISKS. THAT TOO IN NEW NORMS. REGULATORS AND
SUPERVISORS OF EVERYWHERE THE PLANET SQUARE MEASURE
RESPONSIVE TO TOTALLY DIFFERENT TYPE’S RISKS IN NET
BANKING.
IT WILL INCREASE LEVEL OF DEREGULATIONS TOGETHER WITH
THE INCREASING LEVELS OF COMPETITION HAVE EXPEDITED
GLOBALISATION ON INDIAN INDUSTRY AND PLACED VARIOUS
DEMANDS OF BANKS.
BANKS HAVE COME BACK TO APPRECIATE THAT SURVIVAL WITHIN
THE NEW E-ECONOMY DEPENDS ON EDELIVERING SOME OR ALL OF
THEIR BANKING SERVICES ON THE WEB WHEREAS CONTINUED TO
SUPPORT THEIR ANCIENT INFRASTRUCTURE.
THE CHANCE OF E-BANKING IS REDEFINING BUSINESS RELATIONS
AND ALSO THE MOST IN BANKS ARE PEOPLE WHO WILL REALLY
STRENGTHEN THEIR RELATION SHIP WITH THEIR CUSTOMERS.
WITH NONE DOUBT, THE INTERNATIONAL SCOPE OF E-BANKING
PROVIDES NEW GROWTH PROSPECTIVE AND NET BUSINESS IS
CATALYST NEW TECHNOLOGIES AND NEW BUSINESS METHOD.
HOWEVER, BANKS SQUARE MEASURE UNSURE CONCERNING
RESTRICTIVE FRAMEWORK FOR CONDUCTING THE E-BUSINESS AND
RESTRICTIVE AND TAXATION ISSUE FOR GOVERNING CYBER HOUSE
PRESENTS FORMIDABLE ISSUES.
IMPACT OF E-BANKING IN INDIA ISN'T NEVERTHELESS APPARENT.
SEVERAL INTERNATIONAL ANALYSIS FIRMS BELIEVE THAT E-
BANKING ADOPTION IN INDIA CLOSE TO FUTURE WOULD SLOW
COMPARED TO MAJOR ASIAN COUNTRIES.
INDIAN E-BANKING IS EMERGING, ALL ALTHOUGH IT'S QUICK
CHANGING INTO STRATEGIC NECESSITY FORMOST BUSINESS BANKS
AS COMPETITION WILL INCREASE FROM NON-PUBLIC BANKS AND
NBFC’S.
 OBJECTIVES OF THE STUDY
A STUDY ON CUSTOMERS SATISFACTION ON E-BANKING FACILITY
OF KOTAK MAHINDRA BANK.
TO STUDY THE REASONS FOR THE LIMITED USE OF E-BANKING
SERVICES.
TO CREATE AWARENESS AMONG CUSTOMERS TOWARDS E-
BANKING SERVICES.
TO STUDY AND TO MAKE E-BANKING USES AWARE VARIOUS E-
BANKING RISKS LIKE PHISHING , IDENTITY THEFT, FRAUDS OF
PLASTIC MONEY, TROJAN, MALWARE E.G.

REASERCHMETHOD
DESCRIPTIVE METHOD
THE TERM DESCRIPTIVE RESEARCH REFERS TO THE TYPE OF
RESEARCH QUESTION, DESIGN AND DATA ANALYSIS THAT WILL BE
APPLIED TO GIVEN TOPIC.
DESCRIPTIVE STUDIES, PRIMARILY CONCERN WITH FINDING OUT
“WHAT IS”, “WHERE IS”, HOW IS AND MAY ALSO GIVE DIFFERENT
PREFERENCE ACCORDING TO DEMOGRAPHIC FACTORS SUCH AS AGE,
GENDER, INCOME LEVEL, EDUCATION LEVEL.
THE STUDY HAS BEEN CONDUCTED WITH HELP OF PRIMARY
SECONDARY DATA. THE SECONDARY DATA COLLECTED WAS
REINFORCED WITH THE PRIMARY DATA COLLECTED WITH
RESPONDENTS.
A STRUCTURED QUESTIONNAIRE WAS USED FOR THE PURPOSE.
DATA FOR STUDY WAS COLLECTED FROM 100 RESPONDENTS. A
COVER LETTER ATTACHED TO EACH QUESTIONNAIRE EXPLAINED
THE OBJECTIVES OF SURVEY AND ASSURED RESPONDENTS
CONFIDENTIALLY OF THEIR RESPONSES AND VOLUNTARY NATURE
OF PARTICIPATION AND SURVEY.
 TYPES OF RISKS
ABSTRACT
INTERNET BANKING AND DIFFERENT MODES OF E-BANKING ARE A
BLESSING FOR BANKING AS WAY AS SPEED, CONVENIENCE AND
PRICE OF DELIVERY IS BOTHERED, HOWEVER ABOARD IT'S
BROUGHT SEVERAL RISKS. IT'S ADDITIONALLY CAUSED A
REPLACEMENT ORIENTATION TO RISKS AND EVEN NEW SORTS OF
RISKS. TECHNOLOGY PLAYS A MAJOR HALF EACH AS SUPPLY AND
POWER FOR MANAGEMENT OF RISKS.
ATTRIBUTABLE TO FAST CHANGES IN INFO TECHNOLOGY, THERE'S
NO DEFINITENESS EITHER WITHIN THE KINDS OF RISKS OR THEIR
MANAGEMENT MEASURES. E- BANKING MIGHT BEFORE LONG
CONVERT FROM A COMPLEMENTARY TO THE MOST SUPPLIER OF
ECONOMIC SERVICES AND PRODUCT. CONSEQUENTLY, A
POTENTIAL FAILURE OF A BANK COMING INTO THIS SECTOR WILL
HAVE VARIED CONSEQUENCES ON ITS FUTURE POSITION WITHIN
THE MARKET. THE BANK‟S STRATEGY OUGHT TO BE READJUSTED
SO IT MEETS THE NEW CHALLENGES WITH RISK BALANCE.

