‘’E-BANKING SYSTEM OF SBI’’

A Project submitted to
University of Mumbai for partial completion of the degree of
Bachelor of Management Studies
Under the Faculty of Commerce
By
Ms. Pallavi Jaywant Thakare
Under the Guidance of
Prof. Ravi Ahuja
LAXMAN DEVRAM SONAWANE COLLEGE OF ARTS, COMMERCE &
BMS, KALYAN (WEST)
March 2021
 ’E-BANKING SYSTEM OF SBI’’
A Project submitted to
University of Mumbai for partial completion of the degree of
Bachelor of Management Studies
Under the Faculty of Commerce
By
Ms. Pallavi Jaywant Thakare
Under the Guidance of
Prof. Ravi Ahuja
LAXMAN DEVRAM SONAWANE COLLEGE OF ARTS, COMMERCE &
BMS, KALYAN (WEST)
March 2021
 CERTIFICATE
This is to certify that, Ms Pallavi Jaywant Thakare worked and duly completed her
project work for degree of Bachelor of Management studies under the Faculty of
Commerce in the subject of Finance her project is entitled ‘’ E-BANKING SYSTEM OF
SBI’’ under my supervision.
I further certify that the entire work has been by the learner under my guidance and
That no part of it has been submitted previously for any degree or Diploma of any
University.
It is her own work facts reported by her personal by her personal findings and
investments

Name and Signature of

Guiding Techer
Seal of the College

Date of Submission:
 DECLARATION

I the undersigned Ms. Pallavi Jaywant Thakare here by, declare that the work
embodied in this
project work ‘’ E-BNKING SYSTEM OF SBI ‘’ forms my own contribution to the
research work carried out Under the guidance of Prof. Ravi Ahuja is a result of my
own
Research work and has not been previously submitted to any other University for
Any other Degree/ Diploma to this or any other university.
Wherever reference has been made to previous works of others, it has been
clearly Indicated as such and included is the bibliography.
I, here by further declare that all information of this document has been obtained
and Presented in accordance with accordance with academic rules and ethical
conduct.

Name and Signature of the learner

Certified by
Name and signature of the Guiding Teacher
 ACKNOWLEDGMENT

I EXPRESS MY GRATEFUL THANKS TO PROF.RAVI AHUJA FOR HIS GUIDENCE AND

HELP RENDERED AT EVERY STAGE OF THE PROJECT WORK.

I EXPRESS SINCERE THANKS TO PRINCIPAL MS. ANNIE ANTONY WHO HAS GIVEN
VALUABLE MORAL SUPPORT. MOTIVATION, INSPIRATION, AND EDUCATIONAL
ATMOSPHERE IN THE INSTITUTE FOR THE SUCCESSFUL COMPLECTION OF THE
PROJECT WORK.

I ALSO WISH TO EXPRESS MY REGARDS TO THE LIBRARIAN FOR HER CO-

ORINATION IN PROVIDING ME WITH THE NECESSARY REFERANCE MATERIALS.
I ALSO WISH EXPRESS MY THANKS TO MY FAMILTY AND FACUTY MEMBERS FOR
CO- ORDINATION AND HELP GIVEN IN COMPLECTION OF THIS PROJECT.

