Internet Banking Advantages MBA Project

INTERNET BANKING BENKEFITS AND
CHALLENGES IN AN EMERGING ECONMY

INTRODUCTION:Banking is the lifeline of an economy. The present and future of any economy depends upon the
success and development of banking. The objective cant be achieved with the traditional
banking as now is the age of technology. Indian banking industry, today, is in the midst of an IT
(Information Technology) revolution. The competition among the banks has led to the increasing
total banking automation in the Indian banking industry. Finland was the first country in the
world to have taken a lead in E-banking. In India, it was ICICI bank which initiated E-banking as
early as 1997 under the brand name Infinity. Electronic banking is defined as Delivery of banks
services to a customer at his office or home by using Electronic technology can be termed as
Electronic Banking. Businesses rely on efficient and rapid access to banking information for
cash flow reviews, auditing and daily financial transaction processing. E-banking offers ease of
access, secure transactions and 24-hour banking options. From small start-up companies to more
established entities, small businesses rely on e-banking to eliminate runs to the bank and to make
financial decisions with updated information. In an information-driven business climate,
companies who do not use e-banking are at a competitive disadvantage.
Banking is considering for safety of money as well as quality of services to customers it provide
safety and guarantee of funds that no theft has stolen your money from bank if it happen than
whole amount is given back by bank it also provide facility to run their business smoothly and
fearlessly. One of the service that bank provide are electronic fund transfer (EFT ) and electronic
data interchange (EDI) which were invented in the late 1970s and these technologies allows
enterprises, organizations etc., to send commercial documents like purchase orders or invoices
electronically then faster growth and acceptance of credit cards ,Automated Teller Machines
(ATM) and telephone banking in the 1980s are also important forms of electronic banking
.online shopping was invented by ,and Michel Aldrich in the UK in 1979. General motors, Ford
and Nissan in 1980 used Aldrich system this system used the swathed public telephone network
in dial up and leased line modes. there is no broadband capability after 1990 electronic bank
included Enterprise Resource Planning systems (ERP),data mining and data ware housing .
(www) world wide web was intend by Tim Berners lee in 1990 after that in 1994 online
shopping get started and payment thru e banking made successful in the year 2000 American and
European organizations offered their services through the world wide web they used internet and
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secure protocols and electronic payment services need security on online transactions as hackers
attempted to hack the password as well as control on the site. So researches as developers are
continuously do hard work for designing new algorithms for security purpose. e-banking
includes activities like payment of bills and invoices, transfer of funds between accounts,
applying for a loan, payment of loan installments, sending funds to third parties via emails or
internet connections regardless of where the client is located. In India, Internet banking both as a
medium of delivery of banking services and as a strategic tool for business development, has
gained wide acceptance internationally and is fast catching up with more and more banks
entering the fray. Initially, some of the banks permit customers to interact with them and transact
electronically with them. Such services include request for opening of accounts, requisition for
cheque books, stop payment of cheques, viewing and printing statements of accounts, movement
of funds between accounts within the same bank, querying on status of requests, instructions for
opening of Letters of Credit and Bank Guarantees etc. Security of e banking as well as mobile
banking is very important issue as the bank must have security defenses like encryption,
authorization, confidentiality, integrity, firewall etc., are already a part of bank security system
based on network which secures the data and information being transmitted from one system to
another computer system .some attacks like script attack, input validation attacks, DNS attack,
Eavesdrops, etc. ., threatens the security of e banking. Some type of attacks that generally notice
by researcher are passive attack , traffic analysis attack ,passive eaves dropping attack , active
attacks on wireless network, unauthorized access ,denial of service ,replay ,session hijacking
,man in middle attack ,rogue access point etc. Banking is undergoing speedy changes world-wide
and India is no omission. The financial sector reforms aimed at deregulation, liberalization and
globalization of Indian banking have altered the entire scenario of Indian banking. Added to this
is the IT revolution which has entirely affected the way of responsibility on banking business and
has considerably widened the range of products offered by banks. Electronic banking plays a
vital role in the economic development of a country. Due to immense advances of information
and communication technology (ICT), it certainly introduced new scope for the global E-banking
community. As India is taking giant leaps towards globalization, Internet banking is the sector to
be studied with great interest. In India, the leading private sector bank and the eminent banking
service providers, i.e. ICICI Bank Limited, changed its online banking service in 1996, followed
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by a host of other banks viz. HDFC, Axis, Citibank, Federal Bank, etc.
REVIEW OF LITERATURE
Avasthi & Sharma (2000-01) have analyzed in their study that advances in technology are set to
change the face of banking business. Technology has transformed the delivery channels by banks
in retail banking. It has also impacted the markets of banks. The study also explored the
challenges that banking industry and its regulator face.
Janki (2002) analyzed that how technology is affecting the employees productivity. There is no
doubt, in India particularly public sector banks will need to use technology to improve operating
efficiency and customer services. The focus on technology will increase like never before to add
value to customer services, develop new products, strengthen risk management etc. the study
concludes that technology is the only tool to achieve their goals.
Hua G. (2009) investigates the online banking acceptance in China by conducting an experiment
to investigate how users perception about online banking is affected by the perceived ease of use
of website and the privacy policy provided by the online banking website. The 110
undergraduate students in Chinese University are involved in the investigation. The study finds
that both perceived ease of use and privacy policy have a significant impact on users adoption of
online banking. The study also investigates relative importance of perceived ease of use, privacy,
and security. Perceived ease of use is of less importance than privacy and security. Security is the
most important factor influencing users adoption. The study also discusses the implications of
these results and limitations.
Jalan, B. (2003), IT revolution has brought about a fundamental transformation in banking
industry. Perhaps no other sector has been affected by advances in technology as much as
banking & finance. It has the most important factor for dealing with the intensifying competition
& the rapid proliferation of financial innovations.
Mittal, R.K. & Dhingra, S. (2007) studied the role of technology in banking sector. They
analyzed investment scenario in technology in Indian banks but this study was related to the time
period before the Information Technology Act and at that time technology in Indian banks was
very low. But both the researchers nicely presented their views.
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Padhy, K.C. (2007) studied the impact of technology development in the banking system and he
also highlights the future of banking sector. The core competencies will provide comparative
advantages.
Rao (2002) analyzed the impact of new technology on banking sector. The technology is
changing the way the business is done and opened new vistas for doing the same work
differently in most cost effective manner. Tele-banking and internet banking are making forays
such that branch banking may give to home banking. He provided some policies to protect their
profitability.
Shastri, R.V. (2000), studied the emergence of IT in banking sector. He highlighted some
challenges faced by banks regarding IT implementation. This paper also highlighted future
outlook of IT oriented banks.
Shetty, V.P. (2000), technology is dramatically altering the ways in which financial services are
delivered to consumers and continue to do so in future too. Electronic banking or the use of
computers and electronic technology as a substitute for traditional paper based transactions, is
here to stay.
Uppal, R.K. & Kaur, R. (2007) studied the impact of Information Technology on various
parameters of bank performance and concluded that Indian banking industry is fatly moving
towards IT. The future of e-channels is very bright.
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COMPANY PROFILE
OVERVIEWS:This growth can be attributed to banks shifting focus to client servicing. Public as well as private
sector banks are underlining the importance of technology infrastructure, in order to improve
customer experience and gain a competitive edge. Utilizing the popularity of internet and mobile
banking, banks are increasingly adopting an integrated approach for assetliability match, credit
and derivatives risk management. The growth in the Indian Banking Industry has been more
qualitative than quantitative and it is expected to remain the same in the coming years. Based on
the projections made in the "India Vision 2020" prepared by the Planning Commission and the
Draft 10th Plan, the report forecasts that the pace of expansion in the balance-sheets of banks is
likely to decelerate. The total assets of all scheduled commercial banks by end-March 2010 is
estimated at Rs 40, 90,000 crores. That will comprise about 65 per cent of GDP at current market
prices as compared to 67 per cent in 2002-03. Bank assets are expected to grow at an annual
composite rate of 13.4 per cent during the rest of the decade as against the growth rate of 16.7
per cent that existed between 1994-95 and 2002-03. It is expected that there will be large
additions to the capital base and reserves on the liability side.
The Indian Banking industry, which is governed by the Banking Regulation Act of India, 1949
can be broadly classified into two major categories, nonscheduled banks and scheduled banks.
Scheduled banks comprise commercial banks and the co-operative banks. In terms of ownership,
commercial banks can be further grouped into nationalized banks, the State Bank of India and its
group banks, regional rural banks and private sector banks (the old/ new domestic and foreign).
These banks have over 67,000 branches spread across the country. The Public Sector Banks
(PSBs), which are the base of the Banking sector in India account for more than 78 per cent of
the total banking industry assets. Unfortunately they are burdened with excessive Non
Performing assets (NPAs), massive manpower and lack of modern technology. On the other hand
the Private Sector Banks are making tremendous progress. They are leaders in Internet banking,
mobile banking, phone banking, ATMs. As far as foreign banks are concerned they are likely to
succeed in the Indian Banking Industry. In the Indian Banking Industry some of the Private
Sector Banks operating are IDBI Bank, ING Vyasa Bank, SBI Commercial and International
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Bank Ltd, Bank of Rajasthan Ltd. and banks from the Public Sector include Punjab National
bank, Vijaya Bank, UCO Bank, Oriental Bank, Allahabad Bank among others. ANZ Grind lays
Bank, ABN-AMRO Bank, American Express Bank Ltd, Citibank are some of the foreign banks
operating in the Indian Banking Industry. As far as the present scenario is concerned the Banking
Industry in India is going through a transitional phase. The first phase of financial reforms
resulted in the nationalization of 14 major banks in 1969 and resulted in a shift from Class
banking to Mass banking. This in turn resulted in a significant growth in the geographical
coverage of banks. Every bank had to earmark a minimum percentage of their loan portfolio to
sectors identified as priority sectors. The manufacturing sector also grew during the 1970s in
protected environs and the banking sector was a critical source. The next wave of reforms saw
the nationalization of 6 more commercial banks in 1980. Since then the number of scheduled
commercial banks increased four-fold and the number of bank branches increased eight-fold.
After the second phase of financial sector reforms and liberalization of the sector in the early
nineties, the Public Sector Banks (PSB) s found it extremely difficult to compete with the new
private sector banks and the foreign banks. The new private sector banks first made their
appearance after the guidelines permitting them were issued in January 1993. Eight new private
sector banks are presently in operation. These banks due to their late start have access to state-ofthe-art technology, which in turn helps them to save on manpower costs and provide better
services.
During the year 2000, the State Bank of India (SBI) and its 7 associates accounted for a 25
percent share in deposits and 28.1 percent share in credit. The 20 nationalized banks accounted
for 53.2 percent of the deposits and 47.5 percent of credit during the same period. The share of
foreign banks (numbering 42), regional rural banks and other scheduled commercial banks
accounted for 5.7 percent, 3.9 percent and 12.2 percent respectively in deposits and 8.41 percent,
3.14 percent and 12.85 percent respectively in credit during the year 2000.
Current Scenario:
The industry is currently in a transition phase. On the one hand, the PSBs, which are the
mainstay of the Indian Banking system, are in the process of shedding their flab in terms of
excessive manpower, excessive non-Performing Assets (NPAs) and excessive governmental
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equity, while on the other hand the private sector banks are consolidating themselves through
mergers and acquisitions. PSBs, which currently account for more than 78 percent of total
banking industry assets are saddled with NPAs (a mind-boggling Rs 830 billion in 2000), falling
revenues from traditional sources, lack of modern technology and a massive workforce while the
new private sector banks are forging ahead and rewriting the traditional banking business model
by way of their sheer innovation and service. The PSBs are of course currently working out
challenging strategies even as 20 percent of their massive employee strength has dwindled in the
wake of the successful Voluntary Retirement Schemes (VRS) schemes. The private players
however cannot match the PSBs great reach, great size and access to low cost deposits?
Therefore one of the means for them to combat the PSBs has been through the merger and
acquisition (M& A) route. Over the last two years, the industry has witnessed several such
instances. For instance, HDFC Banks merger with Times Bank ICICI Banks acquisition of ITC
Classic, Anagram Finance and Bank of Madura. Centurion Bank, Indusind Bank, Bank of
Punjab, Vysya Bank are said to be on the lookout. The UTI bank- Global Trust Bank merger
however opened a Pandoras box and brought about the realization that all was not well in the
functioning of many of the private sector banks. Private sector Banks have pioneered internet
banking, phone banking, anywhere banking, and mobile banking, debit cards, Automatic Teller
Machines (ATMs) and combined various other services and integrated them into the mainstream
banking arena, while the PSBs are still grappling with disgruntled employees in the aftermath of
successful VRS schemes. Also, following Indias commitment to the W To agreement in respect
of the services sector, foreign banks, including both new and the existing ones, have been
permitted to open up to 12 branches a year with effect from 1998-99 as against the earlier
stipulation of 8 branches. Talks of government diluting their equity from 51 percent to 33 percent
in November 2000 has also opened up a new opportunity for the takeover of even the PSBs. The
FDI rules being more rationalized in Q1FY02 may also pave the way for foreign banks taking
the M& A route to acquire willing Indian partners. Meanwhile the economic and corporate sector
slowdown has led to an increasing number of banks focusing on the retail segment. Many of
them are also entering the new vistas of Insurance. Banks with their phenomenal reach and a
regular interface with the retail investor are the best placed to enter into the insurance sector.
Banks in India have been allowed to provide fee-based insurance services without risk
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participation invest in an insurance company for providing infrastructure and services support
and set up of a separate joint venture insurance company with risk participation.
HISTORY:The modern home online banking services were the distance banking services over electronic
media from the early 1980s. The term 'Online' became popular in the late '80s and referred to the
use of a terminal, keyboard and TV (or monitor) to access the banking system using a phone line.
'Home banking' can also refer to the use of a numeric keypad to send tones down a phone line
with instructions to the bank. Online services started in New York in 1981 when four of the city's
major banks (Citibank, Chase Manhattan, Chemical and Manufacturers Hanover) offered home
banking services, using the videotext system. Because of the commercial failure of videotext
these banking services never became popular except in France where the use of videotext
(Mintel) was subsidized by the telecom provider and the UK, where the Prestel system was used.
When the clicks-and-bricks euphoria hit in the late 1990s, many banks began to view Web-based
banking as a strategic imperative. The attraction of banks to online banking are fairly obvious:
diminished transaction costs, easier integration of services, interactive marketing capabilities,
and other benefits that boost customer lists and profit margins. Additionally, Web banking
services allow institutions to bundle more services into single packages, thereby luring customers
and minimizing overhead.
While financial institutions took steps to implement e-banking services in the mid-1990s, many
consumers were hesitant to conduct monetary transactions over the web. It took widespread
adoption of electronic commerce, based on trailblazing companies such as America Online,
Amazon.com and eBay, to make the idea of paying for items online widespread. By 2000, 80
percent of U.S. banks offered e-banking. Customer use grew slowly. At Bank of America, for
example, it took 10 years to acquire 2 million e-banking customers. However, a significant
cultural change took place after the Y2K scare ended. In 2001, Bank of America became the first
bank to top 3 million online banking customers, more than 20 percent of its customer base. In
comparison, larger national institutions, such as Citigroup claimed 2.2 million online
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relationships globally, while J.P. Morgan Chase estimated it had more than 750,000 online
banking customers. Wells Fargo had 2.5 million online banking customers, including small
businesses. Online customers proved more loyal and profitable than regular customers. In
October 2001, Bank of America customers executed a record 3.1 million electronic bill
payments, totaling more than $1 billion. In 2009, a report by Gartner Group estimated that 47
percent of U.S. adults and 30 percent in the United Kingdom bank online.
The UK's first home online banking services known as Home link was set up by Bank of
Scotland for customers of the Nottingham Building Society (NBS) in 1983. The system used was
based on the UK's Prestel view link system and used a computer, such as the BBC Micro, or
keyboard (Tan data Td1400) connected to the telephone system and television set. The system
allowed on-line viewing of statements, bank transfers and bill payments. In order to make bank
transfers and bill payments, a written instruction giving details of the intended recipient had to be
sent to the NBS who set the details up on the Home link system. Typical recipients were gas,
electricity and telephone companies and accounts with other banks. Details of payments to be
made were input into the NBS system by the account holder via Prestel. A cheque was then sent
by NBS to the payee and an advice giving details of the payment was sent to the account holder.
BACS was later used to transfer the payment directly. Stanford Federal Credit Union was the
first financial institution to offer online internet banking services to all of its members in October
1994.
In India:First Bank- ICICI Bank
Year- 1998
In India e-banking is of fairly recent origin. The traditional model for banking has been through
branch banking. Only in the early 1990s there has been start of non-branch banking services. The
good old manual systems on which Indian Banking depended upon for centuries seem to have no
place today. The credit of launching internet banking in India goes to ICICI Bank. Citibank and
HDFC Bank followed with internet banking services in 1999. Several initiatives have been taken
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banking in India. The Government of India enacted the IT Act, 2000 with effect from October
17, 2000 which provided legal recognition to electronic transactions and other means of
electronic commerce. The Reserve Bank is monitoring and reviewing the legal and other
requirements of e-banking on a continuous basis to ensure that e-banking would develop on
sound lines and e-banking related challenges would not pose a threat to financial stability.
E- BANKING:-
A system allowing individuals to perform banking activities at home, via the internet. Some
online banks are traditional banks which also offer online banking, while others are online only
and have no physical presence. Online banking through traditional banks enable customers to
perform all routine transactions, such as account transfers, balance inquiries, bill payments, and
stop-payment requests, and some even offer online loan and credit card applications. Account
information can be accessed anytime, day or night, and can be done from anywhere. A few
online banks update information in real-time, while others do it daily. Once information has been
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entered, it doesn't need to be re-entered for similar subsequent checks, and future payments can
be scheduled to occur automatically. Many banks allow for file transfer between their program
and popular accounting software packages, to simplify record keeping. Despite the advantages,
there are a few drawbacks. It does take some time to set up and get used to an online account.
Also, some banks only offer online banking in a limited area. In addition, when an account
holder pays online, he/she may have to put in a check request as much as two weeks before the
payment is due, but the bank may withdraw the money from the account the day that request is
received, meaning the person has lost up to two weeks of interest on that payment. Online-only
banks have a few additional drawbacks: an account holder has to mail in deposits (other than
direct deposits), and some services that traditional banks offer are difficult or impossible for
online-only banks to offer, such as traveler's checks and cashier's checks.
How it works/Example:
Most banks offer customers the option of online banking. Customers are able to access to all
of their accounts through an internet connection using the banks own website or a
commercial software package such as Quicken or Money.
Online banking allows customers to monitor accounts, download transactions, transfer funds
between accounts, including checking, saving, and money market/CD accounts, management
investments, and handle loan activity, including applications and repayments. Clients can
transfer funds to their bank accounts, and pay bills either electronically (with an account
transfer) or by having the bank issue paper checks directly to the payee.
Banks have set up security systems to ensure that transactions conducted online are protected
from internet security threats. Most banks use an industry-standard Secure Transaction
software and protocol to manage the security on their systems.
Evolution of e-banking:
E-banking came into being in UK and USA in 1920s. It became prominently popular
during.1960s through electronic funds transfers and credit cards. The concept of web-based
banking came into existence in Europe and USA in the beginning of 1980s. It has been estimated
that around 40 percent of banking transaction would be done through Net. The story of
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technology in banking started with the use of punched card machines like Accounting Machines
or Ledger Posting Machines. The use of technology, at that time, was limited to keeping books of
the bank. It further developed with the birth of online real time system and vast improvement in
telecommunications during late1970s and 1980s.it resulted in a revolution in the field of
banking with convenience banking as a buzzword. Through Convenience banking, the bank is
carried to the doorstep of the customer. The 1990s saw the birth of distributed computing
technologies and Relational Database Management System. The banking industry was simply
waiting for these technologies. Now with distribution technologies, one could configure
dedicated machines called front-end machines for customer service and risk control while
communication in the batch mode without hampering the response time on the front-end
machine. Intense competition has forced banks to rethink the way they operated their business.
They had to reinvent and improve their products and services to make them more beneficial and
cost effective. Technology in the form of E-banking has made it possible to find alternate
banking practices at lower costs.
BENEFITS OF E-BANKING
1. Time saving: Online banking, undoubtedly, saves time by allowing direct transaction
from office, home or any place. The medium relieves from visiting the bank and waiting
in a queue and provides a mental and physical relief from the unwanted rushes in the
bank.
2. Convenience: The biggest advantage that online banking brings to the table is its
convenience. We can pay phone and electricity bills via online banking without rushing to
the utility company's bill collection outlets. It helps you avoid delayed payments.
3. 24x7 services: Online banking transactions can be performed at any time and from
anywhere.
4. Eco-friendly Process: Online banking is an eco-friendly process as it does not consume
volumes
of paper like conventional banking modes and hence helps protect the
environment.
5. Easy Access: To perform online banking tasks, all you need is a basic computer system
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connected to the Web.
6. Faster Banking: Online banking is a faster way of performing banking functions. Whether
you buy goods online, pay bills or transfer money, it gets done in real time and within
moments.
7. Cost Saving: The process is very cost-effective. It rids businesses of the practice of
deputing people to specially pay company bills, who waste hours making the rounds of
the banks to perform all the firm's banking-related functions.
8. Other Benefits: Online banking has several other benefits. Users can shop online, buy
tickets, make advanced bookings, etc. Banking services processing and introduction of an
easy maintenance tools for managing customers money.
ADVANTAGES OF ELECTRONIC BANKING:1. Now it is also called on line or home banking electronic banking was stared with the use
of proprietary software. Following are the important advantages of electronic banking:
2. Paper Work Reduced: - The traditional procedure of banking is manual and paper based.
Electronic banking is gradually replacing the paper transactions in the banks which has
reduced the paper work.
3. Easy Transactions:-Electronic banking has reduced the problems of the customers like
writing cheques, filing taxes, and transforming of cash. Now in ATM facility there is no
need of cheque book.
4. Security: - Electronic banking provides the safe system of payment. Now transactions are
made in the accounts through internet.
5. Saving Of Time:-Electronic banking has saved the time and money of the customers and
also the bank. Now burden of work on bank employees has been also reduced. Were hired
at higher wages, so operating cost was very high. Now by using electronic banking the
number of employees has been reduced.
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6. Reduction in Cost:-In case of manual banking, large numbers of employees were hired at
higher wages, so operating cost was very high. Now by using electronic banking the
number of employees has been reduced.
7. Market Expanded:-Due to electronic banking, national international market of various
goods and services has been expanded. Now we can purchases and make payment in any
place in the world.
8. Increase in Customers:-As the banking industry is expanding due the modern facilities, it
is attracting more and more customers. So numbers of customers are increasing day by
day.
9. Branches Reduced:-Now there is no need to open the branches on every place in the city
because due to electronic banking facilities, there is no rush of customers in the banks.
Because there is no need to visit the bank physically. So heavy cost of opening the new
branches has been reduced and facilities are provided at low cost.
10. Checking Of Account:-Every customer can check his balance of account sitting at home
and makes the payments without traveling. It saves his time and expenses.
