A STUDY OF CONSUMER PERCEPTION ON

BANKING SERVICES IN RURAL AND URBAN AREAS

SUBMITTED IN PARTIAL FULFILLMENT OF THE

REQUIREMENT FOR THE AWARD OF THE DEGREE OF
BACHLOR OF BUSINESS ADMINSTRATION
(SESSION 2019-2020)

Submitted to:- Submitted by:-

Department of Professional Studies Deepika Uppal

Pupin: 17045097

POST GRADUATE GOVERNMENT COLLEGE

SECTOR-11, CHANDIGARH
 DECLARATION
I hereby declare that this project report entitled “CONSUMER PERCEPTION ON
BANKING SERVICES IN RURAL AND URBAN AREAS” is a bonafide work done by
me for the award of the degree of Bachelor of Business Administration submitted to PGGC 11.
The result embodied in this project have not been submitted to any other University or
Institution for the award of any Degree or Certificate or published any time before.

PLACE: CHANDIGARH Deepika Uppal

DATE: PUPIN NO- 17045097

 CERTIFICATE
This is to certify that the project work entitled ‘CONSUMER PERCEPTION ON
BANKING SERVICES IN RURAL AND URBAN AREAS’ being submitted by Deepika
Uppal for the award of degree of Bachelor of Business Administration has been carried out
by her under my supervision and guidance.

Dr. Neelima

Assistant Professor

PGGC-11, Chandigarh
 ACKNOWLEDGEMENT
A project without a proper guidance is like a ship without a navigator. A successful story is
incomplete without paying the tribute to those who inspired it. This is one certainly not
exception. On the very outset of this study, I would like to extend my sincere and heartfelt
obligation towards all the personages who have helped me in this endeavor without their active
guidance, help, cooperation & encouragement. I would not have made headway in the project.
I am ineffably indebted to Dr. Neelima for conscientious guidance and encouragement to
accomplish this assignment. I am extremely thankful and pay my gratitude to all BBA
department teacher valuable guidance and support on completion of this project in this
presently. I also acknowledge with a deep sense of reverence, my gratitude towards my parents
and the members of my family, who has always supported me morally as well as economically.

At last but not least gratitude goes to all my friends who directly or indirectly help me to
complete this project report. Any omission in this brief acknowledgement does not mean lack
of gratitude.

Thank You

Deepika Uppal
 TABLE OF CONTENTS

S.NO. PARTICULARS PAGES

1. INTRODUCTION 6-17

2.
REVIEW OF LITERATURE 18-21

3. RESEARCH METHODOLOGY 22-25

DATA ANALYSIS AND

4. 26-43
INTERPRETATION

FINDINGS , CONCLUSION AND

5. 44-47
SUGGESTIONS

BIBLIOGRAPHY

ANNEXURE
 CHAPTER 1
INTRODUCTION
1.1 Introduction to Consumer Perception
The Business Dictionary defines consumer perception as a “marketing concept that
encompasses a customer’s impression, awareness or consciousness about a company or its
offerings. Typically, customer perception is affected by advertising, reviews, public relations,
social media, personal experiences, and other channels.”

The truth is that everything affects customer perception, from the way you position your
product vertically and horizontally on a shelf, to the colors and shapes you use in creating your
logo. Even things outside of your control, which may seem innocuous, such as the time of the
day when your customer interacts with your brand - even this will affect consumer perception.
Your customers might have a positive perception of you if they come across your products and
your niche during a certain time of the day,but they may hold a negative perception at another
time of day. This dual perception might not have anything to do with you; some people are not
morning people, and the worst time to try to sell 'not-morning' people is in the morning hours,
especially before they’ve had breakfast and coffee. You would do better to catch them right
after dinner, when they’re relaxed. Other people simply can’t concentrate on anything in the
evening, and would rather that you had caught their attention in the morning. Others are
somewhere in between, preferring that you reach them during the main part of the day. So, as
you can see, something as harmless as calling at the wrong hour or showing a potential
customer the right color at the wrong time and at the wrong place, might reward you with a
significant number of customers in at one time of day but a disappointing result at a different
time of day.

7
1.1.1 Consumer Perceptions & the Affecting Factors
1. Pricing of a product or service

Pricing of a product has a key effect on consumer perception. Though a large majority of
consumers appreciate and favor a low or reasonably priced item, there are also cross sections
of sophisticated and skeptical consumers who look down up a product that is considerably low
priced than the other available alternatives.

Many such sophisticated consumers tag the product as cheap and not fit for use though the
product may be of the same good quality. Hence pricing of a product or service should form
the basis of a larger marketing plan. By doing so, even low priced products can be marketed as
favorable ones with good quality and at a better price.

2. Quality of a product

The importance of the quality of a product or service from the perception of a consumer can
never be undermined. Any feature of the product such as its use, durability and how reliable
the product is in satisfying or disappointing the consumer can be described as its quality.

Marketing to a great extent helps in influencing the consumer’s perception about the quality of
product but even word of mouth communication about quality of a product is equally effective
and travels fast.

Though marketing plays a greater role in influencing the consumer’s opinion about quality of
a product, it is the consumer’s inherent opinion from the use of a specific product or service
that will determine the awareness about quality.

