Summer Internship Project Report

on
“A STUDY ON CONSUMER SATISFACTION REGARDING E-
BANKING SERVICES OFFERD BY THE CENTRAL BANK OF INDIA”

Submitted In Partial Fulfillment Of The Requirement For The Degree Of

Master of Business Administration

SUBMITTED BY:
MEGHA DEV
Course: MBA
Roll No. 1718170026
Batch: 2017-2019

UNDER THE GUIDANCE OF

MRS. REETU SINGH

H.B.T.I. CAMPUS, NAWABGANJ, KANPUR - 208002 -(UP)

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 ACKNOWLEDGEMENT

The summer project at CENTRAL BANK OF INDIA. has been an

enriching experience; the learning of project will go a long way
enabling me to achieve my future endeavors. The satisfaction and that
accompany the successful completion of the work would be incomplete
unless we mention the people, as an expression of gratitude who made
it possible and whose constant guidance and encouragement served as a
beacon of light and crowned our effort with success. The project report
is the outcome of the backing and encouragement of the number of
persons whom I have been associated during the past two months.
Firstly I would like to thanks Mr. SANDEEP KUMAR (BRANCH
MANAGER) and Mr. PRASHANJEET ROY (ASSISTANT
MANAGER), of CENTRAL BANK OF INDIA, BINDKI BRANCH.
under whose guidelines the project was taken.
I extend special thanks to Dr. MANOJ SHUKLA (Director of STEP-
HBTI), Dr. C.K. TIWARI (Course Coordinator) and all MBA faculty
members for their kind support during tenure of my project.
I am particularly grateful to Prof. REETU SINGH (Project Guide) for
providing guidance at every point of time. His suggestions were helpful
at every aspect.
Last but not the least I extend sincere thanks to all those who have
helps me directly or indirectly in this project.

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 DECLARATION

I MEGHA DEVI hereby declare that I have completed my summer training

project with CENTRAL BANK OF INDIA, BINDKI FATEHPUR for the
period of 2 month i.e. from june 1thth 2018 to july 30th 2018 under the guidance.
Mr. SANDEEP KUMAR (BRANCH MANAGER) and Mr. PRASHANJEET
ROY (ASSISTANT MANAGER), of CENTRAL BANK OF INDIA, BINDKI
BRANCH, FATEHPUR.

I have further prepared my summer training project report under the guidance of
my internal project guide Prof. REETU SINGH. I further declare that projects
original and not copied from any source and is prepared by me for first time.

I have made a very sincere effort to minimize the error and present the project in
a very lucid manner.

Date: MEGHA DEVI

Place

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CERTIFICATE

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 EXECUTIVE SUMMARY

CENTRAL BANK OF INDIA. Is the first Indian commercial bank which was
wholly owned and managed by Indians. The project TO STUDY OF
CONSUMER SATISFACTION REGARDING E-BANKING SERVICES OF
CENTRAL BANK OF INDIA is done to find out how affecting their promotional
schemes and what return they achieve. During the training i learnt about the
VARIOUS SCHEMES, WORKING ENVIRONMENT, LOAN AND ADVANCE SCHEMES
AND VARIOUS LEGAL FORMALITIES, E-BANKING SERVICES AND THE
COMPETITORS IN THE MARKET. I understood why the consumer preferred

different banks .

The study is descriptive in nature and the data information for this collected from
various sources of primary and secondary data .primary data collected through
personal interviews with the customer interview method is used for research.

The problem which I found out from the company was limited schemes e.g. the
company which offers very limited schemes and limited timing for scheme,
where people are looking for more schemes. Some time the respondent gives
vague information due to interview it is very major problem for conducting the
survey successfully.

I personally think that marketing is not easy but it depends upon target. The only
thing required in our field is the attitude.

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By going 60 days in to company I knew various things about the organization,
employee, customer, workers, and about the marketing field.

After analyzing the response of the questionnaire, it is found that CENTRAL

BANK OF INDIA has great potential.

INDEX
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SR. NO. CHAPTERS PAGE NO.

1 COMPANY PROFILE 8-11

2 OBJECTIVE OF THE STUDY 12

3 INTRODUCTION OF E-BANKING 13-17

4 E-BANKING PRODUCTS 18-29

5 TYPES OF E-BANKING 30-36

6 EMERGING CHALLENGES 37

7 SWOT ANALYSIS 38-40

8 RESEARCH METHODOLOGY 41-51

9 QUESTIONNAIRE 52-55

10 PRESENTATION AND DATA ANALYSIS 56-70

11 LIMITATIONS 73

12 SUGGESTIONS AND FINDINGS 72

13 CONCLUSION 73

14 RECOMMENDATIONS 74

15 BIBLIOGRAPHY 75

COMPANY PROFILE
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Established in 1911, Central Bank of India was the first Indian commercial bank
which was wholly owned and managed by Indians.
The establishment of the Bank was the ultimate realisation of
the dream of Sir Sorabji Pochkhanawala, founder of the Bank. Sir Pherozesha
Mehta was the first Chairman of a truly 'Swadeshi Bank'. In fact, such was the
extent of pride felt by Sir Sorabji Pochkhanawala that he proclaimed
Central Bank of India as the 'property of the nation and the country's asset'. He
also added that 'Central Bank of India lives on people's faith and regards itself as
the people's own bank'.

During the past 99 years of history the Bank has weathered many
storms and faced many challenges. The Bank could successfully transform every
threat into business opportunity and excelled over its peers in the Banking
industry.

A number of innovative and unique banking activities have been

launched by Central Bank of India and a brief mention of some of its pioneering
services are as under:

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1921 Introduction to the Home Savings Safe Deposit Schemeto build
saving/thrift habits in all sections of the society.

1924 An Exclusive Ladies Department to cater to the Bank's women

clientele.

1926 Safe Deposit Locker facility and Rupee Travellers' Cheques.

1929 Setting up of the Executor and Trustee Department.

1932 Deposit Insurance Benefit Scheme.

1962 Recurring Deposit Scheme.

Subsequently, even after the nationalisation of the Bank in the year 1969,
Central Bank continued to introduce a number of innovative banking services
as under:

1976 The Merchant Banking Cell was established.

1980 Centralcard, the credit card of the Bank was introduced.

1986 'Platinum Jubilee Money Back Deposit Scheme' was launched.

