A STUDY ON AWARNESS ABOUT E-BANKING ON MAHENDRANAGAR

RESIDENTS

Submitted By
Prateeva Bhandari
Exam Roll No.: 788279
FW.U. Regd. No.: MG-2018-1-1-4412

Submitted To

Far western University

Faculty of Management

In the partial fulfillment of the requirements of

Bachelor of Business Administration (BBA) Degree in Far western University
Bheemdutta-18, Kanchanpur
July 2022
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STUDENT DECLARATION

This is to certify that I have completed the Project entitled “A Study on Awareness About E-
Banking on Mahendranagar Residents” under the guidance of “Associate Prof. Mr. Deepak
Prasad Joshi” in partial fulfillment of the requirements for the degree of Bachelor of Business
Administration at Faculty of Management, Far Western University. This is my original work
and I have not submitted it earlier elsewhere.

Date:
Signature:
Name: Prateeva Bhandari
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CERTIFICATE FROM THE SUPERVISOR

This is to certify that the summer project entitled “A Study on Awareness About E-Banking on
Mahendranagar Residents” an academic work done by "Prateeva Bhandari” submitted in the
partial fulfillment of the requirements for the degree of Bachelor of Business Administration at
Faculty of Management, Far Western University, submitted under my guidance and supervision.
To the best of my knowledge, the information presented by her in the summer project report has
not been submitted earlier.

…………………………
Signature of the supervisor
Name: Associate Prof. Deepak Prasad Joshi
Designation: Lecturer
Date:
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ACKNOWLEDGEMENT

The summer project report on “A Study on Awareness About E-Banking on Mahendranagar

Residents” has been prepared as the partial fulfillment of the requirement for the degree of
bachelor in business administration.

First of all, I would like to express my gratitude to the Far Western University as well as the
faculty members for providing a BBA program with summer projects that helps us to extend our
theoretical knowledge to practical level through fieldwork.

I would like to thank our respective teacher and supervisor Associate Prof. Deepak Prasad
Joshi for giving us the guidance and mentorship for the preparation of our research based on the
information collected through survey.

Similarly, I would like to give my sincere thanks to my parents, teachers, friends and seniors
who have assisted me directly or indirectly in completion of this project. Also, I would like to
thank all respondents, who spent their valuable time in filling the questionnaire.

Sincerely,

Prateeva Bhandari
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TABLE OF CONTENT

STUDENT DECLARATION.........................................................................................................1
CERTIFICATE FROM THE SUPERVISOR.................................................................................2
ACKNOWLEDGEMENT..............................................................................................................3
TABLE OF CONTENT..................................................................................................................4
LIST OF TABLES..........................................................................................................................6
LIST OF FIGURES........................................................................................................................6
ABBREVIATIONS........................................................................................................................8
CHAPTER I...................................................................................................................................1
INTRODUCTION..........................................................................................................................1
1.1 Background of the study.......................................................................................................1
1.1.1 Evolution from banking to e-banking in Nepal..............................................................1
1.1.2 E-banking in Nepal at present........................................................................................2
1.2 Objective of the study...........................................................................................................2
1.3 Significance of study............................................................................................................2
1.4 Literature review...................................................................................................................3
1.5 Research methodology..........................................................................................................4
1.5.1 Types of data..................................................................................................................4
1.6 Limitations............................................................................................................................5
CHAPTER II..................................................................................................................................6
DATA PRESENTATION AND ANALYSIS.................................................................................6
2.1 Respondents based on Gender..............................................................................................6
Table 2.1: Respondents based on gender................................................................................6
Figure 2.1: Respondents based on gender...............................................................................6
2.2 Similarity between online banking and E-banking................................................................7
Table 2.2: Response for similarity between online banking and E-banking............................7
2.3 E-banking be called as Electronic Fund Transfer..................................................................8
Figure 2.3: Response on E-banking be called as Electronic Fund Transfer............................8
2.4 Familiarity with different E-banking channels......................................................................9
Table 2.4: Response on familiarity with different E-banking channels...................................9
Table 2.4: Response on E-banking be called as Electronic Fund Transfer..............................9
2.5 Source of information...........................................................................................................9
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Table 2.5: Response on source of information........................................................................9

