CHAPTER -I

INTRODUCTION
Online payments, especially recurring online payments, form a fundamental part of many
businesses' revenue streams. However, each online payment method has distinct advantages and
disadvantages. What might be well-suited to one kind of product, service or market, may be
unsuitable for another.

Online payments are payments that are initiated over the internet for goods or services purchased
either online or offline. Common methods to facilitate this include: Bank Debits via online
mandate (often referred to as Direct Debit - which is the terminology we'll use in this guide)

This is critical. Many businesses that take recurring payments or subscription payments undervalue
the strategic significance of which online payment methods they offer their customers. The way
you accept payment from your customers impacts not only your revenue, but the growth of your
business.

This guide will help you more deeply understand your options for taking online payments,
covering:

No single online payment method is perfect in all cases, but this guide will help you identify those
that are best-suited to your business.

Online payments are payments that are initiated over the internet for goods or services purchased
either online or offline. Common methods to facilitate this include:

• Bank Debits via online mandate (often referred to as Direct Debit - which is the

terminology we’ll use in this guide)

• Bank transfers (also referred to as wire transfers)

• Online credit or debit card transactions

• Digital wallet payments (such as PayPal)

• Payments can be one-off (e.g. e-commerce transactions like purchasing clothing) or

recurring (e.g. subscriptions to services like Netflix or Spotify).

1. CASHFREE PAYMENT GATEWAY

Cash free Payments is one of India’s leading payments and API banking companies.

It provides 120+ payment modes such as Credit and Debit Cards (Visa, Mastercard, Rupay,
AMEX, Diners), Net Banking (65+ banks), Paytm and other wallets, UPI via BHIM UPI, Google
Pay, PhonePe, EMI options, Buy Now Pay Later.

It also supports NEFT, IMPS and PayPal.

2 .PAYU PAYMENT GATEWAY SERVICE:

PayU (formerly known as PayU Money) is one of the best payment gateways to accept online
payments with minimal development effort, easy sign-up, and a quick onboarding process.

You can start accepting payments securely and seamlessly within your iOS, Android, or

Windows app, within minutes, with our 100% online hassle-free onboarding process.

Their Charges are:

• Annual maintenance Charge: Zero.

• Transaction Fee per Transaction: 2% + GST for each transaction. For American

Express & Diners Cards, transaction fees = 3% + GST for international

transactions & EMI payment options, there is a set-up fee that needs to be paid

along with Annual Maintenance Charges (AMC). Also, the transaction rates are

3% + ₹6 for every transaction.

3. RAZORPAY

It is the only payments solution in India that allows businesses to accept, process, and disburse

payments with its product suite.

 It gives you access to all payment modes including credit card, debit card, net banking, UPI, and

popular wallets including JioMoney, Mobikwik, PayUmoney, Airtel Money, FreeCharge, Ola

Money, and PayZapp.

• Razorpay provides the highest level of tech integration at a reasonable price:

• Razorpay Payment Gateway service charges are:

• Annual maintenance Charge: ZERO

• Transaction Fee per Transaction: simple and transparent pricing plan which has no

hidden fees: 2% per successful transaction; +1% for International cards, EMI and

Amex; No setup fees; No Annual maintenance charges; GST applicable of 18% on

the transaction fee.

Key Features of Razorpay Payment gateway service are

International Payment / Credit card Support: International approval is a separate process and takes

longer, which is subject to the bank’s approval

4. INSTAMOJO PAYMENT GATEWAY

Instamojo Payment Gateway allows new merchants to create a merchant account instantly to collect

online payments with ease with or without a website. Charges of Instamojo are quite reasonable.

• Instamojo Payment Gateway service charges are:

• Annual maintenance Charge: ZERO. yes ZERO

• Transaction Fee per Transaction: Flat fee @ 2% + Rs 3 per transaction

 5 .PAYPAL PAYMENT GATEWAY SERVICE:

PayPal is a global payment platform available in 200+ countries across the world. PayPal claims

to have processed 4 billion payments (including 1 billion mobile) in 2014. Over 173 million

customers use Paypal on a regular basis.

• PayPal Payment gateway Service charges are:

• Annual maintenance Charge: Free, Zero maintenance charges.

• Transaction Fee per Transaction: 4.4% + US$0.30 + Currency conversions charges

6.CCAVENUE PAYMENT GATEWAY:

CCAvenue is one of the largest payment gateway India, offering a wide range of payment options.

It offers 200+ payment options inclusive of 6 credit cards such as Amex, JCB, Diners Club,

Mastercard, Visa, and eZeClick. It also supports 27 major currencies, thus enabling you to serve

customers in some major global markets out of India. CCAvenue also allows a Multilingual

payment page in 18 major Indian and international languages.

CCAvenue Payment gateway Service charges are:

• Initial Setup Fee: Zero, yes Zero

• Annual maintenance Charge for a Startup account: Rs 1200

• Transaction Fee per Transaction: Variable fee below

• Domestic Credit & Debit cards on Visa, Mastercard, Maestro RuPay: Flat fee @

2%

• Wallets: Freecharge, Mobikwik, OlaMoney, Jiomoney, Paytm, PayZapp, Jana

Cash, SBI Buddy, The

• Mobile Wallet: Flat fee @ 2%

 7. ATOM PAYNETZ PAYMENT GATEWAY SERVICE:

Atom is promoted by FT Group and it is an innovative Payment Service Provider with over

100 payment options, 15 million + transactions, 4500+ strong merchants across the country.