1989 The housing subsidiary Cent Bank Home Finance Ltd. was started
with its headquarters at Bhopal in Madhya Pradesh.

1994 Quick Cheque Collection Service (QCC) & Express Service was set
up to enable speedy collection of outstation cheques.

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Further in line with the guidelines from Reserve Bank of India as also the
Government of India, Central Bank has been playing an increasingly active role
in promoting the key thrust areas of agriculture, small scale industries as also
medium and large industries. The Bank also introduced a number of Self
Employment Schemes to promote employment among the educated youth.

Among the Public Sector Banks, Central Bank of India can be truly described as
an All India Bank, due to distribution of its large network in 27 out of 29 States as
also in 3 out of 7 Union Territories in India. Central Bank of India holds a very
prominent place among the Public Sector Banks on account of its network
of 4214 branches and 26 extension counters along with satelite branches at
various centres throughout the length and breadth of the country.

Customers' confidence in Central Bank of India's wide ranging services can very
well be judged from the list of major corporate clients such as ICICI, IDBI, UTI,
LIC, HDFC as also almost all major corporate houses in the country.

Corporate vision
To emerge as a strong, vibrant and pro-active Bank/Financial Super Market
and to positively contribute to the emerging needs of the economy through
consistent harmonization of human, financial and technological resources and
effective risk control systems.

 Corporate mission

♦ To transform the customer banking experience into a fruitful and enjoyable one.
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♦ To leverage technology for efficient and effective delivery of all banking
services.

♦ To have bouquet of product and services tailor-made to meet customers

aspirations.

♦ The pan-India spread of branches across all the state of the country will be
utilized to further the socio economic objective of the Government of India with
emphasis on Financial Inclusion.

DIRECTORS

OBJECTIVES OF THE STUDY

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1. To study about the factors that affects the customer perception towards e-
banking of central bank of india.
2. To know about the current and future prospects of E-Banking to the
customers.
3. To find out the major problems faced by the customers while using e-
banking services.
4. To determining growth direction of online banking service
5. Promoting E-banking services in banking industry
6. Customer perception will be taken into consideration about the internet
banking.
7. Area is restricted to only Belgaum because due to the time constraint and
not able to visit all the branches in other cities or states.
8. All the classes of the customers were taken into consideration.
9. This study was covered E-Banking service sector.
10. This is a realistic source directly collected from the customers of
Bank.

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 INTRODUCTION OF E-BANKING

The world is changing at a staggering rate and technology is considered to be the

key driver for these changes around us. 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 information technology at home
as well as at workplace. Slowly but steadily, the Indian customer is moving
towards the internet banking. The ATM and the Net transactions are becoming
popular. But the customer is clear on one thing that he wants net-banking to be
simple and the banking sector is matching 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 the telephone, the internet,
the cell phone etc.

WHAT IS E-BANKING?
Electronic banking is one of the truly widespread avatars of E-commerce the
world over. Various authors define E-Banking differently but the most definition
depicting the meaning and features of E-Banking are as follows:

1. Banking is a combination of two, Electronic technology and Banking.

2. Electronic Banking is a process by which a customer performs banking

Transactions, electronically without visiting a brick-and-mortar institutions.
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3. E-Banking denotes the provision of banking and related service through
Extensive use of information technology without direct recourse to the bank by
the customer

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 (anywhere
banking) at any time. Providing Internet banking is increasingly becoming a
"need to have" than a "nice to have" service. The 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 forefront of harnessing technology to
improve their products, services and efficiency. They have, over a long time, been
using electronic and telecommunication networks for delivering a wide range of
value added products and services.
The delivery channels include direct dial – up connections, private
networks, public networks etc and the devices include telephone, Personal

Computers including the Automated Teller Machines, etc. With the popularity of
PCs, easy access to Internet and World Wide Web (WWW), Internet is
increasingly used by banks as a channel for receiving instructions and delivering

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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.

USAGE OF E-BANKING

The rise in the e-commerce and the use of internet in its facilitation along with the
enhanced online security of transactions and sensitive information has been the
core reason for the penetration of online banking in everyday life. the internet has
grown more than 50% from 25 million in 2005 to 45 million in 2007 in India.
It has also been estimated that 60% of the population
in India use internet in their daily lives. The fundamental shift towards the
involvement of the customer in the financial service provision with the help of the
technology especially internet has helped to reduce the costs of financial
institutions as well as helped client to use the service at anytime and from
virtually anywhere with access to an internet connection. The computerization of
the banking operations has made maximum impact on:-

1) Internal Accounting System

2) Customer service
3) Diversification of system

IMPACT OF E-BANKING ON TRADITIONAL SERVICES

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One of the issues currently being addressed is the impact of e-banking on
traditional banking players. After all, if there are risks inherent in going into e-
banking there are other risks in not doing so. It is too early to have a firm view on
this yet. Even to practitioners the future of e-banking and its implications are
unclear. It might be convenient nevertheless to outline briefly two views that are
prevalent in the market. The view that the Internet is a revolution that will sweep
away the old order holds much sway. Arguments in favor are as follows:

1) E-banking transactions are much cheaper than branch or even phone

transactions. This could turn yesterday’s competitive advantage - a large
branch network - into a comparative disadvantage, allowing e-banks to
undercut bricks-and-mortar banks. This is commonly known as the
"beached dinosaur" theory.
2) E-banks are easy to set up so lots of new entrants will arrive. ‘Old-world’
systems, cultures and structures will not encumber these new entrants.
Instead, they will be adaptable and responsive.
3) E-banking gives consumers much more choice. Consumers will be less
inclined to remain loyal.

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Page 17
 E-BANKING PRODUCTS

1) Automated Teller Machine (ATM):

These are cash dispensing machine, which are

frequently seen at banks and other locations
such as shopping centers and building societies.
Their main purpose is to allow customer to
draw cash at any time and to provide banking
services where it would not have been viable to
open another branch e.g. on university campus.

An automated teller machine or automatic teller machine (ATM) is a

computerized telecommunications device that provides a financial institution's
customers a method of financial\ transactions in a public space without the need
for a human clerk or bank teller. On most modern ATMs, the customer identifies
him or herself by inserting a plastic ATM card with a magnetic stripe or a plastic
smartcard with a chip that contains his or her card number and some security
information, such as an expiration date or CVC (CVV). Security is provided by
the customer entering a personal identification number (PIN).

