Minor Project Report-II

On
“Customer satisfaction from E-Banking services of HDFC bank”
Submitted in Partial Fulfillment of the requirement for the Award of the
Degree of
Bachelor in Business Administration(General)

Submitted To: Submitted By: Ms. Komal Khatri Putul Kumari Assistant
Professor BBA(G) IV-C (Business Administration) 11421201721

BATCH 2021-2024
DEPARTMENT OF BUSINESS ADMINISTRATION
Maharaja Surajmal Institute
Recognized by UGC u/s 2(f),NAAC Accredited ‘A’ Grade
Affiliated to Guru Gobind Singh Indraprastha University, Delhi
C-4, Janakpuri, New Delhi-110058

1
CERTIFICATE OF COMPLETION

I Ms. Putul Kumari, Roll No. 11421201721 certifies that the Minor Project Report (218) entitled
“CUSTOMER SATISFACTION FROM E-BANKING SERVICES OF HDFC BANK" is done
by me and it is an authentic work carried out by me . The matter embodied in this has not been
submitted earlier for the award of any degree or diploma to the best of my knowledge and belief.

Signature of the student

2
CERTIFICATE OF COMPLETION

This is to certify that the Project Report entitled “CUSTOMER SATISFACTION FROM
E-BANKING SERVICES OF HDFC BANK” which is submitted by Putul Kumari in Partial
Fulfillment of the requirement for the Award of the Degree of Bachelor in Business
Administration(General) to Maharaja Surajmal Institute Affiliated to Guru Gobind Singh
Indraprastha University, C-4, Janakpuri, New Delhi-110058 is a record of the candidate own
work carried out by her under my supervision. The matter embodied in this report is original and
has not been submitted for the award of any other degree.

Signature of the Guide:

Name of the Guide: Ms. Komal Khatri

3
ACKNOWLEDGEMENT

In successfully completing this project, many people have helped me. I would like to thank all
those who are related to this project.

Primarily I would like to express special thanks to my project coordinator “Ms. Komal Khatri”
for their able guidance and support in completing my project. I got to learn more about this
project which will be very helpful for me. Her suggestions and directions have helped in the
completion of this project.

Finally, I would like to thank my parents and friends who have helped me with their valuable
suggestions and guidance and have been very helpful in various stages of project completion.

Putul Kumari

4
TABLE OF CONTENT

1. Title Page 01 2. Certificate 02 3. Acknowledgement 03 4. Table of Content 05

Chapter - 1
5. Introduction to the industry 06-08 6. Objective of the study 08 Chapter - 2
7. Introduction of internet banking
7.1. What is E-Banking 09 7.2. History of E-Banking 09-10 7.3. Need for
E-Banking 11 7.4. Types of E-Banking 12-13 7.5. Features of E-Banking 13 7.6.
Advantages and disadvantages of E-Banking 13-16 7.7. How E-Banking can ease our
life 16-18 7.8. Emerging challenges in E-Banking 18-19 Chapter - 3
8. Introduction of HDFC 20 9. HDFC Bank’s history 20-22 10. HDFC Bank’s services
22-25 11. Vision, Mission And Values, Promoters 25 Chapter - 4
12. Literature review 26-31 Chapter - 5
13. Research methodology
13.1. Nature 32 13.2. Research Design, Research Instrument,
Sample Design and size, and Sampling Unit 32-33 Chapter - 6
14. Data analysis and interpretation 34-38 15. Conclusion 39 16. Bibliography 40

5
CHAPTER - 1

INTRODUCTION TO INDUSTRY

Banking during Roman times was not as we understand banking in modern times. The majority
of banking services were conducted by private individuals, and not by large banking corporations
that exist today. Money lending not only allowed for those people who needed money to have
access to it, but that through direct transference between bankers, the actual usage of currency
was not needed because it could be done purely through financial intermediation.

The history of banking in India dates back several centuries, with the banking system evolving
over time to meet the changing economic needs of the country. Here is an overview of the major
milestones and periods in the history of banking in India:

Ancient and Medieval Era:

Early traces of banking can be found in ancient India, with references to money lending and
banking activities in texts such as the Arthashastra, written by Kautilya (Chanakya) around 300
BCE.
Indigenous Banking System: Indigenous banking systems, known as "Shroffs" and "Seths,"
emerged during the medieval era. These were private individuals or families engaged in money
lending and other financial activities.
Money Lenders: Money lending was prevalent, with merchants and moneylenders acting as
informal bankers.
Temples and Banks: Temples also played a role in banking, storing valuables and providing
loans.

Colonial Period:
The modern banking system was introduced during British colonial rule in the 18th and 19th
centuries.
Bank of Hindostan (1770): The Bank of Hindostan, established in Calcutta (now Kolkata), was
one of the earliest joint-stock banks in India.
Bank of Bengal (1806): The Bank of Bengal was established as one of the three presidency banks
by the British East India Company.
Presidency Banks (1806-1921): The establishment of presidency banks, including the Bank of
Bengal, the Bank of Bombay, and the Bank of Madras, in 1806 laid the foundation of the modern

6
banking system. These banks issued currency notes, provided commercial banking services, and
acted as bankers to the government.

Post-Independence Era:
After India gained independence in 1947, the Reserve Bank of India (RBI) was established in
1935 as the central banking authority. It became fully owned by the Government of India in
1949.
The RBI was entrusted with the responsibility of issuing and regulating currency, formulating
monetary policies, and supervising the banking system.
In the 1950s and 1960s, the government nationalized several major banks to enhance financial
inclusion and promote economic development. The first wave of nationalization took place in
1955, when the RBI acquired control of the Imperial Bank of India, which was renamed the State
Bank of India (SBI).
In 1969, another wave of bank nationalization occurred, in which 14 major private banks were
brought under government ownership. This move aimed to prioritize social welfare and direct
credit towards priority sectors.

Liberalization and Modernization:

In the early 1990s, India embarked on economic reforms, liberalizing the banking sector and
allowing private and foreign banks to operate in the country.
The Narasimham Committee Reports in 1991 and 1998 recommended various measures to
modernize the banking system, including the entry of private sector banks, the establishment of
asset reconstruction companies, and the introduction of prudential norms and risk management
practices.
As a result, private sector banks, such as ICICI Bank, HDFC Bank, and Axis Bank, emerged and
played a crucial role in bringing innovation, competition, and improved customer services to the
sector.

Modern Era:
New Private Banks: Starting from the 1990s, several new private banks, such as ICICI Bank,
HDFC Bank, and Axis Bank, emerged and expanded their operations.
Regional Rural Banks (RRBs): RRBs were established to provide banking services in rural areas
and promote agricultural and rural development.

7
Payment Banks and Small Finance Banks: In recent years, the Reserve Bank of India has issued
licenses for payment banks and small finance banks to cater to specific customer segments

Recent Developments:
The banking sector in India has witnessed further reforms and developments in recent years,
including the introduction of payment banks, small finance banks, and the implementation of the
Goods and Services Tax (GST).
The advent of digital banking and mobile banking has revolutionized the way customers access
banking services, with the government's initiatives like Digital India and Jan Dhan Yojana aiming
to promote financial inclusion.
Today, the banking system in India comprises a mix of public sector banks, private sector banks,
foreign banks, cooperative banks, and regional rural banks. These banks offer a wide range of
services, including savings accounts, current accounts, loans, investments, and online banking
facilities, catering to the diverse financial needs of individuals, businesses, and the government.
The banking sector has undergone significant technological advancements, with a focus on
digital banking and financial inclusion initiatives.

