CHAPTER 1

INTRODUCTION

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 1.1 E-Banking

The procedure through which a customer can conduct banking transactions electronically without going to a
physical location is referred to as electronic banking. Personal computer (PC) banking, Internet banking,
virtual banking, online banking, home banking, remote electronic banking, and phone banking are all words
that refer to one type of electronic banking or another. The most popular terms are PC banking and Internet
or online banking. The words used to describe the various forms of electronic banking are frequently used
interchangeably, it should be highlighted.

For banks and their customers, electronic banking is nothing new. For many years, banks have used software
to offer their services to customers electronically. The user's personal computer was able to call the bank
directly thanks to these software tools. Due to security concerns, banks have historically been particularly
hesitant to offer online banking to their consumers.

Banks today seem to be hopping on the Internet banking train. Why has bank interest in the Internet
suddenly increased? The development of better security and encryption techniques on the Internet is the
primary factor. The second explanation is that banks did not want to cede potential market share to other
institutions that had jumped at the chance to offer their services online.

E-banking services were provided by numerous institutions, including ICICI, HDFC, IndusInd, IDBI,
Citibank, Global Trust Bank (GTB), Bank of Punjab, and State Bank of India (SBI). The competitors
concentrated on expanding and refining their E-banking services in response to analysts' statements that
India had a strong development potential for e-banking. As a result, the banks started working together with
online features.

Why has bank interest in the Internet suddenly increased? The development of better security and encryption
techniques on the Internet is the primary factor. The second explanation is that banks did not want to cede
potential market share to other institutions that had jumped at the chance to offer their services online.

The automated provision of new and conventional banking goods and services to customers directly through
electronic, interactive communication channels is referred to as e-banking. Systems that enable consumers of
financial institutions are part of e-banking. Customers use e-banking services using an intelligent electronic
device to access accounts, conduct business, or acquire information on financial products and services
through a public or private network, including the Internet.

Around 1996, ICICI was the first to implement e-banking in India. Many other banks, including HDFC, SBI,
IDBI, Citibank Trust Banks, UTI, and others, then adopted the service. Today's private and foreign banks
have begun using e-banking to gain market share; as a result, "the competition is heating up and the lack of
technology can cause a bank to lose a customer." As a result, public banks are now eschewing their
traditional organizational structure and preparing to take on their private sector rivals.

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 1.2 The Global E-Banking Scenario

It is anticipated that the banking sector will dominate e-business. Banks in underdeveloped nations use the
Internet as a medium for information transmission to strengthen their relationships with consumers, whereas
banks in rich nations conduct the majority of their business online as non-branch bank.

Approximately 60% of UK e-business was concentrated in the financial services industry at the beginning
of 2001, and this percentage will rise further as the British e-business market is predicted to grow 10-fold by
2004. A quarter or so of bank customers in Finland and Sweden use the internet to conduct their
transactions, while in the US, online banking is expanding at a rate of 60% per year and is anticipated to
have 15 million accounts by 2003, according to UNCTAD.

Banks have built online presences for a variety of reasons. The majority of them are now distributing their
products on the internet. With the use of the Internet, financial services might be provided to more potential
clients in an equivalent quantity at a lower price. Any time of day or night, contacts could come from
anywhere in the world. As a result, banks are able to grow their market without adding new locations. The
US banks are utilizing the Internet to take advantage of opportunities in three major areas: marketing
information, providing banking products and services, and enhancing client relationships.

Security is the main barrier to e-banking expansion in Asia, despite the fact that many nations are well-
connected to the Internet. A problem is also finding high-quality e-banking products. In comparison to banks
in industrialized nations, the majority of banks in Asia only provide the most basic services. However, Asia
appears to have a future for e-banking. According to a McKinsey report, successful e-banking depends on
how smoothly the fundamental features—particularly bill payment—are handled. 40 percent of study
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participants named bill payment as their favorite feature. However, because to the high level of security and
complexity of the transactions, delivering this service would be challenging for banks in Asia.

In 2001, e-banking services were provided by more than 50% of US banks. However, it showed that major
banks had a distinct edge over small banks in terms of the variety of services they provided. Some US banks
were focusing their Internet marketing efforts on serving corporate clients. E-banking was anticipated to
have an impact on the structure of the banking industry in addition to changing how customers obtained
financial services. Due to economies of scale, the ability to market widely, and other factors, it was
anticipated that the economics of e-banking would favor large banks. Additionally, e-banking provided tiny
banks with entry and growth options that they had not previously had.

In Europe, the Internet is accelerating the reconfiguration of the banking industry into three separate
businesses: production, distribution and advice. This reconfiguration is being further driven by the Internet,
due to the combined impact of:

● The emergence of new, more focused business models.

● New technological capabilities that reduces banking relationship and transaction costs.
● High degree of uncertainty over the impact that new entrants will have on current business models.

though e-banking in the Europe is still in the evolutionary stage, it is very clear that it is having a significant
impact on traditional banking activities. Unlike in the US, though large banks in the Europe have a
competitive edge due to their ability to invest heavily in new technologies, they are still not ready to embrace
banking.

1.3 Indian E-Banking Scenario:

According to an international research, brick and mortar banking transactions cost about $1.1. Internet
banking costs just 1% more than over-the-counter banking, while using an ATM costs about $0.27. These
kinds of statistics have awakened the Indian banking sector. As a result, the Indian financial sector is
witnessing an amazing improvement in the level of service. This move, which banks are doing to attract
more business from customers, is driven primarily by technology.

Almost all the private sector banks are moving towards e-enabling their existing products. HDFC Bank and
ICICI Bank have taken a lead in introducing e-banking in India.

The first step in online banking is to convert existing products. This first began with basic operations like
obtaining interest rate data, checking account balances, and determining loan eligibility. Then the services
were expanded to include corporate cash management services, online bill payment, and fund transfers
between accounts. Banks have recently begun establishing payment gateways for B2C and B2B transactions.
This will make it easier for customers to pay for online purchases by using their credit cards or direct bank
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account debits. The transaction or sale value that results in increased other revenue can result in commission-
based income for banks. This may exceed the income they may bring in from credit card transactions.

The Internet has been effectively used by private sector banks to steal customers from public sector banks
and greatly improve their revenue potential. One example of these banks' technological prowess is internet
banking. They have the most recent technical platforms, total automation, an electronic customer database,
and real-time transaction processing capabilities. The management of these banks has a strong emphasis on
leveraging technology as a vital instrument for competition. The management's capacity is also apparent in
terms of their profitability. When compared to their competitors in the market, the private sector banks
HDFC Bank and ICICI Bank have outstanding returns on equity.

These banks only recently started doing business, and they barely have any extra branches or staff. E-
banking is therefore not an additional expense for them, in contrast to the majority of other banks worldwide.
In fact, it is anticipated to make a sizable contribution to company earnings in the years to come.

Both geographically and in terms of consumer category, the distribution of banking industry in India is very
uneven. Approximately 70% of the loans given are geographically distributed among the top 100 centers.
This will presumably include the majority of early Internet users. On the asset side, the corporate sector is
the primary focus in terms of customer category. This industry contributes significantly to bank revenues
and is probably one of the first to adopt the Internet. On the liability side, Internet banking is anticipated to
considerably increase client acquisition and profitability in the urban high/middle income retail categories as
well as the top corporate segment. E-commerce also has bright future possibilities because it is expected to
grow at an explosive rate, in addition to e-banking.

However, considering that just 22% of Internet users worldwide use e-banking services, one could wonder
what impact e-banking makes. The penetration rate is likewise less than 1% in India. In India, Internet
banking is not always a win-win situation. E-banking and e-commerce projects are surrounded by a lot of
risks. Obstacles including limited Internet penetration, security concerns, tax considerations, and credit
troubles are a few more that continue to restrain the segment's growth. Even if the government has
established the cyber laws, still there is a lack of clarity concerning legislative issues controlling the sector
and the effectiveness of the administration to track & punish cybercrimes. Everything depends on how
successfully banks can penetrate these markets.Since any customer is only a click away from a competitor
somewhere, banks that have previously launched e-banking will need to regularly enhance their services to
keep the potential customers. Additionally, one cannot afford to solely rely on online banking; traditional
brick and mortar stores will still play a significant role. For those who haven't started yet, avoiding the
newest technology means ignoring potential clients.

