A Major Research Project Report

on
“DIGITAL BANKING”
Submitted by
AbhinavThakur
MAU19UBA013
Batch:2019-2022
under the supervision of Ms. Aashima Mittal
in partial fulfillment for the award of the
degree of
Bachelor of Business Administration

Submitted To:
Maharaja Agrasen School of Management
Maharaja Agrasen University, Atal Shiksha Kunj,Village: Kalujhanda, Baddi
District: Solan, (Himachal Pradesh) Pin -174103
MAY-2022

1
 DECLARATION BY THE CANDIDATE

I hereby declare that the Major Research Project Report entitled “DIGITAL
BANKING”submitted in partial fulfillment for the award of the degree of Bachelor of Business
Administration is original research work carried out by me under the guidance and supervision
Of Ms. Aashima Mittal. No part of this Major Research Project Report has been submitted for
any other degree or diploma to this or any other university.

(Signature)

Place: Kalujhanda Name: Abhinav Thakur

Date: 20 MAY,2022 MAU19UBA013

2
 CERTIFICATE-I

This is to certify that Major Research Project Report entitled “DIGITAL BANKING”submitted
in partial fulfillment for the award of degree of Bachelor of Business Administration to
Maharaja Agrasen School of Management of Maharaja Agrasen University, Village: Kalujhanda,
District: Solan, (Himachal Pradesh) Pin -174103 is a bonafide research work carried out byMr.
Abhinav Thakur,MAU19UBA013 under my guidance and supervision. No part of this Major
Research Project Report has been submitted for any degree or diploma. The assistance and help
received during course of investigation has been duly acknowledged.

(Signature)

Place:Kalujhanda Supervisor Name: Ms. Aashima Mittal

Date: 20 May, 2022

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 ACKNOWLEDGEMENT

I am thankful to Maharaja Agrasen University (MAU) and especially to Management

department who provided me this opportunity for carrying out this study. It is a moment of
pleasure for us to acknowledge the help and support for those people who made us able to this
report for evaluation of “Bachelor of Business Administration”.

Further, I extend our earnest thanks and gratefulness to MS. Aashima Mittal for precious
guidance and mentoring but for which my report here would not been so rewarding and
fruitful.

I am also thankful to those who have helped us intellectually in preparation of this report directly
or indirectly. At last I would like to thank all our college friends for their love, faith and support.

Abhinav Thakur

(MAU19UBA013)

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 TABLE OF CONTENTS

CHAPTER NO. TITLE PAGE NO.

1. INTRODUCTION 6-21
What is e-banking?
History of digital banking
Internet banking in INDIA
Evaluation of e-banking
Security aspects of e-banking

22-24
2. REVIEW OF LITERATURE

3. RESEARCH METHODOLOGY 25-27

Methodology of the study
Objectives of the study
Scope of the study
Limitations

4. RESULT AND DISCUSSION 28-38

4.1 Data analysis and interpretation

5. CONCLUSION
Finding of the study
39-42
Suggestions
6. QUESTIONNAIRE 4343- 47
7. BIBLIOGRAPHY 48

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 CHAPTER – 1

INTRODUCTION

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 INTRODUCTION

Consumer preference have quickly shifted to online and mobile devices but many financial
organizations have had trouble shifting their onboarding experiences online and smaller screens.
In addition, until the past few years, banks were not envisioning the tremendous shift in
consumer behaviour that occurred because of the millennial generation now become the largest
consumers of financial products.

MEANING OF BANKING:

Banking is the business of protecting money for others. Banks lend this money, generating
interest that creates profits for the bank and its customers.

A bank is a financial institution licensed to accept deposits and make loans. But they may also
perform other financial services.

The term “bank” can refer to many different types of financial institutions — including bank and
trust companies, savings and loan associations, credit unions or any other type of institution that
accepts deposits.

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 WHAT IS E-BANKING?

E-banking is a blanket term used to indicate a process through which a customer is allowed to
carry out, personal or commercial banking transactions using electronic and telecommunication
network.It is a product offered by banks which facilitates online banking, with the help of which
the customer can have access to the bank account in just one click.

E-banking covers facilities such as – fund transfer, checking account statements, utility bill
payments, opening of bank account, locating nearest ATM, obtain information on financial
products and services, applying for loans, etc. using a personal computer, smartphone, laptop or
personal digital assistant.

ANKING SERVICES

In simple words, e-banking refers to a banking arrangement, with which the customer can
perform various transactions over the internet, which is end-to-end encrypted, i.e. it is
completely safe and secure.

E-banking promotes paperless/cashless transactions. It comes with a number of rights,

responsibilities and fees as well. The range of services covered under E-banking are:

1. Internet Banking: A banking facility provided to the customers through which the
customers are able to perform a number of monetary and non-monetary transactions,
using the internet, through the bank’s website or application.

