Chapter one

Introduction to e.banking

The plastic card is replacing cheque. It comprises technology covering computerization. It may be on-line or 0ff-line. In internet banking system the bank has a centralized database that is web-enabled. and statement of accounts. branch location.banking in india The Reserve Bank of India constituted a working group on Internet Banking. Automated Teller Machine (ATM): ATM is designed to perform the most important function of bank. An ATM is an Electronic Fund Transfer terminal capable of handling cash deposits. The network which connects the various locations and gives connectivity to the central office within the organization is called intranet. there would be no physical identity for any branch. It would a borderless entity permitting anytime. there is no possibility of any unauthorized person getting into production systems of the bank through internet. The information is fetched from the bank's application system either in batch mode or off-line. In off-line the facilities are confined to that particular ATM assigned. Identification and authentication of the customer is through password. Credit Card is a post paid card. personal attendance of the customer. The buyers account is debited with the exact amount of purchases. e. There are debit cards. transfer between accounts. These networks are limited to organizations for which they are set up. An individual has . networking and security. ATMs used as spring board for Electronic Fund Transfer. inter-bank payment gateway and legal infrastructure. The communication is normally done through e-mail. The traditional branch model of bank is now giving place to an alternative delivery channels with ATM network. The on-line ATN enables the customer to avail banking facilities from anywhere. In this environment. loan and deposit calculations are provided in the banks website. cash withdrawals and pay bills. on the other hand. Any service can be selected and further interaction is dictated by the nature of service. the Internet Banking house gets money transferred to its account from the bank of the buyer. web server and application systems are linked over secure infrastructure. ATM itself can provide information about customers account and also receive instructions from customers .E-banking means any user with a personal computer and a browser can get connected to his bank -s website to perform any of the virtual banking functions. This system requires high degree of security and control. ii) Electronic Information Transfer System: The system provides customer. No identification of the customer is done. Every time a person uses this card. The group divided the internet banking products in India into 3 types based on the levels of access granted. Once the branch offices of bank are interconnected through terrestrial or satellite links. is a prepaid card with some stored value. balance enquiries. Any customer possessing ATM card issued by the Shared Payment Network System can go to any ATM linked to Shared Payment Networks and perform his transactions. banking hours restrictions and paper based verification. iii) Fully Electronic Transactional System: This system allows bi-directional capabilities. There is no interaction between the customer and bank's application system. In this system. The information is still largely of the 'read only' format. bank products and their features.ATM cardholders.specific information in the form of account balances. They are: i) Information Only System: General purpose information like interest rates. transaction details. anywhere and anyhow banking. The application systems cannot directly access through the internet. There exist facilities for downloading various types of application forms. It is operated by plastic card with its special features. SWIFT is a live example of intranet application. Credit Cards/Debit Cards: The Credit Card holder is empowered to spend wherever and whenever he wants with his Credit Card within the limits fixed by his bank. All the services that the bank has permitted on the internet are displayed in menu. Transactions can be submitted by the customer for online update. Debit Card.

