PROJECT WORK

(Submitted for the Degree of B.Com Honors in Accounting & Finance under the
University of Calcutta)

TITLE OF THE PROJECT

“A STUDY OF USAGE ONLINE BANKING IN INDIA “

Submitted By:
Name of the Candidate : Shivam Prasad

Registration No : 054-1111-0200-19

C.U. Roll No : 191054-21-0071

Name of the College : K.K. Das College

College Roll No : 170

Supervised By:
Name of the Supervisor : Prof. Rinku Saha

Name of the College : K.K. Das College

JUNE, 2022
 ACKNOWLEDGEMENT

I being a benefited student of K.K. Das College, affiliated under the

University of Calcutta, would like to take this opportunity to express my
profound gratitude and regards to my supervisor, and to the entire
Department of Commerce for their exemplary guidance, monitoring and
constant encouragement throughout the course of the completion of the
project “A STUDY OF USAGE ONLINE BANKING.”

The guidance given by them time to time shall carry me a long way in the
journey of my career on which I am about to embark. I would also like to
express my thankfulness to the college and university committee for
providing me with the opportunity to work on this project, and for their
cordial support, valuable information, and guidance, which helped me in
completing this task through its various stages.

I am thankful to all the people who willingly responded to the

questionnaire and their contribution has been invaluable. This project
would not have been completed without their participation. I am grateful
for their cooperation during the period of my project. Lastly, I thank to my
parents and friends for their constant encouragement without which the
project would not have been possible.

Name : Shivam Prasad

College : K.K. Das College

Roll No. : 191054-21-0071

Registration No: 054-1111-0200-19

 Table of Contents
SERIAL PAGE
CONTENTS
NO. NO.
Introduction
1. Background of the Study
2. Literature Review
3. Objective of the Study
Chapter 1 4. Research Methodology 1-6
5. Limitation of the Study
6. Chapter Planning

Conceptual Framework
1. online banking - an overview
different types of online banking
security issues in internet banking
Chapter 2 online banking in India guidelines
7-12
by RBI online banking scenario

1. Presentation of Data, Analysis, and

Findings Data Collection and Analysis
Chapter 3 findings 13-28

Conclusion and Recommendation

1. Conclusion
Chapter 4 29-31
2. Recommendation

Bibliography
1. websites 32

Annexure
33-34

Questionnaire
35-36
 -1-

CHAPTER-1
INTRODUCTION

1.1 BACKGROUND OF THE STUDY:

Online banking, also known as online banking, web banking or home banking, is an
electronic payment system that enables customers of a bank or other financial institution to
conduct a range of financial transactions through the financial institution's website. Online
banking significantly reduces the banks' operating cost by reducing reliance on a branch
network and offers greater convenience to customers in time saving in coming to a branch
and the convenience of being able to perform banking transactions even when branches are
closed. Online banking provides personal and corporate banking services offering features
such as viewing account balances, obtaining statements, checking recent transactions,
transferring money between accounts, and making payments. Online banking started in the
United Kingdom with the launch of Nottingham Building Society (NBS)'s Home link service
in September 1982, initially on a restricted basis, before it was expanded nationally in
1983.Home link was delivered through a partnership with the Bank of Scotland and British
Telecom's Pestle service. In the United States in-home banking was "is still in its infancy"
with banks "cautiously testing consumer interest" in 1984, a year after online banking went
national in the UK. At the time Chemical Bank in New York was "still working out the bugs
from its service, which offers somewhat limited features”. The service from Chemical, called
Pronto, was launched in 1983 and was aimed at individuals and small businesses. It enabled
them to maintain electronic checkbook registers, see account balances, and transfer funds
between checking and savings accounts. The other three major banks Citibank, Chase Bank
and Manufacturers Hanover started to offer home banking services soon after. Chemicals
Pronto failed to attract enough customers to break even and was abandoned in 1989. Other
banks had a similar experience. Since it first appeared in the United States, online banking
has been federally governed by The Electronic Funds Transfer Act of 1978. Online banking
arrived in India in the late 1990s. ICICI was the first bank to champion its usage and
introduced online banking to its customers in 1996. With lower online costs and increased
 -2-

awareness about electronic media, online banking established itself only in 1999. With online
banking, consumers aren't required to visit a bank branch to complete most of their basic
banking transactions. They can do all of this at their own convenience, wherever they want—
at home, at work, or on the go...

You can use different type of advantage, like:

1. Have your paycheck deposited directly into your bank or credit union checking
account.

2. Withdraw money from your checking account from an ATM machine with a personal
identification number (PIN), at day or night.