• Atom Paynetz Payment Gateway Service charge are:

• Annual maintenance Charge: Generally waived off for first year, however second

year onwards you have to pay Rs 2400.

• Transaction Fee per Transaction:

• Credit Cards: 2.1%

• Debit cards: for transactions less then Rs 2000 it is 0.75%

• Debit cards: for transactions more then Rs 2000 it is 1%

• 9 Citrus Payment Gateway:

• It is merged with PayU now. Therefore, I have dropped all the details for this

payment Gateway.

8. PAYTM

Paytm has emerged as a leading payment due to its online consumer base with ‘Paytm Cash’

wallet. Therefore, paying with Paytm could be beneficial for a small eCommerce merchant.

Domestic Credit Cards supported: Visa, Master, Maestro, Amex, Discover and Diners. Flat 1.99%.

International Credit Cards supported: Visa, Master, Maestro, Amex, Discover and Diners

• Pricing of Paytm payment gateway

• Initial Setup Fees: Rs 5000. Waived as of now
• Annual Maintenance Charges: Rs 5000. Waived as of now
• Minimum Annual Business Requirement: ZERO
OBJECTIVES OF THE STUDY

➢ To Improve the online payment system in ICICI.

➢ To Improve the ease of conducting card/digital transactions for an individual.

➢ Reduce the risks and costs of handling cash at the individual level.

➢ Reduce costs of managing cash in the economy.

➢ Build a transactions history to enable improved credit access and financial

inclusion.

➢ Reduce tax avoidance.

NEED OF THE STUDY

➢ Electronic payments are much faster than the traditional methods of payments such
as cash or cheques
➢ To Analys Higher payment security
➢ Better customer convenience in online payments
➢ Saves processing costs
➢ Low risk of theft, and saves time
➢ Supporting Contactless payments
LIMITATIONS OF THE STUDY

➢ The study is only limited within the ICICI BANK LTD

➢ Technology and Service Interruptions

➢ Security and Identity Theft Concerns

➢ Security Risks. Most banks make sure that their websites are secure, but no bank website

is immune from cybercrime and hacking.

➢ Hackers target bank websites to swipe account information.

➢ Charges are very high.

RESEARCH METHODOLOGY

Research methodology comprises defining and redefining problems, formulating hypothesis or

suggested solutions; collecting, organizing and evaluating data, making deductions and reaching
conclusions; and at last carefully testing the conclusions to determine whether they fir the
formulating hypothesis.

A useful research methodology must be systematic, logical, empirical and replicable. The
researcher should follow certain systematic methods, steps and stipulation in designing, planning
and execution of the research. Research Methodology 130

RESEARCH DESIGN

A research design is simply the frame work or plan for a study that is used as guide in collecting
and analyzing the data. It is a blue print used for completing a study.

PILOT STUDY

A pilot study can refer to many types of experiments but generally the goal of the study is to
replicate the full-scale experiment but only on a smaller scale.

So, a sample of 20 respondents was taken for each questionnaire on the basis of convenience
sampling from the different groups. On the basis of the answers given and time taken by the
respondents, the questionnaires were redesigned and finalized.

DATA COLLECTION

The study is based on primary as well as secondary data.

SOURCES OF DATA COLLECTION

PRIMARY DATA

Primary data has been collected through well-structured comprehensive

• From company records

• Information from Managers
• Annual reports from ICICI
SECONDARY DATA

Secondary data is the data which is available in published form and which was collected earlier

by people for some purposes.

There may be various sources of secondary data such as

• Newspapers

• Magazines,

• Journals,

• Books,

• Reports, Documents and Other Published Information,

• Banks Annual Reports,

• Manuals And Brochures of Banks

• Websites
 CHAPTER – II

REVIEW OF LITERATURE
Kevin Foster, Scott Schuh, and Hanbing Zhang (2010)they examined the consumer payment
methods with respect to cash holdings and withdrawals which was decreasing since 2010.There
was an increase in card payment system with respect to 2009 in the year 2010, which resulted in
less usage of paper currency. Since 2010 there was an increase in usage of debit and credit card
compare to cash transaction which slowly took a decline giving rise to prepaid payments.

Singh.A et.al (2012) in their study discussed how secure the internet network should be to make
smooth transaction for all the parties and the merchants. The systems are made in such a way so
that there is no fraudulent activity takes place people can use their card for transaction in a secure
way so that no data is shared. People mostly do digital transactions for e-commerce but they find
internet I not secure to do so. Therefore some strict protocol should be followed and managed to
make transaction secure and the data is also protected.

Oladejo, Morufu et.al (2012) in their study examined the improvement of e-payment system in
Nigeria. They explored what initiated the people to adopt the e-payment system. A structured
questionnaire and some financial statements were collected to analyse the data. The results were
such that when bank adopted e-payment system there was a change in the performance level of
the banks. With the advent of e-payment system there was a rise in usage of ATMs.

