A

Synopsis Report
On

Indira Gandhi National Open

University Subject - M5-100-Finance

Name- Mrs. Abha Soni Instructor

Enrollment – 136451983 Dr. Archi Dubey

Study Center Number-1510

Pt. Ravishankar Shukla University Raipur
Indira Gandhi National Open University, New
Delhi
 1. Introduction

Online banking (or Internet banking) allows customers to conduct financial transactions
on a secure website operated by their retail or virtual bank, credit or building society.
With cybercafés and kiosks springing up in different cities access to the Net is going to be
easy. Internet banking (also referred as e banking) is the latest in this series of
technological wonders in the recent past involving use of Internet for delivery of
banking products & services. Internet research emphasized that Web is more important for
retail financial services Internet banking is changing the banking industry and is having the
major effects on banking relationships. Banking is now no longer confined to the branches
were one has to approach the branch in person, to withdraw cash or deposit a cheque or
request a statement of accounts. In true Internet banking, any inquiry or transaction is
processed online without any reference to the branch (anywhere banking) at any time.
Providing Internet banking is increasingly becoming a "need to have" than a "nice to have"
service. The net banking, thus, now is more of a norm rather than an exception in many
developed countries due to the fact that it is the cheapest way of providing banking services.

2. Company Profile of State bank of India:-

State bank of India is the nation‟s largest and oldest bank. Tracing its roots back some 200
years to the British East India Company (and initially established as the Bank of Calcutta in
1806), the bank operates more than 15,000 branches within India, where it also owns
majority stakes in six associate banks. State Bank of India (SBI) has more than 80 offices
in nearly 35 other countries, including multiple locations in the US, Canada, and Nigeria.
The bank has other units devoted to capital markets, fund management, factoring and
commercial services, credit cards, and brokerage services. The Reserve Bank of India owns
about 60% of State bank of India.

3. Literature Review

To-day, we cannot think about the success of a banking system without information
technology and communication. It has enlarged the role of banking sector in the
economy. The financial transactions and payment can now be processed quickly and easily.
The banks with the latest technology and techniques are more successful in the
competitive financial

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market. They have been able to generate more and more business resulting in their
greater profitability.
Various empirical and theoretical studies have been undertaken at the national and
international level to analyze the impact of internet banking and information and
communication technology (ICT) on banking sector, customers, and service quality
and payment system. The studies mainly focus upon internet banking impact on productivity
and profitability primarily due to core banking system, electronic fund transfer, real time
gross settlement system and electronic clearing services. From the customer angle the
studies primarily focus upon; why customers choose internet banking products and increase
in their level of satisfaction due to phone banking, mobile banking, internet banking,
website services, ATMs, etc. These services have not only improved the satisfaction level
of customers, but also helped in reduction of processing time and transaction time.
4. Objectives
The main objectives of the study
are:
 To understand the concept of Internet banking and importance, to bank as well
as customers.
 To get aware of various aspects of net banking
 To build up SWOT analysis of Internet banking of SBI
 To build up various solutions for drawbacks in net banking

4.1 Research Design

A research design is a master plane or model for the conduct formal
investigation. Once the formal investigation is decided, the research must
formulate the formal plane of the investigation. A research design is the
specification of method & procedure, for acquiring the information needed
for solving the problem .the formal investigation plane will concentrate on
selection of source of information
&the selection of method & procedure for gathering the data. Data gathering
from are prepared questionnaire are tasted, samples for investigation are planned.

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Exploratory:
All projects must start with exploratory research. This is primary phase and is
absolutely essential in order to obtain a proper definition of the problem at
hand. The major emphasis is a discovery of ideas & insight.

Descriptive:
The descriptive study is typically concerned with determining frequency with
which something occurs or variable very together this study is guided by an initial
hypothesis.

Casual:

This type of research is made for finding the cause & effect relationship.
Exploratory studies help in formulating hypothesis for further research. The
research design specifies the methods for data collection & data analysis.
The research is specially pinpointed that to carry out the research property.
 How the data would collect?
 What instrument for data collected would be used?
 What sample plane would be used?

4.2 Sampling Design:

Sample of 50 people was taken into study, and their data was
collected. To study the Project, a Simple Random Sampling technique
is used.

4.3 Data Collection:

A)Primary Data- through Questionnaire,
B) Secondary Data- through

Newspaper

, Journals

Internet,

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4.3 Scope Of The Study

With the modernization and globalization the bank has adopted all the changes and now all
the banks have started adopting the technologies in banking. So, it becomes necessary to
study the nature, growth and extend of E-banking services provided by SBI. The
present study is a modest attempt to know about customers‟ awareness regarding E-banking
services provided by SBI. So the findings will help to know the effective awareness
towards the E- banking services.

In India, there is less number of studies being conducted to identify how effectively
the online channels are used by banking industry to increase customer satisfaction. Hence,
this study throws light on the e-banking services provided by the banks in the study area and
this research study makes an attempt to analyze how banks are attracting the various
customers and how the customers are satisfied with the e-banking services provided by the
banks. This study will be helpful to draw up further policy for improving customer
satisfaction with e- banking practices and act as a secondary data for further research.

