A

SYNOPSIS REPORT
ON
ELECTRONIC PAYMENT CURRENT SCENARIO AND SCOPE FOR
IMPROVEMENT

AT
HDFC BANK LIMITED

Submitted
By
DURSHETTI VIVEK
H.T.NO: 1325-20-672-130
PROJECT SUBMITTED IN PARTIAL FULFILLMENT FOR THE AWARD OF DEGREE
OF

MASTER OF BUSINESS ADMINISTRATION

Department of Business Administration

AURORA’S PG COLLEGE
RAMANTHAPUR
(Affiliated to Osmania University)
2020-2022
 Aurora’s PG College , Ramanthapur
Department of Management

SYNOPSIS

Title of the Project : ELECTRONIC PAYMENT CURRENT

SCENARIO AND SCOPE FOR IMPROVEMENT

Student Name : DURSHETTI VIVEK

Hall Ticket Number : 1325-20-672-130

Signature of the Student :

Signature of the Guide :

 INDEX
. No. CONTENTS Page No

1 INTRODUCTION

2 NEED FOR THE STUDY

3 OBJECTIVES OF THE STUDY

4 SCOPE OF THE STUDY

5 RESEARCH METHODOLOGY

6 REVIEW OF LITERATURE

7 INDUSTRY PROFILE

8 COMPANY PROFILE

9 PROPOSED OUTCOMES

10 LIMITATIONS OF THE STUDY

11 CHAPTERISATION

12 BIBLIOGRAPHY
INTRODUCTION

Electronic payment has gained a lot of curiosity among bankers and more and more of
them in India have started to implement the same in their day to day working. This new
way of doing business is more efficient and convenient to both the banking system and
the customers.

This research study has been made with an effort to study the prospects of Electronic
payment system in the Indian banks and financial institutions. A key aspiration of the
study is to find out the factors that influence the implementation of Electronic payment in
the country.

Past literature on use of technology, Electronic payment and customer bank relationship
have been studied to get an insight on the various models and theories related to the
subject. These theories and models have provided with many aspects of use of technology
in banking that have been utilized in the study.

The data for the research has been collected through questionnaires which were given to
the employees of the Union Bank of India .

The bank has developed an electronic system which had improved the Bank-Customer
relationship. It is also advised that the bank should enhance the knowledge of its
employees about the Electronic payment and update all the legal codes, necessary to grow
in the industry

Latest developments in information technology have presented a range of opportunities with

respect to the ways through which information can be accessed and exchanged.
Technology today provides a number of ways today through which information can be stored
and its access can be controlled. Technological advancements have also made the industries
across the world to continuously evolve to these new and rapid developments (Cummins, J.
David; Rubio-misas, Maria; Zi, Hongmin, 2004) and banking sector is no exception.
In fact Banking sector has always been more receptive to adopt latest technologies in order to
provide better and convenient facilities to their customers (Davenport, T. H, 1993).
In the present scenario the banking sector can be seen as extremely competitive and turbulent
economic conditions worldwide has added to the pressure on the industry to develop new
ways to attract customers and serve them better (Irechukwu, G., 2000). Moreover, as
customers are getting accustomed to the services and facilities they get through the use of
latest technologies like internet, mobile networking and social media they want to utilize
these mediums to get maximum convenience. Business customers want to exploit these
sources to get ease in their business transactions and also increase their business and profits
through easier and more importantly faster transactions (Dixit, 2001).
Technology has always been a critical part of banking services. Automatic teller machines
(ATM) were the first popular Electronic payment options for customers.
Next arrived, the phone banking facilities, through which customers could interact with banks
using telephone and perform transactions with banks computer systems. Later with the
growth of internet services, internet banking using internet connection facility became
popular.
However, Electronic payment can be aptly defined as the mother of all IT based banking
facilities. Electronic payment can be described as the utilization of the latest information
technology infrastructure for providing various financial services by financial institutions.
Electronic payment provides advantages like twenty four hour access to banking facilities and
account information. These facilities can be availed through user friendly interfaces that are
easy to understand and operate (yabi, I, 1997).
NEED OF STUDY
Now every bank wants to attract the customers and for this purpose the offers the latest
facilities so i seems that no any bank will survive in the market if he fails to provide up date
facilities.
 To know the customers perception toward the E-banking service.
 I am interested in E-BANKING that I am taken this topic.
OBJECTIVES OF THE STUDY:-
The main objectives of the study are:

 To study the awareness level of service class people regarding E-Banking.