2. Mobile Banking: Almost all the banks have designed their mobile applications with
which you can perform transactions at your fingertips. For this, four things are required –
a smartphone, internet, mobile application, and mobile banking service enabled in your
bank account.

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3. ATM: Automated Teller Machine, popularly known as ATM is one of the most common
and initial service, provided under e-banking. It is not just a machine with which you can
withdraw cash as and when required, but it also allows you to check your account status,
transfer fund, deposit fund, changes mobile number, change Debit Card PIN, i.e. Personal
Identification Number.

4. Debit Card: Debit cards are used in our day to day life so as to perform end number of
transactions. Debit cards are linked to the customer’s bank account and so the customer
only needs to swipe the card, in order to make payment at Point of Sale (POS) outlets,
online shopping, ATM withdrawal. In this way, the amount is deducted from the
customer’s account directly.

5. Credit Card: Just like a debit card, a credit card is also a payment card which the banks
issue to the customers on their request, after checking their credit score and history. It
enables the cardholder to borrow funds up to the pre-approved limit and make payment.
The limit is granted by the banks which issue the card. The cardholder promises to repay
the amount within a stipulated time, with some charges, for the use of credit card.

6. Point of Sale (POS): Points of sale system refers to the point, in terms of date, time and
place (retail outlet) where the customer makes a payment, using a plastic card, for the
purchase made or services received.

7. Electronic Data Interchange (EDI): EDI is a new mode of communicating information

between businesses electronically using a standardized format, which was conventionally
paper-based.

8. Electronic Fund Transfer (EFT): When money is transferred electronically from one
bank to another, it is called as electronic fund transfer. It covers direct debit, direct
deposits, wire transfers, RTGS, IMPS, etc.

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 BENEFITS OF E-BANKING:

• It enables digital payments, which encourages transparency.

• It allows 24/7 access to the bank account.

• It also sends notifications and alerts to get updated with the banking transactions and
changes in the rules.

• It lowers transaction cost for the banks.

• It is convenient and easy for customers, as they are not required to visit the bank branch
every time.

DEFINITION OF DIGITAL BANKING:

Digital Banking is the automation of traditional banking services. Digital banking enables a
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 involves the digitization of all traditional banking products, processes and
activities to serve customers through online channels. Most frequently, the include the following
operations and activities (all the traditional banking services that are available 24/7 on mobile
phones, computers and compatible smart devices, without the need for a customer’s presence in
the bank branch):

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 • Obtaining bank statements
• Cash withdrawals
• Funds transfers
• Checking/savings account management
• Opening deposit accounts
• Loan management
• Bill payments
• Cheques management
• Transaction records monitoring

TYPES OF DIGITAL BANKING:

The Digital India programme is a flagship programme of the Government of India with a vision
to transform India into a digitally empowered society and knowledge economy. “Faceless,
Paperless, Cashless” is one of professed role of Digital India.
As part of promoting cashless transactions and converting India into less-cash society, various
modes of digital payments are available.

THESE MODES ARE:

• Banking cards
• USSD
• Aadhaar Enabled Payment System (AEPS)
• UPI
• Mobile Wallets
• Bank pre-paid cards
• Point of Sale (PoS)
• Internet Banking
• Mobile Banking
• Bharat Interface for Money (BHIM) app

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 HISTORY OF DIGITAL BANKING:

➢ 1993 – Temenos AG was founded, which is a banking software system provider that
supports retail, private, corporate, community, and other types banks.
➢ 1994 – Online banking is built into Microsoft Money, which was one of the first online
banking/financial software. This was one of the first banking accounts accessible to
standard households.
➢ 1997 – Canada launches Tangerine, the first digital-only bank in the area.
➢ 1998 – The United States launches Internet Bank, the first digital-only bank in the area.
➢ 2001 – Online banking expands to over 20 million unique users, with at least eight
different US banks crossing the plateau of 1 million different users.
➢ 2007 – The launch of the first iPhone begins a pivotal shift to digital banking with users
given access to their banking information on the go.
➢ 2009 – Online banking reaches 54 million sole users in the US alone.
➢ 2016 – Millennials push the transition to digital banking preferences, giving a signal to
banks to work towards more online options.
➢ 2018 – Temenos acquires competitors and grows to be the leader of providing digital
customer options for most financial organizations.
➢ 2019 – Temenos acquires mobile app leaders to create an empire of digital banking
services.

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 INTERNET BANKING IN INDIA:

Internet banking, also known as online banking, e-banking or virtual banking, is an electronic
payment system that enables customers of a bank or other financial institution to conduct a range
of financial transactions through the financial institution's website.