3. Branding and Packaging of a Product

First impression is the best impression very aptly applies to consumer perception of a product
especially at the time purchase. How a product is attractively packaged to exhibit the display
quality by the manufacturer determines the perception of the product. Even branding messages
such as reliable, long lasting, tough are of great help in promoting the product perception.

4. History & Reputation

History and reputation of a company and its products and services plays an equally important
role in the consumer perception. Age old businesses with strong reputation and history are
always preferred by consumers whereas new products are always tried with caution and based
on public opinion and reviews.

Online as well as offline reputation of a company and products and services largely influence
the consumer perception. Any negative reviews and opinions online or by word of mouth can
strongly affect the overall performance of any business. If any product has not performed well
in the past or if any company has been alleged for any unscrupulous activity will strongly
affects its performance for long period of time.

8
To sum it up all, it is mandatory for business to conduct market research and understand
consumer perception to better position themselves in the competition and drive increased
customers and sales. With the help of a reliable market research services provider such as
iResearch Services, businesses can very well keep a track of their business performance by
monitoring influence of consumer perception.

1.1.2 Using Customer Perception to Your Advantage

So to get customer perception right, you should look into what turns your consumers on, so to
speak, and then to use it to your advantage when you want to attract them. If you wish to attract
high-end customers, then make a play on such things as quality, cleanliness and hygiene,
lighting, packaging, and general details in the way you present your products and services.
Segment your customers into the different consumer groups they fall into, and use these groups
to figure what is important to each group and what to show to different categories of customers.

When you make an effort to improve consumer perception of your products, your bottom line
will quickly reflect your hard-won effort. You will also make your customers and your
community feel as if they are part of your family - and there is no better recipe for brand loyalty
than family.

1.2 Banking Introduction

Banking is defined as the business activity of accepting and safeguarding money owned by
other individuals and entities, and then lending out this money in order to conduct economic
activities such as making profit or simply covering operating expenses.

A bank is a financial institution that provides banking and other financial services to their
customers. A bank is generally understood as an institution which provides fundamental
banking services such as accepting deposits and providing loans. There are also nonbanking
9
institutions that provide certain banking services without meeting the legal definition of a bank.
Banks are a subset of the financial services industry. A banking system also referred as a system
provided by the bank which offers cash management services for customers, reporting the
transactions of their accounts and portfolios, throughout the day. The banking system in India
should not only be hassle free but it should be able to meet the new challenges posed by the
technology and any other external and internal factors. For the past three decades, India’s
banking system has several outstanding achievements to its credit.

The Banks are the main participants of the financial system in India. The Banking sector offers
several facilities and opportunities to their customers. All the banks safeguards the money and
valuables and provide loans, credit, and payment services, such as checking accounts, money
orders, and cashier’s cheque. The banks also offer investment and insurance products. As a
variety of models for cooperation and integration among finance industries have emerged,
some of the traditional distinctions between banks, insurance companies, and securities firms
have diminished. In spite of these changes, banks continue to maintain and perform their
primary role is accepting deposits and lending funds from these deposits.

1.3 Classification of banks

Banks are classified into these categories –

• Schedule Bank
• Non-Schedule Bank

10
1.3.1 Schedule Bank
Scheduled banks are covered under the 2nd Schedule of the Reserve Bank of India Act, 1934.
To qualify as a scheduled bank, the bank should conform to the following conditions:

• A bank that has a paid-up capital of Rs. 5 Lakh and above qualifies for the schedule
bank category
• A bank requires to satisfy the central bank that its affairs are not carried out in a way
that causes harm to the interest of the depositors
• A bank should be a corporation rather than a sole-proprietorship or partnership firm

Commercial bank-
Commercial Banks are regulated under the Banking Regulation Act, 1949 and their business
model is designed to make profit. Their primary function is to accept deposits and grant loans
to the general public, corporate and government. Commercial banks can be divided into-

• Public Sector Banks

• Private Sector Banks
• Foreign Banks
• Regional Rural Banks

a) Public Sector Banks

These are the nationalized banks and account for more than 75 per cent of the total banking
business in the country. Majority of stakes in these banks are held by the government. In terms
of volume, SBI is the largest public sector bank in India and after its merger with its 7 associate
banks it has got a position among the top 50 banks of the world.

These are the nationalized banks in the country namely below:

1) Bank of Baroda
a) Vijaya Bank
b) Dena Bank
2) Bank of India
3) Bank of Maharashtra
4) Canara Bank
a) Syndicate Bank
5) Central Bank of India
6) Indian Bank
a) Allahabad Bank
7) Indian Overseas Bank
8) Punjab and Sind Bank
9) Punjab National Bank
a) Oriental Bank of Commerce
11
 b) United Bank of India
10) State Bank of India
a) State Bank of Bikaner and Jaipur
b) State Bank of Hyderabad
c) State Bank of Indore
d) State Bank of Mysore
e) State Bank of Patiala
f) State Bank of Travancore
g) Bhartiya Mahila Bank
11) UCO Bank
12) Union Bank of India
a) Andhra Bank
b) Cooperative Bank

b) Private Sector Banks

These include banks in which major stake or equity is held by private shareholders. All the
banking rules and regulations laid down by the RBI will be applicable on private sector banks
as well. Given below is the list of private-sector banks in India-