INTRODUCTION
THE FAST UNFOLD OF WEB BANKING EVERYWHERE THE GLOBE IS
ITS ACCEPTANCE AS A VERY PRICE EFFECTIVE DELIVERY CHANNEL
OF BANKING SERVICES AS COMPARED TO DIFFERENT EXISTING
CHANNELS. HOWEVER, WEB ISN'T ASSOCIATE IN NURSING
UNMIXED BLESSING TO THE BANKING SECTOR . BESIDE REDUCTION
IN PRICE OF TRANSACTIONS, IT'S ADDITIONALLY CAUSED A
REPLACEMENT ORIENTATION TO RISKS AND EVEN NEW SORTS OF
RISKS TO THAT BANKS CONDUCTING I-BANKING EXPOSE
THEMSELVES. REGULATORS AND SUPERVISORS EVERYWHERE THE
GLOBE SQUARE MEASURE INVOLVED THAT WHEREAS BANKS
OUGHT TO STAY ECONOMICAL AND PRICE EFFECTIVE,
THEY MUST BE AWAKE TO DIFFERING TYPES OF RISKS THIS TYPE
OF BANKING ENTAILS AND HAVE SYSTEMS IN SITU TO MANAGE
IDENTICAL. A VITAL AND GRACEFULNESS IS THAT TECHNOLOGY
PLAYS A MAJOR HALF EACH AS SUPPLY AND POWER FOR
MANAGEMENT OF RISKS. ATTRIBUTABLE TO FAST CHANGES
IN INFO TECHNOLOGY, THERE'S NO DEFINITENESS EITHER WITHIN
THE KINDS OF RISKS OR THEIR MANAGEMENT MEASURES. EACH
EVOLVE UNCEASINGLY. THE THRUST OF RESTRICTIVE ACTION IN
RISK MANAGEMENT HAS BEEN TO SPOT RISKS IN BROAD TERMS
AND TO CONFIRM THAT BANKS HAVE MINIMUM SYSTEMS IN SITU
TO DEAL WITH IDENTICAL WHICH SUCH SYSTEMS SQUARE
MEASURE REVIEWED ON A CONTINUAL BASIS KEEP WITH CHANGES
IN TECHNOLOGY.
THE RISKS IN E-BANKING SQUARE MEASURE AS FOLLOWS
1. OPERATIONAL RISK
OPERATIONS RISK ARISES FROM FRAUD, PROCESS ERRORS, SYSTEM
DISRUPTIONS, OR DIFFERENT OUT OF THE BLUE EVENTS LEADING
TO LEADING TO INABILITY TO DELIVER PRODUCT OR SERVICES.
THIS RISK EXISTS IN EVERY PRODUCT AND REPAIR OFFERED.
THE LEVEL OF DEALINGS RISK IS LITTERED WITH THE STRUCTURE
OF THE INSTITUTION‟S PROCESS ATMOSPHERE, AS WELL AS THE
KINDS OF SERVICES OFFERED AND THEREFORE THE COMPLEXNESS
OF THE PROCESSES AND SUPPORTING TECHNOLOGY .
BANKS FACE 3 MAIN KINDS OF OPERATIONS RISK
(I) VOLUME FORECASTS :
ACCURATE VOLUME FORECASTS HAVE WELL-TRIED TROUBLESOME
- ONE AMONGST THE KEY CHALLENGES ENCOUNTERED BY BANKS
WITHIN THE WEB ATMOSPHERE IS A WAY TO PREDICT AND
MANAGE THE AMOUNT OF SHOPPERS THAT THEY'RE GOING TO GET.
SEVERAL BANKS GOING ON-LINE HAVE CONSIDERABLY MISJUDGED
VOLUMES.
WHEN A BANK HAS INADEQUATE SYSTEMS TO DEAL WITH
DEMAND IT SHOULD SUFFER REPUTATIONAL AND MONEY HARM,
AND EVEN COMPROMISES IN SECURITY IF ADDITIONAL SYSTEMS
THAT SQUARE MEASURE INADEQUATELY ORGANIZED OR TESTED
SQUARE MEASURE BROUGHT ON-LINE TO MODIFY THE CAPABILITY
ISSUES.
(II) MANAGEMENT INFO SYSTEMS
BANKS MIGHT HAVE DIFFICULTIES IN GETTING ADEQUATE
MANAGEMENT INFO TO OBSERVE THEIR E-SERVICE, BECAUSE IT
ARE OFTEN TROUBLESOME TO ESTABLISH/CONFIGURE NEW
SYSTEMS TO CONFIRM THAT SUFFICIENT , PURPOSEFUL AND CLEAR
INFO IS GENERATED. SUCH INFO IS ESPECIALLY NECESSARY IN AN
EXCEEDINGLY NEW FIELD LIKE E-BANKING. BANKS SQUARE
MEASURE BEING INSPIRED BY THE FSA (FINANCIAL SERVICES
AUTHORITIES) TO CONFIRM THAT MANAGEMENT HAVE ALL THE
DATA THAT THEY NEED IN AN EXCEEDINGLY FORMAT THAT THEY
PERCEIVE WHICH DOESN'T CLOUD THE KEY INFO WITH
SUPERFLUOUS DETAILS.
III) OUTSOURCING
FINALLY, A MAJOR VARIETY OF BANKS PROVIDING E-BANKING
SERVICES SOURCE CONNECTED BUSINESS FUNCTIONS, E.G.
SECURITY, EITHER FOR REASONS OF PRICE REDUCTION OR, AS
SQUARE MEASURE TYPICALLY THE CASE DURING THIS FIELD, AS A
RESULT OF THEY ARE DOING NOT HAVE THE RELEVANT
EXPERIENCE IN-HOUSE. OUTSOURCING A MAJOR FUNCTION WILL
PRODUCE MATERIAL RISKS BY PROBABLY REDUCING A BANK‟S
MANAGEMENT OVER THAT OPERATE.
OUTSOURCING IS IN FACT NEITHER NEW NOR UNMANAGEABLE
HOWEVER BANKS OUGHT TO BE CONSCIOUS ON OUTSOURCING,
THAT ADDRESSES THESE RISKS.
2. SECURITY RISK
SECURITY RISK ARISES ON ACCOUNT OF UNAUTHORIZED ACCESS
TO A BANK‟ S IMPORTANT INFO STORES LIKE REGISTER, RISK
MANAGEMENT SYSTEM, PORTFOLIO MANAGEMENT SYSTEM , ETC.
A BREACH OF SECURITY MIGHT LEAD TO DIRECT LOSS TO THE
BANK.
FOR EXAMPLE, HACKERS OPERATIONAL VIA THE WEB MIGHT
ACCESS, RETRIEVE AND USE CONFIDENTIAL CLIENT INFO AND CAN
ALSO IMPLANT VIRUS. THIS MIGHT LEAD TO LOSS OF KNOWLEDGE,
STEALING OF OR CHANGE OF STATE WITH CLIENT INFO, DISABLING
OF A MAJOR PORTION OF BANK‟S INTERNAL ADPS SO DENYING
SERVICE, PRICE OF REPAIRING THESE ETC. DIFFERENT CONNECTED
RISKS SQUARE MEASURE LOSS OF NAME, INFRINGING
CUSTOMERS‟ PRIVACY AND ITS LEGAL IMPLICATIONS.
3. SYSTEM DESIGN AND STYLE RISK
APPROPRIATE SYSTEM DESIGN AND MANAGEMENT IS A VITAL
THINK ABOUT MANAGING VARIED TYPES OF OPERATIONAL AND
SECURITY RISKS. A BANK FACES THE DANGER THAT THE SYSTEMS
IT CHOOSES AREN'T SIMPLE OR ENFORCED. AS AN EXAMPLE, A
BANK IS EXPOSED TO THE DANGER OF A PAUSE OR SLOW-DOWN OF
ITS EXISTING SYSTEMS IF THE ELECTRONIC BANKING OR
ELECTRONIC CASH SYSTEM IT CHOOSES ISN'T COMPATIBLE WITH
USER NEEDS.

