Declaration: Customer Satisfaction After The Computerization of Banking Services" in Partial Fulfillment of

An Assessment on Customer Satisfaction after the computerisation of Banking Services
Declaration
I hereby declare that the work that being presented in this Project entitled “An Assessment on
Customer Satisfaction after the Computerization of Banking Services” in partial fulfillment of
the requirements for the degree of the Master of Business Administration in Human Resource at
Faculty of Management Studies, Lloyd Institute Of Management & Technology is mine original
work carried out by me under the supervision of .
Karan Puri
MBA-HR, 4th Semester (2016-2018)
Exam Roll No: 1617270050
Faculty of Management Studies
Lloyd Institute of Management & Technology
Greater Noida
Karan Puri, MBA(HR), LIMT, 1

Acknowledgement
No task is a single man’s effort. Various factors, situations and persons integrate together to form a
background for accomplishment of a task. The valuable cooperation and guidance, directly or
indirectly of various people has contributed a lot to the successful completion of the Project
undertaken.
This dissertation report entitled “An Assessment on Customer Satisfaction after the
Computerization of Banking Services” has been prepared as a partial fulfilment of Master of
Business Administration – Human Resource (MBA-HR) program at, LIMT. The report is the
outcome of a lot of work and commitment but this would never have been completed without the
incredible amount of help and support I received from many people. I would like to thank, without
implicating, all of them.
I would like to express my sincere gratitude and appreciation to , Lloyd Institute of

Management & Technology, LITM for his valuable guidance throughout this dissertation. I had been
fortunate enough to have him as a wonderful guide and for his open and gracious contribution of
time, counsel, cooperation and support, encouraging and providing all information in completing my
research report successfully.
I express my sincere appreciation to ( ) and all other members of Lloyd Institute of

Management & Technology, LIMT for their advice and unstinted support. Without their help and
cooperation, I could not have completes this dissertation.
Any shortcomings and weakness regarding this project is apologized. Suggestions and
recommendations regarding this project are heartily welcome.
……………………….
Karan Puri
MBA-HR 4th Semester
LIMT,

Table of Content
Executive Summary
Chapter 1
Introduction
1.1 Computerization in Banking Services ........................................................................... 8
1.2 Benefits of Computerization in Bank .......................................................................... 10
1.3 Demerits of Computerization in Bank.........................................….............................13
Chapter 2
Industry Profile
2.1 Meaning of the Bank ................................................................................................... 17
2.2 Different stages of development of Indian Banking .................................................... 18
2.3 Aggregate Performance of the Banking Industry.................................................…...24
Chapter 3
Literature Review.......................................................................................27

Chapter 4
Research Design
4.1 Research Objectives .................................................................................................... 34
4.2 Research Methodology ................................................................................................ 34
4.3 Data Interpretation and Analysis ................................................................................. 36
Chapter 5
Findings and Suggestions
5.1 Findings ....................................................................................................................... 43
5.2 Conclusion ................................................................................................................... 43
5.3 Suggestions .................................................................................................................. 44
5.4 Limitation .................................................................................................................... 44
Bibliography
Annexure
 Questionnaire

Executive Summary
In the growing global competition, the productivity of any business concern depends upon the
behavioural aspect of consumers. This topic deals with customer satisfaction after the
Computerization of Banking Services. The project report contains the information of the services
which have introduced or changed after the computerization in banking services. However, the main
focus is on different facilities that banks provide to their customers. The report begins with the
introduction of the Computerization, industry profile, literature review, etc. A brief of
computerization in banking services is also given and its impact on the Bank.
The main Objective of the Research work was the “To study about the effect of computerization in
terms of time, cost towards customer to ascertain the degree of satisfaction level ”.
The Findings part which is very much important after analysis is made. People like to have their
current account in the bank nearby their home or business unit. Most of the people are unaware of the
several services provided by their banks. Usually people prefer the bank where they have any
acquaintance in the bank. People like to have comfort and easy accessibility in getting the response of
their doubts and problems. Majority of people don’t satisfy with the ATM facilities because most of
the times many ATM are out of order. Majority of people are well satisfied with inside branch
facilities after the computerization. These findings help immensely to developing the work culture of
banks and satisfaction level of the customers.
Suggestion is made after in-depth analysis and observation. Most of the respondents are not satisfied
with the functioning of ATM because most of the times when they go to ATM then they find it out of
order. So banks need to improve the functioning of ATM. Time taken to open an account, deposit or