DIFFERENT TYPES OF ONLINE FINANCIAL TRANSACTIONS ARE:

1) Electronic Fund Transfer (NEFT)

National Electronic Funds Transfer (NEFT) is a nation-wide payment system facilitating one-to-
one funds transfer. Under this Scheme, individuals, firms and corporates can electronically
transfer funds from any bank branch to any individual, firm or corporate having an account with
any other bank branch in the country participating in the Scheme. Individuals, firms or
corporates maintaining accounts with a bank branch can transfer funds using NEFT. Even such
individuals who do not have a bank account (walk-in customers) can also deposit cash at the
NEFT-enabled branches with instructions to transfer funds using NEFT. However, such cash
remittances will be restricted to a maximum of Rs.50,000/- per transaction. NEFT, thus,
facilitates originators or remitters to initiate funds transfer transactions even without having a
bank account. Presently, NEFT operates in hourly batches - there are twelve settlements from 8
am to 7 pm on week days (Monday through Friday) and six settlements from 8 am to 1 pm on
Saturdays.

2) Real Time Gross Settlement (RTGS)

RTGS is defined as the continuous (real-time) settlement of funds transfers individually on an

order by order basis (without netting). 'Real Time' means the processing of instructions at the
time they are received rather than at some later time; 'Gross Settlement' means the settlement of
funds transfer instructions occurs individually (on an instruction by instruction basis).
Considering that the funds settlement takes place in the books of the Reserve Bank of India, the
payments are final and irrevocable.

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The RTGS system is primarily meant for large value transactions. The minimum amount to be
remitted through RTGS is 2 lakh. There is no upper ceiling for RTGS transactions. The RTGS
service for customer's transactions is available to banks from 9.00 hours to 16.30 hours on week
days and from 9.00 hours to 14:00 hours on Saturdays for settlement at the RBI end. However,
the timings that the banks follow may vary depending on the customer timings of the bank
branches.

3) Electronic Clearing System (ECS)

ECS is an alternative method for effecting payment transactions in respect of the utility-bill-
payments such as telephone bills, electricity bills, insurance premia, card payments and loan
repayments, etc., which would obviate the need for issuing and handling paper instruments and
thereby facilitate improved customer service by banks / companies / corporations / government
departments, etc., collecting / receiving the payments.

4) Immediate Payment Service (IMPS)

IMPS offers an instant, 24X7, interbank electronic fund transfer service through mobile phones.
IMPS is an emphatic tool to transfer money instantly within banks across India through mobile,
internet and ATM which is not only safe but also economical both in financial and non-financial
perspectives.

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OBJECTIVES OF IMPS:

• To enable bank customers to use mobile instruments as a channel for accessing their
banks accounts and remit funds

• Making payment simpler just with the mobile number of the beneficiary

• To sub-serve the goal of Reserve Bank of India (RBI) in electronification of retail

payments

• To facilitate mobile payment systems already introduced in India with the Reserve
Bank of India Mobile Payment Guidelines 2008 to be inter-operable across banks
and mobile operators in a safe and secured manner

• To build the foundation for a full range of mobile based Banking services.

EVOLUTION OF E-BANKING:

The Pre-independence Phase (1770-1947) -

The organized banking sector in India dates back to more than a century before independence
when the Bank of Hindustan–the first bank of India was established in 1770 in the then Indian
capital, Calcutta. It failed in due course and was liquidated in 1832. Subsequently, several banks
like General Bank of India (1786-1791), and the Oudh Commercial Bank (1881-1958)
established during the pre-independence era didn’t last very long either.
The Bank of Bengal, Bank of Bombay, and Bank of Madras established by the East India
Company during the early to mid-1800s–together known as the Presidential Banks were later
merged in 1921 to form the Imperial Bank of India. It was later nationalized in 1955 and named
the State Bank of India (SBI). In 1959, the SBI was given charge of 7 subsidiary banks making it
India’s largest Public Sector Bank (PSB).

15
During the First World War (1914-1918), till the end of the Second World War (1939-1945), and
until two years later until the independence of India, the banking system witnessed turbulent
times leading to the collapse of a large number of banks.

The Post-independence Phase (1947-1991) -

Post-independence, the evolution of the Indian banking system continued when the Government
of India (GOI) adopted the approach of a mixed economy in 1948 with an extensive intervention
into markets to strengthen the economy. The Reserve Bank of India (est. 1935) was nationalized
in 1949 and it was empowered to regulate, control, and inspect the banks in India.

Nationalization in 1969-

In the 1960s the RBI had become a large employer and the Indian banking industry had begun
playing an important role in supporting economic development. Yet, except for SBI, most banks
continued to be run by private entities.
The Government of India issued the Banking Companies (Acquisition and Transfer of
Undertakings) Ordinance, 1969 and nationalized the 14 largest commercial banks at that time.