2.6 Purpose of E-banking..........................................................................................................10
Table 2.6: Response on purpose of E-banking......................................................................10
2.7 Requesting and ordering of cheques...................................................................................10
Table 2.7: Response on requesting and ordering of cheques function...................................10
2.8 Use for administrative tasks................................................................................................10
Table 2.8: Response on use of E-banking for administrative tasks.......................................10
2.9 Problems faced....................................................................................................................11
Table 2.9: Response on problems of E-banking....................................................................11
2.10 E-banking perception........................................................................................................11
2.10.1 Reliability..................................................................................................................11
Table 2.10.1: Response on Reliability of E-banking.............................................................11
2.10.2 Accuracy....................................................................................................................12
Table 2.10.2: Response on Accuracy of E-banking..............................................................12
2.10.3 Convenience...............................................................................................................13
Table 2.10.3: Response on Convenience of services.............................................................13
2.10.4 Accessibility...............................................................................................................13
Table 2.10.4: Response on accessibility of E-banking..........................................................13
2.10.5 Economical................................................................................................................14
Table 2.10.5: Response on E-banking being economical......................................................14
2.11 Preference.........................................................................................................................14
Table 2.11: Response on preference of E-banking................................................................14
2.12 Major Findings and Discussions.......................................................................................15
2.12.1 Major Findings...........................................................................................................15
2.12.2 Discussions................................................................................................................16
CHAPTER III...............................................................................................................................17
3.1.....................................................................................................................................Summary
......................................................................................................................................................17
3.2 Conclusion..........................................................................................................................17
3.3 Implications........................................................................................................................18
REFERENCES.............................................................................................................................19
APPENDICES..............................................................................................................................20
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LIST OF TABLES
Table 2.1: Respondents based on gender
Table 2.2: Response for similarity between online banking and E-banking
Table 2.4.1: Response on familiarity with different E-banking channels
Table 2.4.2: Response on E-banking be called as Electronic Fund Transfer
Table 2.5: Response on source of information
Table 2.6: Response on purpose of E-banking
Table 2.7: Response on requesting and ordering of cheques function
Table 2.8: Response on use of E-banking for administrative tasks
Table 2.9: Response on problems of E-banking
Table 2.10.1: Response on Reliability of E-banking
Table 2.10.2: Response on Accuracy of E-banking
Table 2.10.3: Response on Convenience of services
Table 2.10.4: Response on accessibility of E-banking
Table 2.10.5: Response on E-banking being economical
Table 2.11: Response on preference of E-banking
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LIST OF FIGURES

Figure 2.1: Respondents based on gender

Figure 2.3: Response on E-banking be called as Electronic Fund Transfer
Figure 2.10.1: Response on Reliability of E-banking
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ABBREVIATIONS

FWU Far Western University

BS Bikram Sambat
AD Anno Domini
SMS Short Message Service
BBA Bachelor of Business Administration
E-Banking Electronic Banking
ATM Automated Teller Machine
NRB Nepal Rastra Bank
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CHAPTER I

INTRODUCTION

1.1 Background of the study

E-banking is an electronic system that allows the customers of the banks or other financial
institutions to carry out a range of financial transactions through the financial institutions website
rather than using cash or cheque. It means that the interactive communications channels are used
to deliver new and traditional banking products and services to the customers. The interactive
channels include the means that connects the customer to their respective banks which may be
through setting up a communication network including the internet.

As the use of the internet is growing in the present time, the incorporation of the internet in the-
banking sector has led to provision of different kinds of services to its associated stakeholders.
These services may range from having access to check the balance in the account of the account
holders to transacting a huge amount of money for the business purposes at national and
international level. The access to these services is gained at any time, and anywhere.