11. Utility Bills Payment:-Bills, like telephone, gas, electricity and water can be easily paid
to the concerned departments without going to the bank physically. Even he is sitting in
any other country, he can make the payment.
12. Transferring of Money:-There is no need of writing the deposit slip cheques and drafts.
By using the electronic banking money can be transferred easily.
13. CREDIT CARDS:-It is also very important facility for the customers that he can purchase
the goods and ca make the payment by using the CREDIT CARDS.
The main advantages of e-banking for corporate customers are as follows (Bank Away!
2001; Gurus, 2002):
Reduced costs in accessing and using the banking services.
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Increased comfort and timesaving - transactions can be made 24 hours a day, without
requiring the physical interaction with the bank.
Quick and continuous access to information- Corporations will have easier access to
information as, they can check on multiple accounts at the click of a button.
Better cash management- E-banking facilities speed up cash cycle and increases
efficiency of business processes as large variety of cash management instruments are
available on Internet sites of Estonian banks.
For example, it is possible to manage companys short-term cash via Internet banks in Estonia
(investments in over-night, short- and long term deposits, in commercial papers, in bonds and
equities, in money market funds).
Reduced costs- This is in terms of the cost of availing and using the various banking
products and services.
Convenience- All the banking transactions can be performed from the comfort of the
home or office or from the place a customer wants to.
Speed - The response of the medium is very fast; therefore customers can actually wait
till the last minute before concluding a fund transfer.
Funds management- Customers can download their history of different accounts and do a
what-if analysis on their own PC before affecting any transaction on the web. This will
lead to better funds management.
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Disadvantages
The low overhead of online-only banks allows them to offer customers higher-than-normal
yields on checking accounts, savings accounts, money market accounts and certificates of
deposit (CDs). Thats the primary reason why people choose to move some or all of their
banking online. These high yields, however, require sacrifices in some areas. Here are some of
the downsides to online-only banking:
ATM Transaction Fees
Not having a brick-and-mortar bank often means not having free ATMs you can use.
Consequently, you can rack up a fortune in ATM fees for frequent withdrawals. Some onlineonly banks do offer access to a network of affiliated ATMs, however. ING Direct (Stock Quote:
ING), for example, allows account holders to use the All point ATM network, which includes
32,000 ATMs. You may also be able to have some or all of your ATM fees credited back to your
account with some banks. This is not the case with all online-only banks, however. One way to
work around this problem is to get cash-back on purchases from grocery and drugstores and
avoid the ATM as much as possible.
Technical Difficulties
Online banking offers a lot in the realm of technical convenience, but having all of your banking
online also exposes you to the possibility that there could be technical difficulties that get in your
way. Its possible (though unlikely) for an online bank system to crash or become unavailable
temporarily. More likely, you could have trouble accessing the Internet due to computer
difficulties or Internet service interruption on your end. This could complicate accessing your
money at a crucial moment. With a brick-and-mortar bank, youd have the option of visiting the
branch if time was of the essence.
Slower Deposits and Money Transfers
Depositing a paper check or money order into an online-only account can take several days.
Most online-only banks only take deposits by snail mail, so it takes time for checks to arrive.
Alternatively, you can make deposits at a brick-and-mortar bank and transfer the funds, but that
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too takes time. Money transfers between online and traditional banks can take days to clear.
Check deposits at a brick-and-mortar bank also take time to clear, but typically you have access
to a portion of those funds while you wait.
Worse Customer Service
Part of the overhead that online-only banks save is in manpower. Consequently, you may get a
bit of a runaround through an automated phone system if you call for help. This is often the case
with traditional banks as well. With traditional banks, however, you can visit a live person at the
branch for help. You may even have formed a relationship with the people at your bank or credit
union, which can prove useful.
Vulnerability to Phishing Scams
In general, you dont have to worry about hackers stealing your identity through your online
bank account because banks use sophisticated encryption technology. Online banking of any
kind, however, exposes you to some security risk from phishing scams. These scams use phony
emails to direct you to dummy sites usually to get your login information. You can avoid this
hazard by never clicking on links in emails from your bank and approaching such emails with
skepticism.
Setting up an account 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. Some banks even ask for
photos
Legal issues: If you and your spouse wish to view and manage your 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 difficulties: Banking sites can be difficult to navigate at first. Getting acquitted with
the banking sites software may require some time to read the tutorials in order to become
comfortable in your virtual lobby.
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Site changes and upgrades: 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.
Customer service: There is no personal contact with any of the staff, and if talk to any staff
through the telephone, you have guarantee you are talking to the best person available
Internet account: You need to get an account with an Internet Service Provider (ISP) which may
be another hectic experience
Security concern: Even though online banking sites are heavily encrypted, with the developing
technology, its hard to rule out the "hackers" who may access your bank accounts
Switching banks: This can be more cumbersome online than in person
Money usage: You cant spend your money from the online bank account as you wish, in the
end; you will need to go to an ATM to withdraw money for usage.
Technical breakdowns: As with all technologies, online banking websites sometimes go down.
If this happen when you closed your local bank or CREDIT CARD accounts, you will definitely
go penniless.
However, even though online banking has some disadvantages, the advantages with no doubt
outweigh. It is there for important for everyone to prepare for the unknown with an online bank
account
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CHALLENGES IN E-BANKING
The information technology in itself is not a solution and it has to be effectively utilized. The
concept of e-banking cannot work unless and until have a centralized body or institution, which
can formulate guidelines, regulate, and monitor effectively the functioning of Internet banking.
The most important requirement for the successful working of Internet banking is the adoption of
the best security methods. This presupposes the existence of a uniform and the best available
technological devices and methods to protect electronic banking transactions. In order for
computerization to take care of the emerging needs, the recommendations of the Committee on
Technology Up gradation in the Banking Sector (1999) may be considered. These are:
(1) Need for standardization of hardware, operating systems, system software, and
application software to facilitate interconnectivity of systems across branches
(2) Need for high levels of security
(3) Communication and networking - use of networks which would facilitate centralized
databases and distributed processing
(4) Technology plan with periodical up gradation
DR.MOHD ASHRAF ALI, AZAM MALIK, ASHRAF IMAM
(5) Business process re-engineering
(6) Address the issue of human relations in a computerized environment
(7) Sharing of technology experiences
(8) Payment systems which use information technology tools. The Reserve Bank of India has
played a lead role in this sphere of activity - with the introduction of cheque clearing using
the MICR (Magnetic Ink Character Recognition) technology in the late eighties.
The Reserve Bank of India constituted a "Working Group on Internet Banking" which
focused on three major areas of E-Banking.
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(i) Technology and security issues
(ii) Legal issues
(iii) Regulatory and supervisory issues
These areas are selected in such a manner that the problems faced by banks and their
customers can be minimized to the maximum possible extent. The Group recommended
certain guidelines for the smooth and proper working of Internet banking. These
centralized guidelines would bring uniformity in the selection and adoption of security
measures, with special emphasis on a uniform procedure. The security of Internet
banking transactions would not be endangered if these security mechanisms are adopted.
This is because the success of Internet banking ultimately depends upon a uniform,
secure and safe technological base, with the most advanced features. The RBI has
accepted the recommendations of the Group, to be implemented in a phased manner.
The RBI has issued the following guidelines through a Circular for implementation by banks in
this regard:
(i) Technology and Security Issues: The technology and security issues are of prime importance
as the entire base of Internet banking rests on it. If the technology and security standards are
inadequate, then Internet banking will not provide the desired results and will collapse
ultimately. The RBI realizing this crucial requirement issued the following guidelines in this
regard:
a. Banks should designate a network and database administrator with clearly defined roles.
b. Banks should have a security policy duly approved by the Board of Directors. There
should be a segregation of duty of Security Officer / Group dealing exclusively with
information systems security and Information Technology Division, which actually
implements the computer systems. Further, Information Systems Auditor will audit the
information systems.
c. Banks should introduce logical access controls to data, systems, application software,
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utilities, and telecommunication lines, libraries, system software, etc. Logical access
control techniques may include user-ids, passwords, and smart cards or other biometric
technologies.
d. At the minimum, banks should use the proxy server type of firewall so that there is no
direct connection between the Internet and the bank's system.
e. All the systems supporting dial up services through modem on the same LAN as the
application server should be isolated to prevent intrusions into the network as this may
bypass the proxy server.
f. All computer accesses, including messages received, should be logged. Security violations
(suspected or attempted) should be reported and follow up action taken should be kept in
mind while framing future policy.
g. All applications of banks should have proper record keeping facilities for legal purposes. It
may be necessary to keep all received and sent messages both in encrypted and decrypted
form.
E-COMMERCE BENEFITS AND CHALLENGES IN INDIAN BANKING SECTOR
(ii) Legal Issues: The adoption and switch over to Internet banking will also raise certain legal
issues and disputes in the future which have to be anticipated and remedial measures for the
same need to be adopted. Further, these issues should also be compatible with the existing laws,
particularly the Information Technology Act, 2000. The RBI, keeping in mind these factors, has
issued the following guideline
a. There is an obligation on the part of banks not only to establish the identity but also to
make enquiries about integrity and reputation of the prospective customer. Therefore,
even though request for opening account can be accepted over Internet, accounts should
be opened only after proper introduction and physical verification of the identity of the
customer.
b. Security procedure adopted by banks for authenticating users needs to be recognized by
law as a substitute for signature. In India, the Information Technology Act, 2000,
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provides for a particular technology as a means of authenticating electronic record.
c. Under the present regime there is an obligation on banks to maintain secrecy and
confidentiality of customers' accounts. In the Internet banking scenario, the risk of banks
not meeting the above obligation is high on account of several factors. Despite all
reasonable precautions, banks may be exposed to enhanced risk of liability to customers
on account of breach of secrecy, denial of service etc., because of hacking/ other
technological failures.
d. In Internet banking scenario there is very little scope for the banks to act on stop-payment
instructions from the customers. Hence, banks should clearly notify to the customers the
timeframe and the circumstances in which any stop-payment instructions could be
accepted.
e. The Consumer Protection Act, 1986 defines the rights of consumers in India and is
applicable to banking services as well. Currently, the rights and liabilities of customers
availing of Internet banking services are being determined by bilateral agreements
between the banks and customers
(iii) Regulatory and Supervisory Issues: The banks operating in real space are regulated and
supervised by the RBI on regular basis. This regulation and supervision is required to be
extended to Internet banking as well. Thus, the RBI has issued the following guidelines in this
regard:
a. Only such banks which are licensed and supervised in India and have a physical presence
in India will be permitted to offer Internet banking products to residents of India. Thus,
both banks and virtual banks incorporated outside the country and having no physical
presence in India will not, for the present, be permitted to offer Internet banking services
to Indian residents.
b. The products should be restricted to account holders only and should not be offered in
other jurisdictions.
c. The services should only include local currency products.
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d. Overseas branches of Indian banks will be permitted to offer Internet banking services to
their overseas customers subject to their satisfying, in addition to the host supervisor, the
home supervisor.
Current Status of Financial Innovations in Indian Banking Sector
Today banking is known as innovative banking. Information technology has given rise to new
innovations in the product designing and their delivery in the banking and finance industries.
Customer services and customer satisfaction are their prime work. Current banking sector has
come up with a lot of initiatives that oriented to providing a better customer services with the
help of new technologies. Banking through internet has emerged as a strategic resource for
achieving higher efficiency, control of operations and reduction of cost by replacing paper based
and labour intensive methods with automated processes thus leading to higher productivity and
profitability. Financial innovation associated with technological change totally changed the
banking philosophy and that is further tuned by the competition in the banking industry.
Challenging business environment within the banking system create more innovation in the
fields of product, process and market. A study on the Internet users, conducted by Internet and
Mobile Association of India (IAMAI), found that about 23% of the online users prefer Internet
Banking as the banking channel in India, second to ATM which is preferred by 53%. Out of the
6,365 Internet users sampled, 35% use online banking channels in India. Plastic money is the
alternative to the cash or standard money. It is convenient to carry. The various Plastic
money/cards include ATM cards, Debit Card, ATM cum Debit Card, Credit Card. Plastic money
was a delicious gift to Indian market. Now several new features added to plastic money to make
it more attractive. Credit card is a financial instrument, which can be used more than once to
borrow money or buy products and services on credit. Banks, retail stores and other businesses
generally issue these. On the basis of their credit limit, they are of different kinds like classic,
gold or silver. The electronic payment systems such as Electronic Clearing Service (ECS) credit
and debit, National Electronic Fund Transfer (NEFT) for retail transactions and Real Time Gross
Settlement (RTGS) for large value, improved the speed of financial transactions, across the
country. The introduction of ATMs in banks has transformed banking by providing banking
services ANY TIME &ANYWHERE, ANYBANK to the customer. The customer is saved the
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risk or bother of carrying hard cash or travelers cheque while travelling. It has also given cost
savings to banks. Entry of ATMs has changed the profile of front offices in bank branches.
Customers no longer need to visit branches for their day to day banking transactions like cash
deposits, withdrawals, cheque collection, balance enquiry etc. Off-site ATMs has more
significance than on-site ATMs for banking penetration. Off-site ATMs play an important role by
providing the basic banking services like cash withdrawal, transfer of funds even without the
presence of full-fledged brick-and-mortar branches. During 2011- 12, there was an addition of
14,365 new off-site ATMs. However, metropolitan areas accounted for the maximum number of
newly opened ATMs. Southern region had maximum number of newly opened ATMs, followed
by northern region. However, the share of rural areas in the total number of ATMs continued to
remain small. The details of share of Population Groups in Increment of ATMs and the share of
Regions to total number of new ATMs opened are shown by ATMs.
Others Challenges in E-Banking
The ability to adopt global technology to local requirements: An adequate level of
infrastructure and human capacity building are required before developing countries can
adopt the global technology for their local requirements. For example, the review of the
migration plan of Society for Worldwide Interbank Financial Telecommunications
(SWIFT) to the internet shows that to date full migration has not occurred in many
developing countries due to the lack of adequate infrastructure, working capital, and
required technical expertise. Internet Banking- Benefits and Challenges in an Emerging
Economy 23 Broadly accepted e-payment systems are another such example. Many
corporate and consumers in some developing countries either do not trust or do not have
access to the necessary infrastructure to be able to process e-payments.
The ability to strengthen public support for e-finance: Historically, most e-finance
initiatives in developing countries have been the result of cooperative efforts between the
private and public sectors. For example, Singapores successful Trade Net system was a
government-sponsored project. If the public sector does not have the necessary means to
implement the projects it is essential that cooperative efforts between public and private
sectors, along with the multilateral agencies like the World Bank, be developed to
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facilitate public support for e- finance related initiatives.
Confidentiality, integrity and authentication are very important features of the banking
sector and were very successfully managed the world over in pre-internet times.
Communication across an open and thus insecure channel such as the internet might not
be the best base for bank-client relations as trust might partially be lost [Gretchen 2001].
E-Banking has created many new challenges for bank management and regulatory and
supervisory authorities. They originate not just from increased potential for cross border
transactions but also for domestic transactions based on technology applications which
raise many security related issues [Hawkins 2002]. The Basel Committee on Banking
Supervisions Electronic Banking Group (EBG) (2001) has defined risk management
principles for electronic banking. They primarily focus on how to extend, adapt, and
tailor the existing risk-management framework to the electronic banking setting. It is
necessary to know whether the efforts undertaken by the RBI are sufficient to ensure a
reasonable level of security.
Fifth, there are some serious implications of international e-banking. It is a common
argument that low transaction costs potentially make it much easier to conduct crossborder banking electronically. For many banks, cross border operations offer an
opportunity to reap economies of scale. But cross-border finance also needs a higher
degree of cross-border supervision. Such cooperation may need to extend to similar
supervisory rules and disclosure requirements (for efficiency and to avoid regulatory
arbitrage) and some harmonizing of legal, accounting and taxation arrangements. The real
question here is whether India at the present juncture is adequately prepared to face the
consequences of cross border e-banking?
There is no commercial bank in India, which has exclusively specialized in the small
business segment. SMEs in India have generic problems like the inability to provide
quality data, to exhibit formal systems and practices and the lack of asset cover. Legal
and regulatory compliance has also been inadequate. Traditional drawbacks like
asymmetric and nontransparent data and low capital bases continue to characterize their
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balance sheets. The problem is further compounded due to the preponderance of a large
cash economy in this segment. There are many challenges involved in a web-based
relationship model for SMEs within India given the current state of regulation [Sushant
Kumar 2001].
The flip side of this technological boom is that electronic banking is not only susceptible
to, but may exacerbate, some of the same risksparticularly governance, legal,
operational, and reputationalinherent in traditional banking. In addition, it poses new
challenges. In response, many national regulators have already modified their regulations
to achieve their main objectives: ensuring the safety and soundness of the domestic
banking system, promoting market discipline, and protecting customer rights and the
public trust in the banking system.
New methods for conducting transactions, new instruments, and new service providers
will require legal definition, recognition, and permission. For example, it will be essential
to define an electronic signature and give it the same legal status as the handwritten
signature. Existing legal definitions and permissionssuch as the legal definition of a
bank and the concept of a national borderwill also need to be rethought.
Implementation of global technology: There is a need to have an adequate level of
infrastructure and human capacity building before the developing countries can adopt
global technology for their local requirements. In developing countries, many consumers
either do not trust or do not access to the necessary infrastructure to be able to process epayments.
Strengthening the public support: In developing countries, in the past, most e-finance
initiatives have been the result of joint efforts between the private and public sectors. If
the public sector does not have the necessary resources to implement the projects it is
important that joint efforts between public and private sectors along with the multilateral
agencies like the World Bank, be developed to enable public support for e-finance related
initiatives.
Confidentiality, integrity and authentication: These three are the very important features of
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the banking sector and were very successfully managed all over the world before the
coming of internet. Communication across an open and thus insecure channel such as the
internet might not be the best base for bank-client relations as trust might partially be lost.
Customer Satisfaction: In todays competitive world, satisfaction of customers is a major
challenge for the banking sector because customers have alternative choices in various
types of services provided by banks.
Availability of Personnel services: In present times, banks are to provide several services
like social banking with financial possibilities, selective up gradation, computerization
and innovative mechanization, better customer services, effective managerial culture,
internal supervision and control, adequate profitability, strong organization culture etc.
Therefore, banks must be able to provide complete personnel service to the customers
who come with expectations.
Non- Performing Assets (NPA): Nonperforming assets are another challenge to the
banking sector. Vehicle loans and unsecured loans increases N.P.A. which terms 50% of
banks retail portfolio was also hit due to upward movement in interest rates, restrictions
on collection practices and soaring real estate prices. So that every bank have to take care
about regular repayment of loans.
Competition: The nationalized banks and commercial banks have the competition from
foreign and new private sector banks. Competition in banking sector brings various
challenges before the banks such as product positioning, innovative ideas and channels,
new market trends, cross selling ad at managerial and organizational part this system
needs to be manage, assets and contain risk. Banks are restricting their administrative
folio by converting manpower into machine power i.e. banks are decreasing manual
powers and getting maximum work done through machine power. Skilled and specialized
man power is to be utilized and result oriented targeted staff will be appointed.
Handling Technology: Developing or acquiring the right technology, deploying it
optimally and then leveraging it to the maximum extent is essential to achieve and
maintain high service and efficiency standards while remaining cost effective and
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delivering sustainable return to shareholders. Early adopters of technology acquire
significant competitive advances Managing technology is therefore, a key challenge for
the Indian banking sector.
Other Challenges:
o Coping with regulatory reforms
o Development of skill of bank personnel
o Customer awareness and satisfaction
o Corporate governance
o Changing needs of customers
o Keeping space with technology up gradation
o Lack of common technology standards for mobile banking
o Sustaining healthy bottom lines and increasing shareholders value
o Structural changes
o Man power planning
Opportunities
o Untapped Rural Markets: Contributing to 70% of the total population in India is a largely
untapped market for banking sector. In all urban areas banking services entered but only
few big villages have the banks entered. So that the banks must reach in remaining all
villages because majority of Indian still living in rural areas.
o Multiple Channels: Banks can offer so many channels to access their banking and other
services such as ATM, Local branches, Telephone/mobile banking, video banking etc. to
increase the banking business.
o Worthy Customer Service: Worthy customer services are the best brand ambassador for
any bank for growing its business. Every engagement with customer is an opportunity to
develop a customer faith in the bank. While increasing competition customer services has
become the backbone for judging the performance of banks.
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o Internet Banking: It is clear that online finance will pick up and there will be increasing
convergence in terms of product offerings banking services, share trading, insurance,
loans, based on the data warehousing and data mining technologies. Anytime anywhere
banking will become common and will have to upscale, such up scaling could include
banks launching separate internet banking services apart from traditional banking
services.
o Retail Lending: Recently banks have adopted customer segmentation which has helped in
customizing their product folios well. Thus retail lending has become a focus area
particularly in respect of financing of consumer durables, housing, automobiles etc.,
Retail lending has also helped in risks dispersal and in enhancing the earnings of banks
with better recovery rates.
o Indian Customers: The growing Indian banking sector with its strong home country
linkages, seek a unique combination of Indian ethnicity and global standards that offers a
valuable nice opportunities for Indian banks. The biggest opportunity for the Indian
banking sector today is the Indian costumers. Demographic shifts in terms of income
level and cultural shifts in terms of life style aspirations are changing the profile of the
Indian customer. This is and will be a key driver of economic growth going forward. The
Indian customers now seek to fulfil his lifestyle aspirations at a younger age with an
optimal combination of equity and debt to finance consumption and asset creation. The
consumer represents a market for a wide range of products and services he need a
mortgage to finance his house, an auto loan for his car, a credit card for on-going
purchases, a bank account, a long term investment plan to his childrens higher education,
pension plans for his retirement, a life insurance policy the possibilities are endless and
this consumer does not live just in Indias top ten cities. He represents across cities, towns
and villages i.e. in rural areas. Consumer goods companies are already tapping this
potential it is for the banks to make the most of the opportunity to deliver solutions to this
market.
o Other Opportunities:
o To enter new business and new markets
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o To develop new ways of working
o To improve efficiency
o To deliver high level of customer services.
PRODUCT OF INTERNET BANKING:

Automatic teller machine
ATM is a computerized telecommunications device that provides a financial institutions
customers a method of financial\ transactions in a public space without the need for 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 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. 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 ATMs.
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Tele banking or Phone Banking:
Telephone banking is relatively new Electronic Banking Product. However it is fatly 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 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.
Internet Banking:
The advent of the Internet and the popularity of personal computers presented both an
opportunity and a challenge for the banking industry. For years, financial institutions have used
powerful computer networks to automate millions of daily transactions; today, often the only
paper record is the customers receipt at the point of sale. Now that their customers are connected
to the Internet via personal computers, banks envision similar advantages by adopting those same
internal electronic processes to home use. Banks view online banking as a powerful value
added tool to attract and retain new customers while helping to eliminate costly paper handling
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and teller interactions in an increasingly competitive banking environment. In India first one to
move into this area was ICICI Bank. They started web based banking as early as august 1997.
Internet banking process
Process of Servicing: To access telephone banking,
The customer would call the special phone number set up by the financial institution
Enter on the keypad the customer number and password.
There could be more steps for security and or automated systems to secure customer
accounts or specific question to answer pre-determined by customer
1. Online Registration
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If the customer wishes to apply for Net Banking services of Canara Bank online, kindly read the
Terms and Conditions herein. The act of clicking "I agree" button on the Bank's web page
hosting terms and conditions herein amounts to customer signing an agreement with the Bank for
Canara Bank Net Banking services and customer consent to abide by the terms and conditions.
The Net Banking Services will be extended only to the customer who is agreeing for the Terms
and Conditions herein. If the customer does not agree to the Terms and Conditions herein, kindly
click on "Disagree" button to exit.
2. Applicability
The Terms mentioned herein form the contract between the User using the Internet Banking
services and the Bank. By applying for Internet Banking Services through all modes of
registration available to the users and accessing the service the User acknowledges and accepts
these Terms of Service (Terms & Conditions). All the services/ products purported to be offered
hereunder will be denominated in Indian currency. Notwithstanding anything contained herein,
all terms and conditions stipulated by the bank pertaining to the accounts shall continue to be
applicable to the users provided in the event of a conflict in the terms stipulated by the bank and
the terms herein, the terms herein shall have overriding effect. These terms will be in addition to
and not in derogation of the terms and conditions relating to any account of the user. The
agreement shall remain valid until it is replaced by another agreement or terminated by either
party or account is closed, whichever is earlier.
3. Definitions
"BANK" refers Canara Bank, a body corporate established under the Banking Companies
(Acquisition and Transfer of Undertakings) Act 1970 and having its Head Office at 112, J C
Road, Bangalore 560002 in India and includes its successors and assigns. "Website" refers to
www.canarabank.in which is owned by Canara Bank for offering Internet Banking facility to its
customer.
"Account(s)" refers to all the accounts maintained by the user with the Bank in whatever name
they are designated, which are eligible account(s) for purposes of Net banking. One of these
accounts shall be designated, as the primary account and all other accounts, if any, of the user
shall be referred to as secondary account (s).
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"Internet Banking /Net Banking" refers to the Internet banking service offered by BANK to the
user which provide access to account information, products and other services such as Balance
enquiry, transaction details in the Account(s), statement of Account, transfer of funds, bill
payment and any other service as the BANK may decide to provide from time to time through
Internet banking website www.canarabank.in. The Bank at its sole discretion may also make
additions/ deletions to the Internet Banking Services being offered.
"User" means the customer or a person authorized by the customer to operate the account/s
through Internet Banking facility. Any communication addressed to the user by Canara Bank, is
deemed to have been addressed to the customer as well. Similarly, any communication and/or
action of the user through Internet Banking facility provided by Canara Bank will be legally
binding on the customer.
"User Id" refers to the identity of the user obtained from the Bank for the purpose of logging into
the Internet Banking facility provided by the Bank. "Login Password" is a unique and randomly
generated password known only to the customer, which can be changed by the user to his/her
convenience. This is a means of authenticating the user ID for logging into Internet Banking.
"Transaction Password" is a unique and randomly generated password known only to the
customer, which can be changed to his/her convenience. This is a means of authentication
required to be provided by the customer for putting through the transaction in his/her/their/its
accounts with Canara Bank through Internet Banking. While User ID and Password are for valid
access into the internet application, giving valid Transaction Password is for authentication of
transaction/requests made through internet.
"Personal Information" refers to the information about the USER obtained in connection with the
Internet Banking Service.
"Terms" refer to Terms and Conditions for use of Internet Banking Services as specified in this
document.
4. Net Banking Services
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The BANK shall endeavor to provide to the USER through Internet Banking services such as
inquiry about the balance in his/her account(s), details about transactions, Statement of Account,
Request for issue of cheque-books, Request for transfer of funds to own/third party accounts
within Canara Bank and to other Bank accounts and many other facilities as the BANK may
decide to provide from time to time. The Bank at its sole discretion may also make
additions/deletions to the Internet Banking Services being offered without giving any prior
notices or reasons.
The BANK shall take reasonable care to, ensure the security of and prevent unauthorized access
to the Internet Banking Services using technology reasonably available to the BANK in India.
The USER shall not use or permit to use Internet Banking Service or any related service for any
illegal, fraudulent, dishonest or improper purposes.
5. Net Banking Service Access
The Customer shall be allotted User ID, Login Password and Transaction Password by Canara
Bank in the first instance. The user will be required to change the Login/Transaction password
assigned by Canara Bank on accessing the Internet Banking services for the first time after
his/her agreeing to the terms and conditions for Internet Banking . As a safety measure the user
shall change the Login Password as frequently as possible thereafter or as and when the system
requires for the same whichever is earlier. In addition, Canara Bank may at its discretion advise
the user to adopt such other means of authentication including but not limited to digital
certification and/ or smart cards issued by licensed or approved Certifying Authorities or vendors
as it may deem fit.
The user agrees not to hold the bank liable for any failure to complete the transaction due to nondelivery or delay in transmission of Login/ transaction password/s. The user shall not attempt or
permit others to attempt accessing the account information stored in the computers of the bank
through any means other than the internet banking.
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6. Password
a) The user acknowledges, represents and warrants that the password/ One Time Password (OTP)
which will be issued to him/her provides access to the account and that user is the sole and
exclusive owner and is the only authorized user of the password/OTP and accepts sole
responsibility for use, confidentiality and protection of the password/OTP. The User is entirely
responsible for the safekeeping/secrecy and use of password/s and OTP and any damage and
other consequences of their misuse wherever applicable.
b) The customer understands and agrees that the transaction password is for the purpose of
authenticating the transaction and shall have same effect as the specimen signature of authorized
signatory of the customer and the customer shall be bound by the transactions initiated by the use
of transaction password.
c) In the event of forgetting of user-id and/or password or expiry/ disability of password(s) User
can request for change of the password through online option by entering the required details or
by giving a written request to the Bank branch. The selection of a new password and/ or the
replacement of User-id shall not be construed as the commencement of a new contract.
d) The user agrees and acknowledges that BANK shall in no way be held responsible or liable if
the user incurs any loss as a result of compromise of User-id and password by the user himself or
theft of or user has failed to follow the Internet Banking Service instructions as published by the
BANK on the website from time to time. User agrees to fully indemnify and hold harmless
BANK in respect of the same.
e) If third party gains access to the service in the customer accounts, the customer will be
responsible and indemnifies Canara Bank against any liability, costs or damages arising out of
claims or suits by such third parties based upon or relating to such access and use.
f) The User must: Keep the User-id and password totally confidential and not reveal the
password to any third party; Change the password at the time of first log in; Create a password of
at least 8 characters long and shall consist of a mix of alphabets, numbers and special characters
which must not relate to any readily accessible personal data such as the USER's name, address,
telephone number, vehicle number, driving license etc. or easily guessable combination of letters
36 | P a g e

