An Analysis of Internet Banking PDF

A PROJECT REPORT ON
AN ANALYSIS OF INTERNET BANKING
SUBMITTED BY
JATIN ASHOK JAIN PAWAN
MCOM IN ADVANCE ACCOUNTANCY
SEMESTER III
UNDER THE GUIDANCE OF
PROF.VIJAY GAWDE
VIDYALANKAR SCHOOL OF INFORMATION

TECHNOLOGY
WADALA (E), MUMBAI- 400 037
UNIVERSITY OF MUMBAI
2020-2021
VIDYALANKARSCHOOL OF
INFORMATIONTECHNOLOGY
(Affiliated to Mumbai University)
Certificate
This is to certify that
Mr/MRS. JATIN JAIN OF MCOM IN ADVANCE ACCOUNTANCY

Semester III has undertaken & completed the project work titled
An Analysis of Internet Banking during the academic year
2020-2021under the guidance of MR PROF VIJAY GAWDE submitted on to
this college in fulfilment of the curriculum of MCOM IN ADVANCE
ACCOUNTANCY and of Mumbai.
This is a Bonafede project work & the information presented is True &
Original to the best of our knowledge and belief.
PROJECT COURSE EXTERNAL PRINCIPAL

GUIDE CO-ORDINATOR EXAMINER
ACKNOWLEDGMENT
I her by acknowledge all those who directly or indirectly helped me in drafting

Of this project report. It would not have been possible for me to complete the
task without their help and guidance.
First of all, I would like to thank The Principal Dr. ROHINI KELKAR,
The Vice Principal Prof. VIJAY GAWDE, and our Project Incharge
Prof. VIJAY GAWDE Who gave me the opportunity to do this project work.
They also conveyed the Important instructions from the university time to
time. Secondly I am very much obliged Prof. VIJAY GAWDE
for giving guidance for completing the project.
Last but not the least; I am thankful to the University of Mumbai for offering the
Project in the syllabus. I must mention my hearty gratitude towards my family,
Other faculties and friends who supported me to go ahead with the project.
DECLARATION
Vidyalankar School of Information Technology
(Affiliated to University of Mumbai)
Vidyalankar Marg, Wadala (E),
Mumbai 400037
I JATIN ASHOK JAIN, student of MCOM IN ADVANCE ACCOUTING SEMESTER III,

Vidyalankar School of Information Technology, hereby Declare that I have
completed the project on An Analysis of Internet Banking in academic year
2020-2021.The information submitted is true and original to the best of my
knowledge.
Signature of the Student
JATIN ASHOK JAIN

Executive summary
This project is based on analysis of internet banking system. Internet banking

system is an global platform which allows customers of an institution to conduct
financial transaction on an secured website which is operated by the institution.
Now a days, every bank is using online banking system for the convenience of
the customer, this study is focused on how internet banking evolved over the
years and what are the different form of internet banking system. This projects
the study of reviews of customers whether they prefer internet banking system
or not. In this project both primary and secondary data are collected with help
of survey and internet.
INDEX
SR.NO PARTICULARS PAGE NO.
Ch.1 Introduction to the Study
1.1 Introduction 1
1.2 Need of the Study 2
1.3 Literature Review 2
1.4 Objective of the Study 3
1.5 Methodology & Sources of data 4
1.6 Scope of the Study 4
1.7 Limitations of the Study 5
1.8 Project Outline 5
Ch.2 Theoretical Development 6-36
Ch.3 Review of Literature 37-49
Ch.4 Data Analysis & Findings 50-68
Ch.5 Conclusion 69
5.1 Suggestions 70
Appendix 71-73
Ch.6 Bibliography 74
List of Tables
SR NO. TITLE PAGE NO.

4.1 Analysis of Q. No 1 50
List of Figures
SR NO. TITLE PAGE NO.

4.1 Pie chart of Q. No 1 50
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CHAPTER 1. INTRODUCTION TO THE STUDY
1.1 INTRODUCTION
Internet banking, or e-banking, is the term that describes all transactions that
that take place among companies, organizations, and individuals and their
banking institutions. First conceptualized in the mid-1970s, some banks offered
customers electronic banking in 1985. However, the lack of Internet users, and
costs associated with using online banking, stunted growth. The Internet
explosion in the late-1990s made people more comfortable with making
transactions over the web. Despite the dot- com crash, e- banking grew
alongside the Internet.
❖ Online banking (or internet banking or E-banking) allows customers of a

financial institution to conduct financial transactions on a secure website
operated by the institution, which can be a retail or virtual bank, credit union
or building society.
❖ Online banking is the practice of making bank transactions or paying bills

via the Internet. Thanks to technology, and the Internet in particular, people
no longer have to leave the house to shop, communicate, or even do their
banking. Online banking allows a customer to make deposits, withdrawals,
and pay bills all with the click of a mouse.
❖ Online banking is the practice of making bank transactions or paying bills

via the Internet. Thanks to technology, and the Internet in particular, people
no longer have to leave the house to shop, communicate, or even do their
banking.
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1.2 NEED FOR THE STUDY
Internet banking is an globally used platform in now days every bank is using
the internet system for the customers, this study is mainly focused on the
advantages disadvantages of Internet banking in now days and collect the
reviews of the customers whether the services of an Internet banking is up to
mark or not and what are the areas of progress in the internet banking. This
study is all so based on how to prevent frauds from the online banking.
This study is mainly focused on the reviews of users of Internet banking system
.
Is it a secured platform or not for the users .
Is it provide the security from online hacking and frauds.
1.3 LITERATURE REVIEW
Rakesh H M & Ramya T J (2014)
In their research paper titled “A Study on Factors Influencing Consumer

Adoption of Internet Banking in India” tried to examine the factors that influence
internet banking adoption. Using PLS, a model is successfully proved and it is
found that internet banking is influenced by its perceived reliability, Perceived
ease of use and Perceived usefulness. In the marketing process of internet
banking services marketing expert should emphasize these benefits its
adoption provides and awareness can also be improved to attract consumers’
attention to internet banking services.
Shaza W. Ezzi (April 2014)
In their research paper titled “A Theoretical Model for Internet Banking: Beyond
Perceived Usefulness and Ease of Use” tried to inquired different types of
electronic banking like ATM’s, telephone banking, and electronic funds transfer,
Internet banking like has evolved from consumers’ needs to
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Have superior access to banking services clear of most banks teller-staffed, normal
operating hours. Additionally, Internet banking has grown swiftly from the recent and
the span increases in e-commerce. Internet banking (IB) continues to govern the
landscape of electronic banking as consumers continue to use IB to complete
schedule banking transactions in addition to conducting on-line sales and
purchasing. This study presents a theoretical model considered to help researchers
and practitioners better understand the acceptance and adoption of Internet
Banking. The proposed model maybe particularly useful in developing nations
where consumers are loath to use Internet Banking even when the services are
available. However, a review of several studies that have investigated consumers’
acceptance of Internet banking services from a multiplicity of perspectives have not
reached a clear consensus of the factors that contribute to overall consumer
acceptance and adoption. The paper concludes with discussions of the managerial
implications and avenues for future research.
1.4 OBJECTIVES OF THE STUDY
The main objectives of the study are:

❖To understand the genesis and concept of Internet-Banking.
❖To analyze the advantages and limitations of internet- Banking.
❖To explain the different form of Online-Banking and to analyze the rules &
regulation regarding Internet-Banking guided by RBI.
❖To analyze the behavior of a customer whether they prefer internet banking
or not with the help of primary data.
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1.5 METHODOLOGY AND SOURCES OF DATA COLLECTION
➢ Data Collection:
a) name of the study: Analysis of internet banking
b) Method of collection: secondary data – Distribution of questionnaire
c) The study is based on primary and secondary data
d) The data is collected from the sample of 110 respondent
❖ Methodology:
Area of study
As earlier stated the primary objective of this study is to get customers
response whether they prefer internet banking over manual banking or not.
The research has been done by adopting the survey method by distribution
of questionnaire.
1.6 SCOPE OF THE STUDY
• The scope of the study is identified after and during the study is
conducted .
• The project is based on primary as well as secondary data.
• The scope of the study is limited to 110 respondents.
• The scope of the study is to collect data from distribution of questionnaire
and take responses of the customers whether they prefer internet
banking over manual banking.
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1.7 LIMITATION OF THE STUDY:
The major limitations of the study are:
a) Difficulty in getting responses from the respondents in online

questionnaire
b) Respondents suggestions may or may not be correct
c) Limited information source.
1.8 Project outline
The first chapter deals with introduction of internet banking , the second chapter
deals with the theoretical development ,the third chapter deals with review of
literature and the fourth chapter deals with analysis and fifth chapter deals with
the findings which are made on the basis of analysis and the last chapter deals
with conclusion of the study.
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CHAPTER 2. INTRODUCTIONT ON ANALYSIS OF INTERNET BANKING
AND THERIOTICAL DEVELOPMENT
INTRODUCTION
Internet banking is an electronic payment system that enables customers of a
financial institution to conduct financial transactions on a website operated by
the institution, such as a retail bank, virtual bank, credit union or building
society. Online banking is also referred as internet banking, e-banking, virtual
banking and by other terms.
Online banking or E-banking is an umbrella term for the process by which a
customer may perform banking transactions electronically without visiting a
brick- and-mortar institution.
·Online banking is the practice of making bank transactions or paying bills via
the Internet. Thanks to technology, and the Internet in particular, people no
longer have to leave the house to shop, communicate, or even do their banking.
HOW ONLINE BANKING EVOLVED INTO A MAINSTREAM FINANCIAL

TOOL:
In today’s highly technical world, it’s hard to imagine there was once a time
when all banking was conducted at an actual brick-and-mortar financial
institution. Even simple account transfers required a trip into the bank.
While today’s online banking is filled with amazing innovations, it hasn’t always
been this easy ─ in fact it took a long time to get this far.
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HISTORICAL DEVOLOPMENT:
The precursor for the modern home online banking services were the distance
banking services over electronic media from the early 1980s. The term
'Online' became popular in the late '80s and referred to the use of a terminal,
keyboard and TV (or monitor) to access the banking system using a phone
line. 'Home banking' can also refer to the use of a numeric keypad to send
tones down a phone line with instructions to the bank. Online services started
in New York in 1981 when four of the city's major banks (Citibank, Chase
Manhattan, Chemical and Manufacturers Hanover) offered home banking
services using the videotext system. 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.
While financial institutions took steps to implement in e-banking services in the
mid-1990s, many consumers were hesitant to conduct monetary transactions
over the web. It took widespread adoption of electronic commerce, based on
trailblazing companies such as America Online, Amazon.com and eBay, to
make the idea of paying for items online widespread. By 2000, 80 percent of
U.S. banks offered e-banking. Customer use grew slowly. At Bank of America,
for example, it took 10 years to acquire
2 million e-banking customers. However, a significant cultural change took
place after the Y2K scare ended. In 2001, Bank of America became the first
bank to top 3 million online banking customers, more than 20 percent of its
customer base. In comparison, larger national institutions, such as Citigroup
claimed 2.2 million online relationships globally, while J.P. Morgan Chase
estimated it had more than 750,000 online banking customers. Wells Fargo had
2.5 million online banking customers, including small businesses. Online
customers proved more loyal and profitable than regular customers. In October
2001, Bank of
America customers executed a record 3.1 million electronic bill payments,
totaling more than $1 billion. In 2009, a report by Gartner Group estimated that
47 percent of U.S. adults and 30 percent in the United Kingdom are using bank
online. Today, many banks are internet only banks. Unlike their
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Predecessors, these internet only banks do not maintain brick and mortar
bank branches. Instead, they typically differentiate
Themselves by offering better interest rates and more extensive online
banking features.
❖ First Online Banking Services in the United States:
According to "Banking and Finance on the Internet," edited by Mary J.

