Chapter-1

Introduction
In India, innovation in baking sector was began since 1991 with introduction of
liberalization and globalization processes as result of it E- Banking came into progress. This
Information Technology revamps the entire banking sector. E- banking drastically and rapidly
altered the way of client banking, banks started providing different services related to cash
deposits, cash withdrawals that to through electronic means. Due to this I.T revolution the
number of electronic transactions are increasing day by day and world has emerged as a
cyber-world where each and every one is connected through internet. E- Banking made the
mobility of foreign funds and investment possible which turned world into global market and
this market is growing so fast that it has almost abolished the effect of national boundaries. It
is not wrong to say that this I.T innovation in baking sector in form of E-banking has
introduced new business paradigm in country like in India.

Electronic banking is defined as “Delivery of bank’s services to a customer at his

office or home by using Electronic technology can be termed as Electronic Banking.” Finland
was the first country in the world who took a lead in E-banking. In India, ICICI bank was the
first bank that initiated E-banking as early as 1997 under the brand name “Infinity”. Online
Banking or E-based banking is also known as Cyber banking, home banking, and virtual
banking and includes various banking activities that can be conducted from anywhere. E-
banking allows customers to do financial transactions on a secured website operated by the
institution, which can be a retail bank, virtual bank, credit union, building society, it also
includes RTGS, NEFT, ECS, Credit cards and debit cards, Cheque truncation, ATM, Tele
banking, Internet banking and Mobile banking. According to Daniel electronic banking can
be simple define as the delivery of bank's information and services by banks to customers via
different delivery platforms that can be used with different terminal devices such as a
personal computer and a mobile phone with browser or desktop software, telephone or digital
television.

The Indian Banking Sector and Information Technology

After independence, the Indian banking system has progressed from nationalisation to
liberalisation. It has seen the transformation of a sluggish corporate institution into a highly
proactive and competitive organisation. This transition has occurred. Largely as a result of
liberalisation and economic reforms that allowed banks to rather than generating sales from
traditional sources, investigate potential market prospects. Borrowing and lending streams
this financial reform, which began in the early 1970s introduced a radically new operating
environment for banks. The banks were also selling their products and services through a
variety of creative and appealing technology-based multichannel. The method began in the
1970s with the introduction of computers as ledger posting machines. The use of technology
has been implemented in Banking operations have a wide range of back-office and customer
facing tasks. Early in the 1980s, The Reserve Bank of India established two committees to
speed up the modernization of the banking system. Operations in the financial industry A
high-level committee were formed under the auspices of the under the chairmanship of Dr C.
Rangarajan, a phased strategy for computerization and automation was created. In the
banking industry, there has been a lot of automation. Banks are now using a range of
innovative and attractive technology-based multichannel to market their goods and services.
With the invention of computers as ledger posting machines in the 1970s, the system was
born. Banking operations use automation for a variety of back-office and customer-facing
activities.

The Reserve Bank of India formed two committees to speed up the restructuring of
the banking system in the early 1980s. Economic processes a high-level committee was
organised under the auspices of the and a phased plan for computerization and automation
was established under the chairmanship of Dr C. Rangarajan. Banks that once relied solely on
the branch to provide services have now begun to sell their products and services across
several creative and technology-based channels. Internet Banking, Automated Teller
Machines, and other platforms are examples of these. ‘ATMs,' 'Mobile Banking,' 'Phone
Banking,' 'TV Banking,' and so on. Any of these are E-banking or online-banking is the
domain of new delivery networks. In the type of digital banking, electronic banking has been
around for a long time. Telephone transfers and automated teller machines (ATMs). It has
been more common in recent years. The internet has changed everything – it's a digital
distribution system that had enabled banking simpler for its transactions.

E-Banking

In India E-Banking is a relatively new phenomenon in India. The conventional

banking paradigm has been through branch banking. Non-branch banking services were only
introduced in the early 1990s. The old manual systems that Indian banking relied on for
centuries seem to have no place today. ICICI Bank is responsible for the introduction of
internet banking in India. In 1999, Citibank and HDFC Bank launched internet banking
services. The Government of India and the Reserve Bank of India have taken many steps to
encourage the growth of E-Banking in India. With effect from October 17, 2000, the
Government of India passed the IT
Act, 2000, which offered legal recognition. To deal with the pressures of the rivalry, Indian
commercial banks have implemented several initiatives, one of which is E-Banking. The
competition has been internal disagreements for public sector banks, as the newly formed
private sector and foreign banks have emerged.

TYPES OF E-BANKING SERVICES

Mobile and Internet banking

Internet banking and E-banking are almost synonymous, except the latter is a broader
term encompassing the former. Any transaction financial or non-financial – that you make
over through a web page (generally the bank's website) or a web application constitutes
internet banking.

You can experience banking at your fingertips with IDFC FIRST Bank's internet banking
services, which facilitate easy transfers, quick bill payments and access to loan details. On the
other hand, mobile banking happens through your mobile phone via a bank's mobile banking
app.

Credit and debit cards

Credit and debit cards are a form of E-banking, too! Debit cards can help us easily
withdraw cash from ATMs and POS (Point of Scale) machines. On the other hand, credit
cards allow customers to borrow funds up to a pre-approved limit and help them avail a range
of offers.