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Nationalization in 1980 -
1. The second wave of Nationalization followed in 1980 with 6 more commercial banks.
2. Reasons for nationalization of banks in India
3. Promote the economic development of the country
4. Develop confidence in the banking system of India
5. Prevent the concentration of economic power in the hands of a select few
6. Improve the efficiency of the banking industry
7. Create a socio-economic balance
8. Mobilize the national savings and channel them into productive purposes
9. Sectors such as exports, agriculture, and small-scale industries were lagging behind

Positive impacts of nationalization:

The nationalization of the Indian banks was a major milestone in the evolution of banking in
India that played a major role in guiding its future course. Currently, there are 19 nationalized
banks in India. Here’re a few benefits that made a difference:

1. Better outreach: The penetration of banks increased when branches were opened in the
remotest corners of the country

2. Increased savings: With the opening of new branches, since more people had access to
banks, the average domestic savings increased twofold

3. Surged public deposits: The increased reach of banks helped small industries,
agriculture, and the export sector grow leading to a proportionate increase in public
deposits

4. Increased efficiency: The added accountability led to improved efficiency and increased
public confidenceEmpowered small scale industries (SSIs): The SSIs received a boost
resulting in considerable growth in the economy.

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Liberalization in 1991-

In 1991, the GOI adopted economic liberalization that brought about a massive change in its
economic policies to enhance the participation of private and international investments.

Positive impacts of liberalization:

• A modern and tech-based approach started setting into traditional banks

• Paved path for Payments banks
• Small finance banks came into existence
• The digitalization of bank transactions and operations became a norm
• Foreign banks such as Bank of America, Citibank, HSBC, etc. set up branches in India.
Currently, there are 46 international banks in the country.

BENEFITS OF E-BANKING :

FOR BANKS:

• The banking functions like transfer of funds can easily be performed by the customer
hence workload of bank reduces.
• The operation cost of services offered by banks gets reduced.
• The method saves time and cost of customers as they need not to go the bank and reduces
rush at bank.
• Since the method is secure so chances of error is low.

FOR CUSTOMER:

1. Digital Payment and Transparency: -With e-banking there is a possibility of digital payment. It
promotes transparency in financial statements.
2. 24X7 Services: - E-banking provides twenty-four hours,365 days a year services to the customer
of the bank.

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 3. Convenience: - Customer can make some of the permitted transactions from offices or houses or
while traveling through mobilephones.
4. Financial Discipline: - E-banking inculcates a sense of financial discipline by recording each and
every transaction.
5. Unlimited Access: -E-banking leads to greater customer satisfaction by offering unlimited access
to the bank not limited by the walls of the branch.
6. Less Risk: - There is greater security to the customer as they can avoid traveling with cash.

SECURITY ASPECTS OF E-BANKING TRANSACTIONS:

The security features available to customers include the following:

• Login details: The very first level of security is the login credentials you need to provide.
While setting up a password, you are prompted to choose an alphanumerical string that
includes special characters, and it also suggests an optimum password length.

• Encrypted data: The data is encrypted in such a way that none other than you and your
bank can understand and read it while it is transferred across the internet. The cipher
strength is so complicated that a hacker cannot crack the code easily.

• Serious account management: Banks ensure additional checks in case you wish to add a
new beneficiary or payee, or change your password or addresses. Hence a hacker will not
be able to log in to your account and transfer money or get a new Debit Card made.

• Logout: You can log in to your bank from only one device at a time. When you log out
the window or app, it is closed instantly. The browsers or apps back button won’t work.
And every time you want to return to your Digital Banking page, you will have to log in
again.

These are the general guidelines that all the banks follow. However some banks are going the
extra mile and elevating Digital Banking security even further through additional technology and
infrastructure. These security features include:

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 • IPIN security: The system generates an IPIN that is delivered to the user through a
tamperproof medium. It is not accessible to anyone, not even the system administrator.

• Session timeout: If the users online webpage is idle for some time, it will automatically
log them out.

• Digital certificate: The webpage of the banksserver is identified by a digital certificate

that assures customers they are on the correct site. So customers are prevented from
revealing their confidential information on wrong or fake websites.

• Virtual keyboard: Using a virtual keyboard to enter your password will protect your
credentials from being compromised by any keylogger software installed on shared
computers.

• Insta-alerts: You will receive instant SMS or email after registration for defined
transaction denominations or when you add a beneficiary.

• Security solutions: Firewalls, intrusion detection systems, intrusion prevention systems,

and anti-malware systems are installed.

