A

PROJECT REPORT

ON

“ DIGITAL BANKING OF YES BANK”

SUBMITTED

To

CENTRE FOR ONLINE LEARNING

Dr. D. Y. PATIL VIDYAPEETH, PUNE

IN PARTIAL FULFILMENT OF DEGREE OF

MASTER OF BUSINESS ADMISTRATION

BY

NILIMA HARISHCHANDRA PAWAR

PRN: 2105020440

BATCH 2021-2023

1
 Dr. D.Y. Patil Vidyapeeth’s
CENTRE FOR ONLINE LEARNING,
Sant Tukaram Nagar, Pune.

CERTIFICATE

This is to certify that Mr. /Ms. Nilima Harishchandra Pawar PRN–2105020440 has completed his/her
internship at QOLLABB starting from___________ to _______________.

His / Her project work was a part of the MBA (ONLINE LEARNING)

The project is on Digital Banking of Yes Bank

Which includes research as well as industry practices. He/ She was very sincere and committed in all tasks.

Course Coordinator Director

_________________ ___________________

Date -

2
 COMPANY LETTER

(TO BE PROVIDED BY THE COMPANY WHERE THE PROJECT WILL BE CARRIED OUT)

To whomsoever it may concern

This is to certify that Mr./ Ms. _Nilima Harishachandra Pawar

PRN – 2105020440 has completed his/her internship at QOLLABB starting from___________ to

_______________.

His / Her project work was a part of the MBA (ONLINE LEARNING)

The project is on _____Digital Banking of Yes Bank

Which includes research as well as industry practices. He/ She was very sincere and committed in all tasks.

Signature & Seal of Industry Guide

3
 DECLARATION BY STUDENT

This is to declare that I have carried out this project work myself in part fulfillment of the M.B.A Program of
Centre for Online Learning of Dr. D.Y. Patil Vidyapeeth’s, Pune – 411018

The work is original, has not been copied from anywhere else, and has not been submitted to any other
University / Institute for an award of any degree / diploma.

Date: - Signature:-

Place: Baramati Name: Nilima. H Pawar

4
 ACKNOWLEDGEMENT

(TO BE GIVEN BY THE SYUDENT)

A Management project is an excellent opportunity learning & self-development. I Consider my-self very lucky
& honored so have so many wonderful people help me in this completion of this project. It is my privilege to
express my gratitude and respect to those who guided and inspired me in the completion of this project

I also want to give thanks to Mr. Salman Sayyad (Branch manager) YES Bank they constantly encouraged
me and showed me the right path from day one till the completion of my project. I also want to give thanks to
our Prof. Bala Krishnan and Mentors for providing me all the support required for successful completion of
my project.

I am grateful tout other faculties, and friends administrative staff and the librarian of D.Y. Patil Institute of
Online Learning and Computer Application, Pune.

Nilima Harishchandra Pawar

5
 INDEX

SR. NO. CONTENT PAGE NO.

1 INTRODUCTION 7

1.1 OBJEVTIVES 9

2 BUSINESS ENVIRONMENT 10

2.1 SWOT ANALYSIS 11

3 COMPANY PROFILE 12
3.1 COMPANY BACKGROUNG 14

4 INTRODUCTION TO CREDIT APPRAISAL 17

4.1 COMPONENTS OF CREDIT APPRAISAL 19

4.2 BANK LOAN 20

4.3 TYPES OF BANK LOAN 20

4.4 HOME LOAN 22

4.5 HOME LOAN PROCEDURE 23

4.6 ELIGIBILTY 29

4.7 PRECAUTION 30

4.8 GENERAL CAUSES OF REJECTION OF 31

PROPOSAL
5 DATA ANALYSIS 32

6
6 RESEARCH METHODOLOGY 37

7 LIMITATION OF THE STUDY 39

8 FINDINGS 41

9 SUGGESTION 43

10 CONCLUSION 45

11 BIBLIOGRAPHY 47

7
 EXECUTIVE SUMMARY

The present paper focuses on digital banking services provided by YES Bank and analyse the perception of
people towards the digital banking services comparing to traditional banking methods. This paper helps in
understanding customer’s attitude towards such modern services provided by banks. The digital banking is an
application that has been developed for a well-established regional bank operating primarily in south India.

In the world of this competitive environment and technological development, the bank has been totally
computerized in the last 4 years, and to increase its customer base has started planning, for a concept called
as digital banking; with this concept the bank wants to move very nearer to the customers and increase its
basic operational strategies. Through digital banking the bank wants to introduce the core concept of IT based
Enabled Services (ITES).

The digital banking services are executed only upon the customer, and these e-banking services would fully
integrate with the core banking solution that is already in usage. The major idea is to provide a series of
services to the customer through the DIGITAL, and make the customer feel flexible in calling out simple tasks
faster instead of making visit to the bank every time. The digital banking service is open only to savings bank.
Customers and not for current account holders.

The customer is privileged to use most of the system only as a viewing phase, the only online transactions the
customer can do are cheque book requisition and fund transfer among his personal accounts.

8
 CHAPTER 1: INTRODUCTION

 Meaning:

Digital Banking is the automation of traditional banking services. Digital banking enables bank’s customers
to access banking products and services via an electronic/online platform.

Digital banking means to digitize all of the banking operations and substitute the bank’s physical presence
with an everlasting online presence, eliminating a consumer’s need to visit a branch.

Digital banking is part of the broader context for the move to online banking, where banking services are
delivered over the DIGITAL.

The shift from traditional to digital banking has been gradual and remains ongoing, and is constituted by
differing degrees of banking service digitization.

Digital banking involves high levels of process automation and web-based services and may include APIs
enabling cross-institutional service composition to deliver banking products and provide transactions.

It provides the ability for users to access financial data through desktop, mobile and ATM services.

A digital bank represents a virtual process that includes online banking and beyond. As an end-to-end
platform, digital banking must encompass the front end that consumers see, back end that bankers see
through their servers and admin control panels and the middleware that connects these nodes.

Ultimately, a digital bank should facilitate all functional levels of banking on all service delivery platforms.
In other words, it should have all the same functions as a head office, branch office, online service, bank
cards, ATM and point-of-sale (POS) machines.

9
Digital banking is the move to online banking where banking services are delivered over the DIGITAL. The
advantages for banks and customers are providing more convenient and faster banking services. The shift from
traditional to digital banking has been gradual and should be rather described in degrees of service digitization
than through a categorization into yes and no. It involves high levels of process automation and web-based
services and may include APIs enabling cross-institutional service composition to deliver banking products
and provide transactions. It provides the ability for users to access financial data through
desktop, mobile and ATM services.

A digital bank represents a virtual process that includes online banking and beyond. As an end-to-end platform,
digital banking must encompass the front end that consumers see, the back end that bankers see through their
servers and admin control panels and the middleware that connects these nodes. Ultimately, a digital bank
should facilitate all functional levels of banking on all service delivery platforms. In other words, it should
have all the same functions as a head office, branch office, online service, bank cards, ATM and point of sale
machines.
The reason digital banking is more than just a mobile or online platform is that it includes middleware
solutions. Middleware is software that bridges operating systems or databases with other applications.
Financial industry departments such as risk management, product development and marketing must also be
included in the middle and back end to truly be considered a complete digital bank. Financial institutions must
be at the forefront of the latest technology to ensure security and compliance with government regulations.

10
Definition: Digital Banking

Digital banking can be defined “as extending the transactional facility to customers by banks through
various secured digital channels by taking care of data security, related risk mitigation and regulatory
aspects by banks themselves.”

This is achieved by integrating online (DIGITAL) and mobile banking services by adoption of latest digital
technologies like analytics, social media, innovative payment solutions and mobile technology with the aim
of exceeding customer expectation, convenience and experience.

Till two decades back, banks had been following physical branch network (brick and mortar) method for
increasing customer base and branch network.

This method involves more expenses by way of rent, maintenance expenses electricity charges etc. Even
after much progress in digital banking, cost to income ratio of many of the banks are in the range of 45-55%.