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 1.4 Various form of E-Banking:

Internet Banking:

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

Customer service requests can be handled automatically without the involvement of customer service people
using the Internet banking system and technique, which connects a personal computer via a network service
provider directly to a bank's host computer system. The system is able to differentiate between customer
service requests that can be handled automatically and those that need to be handled by a customer care
agent. The technology is interconnected with the bank's host computer system, enabling remote banking
customers to use the bank's other automated services.

Automated Teller Machine (ATM):

An unattended electronic machine in a public place, connected to a data system and related equipment and
activated by a bank customer to obtain cash withdrawals and other banking services. Also called automatic
teller machine, cash machine; also called money machine.

In order to access their bank accounts, order or make cash withdrawals (or cash advances using a credit
card), and check their account balances, customers of a financial institution can use an automated teller
machine, also known as an automatic teller machine (ATM), which is an electronic computerized
telecommunications device (or cashier in the UK). In addition to accepting cash and checks, many ATMs
also enable users to transfer funds between bank accounts, top up their mobile phones' pre-paid balances,
and even purchase postage stamps.

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

Some ATMs will attempt to retain the card if the number is entered incorrectly several times in a row
(typically three times per card insertion). This is done as a security measure to stop an unauthorized user
from guessing the PIN. If the bank that issued the card is not the ATM owner, captured cards are frequently
destroyed because it is impossible to establish the identity of non-customers.

The Indian market today has approximately more than 17,000 ATM’s. TELE

Tele Banking:With the advent of online telebanking services, it is now possible to conduct a wide range of
banking-related activities, including financial transactions, from the comfort of the customer's selected
location anywhere across the GLOBE and any time of day or night. The customer can access his account by
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contacting the provided Telebanking number from any location using a landline or a mobile phone and by
following the user-friendly menu, the complete banking process can be done through the Interactive Voice
Response (IVR) system. When enough hunting lines are made available, consumer calls are unlikely to be
dropped. The system is bilingual and provides the following services

● Automatic balance voice out for the default account.

● Balance inquiry and transaction inquiry in all
● Inquiry of all term deposit account
● Statement of account by Fax, e-mail or ordinary mail.
● Cheque book request
● Stop payment which is on-line and instantaneous
● Transfer of funds with CBS which is automatic and instantaneous
● Utility Bill Payments
● Renewal of term deposit which is automatic and instantaneous
● Voice out of last five transactions.

Smart Card:

A smart card usually contains an embedded 8-bit microprocessor (a kind of computer chip). The
microprocessor is under a contact pad on one side of the card. Think of the microprocessor as replacing the
usual magnetic stripe present on a credit card or debit card. The microprocessor on the smart card is there for
security. The host computer and card reader actually "talk" to the microprocessor. The microprocessor
enforces access to the data on the card. The chips in these cards are capable of many kinds of transactions.
For example, a person could make purchases from their credit account, debit account or from a stored
account value that's reload able. The enhanced memory and processing capacity of the smart card is many
times that of traditional magnetic-stripe cards and can accommodate several different applications on a
single card. It can also hold identification information, which means no more shuffling through cards in the
wallet to find the right one -- the Smart Card will be the only one needed.
Smart cards can also be used to authenticate users on a personal computer with a smart card reader adapter.
In comparison to the United States, smart cards are far more common in Europe. Smart cards are widely
used in the banking and health insurance sectors in Europe. A smart card for health insurance is available to
every German citizen. Although smart cards have been in their current form for at least ten years, they have
just recently begun to gain popularity in the United States.

Debit Card:

Check cards are another name for debit cards. Debit cards resemble credit cards or ATM cards in
appearance, but they function like cash or personal checks. Credit cards differ from debit cards in several
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ways. A debit card allows you to "pay now," whereas a credit card allows you to "pay later." With a debit
card, your money is instantly taken out of your savings or checking account.
Many establishments, including grocery stores, retail stores, petrol stations, and restaurants, accept debit
cards. Anywhere that merchants display your card's name or emblem, you may utilize it. They provide an
alternative to carrying cash or a chequebook.

E-Cheque:

● An e-Cheque is the electronic version or representation of paper cheque.

● The Information and Legal Framework on the E-Cheque is the same as that of the paper cheques.
● It can now be used in place of paper cheques to do any and all remote transactions.
● An E-cheque work the same way a cheque does, the cheque writer "writes" the e-Cheque using one
of many types of electronic devices and "gives" the e-Cheque to the payee electronically. The payee
"deposits" the Electronic Cheque receives credit, and the payee's bank "clears" the e-Cheque to the
paying bank. The paying bank validates the e-Cheque and then "charges" the check writer's account
for the check.

Other forms of e-banking:

● Direct deposit
● Electronic Bill Payment
● Electronic Cheque Conversion
● Cash Value Stored

1.5 Types of E-Banking are:

Understanding the various types of Internet banking will help examiners assess the risks involved.
Currently, the following three basic kinds of Internet banking are being employed in the marketplace.

Informational:
This is the most fundamental level of online banking. On a standalone server, the bank typically keeps
marketing materials regarding its goods and services. As informative systems often don't have a path
between the server and the internal network of the bank, the risk is low. The banks may offer this degree of
Internet banking in-house or through outsourcing. Although there isn't much of a risk to a bank, the server or
website could be changed. Therefore, it is necessary to put in place the proper safeguards to stop
unauthorized changes from being made to the bank's server or website.

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Communicative:
Customers and this kind of online banking systems. Interaction between the customer and the bank's
computer system. The exchange may be limited to email, account inquiries, loan applications, or
modifications to static files (name and address change). The risk is larger with this design than with
informational systems since these servers can have a conduit to the bank's internal networks. In order to
prevent, monitor, and notify management of any unauthorized attempt to access the bank's internal networks
and computer systems, appropriate controls must be in place. In this setting, virus controls also become a lot
more important.

Transactional:
Customers are able to complete transactions through this level of Internet banking. This is the architecture
with the highest risk and requires the strictest controls because there is typically a path between the server
and the bank's or outsourcer's internal network. Customers may do transactions such as paying bills,
transferring money, and accessing their accounts.

1.6 Features of E-Banking:

Transactional:(e.g. performing a financial transaction such as an account to account transfer, paying a bill
or applications like applying for a loan, new account, etc.)

● Electronic Bill Presentment and Payment (EBPP)

● Funds transfer between customers own checking and savings accounts, or to another customers
account.
● Investment purchase or sale.
● Loan application and transactions such as repayments.

Non Transactional: (e.g. online statements, Check links, Chat, Co-browsing etc.)
Financial Institution Administration- features allowing financial institutions to manage the online
experience of their end users.ASP/ Hosting Administration – features allowing the hosting company to
administer the solution across financial institut

1.7 Advantage and Disadvantage of E-Banking are:

We find that there are many advantage of e-banking are

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 ● Online banking gives more interest rates than any other form of banking and also saves lot of
expenses.
● We can carry out all banking transactions at our own convenience and do not have to depend on
normal bank timings.
● Lot of precious time is saved because of e- banking, as transactions are carried out in seconds and we
can see the updates immediately.
● Since everything is computerized, we save all the paper work and we save the trouble of maintaining
physical records. There is nothing manual hence the records are perfect and accurate.
● Banks also provide balance alerts if our balance reduces and alerts the customer in case of due dates
of our bill occurs.
● There are no extra charges and these e-banking services are absolutely free. Previously banks used to
charge heavily for all their services.
● There is improvement in customer access, since the bank can access more customers within a short
time through the internet.
● The customers can be offered more services through online banking.

There are also some disadvantages of online banking which restricts people to use this service, like:

● E-banking has reduced the bank to customer personal interaction, since all the transactions are
handled by the customer from the internet account there is no personalized banking service which
reduces customer to bank interaction.
● When you are entering e-banking instructions there is always a chance that the information may be
leaked or your account can be hacked and all your confidential information is leaked. There are many
banks that have good security systems to guard such thefts.
● You can access your online banking account by entering your personal identification and your
password. This password can be used by anyone to access your account and transfer funds or cause
financial problems. Whereas when you are visit the bank personally your account is handled by the
bank staff and therefore your confidential information cannot be viewed by anyone. Also all your
instructions are given in writing with your signature, therefore there are less chances of fraud and
information leak.
● When you are using internet banking the internet security is a big problem faced by many banks. So
the customer must be aware of the security issues and protect their identity and other personal details
from hackers.