Nitsure (2014) in his study highlighted the issues that were being faced or observed in developing
country like India in using the e-payment system which was due to the low spread of internet and
technology. The paper focused on major issues such as security, rules, etc. IN a country like India
there is a high risk where the poor’s are given a chance to be informed about such facilities
neither they are given any such information.

Rakesh H M & Ramya T J (2014), in their study analysed the factors that which was resulting in
the adoption of internet banking in our country. It was found out that perceived reliability,
Perceived ease of use and Perceived usefulness were the main reason for the adoption or usage of
internet banking.

Sanghita Roy, Dr. Indrajit Sinha (2014), discussed in their paper that in India there has been a
sudden surge in the usage of digitalised payment. But still there is almost 90% transactions which
are done through paper currency. They had used the TAM (Technology Acceptance Model) in this
study to find out the factors which are strengthening the e-payment system the factors are
innovation, incentives, and legal frame work and customer convenience.

Dennehy & Sammon (2015) has analyzed how in the 21st century the usage of digital payment
has increased over the years. The main focus here was to find out how where will in the digital
payment system in future stand. Many papers have been examined to find out what are the views
regarding the digital payment system. With the passage of time the technology has been shifting
very fast so with the innovation of technology the aim was to make people familiar with digital
payment. The merchants also got a new platform to invest so as to cater the customers. Data was
collected by following empirical method i.e. survey, interviews, etc. Lastly the study was only
focused on Google data base that was a limitation about the study.

Sanaz Zarrin Kafsh (2015) made a study on “Developing Consumer Adoption Model on Mobile
wallets in Canada”,in her study she did convenience sampling from were 530 respondents were
selected and there after the Partial least square model was used to test the data.As per the analysis
the result perceived usage, perceived ease of use and perceived security is related to each for
forecasting the adoption of digital payment.

Bezhovski (2016) has examined how internet and e-commerce has opened the gateway for digital
payment system with the increment in technology people are adopting the new means of payment
system and how they will be benefited and is there any pitfall of using it. When e-commerce was
launched it was a unique way of trading so the digital payment is also a unique way of transaction
which will also emerge as the e-commerce and in near future it will become the backbone of e-
commerce. The future of these digital wallets will depend on the security and privacy that are
provided by the companies as people are highly security concerns any pros and cons will decide
the future of digital wallets. It is not only restricted to make transactions but it be used for booking
airlines, movie tickets. Many offers are provide for making bill payments or buying any goods
using these platforms. As the smart phones has removed many devices from our daily live and
have clubbed in one device only so it is expected that digital wallet will also do the same which
will become substitute for many other things.

Ravi (2017), has examined that India’s two third population are residing rural areas so they play a
very important role in the development of the economy, with the emergence of IT and
Communication it is predicted that rural areas will have 50% of India’s Internet users by
2020.Digital wallets should be used in rural places so that the people know the significance of
using it and what benefit they will be getting by using it.

The Government of India has also taken up the initiative of making rural people aware about
Digitization. Adoption of technology has always been low in India compare to other countries but
in case of Digital wallet our country is going with the pace of other countries to become a cashless
economy. As the two third population of India is in rural part so if the rural people with time adopt
the digital payment system then in the coming years India will become a cashless economy. The
government of India has taken up various initiatives to make the rural people become familiar with
digital wallet.

The urban people have adopted the digital system of payment, now it’s time for the rural people
too. If the rural people are made aware about digitalization soon it will roll out all over India.
The best step that the National Payments Corporation of India has taken is that digital wallet will
work on all mobiles with or without internet.

Singh (2017) in his study showed that how digital payment and digital wallet in India was get
popularized due to demonetization. As there was a tremendous growth in the usage of internet and
the no. of smart phone users were also increasing so people found it convenient to use as an
alternative for cash. In this study he also pointed out that how different digital wallet companies
were having competition to enter and expand the Indian market as it was the best opportunity for
them to establish their company. It was also predicted that in future India will become a cashless
economy and with digitalization people will surely adopt the digital mode of payment. ANOVA
was used in this study to show that there is no significant variance in the consumer perception
with respect to its demographic factors.

Baghla . A (2018) in his study identified the trends for adopting the digital payment system India.
Further the paper talks about how after demonetization people started to use the digital platforms
for transactions. How the government initiative to make our economy a cashless one and how
consumer will be adopting such system are further discussed. A structed questionnaire was used
to collect data and find out the future of digital payment system in India.

Pandey and Rathore (2018) in their study discussed the impact of digital payment system. Due
to modernisation and globalisation it was very important for the people to accept the modern
method of payment. The study is based on secondary data and various literatures from past papers
and government data. All data collected has been analysed and used to find the impact and adoption
of digital payments by the people.

Pushpa S. Abbigeri and Rajeshwari M. Shettar (2018) talked about how the Digital India flagship
program attracted large number of people to start using digital wallets , which people started to
use as there was lots of cash back offers and coupons. After the digital India flagship program a
lot of mobile wallet companies entered India and other methods such as UPI, NEFT to a surge.
The initiative taken by the government and RBI was being accepted by the people as they were
using such methods.