NEED OF THE STUDY

After conducting a review of researches done by various professionals a gap have been identified.

The researchers had studied the aspects of digital banking, its introduction, its development, adoption by the
customers, consumers perception about this service, its success and security related issues.

But a very few researchers had studied the net banking service with respect to the YES Bank. This gap had
been identified and it handled to the present research being undertaken.

SCOPE OF THE STUDY

The area where the study has been conducted was Meerut.

11
Digital Baking V/s Online Banking

For customers, DIGITAL banking means they can carry out regular banking transactions with fewer visits to
bank branches. Digital banking, on the other hand, includes personalisation methods, which result in
mapping customer preferences and features like chatbots and online support.

Although used interchangeably, digital banking and DIGITAL banking are not the same. DIGITAL banking
is known by a variety of other names such as web banking, net banking, and online banking, which
primarily revolve around front-end customer transactions done using DIGITAL browser on desktop and
mobile devices and on mobile apps. It can be defined as the carrying out of customer banking activities on
an DIGITAL-enabled device.

Now that we have summed up what is DIGITAL banking let us understand what is digital banking. Digital
banking is the broader term which includes but not limited to DIGITAL banking.

12
 Digital Banking products

13
HISTORY OF DIGITAL BANKING-

The earliest forms of digital banking trace back to the advent of ATM machines and cards launched in the
1960s. As the DIGITAL emerged in the 1980s with early broadband, digital networks began to connect
retailers with suppliers and consumers to develop needs for early online catalogues and inventory software
systems.

By the 1990s the DIGITAL emerged and online banking started becoming the norm. The improvement
of broadband and ecommerce systems in the early 2000s led to what resembled the modern digital banking
world today. The proliferation of smartphones through the next decade opened the door for transactions on
the go beyond ATM machines. Over 60% of consumers now use their smartphones as the preferred method
for digital banking.

The challenge for banks is now to facilitate demands that connect vendors with money through channels
determined by the consumer. This dynamic shapes the basis of customer satisfaction, which can be nurtured
with Customer Relationship Management (CRM) software. Therefore, CRM must be integrated into a digital
banking system, since it provides means for banks to directly communicate with their customers.

There is a demand for end-to-end consistency and for services, optimized on convenience and user
experience. The market provides cross platform front ends, enabling purchase decisions based on available
technology such as mobile devices, with a desktop or Smart TV at home. In order for banks to meet
consumer demands, they need to keep focusing on improving digital technology that
provides agility, scalability and efficiency.

14
 EVALUATION & GROWTH OF DIGITAL BANKING IN INDIA

Earlier, when we used to talk about Digital Banking in India, the industry in India was lagging
behind many developing nations. It was due to the increased use of legacy systems, huge costs
of running branches, and outdated technology that could not be upgraded. Since then, India
witnessed gradual yet dynamic growth in Digital banking.

When was the need for Digital Banking in India first realized?

The need for computerization of the banking sector was felt in the late 1980s. Therefore the
Reserve Bank set up a committee in this regard in 1988 headed by Dr. C. Rangarajan.

Banks started using information technology initially with the introduction of standalone
Personal Computers and migrated to Local Area Network connectivity. Then with further

15
evolution, banks adopted the core banking platform. It was when branch banking was changed
to bank banking.

Core banking solution allowed banks to raise the comfort aspect to the customers, and it was
hailed as a promising step towards improving customer convenience through the so-called
“Anywhere and Anytime Banking.”

Thereafter the process of computerization kicked up with the opening of the economy in the
early 90s. A major propeller for this transformation was due to the rising competition from
private and foreign banks. Many commercial banks started adopting digital customer services to
stay competitive.

Are there any challenges that are still a barrier to the growth of Digital Banking in India?
Despite an improving performance in the digital landscape, there are still certain challenges that
obstruct it from achieving its true potential. Some of these challenges are discussed below.

 Security

Arguably one of the biggest concerns while operating in this landscape is Security. Banks are
exposed to external as well as internal security risks. Customers also want to feel secure while
they use digital banking. We recently have heard about banking frauds increase in this nation,
especially since lockdown. Therefore, the regulatory authority must intently work on this aspect
for further growth.

16
  Lack of customer awareness and understanding

There are a number of people who lack the basic knowledge to use this facility in India. Due to
lack of awareness, people using this medium can easily be fooled by cyber criminals. Recently
RBI stressed the need for an increase in customer awareness camps in this regard.

 Fear

People, especially the older generation and people living in rural areas, prefer conventional
banking methods. The fear of losing money during online transactions bars people from using
this mode for transactions.

 Training

Lack of adequate knowledge and skills has been a major deterrent for employees in banks to
deal with innovative and changing technologies in the banking industry. Therefore training on
all levels is essential for the further use of digital technologies in the banking sector.

17
The Future of Digital Banking in India

The wave of digital banking has made banks in India to leverage technology by bringing an
entire bank to your smartphone. With the current pandemic of Covid-19, those who were
reluctant to use digital banking are now forced to do so. Therefore there are chances that this
shift may not be temporary, and we may see more people using this mode of banking in the near
future because of its convenience and streamlined process.

Business analytics and Artificial Intelligence has the potential to bring a colossal change in the
banking landscape. Robotics enabled by Artificial Intelligence is expected to be the future
game-changer for banking industry. Many private banks are contemplating robots for customer
service and for other things. Going forward, digital banking shall be the most preferred form of
banking in India.

18
  Objective of Digital Banking

By offering digital banking facility, banks aim to reduce operational expenses and improve business
opportunities by concentrating on three aspects:

• Establish appropriate conversation with the customer through various touch points
• Anticipate customer demands and offer tailor made solutions
• Ensure customer delight

Physical network of branches and related expenses have been causing a negative impact on the balance sheet
of banks. Now, through digital channels, banks are capturing data and pattern of interactions of customers
with bank.

With the use of analytical framework, the captured data is being converted to useful information and
customers are being offered customer specific products.

Customer specific data is being pushed to physical network too so that they can have face to face interaction
with customers to generate more business thereby improving efficiency and effectiveness of physical
networks.

19
  Difference between Digital Banking and Online banking

More often than not, the terms of digital banking and online banking are used interchangeably. However,
there exists a fine line between the meaning of the terms.

Online Banking deals with everyday essentials, such as checking balances, reviewing transactions, and
transferring funds. This is the core operation of the bank, which is shifted to online presence with the help of
online banking. Online banking is a means to an end.

However, digital banking is an end in itself. Digital banking is aimed at digitizing all the operations of the
bank, core, or non-core. Basically, starting from onboarding of clients to servicing of the accounts, to
closure of accounts is digital banking’s primary objective.

Digital banking’s agenda is to make the physical presence of a bank’s branch redundant for its customers so
that the customers can handle all banking operations from their place of convenience. Therefore, online
banking is a subset of the master set, digital banking.

20
  Benefits of Digital Banking

Advancing to a more technologically sophisticated way of doing things, it goes without saying that the
benefits long outweigh the costs.

Similarly, digital banking as a technological by-product aims to make life easier for the customers of a bank.
Digital banking has the following benefits:

 Digital banking enables consumers to perform banking functions from the comfort of their homes, be
it an elderly person who is tired of waiting in lines or a working-class professional who is caught up
with work, or a regular person who does not want to visit the bank’s branch to run a single errand. It
also offers convenience.

 Elaborating on the convenience offered, digital banking lets a user carry out banking work around
the clock, with 24*7 availability of access to banking functions.

 One of the biggest drawbacks of traditional banking was the overly placed importance on paper.
Banking has become paperless with the development of digital banking as a service. A user can log
into their account at any point in time to monitor records.

 Digital banking allows a user to set up automatic payments for regular utility bills such as
electricity, gas, phone, and credit cards. The customer no longer has to make a conscious effort of
remembering the due dates. The customer can opt for alerts on upcoming payments and outstanding
dues.

 Online shopping has become a cakewalk with payment channels becoming well-integrated with the
online shopping portals. DIGITAL banking has significantly contributed to online payments.

