ONLINE BANKING

[Document Subtitle]
April, 2011

A PROJECT REPORT
ON
ONLINE BANKING
APRIL, 2011

Submitted To

Prof. RAMA DESHMUKH

PREPARED BY

MFM 1ST YEARMMMMMMM

GROUP MEMBERS
1. AWAKHALWALA MUBASSIR

ROLL NOS.
03

2. HARBIR
3. MORE PRANALI

32

4. SALVI SHRADDHA

44

5. ZENDE SACHIN

60

Index
Introduction - about the particular industry from which the duct
or service belong to. SWOT analysis etc. - Pranali More
Research - method of data collection, sample size, data analysis
- ShraddhaSalvi
Results and findings - SachinZende
conclusion& Major Players - what r the major factors/ drivers of
consumer demand, what r d new opportunities for the product/
service etc. - Mubasshir A.
2. Bibliography - it should be written in standard format. For
this refer to any standard reference book.

INDEX
TABLES OF CONTENTS

5
Sr. No.

Title of Chapter

Introduction

SWOT Analysis

Reasearch

Method of Data Collection

Sample Size

Data Analysis

Conclusion

Major Players

Bibliography

10

Page No.

ACKNOWLEDGEMENT

We are earnestly happy to present the Project Report on Online

Banking to Prof. Rama Deshmukhlecturer of our Management
Institute & Research center of Indian Education Society.
We must express our sincere thanks to Prof. (Dr.) Dinesh D.
Harsolekar- Director IES and Prof. PrakashJagdaleprogram chairman
&H.O.D. of part time course of management 2010-13.
We would also thank our Institution and our faculty members,
computer lab team, library team & specially program coordinator Ms
Vidya without whom this project would have been a distant reality. We
also extend our heartfelt thanks to our well wishers.

Thanking You

Introduction to Online Banking

7
Introduction to Online Banking. Online banking can be a confusing mix of options and banking
providers. These resources will help you choose a bank with online accounts (or a bank that
does business entirely online), and determine which services you need.

How to Open

a Joint Bank Account Online

How to Open a Business Bank Account Online

About Investing Online

About Investing Online

About Wachovia Online Banking

About Chase Online Banking

About Wells Fargo Online Banking

How to Send Money Using an Online Bank Account

About Personal Online Bank Loans

How Does Internet Banking Work?

Online Banking Advantages & Disadvantages

Ways to Pay Bills Online

Using an Online Bank Account

How to Earn More Interest With an Online Savings Account

9
About the Advantages of Online Banking

Introduction

Online Banking A Global Way to Bank!

Today we are in the era of globalisation. Multinational organisations worldwide

have adopted globalisation as their first strategic choice. Advancement in
technology has facilitated globalisation too. Same holds true for banking
industry. Technological advancement, changes and innovations have always
leveraged the standards of mankind. It has given new dimensions to society. It
has also altered the way services can be offered. Information Technology has
been a major driving force of economies worldwide during the last 2 decades. Its
impact has been readily felt in banking industry also. With the invention of
computer, operations and database management became quite handy. When
ARPANET project of Defence Academy of US began, a new technology was
born with the advent of internet. The two technological breakthroughs
computers and internet has radically changed the way world can interact and
business could be done. Metamorphosis and clubbing of these technologies
gave rise to the growth of ITeS (Information Technology enabled Services)
across the globe. There has been a marked improvement particularly in the area
of maintenance, storage, availability and transfer of data. The world has literally
shrunk to become a "global village". IT has played a crucial role in the financial
services. Internet has proved a magic wand for financial services and products,
banking in particular. Banking sector has been early adopter of technology to
offer latest modes for transacting business. Banks have transformed themselves
and are offering services through internet. From computerization to networking to
ATMs and now E-Banking, banks have moved up the value chain. This
phenomenon of offering services through internet is referred as internet banking.
The current article discusses internet banking in India and focuses upon key
challenges before banking industry.
Online banking systems in India and the features available with different banks across India. If
you look into the modern age of banking , online banks or net banking made things much easier
for the people and saves lot of time. The traditional way of standing in the queue and filling up
all the forms, now its no hassle for making any transaction with the banks. Every bank has their
own features and some banks still not having the more advanced features like transferring
money to any banks across India, easy registration for net banking, etc.