3. Use a smart card with a prepaid amount of money embedded in it for use instead of
cash at a pay phone, expressway road toll, or on college campuses at the libraries photocopy
machine or bookstores.

4. Online banking allows customers of a financial institution to conduct financial

transitions one source website operated by the institution, which can be retail or virtual bank,
credit union or building society.

1.2 LITERATURE REVIEW:

Sl. Year Author Country Name of Findings

No. of the Project
research

1 2002 Liao and Singapore Information Woodruff procedure was

Cheung and adopted; Survey method;
Regression analysis used for
Management checking interdependencies
between various attributes.
 -3-

2 2003 Boon and Malaysia International Success factors affecting usage

Yu Journal of e-channels; Factor Analysis
of Bank and Spearman Correlation
Marketing Coefficient.
3 2005 Seth USA International Service Quality models were
Journal of reviewed in the context of
relationships between various
Quality and service attributes, Focus on
Reliability Information technology and
measurement issues.
Management

4 2006 Trailblazer Austria Journal of Survey of online bank

customers; Factor Analysis
Electronic
(structural equation modeling
Commerce and multi-group invariance
Research analysis).

5 2011 Chuang Canada Journal of EFA,

Lu, Global Content Analysis,
Lathery, Issues, E-service Journal Hierarchical
Seyal and Taiwan Regression
Rahim, Survey
method,

6 2013 Cabinillas Spain Industrial Web survey: Sample was

Management drawn from customers of a
national financial institution in
and Data southern Spain; EFA and CFA
Systems conducted; SEM using Lisrel.

7 2014 Al-Qeisi United Journal of Survey method; Sample drawn

et al Kingdom Business from mall customers in UK;
Research EFA, CFA, and SEM
 -4-

8 2014 Santouridis Greece Procedia Survey method; Sample drawn

and Kyritis Economics from bank branches and
and Finance, internet cafes at Thessaly in
Greece; EFA and Regression
Analysis
9 2015 sunder and India Production Survey method: Kano model
Antony Planning and survey method was used.
Control, Sample drawn from call centers
in Japan, New Jersey, and
Canada; EFA, CFA and SEM;
Critical To Quality (CTQ)
metric was derived to find out
customer’s needs

10 2016 .Asad et al Malaysia Procedia Survey method; Sample drawn

Economics from working professionals in
and Finance Malacca in Malaysia; Multiple
regression

11 2016 Amin Malaysia International Survey method; EFA, CFA, and

Journal of SEM
Bank
Marketing
12 2017 Raghu and India Asian Social FGD; Thematic analysis,
Jayshree Science Survey method, and SEM, Web
survey; EFA and CFA
conducted.
 -5-

1.3 OBJECTIVES OF THE STUDY:

Online banking has become very much popular now a days throughout the globe. It has
made the banking system easier, faster, and more assessable. Now people are tried to learn
more about the E-banking. The primary objective of the research is to get the full experience
of the internet banking and its benefits. To add more knowledge about internet banking the
following are the secondary objective of this research study.
1. To know how the internet banking has revolutionized the banking sector.
2. To help the learners to know about the current concerns in the internet banking.
3. To know how challenging internet banking has become and how the banking sector
applies different strategies to cope up with the challenging environment.
4. To know how Use a smart card with a prepaid amount of money embedded in it for
use instead of cash at a pay phone, expressway road toll, or on college campuses at the
libraries photocopy machine or bookstores.
5. To understand the genesis and concept of online banking
6. To analyses the present E-banking scenario concerned with ATM internet banking,
mobile banking, card debit banking, fund transfer and other banking serviced.

1.4 RESEARCH METHODOLOGY OF THE STUDY:

Data collection is an important step in any research work. The success of the research
work largely depends upon the authenticity of the data collected and how well the data is
analyzed and interpreted. There are two types of data– i) Primary data, ii) Secondary data.

Primary data: The studying based on both of primary and secondary data. for the propose
of case study primary data have been collected from the people of KOLKATA, through
google form survey.

Secondary data: The secondary data have been collected from different articles and
website recourse such as WWW.WIKIPEDIA.COM and WWW.GOOGLE.COM and so
many others. We have used simple tables and graphs to analysis and present data. Apart from
this I also followed my supervisor’s instruction to finish the project.

Time period of the study: 5th may to 25th may

 -6-

Area of the study: Kolkata

Sampling method used in the study: Purposive and Convenient sampling has been used for
conducting the survey.

Sample design of the study: For this study primary data have been collected from google
form survey.

