Introduction

E-banking:Internet banking (or E-banking) means any user with a personal computer and a browser can get connected to his bank -s website to perform any of the virtual banking functions. In internet banking system the bank has a centralized database that is web-enabled. All the services that the bank has permitted on the internet are displayed in menu. Any service can be selected and further interaction is dictated by the nature of service. Once the branch offices of bank are interconnected through terrestrial or satellite links, there would be no physical identity for any branch. It would a borderless entity permitting anytime, anywhere and anyhow banking. The delivery channels include direct dialup connections, private networks, public networks, etc. with the popularity of computers, easy access to Internet and World Wide Web (WWW), Internet is increasingly used by banks as a channel for receiving instructions and delivering their products and services to their customers. This form of banking is generally referred to as Internet Banking, although the range of products and services offered by different banks vary widely both in their content and sophistication. Meaning of E-Banking E-bank is the electronic bank that provides the financial service for the individual client by means of Internet.

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DEFINITION OF E-BANKING For this booklet, e-banking is defined as the automated delivery of new and traditional banking products and services directly to customers through electronic, interactive communication channels. E-banking includes the systems that enable financial institution customers, individuals or businesses, to access accounts, transact business, or obtain information on financial products and services through a public or private network, including the Internet. Customers access ebanking services using an intelligent electronic device, such as a personal computer (PC), personal digital assistant (PDA), automated teller machine (ATM), kiosk, or Touch Tone telephone. While the risks and controls are similar for the various e-banking access channels, this booklet focuses specifically on Internet-based services due to the Internet’s widely accessible public network. Accordingly, this booklet begins with a discussion of the two primary types of Internet websites: informational and transactional. E-BANKING SUPPORT SERVICES

WEBLINKING:
A large number of financial institutions maintains sites on the World Wide Web. Some websites are strictly informational, while others also offer customers the ability to perform financial transactions, such as paying bills or transferring funds between accounts. WIRELESS E-BANKING: Wireless banking is a delivery channel that can extend the reach and enhance the convenience of Internet banking products and services. Wireless banking occurs when customers access a financial institution's network(s) using cellular phones, pagers, and personal digital assistants (or similar devices) through telecommunication companies’ wireless networks. Wireless banking services in the United States typically supplement a financial institution's e-banking products and services.

Person-to-Person Payments:
Electronic person-to-person payments, also known as e-mail money, permit consumers to send “money” to any person or business with an e-mail address. Under this scenario, a consumer electronically instructs the person-to-person payment service to transfer funds to another individual. The payment service then sends an e-mail notifying the individual that the funds are available and informs him or her of the methods available to access the funds including requesting a check, transferring the funds to an account at an insured financial institution, or retransmitting the funds to someone else. Person-to-person payments are typically funded by credit card charges transfer from the consumer’s account at a financial institution. Since neither the payee nor the payer in the transaction has to have an account with the payment service, such services may be offered by an insured financial institution, but are frequently offered by other businesses as well. Banking Services through Internet:

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Smart Card 4. but do not permit any fund-based transactions on their accounts. Credit Card 2. For this reason. These are: 1. In the next level are Simple Transactional Web sites which allows customers to submit their instructions.1) The Basic Level Service is the banks’ web sites which disseminate information on different products and services offered to customers and members of public in general. payment of different bills. Thus it is like an electronic purse. 3. Credit Cards: The credit card enables the cardholders to: Purchase any item like clothes. Debit Card 3. The above forms of Internet banking service the customer or by new banks. which can be read and debited by the required amount. It may be noted that while through a credit card. jewellery. The third level of Internet banking service are offered by Fully Transactional Web sites which allow the customers to operate on their accounts for transfer of funds. Some of these banks are known as ‘Virtual’ banks or ‘Internet only’ banks and may not have physical presence in a country despite offering different banking services. etc. but for getting the debit card. debit card are not as 3 . etc. It may receive and reply to customer’s queries through e-mail. Debit Cards: A debit card is issued on payment of a specified amount by the issuing company like a telephone company to a customer on cash payment or on debiting his account by a bank. who deliver banking service primarily through Internet or other electronic delivery channels as the value added services. 2. the customer first makes a purchase or avails service and pays later on. etc. ATM Card 1. queries in their account balances. a customer has to first pay the due amount and then make a purchase or avail the service. 2. railway/air tickets. etc. Pay bills for dining in a restaurant or boarding and lodging in hotel Avail of any service like car rental. Plastic Cards as Media for Payment: There are four types of plastic cards being used as media for making payments. applications for different services. subscribing to other products of the bank and to transact purchase and sale of securities.

