My Main Project

8/6/2019 My Main Project

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SERVICES PROVIDED BY THE BANKS

THROUGH

E- BANKING IN INDIA

SR.NO PARTICULARS


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ACKNOWLEDGEMENT

I feel deeply in debted towards people who have guided me in this project. It

would have not have been possible to make such an extensive report without the help,guidance and inputs from them. Most of my information source has been from

professional books of

Project Guide-

Prof: Amruta Gaikar

I would firstly like to express my gratitude towards my guide PROF. AMRUTAGAIKAR for having shown so much of flexibility & guiding in such a way that I wasreally learning the subject all the time. She helped me in deciding the project topic.She showed a lot of openness in her approach and I would like to thank her for her support in a way that has lead to proper & effective learning.


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EXECUTIVE SUMMARY

E-banking

E- banking - The execution of financial services via internet, reducing cost and increasein convenience for the customer to access the transaction . e- banking is an umbrella term for the

process by which a customer may perform banking transactions electronically without visiting a brick - and - mortar institution. Internet banking means any user with a personal computer and a browser can get connected to his banks website to perform any of the virtual banking functions.In Internet banking the bank has centralized database that is well enabled. All the services thatthe bank has permitted on the internet are displayed in menu. Any services can be selected andfurther interaction is dictated by the nature of services. Once the branch offices of bank areinterconnected through terrestrial satellite link, there would be no physical identity for any

branch. It would a borderless entity permitting anytime, any where, anyhow banking. The

delivery channel include direct dialup connections, private network, public net.The internet is revolutionizing the way the financial industry conducts business online,

has created new players who offer personalize services through the web portals. This increase tofind new ways and increase customer loyalty to add the value to this product and services. Smartcard is a new trend which provides the opportunity to build an incremental revenue stream by

providing an ideal platform for extended application and services. Banks have strongrelationships with corporate and business customers and a wide experience in providing themwith corporate banking services.


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CHAPTER 1. INTRODUCTION

1.1 Introduction to topic

Traditionally banks offer many services to their customers, including accepting customer moneydeposits, providing various banking services to customers, and making loans to individuals andcompanies. Compared with traditional ways of offering banking services through physical

branches, e - banking uses the Internet to deliver traditional banking services to their customers,such as opening accounts, transferring funds, and electronic bill payment. The world is changingat a staggering rate and technology is considered to be the key driver for these changes aroundus. An analysis of technology and its uses show that it has permeated in almost every aspect of our life. Many activities are handled electronically due to the acceptance of informationtechnology at home as well as at workplace. Slowly but steadily, the Indian customer is movingtowards the e - banking. The ATM and the Net transactions are becoming popular. But the

customers clear on one thing that he wants net - banking to be simple and the banking sector ismatching its steps to the march of technology. E- banking or Online banking is a generic term for the delivery of banking services and products through the electronic channels such as thetelephone, the internet, the cell phone etc. The concept and scope of e - banking is still evolving. Itfacilitates an effective payment and accounting system thereby enhancing the speed of deliveryof banking services considerably. Several initiatives have been taken by the Government of Indiaas well as the RBI(Reserve Bank of India); have facilitated the development of e - banking inIndia. The government of India enacted the IT Act, 2000, which provides legal recognition toelectronic transactions and other means of electronic commerce. The RBI has been preparing toupgrade itself as regulator and supervisor of the technologically dominated financial system. Itissued guidelines on the risks and controls in computer and telecommunication systems to all

banks, advising them to evaluate the risks inherent in the systems and put in place adequatecontrol mechanisms to address these risk.