4. REPUTATIONAL RISK
REPUTATIONAL RISK IS THAT THE RISK OF OBTAINING IMPORTANT
NEGATIVE POPULAR OPINION, WHICH CAN LEAD TO A IMPORTANT
LOSS OF FUNDING OR CUSTOMERS. SUCH RISKS ARISE FROM
ACTIONS THAT CAUSE MAJOR LOSS OF THE GENERAL PUBLIC
CONFIDENCE WITHIN THE BANKS' ABILITY TO PERFORM
IMPORTANT FUNCTIONS OR IMPAIR BANK CLIENT RELATIONSHIP.
IT SHOULD ENSUE OWN ACTION OR THANKS TO THIRD PARTY
ACTION.
5. LEGAL /COMPLIANCE RISK
LEGAL RISK IS THAT THE RISK OF NON-COMPLIANCE WITH LEGAL
OR RESTRICTIVE NEEDS. THE LEGAL RISKS SQUARE MEASURE
DIRECTLY ASSOCIATED WITH THE ELECTRONIC BANKING AND
THAT THEY SQUARE MEASURE EXAGGERATED AS ITS USE IS
EXTENDED. THEY IN THE MAIN STEM FROM THE UNCERTAINTY
THAT EXISTS WITHIN THE LEGAL – REGULATORY FRAMEWORK
REGARDING THE ELECTRONIC BANKING
6. CONCEALING RISK
MONEY LAUNDERING IS THAT THE FOLLOW OF PARTAKING IN
MONETARY TRANSACTIONS SO AS TO HIDE THE IDENTITY, SOURCE,
AND/OR DESTINATION OF CASH, AND COULD BE A MAIN
OPERATION OF THE UNDERGROUND ECONOMY. CONCEALING IS
NAMED WHAT IT'S AS A RESULT OF THAT COMPLETELY DESCRIBES
WHAT TAKES PLACE - BLACK, OR DIRTY, CASH IS PLACE THROUGH
A CYCLE OF TRANSACTIONS, OR WASHED, SO IT COMES OUT THE
OPPOSITE FINISH AS LEGAL, OR CLEAN, MONEY.
7. STRATEGIC RISK
ON STRATEGIC RISK E-BANKING IS COMPARATIVELY NEW AND, AS
A RESULT, THERE WILL BE AN ABSENCE OF UNDERSTANDING
AMONG SENIOR MANAGEMENT REGARDING ITS POTENTIAL AND
IMPLICATIONS. FOLKS WITH TECHNOLOGICAL, HOWEVER NOT
BANKING, SKILLS WILL FIND YOURSELF DRIVING THE INITIATIVES .
E-INITIATIVES WILL UP RISE IN ASSOCIATE INCOHERENT AND
PIECEMEAL MANNER IN CORPORATIONS.
8. ALTERNATIVE RISKS
TRADITIONAL BANKING RISKS LIKE CREDIT RISK, LIQUIDITY RISK,
RATE OF INTEREST RISK, AND MARKET RISK MAY ADDITIONALLY
ARISE FROM ELECTRONIC BANKING AND ELECTRONIC CASH
ACTIVITIES, THO' THEIR SENSIBLE CONSEQUENCES IS ALSO OF A
UNIQUE MAGNITUDE FOR BANKS AND SUPERVISORS THAN
OPERATIONAL, REPUTATIONAL, AND LEGAL RISKS . THIS MIGHT BE
SIGNIFICANTLY TRUE FOR BANKS ENGAGED IN A VERY SORT OF
BANKING ACTIVITIES, AS COMPARED TO BANKS OR BANK
SUBSIDIARIES THAT FOCUS ON ELECTRONIC MEDIUM.
CREDIT RISK
GENERALLY, A MONETARY S CREDIT RISK ISN'T ACCUMULATED
BY THE INCONTROVERTIBLE FACT THAT A LOAN IS ORIGINATED
THROUGH ASSOCIATE E-BANKING CHANNEL . THE SUBSEQUENT
ASPECTS OF ON-LINE LOAN ORIGINATION AND APPROVAL TEND TO
CREATE RISK MANAGEMENT OF THE DISPOSAL METHOD MORE
DIFFICULT.
LIQUIDITY RISKS
LIQUIDITY RISK IS THAT THE RISK ARISING FROM A BANK‟S
INABILITY TO SATISFY ITS OBLIGATIONS ONCE THEY COME BACK
DUE, WHILE NOT ACQUISITION UNACCEPTABLE LOSSES, THOUGH
THE BANK MIGHT ULTIMATELY BE ABLE TO MEET ITS
OBLIGATIONS.
INTEREST RATE RISK
IT REFERS TO THE EXPOSURE OF A BANK‟S CONDITION TO
ADVERSE MOVEMENTS IN INTEREST RATES. BANKS SPECIALIZING
WITHIN THE PROVISION OF ELECTRONIC CASH MIGHT FACE VITAL
RATE OF INTEREST RISK TO THE EXTENT ADVERSE MOVEMENTS IN
INTEREST RATES DECREASE THE WORTH OF ASSETS RELATIVE TO
ELECTRONIC CASH LIABILITIES OUTSTANDING.
MARKET RISK
MARKET RISK IS THAT THE RISK OF LOSSES IN ON- AND OFF-
BALANCE SHEET POSITIONS ARISING FROM MOVEMENTS IN
MARKET COSTS, TOGETHER WITH EXCHANGE RATES. BANKS
ACCEPTIVE FOREIGN CURRENCIES IN PAYMENT FOR ELECTRONIC
CASH AREA UNIT SUBJECT TO THE CURRENT SORT OF RISK.
BUSINESS RISKS
BUSINESS RISKS ARE VITAL. GIVEN THE NOVELTY OF E-BANKING,
NO ONE IS AWARE OF A LOT OF REGARDING WHETHER OR NOT E-
BANKING CUSTOMERS CAN HAVE TOTALLY DIFFERENT
CHARACTERISTICS FROM THE NORMAL BANKING CUSTOMERS.
THEY WILL WELL HAVE TOTALLY DIFFERENT CHARACTERISTICS
E.G
9. CROSS BORDER PROBLEMS
ELECTRONIC BANKING AND ELECTRONIC CASH ACTIVITIES AREA
UNIT SUPPORTED TECHNOLOGY THAT BY ITS TERRIBLY NATURE IS
MEANT TO INCREASE THE GEOGRAPHIC REACH OF BANKS AND
CUSTOMERS. SUCH MARKET GROWTH WILL EXTEND ON THE FAR
SIDE NATIONAL BORDERS, HIGHLIGHT SURE RISKS. THOUGH BANKS
PRESENTLY FACE SIMILAR VARIETIES OF RISKS IN INTERNATIONAL
BANKING, IT'S VITAL TO NOTICE THAT THESE RISKS ARE
RELEVANT TO THE CROSS-BORDER CONDUCT OF ELECTRONIC
BANKING AND ELECTRONIC CASH.