which can be used for storing and processing information. When the specified amount is utilized by the customer. As he goes on making transactions with the help of the card. management and regulation. problems of security and authentication. which have a low penetration of information and telecommunication technology. etc. and inadequate financing of small and medium scale enterprises (SMEs) are highlighted. This paper discusses some of the problems developing countries. petrol bills. He can also deposit cash or cheque. E-banking has the potential to transform the banking business as it significantly lowers transaction and delivery costs. the different operational environments for public and private sector banks. 4. the balance keeps on reducing electronically. Smart Cards: Smart Cards have a built-in microcomputer chip. World over banks are reorienting their 4 . Major concerns such as the ‘digital divide’ between the rich and poor. he can approach the bank to get his card validated for a further specified amount.popular as credit cards. ATM Cards: The card contains a PIN (Personal Identification Number) which is selected by the customer or conveyed to the customer and enables him to withdraw cash up to the transaction limit for the day. a person can have a smart card from a bank with the specified amount stored electronically on it. 3. Such cards are used for paying small amounts like telephone calls. Why E-banking? There are not many inventions that have changed the business of banking as quickly as the e-banking revolution. For example. face in realising the advantages of e-banking initiatives.

Due to the absolute transparency of the market. electronic banking services. E-banking has offered many new business opportunities What Is E-banking? In simple words. If clients are not happy with the products. clients (both business as well as retail) can compare the services of various banks more easily. change strategic behaviour and thus bring about new possibilities. United Nations Conference on Trade and Development (UNCTAD) report has identified four challenges 5 . Around the world. have spread quickly in recent years.saving channel Challenges in E-banking for Developing Countries Based on ‘best practices’ in developed countries. E-banking has moved real banking behaviour closer to neoclassical economic theories of market functioning. It must be noted that the impact of e-banking is not limited to industrial and advanced emerging economies. progress in information technology has slashed the costs of processing information. use of the internet has significantly reduced the physical costs of banking operations. prices or services offered by a particular bank.business strategies towards new opportunities offered by e-banking. thus facilitating change in the very essence of the banking business. is more convenient and available around the clock irrespective of the customer’s location. As discussed by Turner (2001). Ebanking has enabled banks to scale borders. it has been transformed by the the internet – a new delivery channel that has facilitated banking transactions for both customers and banks. For customers. In more recent times. whether delivered online or through other mechanisms. they are able to change their banking partner much more easily than in the physical or real bank-client relationship. on the internet. From the banks’ point of view. while the internet has facilitated its transmission. it is a much more efficient and cost. competitors are only one click away. Even in countries with underdeveloped banking systems. For instance. e-banking implies provision of banking products and services through electronic delivery channels. the internet offers faster access. Electronic banking has been around for quite some time in the form of automatic teller machines (ATMs) and telephone transactions. For banks.