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TYPES OF E-BANKING

The common assumption is that Internet banking is the only method of on - line banking.However,this is not strictly the case, as several types of service are currently available:

y PC Banking - The forerunner to Internet banking has been around since the late 1980'sand is still widely used today. Individual banks provide software which is loaded on to anSM E 's office computer. The SM E can then access their bank account via a modem andtelephone link to the bank. Access is not necessarily via the Internet.

y Internet Banking - Using a Web browser, a user can access their account, once the bank's application server has validated the user's identity.

y Digital TV Banking- Using the standard digital reception equipment (set top box andremote control), users can access their bank account. Abbey National and HSBC servicesare available via Digital TV providers. One of its main selling points is that no accountdetails are transmitted via the World Wide Web.

y Text Phone Banking Many of thebanks have introduced this service to allowcustomers with text phones to check their balance, pay bills and transfer money.

Internet banking can be split into two distinct groups:

y Traditional banks and building societies use the Internet as an add - on service with whichto give businesses access to their accounts.

y New Internet -only banks have no bricks and mortar presence on the High Street.Therefore, they have lower overheads and can offer higher rates of interest and lower charges.

Features of E-Banking

y E- Banking provide exceptional rates on Savings, CDs, and IRAsy Checking with no monthly fee, free bill payment and rebates on ATM surcharges

credit cards with low rates


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y E asy online applications for all accounts, including personal loans and mortgages24 hour account access.

y It provides Quality customer service with personal attentiony It provides the quick services to their customers.y E nables transfer of funds from one place to another(banks).y E xchange of statisticals information amongs banks.y E nables foreign exchange operations.y Inter - bank applications like settlement of funds between banks.y Provides facilities like demat operation,ATM operation,online banking.

INTERNET BANKING IN INDIA

The Internet banking is changing the banking industry and is having themajor effects on banking relationships. E ven the Morgan Stanley Dean Witter Internet research emphasized that Web is more important for retail financialservices than for many other industries. Internet banking involves use of Internetfor delivery of banking products & services. It falls into four main categories, fromLevel 1 - minimum functionality sites that offer only access to deposit account data- to Level 4 sites - highly sophisticated offerings enabling integrated sales of additional products and access to other financial services - such as investment andinsurance.

DRIVERS OF CHANGE

Advantages previously held by large financial institutions have shrunk considerably. The Internet has leveled the playing field and afforded open access tocustomers in the global marketplace. Internet banking is a cost - effective deliverychannel for financial institutions. Consumers are embracing the many benefits of Internet banking. Access to one's accounts at anytime and from any location via theWorld Wide Web is a convenience unknown a short time ago. The six primarydrivers of Internet banking includes, in order of primacy are:

Improve customer access Facilitate the offering of more services Increase customer loyalty Attract new customers Provide services offered by competitors Reduce customer attrition

The banking industry in India is facing unprecedented competition from non -traditional banking institutions, which now offer banking and financial servicesover the Internet. The deregulation of the banking industry coupled with the


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emergence of new technologies, are enabling new competitors to enter the financialservices market quickly and efficiently.

1.2 Objective of Studyy To understand the concept of e - bankingy To study the awareness of e banking among the people.y To find the customer satisfaction relating to e - banking services.y To find out whether the customer are using the e - banking services or not.

1.3 Scope of the Study

1.4 Limitations of the Study

y Sufficient information regarding e - banking was not provided by the banks.y Approaching the employees of the bank was not possible.

CHAPTER 2. COMPANY PROFILE


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IDBI BANK


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CHAPTER 3. RESEARCH METHODOLOGY

3.1 Research Design

3.2 Sampling Techniques

Questionnaire technique was used to conduct the survey.

Sample size is 20.

3.3 Data Collection

Primary and secondary data was collected to conduct the survey.

Primary data:-

In this research, with a sample size of nearly 20 customer data was collected in form of questionnaire collected in terms of different questions influencing the use of internet banking.

Secondary data:-

Secondary data such as information about IDBI bank, e - banking was collected through books,manuals, websites, etc.

DANGERS OF E-BANKING

most services suffer from disadvantages, and on - line banking is no exception. Recently, there


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have been a number of technical incidents, where customer information was disclosed to other users. Banks have been quick to react, and have either reverted back to the previous system or have solved the problem immediately.

