A

Project Report
On
Customer Awareness Towards
Internet Banking Services
AT
INDIAN OVERSEAS BANK

Submitted to Panjab University, Chandigarh

In partial fulfillment of the requirement for the award of degree of
MASTER OF COMMERCE
DEV SAMAJ COLLEGE FOR WOMEN FEROZEPUR CITY

Session (2020-2022)

SUBMITTED TO: SUBMITTED BY

ASSISTANT PROFESSOR , LOVELEEN KAUR
P.G. DEPARTMENT OF COMMERCE
DEV SAMAJ COLLEGE FOR WOMEN

1
 DECLARATION

I Loveleen Kaur, student of M.com 2nd Semester declare that i have done the project on
“Customer Awareness Towards Internet Banking At Indian Overseas Bank” has been
personally done by me under the guidance of Prof. Ms.Roopkamal Chawla at partial
fulfillment of M.com program during Academic Year-2020-22. All the data represented in
this project is True & Correct to the best of my knowledge & belief.

DATE: -

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 ---------------INDEX------------

Sr. Particulars Page No.

No
1. CHAPTER NO. 1
 Introduction 4-5
 Introduction about Internet Banking 6

 Various forms & Services of Internet Banking 7-15

2. CHAPTER NO. 2
 Global Perspective of Internet Banking 16-17
3. CHAPTER NO. 3
 Objective of study 18
 Research methodology 19

 Data analysis and Interpretation 20-31

5. CHAPTER NO. 4
 Findings 32
 Limitations of the study 32

 Suggestions 33

 Conclusion 34

CHAPTER NO- 1
INTRODUCTION

Indian Overseas Bank (IOB) is a major public sector bank based in Chennai (Madras),
without 3400 domestic branches, including 1150 branches in Tamil Nadu, 3 extension
counters , and eight branches and offices overseas as of 30 September 2014. Indian Overseas
Bank hence ISO certified in-house Information Technology department, which had
developed the software that its branches used to provide online banking to customers earlier.
The bank has achieved 100% networking status as well as 100% CBS status for its branches.
IOB also has a network of about 3300 ATMs all over India .The bank has taken a late leap
towards internet-enabled banking and data analytics by implementing Infosys finacle's latest

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rack of software executed by American technology company HPE and became the first public
sector bank to get the latest digital banking software, 10 suite package from Infosys.

IOB has branches in Singapore, Hong Kong, Colombo, Seoul, and Bangkok. It has
representative offices in Guangzhou, Vietnam, and Dubai. IOB also is part-owner of a joint
venture bank in Malaysia.

EVOLUTION
HISTORY OF INDIAN OVERSEAS BANK (IOB)
Indian Overseas Bank (IOB) was founded on February 10th 1937, by .M. C.T.M.
Chidambaram Chettyar. M c .t., as he was popularly known, was pioneer in many fields –
Banking, Insurance and Industry. IOB was founded with the twin objectives of special in
foreign exchange business and overseas banking. Beginning with United India Life
Insurance, he ventured into general insurance in the form of United India Fire and General
Insurance Company Ltd., and then the successful bank — the Indian Overseas Bank. He
also set up Travancore Rayons India’s first synthetic fiber unit, in Kerala.
Indian Bank, funded by Chettyar capital, was formed after the infamous Arthur bot crash.
M.C t. Chettiar became a director of the bank in 1914 and remained one till his death when
his son MC t succeeded him in 1930 and served on the board till 1940 and then again from
1945 to 1949 when his son, M.C t. became a director. Differences of opinion with the board
led to quitting it in 1950. With that ended the MC t family’s association with helping steer
the Indian Bank.

By the middle of the 19th century, capital started migrating to Ceylon, Burma and further
east, to expand their business in commodity trading. But while the were active in South and
Southeast Asia during this period banking facilities in their homeland, South India, continued
to be inadequate.
The Indian Overseas Bank, though thought of by some as a bank’, adopted from its very
inception an approach quite different to the Indian Bank’s in matters of business, customers
and staffing. Not only did it see helping Indians overseas as a priority, but at home it began to
look at India’s growing industrial sector, in which had played only a small role, as an area
where its presence should be. Indian Overseas Bank commenced operations simultaneously
in Madras, the chief town of Rangoon on February 10, 1937.