1.5 LIMITATIONS OF THE STUDY:

Each and every theory has a limitation, this project being no exception has its fair
share of limitations as well, some of which are as follows:
• The research is on adoption of basic ONLINE-banking services in India, but this
study was conducted for mainly Kolkata only and all regions of India are not covered.
• While collecting primary data, information were not collected from the
service providers.
• There were several time constraints.
• The sample size of only 30 was taken from the large population for the purpose of
study, so there can be difference between results of sample from total population.
• Do not shortage of time I have not been able to make a depth study.
• I could not collect data from out site of KOLKATA.
• This study is based on the prevailing respondents’ satisfaction. But their satisfaction
may change according to time, fashion, need Etc.
• Due to continuous change in environment, what is relevant today may be irrelevant
tomorrow.

1.6 CHAPTER PLANNING:

The study is divided into 4 chapters and references:
Chapter 1: Introduction
Chapter 2: Conceptual Framework
Chapter 3: Data Collection and Analysis
Chapter 4: Conclusion and Recommendation
 -7-

CHAPTER-2
CONCEPTUAL FRAMEWORK
2.1 ONLINE BANKING – AN OVERVIEW:

• DEFINITION:
i. Online banking is an electronic payment system that enables customers of a financial
institution to conduct financial transactions on a website operated by the institution,
such as a retail bank , virtual bank, credit union or building society .Online bank is
also referred as internet banking, online banking, virtual bank and by other terms .
ii. Online banking is the practice of making bank transaction or paying bills via the
internet. Thanks to technology, and the internet in particular, people no longer have to
leave the house to shop, communicate, or even do their banking.

• FIRST ONLINE BANKING IN INDIA:

ICICI bank is the first one to have introduced online banking in 1994 for a limited
range of service such as access to account information, correspondence and recently
funds transfer between its branches. ICICI bank is also getting into e-trading, thus
affirming a broader range of integrated service to customer.

• ADVANTAGES:
Many banks began to offer customers the option if online internet banking, a practice
that has been advantage for both all parties involved. The convenience of being able to
access accounts at any time as well as the ability to perform transactions without visiting
a local branch, draw many people to be involved. Some of these advantages of internet
banking but are not limited to include:

1. Customer convenience: Direct bank are open for business anywhere there is an
internet connection. They are also 24 hours, 365 days, and a year open while if internet
service is not available, customer service is normally provided around the clock via
telephone.
 -8-

2. More efficient rates: The lack of significant infrastructure and overhead costs allow
direct banks to pay higher interest rates on saving and charge lower mortgage and loan
rates. some offers high yield checking accounts, high yield certificate of deposited and
even no-penalty CDs for early withdrawal in addition some accounts can be opened with
no minimum deposits and carry no minimum balance or service fee.
3. Services: Direct banks typically have more robust website that offer a comprehensive
set of features that many not are found on the website of traditional bank. These include
functional budgeting and forecasting tools, financial planning capability, investment
analysis tools, loan calculator and equity platforms. In addition, they offer free online bill
payment, online tax forms and tax preparation.
4. Transfer: Accounts can be automatically funded from a traditional bank account via
electronic transfer. Most direct bank offer unlimited transfer at no cost, including those
destined for outside financial institutions. They will also accept direct deposit and
withdrawals that the customer author such as payroll deposit and automatic bill payment.

• Disadvantage:
Internet banking seems like an obvious choice to leave the hassles of traditional money
management behind in exchange for it. However, there are potential problems associated
with banking over the internet of which customers may not be aware. Consumers need to
weigh the advantages as well as the disadvantage of internet banking before signing up.
Some of the disadvantages of internet banking include:

1. Bank relationship: A traditional Bank provides the opportunity to develop a personal

relationship with that Bank. Getting to know the people at your local branch can be an
advantage when a customer needs a loan or special service that is not normally offered to the
public. A bank manager usually has some distraction in changing the terms of customers
account if the customer's personal Circumstances change. They can help customers solve
problems such as reversing an undeserved fee. The banker also will get to know the customer
and his unique needs. If the customer has a business account this personal relationship may
help if the customer needs capital to expand. It's easier to get the bank support if there is
someone who understands customer business and vouch for his operating.
 -9-

2. Transaction issue: Sometimes a face-to-face meeting is required to complete

complex transaction and address complicated problem. Aortal regional bank and post meeting
and call-in expert to solve a specific issue. Moreover, international transaction may be more
difficult with some direct Bank. If a customer deposit cash on a regular basis a traditional
bank with driver-throw window maybe more practical and efficient.
3. Service issue: Some Direct Bank may not offer all the comprehensive financial
services such as insurance and brokerage accounts that traditional Bank offer. Traditional
Bank something of a special service to loyal customers such as preferred rates and investment
advice at no extra charge. In addition, routine service such as notarization and bank signature
guaranteed are not available online. This service is required for mini financial and legal
transaction.
4. Security: Direct Bank is subject to the same law and regulations as traditional banks
and accounts are protected by the FDIC. Accounts may be subject to phishing, hacker attacks
Malware and other unauthorized activity. It enables verification that all checks are signed by
the customers and that Dollar or Euro amounts have not be the change. The timely discovery
of discrepancies can be reported and investigated immediately.
5. Connectivity: Another issue is that something it becomes difficult veto note whether
your transaction was successful or not. It may be due to the loss of net connectivity in
between or due to a slow connection, or the bank's server is down.