RISK ASSOCIATED WITH E-BANKING SECTOR.

TABLE 1.SHOWING THE AGE OF RESPONDENTS

GENDER MALE FEMALE

AGE 21-30 23 10
 AGE 30-50 38 28
ABOVE 50 09 02
TOTAL 60 40

TABLE 1. SHOWS THE AGE AND GENDER OF THE RESPONDENTS.

AMONG THE RESPONDENTS MAJORITY ARE THE MALE AND THEY
ARE AGE BETWEEN 30 TO 50.BY THIS IT IS CLEAR THAT YOUNG
PEOPLE ARE VERY HUGE ATTRACTED BY THE E-BANKING COMPARE
TO OTHER RESPONDENTS. IN ADDITION, THE AGE BETWEEN 21-30
LITTLE HIGH ATTRACTIONS ON E-BANKING ACTIVITIES LIKE USAGE
OF ATM, DEBIT CARD, CREDIT CARD ETC.
INCOME LEVEL NO. OF RESPONDENTS
LESS THAN 25,000 25
25,001-50,000 33
50,001-1,00,000 20
1,00,000 AND ABOVE 22
TOTAL 100

TABLE 2. SHOWING THE ANNUAL INCOME OF THE RESPONDENTS.

AS PER THE TABLE 2. ANNUAL INCOME BETWEEN RS.25001 TO
50,000 IS HIGH IN NUMBERS. SO IT IS CLEAR THAT HAVING MIDDLE
INCOME ARE VERY HIGH AND ATTRACTED BY E-BANKING
ACTIVITIES. AND ALSO THE INCOME LEVEL LESS THAN RS.25,000
RESPONDENTS ARE ALMOST SAME AND IT INDICATES THAT
PEOPLE HAVING THIS INCOME QUITE LESS COMPARE TO
TRADITIONAL BANKING.

TABLE NO.3.REASONS TO VISIT THE BANK

REASONS NO. OF RESPONDENTS

TO MAKE DEPOSIT 15
TO ENQUIRE ABOUT THE BALANCE 28
TO WITHDRAWAL OF CASH 43
 TO DEPOSIT THE CHEAQ 14
TOTAL 100

TABLE 3 REVEALS THAT RETURN TO VISITING THE BRANCHES

DIFFERENT PEOPLE VISIT THE DIFFERENT PURPOSES. SOME
PURPOSES CAN FULFILLED WITHOUT VISITING THE BRANCH. SO
DECIDE HOW THE PURPOSES FOR WHICH THE CUSTOMERS VISIT THE
BRANCH CAN BE FULFILLED THROUGH E-BANKING. IT IS CLEAR
FROM THE ABOVE TABLE 43 RESPONDENTS WERE VISITING THE
BRANCH FOR WITHDRAWAL OF CASH .
28 RESPONDENTS VISIT THE BANK BRANCH FOR BALANCE
ENQUIRY OR GET A BANK SETTLEMENT AND REMAINING 18
RESPONDENTS WERE FOR TO MAKE DEPOSITS AND ANOTHER 14 FOR
DEPOSITING THE CHEQUES.