Shivathanu B. (2019) in his study adoption of digital payment system in the era of
demonetization emphasised on how the digital payment system was used by the people or accepted
by the people during demonetization. It was based on a conceptual framework where the sample
size was 766 .The data analysed suggested that behavioural intentions and innovation resistance
had an impact on the actual usage.

Digital Payment

1. Plastic Cards-

These are cards issued by banks to their account holder, by using it they can withdraw money from
any ATM by using their password. These cards are used for depositing money in banks to so that
there is less wastage of paper. There are two type of cards issued by banks i.e. debit and credit
card. Debit cards are issued to all account holders whereas credit cards are issued to the once
according to their interests.

2. UPI

Unified Payment Interface is a payment mode this is used to make fund transfers through the
mobile app. One can transfer funds between two accounts using UPI apps. One should have a
registered mobile banking facility to use UPI apps. Currently, this service is only available for
android phone users. One can download a UPI app and create a VPA or UPI ID. There are too
many good UPI apps available such as BHIM, SBI UPI app, HDFC UPI app, Mobile, PhonePe
app etc. It is not mandatory to use the UPIapp from a respective bank to enjoy UPI service. One
can download and use any UPI app.

3. Mobile Wallet-

It’s the other way of storing or keeping digital cash and using it for various transactions. A person
can download any mobile wallets namely Paytm, GPay, Phone pay, Sbi buddy, Jio money, etc.
They just need to link there bank account or their plastics cards number to use the amount required
and which is further used for making payments, paying bills etc.

4.Internet banking-

There are various types of internet banking which are NEFT(National Electronic Fund Transfer),
RTGS(Real Time Gross Settlement),ECS(Electronic Clearing System), IMPS(Immediate
Payment Service).These are e-banking system which allows individual or organizations to make
transfers using the website of their banks.

5. Mobile banking-

It is provided by all banks to their customers where the customers need to download the application
of the bank and they cause it for making transactions. For using such application on should have a
smartphone. There are many more types of digital payment available in our country and across the
globe we have talked about a few which are known to people.
 CHAPTER – III
INDUSTRY PROFILE
&
COMPANY PROFILE
Indian Banking System the Indian banking industry plays an important role in the economic
development of the country and is the most dominant segment of the financial sector. Banks help
channel savings to investments and encourage economic growth by allocating savings to
investments that have potential to yield higher returns. India’s banking system is a robust one and
is classified into commercial banks and co-operative credit institutions. Commercial banks
include: 1) scheduled commercial banks (SCBs) and non-scheduled commercial banks. SCBs are
further classified into public sector banks (PSBs), private banks, foreign banks and regional rural
banks (RRBs). Cooperative credit institutions include the various co-operative banks. As on Mar,
2012 the Indian banking system comprised 87 SCBs, 82 RRBs, 618 Urban Cooperative Banks
(UCBs) and 94,531 rural cooperative credit institutions. As on Dec 2012, the Indian banking
system comprised 165 SCBs including RRBs
The banking industry in India is sufficiently capitalized and regulated. The economic and financial
conditions here are better than in any other country. Liquidity, credit, and market studies have
proven Indian banks to be resilient. They have negotiated the downturn in the global economy
well.
The Reserve Bank of India (RBI) is the topmost body monitoring the Banking Industry. Any
shortcomings or discrepancies are dealt with by the RBI.
The banking industry in India is divided into scheduled and non-scheduled banks. 67,000 scheduled
bank branches are located in India. They consist of cooperative banks and commercial banks. The
PSBs (Public Sector Banks) form the base of this sector in India. They account for 78% of the assets
in the banking sector. The Private Sector banking is making headway. They are leading in mobile
banking, phone banking, ATMs, and Internet Banking sectors. Sectors of the banking industry
include investment banking, retail, and private banking. Investment banking is a growing sector
with more Indians looking to invest funds in mutual funds and stocks rather than the traditional
fixed deposits and schemes.
Retail banking is when the bank deals with individual customers rather than corporations. Services
offered by these banks are normal savings, personal loans, checking accounts, and debit/credit cards
amongst others. This is also a growing sector as the drive for cashless transactions is growing. More
people are opting for debit and credit cards. Private banking is where the personalized financial
services are provided to individuals or corporations of high worth.
All these sectors are showing immense growth prospects. Internet banking is also gaining
prominence. The phone banking sector is also gaining in popularity. Thus, the entire banking sector
is growing and offers immense potential.

FDI in this sector has been raised. 74% FDI via the automatic route is allowed in the private sector
banks. This means that the aggregate foreign investment in any private bank considering all
sources should be up to 74% of the paid-up capital. In the case of nationalized banks, the Portfolio
and FDI investment’s maximum limit is 20%. This cap also applies to the investment in state banks
and other associated ones.

Overall, the Indian banking industry has immense potential for further growth and expansion.