MS. Pallavi Jaywant Thakare

 INDEX
Table Content
PAGE
SR NO. CONTENT NO.
1 CHAPTER NO. 1 INTRODUCTION
1.1 Internet 1
1.2 Internet banking system 2
1.3 History of Internet banking 3
1.4 Change brough in information technology 5
1.5 Service provided by SBI Internet banking 6
1.6 products & service 8
2 CHAPTER NO. 2 RESERCH METHODOLOGY 16
2.1 Objective study 17
2.2 Observation study 18
2.3 Need of study 19
2.4 scope of study 20
2.5 Data collection 21
2.6 Methodology 22
2.7 Questionnaire 23
3 CHAPTER NO.3 REVIEW LITERATURE 25
3.1 Meaning of E-banking system 26
3.2 Benefits of E-banking 28
3.3 Development of E-banking 30
4 CHAPTER NO.4 DATA ANALYSIS & TRANSACTION 31
4.1 E-banking transaction 35
4.2 E-banking tread 37
4.3 SWOC analysis of SBI's 39
5 CHAPTER NO.5 FINDING 40
6 CHAPTER NO.6 RECOMMENDATION & SUGGESTION 41
7 CHAPTER NO. 7 CASE STUDY 43
8 CHAPTER NO. 8 CONCUSION 44
9 CHAPTER NO.9 BIBLOOGRAPHY 45
INTRODUCTION
1.1 INTERNET
It is said that necessity is the mother of invention. And true, it is seed of
internet were sown in the ashes of the world war having bombed the
cities of Hiroshima and Nagasaki, US military was forced to provide the
answer to the question – What if someone bombed the USA? So for
many years after the war, most of the US military research concentrated
on ways and means to survive the nuclear holocaust. And one of the
most important strategic problem was – “How would us authorities
communicate with each other in the aftermath of a nuclear attack?”
computer were already there. But, communication networks were
connected to each in a private fashion- in sort of chain in chains:
somewhat like an electricity line to your home. This means that if even
one chain in the middle were blown up, the whole network would
collapse.
Than in the 1960’s the problem was taker by America’s foremost military
think tank, the Rand Corporation. After a lot of ideas were put up and
knocked down, Paul baron- a rand ‘’thinker’’ hit upon an idea. ‘’What if
the network was not built like a chain but like a fish net?’’ he said. If one
strand on the fish net broke the would still be functional. After spending
many agonizing hours over it, he came up with 11-volume report for the
pentagon. But, as fate would have it was rejected. By then, young
engineers were impressed by the idea and worked on it. Well before the
end of the decade, the first net was created and called ARPANET,
connecting four American research organization- university of Utah,
university of California in Los Angeles and Santa Barbara, and Stanford
research institute.
Internet as a communication medium and as a repository of information
has caught the imagination of computer users. This has fuelled an
unparalleled growth in number of Internet users.
1.2 INTERNET BANKING SYSTEM
Internet Banking System is a system that has been developed in order to
help clients with the daily day-to-day transactions. Internet banking
systems means that clients can now do banking at the leisure of their
homes. Also known as online banking, the system allows both
transactional and non-transactional features. Online banking or internet
banking allows customers to conduct financial transactions on a secure
website operated by the retail or virtual bank.
Banking transaction offered online vary by the institution. Most bank
generally offer basic service such as transfers and bill payments. Some
banks also allow customers to open up new accounts and apply for credit
cards through online banking portals. Other functions may include
ordering checks, putting stop payments on checks, or reporting a change
of address.
Checks can now be deposited online through a mobile app. The customer
simply enters the amount before taking a photo of the front and back of
the check to complete the deposit.
Online banking does not permit the purchase of traveller checks, bank
drafts, certain wire transfers, or the completion of certain credit
applications like mortgages. These transactions still need to take place
face-to-face with a bank representative.
1.3 HISTORY OF INTERNET BANKING
 The term online banking was first started in 80’s. The term online
became popular in the late 80s and referred to the use of a terminal,
keyboard and TV (or monitor) to access the banking system using a
phone line. ‘Home banking’ can refer to the use of a numeric keypad to
sent tones down a phone line with instruction to the bank. Online
services started in New York in 1981 when four of the city’s major banks
(Citibank, Chase Manhattan, Chemical and Manufacture Hanover)
offered home banking services using the videotext system. Become of
the commercial failure of videotext these banking services never
became popular except in France where the use of videotext was
subsidized by the telecom provider and the UK, where the Prestel
system was used.
 The US’s first home online banking services was set up by the
Nottingham Building Society (NBS) in 1983. The system used was based
on the US’s Prestel system and a computer, such as the BBC Micro, or
keyboard ( Tandata Td1400 ) connected to the telephone system and
television set. The system (known as ‘Home link’) allowed on-line
viewing of statements. Bank transfers and bill payment. In order to
make bank transfers and bill payments, a written instruction giving
details of the intended recipient had to be sent to the NBS who set the
details up on the Home link system. Typical recipients were gas,
electricity and telephone companies and accounts with other banks.
Details of payments to be made were input into the system by the
account holder via Prestel. A cheque was then sent by NBS to the payee
and an advice giving details of the payment was sent to the account
holder. BACS was later used to transfer the payment directly.
 Stanford Federal Credit Union was the first financial institution to offer
online internet banking service to all of its members in Oct,1994 Later
on it was adopted by worldwide banks
 State bank of India:
 State bank of India is the nation’s largest and oldest bank. Tracing its
roots back some 200 years to the British East India Company (and than
15,000 branches within India, where it also owns majority stakes in six
 associate banks. State Bank of India (SBI) has more than 80 offices in
nearly 35 other countries, including multiple locations in the Us,
Canada, and Nigeria. The bank has other units devoted to capital
markets, fund management, factoring and commercial services, credit
cards, and brokerage services. The Reserve Bank of India owns about
60% of State bank of India.
 Internet banking at State Bank of India:
WHERE SBI WAS?

 In early 1990’s more than 7000 branches were using traditional

manual procedures.
 These manual procedures were inherited from the Imperial Bank.
 Traditional procedures were evolved over decades
 Very few changes were brought in those procedures as per the
need of time.
 In that time, mainframe or mini computers were used for MIS,
RECONCILLATION & FUND SETTLEMENT PROCESS, or we can say
that for backhand operations purpose.
1.4 CHANGES BROUGHT IN INFORMATION TECHNOLOGY
BY SBI
 In the next decade internet facility was provided for individuals.
 All SBI branches were connected and ATM’S were launch
 2001- KMPG appointed consultant for preparing IT plan for the
Bank
 Later on Core banking proposed by the IT consultancy company.
 2002- All branches computerized but on decentralized systems,
there the initiative of core banking took place
 2008- more than 6500 branches (95% of business) on Core Banking
Solution (CBS)
 Internet Banking facility for Corporate customers were also
launched in early 2008
 More Interfaces developed with e-Commerce & other sites through
alternate channels like ATM & Online Banking.
 All Foreign Offices were brought on Centralized Solution
 Large network is playing the role of backbone for connectivity
across the country
 Multiple Service Providers are providing the links- BSNL, MTNL,
Reliance, Tata & reliance which are making the system errorless and
provide high speed.
 Multiple Technologies to support the networking infrastructure-
Leased up, CDMA & VSAT.
1.5 SERVICES PROVIDED BY SBI INTERNET BANKING
 ONLINE SBI (WWW.ONLINESBL.COM): Stand Bank of India
is India’s largest bank with a branch network of over 11000
branches and 6 associate banks located even in the remotest parts
of India. State Bank of India (SBI) offers a wide range of banking
products and services to corporate and retail customers. Online SBI’
is the Internet banking portal for State Bank of India. The portal
provides anywhere, anytime, online access to accounts for state
Bank’s Retail and Corporate customers. The application is
developed using the latest cutting edge technology and tools. The
infrastructure supports unified, secure access to banking services
for accounts in over 11,000 branches across India.
 RETAIL BANKING: The Retail banking application is an
integration of several
 Issue Demand Drafts online
 funds to own and third party accounts
 Credit beneficiary accounts using the VISA Money Transfer,
RTGS/NEFT feature
 Generate account statements
 Setup Standing Instructions
 Configure profile settings
 Use e-Tax for online tax payment
 Use e-pay for automatic bill payments
 Interface with merchants for railway and airline reservations
 Avail DEMAT and IPO services
 CORPORATE BANKING: The Online SBI corporate banking
application provides feature to administer and manage corporate
accounts online. The corporate module provides roles such as Regulator,
Admin, Up loader, Transaction Maker, Authorizer, and Auditor. These
roles have access to the following functions:
 Mange users, define rights and transaction rules on corporate
accounts
  Access accounts in several branches with a single sign-on
mechanism
 Upload files to make bulk transaction to third parties, supplier,
vendor and tax collection authorities.
 Use online transactional features such as fund transfer to own
accounts, third party payments, and draft issues
 Make bill payments over the Internet.
 Authorize, modify, reschedule and cancel transaction, based on
rights assigned to the user
 Generate account statement
 Enquire on transaction details or current balance
 VALUE ADDED SERVICES
 Tax payment to central and state governments though site to the
site integration.
 Supply Chain Finance (e-VFS-Electronic Vendor Finance Scheme)
 Direct Debit Facility
 E Collection Facility for:
 Core Banking Transactions
 Internet Bank transactions for incoming RTGS/NEFT Transactions
 Internet banking transactions for SBI and associate banks
 Debit facility where suppliers can directly debit their customer’s
account through internet banking.
1.6 PRODUCTS & SERVICES
 E-Ticketing
 SBI E-Tax
 Bill Payment
 RTGS/NEFT
 E-Payment
 Fund Transfer
 Third Party Transfer
 Third Party Transfer
 Demand Draft
 Cheque Book Request
 Account Opening Request
 Account Statement
 Transaction Enquiry
 Demand Account Statement
 Donation