To make online banking a safe and secure banking experience you need to follow these steps:
● Avoid accessing your account from a cyber café or a shared computer. If you are happen to do so
then change your password as soon as you finish your banking transaction.

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 ● Every time you finish using your online banking session then sign out from the site rather than just
closing the browser.
● Change your internet banking password after your first login and thereafter regularly. Use complex
and difficult password and make it difficult for others to guess.
● Use different id and password for different internet accounts.
● Never share your passwords or login details with anybody.
● View your account daily and check it with your transactions, if there is anything which does not tally
with your instructions then inform your bank immediately.
Because the benefits of internet banking outweigh the drawbacks, this method of banking has gained
a lot of traction with consumers. Online banking, often known as net banking, has made life easier
and time-saving for people in the modern financial era. Even though everyone needs internet
banking, some banks still do not offer advanced features like easy registration for net banking or the
ability to transfer money to any bank nationwide. This is because some banks are located in rural
areas where computers are not frequently used. Net banking can only connect all bank customers if
even the most rural parts of the nation have access to technology.

1.8 History of E-Banking:

The early 1980s distance banking services using electronic media served as the forerunner of the present
home internet banking services. Online refers to the use of a terminal, keyboard, TV (or monitor), and phone
line to access the banking system. The term online first gained popularity in the late 1980s. The term "home
banking" can also refer to dialing numbers on a phone keypad to provide the bank instructions. In 1981, four
of the city's largest banks—Citibank, Chase Manhattan, Chemical, and Manufacturers Hanover—began
offering home banking services over the videotext system, ushering in the era of online services. Because of
the commercial failure of videotext these banking services never became popular except in France where the
use of videotext (Minitel) was subsidized by the telecom provider and the UK, where the Prestel system was
used.
The Nottingham Building Society (NBS) launched the first home online banking services in the UK in 1983.
("History of the Nottingham" Retrieved on 2007-12-14.). The system utilized a computer, such as the BBC
Micro, or keyboard (Tan data Td1400), which were connected to the telephone system and television set. It
was modeled after the UK's Prestel system. The 'Home link' system permitted online viewing of bank
transfers, statements, and bill payments. A written instruction specifying the intended recipient had to be
given to the NBS, who entered the information in the Home link system, in order to perform bank transfers
and bill payments. Typical beneficiaries included accounts with other banks as well as gas, electric, and
telephone companies. Payment information was provided in detail. The account holder used Prestel to enter
the necessary payment information into the NBS system. NBS then sent a check to the payee and emailed
the account holder an advice with the payment's specifics. The payment was later transferred straight via

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BACS. In October 1994, Stanford Federal Credit Union became the first financial organization to provide all
of its members with access to online internet banking.

1.9 Usage of E-banking:

Online banking has become increasingly commonplace due to the growth of e-commerce, the use of the
internet to facilitate it, and improved online security for sensitive data and transactions. The most recent
official statistics from the office of national statistics (ONS 2007) show that the number of internet
subscribers in India increased by more than 50% from 25 million in 2005 to 45 million in 2007. Also, it has
been calculated that 60% of Indians utilize the internet on a daily basis. With the aid of technology,
particularly the internet, there has been a fundamental change towards customer involvement in the
provision of financial services, which has assisted in lowering costs for financial institutions as well. The
fundamental shift towards involving the customer in the provision of financial services through the use of
technology, particularly the internet, has helped to lower the costs of financial institutions and has also made
it possible for clients to use the service whenever they want and from almost anywhere with an internet
connection. The adoption of electronic banking has reduced the need for transaction-facilitating staff and
increased the burden on clients to use the service. The computerization of the banking operations has made
maximum impact on:-
1) Internal Accounting System
2) Customer service
3) Diversification of system

1.10 Challenges and indicators of e-banking

 Infrastructural barriers are one of the challenges for implementation and development of e-banking.
 Knowledge barriers are one of the challenges for implementation and development of e- banking.
 Legal and security issues are one of the challenges for implementation and development of e-
banking.
 Social and cultural barriers are one of the challenges for implementation and development of e-
banking.
 Economic factors are one of the challenges for implementation and development of e- banking.
 Management and banking issues are one of the challenges for implementation and development of e-
banking.

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 1.11 E-Banking Transaction:
Informational website:
Informational websites provide customers access to general information about the financial institution and its
products or services. Risk issues examiners should consider when reviewing informational websites
include:-
● Potential liability and consumer violations for inaccurate or incomplete information about products,
services, and pricing presented on the.
● Potential access to confidential financial institution or customer information if the website is not
properly isolated from the financial institution‘s internal network.
● Potential liability for spreading viruses and other malicious code to computers communicating with
the institution‘s website.
● Negative public perception if the institution‘s on-line services are disrupted or if its website is
defaced or otherwise presents inappropriate or offensive material.

Translational website:
Customers who use transactional websites can initiate banking transactions or purchase goods and services
directly from the website of the financial institution. A simple banking operation like checking a customer's
account balance can be as complex as a huge business-to-business money transfer. Similar to other delivery
channels, e-banking services are often categorized according to the kinds of customers they serve.
Services offered through transactional websites expose a financial institution to higher risk than those
offered through simple informational websites since they often permit the electronic interchange of private
customer information and the movement of payments. As business transactions frequently include bigger
monetary amounts, wholesale e-banking systems typically expose financial institutions to the highest risk
per transaction. Examiners examining transactional e-banking services should take the following factors into
account in addition to the risk considerations connected with informational websites:
● Security controls for safeguarding customer information.
● Authentication processes necessary to initially verify the identity of new customers and authenticate
existing customers who access e-banking services;
● Liability for unauthorized transactions.
● Losses from fraud if the institution fails to verify the identity of individuals or businesses applying
for new accounts or credit on-line.
● Possible violations of laws or regulations pertaining to consumer privacy, anti-money laundering,
anti-terrorism, or the content, timing, or delivery of required consumer disclosures.
● Negative public perception, customer dissatisfaction, and potential liability resulting from failure to
process third-party payments as directed or within specified time frames, lack of availability of on-

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 line services, or unauthorized access to confidential customer information during transmission or
storage.

1.12 Technology in Banking:

Banking transactions have undergone a significant transformation as a result of new technologies. Customers
used to need to physically visit the bank branch in order to do financial transactions like transfers, deposits,
and withdrawals. To physically complete all of such transactions, banks have to hire many tellers.
Afterwards, automatic teller machines (ATMs) were developed, enabling consumers to conduct their
banking independently, essentially whenever and wherever they pleased. This enabled the banks to reduce
the number of tellers and concentrate on money management. The availability of another platform for users
to conduct banking activities via the Internet reduced the demand for ATMs. Customers could conduct
financial transactions using online banking from the comfort of their homes on personal computers.Banks
may now leverage the infrastructure and apps created for the Internet and shift them to mobile phones thanks
to the development of Wireless Application Protocol (WAP) technology. People are no longer restricted to
using a desktop PC for banking purposes. Customers are able to view account information, transaction
information, pay bills, and even check credit card balances via the WAPinterface, which is faster and more
practical than the Internet.
The average online payment transaction is very inexpensive. According to numerous studies, a mobile phone
transaction costs an estimated 16 cents, a fully computerized bank using its own software costs 26 cents, a
telephone bank costs 54 cents, a bank branch costs $1.27, an ATM costs 27 cents, and a transaction via the
internet only costs 13 cents. As a result, in 1995, the usage of the Internet for business transactions began to
pick up speed. With the expansion of online lending options, more than 2,000 banks throughout the world
now have transactional websites. Banks are now being encouraged by recent changes to target small
businesses as a separate lending category online.
As more and more payments are made over the Internet, banks are increasingly constructing payment
infrastructure with different security measures (SSL, SET) because there is a huge potential for profit. The
difficulty for banks, however, is to provide a payments back-bone system that is open enough to support a
variety of payment instruments (credit cards, debit cards, direct debit to accounts, e-checks, digital currency,
etc.) and scalable enough to allow for a stable service regardless of the workload.
Electronic Bill Presentment and Payment (EBPP) is a market that is expanding. 18 million US households
are anticipated to pay their bills online by 2003, up from 2 million homes in 2001, according to a research.
Many banks are working to create solutions to address the expanding needs of EBPP as more bill payers go
online. Existing banks can take the lead in integrating consumer bills online and profit from this market's
enormous potential. Bill aggregation, the practice of paying many bills at one location, is becoming more