and / or numbers; Commit the user-id and password to memory and not record them in a written
or electronic form; and Not let any unauthorized person have access to his computer or leave the
computer unattended while using Internet Banking Services.
g) The customer shall have different Login password and transaction password for security
reasons.
7. Unauthorized Access
The user shall take all necessary precautions to prevent unauthorized and illegal use of internet
banking and unauthorized access to the accounts provided by Net Banking. The Bank shall take
all commercially reasonable care to ensure the security of and to prevent unauthorized access to
the internet banking using commercially reasonable technology available in India to the Bank.
8. Joint Accounts
The Internet Banking Services will be available in case of joint accounts only if the mode of
operation is indicated as 'Either or Survivor' or 'Anyone or Survivor' or 'Former or Survivor'.
For 'Former or Survivor' account, user-id will be issued only to the 'Former'.
For 'Either or Survivor' and 'Anyone or Survivor' accounts one user-id will be issued to one of
the joint account holders.
In case of 'Either or Survivor' and 'Anyone or Survivor' accounts if any of the joint account
holder(s) gives "stopping of operations" instructions for the use of Internet Banking Service in
writing, on any of the Internet Banking Service -accounts held jointly by them, the Internet
Banking Services will be discontinued for the USER. In case of 'Former or Survivor' account
such instructions cannot be issued by other account holder. All transactions arising from the use
of Internet Banking in the joint account shall be binding on all the joint account holders, jointly
and severally notwithstanding that one amongst such joint account holders only operates the
accounts through Internet Banking Services.
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9. Applicability to future Accounts
The bank and the user agree that if the user opens further accounts with/subscribes to any of the
products/services of the bank, and the bank extends the internet banking to such accounts or
products or services and the user opts for use thereof, then the terms of this agreement shall
automatically apply to such further use of the internet banking by the user.
10. Maintenance of sufficient balance
The user shall ensure that there are sufficient funds (or prearranged credit facilities) in the
account for transferring through the Internet Banking and Canara Bank shall not be liable for any
consequences arising out of its failure to carry out instructions due to inadequacy of funds and/or
credit facilities.
11. Funds Transfer
If funds transfer facility is made available to the user, then user may transfer funds from any of
his account(s) linked to the User-Id to other account(s) belonging to own/third parties maintained
at Canara Bank/ or at any other Bank.
The user accepts that he will be responsible for keying in the correct account number / other
particulars of the beneficiary for the fund transfer request. In no case, the bank will be held liable
for any erroneous transactions incurred arising out of or relating to the user entering
wrong/incorrect/incomplete account number, information of the beneficiary and/or any other
particulars. Also, in no case, the bank will be held liable for any erroneous transactions incurred
arising out of or relating to the user entering any incomplete or undecipherable or unreadable or
erroneous inputs keyed in by the user.
The Bank shall not be liable for any omission to make all or any of the payments or for late
payments due to circumstances beyond the reasonable control of the Bank. In the event of
overdraft created due to oversight/inadvertently, the User will be liable to pay the interest on
such over drawn amount, as decided by the Bank from time to time.
The user shall not use or attempt to use the internet banking for funds transfer without sufficient
funds in the relative account or without a pre-existing arrangement with the bank for the grant of
an overdraft. The bank will endeavor to effect funds transfer transaction received through
38 | P a g e