4
It was the bank that put the country’s name on the map of banking in the Far East, lending
assistance and prestige to hundreds and thousands of Indians abroad. In 1969, 15 years after
MCt’s death, IOB became one of the youngest among the 14 banks nation. In 1945 or 1946
IOB opened a branch in Colombo. In 1947, IOB opened a branch in Bangkok. Then IOB
added a branch each in Ipoh, and Malacca, all in Malaya. Some years later, in 1955, IOB
opened its first branch in Hong Kong. Others would follow.

In 1963 the revolutionary government in Burma nation Indian Overseas Bank's branches in
Rangoon, Mandalay, and Moulmein, which became People's Bank No. 4.[7]
In the 1960s, the banking sector in India was consolidating through the merger of weak
private sector banks with stronger ones. IOB acquired a number of local banks: Coimbatore
Standard Bank (ac 1963; one branch at Madras), Nanjimnad Bank (or Nanjianad Bank),
Coimbatore Bank.

IOB was one of the 20 major banks that were nationalized in 1969. On the eve of
Nationalization in 1969, IOB had 195 branches in India with aggregate deposits of Rs.67.70
Cr. and Advances of Rs.44.90 Cr.

INTRODUCTION ABOUT INTERNET BANKING

Electronic banking, also known as electronic funds transfer (EFT), is simply the use of
electronic means to transfer funds directly from one account to another, rather than by check
or cash. You can use electronic funds transfer to:

 Have your paycheck deposited directly into your bank or credit union checking
account.
 Withdraw money from your checking account from an ATM machine with a personal
identification number (PIN), at your convenience, day or night.
 Instruct your bank or credit union to automatically pay certain monthly bills from
your account, such as your auto loan or your mortgage payment.

5
 Have the bank or credit union transfer funds each month from your checking account
to your mutual fund account.
 Have your government social security benefits check or your tax refund deposited
directly into your checking account.
 Buy groceries, gasoline and other purchases at the point-of-sale, using a check card
rather than cash, credit or a personal check.
 Use a smart card with a prepaid amount of money embedded in it for use instead of
cash at a pay phone, expressway road toll, or on college campuses at the library's
photocopy machine or bookstores.
 Use your computer and personal finance software to coordinate your total personal
financial management process, integrating data and activities related to your account.

VARIOUS FORMS OF INTERNET BANKING:-

6

INTERNET BANKING:

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 Internet Banking lets you handle many banking transactions via your personal
computer. For instance, you may use your computer to view your account balance, request
transfers between accounts, and pay bills electronically.

Internet banking system and method in which a personal computer is connected by a network
service provider directly to a host computer system of a bank such that customer service
requests can be processed automatically without need for intervention by customer service
representatives. The system is capable of distinguishing between those customer service
requests which are capable of automated fulfillment and those requests which require
handling by a customer service representative. The system is integrated with the host
computer system of the bank so that the remote banking customer can access other automated
services of the bank. The method of the invention includes the steps of inputting a customer
banking request from among a menu of banking requests at a remote personnel computer;
transmitting the banking requests to a host computer over a network; receiving the request at
the host computer; identifying the type of customer banking request received; automatic
logging of the service request, comparing the received request to a stored table of request
types, each of the request types having an attribute to indicate whether the request type is
capable of being fulfilled by a customer service representative or by an automated system;
and, depending upon the attribute, directing the request either to a queue for handling by a
customer service representative or to a queue for processing by an automated system.

Types of Internet Banking:-

Currently, the following three basic kinds of internet banking are being employed in the
marketplace:-
 Informational: - This is the basic level of internet banking. Typically, the bank has
marketing information about the bank’s products and services on a stand-alone
server. The risk is relatively low, as informational systems typically have no path
between the server and the bank’s internal network. Informational Internet banking
simply means the bank provides basic information about its products and services,
much like a brochure.