Cronin, online banking was first introduced in the early 1980s in New York.
Four major banks—Citibank, Chase Manhattan, Chemical and
Manufacturers Hanover—offered home banking services. Chemical
introduced its Pronto services for individuals and small businesses in 1983.
❖ First Online Banking Services in the U.K:
Almost simultaneously with the United States, online banking arrived in the
United Kingdom. The UK's first home online banking services known as
Home link was set up by Bank of Scotland for customers of the
Nottingham Building Society (NBS) in 1983. The system used was based
on the UK's Prestel view link system and used a computer, such as the BBC
Micro, or keyboard (Tan data Td1400) connected to the telephone system
and television set. The system allowed on-line viewing of statements, bank
transfers and bill payments. In order to make bank transfers and bill
payments, a written instruction giving details of the intended recipient had
to be sent to the NBS who set the details up on the Home link system.
Stanford Federal Credit Union was the first financial institution to offer online
internet banking services to all of its members in October 1994.
Banks and the World Wide Web:

In the 1990s, banks realized that the rising popularity of the World Wide
Web gave them an added opportunity to advertise their services. Initially,
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They used the Web as another brochure, without interaction with the
customer. Early sites featured pictures of the bank's occurs or buildings, and
provided customers with maps of branches and ATM locations, phone
numbers to call for further information and simple listings of products.
At the beginning of 2004, some 33 million U.S. households (31% of the
market) were using one form or another of online banking. Five years later,
47% of Americans were banking online, according to a survey by Gartner
Group. Meanwhile, in the UK e-banking grew its reach from 63% to 70% of
Internet users between 2011 and 2012.
❖ First Online Banking in India:
ICICI bank is the first one to have introduced Online-Banking in 1994 for a
limited range of services such as access to account information,
correspondence and, recently, funds transfer between its branches. ICICI is
also getting into e-trading, thus offering a broader range of integrated
services to the customer.
a) Investment purchase or sale.
b) Loan applications and transactions, such as repayments of enrolments.
Credit card applications.
c) Register utility billers and make bill payments. Financial institution
administration.
d) Management of multiple users having varying levels of authority.
Transaction approval process.
e) Some financial institutions offer special internet banking services, for
example:
f) Personal financial management support, such as importing data into
personal Accounting Software. Some online banking platforms support
account Aggregation tallow the customers to monitor all of their accounts in
one place whether they are with their main bank or with other institutions.
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FEATURES OF INTERNET BANKING:
Internet banking is beneficial for both the provider and the customer. Stated that
rationales of bank’s usage of the internet banking technology from the bank
perspective are mainly to saving cost. Banks use internet banking is because it
is the cheapest delivery channel for banking products. This kind of services can
save time and money of the bank with an added benefit of minimizing the
likelihood of committing errors by bank tellers. Internet banking offer services
to their customers to use at their conveniences. Mostly, undergraduate students
are like conveniences, easy and fast, somehow internet banking usage for
undergraduate still not so much. From the figure is show that age 16-24 is lower
compare to age 25 onward. While younger peoples continue to make up the
greater part of online users, due to internet banking users greater proportion of
new internet banker is age 55. Internet Banking is a simple and convenient way
to manage your money. When you enroll in Online Banking, you will be able to
save time by managing your day- to-day banking activities from any personal
computer with Internet access - while still having complete control of your funds.
Competition is yet another important rationale with increasing competitive

pressures from existing firms and new entrants in the market. At the same time,
internet banking strategy has been an interesting way to retain existing
customers and attract more new customers. The use of internet banking
become an alternative channel has also been allowing banks to target different
demographic segment more effectively.
(Robinson, 2000) believe that supply of internet banking services enable bank
to establish and extend relationship with customers. Benefit for the users are
numerous as well and include convenience of the services, lower cost of
transaction and more frequent monitoring of accounts among others.
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The basic characteristics of internet banking are:
• To help bank perspective to save costs.

• To save time and money.
• To minimize the likelihood committing errors.
• To fulfill undergraduate students convenience.
• To lower the transaction cost.
ADVANTAGES OF INTERNET BANKING:
Many banks have begun to offer customers the option of online- internet
banking, a practice that has advantages for both all parties involved. The
convenience of being able to access accounts at any time as well as the ability
to perform transactions without visiting a local branch, draw many people to be
involved.
1. Customer’s convenience
Direct banks are open for business anywhere there is an internet connection.
They are also 24 hours a day, 365 days a year open while if internet service is
not available, customer services is normally provided around the clock via
telephone. Real-time account balances and information are available at the
touch of a few buttons thus, making banking faster, easier and more efficient.
In addition, updating and maintaining a direct account is easy since it takes only
a few minutes to change the mailing address, order additional checks and be
informed for market interest rates.
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2. More efficient rates
The lack of significant infrastructure and overhead costs allow direct banks to
pay higher interest rates on savings and charge lower mortgage and loan rates.
Some offer high- yield checking accounts, high yield certificate of deposits
(CDs), and even no-penalty for early withdrawal. In addition, some accounts
can be opened with no minimum deposits and carry no minimum balance or
service fees.
3. Services
Direct banks typically have more robust websites that offer a comprehensive
set of features that may not be found on the websites of traditional banks. These
include functional budgeting and forecasting tools, financial planning
capabilities, investment analysis tools, loan calculators and equity trading
platforms. In addition, they offer free online bill payments, online tax
forms and tax preparation.
4. Mobility
Internet banking also includes mobile capabilities. New applications are

continually being created to expand and improve this capability or smart-
phones and other mobile devices.
5. Transfers
Accounts can be automatically funded from a traditional bank account via

electronic transfer. Most direct banks offer unlimited transfers at no cost,
including those destined for outside financial institutions. They will also accept
direct deposits and withdrawals that the customer authorizes such as payroll
deposits and automatic bill payment.
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6. Ease of use
Online accounts are easy to set up and require no more information than a
traditional bank account. Many offer the option of inputting the customer's data
online or downloading the forms and mailing them in. If the customer runs into
a problem, he has the option of calling or e-mailing the bank directly.
7. Environment friendly
Internet banking is also environmentally friendly. Electronic transmissions

require no paper, reduce vehicle trace and are virtually pollution-free. They also
eliminate the need for buildings and once equipment.
8. Time saving and money
When you visit banks, you will discover that most banks branches are always
engaged with one activity and customers have to wait for a long time before
attended to. This is a waste of time and energy. Luckily, some banking
transactions can be handled at home or in office or anywhere that is convenient
for the customers. In other words, customers do not need to wait for a long time
in a long queue or go to their respective banks branch to carry out their banking
business. Online banking therefore helps can help customers to save time and
cost of travelling.
9. Easy and efficient
As long as they adhere to the simple steps to be followed by login in their

information and clicking the right button, customers can able to check their
accounts and know what their balance is, transfer funds and also carry out other
valuable transactions. The timely check can help customers’ overdraft charges
and also to know if the transactions they made was successful and completed.
Hence, banking online helps customers to manage their account more easily
and conveniently.
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10. On time Gain and efficiency
Online banking systems also provide the customers a timely updates about
both their existing and new products and services, banking news and other vital
information that the customers need to know or be updated with. Therefore
customers can benefit some relative information at the appropriate time for
them to make quick and right decisions.
11. Profitability
Fewer banking building will be maintained as a result of online banking and

fewer employers will be involved there is a much lower overhead with online
banks. The saving they get as a result of this process allows them to give
greater interest rates on savings account and lower lending rates and service
charge.
12. Cost effective
Internet banking cost less, this is because there are only few buildings to
maintain and salaries paid to employees will be reduced as well. Since they
have more to safe now and this allows them to increase their interest rate on
savings account and lower lending rate and charges Easier To Catch
Fraudulent Activities Since you have the opportunity of viewing your account
details at anytime, it is easier to know if any fraudulent activities have gone
through your account before much damage is done. Once you log into your
account, you will see immediately whether there is anything wrong when you
check your deposits and debits. If you do not make any transaction and you see
any strange details in your account, you will see it write away and make
necessary alarm to the financial institution while the internet offers
miscellaneous advantages and opportunities, it also presents various security
risks. Having this in mind, banks take wide measures to protect the information
transmitted and processed when banking online. This comprises ensuring
confidential data sent over the internet cannot be accessed on
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modified by unauthorized third party. “But banks don’t normally have influence
of the systems used by the customers. The choice is entirely up to them. More
over a system connected that is a pc connected to the internet for example will
usually be used for a number of other applications as well. The systems used
by the online banking customers are therefore exposed to risks beyond the
banks control”. For this reason, the bankers cannot be liable for them. Berlin,
(2007).
Some Dangers Faced When Using the Internet. Berlin, (2007) Third party
gaining access to information transmitted or getting information under false
pretenses, this can be done with the aid of the following: Virus and warms:
Programmers that are sent over the internet that can damage your pc when
they replicate.
THE DISADVANTAGES OF INTERNET BANKING:
Internet banking seems like an obvious choice to leave the hassles of traditional
money management behind in exchange for it. However, there are potential
problems associated with banking over the internet of which customers may not
be aware. Consumers need to weigh the advantages as well as the
disadvantages of internet banking before signing up. Some of the
disadvantages of internet banking include:
1 .Technology and Service Interruptions
Anytime we use computers or internet service, we are at the mercy of the