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 emphasised
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
Easy online applications for all accounts, including personal loans and mortgages
24 hour account access
Quality customer service with personal attention

Advantage of Internet Banking Facility

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 ones accounts at
anytime and from any location via the World Wide Web is a convenience unknown a short time
ago. Thus, a banks 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
Banks with Internet Banking
In the current scenario, every bank in India has the internet banking facility. Recently the banks
are extending their presence in rural areas to lure more customers and show them the
advantages of internet making by educating into the new system. This gives the countries entire
population to get the benefit of technology advancement. As I said, still it is evolving and not all
the banks provide very advanced features. In our article I will take few leading banks
and explain the features they are offering. Note that, the online banking can be for managing
your Savings Accounts, Credit Cards, Fixed Deposit, Insurance, etc. The following are the list of
banks and their online website address.

ICICI Net Banking

11

HDFC Net Banking

SBI Cards
LIC India
CitiBank Login

TOP 10 PLAYERS IN BANKING

List of Banks in India

RBI

ABN AMRO Bank

Andhra Bank

Axis Bank

Bank of Baroda

Bank Of India

Barclays Bank

Canara Bank

Central Bank of India

Citibank

Corporation Bank

Dena Bank

Deutsche Bank

GE Financial

HDFC

HSBC

ICICI

IDBI

Indiabulls Financial
Services

Indian Bank

Indian Overseas Bank

ING Vysya

Kotak Mahindra Bank LIC Housing Finance

Corporation

National Housing Bank

Oriental Bank of
Commerce

PNB

Punjab & Sind Bank

Reliance Money

SBI

Standard Chartered

Syndicate Bank

Union Bank of India

United Bank of India

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

INDIAN BANKS ON WEB

The banking industry in India is facing unprecedented competition from nontraditional 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.
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.
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, eliminate 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 it's
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

13
players who are struck with legacy cost basis, out of business-since they are unable
to bring to play in the new context.
MAIN CONCERNS IN INTERNET BANKING
In a survey conducted by the Online Banking Association, member institutions
rated security as the most important issue of online banking. There is a dual
requirement to protect customers' privacy and protect against fraud. Banking
Securely: Online Banking via the World Wide Web provides an overview of
Internet commerce and how one company handles secure banking for its financial
institution clients and their customers. Some basic information on the transmission
of confidential data is presented in Security and Encryption on the Web. PC
Magazine Online also offers a primer: How Encryption Works. A multi-layered
security architecture comprising firewalls, filtering routers, encryption and digital
certification ensures that your account information is protected from unauthorised
access:
Firewalls and filtering routers ensure that only the legitimate Internet users are
allowed to access the system.
Encryption techniques used by the bank (including the sophisticated public key
encryption) would ensure that privacy of data flowing between the browser and the
Infinity system is protected.
Digital certification procedures provide the assurance that the data you receive is
from the Infinity system.
STRATEGIES TO BE ADOPTED BY INDIAN BANKS
Internet banking would drive us into an age of creative destruction due to nonphysical exchange, complete transparency giving rise to perfectly electronic market
place and customer supremacy. The question to be asked right now is "What the
Indian Banks should do" Whatever is the strategy chosen and options adopted,
certain key parameters would determine the bank's success on web:
1. For long term success, a bank may follow:
Adopting a webs mindset
Catching on the first mover's advantage
Recognising the core competencies
Ability to deal multiplicity with simplicity
Senior Management initiative to transform the organisation from inward to
outward looking
Aligning roles and value propositions with the customer segments Redesigning
optimal channel portfolio
Acquiring new capabilities through strategic alliances.
2. The above can be implemented in four steps:
Familiarising the customer to new environment by demo version of software on

