MAJOR RESEARCH PROJECT

Synopsis

on

A STUDY REPORT ON CUSTOMER AWARENESS TOWARDS E-BANKING

Submitted to

Devi Ahilya University, Indore

For partial fulfillment of the requirement for the Degree of

Master of Business Administration (Full-Time)

Batch 2021-23

Guided by: Submitted by:

Miss.Ayushi Maloo Yash Bhatt

IPS ACADEMY, IBMR

Rajendra Nagar, A.B. Road, Indore – 452012 (MP)

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 IBMR, IPS ACADEMY
Rajendra Nagar, A.B. Road, Indore – 452012 (MP)

INDEX

SR.NO TITLE PAGE.NO

1. INTRODUCTION 03-05

2. REVIEW OF LITERATURE 06

3. RATIONAL STUDY 07

4. OBJECTIVE OF STUDY 08

5. METHODOLOGY 09

6. HYPOTHESIS 10-11

7. BIBLIOGRAPHY 12

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 INTRODUCTION

Today’s world is one with increasing online access to services. One part of this which is
growing rapidly is online banking. Combined with online retailers there is a lot of money
changing hands, directed only by communication over the internet. This is very
convenient and the ready access to the internet in all first-world countries, coupled with
the cost savings from closing bank branches, is driving the deployment and adoption of
these services. Purely online transactions, however, lead to increased risk. None of the
normal safeguards of realworld transactions are present. Conversely, risk to the criminals
is a lot lower (the attacker can be in a completely separate jurisdiction from all the other
parties in the transaction) and the retailer sees nothing but a faceless, nameless
connection providing card details. Banks have traditionally been in the forefront of
harnessing technology to improve their products, services and efficiency. They have, over
a long time, been using electronic and telecommunication networks for delivering a wide
range of value added products and services. Penalty due to non-payment of bills is not
new to any of us. And quite obviously, who likes the long procedure of writing a cheque,
standing in a long queue and then ensuring that a particular amount is available in your
bank account? Indian banks are trying to make our life easier. Not just bill payment, we
can make investments, shop or buy tickets and plan a holiday at your fingertips.

Banks today operate in a highly globalized, liberalized, privatized and a competitive

environment. The Indian banking industry has witnessed tremendous developments due
to sweeping changes that are taking place in Information technology. Electronic means of
banking includes electronically operated devices such as computers, ATMs and in
addition internet, telephone, mobile handsets and other means are also used as part of
e-banking. An essential feature of e-banking is that it provides round-the-clock access to
banking operations. In India, e-banking is of fairly recent origin. Slowly but steadily, the
Indian customer is moving towards e-banking. But they are very concerned about the
security and privacy of e-banking. The credit of launching internet banking in India goes
to ICICI Bank. ICICI bank was the first bank which offered this delivery channel, by
kicking off its online services in 1996. Other private sector banks like Citibank, IndusInd
bank and HDFC and Timesbank (part of HDFC bank) started offering internet services in
1999. State Bank of India launched its services in July 2001. Other public sector banks
like Bank of Baroda, Allahabad Bank, Syndicate bank and Bank of India also rolled out
its services during the same time.

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❖ Services are as under:
➢ Bill Payment Service Almost all banks have tie-ups with various utility
companies, service providers and insurance companies, across the country.
One can facilitate payment of electricity and telephone bills, mobile phone,
credit card and insurance premium bills. To pay bills, all we need to do is
complete a simple one-time registration for each biller. We can also set up
standing instructions online to pay your recurring bills, automatically.
One-time standing instruction will ensure that we don't miss out on our bill
payments due to lack of time. Most interestingly, the bank does not charge
customers for online bill payment.
➢ Fund Transfer One can transfer any amount from one account to another
of the same or any other bank. Customers can send money anywhere in
India .Once we login to our account, we need to mention the payees’
account number, his bank and the branch. The transfer will take place in a
day or so, whereas in a traditional method, it takes about three working
days.
➢ Credit Card Customers Credit card users have a lot in store. With Internet
banking, customers can not only pay their credit card bills online but also
get a loan on their cards. Not just this, they can also apply for an additional
card, request a credit line increase and we can forbid if we lose our credit
card, we can report lost card online.
➢ Railway pass This is something that would interest all the aam janta.
Indian Railways has tied up with ICICI bank and we can now make our
railway pass for local trains online. The pass will be delivered to us at our
doorstep. But the facility is limited to Mumbai,Thane, Nashik, Surat and
Pune. The bank charges quite nominal service tax for these services.
➢ Investing through Internet Banking Opening a fixed deposit account
cannot get easier than this. One can now open an FD online through funds
transfer. Online banking can also be a great friend for lazy investors. Now
investors with interlinked demat accounts and bank accounts can easily
trade in the stock market and the amount will be automatically debited from
their respective bank accounts and the shares will be credited in their demat
account. Moreover, some banks even give the facility to purchase mutual
funds directly from the online banking system. So one need not worry about
filling those big forms for mutual funds, they will now be just a few clicks
away. Nowadays, most leading banks offer both online banking and demat

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 accounts. However if you have your demat account with independent share
brokers, then you need to sign a special form, which will link your two
accounts.
➢ Recharging your Prepaid Phone Now there is no need to rush to the
vendor to recharge the prepaid phone, every time when talk time runs out.
We just need to top-up our prepaid mobile cards by logging in to Internet
banking. By just selecting our operator's name, entering our mobile number
and the amount for recharge, our phone is back in action within a few
minutes.
➢ Shopping at your fingertips Leading banks have tie ups with various
shopping websites. With a range of all kinds of products, we can shop
online and the payment is also made conveniently through our account. We
can also buy railway and air tickets through Internet banking.