TABLE 4.SHOWING THE RESPONDENT’S OPINION OF OPERATIONAL

RISK
RISK FACTORS NO. OF RESPONDENTS
WEAKNESS IN DESIGN 22
LACK OF AWARENESS IN 16
TECHNOLOGY
 NEGLIGENCE BY CUSTOMERS 14
FRAUDULENT ACTIVITIES OF 48
EMPLOYEES
TOTAL 100

TABLE.4. SHOWS THE OPINION ABOUT OPERATIONAL RISK FROM

RESPONDENTS ARE THINK ABOUT THERE ARE FACTORS AND MOST
OF 48RESPONDENTS ARE FRAUDULENT ACTIVITIES FROM
EMPLOYEES ARE MORE WHILE OPERATING IN E-BANKING. WHERE
AS 14 RESPONDENTS WERE DUE TO NEGLIGENCE BY EMPLOYEES
AND OTHER 16 WERE DUE TO LACK OF TECHNICAL KNOWLEDGE
AND 22 WERE FACE-OPERATING RISK DUE TO WEAKNESS IN DESIGN.
 RISK FACTORS NO. OF RESPONDENTS

WEAKNESS IN DESIGN 22
LACK OF AWARENESS IN 16
TECHNOLOGY
NEGLIGENCE BY CUSTOMERS 14
FRAUDULENT ACTIVITIES OF 48
EMPLOYEES
TOTAL 100
TABLE 5.SHOWING THE RESPONDENT’S OPINION OF SECURITY RISK

THE TABLE 5.DISCLOSES THAT THERE ARE SECURITY RISK WHILE IN

E-BANKING ACTIVITIES REFERRED THAT MOST OF RISK FACTORS
LIKE., 16 RESPONDENTS SAYS THAT SUFFER FROM HIJACKING, 23
RESPONDENTS WERE FROM BACK DOORS AND 22WERE SNIFFING
AND SPOOFING AND 12RESPONDENTS WERE HIGHLY SUFFER FROM
SECURITY THREAT SHIFTING HARDWARE TECHNOLOGIES,ETC.
TABLE 6.SHOWING THE RESPONDENT’S OPINION OF LEGAL RISK
LEGAL RISK FACTORS NO. OF RESPONDENTS
SYSTEM DEFICIENCIES 21
SIGNIFICANT SECURITY 09
BREACH
PRIVACY PROTECTION 13
UNWANTED LITIGATION 42
TOTAL 100

AS PER TABLE.6. MAJORITY OF THE RESPONDENTS MENTIONED

THAT THERE IS NUMBER OF PROBLEMS AND RISKS WHILE
OPERATING E-BANKING. THERE IS REPUTATIONAL RISK OF
21RESPONDENTS OF E-BANKING NOT MEETING THE SYSTEM
DEFICIENCIES AND IN LEGAL RISK PRIVACY PROTECTION IS MAJOR
PROBLEM IN E-BANKING SERVICES I.E. 13 RESPONDENTS . WHERE
AS 42RESPONDENTS ARE UNDER THE LEGAL LITIGATION OF
UNWANTED FACTORS LIKE,THEFT ETC,
POPULATION
A POPULATION CAN BE DEFINED AS INCLUDING ALL PEOPLE OR
ITEMS WITH THE CHARACTERISTICS ONE WISHES TO UNDER
STAND. WE ARE SELECTED THE USERS OF KOTAKMAHINDRA BANK
KAKINADA CITY.
SAMPLE FRAME
FOR OUR RESEARCH PURPOSE WE ARE SELECTING THE
RESPONDENTS WHO ARE THE USERS OF E-BANKING IN KOTAK
MAHINDRA BANK.
RESEARCH TOOL
QUESTIONNAIRE CONSISTING OF CLOSED ENDED QUESTIONS. A
FORM CONTAINING A SET OF QUESTIONS WILL BE SUBMITTED TO
THE RESPONDENTS TO GAIN STATISTICAL INFORMATION.
UNSTRUCTURED QUESTION IN WHICH POSSIBLE ANSWERS ARE NOT
SUGGESTED, AND THE RESPONDENT CHOOSES FROM THE GIVEN
OPTIONS. THE QUESTIONNAIRE ALSO CONTAINS A SECTION WHICH
HAS CERTAIN FACTORS WHICH ARE RELATED TO THE LIKER SCALE.
SAMPLE SIZE
THE SAMPLE SIZE IS 200
SAMPLING TECHNIQUE
SIMPLE RANDOM TECHNIQUE
SAMPLING UNITS
THE CUSTOMERS OF THE KOTAK BANK
COLLECTION OF DATA
PRIMARY DATA
WE WOULD COLLECT THE DATA THROUGH QUESTIONNAIRE.
SECONDARY DATA
WE WOULD COLLECT THE DATA FROM RESEARCH PAPERS,
INTERNET AND INTRANET OF KOTAK BANK .

NEED OF THE STUDY

THE AIM OF THE INDUSTRY IS TO PRODUCE SECURITY AND
CONFIDENCE WITHIN THE ECONOMY. IF BANKS WERE ALLOWED TO
TRAVEL BANKRUPT AND SHOPPERS LOST SAVINGS; IT'D CAUSE
WIDESPREAD MONETARY PANIC AND PLENTY OF SHOPPERS WOULD
WITHDRAW THEIR SAVINGS AND HOLD AS MONEY.
WHILE EASY ACCESSIBILITY IS ONE AMONG THE VARIOUS
ADVANTAGES OF ON-LINE BANKING, IT CONJOINTLY MAKES
BANKING EXTREMELY CONVENIENT. ... MOREOVER, WITH MOBILE
BANKING POSSIBILITY OUT THERE FOR MANY BANKS, TRANSFERS
AND PAYMENTS BECAME EASIER. TRANSACTIONS IS COMPLETED
ON THE GO, WHETHER OR NOT YOU'RE STUCK IN AN EXCEEDINGLY
TRAFFIC CONGESTION OR WITHIN THE INTERIOR OF LABOR.