internet banking subject to availability of sufficient funds in the account. The bank shall specify
from time to time the limit for carrying out various kinds of funds transfer or any other services
through internet banking.
12. Limits
Bank may impose the limits for carrying out various kinds of funds transfer or any other services
through Internet Banking from time to time. The User acknowledges that the same is to reduce
the risks on him/her. For instance, the Bank may impose transaction restrictions within particular
periods or amount restrictions within a particular period or even each transaction limits. The User
shall be bound by such limits imposed and shall strictly comply with them. The Bank shall put an
appropriate message on the relevant page or the website.
13. Liability of the User and the Bank
User shall maintain the secrecy of all information of confidential nature and shall ensure that the
same is not disclosed to any person voluntarily, accidentally or by mistake. User agree and
acknowledge that any loss, damage, liability caused or suffered by the User due to disclosure of
information of confidential nature shall be borne by the User without transferring any liability or
responsibility towards the Bank. User shall comply with such guidelines, instructions or terms as
the Bank may prescribe from time to time with respect to the password.
If the USER has complied with the Terms and advises the Bank in writing under
acknowledgment of an authorized person of the Bank, immediately after he/she suspects that
his/her password is known to another person and/ or notices an unauthorized transaction(s) in his
account, he/she shall not be liable for losses arising out of the unauthorized transaction(s)
occurring in the accounts after the receipt of such advice by the Bank.
The USER shall be liable for all loss from unauthorized transactions in the account(s) if he/she
has breached the Terms and conditions or contributed or caused the loss by negligent actions
such as the following: In disclosing or failing to take all reasonable steps to prevent disclosure of
the User-id and/or password to anyone including Bank staff and/ or failing to advise the Bank of
such disclosure within a reasonable time and/or Not advising the Bank in a reasonable time about
39 | P a g e

unauthorized access to or erroneous transactions in the account(s) through the Internet Banking
Services.
The Bank shall not be liable for any unauthorized transaction(s) occurring through the use of
Internet Banking Services which can be attributed to the fraudulent, dishonest or negligent
conduct of the User. The BANK shall not be liable to the account holder(s) for any damages
whatsoever whether such damages are direct, indirect, incidental, consequential and irrespective
of whether any claim is based on loss of revenue, investment, production, goodwill, profit,
interruption of business or any other loss of any character or nature whatsoever and whether
sustained by the account holder(s) or any other person, if Internet Banking Services access is not
available in the desired manner for reasons including but not limited to natural calamity, floods,
fire and other natural disasters, legal restraints, faults in the telecommunication network or
Internet or network failure, software or hardware error or any other reason(s) beyond the control
of the Bank.
The Bank shall endeavor to take all reasonable steps to maintain secrecy and confidentiality of
its customers' account(s) and data but shall not be liable to the account holder(s) for any damages
whatsoever caused on account of breach of secrecy/ confidentiality due to unauthorized access,
damage, disruption, hacking or technological lapses in the system. The bank shall not be liable
for any loss due to unauthorized transfer of funds through unauthorized access, phishing attacks,
hacking or by way of any other cyber-attacks etc.
The customer should refrain from accessing the resources of the Bank for Internet Banking from
public locations like browsing centers which are susceptible for hacking of passwords and other
misuse. In any such case, the customer will be responsible and indemnifies Canara Bank against
any liability, costs and damages arising out of such hacking or misuse.
The customer is aware and acknowledges that fund transfer to other Bank accounts through
NEFT/RTGS are to be done within the hours notified from time to time by RBI. Thereby the
customer accepts that the Bank shall not be liable in case the customer proceeds on the
assumption that the transaction/request are carried out immediately as and when the same are
submitted on the net.
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14. Accuracy of Information
The user is responsible for the correctness of information supplied to Canara Bank for use of the
Internet Banking or through any other means. Canara Bank accepts no liability for the
consequences arising out of erroneous information supplied by the user. If the user notices an
error in the information supplied to Canara Bank either in the application form or any other
communication, he shall immediately advise Canara Bank which will endeavor to correct the
error wherever possible.
15. Non-transferability
The grant of facility of Internet Banking Services to a USER is not transferable under any
circumstance and shall be used only by the USER.
16. Authority to the Bank
The user irrevocably and unconditionally authorizes the Bank to access all his account/s for
acting on any request made by the user through Internet Banking. The instructions of the user
shall be effective only when such instruction is in accordance with the prescribed procedure. The
Bank shall have no obligation to verify the authenticity of any transaction/instruction received
from the user through Internet Banking. While Bank shall endeavor to carry out the instructions
promptly, they shall not be responsible for any delay in carrying on the instructions due to any
reason whatsoever, including due to failure of operational systems or any requirement of law. All
the transactions arising through the use of the Internet Banking to operate a joint account shall be
binding on all the joint account holders, jointly and severally.
The display or printed output that is generated by the User at the time of operation of Internet
Banking Services is a record of the operation of the Internet access and shall not be construed as
the Bank's record of the relative transactions. The Bank's own records generated by the
transactions arising out of the use of the Internet Banking, including the time the transaction
recorded shall be conclusive proof of the genuineness and accuracy of the transaction and shall
be accepted as conclusive and binding for all purposes.
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17. Proprietary Rights
There will be no obligation on the Bank to support all or any versions of the Internet software as
may be required for offering Internet Banking. The User acknowledges that the software
underlying the Internet Banking Services as well as other Internet related software which are
required for accessing Internet Banking Services are the legal property of the respective vendors.
The permission given by the Bank to access Internet Banking Services will not convey any
proprietary or ownership rights in the above software. The User shall not attempt to modify,
translate, disassemble, decompile or reverse engineer the software underlying Internet Banking
Services or create any derivative product based on the software.
18. Disclosure of information
The user agrees that the bank or their contractors may hold and process his personal information
and all other information concerning his account(s) on computer or otherwise in connection with
the internet banking as well as for analysis, credit scoring and marketing. The user also agrees
that the bank may disclose customer personal information to Government, judicial bodies, and
our regulators or to any person to whom the Bank is under an obligation to make disclosure
under the requirements of any law binding on the Bank or any of its branches, when situation so
demands.
19. Change of terms and conditions
The Bank has the absolute discretion to amend or supplement any of the Terms at any time. The
Bank may introduce new services within Internet Banking Services from time to time. The
existence and availability of the new functions will be notified to the User as and when they
become available. By using these new services, the User agrees to be bound by the terms and
conditions applicable. The user shall be responsible for regularly viewing these Terms including
amendments thereto as may be posted on the website.
20. Force Majeure
The User specifically agrees to hold Bank harmless from any and all claims, and agrees that
Bank shall not be liable for any loss, actual or perceived, caused directly or indirectly by
government restriction, exchange or market regulation, war, strike, virus attacks, denial of
service attacks, equipment failure, communication line failure, system failure, security failure on
42 | P a g e