withdrawal money has been reduced so banks have to maintain it properly. Sometimes problem
occurs during the internet transaction so banks have to improve it.
The report is supported by figures and data wherever necessary with a view to assist the reader in
developing a clear cut understanding of the topic.
I hope this report will be extremely useful for those it is meant. Constructive and healthy suggestions
for improvements of the report will be great fully appreciated.

INTRODUCTION

INTRODUCTION
1.1 Computerization in Banks:
Banks are among the large organizations to invest heavily in computers. Today, the banking in urban
areas is totally dependent on the computers. The computerization in the banking sector is necessary
because of massive volume of different types of transactions. Computers have been installed in
branches at different counters viz saving Bank, Current Account, Cash Credit, Account etc. Cheques
are handled by the computers at clearing houses. By computerization, many problems have been
solved. Balances are automatically tallied in the accounts. Customers can obtain printed statements of
their accounts. Automatic Teller Machines have been installed in the branch premises of various
banks. Different networks viz. BANKNET, SWIFT is also working to expedite the customer service.
In all, banking is handicapped without computers.
Almost a decade ago, automation was introduced into the Indian Banks. During this time, personal
computers and servers have been installed and are being continuously installed along with banking
software packages at various branches. This has automates many of the bank branches’ activities. But
this has still to be met as per the banks expectations and help deliver enhanced customer service. We
have to enter into new markets and deploy new products quickly to get the best out of this
automatization. But the point to be seen is, whether all these products are friendly with the customers
and profitable to the banks. Is this network enough to move both information and money efficiently?
Is the top management of the banks getting the right information on time to enable those taking better
and faster decisions? Whether the technology which we are using today is open enough to integrate
seamlessly with emerging technologies. Such types of questions are arising increasingly in the
present liberalized and highly competitive environment. Many nationalized banks are not ready to
accept the same. All the issues associated with the above automation stem from two main things.
Firstly, the drawbacks of the existing branch banking software and secondly the lack of networking
infrastructure are the main constraints. Both combine to create islands of information which do not
help effective decision making.
Existing branch banking applications do not afford some very important facilities such as the bank
cannot deploy new retail products and new delivery methods quickly and economically. And then the
bank branch cannot have an enterprise – wide view of its assets, liabilities and profitability. Further
the banks cannot integrate corporate and treasury operations to gain synergies. Only a centralized
banking solution can enable the provision of facilities which are critical to the efficient and effective
functioning of a bank. A centralized banking solution does not mean a main frame.
In fact, the latest advanced solutions run on powerful saleable, secure and cost effective systems.
With such centralized solutions, the bank can retain or simply upgrade its existing software and
hardware. These solutions give the bank the flexibility to start computerization at a lower scale with
few branches and scale upwards afterwards and connect hundreds of branches in a multi – tier
manner.
In the present Indian scenario, there is a preponderance of brick and mortar branches and any solution
which does not provide for a minimum data base at a branch for operations purposes will not work
when the number of branches multiplies to higher numbers. Actually, the banks buy only when they
need to expand services or add new facilities. Contrary to this, solutions available on proprietary
mainframe technology do not enable the banks to start small and also have very high incremental
costs. These solutions were designed in an older era and are hence rigid when it comes to
customizing especially for Indian conditions. The proprietary mainframe based solutions do not
provide for a smaller backup database at the branch level. The risk of having all customer data
residing only at the head – office is well known. A more realistic approach is provided by the open
UNIX and Windows NT based solutions. In addition to the central database the head office, there are
lean branch databases which allow customers to avail of banking services even during
communication link failures which is not at all an uncommon phenomenon in India. And because of
the cost effectiveness of the open technology, this combination of the central server and small branch
servers along with their databases is far more economical than the expensive proprietary mainframe
and proprietary database and cost – effective to maintain and upgrade in the longer run.
It is imperative that Indian banks start to seriously consider migrating to a centralized banking
approach which is flexible and based on open technology. It is the most cost – effective way to
increase back office efficiency which would enhance front – office effectiveness. With this
centralized banking customers get more varied and faster services. The customer will have access to
“anywhere banking” wherein anybody can transact against his account from any of the bank’s
designated retail outlets/branches. The customer can have banking as per his convenient timings.
Customers will be able to have comprehensive account sweep and on-line funds transfer facility