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  Communicative:-
This type of internet banking allows some interaction between the banks system and
the customer. the interaction may be limited to electronic mail ,account inquiry, loan
applications or static file updates(name and address changes).because these servers
may have a path to the banks internal networks, the risk is higher with this
configuration than with informational systems.

 Transactional
This level of internet t allows customers to execute transactions. Since a path
typically exists between the server and the bank’s or outsourcer’s internal networks,
this is the highest risk architecture and must have the strongest controls. Customer
transactions can include accessing accounts, paying bills, transferring funds, etc.

GROWTH OF INTERNET BANKING

 Competition:-research studies show that competitive pressure is the chief driving
force behind increasing use of internet banking technology , ranking of cost reduction
and revenue enhancement, in second and third place resepectively.banks see internet
banking as a way to keep existing customers and attract new once to the bank .

 Cost efficiencies:-banks can deliver banking services on the internet at transaction

costs far lower than traditional brick and mortar branches.the actual costs to execute a
transaction will vary depending on the delivery channel used.rough estimates assumes
teller cost at Rs.1 per Transaction, ATM transaction cost at 45 paise, phone banking
at 35 paise,debit cards at 20 paise and internet banking at 10 paise per transaction
,these costs are expected to continue to decline .

 Geographical Research:-Internet Banking allows expanded customer contact

through increased geographical research and lower costs delivery channels.in facts
some banks are doing business exclusively via the internet- they do not have
traditional banking offices and only research their customers online .other financial
institutions are using the internet as an alternative delivery channels to research
existing customers and attract new customers.

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  Branding:-Relationship building is a strategic priority for many banks . internet
banking technology and products can provide a means for banks to develop and
maintain an on going relationship with their customers by offering easy access to a
brand array of product and services.By capitalizing on brand identification and by
providing a broad array of financial services, banks hope to build customer loyalty,
cross selling, and enhance repeat business.

Advantages of Internet Banking

 Online account is simple to open and easy to operate.

 It is quite convenient as you can easily pay your bills, can transfer funds between
accounts, etc. Now you do not have to stand in a queue to pay off your bills; also you do
not have to keep receipts of all the bills as you can now easily view your transactions.

 It is available all the time, i.e. 24x7. You can perform your tasks from anywhere and
at any time; even in night when the bank is closed or on holidays. The only thing you
need to have is an active internet connection.

 It is fast and efficient. Funds get transferred from one account to the other very fast.
You can also manage several accounts easily through internet banking.

Disadvantages of Internet Banking

 Understanding the usage of internet banking might be difficult for a beginner at the
first go. Though there are some sites which offer a demo on how to access online
accounts, but not all banks offer this facility. So, a person who is new, might face some
difficulty.

 You cannot have access to online banking if you don’t have an internet connection;
thus without the availability of internet access, it may not be useful.

 Security of transactions is a big issue. Your account information might get hacked by
unauthorized people over the internet.

 Password security is a must. After receiving your password, do change it and

memorize it otherwise your account may be misused by someone who gets to know your
password inadvertently.

 You cannot use it, in case, the bank’s server is down..

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Internet Banking Services:-

Most online banking sides offer these basic services:-

 View account balances, including checking, saving ,IRAs and securities.

 Access account history.
 Transfer funds between accounts
 Schedule future transfers.
 Pay bills electronically.
 Schedule automatic recurring bills payment.

 AUTOMATED TELLER MACHINES (ATM):

An automated teller machine or automatic teller machine (ATM) is an electronic

computerized telecommunications device that allows a financial institution's customers to
directly use a secure method of communication to access their bank accounts, order or make
cash withdrawals (or cash advances using a credit card) and check their account balances
without the need for a human bank teller (or cashier in the UK). Many ATMs also allow
people to deposit cash or cheques, transfer money between their bank accounts, top up their
mobile phones' pre-paid accounts or even buy postage stamps.

On most modern ATMs, the customer identifies him or herself by inserting a plastic card
with a magnetic stripe or a plastic smartcard with a chip, that contains his or her account
number. The customer then verifies their identity by entering a passcode, often referred to as
a PIN (Personal Identification Number) of four or more digits. Upon successful entry of the
PIN, the customer may perform a transaction.