ATMS

ATM was the first E-banking service provided by banks when they started going
digital.An ATM makes the process of withdrawing and depositing money convenient.
Electronic Data Interchange (EDI)

EDI is a technology that is restricted to business transactions. It is used to improve

operational efficiency and reduce transaction costs across a supply chain consisting of
manufacturers, suppliers, logistics providers, retailers, and wholesalers, etc. EDI has
succeeded in making transactions across businesses paperless and seamless.

Electronic Fund Transfer (EFT)

An EFT is used to electronically transfer money from one bank account to another.
Some examples of EFT are National Electronic Funds Transfer (NEFT), Immediate Payment
Service (IMPS) and Real-Time Gross Settlement (RTGS). Hence, E-banking comprises a
range of different mediums of transacting online.

PRESENT STATUS OF E-BANKING IN INDIA

E-banking has become an integral part of the banking system in India. Before the
90’s, the traditional model of banking i.e. branch-based banking was prevalent, but after that
non-branch banking services were started. The credit of launching internet banking in India
goes to firstly ICICI Bank. After that Citibank and HDFC Bank followed with internet
banking services in 1999. The Government of India enacted the IT Act, 2000 with effect from
October 17, 2000, which provided legal recognition to electronic transactions and other
means of e-commerce. The Reserve Bank is monitoring and reviewing the legal and other
requirements of ebanking on a continuous basis to ensure that e-banking would develop on
sound lines and e-banking related challenges would not pose a threat to financial stability.
According to a report of RBI in Jan. 2016, there are 196079 ATMs and 1337310 points of
sale devices in India. To cope with the pressure of growing competition, Indian commercial
banks have adopted several initiatives and e-banking is one of them. The competition has
been especially tough for the public sector banks, as the newly established private sector and
foreign banks are leaders in the adoption of e-banking. Indian banks offer to their customers
the following ebanking products and services viz.
* Automated Teller Machines (ATMs), Internet Banking, Mobile Banking, Phone Banking,
Tele banking, Electronic Clearing Services, Electronic Clearing Cards, Smart Cards, Door
Step Banking, and Electronic Fund Transfer.

* According to the RBI in its Annual Report 2020-21 stated that the payment systems
recorded a robust growth of 26.2% in terms of volume on top of the expansion of 44.2% in
the previous year. Here some of the major key facts are as follows:

* Private sector banks represent about 67% of the POS terminal market while public sector
banks account for 27%. Payments banks accounted for 5% market share, and foreign banks
represented 1%.

* The total number of cards in circulation stood at 960.25 million as of March 2021. Out of
which, there were 898.20 million debit cards and 62.05 million credit cards, up by 8% and
7% YOY respectively.

* There were 2.20 billion prepaid payment instruments in the country. Out of which, 189.93
million comprised of prepaid cards and over 2.01 billion comprised of mobile wallets.

* The number of transactions through mobile wallets in Q1 2021 was 1.13 billion and the
value was INR 411.75 billion. This includes the purchase of goods and services and fund
transfer through wallets. Transactions through wallets are growing steadily.

* Consumers made 8.32 billion mobile-based payments whereas Net Banking / Internet
browser-based transactions were over 937.60 million. In terms of value, INR 31.98 trillion
was transacted through mobile while INR 131.34 trillion was transacted through the internet.

Statement of the Problem

Internet Banking provides customers many services like 24 hours banking, Cash
transfer, Balance Check, Account statements, online purchase etc. Providing this service is
without doubt more efficient but this will be a successful system only if the customer satisfy
with the services provided by the bank. Hence the sole purpose of this research is to find
whether the customer is satisfy with the services and hence they find it easy to access the
services provided by the bank.
Need for the Study
The purpose of this study is to analyse the cost effectiveness of online banking system. To
find how people uses this system which provides pleasure or became a burden. Today many
banking sector provides online services to their customer .They try to provide services but its
became very complicated as it contains many difficulties in providing the basic information
of the customers .

* This study helps to find that the technology been improved and the people satisfy with the
services provided by the bank. The main motto of the banks is to provide best services to their
customers and keep their customers happy

Objectives of the Study

1. To investigate the satisfaction level of E-Banking users in Chennai City.
2. To analyse the service quality expectation of E-Banking users.
3. To study the sources of awareness of E-banking User in Chennai City.

Hypotheses of the Study

To achieve the above mentioned objectives the following null hypotheses have been
formulated related to the study.
1. There is no significant association between the level of satisfaction of the E-banking
users and their socio-economic variables.

2. There is no significant association between the service quality expectation of the E-

banking users and their socio-economic variables.

3. There is no significant difference among the sources of awareness of E-banking users

with regard to their socio-economic variables

Tools Used:
For the purpose of find out the solution to a particular identified research
problem for the study the following statistical tools has been used namely, percentage
analysis.
 Chapter-2
Review of literature

Nilanjan Ray, (2014)1 Had a study in “Internet Service Quality Dimensions and their
Impact on Customer Satisfaction: Case from Banking Industry”. The objective is to the
present study empirically examines the impact of internet banking service quality dimensions
on Customer Satisfaction. Analysis of collected data reveals that there are three dimensions of
service quality, namely, Assured Service, Service Efficiency and Convenient Service which
impact customer satisfaction. It was also found that customers are more satisfied with some
additional service dimensions like trustworthiness, security, accessibility and awareness.