 To find out the frequency and the factors that influences the adoption of E-
Banking services.
 To measure the satisfaction level of people.
 To understand the problems encountered in by service class people while
using E-Banking services(ATM, Phone banking, etc)
SCOPE OF THE STUDY
Every research is conducted under some constraints and this research is not an
exception. Limitations of this study are as follows:-

 There were several time constraints.

 The study is limited to areas of HYDERABAD only.
 The sample size of only 100 was taken from the large population for the
purpose of study, so there can be difference between results of sample from
total population.
 The study is related to service class people only.
 People were reluctant to go in to details because of their busy schedules.
 Merely asking questions and recording answers may not always elicit the
actual information sought.
 Due to continuous change in environment, what is relevant today may be
irrelevant tomorrow.
RESEARCH METHODOLOGY
Research is defined as human activity based on intellectual application in the investigation
of matter. The primary purpose for applied research is discovering, interpreting, and the
development of methods and systems for the advancement of human knowledge on a wide
variety of scientific matters of our world and the universe.

The term research is also used to describe an entire collection of information about a
particular subject.

Methodology is the method followed while conducting the study on a particular project.
Through this methodology a systematic study is conducted on the basis of which the basis of
a report is produced.

It is a written game plan for conducting Research. Research methodology has many
dimensions. It includes not only the research methods but also considers the logic behind the
methods used in the context of the study and explains why only a particular method or
technique has been used. It also helps to understand the assumptions underlying various
techniques and by which they can decide that certain techniques will be applicable to certain
problems and other will not. Therefore in order to solve a research problem, it is necessary to
design a research methodology for the problem as the some may differ from problem to
problem.

Nature
The methodology adopted to achieve the project objective involved exploratory research &
descriptive research method. The information required for fulfilling the objective of study
was collected from various primary and secondary sources.

Type of research
This study is EXPLORATORY and DESCRIPTIVE in nature. It helps in breaking vague
problem into smaller and precise problem and emphasizes on discovering of new ideas and
insights. Exploratory research was conducted during the initial stage of the research process
which helped to refine the problem into researchable one. It has progressively narrowed the
scope of research topic.

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 preferences of E-Banking over
 traditional banking among service class. The research design is exploratory in nature. The
research has been conducted on service class people within HYDERABAD. 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.

Sources of data:
Following are the methods of sources of data:.

Primary data:
Questionnaire was used to collect primary data from respondents. The questionnaire was
structured type and contained questions relating to different dimensions of e- banking
preferences among service class such as level of usage, factors influencing the usage of e-
banking services, benefits accruing to the users of e-banking services, problems encountered.
An attempt was also made to elicit reasons for its non-usage. The questions included in the
questionnaire were open-ended, dichotomous and offering multiple choices.

Secondary data:
 Articles on E-Banking taken from journals, magazines published from time to time.
 Through internet.
Sampling technique: The sampling technique used for judgment is convenience and
judgement sampling.
Sampling unit: It defines the target population that will be sampled i.e. it answers who is
to be surveyed. In this study, the sampling unit is the people of HYDERABAD.

Sampling size: It indicates the numbers of people to be surveyed. Though large samples
give more reliable results than small samples but due to constraint of time and money, the
sample size was restricted to 100 respondents. The respondents belong to different income
group and profession.

Method of data collection: The survey method is used to collect the data. Various
places of HYDERABAD visited for the purpose of collection of data.

Research instrument:
The instrument used for gathering data was questionnaire. To get further insight in to the
research problem, interview regarding their buying practices too was made. This was done to
crosscheck the authenticity of the data provided. To supplement the primary data and to
facilitate the process of drawing inference, secondary data was collected from published
sources like magazines, journals, newspapers etc.

Tools and techniques of analysis:

The data so collected will be analyzed through the application of statistical techniques, such
as bar graphs and pie charts.
REVIEW OF LITERATURE:

E-PAYMENT and the Common Banking Products

Generally, E-PAYMENTor E-payment is called as the incorporation of information

technology (IT) in the operations of bank and its related activities. On the other hand, Khan
(2001) argued that E-PAYMENTis a creation of e-payment in the sector of banking and
monetary services. The consumers can use these services for various operations like account
balance enquiry, chequebook request, payment and transactions enquiry, payment transfer,
account opening and closing as well as other banking services.