the review of the migration plan of Society for Worldwide Interbank Financial Telecommunications (SWIFT) to the internet shows that to date full migration has not occurred in many developing countries due to the lack of adequate infrastructure. Empirical evidence shows that richer countries possess higher 6 . For example. on-line credit information will enhance SME’s ability to secure financing E-banking in India: Major Concerns First. Many corporates and consumers in some developing countries either do not trust or do not have access to the necessary infrastructure to be able to process e-payments. be developed to facilitate public support for e-finance related initiatives (3) The ability to create a necessary level of regulatory and institutional frameworks: The lack of regulatory frameworks. and required technical expertise. are expected to overcome to achieve the advantages that ebanking initiatives can bring about [UNCTAD 2002] 1) The ability to adopt global technology to local requirements: An adequate level of infrastructure and human capacity building are required before developing countries can adopt the global technology for their local requirements. Broadly accepted e-payment systems are another such example.that developing countries. most efinance initiatives in developing countries have been the result of cooperative efforts between the private andpublic sectors. security and privacy standards. (4) The ability to mainstream small and medium scale enterprises (SMEs) towards e-banking: The availability of and access to quality data and banking information is required for SMEs in developing countries to move towards ebanking. (2) The ability to strengthen public support for e-finance: Historically. working capital. Similarly. there is a risk of the emergence of a ‘digital divide’ as the poor are excluded from the use of the internet and so from the financial system. For example. Singapore’s successful TradeNet system was a government-sponsored project. trust. in India. high trade barriers. If the public sector does not have the necessary means to implement the projects it is essential that cooperative efforts between public and private sectors. in general. along with the multilateral agencies like the World Bank. customer and investor protections impede progress in implementing e-banking initiatives on a larger scale in many developing countries.

challenges before the public sector banks are plenty and of a different kind. Systems of accounting. old habits and political pressures. secure online operations. the turnover per employee in private and foreign banks doubled relative to the ratio for PSBs. computerized monthly statements. network downtime. Also. there are also issues of legacy. were able to adopt easily modern banking practices with state-of-the-art operations. The new generation of private sector banks (who did have developmental obligations similar to their counterparts in the public sector) did not possess a legacy of manual practices and. A handful of foreign banks operating in India first offered e banking services to their customers such as ATMs.1 per cent of total population). The combination of higher technology and higher skills have posted a higher turnover for these banks as they have been able to provide better customer support and have managed their assets well Third. the security risk involved in computerization is directly related to the size of the network. scarcity of trained personnel. Private and foreign banks have changed the structure of their employment towards a higher skilled workforce by increasing the recruitment of officers and reducing clerical and subordinate staff. While. For PSBs. the operational environment for public. etc. A research study by Errol D’Souza (2002) on the comparative performance of public and private sector banks in the decade of the 1990s shows that though the turnover/employee ratio rose in PSBs. In India (where the poverty ratio is still adverse at 26. However. Communication across an open and thus 7 . private and foreign banks in the Indian financial system is quite different. Furthermore. it is likely that wealthier people will rapidly migrate to e-banking platforms leaving the poor to bear the cost of the physical infrastructure of branches in the form of transaction fees or non-competitive interest rates on their deposits.concentrations of internet users (higher than income concentration) in comparison with poorer countries [Hawkins 2002]. even today. hence. confidentiality. Second. they have to handle volumes which are mind boggling. expensive system upgrades and recurring costs given the massive scale of their current operations. this is not due to the presence of a large rural and semi-urban concentration of bank branches amongst PSBs but rather due to technological up gradation in the private and foreign banks. the major problems are in the form of security risks. control and delegation were set up decades ago and adoption of technology in terms of ‘real time’ banking and its compatibility with all phases of banking is not yet adequately perceived. integrity and authentication are very important features of the banking sector and were very successfully managed the world over in pre-internet times.