system's stability and efficiency. Your ability to access accounts online will
naturally be affected if your internet service is running slowly or completely out
for a period of time. Similarly, if the bank's servers go down or are temporarily
unavailable due to scheduled site maintenance, you won't be able to gain online
or mobile access to your banking information.
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2. Security and Identity Theft Concerns
In general, online banking sites and mobile apps are designed to be secure and
banks are continually putting updated security protocols in place. However, no
system is completely foolproof and accounts can be hacked, resulting in identity
theft via stolen login credentials. So while you can use mobile or online banking
with general confidence, be careful to avoid using networks that are not secure
and be careful to change passwords and protect your login information.
3. Limitations on Deposits
Daily or monthly mobile deposit limitations may make it difficult for individuals,
but especially businesses to make large deposits online. Once you have
reached your designated limit, you'll need to trek to a branch to deposit money.
Also, not all types of checks are easily read by computer scanning software.
For example, business checks that are handwritten and have a black line on
the reverse side to make a carbon record in an account register may be kicked
out of the online deposit system, requiring an on-site deposit.
4. Convenient but Not Always Faster
While it may take very little time to deposit a check via a bank's mobile app, you
still need to wait for access to your money. Online banking provides
convenience in terms of the amount of time saved in travel or waiting in line at
a branch location, but all deposits are reviewed and funds are released for
access according to bank policy, which may take up to three business days
depending on the amount deposited.
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5. Lack of Personal Banker Relationship
For the most part you may be able to handle your general banking needs by
yourself. Yet when problems arise if you don't have a personal relationship with
a banker, it might be more difficult to get your issues resolved. While online
banking sites have customer service departments, you often need to work your
way through a phone tree and wait on hold before speaking with someone who
has no knowledge of your needs or banking history. In contrast, a local banker
is motivated to serve their customers and strengthen their personal
relationships.
6. A Limited Scope of Services
Although you can do quite a bit with an online bank account, such as make
deposits, check balances and pay bills, there are limitations to the kinds of
services you can access. You may be able to make an initial application for
opening a new account or applying for a loan or mortgage, but in most cases
you will need to visit a branch to sign forms and show identity documentation.
Similarly, even though you can transfer money to a checking account or debit
card in order to make purchases, if you need cash, you'll have to visit a branch
office or a nearby ATM.
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7. Potential to Overspend
The ability to check account balances in the spur of the moment could
potentially cause some people to overspend the limits of their checking
accounts. Without a careful look at your check book or record of uncleared debit
transactions, the account balance may not accurately reflect the true amount
you have available. Overdrafts and fees might occur if you don't keep close tabs
on all your transactions.
8. Transaction issues
Sometimes a face-to-face meeting is required to complete complex

transactions and address complicated problems. A traditional bank can host
meetings and call in experts to solve a specific issue. Moreover, international
transactions may be more difficult (or impossible) with some direct banks. If a
customer deposits cash on a regular basis, a traditional bank with a drive-
through window may be more practical and efficient.
9. Service issues
Some direct banks may not offer all the comprehensive financial services such
as insurance and brokerage accounts that traditional banks offer. Traditional
banks sometimes offer special services to loyal customers such as preferred
rates and investment advice at no extra charge. In addition, routine services
such as notarization and bank signature guaranteed are not available online.
These services are required for many financial and legal transactions.
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10. Security
Direct banks are subject to the same laws and regulations as traditional banks
and accounts are protected by the FDIC. Sophisticated encryption software is
designed to protect your account information but no system is perfect. Accounts
may be subject to phishing, hacker attacks, malware and other unauthorized
activity. Most banks now make scanned copies of cleared checks available
online which helps to avoid and identify check fraud. It enables verification that
all checks are signed by the customer and that dollar or euro amounts have not
been changed. The timely discovery of discrepancies can be reported and
investigated immediately.
11. Connectivity
Another issue is that sometimes it becomes difficult to note whether your

transaction was successful or not. It may be due to the loss of net connectivity
in between, or due to a slow connection, or the bank’s server is down.
DIFFERENT TYPES OF INTERNET BANKING:
1. CORE BANKING SOLUTION or CBS:
Core Banking is a banking service provided by a group of networked bank

branches where customers may access their bank account and perform basic
transactions from any of the member branch once. Core banking is often
associated with retail banking and many banks treat the retail customers as
their core banking customers. Businesses are usually managed via the
Corporate banking division of the institution. Core banking covers basic
depositing and lending of money.
Normal Core Banking functions will include transaction accounts, loans,
mortgages and payments. Banks make these services available across multiple
channels like ATMs, Internet banking, mobile banking and branches.
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The core banking services rely heavily on computer and network technology to
allow a bank to centralize its record keeping and allow access from any location.
It has been the development of banking software that has allowed core banking
solutions to be developed.
2. ATM BANKING:
An ATM is an electronic telecommunications device that enables customers of

financial institution to perform Financial transaction, such as cash withdrawals,
deposits, transfer funds, or obtaining account information, at any time and
without the need for direct interaction with bank staff.
Deposits – Cash and check deposits can be made at most BBVA Compass
ATMs.
Withdraw Funds – The cash you need when you need it.
Transfer funds – Move funds between checking accounts and savings linked
to your debit
Account Management that are card.
Check Balance – View your account balance before you make a withdrawal.
Mini Statement – Receive a print out of your transaction history and account
balances.*
·Customizable
Fast Cash – Set standard ATM withdrawal amounts.
Receipt Options – Set whether or not you will receive a receipt when you
make transactions.
Preferred Language – Choose between English or Spanish.
a) ATM Advantages
❖ 24-hour access to cash

You can withdraw up to Rs.10, 000 /- per day on your ATM Card. The fast
cash option saves your time by providing the cash in denominations of Rs.
500/-
❖ Balance inquiry
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Your updated balance will appear on the screen and will also be printed on
the transaction slip.
❖ Mini-statement request
Get details of the last 9 transactions on your account with the mini-
statement, along with your balance.
❖ Cheque book request
Send us a request for a cheque book or account statement it will arrive at
your doorstep.
❖ Funds transfer
Transfer money from one of your accounts to another. It‘s easy, select the
account from which you want to transfer, then indicate the amount and the
account to which you want it transferred. Both accounts must be linked to
your ATM card and customer ID. A maximum of 5 saving and 5 Current
accounts can be linked.
❖ PIN change
Your can conveniently charge your (PIN) given at the time of opening your
account) whenever you wish. Stay totally in control and ensure complete
security for your ATM Card.
❖ Bill Pay
Pay your cellular, telephone and electricity bills using your ATM Card.
3. DIGITAL WALLET:
Nowadays, we find ourselves carrying cold hard cash less and less because
you can just as easily make your purchase with payment cards, and track your
spending online. Plus, it’s more secure than carrying $350 to buy the latest iPad
(MINI).
Certain payment or loyalty cards also let you earn rewards or entries to
contests, but they do add up. They make your wallet unnecessarily thick and
heavy. Perhaps it is time to swap the system again; this time, for something that
you have always been carrying around: your smartphone
Digital wallets can help take you there. They are smartphone apps that hold
your payment and loyalty card information. Google Wallet and Apple’s
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Passbook are two of the more popular ones we often hear about, but if they are
not your fancy, there are plenty of other
digital wallets that carry perks and benefits that you may prefer.
a) Google Wallet:
Instead of tapping your credit card on the NFC machine at the checkout counter,
all you have to do is wave your smartphone or tap it on the machine to make
your payments. It’ll be able to identify the credit card information linked on your
Google account.
For this to work, Google Wallet requires Near Field Communication (NFC)
technology
available, which unfortunately is only available on certain smartphones and
tablets.
You link your debit or credit card to your Google account and you can leave
your wallet at home – but at the moment, it only works with phones and credit
cards from the US and only in the US. Currently, it supports 20+ merchants on
the ground and online, promising more merchants to come.
b) Apple’s Passbook:
Apple’s Passbook was introduced in IOS 6 and relies on scanning 2D barcodes

to help you manage your movie, concert and airline tickets as well as loyalty
cards and coupons for selected merchants.
The result: you get location and time- based notifications when you’re near a
cafe where you can use your loyalty card or when your airline, movie or concert
ticket is nearing its due date.
You add passes through apps that support Passbook (link opens iTunes). So
instead of bringing your grocery coupons and stack of loyalty cards wherever
you go, you can store it in Passbook. Unlike Google Wallet, you cannot use
your debit or credit card for purchases in-store, however you can use Bill
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Guard to view your bank balance and other related information on your iPhone.
c) DIGITAL CASH:
Digital Cash acts much like real cash, except that it’s not on paper. Money in
your bank account is converted to a digital code. This digital code may then be
stored on a microchip, a pocket card (like a smart card), or on the hard drive of
your computer.
The concept of privacy is the driving force behind digital cash. The user of digital
cash is assured an anonymous transaction by any vendor who accepts it. Your
special bank account code can be used over the internet or at any participating
merchant to purchase an item. Everybody involved in the transaction, from the
bank to the user to the vendor, agree to recognize the worth of the transaction,
and thus create this new form or exchange.
d) KISOK BANKING:
This is the latest development on the remote baking front, also known
as 'Touch-screen' banking. A kiosk is a self- service banking terminal that can
be operated with both credit & debit cards. The Debit/credit card can be swiped
at against the card reader at the kiosk and account accessed post entering the
ATM PIN. Currently, very few banks like Citibank offer this facility to their
customers at select ATM center’s across the country.
Unlike an ATM, which is primarily used for cash transactions like withdrawals,
deposits, etc., a kiosk is primarily used for non-cash transactions like cheque
book request, printing bank account statements, funds transfer etc. The number
of transactions a particular location is expected to be able to support is key here
along with the types of transactions required. An ATM and a Kiosk can both
easily perform the same non cash and non-deposit transactions however the
real differentiators come down to how much time/ input the transaction takes
(Financial Kiosks have full keyboards and document
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Printers, ATMs generally don`t) and queuing considerations (at an ATM, most
people just want to get their cash and go).
e) NEFT:
National Electronic Funds Transfer (NEFT) NEFT is electronic funds transfer