 Telephone and PC Banking

This service enables consumers to enquire about any banking related issues or services over
the telephone by dialing a specific number provided by the bank. Some of the telephone
banking services has an Interactive Voice Response (IVR), where a consumer can directly
avail their transaction facility without talking to any bank representative. These require some
special authentication like password or customer identification or any security number
provided by the bank to their consumers. This service is introduced into the banking
operations because of computer telephone technology being made available Khan (2001).
The telephone banking provide a wide range of services to their customers such as Account
balance enquiry; Account statement; inter-banks Account to Account, intra-Banks Account-
to-Account Transfer; Transfer; Download Account Transaction, complaints, etc. Thus,
Telephone and PC banking services had made the consumers to avail and enjoy banking
services at in their leisure time (at doorstep).

 Cheque System

A cheque is a kind of payment which is still in practice on a wide scale. It is a kind of paper
based payment method in which an account holder fill in the details of the transaction by
himself like name, amount, date and signature, where on the other hand the receiver clears the
cheque or receive the payment by depositing the cheque into his account in his
bank. Automation spotlight is to decrease the number of clearing time (days) and progress on
security agreement in the way of payment and assortment. For example, the Reserve bank of
India has just board upon online clearing and India has implied awareness and marked lane to
this development (Johnson, 2005).
.        Card System

This is a kind of E-PAYMENTwhich is also called as plastic money. This system

incorporates cards made of plastic which has a magnetic ribbon on their back implanted with
integrated circuit and is used for E-PAYMENT. This is a very convenient way of carrying
money instead of carrying cash. There are various types of cards used for this payment
system like Credit Cards, Debit Cards, ATM (Automated Teller Machines) Cards and Smart
Cards. The power of cards deceit in their complexity and acceptability to store and control
data, and switches numerous functions on one card securely and
steadily (Narain,2005). While the electronic card is gaining popularity in India now days, the
Spanish financial Institution confirmed the highest performance and update of smartcards
across the whole world (Narain, 2005).
The Smart card was bought up into the market of India for medium class personnel especially
women and children in order to reduce troubles of carrying money (Narain, 2005). It is
loaded with cash value electronically which stores information on a microchip and can be
carried like a credit card. In addition, it also contains security programs in order to protect
transactions between two card users. The payment through the card can be transferred
directly to a merchant, retailer, and shopkeeper or at other outlet to pay for goods and
services, and like cash, transaction between individual without the needs for banks of the
other third parties. Moreover, central clearing is not required in this system.

    Automated Teller Machine (ATM)

As the user of hard cash is practiced majorly and is considered as the most acceptable means
of financial transaction. However, the amount of transactions in the form of cash is
consistently decreasing in modern time, especially in the era of advanced or enhanced
economics (Narain, 2005). With the introduction of an E-PAYMENT method or system, the
carriage of hard cash as well as bank branches visit is being reduced rapidly.
ATM stands for Automated Teller Machine. It is a kind of cash dispenser machine which
allows a bank consumer to withdraw the cash from his account through a machine. This is the
most secure transaction system as the machine is placed in a well-groomed area as well as in
banking premises, shopping centers, fuel stations, etc. with security like cameras and guards,
as well as the customer has a special security code which he enters into the machine by
himself to process the transaction.
ARTICLES
ARTICLE :1
TITLE : The banking institutions that have not upgraded their technology
AUTHOR: Bradley and Steward,
YEAR: (2017).
The banking institutions that have not upgraded their technology from time to time have lost
their market share by a considerable amount to other financial institutions. With the
advancement of technology, the data could be transferred from one country to the other
within a short period of time. Thus, it is becoming vital for successful banking because the
work of the banks is more of informational in nature.

ARTICLE :2
TITLE : functioning of banking sector
AUTHOR: Berger
YEAR: (2018)
in his study has found out that there has been transformations in the functioning of banking
sector due to the development of technology based financial expertise and communication
technology. The results that new technology has created should be noticed through
fundamentally varying financial sector.