The main disadvantages are those related to fear of the unknown. The main fear is that

transferring money electronically will somehow cause it to disappear into the electronic abyss.Banks are aware of this concern and do assure account holders that such an event should notoccur. There is some speculation, currently, that Internet -only banks will not be able to sustaintheir high interest rates.

Other drawbacks to using Internet - only banks include:

y Penalties for phone transactions;y Access to cash (ensure that there is sufficient access to ATMs).

We may perceive this method of banking to be instantaneous. For example, when a bill is paid,

the expectation is that the transaction is completed with immediate effect. However, this is notthe case, as the systems are still connected to the UK clearing system, which takes three workingdays to clear payments. , it appears that in many cases basic risk principles have been ignored inthe rush. Banks could lose the whole e - trust business if they are unable to rise to the challenge of meeting customers' ever - rising demands in a secure trading environment. Use Dangers in E-

banking to reduce the level of risks to a minimal level whilst ensuring that your business is not justify behind in the race to retain and win new electronic customers.

How can this report help you? - It identifies the major risks which have been encountered so far and pinpoints areas which are to become big risks for e - bankers in the future.

SECURITY

One of the main concerns with on - line banking is that of security. Fraudulent and accidentalsecurity breaches are a rare occurrence. Banks employ many procedures and systems in order to

prevent these incidents. As a result they invest a considerable amount of time and money indeveloping systems which will prevent fraud and unauthorized access. If a security breach isdiscovered, the bank is liable for all money stolen, and, as a result, insures them against the

possibility.

The security used in on - line banking is a combination of technology and user authentication. The bank will use a 128 bit Secure Session Layer (SSL) encryption protocol, between its server and

the user's browser. The user's browser will show a padlock when the session is secure. UsingSSL can be thought of as preventing eavesdropping. If a hacker were to attempt to listen to thedata transmission, they would have to guess the decryption key - which is a 1 in 3.4 x10 to the

power of 38 chances, making it infinitely secure. From a technology point of view, on - line banking is secure.

The weakest link of on - line banking is user authentication. Typically, a user has to supply a setof answers to questions, which they have previously entered upon registration, as well as a


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username and password. The banks place the responsibility of keeping these answers secure withthe user. If any are disclosed and money is stolen, the liability lies solely with the account holder,not the bank. With this in mind the following is sound advice to users:

y Make sure the Web Address starts https:\\ rather than http:\\, this shows that the session is

encrypted;y Look for the closed padlock in the browser;y Do not use simple or easily guessable passwords (use a combination of letters and

numbers) and change it frequently;y Do not write down any username, password or any other information required;y Always empty the cache of the browser after banking;y Always sign - off when you are finished;y Do not leave the PC unattended while banking;y Do not use the "Auto Complete" feature within the browser;y Check the Terms and Conditions for any notes on where you can and cannot access the

on - line accounts. (e.g. an Internet caf is not as secure as your home PC);y

Use additional software that your bank might recommend (firewall or anti-virus software)y Keep your Web browser up - to - date with the latest patches and versions;

y Never send any account information in an email as this is insecure. Be wary of any e -Mails from your bank which ask you to send details via email, banks will not do this;

y Also, be wary of emails from banks which ask you to log into a Web site and resubmityour details. These fake Web sites have been set - up by fraudsters. If you are unsure of anemail play it safe and contact your bank to verify the email.


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CHAPTER 4. DATA PROCESSING & ANALYSIS

1)Are you aware of the banks ?

YE S NO TOTAL

14 6 2070% 30% 100%

Interpretation :

In this survey, it was observed that 70% i.e. 14 people are aware of e - banking facilities and therest 30% are unaware of the benefits of e - banking.

Sales

YES

NO


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2) In which bank you have your account ?

ICICI SBI AXIS HDFC HSBC BOI TOTAL6 4 3 1 0 6 2030% 20% 15% 5% 0% 30% 100%

Interpretation:

In the above survey 30% of the people have their account in ICICI and BANK OF INDIA.