 TELEPHONE BANKING:-
Telephone banking is relatively new electronic banking product. However, it is fast
becoming one of the most popular products. Customers can perform a number transactions
from the Convince of their own home or office; in fact from anywhere they can access to a
phone. Customers can do following:-

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  Automatic balance voice out for the default account.

 Balance inquiry and transaction inquiry in all

 Inquiry of all term deposit account.

 Cheque book request

This facility is available with help of Voice Response System (VRS).this system basically,
accepts only Tone dialed input. Like the ATM customer has to follow particular process, initially
account number and telephone pin are fed for the process to start. Also the VRS system provides
the user within additional facilities such as: changing existing password with the new desired,
information about new products, current interest rates, etc.

 Mobile Banking:-
Mobile banking is a system that allows customers of a financial institution to conduct a
number of financial transactions through a mobile device such as a mobile phone or tablet.
Mobile Banking comes in as a part of the banks initiative to offer multiple channel banking
providing convenience for its customers. free service that is accessible and viewable on the
monitor of mobile phone. Mobile phones are playing great role in Indian banking-Both
directly and indirectly. They are being used both as banking and other channels.

Features:-
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Mobile banking has become increasingly popular over the years. Banks offer mobile banking
to their clients as a convenience, but also because mobile banking saves these institutions
considerable money. Here are some features to consider with mobile banking:
 Saving money Convenience
 Security 
 Information
 Simplicity.


Mobile Banking Services:-

Mobile banking services may include:

Account information

1. Mini-statements and checking of account history

2. Alerts on account activity or passing of set thresholds
3. Monitoring of term deposits
4. Access to loan statements
5. Access to card statements
6. Mutual funds / equity statements
7. Insurance policy management

 DEBIT CARD:-Debit cards are also known as check cards. Debit cards look like
credit cards or ATM (automated teller machine) cards, but operate like cash or a personal
check. Debit cards are different from credit cards. While a credit card is a way to "pay
later," a debit card is a way to "pay now." When you use a debit card, your money is
quickly deducted from your checking or savings account.

Debit cards are accepted at many locations, including grocery stores, retail stores, gasoline
stations, and restaurants. You can use your card anywhere merchants display your card's
brand name or logo.

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 E – CHEQUE
An e-Cheque is the electronic version or representation of paper cheque.
 The Information and Legal Framework on the E-Cheque is the same as that of the
paper cheque’s.
 It can now be used in place of paper cheques to do any and all remote transactions.

 An E-cheque work the same way a cheque does, the cheque writer "writes" the e-
Cheque using one of many types of electronic devices and "gives" the e-Cheque to the
payee electronically. The payee "deposits" the Electronic Cheque receives credit, and the
payee's bank "clears" the e-Cheque to the paying bank. The paying bank validates the e-
Cheque and then "charges" the check writer's account for the check

BENEFITS OF INTERNET BANKING

 For Banks:

Price- In the long run a bank can save on money by not paying for tellers or for managing
branches. Plus, it's cheaper to make transactions over the Internet.

Customer Base- The Internet allows banks to reach a whole new market- and a well off one
too, because there are no geographic boundaries with the Internet. The Internet also provides
a level playing field for small banks who want to add to their customer base.

14
Efficiency- Banks can become more efficient than they already are by providing Internet
access for their customers. The Internet provides the bank with an almost paper less system.

Customer Service and Satisfaction- Banking on the Internet not only allow the customer to
have a full range of services available to them but it also allows them some services not
offered at any of the branches. The person does not have to go to a branch where that service
may or may not be offer. A person can print of information, forms, and applications via the
Internet and be able to search for information efficiently instead of waiting in line and asking
a teller. With more better and faster options a bank will surly be able to create better
customer relations and satisfaction.

CHAPTER NO -2

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 INTERNET BANKING GLOBAL PERSPECTIVE

The advent of Internet has initiated an electronic revolution in the global banking sector. The
dynamic and flexible nature of this communication channel as well as its ubiquitous reach
has helped in leveraging a variety of banking activities. New banking intermediaries offering
entirely new types of banking services have emerged as a result of innovative e-business
models. The Internet has emerged as one of the major distribution channels of banking
products and services, for the banks in US and in the European countries.