SERVICES PROVIDED BY BANKING ORGANISATIONS

Banking Regulation Act in India, 1949 defines banking as “Accepting” for the purpose of lending
or investment of deposits of money from the public, repayable on demand and withdraw able by
cheques, drafts, orders etc. as per the above definition a bank essentially performs the following
functions:- 35 • Accepting Deposits or savings functions from customers or public by providing
bank account, current account, fixed deposit account, recurring accounts etc. • The payment
transactions like lending money to the public. Bank provides an effective credit delivery system
for loan able transactions. • Provide the facility of transferring of money from one place to another
place. For performing this operation, bank issues demand drafts, banker’s cheques, money orders
etc. for transferring the money. Bank also provides the facility of Telegraphic transfer or tele- cash
orders for quick transfer of money. • A bank performs a trustworthy business for various purposes.
• A bank also provides the safe custody facility to the money and valuables of the general public.
Bank offers various types of deposit schemes for security of money. For keeping valuables bank
provides locker facility. The lockers are small compartments with dual locking system built into
strong cupboards. These are stored in the bank’s strong room and are fully secured. • Banks act on
behalf of the Govt. to accept its tax and non-tax receipt. Most of the government disbursements
like pension payments and tax refunds also take place through banks. There are several types of
banks, which differ in the number of services they provide and the clientele (Customers) they
serve. Although some of the differences between these types of banks have lessened as they have
begun to expand the range of products and services they offer, there are still key distinguishing
traits. These banks are as follows: Commercial banks, which dominate this industry, offer a full
range of services for individuals, businesses, and governments. These banks come in a wide range
of sizes, from large global banks to regional and community banks. Global banks are involved in
international lending and foreign currency trading, in addition to the more typical banking services.
36 Regional banks have numerous branches and automated teller machine (ATM) locations
throughout a multi-state area that provide banking services to individuals. Banks have become
more oriented toward marketing and sales. As a result, employees need to know about all types of
products and services offered by banks. Community banks are based locally and offer more
personal attention, which many individuals and small businesses prefer. In recent years, online
banks—which provide all services entirely over the Internet—have entered the market, with some
success. However, many traditional banks have also expanded to offer online banking, and some
formerly Internet-only banks are opting to open branches. Savings banks and savings and loan
associations, sometimes called thrift institutions, are the second largest group of depository
institutions. They were first established as community-based institutions to finance mortgages for
people to buy homes and still cater mostly to the savings and lending needs of individuals. Credit
unions are another kind of depository institution. Most credit unions are formed by people with a
common bond, such as those who work for the same company or belong to the same labor union
or church. Members pool their savings and, when they need money, they may borrow from the
credit union, often at a lower interest rate than that demanded by other financial institutions.
Federal Reserve banks are Government agencies that perform many financial services for the
Government. Their chief responsibilities are to regulate the banking industry and to help
implement our Nation’s monetary policy so our economy can run more efficiently by controlling
the Nation’s money supply—the total quantity of money in the country, including cash and bank
deposits. For example, during slower periods of economic activity, the Federal Reserve may
purchase government securities from commercial banks, giving them more money to lend, thus
expanding the economy. Federal Reserve banks also perform a variety of services for other banks.
For example, they may make emergency loans to banks that are short of cash, and clear checks
that are drawn and paid out by different banks. 37 The money banks lend, comes primarily from
deposits in checking and savings accounts, certificates of deposit, money market accounts, and
other deposit accounts that consumers and businesses set up with the bank. These deposits often
 earn interest for their owners, and accounts that offer checking, provide owners with an easy
method for making payments safely without using cash. Deposits in many banks are insured by
the Federal Deposit Insurance Corporation, which guarantees that depositors will get their money
back, up to a stated limit, if a bank should fail.

FUNCTIONS OF BANKS

A. PRIMARY FUNCTIONS
The primary functions of a bank are also known as banking functions. They are the main
functions of a bank. These primary functions of banks are explained below.

1. Accepting Deposits
The bank collects deposits from the public. These deposits can be of different types, such as:-
o Saving Deposits
o Fixed Deposits
o Current Deposits
o Recurring Deposits
38 Saving Deposits this type of deposits encourages saving habit among the public. The rate of
interest is low.

2. Granting of Loans and Advances:

The bank advances loans to the business community and other members of the public. The rate
charged is higher than what it pays 39 on deposits. The difference in the interest rates (lending rate
and the deposit rate) is its profits.

The types of bank loans and advances are:-

a. Overdraft

b. Cash Credits

c. Loans

d. Discounting of bill of exchange

B. SECONDARY FUNCTIONS

The bank performs a number of secondary functions, also called as non-banking functions. These
important secondary functions of banks are explained below.

❖ Agency Functions
The bank acts as an agent of its customers. The bank performs a number of agency
functions which includes: -

a. Transfer of Funds

b. Collection of Cheques

c. Periodic Payments

d. Portfolio Management

e. Periodic Collections

f. Other Agency Functions

❖ GENERAL UTILITY FUNCTIONS

The bank also performs general utility functions, such as :-

a. Issue of Drafts, Letter of Credits, etc.

b. Locker Facility

c. Underwriting of Shares

d. Dealing in Foreign Exchange

e. Project Reports

f. Social Welfare Programmes

g. Other Utility Functions

COMPANY PROFILE

ICICI Bank Limited is an Indian multinational banking and financial

services company headquartered in Mumbai, Maharashtra with its registered office in Vadodara,
Gujarat. The bank has a network of 5,275 branches and 15,589 ATMs across India and has a
presence in 17 countries including India.