1.1.1 Evolution from banking to e-banking in Nepal

According to the-banking history of Nepal, the trend of modern banking started with the
establishment of Nepal Bank Ltd. in 1937 AD which was the first bank of Nepal. It was
established as a semi government bank with the authorized capital of Rs. 10 million and the paid-
up capital of Rs. 892 thousand. As only metallic coins were used as medium of exchange till the
mid-1940s, the need for a separate institution for issuing the national currencies and promoting
financial organization in the country was felt. So, this led to the establishment of the Nepal Rastra
Bank in 1956 AD. Then Rastriya Banijya Bank was also set up in 1964 AD as the second
commercial bank and agriculture being the major occupation, Agricultural Development Bank
was established in 1968 AD to promote the agricultural sector. For 2 decades no banks were
established. But after declaring the free economy and privatization policy, the government of
Nepal encouraged the foreign banks for joint ventures in Nepal. After this there was growth in
the-banking sector.

Slowly Nepal also moved toward the use of modern technologies. In 1990 credit cards were
introduced in Nepal by Nabil Bank. Then in 1995, ATM was introduced by Himalayan Bank
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along with telephone-banking in 1997. Then in 2002, Kumari Bank introduced internet banking
for the first time in Nepal. And soon was accompanied by Laxmi Bank with its SMS banking in
2004.

1.1.2 E-banking in Nepal at present

Since the introduction of internet banking by Kumari bank, Nepali banks have become highly
proactive to promote internet banking and electronic payments. Thus, at the present time, there
are a huge number of customers who use e-banking facilities.

According to Nepal Rastra Bank, financial institutions are serving nearly 4 million mobile-
banking and 0.78 million internet banking customers. In the past year, only 2% used the internet
to buy something online, 1.13% of the adult population has used internet banking to pay bills.
However, 16% made or received digital payments in the past year. It shows people are moving
toward e-banking, though very slowly.

Various services are available with e-banking at present that are:

● Access the account holder to check the balance

● Online remittance of money
● Online tax payment
● Electronic bill payment system
● Transfer of funds from one customer to another
● Online trading of shares etc.

1.2 Objective of the study

● To study about the level of understanding of the people about e-banking
● To study the perception towards e-banking

1.3 Significance of study

E-banking has grown at a significant level all over the world. Its usage is not only limited to the
geographical boundary of the country but has extended beyond it as well. So, it is essential to
have knowledge about E-banking.

The importance of this study is:

● This research will help us as well as them to know about the awareness among the
Residents of Mahendranagar students about E-banking as we have a prospective career in
this field.
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● It will help to identify the perception that is developed among them based on their level
of awareness and usage about E-banking.

1.4 Literature review

Exploratory research was conducted to study about the factors that affect the customer perception
towards e-banking service of Union Bank of India and to find out the major problems faced by
the customers while using the e-banking services. The result revealed that 55% of the respondents
had satisfactory responses whereas 25% and 20% were highly satisfied and neutral respectively.
Out of various factors that were studied about the motivating factors for usage of e-banking, time
availability was ranked as the major motivating factor, followed by the ease of use, direct access,
nearness in decreasing order of importance. Among various problems that were encountered
while using the e-banking services, card misuse and its misplacement are the major reasons that
create the hurdles in its usage, while time consumption, accounting mistakes and change in
mobile number seem to be the least bothersome problems. In conclusion, the service class at the
moment was not using the services thoroughly due to various hurdling factors like security, fear
of hidden costs etc. So, banks should come forward with measures to reduce the comprehension
of their customers through awareness campaigns and more meaningful advertisements to make e-
banking popular among all the age and income groups. (Thsaleem, 2013)

An exploratory study was carried out with following objectives:

● To know the socio-economic characteristics of the customers

● To identify the reasons for preferring e-banking
● To find out the opinion of the respondents regarding the various problems of e-banking