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and more popular alongside EBPP. Providing online bill payment and aggregation will make e-banking
services more competitive and appealing and will enable banks to make money from service fees.
The customer value proposition for online bill payment is stronger in the B2B market. By 2004, it is
anticipated that B2B e-commerce will increase from $406 billion in 2000 to $2.7 trillion, with more than half
of all transactions taking place through online B2B marketplaces. Automated payment systems are required
to lower costs, eliminate human error, and improve cash flow management. Financial Settlements Matrix
was founded by a collection of banks and non-financial organizations, including Citibank and Wells Fargo,
to address this demand (FSMx). Access to secure payment processing, invoicing, and other services
provided by partnering financial services companies is made available to business buyers and sellers.
If a B2B marketplace only matched buyers and sellers, leaving the financial parts of transactions to be
handled through conventional, non-Internet means, it would only be of minimal benefit to its consumers.
This innovative method of cooperation amongst partners who have complementary core capabilities could
prove to be a successful e-business business model.

1.13 The E-banking strategies

Even though e-banking presents a wide range of options, less than one third of banks now have an e-banking
strategy in place. A survey found that less than 15% of banks having transactional websites will see profits
that can be directly linked to those websites. Banks must therefore acknowledge the gravity of the task at
hand and devise a plan that will allow them to take advantage of the opportunities provided by the Internet.
Every banking organization requires a different e-banking approach. But regardless of whether they take an
offensive or defensive stance, they must constantly reassess their plan of attack. Banks must keep up with
the quickly changing business models and technological advancements found in the online economy. Early
adopters of e-business, like Wells Fargo, not only pioneered the e-banking sector but also demonstrated a
willingness to adapt as the market changed. Few banks have been as adept at doing business online.
Nonetheless, there is growing pressure on all banks to create good e-business strategies that will draw in and
keep more picky consumers.
The key issue with the banks is that they continue to lose money on their online endeavors despite having
already made significant investments. Banks are not attracting a lot of new clients, despite enrolling some of
their current customers in their online programmes. Banks now question the value of the online channel in
light of this. Merely signing up clients for internet banking might not be enough until and unless they
actively use the platform. In order to properly coordinate the online channel with branches and call centers,
banks must work to enhance customer utilization of their websites. Only then will companies be able to
realize the greatest benefits, such as cost savings, cross-selling opportunities, and improved client retention.

[15]
Consumers stay offline for a variety of valid reasons. These factors include the site's usability elements,
security issues, and frequent complaints that the registration process is difficult and time-consuming. Banks
can address these issues by refocusing investment on enhancing the site's fundamental usability and
functionality while avoiding complex features that the majority of users don't need or value. Banks must
make an effort to introduce customers to their websites and demonstrate the simplicity and effectiveness of
the online channel.
Another crucial problem on which banks must concentrate is the integration of the online channel with the
rest of the bank. This is significant because cross sales made through other channels and cost savings
account for nearly all of the value of the online channel's value that is realized offline. The workers at the
branch, the call centre, and the relationship manager should all be able to market banking services via an
active internet channel. Compared to a group of channels operating independently, integrated channels are
significantly more efficient.
Banks must determine the routes that customers in different customer categories are likely to travel among
the channels in order to ease this integration. Then, these paths can be used to work around the interactions
in each channel. For instance, a call centre agent must determine which channels the client used prior to
calling and which channels the customer is most likely to utilize going forward. Customers must be
welcomed at entry and exit points on each channel before being sent to other channels. As a result, creating a
seamless multichannel experience is the banks' main objective.
On the other hand, banks that intend to develop their online businesses must grasp a number of strategic
problems, such as whether they have the appropriate business model for e-banking. What should the cost of
their e-banking services and goods be? Bankers who want to enter the e- banking market must research
various choices, make investments, and form several relationships. To find the finest chances, they must
invest time and effort. If traditional banks use price incentives to expand their e-businesses too aggressively,
they run the risk of their traditional business' profitability. Yet, their efforts to establish a strong e-banking
business will be in nothing if they do not provide customers with enough financial incentives to bank online.
Rethinking organizational structures and management procedures requires creativity on the part of banks. It
can be challenging for traditional banks with conservative personalities to recruit and keep internet talent. It
would also be difficult to convince those working in traditional businesses to assist create an e-enterprise. It
will take a significant overhaul of the management structure, planning and budgeting procedures, and
incentive systems to make this all happen. If banks show boldness, exercise their inventiveness, and move
decisively, they can take advantage of the opportunities presented by the Internet.
The majority of banks have begun to concentrate on e-banking activities, but mobile banking has emerged as
a new threat. M-Banking gives banks another way to provide their services online as well as another way to
reach out to potential consumers and cross-sell to current ones. The importance of branch banking has been
somewhat diminished as a result of the clients' rapidly changing lifestyles and their desire for greater speed
and convenience. Disintermediation of old channels is happening as a result of the spread of new
technologies. Banks have the ability to go beyond their traditional function as a conduit for banking and

[16]
financial services and turn into suppliers of individualized information. They can effectively use mobile
banking to:
● Provide personalized products and services to specific customers and thus increase customer loyalty.
● Exploit additional sources of revenue from subscriptions, transactions and third- party referrals.
M-Banking offers banks the chance to considerably increase the number of customers they have, provided
they take the right positioning. They need to build organized relationships with service affiliates and gain an
edge in data collection, processing, and deployment if they are to take advantage of these prospects.

1.14 STATE BANK OF INDIA (SBI)

State Bank of India (SBI), a Fortune 500 firm, is a Mumbai-based statutory institution for public sector
banking and financial services in India. SBI has a long history dating back more than 200 years, making it
the bank that Indians have had the most faith in. With a quarter of the market share, SBI is the biggest bank
in India and serves over 45 crore customers through a vast network of over 22,000 branches, 62617
ATMs/ADWMs, and 71,968 BC outlets. The bank's core values of service, transparency, ethics, politeness,
and sustainability drive its unwavering focus on innovation and customer centricity.
Customers may now perform a variety of tasks with their bank account with absolute ease thanks to SBI
Online Banking. With the help of SBI Bank's Internet banking service, you can check your account balance,
get a statement, send money to a third party, or keep track of your transactions. The days of having to visit
your nearby bank only to update your passbook or check your balance are long gone. Customers of SBI
Bank can take use of a variety of online goods and services, including;
● SBI E-Tax
● Bill Payment
● E-Payment
● Fund Transfer
● Third Party Transfer
● Demand Draft
● Cheque Book Request
● Account Opening Request
● Demat Account Statement
● Donation
The SBI Internet Banking website is called OnlineSBI, and it provides 24/7 access to both retail and
business users' bank accounts online. Using the latest cutting-edge tools and technology, highly skilled
professionals created this banking website. With more than 11,000 of the bank's branches spread out around
the nation, OnlineSBI offers unified and secure access to bank accounts. Verisign, the top Internet

[17]
certification body in the world, has certified the website. The bank conveniently provides a variety of
corporate and retail banking products and value-added services on this website.
You must must have a bank account with the bank in order to use the SBI's online banking services. Only
then can you apply for an internet banking account. You may simply get the SBI Online Banking application
form at any bank branch. You must fill out this application form with your account information, personal
information, and the address where you want your internet banking kit delivered. The bank will provide the
net banking kit right away if it is accessible at the time of your application at the bank branch. You’re initial
Internet banking User ID and Password are included in this kit, allowing you to log in to your account.
The activation of SBI Net Banking takes 24 hours, and 24 hours after receiving the online banking kit from
the bank, you must log in using your user ID and password. With the use of OnlineSBI, you may also look
up various SBI Bank internet banking branches. It is advised that you immediately update your username
and password after logging in with the information from the Internet banking kit.
General Information:
● You should register for OnlineSBI with the branch where you maintain the account.
● If you maintain accounts at more than one branch, you need to register at each branch separately.
● Normally OnlineSBI services will be open to the customer only after he/she acknowledges the
receipt of password.
● We invite you to visit your account on the site frequently for transacting business or viewing account
balances. If you believe that any information relating to your account has a discrepancy, please bring
it to the notice of the branch by e-mail or letter.
● In a joint account, all account holders are entitled to register, as users of OnlineSBI, but transactions
would be permitted based on the account operation rights recorded at the branch. (To begin with the
services will be extended only to single or Joint E or S accounts only).
● All accounts at the branch whether or not listed in the registration form, will be available on the
OnlineSBI. However the applicant has the option to selectively view the accounts on the OnlineSBI.