system, which facilitates transfer of funds to other bank accounts in over 63000
bank branches across the country. This is a simple, secure, safe, fastest and
cost effective way to transfer funds especially for Retail remittances.
❖ FEATURES & BENEFITS
Customers can remit any amount using NEFT Customer intending to remit
money through NEFT has to furnish the following particulars:
• IFSC (Indian Financial System Code) of the beneficiary Bank/Branch
• Full account number of the beneficiary
• Name of the beneficiary.
The facility is also available through online mode for all internet banking
and mobile banking customers.
For corporate customers, bulk upload facility is also available at branches.
❖ TIMINGS
Customers can use this facility between 8 AM and 7 PM on all weekdays and
between 8 AM and 1 PM on Saturday. There are twelve hourly settlements
between 8 AM and 7 PM on all weekdays and six hourly settlements between
8 AM and 1 PM on Saturdays.
The money will be credited to the beneficiary’s account on the same day or at
the most next day in case the message is sent during the last batch of
settlement. Union Bank offers NEFT facility to its customers through all its
branches.
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❖ CHARGES
Rs.5/ per transaction if the transaction amount is less than Rs. 1 lakh Rs. 25/-
per transaction if the transaction amount is more than Rs. 1 lakh
NOTE: Charges are waived for customers availing services at our branches in
North Eastern States
Real Time Gross Settlement (RTGS) is an electronic form of funds transfer

where the transmission takes place on a real time basis.
In India, transfer of funds with RTGS is done for high value transactions, the
minimum amount being Rs 2 lakh. The beneficiary account receives the funds
transferred, on a real time basis. The main difference between RTGS and
National Electronic Funds Transfer (NEFT) is that while transfer via NEFT takes
place in batches (with settlements and transactions being netted off), in the
case of RTGS, the transactions are executed individually and on gross basis.
The customer initiating the funds transfer through RTGS has to have the Indian
Financial System Code (IFSC) of the beneficiary's bank, along with the name
of the beneficiary, account number and name of the bank. The bank branches,
both at the initiating and receiving end, have to be RTGS- enabled for the
transaction to be processed. Customers with Internet banking accounts can do
RTGS transactions on their own.
Using IMPS, a relatively newer service, users can transfer money immediately
from one account to the other account, within the same bank or accounts across
other banks. Similar to NEFT, there is no minimum amount for transactions, but
the maximum* amount possible is Rs 5 lakhs. Users can carry out Person to
Person (P2P), Person to Account (P2A) and Person to Merchant (P2M)
transactions from their mobile, Internet or ATM. One of the advantages of IMPS
transaction is that it is available 24X7 and even on holidays. This can be
payments for utility bills, mobile or DTH recharge, credit card bills, grocery bills,
travel ticketing, online shopping and even educational institutes fee payments
through this channel.
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4. MOBILE BANKING:
Mobile banking is the act of doing financial transactions on a mobile device (cell
phone, tablet, etc.). This activity can be as simple as a bank sending fraud or
usage activity to a client’s cell phone or as complex as a client paying bills or
sending money abroad. Advantages to mobile banking include the ability to
bank anywhere and at any time. Disadvantages include security concerns and
a limited range of capabilities when compared to banking in person or on a
computer.
Telephone banking is relatively new Electronic Banking Product. However it is
fastly becoming one of the most popular products. Customer can perform a
number of transactions from the convenience of their own home or once; in fact
from anywhere they have access to phone. Customers can do following:-
• Check balances and statement information
• Transfer funds from one account to another
• Pay certain bills
• Order statements or cheque books
• Demand draft request.
❖ SMART CARD/STORE VALUE CARD:
A smart card, typically a type of chip card, is a plastic card that contains an
embedded computer chip–either a memory or micro-processor type– that
stores and transacts data. This data is usually associated with either value,
information, or
both and is stored and processed within the card's chip. The card data is
transacted via a reader that is part of a computing system. Systems that are
enhanced with smart cards are in use today throughout several key
applications, including healthcare, banking, entertainment, and transportation.
All applications can benefit from the added features and security that smart
cards provide. According to Euro smart, worldwide smart card shipments will
grow 10% in 2010 to 5.455 billion cards. Markets that have been
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Traditionally served by other machine readable card technologies, such as
barcode and magnetic stripe, are converting to smart cards as the calculated
return on investment is revisited by each card issuer year after year.
❖ Account information
Provides summary of all bank accounts. Allow transaction tracking which

enables retrieval of transaction details based on cheque number, transaction
amount, and date. Provide account statement and transaction reports used on
user-defined criteria. Customers can even download and print the statement of
accounts.
E-Cheque ( Online Fund Transfer)
Customer can transfer :Transfer funds between accounts, even if they are in
different branches‘ cities Customer can also transfer funds to any person having
an account with the same bank anytime, anywhere, using third party funds
transfer option.
Bill Payment Service
Banks Bill Pay is the easiest way to manage bills. A/c holder can pay their
regular monthly bills
i.e. telephone, electricity, mobile phone, insurance etc. at anytime, anywhere
for free. Saves time
and effort. Make bill payments at customer‘s convenience form their home or
once let’s a/c
holders check their hill amount before it is debited form their account. No debits
to account without their knowledge. No more missed deadlines, no more loss
of interest – a/c holders can schedule their bills in advance, avoid missing the
bill deadlines as well as earn extra interest on their money. Track payment
history – all payments to a biller are stored automatically for future reference.
No queuing up at collection centers or writing cheque anymore! Just a few clicks
and customers account will be debited for the exact amount they ask.
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5. E-TICKETING:
An electronic ticket (commonly abbreviated as e-ticket) is a digital ticket. The

term is
most commonly associated with airline issued tickets. Electronic ticketing for
urban or rail public transport is usually referred to as travel card or transit pass.
It is also used in
ticketing in the entertainment industry.
An electronic ticket system is a more ancient method of ticket entry, processing
and marketing for companies in the railways, flight and other transport and
entertainment industries.
On 1 June 2008, the industry moved to 100% electronic ticketing and the paper
ticket became a thing of the past. Apart from substantial cost savings for the
industry of up to US$3bilion per year, ET is also more convenient for
passengers who no longer have to worry about losing tickets and can make
changes to itineraries more easily.
United Airlines was the first airline to issue electronic tickets, back in 1994. A
decade later however, only 20% of all airline tickets were electronic. The
industry was missing out on an opportunity to save costs and make travel for
passengers easier. In June 2004, IATA set an industry target of 100% ET in
four years. At the time, many believed this was an unrealistic goal. Evolving
standards, uncertainty about the return on investment and skepticism about the
customer acceptance of paper in parts of the world were some of the reasons
why e-ticketing hadn’t taken off.
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6. DEMAT SERVICE:
Demat is commonly used abbreviation of Dematerialization which is a process

whereby securities like share, debentures are converted from the material
(paper documents) unto electronic data and stored in the computer of an
electronic Depository.
A depository is a security banks, where dematerialized physical securities are
held in custody, and form where they can be traded. This facilitates faster,
risk-free and low cost settlement.
❖ Share Trading
In share trading a customer can buy and sell securities online without stepping
into a broker‘s once. Once the share are dematerialized then the trading can be
done from home or once. As Demat a/c are directly linked to the customer‘s
bank a/c, so there is no need to write cheque for the payments or to fill up the
slips to deposit the cheque. Amount for the purchase and sale of securities is
automatically debited or credited to their bank a/c. it also brings the same
convenience while investing in Mutual funds also Hassle free and Paperless.
In India, shares and securities are held electronically in a dematerialized (or
"Demat") account, instead of the investor taking physical possession of
certificates. A Dematerialized account is opened by the investor while
registering with an investment broker (or sub-broker). The Dematerialized
account number is quoted for all transactions to enable electronic settlements
of trades to take place. Every shareholder will have a Dematerialized account
for the purpose of transacting shares.
Access to the Dematerialized account requires an internet password and a
transaction password. Transfers or purchases of securities can then be
initiated. Purchases and sales of securities on the Dematerialized account are
automatically made once transactions are confirmed and completed.
Dematerialization of Shares?
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Demat stands for dematerialisation. Dematerialisation is the process of
converting physical financial instruments such as share certificates, mutual fund
investments, and bonds into electronic form. An Investor who needs to
dematerialise his shares needs to open a demat account with Depository
Participant. This physical shares are then surrendered by the investor and in
return he gets electronic shares in his demat account.
Demat account is similar to a bank account. When you receive your bank
statement, you will see 2 columns – deposits and withdrawals of money and
balance money in the account on the last day of the statement. Similarly, a
demat statement will show the investments you have bought, sold and the
balance investments held on the last day of the statement.
Now you may wonder – where do I open a demat account? That’s easy. When
you want to buy equity shares, you approach your bank or an equity share
broker. The broker will open the demat account for you along with the brokerage
account. When you buy and sell securities, the broker will have the securities
deposited into or moved out of the linked demat account. You will also need to
link your bank account to the brokerage account for transfer of funds when you
buy and sell shares, and for payment of related costs.
If the broker is a depository participant (who is authorized to open and maintain
demat accounts), the broker will open your demat account and maintain it in-
house. However, if the broker is not a DP, your demat account will be opened
with a DP the brokerage house is associated with.
7. E-TAX FILING:
You can pay your taxes online through E-Tax. This facility enables you to pay
TDS, Income Tax, Indirect Tax, Corporation Tax, Wealth Tax, Estate duty and
Fringe benefit Tax. The process of submitting tax returns over the Internet,
using tax preparation software that has been pre-approved by the relevant tax
authority, such as the IRS or the Canada Revenue Agency. E-filing has
manifold benefits; the taxpayer can file a tax return from the comfort of home,
at any convenient time, once the tax agency begins accepting returns.
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8. ONLINE DEMAND DRAFT:
A demand draft is a negotiable instrument similar to a bill of exchange. A bank

issues a demand draft to a client (drawer), directing another bank (drawee) or
one of its own branches to pay a certain sum to the specified party (payee). A
demand draft can also be compared to a cheque. However, demand drafts are
difficult to countermand. Demand drafts can only be made payable to a
specified party, also known as pay to order. But, cheques can also be made
payable to the bearer. Demand drafts are orders of payment by a bank to
another bank, whereas cheques are orders of payment from an account holder.
9. Communicative Online Banking:
Communicative online banking allows for some communication between the

patron and bank. However, this is typically limited to fundamental interactions
such as account inquiries, new account updates, loan or mortgage applications,
contact information updates and balances. Communicative online banking may
connect with the bank's main computer systems.
10. TELE BANKING:
By dialing the given Telebanking number through a landline or a mobile from

anywhere, the customer can access his account and by following the user-
friendly menu, entire banking can be done through Interactive Voice Response
(IVR) system.
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11. 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.
12. DEBIT CARD:
Debit cards are also known as check cards. Debit cards look like credit cards
or ATM (automated teller machine) cards, but operate like cash or a personal
check. Debit cards are different from credit cards. While a credit card is a way
to “pay later,” a debit card is a way to “pay now.” When you use a debit card,
your money is quickly deducted from your checking or savings account.
13. E-CHEQUE:
An e-Cheque is the electronic version or representation of paper cheque.
OTHER FORMS OF ELECTRONIC BANKING
• Direct Deposit
• Electronic Bill Payment
• Electronic Check Conversion
• Cash Value Stored, Etc.
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RULES AND REGULATIONS REGARDING INTERNET BANKING GUIDED BY
RBI:
1. Technology and Security Standards:
A) RBI should have appropriate Information Security policy duly approved

by the Board of Directors. There should be clear segregation of duties
between the Information Technology (IT) Division and the Information
Security (IS) Division. The Information Technology Division will actually
implement the computer systems. There should be a separate
Information Security Occur dealing exclusively with Information Systems
security. Further, an Information Systems Auditor will audit the
Information Systems.
B) The bank should designate a Network and Database Administrator with

clearly defined roles per the IS Audit policy duly approved by their Board.
C) Logical access controls to data, Systems, Application software, utilities,

telecommunication lines, libraries, System software, etc. should be in
place.
D) The bank should ensure that there is no direct connection between the
Internet and the bank's system.
E) .All unnecessary services on the Application Server such as File