Using an ATM, customers can access their bank accounts in order to make cash
withdrawals (or credit card cash advances) and check their account balances.

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Many ATMs also allow people to deposit cash or checks, transfer money between
their bank accounts, pay bills, or purchase goods and services.

Some of the advantages of ATM to customers are:-

• Ability to draw cash after normal banking hours
• Quicker than normal cashier service
• Complete security as only the card holder knows the PIN
• Does not just operate as a medium of obtaining cash.
• Customer can sometimes use the services of other bank ATM’s.

2) Tele banking or Phone Banking:

Telephone banking is relatively new Electronic Banking Product. However
it is firstly becoming one of the most popular products. Customer can
perform a number of transactions from the convenience of their own home
or office; in fact from anywhere they have access to phone. Customers can
do following:-
• Check balances and statement information
• Transfer funds from one account to another
• Pay certain bills
• Order statements or cheque books
• Demand draft request

This facility is available with the help of Voice Response System (VRS). This
system basically, accepts only TONE dialed input. Like the ATM customer has to

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follow particular process, initially account number and telephone PIN are fed for
the process to start. Also the VRS system provides the users within additional
facilities such as changing existing password with the new desired, information
about new products, current interest rates etc.

Mobile Banking:
Mobile banking comes in as a part of the banks initiative to offer multiple
channels banking providing convenience for its customer. A versatile
multifunctional, free service that is accessible and viewable on the monitor of
mobile phone. Mobile phones are playing great role in Indian banking- both
directly and indirectly. They are being used both as banking and other channels.

CENT MOBILE APPLICATION

It is a application offered by central bank of india. Users can access

most of the banking services anywhere anytime through internet enabled smart
phones. It has…
PRE LOGIN FEATURES
BRANCH AND ATM LOCATION
APPLY FOR LOAN OR CREDIT CARD
REAL TIME NOTIFICATIONS
FUND TRANSFER
MINI STATEMENT and so on……

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BHIM Aadhaar Cent Pay

It is used for merchant On-Boarding /registration

by due process for accepting BHIM Aadhaar
based payments from customers. Customer payment
will be credited direct to the merchant account instantly
in a secure environment.

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 INTERNET BANKING SERVICES
This facility is offered to customers of the branches, which are covered
under Core Banking. For list of core banking branches please see the CBS
Branches link in the home page of the site.
Customers having Savings/OD/CD accounts with our branches and intend to
have Internet Banking facility may submit the application form, appended
below, to their respective branches where they are maintaining their
accounts.On receipt of the duly filled in application form, the process of
registering their application for Internet Banking will start. The Bank will
dispatch to the customers passwords for Login and Transaction separately.
Upon receipt of the passwords, customers need to visit the branch for
collecting the User ID (Customer ID) and activating the Internet Banking
facility.

Presently the following facilities are offered to customers through Internet

Banking:

1) Balance enquiry in the Accounts

2) Cheque status enquiry

3) Display of transactions for a specified period/ current period

4) Download/ print of statement of account in various formats for a

specified period/ current period.

5) Funds transfer between own accounts

6) Funds transfer between own account to any third party account

maintained in any core banking branch up to specified limits.

7) Stop payment of cheques

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 CENTRAL BANK OF INDIA CARDS

 CREDIT CARD
Domestic and International Acceptance
Global acceptance at more than 29 million
Merchant outlets and 1 million ATMs
Period and Seasonal discount offers at hotels, exclusive shopping offers all
through the year.
 DEBIT CARD

 High Withdrawal & Transaction Limit

 Convenient Shopping with Loyalty & Rewards.
 Security on Transactions

FEATURES
International Debit Card is a host of benefits that will enhance your lifestyle and
provides convenience in your banking transactions.

 Worldwide Reach:
This International Debit Shopping Card is accepted at over 1.9 million ATMs and
millions of merchant establishments in India and abroad.

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 High withdrawal limit & transaction limit:
You can enjoy shopping transaction limit of Rs. 100000 per day and ATM cash
withdrawal limit of Rs 40000 per day.

 Online Transactions:
International Debit Shopping Card can be used online for shopping, booking
railway or air tickets, paying bills or enjoying movie with your family. This card
is enabled for online usage with MasterCard secure code providing you an
additional security of password known only to you for completing online
purchases.

 Loyalty & Rewards on shopping:

Card holder can earn & accumulate Anmol Points for all shopping transaction at
Point of Sale (POS), online & over the phone purchases using your Debit Card.
With every Rs.100 spent, earn 1 Anmol Point. Register your card
at www.anmolrewardz.com/cbi/debitcard and redeem attractive merchandise and
services.

 SMS Protection:
Cardholder will receive SMS alert on mobile phone every time a purchase is
made with card. This updates you on all new purchase with your card. If you get
an alert for purchase that is not yours, report it to our 24 hour customer service
centre or any branch location. Your card will be blocked and a replacement card
will be sent to you by the mail.

 Helpline:
Customer care centre for your convenience, we have set up a Customer Care
Centre with 1800 200 1911/ 1800 221 622 (toll free from MTNL/BSNL &
mobile). In case of any clarifications or queries, you can call on this toll free
number.

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 3 D Secure Service:
For the security point of purpose, please register your card
athttps://cbi.electracard.com/cbi/enrollment/enroll_welcome.jsp

WONDER CARD
Wonder Card is Debit Card variant
(under Visa platform) especially
launched for salary class savings
account holders.Wonder Card product is
a single window for operating saving and overdraft accounts. It in-builds the
features of Debit Card cum Credit Card. Wonder Card gives cardholder the
freedom to use the card for an amount in excess of the credit balance held in
linked account to the extent of pre-determined credit facility.
The main features of Wonder Card product offered by bank are:

1. "Wonder Card" can be used even when the account has no credit balance.

2. It has in-built credit facility - The facility can be utilized by the customer by
overdraft created in salary account.

3. Interest Servicing - Interest shall be charged on the actual utilisation of OD

facility on daily basis.

4. Online Shopping - Wonder Card can be used for shopping, booking rail & air
tickets, utility bill payments ONLINE with additional authentication of vbv -
verified by visa

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5. Daily Limits - Customers can withdraw cash up to Rs.50,000 at ATMs and make
purchases worth Rs 50,000 at merchant establishments in a day (including online
shopping).

6. The in-built credit limits can be enhanced to 3 times the net monthly salary for
Govt/Public sector/A rated private corporate employee & 2 times the net monthly
salary for employee of other companies.