bank's web site. This should contain tour through the features which are to be
included. It will enable users to give suggestions for improvements, which can be
incorporated in later versions wherever feasible.
Second phase provides services such as account information and balances,
statement of account, transaction tracking, mail box, check book issue, stop
payment, financial and customised information.
The third phase may include additional services such as fund transfers, DD issue,
standing instructions, opening fixed deposits, intimation of loss of ATM cards.
The last step should include advanced corporate banking services like third party
payments, utility bill payments, establishment of L/Cs, Cash Management Services
etc. Enhanced plan for the customers in future can include requests for demand
drafts and pay orders and many more to bring in the ultimate in banking
convenience.
All the above strategies will help banks in translating their traditional business
model into an Internet one, falling into three main categories
One stop shop
Virtual one-stop-shop
Best of breed supplier.

SWOT ANALYSIS:
A SWOT Analysis is an effective tool which can be used to
examine the issues which will directly affect the success of
alternative delivery mechanisms. In our opinion, the SWOT

15

analysis is as follows:
Strengths:
Customer access to information 24 hours per day.
Timely access to information.
The ability to offer a customer more than one method of
retrieving information.
Sophisticated technology systems will help to make a banking
institute "future-proof."
Diversity helps capture different types of markets.
The ability to cut internal costs due to advanced technology.
Increased efficiency due to automation.
Increased accuracy of banking transactions.
Weaknesses:
High price of service.
Continual altering of customer wants and needs.
Hostile feelings of employees due to possible pending lay-offs
due to automation.
Multiple options for the customer.
Initial investment in technology will be expensive.
Opportunities:
The ability to obtain a larger customer base.
Global expansion. This is an enormous market, which will be a
great opportunity in the future.
The ability to take advantage of the growing popularity of
Internet banking.
Threats:
Continual changing technology.
Uncertainty of the banking industry.
Competition from "lower price" operations.
Possible failure of product due to non-acceptance of customer.
General competitiveness of the banking industry.

After reviewing this internal analysis, an aggressive strategy as

well as a diversification strategy is recommended. In other words,
according to the SWOT analysis, the retail banking industry
should diversity by adding this new technology. The results of the
focus groups and survey influence this decision.

1. What do you know about Online Banking?:

Well Informed/Much:

Enough/Little:

Nothing at all:

2.What

kind of transactions can you prefer to perform using online banking

(Rank from 5 to 1)
Review account history and transactions___
Transfer funds between accounts_____
Send customer service requests_____
View cleared checks,pay bills and more_____
3. What type of account(s) do you have with CCB?:
ON Shore/Local Account:

Off Shore Account:

Both:

4. How important would Online Banking be in your daily banking activities?:

Significant:

Infrequent:

Not at all:

4. Which online service you think is more user friendly:

Internet Banking:

Telephone Banking:

ATM Services:

5. Do you think that Internet Banking is convenient?:

Yes:

No:

Not Sure:

6. What type of Banking would you do over the Internet?:

Personal Banking:

Business Transactions:

Both:

7.How long does it take to open an account through online banking?

Week
Quarter
Month

17
8. Of our Internet Banking features which would you use most? Make as many selections as you
wish.:
Inter Account Funds Transfer:

Bill Payments from Savings/DDA:

Savings/DDA/Term Deposits/Loans:

Balance on

Stop and Hold Inquiries on Savings/DDA:

History:
9. Are you aware of our Telephone Banking Services?:
Yes:

Yes, but not sure how to use the service:

No:

10. How often have you used our Telephone Banking service?:
All the time:

Regularly:

Infrequently:

Not at all:

11. Do you know of our online 24hr ATM Services?:

Yes:

Yes, but not sure how to use the service:

No:

Not at all:

12. How often do you log on to our website?:

All the Time:

Regularly:

Infrequently:

Not at all:

13. Have you had difficulty logging onto the bank's website?:
All the time:

Regularly:

Infrequently:

Not at all:

14. Is the information on the website updated often enough?:

Yes:

No:

15. If you answered NO, what improvements would you suggest we make?:

16. Are the services being offered adequate?:

Yes:

No:

17. What other improvements would you like us to make?:

18.How many accounts can you view using online banking?

o Nationwide Bank checking

Transaction

o Saving, money market

o Certificate of deposits account.
19.what is your preferred mode of access to your account (rank 1 to3)
Wireless
Apple safari
Netscape
20What browser do you prefer to use online banking?
Apple safari
Netscape
MozillaFirefox
Microsoft Internet Explorer
21How long does it take to open an account through online banking?
Week
Quarter
Month
22what types of accounts will you transfer funds to and from?
Checking
Savings
Money market accounts
Demographic Questions:
23) Full Name
Online SurveysSurvey On Health Chec

*24) Gender

23) Age

*25) Anual Income

19

26) Profession

Banks and financial institutions in India are in the process of Web-enabling their services in
order to offer Internet banking to its customers. The RBI has drafted certain Internet
banking guidelines that have to be followed by banks about to venture into online banking.
Here's what banking CIOs need to do. bySoutiman Das Gupta
It's the new generation of banking in India. Most private and MNC banks have already setup
an elaborate Internet banking infrastructure. And this exercise has provided them numerous
benefits like:

Greater reach to customers

Quicker time to market
Ability to introduce new products and services quickly and successfully
Ability to understand its customers needs
Customers are given access to information easily across any location
Greater customer loyalty

Multi-national and private sector banks in India have been very successful in setting up
Internet banking services. This is mainly because these banks already had a robust
automated banking environment on which they could build the Internet banking
infrastructure. Most multi-national banks already have efficient Internet banking
infrastructures running in other countries which could be emulated in India. And the private
banks, which are relatively young, did not have to carry the burden of legacy systems. They
merely invested in best-of-breed Internet banking solutions from the start.
In a fix
Unfortunately nationalized banks have been unable to evolve as fast as most private sector
and MNC banks. As a result, in many organizations there may be a mix of automated
systems and manual systems, with both systems running parallel, and using half-baked
applications created by smaller vendors which run in certain departments. This creates a
chaotic scenario. Network management is a nightmare, the legacy systems may buckle any
moment, new users and locations keep coming up, and there are also issues of security and
consolidation.
This is a typical situation at a usual nationalized bank:

A very large network of branches nationwide growing fast

Lack of connectivity in remote locations
A very large base of customers increasing fast
75-80 percent automation in main branches with less automation in remote cities
and smaller branches
Large amount of legacy equipment which doesn't integrate well with other systems

Inefficient and outdated applications in some departments which are not flexible and
don't integrate well with other applications
Slow-to-change mentality of an Indian customer who is used to dealing with a
human teller

Web-enabling banks with such infrastructure and number of branches nationwide at one go
is a near-impossible task. However each of the challenges can be overcome with good
planning, phased implementation, and lots of grit on the part of the CIOs.
The RBI steps in
The Reserve Bank of India (RBI) has created a comprehensive document which lays down
number of security-related guidelines and strategies for banks to follow in order to offer
Internet banking. The guidelines broadly talk about the types of risks associated with
Internet banking, the technology and security standards, legal issues involved, and
regulatory and supervisory concerns. Any bank that wants to offer Internet banking must
follow these guidelines and adhere to them as a legal necessity.
VaidyanathanIyer, National Manager, eSecurity Business, Computer Associates provides
solutions to banks which can help them go online. He says, "the guidelines have been
created with a lot of thought regarding the banking scenario in India. It is at par with
international banking standards and is very comprehensive."
Background
The document broadly categorizes levels of Internet banking services into three types:

The basic level service in which the banks' websites disseminate information on
different products and services to customers. It may receive and reply to customers'
queries through e-mail.
Simple transactional websites which allow customers to submit their instructions,
applications for different services, and queries on their account balances. They do
not permit any fund-based transactions on their accounts.
The third level of Internet banking services offered by fully-transactional websites
which allow customers to operate on their accounts for transfer of funds, payment of
different bills, subscribing to other products of the bank, and to transact purchase
and sale of securities.