Singh, (2019)2 Tried to find out “Measuring E-service quality and customer
satisfaction with Internet Banking in India” The objective of this study is to measure the e-
service quality of internet banking and the relationship with customer satisfaction in India.
This study aims to explore the critical factors of e-service quality of internet banking in India
and to measure the customers’ satisfaction of internet banking on the identified e-service
quality dimensions. The study also found that there is a positive relationship exists between e-
service quality dimensions and customer satisfaction of internet banking. These findings can
be used by banks to improve the service quality of their internet banking service and thereby
to satisfy their customers.

Jolly, (2016)3 In their survey focused on “the influence of internet banking on the
efficiency and cost savings for banks’ customers”. This research paper is about how the
internet is used by Indian banks and how it has changed the face of banking. Internet banking
has its advantages: primarily it is cost efficient. Using internet banking customers can do most
of their bank transactions online; almost all of the transactions are possible. Adding to the
advantages these transactions require only an internet connection and a computer. These
facilities are not limited to the working hours of the bank; one can avail these services24
hours a day, 7 days a weeks. This makes the regular payments, like that of electricity, water,
mobile bill etc. very easy.

1. Nilanjan Ray, D. G. (2014). Internet Service Quality (I-Sq) Dimensions and their Impact on Customer Satisfaction: Case from Banking
Industry. Asian Journal of Research in Banking and Finance 4
2. Singh, S. (2019). Measuring E-service quality and customer satisfaction with Internet Banking in India. Theoretical Economics Letters 9
(2)
3. Jolly, V. (2016). THE INFLUENCE OF INTERNET BANKING ON THE EFFICIENCY AND COST SAVINGS FOR BANKS’ CUSTOMERS. V.
Jolly (2016) Int. J. Soc. Sc. Manage.
 Areeba Toor, (2016) 4
Had a survey on “The impact of e-banking on customer
satisfaction: Evidence from banking sector of Pakistan”. This research work intends to
investigate the impact of E-banking variables on customer satisfaction in Pakistan. Research
design of the study is quantitative. Results of the study have revealed that there is momentous
relationship between service quality dimensions and customer satisfaction in E-banking in
Pakistan, with more weightage of reliability, responsiveness and assurance among the five
dimensions. Through this study we can conclude that service quality in E-banking leads to
satisfied customers and thus banks can gain competitive advantage by offering better-quality
services to their customers in today’s emulous world.

J.Venkatesh, (2007)5 in their study “ Role of E-Banking in Emerging Scenario” state

that the banking market which was largely controlled by the public sector banks, is now
facing stiff competition from the foreign players and new generation private sector banks.
The banking segment in India is witnessing revolutionary transformation and the core of this
revolution is ‘Concept Selling’. The future prospects therefore lie in strengthening the
package of innovative banking services through technology. It is concluded that during 21st
century, foreign exchange banking has undergone tremendous changes with the economic
liberalization, especially in the last three years.

Tan, (2008) 6
in their article “Spread of E-Banking in Malaysia-A Consumer
Perspective” have stated that the internet accessibility awareness, cost, trust in bank, security
concerns reluctance of customer, ease of use and convenience are the major factors
influencing the electronic banking services in Malaysia. The advantages of e-banking are
modest when compared to other online channels. It is one of the fastest rising services and is
a powerful tool for improving customer satisfaction as well as increasing cross-selling
opportunities. Therefore, banks should keep track of the ever-changing banking industry and
the latest updates of internet technology to envisage future competition. Despite all the frenzy
about e-banking, the banks should not neglect their branch networks as face-to-face
communication is still vital.

4. Areeba Toor, M. H. (2016). The impact of e-banking on customer satisfaction: Evidence from banking sector of Pakistan.
Journal of Business Administration Research 5 (2).
5. J.Venkatesh, &. P. (2007). Role of E-Banking in Emerging. The Professional Banker.
6. Tan, W.-C. P.-C. (2008). Spread of E-Banking in Malaysia-A Consumer Perspective. The ICFAI Journal of Bank
Management.
Bhatia, (2009)7 in their study “E-Banking- Some Economic Implications” found an important
economic implication of e-banking that has made the measurement of money supply difficult,
thereby making the central bank’s task of monetary policy formulation and implementation
cumbersome. Precisely, money stock is no longer a well behaved intermediate/strategic
variable which is amenable to targeting, so as to achieve desirable effects on output,
employment and price stability. The influence of e-banking on the labour market is wide and
penetrative. The introduction of e-banking threatens not only to reduce the number of
employees but also alter the composition of labour input in the banking sector. The Public
Sector Banks in India being the largest employer suffer from low labour productivity. The
only solution for them is to get rid of over-employment and adopt e-banking in its totality.
This is not an easy task and comes directly in confrontation with worker’s interests.

Srivastava, (2007)8 Had a research in “Customer's perception on usage of internet

banking”. Internet banking is still at infancy stage in the world. Many studies focused on
usage of internet banking but many factors on non-usage were overlooked. This research was
carried out to validate the conceptual model of internet banking. The causes were identified
and researched through correcting the causative factors so that internet banking can be used
by more people. This will help the banking operations to be more cost effective.