1. ACTIVITY REVIEW:
BUSINESS HOUSE OWNERS, ACCOUNTING WORKERS AND
DIFFERENT APPROVED STAFF WILL ACCESS ROUTINE BANKING
ACTIVITY LIKE DEPOSITS, CLEARED CHECKS AND WIRED FUNDS
QUICKLY THROUGH AN INTERNET BANKING INTERFACE. THIS EASY
REVIEW HELPS MAKE SURE THE SLEEK PROCESS OF ALL
BANKING TRANSACTIONS ON A COMMONPLACE, INSTEAD OF
WATCHING FOR MONTHLY STATEMENTS. ERRORS OR DELAYS IS
NOTED AND RESOLVED FASTER, DOUBTLESS BEFORE ANY
BUSINESS IMPACT IS FELT.
2. PRODUCTIVITY:
E-BANKING ENDS UP IN PRODUCTIVITY GAINS. AUTOMATING
ROUTINE BILL PAYMENTS, MINIMIZING THE NECESSITY TO
PHYSICALLY VISIT THE BANK AND ALSO THE ABILITY TO FIGURE
PRO RE NATA INSTEAD OF ON BANKING HOURS MIGHT DECREASE
THE TIME CONCERNED IN PLAYACTING ROUTINE BANKING
ACTIVITIES.
TO BOOT, ON-LINE SEARCH TOOLS, BANKING ACTIONS AND
DIFFERENT PROGRAMS WILL ALLOW WORKERS MEMBERS TO
ANALYSIS TRANSACTIONS AND RESOLVE BANKING ISSUES ON
THEIR OWN, WITHOUT INTERACTING WITH BANK STAFF. IN SOME
CASES, MONTH-END RECONCILIATIONS FOR MASTERCARD
TRANSACTIONS AND BANK ACCOUNTS IS MACHINE-CONTROLLED
BY VICTIMIZATION E-BANKING FILES.
3. LOWER BANKING COSTS:
BANKING RELATIONSHIPS AND PRICES SQUARE MEASURE USUALLY
SUPPORTED RESOURCE NEEDS. BUSINESSES THAT PLACE
ADDITIONAL DEMANDS ON BANKING STAFF AND WISH ADDITIONAL
PHYSICAL HELP WITH WIRE TRANSFERS, DEPOSITS, ANALYSIS
REQUESTS AND DIFFERENT BANKING ACTIVITIES USUALLY INCUR
HIGHER BANKING FEES. CHOOSING E-BANKING MINIMIZES
BUSINESS OVERHEAD AND BANKING EXPENSES.
4. REDUCED ERRORS:
UTILIZING E-BANKING REDUCES BANKING ERRORS. AUTOMATION
OF PAYMENTS, WIRES OR DIFFERENT CONSISTENT MONETARY
ACTIVITIES ENSURES PAYMENTS SQUARE MEASURE CREATED ON
TIME AND WILL FORESTALL ERRORS CAUSED BY KEYBOARD SLIPS
OR USER ERROR. TO BOOT, CHOOSING ELECTRONIC BANKING
ELIMINATES ERRORS THANKS TO POOR HANDWRITING OR
MISTAKEN DATA. IN SEVERAL CASES,
ELECTRONIC FILES AND DAILY REVIEWS OF BANKING KNOWLEDGE
IS ACCUSTOMED DOUBLE OR TRIPLE CHECK IMPORTANT
INFORMATION, THAT WILL INCREASE THE ACCURACY OF ECONOMIC
STATEMENTS.

5. REDUCED FRAUD:
INCREASED SCRUTINY OF COMPANY FINANCES THROUGH AUDITS
AND ANTI-FRAUD MEASURES NEEDS A HIGH LEVEL OF VISIBILITY
FOR ALL MONETARY TRANSACTIONS. HOPING ON E-BANKING
PROVIDES ASSOCIATE IN NURSING ELECTRONIC FOOTPRINT FOR
ALL ACCOUNTING PERSONNEL, MANAGERS AND BUSINESS HOUSE
OWNERS WHO MODIFY BANKING ACTIVITIES. E-BANKING OFFERS
VISIBILITY INTO BANKING ACTIVITIES, THAT MAKES IT MORE
DURABLE FOR BEHIND-THE-SCENES OR DISHONORABLE
ACTIVITIES TO OCCUR.

EXPECTED CONTRIBUTION OF STUDY

IT WILL CONTRIBUTE SIGNIFICANTLY, IN A VERY POSSIBLE MANNER
TO E-BANKING USERS, NON E-BANKING USERS & AND SOCIETY AS
THEY WILL BE AWARE OF THE BENEFITS AS WELL AS VARIOUS
RISKS & THREATS OF E-BANKING.
BENEFICIARIES
E-BANKING USERS AND NON E-BANKING USERS AND SOCIETY AT
LARGE ARE THE BENEFICIARIES AS WILL BE AWARE OF THE PROS
AND CONS OF THE E-BANKING.
SCOPE OF STUDY
THE SCOPE WOULD BE WIDE AS WE CAN COME ACROSS THE
BENEFITS AS WELL AS THE VARIOUS RISKS AND THREATS OF E-
BANKING. TO GAIN ACCURATE RESULTS FOR THE STUDY ,100
PEOPLE WERE GIVEN QUESTIONNAIRE TO KNOW HOW TO DECREASE
RISKS IN E-BANKING SYSTEM IN KOTAKBANK . THE SCOPE OF THE
STUDY LIMITED TO THE CUSTOMERS OF KOTAKBANK ,THE CITY OF
KAKINADA.
 CHAPTER - 2