21
 Digital banking extending services to remote areas is seemingly a step toward holistic development.
With smartphones at affordable prices and DIGITAL access in remote areas, the rural population can
make the most out of digital banking services.

 Digital banking-enabled fund transfers reduce the risk of counterfeit currency.

 With the help of digital banking, a user can report and block misplaced credit cards at the click of a
button. This benefit greatly strengthens the privacy and security available to a bank’s customer.

22
  Disadvantages of Digital Banking?

Is digital banking safe? Contrary to popular opinion that digital banking poses security concerns, most
readers will be surprised to know that digital banking is safer as compared to traditional branch banking.

While digital banking forums are prone to vulnerabilities and hacks such as phishing, pharming, identity
theft, and keylogging, banking institutions are investing a lot in their security systems.

Security is at the forefront when considering a service such as digital banking. If security were to be
compromised, banks would lose a crucial selling factor, and more so than risking user data and resources,
banking institutions cannot afford negative publicity.

In a hypothetical scenario where banks do, in fact, lose your money to a hacker, you will be entitled to
receiving the due amount of your bank balance for the sole reason that your money is protected. Therefore,
to avoid massive public liability and bad publicity, banks are bound to invest heavily in reinforcing the
security of digital banking platforms.

However, a digital banking user must do their part by following certain practices that act as a safeguard:

 Follow prompts to change your passwords regularly and keep your passwords confidential.

 Avoid using public networks and devices to access digital banking – if you must use a public device,
remember to clear cache and browsing data. It is good practice to not allow the browser to save your
username and passwords for bank details.

 Banks never ask for confidential information so refrain from sharing it with anyone who asks for it.

 Anti-virus protected systems offer another layer of security to your systems.

23
 The URL address MUST begin with ‘https’, or a padlock must appear next to the website address.
The padlock is a security certificate. The address bar turns green when the site is secured with an
SSL certificated, which is an additional validation for the security of the website. Therefore, use the
bank’s URL and refrain from clicking on other links. Banks generally use minimum SSL/128-bit
encryption.

 Lastly, disconnect from the DIGITAL when the system is left idle.

24
  Types of Digital banking payments

There are various types of digital banking. five of them explain as follows.

Banking cards:

Cards are not only used to withdraw cash but also enable other forms of digital payment. Cards can be used
for online transactions and on Point of Sale (PoS) machines. Prepaid cards can also be issued by the banks;
such cards are not linked to the bank account but function through the money loaded.

Aadhaar Enabled Payment System (AEPS):

AEPS lets the client initiate banking instructions following the successful verification of the Aadhaar
number.

Mobile Wallets:

Mobile wallets have eliminated the need to remember four-digit card pins or enter CVV details or carry
loose cash. Mobile wallets store bank account and card credentials to easily add funds to the wallet and
make payments to other merchants with similar applications.

Popular mobile wallets are Paytm, Freecharge, Mobiwik, etc. Mobile wallets, however, generally have a
limit on how much can be deposited in the wallet.

A small fee may also be charged on depositing the funds from the mobile wallet back into the bank account.

PoS terminals:

Typically, PoS machines are portable devices that read a card to authorize and complete the payment.
Supermarkets and gas stations opt for this method of payment. However, with digital banking thriving, PoS
terminals have evolved into more than physical PoS devices.

Virtual and Mobile PoS terminals have surfaced, which makes use of the mobile phone’s NFC feature and
web-based applications to initiate payment.

25
DIGITAL and Mobile Banking: Commonly known as e-banking, DIGITAL banking refers to obtaining
certain banking services over the DIGITAL, such as fund transfers, and opening and closing accounts.
DIGITAL banking is a subset of digital banking because DIGITAL banking is only limited to core
functions. Similarly, mobile banking is availing banking services through mobile-based application

26
  Future of Digital Banking

As per a Deloitte research report on must-haves for a fully digital bank, each bank striving to become fully
digital require the following as the key drivers for their success

 Option to order currency

 Customizable standing options
 Accounts linked to tax exemptions status
 Card blocking feature
 Innovation toward safety vaults
 Integration with stock market investment channels
 Financial management analytics
 Enable grouping of accounts of different banks
 Easily accessible assistance

A full-fledged replacement of physical branch banking with digital banking right now seems like a far-
fetched dream. Digital banking comes in handy for recurring banking essential functions. However,
customers prefer human interaction for more important and irregular decisions, such as while taking a loan
or negotiating the terms of the loan.

27
 CHAPTER 2: REVIEW OF LITERATURE

Mr. Vijay Prakash Gupta & Dr. P. K. Agarwal (2013) - In their research paper “Comparative Study of
Customer Satisfaction in Public Sector and Private Sector Banks in India”. This paper gives with the
introduction of liberalization policy and RBI's easy norms several private and foreign banks have entered in
Indian banking sector which has given birth to cut throat competition amongst banks for acquiring large
customer base and market share.

Banks have to deal with many customers and render various types of services to its customers and if the
customers are not satisfied with the services provided by the banks then they will defect which will impact
economy as a whole since banking system plays an important role in the economy of a country, also it is
very costly and difficult to recover a dissatisfied customer. Since the competition has grown manifold in the
recent times it has become a herculean task for organizations to build loyalty, the reason being that the
customer of today is spoilt for choice. It has become imperative for both public and private sector banks to
perform to the best of their abilities to retain their customers by catering to their explicit as well as implicit
needs.

Many a times it happens that the banks fail to satisfy their customer which can cause huge losses for banks
and there the need of this study arises. The purpose of this research article is to examine the customer
satisfaction among group of customer towards the public sector& private sector banking industries in India.

Vijay M. Kumbhar (2011)- In his research paper “Factors Affecting the Customer satisfaction In E-
Banking: Some evidences Form Indian Banks”. This study evaluates major factors (i.e. service quality,
brand perception and perceived value) affecting on customers’ satisfaction in e-banking service settings. This
study also evaluates influence of service quality on brand perception, perceived value and satisfaction in e-
banking. Required data was collected through customers’ survey.

For conducting customers’ survey liker scale based questionnaire was developed after review of literature and
discussions with bank managers as well as experts in customer service and marketing. Collected data was
analyzed using principle component (PCA) using SPSS 19.0. A result indicates that, Perceived Value, Brand
Perception, Cost Effectiveness ,Easy to Use, Convenience, Problem Handling, Security/Assurance and
Responsiveness are important factors in customers satisfaction in e-banking it explains 48.30 per cent of
variance.

Contact Facilities, System Availability, Fulfillment, Efficiency and Compensation are comparatively less
important because these dimensions explain 21.70 percent of variance in customers’ satisfaction.
Security/Assurance, Responsiveness, Easy to Use, Cost Effectiveness and Compensation are predictors of
brand perception in e-banking and Fulfillment, Efficiency, Security/Assurance, Responsiveness,
Convenience, Cost Effectiveness, Problem Handling and Compensation are predictors of perceived value in
e-banking.

28
Pooja Malhotra & Balwinder SINGH (2009) - In their research paper “The Impact of DIGITAL Banking
on Bank Performance and Risk: The Indian Experience”. The paper describes the current state of
DIGITAL banking in India and discusses its implications for the Indian banking industry. Particularly, it seeks
to examine the impact of DIGITAL banking on banks’ performance and risk. Using information drawn from
the survey of 85 scheduled commercial bank’s websites, during the period of June 2007, the results show that
nearly 57 percent of the Indian commercial banks are providing transactional DIGITAL banking services.

The univariate analysis indicates that DIGITAL banks are larger banks and have efficiency ratios and
profitability as compared to non-DIGITAL banks. DIGITAL banks rely more heavily on core deposits for
funding than non-DIGITAL banks do. However, the multiple regression results reveal that the profitability
and offering of DIGITAL banking does not have any significant association, on the other hand, DIGITAL
banking has a significant and negative association with risk profile of the banks.

