CHAPTER - 1

INTRODUCTION

CHAPTER 1

INTRODUCTION

1.1 Internet Banking

The Internet banking is changing the banking industry

and is having the major effects on banking relationships.

Even the Morgan Stanley Dean Witter Internet research

emphasized that Web is more important for retail

financial services than for many other industries. Internet

banking involves use of Internet for delivery of banking

products & services. It falls into four main categories,

from Level 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 and insurance. In other

words a successful Internet banking solution offers.

· Exceptional rates on Savings, CDs, and IRAs

· Checking with no monthly fee, free bill payment and

rebates on ATM surcharges

·Credit cards with low rates

2

· Easy online applications for all accounts, including

personal loans and mortgages

·24 hour account access

· Quality customer service with personal attention

1.2 DRIVERS OF CHANGE

Advantages previously held by large financial institutions have shrunk considerably. The Internet has leveled the playing field and afforded open access to customers in the global marketplace. Internet banking is a cost-effective delivery channel for financial institutions. Consumers are embracing the many benefits of Internet banking. Access to one's accounts at anytime and from any location via the World Wide Web is a convenience unknown a short time ago. Thus, a bank's Internet presence transforms from 'brouchreware' status to 'Internet banking' status once the bank goes through a technology integration effort to enable the customer to access information about his or her specific account relationship. The six primary drivers 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

1.3 INDIAN BANKS ON WEB

3

The banking industry in India is facing unprecedented competition from non-traditional banking institutions, which now offer banking and financial services over the Internet. The deregulation of the banking industry coupled with the emergence of new technologies, are enabling new competitors to enter the financial services market quickly and efficiently.

Indian banks are going for the retail banking in a big way. However, much is still to be achieved. This study which was conducted by students of IIML shows some interesting facts:

· Throughout the country, the Internet Banking is in the nascent stage of development (only 50 banks are offering varied kind of Internet banking services).· In general, these Internet sites offer only the most basic services. 55% are so called 'entry level' sites, offering little more than company information and basic marketing materials. Only 8% offer 'advanced transactions' such as online funds transfer, transactions & cash management services.· Foreign & Private Banks are much advanced in terms of the number of sites & their level of development.

1.4 EMERGING CHALLENGES

Information technology analyst firm, the Meta Group, recently reported that "financial institutions who don't offer home banking by the year 2000 will become marginalized." By the year of 2002, a large sophisticated and highly competitive Internet Banking Market will develop which will be driven by

· Demand side pressure due to increasing access to low cost electronic services.

4

· Emergence of open standards for banking functionality.· Growing customer awareness and need of transparency.· Global players in the fray· Close integration of bank services with web based E-commerce or even disintermediation of services through direct electronic payments (E- Cash).· More convenient international transactions due to the fact that the Internet along with general deregulation trends eliminates geographic boundaries.· Move from one stop shopping to 'Banking Portfolio' i.e. unbundled product purchases.

Certainly some existing brick and mortar banks will go out of business. But that's because they fail to respond to the challenge of the Internet. The Internet and its underlying technologies will change and transform not just banking, but all aspects of finance and commerce. It represents much more than a new distribution opportunity. It will enable nimble players to leverage their brick and mortar presence to improve customer satisfaction and gain share. It will force lethargic players who are struck with legacy cost basis, out of business-since they are unable to bring to play in the new context.

5

CHAPTER 2

RESEARCHMETHEDOLOGY

6

CHAPTER 2RESEARCH METHEDOLOGY

The process of developing statement, deciding modes of data collection and the means of analysis of data and the final presentation leading a logical interpretation is known as methodology. In 1st chapter the topic was introduced. In the 2nd

chapter the research methodology of the study is given.

2.1 STATEMENT OF THE PROBLEM

“Customers Perception Towards Net Banking – A Study In Raipur City”.

2.2 PURPOSE OF THE STUDY

To Study Customers Perception Towards Internet Banking In Raipur City.

7

2.3 OBJECTIVE OF THE STUDY

To find out why customers in Raipur city adopted internet banking.

To find out main purpose of using internet banking by customers in raipur city.

To find out customers satisfaction towards internet banking facility.

To find out customers suggestions for improving in internet banking facility.

To identify where customers in raipur city are taking proper safety precautions while doing internet banking.

2.4 POPULATION

Population is the total area, number of persons or group of person, who are the subject to study. To determine the first step of any research it define the boundaries of research. To achieve the objective of the study, all the customer of different banks of raipur city was selected.

2.5 SAMPLE

A sample is a finite number of units taken for the purpose of the study out of the Universe. The sample is selected for the

8

convenient study. For the optimum sample should be selected sample should represent whole universe. It neither feasible nor desirable to go each and everyone so sampling is done. The sample size is 50, and the sample units are the people of the city.