E-TICKETING: You can book your railway, air and bus tickets online
through online SBI
To book your train ticket, just log on to ircte.co.in and create an ID there at if
you do not have one. Submit your travel plan and book the ticket(s)-either
 i-ticket (where the delivery of tickets will be made at your address) or
 E-tickets (wherein after successful payment transactions, an e-ticket is
generated which
Can be printed any time. For an e-ticket, the details of photo identity card
will required to be filled in) and select State Bank of India in the payment
options. You will be redirected to Internet Banking site of SBI
(www.onlinesbi.com) After submitting the respective ID and password, you
can select your account. After a successful debit, Railways will generate the
ticket. E-ticket can be printed by you whereas the i-ticket will be dispatched
by IRCTC at the give address. Service changes @ Rs.10/- per transaction shall
be levied in addition to the cost of the ticket. Cancellation of E-ticket can be
done by logging on to IRCTC’s site; refund amount will be credited to your
account directly within 2-3 days. For cancellation of i-ticket, you shall be
required to submit your ticket at a computerized counter of Railways and on
cancellation; the amount shall be credited back to your account.
You can also book your Air ticket through the e-ticketing feature. Logon
to Indian Airlines website to make a payment for an e-ticket through State
Bank of India, you need to select SBI as the payment option. The payment
request will be redirected to Internet Banking site. The request may be
processed based on values sent from the airlines website. Once a
transaction is processed, an appropriate response will be sent to airlines site
to update the status of the transaction. You can print the E-ticket
immediately.
To book bus tickets to destinations in Karnataka, log on to the KSRTC
website. Provide details about the start and end point of your journey, data
of journey and number of tickets. Verify availability of seats on the selected
data and confirm transaction. Select ‘Online SBI’ to make the payment.
Provide your credentials and select the SBI account that will be debited for
the payment. You are provided a KSRTC reference number for your e-Ticket.

SBI E-TAX
You can pay your taxes online through SBI E-Tax. This facility enables you to
pay TDS, Income tax, Indirect tax, Corporation tax, Wealth tax, Estate Duty
and fringe Benefits tax. Click the e-Tax link in the home page. You are
displayed a page with two links Direct Tax and Indirect Tax. Click the Direct
Tax link. You will be redirected to the NSDL site where you can select an
online challan based on the tax you wish to pay. Provide the PAN, name and
assessment year, nature of payment and bank name. On selecting the bank
name as SBI and submitting the form, for will be redirected to the Internet
Banking site. After submitting the respective ID and password, you can
select your account for making payment of taxes. After payment is
successful you can print the E-Receipt for the payment. The E-receipt can be
printed at a later date also and the same can be retrieved from: Enquiries >
Find Transaction > Status Enquiries > Clink on the respective transaction to
print the tax receipt.
The Indirect Tax link is used to make Central Excise and Service Tax
payments to Central Board of Excise and Customs. The online payment
feature facilitates anytime, anywhere payment and an instant E-Receipt is
generated once the transaction is complete. The Indirect Tax payment
facility is available to Registered Central Excise/Service Tax Assesses who
possesses the 15 digit PAN based Assesses Code. You can make CBEC
payments using the Indirect Taxes link available in the payment/Transaction
tab. You need to provide your assesses code as registered with CBEC and
select the minor heads towards which you intend to pay tax. Select the
appropriate tax type and enter the tax amount. Select an account for
debiting the total tax amount. You can use any of your transaction accounts
to make the payment. If a payment is successful, CBEC provides a link to
generate an E-Receipt for the payment. Internet banking customers can pay
tax through site to site integration. For government agencies, which are not
Internet-enabled, ‘Online SBI’ offers the Government Tax payment facility.
This facility is available as a post login feature in the retail and corporate
banking site of the Online SBI portal.