Rajesh Kumar Srivastava (2007) - In his research paper “Customer’s perception on usage of DIGITAL
banking”.This paper present to DIGITAL banking is still at infancy stage in the world. Many studies focused
on usage of DIGITAL banking but many factors on non-usage were overlooked. This research was carried out
to validate the conceptual model of DIGITAL banking. The causes were identified and researched through
correcting the causative factors so that DIGITAL banking can bused by more people.

This will help the banking operations to be more cost effective. The research is focused on what are the
customer’s perceptions about DIGITAL banking and what are the drivers that drive consumers. How
consumers have accepted DIGITAL banking and how to improve the usage rate were the focus of research
area in this study. Qualitative exploratory research using questionnaire was applied. 500 respondents were
selected for study after initial screening.

They were all bank customers. The study revealed that education, gender, income plays an important role in
usage of DIGITAL banking. Not much researches been done on these areas as they were focused more on the
acceptance of technology rather than on people. The research corroborated the conceptual framework stating
that if skills can be upgraded there will be greater will tousle DIGITAL banking by consumers. Inhibitory
factors like trust, gender, education, culture, religion, security, and price can have minimal effect on consumer
mindset towards DIGITAL banking.

Amruth Raj Nippatlapalli (2013) - In his research paper “A Study on Customer Satisfaction of
Commercial Banks: Case Study on State Bank of India”. This paper present Customer satisfaction, a term
frequently used in marketing, is a measure of how products and services supplied by a company meet or
surpass customer expectation. Customer satisfaction is defined as "the number of customers, or percentage of
total customers, whose reported experience with a firm, its products, or its services (ratings) exceeds specified
satisfaction goals."Banking in India originated in the last decades of the 18th century.

The first banks were The General Bank of India, NOW which started in 1786, and Bank of Hindustan, which
started in 1790; both are now defunct. The oldest bank in existence in India is the State Bank of India, which
originated in the Bank of Calcutta in June 1806, which almost immediately became the Bank of Bengal.

29
This was one of the three presidency banks, the other two being the Bank of Bombay and the Bank of Madras,
all three of which were established under charters from the British East India Company. For many years the
Presidency banks acted as quasi-central banks, as did their successors. The three banks merged in 1921 to
form the Imperial Bank of India.

Ms. Nisha Malik & Mr. Chand Prakash Saini (Jul 2013)- In their research titled on “Private Sector Banks
Service Quality and Customer Satisfaction- A Empirical Study two Private Sector Banks”. This research
paper is an effort to examine the relationship between service quality and customer satisfaction of two private
sectors bank of India. Service quality has been described as a form of attitude that results from the comparison
of prospect with recital (Cronin and Taylor, 1992, Parasuraman et al, 1985). Gronroos 1982) argued that
customers, while evaluating the quality of service, compare the service they expect with perceptions of the
services they actually receive.

Since financial products offered by various banks are similar by nature then why any particular bank of product
of any bank is preferred than others a matter of interest for academician as well as banking industry. They
may be difference between customers of public and private sector banks, but why are two banks of one sector
being preferred differently by customers. This research study is an effort to find out the answer of these
questions.

Shaza W. Ezzi (April 2014) - In their research paper titled “A Theoretical Model for DIGITAL Banking:
Beyond Perceived Usefulness and Ease of Use” tried to inquired different types of electronic banking like
ATM’s, telephone banking, and electronic funds transfer, DIGITAL banking like has evolved from
consumers’ needs to have superior access to banking services clear of most banks teller-staffed, normal
operating hours.

Additionally, DIGITAL banking has grown swiftly from the recent and the span increases in ecommerce.
DIGITAL banking (IB) continues to govern the landscape of electronic banking as consumers continue to use
IB to complete schedule banking transactions in addition to conducting on-line sales and purchasing.

This study presents a theoretical model considered to help researchers and practitioners better understand the
acceptance and adoption of DIGITAL Banking. The proposed model maybe particularly useful in developing
nations where consumers are loath to use DIGITAL Banking even when the services are available. However,
a review of several studies that have investigated consumers’ acceptance of DIGITAL banking services from
a multiplicity of perspectives have not reached a clear consensus of the factors that contribute to overall
consumer acceptance and adoption.

The paper concludes with discussions of the managerial implications and avenues for future research.

Kartikeya Bolar (2014) - In their research paper “End-user Acceptance of Technology Interface In
Transaction Based Environment “This paper presents Creators and investors of technology need
information about the customers’ assessment of their technology interface based on the features and various
quality dimensions to make strategic decisions in improving technology interfaces and compete on various

30
quality dimensions. The research study identifies the technology interface dimensions as perceived by the end-
users in a transaction based environment (viz. DIGITAL banking) in India, using exploratory factor analysis.

The influence of these dimensions on the utility of technology interface and hence the usage is examined by
Structural Equation Modeling. The moderating role of user demographics and technology comfort is also
tested. Managerial implications are discussed.

Anil Kumar and Manoj Kumar Dash (2013) - In their research paper “Constructing a Measurement in
Service Quality for Indian Banks: Structural Equation Modeling Approach”.The aim of this paper is to
construct a measure in service quality for Indian banks and establishes a causal relationship of service
attributes performance with customer satisfaction.

The SERVQUAL model is used. The quantification of service quality led to the attempt to construct an index.
The index is constructed using Structural Equation Modeling (SEM) and American Customer Satisfaction
Index (ACSI) as the underlying frameworks. The analysis is based on data of 200 bank customers from the
DelhiNCR.

An adapted ACSI is enhanced and improved to accommodate two exogenous constructs. The results indicate
that service quality variables are important antecedents of customer satisfaction and retention. These
antecedents of service quality have a positive significantly relationship with customer satisfaction. The study
concludes with an analysis of how different dimensions of service quality performance attribute impact on
customer satisfaction and retention.

Such a framework should provide valuable insights to the bank manager to identify key service performance
indicators and to design more effective and efficient marketing and management strategies to satisfy their
customer.

Ankit Kesharwani & Gajulapally Radhakrishna (2013) - In their research paper “Drivers and Inhibitors
of DIGITAL Banking Adoption in India”. This paper research on different banks is on condition that e-
banking services, as this would revolutionize their profits. Since DIGITAL banking in India is still in its
nascent stage, it is essential for e-banking institutions to enhance reception and usage of DIGITAL as a
banking channel by their customers.

This paper has reviewed the most of seminal studies in the area of diffusion of innovation and makes an
attempt to do an experimental research that looked into the factors that drives and inhibits DIGITAL banking
usage in India. An investigative factor analysis followed by a positive factor analysis has been applied on 362
DIGITAL banking users. Findings resulted in seven factors – perceived benefit, hacking and fraud risk,
performance risk, computer selfefficacy, technology intricacy, social influence, and pricing concerns.

The results suggest that acceptance and usage of DIGITAL banking services can turn into a fundamental
concern for future research, as the drivers overcoming the inhibitors over time at an influencing rate.
Moreover, this study also compares the findings with extant diffusion of innovation literature and identified
several additional factors that can affect DIGITAL banking adoption in India.

31
SWOT ANALYSIS OF YES BANK

1. Strengths in the SWOT analysis of YES

YES bank is the second largest private banking sector in India having 2,201 branches and 7,110 ATM’s.

YES bank is located in 1,174 cities in India and has more than 800 locations to serve customers through
Telephone banking.

The bank’s ATM card is compatible with all domestic and international Visa/Master card, Visa
Electron/ Maestro, Plus/cirus and American Express. This is one reason for YES cards to be the most
preferred card for shopping and online transactions.

YES bank has the high degree of customer satisfaction when compared to other private banks.

The attrition rate in YES is low and it is one of the best places to work in private banking sector.

YES has lots of awards and recognition, it has received ‘Best Bank’ award from various financial rating
institutions like Dun and Bradstreet, Financial express, Euromoney awards for excellence, Finance Asia
country awards etc.

YES has good financial advisors in terms of guiding customers towards right investments.