Transfer Protocol (FTP), Telnet should be disabled. The Application
Server should be isolated from the e-mail server.
F) .The Information Security occur and the Information System auditor

should conduct periodic penetration tests of the system, which should
include:
1. Attempting to guess passwords using password-cracking tools.
2. Search for back door traps in the programs.
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3. Attempt to overload the System using Distributed Denial of Service
attacks.
G) Physical access controls should be strictly enforced. Physical security

should cover all the Information Systems and sites where they are
housed, both against internal and external threats.
H) The bank should have proper infrastructure and schedules for backing
up data.
1. Legal Issues:
a) Banks may provide Internet Banking facility to a customer only at his/her

option based on specific written or authenticated electronic requisition
along with a positive acknowledgement.
b) Considering the prevailing legal position, there is an obligation on the

part of banks not only to establish the identity but also to make enquiries
about the integrity and reputation of the customer opting for internet
banking. Therefore, even though request for opening an account may be
accepted over Internet, accounts should be opened only after verification
of the identity of the customer and adherence to KYC guidelines.
2. Authentication practices for internet banking:
➢ Single Factor Authentication:
An authentication mechanism that utilizes any one of the factors is called

single factor authentication. This is the basic authentication method. (For
example, a User id and password comes under this category).
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➢ Two Factor Authentication:
An authentication mechanism that utilizes a combination of two factors

i.e. (User knows, User possesses). This method is used by various
banks for authentication for online banking.
E.g. User using a password as the first factor (User knows) and a One-
Time Password (OTP) as the second factor (User possesses) to perform
say, a funds transfer transaction.
➢ Multi Factor Authentication:
An authentication mechanism where two or more factors are used in

which one of the factors is necessarily pertaining to ‘the user is’. For
example, a large value transaction authorized in a bank by using a
combination of the person’s user id, a smart card and his biometric
authentication factor).
3. Implementation of authentication and other security measures for

internet banking:
a) An effective authentication method should take into consideration

customer acceptance, ease of use, reliable performance, scalability to
accommodate growth, and interoperability with other systems.
b) An authenticated session, together with its encryption protocol, should

remain intact throughout the interaction with the customer.
c) Changes in mobile phone number may be done through request from a

branch only.
d) Virtual keyboard should be implemented.
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e) Customers should be advised to adopt various good security
precautions and practices in protecting their personal computer and to
avoid conducting financial transactions from public or internet café
computers.
f) Risk-based transaction monitoring or surveillance process needs to be

considered as an adjunct.
g) An online session would need to be automatically terminated after a

fixed period of time unless the customer is re-authenticated for the
existing session to be maintained.
h) As an integral part of the two factor authentication architecture, banks

should also implement appropriate measures to minimize exposure to a
middleman attack which is more commonly known as a man-in-the-
middle attack (MITM), man-in-the browser (MITB) attack or man-in- the
application attack.
I. Specific OTPs for adding new payees: Each new payee should be
authorized by the customer based on an OTP from a second channel
which also shows payee details or the customer’s handwritten
signature from a manual procedure which is verified by the bank.
II. Individual OTPs for value transactions (payments and fund
transfers): Each value transaction or an approved list of value
transactions above a certain monetary threshold determined by the
customer should require a new OTP.
III. OTP time window: It is recommended that banks should not allow
the OTP time window to exceed 100 seconds on either side of the
server time since the smaller the time window, the lower the risk of
OTP misuse.
IV. SSL server certificate warning: Internet banking customers should
be made aware of and shown how to react to SSL or EV- SSL
certificate warn
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CHAPTER 3. REVIEW OF LITERATURE
Rakesh H M & Ramya T J (2014)
In their research paper titled “A Study on Factors Influencing Consumer

Adoption of Internet Banking in India” tried to examine the factors that influence
internet banking adoption. Using PLS, a model is successfully proved and it is
found that internet banking is influenced by its perceived reliability, Perceived
ease of use and Perceived usefulness. In the marketing process of internet
banking services marketing expert should emphasize these benefits its
adoption provides and awareness can also be improved to attract consumers’
attention to internet banking services.
Shaza W. Ezzi (April 2014)
In their research paper titled “A Theoretical Model for Internet Banking: Beyond
Perceived Usefulness and Ease of Use” tried to inquired different types of
electronic banking like ATM’s, telephone banking, and electronic funds transfer,
Internet banking like has evolved from consumers’ needs to have superior
access to banking services clear of most banks teller-staffed, normal operating
hours. Additionally, Internet banking has grown swiftly from the recent and the
span increases in e-commerce. Internet banking (IB) continues to govern the
landscape of electronic banking as consumers continue to use IB to complete
schedule banking transactions in addition to conducting on-line sales and
purchasing. This study presents a theoretical model considered to help
researchers and practitioners better understand the acceptance and adoption
of Internet Banking. The proposed model maybe particularly useful in
developing nations where consumers are loath to use Internet Banking even
when the services are available. However, a review of several studies that have
investigated consumers’ acceptance of Internet banking services from a
multiplicity of perspectives have not reached a clear consensus of the factors
that contribute to overall consumer acceptance and
38
Adoption. The paper concludes with discussions of the managerial implications
and avenues for future research.
kartikeya Bolar (2014)
In their research paper “End-user Acceptance of Technology Interface In

Transaction Based Environment “This paper presents Creators and investors
of technology need information about the customers’ assessment of their
technology interface based on the features and various quality dimensions to
make strategic decisions in improving technology interfaces and compete on
various quality dimensions. The research study identifies the technology
interface dimensions as perceived by the end-users in a transaction based
environment (viz. Internet banking) in India, using exploratory factor analysis.
The influence of these dimensions on the utility of technology interface and
hence the usage is examined by Structural Equation Modeling. The moderating
role of user demographics and technology comfort is also tested. Managerial
implications are discussed.
Dorra Gherib (2014)
In their research paper titled “Adoption and diffusion of internet banking: case
of Tunisian banking sector “tried to observe the embracing of Internet banking
in the Tunisian banking industry. The aim is to make out factors that accelerate
or slow down the implementation process. The literature review enables
identifying a set of variables: organizational, individual and structural. The
research methodology used within this study is the case study. Five case
studies in banking sector were executed.
The sample is shaped by banks that adopted the Internet Baking as a
modernization. The analysis allowed the willpower of the related dimensions of
the aforesaid variables (competition, perceived benefits, and organizational
compatibility). Indeed, this research has exposed some variables that hamper
the implementation of technological innovations.
39
Amruth Raj Nippatlapalli (2013)
In his research paper “A Study on Customer Satisfaction of Commercial Banks:

Case Study on State Bank of India”. This paper present Customer satisfaction,
a term frequently used in marketing, is a measure of how products and services
supplied by a company meet or surpass customer expectation. Customer
satisfaction is defined as "the number of customers, or percentage of total
customers, whose reported experience with a firm, its products, or its services
(ratings) exceeds specified satisfaction goals. “Banking in India originated in
the last decades of the 18th century. The first banks were The General Bank of
India, NOW which started in 1786, and Bank of Hindustan, which started in
1790; both are now defunct. The oldest bank in existence in India is the State
Bank of India, which originated in the Bank of Calcutta in June 1806, which
almost immediately became the Bank of Bengal. This was one of the three
presidency banks, the other two being the Bank of Bombay and the Bank of
Madras, all three of which were established under charters from the British East
India Company. For many years the Presidency banks acted as quasi-central
banks, as did their successors. The three banks merged in 1921 to form the
Imperial Bank of India.
Mr. Vijay Prakash Gupta & Dr. P. K. Agarwal (2013)
In their research paper “Comparative Study of Customer Satisfaction in Public

Sector and Private Sector Banks in India”. This paper gives with the introduction
of liberalization policy and RBI's easy norms several private and foreign banks
have entered in Indian banking sector which has given birth to cut throat
competition amongst banks for acquiring large customer base and market
share. Banks have to deal with many customers and render various types of
services to its customers and if the customers are not satisfied with the services
provided by the banks then they will defect which will impact economy as a
whole since banking system plays an important role in the economy of a
country, also it is very costly and difficult to recover a dissatisfied customer.
Since the competition has grown manifold in the recent
40
Times it has become a herculean task for organizations to build loyalty, the
reason being that the customer of today is spoilt for choice. It has become
imperative for both public and private sector banks to perform to the best of
their abilities to retain their customers by catering to their explicit as well as
implicit needs. Many a times it happens that the banks fail to satisfy their
customer which can cause huge losses for banks and there the need of this
study arises. The purpose of this research article is to examine the customer
satisfaction among group of customer towards the public sector& private sector
banking industries in India. Study is cross-sectional and descriptive in nature.
The researcher tries to makes an effort to clarify the Customer Service
satisfaction in Indian banking Sector. Descriptive research design is used for
this study, where the data is collected through the questionnaire. The
information is gathered from the different customers of the two banks, viz., PNB
and HDFC Bank located in the Meerut Region, Uttar Pradesh. Hundred bank
respondents from each bank were contacted personally in order to seek fair
and frank responses on quality of service in banks. The service quality model
developed by Zeithamal, Parsuraman and Berry (1988) has been used in the
present study. The analysis clearly shows that there exists wide perceptual
difference among Indian (public sector) banks regarding overall service quality
with their respective customers, when compared to Private sector banks.
Whereas the said perceptual difference in private banks is narrow.
Nabil Hussein Al-Fahim (2013)
In his research titled “An tentative Study of Factors distressing the Internet
Banking espousal: A Qualitative Study among Postgraduate Students” tried to
find out the factors that affect the internet banking espousal among
postgraduate’ students in International Islamic University Malaysia
(IIUM).Approach- Semi structured interviews with eight informant; four adopters
and four non-adopters on postgraduate’ students were conducted to explore
this issue. The results revealed that adopters andnon-adopters realized that
internet banking (IB) has quite a lot of benefits and amenities. However, non
adopters were concerned about some factors like trust, ease of
41
Use, awareness and security. The results also showed that adopters had
positive influence on use of online banking and they did not have problems with
these factors because they had sufficient knowledge and experience in using
online banking. The findings are important to enable bank Executives to have
a better understanding of clients’ perception to adopt internet banking. This will
help banks’ managers and owners formulate strategies that could significantly
affect IBA among their customers.
Anil Kumar and Manoj Kumar Dash (2013)
In their research paper “Constructing a Measurement in Service Quality for