RUPAY DEBIT CARD

This card is called "Shopping cum Debit Card". This new debit card on RuPay
platform will benefit the bank in terms of reduced transaction cost. The main
features of this product are:

1. RuPay Debit Card is valid in India only and can be used at member banks
ATMs (NFS)

2. RuPay Debit Card can be used with PIN only and hence is more secure.

3. Cash withdrawal limit at ATMs will be Rs.40,000/- per day.

4. Spend limit at merchant outlets (POS) will be Rs 1,00,000/- per day

5. Can be used for convenient shopping & dining at selected outlets accepting
RuPay Cards in India.

6. RuPay Debit Card is available to all customers eligible for Debit Card issuance.

7. RuPay Debit Card can be issued to Zero Balance Accounts.

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 PLATINUM DEBIT CARD

 Debit card for HNI Customers.

 High Cash withdrawal limit of Rs. 100000 & Shopping Transaction limit of
Rs.200000 per day.
 Zero Fuel recharge and zero liability protection.
 More loyalty and rewards on shopping.

Features:

Platinum Debit Card is a host of benefits that will enhance customers' lifestyle
and provides convenience in their banking transactions.

 Worldwide Reach:
Platinum Debit Card is accepted at over 1.9 million ATMs and millions of
merchant establishments in India and abroad

 High transaction limit:

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 You can enjoy shopping transaction limit of Rs.200000 per day and ATM cash
withdrawal limit of Rs 100000 per day.

 Zero Liability Protection:

Platinum debit card comes with the added security of Zero Liability, a unique
feature which protects your debit card up to Rs. 100000 against unauthorized
purchase on loss, theft or misplacement of your card.

 Zero Fuel Surcharge:

You can fill fuel on your Platinum Debit card without having to worry about the
fuel surcharge being levied on your petrol transactions between Rs. 400 to Rs.
4000.

 Online Transactions:
Platinum Debit Card can be used online for shopping, booking railway or air
tickets, paying bills or enjoying movie with your family. This card is enabled for
online usage with MasterCard secure code providing you an additional security of
password known only to you for completing online purchases.

 Loyalty & Rewards on shopping:

Card holder can earn & accumulate Anmol Points for all shopping transaction at
Point of Sale (POS), online & over the phone purchases using your Debit Card.
With every Rs.100 spent, earn 1.5 Anmol Point. Register your card
at www.anmolrewardz.com/cbi/debitcard and redeem attractive merchandise and
services.

Exclusive Offers:
By using your platinum debit card you get exclusive offers in leading restaurants,
shopping establishments, hotels, resorts etc locally and around the world.

 SMS Protection:

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 Cardholder will receive SMS alert on mobile phone every time a purchase is
made with card. This updates you on all new purchase with your card. If you get
an alert for purchase that is not yours, report it to our 24 hour customer service
centre or any branch location. Your card will be blocked and a replacement card
will be sent to you by the mail.

 Helpline:
Customer care centre for your convenience, we have set up a Customer Care
Centre with 1800 200 1911/ 1800 221 622 (toll free from MTNL/BSNL &
mobile). In case of any clarifications or queries, you can call on this toll free
number.

 3 D Secure Service:
For the security point of purpose, please register your card
athttps://cbi.electracard.com/cbi/enrollment/enroll_welcome.jsp

All HNI customers having account with our bank and having Average
Quarterly Balance more than Rs. 50000 can avail the facilities of this card.
Existing customers having their average quarterly balance more than Rs.
50000 can upgrade themselves by applying for this card at their nearest
branch.

neXGen Debit Card

 Debit card for minors.

 Cash withdrawal limit & Shopping
 Transaction limit of Rs.5000 per day.
 Loyalty & Rewards

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 FEATURES

 Worldwide Reach:
This neXGen International Debit Card is accepted at over 1.9 million ATMs and
millions of merchant establishments.

 Withdrawal limit & transaction limit:

Minors can enjoy shopping transaction limit of Rs.5000 per day and ATM cash
withdrawal limit of Rs 5000 per day.

 Online Transactions:
neXGen International Debit Card can be used online for shopping, booking
railway or air tickets, paying bills or enjoying movie with your family. This card
is enabled for online usage with MasterCard secure code providing you an
additional security of password known only to you for completing online
purchases.

 Loyalty & Rewards on shopping:

Card holder can earn & accumulate Anmol Points for all shopping transaction at
Point of Sale (POS), online & over the phone purchases using your Debit Card.
With every Rs.100 spent, earn 1 Anmol Point. Register your card
at www.anmolrewardz.com/cbi/debitcard and redeem attractive merchandise and
services.

All minor account holders (Age group between 10 to 17 years) and Add on
card to minor connected to Major account holder are eligible for this card.

Page 30
 TYPES OF INTERNET BANKING OR E-BANKING

Understanding the various types of

Internet banking will help examiners
assess the risks involved. Currently, the
following three basic kinds of Internet
banking are being employed in the
marketplace.
• Informational- this is the basic level of Internet banking. Typically, the bank
has marketing information about the bank’s products and services on a stand-
alone server. The risk is relatively low, as informational systems typically have
no path between the server and the bank’s internal network. This level of Internet
banking can be provided by the banks or outsourced. While the risk to a bank is
relatively low, the server or web site may be vulnerable to alteration. Appropriate
controls therefore must be in place to prevent unauthorized alterations to the
bank’s server or web site.

• Communicative- this type of Internet banking systems and the customer. The
interaction between the bank’s system and the customer. The interaction may be
limited to electronic mail, account enquiry, loan applications, or static file updates
(name and address change). Because these servers may have a path to the bank’s
internal networks, the risk is higher with this configuration than with
informational systems. Appropriate controls need to be in the place to prevent,
monitor, and alert management of any unauthorized attempt to access the bank’s

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internal networks and computer systems. Virus controls also become much more
critical in this environment.