2.2 DIFFERENT TYPES OF ONLINE BANKING:

a. ATM banking: Computerized machine that permits Bank customers to gain

access to their accounts with a magnetically encoded plastid card and code number. It
enables the customer to perform several banking operations without the health of a
Teller, such as to withdraw cash, make deposit, pay bill, and obtain bank statement,
effects transfer. Also called automated banking machine, automatic till machine or
remote service unit.
b. Debit card: Debit cards are normally issued by financial institution and are
extremely useful because they eliminate the need to carry cash. This card is not the
same as credit card. When credit cards are used, the credit card company issues the
payment for the purchase and grants loan to the card holder for the purchase that was
 - 10 -

made. That debit card is linked must have available funds at the time of the purchase.
Also, Debit card require a password to be used. The letter does not require a password
to be used. In essence, a debit card is essentially like using cash to pay for things.
c. Credit card: Standard size plastic token, with a magnetic strip that holds a
machine-readable code. Credit cards are a convenient substitute for cash or check, and
an essential component of electronic commerce and internet commerce. Credit card
holders draw on a credit limit approved by the card user such as a bank, Store or service
provider.
d. NEFT: National electronic fund transfer, NEFT is electronic fund transfer
system, which facilities transfer of funds to other bank account in over 63000 Bank
branches across the country. This is a simple, secured, safe, fastest and cost-effective
way to transfer fund especially for retail remittance.
e. UPI: UPI is a payment system that allows you to transfer money between any
two parties. UPI allows you to pay directly from your bank account to different
merchant without the hassle of typing your card details or net banking/ wallet transfer.

2.3 SECURITY ISSUES IN INTERNET BANKING:

• Type of frauds:
Now a day, the nature of attacks is more active rather than passive. Previously, the
threats where all passage such as password guessing, dumpster dives and shoulder
surfing. Here are some of the techniques used by the attacker today—

i. Spyware: Where is the number one way that online banking credentials are stolen and
used for fraudulent activities Spider works bike computer information either one year
computer know while it is transmitted between your computer and website. Often, it is
installed through fake "pop up” ads asking you to download software. Industry
standard antivirus product deletes and removes software of this type, usually by
blocking the download and installation before it can infect your computer.
ii.Viruses: Viruses are designed to compromise your computer system and allow other
to gain access to your file etc. This is different than spyware in that a virus search for
information considered being of value, where is spyware will wait for input for action
from whoever is using the computer. A system that is compromised may be used to
 - 11 -

attack other system denying people legislation access to service. One of the most
common scenarios with virus is what they will discover financial data such as payroll
file, bank account information and credit card information. This information is then
transferred to criminal who sell it on the black market or worse - use it for blackmail.
Criminals can get anywhere from pennies lake to core rupees for each piece of
information, depending on what it is and how they can exploit it.
iii. Spam: Spam is an electronic" junk mail" or unwanted messages send to your
mail account on mobile phone. This messages very, but essentially e commercial and
often annoying in their sheer volume. They may try to persuade you to buy a product
or service, or visiting a website where you can make purchases, or they may attempt to
trick you into divulging your bank account or credit card details.

2.4 ONLINE BANKING SCENARIO:

• National Scenario:
 Scenario of Online banking in India: Opening of economy in 1991 marked
the entry of foreign banks. They brought new technology with them. Banking products
became more and more competitive. There was need for differentiation of products and
services. The ICICI Bank kicked off online banking in 1996. 1996 to 1998 marked the
adoption phase, while usage increased only in 1999, owing to lower Internet Service
Provider (ISP) online charges, increased PC penetration and a tech-friendly atmosphere.
To cope with the pressure of growing competition, Indian commercial banks have
adopted several initiatives and 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 adoption of banking. Indian Banks offer to their customers
following banking products and services:
i. Automated Teller Machines
ii. Internet Banking
iii. Mobile Banking
iv. Phone Banking
v. Electronic Clearing Cards
vi. Smart Cards
vii. Electronic Fund Transfer
 - 12 -