Initially, banks promoted their core capabilities i.e., products, services and advice
through Internet. Then, they entered the e-commerce market as providers/distributors of their
own products and services. More recently, due to advances in Internet security and the advent
of relevant protocols, banks have discovered that they can play their primary role as financial
intermediates and facilitators of complete commercial transactions via electronic networks
especially through the Internet. Some banks have chosen a route of establishing a direct web
presence while others have opted for either being an owner of financial services centric
electronic marketplace or being participants of a non-financial services centric electronic
marketplace.

The trend towards electronic delivery of banking products and services is occurring
partly as a result of consumer demand and partly because of the increasing competitive
environment in the global banking industry. The Internet has changed the customers'
behaviors who are demanding more customized products/services at a lower price. Moreover,
new competition from pure online banks has put the profitability of even established brick
and mortar banks under pressure. However, very few banks have been successful in
developing effective strategies for fully exploiting the opportunities offered by the Internet.
For traditional banks to define what niche markets to serve and decide what products/services
to offer there is a need for a clear and concise Internet commerce strategy.

Banking transactions had already started taking place through the Internet way back in 1995.
The Internet promised an ideal platform for commercial exchange, helping banks to achieve
new levels of efficiency in financial transactions by strengthening customer relationship,
promoting price discovery and spend aggregation and increasing the reach. Electronic
finance offered considerable opportunities for banks to expand their client base and

16
rationalize their business while the customers received value in the form of savings in time
and money.

Global Internet Banking industry is covered by the following sections:

 Internet Banking Scenario: It discusses the actual state, prospects, and issues
related to Internet Banking in Asia with a focus on India, US and Europe. It also deals
with the impact of Internet Banking on the banking industry structure.

 Internet Banking Strategies: It reveals the key strategies that banks must implement
to derive maximum value through the online channel. It also brings guidance for those
banks, which are planning to build online businesses.

 Internet Banking Transactions: It discusses how Internet has radically transformed

banking transactions. The section focuses on cross border transactions, B2B transactions,
electronic bill payment.

CHAPTER NO -3

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 OBJECTIVES OF THE STUDY

The present study focused on the perception of the Internet Banking user's preferences over
traditional banking located in FEROZEPUR.. The main objectives of the study include the
following:
 To study the level of awareness of respondents regarding
Internet Banking
 To identify the factors which influence the Internet Banking.
 To study the level of satisfaction of Internet Banking users.
 To identify the problems encountered in its effective penetration and to
suggest
 Suitable recommendations for the future of Internet Banking.
 Evaluates the depth and breadth of the research regarding my topic.

RESEARCH METHODOLGY

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 A systematic design, collection, analysis and reporting of data and findings relevant to a specific
marketing situation or problem is an important aspect of any relevant study. The objective of this
chapter is to describe the research procedure and methods that have been adopted for the successful
completion of the project.

Research Design
Research design constitutes the blue print for the collection, measurement and analysis of data.
The present study seeks to identify the extent of preference of a-banking over traditional banking
among the Internet Banking users. The research design is exploratory in nature.. For the
selection of the sample convenient sampling method was adopted and an attempt has been made
to include all the age groups and gender within the service class.

Objective of the research

It is said, "a problem well defined is half solved". This is the first step in the research process
i.e. to define the problem. The objective of study is based on the perceptions of Internet
Banking users.

Data design
The data design involves different aspects like the nature of the data, the data sources, the data
frequency and the tools used for the analysis of data

Nature of data
secondary data has been used to achieve the objectives of the study.

CHAPTER NO. 4

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 Table no. 1.1
DISTRIBUTION OF RESPONDENTS ACCORDING TO THEIR GENDER

Gender No of Respondents Percentage

Male 55 61

Female 35 39

Total 90 100

Percentage

39% Male
Female

61%

Interpretation:
From the above table, 61 percent of the respondents are male, 39 percent of
respondents are female.