Indian Railways has tied up with ICICI bank and you can now make your railway pass for local trains online. service providers and insurance companies. automatically. Nowadays. whereas in a traditional method. You can also buy railway and air tickets through Internet banking. entering your mobile number and the amount for recharge. which will link your two accounts. To pay your open an account with the issuing bank which gives debit card with a Personal Identification Number (PIN). ICICI Bank says that online bill payment service and fund transfer facility have been their most popular online services. you can report lost card online. called Smart Cards. it takes about three working days. Smart Cards allow thousands of times of information storable on magnetic stripe cards. the bank does not charge customers for online bill payment. Customers can send money anywhere in India. However if you have your demat account with independent share brokers. he enters his PIN on shops PIN pad. customers can not only pay their credit card bills online but also get a loan on their cards. Recharging your prepaid phone Now just top-up your prepaid mobile cards by logging in to Internet banking. you can shop online and the payment is also made conveniently through your account. some banks even give you the facility to purchase mutual funds directly from the online banking system. Shopping With a range of all kind of products. credit card and insurance premium bills as each bank has tie-ups with various utility companies. The bank never faces a default because the amount spent is debited immediately from the customers account. Nashik. The pass will be delivered to you at your doorstep.either Master Card or VISA that validates the PIN and finds out from the issuing bank whether to accept or decline the transactions. Smart Card: Banks are adding chips to their current magnetic stripe cards to enhance security and offer new service. mobile phone. Railway pass This is something that would interest all the aam janta. . these cards are highly secure. Bill payment service You can facilitate payment of electricity and telephone bills. Surat and Pune. In addition. If you lose your credit card. then you need to sign a special form. You can also set up standing instructions online to pay your recurring bills. Fund transfer You can transfer any amount from one account to another of the same or any another bank. most leading banks offer both online banking and demat account. Generally. more reliable and perform multiple functions. you need to mention the payees's account number. They hold a large amount of personal information. across the country. You can avail the following services through E-Banking. The transfer will take place in a day or so. Thane. Credit card customers With Internet banking. By just selecting your operator's name. Moreover. Investing through Internet banking You can now open an FD online through funds transfer. When he makes a purchase. The customer can never overspend because the system rejects any transaction which exceeds the balance in his account. Once you login to your account. all you need to do is complete a simple one-time registration for each biller. it dials the acquiring bank system .Now investors with interlinked demat account and bank account can easily trade in the stock market and the amount will be automatically debited from their respective bank accounts and the shares will be credited in their demat account. from medical and health history to personal banking and personal preferences. your phone is again back in action within few minutes. When the card is slurped through the electronic terminal. his bank and the branch. But the facility is limited to Mumbai.

for example. and costs associated with using online banking. If the fund transfer has to be made outstation. you get quarterly statements from the bank. "There are many advantages of online banking. Security Precautions Customers should never share personal information like PIN numbers. the bank would demand outstation charges. At Bank of America. is the term that describes all transactions that take place among companies. Customers are advised not to provide sensitive account-related information over unsecured e-mails or over the phone. it will be absolutely free for you. By 2000. It is convenient. banks offered e-banking. First conceptualized in the and eBay." Through Internet banking.banking The History of E-Banking Electronic banking. stunted growth. Also ensure that the logged in session is properly signed out. and as many times as you want to. and individuals and their banking institutions.Advantage of Internet banking As per the Internet and Mobile Association of India's report on online banking 2006. some banks offered customers electronic banking in 1985. e-banking grew alongside the Internet.S. based on trailblazing companies such as America Online. Take simple precautions like changing the ATM PIN and online login and transaction passwords on a regular basis. there are no geographical barriers and the services can be offered at a miniscule cost. Amazon. Where in a traditional method. It took widespread adoption of electronic commerce. 80 percent of U. However. The Internet explosion in the late-1990s made people more comfortable with making transactions over the web. where the bank does not have a branch. Despite the dot-com crash. including employees of the bank. you can check your transactions at any time of the day. While financial institutions took steps to implement e-banking services in the mid-1990s. History of e. it took 10 years to acquire 2 . the lack of Internet users. or e-banking. many consumers were hesitant to conduct monetary transactions over the web. Whereas with the help of online banking. the PIN and/or passwords should be changed immediately and memorised before destroying the mailers. Customer use grew slowly. to make the idea of paying for items online widespread. It is important that documents that contain confidential information are safeguarded. it isn't bound by operational timings. organizations. passwords etc with anyone. PIN or password mailers should not be stored.