there are some serious implications of international e-banking. Fourth. The more a bank relies on electronic delivery channels. They primarily focus on how to extend. It is a common argument that low transaction costs potentially make it much easier to conduct cross-border banking electronically. and tailor the existing risk-management framework to the electronic banking setting. no repudiation services.insecure channel such as the internet might not be the best base for bankclient relations as trust might partially be lost [Grethen 2001]. security considerations are an important value-added and risk reduction utility for their online and real time transactions. But this endangers the position of public sector banks in the immediate period as breaches of security and disruptions in the system’s availability can damage a bank’s reputation. adapt. They originate not just from increased potential for cross border transactions but also for domestic transactions based on technology applications which raise many security related issues [Hawkins 2002]. Such cooperation may need to extend to similar supervisory rules and disclosure requirements (for efficiency and to avoid regulatory arbitrage) and some harmonizing of legal. the size of the initiative is going to vary significantly between public and private banks. crossborder operations offer an opportunity to reap economies of scale. integrity. For many banks. the greater the potential for reputational risks. The real question here is whether India at the present juncture is adequately prepared to face the consequences of cross border e-banking? 8 . For private banks. etc. computerization is the First agenda – a massive exercise given their very large branch networks and security is the second priority. The Basel Committee on Banking Supervision’s Electronic Banking Group (EBG) (2001) has defined risk management principles for electronic banking. accounting and taxation arrangements. e-banking has created many new challenges for bank management and regulatory and supervisory authorities. But for public sector banks. PKI is expected to guarantee then required level of trust and to provide for the security needs of all e-communities in terms of confidentiality. Though at different levels in the computerization spectrum. However. It is necessary to know whether the efforts undertaken by the RBI are sufficient to ensure a reasonable level of security. Fifth. both public and private banks in India have realized the importance of Public Key Infrastructure (PKI) solutions. But crossborder finance also needs a higher degree of cross-border supervision.

Sixth. Private sector banks have leveraged the Internet effectively in taking away the customers from public sector banks and significantly increased their revenue potential. Almost all the private sector banks are moving towards eenabling their existing products. Management of these banks is very focused in using technology as a key competitive tool. This has created unwillingness in banks to undertake large-scale lending to SMEs. which is implemented by the banks’ to win more business from customers.1. There are many challenges involved in a webbased relationship model for SMEs within India given the current state of regulation Indian E-banking Scenario As per the international report the banking transactions on a brick and mortar banking costs around $ 1. SMEs in India have generic problems like the inability to provide quality data. Internet banking is just one manifestation of these banks’ technological capabilities. This could be more than the revenues they can generate from credit card transactions. the Indian banking system is seeing a fabulous change in the quality of service provided by them. there is no commercial bank in India. This started initially with simple functions such as getting information about interest rates. which has exclusively specialized in the small business segment. Recently. The capability of the managementis also visible in 9 . on the transaction or sale value resulting in higher other income. an electronic customer database. Internet banking starts from migrating existing products to the net. Then the services were extended to online bill payment. Banks can earn a commission based income. Statistics such as these have woken the Indian Banking Industry. banks started setting up payment gateways for B2B and B2Ctransactions. Legal and regulatory compliance has also been inadequate. While through ATM it costs around $ 0. This is to facilitate payment for e-commerce transactions by directly debiting bank accounts or through credit cards. real time transaction processing capabilities and the latest technological platforms. checking account balances and computing loan eligibility. transfer of funds between accounts and cash management services for corporates.27 and just 1 percent of over the counter banking in case of Internet banking. Technology is the root of this change. The problem is further compounded due to the preponderance of a large cash economy in this segment. They have a complete automation. Thus. to exhibit formal systems and practices and the lack of asset cover. HDFC Bank and ICICI Bank have taken a lead in introducing ebanking in India. Traditional drawbacks like asymmetric and nontransparent data and low capital bases continue to characterize their balance sheets.