HISTORY

ICICI Bank was originally promoted in 1994 by ICICI Limited, an Indian financial institution, and
was its wholly-owned subsidiary. ICICI's shareholding in ICICI Bank was reduced to 46% through
a public offering of shares in India in fiscal 1998, an equity offering in the form of ADRs listed on
the NYSE in fiscal 2000, ICICI Bank's acquisition of Bank of Madura Limited in an all-stock
amalgamation in fiscal 2001, and secondary market sales by ICICI to institutional investors in
fiscal 2001 and fiscal 2002. ICICI was formed in 1955 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, ICICI 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 ICICI Bank. In
1999, ICICI 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 ICICI and ICICI Bank formed the view that the merger of ICICI with ICICI Bank
would be the optimal strategic alternative for both entities, and would create the optimal legal
structure for the ICICI group's universal banking strategy. The merger would enhance value for
ICICI 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 ICICI Bank shareholders
through a large capital base and scale of operations, seamless access to ICICI'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
ICICI and its subsidiaries.

In October 2001, the Boards of Directors of ICICI and ICICI Bank approved the merger of ICICI
and two of its wholly-owned retail finance subsidiaries, ICICI Personal Financial Services Limited
and ICICI Capital Services Limited, with ICICI Bank. The merger was approved by shareholders
of ICICI and ICICI Bank in January 2002, by the High Court of Gujarat at Ahmedabad in March
2002, and by the High Court of Judicature at Mumbai and the Reserve Bank of India in April 2002.
Consequent to the merger, the ICICI group's financing and banking operations, both wholesale and
retail, have been integrated in a single entity.

VISION
To be the leading provider of financial services in India and a major global bank.

MISSION
We will leverage our people, technology, speed and financial capital to:

• Be the banker of first choice for our customers by delivering high quality, world-class
products and services.
• Expand the frontiers of our business globally.
• Play a proactive role in the full realisation of India's potential.
• Maintain a healthy financial profile and diversify our earnings across businesses and
geographies.
• Maintain high standards of governance and ethics.
• Contribute positively to the various countries and markets in which we operate.
• Create value for our stakeholders.

ICICI GROUP COMPANIES

➢ ICICI Group

http://www.icicigroupcompanies.com

➢ ICICI Prudential Life Insurance Company

http://www.iciciprulife.com/public/default.htm

➢ ICICI Securities

http://www.icicisecurities.com

➢ ICICI Lombard General Insurance Company

http://www.icicilombard.com

➢ ICICI Prudential AMC & Trust

http://www.icicipruamc.com

➢ ICICI Venture

http://www.iciciventure.com

➢ ICICI Direct

http://www.icicidirect.com

➢ ICICI Foundation

http://www.icicifoundation.org
 ➢ Disha Financial Counselling

http://www.icicifoundation.org

➢ ICICI Home Finance Company Limited

http://www.icicihfc.com/

BOARD OF DIRECTORS

BOARD MEMBERS

Mr. Girish Chandra

Chaturvedi
Non-Executive (part-time)
Chairman
..............................................

Mr. Hari L. Mundra

Independent Director
..............................................

Mr. Lalit Kumar Chandel

Government Nominee Director
..............................................

Mr. S. Madhavan Mr. Anup Bagchi,

Independent Director Executive Director
.............................................. ..............................................

Ms. Neelam Dhawan Mr. Sandeep Bakhshi,

Independent Director Managing Director & CEO
.............................................. ..............................................
 Mr. Radhakrishnan Nair Ms. Vishakha Mulye,
Independent Director Executive Director
.............................................. ..............................................

Ms. Rama Bijapurkar

Independent Director
..............................................

Mr. B. Sriram
Independent Director
..............................................

SERVICES

➢ Manage Accounts

• Check account balance

• View last 5 transactions
• Check Credit card details
• Send Cheque book request
• Stop cheque request

➢ Funds Transfer

Transfer funds from anywhere, on the go using m.icicibank.com.

It is a secure and easy way to transfer funds to own ICICI Bank account, other ICICI Bank account
and non-ICICI Bank account using NEFT mode of fund transfer
Transfer funds from anywhere, on the go using m.icicibank.com.
It is a secure and easy way to transfer funds to own ICICI Bank account, other ICICI Bank account
and non-ICICI Bank account using NEFT mode of fund transfer

➢ Cardless Cash Withdrawal

Card less Cash Withdrawal service is a simple and safe mode for you to send cash, 24x7, to any
mobile number in India.
 ➢ Pay Utility Bills

➢ Fixed Deposits

➢ ICICI Bank Recurring Deposits

➢ Credit Card Payments

ACQUISITIONS

➢ 1996: ICICI Ltd. A diversified financial institution with headquarters in Mumbai[18]