Significance y Customers who use e-banking tend to be more profitable. However. The benefits are too great to turn back. adults and 30 percent in the United Kingdom bank online. Warning While a number of industry and governmental forces are combining to fight Internet fraud.S.1 million electronic bill payments. require less customer support and have lower attrition rates than offline consumers. Online banking customers who use online bill pay and e-bill services are happier with their banks. Benefits y E-banking offers consumers and organizations many benefits. more than 20 percent of its customer base. loyal. a report by Gartner Group estimated that 47 percent of U. a significant cultural change took place after the Y2K scare ended. such as bill payment across industries. these benefits are huge.2 million online relationships globally. money transfer and mobile e-banking using cell phones and hand-held devices.000 online banking customers.P. As financial institutions continue to develop online banking. including small businesses. Bank of America customers executed a record 3. larger national institutions.5 million online banking customers. Active online banking users not only show greater loyalty to their bank. In comparison. which translates into deepened relationships.million e-banking customers. Wells Fargo had 2. Online customers also maintain higher balances. such as Citigroup claimed 2. including 24/7 access to accounts and services. In 2009. customers are using more services. while J. In October 2001. Online customers proved more loyal and profitable than regular customers. despite worries about security. . and willing to refer their bank to friends and family than do traditional banking customers. Morgan Chase estimated it had more than 750. but they almost always carry higher balances. In an age where even the largest financial institutions are willing to fight for every single customer. Bank of America became the first bank to top 3 million online banking customers. In 2001. financial institutions continue to invest heavily in online services. totaling more than $1 billion.

such as Bank of America and Umpqua Bank are borrowing from social media channels. banks. . less than half the adults using the Internet bank online. podcasting.S. Despite the resources banks are pouring into web services and the popularity of ebanking among users. webcasts and other interactive tools.Potential y Many U. offering social networking. This gap between people online and e-banking users represents great potential for financial institutions.


Chapter 3 Company profile .

One among the few Banks to receive the World Bank loan for technological upgradation and training. along with 13 other major banks was nationalized and is now a Public Sector Bank constituted under the Banking Companies (Acquisition & Transfer of Undertakings) Act.3 crores for augmentation of Tier-II Capital under Financial Sector Developmental project in the year 1995. Smart card at selected branches in Mumbai. Credit card in rural India known as "DENA KRISHI SAKH PATRA" (DKSP). Under the provisions of the Banking Regulations Act 1949. y y y y Dena Bank has been the first Bank to introduce: Dena Bank has been the first Bank to introduce: y y y y y Minor Savings Scheme.72. 1938 by the family of Devkaran Nanjee under the name Devkaran Nanjee Banking Company Ltd It became a Public Ltd.180 Crores in November 1996.Dena Bank was founded on 26th May. in addition to the business of banking. . Milestones y One among six Public Sector Banks selected by the World Bank for sanctioning a loan of Rs. Introduced Tele banking facility of selected metropolitan centers.13 crores in November 1996. Company in December 1939 and later the name was changed to Dena Bank Ltd. In July 1969 Dena Bank Ltd. Maiden Public Issue of Rs.92. Launched a Bond Issue of Rs. Mumbai. Drive-in ATM counter of Juhu. Customer rating system for rating the Bank Services. the Bank can undertake other business as specified in Section 6 of the Banking Regulations Act. 1949. 1970.

Our Board of Directors. Staff .Dena Bank. and Our General Managers mission DENA BANK will provide its customers. the Bank can undertake other business as specified in Section 6 of the Banking Regulations Act. This section gives information on the Historyof Dena Bank. our Mission Statement. Community ± economic growth Vision DENA BANK will emerge as the most preferred Bank of customer choice in its area of operations. Shareholders .premier financial services of great value. in July 1969 along with 13 other major banks was nationalized and is now a Public Sector Bank constituted under the Banking Companies (Acquisition & Transfer of Undertakings) Act. our Logo.superior financial returns.positive work environment and opportunity for growth and achievement. 1949. Under the provisions of the Banking Regulations Act 1949. 1970. in addition to the business of banking. by its reputation and performance .

only our commission will be waived. It was the desire of the founding fathers of the Bank that the Bank should be a symbol of prosperity for all its clients. Free of commission Demand Drafts/ MT/ Pay Orders up to an aggregate amount of Rs. dedication and the drive towards customer satisfaction. 10. The account holder has to bear the commission of the Agent bank in addition to postage & out of pocket expenses. Actual Postage & out of pocket expenses shall be borne by the accountholder. according to Hindu mythology. the Goddess of Wealth. Free cheque books facility 2.000/ per month on the centres where we have branches. Where we have no branch. 25.000/per month OR Free collection of outstation cheques up to Rs. 10. The contemporary 'D' in the logo reflects the dynamism. and the logo represents this promise.000/- Concessions offered 1.Logo The logo of Dena Bank depicts Goddess Lakshmi. Types of deposit 1)Premium Savings Account Scheme: Minimum Balance: Quarterly average balance of Rs. .