Even traditional brick and mortar banks offer better deals such as free bill paying services to encourage their customers to do their banking online. Because there are fewer buildings to maintain. Bouncing a check (accidentally) should be a thing of the past because you can monitor your account online any time.terms of their profitability. you just print. credit card interest rates. You can track your balance daily. Advantages Of Internet Banking 1) An internet banking account is simple to open and use. To complete the set up of your account. You can keep your account balanced using your computer and your monthly statement. and less involvement by salaried employees. sign and send in a form. 5. These savings allow them to offer higher interest rates on savings accounts and lower lending rates and service charges. 10 . Other things you can easily research are what credit cards are available. loan terms and the banks own rating with the FDIC. To access your account. 2. This is all possible by simply going online to the banks website and logging into your account. there is a much lower overhead with online banks. With the ability to view your account at anytime. The convenience of the data capture online makes it much easier to budget and track where your money goes. Among the private sector banks HDFC Bank and ICICI Bank have excellent returns on equity compared to their peers in the industry. it is easier to catch fraudulent activity in your account before much damage is done. Your internet bank account even allows you to view copies of the checks you have written each month. Comparing internet banks to get the best deal is easy. Internet banking costs less. 3. 4. In a short time. you establish security measures such as usernames and passwords. you can visit several online banks to compare what they offer re savings and checking account deals as well as their interest rates. 6. You just enter a few answers to questions in a form while sitting comfortably in your own home or office. day or night. see what checks have cleared and when and know when automatic deposits and payments are made. Your bank account information can be downloaded into software programs such as Microsoft Money or Quicken. making is easy to reconcile your account with just a few mouse clicks.

Internet banking gives people more control over their money in a very convenient way that they find enjoyable and reassuring. EVOLUTION OF SBI The origin of the State Bank of India goes back to the first decade of the nineteenth century with the establishment of the Bank of Calcutta in Calcutta on 2 June 1806. Our business is more than banking because we touch the lives of people anywhere in many ways. the three presidency banks came into existence either as a result of the compulsions of imperial finance or by the felt needs of local European commerce and were not imposed from outside in an arbitrary manner to modernise India's economy. and was influenced by changes occurring in the structure of both the local trading environment and those in the relations of the Indian economy to the economy of Europe and the global economic framework. The economic advantages have encouraged banks to provide an increasing range of easy to use services via the internet. A unique institution. This lets you get started on correcting the problem immediately rather than having to wait a month to even have a clue it is happening as would be the case with a traditional bank. 7. Primarily Anglo-Indian creations. These three banks remained at the apex of modern banking in India till their amalgamation as the Imperial Bank of India on 27 January 1921. shaped by ideas culled from similar developments in Europe and England. you can easily manage your money. If anyone writes a check or withdraws funds from your account and you know it wasn't you. Their evolution was. Their commitment to nation-building is complete & comprehensive.As soon as you log into your account. ABOUT SBI The Bank is actively involved since 1973 in non-profit activity called Community Services Banking. it was the first joint-stock bank of British India sponsored by the Government of Bengal. Three years later the bank received its charter and was re-designed as the Bank of Bengal (2 January 1809). Customers have found doing business online simple and speedy and have become very comfortable with the arrangement. There are sound reasons why internet banking is growing. you will quickly see whether there is anything amiss when you check on your deposits and debits. All our branches and administrative offices throughout the country sponsor and participate in large number of welfare activities and social causes. you will see it right away. You aren't bound by 'banker's hours' and you don't have to go there physically in your car. Internet banking offers a great deal more convenience than you could get from a conventional bank. Time is not wasted when you have work to do because you can do your office's banking without leaving the office. however. 11 . No matter where you are or what time it is. The Bank of Bombay (15 April 1840) and the Bank of Madras (1 July 1843) followed the Bank of Bengal.

Admin. secure access to banking services for accounts in over 13.About Online SBI State Bank of India is India's largest bank with a network of over 13000 branches and 5 associate banks located even in the remotest parts of India. The application is developed using the latest cutting edge technology and tools. The portal provides anywhere. State Bank of India (SBI) offers a wide range of banking products and services to corporate and retail customers. and Auditor. The infrastructure supports unified. The Retail banking application is an integration of several functional areas. The corporate module provides roles such as Regulator. Transaction Maker. online access to accounts for State Bank's Retail and Corporate customers. Authorizer. These roles have access to the 12 . The Online SBI corporate banking application provides features to administer and manage corporate accounts online. and enables customers to:  Issue Demand Drafts online  Transfer funds to own and third party accounts  Credit beneficiary accounts using RTGS/NEFT feature  Generate account statements  Setup Standing Instructions  Configure profile settings   Use e Tax for online tax payment Use e Pay for automatic bill payments  Interface with merchants for railway and airline reservations  Avail DEMAT and IPO services  Pay bill of Visa Credit Card issued by any Bank.000 branches across India. anytime. Online SBI is the Internet banking portal for State Bank of India. Uploaded.