Internet banking
The document lays down some of the distinctive features of Internet banking. They are:

It removes the traditional geographical barriers as it could reach out to customers of

different countries/legal jurisdiction. This has raised the question of jurisdiction of
law/supervisory system to which such transactions should be subjected.
It has added a new dimension to different kinds of risks traditionally associated with
banking, heightening some of them and throwing new risk control challenges.
Security of banking transactions, validity of electronic contract, customers' privacy,
etc., which have all along been concerns of both bankers and supervisors have
assumed different dimensions given that Internet is a public domain, not subject to
control by any single authority or group of users.
It poses a strategic risk of loss of business to those banks who do not respond in
time to this new technology, being the efficient and cost effective delivery.

21
Securitythe key concern
It's evident from the document and from a general study of the business case of Internet
banking, that security is perhaps the biggest concern. Connectivity issues to remote
locations is also very important, but the need to be secure is far more pressing.
The document says that security issues include questions of adopting internationally
accepted state-of-the-art minimum technology standards for access control,
encryption/decryption (minimum key length), firewalls, verification of digital signature, and
Public Key Infrastructure (PKI).
Concerns in Chapter 5 and 6
The concerns and guidelines about security are discussed in detail in Chapter 5 and Chapter
6 of the report. The key components of security concerns are

Authentication: The assurance of identity of the person in a deal

Authorization: A party doing a transaction is authorized to do so
Privacy: The confidentiality of data and information relating to any deal
Data integrity: Assurance that the data has not been altered
Non-repudiation: A party to the deal cannot deny that it originated the
communication or data

If these areas are not addressed, the bank may suffer operational risk, reputational risk,
legal risk, money laundering risk, and strategic risk.
Chapter 6 of the report talks about technology and security standards for Internet banking.
It talks about TCP/IP, the OSI Layers, and application architectures. There are guidelines for
backup and recovery, list of the different types of attacks and the ways in which they can
compromise a system, like sniffer attacks, DoS, and e-mail bombs.
Authentication techniques like tokens, biometrics, and smart cards are described. The
concepts of firewalls, proxy servers, cryptography, digital signatures, certification, SSL, and
PKI are explained in detail. Security tools like scanners, sniffers, and IDSs are also
described. Physical security is talked about and followed by guidelines of a security policy
and a number of recommendations. The recommendations talk about access control,
isolation of application servers, security logs (audit trails), penetration testing, backup and
recovery practices, monitoring against threats, and education.
Comprehensiveness and Indian banks
The RBI guidelines are very exhaustive and extremely comprehensive. But are Indian banks
following the guidelines accordingly? Experts at Global E-Secure Limited, a security solutions
company say that none of the Indian banks which offer Internet banking facilities have an
IT security policy as stipulated by the RBI. While banks have been asked to file monthly
reports to show compliance to the guidelines, most of them have sought time to satisfy the
security policy criterion.
The RBI is insisting on a written document, signed by the Board of Directors to make the
banks aware that IT security is not just an IT concern, but something that could affect
overall business as well.
The company also says that while these banks do have security measures, there is no clearcut program which incorporates all the aspects of a comprehensive security policy. Also,