ARTICLE :3
TITLE : a considerable growth in E-payment since the 90s
AUTHOR: Suoranta and Mattila,
YEAR: (2018).
There has been a considerable growth in E-payment since the 90s when the use of technology
in banks was gaining widespread growth. Subsequently, it has generated curiosity in experts,
regarding the attitude of customers towards opting for technology or refraining from it.
Generally, the literature available on Internet banking revolves around on why the people are
accepting or rejecting E-payment. 
ARTICLE :4
TITLE : Practical Technology Acceptance Model Suffers
AUTHOR: However, Lee
YEAR: (2019)
states that the very common and practical technology acceptance model suffers from deficit
in providing adequate guidance to researchers. In spite of having an estimating power, it is
not been able to provide orderly assistance to scientists on how they can manipulate the
mindset of people, so that they can adopt e-payment.

ARTICLE :5
TITLE : A Crucial Effect On The Behavior Of The Consumer
AUTHOR: Wang
YEAR: 2020
Thus it has created a crucial effect on the behavior of the consumer. The financial institution
that is providing E-payment must see and notice the consumer behavior and whether they are
admitting E-payment or not. Thus if they get a positive response from this, then E-payment
will provide a competitive edge over competitors in the coming years.
 INDUSTRY PROFILE
A bank is a financial institution that accepts deposits and channels those deposits into

lending activities. Banks primarily provide financial services to customers while enriching

investors. Government restrictions on financial activities by banks vary over time and

location. Banks are important players in financial markets and offer services such as

investment funds and loans. In some countries such as Germany, banks have historically

owned major stakes in industrial corporations while in other countries such as the United

States banks are prohibited from owning non-financial companies. In Japan, banks are

usually the nexus of a cross-share holding entity known as the keiretsu. In France,

bancassurance is prevalent, as most banks offer insurance services (and now real estate

services) to their clients.

Introduction

India’s banking sector is constantly growing. Since the turn of the century, there has been a

noticeable upsurge in transactions through ATMs, and also internet and mobile banking.

Following the passing of the Banking Laws (Amendment) Bill by the Indian Parliament in

2012, the landscape of the banking industry began to change. The bill allows the Reserve

Bank of India (RBI) to make final guidelines on issuing new licenses, which could lead to a

bigger number of banks in the country. Some banks have already received licences from the

government, and the RBI's new norms will provide incentives to banks to spot bad loans and

take requisite action to keep rogue borrowers in check.

Over the next decade, the banking sector is projected to create up to two million new jobs,

driven by the efforts of the RBI and the Government of India to integrate financial services

into rural areas. Also, the traditional way of operations will slowly give way to modern

technology.

Market size
Total banking assets in India touched US$ 1.8 trillion in FY13 and are anticipated to cross

US$ 28.5 trillion in FY25.

Bank deposits have grown at a compound annual growth rate (CAGR) of 21.2 per cent over

FY06–13. Total deposits in FY13 were US$ 1,274.3 billion.

Total banking sector credit is anticipated to grow at a CAGR of 20.1 per cent (in terms of

INR) to reach US$ 2.4 trillion by 2020.

 COMPANY PROFILE
HDFC Bank is India's largest private sector bank with total assets of Rs. 5,946.42 billion
(US$ 99 billion) at March 31, 2016 and profit after tax Rs. 98.10 billion (US$ 1,637 million)
for the year ended March 31, 2016.HDFC Bank currently has a network of 3,839 Branches
and 11,943 ATM's across India.
History
2016
The Industrial Credit and Investment Corporation of India Limited (HDFC) incorporated at
the initiative of the World Bank, the Government of India and representatives of Indian
industry, with the objective of creating a development financial institution for providing
medium-term and long-term project financing to Indian businesses. Mr.A.Ramaswami
Mudaliar elected as the first Chairman of HDFC Limited.
HDFC emerges as the major source of foreign currency loans to Indian industry. Besides
funding from the World Bank and other multi-lateral agencies, HDFC was also among the
first Indian companies to raise funds from international markets.
HDFC Bank was originally promoted in 2094 by HDFC Limited, an Indian financial
institution, and was its wholly-owned subsidiary. HDFC's shareholding in HDFC Bank was
reduced to 46% through a public offering of shares in India in fiscal 2098, an equity offering
in the form of ADRs listed on the NYSE in fiscal 2000, HDFC Bank's acquisition of Bank of
Madura Limited in an all-stock amalgamation in fiscal 2001, and secondary market sales by
HDFC to institutional investors in fiscal 2001 and fiscal 2002. HDFC was formed in 2055 at
the initiative of the World Bank, the Government of India and representatives of Indian
industry. The principal objective was to create a development financial institution for
providing medium-term and long-term project financing to Indian businesses.
 