CONCERNS/ISSUES WITH E-BANKING:

Traditional banking habits -

As mentioned earlier, 51% of US adults participate in online banking, however, in the hindsight,
49% of them still don’t. A majority of such people are susceptible to change and are well versed
in traditional banking. Such aversion to change is usually due to a lack of trust in the online
system or the inability to operate online portals. As a result, banks are struggling to convince
people to adopt online banking. In this case, banks can simply demonstrate the benefits of online
banking and the drawbacks of traditional banking to their customers.

Security and fraud instances -

Security and protection against fraud and hacking are some of the most significant challenges for
banks promoting online banking. In traditional banking, robbers would have to break into the
bank to steal money from customers. However, skilled hackers can crack bank security measures
to get customers detail and illicitly transfer money. For instance, almost 130 million British
pounds were stolen from online bank accounts in 2015 through fraud.
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Additionally, the expansion of e-commerce provides an opportunity for fraudsters to
misuse payment networks and steal sensitive information.

Cross-border transactions -
One of the critical success factors of online banking is the implementation of the cross-border
transaction as they play a vital role in global trade. However, historically, cross-border payments
have been slow, inefficient, and expensive. This is because most of the banks still use traditional
infrastructure including national banking infrastructure which results in non-uniform
development and software platforms that complicate the cross-border transaction. New
technologies including blockchain have been promising in overcoming such drawbacks to
facilitate smooth cross-border transactions.

Technical issues -
Banks are heavily reliant on online platforms to perform operational tasks including cash
transfers, transaction recording, and information storing. A single system crash or a bug in their
code can cause millions of dollars in losses or can even cause the bank to shut down its
operations temporarily. Similarly, customers can lose trust in online banking when it’s not
functional for that time. So, banks face challenges in not only running their online platforms
smoothly but also look towards their mobile apps.

Multi-currency and payment methods -

The rise of global e-commerce has posed new problems in the online banking sector, that of
using multiple currencies and payment methods. Consumers around the world use various
payment methods including credit card, debit card, bank transfers, e-wallets, and mobile
payments. Merchants accept payments through such means and in different currencies. However,
they face difficulty dealing with multi-currency, cross-border transactions, bank accounts,
business entities, and regulatory hurdles. Such problems can usually be solved by selecting a
payment service provider who can provide effective and immediate solutions to these problems.

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 CHAPTER - 2
REVIEW OF LITREATURE

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 REVIEW OF LITERATURE:

COMMITTEE REPORTS

1) Dr.C. Rangarajan Committee

Dr. Rangarajan committee had drawn up in 1983-84 the first blue print for modalities of drawing
up a phased plan for mechanization for the banking industry period covering 1985-89. The
committee in its report in1984 recommended introduction of computerization and mechanization
at branch, regional office/ zonal office levels of banks.

In 1988, another committee was considered under the chairmanship of Dr. Rangarajan for
making plans for computerization for the next five years from 1990-94 for the banking industry.
It identified the purpose of computerization as improvement in customer service, decision
making, housekeeping and profitability. The committee observed that banking is service industry
and improved efficiency will lead to faster rate of growth in output and help to expand
employment all around. The work force in banking industry must, therefore, look upon
computerization to improve costumer service and must welcome in that spirit.

2) W.S. Saraf Committee [1994]

In 1994, the governor, reserve bank of India had appointed a committee on technology issues
under the chairmanship of W.S. Saraf. The committee considered technological issues related to
the payment system and to make recommendations for widening the use of modern technology in
the banking industry. The Saraf committee also reviewed the telecommunication system like use
of BANKNET and optimum utilization of SWIFT by the banks in India.

3) Shere Committee [1995]

In 1995, RBI formed a committee under the championship of K.S. Shere, to study all aspects
relating to electronic funds transfer and propose appropriate legislation. The Shere committee
had recommended framing of RBI (EFT system) regulation under section 58 of Reserve bank of
India Act 1934 (RBI Act), amendments to the RBI act and to the bankers book evidence act,

23
1891 short term measure and enacting of a few new acts such as EFT act, the computer misuse
and data protection act etc. as long term measures.

4) Narsimhan Committee [1998]

To examine the various issues related to the technology upgradation in the banking sector. The
Reserve bank of India appointed Narsimhan Committee in September 1998. The committee
consist of representative from the government , Reserve bank of India, banks and academic
institution associated with the information technology. The committee dealt with the issues on
technology upgradation and observed the most of the technology that could be considered
suitable for India in some form or the other has been introduced in some diluted form or as a
pilot project.

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 CHAPTER – 3
RESEARCH METHODOLOGY

25
 RESEARCH METHDOLOGY

It is a methodology for collecting all sorts of information and data pertaining to the subject in
question. The objective is to examine all the issues involved and conduct situational analysis.
The methodology include the overall research design, sampling procedure and field work done.
The methodology used in the study consistent of sample survey using both primary and
secondary data.