• Transactional- this level of Internet banking allows customers to execute

transactions. Since a path typically exists between the server and the bank or
outsourcer’s internal network, this is the highest risk architecture and must have
the strongest controls. Customer transactions can include accessing accounts,
paying bills, transferring funds etc

FEATURES OF E-BANKING

Transactional: (e.g. performing a financial transaction such as an account to

account
transfer, paying a bill or applications like applying for a loan, new account, etc.)
• Electronic Bill Presentment and Payment (EBPP)
• Funds transfer between customers own checking and savings accounts, or to
another customers account.
• Investment purchase or sale.
• Loan application and transactions such as repayments.
Non-transactional: (e.g. online statements, Check links, Chat, Co-browsing etc.)
Financial Institution Administration- features allowing financial institutions to
manage the online experience of their end users.
ASP/ Hosting Administration – features allowing the hosting company to
administer the solution across financial institution.

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 ADVANTAGES OF E-BANKING

• Convenience- Unlike your corner bank, online banking sites never close;
they’re available 24 hours a day, seven days a week, and they’re only a mouse
click away. With pressures on time and longer travelling periods, more and more
people find it tiresome waiting in queues. People want flexibility, and Internet
banking offers just that.

• Ubiquity- If you’re out of state or even out of the country when a money
problem arises, you can log on instantly to your online bank and take care of
business, 24\7.

• Transaction speed- Online bank sites generally execute and confirm

transactions at or quicker than ATM processing speeds.

• Efficiency-You can access and manage all of your bank accounts, including
IRA’s, CDs, even securities, from one secure site.

• Effectiveness- Many online banking sites now offer sophisticated tools,

including account aggregation, stock quotes, rate alert and portfolio managing
program to help you manage all of your assets more effectively. Most are also
compatible with money managing programs such as quicken and Microsoft
money.

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• Cheaper alternative: - With increasing competition, it seems to be the cost

factor that is driving banks to offer the facility. The Internet is still a very cheap
alternative to opening a physical branch, and most of the push seems to be
coming from the supply side. The costs of a banking service through the Internet
form a fraction of costs through conventional methods.

DISADVANTAGES OF INTERNET BANKING

• Start-up may take time-In order to register for your bank’s online program,
you will probably have to provide ID and sign a form at a bank branch. If you and
your spouse wish to view and manage their assets together online, one of you may
have to sign a durable power of attorney before the bank will display all of your
holdings together.

• Learning curves- Banking sites can be difficult to navigate at first. Plan to

invest some time and\or read the tutorials in order to become comfortable in
your virtual lobby.

• Bank site changes- Even the largest banks periodically upgrade their online
programs, adding new features in unfamiliar places. In some cases, you may
have to re-enter account information.

Page 34
 HOW E-BANKING CAN EASE YOUR LIFE

Indian banks are trying to make your life easier. Not just bill payment, you can
make investments, shop or buy tickets and plan a holiday at your fingertips. In
fact, sources from ICICI Bank tell us, "Our Internet banking base has been
growing at an exponential pace over the last few years. Currently around 78 per
cent of the bank's customer base is registered for Internet banking." To get
started, all you need is a computer with a modem or other dial-up device, a
checking account with a bank that offers online service and the patience to
complete about a one-page application-- which can usually be done online. You
can avail the following services.

1. Bill payment service: Each bank has tie-ups with various utility companies,
service providers and insurance companies, across the country. It facilitates the
payment of electricity and telephone bills, mobile phone, credit card and
insurance premium bills. To pay bills, a simple one-time registration for each
biller is to be completed. Standing instructions can be set, online to pay recurring
bills, automatically. One-time standing instruction will ensure that bill payments
do not get delayed due to lack of time. Most interestingly, the bank does not
charge customers for online bill payment.

Page 35
2. Fund transfer: Any amount can be transferred from one account to another of
the same or any another bank. Customers can send money anywhere in India.
Payee’s account number, his bank and the branch is needed to be mentioned after
logging in the account. The transfer will take place in a day or so, whereas in a
traditional method, it takes about three working days. Central Bank says that
online bill payment service and fund transfer facility have been their most popular
online services.

3. Credit card customers: Credit card users have a lot in store. With Internet
banking, customers can not only pay their credit card bills online but also get a
loan on their cards. Not just this, they can also apply for an additional card,
request a credit line increase and God forbid if you lose your credit card, you can
report lost card online.

4. Investing through Internet banking: Opening a fixed deposit account cannot

get easier than this. An FD can be opened online through funds transfer. Online
banking can also be a great friend for lazy investors. Now investors with
interlinked demat account and bank account can easily trade in the stock market
and the amount will be automatically debited from their respective bank accounts
and the shares will be credited in their demat account.
Moreover, some banks even give the facility to purchase mutual funds directly
from the online banking system. So it removes the worry about filling those big
forms for mutual funds, they will now be just a few clicks away. Nowadays, most
leading banks offer both online banking and demat account. However if the

Page 36
customer have there demat account with independent share brokers, then need to
sign a special form, which will link your two accounts.

6. Recharging your prepaid phone: Now there is no need to rush to the vendor
to recharge the prepaid phone, every time the talk time runs out. Just top-up the
prepaid mobile cards by logging in to Internet banking. By just selecting the
operator's name, entering the mobile number and the amount for recharge, the
phone is again back in action within few minutes.

7. Shopping at your fingertips: Leading banks have tie ups with various
shopping
websites. With a range of all kind of products, one can shop online and the
payment is also made conveniently through the account. One can also buy railway
and air tickets through Internet banking.

. 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

Page 37
 EMERGING CHALLENGES

Information technology analyst firm, the Meta Group, recently reported "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.
• 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 also 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.

Page 38
SWOT Analysis is a powerful technique for understanding your Strengths and
Weaknesses, and for looking at the Opportunities and Threats you face. Used in a
business context, it helps you carve a sustainable niche in your market. Used in a
personal context, it helps you develop your career in a way that takes best
advantage of your talents, abilities and opportunities.

Page 39
SWOT ANALAYSIS OF CENTRAL BANK OF INDIA

STRENGTH

 Right strategy for the right products.

 Superior customer service vs. competitors.
 Great Brand Image
 Products have required accreditations.
 High degree of customer satisfaction.
 Good place to work
 Lower response time with efficient and effective service.
 Dedicated workforce aiming at making a long-term career in the field.

WEAKNESSES

 Some gaps in range for certain sectors.

 Customer service staff need training.
 Processes and systems, etc
 Management cover insufficient.
 Sectoral growth is constrained by low unemployment levels and
competition for staff

OPPORTUNITIES
 Profit margins will be good.
 Could extend to overseas broadly.
 New specialist applications.
 Could seek better customer deals.
 Fast-track career development opportunities on an industry-wide basis.
 An applied research centre to create opportunities for developing
techniques to provide added-value services.