Table no. 1.2

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 DISTRIBUTION OF RESPONDENTS ACCORDING TO THEIR
OCCUPATION

Occupation No of respondents Percentage

Business 20 22
Govt. Employees 10 11
Retired 35 39
Others 25 28

Total 90 100

Mode of occupation

28 22

Buisness
Govt Employee
Retired
11 Others

39

Interpretation:

The above table shows that, 11 percent of the respondents are Govt. Employees,22 percent of
the respondents are business person, 39 percent of the respondents are retired person and the
remaining is others.

Table no. 1.3

21
 DISTRIBUTION OF RESPONDENTS ACCORDING TO THEIR
AWARENESS ABOUT INDIAN OVERSEAS BANK

Status No. Of respondents Percentage

Yes 90 100

No 0 0

Total 90 100

N0 OF RESPONDENTS

90
80
70
60 N0 OF RESPONDENTS
50 90

40
30
20
0
10
0
YES NO

Interpretation:
From the above the 100 percent of the respondents are aware about the
Indian Overseas Bank.

Table no. 1.4

22
 DISTRIBUTION OF RESPONENTS ACCORDING TO THEIR
ACCOUNT HELD WITH INDIAN OVERSEAS BANK
No. Of respondents Percentage
Status
Below 1 year 14 16
1 – 3 Years 12 13

3 – 5 Years 35 39
Above 5 Years 29 32

Total 90 100

40
39%
35

30 32%

25
percentage
20 35 no of respondents
16% 29
15
13%
10
14
12
5

0
Below 1 Year 1-3 Years 3 - 5 Years Above 5 Years

Interpretation:
The above table shows that, 32 percent of the respondents are having above 5
years with the bank, 39 percent of the respondents are between 3-5 years and 13 percent of
the respondents are 1-3 years. Remaining 16 percent of the respondents are having account
below 1 year with the bank.

Table no. 1.5

23
 DISTRIBUTION OF RESPONDENTS ACCORDING TO THEIR
AWARENESS ABOUT THE INTERNET BANKING SERVICES
Status No. Of respondents Percentage

Yes 73 81

No 17 19

Total 90 100

180

160

140

120
81
100
Percentage
80 No of. Respondents

60

40
19
20

0
Yes No

Interpretation:
From the above table, 81 percent of the respondents are aware about the internet
banking services offered by the bank the remaining 19 percent if respondents are unaware of
it.

Table no. 1.6

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 DISTRIBUTION OF RESPONDENTS TO USAGE OF INTERNET
BANKING SERVICES:
Status No. Of respondents Percentage

Yes 69 76.66

No 21 23.34

Total 90 100

80

70 76.66%

60

50

40 Percentage
69 No . Of respondents
30

20 23.34%

10 21

0
Yes No

Interpretation:
The above table no. 1.7 shows that 76.66 percent of the respondents
are use the Internet Banking services and remaining the 23.34 percent of the respondents are
not using the Internet Banking services.

Table no. 1.7

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 DISTRIBUTION OF RESPONDENTS REASON FOR NOT USING
INTERNET BANKING SERVICES:
Status No. Of respondents Percentage

Confusing 31 35

Lack of information 20 22

Fear of security 24 27

Others 15 16

Total 90 100

No. Of Respondents
15
31

Confusing
Lack of information
Fear of security
Others

24

20

Interpretation:
From the above table, 20 respondents did not use this services due to lack of
information about this services, 24 respondents did not use this services due to fear of
security,15 respondents did not use this services due to some others reasons and for the
remaining 31 percent of the respondents did not use this services due to confusing in the
internet banking services.

Table no.1.8

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 DISTRIBUTION OF RESPONDENTS ACCORDING TO THEIR
CONVENIENT MODE OF BANKING
Status No. Of respondents Percentage
Branch 12 13
Internet banking 35 39
Phone banking 17 19
Mobile banking 10 11
ATM services 16 18
Total 90 100
80

70

60
39
50

40
Percentage
30 No. Of Respondents
19 18
20 13 35 11
10 17 16
12 10
0
Branch Internet Phone Mobile ATM services
banking banking banking

Interpretation:
From the above table, 18 percent of respondents are aware about the ATM
services, 19 percent of respondents are aware Internet banking services, 13 percent of
respondents are aware about branch banking and 11 percent of respondents are aware about
mobile banking, remaining 19 percent of respondents are aware about phone banking
services.