Objectives of the study

● To study about the factors that affect the customer perception towards e-banking of HDFC.
● To know about the satisfaction level of customers towards e-banking services. ● To
find out the major problem faced by the customers while using e-banking services.
 8
Chapter-2
INTRODUCTION OF INTERNET BANKING
Internet banking is changing the banking industry and is having major effects on banking
relationships. Banking is now no longer confined to the branches where one has to approach the
branch in person, to withdraw cash or deposit a cheque or request a statement of accounts. In true
internet banking an inquiry or transaction is processed online without any reference to the branch
at any time. Providing internet banking is increasingly becoming a “need to have” than a “nice to
have” service.

What is E-banking?
E-banking, also known as electronic banking or online banking, refers to the provision of
banking services and transactions through electronic channels, primarily using the internet. It
allows customers to access and manage their bank accounts, conduct financial transactions, and
avail various banking services using digital platforms such as websites, mobile applications, and
other electronic means.

E-banking offers a convenient and efficient alternative to traditional banking methods, enabling
customers to perform a wide range of banking activities without visiting a physical bank branch.
E-banking has transformed the banking industry, offering convenience, accessibility, and
efficiency to customers. It has become an integral part of modern banking, allowing individuals
and businesses to manage their finances conveniently from anywhere, at any time, using
electronic devices and internet connectivity.
Security is a critical aspect of e-banking, and banks employ various measures to ensure the safety
of customer data and transactions. These include encrypted communication protocols, two-factor
authentication, secure login procedures, and regular security audits.
Overall, e-banking offers convenience, accessibility, and flexibility to customers, allowing them
to manage their finances and conduct banking transactions anytime and from anywhere with an
internet connection.

History of E-banking in India

The history of e-banking in India can be traced back to the early 1990s when the country initiated
economic reforms and liberalization. Here is a chronological overview of the key milestones in
the evolution of e-banking in India:

1996: Introduction of Electronic Funds Transfer (EFT):- The Reserve Bank of India (RBI)
introduced the Electronic Funds Transfer (EFT) system to facilitate electronic fund transfers
between bank accounts.
EFT allowed customers to transfer funds electronically without the need for physical instruments
like cheques or demand drafts.

9
1997: Introduction of Real-Time Gross Settlement (RTGS):- The RBI introduced the
Real-Time Gross Settlement (RTGS) system, enabling interbank transfers with real-time clearing
and settlement.
RTGS facilitated large-value and time-critical fund transfers, ensuring secure and instantaneous
transactions.

1998: Introduction of Electronic Clearing Service (ECS):- The RBI introduced the Electronic
Clearing Service (ECS), a system for electronic clearing of recurring payments such as utility
bills, insurance premiums, and loan installments.
ECS provided a convenient and automated method for regular payment transactions.

2000: Guidelines for Internet Banking:- The RBI issued guidelines for banks to offer internet
banking services, allowing customers to access their accounts and conduct various banking
transactions through online platforms.
Banks began launching internet banking portals, providing features such as balance inquiries,
funds transfers, bill payments, and online account management.

2002: Introduction of National Electronic Funds Transfer (NEFT):- The RBI launched the
National Electronic Funds Transfer (NEFT) system, enabling individuals, businesses, and banks
to transfer funds electronically between bank accounts across India.
NEFT allowed customers to make low-value fund transfers on a batch-wise basis, typically with
settlement cycles throughout the day.

2004: Introduction of Mobile Banking:- Banks started offering mobile banking services,
allowing customers to access banking services and perform transactions using mobile devices.
Initially, mobile banking services included basic functionalities like balance inquiries and alerts,
but later expanded to include funds transfers and bill payments.

2010: Introduction of Immediate Payment Service (IMPS):- The National Payments

Corporation of India (NPCI) launched the Immediate Payment Service (IMPS), a real-time
interbank electronic funds transfer system.
IMPS allowed customers to make instant and round-the-clock fund transfers using various
channels, including mobile phones, internet banking, and ATMs.

2016: Introduction of Unified Payments Interface (UPI):- The NPCI launched the Unified
Payments Interface (UPI), a system that enabled customers to link multiple bank accounts to a
single mobile application.
UPI revolutionized digital payments by providing a seamless and interoperable platform for
peer-to-peer payments, merchant payments, and other financial transactions.

Present and Beyond:- E-banking in India has continued to evolve, with banks and fintech
companies introducing innovative services and technologies.
Features such as biometric authentication, digital wallets, contactless payments, and artificial
intelligence-driven virtual assistants are being integrated into e-banking platforms.

10
The government's initiatives like Digital India, Jan Dhan Yojana, and the promotion of digital
payments have further accelerated the adoption and growth of e-banking in India. The history of
e-banking in India showcases the gradual transformation of banking services from traditional
brick-and-mortar branches to digital platforms, offering customers convenience, accessibility, and
a wide range of banking services at their fingertips.

Need for E-banking

One has to approach the branch in person, to withdraw cash or deposit a cheque or request a
statement of accounts. In true internet banking, any inquiry or transaction is processed online
without any reference to the branch at any time. Providing internet banking is increasingly
becoming a “need to have” than a “nice to have” service. Net banking, thus now, is more of a
norm rather than an exception in many developed countries due to the fact that it is the cheapest
way of providing banking services. Banks have traditionally been in the reform of harnessing
technology to improve their product, services and efficiency.

DIAGRAM OF E-BANKING SYSTEM

 11
Types of E-banking

There are several types of E-banking, each catering to different needs and preferences of
customers. Here are some common types of e-banking:

❖ Internet Banking:
Internet banking, also known as online banking, allows customers to access and manage
their bank accounts through a bank's website or online portal. Customers can perform
various transactions such as balance inquiries, funds transfers, bill payments, account
statements, and online account management.

❖ Mobile Banking:
Mobile banking refers to the use of mobile devices, such as smartphones or tablets, to
access banking services. Banks offer mobile banking applications that enable customers
to perform transactions, check balances, transfer funds, pay bills, receive alerts, and
access other banking services on their mobile devices.

❖ ATM (Automated Teller Machine) Banking:

ATM banking involves conducting banking transactions through automated teller
machines. Customers can withdraw cash, deposit funds, transfer money between
accounts, check balances, and perform other basic transactions using ATMs. Some
advanced ATMs also provide additional services like bill payments and account
 statements.

❖ Phone Banking:
Phone banking allows customers to access banking services and perform transactions
through phone calls. By calling the bank's customer service number, customers can
inquire about account details, transfer funds, request cheque books, and avail various
banking services with the assistance of bank representatives.

❖ SMS Banking:
SMS banking involves using text messages (SMS) to perform banking transactions or
receive banking-related information. Customers can send specific codes or keywords via
SMS to their bank's designated number to inquire about account balances, request
mini-statements, receive transaction alerts, and perform certain types of transactions.

❖ USSD Banking:
Unstructured Supplementary Service Data (USSD) banking is a type of mobile banking
that allows customers to access banking services through basic feature phones or
smartphones without requiring internet connectivity. Customers can dial a specific USSD
code on their mobile devices to perform transactions, check balances, transfer funds, and
avail other banking services.

❖ Electronic Wallets:
Electronic wallets, also known as digital wallets or e-wallets, are virtual wallets that
allow customers to store and manage their payment information securely. E-wallets

12
enable customers to make online purchases, transfer funds, pay bills, and conduct other
financial transactions electronically using their stored payment details.

❖ Online Payment Systems:

Online payment systems provide a platform for making payments or transferring funds
electronically. These systems facilitate transactions between buyers and sellers, enabling
customers to make online purchases, pay bills, transfer funds, and make person-to-person
payments securely through the internet.

❖ Social Media Banking:

Some banks are utilizing social media platforms to provide banking services. Customers
can access certain banking services, receive updates, inquire about account information,
and interact with customer support through social media channels such as Facebook,
Twitter, and WhatsApp.

It's important to note that the availability of these e-banking services may vary across
different banks and regions. Customers should consult their respective banks to
understand the specific e-banking services offered and their associated features and
functionalities.