Page 40
 THREATS

 Legislation could impact.

 Great risk involved
 Very high competition prevailing in the industry.
 Vulnerable to reactive
 attack by major competitors
 Lack of infrastructure in rural areas could constrain investment.
 High volume/low cost market is intensely competitive.

KEY POINT

SWOT Analysis is a simple but powerful framework for analyzing company's

Strengths and Weaknesses, and the Opportunities and Threats you face. This
helps you to focus on your strengths, minimize threats, and take the greatest
possible advantage of opportunities available to you.

Page 41
 REVIEW OF LITERATURE

Shah & Braganza (2007), this survey

indicates the Critical Success Factors in
e- banking and the author suggest in this
article that the organizational factors, which
are critical to the success of e-banking, 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 UK based 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.
They need to give attention to internal integration, which may include channels,
technology and business process integration, and improving the overall services
to their customers.

Page 42
Awamleh (2006) This study analyses the internet banking channels and service
preferences of educated banking consumers in the UAE and examines the factors
influencing the intention to adopt or to continue the use of internet banking
among both users and non users of internet banking. It is shown that although the
banking sector in the UAE is a regional leader, internet banking in the UAE is yet
to be properly utilized as a real added value tool to improve customer relationship
and to attain cost advantages. The Technology Acceptance Model (TAM) was
used to identify factors influencing the intention to adopt and continued use of
internet banking customers. Data was collected from internet banking users and
potential users in the United Arab Emirates and factor analyses and multiple
regression analyses were conducted to examine the data. Relative usefulness is
introduced as one of the factors and is defined as the degree to which a new
technology is better than existing ones. There is a significant difference between
users and non-users on six of the seven factors identified. Further, it was revealed
that relative usefulness, perceived risk, computer efficacy and image had a
significant impact on continued usage of internet banking for IB Users, while
relative usefulness and result demonstrability were the only ones significant for
Non-users of internet banking. The effects of age, gender, income, and e-
commerce users also explored. Result demonstrability is significant for all
categories of non-users except for those with income below AED 7,000.
Implications of results were discussed, and future research directions outlined.

Bauer, Malik & Falk (2006), 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
Page 43
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 validate a 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 in the internet provides
banks a promising starting point for establishing an effective quality management
for their e-businesses.

Kamiya (2006) this articles show that Indian banks are trying to make your life
easier. Not just bill payment, you can make investments, shop or buy tickets and
plan a holiday at your fingertips. In fact, sources from ICICI Bank tell us, "Our
Internet banking base has been growing at an exponential pace over the last few
years. Currently around 78 per cent of the bank's customer base is registered for
Internet banking." To get started, all you need is a computer with a modem or
other dial-up device, a checking account with a bank that offers online service
and the patience to complete about a one-page application--which can usually be
done online. You can avail the following services: Bill payment Services, Fund
Transfer, Credit Card, Internet shopping, and Investment though Internet etc. Due
to the Internet banking the life of an individual becomes easy and raises the
standard of life of the humans.
Page 44
Maumbe (2006) This study depicts that most banks throughout the world, ICT
have become the back bone of financial service delivery and finance networks
have shifted from paper-based to the digital mode. However, digital financial
service delivery confronts a number of challenges regarding its efficacy in closing
the “financial divide” affecting the poor. Although e-banking is considered an

Veneeva (2006) inexpensive way to reach clients, its accessibility is hindered by

a number of factors including poor Internet penetration, lack of e-banking
awareness and customer inflexibility to new technology. In developing countries
most of which are characterized by extreme poverty and poor infrastructure,
universal Internet-based service provision remains indefinable. Further, the author
argues that developing nations need to improve educational standards and
computer literacy prior to broad-based adoption and constructive use of Internet
services. As result, the poor and unemployed remain disadvantaged in terms of
access to rural Internet based services. Real access to “well- functioning” and
“efficient financial services” has the potential to empower poor communities.)
this article describes that world is changing at a staggering rate and technology is
considered to be the key driver for these changes around us. Many activities are
handled electronically due the acceptance of information technology at home as
well as at workplace. Internet can be seen as a truly global phenomenon that has
made time and distance irrelevant to many transactions. The evolution of
electronic banking started from the use of automatic teller machines (ATM) and
has passed through telephone banking, direct bill payment, electronic fund

Page 45
transfer and the revolutionary online banking (Alter, 2002). The future of
electronic banking according to some is the acceptance of WAP enabled banking
and interactive-TV banking (Petrus & Nelson, 2006). But it has been forecasted
that among all the categories, online banking is the future of electronic financial
transaction. The rise in the e-commerce and the use of internet in its facilitation
along with the enhanced online security of transactions and sensitive information
has been the core reasons for the penetration of online banking in everyday life.

Anthony (2004), this article discusses the importance of usability within the E-
Banking sector and identifies common usability problems and ways to resolve
them. It is widely recognised that online banking provides more revenue per
customer and costs less per transaction than any other channel, including phone
banking. Encouraging news from Forrester Research states that by 2007 the
number of Europeans banking online will double to 130 million. Based on the
principles of Human Computer Interaction (HCI), web usability has become a
recognised success factor for all e-business, including online banking. Users most
enjoy those sites that provide clear information, easy navigation and an engaging
customer experience. Yet people will naturally gravitate to the ones which are
easiest to use and offer the best service. Banks aiming to profit the most from the
increase in online banking volumes should consider the usability and accessibility
of all aspects of their site to welcome them.

Asghar (2004), the study depicts that online banking and the web channel are
here to stay. Financial services rely on multiple distribution channels and e-
banking represents the channel of the future. Success stories around e-banking
Page 46
have taken shape through a mix of innovation and experience. The financial
services sector needs to apply both these factors to their advantage to produce the
desired results. Win-win implementation of e-banking not only requires high
Internet penetration rates and stable infrastructures, but more importantly, for
companies to realize the powerful revenue opportunity of this business arm vis-à-
vis the traditional brick and mortar system of operation. Therefore, it is
imperative that all e-banking implementations are seamlessly integrated with the
core 'traditional' services thereby making the online experience truly holistic for
the customer.

Picado, Gonzalez & Eckelman (2004), 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.

Page 47
 HYPOTHESIS

EASE OF USE
Ho: Ease of use does not influence the use of E Banking services.
H1: Ease of use does influence the use of E Banking services.