1.15 SERVICES PROVIDED BY SBI INTERNET BANKING

ONLINE SBI (WWW.ONLINESBI.COM):
State 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 Banks Retail and Corporate customers.
The application is developed using the latest cutting edge technology and tools. The infrastructure
[18]
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
functional areas, and enables customers :

 Issue Demand Drafts online

 Transfer 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

VALUE ADDED SERVICES

 Tax payments to central and state governments through site to site integration.
 Supply Chain Finance( e-VFS- Electronic Vendor Finance Scheme)
 Direct Debit Facility
 E Collection Facilities 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

PRODUCTS & SERVICES


 E-Ticketing
 SBI E-Tax
 Bill Payment

[19]
 RTGS/NEFT
 E-Payment
 Fund Transfer
 Third Party Transfer
 Demand Draft
 Cheque Book Request
 Account Opening Request
 Account Statement
 Transaction Enquiry
 Demat Account Statement
 Donation

[20]
 CHAPTER 2

RESEARCH METHODOLOGY

[21]
 2.1 OBJECTIVES

The main objectives of the study are:

 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 E-Banking of SBI.
 SWOC stands for strengths, weaknesses, opportunities and challenges of their firm.
 To build up various solutions for drawbacks in net banking.

2.2 HYPOTHESIS OF THE STUDY

NULL HYPOTHESIS (H0): Respondents are not interested to using E-Banking services.

ALTERNATE HYPOTHESIS (H1): Respondent are interested to using E-Banking services.

2.3 SCOPE OF THE STUDY

The study is made taking consideration of whole State Bank Of India.

The research covers only random respondent.

2.4 NEED OF THE STUDY

This study is needed to find out the working of E-Banking of SBI and its important to customer as well as to
bank.

[22]
 2.5 RESEARCH DESIGN

Particular Data
Number of sample 51

Name of sampling Random probability

2.6 DATA COLLECTION

Primary Data:

Primary data collection is the process of gathering data through surveys, interviews, or experiments.

 The data is collected from random customer of SBI with the help of Google forms.

Secondary Data:

Secondary data refers to data that is collected by someone other than the primary user. Common sources
of secondary data for social science include censuses,information collected by government departments,
organizational records and data that was originally collected for other research purpose.

 Books
 Website of SBI
 Library research
 Internal reports of the bank

2.7 FUTURE SCOPE

The study will provide 360 degree information about SBI and its internet banking, leading to new ways to
tackle problems and improve SWOC.

[23]
 2.8 LIMITATION OF THE STUDY

 The study is restricted to the Mumbai City only

 Time constraint
 Resource constraint
 The sample size chosen for the customers was only 51 and that may not represent the true
picture of the customers perception towards the E-Banking.

[24]
 CHAPTER 3
REVIEW OF LITERATURE

[25]
3.1 Introduction

This chapter reviews literature review related to the E-banking. The chapter deals with various
journal, newspaper ,article ,reports ,magazines ,books ,Etc. To gain background knowledge of the
research topic.

3.2. Dr Rajasulochana, Mohammed Khizerulla, (2022)1, E-Banking is a personal banking

service that allows customers to pay invoices to Finnish and foreign recipients easily and securely.
Study found significant relationships between Age, Qualifications, Income, and usage of e-banking and
satisfaction.

3.3. R Elavarasi, ST Surulive, (2014)2, This study identified which commercial banks provide
better e-banking services to customers and identified satisfaction level of customer view about internet
banking websites. Age, educational qualification, occupation, income level of customer are significant
factors.

3.4. N Mari Anand, (2015)3, Banks are increasingly relying on distribution channels to differentiate
and gain competitive advantage due to the introduction of internet, rapid technological evolutions,
deregulation, globalization, and changing competitive and regulatory forces.

3.5. N Jamaluddin, (2013)4, The Indian banking system was domestically oriented at the time of
nationalization in 1969, with banks primarily involved in mobilizing domestic savings, lending funds to
specific sectors of the economy and raising resources for financing public deficits. Technology in Indian
banking has evolved from back office automation to online, centralized and integrated solutions. The
Narasimham Committee of 1991 implemented free entry of private sector/foreign banks, which
brought new technologies and world class quality services to customers through ATMs, credit cards and
internet banking, snatching customers from PSU banks.

3.6. DC Agrawal, Sakshi Chauhan, Ankur Kukreti, (2017)5, This study examines how much e-
banking is used in Public and Private sectors banks, consumer satisfaction, employee satisfaction, and
working style.

3.7. Rupa Rege Nitsure, (2003)6, E-banking has the potential to transform the banking business,
but developing countries face challenges such as the 'digital divide' and inadequate financing of SMEs.

[26]
3.8. Poonam Sawant, RV Kulkarni, SD Mundhe, (2013)7, This paper examines the impact of e-
services on customer satisfaction in three major public sector banks and three major private sector
banks.

3.9. BK Dhanya, VP Velmurugan, (2020)8, E-Banking is a revolution in the banking sector, with
Automatic Teller Machines (ATM), Direct Bill Payment (DBP) and Electronic Fund Transfer (EFT). It
depends on the knowhow, outlook, loyalty and attachment of the working at all levels and how far
customers bring in the benefits from e-Banking services.

3.10. Nishith Nagar, E Ghai, (2019)9, In the increasingly competitive world of retail banking,
organizations must establish a presence that sets them apart from the crowd. Low cost, convenience,
broad product lines, and customer service, to name a few, are the perfect ingredients to segment the
banking industry.

3.11. Manminder Singh Saluja, T Wadhe, (2015)10, E-banking has a positive effect on
nationalised and old private sector banks' profitability, with increase in number of ATMs positively
affecting profitability, but insignificant relationship between number of branches and profitability.

3.12. Deepa Damodaran, N Sambandam, (2018)11, This paper examines the factors that
influence the shift of customers from e-banking to m-banking of State Bank of India. It was found that
perceived benefits of using the banking services over mobile phones, influence of peer groups, service
provider facilitating conditions and technology are the major influencing factors.

3.13. Mr Shakir Shaik, Dr SA Sameera, (2014)12, E-Banking is a fast spreading service that allows
customers to access account transactions from a remote location. Security issues are important as
fraudsters can make life unsafe and miserable. This paper examines the various security issues related
to E-Banking services in India and discusses the impact of security issues on customer level satisfaction.

3.14. S Purushothaman, G Priyadharshini, M Hemavathi, J Gowrishankar, (2021) 13, The

main objective of this study is to analyse the awareness and usage of internet banking among account
holders of SBI bank in Chennai region. Suggestions include cyber security, kiosk, awareness
programmes, and training for customer engagement.

3.15. Sanjeev Pradhan, (2019)14, This study aims to analyze the level of satisfaction of customer,
their agreeableness towards e-banking services offered by Nepal SBI bank. Satisfaction is affected by

[27]
perceived ease of use, website contents, and security. An ethical hacker with IT Risk Officer is needed
to create trust in banks.

3.16. Archana Salim, (2022)15, The future of banking is driven by technological changes, such as
the covid-19 pandemic, and e-Banking has introduced new business challenges.

3.17. Georgios Angelakopoulos, Athanassios Mihiotis, (2011) 16, Banks are expanding to e-
banking services in order to remain competitive, keep up with technological developments, and benefit
from lower costs. However, they face challenges such as low response rates, non-familiarity with
technologically advanced devices, and security and privacy issues.