which will enable better funds management for large corporate customers. This will remove time
consuming inter branch reconciliation and transactions between branches is sorted and stored at the
head office system and resolved before being posted. A relationship banking practice is possible with
centralized information of the customers. The customers are treated in a more holistic manner rather
than as a set of accounts. With centralized banking, it is easily possible for the customers to avail
custom made & innovative products more quickly. Centralized solutions are usually highly
parameterized software and changing combinations of various parameters give rise to new banking
products. Hence defining and implementing new banking products becomes much faster and easier
for everybody. Further, a centralized system on open and latest technology insulates the bank from
any type of obsolescence by providing a standard based architecture using client server, Web
technologies and distributed objects. The bank also has the option of individually implementing
Forex, securities operations and money markets in day to day operations.
1.2 Benefits of Computerization in Banks:
Automated clearing House (ACH):
In clearing house, computers are employed to handle cheques. The nature of work involved in
clearing operations in voluminous, repetitive, routine in nature. It is complex to clear, exchange and
settles the transactions among several banks. Computers are deployed in clearing house to speed up
the process and clearing the operations quickly and efficiently which is voluminous work. Automated
clearing house (ACH) is an electronic network for financial transaction. ACH processes large number
of debit and credit transaction in batches.
National Automated clearing house Association (NACHA):
It helps to debit transfers for point-of purchase (POP) check conversion. Both government and the
commercial sectors use ACH payment. Business are also increasing using ACH to collect payment
online from customers, rather than accepting credit or debit cards. Rules and regulations governing
the ACH network are established by NACHA and Federal Reserve. The Federal Reserve banks are
collectively the nation's largest automated clearing house operator. FEDACH is the Federal Reserve's
centralized application software used to process ACH transactions.

Electronic Funds Transfer (EFT):
Electronic Funds Transfer (EFT) is the electronic exchange or transfer of money from one account to
another. The exchange takes place between a single financial or across multiple institutions, through
computer based systems. RBI introduced EFT to help banks offering their customers money transfer
service from account to account of any bank branch to any other bank branch. The EFT system
presently covers all the branches of the 27 public sector banks and 55 scheduled commercial banks at
the 15 centres’ viz:- Ahmadabad, Bangalore, Bhubaneswar, Kolkata, Chandigarh, Chennai,
Guwahati, Hyderabad, Japura, Kanpur, Mumbai, Nagpur, new Delhi, Patna, and Thriuvananthpuram.
Core Banking:
Presently, a technological development is closely related to computerization in banks branches for

adoption of the core banking solution (CBS). An important development in the percentage of
branches of public sector banks is implementing CBS. The percentages of such branches are
increased by 79.4 % at end March 2009 to 90% at the end of March-2010.
Automated Teller Machine (ATM):
Even through ATM originally developed for cash dispenses, now it includes many other bank related
functions such as-Cash withdraw, Paying routing bills fees and taxes., Printing bank statement.,
Funds transfer., Purchasing online products, Train tickets reservations, Products from shopping mall,
Donating to charities, Claque processing module, Adding pre-paid cell phone/mobile phone credit,
Advertising channels for own or third party products and services, Pay premium.
Real time gross settlement (RTGS):
Real time means payment transaction is not subjected to any waiting period. In RTGS the transaction
are settled as they are processed. Gross settlement means the transaction is settled on one to one basis
without bunching or netting with any other transaction.