1) Axis Bank
2) Bandhan Bank
3) CSB Bank
4) City Union Bank
5) DCB Bank
6) Dhanlaxmi Bank
7) Federal Bank
8) HDFC Bank
9) ICICI Bank
10) IndusInd Bank
11) IDFC FIRST Bank
12) Jammu & Kashmir Bank
13) Karnataka Bank
14) Karur Vysya Bank
15) Kotak Mahindra Bank
16) Lakshmi Vilas Bank
17) Nainital bank
18) RBL Bank
19) South Indian Bank
20) Tamilnad Mercantile Bank
21) YES Bank
22) IDBI Bank

12
c) Foreign Banks

A foreign bank is one that has its headquarters in a foreign country but operates in India as a
private entity. These banks are under the obligation to follow the regulations of its home
country as well as the country in which they are operating. Some of the foreign banks are:

1) AB Bank Ltd.
2) Sonali Bank Ltd.
3) HSBC Bank
4) Woori Bank
5) Citibank,etc.

d) Regional Rural Banks

These are also scheduled commercial banks but they are established with the main objective of
providing credit to weaker sections of the society like agricultural labourers, marginal farmers
and small enterprises. They usually operate at regional levels in different states of India and
may have branches in selected urban areas as well. Other important functions carried out by
RRBs include-

• Providing banking and financial services to rural and semi-urban areas

• Government operations like disbursement of wages of MGNREGA workers,
distribution of pensions, etc.
• Para-Banking facilities like debit cards, credit cards and locker facilities

1.3.2 Non- schedule Banks

Non-scheduled banks refer to the local area banks which are not listed in the Second Schedule
of Reserve Bank of India. Non-Scheduled Banks are also required to maintain the cash reserve
requirement, not with the RBI, but with them.

Cooperative Banks

Co-operative banks are the banks whose main objective is to provide financial assistance to
economically weaker sections of the society.

Such banks are registered under the Cooperative Societies Act.

a) State Co-operative Banks

A State Cooperative Bank is a federation of the central cooperative bank which acts as
custodian of the cooperative banking structure in the State.

b) District Co-operative Banks

These banks operate at the district level. They act as a link between primary credit societies
and state cooperative banks.

13
c) Other Co-operative Banks

Urban Co-operative Banks refer to the primary cooperative banks located in urban and semi-
urban areas. These banks essentially lent to small borrowers and businesses centered around
communities, localities work place groups.

1.4 Functions and Services of Banks

These are the basic functions of banks:

A. Primary Functions of Banks

The primary functions of a bank are also known as banking functions. They are the main
functions of a bank.

These primary functions of banks are explained below.

1. Accepting Deposits

The bank collects deposits from the public. These deposits can be of different types, such as :

a. Saving Deposits
b. Fixed Deposits
c. Current Deposits
d. Recurring Deposits

2. Granting of Loans and Advances

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

The types of bank loans and advances are :

14
 a. Overdraft
b. Cash Credits
c. Loans
d. Discounting of Bill of Exchange

B. Secondary Functions of Banks

The bank performs a number of secondary functions, also called as non-banking functions.

These important secondary functions of banks are explained below.

1. Agency Functions

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

a. Transfer of Funds
b. Collection of Cheques
c. Periodic Payments
d. Portfolio Management
e. Periodic Collections
f. Other Agency Functions

2. General Utility Functions

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

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

b. Locker Facility
c. Underwriting of Shares
d. Dealing in Foreign Exchange
e. Project Reports
f. Social Welfare Programmes
g. Other Utility Functions

1.5 Channels of Banking

Channel banking is a set of formats & channels made available by the bank to its customers so
that the customers can access the various services offered by the bank themselves without the
assistance of a bank officer using a variety of modes.

1.5.1 Mobile Banking

Mobile banking is the act of making 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

15
security concerns and a limited range of capabilities when compare to banking in person or on
a computer banking in person or on a computer.

1.5.2 Online Banking

Online banking refers to banking services where depositors can manage more aspects of their
accounts over the Internet, rather than visiting a branch or using the telephone. Online banking
typically is comprised of a secure connection to banking information through the depositor’s
home computer or another device.

1.5.3 ATM

An automated teller machine (ATM) is an electronic banking outlet that allows customers to
complete basic transactions without the aid of a branch representative or teller. Anyone with a
credit card or debit card can access most ATMs. Certain credit cards however, may have more
trouble. ATMs are convenient, allowing consumers to perform quick, self-serve transactions
from everyday banking like deposits and withdrawals to more complex transactions like bill
payments and transfers.

16
1.5.4 Branch Banking

Branch Banking is still an integral part of Indian banking system as most Indians still believe
in cash transactions and prefer to visit banks in person for routine banking operation. Bank
Branches are the face of the bank where customers can visit and talk to the officials for getting
better insight into new policies, investment schemes, other banking services etc. On top of it,
the personal touch in every service leaves a great impact on the minds of customers.