3.18. Ainin Sulaiman, LIM CH, Alice Wee, (2005)17, The advent of the Internet has
revolutionized the way banking is done in Malaysia, allowing banks to conduct banking activities via the
Internet. This paper provides an overview of e-banking adoption in Malaysia, analyzing the local bank
websites using a model introduced by Chung and Payter (2002). Five hundred and forty two usable
questionnaire responses were received to a survey, of which fifty four percent were from e‐banking
adopters. Most of the adopters used the service to carry out basic activities such as viewing balance
inquiries, obtaining summary reports of transactions and using savings and current account facilities.

3.19. Shilpan Dineshkumar Vyas, (2012)18, Internet banking is changing the banking industry,
making it more of a "need to have" than a "nice to have" service. This research paper introduces e-
banking, explains its meaning, functions, types, advantages and limitations, and shows its impact on
traditional services.

3.20. F Sameni Keivani, M Jouzbarkand, M Khodadadi, Z Khalili Sourkouhi, (2012) 19, This
paper examines e-banking and proposes strategies to harness e-commerce into traditional retail
banking services.

3.21. Ziqi Liao, Michael Tow Cheung, (2002)20, Consumer attitudes towards Internet e-retail
banking were measured in Singapore, with expectations of accuracy, security, network speed, user-
friendliness, user involvement and convenience being the most important quality attributes.

3.22. Himani Sharma, (2011)21, E-banking is a strategic tool used by global banks to attract and
retain customers, and is mostly used by professionals, business class and males belonging to middle
age.

[28]
3.23. Jannatul Mawa Nupur, (2010)22, E-banking can provide speedier, faster and reliable
services to customers, but reliability, responsiveness, assurance, empathy, and tangibles are core
service quality dimensions for customer satisfaction.

3.24. Reeti Agarwal, Sanjay Rastogi, Ankit Mehrotra, (2009) 23, Customer perception and
attitude towards e-banking is influenced by account type, age, profession, security and trust, and slow
transaction speed.

3.25. Yuni Nustini, Nurul Fadhillah, (2020) 24, This research explored factors that influence the
use of e-banking and their effect on consumptive behaviour of Moslem students of the Faculty of
Economics Universitas Islam Indonesia (FE UII). It found that Completeness of the Feature, Service
Quality, Trust, Social Influence (IV), Use of e-Banking (MV), and Consumptive Behavior (DV) were all
associated with consumptive behavior.

3.26. Mohammad O Al-Smadi, Saad A Al-Wabel, (1970)25, Banks should focus on promoting
the confidence of electronic banking services and encouraging customers to use them, as costs
associated with adopting electronic banking are higher than revenues from providing them.

[29]
 Reference

1. Dr Rajasulochana, Mohammed khizerulla Service Quality In SBI: An Assessment Of Customer

Satisfaction On E-Banking Services, Journal of Positive School Psychology 2022

2. R Elavarasi, ST Surulivel Customer awareness and preference towards e-banking services of

banks (A study of SBI)International Research Journal of Business and Management 4 (1), 59-67,
2014

3. N Mari Anand, E-Banking Trends in India: Evolution, Challenges and Opportunities, Shanlax Int.
J. Manag 3 (2), 107-117, 2015

4. N Jamaluddin,E-Banking: Challenges and opportunities in India Proceedings of 23rd

International Business Research Conference, 18-20, 2013

5. DC Agrawal, Sakshi Chauhan, Ankur Kukreti, A Comparative Study of E-Banking in Public and
Private Sectors Banks (with special reference to SBI and HDFC Bank in Haridwar)Asian Journal of
Research in Business Economics and Management 7 (8), 370-389, 2017

6. Rupa Rege Nitsure, E-banking: Challenges and Opportunities Economic and Political weekly,
5377-5381, 2003

7. Poonam Sawant, RV Kulkarni, SD Mundhe, Customer Satisfaction with e-Banking: A comparative

study of public and private sector banks IUP Journal of Bank Management 12 (4), 29, 2013

8. BK Dhanya, VP Velmurugan, Perception towards the problems of e-banking among the new
users at Thiruvananthapuram District Journal of Critical Reviews 7 (1), 474-477, 2020

9. Nishith Nagar, E Ghai, A Study of Bank Customer’s Reliabili ty towards Electronic Banking (E-
Banking) Channel’s Int. J. Manag. Stud 6, 34, 2019

10. Manminder Singh Saluja, T Wadhe, Impact of e-banking on profitability of commercial banks in
India International Journal in Management and Social Science 3 (2), 478-483, 2015

11. Deepa Damodaran, N Sambandam, Customer Shift from E-Banking to M-Banking in State Bank
of India: A Study to Identify Influencing Factors Causing the Change in Behaviour. Indian Journal
of Public Health Research & Development 9 (11), 2018

[30]
12. Mr Shakir Shaik, Dr SA Sameera, Security issues in e-banking services in Indian scenario Asian
Journal of Management Sciences 2 (03), 28-30, 2014

13. S Purushothaman, G Priyadharshini, M Hemavathi, J Gowrishankar, A Study on Customer

Satisfaction towards E-Banking Services Offered by State Bank of India Annals of the Romanian
Society for Cell Biology, 16156-16161, 2021

14. Sanjeev Pradhan, CUSTOMER SATISFACTION TOWARDS E-BANKING SERVICES OFFERED BY

NEPAL SBI BANK LTD,October 2019

15. Archana Salim, E-Banking Need and Benefits in Indian Economy and Current Financial
Innovations in E-banking in India October 2022

16. Georgios Angelakopoulos, Athanassios Mihiotis, E-banking: challenges and opportunities in the
Greek banking sector Electronic Commerce Research 11, 297-319, 2011

17. Ainin Sulaiman, LIM CH, Alice Wee, Prospects and Challenges of E‐banking in Malaysia The
Electronic Journal of Information Systems in Developing Countries 22 (1), 1-11, 2005

18. Shilpan Dineshkumar Vyas, Impact of e-banking on traditional banking services, 2012

19. F Sameni Keivani, M Jouzbarkand, M Khodadadi, Z Khalili Sourkouhi, General View on the E-
banking International Proceedings of Economics Development & Research 43, p62, 2012

20. Ziqi Liao, Michael Tow Cheung, Internet-based e-banking and consumer attitudes: an empirical
study Information & management 39 (4), 283-295, 2002

21. Himani Sharma, Bankers' perspectives on e-banking Global journal of Research in Management
1 (1), 71, 2011

22. Jannatul Mawa Nupur, E-banking and customers’ satisfaction in Bangladesh: An analysis
International review of business research papers 6 (4), 145-156, 2010

23. Reeti Agarwal, Sanjay Rastogi, Ankit Mehrotra, Customers’ perspectives regarding e-banking in
an emerging economy Journal of Retailing and consumer services 16 (5), 340-351, 2009

24. Yuni Nustini, Nurul Fadhillah, Factors that Influence the Use of e-Banking and the Effect on
Consumptivism Review of Integrative Business and Economics Research 9, 330-345, 2020

[31]
25. Mohammad O Al-Smadi, Saad A Al-Wabel, The impact of e-banking on the performance of
Jordanian banks The Journal of Internet Banking and Commerce 16 (2), 1-10, 1970

[32]
 CHAPTER 4
DATA ANALYSIS AND INTERPRETATION

[33]
4.1 Introduction of Data Analysis and Interpretation:

 Data Processing:
Data processing is a crucial stage in research. After collecting the data from the field, the researcher
has to process and analyse them in order to arrive at certain conclusions which may confirm or
invalidate the hypothesis which he had formulated towards the beginning of his research worth. Data
processing consists of editing, coding, and tabulation. It is an intermediary stage between the
collection of data and their analysis and interpretation.

 Editing:
Editing is the process of examining the data collected in a survey to detect errors and omissions
and to see that they are corrected and the schedules prepared for tabulation is known as
editing. Editing involves routing task of checking the filled questionnaire.

 Coding: 
Coding is considered as the classification process. The purpose of coding is to classify the answer in
a question into meaningful categories which is necessary for tabulation. Coding aims at summarizing
the survey answers so that the handling of such data is made easy for further analysis and their
essential pattern is brought out.