Collection Data:-

The data can be collected from primary and secondary sources. Statistical data can be classified
into two category: -

1) Primary source
2) Secondary source

PRIMARY SOURCE:-It is collected by using questionnaire, observation method.

SECONDRY DATA:- The main source of secondary data are combination of information from
the internet, annual report and book of the related topic.

SAMPLE SIZE:-sample of 50 people was taken into study, and there data was collected.

SAMPLING TECHNIQUE: -To study the project , a simple random sampling technique is
used.

DATA ANALYSIS: -After data collection, I am able to analysis costumer views ideas and
opinions related to services of the DIGITAL BANKING and banks will come to know the
customer satisfaction and requirements.

DATA INTERPRETATION: - It is done by using statistical tools like pie diagram, bar graph
and using quantitative techniques accurate information is obtained.

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 OBJECTIVE OF STUDY

The overall objective of the present study is to analyze the “CostumerSatisfaction with the digital
marketing”. Some other important objective of the report are as follows:-

• To find out the satisfaction level of digital banking users.

• To know the level of digital banking users after and before demonetization.
• To analyses which factors influence the respondents to use the internet banking.
• Trends in banking innovation.
• Impacts of IT in on banks.
• Benefits of digital banking.

SCOPE OF THE STUDY

A big boom has been witnessed in banking industry in recent time. Many players are there in the
market an dare trying to gain market share in this rapidly improving market. The study then goes
on to evaluate and analyses the finding to present a clear picture of trends in banking sector
specially e-banking.

LIMITATION OF THE STUDY

➢ The research is confined to certain part of Baddi (specially in rural area only) and does
not necessarily shows a pattern applicable to all of country.
➢ Some respondents were reluctant to divulge personal information which can affect the
validity of all responses.
➢ In a rapidly changing industry, analysis on one day or in one segment can change very
quickly. The environmental changes are vital to be considered to assimilate findings.
➢ People were mostly unwilling to talk because of there heavy schedule or they get
annoyed with the phone calls or even if they are asked about this face to face.

27
 CHATPTER – 4
DATA ANALYSIS & INTREPRETATION

28
 DATA INTERPRETATION:-

The data interpretation is based on 50 respondance of survey.

1. DO YOU SEE ANY ONLINE BANKING SERVICE?

Banking Students Businessman Homemaker shopkeeper Working

service women

YES 10 9 0 4 8

NO 0 1 10 6 2

online banking
12 users
10 10
10 9
8
8
6
6
4
4
2
2 1
0 0
0
students business man home maker shopkeeper working women

yes no

Interpretation: As data is showing the no. of users of Digital Banking. Maximum respondents
are not using online services. Total 31 out of 50 respondents are using digital banking service. It
can be clearly viewed that students, businessman, shopkeepers, working women are using digital
banking but homemaker are not using.

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 2. WHICH BANKS INTERNET ACCOUNT SERVICES YOU ARE USING?

BANKS NO. OF USERS

SBI 15
PNB 8
AXIS 6
HDFC 1
OTHERS 2

NO. OF
USERS

3 6
% %
19
% 47
%

25
%

sbi pnb axis hdfc

others

INTERPRETATION:

Respondents who are using the digital banking services, most of them are public bank’s
customers. And they are very few users of private bank’s customers. The reason behind this
result can be the trust factor on public company or bank.

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 3. HOW LONG YOU ARE USING ONLINE BANKING / MOBILE BANKING?

Before or after No. of users

demonetization
Earlier demonetization 6
After demonetization 25

No of
users

19
%

Earlier
demonetization
After demonetization

81
%

INTERPRETATION:

As the data is showing that the most users of digital banking are after the demonetization 8, Nov
2016 of the currency. Before it is very few users of the internet banking. So, far the growth of
digital banking the demonetization makes a positive situation.

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 4. HAVE YOU PURCHASED ANY PRODUCT USING ONLINE OPTION
THROUGH WWW?

No. of users

30%
YES
NO

70%

INTERPRETATION :

When it comes to purchase products online there are very minimum no. of users who are
purchasing through websites. The respondents who have asked that they are using the digital
banking they were again asked that how many time they use digital banking and the answer was
irregularly or very commonly.

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 5. DO YOU FEEL SAFE IN DISCLOSING YOUR DETAILS ON INTERNET?

RESPONSE

10%

YES
NO

90%

INTERPRETATION:

When it come to security, maximum users who are using digital banking cannot believe on
sharing or disclosing detail online. As there are so many cases they have heard about the online
fraud.

33
 6. WHAT BANKING SERVICES DO YOU USE WHICH YOUR INTERNET BANK
OFFERS?