the Internet, unauthorized access, hacking, theft, phishing, or any problem, technological or
otherwise or other conditions beyond Bank's control, that might prevent User from
accessing/operating or Bank from executing/validating an instruction, order, direction. User
further agrees that he/she will not be compensated by Bank for "lost opportunity" in the form of
notional profits/gains on orders, instructions, directions which could not be executed.
21. Notices
Notices under these Terms of Service (Terms & Conditions) to the customer may be given
through any medium of communication as may be deemed appropriate by the Bank i.e. Bank's
website (www.canarabank.in / www.canarabank.com) or email, SMS, public notification at
Branches, or through newspapers, radio, TV etc. Such notices will have the same effect as a
notice served individually to each customer.
22. Termination of Net Banking Service
The User may request for termination of the Internet Banking Services facility any time by
giving a written notice. The User will remain responsible for any transactions made on his/her
account(s) prior to the time of such cancellation of the Internet Banking Services. The bank may
withdraw or terminate the internet banking facility anytime either entirely or with reference to a
specific service or user after giving reasonable notice under the circumstances to the user through
the web site. The closure of account by the user will automatically terminate the Internet
Banking Services. The bank may suspend or terminate the Internet Banking Services without
prior notice if the user has committed breach of any of these terms and conditions or the Bank
learns of the death, bankruptcy, legal incapacity of the user.
23. Governing Law and Jurisdiction
These terms and conditions and/or operations in the accounts of the User maintained by the Bank
and/or the use of services provided through Internet Banking Services are construed to be
governed in accordance with the laws in India. Bank accepts no liability whatsoever, direct or
indirect for non-compliance with the laws of any country other than that of India. It is the
responsibility of the user to comply with any regulations prevailing in the country from where he
is accessing the Internet.
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Any dispute, controversy or claims in respect of Internet Banking services or on account of
breach of these terms and conditions shall be settled by arbitration in accordance with the
provisions of the Indian Arbitration and Conciliation Act, 1996.
In the event of dispute between Canara Bank and customer, an arbitrator shall be appointed by
Canara Bank.
The place of arbitration shall be Bangalore, India and any award shall be made/deemed to be
made for all purposes in Bangalore, India.
In case of failure to settle the dispute through arbitration, then the same shall be brought with the
jurisdiction of the High Court in Bangalore, India
24. Disclaimer
The user expressly agrees that use of the website is at its sole risk and cost. The services offered
on the website is provided on an "as is" and "as available" basis.
Except as warranted in the Terms, Bank expressly disclaims all warranties of any kind, whether
express or implied or statutory, including, but not limited to the implied warranties of
merchantability, fitness for a particular purpose, data accuracy and completeness, and any
warranties relating to non-infringement in Internet Banking.
Bank does not warrant that access to the website and Internet Banking shall be uninterrupted,
timely, secure, or error free nor does it make any warranty as to the results that may be obtained
from the website or use, accuracy or reliability of Internet Banking. Bank will not be liable for
any virus or computer contaminant that may enter the user's system as a result of the user using
Internet Banking. Bank does not guarantee to the user or any other third party that Internet
Banking would be virus or computer contaminant free.
The Bank has adopted the mode of authentication of the User by means of verification of the
User ID and or through verification of password or through any other mode of verification as
may be stipulated at the discretion of the Bank. The User hereby agrees/consents for the mode of
verification adopted by the Bank. The User agrees that the transactions carried out or put through
44 | P a g e

by the aforesaid mode shall be valid, binding and enforceable against the User and shall not be
entitled to raise any dispute questioning the transactions.
25. Indemnity
In consideration of Bank providing the user the Internet Banking, the user shall, at his own
expense, indemnify and hold Bank, its directors and employees, representatives, agents and/or
sub-agents as the case may be, indemnified against all losses and expenses on full indemnity
basis which Bank may incur, sustain, suffer or is likely to suffer in connection with Bank
execution of the user's instructions and against all actions, claims, demands, proceedings, losses,
damages, costs, charges and expenses as a consequence or by reason of providing a service
through Internet Banking for any action taken or omitted to be taken by Bank, its officers,
employees, agents and/or sub-agents on the instructions of the user. The user will pay Bank such
amount as may be determined by Bank to be sufficient to indemnify it against any such, loss or
expenses even though they may not have arisen or are contingent in nature.
Further, the user agrees, at its own expense, to indemnify, defend and hold harmless Bank, its
directors and employees, representatives, agents, and sub-agents against any claim, suit, action or
other proceeding brought against Bank, its directors and employees, representatives, agents, and
sub-agents by a third party, to the extent that such claim, suit, action of other proceeding brought
against Bank, its directors and employees, representatives, agents, and sub-agents is based on or
arises in connection with the user of Internet Banking with reference to:
a violation of the Terms contained herein by the user;
any deletions, additions, insertions or alterations to, or any unauthorized use of, Internet
Banking by the user; any misrepresentation or breach of representation or warranty made
by the user contained herein; or
Any breach of any covenant or obligation to be performed by the user hereunder.
The user agrees to pay any and all costs, damages and expenses, including, but not
limited to, reasonable attorneys' fees and costs awarded against it or otherwise incurred
45 | P a g e

by or in connection with or arising from any such claim, suit, and action or proceeding
attributable to any such claim.
The user hereby agrees that under no circumstances, Bank's aggregate liability for claims
relating to Internet Banking, whether for breach of in tort (including but not limited to
negligence) shall not exceed the transaction charges/fees or consideration paid, if any by
the user within the previous six (06) months for Internet Banking, excluding any amount
paid towards transactions.
Channel Member
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Distributions channels
Agents
Formal Banks
Regional Rural Banks
Cooperative Banks
SHGs & their Federations
NGOs & MFIs
Post Offices
Internet & Rural Kiosks & Rural Knowledge centers
Direct Distribution- Examples

Banking services
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Credit cards
Petrol / diesel-company own outlets
Land line phone connections
Health services
Utilities- electricity water
Subsidized ration
Education
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RESEARCH DESIGN
NEED OF THE STUDY
To determining growth direction of online banking service.
Promoting E-banking services in banking industry.
Customer perception will be taken into consideration about the internet banking.
OBJECTIVES
To get full acquaintance of the e-banking channels.
To know the challenges in e-banking.
To understand the driving factors for adoption of banking channels.

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/EMPLOYEES
Ho: Friends/Relatives do not influence the use of E Banking services
H1: Friends/Relatives do influence the use of E Banking services.
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SCOPE OF THE STUDY
All the classes of the customers were taken into consideration.
This study was covered E-Banking service sector.
This is a realistic source directly collected from the customers of Bank.
Today the customer demands the services of banks 24 hours where he lives even he is in
the airplane.
Now in this modern age the entire banking structure has been changed due to widespread
internet technology. Now all the business like commerce, trade, import, export, purchase
and sale of goods is relying upon electronic banking. By using the advance electronic
technology the banking services are fast and economical.
There is a saving time and saving of money in the use of E-banking. If any country wants
to work in the world market, it will have to improve the banking services at international
level because old traditional banking is not acceptable in the changing global economy.
The online banking facility has been provided by the large number of commercial banks.
On other hand credit card facility is also available in the various commercial banks. Now
every bank wants to attract the customers and for this purpose the offers the latest
facilities so i seems that no any bank will survive in the market if he fails to provide
update facilities.
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
50 | P a g e

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 in-house customers of
these two banks in all the city of India.
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 Bank within India. 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.
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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 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 ICICI
and HDFC 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 landform 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, factors influencing the usage of ebanking 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.
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SAMPLE DESIGN AND SIZE
In this research project Descriptive research design is used. Judgment 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
100 customers is taken from ICICI and HDFC bank.
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
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 people of Indian
TOOLS AND TECHNIQUES OF ANALYSIS:
The data so collected will be analyzed through the application of statistical techniques, such as
bar graphs and pie charts.
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DATA ANALYSIS & INTERPRETATION
1. Age
18 to 25
40%
25 to 35
25%
35 to 45
20%
45 to 60
10%
60 above
5%
40%
35%
30%
25%
20%
15%
10%
5%
0%
18 to 25
25 to 35
35 to 45
45 to 60
60 above
In a survey conducted in Bangalore out of 100% the largest number of respondents were
youngsters mostly the age group of 18-25.
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2. Education Qualification
Under Graduate
Graduate
Past Graduate
Others
Total
10%
25%
50%
15%
100%
50%
45%
40%
35%
30%
25%
20%
15%
10%
5%
0%
Under GraduateGraduate Past Graduate
Others
Most of the respondents were postgraduate with the highest percentage than graduates and
rest others.
3. Please indicate your current occupation
Student
Employed
Unemployed
Self-employed
Others
Total
25%
35%
25%
10%
5%
100%
Others; 5%
Self-employed; 10%
Student; 25%
Unemployed; 25%
Employed; 35%
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As numbers of respondents were youth out of which the 35% were the working class people then
it comes Students and Unemployed people with 25% each and then rest of them.
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4. Are you using internet banking?
Yes
75%
No
25%
Total
100%
No; 25%
Yes; 75%
The number of respondents are using the internet banking with the share of 75% and 25%
were not using the Internet banking. There are various reasons for adoption and nonadoption of internet banking. Those reasons are explained in the further pages of this
report.
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a. If No, what are the reasons?
Dont have Internet Access
Dont have Smart Phone
Threat of hackers
Not used to it
Dont know how to use
Total
30%
35%
5%
10%
20%
100%
us
e
D
on
t
kn
ow
ho
w
to
of
ha
ck
er
s
Th
re
at
D
on
t
ha
ve
In
te
rn
et
Ac
ce
ss
35%
30%
25%
20%
15%
10%
5%
0%
First we will go according to No options and reasons for it:

The people who were actually not using the internet banking because they were not
having the internet facility and no smartphones.
Others said that they dont know how to use it and some said that they are not used to
modern banking facility i.e. they are satisfied with their traditional banking.
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b. If yes, how frequently you do transactions using Internet Banking?
At least once in a day
Twice a week
Once in 15 days
At least once a week
More than 5 times a month
Others
Total
15%
35%
25%
10%
10%
5%
100%
m
on
th
a
es
in
M
or
e
th
an
tim
O
nc
e
At
le
as
t
on
ce
in
15
da
ys
da
y
35%
30%
25%
20%
15%
10%
5%
0%
People who were using the internet banking, out of which 35% of the respondents use at
least twice the week and 25% said that hey use once in a 15 days.
But only 15% said that they use on the regular basis i.e. a least once a day
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5. Which category of the banks do you consider as most technologically advanced?
Public sector
Private sector
Total
60%
40%
100%
40%
Public sector
60%
Private sector
According to the respondents public sector banks are more technological advanced than
the private sector with the ratio of 3:2.
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7. How frequently do you visit your bank branch per month?
Frequently
Less frequently
Cant say
Rarely
Dont visit at all
Total
30%
20%
15%
30%
5%
100%
30%
25%
20%
15%
10%
5%
vi
si
ta
ta
ll
D
on
t
Ra
re
ly
sa
y
Ca
n
t
fre
qu
en
tly
Le
ss
Fr
eq
ue
nt
ly
0%
Visiting the bank branch frequently is highest with 30% and some said equally they visit
rarely to the bank per month. 5% said that they dont visit to bank at all.
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8. What is the main reason that you typically visit your bank branch?
To make a deposit
25%
To inquire about a balance