• International Scenario:
 Online banking includes customer acceptance and satisfaction, privacy concerns,
profitability, operational risks, and competition from nonbanking institutions (Boss et al.,
2000, Smith, 2006, Hwang et al, 2007, Shin, 2008). Between 1995 and 2003, online
banking increased eightfold (Hogarth and Angelo, 2004).
 Online banking defined as the delivery of banking services through the open-access
computer network directly to customer’s home or private address. Simpson (2002) suggests
that online banking is driven largely by the prospects of operating costs minimization and
operating revenues maximization. A comparison of online banking in developed and
emerging markets reveal that in developed markets lower costs and higher revenues are
more noticeable. Karjaluoto (2002) electronic banking is a construct that consists of several
distribution channels. DeYoung (2005) analyze the performance of Internet-only banks
versus the brick and mortars in the US market and find strong evidence of general
experience effects available to all start-ups. Between late 2002 and early 2005, use of online
banking increased 47%, clear evidence that online banking is associated with better
household financial management (Smith, 2006). For the past two decades, the banking
sector has chosen a new service channel based on the progress of information technology -
the Internet- to respond to the changes in customer preferences and needs, increased
competition from non-banks, changes in demographic and social trends, and government
deregulations of the financial service sector Byers, R.E. and Lederer, P.L. (2001)
 Online banking links business to customers no matter their geographical location. It
allows companies to make new business contacts from different global business alliances,
test new products and services, and make market research and other enquiries all at a
minimal cost both financial and otherwise (Shin, 2008). The adoption of new IT
applications is influenced largely by factors related to overall organizational attitudes and
culture as well technical and infrastructural elements Shah.M and Clarke.S. (2009).
 Additional research was conducted by Khorshid and Ghaneh Khorshid, S. and Ghane,
(2009) and in their article on ranking the challenges of online banking identified for
managers of banks, customers’ privacy, security, and customers’ trust as issues arising. For
customers, reputation of bank, regulations and laws, and easy accessibility were seen as the
main challenges for the development of online banking.
 - 13 -

CHAPTER -3
PRESENTATION OF DATA, ANALYSIS AND
FINDINGS:
The competitive pressures and the evolving requirements of consumers have required the
banks to develop new technologies and tools. Internet banking that has revolutionized the
banking industry worldwide is a product of this innovation. In general, Internet banking
refers to the use of Internet as a delivery channel for the banking services, including
traditional services, such as opening an account or transferring funds among different
accounts, as well as new banking services, such as electronic bill presentment and payment,
which allow the customers to pay and receive the bills on a bank’s web site. In India, slowly
but steadily, the Indian customer is moving towards Internet banking. A number of banks
have either adopted Internet banking or are on the threshold of adopting it. The Indian
banks started Internet banking initially with simple functions such as getting information
about interest rates, checking account balances and computing loan eligibility.
Then the services were extended to online bill payment, transfer of funds between accounts
and cash management services for corporate. The banks are using Internet banking
technology to meet the ever-increasing competition. It has also emerged as a strategic
resource for achieving higher efficiency, control of operations and reduction of cost by
replacing paper based and labor intensive methods with automated processes thus leading
to higher productivity and profitability. Internet based electronic banking is one of the
newest and least researched but most promising delivery channel for retail banking
services. No doubt, considerable literature on this phenomenon is available worldwide, but
in Indian context, there are only conceptual papers throwing light over the importance of
Internet banking and its prospects for the Indian banking industry. The present study aims to
quantify the current state and performance of Internet banking in India in terms of various
Internet banking services being offered and the factors that drive the development of such
services.
 - 14 -

o SURVEY PROFILE:

 For study a survey was conducted from 5th May 2022 to 25th May2022 for the
project “online – banking”. This survey was done on the basis of 30 respondents
from various sectors.
 Mainly the object of the research is understood online banking user’s behavior,
opinions, preferences and expectations. The questions were designed in such way
to cover all the relating fields. The fieldwork and data analysis were conducted by
me after consulting with my supervisor and with the help of my friend. I am very
much grateful to them.

o SURVEY TABLE:

Duration of survey 5th May 2022 to 25th May 2022

Target of population Local people of Kolkata (Kolkata)

Social media, phone call

Survey method
(FOR COVID-19)

Effective response rate (26 of 30)

 - 15 -

A. DATA ANALYSIS AND INTERPRETATION :

a. PERSONAL DETAILS :

• GENDER BASIS ANALYSIS:

Chart Title
USE ONLINE NOT USE ONLINE
BANKING BANKING
15

11
3

0
Mal e Fem al e Ot h er

GENDER USE ONLINE NOT USE ONLINE TOTAL

BANKING BANKING
MALE 15 3 18
FEMALE 11 1 12
OTHERS 0 0 00
TOTAL 26 4 30

• INTERPRETATION
Data collection from 30 respondents, out of 26 respondents performs online
banking and this is represented by a Column with Male and Female basis
analysis.
 - 16 -