The result revealed that 36.67% of the respondent’s income levels are up to Rs. 1,00,000, 52.22%
of the respondents are Rs. 1,00,001 to Rs. 3,00,000 and 11.11% respondents are belonging to
above Rs. 3,00,000 and the average income is 1,67,222. The study also reveals the opinion of
customers on future expectations where the majority i.e., 58.58% of the respondents has
mentioned that they would like to operate in a core-banking environment which is free from
technical interventions. 23.33% of the respondents expect the bank will provide security. 17.78%
have stated reasonable charges have to be imposed on banking transactions. The main difficulty
for using the e-banking facility is less knowledge about the operations of the banking facility
(50%). 30% of the respondents also feel the service of e-banking is too complex to use and
12.22% believe the e-banking to be risky. According to the study, the researcher concludes that
most of the bank customers are aware about the-banking services in Tuticorin District of
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Tamilnadu. The bank has to take necessary steps to educate the customers regarding the new
technology and other services offered by the bank. (Amutha, 2016)

1.5 Research methodology

Research methodology is the procedure used to identify, select, process and analyze the
information about a topic. This is important in the research as it will have a direct impact upon
our result of the research. So suitable methods should be used otherwise, the objective of our
research will not be met. It is concerned with the way to solve the problems systematically and
the way the research is to be carried out. Thus, determination of research design, determining the
population and sample, types of data and methods of its collection; and selecting the appropriate
methods for analysis.

1.5.1 Types of data

1.5.1.1 Primary data

The researcher will go to the field so as to collect the first-hand data by communicating with the
respondents. The researcher will try to gather as much information as possible related to the e-
banking from them. The methods of collection of primary data will be through following
methods:

● Questionnaire: A structured questionnaire will be prepared by the researcher which will

be given to the people to collect the relevant data. If any problem is faced by the
respondent in the questionnaire, it will be addressed by the researcher.
● Interview: F.ace to face communication will be carried out with the respondents so as to
gain qualitative data besides the data in the questionnaire.

1.5.1.2 Secondary data

For further accumulation of the relevant data, researcher will go through the various published
and unpublished sources of information such as:

● Published and unpublished reports

● Websites
● Journals
● Medias
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1.6 Limitations
● At the research has to be completed in a limited amount of time, there is lack of adequate
time
● As we don't have the sufficient budget to carry out the research in deeper detail. So, we
faced the financial constraint
● The sample size was taken relatively small to extract the accurate result.
● Only the selected residents of mahendranagar were taken under consideration for
research. So, this may not be generalizable to the entire society.
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CHAPTER II

DATA PRESENTATION AND ANALYSIS

This chapter includes the data that were collected from primary and secondary sources. Thus,
collected information was presented in figures and analyzed about the awareness and satisfaction
about E-banking among Mahendranagar residents. We selected 30 number of respondents
randomly for our questionnaire.

2.1 Respondents based on Gender

Table 2.1: Respondents based on gender

Gender No. of respondents Percentage
Male 12 40%
Female 18 60%
Source: Field survey, 2079

Figure 2.1: Respondents based on gender

40% of the respondents who participated in this survey is male and 60% of them are female.
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2.2 Similarity between online banking and E-banking

Table 2.2: Response for similarity between online banking and E-banking
Response No. of participants Percentage
Yes 22 83%
No 8 17%
Source: Field Survey, 2079

Most of the respondents have given the response that e-banking and online-banking are the same.
But they are not the same. Online-banking is just only a component of e-banking. E-banking not
only uses the internet but also other communication mediums such as telephone lines. So, most
people have the concept that online-banking and e-banking are the same. But only a part of e-
banking.
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2.3 E-banking be called as Electronic Fund Transfer