RESPON
SE

18 BILL PAYMENT
% STOP PAYMENT
6 BALANCE
%
54 ENQUIRY WIRE
8 % TRANSFER
% 10
E-ALERTS
% 4
% OTHERS

INTERPRETATION:

Maximum user are using digital banking for bill payments (54%) online purchases, balance
enquiry etc. As it provides the conveniences, quick, any time service facility.

34
 7. REASONS FOR OPENING INTERNET BANK ACCOUNT?

REASO
20
NS
18 19
16
14 16

12
10
8 10

6
4
2 4
0
CONVENIEN CORIOSI SAFE AND LOW SERVICE
CE TY SECURE CHARGE
REASO
NS

INTERPRETATION:

The respondents who are using digital banking services the reason behind going online was
convenience, curiosity, publicity and low service charges.

35
 8. RATING ABOUT THE SERVICE EXCELLENCE BY CUSTOMERS WHO ARE
USING ONLINE BANKING?

RATING
EXCELLENT GOOD NEUTRAL
POOR
31

25
21

19
18
10

9
6

4
3

3
1
0
0

0
0
0

0
0

BILL PAYME E-ALE BALANCE ENQUIRY STOP PAY OTHE

NT RT MENT RS

INTERPRETATION:

When the customers were asked to rate the services according to their excellence, E- alert are
rated higher as excellent service, then convenience in balance enquiry was found excellent by the
25 respondents and then bill payment service which shows the satisfaction level of the
customers.

36
 9. REASONS FOR NOT USING NET BANKING.

NO. OF
RESPONSE
NO KNOWLEDGE ABOUT
SUCH SERVICES
5% SECURITY AND TRUST
5% 16
%
16 DIGITAL ILLITERECY
%
REQUIREMENT OF
11
% INTERNET
47
%
FOUND IT DIFFICULT TO
OPERATE

HIDDEN CHARGES

INTERPRETATION:

Respondents were asked to specify the reasons for not using net banking. After discussion with
respondents, it was found that respondents having different reasons for not using net banking.
Following were the main reason for not using internet banking:
• No knowledge of using internet.
• NO need of internet banking.
• Security and Privacy issues.
• No internet connection at home.

37
 10. USE OF E-WALLETS SERVICE OF DIFFERENT SERVICE PROVIDERS.

USERS
3% 3%
6%

36%

52%

PAYTM SBI BUDDY AIRTEL MONEY BHIM APP

OTHERS

INTERPRETATION:

In the mobile banking customers are using the Paytm wallet, SBI BUDDY and Airtel MONEY.
The reason can be the demonetization, goodwill of company, reputation or promotion
effectiveness etc.

38
CHAPTER – 5
CONCLUSION

39
 FINDINGS

• The analysis reveals the most that most the respondents are male, the reason for the low
proportion of female cardholders is due to the lack of awareness among them.
Respondents under service profession shop online while 0% respondents who is
housewife shop online.

• The maximum users are of Public bank like SBI.

• Reasons of not using online banking by the homemakers are digital illiteracy and
requirements of the gadget for internet banking.

• According to a newspaper, transactions on e-wallets have increased from 17 lakh per day
to 63 lakh per day and value of transactions has increased from Rs 53crore to Rs 191
crore. Volume of transaction using Rupay card has increased from Rs. 39.17 crore
toRs.236 crore.

• Most respondents are using the digital bank service after the demonetization. But the
respondents who are not using the digital banking after demonetizations they were asked
to give reasons.

• The adoption of e- banking is significantly associated with the number of banking

transactions per month among bank customers.

• It is found that some bank customer have not adopted e-banking services as they don’t
trust the internet as a channel for banking and it is complicated to use as well as they
cannot afford the internet fee.

• The benefits from e- banking are save time and cost less. It provide accurate, relevant and
up to date information.

40
CONCLUSION –

E-banking offers a higher level of convenience for managing one finance even from one home.
However it is continues to present challenges to the financial security and personal privacy
.Many people have had their account detail compromised, because of online banking. Thus, if
one is going to use it for financial transaction, he should be aware of the risk involved.
Awareness of the risk and problems enables him to take precaution for a more secured online
banking experience.

From the evaluation of the customer opinion, It is found that

flexibility and easy accessibility with convenience is the most desirable benefits followed by-
Providing accurate, relevant and up-to date information, saving time and cost less.

SUGGESTIONS / RECOMMENDATIONS –

• The following suggestions are recommended for enhancing e-banking / internet banking
services of banks to the customers:

• Banks would take necessarily step to create awareness among rural people about the
advantages of e-banking / internet banking services available in he banks.

• The e-banking / internet banking should be enhance to make the online enquiry and
online payment much easier to the customer.