➢ 1997: ITC Classic Finance. Incorporated in 1986, ITC Classic was a non-bank financial
firm that engaged in hire, purchase, and leasing operations. At the time of being acquired,
ITC Classic had eight offices, 26 outlets, and 700 brokers.[19]
➢ 1997: SCICI (Shipping Credit and Investment Corporation of India)[20]
➢ 1998: Anagram(ENAGRAM) Finance. Anagram had built up a network of some 50
branches in Gujarat, Rajasthan, and Maharashtra that were primarily engaged in retail
financing of cars and trucks. It also had some 250,000 depositors.[21]
➢ 2001: Bank of Madura[22]
➢ 2002: The Darjeeling and Shimla branches of Grindlays Bank[23]
➢ 2005: Investitsionno-Kreditny Bank (IKB), a Russian bank[24]
➢ 2007: Sangli Bank. Sangli Bank was a private sector unlisted bank, founded in 1916, and
30% owned by the Bahte family. Its headquarters were in Sangli in Maharashtra, and it had
198 branches. It had 158 in Maharashtra and 31 in Karnataka, and others in Gujarat,
Andhra Pradesh, Tamil Nadu, Goa, and Delhi. Its branches were relatively evenly split
between metropolitan areas and rural or semi-urban areas.[25]
➢ 2010: The Bank of Rajasthan (BOR) was acquired by the ICICI Bank in 2010 for ₹30
billion (US$420 million). RBI was critical of BOR's promoters not reducing their holdings
in the company. BOR has since been merged with ICICI Bank.
REWARDS AND RECOGNITIONS
 ➢ ICICI Bank won at the Celent Model Bank Awards 2018 in the 'Emerging Innovation'
category for initiatives undertaken in the trade finance and supply chain segment. The awards
are organized by Celent, a research, advisory, and consulting firm focused on financial
services technology.

➢ ICICI Bank won the award for the 'Best Retail Bank' in India at The Asian Banker
Excellence in Retail Financial Services International Awards 2018, for the fifth time in a row.
This year ICICI Bank has also won an award in 'The Best Retail Operational Risk Initiative,
Application or Programme' category.

➢ The Bank was declared winner in following categories: 'Best Use of Digital and Channels
Technology', 'Best Payments Initiative', Best IT and Cyber Security Risk Initiatives' and 'Most
Innovative Project using IT'.

➢ ICICI Lombard won the ATD (Association of Talent Development) BEST Awards 2017
for the 5th time. The ATD BEST Global Awards recognize organizations that leverage on
talent development strategically to achieve business results. Only 12 companies globally
maintained their ranks in the top 40 and only 2 companies sustained their positions in the Top
10 including ICICI Lombard

➢ ICICI Lombard has been conferred with the coveted Golden Peacock National Training
award 2017. The award was instituted by the Institute of Directors (IOD)in 1998 to identify
excellence in training practices at organizations as a whole. ICICI Lombard is the first General
Insurance company to receive this award for training since the inception of these awards

CORPORATE SOCIAL RESPONSIBILITY ACTIVITIES

The CSR Committee of the Bank would consider and approve the projects or programmed that the
Bank should undertake as CSR in India. The Bank’s primary focus areas for CSR activities are:

1. Education
Promoting education, including special education and employment enhancing vocation skills
especially among children, women, elderly and the differently abled and livelihood enhancement
projects.

2. Health care

• Eradicating hunger, poverty and malnutrition, promoting preventive healthcare

• sanitation and making available safe drinking water
• Promoting gender equality, empowering women, setting up homes and hostels for women
and orphans, setting up old age homes, day care centres.

3. Skill development and sustainable livelihoods

4. Financial inclusion

5. Support employee engagement in CSR activities

6. Capacity building for corporate social responsibility

 CHAPTER – IV

DATA ANALYSIS & INTERPRETATION

1. HOW FREQUENTLY DO YOU USE THE ONLINE BANKING SERVICES PER MONTH?

CRITERIA FREQUENCY PERCENTAGE

Less than 1
40% 40%
1 to 3times
20% 20%
3 to 8 times
20% 20%
8 to 12 times
15% 15%
over 12 times
5% 5%

Chart Title
11
10 5%
9 0
8 15%
7 0
6 20%
5 0
4 20%
3 0
2 40%
1 0
0 0.05 0.1 0.15 0.2 0.25 0.3 0.35 0.4 0.45

Series2 Series1

ANALYSIS:

In the above pie chart 40% of the respondents said they use the online services less than 1 times
per month.15% of the respondents said 8 to 12 times with the same and 5% of the respondents said
over 12 times with the above statement.
2. HOW SECURE DO YOU FEEL WHILE USING SERVICES PROVIDED BY DIGITAL
PAYMENTS?