1. one lac balance in his account then the concessions will be increased proportionately in multiples of Rs. Minimum amount of monthly installment Rs. 4)Dena Recurring Deposit Scheme: enables the depositor to save in fixed monthly installments. The account holder has to bear the commission of the agent bank in addition to postage and out of pocket expenses. only our commission will be waived. Where we have no branch. This scheme is ideally suited for young salaried people to inculcate a regular and compulsory saving habits. You can choose yearly. Your money is never idle and your receipt of your interest income can be planned according to your needs. If the account holder maintains more than Rs.per month on the centre where we have branches. quarterly or even monthly interest payments according to your needs of income. One Lac.50/. By putting away only a little amount every be maintained at any point of time Monthly Average Balance:Rs. Actual postage and out of pocket expenses shall be borne by the account holder. 5. As the old adage goes "little drops of water. One can choose different maturity plans depending on one's saving goals desired.00 lac per month Free collection of outstation cheques up to Rs. 1 Lac per month 1 Free of commission Demand Drafts/MT/Pay Orders up to an aggregate amount of Rs. The Scheme is optional. 2. 50000/. the depositor gets a tidy lump-sum amount of principal plus interest at the end of the chosen period. The above facility is subject to a maximum of 10 DDs / MTs / Pay Orders/ Outstation cheques per month. . makes a mighty ocean". half-yearly. Further amount in multiple of Rs. If the Minimum balance / Monthly average balance is not maintained penalty will be charged. 3) Dena Fixed Deposit Scheme Dena Fixed Deposit Scheme allows you to choose the intervals of receiving your interest.2) Premium Current Account Scheme: Minimum Balance: rs 5000/. Duration :The deposit is accepted under this scheme for any period from 7 days to 10 years.

Fund Transfer (Self / Third Party within Dena Bank) Funds Transfer (Third Party . This is the highest level of security available for communication and transactions on the Internet. Mini Statement (Last 9 transactions). Detailed Statement of Account.Dena e-Connect( electronic Banking) is the Internet Banking Service provided by Dena Bank for the customers of its Core Banking (CBS) Branches. Cheque Book inquiry. hassle free means to avail Banking Services by a few keystrokes on your keyboard. Online payment of Maharashtra Sales Tax (VAT) Security: How safe is DenaiConnect ±Internet banking? Dena bank employs a range of Security features for its Online Banking Service to provide you a very secure Internet banking experience ‡ Firewall : Virtual electronic fence that prevents unauthorized access to Dena Bank Server. VeriSign. E-payment of Direct Taxes and Indirect Taxes. It offers you an easy. . enterprises. Balance Inquiry. Inc. Outward cheque inquiry. is the leading provider of trusted infrastructure services to websites.Inter Bank using RTGS / NEFT facility). Net-Banking is the most comfortable channel for you to experience round the clock banking from any part of the world. electronic commerce service providers and individuals. SSL also ensures information is sent to the correct place and that it is not tampered with. ‡ User Id and Passwords : Two levels of password security. one for Sign-on and other for Transaction. ‡ Digital Certificate: Dena Bank Internet banking site is Verisign certified. It means that you will not have to go to your bank to avail certain basic Banking facilities. ‡ Encryption: Your data and message travel in a 128-bit SSL mode encryption technique required for secure e-commerce and confidential communications.

‡ If you have logged into Internet banking and have not used the application for 5 minutes. ‡ In case the transaction password is entered wrongly for consecutive three times the transaction password will be disabled thereby restricting unauthorized access.‡ Unauthorized Access: ‡ In case the sign-on password is entered wrongly for consecutive three times the sign-on password will be disabled thereby restricting unauthorized access. . in case you left your computer unattended. without having logged out of Internet banking. the system automatically logs you out. This is to prevent any unauthorized access to your account.

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