Pallab Sikdar, (2015)9 Had a study on “Online banking adoption: A factor validation
and satisfaction causation study in the context of Indian banking customers”. The study
considers a five-factor model toward online banking adoption in the context of banking
customers in India and validates the proposed model. In addition, the authors consider the
impact of validated factors on overall satisfaction of customers. Trust, Usage Constraint, Ease
of Use, Accessibility and Intention to Use as reliable and valid factors determining internet
banking adoption among customers in India. The existing studies in the context of e-banking
in general and online banking in particular have been majorly confined to proposing key
drivers toward adoption of such alternate banking mediums. As the study relates to banking
customers in India, findings will be of particular value to domestic and foreign banking
entities looking to leverage technology as a tool to attain stronghold with an emerging
economic set-up.

7. Bhatia ,J.K.( 2009). E Banking Some Economic Implications. The Journal of E Business.
8. Srivastava, R.K (2007). Customers Perception on Usage of Internet Banking. Innovation Marketing 3(4)
9.Pallab Sikdar , M.M (2015).Online Banking Adoption : A Factor Validation And Satisfaction Caustion Study In The Context Of India
Banking Customer.
Kamal K Gupta,( 2011)10 From his findings from “Effect of demographic variables on
customer perceived internet banking service quality: empirical evidence from India”. This
study attempts to analyse the effect of demographic variables on customer perceptions of
Internet banking service quality offered by banks in India. Five dimensions of Internet
banking service quality-Security/Privacy, Reliability, Efficiency, Responsiveness and Site
Aesthetics were extracted through exploratory factor analysis. Performance of banks on these
five Internet banking service quality dimensions was assessed using descriptive analysis as
well as hypotheses testing Results of independent samples t-test revealed a significant
difference between male and female customers’ perceptions on Security/privacy and
Responsiveness dimensions. MANOVA results suggest a significant difference in customers’
perceptions by occupation and income groups whereas no significant difference was found on
the bases of age and education level.

Thabit Altobishi,(2018) 11
From the study of “E-Banking effects on customer satisfaction:
The survey on clients in Jordan Banking Sector”. The managers in financial organizations and
institutions are willing to maintain customer satisfaction, in order to minimize their cost and
strengthen their competitive advantage. The reviewed literature indicates that convenience,
privacy, cost, ease of use, personalization and customization and security are six indicators
that affect level of customer satisfaction with E-Banking. The survey questions conducted in
these six indicators and statistical results shows a positive relationship between level of
customer satisfaction and usage of E-Banking among customers. There is positive
relationship between five indicators and level of customer satisfaction and usage of E-
Banking. Only Privacy is not discovered to have an effect on Customer Satisfaction in Jordan.

10. Kamal K Gupta, D. I. (2011). Effect of demographic variables on customer perceived internet banking service quality: empirical
evidence from India. Paradigm 15 (1-2).

11. Thabit Altobishi, G. E. (2018). E-Banking effects on customer satisfaction: The survey on clients in Jordan Banking Sector.
International Journal of Marketing Studies 10
 S. Fatemeh Sakhaei,(2014) 12
In his research “The impact of service quality on
customer satisfaction on Internet. In his research on the effect of service quality factors of
Internet Banking on customer satisfaction in Iran, has evaluated the relationship between
service quality and customer satisfaction and examines the effects of service quality on
customer satisfaction by the use of Internet Banking services. According to the findings, six
service quality dimensions, namely dependability, performance, responsiveness, fulfilment,
security/privacy, and website design, have a substantive relationship with customer
satisfaction and Internet Banking.

A.P.P. Perera,(2018)13 In his research in “Impact of Internet Banking Service Quality

on Customer Satisfaction: An Empirical Investigation of Customers in Sri Lanka”. The study
tested seven theories about the relationship between seven aspects of internet banking and
customer satisfaction. According to the findings, performance, device availability, and
rewards have a major and positive impact on customer satisfaction, while fulfilment,
confidentiality, and responsiveness have no significant impact on the degree of customer
satisfaction. The results have shown that touch and reliability are the most affected variables
that increase the satisfaction level of internet banking customers. The methodological
evidence aided in understanding the relative effectiveness of internet banking service values,
which would aid policymakers in developing quality services.

Jane M. Kolodinsky,(2004)14 Has a research on “The adoption of electronic banking

technologies by US consumers”. This study explores the factors that influence the adoption or
plan to adopt three E-Banking technologies, as well as changes in these factors over time.
Using a data collection commissioned by the Federal Reserve Board, the paper discovers that
relative benefit, complexity/simplicity, compatibility, observability, risk tolerance, and
product participation are all correlated with adoption. Adoption is affected by factors such as
income, assets, education, gender, marital status, and age.

12. S. Fatemeh Sakhaei, A. J. (2014). The Impact of Service Quality On Customer Satisfaction In Internet. Journal of
mathematics and computer science.
13.A.P.P. Perera, H. P. (2018). Impact of Internet Banking Service Quality on Customer Satisfaction: An Empirical
Investigation of Customers in Sri Lanka. International Journal of Management, IT & Engineering, 22.
14.Jane M. Kolodinsky, J. M. (2004). The adoption of electronic banking technologies by US consumers. International
Journal of Bank Marketing.
 Chapter-3

THEORITICAL BACK GROUND

Bank

An organization that keeps money safely for its customers the office or building of
such an organization. You can take money out, save, borrow or exchange money at bank. A
bank is a financial institution that accepts deposits from the public and creates a demand
deposit while simultaneously making loans Lending activities can be directly performed by
the bank or indirectly through capital markets.