Features of E-banking

➢ E-banking provide exceptional rates on saving, CDs, and IRAs

 ➢ Checking with no monthly fee, free bill payment and rebates on ATM surcharges
➢ Credit cards with low rates
➢ Easy online applications for all accounts, including personal loans and mortgages
➢ 24 hour account access
➢ It provides quality customer service with personal attention
➢ It provides the quick services to their customers
➢ Enable s transfer of funds from one place to another
➢ Exchange of statistical information among banks
➢ Enable foreign exchange operations
➢ Inter-bank applications like statement of funds between banks
➢ Provides facilities like demat operation ATM operation, online banking

Advantages of E-banking

E-banking, or electronic banking, offers several advantages for both banks and customers. Here
are some key advantages of e-banking:

Advantages for Banks:

➔ Cost Savings: E-banking allows banks to reduce operational costs by minimizing the
need for physical branches and staff. This leads to significant cost savings in terms of
infrastructure, maintenance, and personnel expenses.

13
➔ Increased Efficiency: E-banking streamlines banking processes and reduces manual
interventions. It automates tasks such as transaction processing, account management,
and document verification, leading to improved operational efficiency and faster service
delivery.

➔ Expanded Market Reach: E-banking enables banks to extend their services to a larger
customer base. By providing online banking facilities, banks can reach customers in
remote areas or those who may not have easy access to physical bank branches, thereby
expanding their market presence.

➔ Enhanced Customer Relationship Management: E-banking platforms allow banks to

gather and analyze customer data, enabling them to gain insights into customer
preferences, behavior, and needs. This data-driven approach helps banks to provide
personalized services, targeted marketing, and improved customer relationship
management.

➔ Competitive Advantage: E-banking enhances banks' competitiveness in the market. By

offering innovative and convenient digital services, banks can differentiate themselves
from their competitors, attract new customers, and retain existing ones.

Advantages for Customers:

➔ Convenience and Accessibility: E-banking provides customers with convenient access to

 banking services anytime and anywhere. They can perform transactions, check account
balances, and access financial information through online platforms or mobile banking
apps, eliminating the need to visit physical bank branches.

➔ Time and Cost Savings: E-banking saves customers time and money. They can conduct
transactions and access account information quickly without having to visit a physical
bank branch. This saves transportation costs and reduces the time spent in queues or
waiting for assistance.

➔ 24/7 Availability: E-banking services are available 24/7, including weekends and
holidays. Customers can perform transactions and access account information at their
convenience, without being restricted by banking hours.

➔ Quick and Efficient Transactions: E-banking enables fast and efficient transactions.
Customers can transfer funds between accounts, make bill payments, and initiate
electronic fund transfers with just a few clicks. This saves time compared to traditional
methods, such as writing cheques or visiting payment centers.

➔ Enhanced Security: E-banking platforms prioritize security measures to protect customer

information and transactions. Encryption techniques, secure login procedures, and
multi-factor authentication help safeguard customer data and prevent unauthorized

14
access, providing customers with peace of mind regarding the security of their financial
transactions.

➔ Access to a Variety of Services: E-banking offers customers a wide range of banking

services. They can open new accounts, apply for loans, request debit or credit cards, and
manage investment portfolios online. E-banking platforms also provide access to
additional financial services, such as insurance, mutual funds, and online trading.

➔ Real-Time Account Monitoring: E-banking allows customers to monitor their accounts

in real-time. They can check their account balances, review transaction history, and
receive alerts for account activities, enabling them to stay updated and in control of their
finances.

➔ Paperless Transactions: E-banking reduces the need for paper-based transactions and
documentation. Customers can receive electronic statements, make electronic payments,
and reduce their environmental footprint by minimizing paper usage.

➔ Integrated Financial Management: E-banking platforms can be integrated with other

financial management tools. Customers can link their e-banking accounts with personal
finance management software, budgeting apps, or digital payment platforms, allowing
them to have a comprehensive view of their finances and better manage their money.

➔ Customer Support: E-banking platforms often provide customer support services

through multiple channels, including chatbots, online chat, or phone assistance. This
enables customers
Disadvantages of E-banking

While e-banking offers numerous advantages, it also has some disadvantages that customers and
banks should be aware of. Here are some common disadvantages of e-banking:

➔ Security Risks: E-banking involves the transmission of sensitive financial information

over electronic networks, which can be vulnerable to security breaches, hacking, or
phishing attacks. Customers need to be cautious about protecting their login credentials,
using secure networks, and ensuring the authenticity of banking websites or apps.

➔ Technical Issues: E-banking relies on technology infrastructure, and technical glitches or

system failures can occur. Customers may experience disruptions in accessing their
accounts, making transactions, or receiving real-time updates. Such technical issues can
cause inconvenience and frustration for customers.

➔ Lack of Personal Interaction: E-banking eliminates face-to-face interaction with bank

staff. Some customers may prefer personal assistance or guidance when it comes to
complex financial transactions, account management, or issue resolution. E-banking may
not cater to customers who value personal relationships with bank employees.

15
➔ Dependence on Technology: E-banking requires customers to have access to electronic
devices, internet connectivity, and technological literacy. Customers who lack access to
technology or have limited computer skills may face difficulties in utilizing e-banking
services effectively.

➔ Limited Cash Transactions: E-banking platforms often limit or exclude cash

transactions. Customers who frequently deal with cash-based transactions, such as small
businesses or individuals in cash-based economies, may find e-banking less suitable for
their needs.

➔ Transaction Limitations: E-banking platforms may impose transaction limits or

restrictions on fund transfers, withdrawals, or other financial activities. These limitations
can inconvenience customers who require higher transaction volumes or have specific
financial requirements.

➔ Privacy Concerns: E-banking involves the collection and storage of customer data.
Customers may have concerns about the privacy and security of their personal and
financial information. It is essential for banks to have robust privacy policies and
practices in place to address these concerns.

➔ Technical Complexity: E-banking platforms can be complex and require customers to

navigate through multiple features, settings, and options. Some customers, particularly
those with limited technological expertise, may find it challenging to navigate and
understand the various functionalities of e-banking platforms.

➔ Dependency on Internet Connectivity: E-banking relies on stable internet connectivity.

 Customers in areas with unreliable or limited internet access may face difficulties in
accessing e-banking services consistently.

➔ Limited Cash Handling Services: E-banking platforms may have limited options for
cash handling, such as depositing large amounts of cash or accessing physical currency.
Customers who rely on these services may find it inconvenient or impractical to solely
rely on e-banking.

It's important for customers to weigh these disadvantages against the benefits and consider their
individual preferences and needs when deciding to utilize e-banking services. Banks should also
address these concerns and provide adequate support to customers to mitigate any potential
drawbacks.