To operate locker
To withdraw cash
To get advice for investment options
To take drafts
Others
Total
20%
5%
20%
5%
10%
5%
100%
Others; 6%
To make a deposit; 28%
To take drafts; 11%
To get advice for investment options; 6%
To withdraw cash; 22%

To inquire about a balance; 22%
To operate locker; 6%
The main reason to visit the bank is mostly to make deposit money, then to inquire about
the balance and withdrawal of cash.
Some even said that they visit branch to take the draft, operate locker and get active
investment options from the bank.
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9. What reasons youre choosing online banking service?
20%
To save time
20%
24 hour access to accounts
40%
Visiting Branch is very

inconvenient
Others
15%
Total
100%
5%
40%
20%
20%
15%
O
th
er
s
ho
ur
ac
ce
ss
to
ac
co
un
ts
5%
24
Co
nv
en
ie
nc
e
45%
40%
35%
30%
25%
20%
15%
10%
5%
0%
Convenience
The main reason for choosing the online banking service is because it provides 24/7
access to Account. Convenience and time saving both have 20% - 20%.
Visiting the branch is very inconvenient is 15%.
63 | P a g e

10. Which online banking services do you use mostly?
ATM
Mobiles banking
Online money transfer ( Fd, S.
a/c)
Cheque issue
Others
Total
50%
20%
20%
5%
5%
100%
Others
5%
Cheque issue
5%
Online money transfer ( Fd, S. a/c)
20%
Mobiles banking
20%
ATM
50%
0% 10% 20% 30% 40% 50% 60%
The mostly used online banking service is ATM with 50%, then mobile banking and
online banking services with 20% each. Cheque issue and other services count for 10%.
64 | P a g e

11. How frequently do you use an Automated Teller Machine ( ATM) per month?
1 to 2 times
1 to 3 times
3 to 8 times
8 to 12 times
Over 12 times
Total
10%
20%
55%
10%
5%
100%
55%
20%
O
ve
r1
2
tim
es
5%
es
8
to
12
tim
es
tim
8
3
to
3
to
1
to
tim
es
10%
tim
es
10%
55%of the respondents use ATM 3-8 times in a month, with 20% of respondents use 1- 3
times in month.
65 | P a g e

12. How frequently do you operate your mobile banking per month?
Once in a month
Twice in a month
4 times in a month
Twice a week
Not using
Total
30%
20%
20%
22%
8%
100%
30%
30%
25%
20%
22%
20%
20%
15%
8%
10%
5%
es
ot
us
in
g
N
we
ek
a
tim
Tw
ic
e
m
on
th
in
m
in
Tw
ic
e
O
nc
e
in
on
th
on
th
0%
30% respondents said that they operate mobile banking once in month and 22%
respondents said that they use online banking twice a week means 8 times a month this
indicate that people are changing from the traditional system to modern system of
banking.
20% each for twice and 4 times in a month and 8% said that they do no use at all.
66 | P a g e

13. Which of the following mobile banking features would you use?
Balance inquiry
Utility bill payment
Email and Text alerts
Order check books
Fund transfers
Others
Total
35%
15%
5%
10%
30%
5%
100%
35%
30%
35%
30%
25%
15%
20%
10%
15%
5%
10%
5%
5%
O
th
er
s
bi
ll
pa
ym
Em
en
ai
la
t
nd
Te
xt
al
O
er
rd
ts
er
ch
ec
k
bo
ok
s
Fu
nd
tr
an
sf
er
s
til
ity
U
Ba
la
nc
e
in
qu
iry
0%
The most common feature is used by the people are balance enquiry, fund transfer, utility
bill payment with 35%, 30%, 15% respectively. Services like order cheque books, email
& text alerts and other count for 20%.
67 | P a g e

14. Do you trust the security of online banking relation?
Completely
Somewhat
Dubious
Not at all
Total
45%
25%
15%
15%
100%
Not at all; 15%
Dubious; 15%
Completely; 45%
Somewhat; 25%
Trusting the service provided by the banks is one of important factor in itself so most of
them completely trust the security of online banking services i.e. 45%. Some said they
believe 25% and 15% said its dubious.
68 | P a g e

15. Which attribute of the do you value the most?
Quality of Service
Technology used
Trust
Location
People
Others
Total
Others
15%
25%
35%
10%
10%
5%
100%
5%
People
10%
Location
10%
35%
Trust
25%
Technology used
Quality of Service
15%
As I said the trust is one of the important factor because of which of which most of them
believe in banks. In this 35% of the respondents believe trust is important attribute which
they give value. 25% said technology is the second attribute then it comes to quality of
service and rest of attribute.
69 | P a g e

16. Which factor promotes you the new techniques in banking?
Reduced time of transactions
Ease of use
Easy access
Smart phone
Cost effectiveness
Technology savvy
Internet availability
Total
15%
15%
10%
20%
15%
5%
25%
100%
25%
20%
15%
15%
15%
10%
5%
Smart phone
Internet availability
The factor promotes the new techniques in banking are Internet availability 25%, increase
usage of smart phone with 20% then time of transactions and ease in using certain things
in 15% each. Even the cost effectiveness is important factor.
70 | P a g e

17. How satisfied are you with working through e- channel?
Highly Satisfied
Satisfied
Natural
Dissatisfied
Highly Satisfied
Total
50%
25%
10%
10%
5%
100%
Highly Satisfied; 5%
Dissatisfied; 10%
Natural; 10%
Highly Satisfied; 50%
Satisfied; 25%
Most of the respondents are highly satisfied with the e-channel i.e. 50% then it goes on to
25% for satisfaction level so we can say that respondents are happy with the e-channel.
Only 15% were not happy with the services and 10% were neutral to this case.
71 | P a g e

18. Would you be interested in mobile cheque deposit service and depositing checks to your
bank accounts via your Smartphone?
Yes, I would consider
Yes, I am very much interested
No, I do not have a Smartphone
No, I have a smartphone but do not want
to access my bank account for security
concerns
No, for other reason
Total
20%
35%
20%
15%
10%
100%
es,other
I would
consider;
No, Y
for
reason;
10%20%
No, I have a smartphone but do not want to access my bank account for security concerns; 15%
Yes, I am very much interested; 35%
No, I do not have a Smartphone; 20%
35% respondents said that they are very much interested in mobile cheque deposit and
20% said they consider using the same. Most of them said that they would not consider it
because they dont have smartphone for doing the same, some said that they would not
because of security and other reasons.
72 | P a g e

19. Mobile banking is useful?
Strongly agree
Agree
Natural
Disagree
Strongly disagree
Total
60%
20%
10%
5%
5%
100%
Disagree; 5% Strongly disagree; 5%

Natural; 10%
Agree; 20%
Strongly agree; 60%
In todays world on technology everything is changing traditional becoming modern

every business adopting the internet for doing the business so most of the apps are on
mobile to provide solutions to the customers and mobile banking is useful with 60%
strongly agreeing to this and 20% said that they are satisfied with the mobile banking and
10% said that they are neutral on this case.
Only 10% respondents are not satisfied and strongly disagree.
73 | P a g e

20. The usage of mobile banking is easier than the traditional banking?
Strongly agree
Agree
Neutral
Disagree
Strongly disagree
Total
60%
20%
10%
5%
5%
100%
Disagree; 5% Strongly disagree; 5%

Neutral; 10%
Agree; 20%
Strongly agree; 60%
As I have given the comments in earlier point the same applicable here. Adapting to new
technology saves most of the time of consumers so it has become easier to the bank
customers as it is taking less time for transaction. 60% of the people are strongly agree to
this 20 % said they are agree and rest of them are neutral 10%, disagree and strongly
disagree 5% each.
74 | P a g e

FINDINGS
E-banking Services in India
The services are divided into four categories, i.e., internet banking, mobile banking,
phone banking and ATM services. About internet banking services, the most common
services offered by the banks are balance enquiry and statement and transaction history.
All the banks are offering account balance and transaction history services to customers.
As many as 97 per cent banks offer transfer fund online and facility of cheque book
request.
The banks also appear to be cautious in using the internet to acquire new customers as
only 26 per cent of transactional banks offer loans or deposits online. The reason being
the banks face difficulty of confirming the identity of new customers. Banks also lag
behind in offering more advanced services e.g.
share trading, mobile top up, online loans, convert to EMI
ATM services are mainly comprised of four services. These services are provided by all
the banks. These services are 100 per cent offered by all the banks, including 24 hour
access to cash, transfer fund between accounts, view account balance, mini
statement and pin change option.
E-banking on Payment and Clearing System
To know the impact of e-banking on payment and clearing system the opinion
of
customers are also taken in to account. The second part of customers questionnaire
comprising the statements on impact of e-banking on payment system comprising ten
different statements. The results of the study indicated electronic banking has benefited or
affected the customers services through e-payment as it helps in large volume of
business data and remittances and faster delivery of banking services which is acceptable
to wide range of customers. Mean and standard deviation of all the dimensions of epayment was calculated. The highest mean score was found for e-payment growing at
much faster speed than paper based instruments followed by the cost involved in
75 | P a g e

payment system. Customers also agree that e-payment handles a large volume of their
payments and provides them faster delivery of banking services. So the respondents are
agreeing with all the benefits facilitated by the e-payment system.
Level of awareness among the present banking customers also play an important role in
deciding that whether todays technology will reach the success of height or not. 34 per
cent people are satisfied with their current level of awareness, this shows that still level of
awareness is less than 50 per cent in the banking segment.48.8 per cent are somewhat
satisfied with their current awareness level and needs further enhancement in their
knowledge.8.8 per cent cant say anything about it. 5.3 per cent are somewhat unsatisfied
and 3.3 per cent are very unsatisfied with their current awareness. These are those
customers which are either uneducated or people of rural segment. To increase the level
of awareness more and more training programmers should be organized.
E-banking on Operational Performance
The study brings out the impact of e-banking on operational performance of the banks,
workload on employees as well as on their performance and productivity. To know this
impact both positive as well as negative statements are taken into account. A large
number of employees believe that e-banking with quick working techniques, more clarity
about objectives, minimum cost enhancement in their knowledge about the work has
resulted in improving the productivity of banks. However, employees do not agree with
increase in number of hours. There is a very little increase in working hours of their jobs.
The employees further observed that it has reduced the processing time of the
transactions as no manual work for entering and processing the data is required. The
thinking platform of employees and their decision-making power has also improved to a
large extent. So, as far as the workload of employees is concerned, it has been reduced to
division of work and less processing time.
Most employees believe that the matters regarding the problems of customer could be
handled easily and firstly. Security concern is also been sorted out, employees can now
make online FDs, large amount of fund transfer through Real time gross settlement and
electronic fund transfer. Employees also perceive that electronic banking has made their
76 | P a g e

survival in banking sector very easy and to a large extent, their working has become easy.
Further they feel that up to large extent there has been a reduction in their monotonous of
work as they perceive that working through e-banking is fast and interesting. There is no
fear of job losses among employees. Interaction with the people has not been reduced. In
fact customers become closer to banks and their staff through fast information processing,
speedy recovery of funds and early grievances of their problems
The research shows that electronic banking offers number of modes for payment. It
provides fastest and effective mode of payment to the customers anywhere, anytime. In
different modes of payment, ATM is the fastest and easiest mode suitable to customers.
Because the customers can withdraw the money from ATM anytime, anywhere. Debit
cards and credit cards also play a vital role in making payments. Further electronic fund
transfer and real time gross settlement system play an important part in interbank fund
transfer. So ATM is the fastest mode followed by debit cards, EFT, RTGS, ECS, credit
cards and lastly EDI.
77 | P a g e