17
 CHAPTER-2
REVIEW OF LITERATURE
2.1 Review of Literature
A literature review is a description of the literature relevant to a particular field or topic. It gives
an overview of what has been said, who the key writers are, what are the prevailing theories
and hypotheses, what questions are being asked and what methods and methodologies are
appropriate and useful. As such, it is not in itself primary research, but rather it reports on other
findings.

S Mehta(2020) Banking is the life blood of any nation which is significant for the health and
prosperity of any economy. Indian economy follows indigenous banking from old times, which
is different from banking in modern times. Since the time of country’s independence
commercial banks under RBI have a vast range to function. The modern banks perform
multiple functions by offering various types of products and services to their customers with
the main aim of increasing profits and customer satisfaction. Innovation is a ever-changing
phenomenon that includes adoption of new technologies, products and services and methods.
Banking technology uses advanced computer algorithms in raveling the patterns of customer
behaviors by using the details of the customers which includes their demographic,
psychographic and transactional data. Nowadays, technology has become an important
resource to achieve high efficiency, control of operations, productivity and profits for Banks.

S Jha (2019) The research paper intends to understand the frequency of usage of Automated
Teller Machines (ATM) in urban and rural areas. For the development of financial sector and
economy, participation of urban as well as rural residents is necessary in the banking sector.
To increase the deposit base of banks and augmentation of credit creation in the economy,
tapping of saving potential of rural residents is essential. ATM services has the great capacity
to increase the participation of rural residents in banking sector and connecting them to
mainstream. The results of the study reveal that one third of rural respondents are not using
ATM at all and there is a need to increase the usage of ATM among non-users. It also reveals
the need for installation of ATM infrastructure in rural areas.

DA Vinayagamoorthy, M Genesan(2015) The core issues faced by banks today are on the
fronts of consumer’s service expectations, cutting operational costs and managing competition.
For this, banks are exploring new financial products and services options that would help them
to grow the existing consumers. And any new financial product or service that a bank offers
will be intrinsically related to technology. Only technology can help banks in meeting these
objectives. That‘s why information technology has just moved from being a business enabler
to being a business driver. Modern banking is no longer confined to the branches only. Now
days Indian consumers are being provided with multiple modes of accessing banking
transactions, including Tele-banking, mobile banking, Internet banking, PC banking and
banking through ATMs. Internet banking is one of the latest arrays in India. It has the core
features and functions designed to improve the consumer’s retention and adoption while
placing the utmost emphasis on system security. form simple account review to sophisticated
payment transfer and selfservice functionality, Internet banking provides the online experience
that distinguishes our financial institution from there competitors.

19
Bj Parmar, DB Ranpura (2013) Given that India has an extensive network of bank branches
in rural areas established by commercial banks, the main rationale for concern about the parallel
rural banking system is provided by its implications for financial inclusion. Within the Indian
financial sector, the role of the rural banks is important but not apparently pre-eminent. The
rural banking system is clearly more inclusive of low income families than those provided by
the commercial banks. Yet rural banks have, for a number of years, been regarded as the step-
child of the banking system in India. This paper discusses development of internet banking in
rural areas. The applications of internet banking of several rural consumers in rural areas are
investigated and examined. The research objective is to investigate the opportunity of using
internet banking in the new generation of rural area. Focusing on some emerging trends in rural
banking.

VC Sharma, SK Dhaundiyal (2012) Technology has been one of the most important factors
for the development of mankind. Banking industry is growing by leaps & bounds with the use
of technology in the form of ATMs, On-line banking, Telephone banking, Mobile banking,
Credit card, Investment & Insurance business etc. In the recent years the way to do banking
has changed. Most of the banks have been providing various services to customers instead of
core banking. The main objective of study to analyse the level of awareness in customers
towards the banking services in Urban areas of Uttarakhand. A total of 500 respondents were
selected and surveyed. A sample of 250 respondents selected from public sector banks as well
as the same sample was taken of 250 respondents from private sector banks equally. Out of
500 respondents, total 420 respondents are aware about the various services provided by banks.
Electronic and print media play major role to aware the banking customer. In present, study
almost 69% respondents aware by print & electronic media.

Fulbag Singh, Davinder Kaur (2011) Banking services are regarded as one of the important
services. Banks provide financial services to the customers. Due to the rising competition and
liberalization the banking industry has become the buyer's market. Banks need to create and
develop the services which can satisfy the consumer needs. Customer satisfaction is a very
important construct in today's market and it is directly influenced by service quality as per
earlier studies. Therefore, the present research work has been carried out to analyze the
customer perception of service quality in rural and urban bank branches and its impact on
customer satisfaction. The study identifies six service quality factors which influence customer
satisfaction regarding banking services and it is revealed by the analysis that satisfaction level
of rural customers is higher as compared to urban customers.