2. Weaknesses in the SWOT analysis of YES

YES bank doesn’t have strong presence in Rural areas, where as ICICI bank its direct competitor is
expanding in rural market.

YES cannot enjoy first mover advantage in rural areas. Rural people are hard core loyals in terms of
banking services.

YES lacks in aggressive marketing strategies like ICICI.

The bank focuses mostly on high end clients.

Some of the bank’s product categories lack in performance and doesn’t have reach in the market.

The share prices of YES are often fluctuating causing uncertainty for the investors.

32
 3. Opportunities in the SWOT analysis of YES

YES bank has better asset quality parameters over government banks, hence the profit growth is likely to
increase.

The companies in large and SME are growing at very fast pace. YES has good reputation in terms of
maintaining corporate salary accounts.

YES bank has improved it’s bad debts portfolio and the recovery of bad debts are high when compared to
government banks.

YES has very good opportunities in abroad.

Greater scope for acquisitions and strategic alliances due to strong financial position.

4. Threats in the SWOT analysis of YES

YES’s nonperforming assets (NPA) increased from 0.18 % to 0.20%. Though it is a slight variation it’s not a
good sign for the financial health of the bank.

The non-banking financial companies and new age banks are increasing in India.

The YES is not able to expand its market share as ICICI imposes major threat.

The government banks are trying to modernize to compete with private banks.

RBI has opened up to 74% for foreign banks to invest in Indian market.

33
 3.1 COMPANY PROFILE

NAME: YES Bank

ADDRESS: SHOP NO. 2 GROUND FLOOR, SANGHVI TOWNSHIP, BHIGWAN ROAD, BARAMATI,
MAHARASHTRA-413102

TAG LINE: Experience our expertise

Type : Public

Industry : Banking and Financial Services

Founded : 2004

Founder : Rana Kapoor and Late Ashok Kapur

Headquarters : Mumbai, India

Products : Banking and Financial Services

Website : www.yesbank.in

VISION:

“Building the Finest Quality Large Bank of the World in India. Committed to trust and deliver an
exceptional banking experience”

MISSION:

“To establish a high-quality, customer-centric, service-driven, private Indian Bank catering to the ‘Future
Businesses of India”
Services of Digital Banking which provide YES Bank
Digital Banking of YES Bank – Easy Comfort & Convenient

34
  How can I do Digital Banking of YES Bank?

For any individual to do digital banking in India, you need to first open a checking or savings account with
the bank. This can be done by visiting the branch in person, or by using the online account opening options
on bank websites where you just have to upload a few documents from the comfort of your home.

Once you have an account ready with a bank, most banks will provide you with your digital banking
credentials which can be used to do seamless transactions 24*7. If you do not receive your credentials in the
welcome kit, you can always contact your bank to provide net banking free of cost.

To create a digital banking account in India, the individual must:

 Be over 18 years of age

 Have both PAN and Aadhaar Card
 Complete KYC, i.e., paper-based verification of details within twelve months of opening the digital
bank account. Failure to comply with the norm will take away the individual’s right to open a digital
bank account with the same Aadhaar and PAN in the future

As an improvisation to physical verification for KYC, the market regulator may allow video-based
verification in the future to improve the process from a digital point of view.

35
Digital Banking Services of YES Bank

1) MOBILE SOLUTIONS: Now enjoy the convenience of banking on your mobile wherever you
go!

YES Mobile is YES BANK’s mobile banking application. The new YES Mobile comes packed with a host of
exciting features that enable you to truly bank On-The-Go.

36
Want to simply login through your fingerprint, transfer funds, pay all your bills in one go or experience the
all new augmented reality to locate us? Install YES Mobile and Get- Set- GO!

What’s more, we have built the blocks to connect your wearables to the DIGITAL of Things!
Get YES Mobile Banking App with over 100 Services anytime, anywhere!

1. Once you have downloaded the YES Mobile app from Google Play Store or iOS App Store,
you need to follow a simple 3-step registration process.

2. Tap on Login and authenticate yourself using one of the following credentials:
Retail Net Banking Login ID and Password
Or
Customer ID, Debit Card Number and PIN
Or
Credit Card Number, Expiry Date and Date of Birth
Or
Aadhaar Information – Aadhaar Number, Date of Birth and Customer ID

37
 3. Post successful authentication of your credentials, an outward SMS will be sent from the
mobile number registered with the bank.

4. Once successfully verified, you will be asked to set 6-digit MPIN (for YES Mobile app login and
for authorizing transactions)

If you are using an Android or iOS device having a biometric feature, you can also set fingerprint/ FaceID
authorization for quick, easy and safe login to the app after setting the MPIN

Now you are successfully registered for YES Mobile application. Kindly re-login into the app using newly
created MPIN or your registered fingerprint/ Face ID

38
 2) YES ROBOT:

YES ROBOT is your 24*7 Personal Banking Chat Assistant. Just open Facebook Messenger on your mobile
phone, search for YES ROBOT and start chatting. You can also interact with YES ROBOT on the website
by clicking on the icon at the bottom right of the screen.

You can check balance, recent transactions, send money, recharge your phone, pay your bills, book FD/RD,
check loan eligibility, manage credit card, hotlist debit card and apply for 30+YES BANK services on YES
ROBOT.

39
 3) WHATSAPP BANKING

YES BANK has always endeavored to provide quality services to all our customers and has ensured
customized banking solutions for each individual.

In line with our promise to provide you with uninterrupted banking services, YES BANK is now introducing
WhatsApp banking. You can now avail a host of banking services easily on WhatsApp a faster, convenient,
and secure platform to manage your banking service needs from the comfort and safety of your home.

Simply chat with India’s 1st ever AI-enabled 24*7 personal banking assistant, powered by YES ROBOT.

40
How To Apply Whatsapp Banking Services:
Give a missed call on +91-829-120-1200 to receive an SMS with a link. Simply click on the link and enjoy
WhatsApp Banking.

Add +91-829-120-1200 to your contacts, open WhatsApp Application and Say ‘Hi’ or type any query in the
chat window to get started

By starting a conversation on above contact number would mean you are adhering to the Terms & Conditions.

41
 4) ONLINE BANKING:

YES BANK offers state-of-the-art DIGITAL banking facilities to bank in a secure and convenient way
skipping the hassle of long queues or delays from the location of your choice.

42
YES Online is an DIGITAL-powered banking solution to serve you anytime, anywhere. From paying bills to
updating contact information, from recharges to cheque book requests, YES Online provides you with a host
of banking services that you can conveniently avail from the comfort of your home or office.

43
SECURITY FEATURES:
At YES BANK making your online banking secure is our top priority. It is our constant endeavor to take
best security measures to ensure a safe and secured experience, which include the below features:

 Single Access Key: Our revolutionary technology allows you to access your account using debit
card PIN. Just log on to our website, select DIGITAL Banking services and key in your
Customer ID and debit card PIN. On successful validation you will be allowed to select an
DIGITAL password.

 Two Factor Authentication: Our Two Factor Authentication system allows generation of "One
Time Passwords" for DIGITAL Banking transaction authentication which is delivered via SMS
Or IVR to your Mobile Phone. This password enhances security of your Net Banking and allows
you the freedom of banking online without the need to remember multiple passwords.

44
 128 bit SSL Encryption: A high level of encryption standard is used for all our Net Banking
transactions. This ensures the information exchanged between you and the Bank is completely
secure

 YES Alerts: Receive e-mail or SMS alerts on all your banking transactions, keeping you
updated on any activities happening in your account

 Security Tips:

 Do not access Net Banking from shared or unprotected computers in public places

 Do not share OTP with anyone, even if the person claims to be a YES BANK official

 Do not close your browser while transacting on Net Banking

 Set up either email or SMS alerts on your Net Banking account for all transactions

 Log into your Retail Net Banking account at least once in a month

 Please report a suspicious mail SMS alert or phone call

to fraudreport@yesbank.in immediately

45
 5. BILL PAYMENTS:

YES BANK's Online Bill Payments facility is a convenient service for receiving and paying your bills
online.
You can now view and pay your bills online, directly from your YES BANK account at any time. This service
is available in various cities across the country, for payments to billers who accept online payments.