Electronic Vendor Finance Scheme)  Direct Debit Facility  E Collection Facilities for:  Core Banking Transactions  Inter Bank Transactions for incoming RTGS/NEFT Transactions  Internet Banking Transactions for SBI & Associate Banks  Direct Debit facility where suppliers can directly debit their customer’s account through Internet Banking E BANKING SERVICES ➢ A) E-Ticketing 13 . based on rights assigned to the user  Generate account statement  Enquire on transaction details or current balance In addition to the above the Internet banking application also provides the following value added services:  Tax payments to central and state governments through site to site integration. third party payments (both Inter and Intra bank). reschedule and cancel transactions.following functions:  Manage users. define rights and transaction rules on corporate accounts  Access accounts in several branches with a single sign-on mechanism  Upload files to make bulk transactions to third parties.  Supply Chain Finance( e-VFS. vendor and tax collection authorities. modify. supplier. and draft issues  Make bill payments over the Internet.  Authorize.  Use online transactional features such as fund transfer to own accounts.

you shall be required to submit your ticket at a computerized counter of Railways and on cancellation. The payment request will be redirected to Internet Banking site. an e-ticket is generated which can be printed any time. E-ticket can be printed by you whereas the i-ticket will be dispatched by IRCTC at the given address. For cancellation of i-ticket.You can book your railway. • • • No more late payments No more queues No more hassles of depositing cheques 14 .10/. Verify availability of seats on the selected date and confirm the transaction. Provide your credentials and select the SBI account that will be debited for the payment. date of journey and number of tickets. You will be redirected to Internet Banking site of SBI (www. log on to the KSRTC website. an appropriate response will be sent to airlines site to update the status of the transaction. the details of photo identity card will required to be filled in)and select State Bank of India in the payment options. just log on to irctc.com). Service charges @ Rs.onlinesbi. Submit your travel plan and book the ticket(s)-either • • i-ticket (where the delivery of tickets will be made at your address) or e-tickets (wherein after successful payment transactions. After submitting the respective ID and password. Select OnlineSBI to make the payment. B) Bill Payment A simple and convenient service for viewing and paying your bills online. Railways will generate the ticket. You can also book your Air ticket through the e-ticketing feature. Cancellation of E-ticket can be done by logging on to IRCTC's site. For an e-ticket. You are provided a KSRTC reference number for your e-Ticket. To book bus tickets to destinations in Karnataka. refund amount will be credited to your account directly within 2-3 days. Once a transaction is processed.co. Provide details about the start and end points of your journey. air and bus tickets online through OnlineSBI.per transaction shall be levied in addition to the cost of the ticket. The request may be processed based on values sent from the airlines website.in and create an ID thereat if you do not have one. To book your train ticket. After a successful debit. you need to select SBI as the payment option. the amount shall be credited back to your account. You can print the E-ticket immediately. you can select your account. Logon to Indian Airlines website to make a payment for an e-ticket through State Bank of India.

directly from your SBI account.electricity. Simply logon to https://www. You can use your ATM-cum-Debit card to transact for FREE at any of over 20.You can see 'how do i' to learn the steps for using the facility. thereby providing you complete control over these payments.com/ with your credentials and register the biller to which you want to pay. insurance. secured online payment service from State Bank of India in association with VISA that lets you shop securely online with your existing State Bank 15 . 365 days a year. You can also set up AutoPay instructions with an upper limit to ensure that your bills are paid automatically whenever they are due. 24 hours a day. with all the bill details. Verified by Visa (VBV) is an easy to use. The e-PAY service is available in various cities across the country and you can now make payments to several billers in your region.Using the bill payment you can view and Pay Various bills online. there is no need to carry cash in your wallet. You can pay telephone. The upper limit ensures that only bills within the specified limit are paid automatically. you can make payment online.000 ATMs of any bank in State Bank Group within the country.onlinesbi. C) Secure Card Transaction State Bank of India offers the following services for safe and secure paperless banking: State Bank ATM-cum-Debit Card: State Bank of India offers unparalleled convenience through State Bank ATM-cum-Debit card. With this card. Once the bill is uploaded by the biller. You can now withdraw cash and make purchases anytime you wish to with your ATMcum-Debit card.credit cards and other bills from the comfort of your house or office.