How E-banking can ease our life

E-banking, or electronic banking, can significantly ease our lives by offering convenience,
accessibility, and efficiency in managing our financial transactions and accounts. Here are some
ways e-banking can ease our lives:

16
❖ Convenience:- E-banking provides the convenience of accessing banking services
anytime and anywhere. Whether you're at home, at work, or on the go, you can easily
perform transactions, check account balances, and manage your finances with just a few
clicks or taps.
❖ 24/7 Availability:- E-banking services are available 24 hours a day, 7 days a week,
including weekends and holidays. This means you're not limited by banking hours and
can conduct transactions or access account information whenever it suits you best.
❖ Time and Cost Savings:- E-banking saves you time and money. You no longer need to
visit a physical bank branch, wait in long queues, or spend time commuting. With
e-banking, you can perform transactions and manage your accounts quickly and
efficiently from the comfort of your own home or office.
❖ Fast and Efficient Transactions:- E-banking allows for fast and efficient transactions.
Whether you need to transfer funds between accounts, pay bills, or initiate electronic fund
transfers, e-banking enables you to complete these tasks with just a few clicks. This saves
you time compared to traditional methods, such as writing cheques or visiting payment
centers.
❖ Access to a Wide Range of Services:- E-banking provides access to a variety of banking
services. You can open new accounts, apply for loans, request debit or credit cards, and
manage your investment portfolios online. E-banking platforms often offer additional
financial services such as insurance, mutual funds, and online trading, providing you with
a comprehensive suite of financial management tools.
❖ Real-Time Account Monitoring:- E-banking allows you to monitor your accounts in
real-time. You can check your account balances, review transaction history, and receive
alerts for account activities such as deposits, withdrawals, or bill payments. This real-time
 monitoring enables you to stay updated and in control of your finances.
❖ Enhanced Security Measures:- E-banking platforms prioritize security measures to protect
your financial information and transactions. Robust encryption techniques, secure login
procedures, and multi-factor authentication help safeguard your data and prevent
unauthorized access. This provides you with peace of mind regarding the security of your
financial transactions.
❖ Paperless Transactions:- E-banking reduces the need for paper-based transactions and
documentation. You can receive electronic statements, make electronic payments, and
reduce your environmental footprint by minimizing paper usage. This not only
contributes to a greener environment but also simplifies your financial record-keeping.
❖ Integration with Other Digital Services:- E-banking can be seamlessly integrated with
other digital services. You can link your e-banking accounts with digital payment
platforms, e-commerce websites, or personal finance management apps. This integration
enables you to have a comprehensive view of your finances and facilitates easy and
secure transactions in various online ecosystems.

17
❖ Personalized Services and Insights:- E-banking platforms leverage customer data and
analytics to provide personalized services and insights. Based on your transaction history
and banking patterns, you may receive customized product recommendations, targeted
offers, and financial advice. This tailored approach helps you make informed financial
decisions and maximize the benefits of e-banking.
Overall, e-banking eases our lives by offering convenience, accessibility, time and cost savings,
real-time monitoring, enhanced security, a wide range of services, and personalized experiences.
It empowers us with greater control over our finances and provides a seamless and efficient
banking experience in the digital age.
Emerging challenges in E-banking

While e-banking offers various advantages, it also faces several emerging challenges that banks
and customers need to address. Here are some key challenges in e-banking:
❖ Cybersecurity Threats:- E-banking is vulnerable to cybersecurity threats, such as hacking,
data breaches, malware attacks, and phishing scams. Cybercriminals are constantly
evolving their techniques, posing risks to customer data, transactions, and the overall
integrity of e-banking systems. Banks need to invest in robust cybersecurity measures and
educate customers about best practices for online security.
❖ Identity Theft and Fraud:- E-banking relies on digital identities and authentication
methods. However, identity theft and fraud remain persistent challenges. Cybercriminals
may attempt to steal customer credentials, impersonate them, or engage in fraudulent
activities. Banks should implement strong authentication mechanisms, transaction
monitoring systems, and customer education programs to mitigate these risks.
❖ Technology Infrastructure and Reliability:- E-banking relies on stable and reliable
technology infrastructure, including internet connectivity, servers, and mobile networks.
 Any disruptions or failures in these systems can hinder customers' access to e-banking
services and impact transaction processing. Banks need to ensure robust technology
infrastructure and have contingency plans to handle technical issues effectively.
❖ Regulatory Compliance:- E-banking operates within a complex regulatory framework.
Banks must comply with various regulations related to data protection, customer privacy,
anti-money laundering (AML), know-your-customer (KYC) requirements, and
cross-border transactions. Staying compliant with these regulations while providing
seamless e-banking services can be challenging and requires ongoing monitoring and
adaptation.
❖ Customer Education and Trust:- E-banking requires customers to understand how to use
online platforms securely and responsibly. Many customers may lack awareness of
potential risks, such as phishing scams or the importance of protecting their login
credentials. Banks should prioritize customer education initiatives to enhance their
understanding of e-banking security and build trust in the digital banking environment.

18
❖ Digital Divide and Access Disparities:- E-banking assumes access to digital devices,
internet connectivity, and technological literacy. However, there are still segments of the
population that face barriers in accessing these resources. Addressing the digital divide
and ensuring equal access to e-banking services is crucial to avoid excluding certain
customer groups from the benefits of digital banking.
❖ Regulatory and Technological Changes:- E-banking operates in a rapidly evolving
landscape, where both regulatory requirements and technological advancements
constantly change. Banks need to adapt to regulatory changes, such as new data
protection laws or cybersecurity regulations. They must also keep pace with technological
developments to offer innovative and secure e-banking services.
❖ Customer Experience and Support:- While e-banking offers convenience, some customers
may still require personalized assistance or face challenges in navigating complex digital
platforms. Banks should focus on providing intuitive user interfaces, responsive customer
support, and seamless integration of digital and human interactions to enhance the overall
customer experience.
❖ Data Privacy Concerns:- E-banking involves the collection and processing of customer
data. Customers may have concerns about how their personal and financial information is
stored, used, and shared. Banks must prioritize data privacy and transparency, adhering to
privacy regulations and ensuring secure data handling practices.
❖ Ethical Use of Customer Data:- E-banking generates vast amounts of customer data,
which can be leveraged for personalized services and targeted marketing. However, banks
need to establish ethical guidelines for the use of customer data, ensuring that data
analytics and profiling are conducted responsibly and with customer consent.

Addressing these emerging challenges requires collaboration between banks, regulators, and
customers. By adopting robust security measures, educating customers, staying compliant with
regulations, and continuously evolving to meet changing demands, e-banking can mitigate these
challenges and continue to provide secure and efficient financial services.

19
Chapter-3
Introduction of HDFC

HDFC Bank, officially known as Housing Development Finance Corporation Bank, is one of the
leading private sector banks in India. It was established in 1994 and is headquartered in Mumbai,
Maharashtra. HDFC Bank is renowned for its extensive range of financial products and services,
catering to individuals, businesses, and corporations.

As a customer-centric bank, HDFC Bank has gained a strong reputation for its commitment to
providing innovative and convenient banking solutions. It has a widespread network of branches
and ATMs across India, ensuring accessibility for customers in urban as well as rural areas.

HDFC Bank offers a comprehensive suite of banking services, including savings and current
accounts, fixed deposits, loans, credit cards, insurance products, and investment services. Its
digital banking platform, comprising online banking, mobile banking, and other electronic
channels, has been instrumental in providing seamless and efficient banking experiences for its
customers.

Over the years, HDFC Bank has been recognized for its consistent financial performance,
customer-centric approach, and robust risk management practices. It has received numerous
accolades and awards both in India and internationally, affirming its position as one of the most
trusted and respected banks in the country.

HDFC Bank's success can be attributed to its strong corporate governance, technological
advancements, focus on customer service, and a talented team of professionals. The bank's core
values of trust, transparency, and integrity form the foundation of its operations and guide its
interactions with customers, stakeholders, and the community.

With a commitment to driving financial inclusion and empowering individuals and businesses,
HDFC Bank continues to evolve and adapt to the changing needs of its customers. Its emphasis
on digital innovation, personalized services, and customer satisfaction has positioned it as a
leader in the Indian banking industry.
As HDFC Bank continues to expand its footprint and introduce new offerings, it remains
dedicated to its vision of being the most preferred financial solutions provider, creating
sustainable value for all stakeholders.

Company History - HDFC Bank Ltd.

1994:
HDFC Bank was incorporated on August 30 as the first private sector bank to receive in-principle
approval from the RBI.
Certificate of Commencement of Business is received on October 10 from RBI.

20

1995:
HDFC Bank issues equity shares to subscribers and allot shares to HDFC promoters and
employees' welfare trusts.
The bank opened its first branch in Ramon House at Churchgate, Mumbai on January 16.