LITERATURE REVIEW
ABSTRACT

ADVANCES IN ELECTRONIC SERVICE TECHNOLOGY HAVE CREATED

NICE OPPORTUNITIES LIKEWISE AS THREATS TO ORGANIZATIONS IN
NUMEROUS BUSINESS AND SERVICES SECTORS. IN AND OF ITSELF
BUSINESSES, EITHER VOLITIONALLY OR RELUCTANTLY, SQUARE
MEASURE MORE AND MORE HOLD THE NET AS CHANNEL SO AS TO
STAY COMPETITIVE OR GAIN MARKET SHARE. WITH EXPLICIT
RELATION TO E-SERVICES, ABSENCE OF CORRECT DATA ON
FACTORS THAT HAVE INFLUENCED USERS' BEHAVIOR TO ADOPT OR
USE E-SERVICES MIGHT MISLEAD A CORPORATION INTO ADOPTING
UNHELPFUL SOLUTIONS BECAUSE IT STRIVES TO ACCELERATE THE
IMPLEMENTATION OF E-SERVICES. THIS STUDY, SUPPORTED THE
DIFFUSION OF INNOVATIONS (DOI) THEORY LEVERAGED INTO THE
NET SETTING, INVESTIGATES FACTORS THAT INFLUENCE ADOPTION
AND USAGE OF E-SERVICE, ESPECIALLY, IN KINGDOM OF SAUDI
ARABIA. FACTORS WERE THROUGH EMPIRICAL OBSERVATION
TESTED AGAINST KNOWLEDGE COLLECTED FROM 651 PARTICIPANTS
MISTREATMENT SURVEY QUESTIONNAIRES . PERCEIVED
COMPLEXNESS WAS FOUND TO BE THE FOREMOST CONSIDERABLY
CONNECTED ISSUE MOVING E-SERVICE ADOPTION IN KINGDOM OF
SAUDI ARABIA, FOLLOWED SUCCESSIVELY BY PRIVACY AND
COMPATIBILITY. QUALITY OF THE NET AND ITS RELATIVE
ADVANTAGE ADDITIONALLY HAD A NOTABLE HAVE AN EFFECT ON
E-SERVICE USAGE AND ADOPTION IN KINGDOM OF SAUDI ARABIA.

1)DR.ABHA CHANDRA,(JULY2010), HAS CARRIED OUT

ON A RESEARCH ON “ANALYTICAL RESEARCH ON
INDIAN ONLINE BANKING AND USERS” PRIVACY” ,
GLOBAL JOURNAL OF ENTERPRISE INFORMATION
SYSTEM, VOL2 ISSUE .1
AN EMPHERICAL STUDY IS CONDUCTED TO EVALUATE THE
EXISTENCE AND FORMAT OF PRIVACY POLICIES OF DIFFERENT
BANKS OF INDIA IN CONDUCTING ONLINE BANKING THROUGH THEIR
WEBSITES. THE OBJECTIVES OF THE THIS PAPER IS TO THROW SOME
LIGHT ON THE STUDY , METHODOLOGY , AND IT’S RESULTS. THE
WEBSITES DISCLOSE PERSONAL INFORMATION OF THE USERS TO
THIRD PARTIES. WHICH MAY OR MAY NOT HAVE THEIR OWN
PRIVATE POLICIES, IS TO BE COUNTED AS ONE OF THE REASONS FOR
THE SAME. THIS STUDY ALSO FINDS THAT NO UNIVERSAL
STANDARD FORMAT FOR A PRIVATE POLICY HAS BEEN DESIGNED
AND DECLARED FOR BANKS IN INDIA YET. IT WILL BE VERY
HELPFUL FOR NET BANKING CONSUMERS , IF THERE IS AN
AUTHORITY TO MONITOR AND CONTROL THE PROPER FORMAT AND
POINTS INCLUDED IN THE PRIVATE POLICY FOR BANKS.
2) DOSPINESCU OCTAVIAN , RUSU DANIELA , “
ALEXANDRULOAN CUZA “ ,(2006) ,HAVE CARRIED OUT A
RESEARCH ON “ THE ADOPTION OF E – BANKING
SERVICES IN DEVELOPING COUNTRIES - THE ROMANIAN
CASE”. INFORMATION SYSTEM . VOL.2, PAGE NO.34 TO
67.
THE DEVELOPMENTS TAKING PLACE IN INFORMATION AND
COMMUNICATION TECHNOLOGY ARE AFFECTING THE FINANCIAL
INSTITUTIONS WORLDWIDE. THIS EVOLUTION HAD TRANSFORMED
THE WAY BANKS DELIVER THEIR SERVICES , USING TECHNOLOGIES
SUCH AS AUTOMATED TELLER MACHINES , PHONES , THE INTERNET
, CREDIT CARDS , AND ELECTRONIC CASH. IN THIS SCENARIO ,
BANKING IN ROMANIA HAD UNDERGONE SOME CHANGES. MANY
BANKS HAVE BEEN INVESTING INTERNET TECHNOLOGY IN ORDER
TO MAINTAIN A COMPETITIVE EDGE AND SATISFY THEIR
CUSTOMERS. THE INTERNET , PHONE , MOBILE OR ELECTRONIC
BANKING OFFERED IN THE ROMANIAN BANKING MARKET IS IN FULL
DEVELOPMENT PROCESS , AND THE BANKS HAVE TO WIN THE
CONFIDENCE THE INDIVIDUAL AND CORPORATE BODY CUSTOMERS ,
TAKING INTO ACCOUNT THE FACT THAT THE TRANSACTIONS THAT
ARE MADE IN THE ONLINE SYSTEM ARE PERCEIVED AS HIGHLY
RISKY, BUT THE LEVEL OF ACCESSIBILITY REGARDING THE
PERFORMING OF BANKING OPERATIONS STRAIGHT FROM THE
COMPANY OFFICE OR FROM HOME WITHOUT DEPENDING ON THE
OPENING HOURS OF PAY – OFFICES