MS Khan, SS Mahapatra(2009) This study aims at evaluating the service quality of internet
banking (i-banking) services in India from customer's perspective. A structured questionnaire
containing 44 quality items is administered to various target groups. Seven quality dimensions,
viz. reliability, accessibility, user-friendliness, privacy/security, efficiency, responsiveness and
fulfilment, are identified based on principal component factor analysis. Demographic analysis
of data reveals that gender is hardly a bias for use and evaluation of service quality of i-banking
in most of the cases across various categories of customers. A valid mathematical model is
proposed to assess the overall service quality using regression analysis. The results show that
customers are satisfied with quality of service on four dimensions such as reliability,

20
accessibility, privacy/security, responsiveness and fulfilment, but least satisfied with the 'user-
friendliness' dimension. The empirical findings not only prioritise different parameters but also
provide guidelines to bankers to focus on the parameters on which they need to improve.

Naeem, H. Akram, A., & Saif, M. I. (2009). This comparative research was designed to
investigate the impact of service quality on customer satisfaction in the Pakistani banking
sector. Hypothesis developed for the study was higher level of service quality leads to higher
level of customer satisfaction. A sample of two hundred respondents, (one hundred from a
foreign bank and one hundred from a public sector / nationalized bank located in the twin cities
of Rawalpindi and Islamabad) was drawn on the basis of simple random sampling. Various
constructs of SERVQUAL model developed by Zeithaml and Bitner (1996) and five point
customer satisfaction tool developed by Taylor and Baker (1994) were adopted and used for
data collection. Data were analyzed through SPSS version 14. Results of the regression analysis
indicated that service quality was proved to be a strong predictor of customer satisfaction in
case of the foreign bank with the R2 value of 0.644 accepting research hypothesis and rejecting
null hypothesis as compared value R2 of 0.156 that does not support the research hypothesis in
case of public sector bank. The study concluded that service quality, if managed effectively,
can contribute significantly towards customer satisfaction.

MA Bhat (2005) In search of competitive advantage, business organizations are placing more
focus on service quality. Research has shown that high service quality contributes significantly
to profitability and productivity. In addition, knowledge of the costs and benefits of retaining
consumers relative to attracting new ones draws company's foremost attention to looking after
present customers, responding to their needs and problems and developing long term
relationships. Interest in the measurement of service quality is, thus, understandably high. An
attempt has been made in the present paper to study service quality in banks and its variation
across demographic variables. The study offers suggestions to make overall service quality in
banks more effective and efficient. The results of the study lead us to the conclusion that service
quality of foreign banks is comparatively much better than that of Indian banks and there are
service quality variations across demographic variables.

P Kangis, V Voukelatos(1997) Reports the findings of a survey among customers of private

and public sector banks in Greece on service quality perceptions and expectations. Finds that
quality expectations and evaluation of services received were marginally higher in the private
than in the public sector in most of the dimensions measured; the relative importance attached
to each quality attribute was, however, of a similar profile for the two sectors. The perception
of the profile of services received was, however, different between sectors, thus suggesting that
they did deliver a different quality of service. Discusses the implications for strategy since
sectoral differentiation in banking is becoming blurred as a result of increasing overlap between
services and competition from related and substitute industries. Identifies the distinctiveness of
what is perceived as a service on offer as essential ingredient to competitive positioning in
financial services.

21
 \

CHAPTER-3
RESEARCH METHODOLOGY
3.1 Research Methodology
Research is a process of investigation. An examination of a subject from different point of
view. It is not just a trip to the library to pick up a stack of materials,or picking the first five
hits from a computer search. Research is a hunt for the truth. A research method is a systematic
plan for conducting research. Sociologist draw on a variety of both qualitative and quantitative
research methods, including experiments, survey research, participant observation, and
secondary data. Quantitative methods aims to classify features, count them, and create
statistical models to test hypothesis and explain observation. Qualitative methods aim for a
complete, detailed description of observation, including the contexts of events and
circumstances. The content in it covers the research objectives, research scope, research design,
sample size, data collection and analysis, data presentation and limitation of the study.

3.2 Objectives of study

The main objectives of doing this study are as follow:

i) To study the consumer perception towards banking services in rural and urban areas.
ii) To study about the primary purpose for which they visit bank.
iii) To find out the major problems faced by them.
iv) To analyze the satisfaction level of the customer with reference to banks.

3.3 Scope
In this survey report, students, working people, housewives and retired persons are covered.
Researcher have been collected all data from Chandigarh and town of Haryana and Punjab.
This study is basically on ‘consumer perception on banking services in rural and urban areas’.

3.4 Research design

Research design is the plan structure and strategy of investigation conceived so as to obtain
answer to research questions and to control variance. It helps to researchers to obtain answers
to the questions of research. This study is based on more descriptive research design.
Questionnaire has been administered in order to generate data and other information relating
to the research questions adopted for this study.

3.5 Types of data sources

Basically there are two types of data-

i) Primary data
Primary data is data that has not been previously published. Primary data is those
data which are collected for the first time, taking a sample, representing population.
It is a problem specific data collected by the researcher. It can be collected in five
ways;
• Observation Research

23
 • Focus group Research
• Survey Research
• Behavioral Research
• Experimental Research

For this project primary data as well as secondary data too has been used. Survey
method has been used to collect the primary data. It took the help of a structure
questionnaire to collect the information from the readers.

ii) Secondary data

Secondary data is the data that have been already collected by and readily available
from other sources. Secondary data is those data, which are already published. Such
data are cheaper and easily obtain than the primary data and also may be available
when primary data cannot be obtained at all. It may be useful for many other persons
than the researcher who published it. There are various sources of secondary data
collection.