2.6 DATA COLLECTION TOOL

Data is collected by the questionnaire. It was collected in all the hours of the day, and for the analysis of data “PERCENTAGE METHOD” has been used.

9

CHPTER 3

DATA ANALYSISAND

INTERPRETATION

10

CHAPTER 3DATA ANALYSIS AND

INTERPRETATION

3.1 AGE OF RESPONDENTS

AGE GROUP FREQUENCY PERCENTAGEBelow 25 16 32%26 – 35 22 44%36 – 45 4 8%46 – 55 8 16%Above 55 0 0TOTAL 50 100%

0

5

10

15

20

25

Below25

26 – 35 36 – 45 46 – 55 Above55

Series1

INTERPRETETION: From the above table it is found that majority of the respondents (44%) falls under the age of 26 – 35 years followed by (32%) under the age group below 25 years respectively.

3.2 GENDER OF RESPONDENTS

11

GENDER FREQUENCY PERCENTAGEMALE 40 80%

FEMALE 10 20%TOTAL 50 100%

MALE

FEMALE

female 20%

male80%

INTERPRETETION: From the above table it is found that majority of the respondents (80%)are male and (20%) of respondents are female.

3.3 MARITAL STATUS OF RESPONDENTS

12

MARITALSTATUS

FREQUENCY PERCENTAGE

MARRIED 16 32%UNMARRIED 34 68%

TOTAL 50 100%

MARRIED

UNMARRIED

MARRIED 32%

UNMARRIE68%

INTERPRETETION: From the above table it is found that majority of the respondents (68%) are unmarried followed by (32%) respondents are married.

3.4 DUCATION QUALIFICATION OF RESPONDENTS

13

EDUCATIONQUALIFICATION

FREQUNCY PERCENTAGE

UNDER GRADUATE

8 16%

GRADUATE 22 44%POST GRADUATE 20 40%

TOTAL 50 100%

UNDER GRADUATE16%

GRADUATE44%

POSTGRADUATE

40%

INTERPRETETION: From the above table it is found that majority of the respondents (44%) are graduate followed by (40%) are post graduate and remain (16%) are under graduate.

3.5 EMPLLOYMENT STATUS OF THE RESPONDENTSEMPLOYMENT FREQUENCY PERCENTAGE

14

STATUS EMPLOYED 28 56%

UNEMPLOYED 17 34%SELF EMPLOYED 5 10%

TOTAL 50% 100%

EMPLOYED56%

SELF EMPLOYED10%

UNEMPLYOED34%

INTERPRETETION: From the above table it is found that majority of the respondents (56%) are employed followed by (34%) of respondents are unemployed and remain (10%) are self-employed.

3.6 MOTHLY PERSONAL INCOME OF RESPONDENTS

MOTHLY INCOME

FREQUENCY PERCENTAGE

15

Less then 5000 4 8%5000 - 10000 7 14%10000 - 20000 8 16%20000 – 30000 13 26%Above 30000 27 54%

TOTAL 50 100%

LESS THEN 5000

5000-10000

10000 - 20000

20000-30000

ABOVE 30000

INTERPRETETION: From the above table it is found that majority of the respondents (54%) are having monthly is above 30000 followed by (26%) respondents having monthly income is 20000 – 30000.

3.7 NUMBER OF DEPENDENTS

NUMBER OF DEPENDEND

FREQUENCY PERCENTACE

1 11 22%

16

2 23 46%3 7 14%

More than 3 9 18%TOTAL 50 100%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

1 2 3 More than 3

22%

46%

14%

18%

INTERPRETETION: From the above table it is found that majority of the respondents (46%) are having 2 dependents in their family followed by (22%) respondents are having only 1 dependent.

3.8 NATURE OF FAMILY OF RESPONDENTS

NATUR OF FAMILY

FREQUENCY PERCENTACE

NUCLEAR 43 86%

17

FAMILYJOINT FAMILY 7 14%

TOTAL 50 100%

NUCLEAR FAMILY86%

JOINT FAMILY14%

INTERPRETETION: From the above table it is found that majority of the respondents (86%) are having nuclear family and rest (14%) respondents are having joint family.

3.9 OCCUPATION OF THE RESPONDENTS

OCCUPATION FREQUENCY PERCENTACEENTEPRENEUR - -

LAWER - -

18

DOCTORE - -ENGG. - -

ACADEMIC - -GOVT.

EMPLOYEE- -

OTHER (SPECIFIED)

50 100%

TOTAL 50 100%

OTHER SPECIFY 100%

INTERPRETETION: From the above table it is found that majority of the respondents (100%) are from other specify.