1. The service can also be availed via WAP on all phones (java/non java) with GPRS connection. Secure Code Service allows you to create a password and it protects your online transactions just like you use your PIN at the ATM. This service through a simple checkout process. D) MOBILE BANKING State Bank Freedom – Your Mobile Your Bank Away from home. The following functionalities are available: 16 . Verified By VISA Service allows you to create a password and it protects your online transactions just like you use your PIN at the ATM. confirms your identity when you make purchases on the Internet. in association with MasterCard® that lets you shop online securely with your existing State Bank of India Debit Card which may be used only on merchant websites that subscribe to services of "MasterCard® SecureCode™". Secure Code Service confirms your identity through a simple check process when you make online purchases. Maestro Card/Master Card Secure Code/VbV for VISA classic and Silver cards is a new service from State Bank of India. anytime and anywhere banking. Mobile Banking Service over Application/ Wireless Application Protocol (WAP) The service is available on java enabled /Android mobile phones (with or without GPRS) where the user is required to download the application on to the mobile handset. simple.of India Visa Debit Card. secure. balance enquiries can be made and/or money sent to the loved ones or bills can be paid anytime 24x7!!! That is what State Bank FreedoM offers -convenient.

Donations. • As a matter of abundant precaution.5. BigTV.with a calendar month limit of Rs. Customers are requested to delete all the messages sent to the number 9223440000. DishTV. The Service is free of charge.000/. 3.000/. • Transaction limit per customer per day is Rs. • Transaction limit per customer per day is Rs.50. Mobile Banking Service over USSD (Unstructured Supplementary Service Data) 17 . SMS/GPRS cost will be borne by the customer. The following functionalities are available: • • • • • • Enquiry Services (Balance Enquiry/Mini Statement) Mobile Top up DTH Top up/ recharge IMPS. 2. Insurance premium). SunDirect. The Service is free of charge. SBI life insurance premium) Business Rules • All Current/ Savings Bank Account holders in P segment are eligible. Mobile Banking Service over SMS: The service is available on all phones (java/non java) with/without GPRS connection.• • Funds transfer (within and outside the bank) Interbank Mobile Payment Services (IMPS): Enquiry services (Balance enquiry/ Mini statement) Cheque book request Demat Enquiry Service Bill Payment (Utility bills. Ordinary SMS charges are applicable.000/• • All customers can avail the Service irrespective of their telecom service provider.with a calendar month limit of Rs. Subscriptions Mobile Top up • • • • • • M Commerce (Top up of Tatasky. credit cards.50. once the response for their request has been received.Mobile to Mobile Transfer Change MPIN Business Rules All Current/ Savings Bank Account holders in P segment are eligible.2. DigitalTV and Videocon d2h connections.000/• • All customers can avail the Service irrespective of telecom service provider.1. No need to download the application. SMS cost will be borne by the customer.

micro enterprise.with a calendar month limit of Rs.000/• • • The Service is available for subscribers of select telecom operators only. USSD session charges will be borne by the customer. 18 . • Transaction limit per customer per day is Rs. E) CINB SARAL • CINB SARAL is a simplified version of Corporate Internet Banking with default transaction rights. The service is session based and requires a response from the user within a reasonable time. various tax payments and merchant transactions etc. • The facility which is highly customer friendly provides the ease and convenience of Retail Internet Banking without compromising on the security of the customer. The Service is free of charge. individual businessmen having non individual account at our branches. No need to download the application. third party transfer. • The product facilitates hassle free and safe online transactions like funds transfer.000/. The following functionalities are available: • Enquiry Services (Balance Enquiry/Mini Statement) • Mobile Top up • Funds Transfer (within Bank) Business Rules • All Current/ Savings Bank Account holders in P segment are eligible.The service is available on all phones (java/non java) with/without GPRS connection. ideal for Single user entrepreneurs consisting of sole proprietorship concerns.1.5. by a single user corporate without the need for elaborate role based account management required in ‘Vyapaar’ and ‘Vistaar’.