Indian Banks Structural Equation Modeling Approach”...The aim of this paper
is to construct a measure in service quality for Indian banks and establishes a
causal relationship of service attributes performance with customer satisfaction.
The SERVQUAL model is used. The quantification of service quality led to the
attempt to construct an index. The index is constructed using Structural
Equation Modeling (SEM) and American Customer Satisfaction Index (ACSI)
as the underlying frameworks. The analysis is based on data of 200 bank
customers from the Delhi-NCR. An adapted ACSI is enhanced and improved to
accommodate two exogenous constructs. The results indicate that service
quality variables are important antecedents of customer satisfaction and
retention. These antecedents of service quality have a positive significantly
relationship with customer satisfaction. The study concludes with an analysis of
how different dimensions of service quality performance attribute impact on
customer satisfaction and retention. Such a framework should provide valuable
insights to the bank manager to identify key service performance indicators and
to design more effective and efficient marketing and management strategies to
satisfy their customer.
42
Shilpi Khandelwal (2013)
In his research titled on “E Banking: Factors of Adoption in India” This paper

present the last decade has witnessed a drastic change in the economic and
banking environment all over the world. With the economic and financial sector
reforms introduced in the country since early 1990s, the operating environment
for banks in India has also undergone a rapid change. Increasingly, more and
more people are switching to electronic platforms for executing financial
transactions. Internet banking has brought about a 360 degree change in the
entire banking industry. The wider usage of cell phone and internet certainly
seems to be playing a role in blurring physical boundaries, and unlocking a
whole new world of opportunities for banks in tapping newer customer
segments and in recording greater volume of transactions. For the banks,
technology has emerged as a strategic resource for achieve in higher efficiency,
control of operations, productivity and profitability. For customers, it is the
realization of their anywhere, anytime, anyway banking dream. This has
prompted the banks to embrace technology to meet the increasing customer
expectation and face the tough competition. This research paper is focused on
what are the drivers that drive consumers towards adoption of E banking. How
consumers have accepted internet banking and how to improve the usage rate
were the focus of research area in this study.
Donnelie K Muzividzi, Rangarirai Mbizi & Tinashe Mukwazhe (2013)
In their research paper “An Analysis of Factors That Influence Internet Banking
Adoption among Intellectuals: Case of Chinhoyi University of Technology“. This
paper investigate the adoption on internet banking has remained sluggish
despite the efforts by banks to promote the technology. The purpose of the
research project was to identify the factors that affect the adoption of internet
banking in a bid to construct ways to salvage he situation. The research focused
on intellectuals who better understand technology than the general public. Data
was collected using questionnaires and interviews from the population of 5000
students and academic staff at
43
Chinhoyi University of Technology. A sample of 450 students and staff were
selected from the population. The research identified various factors that
impose barriers and enhance adoption of internet banking. Chief among these
were compromised security of transactions and marketing exposure. It also
unearthed the impact of demographic on internet banking adoption. Two
hypotheses were tested, the first one which was meant to determine if there
exist any relationship between age and internet banking adoption. It was
concluded that there is a negative relationship between age and internet
banking adoption. The second hypothesis assumed an association between
internet banking and level of education. Education was deemed a prerequisite
in enhancing the smooth adoption of internet banking and hence one should
have a significant level of education to take up the technology. In waging a
protracted war against low levels of internet banking adoption the research
concluded banks should rather concentrate in promoting the product (internet
banking). Bank should also institute measures to guarantee the security of
transactions to internet bank users as this remains the stumbling block to many
potential customers.
Ankit Kesharwani & Gajulapally Radhakrishna (2013)
In their research paper “Drivers and Inhibitors of Internet Banking Adoption in

India”. This paper research on different banks is on condition that e-banking
services, as this would revolutionize their profits. Since internet banking in India
is still in its nascent stage, it is essential for e-banking institutions to enhance
reception and usage of internet as a banking channel by their customers. This
paper has reviewed the most of seminal studies in the area of diffusion of
innovation and makes an attempt to do an experimental research that looked
into the factors that drives and inhibits internet banking usage in India. An
investigative factor analysis followed by a positive factor analysis has been
applied on 362 internet banking users. Findings resulted in seven factors –
perceived benefit, hacking and fraud risk, performance risk, computer self-
efficacy, technology intricacy, social influence, and pricing concerns. The
results suggest that acceptance and usage of internet banking services can turn
into a fundamental concern for future research, as the
44
Drivers overcoming the inhibitors over time at an influencing rate. Moreover,
this study also compares the findings with extant diffusion of innovation
literature and identified several additional factors that can affect internet
banking adoption in India.
Ms. Fozia (2013)
The purpose of this paper is to determine the customer’s perception toward the
e-banking services. A total of number of customer taken for the study is
196. Analysis of variance technique is employed to study the significant
relationship between the occupation and customer perception of e-banking
services and significant relationship between the age and customer perception
of e-banking services. The result of the study clearly shows that different age
group of customer and different occupation group of customers have different
perception toward the e-banking services. The results also propose that
demographic factors impact significantly internet banking behavior, specifically,
occupation and age. reception regarding the e-banking services of public and
private banks it will help to the banker to understand the customers need in
better way.
Jayshree Chavan (2013)
In his research paper “Internet Banking- Benefits and challenges in an

Emerging Economy”. This study presents New Information technology has
taken imperative place in the future expansion of financial services, especially
banking sector conversion are affected more than any other financial provider
groups. Increased use of mobile services and use of internet as a new division
channel for banking transactions and international trading requires more
concentration towards e-banking security against deceptive activities. The
development and the increasing progress that is being experienced in the
Information and Communication Technology have brought about a lot of
changes in almost all facets of life. In the Banking Industry, it has been in the
45
Form of online banking, which is now replacing the traditional banking practice.
Online banking has a lot of benefits which add value to customers’ satisfaction
in terms of better quality of service offerings and at the same time enable the
banks gain more competitive gain over other competitors. This paper discusses
some challenges in an emerging economy.
Yitbarek Takele & Zeleke Sira (2013)
In their research paper titled “ Analysis Of Factors Influencing Customers’

Intention To The Adoption Of E-Banking Service Channels In Bahir Dar City:
An Integration of Tam, Tab And PR “ tried to search factors that sway
customers’ intention to adopt e-banking service channels in Bahir Dar city. A
theoretical framework was developed by integrating six variables from theory of
premeditated behavior, technology reception model and previous studies. The
findings discovered that attitude subjective norm, supposed behavioral control,
supposed usefulness and perceived ease of use and supposed risk were
significant in affecting users’ intention to use e-banking service channels. The
construct perceived behavioral control emerged as a overriding factor followed
by attitudes and professed usefulness in predicting an individual’s intention to
adopt e-banking service channels. Finally, attitude is jointly predicted by
professed behavioral control, apparent usefulness, seeming ease of use and
superficial risk perceived ease of use contributed more for the dissimilarity in
attitude. Bahram Meihami, Zeinab Varmaghani & Hussein Meihami (2013) In
their research paper “The Effect of Using Electronic Banking on Profitability of
Bank“ This paper deals with Electronic banking is the use of electronic means
to transfer funds directly from one account to another, rather than by check or
cash. Through reducing bank costs, electronic banking can increase bank
incomes. In this research the role of electronic banking (i.e. automated teller
machines, bank card, internet bank, telephone bank, point of sale) in increasing
bank incomes is studied. The statistical society of this research is the private
banks staff of Kurdistan province. Based on Cochran formula, the research
sample size was estimated
147. The research data was gathered through financial statements, a
questionnaire contains 42 questions, and interview. The gathered data was
46
Analyzed through descriptive statistics (i.e. diagrams and frequency distribution
tables) and inferential statistics (i.e. ANOVA test, T test, multiple regressions,
Scheffe's test, T Thutong). The research findings shows there is a positive and
strong relationship between electronic banking and its five components (i.e.
automated teller machines, bank card, internet bank, telephone bank, point of
sale) with bank incomes. According to the research findings, the correlation
between independent variables (five components of electronic banking) and
dependent variable (bank charges) is 0/817 and 0/63 of the dependent variable
changes are explained by independent variables. Finally, the research findings
shows automated teller machine (ATM) has the maximum influence on bank
incomes (Beta=0.407) and telephone bank has the minimum influence on bank
incomes (Beta=0.103).
Rifat O. Shannak (2013)
In their research paper titled “KEY ISSUES IN E-BANKING STRENGTHS AND