1996:
HDFC Bank joins banking consortia of over 50 corporates.
The bank sets up a state-of-the-art dealing room to handle transactions in Indian financial
markets.
Certificates of Deposits receive a PP1+ rating, indicating a superior capacity for repayment.

1997:
HDFC Bank becomes one of the largest mobilizers of retail deposits through its network of 20
branches.
The bank establishes an ultra-modern hub in Powai, Mumbai for centralized operations and new
product introductions.
HDFC Bank signs up as a depository participant under NSDL.
Strategic alliances are formed with 10 overseas banks for derivatives offerings.
The bank introduces ATMs that converse in a regional language.

1998:
HDFC Bank ties up with the Ahmedabad Stock Exchange (ASE) as its clearing bank. Plans are
made to strengthen the branch network in Calcutta and tie up with National Stock Exchange
(NSE) and Bombay Stock Exchange (BSE) for loan against share facility. HDFC Bank becomes
the first bank in India to connect its ATM network with all three major global payment systems.
Joint ventures and partnerships are established with various companies for e-commerce solutions,
car finance packages, and mobile banking services.

2000:
HDFC Bank signs partnerships with Singapore Telecom, National Computer Systems, Maxtouch,
and other companies for e-commerce and mobile banking services. The bank launches Enet, an
online electronic banking solution, and offers preferential financing options for Tata passenger
cars.
Various tie-ups are formed for payment gateways, online credit, and mobile commerce services.
HDFC Bank expands its ATM network and receives recognition as the best domestic commercial
bank.

2001:
HDFC Bank opens a branch in Aurangabad.
Tie-ups are formed with HDFC Standard Life Insurance, MasterCard, and Visa for credit card
and insurance services.
Strategic alliances are established for net banking, accounting services, and eCash services.
The bank launches campaigns for its eAge savings account and introduces ATMs in Bangalore.

21
In 2002, HDFC Bank introduced online account aggregation service "OneView," opened new
branches, launched credit cards, and made changes to its board of directors.

In 2003, HDFC Bank unveiled a resident foreign currency account, co-branded credit cards, and
entered into various alliances and partnerships.

In 2004, HDFC Bank launched new products, repurchased loans, and expanded its network
through partnerships and acquisitions.

In 2005, HDFC Bank tied up with other banks, launched loyalty programs, and introduced credit
cards for farmers.

In 2006 and 2007, HDFC Bank opened branches, launched new facilities, and signed agreements
with different organizations.

In 2008 and 2009, HDFC Bank extended its reach, won awards, and launched various programs
and services.

In 2010 and 2011, HDFC Bank focused on expanding its network, launched new products, and
received accolades.

In 2012 and 2013, HDFC Bank made strategic investments, opened offices, launched mobile
banking apps, and focused on financial literacy initiatives.

In 2014 and 2015, HDFC Bank achieved branch milestones, launched new services, and won
awards.

In 2016 and 2017, HDFC Bank continued expanding its branch network, launched a digital bank
for SMEs, and introduced new initiatives and partnerships.

HDFC bank services

HDFC Bank offers a wide range of services to cater to the diverse banking needs of individuals,
businesses, and corporates.The bank has three key business segments:

❖ Wholesale Banking
The Bank's target market is primarily large, blue-chip manufacturing companies in the
Indian corporate sector and to a lesser extent, small & mid-sized corporates and
agri-based businesses. For these customers, the Bank provides a wide range of
commercial and transactional banking services, including working capital finance, trade
services, transactional services, cash management, etc. The bank is also a leading
provider of structured solutions, which combine cash management services with vendor
and distributor finance for facilitating superior supply chain management for its corporate
customers. Based on its superior product delivery / service levels and strong customer
orientation, the Bank has made significant inroads into the banking consortia of a number

22
of leading Indian corporates including multinationals, companies from the domestic
business houses and prime public sector companies. It is recognised as a leading provider
of cash management and transactional banking solutions to corporate customers, mutual
funds, stock exchange members and banks.

This business focuses on institutional customers such as

● Large corporates including MNCs
● Government bodies
● Emerging corporates
● Business banking/SMEs
● Infrastructure finance group

Products and Services

● Working capital facilities
● Term lending
● Project finance
● Debt capital markets
● Mergers and acquisitions
● Trade credit
● Supply chain financing
● Forex and derivatives
● Cash management services
● Wholesale deposits
● Letters of credit and guarantees
● Custodial services
● Correspondent banking

❖ Treasury
Within this business, the bank has three main product areas - Foreign Exchange and
Derivatives, Local Currency Money Market & Debt Securities, and Equities. With the
liberalization of the financial markets in India, corporates need more sophisticated risk
management information, advice and product structures. These and fine pricing on
 various treasury products are provided through the bank's Treasury team. To comply with
statutory reserve requirements, the bank is required to hold 25% of its deposits in
government securities. The Treasury business is responsible for managing the returns and
market risk on this investment portfolio.
The Treasury is the custodian of the Bank’s cash/liquid assets and manages its
investments in securities and other market instruments. It manages the liquidity and
interest rate risks on the balance sheet and is also responsible for meeting statutory
reserve requirements.

Products and Services

● Foreign exchange & derivatives
● Solutions on hedging strategies
● Trade solutions - domestic and cross border

23
● Bullion
● Debt capital markets
● Equities
● Research - Reports & commentary on markets and currencies
● Asset liability management
● Statutory reserve

❖ Retail Banking
The objective of the Retail Bank is to provide its target market customers a full range of
financial products and banking services, giving the customer a one-stop window for all
his/her banking requirements. The products are backed by world-class service and
delivered to customers through the growing branch network, as well as through
alternative delivery channels like ATMs, Phone Banking, NetBanking and Mobile
Banking.
The HDFC Bank Preferred program for high net worth individuals, the HDFC Bank Plus
and the Investment Advisory Services programs have been designed keeping in mind the
needs of customers who seek distinct financial solutions, information and advice on
various investment avenues. The Bank also has a wide array of retail loan products
including Auto Loans, Loans against marketable securities, Personal Loans and Loans for
Two-wheelers. It is also a leading provider of Depository Participant (DP) services for
retail customers, providing customers the facility to hold their investments in electronic
form.
HDFC Bank was the first bank in India to launch an International Debit Card in
association with VISA (VISA Electron) and issued the MasterCard Maestro debit card as
well. The Bank launched its credit card business in late 2001. By March 2015, the bank
had a total card base (debit and credit cards) of over 25 million. The Bank is also one of
the leading players in the "merchant acquiring" business with over 235,000 Point-of-sale
(POS) terminals for debit / credit card acceptance at merchant establishments. The Bank
is well positioned as a leader in various net based B2C opportunities including a wide
range of internet banking services for Fixed Deposits, Loans, Bill Payments, etc.

This business caters to

● Individual borrowers
● Salaried & professional borrowers
 ● Micro & medium sized businesses
● Extremely small businesses like kirana stores
● Self-help groups (SHGs)
● Non-resident Indians (NRIs)

Products and Services

● Auto loans
● Credit and debit cards
● Personal loans
● Home loans
● Gold loans
● Mortgages

24
● Commercial vehicles finance
● Retail business banking
● Savings account
● Current account
● Fixed and recurring deposits
● Corporate salary accounts
● Construction equipment finance
● Agri and tractor loans
● SHG loans
● Kisan Gold Card
● Distribution of mutual funds, life, general and health insurance
● Healthcare finance
● Offshore loans to NRIs
● NRI deposits
● Small-ticket working capital loans
● Business loans
● Two-wheeler loans
● Loans against securities

Vision, Mission And Values

HDFC Bank’s mission is to be a world class Indian bank. We have a two-fold objective: first, to
be the preferred provider of banking services for target retail and wholesale customer segments.
The second objective is to achieve healthy growth in profitability, consistent with the bank’s risk
appetite.
The bank is committed to maintaining the highest level of ethical standards, professional
integrity, corporate governance and regulatory compliance. HDFC Bank’s business philosophy is
based on five core values: Operational Excellence, Customer Focus, Product Leadership, People
and Sustainability.