Table no. 1.09

DISTRIBUTION OF RESPONDENTS ACCORDING TO THE TRANSACTIONS

THEY MADE THROUGH INTERNET BANKING SERVICES:

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 Status No. Of respondents Percentage
Balance enquiry 10 11
Mini statement 15 16
Statement of account 20 22
Cheque based enquiry 25 28
Funds transfer 17 19
Tax payments 3 4
Total 90 100

No. Of Respondents

17 10
3
15
Balance of enquiry
Mini Statement
Statement of Account
Cheque based enquiry
Funds Transfer
Tax Payments

25
20

Interpretation:
From the above table,11 percent of respondents tried Balance Enquiry,16 percent
of respondents have checked their Mini Statement,22 percent of respondents tried account
statement,19 percent of respondents tried Funds Transfer, 4 percent of respondents tried for
Tax Payments and the remaining 28 percent of respondents have made cheque based enquiry
using internet banking services.

Table no. 1.10

DISTRIBUTION OF RESPONDENTS ACCORDING TO INTERNET

BANKING 1S CONVENIENT OR NOT

28
 Status No. Of Respondents Percentage

Yes 58 64

No 32 36

Total 90 100

Percentage of Respondents

36%

Yes
No

64%

Interpretation:
The above table show that, 64 percent of respondents says that Internet
Banking is convenient and remaining 36 percent of respondents says Internet Banking
services are inconvenient.

Table no. 1. 11
DISTRIBUTION OF RESPONDENTS ACCORDING TO THEIR
SATISFACTION

29
 Satisfied No. Of Respondents Percentage
Yes 69 76.67
No 21 21.33
Total 90 100

Percentage of Respondents

80
70
60
Percentage of Respondents
50
76.67
40
30
20
23.33
10
0
Yes No

Interpretation:
From the above table, 76.67 percent of respondents are satisfied which
services offered by bank, 23.33 of respondents are unsatisfied with the bank services.

Table no. 1.12

INTERNET BANKING POSITION IN PUBLIC SECTOR

Position No. Of Respondents Percentage
Good 40 44.5
Normal 45 50
Bad 5 5.5
Total 90 100

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 Position of E-banking in public sector

6%

Good
Normal
45%
Bad

50%

Interpretation:
From the above table, 44.50 percent of respondents are says position of
Internet Banking is good in public sector, 5.50 percent of respondents are says position of
Internet Banking services are very bad in public sector, 50 percent of respondents are says
position of Internet Banking is normal in public sector.

CHAPTER NO-5
MAIN FINDINGS

The analysis of data reveals that:

 Most of the people are aware of Internet Banking, either fully or partially.
 Advertisements play a major role in making people aware of Internet Banking.

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  ATMs are the most preferred choice followed by debit card, credit card, phone
banking, mobile banking and internet banking in terms of the frequency of usage.
 Amongst the various factors influencing the usage, all time availability is ranked as
the major motivating factor, followed by direct access, ease of use, nearness. Friends and
relatives and status symbol were rated as the least motivating factors.
 Easy processing, inexpensive and easy fund transfer.
 Insecurity seems to be a major problem in the usage of Internet Banking which arises
from the misuse and misplacement of the card.
 Amongst the reasons by the non-users of Internet Banking. Insecurity again was
considered the most de-motivating factor, followed by fear of hidden costs and no need.

 Out of the three hypotheses formulated in the study, one hypothesis proved to be true
i.e. the Internet Banking usage does not depend on whether the person is male or female
and other two hypotheses were rejected and it was concluded that Internet Banking
usage is influenced by the level of income and the age factor.

LIMITATIONS OF THE STUDY

Even though every possible effort has been made to make this project report
authentic, accurate and complete in itself, still number of limitations remained. Some of the
limitations are mentioned as under

 Reluctance on the part of respondents to provide an accurate account of their personal

details.