“RTGS is funds transfer system where transfer of money or securities takes place from one bank to
another on a “real time” and on “gross basis”. Once processed, payments are final and irrevocable.
INFINET:
For working of e-banking, it requires various components like- communication channels, servers,
connecting networks etc. Reserve Bank of India (RBI) is having prime control on e-banking services.
RBI has monitor, control of e-banking by establishing and connecting various service providers in
India. Following are the service some of providers- INFINET stand for Indian Financial Network.
There is a satellite based wide area network using VSAT (Very Small Aperture Terminal) technology
set up by the RBI in June 1999. The hub and the Network Management System of the INFINET are
located in the Institute for Development and Research in Banking Technology, (IDRBT) Hyderabad
(an institute set up by the RBI).
Services provided by INFINET:

Among the major applications identified for porting on the INFINET in the initial phase are email,
Electronic Clearing Service - Credit and Debit, Electronic Funds Transfer and transmission of Inter-
city Cheque Realisation advices. Later, other payment system related applications as well as
Management Information System (MIS).
BANKNET:
BANKNET is a internet based communication network. It provides speed of financial transaction.
BANKNET is set up in 1991 by the RBI, this backbone is meant to facilitate transfer of interbank
(and inter-branch) messages within India by Public Sector banks who are members of this network.
Service Centres - At present, service centres are viz. Mumbai, Delhi, Calcutta, Madras, Nagpur,
Bangalore , Pune, Ahmadabad, Kanpur, Lucknow, Chandigarh, Kochi, Jaipur, Bhopal, Patna,
Bhubaneshwar, Thiruvananthapuram, Guwahati, Panaji Jammu. Society for Worldwide Inter-bank
Financial Telecommunication (S.W.I.F.T):
The S.W.I.F.T provides reliable and expeditious telecommunication facilities for exchange of
financial message all over the world. The gateway is in Mumbai and efforts are on to other cities
through leased lines/public data network. The majority of international interbank messages use the

SWIFT network. As of September Institute for Development and Research in Banking Technology
(IDRBT):
The main purpose of IDRBT is to adopt research and development as well as consultancy in the
application of technology to the banking and financial sector in the country. Reserve Bank of India
(RBI) established IDRBT in 1996.
Structured Financial Messaging Solution (SFMS):

Structured Financial Messaging Solution (SFMS) is helpful for inter-bank and intra-bank messaging.
This messaging is useful for applications like Electronic Funds Transfer (EFT), Real Time Gross
Settlement (RTGS), Delivery verses Payment (DVP), Centralised Funds Management System
(CFMS). The SFMS was launched in India on December 14, 2001 by RBI. National Payment
Corporation of India (NPCI):
NPCI consolidate and integrate the multiple systems with varying service levels to nation-wide
uniform and standard business process for all retail payment systems. Also it helps to facilitate an
affordable payment mechanism to benefit the common man across the country and help financial
inclusion.
Mobile Banking:
Mobile banking (also known as M-Banking, SMS Banking etc.) is a term used for performing
balance checks, account transactions, payments, credit applications etc. via a mobile device such as a
or Personal Digital Assistant (PDA).
Demat Card:
The Demat account has to be treated virtually like a account with the difference being that instead of
actual cash there are shares in the account. A beneficiary account is an account opened by the
investors or broker with a Depository Participants (DP) of his choice, to hold shares in dematerialized
(Demat) form and undertake scrip less trading. The investors must open a Demat account with a DP.
Opening a Demat account.
1.3 Demerits of Computerization in Banks:

Nowadays, almost every banking transaction---that once had to be done in person---can be done over
the Internet. Despite the advantages of online banking, such as saving trips to a local bank and
avoiding long lines, a considerable number of people still prefer the more traditional form of banking
in person. Often, the reasons stem from disadvantages that are incurred when banking online.
Internet Connection:
 Not everyone enjoys the luxury of having a stable and fast Internet connection at home. Aside
from having a personal computer or laptop, having stable Internet access at home is a basic
prerequisite to performing electronic banking. Of course, people can always use a public
computer with Internet access; however, the security of public computers is always a concern.
Computer Know-How:
 Conducting a successful electronic banking transaction, like paying bills online, requires basic
computer skills and knowing your way around the Internet. Being computer-literate is not
common to everyone---especially seniors who might not have grown up using computers---
and this is a major disadvantage to electronic banking.
Delayed Statements:
 When performing online banking there is not a standard at which payments made will show
up on your online bank statements; they might show up two to three days later, depending
upon the bank. When banking in person, you can generally get the exact status of your bank
account.
Security Concerns:
 One of the biggest disadvantages of doing electronic banking is the question of security. With
the prevalence of key loggers, phishing emails, trojans and other online threats, it is natural
for people to be concerned with the security of their identity, funds and electronic banking
transactions. Using antivirus and similar programs is not full-proof. People worry that their
bank accounts can be hacked and accessed without their knowledge or that the funds they

transfer may not reach the intended recipients. Although it is rare nowadays with enhanced
security measures, these threats still exist.
Loss of Human Touch:
 Some people still value talking and interacting with bank tellers, managers and other bank
clients. Electronic banking takes the majority of these "human interactions" away, leaving the
banking experience as a very hands-off, impersonal process.

INDIAN BANKING
INDUSTRY

Indian Banking Industry
2.1 Meaning of Bank
A bank is an institution, which accepts deposit from the public and in turn advances loans by creating
credit. In other words, banks are those financial institutions that offer the widest range of financial
services i.e. credit, savings, payment services, and perform the widest range of financial function of
any business firm in the economy. So, with regard various services provided by bank it can also be
considered as “full Service Financial Institution”.
2.2 Different Stages of the Development of Indian Banking
Early History
Banking in India originated in the last decades of the 18th century. The first banks were The
General Bank of India, which started in 1786, and Bank of Hindustan, which started in 1790, both are
now defunct. The oldest bank in existence in India is the State Bank of India, which originated in the
Bank of Calcutta in June 1806, which almost immediately became the Bank of Bengal. This was one
of the three presidency banks, the other two being the Bank of Bombay and the Bank of Madras, all
three of which were established under charters from the British East India Company. For many years
the Presidency banks acted as quasi-central banks, as did their successors. The three banks merged in
1921 to form the Imperial Bank of India, which, upon India's independence, became the State Bank
of India.

Indian merchants in Calcutta established the Union Bank in 1839, but it failed in 1848 as a
consequence of the economic crisis of 1848-49. The Allahabad Bank, established in 1865 and still
functioning today, is the oldest joint stock bank in India. It was not the first though. That honor
belongs to the Bank of Upper India, which was established in 1863, and which survived until 1913,
when it failed, with some of its assets and liabilities being transferred to the Alliance Bank of Simla.
When the American Civil War stopped the supply of cotton to Lancashire from the Confederate
States, promoters opened banks to finance trading in Indian cotton. With large exposure to
speculative ventures, most of the banks opened in India during that period failed. The depositors lost
money and lost interest in keeping deposits with banks. Subsequently, banking in India remained the
exclusive domain of Europeans for next several decades until the beginning of the 20th century.
Foreign banks too started to arrive, particularly in Calcutta, in the 1860s. The Comptoire d'Escompte
de Paris opened a branch in Calcutta in 1860, and another in Bombay in 1862; branches in Madras
and Pondicherry, then a French colony, followed. HSBC established itself in Bengal in 1869.
Calcutta was the most active trading port in India, mainly due to the trade of the British Empire, and
so became a banking center.
The first entirely Indian joint stock bank was the Oudh Commercial Bank, established in 1881 in
Faizabad. It failed in 1958. The next was the Punjab National Bank, established in Lahore in 1895,
which has survived to the present and is now one of the largest banks in India.
Around the turn of the 20th Century, the Indian economy was passing through a relative period of
stability. Around five decades had elapsed since the Indian Mutiny, and the social, industrial and
other infrastructure had improved. Indians had established small banks, most of which served
particular ethnic and religious communities.
The presidency banks dominated banking in India but there were also some exchange banks and a
number of Indian joint stock banks. All these banks operated in different segments of the economy.
The exchange banks, mostly owned by Europeans, concentrated on financing foreign trade. Indian
joint stock banks were generally under-capitalized and lacked the experience and maturity to compete
with the presidency and exchange banks.