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 REVIEW OF LITERATURE

Miss. R. Elavarasi and Dr.S.T.Surulivel (2014) indicated about the various e-banking
services provided to customers and had also identified satisfaction levels among
customers about internet banking. The data analysis shows that age, educational
qualification, occupation, income level of customers are significant factors that decide
usage of e-banking services of various banks in the study area. Sandhya Ragaur (2014)
said that in today’s scenario people are using and doing mobile transactions at a large
scale. Mobile banking is a subset of electronic banking. It is the latest and most
innovative services offered by the banks through electronic channels such as ATM,
Internet banking, tele-banking and mobile banking. The research is an attempt to study
consumer awareness on mobile banking. Ubadineke, Francis.N (2009) indicated that
advances in information technology and telecommunications are resulting in new
delivery channels for bank products and services in the developing countries.

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 RATIONAL STUDY

With the modernization and globalization the city has adopted all the changes and now
all the banks have started adopting the technologies in banking. So, it becomes necessary
to study the nature, growth and extent of E-banking services provided by the banks in
Coimbatore City. The present study is a modest attempt to know about customers’
awareness regarding e-banking services provided by banks in Coimbatore. So the
findings will help the banking sectors to create effective awareness towards their
e-banking services.

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 OBJECTIVES OF THE STUDY

The main objective of the study is to identify the customer level of awareness towards
e-banking services.

● To know the socio economic characteristics of the customers of E-banks.

● To identify the reasons for preferring E-banking.
● To study the consumer’s service quality in the E-banking System.
● To and out the opinion of the respondents regarding the various problems of
E-banking.
● To give valuable suggestions to improve awareness and satisfaction about
E-banking services.

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 METHODOLOGY

Data Collection: Primary Data is collected directly by interacting with the customers by
using structured questionnaire methods. Secondary Data was collected from the existing
data sources, Catalogs, Internet, Magazines and Newspaper .
The Population : The population consists of people who have a bank account.

Sample Size and Sampling Method: For the purpose of the study, a non-probability
sampling technique has been adopted. 90 respondents who are using e-banking services
were selected for the study.

Statistical Tools:

• Frequency Distribution

• Post-Hoc test Level of significance – 5%

ANALYSIS AND INTERPRETATION

Table-1 Frequency distribution of the respondents on the basis of their personal

profile:

Majority of the respondents are male, under the age of 25 years whose annual income is
Rs.1,00,000 – Rs.3,00,000 and are unmarried.

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 HYPOTHESIS

T-Test:

Null Hypothesis: There is no significant difference in the awareness level of e-banking

services between personal factors like gender & marital status respondents.

Alternative Hypothesis: There is no significant difference in the awareness level of

e-banking services between personal factors like gender & marital status respondents.

Table-2 Personal Factor Vs Awareness level of e-banking services.

It is understood from the above table that the table significance ((0.03), (0.003), (0.0005)
& (0.000)) is less than 0.05, the level of significance, the null hypothesis in the case of
Internet Banking and ATM and Debit Card Services under personal factor Gender &
Mobile Banking and ATM and Debit Card Services under personal factor Marital Status
is rejected, comparing the mean values, it is concluded that Male respondents have higher
level of awareness on Internet Banking and ATM and Debit Card Services under personal
factor Gender & unmarried respondents have higher level of awareness on Mobile
Banking and ATM and Debit Card Services under personal factor Marital Status.

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 HYPOTHESIS

Null Hypothesis: There is no significant difference in the awareness level of e-banking

services between personal factors like age & income level of the respondents.

Alternative Hypothesis: There is no significant difference in the awareness level of

e-banking services between personal factors like age & income level of the respondents.

SUGGESTIONS:

As observed from this study, all the respondents are not aware of all the forms of
e-banking services. All banks should make their customers aware of and educate them
regarding the various e- banking services provided. Banks should organize seminars and
conferences to educate the customer regarding uses of e-banking as well as security and
privacy of their accounts. Banks should realize that they must provide customer friendly
e-banking services to gain competitive advantage through differentiation of banking
services.

CONCLUSION: The banking sector in India is undergoing major changes due to

competition and the advent of technology. The customer is looking for quality services
which can provide him/her satisfaction. The customer had to physically visit the bank
office in order to carry out banking operations. E-banking is playing a vital role in today’s
banking field. This study reveals that the demographic conditions of the customers are
very important in creating the awareness level among the customers of the Coimbatore
city. The study has shown that people in general are aware of the concept of Electronic
Banking. As e- banking is still relatively new in India, the intention to use e- banking is
still very limited. The finding reveals that people know about the services but still many
are not aware of all the services and do not use them. Banks should ensure that electronic
banking is safe and secure for financial transactions like traditional banking. Therefore
the banks should make some potential strategies to create awareness of all e-banking
services.

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 BIBLIOGRAPHY

Reference:.
1. www.irjbm.org
2. www.academia.edu
3. https://www.ijird.com/

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