3.10 DO YOU HAVE SAVING ACCOUNT IN BANK

SAVING FREQUENCY PERCETAGE

19

ACCOUNTYES 50 100%

NO - -TOTAL 50 100%

ACCOUNT IN BANKK100%

INTERPRETETION: From the above table it is found that majority of (100%) respondents having a bank account.

3.11 DO YOU USE THE FOLLOWING FACILITY PROVIDED BY THE BANK

FACILITY FEQUENCY PCENTAGEPHONE 1 2%

20

BANKINGMOBILE

BANKING2 4%

NET BANKING 23 46%ELECTRONIC

FUND TRANSER1 2%

ATM 23 46%TOTAL 50 100%

0

5

10

15

20

25

1 2 3 4 5

INTERPRETETION: From the above table it is found that majority of (46%) respondents are using the facility of net banking & ATM followed by (4%) are using mobile banking facility.

3.12 SCINCE HOW LONG YOU ARE USING NET BANKING

TIME FREQUENCY PERCENTAGELESS THEN 6

MONTH5 10%

6 MONTH – 1 YEAR

10 20%

21

1 – 3 YEAR 20 40%MORE THEN 3

YEAR15 30%

TOTAL 50 100%

0

5

10

15

20

25

1 2 3 4

INTERPRETETION: From the above table it is found that majority of (40%) respondents are using internet banking 1 – 3 years followed by (30%) are using more then 3 years (20%) are using 6month – 1 year and (10%) are using net banking less then 6 month.

3.13 FROM WHERE YOU HEARD ABOUT NET BANKING FOR THE 1ST

TIME

SOURCES FREQUENCY PERCENTAGEFRIEND 20 40%

RELATIVES 8 16%NEWS PAPER 3 6%MAGAZINE 2 4%

LAEFLETS OF 5 10%

22

THE COMPANYBANK

EMPLOYEE3 6%

INTERNET 5 10%OUTHER SPCIFY

- -

TOTAL 50 100%

0

5

10

15

20

25

1 2 3 4 5 6 7 8

Series1

INTERPRETETION: From the above table it is found that majority of (40%) respondents are heard about net banking first time from friends followed by (16%) are heard from there relatives.

3.14 HOW DID YOU LEARN TO USE THE NET BANKING

LEARN FROM FREQUENCY PERCENTAGESELF 17 34%

FRIEND 21 42%FROM WEBSITE OF THE BANK

5 10%

23

FROM BANK STAFF

7 14%

OTHER SPECIFY - -TOTAL 50 100%

0

5

10

15

20

25

1 2 3 4 5

Series1

INTERPRETETION: From the above table it is found that majority of (42%) respondents are learn to use net banking from there friends followed by (34%) are learn to use self (14%) are learn from bank staff and (10%) are learn from website of bank.

3.15 REASON DUE TO YOU STARTED THE USING NET BANKING

REASON FREQUNCY PERCENTAGEIT SVES TIME 21 21%

IT IS SAFE AND SECURE

6 12%

I CAN USE IT ANY WHERE

15 30%

I DON’T HAVE TIME TO GO TO

8 16%

24

BANKTOTAL 50 100%

0

5

10

15

20

25

IT SVESTIME

IT IS SAFEAND

SECURE

I CAN USE ITANY

WHERE

I DON’THAVE TIMETO GO TO

BANK

42%

12%

30%

16%

INTERPRETETION: From the above table it is found that majority of (42%) respondents are started to use net banking because it saves time followed by (30%) are started because it saves time (16%) are stared because respondents don’t have time to go to the bank and (12%) are stared because it is safe & secure.

3.16 PURPOSE OF USING NET BANKING

PURPPOSE FREQUENCY PERCENTAGE1 16 32%2 7 14%3 5 10%4 - -5 - -6 9 18%7 - -8 10 20%

25

9 - -10 - -11 3 6%

TOTAL 50 100%

0

2

4

6

8

10

12

14

16

18

1 2 3 4 5 6 7 8 9 10 11

INTERPRETETION: From the above table it is found that majority of (32%) respondents are using net banking for view account balance followed by (20%) are using for cheque book request (18%) are using for cheque status enquiry.

3.17 SAFETY PRECAUTION FOLLED BY RESPONDENTS

SAFETY PECAUTIONS

FREQUENCY PERCENTAGE

1 3 6%2 8 16%3 1 2%4 5 10%5 12 24%6 6 12%7 - -

26

8 2 4%9 13 26%10 - -

TOTAL 50 100%

0

2

4

6

8

10

12

14

1 2 3 4 5 6 7 8 9 10

INTERPRETETION: From the above table it is found that majority of (26%) respondents are using safety precautions that they always logout to terminate the session followed by (24%) are never use cyber cafes to access there online account and (16%) are keep there password top secret and change it often.