DIRECT ACCESS
Ho: Direct Access does not influence the use of E Banking services.
H1: Direct Access does influence the use of E Banking services.

FRIENDS/RELATIVES
Ho: Friends/Relatives do not influence the use of E Banking services.
H1: Friends/Relatives do influence the use of E Banking services.

Page 48
 RESEARCH METHODOLOGY
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 an 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 has
many 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 other will not.
Therefore in order to solve a research problem, it is necessary to design a research
methodology for the problem as the some may differ from problem to problem.
The methodology adopted for studying the objectives was surveying the our bank
customers in the city of munavally karnatka.

Page 49
NATURE
The methodology adopted to achieve the project objective involved descriptive
research method. The information required for fulfilling the objective of study
was collected from various primary and secondary sources.

TYPE OF RESEARCH
This study is DESCRIPTIVE in nature. It helps in breaking vague problem into
smaller and precise problem and emphasizes on discovering of new ideas and
insights.

RESEARCH DESIGN
Research design constitutes the blue print 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 class. The research design is
descriptive in nature. The research has been conducted on customers of
CENTRAL BANK OF INDIA within BELGAUM KARNATKA. For the
selection of the sample, convenient 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 was questionnaire. To get further insight
in to the research problem, interview regarding their buying practices too was

Page 50
made. This was done to crosscheck the authenticity of the data provided. 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.

DATA COLLECTION

Keeping in view the nature of requirements of the study to collect all the relevant
information regarding the extent of awareness of the customers using E-banking
facilities offered by CENTRAL BANK , direct personal interview method with
structured questionnaire was adopted for the collection of primary data.
Secondary data has been collected through the various internet sites by surfing on
Internet and from the records available with the bank.

Sources of data: Following are the methods of sources of data:

SECONDARY DATA:
• Articles on E-Banking taken from journals, magazines published from time to
time.
• Through internet.

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,

Page 51
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.

SAMPLE DESIGN AND SIZE

In this research project Descriptive research design is used. Judgement and
Convenience sampling method will be used to get the information about online
banking. This method is used because we are interested in exploring gender, age,
or occupation disparities in terms of online banking in the population. For
conducting this research, a structured questionnaire is prepared and sample of 150
customers is taken from CENTRAL BANK OF INDIA.

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 150 respondents. The respondents belong to
different income group and profession.

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 customer of cental bank of india.

Page 52
 QUESTIONNAIRE

STUDY OF CONSUMER SATISFACTION REGARDING

E-BANKING SERVICES OFFERED BY BANKS

Name: Age:
Gender: Occupation:
Contact No:

Q.1 How long you are associated with this bank?

a) 1 year b) 2 years
c) 3 years d) More than 3 years

Q.2 Why you are associated with this bank?

a) Services are good b) They provide security
c) Cheaper service fees d) Others

Q.3 How long have you been using e-banking?

a) Less than 1 month b) 1-6 months
c) 6-12 months d) More than 1 years

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Q.4 Which type of service mostly you use?
a) Balance & transaction history search b) Transfer fund online
c) Card to card fund transfer d) Open FD

e) Lock/ activate debit cards/ATMs f ) Request a cheque book

g) Stop payment h) Railway pass/ ticket

i) Shopping j) Share payments

Q .5 How frequently do you visit your bank branch per month?

a) Less than 1 time b) 1-3 times

c) 3-8 times d) 8-12 times

e) Over 12 times

Q.6 What is the main reason that you typically visit your bank branch?

a) To make a deposit b) To get advice for

investment options
c) To inquire about a balance d) To withdraw cash

e) Others

Page 54
Q.7 Do you frequently use online banking?

a) Very often b) Often

c) Seldom d) No

Q.8 How frequent do you use telephone banking services per month (for e.g fund
transfer b/w account, balance inquiry)?

a) Less than 1 time b) 1-3 times

c) 3-8 times d) 8-12 times

e) Over 12 times

Q.9 What type of online banking services you are enjoying?

a) Normal a/c 12 b) Normal cash 10

c) Foreign 8 d) Others 20

Q.10 Can you rely on the security system of online banking?

a) Yes b) Not at all

c) A little bit

Q.11 Do you face any problem in online banking?

a) Several times b) Rare

c) Not at all

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Q.12 Which feature of online banking attracts you most?

a) Transactional b) Non transactional

Q.13 Are you satisfy with the changes imposed on line banking?

a) Satisfied b) Not satisfied

Q.14 Online banking service is yet out of the reach of middle class and lower
class people. Do you agree with this statement?

a) Agree b) Disagree

Q.15 Do you think that online banking services provided by banks in our country
are satisfactory?

a) Very satisfactory b) Satisfactory

c) Neither dissatisfactory nor satisfactory d) Dissatisfactory

e) Very dissatisfactory

Q.16 Any suggestion do you want to give?

a) Yes b) No

--------------------------------------------------------------------------------------------------
-

Page 56
 PRESENTATION & ANALYSIS OF DATA

Q.1 How long you are associated with CENTRAL BANK OF INDIA?

1 year
More than 3 year 16%
24%

3 year 2 year
28% 32%

1 0-1 year 24
2 1-2 year 48
3 2-3 year 42
4 3 above 36
TOTAL 150

Page 57
Q.2 Why you are associated with CENTRAL BANK OF INDIA?

Others
8%

Services are
good
38%

Cheaper
service fees
44%
They provide
security
10%

1 Service are good 57

2 Security 15
3 Cheaper service fee 66
4 Other 12
TOTAL 150

Page 58
Q.3 How long have you been using e-banking?

Less than 1 month

More than 1 year 12%
18%

6-12 months
32%

1-6 months
38%

1 0-1 month 18
2 1-6 month 57
3 6-12 month 48
4 Above 1 year 27
TOTAL 150

Page 59
Q.4 Which type of service mostly you use?

Balance &
transaction history
Shopping search
16% 10%
Transfer fund
online
6%
Lock/activate debit
card's/ATM's
8%

Railways
pass/ticket Request a cheque
28% book
18%

Stop payment
14%

1 Balance & transaction history search 15

2 Transfer fund online 9
3 Lock/activate debit card's/ATM's 12
4 Request a cheque book 27
5 Stop payment 21
6 Railways pass/ticket 42
7 Shopping 24
TOTAL 150

Page 60
Q.5 How frequently do you visit your bank branch per month?