Promoter
HDFC is India's premier housing finance company and enjoys an impeccable track record in
India as well as in international markets. Since its inception in 1977, the Corporation has
maintained a consistent and healthy growth in its operations to remain the market leader in
mortgages. Its outstanding loan portfolio covers well over a million dwelling units. HDFC has
developed significant expertise in retail mortgage loans to different market segments and also has
a large corporate client base for its housing related credit facilities. With its experience in the
financial markets, strong market reputation, large shareholder base and unique consumer
franchise, HDFC was ideally positioned to promote a bank in the Indian environment.

25
Chapter-4
Literature review
★ Author Name:- Malhotra, Pooja & Singh, B.
Topic:― Determinants of Internet banking adoption by banks in India
This study is an attempt to present the present status of Internet banking in India and the
extent of internet banking services offered by Internet banks. In addition, it seeks to
examine the factors affecting the extent of Internet banking services. The data for this
study are based on a survey of bank websites explored during July 2008.The sample
consists of 82 banks operating in India at 31 March 2007. Multiple Regression technique
is employed to explore the determinants of the extent ofInternet banking services. The
results show that the private and foreign Internet Banks have performed well in offering a
wider range and more advanced services of Internet banking in comparison with public
sector banks. Among the determinants affecting the extent of Internet banking services,
size of the bank,experience of the bank in offering Internet banking , financing pattern and
ownership of the bank are found to be significant. The primary limitation of the study is
the scope and size of its sample as well as other variables (e.g. market,environmental,
regulatory etc ) which may have an effect on the decision of the banks to offer a wide
range of Internet banking services. The purpose of the study is to help fill significant gaps
in knowledge about the Internet banking landscape in India.The findings are expected to
be of great use to the government, regulators,commercial banks, and other financial
institutions, e.g. co-operative bank planning to offer Internet banking , bank customers
and researchers.

★ Author Name: Polaris Software Lab Limited (POLS.BO)

Topic:― Polaris Software andIndusInd Bank launch INTELLECT PRIVACY Internet
Banking Security Card, PRNewswire
In this study Polaris Software Lab Limited (POLS.BO), a leading Financial
TechnologyCompany, launched Intellect(TM) PRIVACY based on state-of-the-art
technology and four patents filed by the Indian Institute of Technology Madras.
IndusIndBank has become the first bank in India to implement Intellect(TM) PRIVACY,
an online and internet banking security card, for its internet banking customers. The
Technology will protect customers and banks from practically all kinds of phishing
attacks, viz. deceptive e-mail, key/screen logger, brute force/dictionary attacks
 andTrojans, etc. Intellect PRIVACY uses multi factor, dynamic authentication technology
providing for authorizing online banking transactions, in a completely secure platform.
Commenting on the innovation, Professor L S Ganesh,Coordinator of the programmer,
said, "At IIT Madras, the Department ofComputer Science and Engineering and the
Department of Management Studies Got particularly interested in designing an internet
security technology that is cost efficient and easy to use in a rapidly growing e-commerce
scenario, and transferring it commercially. We chose the Cost-Usability-Security (CUS)
approach to arrive at a solution and Polaris Software created an eminently usable
application for the banking industry. IndusInd Bank, which was looking to provide greater
security for web based transactions, became the first organization to adopt it." Intellect
PRIVACY is a simple plastic card that customers can use to generate a one-time

26
password (OTP) for carrying out any kind of online banking transaction including the
sign on.

★ Author Name:- Azouzi, D.

Topic:- The Adoption of Electronic Banking in Tunisia‖,Journal of Internet Banking and
Commerce
This paper aims to check if the current and prompt technological revolution altering the
whole world has crucial impacts on the Tunisia n banking sector.Particularly, this study
seeks some clues on which we can rely in order to understand the customers' behavior
regarding the adoption of electronic banking.To achieve this purpose, an empirical
research is carried out in Tunisia and it reveals that panoply of factors is affecting the
customers-attitude toward e-banking. For Instance; age, gender and educational
qualifications seem to be important and they split up the group into electronic banking
adopters and traditional banking defenders and so, they have significant influence on the
customers' adoption of e-banking.
Furthermore, this study shows that despite the presidential incentives and in spite of being
fully aware of the e-banking benefits, numerous respondents are still using conventional
banking. It is worthy to mention that the fear of loss because of transaction errors or
hackers plays a significant role in alienating Tunisiancustomers from online banking.

★ Author Name:-Uppal, R.K. & Chawla, R.

Topic:- E-Delivery Channel-Based BankingServices: An Empirical Study. Institute of
Chartered Financial Analysts of India (Hyderabad).
This study highlights customer perceptions regarding e-banking services. A survey of
1,200 respondents was conducted in October 2008 in Ludhiana district,Punjab. The
respondents were equally divided among three bank groups namely,public sector, private
sector and foreign banks. The present study investigates the perceptions of the bank
customers regarding necessity of e-banking services, quality of e-banking services, bank
frauds, future of e-banking, preference of bank customers regarding banks, comparative
study of banking services in various bank groups,preferences regarding use of e-channels
and problems faced by e-bank customers.The major finding of this study is that customers
of all bank groups are interested in e-banking services, but at the same time are facing
problems like,inadequate knowledge, poor network, lack of infrastructure, unsuitable
location,misuse of ATM cards and difficulty to open an account. Keeping in mind these
 problems faced by bank customers, this paper frames some strategies like customer
education, seminars/meetings, proper network and infrastructure facilities, online
shopping facilities, proper working and installation of ATMmachines, etc., to enhance
e-banking services. Majority of professionals and business class customers a s well as
highly educated and less educated customers also feel that e-banking has improved the
quality of customer services in banks.

27
★ Author Name:- Reeti, Sanjay, and Malhotra, A.
Topic:- “The Customers‘ perspectives regarding e-banking in an emerging economy.
Stated about the Customers‘ perspectives regarding e-banking in an emerging economy.
So that, the author determines various factors affecting customer perception and attitude
towards and satisfaction with e- banking is an essential part of a bank's strategy
formulation process in an emerging economy like India.To gain this understanding in
respect of Indian customers, the study was conducted on respondents taken from the
northern part of India. The major findings depict that customers are influenced in their
usage of e-banking services by the kind of account they hold, their age and profession,
attach highest degree of usefulness to balance enquiry service among e -banking services,
consider security & trust most important in affecting their satisfaction level and find slow
transaction speed the most frequently faced problem while using e-banking.

★ Author Name:-Hsun, K.S.

Topic:- Coherence of the financial service sector and adopts different observational
variables to identify innovation capital (training andR&D density) and process capital (IT
system sufficiency).
This study considers the coherence of the financial service sector and adopts different
observational variables to identify innovation capital (training and R&D density) and
process capital (IT system sufficiency). The results show that human capital has a direct
impact on both innovation capital and process capital, which in turn affect customer
capital; while finally, customer capital affects business performance. In addition, there is a
negative relationship between process capitaland customer capital in the financial service
sector. It suggests that in the financial service sector, customer satisfaction relies on a
sufficient degree of training and R&D density. Intemperate investment on the support of
e-banking operation systems may not be a good answer.

★ Author Name:-Laukkanen, P., Sinkkonen, S. & Laukkanen, T.