some banks do not have straight-through processing. There is manual intervention, which
poses a great security risk for the customer. In order to fill such gaps, the security policy
guidelines clearly lay out the areas which should be looked into. To provide a further check,
the RBI is also empowered to audit the compliance to the policy.
Rajeev Wadhwa, COO, Global E-Secure Limited says, "Following the release of its guideline,
the RBI will also come out with a policy on similar lines. Hence, it's imperative that banks
immediately act upon the same. The RBI has asked I-banking and e-trading banks to
perform ethical hacking of their servers and submit their reports. Since there is no proper
ethical hacking policy and methodology published in the IT-Act nor by the RBI, these
banking organizations have to depend on only security specialists who have the Service
Level Agreement (SLA) and a procedure in place."
A practical approach
IDBI Bank has successfully implemented a robust Internet banking architecture for its
customers. NeerajBhai, the CTO of the bank says, "RBI guidelines are stringent, but not
very difficult to implement if one goes about in a systematic fashion. The rule which
stipulates that the bank must have a client-level certificate, is somewhat difficult and
expensive to implement in a retail banking scenario. The guidelines also prescribe certain
functions be authorized at the Board level. This provision has potential to introduce delays
in deployment."
"It is not important to look at which policy is to be applied first. One has to take a holistic
view. Certain prescriptions of the RBI, like having an information security policy, are general
in nature and not specific to Internet banking. If an organization is alive to such issues even
before launching Internet banking, things become simpler. It should be viewed as a crossfunctional project and managed in a controlled fashion. Many banks make the mistake of
believing that all their customers would be interested in Internet banking and therefore start
enabling the service to all their customers. In reality most of such 'enabled' customers do
not access the service and the banks end up loading their systems unnecessarily and
spending big sums on sending PIN mailers."
"Like any other product or service, Internet banking is not a one-time activity. The bank has
to persuade its customers to use the service to achieve cost advantage. Since many
customers do not use Internet banking, the bank has to enrich its services by additional
payment tie-ups so that customers have more options. In this case, data security needs to
be very thorough."

Concluding PartConclusion
Online-banking has become a necessary survival weapon and is fundamentally
changing the banking industry worldwide. To day, the click of the mouse offers
customers banking services at a much lower cost and also empowers them with
unprecedented freedom in choosing vendors for their financial service needs. No
country today has a choice-

23
whether to implement online-banking or not given the global and competitive nature of
the economy. Banks have to upgrade and constantly think of new innovative
customized packages and services to remain competitive. The invasion of banking by
technology has created an information age and commoditization of banking services.
Banks have come to realize that survival in the new e-economy depends on delivering
some or all of their banking services on the Internet while continuing to support their
traditional infrastructure. The rise of online-banking is redefining business relationships
and the most successful banks will be those that can truly strengthen their relationship
with their customers. Without any doubt, the international scope of E banking provides
new growth perspectives and Internet business is a catalyst for new technologies and
newbusiness processes. With rapid advances in telecommunication systems and digital
technology, Online-banking has become a strategic weapon for banks to remain
profitable. It has been transformed beyond what anyone could have foreseen 25 years
ago. However, banks are uncertain about the regulatory framework for conducting
online-business and the regulatory and taxation issues for governing cyberspace
presents formidable problems. Developing such a system is not easy as the Internet is
not organized geographically and it is almost meaningless to refer to a website as
national or local. Any successful attempt at governing cyberspace will involve significant
international cooperation. Tax issues are being dealt with through O.E.C.D codes along
with intergovernmental cooperation. The Indian experience of online-banking is
gradually merging with its international counterparts. While the private sector and
foreign banks have been fast in adopting Internet technology in client servicing, there is
a gradual trend for the major public sectors and numerous cooperative units to move in
the same direction. A mix of policy support and security assurance should propel further
Online-banking adoption in India.

Bibliography
Websites
www.rbi.org.in

www.sans.org
www.technologyforfinance.com
www.bankersonline.com

www.indianinfoline.com
www.banknetindia.com
www.checkfreeseries.com
www.icici.com
www.equitymaster.com
www.siliconindia.com
www.laws4india.com
www.expresscomputeronline.com

Books
E-banking Global Perspectives ICFAI (Banking Series)By: Vivek Gupta
Internet Banking The Second Wave by Sanjiv Singh