WEAKNESSES: THE CASE OF TWO JORDANIAN BANKS “tried to
scrutinize uses mixed method. Research about e-banking has been conducted
from different angles on different topics by a number of researchers. The paper
aims to scrutinize the current status of Jordan’s e- banking industry, make out
its strengths and weaknesses, and use the findings in formulating future
recommendations to make a donation to knowledge in the chosen area. The
choice of the topic was informed by previous studies and experiences of the
researcher and his former students from different countries but currently
focuses on the e-banking industry in Jordan. The methodology used to achieve
the research objectives included carrying out interviews with two local banking
executives, a direct opinion poll for banking customers, and the review of the
extant literature. The research commenced by formulating four hypothesis that
address the positive impact of e-banking for both the banks and their patrons.
However, an inadequate size sample was selected due to research boundaries.
The point of reference of the paper turned out to be explanatory and in the
direction of being a case study within the Jordanian context. This exploratory
research therefore, focused on three main magnitude of e-banking in
Jordan namely;
47
Infrastructure readiness, behavioral influences, and the regulatory coverage.
The findings indicated that while the infrastructure is advanced in comparison
to some of the other regional examples, it was still below the Western
standards. It also has been established that the Jordanian e-banking is still not
trusted enough by the individual clients. Finally, the legal or regulatory coverage
in Jordan was found to be not fully satisfactory yet, although not very unusual
from what exists in some of the most sophisticated country examples that it was
benchmarked with. Some important recommendations to enhance the e-
banking industry are presented, such as; focusing more on the mobile-
functionalities and services for being more advanced than internet services in
Jordan, enhancing the broader e-commerce regulations that are weakening the
more advanced local e-banking regulations, and launching local awareness and
familiarization campaigns which could be undertaken by Jordanian banks.
Ms. Nisha Malik & Mr. Chand Prakash Saini (Jul 2013)
In their research titled on “Private Sector Banks Service Quality and Customer
Satisfaction” A Empirical Study two Private Sector Banks”. This research paper
is an effort to examine the relationship between service quality and customer
satisfaction of two private sectors bank of India. Service quality has been
described as a form of attitude that results from the comparison of prospect with
recital (Cronin and Taylor, 1992, Parasuraman et al, 1985). Gronroos 1982)
argued that customers, while evaluating the quality of service, compare the
service they expect with perceptions of the services they actually receive. Since
financial products offered by various bankare similar by nature then why any
particular bank of product of any bank is preferred than others a matter of
interest for academician as well as banking industry. They may be difference
between customers of public and private sector banks, but why are two banks
of one sector being preferred differently by customers. This research study is
an effort to find out the answer of these questions.
48
Vijay M. Kumbhar (2011)
In his research paper “Factors Affecting the Customer satisfaction In E-

Banking: Some evidences Form Indian Banks”. This study evaluates major
factors (i.e. service quality, brand perception and perceived value) affecting on
customers’ satisfaction in e-banking service settings. This study also evaluates
influence of service quality on brand perception, perceived value and
satisfaction in e-banking. Required data was collected through customers’
survey. For conducting customers’ survey liker scale based questionnaire was
developed after review of literature and discussions with bank managers as well
as experts in customer service and marketing. Collected data was analyzed
using principle component (PCA) using SPSS 19.0. A result indicates that,
Perceived Value, Brand Perception, Cost Effectiveness ,Easy to Use,
Convenience, Problem Handling, Security/Assurance and Responsiveness are
important factors in customers satisfaction in e-banking it explains 48.30 per
cent of variance. Contact Facilities, System Availability, Fulfillment, Efficiency
and Compensation are comparatively less important because these dimensions
explain 21.70 percent of variance in customers’ satisfaction.
Security/Assurance, Responsiveness, Easy to Use, Cost Effectiveness and
Compensation are predictors of brand perception in e- banking and Fulfillment,
Efficiency, Security/Assurance, Responsiveness, Convenience, Cost
Effectiveness, Problem Handling and Compensation are predictors of
perceived value in e-banking.
Pooja Malhotra & Balwinder SINGH (2009)
In their research paper “The Impact of Internet Banking on Bank Performance

and Risk: The Indian Experience”. The paper describes the current state of
Internet banking in India and discusses its implications for the Indian banking
industry. Particularly, it seeks to examine the impact of Internet banking on
banks’ performance and risk. Using information drawn from the survey of 85
scheduled commercial bank’s websites, during the period of June 2007, the
results show that nearly 57 percent of the Indian commercial banks are
providing transactional Internet banking services. The univariate analysis
49
indicates that Internet banks are larger banks and have efficiency ratios and
profitability as compared to non-Internet banks. Internet banks rely more heavily
on core deposits for funding than non-Internet banks do. However, the multiple
regression results reveal that the profitability and offering of Internet banking
does not have any significant association, on the other hand, Internet banking
has a significant and negative association with risk profile of the banks.
50
CHAPTER 4. ANALYSIS AND FINDINGS
Q. 1 Age
Table no. 4.1 Analysis of responses of question no.1

Sr No. Particulars No. of respondents percentage
1 18-25 62 56.4 %
2 25-35 25 22.7%
3 35-45 11 10%
4 45 and above 12 10.9%
Total 110 100%
Figure no 4.1 pie chart of question no.1
INTERPRETATION
The following data indicates that the more no. Of respondents are from the
age group of 18-25 which is 56.4% as compared to the other age groups.
51
Q .2 Do you have an internet bank account?
Table no 4.2 Analysis of responses of question no.2

Sr. no. Particulars No. of respondents percentage
1 Yes 88 70.9%
2 No 32 29.1%
TOTAL 110 100%
Figure no 4.2 pie chart of question 2
INPRETATION
From the following respondent it indicates that 70.9 % of have internet bank
account where 29.1% of respondent do not have internet bank account.
52
Q.3 While opening up of account, were you aware of e- banking services
provided by the bank?
Table no 4.3 Analysis of responses of question 3

Sr No. Particulars No. of respondents Percentage
1 Yes 56 50.9%
2 No 54 49.1%
Total 110 100%
Figure no. 4.3 pie chart of question 3
INTERPRETATION
Following data indicates that 50.9% of respondent we’re aware of e-banking
services provided by the bank where as 49.1% of respondent we’re not aware
of it.
53
Q.4 Do you think manual banking is more conventional than internet
banking?
Table no.4.4 Analysis of responses of question 4
Sr. No. Particulars No. of respondents Percentage
1 Yes 32 29.1%
2 No 48 43.6%
3 Maybe 30 27.3%
Total 110 100%
Figure no. 4.4 pie chart of question 4
INTERPRETATION
The following data indicates that 29.1% of respondent prefer manual banking
over Internet-Banking where as 43.6 % of respondent prefer Internet-Banking
over manual banking
54
Q.5 Do you think banks can improve their relationship with customers
through the use of internet?
Table no. 4.5 Analysis of responses of question 5

Sr No. Particulars No. of Percentage
respondents
1 Yes 43 39.1%
2 No 34 30.9%
3 Maybe 33 30%
Total 110 100%
Figure no.4.5 pie chart of question 5
INTERPRETATION
The following data indicates that out of all only 39.1% of respondent believes
that the bank can improve their relationship with customers through the use of
Internet.
55
Q. 6 Do you trust the security of online banking?

1 Yes 39 35.5%
2 No 37 33.6%
3 Maybe 34 30.9%
Total 110 100%
Figure no. 4.6 Pie chart of question 6
INTERPRETATION
The following data indicates out of all respondent only 35.5% of respondent
trust the security of online banking.
56
Q.7 Do you think that the charges of internet banking are fair?

Sr. No. Particulars No of respondents Percentage
1 Yes 31 28.4%
2 No 48 44%
3 May be 30 27.4%
Total 109 100%
Figure no.4.7 Pie chart of question 7
INTERPRETATION
The following data indicates out all respondent only 28.4% of respondent
believes that the charges of Internet banking are fair.
57
Q.8 Which one is the main reason for you to use internet banking?

1 Better information 26 23.6%
2 Simplification of process 34 30.9%
3 24 hour service 35 31.1%
4 Limited time available 15 13.6%
Total 110 100%
58
INTERPRETATION
The following data indicates the main reason for use internet banking:
a) 23.6% of respondent use internet banking because they provide
information.
b) 30.9% of respondent use internet banking because of simplification of
process.
c) 31.1% of respondent use internet banking because they provide 24 hour
service.
d) 13.6% of respondent use internet banking because of limited time
availability.
59
Q.9 Do you think that the transaction through the internet is secure?
Table no. 4. 9 Analysis of responses of question 9
1 Yes 47 42.7%
2 No 35 31.8%
3 Maybe 28 25.5%
Total 110 100%
INTERPRETATION
believes that the transaction through the internet is secured.
60
Q. 10 Do you think that human contact is important for banking
relation?
1 Yes 46 42.2%
2 No 34 31.2%
3 Maybe 29 26.6%
Total 109 100%
Figure no.4. 10 Pie chart of question 10
INTERPRETATION
believes that the human contact is important for banking relationship.
61
Q.11 Are you satisfied with internet banking?
Sr No. Particulars No. of respondents Percentage
1 Yes 43 40.2%
2 No 36 33.6%
3 Maybe 28 26.2%
Total 107 100%
INTERPRETATION
The following data indicates out of all respondent only 40.2% are satisfied
with the usage of internet banking.
62
Q.12 Which online banking service do you use?

Sr. Particulars No. of Percentage
No. respondents
1 Seeking products and rate 16 14.5%
information
2 Calculate loan payment 30 27.3%
information
3 Download loan application 24 21.8%
4 Download personal bank 16 14.5%
transaction activity
5 Check balance online 24 21.8%
Total 110 100%
63
INTERPRETATION
The following data indicates the which internet banking services customers
use:
a) 27.3% of respondent use internet banking for calculate loan payment.
b) 21.8% of respondent use internet banking for Download loan application
c) 21.8% of respondent use internet banking for check balance online.
d) 14.5% of respondent use internet banking for Download personal bank
transaction activity.
e) 14.5% of respondent use internet banking for seeking products and rate
information.
64
Q.13 Tick which bank you prefer for internet banking?
1 ICICI 23 21.3%
2 SBI 45 41.7%
3 Bank of Baroda 22 20.4%
4 HDFC 18 16.7%
Total 108 100%
INTERPRETATION
The following data indicates that out of all 41.7 % respondent prefer SBI (state
Bank of India) over other bank.
65
Q.14 Why this bank?

Sr. no. Particulars No. of respondents Percentage
1 Service is good 55 50%
2 They provide security 37 33.6%
3 Cheaper service 18 16.4%

charges
Total 110 100%
INTERPRETATION
The following data indicates that the half of the respondent which is 50% uses
internet banking system of SBI because of the good service.
66
Q.15 Degree of confidence in Internet banking?