Topic:- Consumer resistance to internet banking: postponers, opponents and rejecters.
The purpose of this paper is to further the understanding of innovation resistance by
dividing internet banking non-adopters into three groups based on their intentions to use
the innovation. Thereafter, the aim is to identify how the resistance differs in these
customer groups.
This study identifies three groups of internet banking non-adopters, namely postpones,
opponents and rejecters. The Data were collected by conducting an extensive postal
survey among the retail banking customers in Finland who had not adopted internet
 banking. The Measurement development was based on consumer resistance theory and
the earlier literature on internet banking. Principal component analysis was used to
classify the resistance items into five adoption barriers derived from the earlier literature.
Thereafter, analysis of variance was used to analyze the statistical differences in
resistance to internet banking between the three groups.
Significant Differences were identified between the groups explored. The resistance of
therejecters is much more intense and diverse than that of the opponents, while the
postpones show only slight resistance. The results also indicate that psychological

28
barriers are even higher determinants of resistance than usage and value, which are
constructs related to ease-of-use and usefulness determining acceptance in the traditional
technology acceptance model. Moreover, the findings highlight the role of self-efficacy in
bank customers' risk perceptions to internet banking.

★ Author Name:- Routray

Topic:- Wireless ATM: A Technological Framework to M-Banking
The study describes companies that are becoming enablers for organizations to conduct
business more effectively and efficiently. One of the most effective applications is mobile
banking (m-banking). For any application to gain recognition technological advancements
play a vital role. To make m-banking applications a success, bandwidth management is an
important issue. The increased flexibility and mobility feature of wireless ATM and its
bandwidth on demand function is motivating a large number of carriers towards
deployment of the WATM networks. But there are certain issues which are required to be
addressed in WATM. The issues are cost effective planning of network, location
management and handover management. In this paper we have suggested and evaluated a
technological framework for the m-banking application using wireless ATM which
optimizes the bandwidth usage and provides a n effective handover management.
Simulation results show that the resultant framework is very effective in handling the
bandwidth and the handover issues in wireless ATM and provides an effective WATM
framework model.

★ Author Name:-Malhotra, P. & Singh, B.

Topic:- An analysis of Internet banking offerings and its determinants in India. Stated
about this research tells us that the larger banks, banks with youngerage, private
ownership, higher expenses for fixed assets, higher deposits and lower branch intensity
evidence a higher probability of adoption of this new technology. Banks with lower
market share also see the Internet banking technology as a means to increase the market
share by attracting more and more customers through this new channel of delivery.
Further, the adoption ofInternet banking by other banks increases the probability that a
decision to adopt will be made. An understanding of the factors affecting this choice is
essential both for economists studying the determinants of growth and for the creators and
producers of such technologies. From this perspective, understanding the factors
determining the adoption of technology becomes highly relevant from the policy point of
view. Moreover, the studies on the adoption of financial innovations are related to
developed markets, e.g. US or European banking markets. Hence, this paper contributes
to the empirical literature on diffusion of financial innovations,particularly Internet
 banking, in a developing country.

★ Author Name:- Shah & Braganza

Topic:- A Survey of Critical Success Factors in e-banking.
This survey indicates the Critical Success Factors in e- banking and the authors suggest in
this article that the organizational factors, which are critical to the success of e -banking,

29
are investigated. Different pieces of literature report different factors as key to success
and generally based on subjective, perceptual data. A synthesis of existing literature is a
basis for survey questions. The data was collected from UKbased financial sector
organizations who are offering their services on electronic channels, using postal
questionnaires. The top factors found to be most critical for the success in e-banking are:
quick responsive products/services, organizational flexibility, services expansion, systems
integration and enhanced customer service. An important lesson from this research is that
organizations need to view the e-banking initiative as a business critical area rather than
just a technical issue.The y need to give attention to internal integration, which may
include channels,technology and business process integration, and improving the overall
services to their customers.

★ Author Name:- Bauer, Malik & Falk

Topic:- Measuring the quality of e banking portals
This article reviews the measuring the quality of E-Banking portals. In the internet
economy, the business model of web portals has spread rapidly over the last few years.
Despite this, there have been very few scholarly investigations into the services and
characteristics that transform a web site into a portal as well as into the dimensions that
determine the customer‘s evaluation of the portal‘s service quality. Based on an empirical
study in the field of e-banking the authors validated the measurement model for the
construct of web portal quality based on the following dimensions: security and trust,
basic services quality, cross- buying services quality, added value, transaction support and
responsiveness.
Findings– The identified dimensions can reasonably be classified into three service
categories: core services, additional services, and problem-solving services.
Originality/value– The knowledge of these dimensions as major determinants of
consumer‘s quality perception on the internet provides banks a promising starting point
for establishing an effective quality management for their e-businesses.

★ Author Name:- Picado, Gonzalez & Eckelman

Topic:- Customer Satisfaction Using QFD
This study investigated the customer satisfaction using QFD and a research on service
quality and customer satisfaction has become significant in the service industries. This
study develops a case study that considers both external and internal service management
issues and subsequent service innovations based on the framework of quality function
deployment (QFD). The application of the customer window quadrant (CWQ) and the
action plan matrix in the analysis of customer and service elements constitute a different
approach for QFD. Some Benefits and disadvantages of the QFD process are discussed as
 compared to extant service quality and customer paradigms. Finally, suggestions and
directions are offered for future applications, with particular interest in the e-bank service
management issues.

30
★ Author Name:- Nitsure, R.R.
Topic:- E-Banking: Challenges and Opportunities
This article indicates the E-banking Challenges and opportunities lies in the banking
industry. E-banking has the potential to transform the banking business a s it significantly
lowers transaction and delivery costs. This paper discusses some of the problems
developing countries, which have a low penetration of information and
telecommunication technology, face in realizing the advantages of e- banking initiatives.
Major concerns such as the 'digital divide' between the rich and poor,the different
operational environments for public and private sector banks,problems of security and
authentication, management and regulation, and inadequate financing of small and
medium scale enterprises (SMEs) are highlighted.
 31
Chapter-5
Research methodology

What is Research…?
Research is defined as human activity based on intellectual application in the investigation of
matter. The primary purpose for applied research is discovering,interpreting, and the
development of methods and systems for the advancement of human knowledge on a wide
variety of scientific matters of our world and the universe.The term research is also used to
describe a n entire collection of information about a particular subject.

Methodology is the method followed while conducting the study on a particular project.Through
this methodology a systematic study is conducted on the basis of which the basis of a report is
produced.It is a written game plan for conducting Research. Research methodology hasmany
dimensions. It includes not only the research methods but also considers the logic behind the
methods used in the context of the study and explains why only a particular method or technique
has been used. It also helps to understand the assumptions underlying various techniques and by
which they can decide that certain techniques will be applicable to certain problems and others
will not. Therefore in order to solve a research problem, it is necessary to design a research
methodology for the problem as some may differ from problem to problem. The methodology
adopted for studying the objectives was surveying the in-house customers of these two banks in
the city of Jalandhar.

Nature
The methodology adopted to achieve the project objective involved a descriptive research
method. The information required for fulfilling the objective of study was collected from various
primary and secondary sources.

Primary data:
Questionnaire was used to collect primary data from respondents. The Questionnaire was
structured type and contained questions relating to different dimensions of e- banking preferences
among service class such as level of usage, factors influencing the usage of e-banking services,
benefits accruing to the users of e-banking services, problems encountered. An attempt was also
made to elicit reasons for its non-usage. The questions included in the questionnaire were
open-ended, dichotomous and offering multiple choices.

Secondary data:
• Articles on E-Banking taken from journals, magazines published from time to time.
• Through the internet.

RESEARCH DESIGN
Research design constitutes the blueprint for the collection, measurement and analysis of data.
The present study seeks to identify the extent of preferences of E- Banking over traditional
banking among service classes. The research design is descriptive in nature. The research has
been conducted on customers of various banks. For the selection of the sample, a convenient

32
sampling method was adopted and an attempt has been made to include all the age groups and
gender of every class.