BILL PAYMENT
A simple and convenient service for viewing and paying your bills online.
 No more late payments
 No more queues
 No more hassles of depositing cheques

Using the bill payment you can view and pay various bills online,
directly from your SBI account. You can pay telephone, electricity,
insurance, credit cards and other bills from the comfort of your house
or office, 24 hours a day, 365 day a year. Simply logon to
http://www.onlinesbi.com/ with your credentials and register the
biller, you can make payment online. You can see ‘how do I’ to learn
the steps for using the facility.
You can also set up Auto pay instruction with an upper limit to ensure
that your bills are paid automatically whenever they are due. The
upper limit ensures that only bills within the specified limit are paid
automatically, thereby providing you complete control over these
payments.
The e-PAY service is available in various cities across the country and
you can now make payments to several billers in your region.
RTGS/NEFT
You can transfer money from your State Bank account to accounts in
other banks using the RTGS/NEFT service. The RTGS system facilitates
transfer of funds accounts in one bank to another on a ‘’real time’’ and
on ‘’gross settlement’’ basic. This system is the fastest possible interbank
money transfer facility available through secure banking channels in
India. RTGS transaction requests will be sent to RBI immediately during
working hours post working hours requests are registered and sent to
RBI next working day. You can also schedule a transaction for a future
data. You can transfer an amount of Rs.1 lac and above using RTGS
system.
National Electronic funds Transfer (NEFT) facilitates transfer of funds to
the credit account with the other participating bank. RBI acts as the
service provider and transfers the credit to the other bank’s account.
NEFT transactions are settled in batches based on the following timings
1.6 settlements on weekday – at 09:00,11:00,12:00,13:00,15:00 and
17:00 hrs.
2.3 settlement on Saturdays – at 09:00,11:00 and 12:00 hrs.
Please note that all the above timing are based on Indian Standard Time
(IST) only, In order to transfer the funds to an account with other bank,
kindly ensure that the bank branch of the beneficiary is covered under
the RGTS/NEFT payment system. It is recommended that you choose the
Bank/ Branch from the drop down option provided under the link ‘’Add
Interbank beneficiary’’ and exercise care to provide the correct account
number and name of the beneficiary.

E-PAYMENT
You can pay your insurance premium, mobile phone bills and also you
can purchase mutual fund units by coming from the biller’s website and
selecting state bank of India in the payment option.
LIC PREMIUM: For paying premium of LIC policy logon to
www.licindia.com and register your policy details. When the premium
SBI Mutual FUND: You can invest is the SBI Mutual Fund schemes
online. Logon to www.sbimf.com and select the scheme in which you
want to make investment in the payment option select State Bank of
India.
CC Avenue: Enjoy shopping at the CC Avenue Shopping Mall and
purchase from a wide variety of products and service through CC
Avenue Certified Vendors. Make payments for your purchases using
your internet enabled SBI accounts.

FUND TRANSFER
The funds transfer facility enables you to transfer fund within your
account in the same branch or other branches. You can transfer
aggregating Rs.1 lakh per day to own account in the same branch and
other branches. To make a funds transfer, you should be an active
Internet Banking user with transaction right. Fund transfer to PPF
account is restricted to same branch.
Just log on to retail section of the Internet Banking site with your
credentials and select the Funds Transfer link under payment/Transfers
tab. You can see all your online debit and credit accounts. Select the
debit account from which you wish to transfer funds and the credit
account into be credited. Enter the amounts and remarks. The remarks
will be displayed in your account statement for this transaction. You will
be displayed the last five funds transfer operations on your accounts.
On confirming the transaction, you will be displayed a confirmation
page with the details of the transaction and the option to submit or
cancel the funds transfer request. A reference number will be
generated for your record.

THIRD PARTY TRANSFER

You can transfer funds to your trusted third parties by adding them as
third party accounts. The beneficiary account should be any branch SBI.
Transfer is instant. You can do any number of Transaction in a day for
amount aggregating Rs. 1lakh.
To transfer funds to third party having account in SBI, you need to add
and approve a third party, you need to register your mobile number in
personal details link under profile section. You will receive a One Time
SMS password on your mobile phone to approve a third party. If you do
not have a mobile number, third party approval will be handled by your
branch. Only after approval of third party, you will be able to transfer
funds to the third party. You can set limits for third party transactions
made from your account or even set limits for individual third parties.

DEMAND DRAFT
The Internet Banking application enables you to register drafts requests
online. You can get demand draft from any of your Account (Saving
Bank, Current Account, Cash Credit or Overdraft). You can set limits for
demand drafts issued from your accounts or use the bank specified limit
for demand drafts.
You can opt to collect the draft in person at your branch, quoting a
reference to the transaction. A printed advice can also be obtained from
the site for your record.
Alternatively, you may request the branch to courier it to your
registered address, and the courier charges will be recovered from you.

CHEQUE BOOK REQUEST

You can request for a cheque book online. Cheque book can be
requested for any of your Savings, Current, Cash Credit, and Over Draft
accounts. You can opt for cheque books with 25, 50 or 100 cheque
leaves. You can either collect it from branch or request your branch to
sent it by post or courier. You can opt to get the cheque book delivered
at your registered address or you can provide an alternate address.
Cheque book will be dispatched with in 3 working days from the date of
request.
Just log on to retail section of the Internet Banking site with your
credentials and select the Cheque Book link under Requests tab. You
can view all your transaction accounts. Select the account for which you
require a cheque book; enter the number of cheque leaves required
and the mode of delivery. Then, submit the same.

ACCOUNT OPENING REQUEST

‘Online SBI’ enables you to open a new account online. You can apply for
a new account only in branches where you already have accounts. You
should have an INB-enabled account with transaction right in the branch.
Funds in an existing account are used to open the new account. You can
Saving, Current, Term Deposit and Recurring Deposit accounts of
Residents, NRO and NRE types.
Just log on to retail section of the Internet Banking site with your
credentials and select the New Account link under Requests tab. You can
see all types of accounts. Select the account and account type you wish
to open and submit the same. Then, you need to select the branch and
enter the initial amount to open the account. You can select any of your
accounts for debiting the initial amount. Than, submit the transaction.
Your new account opening request will be processed by the branch.