Internet banking is considered as dependent on awareness among customers which will be studied with help of different independent variable. Secondary data: Collection of information from different kind of books the data of the company what they maintained. 19 .Data collection Primary Data: In this research with a sample size of nearly 20 customer’s data will be available in form of questionnaire collected in terms of different questions influencing the use of internet banking. Only the customers of HDFC & ICICI bank are taken as samples for study.

DATA INTERPRETATION Using E-Banking Most Preferred Service Providing Better Service SBI Grading 20 .

The services that are mostly used by maximum customers are transactions. 3. bill payment. Customers should have ready sources of advice. 2. online trading. More banks are connecting to the any software co. payments and transfers. with a number of features valuable to customers. deposits. Efforts should be made to provide the users of E-banking with an instant solution at the time of using E-banking services such as in case of password forgotten. Systems should be simple to use. through publicity or through physical presence. However. an electronic banking solution can be designed as a low-cost bank account on a card or telephone. Recommendation 1. The bank should come forward with more meaningful advertisements and awareness campaigns to create awareness among customers regarding E-banking services and to make E-banking popular among the entire age and income group. fast and user friendly. Among all bill payment is the most preferred service of the costumers.Findings 1. 4. In these services the SBI bank is top in service of E-banking. 5. Service should be standardized so that wherever the solution is used the customer is familiar with the procedure followed. 4. 21 . shopping etc. such as cash withdrawals and cash-back transactions. ATM out of order etc. 2. whether this is through call centers. In the users ratio of internet banking 73% of customers are using this service. to running the E-banking service. 3. Most of the customers are not aware about CINB SARAL. E banking services should be designed to reduce the cost of transactions for the financial institution as much as to deliver value to the customer.

QUESTIONNAIRE Name_______________________ Age___________ Gender____________ Q-1)what is your occupation? a) b) c) d) Business Service Professional Others________________ Q-2)what is your income group? a) b) c) d) 1-3 lacs 3-5 lacs 5-7 lacs Above 7 lacs Q-3)which type of A/C do you have? a) b) c) d) Saving Current Demat All in one Q-4) do you use E-Banking service? a) Yes b) No 22 .

Q-5) why SBI bank? a) b) c) Service is good Security Cheaper service fee Q-6) which type of service do you use mostly? a) b) c) d) e) Bill payment Mobile banking Service card transaction CINB SARAL E-Ticketing Q-7) do you use E-Bill payment service? a) Yes b) No Q-8) do you use mobile banking service? A) Yes b) No Q-9) do you use ATM service? a) Yes b) No Q-10) do you use E-Ticketing service? a) Yes b) No Q-11) do you use CINB SARAL service? a) Yes b) No 23 .

Q-12) do you have A/c with any other bank? If yes……… a) b) c) d) e) HDFC AXIS YES bank Others_____________ No Q-13) which bank is providing better E-Banking service? a) b) c) d) e) SBI AXIS YES bank HDFC Others______________ Q-14) how you grade SBI E-Banking service? a) b) c) d) Excellent Good Average Poor Q-15) how frequently you use SBI E-Banking service? a) b) c) d) Once in a day Once in a week Once in a month Can’t say Q-16) how you rank the security parameters of SBI E-Banking service? a) b) c) d) e) Best Good Average Poor Worst 24 .

Q-17) would you like to suggest any improvement in SBI E-Banking services? ______________________________________________________________ _____ ______________________________________________________________ _____ 25 .

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