• Government Sources
• Industry Sources
• Miscellaneous Sources

The main source of collecting secondary data for this project is internet. For this
project researcher also used secondary data such as newspaper, magazines, and report
available on internet.

3.6 Sample size

It consists of a sample size of 100 respondents the data has been collected by survey method
with the help of questionnaires by using convenient sampling methods. The sufficient efforts
has been made to make the sample representatives by including consumers from the different
age group, gender, and occupation.

3.7 Tools and techniques

The tools that are used in this project are tables and pie charts and the technique that is used
for the analyzing the data is percentage method.

3.8 Limitations of the study

Every project has its limitation too. This project is no such exception. Some of the limitations
are as follow;

i) The very first limitation is that every respondent might not have given the bias free
data and might have given incorrect information.
ii) The sample size of 100 may not have been sufficient to collect the accurate data.

24
iii) Some respondents do not have proper knowledge about the various schemes
provided by Banks, and hence are not able to reply to some question properly.
iv) Some respondents never used e-banking properly yet therefore they have to be
withdrawn from the study i.e. not be considered as sample space.
v) There are some errors made by respondents while filing questionnaire which
became a big limitation.
vi) Some respondents are not interested in taking time and filing the questionnaire that
is shortcoming of this report.
vii) A few have filled more than one option in the questionnaire which makes the study
of this project a little tough to analyze.

25
 CHAPTER-4
DATA ANALYSIS
AND
INTERPRETATION
Question1. Gender

Table 1

Options Respondents
Male 29
Female 71

Gender

29%
Male
Female

71%

Figure 1

Interpretation
This above chart shows that survey includes 29% male and 71% female. Number of female
respondents is more than male respondents.

27
Question2. Age

Table 2

Options Respondents
15-24 79
25-34 13
35-44 7
44 & above 1

Age
1%
7%
13%

15-24
25-34
35-44
44 & above

79%

Figure 2

Interpretation
The above chart shows that survey includes 79% people from 15-24 age group, 13% from 25-
35 age group, 7% from 35-50 age group and only 1% from 50 and above age group. Maximum
number of respondents are from 15-24 age group.

28
Question3. Education

Table 3

Option Respondents
Under graduate 53
Graduate 21
Post graduate 22
Professional 4

Education

4%
22%

under graduate
graduate
post graduate

21% 53% professional

Figure 3

Interpretation
Among the 100 respondents most of the respondents are under graduate i.e. 53%, about 22%
of the respondents are post graduate, 21% of the respondents are graduate and only 4% of the
respondents are professional. So most of the respondents are under graduate.

29
Question4. Occupation

Table 4

Options Respondents
Student 75
Employee 18
Self business 7
Others 0

Occupation
0%
7%

18%

Student
Employee
Self business
Others

75%

Figure 4

Interpretation
The above chart shows that most of the respondents consist of students i.e. 75%, 18%
respondents are employees and 7% of the respondents have self business. No one has other
occupation from the respondents.

30
Question5. You belong to?

Table 5

Options Respondents
Rural area 48
Urban area 52

Belong to

52%
Rural area
Urban area
48%

Figure 5

Interpretation
Figure 5 shows that 48% respondents belong to rural area and 52% respondents belong to urban
area. Both area mostly have equal number of respondents.

31
Question6. Do you have bank account?

Table 6

Options Respondents
Yes 97
No 3

Have bank account

3%

Yes
No

97%

Figure 6

Interpretation
Most of the respondents have bank account. About 97% respondents have bank account and
only 3% respondents do not have bank account.

32
Question7. Whom do you approach to know about banking services?

Table 7

Options Respondents
Friends 29
Family tradition 37
Incentive scheme 12
Others 22

Approach to know about banking services

22%

29% Friends
Family tradition
12%
Incentive scheme
Others

37%

Figure7

Interpretation
Above chart shows that 29% respondents approach friends to know about banking services,
37% respondents have family tradition, 12% approach incentive scheme and rest of the 22%
respondents approach to any other source.
So, most of the respondents have family tradition.

33
Question8. What kind of account do you maintain in bank?

Table 8

Options Respondents
Current account 17
Loan account 1
Saving account 74
Demat account 0
More than one 8

Account
0%
8%

17%
Current account
1% Loan account
Saving account
Demat account
More than one

74%

Figure 8

Interpretation
Most of the respondents have saving account i.e. 74%, 17% respondents have current account
and 85 respondents have more than one account.

34
Question9. Primary purpose for which you visit a bank?

Table 9

Options Respondents
To deposit 49
To transfer funds 15
To use atm 36
To take loans 0

Primary purpose

36%
To deposit
To tranfer fund
To use atm
49%
To take loans

15%

Figure 9

Interpretation
Above chart shows that 49% respondents primary purpose to visit a bank is to deposit. 36%
respondents visit bank to use atm and 15% to transfer funds. In this survey, no respondents go
to bank to take loan as their primary purpose.