The period between 1906 and 1911, saw the establishment of banks inspired by the Swadeshi
movement. The Swadeshi movement inspired local businessmen and political figures to found banks
of and for the Indian community. A number of banks established then have survived to the present
such as Bank of India, Corporation Bank, Indian Bank, Bank of Baroda, Canara Bank and Central
Bank of India.
The fervour of Swadeshi movement lead to establishing of many private banks in Dakshina Kannada
and Udupi district which were unified earlier and known by the name South Canara ( South Kanara
) district. Four nationalized banks started in this district and also a leading private sector bank. Hence
undivided Dakshina Kannada district is known as "Cradle of Indian Banking".
During the First World War (1914-1918) through the end of the Second World War (1939-1945), and
two years thereafter until the independence of India were challenging for Indian banking. The years
of the First World War were turbulent, and it took its toll with banks simply collapsing despite the
Indian economy gaining indirect boost due to war-related economic activities. At least 94 banks in
India failed between 1913 and 1918 as indicated in the following table:
Authorized Capital (Rs. Paid-up capital (RS.
Years Numbers of bank that failed Lakhs) Lakhs)
1913 12 274 35
1914 42 710 109
1915 11 56 5
1916 13 231 4
1917 9 76 25
1918 7 209 1
Post-Independence
The partition of India in 1947 adversely impacted the economies of Punjab and West Bengal,
paralyzing banking activities for months. India's independence marked the end of a regime of the
Laissez-faire for the Indian banking. The Government of India initiated measures to play an active
role in the economic life of the nation, and the Industrial Policy Resolution adopted by the
government in 1948 envisaged a mixed economy. This resulted into greater involvement of the state
in different segments of the economy including banking and finance. The major steps to regulate
banking included:

 The Reserve Bank of India, India's central banking authority, was nationalized on January 1,
1949 under the terms of the Reserve Bank of India.
 In 1949, the Banking Regulation Act was enacted which empowered the Reserve Bank of
India (RBI) "to regulate, control, and inspect the banks in India."
 The Banking Regulation Act also provided that no new bank or branch of an existing bank
could be opened without a license from the RBI, and no two banks could have common
directors.
However, despite these provisions, control and regulations of banks in India except State Bank of
India, continued to be owned and operated by private persons. This changed with the nationalization
of major banks in India on 19 July, 1969.
Nationalization
By the 1960s, the Indian banking industry had become an important tool to facilitate the
development of the Indian economy. At the same time, it had emerged as a large employer, and a
debate had ensued about the nationalization of the banking industry. Indira Gandhi, then Prime
Minister of India, expressed the intention of the Government of India in the annual conference of the
All India Congress Meeting in a paper entitled "Stray thoughts on Bank Nationalization." The
meeting received the paper with enthusiasm.
Thereafter, her move was swift and sudden. The Government of India issued an ordinance and
nationalized the 14 largest commercial banks with effect from the midnight of July 19, 1969.
Jayaprakash Narayan, a national leader of India, described the step as a "masterstroke of political
sagacity." Within two weeks of the issue of the ordinance, the Parliament passed the Banking
Companies (Acquisition and Transfer of Undertaking) Bill, and it received the presidential approval
on 9 August 1969.
A second dose of nationalization of 6 more commercial banks followed in 1980. The stated reason
for the nationalization was to give the government more control of credit delivery. With the second
dose of nationalization, the Government of India controlled around 91% of the banking business of
India. Later on, in the year 1993, the government merged New Bank of India with Punjab National
Bank. It was the only merger between nationalized banks and resulted in the reduction of the number
of nationalized banks from 20 to 19. After this, until the 1990s, the nationalized banks grew at a pace
of around 4%, closer to the average growth rate of the Indian economy.
Liberalization
In the early 1990s, the then Narasimha Rao government embarked on a policy of liberalization,
licensing a small number of private banks. These came to be known as New Generation tech-savvy
banks, and included Global Trust Bank (the first of such new generation banks to be set up), which
later amalgamated with Oriental Bank of Commerce, Axis Bank(earlier as UTI Bank), ICICI Bank
and HDFC Bank. This move, along with the rapid growth in the economy of India, revitalized the
banking sector in India, which has seen rapid growth with strong contribution from all the three
sectors of banks, namely, government banks, private banks and foreign banks.
The next stage for the Indian banking has been set up with the proposed relaxation in the norms for
Foreign Direct Investment, where all Foreign Investors in banks may be given voting rights which
could exceed the present cap of 10%, at present it has gone up to 74% with some restrictions.
The new policy shook the Banking sector in India completely. Bankers, till this time, were used to
the 4-6-4 method (Borrow at 4%; Lend at 6%; Go home at 4) of functioning. The new wave ushered
in a modern outlook and tech-savvy methods of working for traditional banks. All this led to the
retail boom in India. People not just demanded more from their banks but also received more.
Currently (2007), banking in India is generally fairly mature in terms of supply, product range and
reach-even though reach in rural India still remains a challenge for the private sector and foreign
banks. In terms of quality of assets and capital adequacy, Indian banks are considered to have clean,
strong and transparent balance sheets relative to other banks in comparable economies in its region.
The Reserve Bank of India is an autonomous body, with minimal pressure from the government. The
stated policy of the Bank on the Indian Rupee is to manage volatility but without any fixed exchange
rate-and this has mostly been true.