CRITERIA PERCENTAGE

Very secure 20%

Secure 30%

Neutral 25%

Not at all secure 25%

PERCENTAGE
Not at all Very secure
secure

Secure
Neutral

Very secure Secure Neutral Not at all secure

ANALYSIS:

In the above pie chart 30% of the respondents feel secure while using services provided by digital
banking. 20% of the respondents feel very secure, 25% of the respondents feel neutral with the
same and 25% of the respondents feel not at all secure with the above statement.
3.OPINION ON ONLINE PAYMENT SYSTEM

CRITERIA PERCENTAGE

Highly Agree 34%

Agree 28%

Neutral 20%

Highly disagree 12%

Disagree 6%

PERCENTAGE
PERCENTAGE

40%
35%
30%
25%
20%
Highly Agree,
15% 34% Agree, 28%
10% Neutral, 20%
Highly disagree,
5% 12% Disagree, 6%
0% ,0 ,0 ,0 ,0 ,0
HIGHLY AGREE AGREE NEUTRAL HIGHLY DISAGREE DISAGREE

ANALYSIS:

In the above chart 34% of the respondents highly agree with the Online payment system. 20% of
the respondents neutral, 12% of the respondents highly disagree with the same and 6% of the
respondents disagree with the above statement.
4. which mode of application mostly using

CRITERIA PERCENTAGE

UPI Payments 48

Net Banking 7

Wallets 22

Card payments 9

IMPS / RTGS 14

PERCENTAGE

UPI Payments
14%

9% Net Banking

48%
Wallets

22%
Card payments
7%
IMPS / RTGS

ANALYSIS:

In the above pie chart 48% of the respondents using services payments through UPIs .22% of the
respondents through wallets, 14% of the respondents IMPS /RTGS
5. WHICH GROUP USERS ON ONLINE PAYMENTS

Age group No of respondents Percentage

18-25 37 61.67%

26-35 18 30%

36-45 3 5%

46 and above 2 3.33%

Total 60 100

Chart Title
Percentage No of respondents

Total 100
60

46 and above 3.33%

2

36-45 5%
3

26-35 30%
18

18-25 61.67%
37

0 20 40 60 80 100 120

ANALYSIS:

It shows the age wise classification of all respondents i.e 61.67% are between 18-25,

30% are between 26-35,5% are between 36-45 and 3.33% are above 45 years of age.
6. ARE YOU SATISFIED WITH ONLINE PAYMENT SYSTEM IN INDIA

CRITERIA PERCENTAGE

Satisfied 48%

Un satisfied 34%

Neutral 18%

PERCENTAGE
Neutral
18%

Satisfied
48%

Un satisfied
34%

ANALYSIS:

In the above pie chart 48% of the respondents using online payments satisfied .34% of the
respondents are not satisfied with online payment system, 18% of the respondents are neutral.
PAYMENTS

• Transfer Funds
• UPI
• NEFT
• RTGS
• IMPS
• Fund Transfer Abroad
• Cardless Cash

BILL PAY

• Payments to registered billers

• BBPS Bill Pay
• Fetch and Pay
• Payment Biller Demo
• List Of All Billers
ONLINE RECHARGE

• Prepaid Mobile
• DTH
• Data Card Recharge
• Toll Recharge

ONLINE TAX PAYMENT

• Direct/Indirect
• Tax e-filing
• Payment through Phone Banking - IVR
• Goods and Services Tax (GST)

LOANS PAYMENT

• ICICI Bank Scan To Pay

• ICICI Bank Click To Pay
• Call to Pay
• Credit Card Payment
• ICICI Bank Scan to Pay

PAYMENT THROUGH NEFT

• Pay at Stores
• Touch & Pay using NFC
• Pay using mVISA QR code
• Pockets
• Pay
• Aadhaar Pay
QUICK PAY

• Touch & Pay

• Quick Shopping
• Buy Flight and Bus tickets
• Recharge Prepaid Mobile/DTH
• Gift Vouchers
 CHAPTER – V
FINDINGS, SUGGESTIONS
&
CONCLUSIONS
FINDINGS

➢ In recent years due to technological advancement that are taking place in the financial

systems world over. 8% of the respondents agree with the Due to market competition in

Indian banking industry, the pattern of banking business is changing phenomenally. 12%

of the respondents neutral with the same and 10% of the respondents highly disagree with

the above statement.

➢ Secondary data is the data which is available in published form and which was collected

earlier by people for some purposes

➢ The Study is completely based on analysis basis in one unit branch

➢ The Customers are still unsatisfied with online payments of ICICI.

SUGGESTIONS

➢ ICICI Bank ltd has to improve their online payment system with hassle free

➢ Based on this study I suggest where customers feel charges are very high from ICICI

comparatively to other banks

➢ Internet relying for accounts management is highly preferred by the users. So strong sender

connections should be used

CONCLUSION

➢ Digital payments not only help individual to payments or receive money it also performs

multiple functions such as giving reminder about dues of any kind of payments to be made,

➢ it gives various offers to the user and its saves a lot of time, as per the initiative taken by

the government of India

➢ To make a digital India and due to the increase in smartphone selling and availability of

internet at a high speed and at an affordable price this is one of the core factors for

consumers to adopt the digital payment system as everything can be done at our finger tips

and we don’t need to go anywhere to use it.

In the near future there will be more increment in the usage of digital payment system and

definitely the digital India mission will be highly successful.

 BIBLOGRAPHY
BOOKS
➢ E-Banking in India – S P Jain

➢ Banking service operation (ICFAI)

➢ Indian Banking

➢ Dayadhar, R. S. (2015). Financial Inclusiveness: The Role of Mobile Money and Digital Financial
Services. Socrates

WEBSITES
www.icici.com

www.hdfc.com

www.shodhganga.com

www.scribd.com

NEWSPAPERS
➢ Financial Express

➢ Business Standard

➢ Times of India

➢ Economic Times