In the 1990s, HDFC transformed its business from a development financial institution
offering only project finance to a diversified financial services group offering a wide variety
of products and services, both directly and through a number of subsidiaries and affiliates like
HDFC Bank. In 1999, HDFC become the first Indian company and the first bank or financial
institution from non-Japan Asia to be listed on the NYSE.
 After consideration of various corporate structuring alternatives in the context of the
emerging competitive scenario in the Indian banking industry, and the move towards
universal banking, the managements of HDFC and HDFC Bank formed the view that the
merger of HDFC with HDFC Bank would be the optimal strategic alternative for both
entities, and would create the optimal legal structure for the HDFC group's universal banking
strategy. The merger would enhance value for HDFC shareholders through the merged
entity's access to low-cost deposits, greater opportunities for earning fee-based income and
the ability to participate in the payments system and provide transaction-banking services.
The merger would enhance value for HDFC Bank shareholders through a large capital base
and scale of operations, seamless access to HDFC's strong corporate relationships built up
over five decades, entry into new business segments, higher market share in various business
segments, particularly fee-based services, and access to the vast talent pool of HDFC and its
subsidiaries.
PROPOSED OUTCOMES
 Issuers of E-PAYMENT will need to take great care to ensure that the danger of
counterfeiting is minimized and they must be very vigilant in monitoring their
systems and operations so that fraud can be detected quickly when it occurs.
 Issuers should emphasize on a well-written and prominently displayed assurance of
security encryption.
 Enhancement on every sophisticated security systems should be done at least every
month, to prevent hackers from stealing both money and personal information.
 Higher priority must be given to the enhancement of encryption mechanism in order
to maintain security and privacy.
 They should constantly upgrade hardware and software whenever a new feature of
enhancing security becomes available.
LIMITATION
 Banks are not giving me all information about e- banking services.
 They do not permit to meet any employees in their banks.
 1. Banks are not giving meal information about-banking services.
 They do not permit to meet any employees in their banks.
 The infrastructure cost of providing E-banking facility is very high.
 Many people are away from net banking on the assumption that it is more expensive
than the traditional method of dealing with bank transaction.
 CHAPTERISATION

CHAPTER -1 - INTRODUCTION

This chapter includes the introduction of the topic, need, scope, objectives of the study,
Project limitations and methodology of the study.

CHAPTER - 2 REVIEW OF LITERATURE

This chapter includes the theoretical background and articles written by different authors and
brief explanation of the topic.

CHAPTER - 3 - INDUSTRY PROFILE & COMPANY PROFILE

CHAPTER - 4 - DATA ANALYSIS AND INTERPRETATION

This chapter includes the comparative analysis of the financial statements of the five years
data and it also includes the interpretation based on the study.

CHAPTER - 5 – SUMMARY AND CONCLUSION

This chapter includes the overall summary of the project and the conclusion based on the
study during the period.
BIBLIOGRAPHY
Reference
Data Base Management System in Raghu Rama Krishna Tata Mighrahill
Data Base Management System in Korth Tata Mighrahill
Efren G Mallach, “Decision Support & Data Warehouse Systems”
Jame Evans, Business Analytics, Pearson, Second Edition, 2017.
George M. Marakas, “Decision Support System” In the 21st century, PHI, EEE, Second
Edition
Books
Marketing Management – Philip Kotler
Marketing.Com – Vijay Mukhi
E-Business Essentials- Matt Haig
Magazines
Business Today -March3, 2002 subscription
Articles
Economic Times- December 15, 2001
Indian Express-September 3, 2000
Personnel
Mr. Vikram Kumar, Director, MAQ Softwares( Project Guide )
Mr. JeetuChimnani, Chief Executive Officer, J-Info

Websites
www.rediff.com
www.Flipkart.com
www.airtel.com
www.hungama.com
www.fabmart.com
www.j-info.com
www.marketingterms.com
www.internetworldstats.com