46
 6. YES PAY:

YES PAY is a Mobile Application of enabling users to register seamlessly and then spend wisely.

Application offers a free prepaid wallet, a virtual card linked to wallet for online transactions, Unified Payment
Interface (UPI) registration and management, YES BANK Credit Card Management, Gift Card Management,
etc.

In addition, it provides a host of facilities like Mobile recharge, purchase of vouchers and coupons.
To register for YES PAY one does not need to be a YES BANK customer.

47
 7. BHARAT QR:

Bharat QR has been developed as part of the Digital India Initiative. Bharat QR allows the customers to make
payments using their smart phones by scanning Quick Response (QR) code at merchants’ location giving them
a smooth experience of ‘Scan and Pay’.

Bharat QR is a QR based payment solution which represent a new channel of initiating & accepting payment
between buyers & sellers or consumers & merchants using the mobile App.

This solution has been jointly set up by NPCI, Visa master card where payment can be completed by simply
scanning a Quick response.

Transaction of Bharat QR can be completed via YES PAY App using Bank credit/ Debit cards Yes Bank
account.

48
8) YES MSME MOBILE

YES bank’s digital banking suite includes the YES MSME solution which enables small business owners to
view and take complete control of their business finances from a single place, even when they are on the
move.

YES MSME is an industry-first solution which provides a single interface for all multiple banking needs of
MSMEs, including cash flow management, credit limits and utilization, credit document submission, bulk
payments etc.

49
In addition to the usual banking transactions that MSMEs were able to earlier perform online, the new digital
banking solution from YES BANK allows them to interact deeply with multiple banking solutions through a
single interface right from accessing and transacting through Current & Savings Accounts at one place,

Getting a consolidated view of all loan relationships, tracking Bank Guarantees (BGs) and Letters of
Credit(LCs), submitting Stock/debtor statements to raising service requests and managing Employees’
Salaries. YES BANK’s novel digital solution is a sophisticated yet simple to use application and takes care of
MSMEs’ everyday financial operations with ease.

50
 8. SAMSUNG PAY:

Samsung Pay is a mobile device-based payment service by Samsung India Electronics. Samsung Pay
provides a safe and simple way to pay almost everywhere, you can swipe or tap any YES BANK Credit
Card, making merchant payments easier and more convenient than ever

What is Samsung Pay?

Samsung India Electronics has developed a mobile device based payment service called Samsung Pay. This
service allows you to make secure payments at retail stores using your YES BANK Credit Card. The feature
lets you tap your Samsung phone at almost any merchant terminal* and make the payment through your
YES BANK Credit Card which is linked to this mobile application.

You can perform Magnetic Secure Transmission (MST) and Near Field Communication (NFC) transactions
using Samsung Pay. This facilitates contactless payments, offering a simple and convenient payment
experience. The Samsung Pay is a widely accepted mobile payment service.

51
*Samsung Pay currently allows transactions only on Point of Sales (POS) terminals; Online and ATM
transactions cannot be performed. To know more about Samsung Pay click here.

How can you register your YES BANK Credit Card with Samsung Pay?

You can register your YES BANK Credit Card with Samsung Pay in just few simple steps:

Ensure that your device is updated with the latest OS and Samsung Pay icon is showing on your phone

Tap on Samsung Pay icon and Launch Samsung Pay

Use your Samsung Account ID and Password to sign in. In case you don't have your Samsung Account ID
then please sign up using the instructions shown on the screen.

Once the account is set up, tap on the Samsung Pay icon and tap on ‘Use Fingerprint’ button to register your
fingerprint. You can also set up Samsung Pay Pin for payment Authentication

You are now ready to register your YES BANK Credit Card

Tap ‘Add’ to add your YES BANK Credit Card

The device camera opens to auto-read your Credit Card details. You can also enter the details manually

You will receive an OTP via SMS to verify your identity

How can you make a payment using Samsung Pay?

Now that you've added your card, it's simple to use Samsung Pay. Swipe up on your phone screen to activate
Samsung Pay and hold your device near the merchant’s terminal.

Please note:

Samsung Pay works at any retailer where you would normally swipe or tap your card
Hold your device near a terminal and authorize the transaction on your phone with a fingerprint or PIN
All Non-NFC transactions regardless of transaction amount and NFC transactions^ above INR 5000 will
need the card PIN to be entered
NFC transactions^ below INR 5000 do not need any PIN *
*As per current RBI guidelines

^Transactions done on an NFC/Contactless merchant terminal

52
9. DIGITAL PAYMENT GATEWAY

Payment gateway is an online payments’ service that, when integrated with the e-commerce platform, is
devised as the channel to make and receive payments. It is the simplest way for a business to collect digital
or online payments from their website or app.

 YES bank DIGITAL Payment Gateway Solution offers range of payment option which allows
you to accept payments on a 24 X 7 basis from around the world. We accept all local and
international Visa, MasterCard / maestro and Rupay cards.

 We excel in making electronics payment acceptance easy, secure, reliable and available across
categories of merchants and business segments

 Built on robust technology, provides scalability in for handling large transaction volumes.

53
 All transactions come with 128 bit security and two factor authentication via MasterCard Secure
Code and Verified-by-Visa authentication.

 As a Merchant, availing of online card acceptance facilities can increase the scope of your
business tremendously and enable you to reach a higher customer base without geographical or
time related boundaries.

54
10 YES Digitale

A Quick Digital Guide for our Customers' Convenience, understanding, clarity etc about each digital services which
YES bank provided to its valuable customer.

Every thing related to login. Teams & conditions, validation etc are mentioned in this manual. A Quick Digital
Guide provide every thing in details.

55
11 POSITIVE PAY

What is Positive Pay

Positive Pay allows reconfirmation of cheque details once a cheque has been issued. Customers have to
provide the basic details of cheque like Account number, Date of cheque, Cheque number etc.
on www.yesbank.in

When the beneficiary submits the cheque for encashment, details of the cheque are validated against the details
filled by customer on positive pay portal and hence acting as additional layer of security.
Any discrepancy is flagged by CTS to both drawee and presenting bank and the same will be referred to the
customer for validation

56
Eligibility
YES Bank Customers issuing cheques of any amount which are deposited by beneficiary through other
banks can do a positive pay via YES Service Portal

Cheque Details Required:

 Account Number
 Cheque Number
 Payee Name
 Cheque Amount
 Cheque date
 Transaction Code
 MICR Code
 Short Account Number

Terms & Conditions:

 It is advised to fill positive pay at the time of issuance of cheques. Cheques already cleared
before doing positive pay will not be validated
 To enable validation through Positive Pay, cheque details should be available with the bank a day
prior to cheque presentation date
 Availing of Positive Pay solution is at the discretion of customers. It is, however, recommended
that customers avail this facility for all cheques valued Rs 5,00,000 and above
 Cheques wherein there is a mismatch between Positive Pay information and actual cheque
received for clearing would be referred to the customers ( Direct Rejection of cheque will not
happen)
 Cheques updated on Positive Pay may still be rejected due to signature mismatch
 Positive pay can be done only once for a cheque
 Positive pay is currently valid only for cheques deposited in Non- YES Bank accounts.
Currently, YES Bank cheques cleared through YES bank branches will not be validated for
positive pay
 Only cheques that are compliant with the Positive Pay system will be accepted under RBI dispute
resolution mechanism between the presenting and paying banks
 In case of non-individual entities any one of the authorized signatories can submit a Positive Pay
request for a cheque issued from the account

57
 CHAPTER 3: RESEARCH AND METHODOLOGY

Research methodology is a systematic approach in management research to achieve defined objectives. It

helps a researcher to guide during the course of research work. The objectives of research is systematic and
in-depth study or search for any particular topic, subject of area of investigation, backed by the collection,
completion, presentation and interpretation of relevant details of data.