1

2

3

45

6


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3) Do you feel safe on disclosing your details on Internet ?

YES NO TOTAL10 10 2050% 50% 100%

Interpretations:

In the above survey, 50% i.e 10 people out of 20 feel safe to disclose their details on internet.

4) Are you satisfy by your bank services ?

YES NO TOTAL

15 5 20

75% 25% 100%

Sales

1

2


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Interpretations:

In this survey, 15 people i.e. 75% are satisfied with the services provided by the bank and 25% people are dissatisfied.

5) What are your main transactions you would prefer to do by internet?

MoneyTransfer

CheckingBalance

Create FixedDeposits

Request ADemandDraft

PayBills

Order aChequeBook

Request Total

8 2 0 2 6 2 0 2040% 10% 0% 5% 30% 5% 0% 100%

1st Qtr

2nd Qtr


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Enterpretation; In the above survey 40% people use facility of money transfer and 30% peopleuse paybills facility.

6)Are you aware of the benefits which are available ?

YES NO TOTAL13 7 2065% 35% 100%

1

2

3

4

5

6

7


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Enterpretation; In this survey 70% of the people are aware of the benefits provided by their banks and 30% people are unaware.

7) Are you aware of the methods which can be undertaken to avoid any kind of frauds?

YES NO TOTAL8 12 2040% 60% 100%

1

2


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Interpretations; In the above survey 40% of the people are aware of the methods which can beundertaken of making frauds and other 30% are unaware of this fact.

8) Are you aware of all the methods which can be taken up to secure your transactions?

YES NO TOTAL14 6 20

70% 30% 100%

1

2


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Enterpretation; In this survey 70% of the people want to secure the transaction of their accountand the rest 30% do not know what is e - banking.

9) Does your bank educate you about the Internet banking services being offered ?

YES NO TOTAL16 4 2080% 20% 100%

1

2


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Interpretation; In the above survey 80% of the customer agree that their bank follow the duty of educating about the services offered.

10)Would you prefer using internet banking instead of visiting your bank every now andthen ?

YES NO TOTAL13 7 2065% 35% 100%

Sales

1

2


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Interpretations; In this survey 65% of the people would prefer using e - banking services insteadof coming to the bank everyday.

11) What benefits do you see in internet banking ?

COVENIENCE SPEED TRANSPARENCY TIME TOTAL8 5 1 6 2040% 25% 5% 30% 100%

Sales

1st Qtr

2nd Qtr


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1

2

3

4


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CHAPTER 5. FINDINGS


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CHAPTER 6. CONCLUSION


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BIBLIOGRAPHY


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ANNEXURE

QUESTIONNAIRE

Name:

Age Group:

Occupation:

1) Are you aware of net banking services offered by the banks?

a) Yes b) No

2) In which bank you have your account?a) ICICI BANK .

b) SBI BANK .c) AXIS .

d) HDFCe) HSBC .f) BANK OF INDIA .

3) Do you feel safe in disclosing your details on net?

a) Yes b) No

4) Are you satisfy with your bank services?

a) Yes b) No

5) What are your main transactions you would prefer to do by net

(a) Money transfers

(b) Checking of your current balance

(c) Create Fixed Deposits Online

(d) Request a Demand Draft

(e) Pay Bills

(f) Order a Cheque Book

(g) Request Stop Payment on a Cheque

6) Are you aware of the benefits of net banking which are available

(a) Yes (b) No


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7) Are you aware of the methods which can be undertaken to make any kind of fraud

(a) Yes (b) No

8) Are you aware of all the methods which can be taken up to secure your transaction

(a) Yes (b) No

9) Does your bank educate you about the internet banking services being offered?

(a) Yes (b) No

10) What benefits do you see in internat banking?

(a) Convenience

(b) Speed

(c) Transparency

(d) Time


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