Because banks play an important role in financial stability and the economy of a
country, most jurisdictions exercise a high degree of regulation over banks. Most countries
have institutionalized a system known as fractional-reserve banking, under which banks hold
liquid assets equal to only a portion of their current liabilities. In addition to other regulations
intended to ensure liquidity, banks are generally subject to minimum capital requirements
based on an international set of capital standards, the Basel Accords

Banking in its modern sense evolved in the fourteenth century in the prosperous cities
of Renaissance Italy but in many ways functioned as a continuation of ideas and concepts of
credit and lending that had their roots in the ancient world. In the history of banking, a
number of banking dynasties – notably, the Medics, the Fugger’s, the Welsers, the
Berenbergs, and the Rothschilds – have played a central role over many centuries. The oldest
existing retail bank is Banca Monte dei Paschi di Siena (founded in 1472), while the oldest
existing merchant bank is Berenberg Bank (founded in 1590).

3.2 E-Banking

E-banking is a product designed for the purposes of online banking that enables you
to have easy and safe access to your bank account. E-banking is a safe, fast, easy and efficient
electronic service that enables you access to bank account and to carry out online banking
services, 24 hours a day, and 7 days a week.

In India E-Banking is a relatively new phenomenon in India. The conventional banking

paradigm has been through branch banking. Non-branch banking services were only
introduced in the early 1990s. The old manual systems that Indian banking relied on for
centuries seem to have no place today. ICICI Bank is responsible for the introduction of
internet banking in India. In 1999, Citibank and HDFC Bank launched internet banking
services. The Government of India and the Reserve Bank of India have taken many steps to
encourage the growth of E-Banking in India. With effect from October 17, 2000, the
Government of India passed the IT Act, 2000, which offered legal recognition.
The theory of innovation in banking systems

Electronic business - usually referred to as "e Business" or "e-business" activity can define
who use information and information technologies (ICT) to support all business activities.
The prefix 'e' electronic means. E-business is the term to describe businesses that operate on
the Internet, or using Internet technologies to improve productivity or profitability of the
business. E-business is significantly changes the economic structure, market and industry,
market values, products and services and their turnover, customer profiling, customer
behavior, labor market (Ilir Doci, 2009).

A term the "truncated" The definition of e-business E-business is used to describe businesses
that operate on the Internet or use Internet technologies to enhance productivity or
profitability of the business. Electronic business is the business that uses the computer as a
key element of its activities. Although this definition is exceeded, e-business Œbonded
increasingly too many authors of this field is referred to as Internet business. The most
common implementation of e-business as additional activity, but over time becomes more and
more as the primary activity. ICT (information’s and Communications Technology -
Information Technology and Communication); It is a term that means all technologies for the
manipulation and communication of information. Although it is assumed that ICT is
synonymous with IT - Information Technology - Information Technology, ICT in fact
encompasses all media and components that include a very wide ramification.

Communications network operations and transmission of information, ranging from domestic

network to large private networks operated by major commercial companies and ultimately to
a leading global Internet network. In this group also includes wireless communication
systems - wireless. Also this includes domestic private networks such as Intranet or large
private networks such as Extranet. (Ilir Doci, 2009) Relationship between e-business and ICT
is integral. E-business cannot exist without ICT. One other definition of ebusiness，bonded
is: E-business is the replacement of transactions based on the use of paper, human
intermediaries, or transactions based on phone transactions through electronic networks.

Central Bank

The Reserve Bank of India is the central bank of our country. Each country has a central
bank that regulates all the other banks in that particular country.

The main function of the central bank is to act as the Government’s Bank and guide and
regulate the other banking institutions in the country. Given below are the functions of the
central bank of a country:

* Guiding other banks

* Issuing currency

* Implementing the monetary policies

* Supervisor of the financial system

In other words, the central bank of the country may also be known as the banker’s bank as it
provides assistance to the other banks of the country and manages the financial system of the
country, under the supervision of the Government.

Cooperative Banks

These banks are organised under the state government’s act. They give short term loans
to the agriculture sector and other allied activities.The main goal of Cooperative Banks is to
promote social welfare by providing concessional loans

They are organised in the 3 tier structure

* Tier 1 (State Level) – State Cooperative Banks (regulated by RBI, State Govt ,NABARD)
* Funded by RBI, government, NABARD. Money is then distributed to the public

* Concessional CRR, SLR applies to these banks. (CRR- 3%, SLR- 25%)

* Owned by the state government and top management is elected by members

* Tier 2 (District Level) – Central/District Cooperative Banks
* Tier 3 (Village Level) – Primary Agriculture Cooperative Banks

Commercial Banks

* Organised under the Banking Companies Act, 1956

* They operate on a commercial basis and its main objective is profit.

* They have a unified structure and are owned by the government, state, or any private entity.

* They tend to all sectors ranging from rural to urban

* These banks do not charge concessional interest rates unless instructed by the RBI

* Public deposits are the main source of funds for these banks

The commercial banks can be further divided into three categories:

1. Public sector Banks – A bank where the majority stakes are owned by the
Government or the central bank of the country.
2. Private sector Banks – A bank where the majority stakes are owned by a private
organization or an individual or a group of people
Regional Rural Banks (RRB)

* These are special types of commercial Banks that provide concessional credit to agriculture
and rural sector.

* RRBs were established in 1975 and are registered under a Regional Rural Bank Act, 1976.

* RRBs are joint ventures between the Central government (50%), State government (15%),
and a Commercial Bank (35%).