• AGE BASIS ANALYSIS:

AGE

18
16
14
12
10
8
6
4
2
0
BELOW 18 19 - 39 40 – 60 ABOVE 60

Series 1

AGE FREQUENCY PERCENTAGE CUMULATIVE

GROUP (%) FREQUENCY
BELOW 18 5 16.7 % 5
19 - 39 17 56.7 % 22
40 – 60 7 23.3 % 29
ABOVE 60 1 3.3 % 30

• INTERPRETATION
Data collection from 30 respondents, out of 5 respondents performs in below 18
age group, 17 respondents’ in 19 – 39 age group, 7 respondents’ in 40 – 60 age
group and 1 respondents’ in above 60 age group.
 - 17 -

• OCCUPATION BASIS ANALYSIS:

OCCUPATION

2%
16%

38%

20%

24%

STUDENT EMPLOYEE BUSINESSMEN TEACHERS OTHERS

OCCUPATION FREQUENCY PERCENTAGE CUMULATIVE

FREQUENCY
STUDENT 12 38 % 12
EMPLOYEE 10 24 % 22
BUSINESSMEN 2 20 % 24
TEACHERS 5 16 % 29
OTHERS 1 2% 30

• INTERPRETATION
Among 30 respondents 38 % are student, 24 % are employee, 20 % are
businessmen, 16 % are teachers and 2% are others.
 - 18 -

b. QUESTIONS:

USE ONLINE FREQUENCY PERCENTAGE CUMULATIVE

BANKING SYSTEM FREQUENCY

YES 26 86.7 % 26
NO 4 13.3% 30

• INTERPRETATION
Data collected from 30 respondents out of 26 respondent’s use online banking and
4 respondents do not use online banking.
 - 19 -

FREQUENCY PERCENTAGE CUMULATIVE

USE OF ONLINE
BANKING FREQUENCY

DAILY 8 26.7 % 8
WEEKLY 8 26.7 % 16
MONTHLY 7 23.3 % 23
YEARLY 3 10 % 26
NEVER 4 13.3 % 30

a. INTERPRETATION
Among 26 respondent 8 are use online banking daily, 8 are use online banking
weekly, 7 are use online banking monthly, 3 are use online banking yearly and 4
are never use online banking.
 - 20 -

FREQUENCY PERCENTAGE CUMULATIVE

SINGLE ONLINE FREQUENCY
TRANSATION

BELOW RS.1000 11 66% 11

RS. 1001-5000 8 26% 19
RS. 5001-10000 4 6% 23
AVOBE 10000 3 2% 26

 INTERPRETATION
Among 26 respond 11 people spend for a single transaction below rupees 1000
and 8 people 1001 to 5000 rupees and 4 people 5001 to 10000 rupees and 3 people
above 10000 rupees.
 - 21 -

FREQUENCY PERCENTAGE CUMULATIVE

BANK ACCOUNT FREQUENCY

SBI 6 20% 6
AXIS 4 13.3% 10
ICICI 2 6.7% 12
STANARD
2 6.7% 14
CHARTERED
HDFC 5 16.7% 19
UBI 3 10% 22
BOI 3 10% 25
PNB 3 10% 28
UCO 2 6.7% 30
OTHERS 0 0% 30

 INTERPRETATION
Among 26 respondents, 6 respondents have SBI bank account, 4 people have
Axis bank account, 2 people have ICICI bank accounts, 2 people have standard
chartered Bank account, 5 people have HDFC bank account, 3 people have UBI
Bank account, 3 people have BOI Bank account, 3 people have PNB bank
account, 2 people have UCO bank account and 0 have others bank account.
 - 22 -

FREQUENCY PERCENTAGE CUMULATIVE

FREQUENCY
USE DEBIT CARD

YES 26 86.7% 26
NO 4 13.3% 30

 INTERPRETATION
Among 30 respondents 26 are use debit card and 4 are not use debit card.
 - 23 -

FREQUENCY PERCENTAGE CUMULATIVE

FREQUENCY
USE E-WALLET

YES 21 70% 21

NO 9 30% 9

 INTERPRETATION
Among 30 respondents 21 are used e wallet and 9 are not used e wallet.
 - 24 -

ONLINE BANKING FREQUENCY PERCENTAGE CUMULATIVE

FACILITIES FREQUENCY

YES 21 70% 21
NO 9 30% 30

 INTERPRETATION
Among 30 respondent and 21 people said yes available of all banking facility
online and 9 people said no avail of all banking facility online.
 - 25 -