 Tabulation:
It is one of the most important methods of presenting the classified data in a meaningful and
systematic fashion. It is the process of logical listing of the classified data in the form of a table
containing horizontal rows and vertical columns with all the necessary descriptions.

 Data Analysis:
Data analysis is the process of cleaning, changing, and processing raw data, and extracting
actionable, relevant information that helps businesses make informed decisions. The procedure
helps reduce the risks inherent in decision-making by providing useful insights and statistics,
often presented in charts, images, tables, and graphs.

 Data Interpretation:

[34]
 Interpretation refers to the task of drawing inferences from the collected facts after an
analytical or/and experimental study. Interpretation is the device through which the factors
that seem to explain what has been observed by researcher in the course of the study can be
better understood and it also provides a theoretical conception which can serve as a guide for
further research.

4.2 Introduction of Hypothesis Testing:

Hypothesis testing is a systematic procedure for deciding whether the results of a research
study support a particular theory which applies to a population.
Hypothesis testing uses sample data to evaluate a hypothesis about a population. A hypothesis
is an assumption about a population parameter. It is a statement about the population that may
or may not be true. Hypothesis testing aims to make a statistical conclusion about accepting or
not accepting the hypothesis.
Statistical analysis is an integral and vital part of a research report. For my study I was used
statistical analysis techniques i.e., Z-test.

 Z-test:

 It is a statistical tool used for the comparison or determination of the significance of several
statistical measures, particularly the mean in a sample from a normally distributed population
or between two independent samples.

 Z-test-test is generally performed in samples of a larger size (n>30).

 Z-test is performed on samples that are normally distributed.

 Z-test is more convenient as it has the same critical value for different sample sizes.

 In a normal distribution, the average is considered 0 and the variance as 1.

 In addition, to mean, Z-test can also be used to compare the population proportion.

[35]
4.3 DATA ANALYSIS AND INTERPRETATION:

4.3.1 GENDER

Table 4.1 Gender:

GENDER NO.OF RESPONSES NO.OF RESPONSES

(IN%)
FEMALE 32 62.7%
MALE 19 37.3%
TOTAL 51 100%

Figure 4.1 Gender:

Source :Primary Data (Complied By Research)

INTERPRETATION:

From the above chart it is analysed that the male respondents are 37.3% and the female respondents are
67.7%

[36]
4.3.2 AGE GROUP

Table 4.2 Age Group:

Age Group No. Of Respondents No. of Respondents (In%)

15-20 28 54.9%
21-30 19 37.3%
31-40 4 7.8%
Total 51 100%

Figure 4.2 Age Group

Source :Primary Data (Complied By Research)

INTERPRETATION:
 Above figure shows, the age group of respondent
 It interpreted that; maximum number of responses were received from age group of 15 to 20 i.e.,
54.9%

[37]
4.3.3 INCOME

Table 4.3 Income

Income No. Of Respondents No. of Respondents (In%)

Less than 1 lakh 39 76.5%
1-3 lakh 6 11.8%
3.5 lakh 6 11.8%
Total 51 100%

Figure 4.3 Income

Source :Primary Data (Complied By Research)

INTERPRETATION :
 Figure 4.3 shows that, the no of respondents income category
 Out of 51 respondents, 39 respondents have income less than 1 lakh.
 Out of 51 respondents, 6 respondents have income between 3 to 5 lakh.

[38]
4.3.4 ARE YOU AWARE ABOUT E-BANKING SERVICES?

Table 4.4 Are you aware about E-Banking services

Awareness About E-Banking No. Of Respondents No. of Respondents (In%)

Yes 48 94.1%
No 3 5.9%
Total 51 100%

Figure 4.4 Are you aware about E-Banking services

Source :Primary Data (Complied By Research)

INTERPRETATION :
 This 4.4 figure shows maximum number of respondents are aware about E-Banking.
 Only 5.9% of respondents are not aware about E-Banking.

[39]
4.3.5 FROM HOW LONG YOU ARE CUSTOMER OF SBI BANK?

Table 4.5 From how long you are customer of SBI bank

Customer From No. Of Respondents No. of Respondents (In%)

From 1 month 15 29.4%
From 1 year 19 37.3%
More than 1 year 17 33.3%
Total 51 100%

Figure 4.5 From how long you are customer of SBI bank

Source :Primary Data (Complied By Research)

INTERPRETATION :
 The 4.5 figure shows that, from how long respondents are customers of SBI Bank.
 Out of 51 respondents, 19 respondents are customer of SBI Bank from 1 year,15 respondents
are customer from 1month and 17 respondents are customer from more than 1 year.

[40]
4.3.6 ARE YOU COMFARTABLE WITH BRANCH BANKING OR E-BANKING?

Table 4.6 Are you comfortable with branch banking or e-banking

Comfortable With No. Of Respondents No. of Respondents (In%)

Branch banking 7 13.7%
E-banking 24 47.1%
Both 20 39.2%
Total 51 100%

Figure 4.6 Are you comfortable with branch banking or e-banking

Source :Primary Data (Complied By Research)

INTERPRETATION :
 Above figure shows the respondents are interested in branch banking, e-banking or both.
 According to this figure more respondents are interested in E-banking.
 Also interested in both e-banking and branch banking.

[41]
4.3.7 HOW OFTEN DO YOU USE E-BANKING SERVICES?

Table 4.7 How often do you use e-banking services

Used No. Of Respondents No. of Respondents (In%)

Daily 27 52.9%
Ones a week 10 19.6%
Every fortnight 7 13.7%
Ones a month 7 13.7%
Total 51 100%

Figure 4.7 How often do you use e-banking services

Source :Primary Data (Complied By Research)

INTERPRETATION :
 Above figure shows that, respondents how often they using e-banking services
 In 4.7 figure shows maximum number of respondents are using e-banking services in daily basis.
 It means out of 51 respondents, 27 respondents using e-banking services in daily basis
 User of every fortnight and ones in month are equal.

[42]
4.3.8 WHICH OF THE FOLLOWING E-BANKING SERVICES OF SBI YOU ARE USING?

Table 4.8 which of the following e-banking services of SBI you are using

Services No. Of Respondents No. of Respondents (In%)

Yono 9 17.6%
Net banking 15 29.4%
Other e-wallet like (phone 27 52.9%
pay, g pay & paytm)
Total 51 100%

Figure 4.8 which of the following e-banking services of SBI you are using

Source :Primary Data (Complied By Research)

INTERPRETATION :

 Above figure shows, the majority of respondents are not using SBI YONO app as E-banking
service.
 It reveals that, the respondents are more comfortable with e-wallet services like (phone pay, g
pay & paytm).that’s why majority respondents showing their interest in e-wallet services.

[43]
4.3.9 DO YOU FEEL E-BANKING SYSTEM OF THE BANK IS CUSTOMER FRIENDLY?

Table 4.9 do you feel e-banking system of the bank is customer friendly

Customer friendly No. Of Respondents No. of Respondents (In%)

Yes 44 86.3%
No 7 13.7%
Total 51 100%

Figure 4.9 do you feel e-banking system of the bank is customer friendly

Source :Primary Data (Complied By Research)

INTERPRETATION :

 Above figure shows, respondents opinion about e-banking system is customer friendly or not.
 Out of 51 respondents, 44 respondents feel this system is customer friendly
 Out of of 51 respondents, 7 respondents feel this system is not customer friendly.

[44]
4.3.10 WHAT PURPOSE YOU ARE PREFERRING E-BANKING?

Table 4.10 what purpose you are preferring e-banking

Preferred No. Of Respondents No. of Respondents (In%)

Saves time 37 72.5%
Dangerous 1 2%
Safe 20 39.2%
Easy to use 31 60.8%
Difficult to handle 3 5.9%

Figure 4.10 what purpose you are preferring e-banking

Source :Primary Data (Complied By Research)

INTERPRETATION :

 Above figure shows that, the purpose of e-banking prefer by customers or respondents.
 It reveals that, most of the respondents prefer e-banking for saves time & easy to use.

[45]
4.3.11 DO YOU THINK HUMAN CONTACT IS IMPORTANT FOR BANKING RELATION?