 Primary Data
The first hand information bearing or any research, which has been collected by the researcher
may be called “Primary Data”. Collecting information various with the help of records of the
bank. Observations, discussion with the staff.

 Secondary Data
Secondary data are those, which have already been collected by someone else. The source of
secondary data for this project has been website, book, documents YES Bank.

Research is a common parlance which refers to search for knowledge. It is a procedure of logical and
systematic application of the fundamentals of science to the general and overall questions of a study and
scientific technique, which provide precise tools, specific procedures, and technical rather philosophical
means for getting and ordering the data prior to their logical analysis and manipulating different type of
research designs is available depending upon the nature of research project, availability of manpower and
circumstances.

This case is based on the analysis of the recent trends, opportunity & challenges in the baking with the help
of secondary data collection. Thus, the resource of data are reported on trends & process of banking in India.
& the report on payment system indicators publish by Reserve Bank of India (RBI), Mumbai for the FY
2016-17.

The digital banking trends studies in the paper are: Automated Teller Machine (ATM), Retails Electronics
Clearing services, National Electronic Fund Transfer (NEFT) , Immediate Payment Services (IMPS).

Plastic Money: Credit card, Debit card, prepaid payment, PPI cards, Monile Banking: Point of sale, United
Payment Interface(UPI), Bharat Interface for money.

58
4.1 RESEARCH DESIGN-A research design is the arrangement of conditions for collection and analysis of
data in a manner that aims to combine relevance to the research purpose with economy in procedure. In fact,
the research design is the conceptual structure within which research is conducted. This research was
descriptive in nature.

Descriptive research:The research undertaken is a descriptive research as it was concerned with specific
predictions, with narration of facts and characteristics concerning net banking service provided by Yes Bank.

4.2. SAMPLING DESIGN-The following factors have been decided within the scope of sample design:

4.2.1 Universe of study: Universe of the study means all the persons who are the customers of Yes Bank in
the world.

Theoretical: It covered all the individuals who are the customers of Yes Bank in the world.

Accessible: It covered all the individuals who are the customers of yes Bank in India who are within our reach.
In this study accessible population was customers of yes Bank in India.

4.2.2 Sample Size: A sample of minimum respondents was selected from various areas of Meerut. An effort
was made to select respondents evenly. The survey was carried out on respondents.

4.2.3 Sample Unit: In this project sampling unit consisted of the various individuals who had their bank
accounts with Yes Bank.

4.2.4 Sampling Technique: For the purpose of research convenient sampling technique was used.

4.2.5 Sampling Frame: It consisted of various sources from where information about the respondent is
extracted. Mainly personal links and employees of Yes Bank, Meerut are used for getting information about
the respondents.

59
 CHAPTER 4: DATA ANALYSIS

4.3.2.1 Tools of Presentation:It means what all tools are used to present the data in a meaningful way so that
it becomes easily understandable. In this research tables and graphs were used for presenting the data.

4.3.2.2 Tools of Analysis: In this research the tools of analysis used were percentages. SPSS software were
used to conduct Friedman Anova , Reliability analysis, Factor Analysis and Hypothesis Testing

DATA ANALYSIS AND INTERPRETATION

DEMOGRAPHIC PROFILE OF THE RESPONDENTS

DEMOGRAPHICS NO. OF RESPONDENTS PERCENTAGE OF

RESPONDENTS
1.GENDER:
Male 94 47%
Female 106 53%
TOTAL 200 100%
2.AGE:
18-28 Years 53 26.5%
28-38 Years 90 45%
38-48 Years 51 25.5%
Above 48 Years 06 3%
TOTAL 200 100%
3.EMPLOYMENT:
Student 24 12%
Business 80 40%
Professional 09 4.5%
Service 82 41%
Other 05 2.5%
TOTAL 200 100%
4.ANNUAL INCOME:
Upto 1,00,000 40 20%
1,00,000-3,00,000 83 41.5%
3,00,000-5,00,000 66 33%
Above 5,00,000 11 5.5%
TOTAL 200 100%
5.EDUCATION:
Illiterate 0 0%
High School 59 29.5%
Intermediate 25 12.5%
Graduate 86 43%
Post Graduate 30 15%
TOTAL 200 100%

60
ANALYSIS AND INTERPRETATION-

From the data collected it was found majority of respondents that is 53% of them are females. About 26.5%
of the customers belonged to the age of 18-28 years. It was found that majority of customers belonged to
service class followed by business class. It was found that majority of the respondents fell between the income
group of 1,00,000-3,00,000 followed by income group between 3,00,000-5,00,000.It was found that the
majority of respondents were graduates.Thus it can be concluded that the majority of the respondents were
knowledgeable and were well informed about the banking services.

6. Use DIGITAL banking over traditional banking methods

OPTIONS NO. OF RESPONDENTS PERCENTAGE OF

RESPONDENTS
YES 125 62.5%

NO 75 37.5%

TOTAL 200 100%

ANALYSIS AND INTERPRETATION-

It is found that 62.5% of respondents prefer DIGITAL banking over traditional banking methods. Thus it can
be concluded that more than 50% of people like to use net banking services provided by YES Bank.

7. For how many years you are using digital banking?

OPTIONS NO. OF RESPONDENTS PERCENTAGE OF

RESPONDENTS
Less than 1 year 45 20%
1-5 years 106 53%
5-10 years 45 25%
10-15 years 3 1.5%
Above 15 years 1 0.5%
TOTAL 200 100%

61
ANALYSIS AND INTERPRETATION-

From the data collected, it is found that about 53% of people are using digital banking from 1-5 years followed
by people who are using net banking from 5-10 years.

8. Which category of the banks do you consider as most technologically advanced?

OPTIONS NO. OF RESPONDENTS PERCENTAGE OF

RESPONDENTS
Public sector banks 87 43.5%
Private sector banks 113 56.5%
TOTAL 200 100%

ANALYSIS AND INTERPRETATION-

According to the data collected, it is found that 56.5% of respondents consider private sector banks as most
technologically advanced as compare to public sector banks.

9. Are you aware that the bank provides you free phone banking & net banking services if you open a new
savings account with H.D.F.C bank?

OPTIONS NO. OF RESPONDENTS PERCENTAGE OF

RESPONDENTS
YES 186 93%
NO 14 7%
TOTAL 200 100%

ANALYSIS AND INTERPRETATION-

According to the data collected, it is found that about 93% of people are aware that the bank provides free
phone banking and net banking services if you open a new savings account with H.D.F.C Bank.Thus it is
found that majority of customers are well informed about free phone banking & net banking services.

10. Which factor promotes you to use the new techniques in banking?

OPTIONS PERCENTAGE OF PERCENTAGE OF

RESPONDENTS WHO RESPONDENTS WHO DO
USE NOT USE
Reduced time of transactions 86% 14%

Cost Effectiveness 80% 20%

Door Step Banking 80% 20%

Technology savvy 53% 47%

62
ANALYSIS AND INTERPRETATION-

According to the data collected, it is found that 47% of customers believe that technology savvy is one of the
most crucial factor which promotes the customers to use the new techniques of banking followed by cost
effectiveness, door step banking and reduced time of transactions.

11. Which DIGITAL banking services do you use?

OPTIONS NO. OF PERCENTAGE OF

RESPONDENTS RESPONDENTS WHO USE
Connected to the DIGITAL at home or 15 7.3%
work to do their financial transactions
Uses E – mail 30 14.45%
ATM / Debit card service 36 18.1%
Credit card service 33 15.8%
Online banking services 24 12.9%
E – payments 34 17.2%
Electronic Fund Transfer 28 14.15%
(EFTs)/NEFT/RTGS

ANALYSIS AND INTERPRETATION-

From the data collected, it is found that 18.1% of the respondents use ATM/Debit card service followed by E-
payments, Credit card service and so on.