ACCOUNT STATEMENT
The Internet Banking application can generate an online, downloadable
account statement for any of your account for any date range and for
any account mapped to your username. The statement includes the
transaction details, opening, closing and accumulated balance in the
account. You can generate the online account statement for any date
range or for any month and year. The account statement can be viewed
online, printed or downloaded as an Excel or PDF file. You also have the
option to select the number of records displayed in each page of the
statement. The options are 25, 50, 75, 100 and ALL.

TRANSACTION ENQUIRY
‘Online SBI’ provides feature to enquire status of transaction. You can
view and verify transaction details and the current status of
transactions. Your VISA transactions can also be viewed separately. Just
log on to retail selection of the Internet Banking site with your
credentials and select the status Enquiry link under the Enquiries tab.
You will be displayed all online transaction you have performed. To view
details of individual transactions, you need to click the Transaction
Reference number link. You are displayed the debit and credit account
details, transaction amount, narration and transaction status.
DEMAT ACCOUNT STATEMENT
‘Online SBI’ enables you to view Demand account statement and
maintain such accounts. The bank acts as your depository participant. In
the third party site, you can mark a lien on your demand and use the
funds to trade on stock using funds in your SBI savings account. You can
view Demand account details, and generate the following statements:
statement of holding, statement of transactions, statement of billing.

DONATION
You can make donation to religious and charitable institution by using
Internet Banking of SBI. Simply log on to http://www.onlinesbi.com/
with your credentials and go to payment and transfer and click on make
donation link. After selecting the debit account the religious/charitable
institution that you want to offer donation. After successful payment
you can print an E-receipt for the donation made.
RESERCH METHODOLOGY
This research paper is based on secondary data which is to be
collected from the official website of state bank of India and reserve
Bank of India.
The research was in the forms of written as well as verbal information.
1. Primary data – The information about the selected bank is
gathered from the discussion with the employees of bank. For
data collection. Observation and interview method is used.
Interview of manager can be conduct to get information.
2. Secondary data – The secondary data was collected from summary
reports, e-mails, circulars, book and an annual report of the banks.
3. Data analysis – Researcher has selected SBI and HDFC in different
as a sample for study. In above study
2.1 OBJECTIVE OF STUDY

 To understand the concept of internet banking and importance,

to bank as well as customers.
 To get aware of various aspects of net banking
 To build up SWOC analysis of internet banking of SBI
 To assess the impact of service quality dimensions on customers
satisfaction in e-banking.
 To assess the impact of perceived value of e-banking service on
customers satisfaction.
 To identify the most widely used application of internet banking.
 To find out the reasons for preferring internet banking.
 To asses the brand perception on customer satisfaction in e-
banking.
 To asses the service quality of e-banking.
 To find out the drawbacks of e-banking
 To determine the factors which constitute e-banking
functionality.
 To reveal the adoption of e-banking factors.
2.2 OBSERVASTION OF STUDY

Observation technique is used where it is not possible for the

researcher to go physically and collect the information. Observation
become a scientific tool for for the research to the extent that it serves
a formulated research purpose, is planned systematically, is related to
more general theoretical proposition is recorded systematically and is
subjected to check and validity and reliability
One great asset of observational technique is that it is possible to
record behaviour as it occurs, observation is not nearly something OR
activity OR situation but it is watching. Closely and systematically with
the purpose in a gives situation with given resources observation is the
basic method of obtaining information about the world around you.
Advantage of observation technique is that of simplicity, direct and
study , greater accuracy and therefore data more dependable.
2.3 NEED OF STUDY

This study is needed to find out the working of internet banking of SBI
and its importance to customer as well as to bank.
 Determining growth direction of online banking service
 Promoting E-banking service in banking industry
 Customer perception will be taken into consideration about the
internet banking.
2.4 SCOPE OF STUDY

The study is made taking consideration of whole state bank of

India. It investigates about all application of online banking in SBI. It
would help society to understand the usefulness of on- line banking.
The study will also help to get the knowledge about process of internet
banking and usefulness to banking industry. As the study contains the
360 degree information regarding SBI and its internet banking, Hence
the study will lead to new ways to tackle the problems and the SWOC
of SBI in respect of internet banking.
2.4 DATA COLLECTION

The data is to be collected from personal development manager

of SBI, Mr. Yadao and by the official website of state bank of
India and reserve bank of India.
The project is divided into various chapters dealing with various
issues in the project. There are in total seven chapters.
 Inability to answer research question accurately
 Inability to repeat and validate the study
 Distorted finding resulting in wasted resources
 Misleading other research to pursue fruitless avenues of
investigation
 Comp missing decisions for public policy
 Causing harm to human participants and animal subjects

2.6 METHODOLOGY
 Primary source : The study is based on both of primary and
secondary data. For the purpose of case study primary data have
been collected from the people of UTTARPARA through phone
case social network and direct interview from them.

Secondary source : The secondary data have been collected from

different articles & website resources such as
www.wikipedia.com, www.google.co.in and so many others we
have used simple picture, tables, & graphs to analysis & present
the data. Apart from this I also followed my supervisor
instructions to finish the project.