Table 4.11 do you think human contact is important for banking relation

Human contact is No. Of Respondents No. of Respondents (In%)

important
Yes 45 88.2%
No 6 11.8%
Total 51 100%

Figure 4.11 do you think human contact is important for banking relation

Source :Primary Data (Complied By Research)

INTERPRETATION:

 Above figure shows that, the customer thinks about human contact is important for banking
relation or Not.
 Out of 51 respondents, 45 respondents thinks human contact is important for banking relation
and 6 respondents thinks human contact is not important for banking relation.

[46]
4.3.12 HOW BANK PROVIDE E-BANKING DETAILS TO YOU?

Table 4.12 how bank provide e-banking detail to you

Details No. Of Respondents No. of Respondents (In%)

Via SMS 39 76.5%
E-mails 28 54.9%
Brouchers 1 2%
Other 6 11.8%

Figure 4.12 how bank provide e-banking detail to you

Source :Primary Data (Complied By Research)

INTERPRETATION:

 Above figure shows that, respondents get detail about e-banking via sms, e-mails,
brochures and other methods.
 It reveals that, most of respondents get detail from SMS which provided by bank also
they get via mails.

[47]
4.4 Testing of Hypothesis:
 The hypothesis for the study is formed as below:
 H0: 75% respondents are interested to e-banking
 H1: More than 75% respondents are interested to e-banking

★ Taken into consideration that population of respondents have lack of knowledge about e-banking

4.4.1 Testing of Hypothesis using Z-test:


Null Hypothesis:
H0: p = 0.75 (It implies that 75% respondents are interested to e-banking.)
Alternate Hypothesis:
H1: p > 0.75 (It implies that more than 75% respondents are interested to e-banking.)

Formula:

Where,
P - population assumed proportion
p - sample proportion

n – sample size.

[48]
4.4.2 Taking sample for testing above hypothesis:

Table (For testing H0) No. of Responses No. of Responses ( in %)

Answer
No. of respondents interested 48 94.1%
to e-banking.
No. of respondents are not 3 5.9%
interested to e-banking
Total 51 100%

We use 5% level of significance and Right tailed test for finding Z Critical value.

P = (Assumed) population proportion = 0.75
𝑝 = sample proportion = 0.941
Level of significance is 5 % i.e., 0.05
Z = 0.941-0.75/√[(0.75*0.25)/51]
Z = 0.191/ 0.0606
Z = 3.15
Zcal value = 3.15
Z critical value for Right Tailed Test:
Z > 1.64
Decision Criteria for Right tailed test,
We reject null hypothesis if, 68

[49]
Zcal Value > Z critical Value.
Here,
Zcal = 3.151
Z critical value = 1.64
3.15 > 1.64 (Zcal Value > Z critical Value)

We Reject,
H0: 75% respondents are interested to e-banking
& Accept
-H1: More than 75% respondents are interested to e-banking

[50]
 CHAPTER 5
FINDING, SUGGESTION, CONCLUSION

[51]
 5.1 FINDING :

1. Increasing trend of customers using e-banking services: There has been a steady increase in the
number of customers using e-banking services of SBI over the years. This indicates a growing trend
towards digital banking among customers.

2. Higher satisfaction levels among customers using e-banking services: SBI's e-banking customers
have reported higher satisfaction levels compared to those who use traditional banking services.
This is due to the convenience, accessibility, and time-saving features of e-banking.

3. SBI's e-banking services are easily accessible: SBI has made its e-banking services easily accessible to
customers through various channels, such as internet banking, mobile banking, and SMS banking.
This allows customers to access their accounts and perform transactions from anywhere, anytime.

4. Security concerns: While SBI has taken measures to ensure the security of its e-banking services,
some customers still have concerns about the safety of their online transactions. This has led to the
adoption of additional security measures such as OTP (one-time password) and two-factor
authentication.

5. Technical issues: Some customers have faced technical issues while using SBI's e-banking services,
such as slow loading times or website crashes. However, SBI has been continuously improving its
technology infrastructure to address these issues.

Overall, the findings suggest that SBI's e-banking services are gaining popularity among customers due to
their convenience and accessibility. However, SBI needs to address security concerns and technical issues
to maintain and increase customer trust in its e-banking services

[52]
 5.2 SUGGESTION :

● We can see the time is changing and we the passage of time people are accepting technology there is
still a lot of perceptual blocking which hampers the growth it‘s the normal tendency of a human not
to have changes work on the old track, that‘s also one of the reason for the slow acceptance of
internet banking accounts. Banks should obey the RBI norms and provide facilities as per the norms,
which are not
● being followed by the banks. While the customer must be given the prompt services and the bank
officer should not have any fear on mind to provide the facilities as per RBI norms to the units going
sick. Internet banking facility must be made available in all branches of these two Banks
● Each section of these Banks should be computerized even in rural areas also.
● Personalized banking should be given a thrust as more and more banks are achieving in
● usual services. Covering up the towns in rural areas with ATMs so that the people in those area scan
alsoavail better services.
● Prompt dealing with permanent customers and speedy transactions without harassing the customers.
Fair dealing with the customers. More contributions from the employees of the bank.
● The staff should be co-operative, friendly and must be capable of understanding the problems of the
customers.
● Give proper training to customers for using i-banking
● Create a trust in mind of customers towards security of their accounts
● Provide a platform from where the customers can access different accounts at single time
● without extra charge. Make their sites more users friendly. Customers should be motivated to use I-
banking

● facilities more.

[53]
 5.3 CONCLUSION :

This study attempted to identify key quality attributes of internet banking services by analyzing internet
banking customers & their comments on banking experience. The findings of this study show that despite
of many advantages of online banking. People still consider it as an alternative for analyzing their bank
records. Although every bank today provides the facility of online banking but most of people use it only
once a month. This reason is that in case of internet banking interpersonal interaction with customers is
seldom possible. Identification & measurement of customer‘s expectations of the internet banking services
provide a frame of reference & their related quality dimension. The main factors which persuade people to
use onlinebanking are comfort & convenience & the facility which attracts them most is quality& quantity
of information. Therefore the implementation of quality initiatives should begin with defining customer‘s
need & preferences & their related quality dimensionsThere is still a lot needed for the banking system to
make reforms and train theircustomers for using internet for their banking account. Going through the
survey themain problem lies that still customer have a fear of hacking of accounts and thus donot go on for
internet banking. Banks are trying their level best by providing the best security options to the customers
but then to there is lot of factors which betrays a customer from opening an internet bank account. Banks
are providing free internet banking services also so that the customers can be attracted. By asking the bank
employs we came to know that maximum numbers of internet bank account holders are youth and
business man. E-Banking is an innovative tool that is fast becoming a necessity. It is a successful strategic
weapon for banks to remain profitable in a volatile and competitive market place of today. If proper
training should be given to customer by the bank employs to open an account will be beneficial secondly
the website should be made friendlier from where the first time customers can directly make and access
their accounts. In future, the availability of technology to ensure safety and privacy of e-transactions and
the RBI guidelines on various aspects of internet banking will definitely help in rapid growth of internet
banking in India.

[54]
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[57]
 ANNEXURES

Awareness about E-Banking Of SBI

1. NAME

2. Gender *

o Male
o Female
o Prefer not to say

3. Age group *

o 15-20
o 21-30
o 31-40
o More than 40

4. Income *

o Less than 1 lakh

o 1-3 lakh
o 3-5 lakh

5. Are you aware about E-Banking Services? *

o Yes
o No

[58]
6. From How long you are customer of SBI Bank? *

o From 1 month
o From 1 year
o More than 1 year
7. Are you comfortable with Branch Banking Or E-Banking? *

o Branch Banking
o E-Banking
o Both

8. How often do you use E-Banking service? *

o Daily
o Ones a week
o Every fortnight
o Ones a month

9. Which of the following E-Banking services of SBI you are using? *

o Yono App
o Net banking
o Other E-wallet like(phone pay, gpay, paytm)

10. Do you feel e banking system of the bank is customer friendly? *

o Yes
o No

[59]
 11. What purpose you are preferring E-Banking? *

o Saves time
Dangerous
Safe
Easy to use
Difficult to handle

12. Do you think human contact is important for banking relation? *

o Yes
o No
.

13. How banks provide E-Banking Details to you? *

Via SMS
E-mail
Brouchers
Other

[60]