* 196 RRBs have been established from 1987 to 2005.

* From 2005 onwards government started merger of RRBs thus reducing the number of
RRBs to 82

* One RRB cannot open its branches in more than 3 geographically connected districts.

Local Area Banks (LAB)

* Introduced in India in the year 1996

* These are organized by the private sector

* Earning profit is the main objective of Local Area Banks

* Local Area Banks are registered under Companies Act, 1956

* At present, there are only 4 Local Area Banks all which are located in South India

Specialized Banks

Certain banks are introduced for specific purposes only. Such banks are called specialized
banks. These include:

* Small Industries Development Bank of India (SIDBI) – Loan for a small scale industry or
business can be taken from SIDBI. Financing small industries with modern technology and
equipment’s is done with the help of this bank

* EXIM Bank – EXIM Bank stands for Export and Import Bank. To get loans or other
financial assistance with exporting or importing goods by foreign countries can be done
through this type of bank

* National Bank for Agricultural & Rural Development (NABARD) – To get any kind of
financial assistance for rural, handicraft, village, and agricultural development, people can
turn to NABARD.
Payments Banks

A newly introduced form of banking, the payments bank have been conceptualized by
the Reserve Bank of India. People with an account in the payments bank can only deposit an
amount of up to Rs.1, 00,000/- and cannot apply for loans or credit cards under this account.

Options for online banking, mobile banking, the issue of ATM, and debit card can be done
through payments banks. Given below is a list of the few payments bank in our country:

* Airtel Payments Bank

* India Post Payments Bank

* Fino Payments Bank

* Jio Payments Bank

* Paytm Payments Bank

* NSDL Payments Bank

This study chapter presents the analysis and interpretation of data of main objectives of the
study namely to investigate the satisfaction level of E-Banking users in Chennai City and
analyse the service quality expectation of E-Banking users and to study the sources of
awareness of E-banking User in Chennai City. Further 7 socio economic profiles of the
customers have been tested with appropriate statistical tools such Friedman rank correlation,
and chi-Square analysis. From this chapter the major findings that will presents in the
forthcoming chapter.

Small Finance Banks

As the name suggests, this type of bank looks after the micro industries, small farmers,
and the unorganized sector of the society by providing them loans and financial assistance.
These banks are governed by the central bank of the country.
 Chapter-4

DATA ANALYSIS

4.1 OCCUPATION WISE CLASSIFICATIONS

occupation frequency Valid percent Cumulative

percent
Government
employee 28 24.3 24.3
Private
employee 47 40.9 65.2
business
25 21.7 87.0
Daily wages
15 13.0 100.0
total 11.5 100.0

explanation

The above table 4.1 illustrate that 24.3 per cent of the E-banking customers are privates
employees, 21.7 per cent of the customers are doing their own business, 13.0 per cent of the
e-banking customers are daily wages, 40.3 per cent of the customers are government
employees. It evidently shows that most of the E-banking customers are private employees
and students (40.9 per cent).

BAR DIAGRAM
4.2 USAGE WISE CLASSIFICATION

USAGE FREQUENCY PERCENT VALID

PERCENT CUMULATIVE
PERCENT

LESS THAN 1 40 34.8 34.8 34.8

YEAR
1 TO 3 YEAR
52 45.2 45.2 80.0

3 TO 6 YEAR 14 12.2 12.2 92.2

MORE THAN 6
YEAR 9 7.8 7.8 100.0

TOTAL 11.5 100.0 100.0

Explanation

This table 4.2 shows that 34.8 per cent of E-banking customers uses the service are less than
1 year, 45.2 per cent of E-banking customers uses the services between 1 to 3 years, 12.2 per
cent of customers uses the service between 3 to 6 years and 7.8 per cent of E-banking
customers uses the service for more than 6 years. It clearly shows that most of the E-banking
customers using the service between 1 to 3 years.

BAR DIAGRAM
 4.3 SERVICE WISE USAGE CLASSIFICATION

SERVICE CUMULATIVE
FREQUENCY PERCENT VALID PERCENT PERCENT
TO GET
ACCOUNT 26 22.6 22.6 22.6
BALANCE
UPDATE
TO TRANSFER
MONEY 18 15.7 15.7 38.3
TO PAY UTILITY
BILLS 5 4.3 4.3 42.6
TO BUY GOODS
AND SERVICE 6 5.2 5.2 47.8
ALL THE ABOVE
60 52.2 52.2 100.0

TOTAL 115 100.0 100.0

Explanation:

This table 4.3 shows that 22.6 percent of customer uses the E-banking services to get account
balance updates, 15.7 percent of customer uses the E-banking services to transfer money,4.3
percent of customer uses the E-banking services to pay utility bills , 5.2 percent of customer
uses the E-banking services to buy goods and services and 52.2 percent of customer uses the
E-banking services to perform all the above features . It clearly shows that majority of the
customers uses all the features provided by E-banking (52.2)

BAR DIAGRAM
ABOUT E FREQUENCY PERCENT VALID CUMULATIVE
BANKING PERCENT PERCENT
34.8
FRIENDS 40 34.8 34.8
FAMILY
25 21.7 21.7 56.5

BANK ITSELF 39 33.9 33.9 90.4

OTHERS 11 9.6 9.6 100.0

100.0
TOTAL 11.5 100.0
4.4 KNOWLEDGE ABOUT E-BANKING WISE CLASSIFICATION

Explanation:

This table shows that 34.8 per cent of people get knowledge about E-banking
service by friends, 21.7 per cent of people get knowledge about E-banking service by family
members, 33.9 per cent of people get knowledge about E-banking service by bank itself, and
11 per cent of people get knowledge about E-banking service by others. It clearly shows that
majority of the customers are known about E-banking service by friends (34.8).