2.7 QUESTIONNAIRE
1. How long have you been using the WWW ?
 Less than 1 month
 1 to 6 months
 6 to 12 months
 More than 1 year

2. How many hours per week do you use your computer for
fun/play?
 Less than 1
 1 to 5 hours
 5 to 10 hours
 10 to 20 hours
 Over 20 hours

3. Do you use any e-banking services?

 Yes
 No

4. How often do you use E-banking?

 Daily
 Weekly
 Monthly
 Rarely

5. Is your bank provides proper security in E-banking?

 Yes
 No

6. Please rate how much convenient do you think of using e-

banking?
 5
 4
 3
 2
7. In your banks have a transaction tracking system?
 Yes
 No

8. If you than which service you get from bank?

 Online banking
 Mobile banking
 Credit card
 ATM
 Telephone banking
 Others

9. Are you satisfied with the service provided by the private banks?
 Yes
 No

10. Are you using online banking?

 Yes
 No
REVIEW LITERATURE

The banking sector in India has made remarkable progress since the
economic reforms in 1991. New private sector banks have brought the
necessary competition into the industry and spearheaded the changes
towards higher utilization of technology. Improved customer service and
innovation products. Customers are now becoming increasingly conscious
of their rights and are demanding more than ever before. The recent
trends show that most banks are shifting from a ‘’product-centric model’’
to a ‘’customer- centric model’’ as customer satisfaction has become one
of the major determinants of business growth. In this context,
prioritization of preferences and close monitoring of customer
satisfaction have become essential for banks. Keeping these in mind, an
attempt has been made in this study to analyse the factors that are
essential in influencing the investment decision of the customers of the
public sector banks. For this purpose, factor analysis, which is the most
appropriate technique, has been used to identify the groups of
determinants. Factor analysis identifies common dimensions of factors
from the observed variables that link together the see variables and
provides into the underlying structure of the data.

 An introduction to E-Commerce: written by ram Kumar Roy & day

and published by the Elegant publication

 E-Commerce: written by prof. (Dr) Sachin Kumar Chakraborty &

Prof. Akash Chatterjee and publication by B. B. Kundu

 Introduction to information technology & its business application:

written by A. k. Patil & A. Das and published by Kalimata Pustakalaya

3.1 MEANING OF E-BANKING SYSTEM

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 cheque or
cash. You can use electronic funds transfer to:

 Have your pay check deposited directly into your bank or

credit union checking account.

 Withdraw money from your checking account from an

ATM machine with personal identification number (PIN),
at your convenience, day or night.

 Instruct bank or credit union to automatically pay certain

monthly bills from your account, such as your auto loan or
your mortgage payment.

 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
income, spending, saving, investing, recordkeeping, bill-
payment and taxes, along with basic financial analysis and
decision making.
3.2 BENEFITS OF E-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
transaction 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.
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 service 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 application 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 relation and satisfaction.
Image- A bank seems more state of the art to a customer offer
internet access. A person may not want to use internet banking but
having the service available given a person the felling that their banks
is on the cutting image.

For Customer:

Bill pay: bill pay is a service offered through internet banking that
allows the customer to set up bill payments to just about anyone.
Customer can select the person or company whom he wants to make
a payment and bill pay will withdraw the money from his account and
send the payee a paper check or an electronic payment
Other important facilities: E-banking given customer the control over
nearly every aspect of managing his bank accounts. Besides the
customers can, buy and sell securities, check stock market
information, check currency rates, check balances, see which checks
are cleared, transfer money, view transaction history and avoid going
to an actual bank. The best benefit is that internet banking is free. At
many banks the customer doesn’t have to maintain a required
minimum balance. The second big benefit is better internet rates for
the customer.
3.3 DEVELOPMENT OF E-BANKING

 ICICI was the first bank to initiate the internet banking

revolution in India as early as 1997 under the brand name
‘Infinity’
 ICICI Bank kicked off online banking way back in 1996. But even
for the internet as a whole, 1996 to 1998 market the adoption
phase, while usage increased only in 1999- due to lower ISP
online charges, increased only in 1999-due to lower IPS online
charges, increased PC penetration and a tech- friendly
atmosphere.
 The concept of internet banking has been simultaneously
evolving with development of the world wide web.
 Programmers working on banking data bases came up with
ideas for online banking transactions, some time during the
1980’s
 The online shopping promoted the use of credit cards through
internet.
 The first online banking service in united states was
introduction, in Oct 1994.
 The service was development by Stanford federal credit union,
which is an financial institution.
 In May 1995: wells far go- the first bank in the world to offer
customer access to their accounts over the internet.
DATA ANALYSIS & TRANSACTION

The data is analysed through the cross tabulation with the help of SPSS
as given below:
Bank technological development *better customer service