Over 12 times Less than 1 time

8% 16%
8-12 times
16%

1-3 times
3-8 times 32%
28%

1 Less than 1 time 24

2 1-3 times 48
3 3-8 times 42
4 8-12 times 24
5 Over 12 times 12
TOTAL 150

Page 61
Q.6 What is the main reason that you typically visit your bank
branch?

Other
14%
To make a deposit
42%
To withdraw cash
28%

To inquire about a To get advice for

balance investment
8% 8%

1 To make a deposit 63
2 To get advice for investment 12
3 To inquire about a balance 12
4 To withdraw cash 42
5 Other 21
TOTAL 150

Page 62
Q.7 Do you frequently use online banking?

No Very often
12% 12%

Seldom
34%

Very often
42%

1 Very often 18
2 Very often 63
3 Seldom 51
4 No 18
TOTAL 150

Page 63
Q.8 How frequent do you use telephone banking services per month
(for example fund transfer b/w account, balance inquiry)?

Over 12 times Less than 1 time

6% 12%

1-3 times
8-12 times 24%
32%

3-8 times
26%

1 Less than 1 time 18

2 1-3 times 36
3 3-8 times 39
4 8-12 times 48
5 Over 12 times 9
TOTAL 150

Page 64
Q.9 Can you rely on the security system of online banking?

Yes
18%
Not at all
44%

A little bit
38%

1 Yes 27
2 A little bit 57
3 Not at all 66
TOTAL 150

Page 65
Q.10 Do you face any problem in online banking?

Not at all
8% Several times
28%

Rare
64%

1 Several time 42
2 R are 96
3 Not at all 12
TOTAL 150

Page 66
Q.11 Which feature of online banking attracts you the most?

Non-transactional
28%

Transactional
72%

1 Transactional 108
2 Non-Transactional 42
TOTAL 150

Page 67
Q.12 Are you satisfied with the charges imposed on online banking?

Not satisfied
22%

Satisfied
78%

1 Satisfied 117
2 Non Satisfied 33
TOTAL 150

Page 68
Q.13 Online banking service is yet out of the reach of middle class
and lower class people. Do you agree with this statement?

Disagree
32%

Agree
68%

1 Agree 102
2 Disagree 48
TOTAL 150

Page 69
Q.14 Do you think that online banking services provided by banks in
our country are satisfactory?

Very
dissatisfactory
4%

Dissatisfactory
20% Satisfactory
28%

Neither satisfactory
nor dissatisfactory
42%

1 Very satisfactory 009

2 Satisfactory 042
3 Neither satisfactory nor 063
dissatisfactory
4 Dissatisfactory 030
5 Very dissatisfactory 006
TOTAL 150

Page 70
Interpretation of Analysis

 It was found that the banks with most ATMs have gained priorities in
the minds of the customers.

 The study has shown that the customers want better branch network so
that they can operate their account from different city also.

 The study has shown that since different bank are providing different
facilities to different type of retail banking products so in lieu of better
facilities customer have different account in different banks.

 The study has shown that there is a growing concern among the
customers about the attitude of bank employees towards them.

 Due to limitation of time very few customers could be contacted.

For any study to be practically meaningful, these number need to
be significantly higher.

 The environment available for filling the questionnaire or attending

the interview is not very conducive for serious interaction and
some of the responses may be casual, thus affecting the final
analysis.

 The sample size was not large enough and may not be
representative of the whole population.

 The scope of study was limited to only certain product categories

and cannot be generalized to all the product categories.

Page 71
 LIMITATIONS

Limitation faced while conducting survey were as follows:

 People where a little bit hesitate in filling the questionnaire.

 Sometime respondent were found to be inactive. They did not
take it seriously.
 It was difficult for me to take proper sampling.
 Close supervision to check the correctness of responses was not
possible due limited access of working staff.
 Certain confidential matters were not disclosed which might have
made the findings as little of the mark and increase the error
variences.

Page 72
 FINDINGS & SUGGESTIONS
1. In the user ratio of internet banking 65% of the customer are using
this service.

2. More banks are connecting to the any software company to running

the e-banking services. In these services the SBI bank is top in e-
banking services.

3. The services that are most used by maximum customers are

transactions, online trading, bill payment, shopping etc.

4. The mode of the cash deposit in bank is for use to online truncation
cash, cheque and e-banking.

5. Different banks different charges for online services

SUGGESTIONS

1. Demostration of e-banking should be provided to the existing

customers to promote e-banking.

2. Encourage customers that e-banking is totally safe if you take

necessary precautions like protect your password from others.

3. Provide discounts on shopping through e-banking.

4. Bank is not take more charge from there customers.

Page 73
 CONCLUSION

The basic objective of my research was to analyze the awareness among

Customers for internet banking in india. It gives direction to research tool,

Research type and techniques. Althought the findings reveal that people

know about the services but still many people are unaware and many of

them are non-users so the bank should by promotion try to retain the

customers. Banks should looks forward to have some tie-ups with other

financial institution to increase the service base.

 Location and loyalty towards the old banks were the key factors for this
particular behaviour. The corporation therefore should give a serious
thought to these aspects and try to provide service, which can somehow
make a dent in the loyalty and more trust towards the state owned banks.

 Bank should look to open new branches with proper planning and careful
selection of the location, which is convenient to the target customers
especially in places where there are a lot of option in front of the
consumers.

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 RECOMMENDATIONS

From the survey it is found that the customers thinks there are some
solutions on these types of problem. They provided some suggestions
on remedial measures regarding these problems these are listed below:

1. Authority should take initiatives to solve the problems.

2. Should give emphasis on customer satisfaction.
3. Should arrange an interest free electronic banking services.
4. More opportunities should be created for getting more loyal
customers.
5. Should take steps to solve the technical problems.

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 BIBLIOGRAPHY

WEBSITES REFFERED:

 www.wikipedia.com
 www.centralbankofindia.co.in
 www.google.co.in

BOOKS
 E-BANKING IN INDIA
 INDIAN BANKING

 Marina, Kamal (1999). Reference in the E-BANKING, Cairo, the publisher

of the universities

 El, Amal (2002). Society and the ways of the E-BANKING. Cairo, Dar Al-
Arab Thought.

 Rousan, Farouk (2003). Introduction to the E-BANKING, Oman, House

thought of printing and publishing.

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THANK YOU

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