Figure 2.3: Response on E-banking be called as Electronic Fund Transfer

In general E-banking and electronic fund transfer are called the same. but based on functionality,
e-banking and electronic fund transfer are different. Electronic Fund Transfer is associated with
the transfer of the fund through electronic means. But the function of e-banking is not only
associated with fund transfer. It has several other functions such as ordering a checkbook,
applying for loan and credit, utilizing investment research, taking advantage of online brokerage
and so on. So, most of the respondents think about e-banking from a general point of view and
only 23% think about electronic fund transfer from a functional point of view.
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2.4 Familiarity with different E-banking channels

Table 2.4.1: Response on familiarity with different E-banking channels

E-banking channels No. of positive response
Internet banking 30
Mobile-banking 20
ATM 30
Credit card 15
SMS banking 10
Telephone-banking 10
Source: Field Survey, 2079

We can find that most of the respondents are familiar with internet banking and ATM facilities.
But few people are familiar with telephone-banking. This might be due to the growing usage of
internet among all people with increase in usage of the people of smartphones. Also due to
comfortability and accessibility in the money withdrawal when needed at any time and at any
place has made the use of ATMs popular and aware among various people.

Table 2.4.2: Response on E-banking be called as Electronic Fund Transfer

Responses No of respondents Percentage
Yes 23 77%
No 7 23%
Source: Field Survey, 2079

2.5 Source of information

Table 2.5: Response on source of information

Sources of information No. of respondents
Books 25
Advertisements 15
Internet 25
Medias 20
People 28
Source: Field Survey, 2079
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2.6 Purpose of E-banking

Table 2.6: Response on purpose of E-banking

Purpose of E-banking No. of respondents
Make a deposit 25
Cash withdrawal 30
Statement request 20
Bill payment 30
Money remittance 30
Source: Field Survey, 2079

Some of the people are still unaware of some of the functions of e-banking. E-banking is used to
make deposits as well as statement requests. But some people don’t consider it to be the function
of e-banking.

2.7 Requesting and ordering of cheques

Table 2.7: Response on requesting and ordering of cheques function

Response No of respondents Percentage
Yes 10 33%
No 20 67%
Source: Field Survey, 2079

According to the pie chart, 67% of the respondents don’t think that e-banking can be used for the
purpose of requesting and ordering checks. At present, people can save time by ordering the
checks online. But still, most of the respondents are unaware about it.

2.8 Use for administrative tasks

Table 2.8: Response on use of E-banking for administrative tasks

Response No of respondents Percentage
Yes 19 63%
No 11 37%
Source: Field Survey, 2079
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E-banking not only fulfills the purpose of users but also used for the providers of such services to
carry out different administrative tasks such as management of user’s accounts, creation and
processing of user’s transactions and so on. But still 37% don’t know that e-banking is also used
by the service providers as well.

2.9 Problems faced

Table 2.9: Response on problems of E-banking

Types of problems No of respondents
High charges 15
Slow transaction processing 25
Security issues 20
Source: Field Survey, 2079

According to the bar diagram, we can find that the most common problem that the respondents
faced during their usage of e-banking services was slow transaction processing. This might be
due to the still lack of development of fast technology to cope with the increasing number of the
users. Along with it we can analyze that the charges that are imposed upon the users by their
service providers are considerable as they have considered it as the least common problem while
using their services.

2.10 E-banking perception

2.10.1 Reliability

Table 2.10.1: Response on Reliability of E-banking

Response No of respondents
Strongly Agree 2
Agree 10
Neutral 14
Disagree 4
Strongly disagree 0
Source: Field Survey, 2079
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Figure 2.10.1: Response on Reliability of E-banking

The result from the above table indicates that 40% of the respondents believe that the e-banking
services that they are using at the present are reliable. They seem to agree about the consistency
in the services provided by their service provider. But 13.33% of the respondents believe that
they are not gaining appropriate services and require improvement in their service.