3.17 ARE YOU SATISFIED WITH YOUR NET BANKING EXPERIENCE

SATISFIED FREQUENCY PERCENTAGEYES 50 100%NO - -

TOTAL 50 100%

27

0

10

20

30

40

50

60

1 2

INTERPRETETION: From the above table it is found that majority of (100%) respondents are satisfied with there net banking experience.

28

CHAPTER 4

FINDINGS, LIMITSTION, SUGGESTIONS

CHAPTER 4

FINDINGS, LIMITATIONS , SUGGESTION

4.1 FINDINGS

29

It is found that majority of (42%) respondents are adopted net banking because it saves time followed by (30%) are adopted because it saves time (16%) are adopted because respondents don’t have time to go to the bank and (12%) are adopted because it is safe & secure.

It is found that majority of (32%) respondents main purpose of using net banking for view account balance followed by (20%) are using for cheque book request (18%) are using for cheque status enquiry.

It is found that majority of (100%) respondents are satisfied by net banking facility.

It is found that majority of (26%) respondents are using safety precautions that they always logout to terminate the session followed by (24%) are never use cyber cafes to access there online account and (16%) are keep there password top secret and change it often.

4.2 LIMITATIONS

Since the sample are taken out of universe was very small the conclusion cannot be generalized for whole Raipur city.

The respondents not willing to answer.

Inadequate and wrong information from respondents.

30

4.3 SUGGESATIONS

Net banking site should be made more interactive

. Net banking should be made user friendly

Net banking site should be made more safe for transaction.

31

BIBLIOGRAPHY

BIBLIOGRAPHY

Kothari, C.K. Research Methodology New Age International Publisher 3rd Addition , New Delhi, 2004 P.P. 4 – 23.

www.google.com

32

33

APPENDIX

QUESTIONNAIRE Respected Sir/Madam,

I am conducting a survey entitled “Customer Perception Towards Internet Banking – A Study In Raipur City”. I need your help in conducting this study. Kindly provide me your valuable opinion to fill this questionnaire. Your information will be kept confidential and will be exclusively used for academic purpose.

Nandan Kulkarni

M.B.A. 2nd Sem. Institute of Management Pt. R.S.U. Raipur (C.G.)

34

PART-11. Demographic Information a. Name- b. Address- c. Phone no.- d. Age group- below 25 26-35 36-45 46-55 above 55 e. Sex- male female f. Marital status- married unmarried g. Educational Qualification- under graduate graduate post graduate h. Employment status- employed unemployed self-employed i. Monthly personal income- less than Rs.5000 5000>=10000 10000>=20000 20000>= 30000 above 30000 j. Number of dependents- 1 2 3 >3 k. Nature of family- nuclear family joint family l. Occupation- [ ] Entrepreneur [ ] Lawyer [ ] Doctor [ ] Egg. [ ] Academic [ ] Govt. employee [ ] others (specify)…………………

PART – 22. (a) Do you have saving account in a bank? Yes { } No { } (b) Please mention the name of the bank …………………………3. Do you use following facilities provided by your bank? Yes No

Phone banking { } { } Mobile banking { } { } Net banking { } { } Electronic fund transfer { } { } ATM { } { }

4. Since how long you are using Net Banking facility? { } Less then 6 month { } 6 month – 1 year { } 1 – 3 year { } more then 3 year5. from where you heard about NET BANKING for the first time? { } Friend { } Relatives { } News paper { } Magazine { } Leaflets of bank { } Bank employee { } Internet { } other specify ……………….6. How did you learn to use the NET BANKING? { } Self { } Friend { } From website of bank { } from bank staff { } Other specify ………….7. Please mention the reason due to which you started using NET BANKING? { } Because it saves time. { } Because it is safe & secure. { } Because I can use it any where. { } Because I don’t have time to go to the bank.8. For which purpose you do net banking? { } View account balance.

35

{ } Download account statement. { } Transfer fund to other bank accounts. { } Book fixed deposits. { } Pay utility bill. { } Cheque status enquiry. { } Request stop payment of cheque. { } Cheque book request. { } Tax deduction at source enquiry. { } Request for demand draft. { } Buy/Sell mutual fund.9. Please tick against the safety precaution you follow? { } I never respond to email that request personal information. { } Keep my password top secret & change it often. { } Use special character like #, $, @ etc. in password. { } Do not use same password for other online account. { } Never use cyber cafes to access my online account. { } I have installed antivirus software to keep my computer secure. { } Ensure that site is running in secure mode. { } Disable “auto complete” function to prevent internet browser for remembering password. { } Always logout to terminate the session. { } Incase of suspicion, report the matter to customer care.10.(a) Are you satisfied with your internet banking experience? { } Yes { } No (b) If no, state reason …………………………………………………………………………... 12. Please give suggestion for improvement in “internet banking” facility provided by different banks. ……………………………………………………………………………………………Date : Signature

36