12. How frequently do you use the following banking services per month?

OPTIONS NIL 1-4TIMES 4-8TIMES 8-12TIMES 12&ABOVE

ATM 3% 17% 52% 21% 7%

DIGITAL Banking 1% 34% 51% 10% 3%

Phone Banking 8% 41% 39% 11% 1%

Mobile Banking 6% 46% 32% 14.5% 1.5%

SMS Banking 6.5% 22% 53% 15.5% 3%

63
ANALYSIS AND INTERPRETATION-

According to the data collected, it is found that 52% of people use ATM services provided by the bank atleast
4-8 times per month, 51% of people are using DIGITAL banking 4-8 times in a month, 41% of people are

using phone banking 1-4 times in a month, 46% of people are using mobile banking 1-4 times in a month and
53% of people are using SMS Banking 4-8 times in a month.

13. Satisfaction on technology usage.

OPTIONS EXTREMEL DISSATISFIED NEUTRAL SATISFIED EXTREMEL

Y Y
DISSATISFI SATISFIED
ED
ATMs are 0% 0.5% 2.5% 64.5% 32.5%
conveniently located.
Accounts information 0.5% 1% 4% 68.5% 26%
and balance enquiry.
Account to account 0.5% 4.5% 6.5% 47.5% 41%
transfer.
Transaction status 1.5% 4.5% 7.5% 37% 49.5%

Statement Request 1.5% 5% 8.5% 49% 36%

SMS alerts about 2.5% 3.5% 6% 56.5% 31.5%

specific information
to the bank services /
new products.
The charges that the 2.5% 5.5% 7.5% 50.5% 34%
bank collects from
you are reasonable
when compared to
other banks.

ANALYSIS AND INTERPRETATION-

According to data collected, it is found that 64.5% of respondents are satisfied that ATMs are conveniently
located.68.5% are satisfied after knowing their accounts information and balance enquiry.

47.5% are satisfied on account to account transfer.49.5% people are extremely satisfied for their transaction
status.49% people are satisfied on statement request.56.5% are satisfied for SMS alerts about specific
information to the bank services / new products.50.5% people are satisfied for the charges that the bank
collects from you are reasonable when compared to other banks.
64
14. Problems of technology usage

OPTIONS OFTEN RARELY NEVER

Machine out of cash. 9% 10.5% 80.5%
Long waiting time in queues. 5.5% 41.5% 53%
DIGITAL banking can be tampered with by others. 20% 46% 34%
Lack of security in transactions. 9% 67% 24%
Too many steps in processing transaction. 13.5% 25.5% 61%

ANALYSIS AND INTERPRETATION-According to the research, 80.5% respondents think that ATM
machines never go out of cash. 53% of respondents think that they do not have to wait in long queues. 46%
respondents think that rarely DIGITAL banking can be tampered with by others.67% of respondents think that
rarely there is lack of security in transactions.61% of respondents think that they do not have to follow to
many steps in processing transactions.

15. What online banking operations do you use the most?

OPTIONS VISITING PHONE ONLINE OTHER

BRANCH BANKING BANKING
Pay Bills 8.5% 5.5% 84.5% 1.5%
Consult balance/bank 5.5% 24% 69% 1.5%
statements
Print bank slip or statement 28.5% 28% 42% 1.5%
Open an account 95.5% 1.5% 1.5% 1.5%
Bank transfer 12.5% 20.5% 64.5% 2.5%
Investments/Savings 16% 26.5% 53.5% 4%
Shopping 16% 22.5% 58.5% 3%
Insurance 85% 8.5% 3% 3.5%
Loans and Mortgages 23% 32.5% 40.5% 4%
Contact your bank advisor 70% 10% 10% 10%

65
ANALYSIS AND INTERPRETATION-

According to the research, 84.5% of people pay bills online,69% people consult balance and bank statements
using online banking,42% people print bank statement,95.5% people open an account by visiting
branch,64.5% people use online banking for bank transfer,53.5% use online banking for investments and
savings,58.5% people do shopping using online shopping,85% do insurance by visiting branch,40.5% people
take loans and mortgages using online banking,70% people visit branch to contact the bank advisor.

16. Degree of trustworthiness from the service via DIGITAL banking comparatively to service via real
banking.

66
 CHAPTER 5: LIMITATIONS OF THE STUDY

The following were the limitations of the study:

1. The study was related to yes bank only hence other bank’s digital services are not consider in this
project.
2. Officers were busy in their busy schedule. So it was difficult to get the required data at time.
3. The study is based on the past data and may not be true indicators of future performance.
4. As the project was restricted for the period of two months, hence the data obtained may not be sufficient
for interpretation.

5. In this research project a sample survey wasconducted. A sample of 100 respondents was selected. So
such sample size cannot be said to be the true representative of the universe.

6. The time period of study was very limited. It is very difficult tohave in detail study on project work
due to limited time period. The period of 4 to6 weeks is not enough for the proper study of the project.

7. The lack of scientific training in methodology of research was great impediment in our research
program, which led to the delay of research

67
 CHAPTER 6: FINDINGS

1. Digital Banking services of YES Bank are very Easy, Safe & convenient to use with allthe securities.

2. Almost 75% to 80% customers of YES Bank use Digital Banking services.

3. Verification and valuation process are strictly followed with the help of panel expertise.

4. YES Bank follows the guideline of RBI.

5. YES Bank doesn’t have any hidden charges or hidden fees.

6. The majority of the respondents accessed bank branch for opening account.

7. The majority of the respondents have been YES BANK’s customers for more than 10 years.
8.The majority of the respondents have availed the net banking service.
9 The majority of the respondents regarded that the most important reason for which net banking service is
not being popularly used was that it does not offer.
10.The majority of the respondents felt that the net banking service was better than traditional banking.
11.The majority of the respondents used the net banking services provided by YES Bank to view the
accounts and balances.
12. The majority of the respondents have been YES’s Bank customers for more than 10 years.

68
 CHAPTER 7: SUGGESTIONS

1. Yes Bank manuals should be designed in simple language as various technical terms are difficult to
understand

2. The process of Use of DIGITAL banking, Mobile banking etc should be explained to the customer in detail
to avoid the unnecessary time consumption.

3. Bank should strictly follow RBI guideline.

4. Bank should take necessary steps to create awareness among the rural people about the advantage of digital
banking

5. Every transaction through Mobile baking, DIGITAL baking should confirm with mobile OTP for safer side.

6. The bank should take steps to create a trust in mind of customers towards security of their accounts.

7. The bank should make a effort to provide a platform from where the customers can access different
accounts at single time without extra charge.

8. Effective awareness campaigns should be undertaken by the banks to make their customers more aware of
net banking service

69
 CHAPTER 8: CONCLUSION

Electronic banking which is the modern technology which is offered by the banks to their customers so that
they can conveniently conduct their banking transaction at a time that suits then and can access their 24
hours a day 7 days a week. Latest & better ways of customers service are essentials for the growth of bank
for the banking system s a whole.

The effects of e banking on world wide baking system is to augment or facilitate existing banking &
payment mechanisms, primarily by making transaction cheaper faster more secure.

And more convenient moreover the growth of informational technologies in the world has been phenomenal
as well because of these technologies bank is able to reach their customers anywhere at any time compare to
banks abords India banks offering online services still have a long way to go for online banking to reach
critical mass

There has to be sufficient number of user and the sufficient infrastructure to in place so as to develop the
concept of digital banking in the Indian market, which is gradually being accepted by the people of the
country as a whole.

70
 BIBLIOGRAPHY

International Journal of Social Science & Interdisciplinary Research, ISSN 2277 -3630 IJSSIR, Vol. 2 (8),
AUGUST (2013)

Rajesh Kumar Srivastava (2007). Customer's Perception on Usage of Digital Banking. Innovative Marketing,
3(4)

“Factors Affecting On Customers' Satisfaction In digital Banking: Some Evidences Form Indian Banks,"
Management Research and Practice, Research Centre in Public Administration and Public Services,
Bucharest, Romania, vol. 3(4), pages 1-14, December.

1) Books:

A text book of research methodology (C. R. Kothari)

Agrawal G & Jain Digital financial inclusion in India

2) User Manual:

YES Bank user manuals

3) Websites:

www.yes.in

71