RESEARCH INSTRUMENT
The instrument used for gathering data is questionnaire. To supplement the primary data and to
facilitate the process of drawing inference,secondary data was collected from published sources
like magazines, journals,newspapers etc.

SAMPLE DESIGN AND SIZE

In this research project Descriptive research design is used. Judgment andConvenience sampling
method will be used to get the information about onlinebanking. This method is used because we
are interested in exploring gender,age, or occupation disparities in terms of online banking in the
population. To conduct this research, a structured questionnaire is prepared and a sample of50
customers is taken from various banks.
SAMPLING SIZE
It indicates the numbers of people to be surveyed. Though large samples give more reliable
results than small samples but due to constraint of time and money, the sample size was restricted
to 50 respondents. The respondents belong to different ages and from different areas.

SAMPLING UNIT
It defines the target population that will be sampled i.e. it answers who is to be surveyed. In this
study, the sampling unit is the people of various banks residing in different regions.

33
Chapter-6
 Data
analysis and interpretation
From the study of the above chart it is found that 25 male, 23 female and 2 others are using
E-banking services of different banks. The male are having more knowledge about the
transactions and having more knowledge about the services provided by the banks. Only the
working ladies have knowledge about the services or the female having the knowledge but not of
all the services which are provided by the banks.
Most of the respondents who lie under the age of 20-30 are using E-banking services as
youngsters are more aware and familiar with these services because under the age of these
respondents they are having more knowledge about the services of e-banking.

34

1. Do
you
think
that

E-Banking services are necessary in the present scenario?

To make work easiest, all the respondents think that E-banking facilities are very useful and
necessary in the present scenario.

2. Are you availing E- banking services?

The results show that 100% respondents are availing E-banking services. It shows that even
after the faith in the traditional banking system the customers are adopting the new

technologies.

3. In which bank do you have your account?

 35
According to the above chart respondents have their accounts in different banks it shows that
the

services provided by most of the banks are more or less same.

4. Which of the following E- banking services do you prefer?

According to this study almost every customer is using more than 1 e-banking services one is
internet banking service and other is Debit Card is used by almost 93% of respondents and this
shows the trend that how customers are using E-banking and among all the E-banking products
debit cards and internet banking are mostly used by respondents because they are easy to use and
do not require technical or computer knowledge.

5. To what extent are you satisfied with your bank's E-banking services?

The most of the customers are really liked the facilities provided by banks as they strongly agree
that the facilities are good for them so they like to avail theE-banking services provided by the
different banks and the result shows that 35.7%respondents are highly satisfied with the
e-banking services provided by their bank and 53.6% respondents are satisfied with the
e-banking services provided by their bank and 10.7% respondents are neutral with the e-banking
services provided by their bank.

36
6. Which of the following benefits accrue to you while using E-banking services ? Most of
the respondents think that the major benefit from E-banking services are easy fund transfer and
time saving facility. Because the major problem which the respondents faced is time problem so
E-banking eases their lives and save their time so they like this facility

7. Which type of E-banking services do you want to use? 8. Which type of problem are
you facing while using E-banking services?
37
9. If you have option to switch over your bank for using E-banking services, so would
you switch your bank?
Only 15 percent of people want to switch their bank for using e-banking service. In this figure
most of the customers are related to the ICICI bank.

38
Conclusion

This study attempted to identify key quality attributes of internet banking services by analyzing
internet banking customers & their comments on banking experience.The findings of this study
show that despite of many advantages of online banking people still consider it as an alternative
for analyzing their bank records. Although every bank today provides the facility of online
banking, most of people use it only once a month. This reason is that in the case of internet
banking interpersonal interaction with customers is seldom possible. Identification &
measurement of customer‘s expectations of the internet banking services provide a frame of
reference & their related quality dimension. The main factors which persuade people to use
online banking are comfort & convenience & the facility which attracts the most is quality &
quantity of information.
Therefore the implementation of quality initiatives should begin with defining customer‘s needs
& preferences & their related quality dimensions. There is still a lot needed for the banking
system to make reforms and train their customers for using the internet for their banking
account.Going through the survey the main problem lies that still customers have a fear of
hacking of accounts and thus do not go on for internet banking. Banks are trying their level best
by providing the best security options to the customers but then there are a lot of factors which
betrays a customer from opening an internet bank account.Banks are providing free internet
banking services also so that the customers can be attracted. By asking the bank employees we
came to know that the maximum numbers of internet bank account holders are youth and
businessmen.
E-Banking is an innovative tool that is fast becoming a necessity. It is a successful strategic
weapon for banks to remain profitable in a volatile and competitive marketplace of today. If
proper training should be given to customers by the bank employees to open an account will be
beneficial secondly the website should be made friendlier from where the first time customers
can directly make and access their accounts. In future, the availability of technology to ensure
safety and privacy of e-transactions and the RBI guidelines on various aspects of internet banking
will definitely help in rapid growth of internet banking in India.

Limitations of the study

● As research is based on a sample, therefore, the findings may not reveal the factual
information about the research problem, though utmost care will be taken to select a truly
representative sample.
● Sudden changes in the e-banking practices during the course of research can affect the
results.
● The sample size was too small as compared to the sample population, so there can be
differences between results.
● Due to continuous change in the environment, the result of the study may be irrelevant
tomorrow.

39
BIBLIOGRAPHY

https://byjus.com/bank-exam/history-banking-india/
https://www.thesisbusiness.com/history-of-banking-in-india.html
https://image.slidesharecdn.com/report-160514185850/75/report-on-customer-satisfaction-from
e-banking-services-14-2048.jpg?cb=1665800809
https://www.investopedia.com/terms/o/onlinebanking.asp
https://www.forbes.com/advisor/banking/what-is-digital-banking/
https://byjus.com/commerce/e-banking/
https://www.centralbank.net/learning-center/how-digital-banking-can-make-your-life-easier/
https://www.bartleby.com/essay/How-E-Banking-Can-Ease-Our-Lives-F3ZMGFXY9CXQ
https://www.researchgate.net/publication/336950646_E-BANKING_CHALLENGES_AND_ISS
UES
https://economictimes.indiatimes.com/hdfc-bank-ltd/infocompanyhistory/companyid-9195.cms
https://www.hdfcbank.com/personal/about-us/overview/our-businesses
https://www.hdfcbank.com/
https://www.hdfcbank.com/personal/about-us/overview/who-we-are
https://www.hdfcbank.com/personal/about-us
https://www.emerald.com/insight/content/doi/10.1108/10662240710758957/full/html
https://www.prnewswire.com/news-releases/iit-madras-polaris-software-and-indusind-bank-laun
ch-intellect-privacy-internet-banking-security-card-84937752.html
https://www.researchgate.net/publication/237230944_The_Adoption_of_Electronic_Banking_in
_Tunisia_An_Exploratory_Study
https://iupindia.in/709/IJMR_E-Delivery_Channel_7.html
https://www.sciencedirect.com/science/article/abs/pii/S0969698909000198
https://www.inderscience.com/info/inarticle.php?artid=17539
https://www.emerald.com/insight/content/doi/10.1108/02652320810902451/full/html
https://www.semanticscholar.org/paper/Wireless-ATM%3A-A-Technological-Framework-to-Rou
tray-Sherry/fc12fe373fb147c87968d549c16a058da7c4a46e
https://www.emerald.com/insight/content/doi/10.1108/10662241011020851/full/html
https://www.tandfonline.com/doi/full/10.1057/palgrave.ejis.3000693
https://www.emerald.com/insight/content/doi/10.1108/02652320510584395/full/html
https://www.emerald.com/insight/content/doi/10.1108/09604520410546851/full/html
https://www.jstor.org/stable/4414436

40