2.10.2 Accuracy

Table 2.10.2: Response on Accuracy of E-banking

Response No of respondents
Strongly Agree 9
Agree 11
Neutral 9
Disagree 1
Strongly disagree 0
Source: Field Survey, 2079

66.67% of the respondents consider the e-banking services that they gain are accurate. From this
we can find that the respondents find the transactions that they carried out by the use of e-banking
services being handled accurately by their service providers. Whether the services are associated
with the withdrawal of the money, deposit of money, transfer of money, respondents agree that
the transactions are carried out without any loss of money.
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2.10.3 Convenience

Table 2.10.3: Response on Convenience of services

Response No of respondents
Strongly Agree 4
Agree 5
Neutral 8
Disagree 10
Strongly disagree 3
Source: Field Survey, 2079

From above data we can find that 43.33% of the respondents disagree about the convenience
associated with the e-banking services. On interviewing with some of the respondents they
answered that they were facing the slow processing of the transactions. Along with it sometimes
they faced problems due to improper complaint handling as their service providers took more
time so as to address their complaints. Due to the response toward the inconvenience in e-banking
services was high.

2.10.4 Accessibility

Table 2.10.4: Response on accessibility of E-banking

Response No of respondents
Strongly Agree 1
Agree 9
Neutral 15
Disagree 5
Strongly disagree 0
Source: Field Survey, 2079

We can find that most of the respondents are neutral with their view regarding the accessibility of
the e-banking services. Besides them, 33.33% people agree that the e-banking services are
accessible for them. This might be due to their ability to access the e-banking services at any time
at their accessible and convenient places. But the least number of respondents find e-banking as
not accessible.
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2.10.5 Economical

Table 2.10.5: Response on E-banking being economical

Response No of respondents
Strongly Agree 4
Agree 12
Neutral 9
Disagree 7
Strongly disagree 3
Source: Field Survey, 2079

53.33% of the respondents find that the e-banking services are economical. On interviewing with
some of the respondents, they answered that the availability of the various applications such as E-
sewa, E-pay make it economical for them to make the payments for their bill related to telecom,
electricity, internet and so on. Some of the people said that it was economical for them to
withdraw money from an ATM rather than going to the respective branch of the banks to
withdraw money for their daily transaction. But 33.33% of respondents also disagreed with this.
This might be due to the high charges that might have been imposed upon them by their service
provider and also might be due to problems that they are facing while using these services.

2.11 Preference

Table 2.11: Response on preference of E-banking

Preference No of respondents Percentage
Branch banking 21 70%
E-banking 9 30%
Source: Field Survey, 2079

From this figure we can find that still 21% of the people prefer branch banking rather than e-
banking. People believe that the branch banking is more secure for them along with it being more
reliable and economical for them to use as well.
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2.12 Major Findings and Discussions

2.12.1 Major Findings

The survey was carried out to know about the awareness and the perception of the BBA students
about e-banking in Nepal. From the analysis of the data that was collected by the means of the
questionnaire following findings were developed:

● There is a misunderstanding among the respondents regarding the concept of online-