With the growth in the Indian economy expected to be strong for quite some time-especially in its
services sector-the demand for banking services, especially retail banking, mortgages and investment
services are expected to be strong. One may also expect M&A’s, takeovers, and asset sales.
In March 2006, the Reserve Bank of India allowed Warburg Pincus to increase its stake in Kotak
Mahindra Bank (a private sector bank) to 10%. This is the first time an investor has been allowed to
hold more than 5% in a private sector bank since the RBI announced norms in 2005 that any stake
exceeding 5% in the private sector banks would need to be vetted by them.
In recent years critics have charged that the non-government owned banks are too aggressive in their
loan recovery efforts in connection with housing, vehicle and personal loans. There are press reports
that the banks' loan recovery efforts have driven defaulting borrowers to suicide.


2.3 Aggregate Performance of the Banking Industry

Aggregate deposits of scheduled commercial banks increased at a compounded annual average growth
rate (CAGR) of 17.8 percent during 1969-99, while bank credit expanded at a CAGR of 16.3 percent per
annum. Banks’ investments in government and other approved securities recorded a CAGR of 18.8
percent per annum during the same period.
In FY01 the economic slowdown resulted in a Gross Domestic Product (GDP) growth of only 6.0
percent as against the previous year’s 6.4 percent. The WPI Index (a measure of inflation) increased by
7.1 percent as against 3.3 percent in FY00. Similarly, money supply (M3) grew by around 16.2 percent
as against 14.6 percent a year ago.
The growth in aggregate deposits of the scheduled commercial banks at 15.4 percent in FY01 percent
was lower than that of 19.3 percent in the previous year, while the growth in credit by SCBs slowed
down to 15.6 percent in FY01 against 23 percent a year ago.
The industrial slowdown also affected the earnings of listed banks. The net profits of 20 listed banks
dropped by 34.43 percent in the quarter ended March 2001. Net profits grew by 40.75 percent in the first
quarter of 2000-2001, but dropped to 4.56 percent in the fourth quarter of 2000-2001.
On the Capital Adequacy Ratio (CAR) front while most banks managed to fulfil the norms, it was a feat
achieved with its own share of difficulties. The CAR, which at present is 9.0 percent, is likely to be hiked
to 12.0 percent by the year 2004 based on the Basle Committee recommendations. Any bank that wishes
to grow its assets needs to also shore up its capital at the same time so that its capital as a percentage of
the risk-weighted assets is maintained at the stipulated rate. While the IPO route was a much-fancied one
in the early ‘90s, the current scenario doesn’t look too attractive for bank majors.
Consequently, banks have been forced to explore other avenues to shore up their capital base. While
some are wooing foreign partners to add to the capital others are employing the M& A route. Many are
also going in for right issues at prices considerably lower than the market prices to woo the investors.