4.4 Limitation Of Study

In any research conducted there shall be some limitations associated with it. Hence ,for
the proper understanding of the project it is inevitable to specify the limitation of the study.

 The study was done in SBI bank and sample size of 50, the credibility of the project is
not assured.
 Personal bias and prejudice of the respondents could have affected the result of the study.
 Only certain statistical test could be applied to validate the result of the study.
 The study is based on quality and originality of secondary data taken through the
official website of SBI is considered as another limitation of study.

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First of all structured questionnaire was prepared which would comprise of

question which were be specifically designed to provide an inside view, which more

than helped to formulate hypothesis for the study that was to be conducted the period of

the months. Then the questionnaires were filled by the people and once the

questionnaire was filled, then the analytical part of the study was done. We analyze the

data and checked whether the objective of the study was attained or not. We also

expected to provide pictorial and graphical representation of all analysis made by us. In

order to enhance the authenticity, we would also go ahead and took the help of

secondary data i.e. Internet, newspaper, magazines, financial leaflets etc. This would

provide us useful information for the study.

4.5Future Plan

 Sensitisation of staff: Bank‟s aim is to sensitise the entire staff from Manager to

Messenger working in rural and semi-urban branches towards the programme.

 Special training programmes in SHGs are being conducted at 54 training centres

of the Bank in the country apart from State Bank Institute of Rural Development,

Hyderabad.

 Close liaison with NGOs: Operating functionaries at branch level and region level

are in close contact with NGOs in their area to take the movement ahead. For

the purpose, regular meetings are arranged with the NGOs and their support is

solicited.

 SHG cells: Special SHG cells have been opened at major branches.

 Lending to NGOs / Federations of SHGs: Lending to credible NGOs/ Federations of

SHGs on selective basis for on lending to SHGs is being encouraged.

 Sahayog Niwas: SBI has launched its Housing Loan product „SAHAYOG

NIWAS‟ meant for SHG members. Under the scheme formulated keeping the

socio economic
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 conditions of villages insight, housing loans are given to the SHG members

without any mortgage of house / land. Response to this product is very encouraging.

 SBI Life- Shakti: SBI Life, our insurance subsidiary, is the first to introduce a

life insurance scheme, especially designed for SHG members. Special feature of the

scheme is that entire premium amount paid by the member is refunded after

maturity, i.e., 10 years.

 Rural training institutes: To help the rural youth to stand on their feet, two

RUDSETI type training institutes have been established at Gulbarga and Gadag

in Karnataka State, to impart training in self employment to youth free of cost.

 SBI staff as SHPI: The main role of formation and nurturing of SHGs have

been played by NGOs who, apart from their fundamental role of social service, also

aim to make the poor economically self sufficient. But in SBI, our committed work

force is not lagging behind and a number of committed staff members have

worked hard to form and nurture SHGs on their own.

 Appreciation by Government: A number of our branches / Circles have also

received commendation and appreciation from various State Governments for doing

excellent job in SHG-Bank Credit Linkage programme.

 NABARD felicitated 15 SHGs at a function organized in New Delhi on 13th

September 2005.The function was presided over by the Hon‟ble Union Finance

Minister. Out of total 15 SHGs felicitated, 4 were financed by our branches, one each

from Orissa, Jharkhand, Madhya Pradesh and Uttaranchal.

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 5. Finding
1. 45% people are having current account .

2. There are People who are victim of fraud

3. The people are fully satisfied with the internet banking facility of SBI.

4. Internet banking of SBI is user friendly.

5. 55% respondents are using internet banking for saving their time

6. Recommendations & Suggestions:-

From the response of the individuals it was observed that the number of male users is more
than female users with respect to the use of internet banking services. It could be possible
that there may be a limited use of the internet banking services in case of females. So the
female gender should be made more & more aware of Internet banking benefits, ease,
convenience, precautions, risks, threats etc Internet banking users should be made more &
more aware of Internet banking risks & threats and also how to safeguard themselves
against the same by taking precautions & following:

6. Conclusion
Our economy is facing a wave of change with modern technologies penetrating into all
the sectors of manufacturing, trading and services which are now giving a makeover for
economy. This make over is creating a great effect on the banking sector today. The nature
of banking transaction has moved from the long queue at the bank counter to the small
screen that fits our hand

Banks began to use emerging technology to provide better qualities services to the
customers at less cost and greater speed. Electronic banking –the new face of banking made
it convenient for customers to make their transaction from any geographically diverse
place
.The banks now removed their traditional ways and introduced modern
concepts.

From my study on customer awareness on e-banking services provided by state bank

of India conducted in Ernakulam I concluded that majority of the customers are aware
and response of them is satisfactory with the e-banking services provided by state bank of
India.
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because of the utility created on time , place and cost by e-banking services , it accepted by
everyone. The better attitude of the bank makes it more acceptable .

7. Bibliography:-

 Research Methodology – C.R.KOTHARI (Second Edition)

 Marketing Management – PHILIP KOTHLER
 Gomez Clifford, “Banking Theory And Practice”.
 Abraham M M, “Modern Banking”.

8. Webliogarphy:-

www.sbi.com

www.onlinebanking.net

www.ehow.com