CROSSTAB
Bank technological development *Bank competitive Ability
This can be concluding that increase in adoption of modern
technology by banks improve their competitive ability too.
4.1 E-BANKING TRANSACTIONS
The introduction of new technologies has radically transformed
banking transactions. In the past, customers had to come physically into
the bank branch to do banking transactions including transfers, deposits
and withdrawals. Banks had to employ several tellers to physically make
all those transactions. Automatic teller machines (ATNs) were them
introduced which allowed people to do their banking on their own,
practically anytime and anywhere. This helped the banks cut down on the
number of tellers and focus on managing money. The internet then
brought another venue with which customers could do banking. Reducing
the need for ATMs. Online banking allowed customers to do financial
transactions from their PCs at home via internet. Now with the
emergence of wireless application protocol (WAP) technology, banks can
use the infrastructure and applications developed for the internet and
move it to mobile phones. Now people no longer have to be tied to a
desktop PC to do their banking. The WAP interface is much faster and
convenient than the internet, allowing customers to see account details,
transaction details make bill payments, and even check credit card
balance.
The cost of the average payment transaction on the internet is minimum.
Several studies found that the estimated transaction cost through mobile
phone is 16 cents, a fully computerized bank using its own software is 26
cents, a telephone bank is 54 cents, a bank branch, $1. 27, an ATM, 27
cents, and on the Internet it costs just 13 cents. As a result, the use of the
internet for commercial transaction started to gain momentum in 1995.
More than 2,000 banks in the word now have transactional websites and
the growth of online lending solutions is making them more cost efficient.
Recent developments are now encouraging banks to target small
businesses as a separate lending category online.
Bank are increasingly building payment infrastructure with various
security mechanisms (SSL, SET) because there is tremendous potential for
profit, as more and more payments will pass through the internet.
However, the challenge for banks is to offer a payments back- bone
system that will be open enough to support multiple payment
instruments (credit cards, debit cards, direct debit to accounts, e-checks,
digital money etc.) and scalable enough to allow for a stable service
regardless of workload.
The market for electronic bill presentment and payment (EBPP) is
growing. According to a study, 18 million households in the US are
expected to pay their bills online by 2003 compared to 2 million
households in 2001. As more number of bill payers are getting online,
several banks are making efforts to find ways to meet the growing needs
of EBPP. Established banks can emerge as key online integrators of
customer bills and can emerge as key online integrators of customer bills
and can capitalize on this high potential market. Growing with the
popularity of EBPP is also the paying of multiple bills at a single site
known as bill aggregation. Offering online bill payment and aggregation
will increase the competitiveness and attractiveness of E-banking services
and will allow banks to generate service- fee income from the billers.
In the B2B segment, the customer value proposition for online bill
payment is more compelling. B2B e-commerce is expected to grow from
$406 bn in 2000 to $2.7 to by 2004, and more than half of all transactions
will be routed through online B2B marketplaces. There is a need for
automated payment systems to reduce cost and human error, and
enhance cash-flow management. To meet this need, a group of banks
and non-financial institutions led by Citibank and wells far go have
formed a company called financial settlement matrix (FS Mx). It provides
business buyers and sellers with access to secure payment processing,
invoicing and other services that financial services firms offer.
A B2B marketplace would provide minimum value to its customers if it
just matches buyers and sellers, leaving the financial aspects of
transactions to be handled through traditional non- internet channels.
Hence, the marketplace must be capable of providing the payment
processing, treasury management services, payables/receivables data
flowers, and credit solutions to complete the full cycle of a commercial
transaction on the internet. The web-based B2B e-commerce offers
tremendous opportunities for banks, payment technology venders and e-
commerce companies to from strategic alliances. This new from of
collaboration between partners with complementary core competencies
may prove to be an effective business model for e- business.
4.2 E-BANKING TREND

Internet banking is gaining ground. Banks increasingly operate

websites through which customers are able not only to inquire about
account balances and internet and exchange rate but also to conduct a
range of transactions. Unfortunately, data on internet banking are scarce,
and differences in definitions make cross-country comparisons difficult.
Even so, one finds that internet banking is particularly widespread in
Austria, the Scandinavian countries, Singapore, and Switzerland, where
more than 75 percent of all banks offer such services (see chart).
Then Scandinavian countries have the largest number of internet users,
with up to one-third of bank customers in fin land and Sweden taking
advantage of E-banking. In the united states, internet banking is still
concentrated in the largest banks. In mid-2001, 44 percent of national
banks maintained transactional websites, almost double the number in
the third quarter of 1999. These banks account for over 90 percent of
national banking system assets. The larger banks tend to offer a wider
array of electronic banking services, including loan application and
brokerage services. While most U.S. consumers have account with banks
that offer internet services only about 6 percent of them services.
To data, most banks have combined the new electronic delivery channels
with traditional brick and mortar branches (*brick and click’’ banks), but a
small number have emerged that offer their products and services
predominantly, or only, through electronic distribution channels. These
*virtual’’ or internet-only banks do not have a branch network but might
have physical presence, for example, an administrative office or non
branch facilities like kiosks or automatic teller machines. The united
states has about 30 virtual banks; Asia has 2, launched in 2000 and 2001;
and the European union has several- either as separately licensed entities
or subsidiaries or branches of brick and mortar banks.
The committee realised the urgent need for training. Research and
development activities in the banking technology area. Banks and
financial institutions started setting up Technology based training centres
and colleges. However, a need was felt for an apex level institute which
could be a think- tank and brain trust for banking Technology.
The committee recommended a variety of payment applications which
can be implemented with appropriate technology upgradation and
development of a reliable communication network. The committee also
suggested setting up of an information technology institute for the
purpose of research and development as well as consultancy in the
application of technology to the banking and financial sector of the
country. As in 1996 as an autonomous centre, for development and
research in banking technology at Hyderabad.
4.3 SWOC ANALYSIS OF SBI’S INTERNET BANKING

STRENGTHS
 Quicker time to market
 Ability to introduce new products and services quickly and
successfully
 Customers are given access to information easily across any
location
 Greater customer loyalty
 Easy online application for all accounts, including personal
loans and
 24 hours account access
 Quality customer service with personal attention

WEAKNESSES
 Lack of awareness among the existing customers regarding
internet banking
 Obsolesce of technology take place very soon specially in
terms of security on internet.
 Procedure for applying for id and password for using services
related to internet banking takes time.
 Lack of knowledge is found regarding banking in employees
of SBI
 Implementation of newer technology is little bit complicated
 Employees need training to obtain knowledge regarding I-
banking.

OPPORTUNITIES
 Approximately 95% of customers are not using internet
banking.
 Core competency can be achieved in terms of banking if
focus is made on awareness of internet banking
 Can become first virtual bank of India.
  Concentration of various service should be made using
internet banking.

CHALLENGES
 Maintaining business edge over competitors in the context
of sameness in IT infrastructure
 Multiple vendor support is necessary for working of highly
complex technology
 Maintaining secured IT infrastructure for business
operations
 Alternative must be there in case of failure of system
FINDINGS

This study states that internet banking provides greater reach to

customer feedback can be obtained easily as internet is virtual in
nature. Customer loyalty can be gain. Personal attention can be given by
bank to customer also quality service can be served. After studying the
SWOC analysis, we came to know various strengths of SBI such as
quality customer service, greater reach, customer loyalty, easy access to
information, 24 hours access, easy online applications etc. SBI should
put efforts to multiply the number of strengths. In terms of weakness I
come to know some of the major weakness they are lack of awareness
of internet banking among the customers, obsolesce of technology
related to security, complicated procedures of availing internet banking
facilities, lack of knowledge among the employees of SBI. SBI should
concentrate on the weaknesses and reduce them to zero.
RECOMMENDATIONS AND SUGGESTIONS

 TRAINING AND AWARENESS AMONG EMPLOYESS

It is recommended that state bank of India should conduct various

training programmes for the employees, so that they will get
aware with the terms of internet banking. After such programmes
they can create awareness amongst the consumers.