 Scope of the study being limited to Ferozepur, the findings of the study cannot be
generalized for the universe on the whole.

This study being based on the assumption that an interviewer is providing accurate and reliable
information may not hold true in every.

SUGGESTIONS

 The banks should come forward with more meaningful advertisements and
awareness campaigns to create awareness among customers regarding Internet Banking
services and to make Internet Banking popular among all the age and income group

 The banks should provide services such as account information and balances,
 Statement of account, transaction tracking, mailbox, check book issue, stop
payment, financial and customized information. Additional services such as fund

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 transfers. DD issue, standing instructions, opening fixed deposits, intimation of loss
of ATM cards should also be provided so that the frequency of usage is increased.
 Systems should be simple to use, fast and user friendly. Service should be
standardized so that wherever the solution is used the customer is familiar
with the procedure followed. Customers should have ready sources of advice,
whether this is through call centers, through publicity or through physical
presence.
 Internet Banking services should be designed to reduce the cost of transactions for
the financial institution as much as to deliver value to the customer. However, an
electronic banking solution can be designed as a low-cost bank account on a card
or telephone, with a number of features valuable to customers, such as cash
withdrawals and cash-back transactions, deposits, payments and transfers. Added-value
services can be provided such as loyalty programmers, person-to-person transfers,
airtime top up for mobile phones and government payments.
 Efforts should be made to provide the users of Internet Banking with an instant
solution at the time of using Internet Banking services such as in case of
password forgotten, ATM out of order etc.
 Some of the respondents at the moment is not using the services thoroughly due to
various hurdling factors like insecurity and fear of hidden costs etc. one aspect
that evokes fear in the minds of customers is that of security in online transactions.
Passwords no longer provide the expected authentication, as no one knows who keys
in the password. This leaves the customers in doubt as to whether their personal
information can be kept confidential or not. The message that all banks should
convey to their customers is: ' security technology is proven and safe and will never
be detrimental to their interests.' Moreover, the banks should make sure that the
message perpetually remains in the minds of the customers. However, the banks'
job does not end here; they have to work their way towards keeping their pledge.

CONCLUSION
Internet Banking does not involve any physical exchange of money, that is, all money transactions
takes place electronically, from one account to another, using the Internet. Money has always been
part of human emotions. And although it is difficult to imagine that all those years of savings are now
just a bunch of bits and bytes, it is becoming a distinct possibility.

The banking sector has undoubtedly been early adopter of technology. From computerization to
networking to ATMs and now Internet Banking, banks have moved up the value chain. Today, most

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of the banks are dependent on computers and IT for even basic functions.

The Indian banking sector woke up to the world of technology in early 1990s. Though in the beginning
the employees resisted computerization (especially in nationalized banks), the management finally
succeeded in convincing its employees about the benefits and need for adoption of technology. In
India, Internet Banking is in a nascent stage and people are still wary of the concept and its usage-the
biggest inhibitors being security and user identification/authentication. We can't say that Internet
Banking in India in its present form a huge success. The technology and concepts are gaining
acceptance. People are beginning to see the convenience and benefits of Internet Banking. It is believed
that in a few years' time it will not only be the acceptable mode of banking but, more importantly, be the
preferred mode of banking. In all this the key is faster penetration of the Internet in the home segment-
either through PCs or through other Internet access devices. Internet Banking as it is offers banks and
customers a huge opportunity by way of convenience and reach.

Internet Banking and financial programs face many hurdles. Many people fear the technology and
would rather let the bank teller or assistant do the needful. While some people stay Away from e -
banking on the assumption that it is more expensive than the traditional method, some feel
their finance statements are quite simple to require such high-tech banking techniques. As
the Internet revolution moves full swing, those countries that have not embraced Internet
Banking technology will face new hurdles as they seek to develop economies.

It was found during survey that very few studies have been conducted at the micro or local
levels. It is believed that micro level studies produce much accurate results.. Attempt has
been made to find out the attitude of users and non-users of Internet Banking.

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