FREQUENCY PERCENTAGE CUMULATIVE

ONLINE BANKING FREQUENCY
BETTER
SUBSTITUE

YES 20 66.7% 20
NO 8 26.7% 28
CAN’T SAY 2 6.7% 30

• INTERPRETATION
About 30 respondents 20 people said "yes” and 8 people said "no" and 2 people
"can't say”.
 - 26 -

FREQUENCY PERCENTAGE CUMULATIVE

FREQUENCY
AWARENES
OF FRAUDS

YES 18 60% 18
NO 10 33.3% 28
CAN’T SAY 2 6.7% 30

• INTERPRETATION

It is good to see that most of the users are aware about the securities issue of net banking, but
even we are having thorough knowledge about internet banking, some of the respondents are
acne prone that every The method adopted is to secure the transaction.
 - 27 -

FREQUENCY PERCENTAGE CUMULATIVE

OVERALL RATING
FREQUENCY

EXCELLENT 12 40% 12

GOOD 12 40% 24

POOR 3 10% 27

HARD TO SAY 3 10% 30

a. INTERPRETATION
The satisfaction level of people with the online banking service of their banks
has a mixed review. 12 people are rating "excellent" , 12 people are rating "good"
, 3 people are rating "poor" , 3 people are rating "hard to say”
 -28-

B. FINDINGS:
 30 people respond to this study. But out of 26 people claim that they perform online
banking service.
 Out of 30 people 18 are male and 12 are female, that's mean the male have more
knowledge about the transaction and having more knowledge about the service
provided by the banks.
 Most of the respondents between 19-39 is using online banking service.
 Among 30 respondents 22 people are employee and students. Because the service
are more benefits toward this people.
 It is very interesting to see that 15 people have accounts in SBI, Axis and HDFC
Banks. But SBI bank has more customer than others.
 Most of the online banking users have a tendency to spend rupees 1000 or below
this amount in a single transaction.
 This study revealed that most of the users claim that day ever of security threats and
they took recommended steps to secure the net banking.
 Maximum number of respondents claims that their banks do not charge extra
charges for net banking facility.
 People told that they will continue online banking activities in future.
 People also claim that fund transfer, e_ deposit, ATM service bill payment service,
loan and credit service, e-tax payment and internal security service should be
modified in near future.
 More people are highly satisfied with the services and some people are satisfied and
remain are not properly satisfied.
 - 29 -

CHAPTER-4

CONCLUSIONS AND RECOMMENDATIONS

A. Conclusion:

 In a country like India, there is need for providing better and customized service to the
customers. Banks must be concerned about the attitudes of customers with regard to
acceptable of internet banking. The importance of security and privacy for acceptance
of internet banking has been noted in many earlier studies and it was found that
people blamed that they have knowledge about security issue but they have no clear
idea about all kind fraud. The present study shows that customers are more reluctant
to accept new technologies or methods that might contain little risk. Hence, bank
chute design the website to address security and trust issue.
 The survey was conducted with 30 people of Kolkata, Kolkata area. So we cannot say
that this is the real trend of net banking of whole the country.
 People are not confident enough to weather to completely phone online banking.
Where is hesitancy in their mind with regards to preference? So they use both the
online and offline banking.
 At the time of survey when give questionnaire is to people, they very casually feel it
without him of the depth of the study.
 Another point is people are not disclosing their personal data truly.
 Due to shortage of time data cannot be collected from all types of people.
 The study was conducted with the help of students, employee, and businessman etc...
 The study reveals that ATM banking, bill payment and online transaction etc. are
perfect by so much many respondents but it does not reflect that NEFT, RTGS service
are not performed by the people.

B. Recommendation:
 - 30 -

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

a. Recommendation to banks:

 Bank should over the RBI norms and provided facility as per the norms. But this
is not completely followed by the banks. Some of our respondent’s complaint
that their bank does not give feedback of online transaction in proper time. If
customers do not get proper feedback then their interest in online service will be
reduced. So Bank should take proper steps to build their feedback service.
 Internet banking facilities must be made available in all banks as well as in all
branches.
 There are some cooperative banks in this area and this type of banks field does
not have core banking facilities. For this reason this types of bank losses their
customers. So cooperative banks should be covered under banking system.
 Link failure is a big problem officially in UCO Bank and for this reason the
important business deal has been hampered. Bank should modify their software
immediately.
 Now some banks installed automatic balance update machine to avoid customer
harassment but all banks should accept this system very quickly.
 Banks should develop their service not only in town areas but also in village
areas. Banks should install more and more ATMs in both urban and rural areas.
 There is another problem I faced at the time of conducting the survey that the
respondents complained that there are so many ATMs machines in this locality
but most of the ATM have normally no cash at all. So bank should explain this
service with rural cash filling.
 Banks are now using two factor authorization i.e. password and OTP but they
should improve that and using three factor authorization because hackers
something break the two factor of Rajasthan system.
 - 31 -

b. Recommendation to user:

 Use anti-virus and maintain the integrity of your computer by scanning regularly
for computer virus.
 Keep using the same computer or mobile for online banking email and web
browsing always in log out banking season before checking email or web
browsing. Computer virus today are capable to installing themselves through
email links as well as web sites where just passively moving your mouse over
an image would be enough to install a script that grabs your each online banking
credentials and allows take criminal to settle money from your account. Always
keep your anti-virus software up to date.
 Always use original operating system with of original commercial antivirus
which would be better than crack version for free sample.
 If you are using computer with multiply operating system, you must separately
install antivirus for each OS.
 Do not response to email requesting account information, account verification
for banking Access credential such as username, password, pin code and similar
information.
 Frequently change your password on mind for better protection.
 Last but not the least, some of our respondents shared that they received a phone
call by which a male or female given news that the respondents old lottery 25
laces or a big amount from either their mobile company or somewhere else. But
the fact is this type of caller one customer's bank details for ATM card detail to
send the huge money and some were trapped by it and told them they are very
confidential information and then the scam happened when customer went to
check the bank balance this is there is no balance at all and this is very shocking
news to them. So do not believe such phone call or email otherwise you will be
cheated and looted.
 - 32 -

BLIOGRAPHY

Websites:

 www.google.com
 www.wikipedia.in
 www.rbi.org.in
 www.rbi.in
 www.slideshare.net
 - 33 -

Annexure- IA
Supervisor's Certificate

This is to certify that MR. Shivam prasad a student of B.Com. Honours in Accounting &
Finance of K.K. Das College under the University of Calcutta has worked under my
supervision and guidance for his Project Work and prepared a Project Report with the title of
“THE STUDY OF USAGE ONLINE BANKING” which he is submitting, is his genuine and
original work to the best of my knowledge.

Signature:
Name: Prof. Rinku Saha
Designation: Faculty of commerce
Name of the College: K.K. Das college

Place: Kolkata
Date:
 - 34 -

Annexure- IB
Student's Declaration

I hereby declare that the Project Work with the title “ THE STUDY OF USAGE ONLINE
BANKING” submitted by me for the partial fulfillment of the degree of B.Com. Honors’
in Accounting & Finance the University of Calcutta is my original work and has not been
submitted earlier to any other University for the fulfillment of the requirement for any
course of study.
I also declare that no chapter of this manuscript in whole or in part has been incorporated
in this report from any earlier work done by others or by me. However, extracts of any
literature which has been used for this report has been duly acknowledged providing
details of such literature in the references.

Signature:
Name: Shivam Prasad

College: K.K. Das College

Roll No. : 191054-21-0071

Registration No: 054-1111-0200-19

Place: Kolkata
Date:
 - 35 -

Questionnaire
 Questionnaire:

A. Personal details:

NAME ………………………………………………………………

1. AGE -
[ ] Below 18, [ ] 19 – 39, [ ] 40 – 60, [ ] Above 60
2. GENDER -
[ ] Female, [ ] Male, [ ] Others
3. OCCUPATION -
[ ] Student, [ ] Employee, [ ] Businessman, [ ] Teacher, [ ] Others

B. Project specific:

1. Do you use internet for online banking system?

Yes [ ], No [ ]

2. How frequently do you use online banking service?

Daily [ ], Weekly [ ], Monthly [ ], Yearly [ ], Never [ ]

3. How much do you spend for a single online transaction?

Below Rs. 1000 [ ], Rs. 1001-3000 [ ]

Rs. 3001-10000 [ ], Above Rs. 10000 [ ]

4. In which bank do you have an account?

SBI Bank [ ], Axis Bank [ ], ICICI Bank [ ], Standard chartered Bank [ ], HDFC Bank [

], BOI Bank [ ], PNB Bank [ ], UCO Bank [ ], Others [ ]

5. Do you use debit card?

Yes [ ], No [ ]

6. Do you use E-wallet?

Yes [ ], No [ ]

7. Do you have available of all banking facility online?

 - 36 -

Yes [ ], No [ ]

8. Do you think online banking is better from traditional banking system?

Yes [ ], No [ ], Can't say [ ]

9. Are you aware of the security threats and fraud into online banking?

Yes [ ], No [ ], Can't say [ ],

10. Give your overall rating in online banking service?

Excellent [ ], Good [ ]

Poor [ ], Hard to say [ ]

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