 EXCHANGE OF INFORMATION ON THREATS AND VULNERABILITIES

AT APPROPRIATE FORUMS

There should be an open end discussion on the threats and

vulnerabilities coming across the functioning of internet banking
work by the employees in the various official forums and meets.

 BUILD AN OPTIMAL OPERATING MODEL BY UNDERSTANDING

WHICH ACTIVITES TO RETAIN COLLABORATE AND OUTSOURCE

There should be clear sight of operations which needs to

outsource to other companies, this will lead to case in work for
employees. Outsourcing operation like, cyber security
department, building IT structure on internet.

 BANK SHOULD CREATE AND SUSTAIN CUSTOMER, INVESTOR AND

REGULATION CONFIDENCE BY ADOPTING INTERNATIONAL
ACCOUNTING STANDARDS

Adopting international standards adds some more star to the glory

of any company, SBI should impose such standards when it comes
to internet banking or virtual banking, this will enhance the
goodwill of SBI among regulator, customers and inventors.

 BANK SHOULD ANTICIPATE AND GET PREPARED FOR REGULATORY

CHANGES
 Laws regarding IT or cyber laws get change as per the need. SBI
should anticipate such kind of changes and get loaded with various
plans and action.

 FOCUS ON IDENTIFYING CORE COMPETENCE

SBI possess some unique characteristics or positive points in it and

with the help of them it can become a leader in market. Bank
should identify such points and concentrate to flourish them
more. This can be done with the help of internet banking, as
internet banking of SBI is getting largely accepted by customers.

 INCREASING USAGE OF MOBILE PHONES IS GOING TO

REVOLUTIONIZE THE BANKING CULTURE IN NEAR FUTURE

Mobile banking is also getting popular in the segment of internet

banking thus this can add some more steps to progress for SBI.
Bank is into the mobile banking but it is providing limited features.

 MORE STRESS SHOULD BE GIVEN ON SECURITY CONCERN ON

INTERNET

There are some people who are into unethical practices of backing
of accounts of customers. This is nothing but the breach in the
security of the SBI on internet. There should be some measures in
order to prevent such practices. IT structure should be
unbreakable.
CASE STUDY

The state bank of India is the oldest and larges bank in India, with more
than $250 billion (USD) in assets. It is the second- largest bank in the
world in number of branches; it opened its 10,000 branch in 2008. The
bank has 84 international branches located in 32 countries and
approximately 8,500 ATMs. Additionally , SBI has controlling or
complete internet in a number of resulting in the availability of banking
services at more than 14,600 branches and nearly 10,000 ATMs.
SBI traces its heritage to the 1806 formation of the bank of calculate
the bank was renamed the bank of Bengal in 1809 and operated as one
of the three premier ‘’presidency’’ banks ( the presidency banks had
the exclusive right to manage and currency and were provided capital
to establish branch networks) In 1921 the government the three
presidency banks into the imperial bank of India. The imperial bank of
India continued until 1955, when India’s central bank, the reserve bank
of India, acquired the majority interest in the bank and changed its
name to the state bank of India (SBI).
In 1959 the India government passed the state bank of India Act,
resulting in the acquisition of eight state- affiliated banks and the
creation of the state bank of India group (SBI Group) the SBI itself is
now majority owned by the Indian government, which purchased the
shares held by the reserve Bank of India.
CONCUSION

Studying the project we came to know that internet banking is clearly

the way forward for the state bank of India. It provides comfort to
customer at the same time it provides cost cutting to SBI by eliminating
physical documentation. Internet banking saves time of bank as well as
those of customers.
This study states that internet banking provides greater reach to
customers. Feedback can be obtained easily as internet is virtual in
nature. Customer loyalty can be gain. Personal attention can be given
by bank to customer also quality service can be served. Bank should
know that no system is perfect, however a system of such a type will
need to be very secure. This is a system which holders account details
and customers wealth. If such a system was not trusted and not
reliable, than SBI would face serious laws and would lose business. It
can be easily conclude that technological development in banking
industry positively improves their services, competitiveness, branding
and also loyalty.
After studying the SWOC analysis, we came to know various
strengths of SBI such as quality customer service, greater reach,
customer loyalty, easy access to information, 24 hours access, easy
online applications etc. SBI should put efforts to multiply the number of
strengths. In terms of weakness I come to know some of the major
weaknesses they are lack of awareness of internet banking among the
customers, obsolesce of technology related to security, complicated
procedures of availing internet banking facilities, lack of knowledge
among the employees of SBI. SBI should concentrate on the weakness
and reduce them to zero.
In the third segment of SWOC analysis of internet banking we dealt
with opportunities like 95% market of internet market is untapped SBI’s
path to become first virtual bank. By encashing such opportunities bank
can become the leader in banking sector of India. In the last segment I
come to know about various challenges which are in front of SBI, like
sameness in IT infrastructure with in various banks, need of various
vender supports for complex technology, maintaining secured IT
infrastructure, alternative mechanism in case of failure of present
security system.
The company can take the advantage of the reputation it has created in
the market for itself and become more competitive
The recommendations and suggestion given, if adopted will improve
the position of the company substantially and option profitability
coupled with better service and satisfactions for investors many be
achieved.
BIBLIOGRAPHY

BOOKS
 SBI Training guide for internet banking

WEBSITES
 www. Statebankofindia.com
 www.onlinesbi.com
 www.weikipedia.com
 www.google.com