• Most of the customers have not availed of the e- banking / internet banking services
because they don’t have trust the internet channel presuming it as complicated. So, bank
may set up a team of personnel to train the customer to get acquainted with internet
channel.

41
• Though E-banking/ internet banking is convenient and easy to use , customer are afraid
of adopting these services because they think that using these services are difficult and
complicated.so, on- site training can be provided to the bank customers who intended to
use e-banking/ internet services.

• To achieve this sound financial and banking service is essential and therefore Indian
bankers should take resolutions to implement the policy of E-inclusion in all the branches
which enables its customers to enhance the knowledge of E-banking and avail all form of
banking service.

42
 QUESTIONNAIRE
Respected Madam,
I am pleased to introduce myself as Abhinav Thakur. VI semester BBA student of
Maharaja Agrasen University. As a part of curriculum I have under taken
Dissertation on “A study on Digital Banking ”
I kindly request you to spend few minutes in filling this questionnaire. So that you
will be helping me to complete my project work..
Thanking you,
Yours sincerely,
Abhinav Thakur

Name :
Address:

1. Gender
i) Male ( )
ii) Female ( )
2. status:
Marital
i) Married ( )
ii) Unmarried ( )
3. Age:
i) Below 25 ( )
ii) Between 25-35 ( )
iii) Between 35-45 ( )

iv) Above 45 years ( )

4. Educational qualification
43
 i) Matriculation ( )
ii) Pre University ( )
iii) Graduation ( )
iv) Post Graduation ( )
v) Others ( )

5.Occupation
i) Professional ( )
ii) Businessmen ( )
iii) Govt service ( )
iv) Student ( )
v) Others ( )

6.Monthly income
i) Less than 10000 ( )
ii) 10000-15000 ( )
iii) 15000-20000 ( )
iv) Above 20000 ( )

7. Which type of a/c do you have in SBI bank?

i) Savings A/c ( )
ii) Current A/c ( )
iii) FD A/c ( )
iv) RD A/c ( )
v) Others ( )

8.Do you know about E- Banking / Internet Banking Service?

44
 i) Yes ( )
ii) No ( )

9.If Yes. How do you come to know about Internet Banking?

i)Friends ( )
ii)Relatives ( )
iii)Bankers ( )
iv)Advertisement ( )
10. Do you use Internet Banking services?
i)Yes ( )
ii)No ( )

11.While opening up the account, are you aware of Internet Banking services
provided by your bank?
i)Yes ( )
ii)No ( )

12. How did you get to know about Internet Banking services of your bank?
i) Personal visit ( )
ii) Executive from the bank ( )
iii) Advertisements ( )
iv) Friends/ Relatives ( )

13.Which of the following Banking services are you aware of?

i) ATM ( )
ii) Debit Card ( )
iii) Credit Card ( )
iv) Mobile banking ( )
45
 v) Internet banking ( )

14.How long have you been using the Internet Banking service?
i) Less than 1 month ( )
ii) 1 to 6 months ( )
iii) 6 to 12 months ( )
iv) More than 1 year ( )

15. By Which mode do you use Internet Banking?

i) Computer ( )
ii) Mobile ( )
iii) Other Source ( )

16. Have you performed any of the following activities on-line? (Please check all that
apply)
i) Tax filing ( )
ii) Purchased/sold financial product (e.g., stock, bonds) ( )
iii) iii) Neither of these ( )

17. How frequently do you use an Automated Teller Machine (ATM) per month?
i) Less than 1
ii) 1 to 3 times
iii) 3 to 8 times
iv) 8 to 12 times
v) over 12 times
18. What is the main reason that you typically visit your bank branch (please choose
the single most important reason)?
i) to make a deposit ( )
46
 ii) to get advice for investment options( )
iii) to inquire about a balance ( )
iv) to withdraw cash ( )
v) other ( )

19.Have you purchased any product through Online Sites?

i) Yes ( )
ii) No ( )
20.Approximately how many times have you purchased any product through the
Internet in the last 12 months?
Less than 1
i)1 to 3 times
ii) 3 to 8 times
iii) 8 to 12 times
iii) over 12 times

Thank you for the time you have spared for the interview. Your suggestions will
enable service providers to improve and enhance their services to suit their
customer’s requirements.
Date : ……………
Place : …………… Signature

47
BIBLIOGRAPHY-

BOOKS: E-Commerced by P.T. Joseph, S.J

REPORT: DIGITAL BANKING REPORT

SODHGANGA

WEBSITES: http://www.trendhunter.com/trends/commbank
http//www.trendhunter,com/trends/palm-scanning-atm
http//yourstory.com/2020/12/narendramodi-package-digital-cashless-economy
www.ijmbs.com
Economic Data February23, 2009
http//www.trendhunter.com/trends/bitcoin-bank

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