INTRODUCTION

Banks have to use information technology. The introduction of e-banking has

revolutionized and redefined the operating ways of banking. E-banking is also called
virtual banking or online banking. It is defined as the automated release of new and
traditional banking products and services directly to customers through electronic
interactive communication channels. Electronic banking refers to more than a few types
of services through which bank customers can request information and carry out most
retail banking services via computer, television, or mobile phone. E-banking technology
denotes a diversity of different services ranging of Automatic Teller Machines,
telephone
banking, Internet banking and, more recently, mobile banking. Electronic banking offers
great opportunities for banks to increase their transactions, extend their customer-
bases,
to reduce their operational and opportunity costs, reduced waiting times in branches
resulting in potential in sales performance and a larger global.
It provides benefits to customers such as convenience, personalization, freedom and
cost
advantages. Also, the customers no longer are detained to the opening hours of banks,
travel and waiting times are no longer necessary, and access to information regarding
banking services is now easily available. E-banking is a valuable and influential
instrument for profound development, supporting growth, promoting Innovation and
enhancing competitiveness. It has changed the face of commercial banking in current
times by bridging geographical, industrial and regulatory gaps as well as creating
pioneering Products and services and more market opportunities for both banks and
customers. The primary goal of this study is to make a comparative analysis of E-
banking
services of public and private sector banks with special reference to SBI and HDFC
Bank.
As information technology has created great impact on banking industry, acquiring
information about modern banking has become a top priority for all India’s leading and
up-and-coming banks. This research gives an in-depth understanding of public sector
v/s
private sector banks from the e-banking perspective. Contemporary, up-to-date, and
innovative equipment in the banking business.
India’s banking industry is progressively growing. A competitive environment has been
brought about by the economy’s deregulation and has spread throughout the service
sector, especially the banking industry. The banking industry has been a cornerstone of
every developing nation. It is responsible for carrying out and putting into effect
economic
changes. Any modification to this industry brought about by the adoption of new
technologies has a significant effect on the growth of the nation. Over the past 200
years,
the Indian financial sector has done quite well. All Indian banks provide their clients with
e-banking facilities. As customer awareness of the internet rises, banks’ involvement in
the ebanking industry deepen, and the internet’s reach extends, e-banking will play a
significant part in the Indian banking sector in the coming years.
HISTORICAL BACKGROUND
In India, banking first emerged near the close of the 18
th
century. The General Bank of
India was founded in 1786 but failed in 1791. The earliest bank was the Bank of
Hindustan, which was founded in 1770 and shut down in 1829–1832. The biggest and
most influential bank in India that is still in business is the State Bank of India. It began
operations as the Bank of Calcutta in June 1806. It was renamed Bank of Bengal in
1809.
The Bank of Bombay (1840) and the Bank of Madras (1843) were the other two banks
supported by the colonial government. Following the merging of these three banks in
1921, the Imperial Bank of India altered its The State Bank of India (Subsidiary Banks)
Act, 1959 gave State Banks of India authority of Eight state-connected banks in 1960.
State Bank Associate banks are the new name for these Institutions. In 1969, the Indian
government nationalized 14 major commercial banks, including Bank of India. Six more
private banks were nationalized in 1980. These nationalized banks are Primarily the
Indian economy’s creditors. Because of their massive size and broad networks, they
have
complete control over the financial sector.
In India, the banking sector is divided into two types: scheduled and non-scheduled
banks. Scheduled and non-scheduled banks are both classified as commercial banks
and
are governed by the Banking Regulation Act of 1949. The Reserve Bank of India Act,
1934 includes a schedule-II that includes the scheduled. Nationalized Banks, State
Bank
of India (SBI) and its subsidiaries; Regional Rural Banks (RRBs); foreign banks; and
other
Indian private sector banks are among the scheduled banks.
In general, banking in India is legitimately advanced in terms of supply, product variety,
and spread; yet, reaching the poor and rural areas remains a difficulty. The State Bank
of
India, which is growing its geographical branch network, as well as the National Bank
for
Agriculture and Rural Development (NABARD), which is offering a variety of services
like
microcredit, various credit facilities, and so on, have helped the government launch a
number of initiatives and Yojanas to address this issue.
More than 40% of the American banks that existed in 1929 collapsed between 1929 and
1933. Because there was no deposit protection, bank failures wiped out deposits and
compelled a Significant contraction of the money supply. The American central bank’s
delay allowed for a sudden contraction of liquidity and the exacerbation of real
economic
suffering. Similar to this, it has been stated that monetary conditions have an impact on
actual economic activity. It is said that when banks fail, the cost of lending
intermediation
rises, which has an impact on the real Economy.