DETERMINES A GROWING NUMBER OF CUSTOMERS TO RESORT TO

THIS KIND OF SERVICES.
3)DR.S.ARUMAGAPERUMAL, (JULY 2006), HAS CARRIED
OUT A RESEARCH ON “IMPACT OF CYBER – CRIME ON
VIRTUAL BANKING “. JOURNAL COMPUTER SCIENCE.
S.T.HINDU COLLEGE , NAGERCOIL-2.
THIS PAPER BASICALLY DEALS WITH THE ONLINE RISKS THAT THE
BANKS AND THEIR CLIENTS FACE DURING THE ONLINE
TRANSACTIONS THEY UNDERTAKE. AS MORE ORGANISATIONS
PROVIDE GREATER ACCESS FOR THEIR CUSTOMERS , PROFESSIONAL
CRIMINALS ARE SUCCESSFULLY USING PHISHING TECHNIQUES TO
STEAL PERSONAL FINANCES CONDUCT AND IDENTITY THEFT AT A
GLOBAL LEVEL. THE POPULARITY WHICH BANKING SERVICES HAVE
WON AMONG CUSTOMERS , OWING TO THE SPEED. CONVENIENCE
AND CONTINUOUS ACCESS THEY OFFER , IS LIKELY TO INCREASE IN
THE FUTURE. HOWEVER , SEVERAL ISSUES OF CONCERN WOULD
NEED TO BE PRO – ACTIVELY ATTENDED. WHILE MOST OF
ELECTRONIC BANKING HAS BUILT – IN SECURITY FEATURES SUCH
AS ENCRYPTION , PRESCRIPTION OF MAXIMUM MONETARY LIMITS
AND AUTHORIZATIONS, THE SYSTEM OPERATORS HAVE TO BE
EXTREMELY VIGILANT AND PROVIDE CLEAR CUT GUIDELINES FOR
OPERATIONS. ON THE LARGER ISSUE OF ELECTRONICALLY
INITIATED FUNDS TRANSFER , ISSUES LIKE AUTHENTICATION OF
PAYMENTS INSTRUCTIONS , THE RESPONSIBILITY OF THE CUSTOMER
SECRECY OF THE SECURITY PROCEDURE WOULD ALSO NEEDED TO
BE ADDRESSED.

SO FOR THE BETTER SECURITY MULTIFACTOR AUTHENTICATION IS

BEST TO MAKE THE VIRTUAL BANKING MUCH SAFER WITH HIGHER
SECURITY IN THE COMING YEARS.

4)DR.ASMA MUBAREK, (2004), HAS CARRIED OUT A

RESEARCH ON “ E – BANKING PRACTICES AND
CUSTOMER SATISFACTION A CASE STUDY IN BOTSWANA
“.INTERNATIONAL JOURNAL ON BANK MARKETING.
VOL.21,PG,94-103.
THIS RESEARCH INVOLVES THE STUDY OF FOUR COMMERCIAL
BANKS IN BOTSWANA, THESE BEING STANDARD CHATTERED BANK .
FIRST NATIONAL BANK , BARCLAYS BANK AND BANK OF BARODA.
ALL THESE BANKS ARE PROVIDING E – BANKING SERVICES TO
THEIR CUSTOMERS. THE USUAL E- BANKING SERVICES PROVIDE BY
BANKS ARE ACCOUNT MANAGEMENT , BILL PAYMENT AND
PRESENTMENT; NEW ACCOUNT OPENING ; CUSTOMER WIRE
TRANSFERS. INVESTMENT BROKERAGE SERVICES ; LOAN
APPLICATIONS, APPROVALS, OR ADVANCES ; BUSINESS TO BUSINESS
PAYMENTS ; EMPLOYEE BENEFITS / PENSION ADMINISTRATION ETC.
THE PAPER INCLUDES AN ANALYSIS OF CUSTOMERS. PERCEPTION
TOWARDS E BANKING SERVICES PROVIDED BY THE BANKS AND THE
CONSTRAINTS IN ACHIEVING IN CUSTOMER SATISFACTION . THE
FOCUS OF THE PAPER PARTICULARLY ON FOUR DELIVERY
CHANNELS NAMELY. AUTOMATED TELLER MACHINE , INTERNET
BANKING, TELE BANKING AND MANUAL BANKING. THE MAIN FOCUS
DONE ON INTERNET BANKING AS IT IS THE DELIVERY CHANNEL.
CONSUMER DELIVERY IS CHANGING PARTLY BECAUSE OF LESS
SPARE TIME. THE WAY OF USE FINANCIAL SERVICES IS CLASSIFIED
BY INDIVIDUALITY.

5)Factors Influencing the Adoption and Usage of on-

line Services in Kingdom of Saudi Arabia January
2010 Electronic Journal of data Systems in
Developing Countries 40(1) DOI: 10.1002/j.1681-
4835.2010.tb00283.x
THE NET, ONE AMONGST THE FOREMOST PROSPEROUS INNOVATIONS
WITHIN THE WORLD, HAS CREATED NICE OPPORTUNITIES LIKEWISE
AS THREATS FOR ORGANIZATIONS IN NUMEROUS BUSINESS AND
SERVICES SECTORS, COMPELLING THEM (EITHER VOLITIONALLY OR
RELUCTANTLY) TO SUPPORT THEIR MERCHANDISE OR DELIVER
THEIR SERVICES ‘ON LINE’ MISTREATMENT THE NET AS CHANNEL
(CHAU & LAI, 2003). PUBLIC AND PERSONAL ORGANIZATIONS
ACROSS THE GLOBE SQUARE MEASURE REALIGNING THEIR WAYS TO
REQUIRE ADVANTAGE OF THIS CHANCE AND OVERCOME THE
CHALLENGES TO THE METHOD THEY OPERATE, DELIVER SERVICES
AND CONTEND WITH ONE ANOTHER MISTREATMENT ON-LINE
SERVICES (CHAN & METAL, 2004). BOYER ET AL., (2002) HAVE
OUTLINED ON-LINE SERVICES AS “THE INITIAL LANDING ON THE
HOUSE PAGE TILL THE REQUESTED SERVICE HAS BEEN COMPLETED
OR THE ULTIMATE PRODUCT HAS BEEN DELIVERED AND IS FIT USE"