BAR DIAGRAM
 4.5 CARD TRANSACTION WISE CLASSIFICATION

CARD FREQUENCY PERCENT VALID CUMULATIVE

TRANSACTION PERCENT PERCENT

HIGHLY 1 0.9 0.9 0.9

DISSATISFIED

DISSATISFIED 4 3.5 3.5 4.3

NEUTRAL 33 28.7 28.7 33.0

SATISFIED 46 40.0 40.0 73.0

HIGHLY 31 27.0 27.0 100.0

SATISFIED

TOTAL 115 100.0 100.0

Explanation:

This table 4.5 shows that 27 per cent of customers are highly satisfied with the
above statement, 40 per cent of customers are satisfied with the above statement, 28.7 per
cent of customers are stayed neutral with the above statement, 3.5 per cent of customers are
dissatisfied with the above statement, 0.9 per cent of customers are Highly dissatisfied with
the above statement. It clearly states that majority of the customer are satisfied with the above
statement (40 percent)

BAR DIAGRAM:
 4.6 SAFETY OF THE CLIENT WISE CLASSIFICATION
SATISFACTOR FREQUENCY
Y LEVEL PERCENT VALID CUMULATIVE
PERCENT PERCENT
0.9
HIGHLY 1 0.9 0.9
DISSATISFIED

DISSATISFIED 4 3.5 3.5 4.3

NEUTRAL 39 33.9 33.9 38.3

SATISFIED 43 37.4 37.4 75.7

HIGHLY 28 24.3 24.3 100.0

SATISFIED

TOTAL 115 100.0 100.0

Explanation:

This table 4.6 shows that 24.3 per cent of customers are highly satisfied with the
above statement, 37.4 per cent of customers are satisfied with the above statement, 39.9 per
cent of customers are stayed neutral with the above statement, 3.5 per cent of customers are
dissatisfied with the above statement, 0.9 per cent of customers are Highly dissatisfied with
the above statement. It clearly states that majority of the customer are satisfied with the above
statement (37.4 percent).

BAR DIAGRAM
 4.7 PRICE OF SERVICE WISE CLASSIFICATION

SATISFACTORY FREQUENCY PERCENT VALID CUMULATIVE

LEVEL PERCENT PERCENT

HIGHLY 1 0.9 0.9 0.9

DISSATISFIED

DISSATISFIED 17 14.8 14.8 15.7

NEUTRAL 42 36.5 36.5 52.2

SATISFIED 34 29.6 29.6 81.7

HIGHLY 21 18.3 183 100.0

SATISFIED

TOTAL 115 100.0 100.0

Explanation:

This table 4.7 shows that 18.3 per cent of customers are highly satisfied with the above
statement, 29.6 per cent of customers are satisfied with the above statement, 36.5 per cent of customers
are stayed neutral with the above statement, 14.8 per cent of customers are dissatisfied with the above
statement, 0.9 per cent of customers are Highly dissatisfied with the above statement. It clearly states
that majority of the customer are neutral with the above statement (37.4 percent).

BAR DIAGRAM
4.8 CUSTOMER NEED’S WISE CLASSIFICATION

SATISFACTORY FREQUENCY PERCENT VALID CUMULATIVE

LEVEL PERCENT PERCENT
HIGHLY 4 3.5 3.5 3.5
DISSATISFIED
DISSATISFIED 13 11.3 11.3 14.8

NEUTRAL 23 20.0 20.0 34.8

75.7
SATISFIED 47 40.9 40.9

HIGHLY 28 24.3 24.3 100.0

SATISFIED
TOTAL 115 100.0 100.0

Explanation:
This table 4.8 shows that 24.3 per cent of customers are highly satisfied with the above
statement, 40.9 per cent of customers are satisfied with the above statement, 20.0 per cent of customers
are stayed neutral with the above statement, 11.3 per cent of customers are dissatisfied with the above
statement, 3.5 per cent of customers are Highly dissatisfied with the above statement. It clearly states
that majority of the customer are satisfied with the above statement (40.9percent).

BAR DIAGRAM

4.9 PERFORMANCE WISE CLASSIFICATIONS

SATISFACTORY
LEVEL FREQUENCY PERCENT VALID CUMULATIVE
PERCENT PERCENT

HIGHLY 1 0.9 0.9 0.9

DISSATISFIED

DISSATISFIED 8 7.0 7.0 7.8

NEUTRAL 25 21.7 21.7 29.6

SATISFIED 45 39.1 39.1 68.7

HIGHLY 36 31.3 31.3 100.0

SATISFIED

TOTAL 155 100.0 100.0

Explanation:
This table4.9 shows that 31.3 per cent of customers are highly satisfied with the above
statement, 39.1 per cent of customers are satisfied with the above statement, 21.7 per cent of customers
are stayed neutral with the above statement, 7.0 per cent of customers are dissatisfied with the above
statement and 0.9per cent of customers are Highly dissatisfied with the above statement. It clearly states
that majority of the customer are satisfied with the above statement (39.1 percent).