35
Question10. For the past how many years are you using the bank services?

Table 10

Options Respondents
Less than 2 years 28
3-4 years 32
5-6 years 17
More than 6 years 23

Usage time period

23%

28% Less than 2 years

3-4 years
17% 5-6 years
More than 6 years

32%

Table 10

Interpretation
From the above chart we can see that 28% people are using the banking services from the last
2 years and 32% people are using it from last 3-4 years. From 5-6 years 17% of people are
using banking services and 23% of people are using it from more than 6 years. Most of the
respondents are using it from 3-4 years.

36
Question11. When you think of your bank, what comes first in your mind?

Table 11

Options Respondents
Personalized services 25
Wide branch network 8
Customer service 43
Computerized banking 24

About your bank, what comes first in your

mind

24%

25% Personalized services

Wide branch network
Customer service

8% Computerized banking

43%

Table 11

Interpretation
43% respondents firstly think about customer services, 24% think about computerized banking
and 25% respondents think about personalized services provided by their bank. Only 8% think
about wide branch network of their bank.

37
Question12. Problem faced by you in availing of banking services?

Table 12

Options Respondents
Lack of information 11
Lack of corporation from bankers 17
Time consuming 41
Not safe 3
None 28

Problem faced

Lack of information
28% 11%

Lack of corporation from

bankers
17% Time consuming
3%
Not safe

None
41%

Figure 12

Interpretation
Problem faced by most of the respondents is time consuming i.e. 41% and problem faced by
17% respondents is lack of corporation from bankers.

38
Question13. Do they charge unnecessarily for not maintaining minimum balance in your
account?

Table 13

Options Respondents
Yes 43
No 23
May be 34

Charge unncessarily

34%

Yes

43% No
May be

23%

Figure 13

Interpretation
Most of the respondents think that bank is charging unnecessarily for not maintain minimum
balance in account, number of respondents to yes is 43 and 23 says no to it.

39
Question14. How do you know about the existing and new policies & services offered by the
bank? Through

Table 14

Options Respondents
Branch manager 15
Staff at the branch 19
Digital advertisement 46
Others 20

Know about poilices and services from

20%
15%

Branch manager
Staff at the branch
Digital advertisement
19%
Others

46%

Figure 14

Interpretation
From this survey we conclude that 46% respondents knows from digital advertisement, 19%
from staff at the branch, 15% have direct contact with branch manager and 20% respondents
knows it from any other source.

40
Question15. There is adequate staff at the bank to meet your requirements.

Table 15

Options Respondents
Yes 75
No 25

Adequate staff to meet requirements

25%

Yes
No

75%

Figure 15

Interpretation
75% respondents say that there is adequate staff to meet their requirements and 25% says no
to it.

41
Question16. The contribution of new technology to the success of banks in your opinion is

Table 16

Options Respondents
very high 20
high 37
average 40
low 3
nil 0

Contribution of new technology

3%

20%
Very high
40%
High
Average
Low
Nil

37%

Figure 16

Interpretation
Above figure 14 shows that 40% people says that contribution of new technology is average
and 37% says that there is high contribution of technology to the success of bank. 20% says it
is very high. So the bank should adopt more new technology because adoption is the key to
success.

42
Question17. How satisfied are you with

70

60

50

40
Extremely satisfied
30 Satisfied

20 Neutral
Dissatisfied
10
Extremely dissatisfied
0
The time The way in Experienced Have they Always
taken by staff which staff management knowledge to willing to
members to members staff answer help you
answer your response to customer
queries your queries questions

Figure 17

Interpretation
The above chart shows that respondents are mostly satisfied with the services provided by the
bank. Only few are dissatisfied and extremely dissatisfied from the services provided by the
bank.

43
 CHAPTER-5
FINDINGS,
SUGGESTIONS
AND CONCLUSION

44
5.1 Findings
The findings are a very necessary part of the project as it tells us the key points and areas where
the main activity has taken place and where the main matter lies.

During this study, various finding came out, some of the findings are:

• In this survey mostly respondents are female and come under age group 15-24, who are
under graduate and they are students.
• Both rural and urban areas have almost same number of respondents.
• As per the survey all respondents have bank account.
• Majority of people approach to know about banking services by family tradition.
• This information tells us that most of the respondents are maintaining saving account
in the bank.
• Primary purpose for which they visit bank is to deposit.
• In this survey we find that, most of the respondents firstly think of customer services
provided by the bank.
• By this survey we say that people find this process time consuming.
• Majority of the respondents say that bank charge unnecessarily for not maintaining
minimum balance in the bank.
• This survey tells us that respondents know about policies and services from digital
advertisement.
• By the above study we find that there is adequate staff at the bank to meet their
requirements.
• Mostly respondents say that contribution of new technology to the success of bank is
average.
• By this survey we find that most of the respondents are satisfied from the services
provided by the bank.
5.2 Suggestions
● Fair dealing with the customers. The staff should be co-operative, friendly and must be
capable of understanding the problems of the customers.
● The bank should make its procedures less time consuming.
● The bank should make effort to aware the customers about their all the extra services.
● Adopt new technology which will help in bring down the cost per transaction as well as
help in improve the service delivery.
● The bank should enhance their services according to the needs of the customer.
5.3 Conclusion
From this survey, it is confirmed that people are using banking services in both rural and
urban area.With the introducing of new technology banking bought a dramatic change in
its functioning and has increased customer relationship in both rural and urban area.