banking and e-banking as online-banking is one of the components of e-banking. But
from the analysis it was found that respondents find both of the terms to be the same.
● Most of the respondents think about e-banking from a general point of view. But only a
small number of respondents consider the functional concept regarding e-banking.
● Most of the respondents were familiar with e-banking channels such as ATM and internet
banking. but most are unfamiliar with the e-banking channels such as telephone-banking
and SMS banking. Thus, it can be found that most of the respondents don’t use and have
less information about SMS and telephone-banking.
● The main source of information about e-banking for the respondents was found to be
people who are their relatives, friends who have information and are familiar with the
particular e-banking channels. The other important sources were the internet and books
due to the access of the respondents with the internet which enables them to gain
information about them and also the inclusion of such matters in their course of study.
● Most of the respondents have awareness about the basic functions of e-banking such as
fund transfer, money remittance, cash withdrawal and deposit, balance inquiry and so on.
● Most of the respondents still don’t have information about the different kinds of services
that they are able to gain from the e-banking channels besides the transferring of fund and
balance inquiry. E-banking channels also serve for the purposes like requesting and
ordering of cheques, carrying out the administrative tasks about which most of the
respondents are unaware of.
● The major problem faced by most of the respondents while using their e-banking services
was associated with the slow processing of transactions. But the charges were found to be
the least prominent problem.
● While evaluating the perception of the respondents towards the e-banking services in
term of reliability, accuracy, convenience, accessibility and economical following were
the findings:
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i) Most of the respondents were neutral regarding the reliability of their e-banking
services. Thus, they are unsure about the consistency of the services that they gain
from their service providers. Besides them, some people consider the e-banking
services that they gain to be quite consistent.
ii) More than half of the respondents agree regarding the accuracy of the services
through e-banking. It can be found out that the deviation from the result of the
services is very low.
iii) Most respondents find the e-banking services to be inconvenient due to the slow
transaction processing, lack of proper guidance and improper complaint handling.
iv) The neutral response regarding the accessibility of the e-banking services was high.
but besides them, some respondents agree about the accessibility but least consider
inaccessible.
v) The e-banking services were economical for the users as it saves time as well as
money for the users.
● The preference of branch banking is more than e-banking.
● The e-banking in Nepal is not satisfactory for the people due to the infant stage of
technology used in e-banking.

2.12.2 Discussions
According to the exploratory research conducted by D.Amutha regarding e-banking, she found
out that the guidance was not provided by their respective banks about the usage of e-banking
services. Similar conditions can be found in this research as well due to which the respondents
find it inconvenient to use the e-banking service. Along with it, she also found out that the main
difficulty for using e-banking facilities is less knowledge about the operations of e-banking
facilities which comply with our research as well. This is because we have found out that the
operation of e-banking for carrying out different administrative tasks is still unknown to most of
the respondents.

According to the quantitative research conducted by N.J/ Karivawasam, it was found out that lack
of knowledge of facilities of e-banking compared to traditional banking was one of the most
influential factors towards the lack of usage of internet banking. From this research too, it can be
found out that the awareness regarding different facilities provided by e-banking is still unknown
to some of the respondents. This is one of the reasons due to which most of the respondents still
prefer traditional banking over e-banking.
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CHAPTER III

3.1 Summary
This summer project is related to awareness about e banking among residents of mahendranagar.
E-banking is the electronic system that allows the users to conduct a wide range of financial
transactions along with the utilization of different services by the means of interactive
communication channels. E-banking has been an important means of utilizing the banking
services worldwide from carrying out simple to huge transactions at national and international
level. So, this research was conducted to know how much awareness was present among the
residents of Mahendranagar who are associated with the banking and commerce field. They are
also the potential candidate to have their career in this field as well. Based on their awareness,
their perception about e-banking was also evaluated.

For the analysis of the data collected, various statistical tools such as frequency distribution,
arithmetic mean, bar graph and pie-chart were used. From the analysis, it was found out that some
of the services of e-banking were still unknown to them such as ordering and requesting of
cheques, use for carrying out the administrative tasks. Along with it, confusion was also found
out considering the online banking to be e-banking. But online banking is only a component of e-
banking. Along with-it negative perception was developed among them regarding the e banking
services as they find it to be inconvenient to use. Due to this, most of them still prefer to use
traditional banking over e-banking.

Thus, it was concluded that the awareness among residents of mahendranagar must be
encouraged by the educational institutions through practical teaching methods. And by banks by
providing proper guidance to the users about their services so that they are also able to make full
usage of e-banking services. But to eliminate the negative perception, they should also improve
their services.

3.2 Conclusion
E-banking has become a burning subject matter in the world as a means of carrying out different
financial transactions. Its usage is expanding from the large organization to the common people
as well. Its services have broadened ranging from small amounts of money transfer to facilitating
huge national and international transactions. Also in the future, there might be the possibility that
e banking would raise higher than the other traditional banking services. So, the students have a
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prospective career in this field as well. Thus, it is essential for them to have conceptual and
functional knowledge so that it would help them in their career development.