BAR DIAGRAM

4.10 QUALITY OF SERVICE WISE CLASSIFICATION

SATISFACTORY FREQUENCY PERCENT VALID CUMULATIVE
LEVEL PERCENT PERCENT

HIGHLY 1 0.9 0.9 0.9

DISSATISFIED

DISSATISFIED 8 7.0 7.0 7.0

NEUTRAL 31 27.0 27.0 27.0

SATISFIED 41 35.7 35.7 70.4

HIGHLY 34 29.6 29.6 100.0

SATISFIED

TOTAL 115 100.0 100.0

Explanation:

This table 4.10 shows that 29.6 per cent of customers are highly satisfied with the
above statement, 35.7 per cent of customers are satisfied with the above statement, 27.0 per cent of
customers are stayed neutral with the above statement, 7.0 per cent of customers are dissatisfied with
the above statement and 0.9per cent of customers are Highly dissatisfied with the above statement. It
clearly states that majority of the customer are satisfied with the above statement (35.7percent).

BAR DIAGRAM

4.11 TRANSFER OF FUNDS WISE CLASSIFICATION

 FREQUENCY PERCENT VALID CUMULATIVE
SATISFACTORY PERCENT PERCENT
LEVEL

DISSATISFIED 4 3.5 3.5 3.5

NEUTRAL 18 15.7 15.7 19.1

SATISFIED 55 47.8 47.8 67.0

HIGHLY 38 33.0 33.0 100.0

SATISFIED

TOTAL 115 100.0 100.0

Explanation:
This table 4.11 shows that 33 percent of customers are highly satisfied with the above
statement, 47.8 per cent of customers are satisfied with the above statement, 15.7 per cent of customers
are stayed neutral with the above statement, 3.5 per cent of customers are dissatisfied with the above
statement. It clearly states that majority of the customer are satisfied with the above statement (47.8
percent).

BAR DIAGRAM

4.12 ACCOUNT WISE CLASSIFICATION

 TYPES OF FREQUENCY PERCENT VALID CUMULATIVE
ACCOUNT PERCENT PERCENT

CURRENT 25 21.7 21.7 21.7

ACCOUNT

SAVING 60 52.2 52.2 73.9

ACCOUNT

SALARY 14 12.2 12.2 86.1

ACCOUNT

RECURRING 16 13.9 13.9 100.0

DEPOSIT
ACCOUNT

TOTAL 115 100.0 100.0

Explanation:
This table 4.12 shows that 21.7 percent of customers are holding current account, 52.2
percent of customers are holding savings account, 12.2 percent of customers are holding salary account
and 213.9percent of customers are holding Recurring deposit account . It clearly shows that majority of
the customers using Savings account (52.2).

BAR DIAGRAM

4.13 SALARY WISE CLASSIFICATION

 SALARY FREQUENCY PERCENT VALID PERCENT CUMULATIVE
PERCENT

20000-25000 31 33.0 33.0 33.0

25000-30000 37 41.7 41.7 74.8

30000-35000 20 12.2 12.2 87.0

ABOVE 35000 27 13.0 13.0 100.0

TOTAL 115 100.0 100.0

Explanation:
This table 4.13 shows that 33.0 percent of customer’s salary lies between 20,000-25,000 ,
41.7 percent of customer’s salary lies between 25,000-30,000,12.2 percent of customer’s salary lies
between 30,000-35,000 and 13.0 percent of customer’s salary lies Above 35,000. It shows that majority
of the customer salary lies between 25,000-30,000(41.4).

BAR DIAGRAM

Chapter-5
Discussion, suggestions and conclusion

Discussions & Suggestions

Banks should take the requisite steps to educate their customers about the different available E-
Banking services, as well as the benefits of using those services. Customers should be sent
demonstrations of E- Banking to encourage them to use it.

Banks should concentrate on cyber security problems including sensitive identities that are susceptible
to misuse in the cyber environment. The cost of accessing Internet Banking services should be reduced
to maximize the number of people who use the service. The E-Banking infrastructure should be
improved to make online inquiry and payment even more convenient.

Suggestions

We can see the time is changing and we are now accepting technology but there is still a lot of
perceptual blocking which hampers the growth its normal tendency of technology, that why the growth
of internet banking is very primitive in nature.

5.3 Conclusion

Conclusion To sum up, the current study analyzed the Internet banking customers in the Chennai
district to understand various aspects of Internet banking services, and the concerns on security
measures by the consumers. The outcome of the research work on the Internet banking helped to
identify the precautionary checklist open to for a number of issues in the internet banking era.
Furthermore, a supreme and powerful security policy employed by the banks and legislation instituted
by local or state Governments should be in use and obligatory in order to improve security in Internet
banking systems. In addition, the banks should provide enhanced, new and improved hi-tech security
measures such as Internet scam protection, hacking detector and anti-virus protections, etc. These
upgrades can provide better discretion to both existing and prospective Internet banking customers.

* The bank's service quality has increased as a result of electronic banking. The majority of
respondents agree with the statement, indicating that the efficiency of online banking services
has increased.
* The level of E-Banking customer satisfaction in Chennai city is strongly linked to
convenience as a predictor of E-Banking services.

* The satisfaction levels of E-Banking study. Resulted as customers is strongly linked to

security and protection.

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