Banking is an industry which is going to stay till the end there are many changes that has
happend till now and which will transform in every aspect from the way it has been
happening. The banking habits of the people are changing day by day in terms of all kinds
of deposits, withdrawals, transfers and borrowings. Hence the bankers are required to
provide transparent services to the common public even they come from rural areas who
are now familiar in all kind of services provided by the bank.

The banks and the employees are to be very much careful in designing the systems and
mechanisms for the transformation of all services to all the public of both rural and urban
areas to keep them in tact with the habitation towards the banking services.
BIBLIOGRAPHY
References
Bj Parmar, DB Ranpura (2013) Rural banking through internet: A study on use of internet
banking among rural consumers,2013 Asian journal of Business

DA Vinayagamoorthy, M Genesan(2015) A study on rural consumer perception towards

internet banking services in Salem district, International journal of applied research

Fulbag Singh, Davinder Kaur (2011) Customer Perception of Banking Services - A

Comparative Study of Rural and Urban Branches, Asia Pacific Business Review, Volume: 7
issue: 2, page(s): 37-47

MA Bhat (2005) Corelate of service quality in banks; An empirical, Journal of Services

Research . Apr-Sep2005, Vol. 5 Issue 1, p77-99. 23p. 6 Charts.

MS Khan, SS Mahapatra(2009) Service quality evaluation in internet banking: an empirical

study in India, International journal of marketing & management research, Volume 2, Issue 1

Naeem, H. Akram, A., & Saif, M. I. (2009). Service Quality And Its Impact On Customer
Satisfaction: An Empirical Evidence From The Pakistani Banking Sector. International
Business & Economics Research Journal (IBER), 8(12).
https://doi.org/10.19030/iber.v8i12.3201

P Kangis, V Voukelatos(1997) Private and public banks: a comparison of customer

expectations and perceptions, International journal of Bank Marketing, vol 15 issue 7

S Jha (2019) Usage of ATM for banking in urban and rural areas-a study with reference to UT
of Dadra and Nagar Haveli, International Journal of Management and Development studies,
Vol 8;pg 34-39

S Mehta(2020) Analysis of Customer Satisfaction in Relation to E-Banking Services in Rural

Areas of Southern Rajasthan, Studies in Indian place Names, vol.40 No.74

VC Sharma, SK Dhaundiyal (2012) Customers’ awareness towards banking services: A

study of urban areas of Uttarakhand, South Asian Journal of Marketing & Management
Research, Vol2; pg 63-75, indianjournals.com
Websites

• www.Wikipedia.org

• www.slideshare.net

• http://shodganga.infibnet.ac.in

• www.freebcomnotes.blogspot.com

• www.bankbazar.com

• www.googlescholar.com

• www.bankbound.com

• www.paisabazar.com
ANNEXURE
 QUESTIONNAIRE
Name- ___________________

1.Gender

a) Male
b) Female

2.Age

a) 15-24
b) 25-34
c) 35-44
d) 44 & above

3.Education

a) under graduate
b) graduate
c) post graduate
d) professional

4.Occupation

a) student
b) self business
c) employee
d) others

5.You belong to?

a) Rural area
b) Urban area

6. Do you have bank account?

a) Yes
b) No

7. Whom do you approach to know about banking services?

a) Friends
b) Family tradition
c) Incentive scheme
d) Others

8.What kind of account do you maintain in bank?

 a) Current account
b) Loan account
c) Saving account
d) Demat account
e) More than one

9. Primary purpose for which you visit a bank?

a) To deposit
b) To transfer fund
c) To use atm
d) To take loans

10.For the past how, many years are you using the bank services?

a) Less than 2 years

b) 3-4 years
c) 5-6 years
d) More than 6 years

11.When you think of your bank, what comes first in your mind?

a) Personalized banking
b) Wide branch network
c) Customer service
d) Computerized banking

12. Problem faced by you in availing of baking services?

a) Lack of information
b) Lack of corporation from bankers
c) Time consuming
d) Not safe
e) None

13. Do they charge unnecessarily for not maintain minimum balance in your account?

a) Yes
b) No
c) May be

14. How do you know about the existing and new policies and services offered by the bank?
Through

a) Branch manager
b) Staff at the branch
c) Digital advertisement
d) Others
15. There is adequate staff at the bank to meet your requirements.

a) Yes
b) No

16. The contribution of new technology to the success of banks in your opinion is

a) Very high
b) High
c) Average
d) Low
e) Nil

17. How satisfied are you with

Extremely Satisfied Neutral Dissatisfied Extremely

satisfied dissatisfied

The time taken by

staff members to
answer your
queries
The way in which
staff members
response to your
queries
Experienced
management staff

Have they
knowledge to
answer customer
questions
Always willing to
help you