1 Little 11 10.2 %
2 Some 28 25.9%
3 High 41 38%
4 Very high 28 25.9%
Total 108 100%
INTERPRETATION
The following data indicates that 38% of respondent showing high confidence
in internet banking system.
67
FINDINGS
The present findings are from the interpretation of the results regarding analysis
of internet banking on the behavior of a customer whether they prefer internet
banking or not , customers, psychological barriers, and usefulness and benefits
of Internet banking services are enumerated here:
1) In the above interpretation the more no. Of respondent are from the age
group of 18- 25 which is around 56.4%
2) There are highest no. of customers who use internet banking system
which is 70.9% among all the 110 responses.
3) The awareness about the internet banking services among the
customers is 50.9% which means there are majority of the customers
who knows the services of Internet banking system.
4) The preference of Internet banking is more than the manual banking
which is 43.6% .There are majority of customers thinks that the internet
banking system is better than manual banking system.
5) There are the majority of the customer which is 39.1% who thinks that
the bank can improve their relationship with the customers through the
use of Internet banking system.
6) Among 110 respondents the no. Of customers who thinks that the
internet banking is secured is 35.5% which is less because of the
disadvantages of the internet banking for e.g. frauds. Among all the
respondents the customers are not fully sure about the security of
internet banking facility.
7) Among all respondents the no. customers who thinks that the charges of
internet banking is high as compared to the manual banking, among all
the respondents there are 44% of customers thinks that the charges of
Internet is high as compared to manual banking.
8) The customers who use the facility of Internet banking things that it very
convenient too use among all the respondents the majority of customers
use facility of Internet banking firstly because of its 24 hour services
which is 31.8% and secondly the simplification of the process which is
30.9%.
68
9) In the above interpretation the majority of respondents who agrees that
the transaction through the internet is secured is 42.7% and there are
the customers who thinks that the transaction through the internet is not
that much of secured which is 31.8%.
10) Among all respondents there are more no. of customers who thinks that
the human contact is important in banking relationship which is 42.2%
and there are customers who thinks that it is not important is 31.2%.
11) Among all respondents the no. of customers who are satisfied with the
facility of internet banking is 40.2% and among all the respondents only
33.6% customers are not satisfied with the facility.
12) In the above interpretation it is found that the users of Internet banking
facility use it for various reasons.
a) The majority respondents who use it for calculate loan payment
information is 27.3%.
b) The majority of respondents who use it for check balance online
is 21.8%.
c) The majority of respondents who use it for Download loan
application is also 21.8%.
d) The majority of respondents who use it for Download personal
bank transaction activity14.5%.
e) The majority of respondents who use it for seeking products
and rate information is 14.5%.
13) The bank which is more preferable is SBI (state Bank of India) which is
41.7%.
14) The respondents who chose the SBI is because of the service is good
which is 50%. The facility provided by the SBI of internet banking is good.
15) In the above interpretation it found the respondents or the users of
internet banking are showing the high confidence in the internet banking
system which is 38% high and 25.9% very high.
In the above analysis of primary data it is stated that in now days the
majority of people who uses the facility of banking system they prefer
internet banking system than manual banking systems.
69
CHAPTER 5. CONCLUSION
The strategy of a bank is the provide to value added services and products to
the consumer, utilizing the internet extensively.
The main aim of internet banking is to making transaction through online
process and make it more beneficial for customers .internet banking is certainly
here to stay as internet banking is the necessity to every bank.
Mobile and the smart phone devices has given the banking industry the new
platform connect with a customer anytime anywhere to their money and needs
is a must have services that has become a unstoppable necessity . The world
wide communication is leading to new generation of a strong banking
relationships. The internet banking represent the tremendous opportunity to
India.
The major driving force behind the rapid spared of internet banking is its
acceptance of an extremely cost effective delivery channel .But on the flipside
the internet banking is have their own risk. The main risk which mainly occurred
relating to internet banking is the security problems. It’s a fact that making
transaction online process a must bigger risk than making transaction in the
physical branch this is due to hacking problem and the identity theft addition to
these risk technical difficulties could also arises.
In this study I found that the bond of SBI with its customer is good because they
are the most preferable banks which are providing internet banking services.
It is concluded that the internet banking plays an vital role in today's India it is
not only one of the most leading and successful facility but it is an also an
essential for the growth of the any developing country.
70
5.1 SUGGESTIONS
The following suggestions are for enhancing internet banking system of

banks for the customers:
1) Banks should take necessary steps to create awareness of internet

banking system among customers.
2) The Bank’s should take care of their security of the internet banking
system, the banks should take steps to secure the transaction of the
customers while they are using internet banking system.
3) The charges of the internet banking or e- banking are more compared
to manual banking. There are 33.6% of customers who do not approach
internet banking due to risk in online payment hence banks should
reduce the charges for the convenience of the customers, the charges
of internet banking system should be fair.
4) The banks should improve their relationship with the customers through
the help of internet banking system they should provide better
information about the enquiries and queries which made by the
customers.
5) The banks should simplify the process of internet banking system for
the convenience of the customers.
6) The banks should take care of the satisfaction of the customers by
providing them better services of internet banking facility. The banks
should make sure that the customers are using all the facility of Internet
banking system which are provided by the bank.
7) The banks should gain the customers confidence By providing them the
better services and make sure that the transaction which are made by
the customers are fully secured.
8) The banks who provide the 24 hour services of internet banking facility
they should avail it for 24 hours if they can’t provide it so , they can lose
their customers confidence in the bank.
The banks should provide 24×7 services of Internet banking to their
customers it will help and attract more customers.
71
APPENDIX
QUESTIONNAIRE: ANALYSIS OF INTERNET BANKING
Q1. Age
a) 18-25
b) 25-35
c) 35-45
d) 45 and above
Q2. Do you have an Internet bank account?

a) Yes
b) No
Q3. While opening up of account, were you aware of e- banking services

provided by the bank?
a) Yes
b) No
Q4. Do you think manual banking is more conventional than Internet banking?
a) Yes
b) No
c) Maybe
Q5. Do you think banks can improve their relationship with customers through
the use of Internet?
a) Yes
b) No
c) Maybe
72
Q6. Do you trust the security of online banking?
a) Yes
b) No
c) Maybe
Q7. Do you think that the charges of Internet banking are fair?
a) Yes
b) No
c) Maybe
Q8. Which one is the main reason for you to use internet banking?
a) Better information
b) Simplification of process
c) 24 hour services
d) Limited time available
Q9. Do you think that the transaction through the internet is secure?
a) Yes
b) No
c) Maybe
Q10. Do you think that human contact is important for banking relation?
a) Yes
b) No
c) Maybe
Q11. Are you satisfied with internet banking?

a) Yes
b) No
c) Maybe
73
Q12. Which online banking services do you use?
a) Seeking products and rate information
b) Calculate loan payment information
c) Download loan application
d) Download personal bank transaction activity
e) Check balance online
Q13. Tick which bank you prefer for internet banking?

a) ICICI
b) SBI
c) Bank of Baroda
d) HDFC
Q14. Why this bank?

a) Service is good
b) They provide security
c) Cheaper service charges
Q15. Degree of confidence in internet banking?

a) little
b) some
c) High
d) very high
74
CHAPTER 6. BIBLIOGRAPHY
REFERENCES:
➢ Rakesh H M and ramya TJ ( 2014) “ study on factors influencing

consumer adoption of internet banking in in India”.
➢ Shaza .W. Ezzi (April 2014) “ A theoretical model for internet banking;
Beyond perceived usefulness and ease of use”.
➢ Kartikeya bolar (2014) End user acceptance of technology interface in

transaction based environment “.
➢ Dorra Gherib (2014) “ adoption and diffusion of internet banking”.
➢ Amruth Raj Nippatlapalli (2013) “ comparative study of customer

satisfaction in public sector and private sector”.
WEBSITES:
➢ www. shodhganga.com
➢ https://www.academia.edu/21483546/E-banking_
➢ http://shodhganga.inflibnet.ac.in.com.
➢ https://en.wikipedia.org/wiki/Online_banking
➢ http://shodhganga.inflibnet.ac.in/bitstream/10603/117794/9/09_chapter
2.pdf
➢ https://www.ukessays.com/essays/finance/literature-review-about-e-
banking-in-India-finance-essay.
➢ www. researchgate.net
75

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A PROJECT REPORT ON

AN ANALYSIS OF INTERNET BANKING

JATIN ASHOK JAIN PAWAN

MCOM IN ADVANCE ACCOUNTANCY

UNDER THE GUIDANCE OF

VIDYALANKAR SCHOOL OF INFORMATION

Mr/MRS. JATIN JAIN OF MCOM IN ADVANCE ACCOUNTANCY

PROJECT COURSE EXTERNAL PRINCIPAL

I her by acknowledge all those who directly or indirectly helped me in drafting

Vidyalankar School of Information Technology

(Affiliated to University of Mumbai)

Vidyalankar Marg, Wadala (E),

I JATIN ASHOK JAIN, student of MCOM IN ADVANCE ACCOUTING SEMESTER III,

Signature of the Student

JATIN ASHOK JAIN

This project is based on analysis of internet banking system. Internet banking

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Ch.1 Introduction to the Study

1.2 Need of the Study 2

1.3 Literature Review 2

1.4 Objective of the Study 3

1.5 Methodology & Sources of data 4

1.6 Scope of the Study 4

1.7 Limitations of the Study 5

1.8 Project Outline 5

Ch.2 Theoretical Development 6-36

Ch.3 Review of Literature 37-49

Ch.4 Data Analysis & Findings 50-68

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❖ Online banking (or internet banking or E-banking) allows customers of a

❖ Online banking is the practice of making bank transactions or paying bills

❖ Online banking is the practice of making bank transactions or paying bills

1.3 LITERATURE REVIEW

Rakesh H M & Ramya T J (2014)

In their research paper titled “A Study on Factors Influencing Consumer

Shaza W. Ezzi (April 2014)

1.4 OBJECTIVES OF THE STUDY

The main objectives of the study are:

1.6 SCOPE OF THE STUDY

The major limitations of the study are:

a) Difficulty in getting responses from the respondents in online

1.8 Project outline

HOW ONLINE BANKING EVOLVED INTO A MAINSTREAM FINANCIAL

❖ First Online Banking Services in the United States:

According to "Banking and Finance on the Internet," edited by Mary J.

❖ First Online Banking Services in the U.K:

Banks and the World Wide Web:

❖ First Online Banking in India:

Competition is yet another important rationale with increasing competitive

• To help bank perspective to save costs.

ADVANTAGES OF INTERNET BANKING:

Internet banking also includes mobile capabilities. New applications are

Accounts can be automatically funded from a traditional bank account via

Internet banking is also environmentally friendly. Electronic transmissions

8. Time saving and money

9. Easy and efficient

As long as they adhere to the simple steps to be followed by login in their

Fewer banking building will be maintained as a result of online banking and

12. Cost effective

THE DISADVANTAGES OF INTERNET BANKING:

1 .Technology and Service Interruptions

Anytime we use computers or internet service, we are at the mercy of the