CONCLUSION
Electronic banking is the future of conventional banking today. Day by day, the Electronic
Banking has been flourishing with numerous technology. Every technology comes and make the
Electronic Banking more cost saving and time saving way of banking. It is increasing its safety
as much as traditional banking gives or more than traditional banking in some countries. People
use Electronic Banking at home with highest comfort. So, the relative advantage of Electronic
Banking is higher than conventional the prospects of Electronic Banks in Bangladesh is very
potential. So, bank should consider the customer feedback on different criteria and services.
They should apply and re-structured the services as customer said at considerable position.
After all, Banking Sector is giving all the services through Electronic Banking which is available
in the world. But the services can be varied in case of Geographic cause, networking problem
and much more. If these problems are removed then it is expected that the whole country will be
under banking services through Electronic Banking Methods.
Now India is in the beginning of Electronic Banking systems, though the start of Telephone
banking was in the 90s but the process is in dead position. Online Banking started its different
services but speed of internet, user of internet is the main barriers for its prospects. But Mobile
Banking in India has started its services from 1998 and now the most promising banking systems
in India. Because people is getting relatively better advantage than traditional banking.
Our survey have found the numerical position of different advantage criteria. These Security,
Easy to use, cost, time saving and Reliability on services. But the point for Security and Cost
saving is very disappointed which is 3.18 and 2.8 (out of 5) respectively. But the other three
criteria has got good marks from our respondents. So, in conclusion we have some suggestion to
our banking systems regarding survey result.
The contours of banking business have been changing across the globe and the rippling effect of
the same can be expressed in the Indian banking sector as well. The process of liberalization,
privatization, globalization and deregulation has opened new vistas for banks to increase their
revenues by diversifying in to universal banking, investment banking, bank assurance, mortgage
financing, depository services, securitization, personal banking etc. An inevitable result of
78 | P a g e

globalization is that it increases the soundness of financial system as a whole and facilitates
global competition. To survive in this competition the information and communication
technology significantly contributed to the exponential growth and profit of financial institutions
worldwide. Technology is the key to move towards providing integrated banking services to
customers. Indian banks have been late starter in the adoption of technology for automation of
processes and the integrated banking services. Further the banking sector reforms and
introduction of e-banking has made very structural changes in service quality, managerial
decisions, operational performance, profitability and productivity of the banks. There are various
factors which have played vital role in the Indian banking sector for adoption of technology.
Firstly, the economic reforms introduced by the government almost 15 years back which resulted
in opening up of new vistas for banks outside the world. Government relaxed rules and
regulations and simplified the processes for the FII to make investment in the banking and
various sectors. This resulted in inflow of large funds in the economy there by improving the
economy as a whole and banking sector in particular. Due to this reason banks need to provide
such services, which satisfy the urge of foreign investors. Secondly, as a part of reforms, Indian
banking was opened for private sector by which old and new private sector came in to limelight.
They give a big boost to technology and created a platform to use it for back side and front side
operations. When they started adopting it, this put a tremendous pressure on the nationalized and
public sector banks. Thirdly for the economic development of a country, infrastructure plays a
vital role. In the last few years with the development of telecom sector, communication
infrastructure, BPOs; the entire country became a single hub for transmitting the information
and the major cities got connected with each other, which helped in the reduction of total cost.
This had directly helped banks; during the same period banks were busy in connecting their
branches with centralized database and core banking solution by offering anywhere, anytime
services. Fourthly Indian software Industry has also impacted the Indian banking sector. To
provide excellent services to the customers, banks do need to have web based portals, wide area
network (WAN), local area network, internet etc. and all these services are provided by the
Software industry to Indian banking at reasonable prices and at the right time. E-banking is one
of the emerging trends in the Indian banking and is playing a unique role in strengthening the
banking sector and improving service quality. The banking sector in India has introduced E79 | P a g e

banking in a phased manner. Foreign banks are the pioneers in e-banking, private banks
introduced it in a big way and public sector banks are in the process of transformation from
traditional banking to E-banking. E-banking impinges on operations of banking in a number of
different ways. It has enabled the banks to handle the payments electronically and inter-bank
settlement faster and in large volumes. There is increase in customer satisfaction level, reduction
in cost of banking operations, increased productivity and as such there is a tremendous scope for
Indian banks to enlarge their E-banking services which could enhance their competitiveness.
Further, new technology has rapidly altered the traditional ways of doing banking business.
Customers can view the accounts, get account statements, transfer funds, purchase drafts by just
making a few key punches. Availability of ATMs and plastic cards, EFT, electronic clearing
services, internet banking, mobile banking and phone banking; to a large extent avoid customers
going to branch premises and has provided a wider range of services to the customers
80 | P a g e

RECOMMENDATIONS
Increase the use of up to date technology for security
Increase the security process of Mobile Banking
Create better restore point in case of Mobile or SIM loss
Increase the quality of services or quantity relatively to cost of transactions, so that

customer think it is not costly.
Increase awareness among people for the acquiring more customers.
Bank should consider the networking systems of Mobile operator and also the failure of
Electricity in case of ATM transaction.
To solve ATM related transaction problems bank can rely on renewable energy like Solar
Panel.
Make customers acknowledged about banks services and offers.

The study has been focused only on the performance and service quality aspect of ebanking. The impact of e-banking on profitability has been ignored which can give a
good platform for future research.
The present study has assessed the operational performance of the banks on the basis of
employees & others opinion and the e-banking impact on their working conditions in
terms of core banking solution, real time gross settlement system, electronic data
interchange. However to study the operational performance return on asset, return on
equity, comparison between electronic and non-electronic banks can also be the area for
research under this aspect.
81 | P a g e

ANNEXURE
QUESTIONNAIRE
Dear Participant,
I SANJAY KUMAR BHAWANI a student of AIMIT College Bangalore, carrying on a project
S .This exercise forms a part of the project requisites for the fulfillment of MBA course of
Bangalore University. I request you to kindly help me for the same by filling up the following
questionnaire to your knowledge and I assure you that all the information collected will be kept
confidential and shall be used only for academic purposes.
Name: __________________________________ Contact no: ___________________________
Gender:
Male
Female
Age:
18 to 25
25 to 35
Education Qualification:
35 to 45
Under Graduate
45 to 60
Graduate
60 above
Post Graduate
Others: ____________________________________
Please indicate your current occupation:
Student
Employed
Unemployed
Self-employed
Are you using internet banking?
Other ________________
Yes
No
If No what are the reasons?

Dont have Internet Access
Dont have Smart Phone
Threat of Hackers
Not used to it
Dont know how to use it

If yes, how frequently you do your transactions using internet Banking?
At least once in a day
Twice a week
Once in 15 days
At least once a week
> 5 times a month
Others _______
Which category of the banks do you consider as most technologically advanced?

Public sector bank
Private sector bank
82 | P a g e

How frequently do you visit your bank branch per month?
Frequently
Less frequently
Rarely
Dont visit at all
Cant say
What is the main reason that you typically visit your bank branch (please choose the single most
important reason)?
To make a deposit
To get advice for investment options
To inquire about a balance
To withdraw cash
To take drafts To operate locker
Others ________________________
What were your reasons for choosing online banking service? Please select all that apply.
Convenience
To save time
Visiting Branch is very inconvenient
24 hour access to accounts

Others
Which online banking services do you use mostly?

ATM
Mobiles banking
Online money transfer (FD, .A/C)
Cheque issue
Other ___________________
How frequently do you use an Automated Teller Machine (ATM) per month?
1 to 2 times
1to 3 times
8 to 12 times
Over 12 times
3 to 8 times
How frequently do you operate your mobile banking per month?

Once in a month
Twice in a month
Twice a week
Not using
4 times in a month
Which of the following mobile banking features would you use? Please select all that apply.
Balance inquiry
Utility bill payment
Email and text alerts
Order check books
Fund transfers
Other
Do you trust the security of online banking services?

Completely
Somewhat
Dubious
Not at all
Do you think that human contact is important for banking relation?

Completely
Somewhat
Unsure
Not at all
Which attribute of the bank do you value the most?

83 | P a g e

Quality of Service
Technology used
Trust
Location
People
Other
Which factor promotes you to use the new techniques in banking? (Tick all that are applicable)
Cost effectiveness
Ease of use
Technology savvy
Easy access
Internet availability Smart phone
How satisfied are you with working through e-channels?

Highly satisfied
Satisfied
Neutral
Dissatisfied
Highly Dissatisfied
Would you be interested in mobile check deposit service and depositing checks to your bank
accounts via your Smartphone?
Yes, I would consider
Yes, I am very much interested
No, I do not have a Smartphone
No, for other reason
No, I have a Smartphone but do not want to access my bank account for security
concerns
Mobile banking is useful.
Strongly agree
Agree
Disagree
Strongly disagree
Neutral
The usage of mobile banking is easier than the traditional banking.

Strongly agree
Agree
Disagree
Strongly disagree
Neutral
84 | P a g e

BIBILIOGRAPHY
BOOKS & REFERENCES
1
Jatana, R., Uppal, R.K. (2007). E-banking in India: Challenges and opportunities. New Century
Publications.
Kaptan, S.S., Choubey, N.S. (2003). Indian banking in electronic era. Sarup and Sons. New
Delhi.
Singh, K. (2012). E-banking in India: Progress and Prospects. Lambert Academic Publishing.
Srivastava, R. K. (2007). Customers perception on usage of internet banking. Innovative

Marketing, 3(4), 67-73.
Trivedi, M. H., Patel, V. B. (2013). Problems face by customers while using e-banking facilities
in India. International Journal of Scientific Research, 2(3), 121-123.
Sathiye, M. (1999).Adoption of Internet Banking by Australian customers: An empirical

investigation. International Journal of Bank Marketing, 17(07), 101122.
Srinivas, S. (2004). Role of trust in e-banking success. Information Management and Computer
Security, 12(1), 3335.
Websites
Economic times of India
Internet banking books
85 | P a g e

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INTERNET BANKING BENKEFITS AND

CHALLENGES IN AN EMERGING ECONMY

INTERNET BANKING BENKEFITS AND

INTERNET BANKING BENKEFITS AND

INTERNET BANKING BENKEFITS AND

INTERNET BANKING BENKEFITS AND

INTERNET BANKING BENKEFITS AND

INTERNET BANKING BENKEFITS AND

INTERNET BANKING BENKEFITS AND

INTERNET BANKING BENKEFITS AND

INTERNET BANKING BENKEFITS AND

INTERNET BANKING BENKEFITS AND

INTERNET BANKING BENKEFITS AND

INTERNET BANKING BENKEFITS AND

INTERNET BANKING BENKEFITS AND

INTERNET BANKING BENKEFITS AND

INTERNET BANKING BENKEFITS AND

INTERNET BANKING BENKEFITS AND

INTERNET BANKING BENKEFITS AND

INTERNET BANKING BENKEFITS AND

INTERNET BANKING BENKEFITS AND

INTERNET BANKING BENKEFITS AND

INTERNET BANKING BENKEFITS AND

INTERNET BANKING BENKEFITS AND

INTERNET BANKING BENKEFITS AND

INTERNET BANKING BENKEFITS AND

INTERNET BANKING BENKEFITS AND

INTERNET BANKING BENKEFITS AND

INTERNET BANKING BENKEFITS AND

INTERNET BANKING BENKEFITS AND

INTERNET BANKING BENKEFITS AND

PRODUCT OF INTERNET BANKING:

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 ATMs.

INTERNET BANKING BENKEFITS AND

Check balances and statement information

Transfer funds from one account to another

Pay certain bills

Order statements or cheque books

Demand draft request

INTERNET BANKING BENKEFITS AND

Process of Servicing: To access telephone banking,

Enter on the keypad the customer number and password.

INTERNET BANKING BENKEFITS AND

INTERNET BANKING BENKEFITS AND

INTERNET BANKING BENKEFITS AND

INTERNET BANKING BENKEFITS AND

INTERNET BANKING BENKEFITS AND

INTERNET BANKING BENKEFITS AND

INTERNET BANKING BENKEFITS AND

INTERNET BANKING BENKEFITS AND

INTERNET BANKING BENKEFITS AND

INTERNET BANKING BENKEFITS AND

INTERNET BANKING BENKEFITS AND

INTERNET BANKING BENKEFITS AND

INTERNET BANKING BENKEFITS AND

a violation of the Terms contained herein by the user;

Any breach of any covenant or obligation to be performed by the user hereunder.

INTERNET BANKING BENKEFITS AND

INTERNET BANKING BENKEFITS AND