Along with it, awareness also has a major impact upon the perception about the e banking service
as the individual would have information about it. Though E-banking has prospective
contributions to the economy of the country, the perception regarding e banking can still be found
to be negative even among the bachelor level students. So, the clearance of this negative
perception by the banks as well as the educational institutions by making them aware about the
services that is not only limited to fund transfer and also by improving e banking services
provided by them. Thus, the improvement of e-banking and awareness would be needed to
develop positive perception not only in the mind of the students but also for the other people.

3.3 Implications
E-banking has a huge prospective to contribute to the financial system of the country. But by the
means of this research, it can be found that the awareness level among the resident of
Mahendranagar is not found to be satisfactory as still some confusion and lack of information
exists among them even about basic functions. Along with it, the perceptions of the respondents
are also found to be unsatisfactory for the e-banking services. After the analysis, I would like to
recommend the following implications:

● Not only theoretical knowledge, but provision of practical knowledge must be maintained
regarding e-banking. The teachings about e-banking must be extended beyond only the
class lectures. Students must be made familiar with the different e banking methods that
are available practically along with different software associated with it.
● Not only the educational institutions, but the banks should also make efforts to create
customers' awareness about e-banking facilities by conducting training programmed as
still most of the respondents are unaware about some of the services that can be obtained
through e-banking.
● Banks should increase the awareness about various features, advantages and benefits of
e-banking.
● Banks should extend the technology which is used in e-banking in order to remove the
difficulties.
● Banks should also improve their services. Mainly considering the speed of transaction
processing as it is found to be a common problem for most of the respondents.
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REFERENCES

Adhikari, D.R. & Pandey, D.L. (2017). Essentials of business research methods. Kathmandu:
Asmita Publication

Amutha, D. (2016). A study of consumer awareness towards e-banking, International Journal of

Economics and Management Sciences. doi:10.4172/2162-6359.1000350

Thsaleem, M. (2013). A study on customer awareness on e-banking services at Union Bank of

India, Mangalore.

Kariyawasam, N.J.(2016). Awareness and usage of internet banking facilities in Sri Lanka, 3(6):
173.

Importance of and benefits of E-banking. (2019). Retrieved on 1/20/2019, from

https://www.ukessays.com/essays/information-technology/importance-of-e-banking.php
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APPENDICES
Questionnaire

Name:

Gender:

1) Are online-banking and e-banking the same?

a) Yes
b) No
2) Can the term Electronic Fund Transfer be used to substitute the term E-banking?
a) Yes
b) No
3) From where did you get the information about e-banking? (multiple)
a) Books
b) Advertisements
c) Internet
d) Medias
e) People
f) Other
4) What are the sources of e-banking?

S.N. E-banking channels Yes No

3.1 Internet banking

3.2 Mobile-banking

3.2 ATM

3.3 Credit cards

3.4 SMS banking

3.5 Telephone-banking

3.6 Insta Query

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3.7 Insta Alert

5) For what purpose are e-banking used for? (multiple)

a) Make a deposit
b) Inquire about a balance
c) Withdraw cash
d) Pay bill
e) Statement request
f) Remittance of money
g) Banking administrative tasks
6) Can requesting or ordering a checkbook be done using e-banking services?
a) Yes
b) No
7) What problems have you faced while using e-banking?
a) High Charges
b) Slow processing of transactions
c) Security issues
d) Other
8) Is E-banking used for carrying out administrative tasks?
a) Yes
b) No
9) What do you think about e-banking in Nepal?

S.N. Features Strongly Agree Neutra Disagree Strongly

Agree l disagree

9.1 Reliable

9.2 Accurate

9.3 Convenient

9.4 Secured

9.5 Accessible
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9.6 Affordable
charges

10) Which one do you prefer?

a) Branch banking
b) E-banking