The Indian banking market is growing at an astonishing rate, with Assets expected to reach US$1 trillion
by 2012. An expanding economy, middle class, and technological innovations are all contributing to this
growth. The country’s middle class accounts for over 320 million people. In correlation with the growth
of the economy, rising income levels, increased standard of living, and affordability of banking products
are promising factors for continued expansion.
The Indian banking Industry is in the middle of an IT revolution, focusing on the expansion of retail and
rural banking. Players are becoming increasingly customer - centric in their approach, which has resulted
in innovative methods of offering new banking products and services. Banks are now realizing the
importance of being a big player and are beginning to focus their attention on mergers and acquisitions to
take advantage of economies of scale and/or comply with Basel II regulation. “Indian banking industry
assets are expected to reach US$1 trillion by 2012 and are poised to receive a greater infusion of foreign
capital,” says Prathima Rajan, analyst in Celent's banking group and author of the report. “The banking
industry should focus on having a small number of large players that can compete globally rather than
having a large number of fragmented players."

LITERATURE
REVIEW

Literature Review
Bandyo Phadhyaya S C 1994 highlighted that the banks should not only satisfy the routine functions
of the customers but also think of innovative ideas of new services to retain the existing customers.
According to Jacob Mankidy 2000 that the ignorance, overpowering, neglecting colleagues by bank
managers are bad and this would lead to low quality of bank services. The study of Lowis B 1990
reviewed the importance of satisfying the present customer’s virtue of offering the quality of services
as pursued by the customers and establishes long term customer relationship. This study has insisted
that the satisfaction of present customer is the pre requisite for any service producing organization, to
which the bank is not an exemption. Ellwood, Peter 1990 argued the service industry like banking
interface between customers and the staffs of the bank is quite close as there is a direction selling of
services. The author also elaborated about the ombudsman scheme, which adds a new dimension to
customer service in banks. The study emphasized that the customer care is emerging, as a critical
factor in the banking industry and banks are fully conscious of the need for attaining the international
standards. The adoption of advanced technologies supplemented by PC banking, web pages, ATM
and call centres are the need of the present banking business to retain the customers positive attitude
towards the banking services Jayachand T.K, (2008). Vimala D 2007 scrutinised the extent to which
facilities provided by private sector banks have resulted in increased customer satisfactory level and
suggested the improvements attained in the existing facilities would increase the customer
satisfactory level.
In any country if customer oriented services becomes failure, this would lead to phenomenal loss to
the government revenues. Customer oriented service helps to meet the national objectives. The
banking companies with top rating in the customer services survive for long run with high returns
(Kuralovian 2006). Navita Nathani, K.K. Agarwal and Umesh Holani 2007 identified that the
customer services of the banking companies with hi-tech services and products such as ATM, Credit
cards, debit cards, smart cards, petro cards, tele banking, electronic transfer, electronic clearing
services, online banking, e-banking, internet banking any time banking and any where banking
customer care and customer concern becomes more important. The success of banking industry is
thus depends on the speed and quality of customer services provided by the banking industries. Man
banking sector has been successful in getting fundamental objectives but it has to make large field of
operations in the year to come. The banking sector should take positive steps and policies in the near
future to satisfy the maximum extent to the banking customers.

In the past decade banks in India have invested heavily in the information technology. Total
expenditure incurred on computerization and development of communication networks by ublic
sector banks(PSBs) alone between September 1999 and March 31, 2009 is Rs. 17897 crore. Today,
information technology seems to be the prime mover of all banking transactions. Trends show that
banks in India have been endeavoring to leverage technology to bring about improvements in; quality
of customer services, scale and specialization in products, alternative sources of income particularly
from fee-based services, geographical reach through communication networks and electronic delivery
channels, risk management practices, housekeeping, internal control systems and regulatory
compliance and cost efficiencies and scale economies. In other words, banks in India started
perceiving IT as a tool to achieve improvement in the efficiency (more output with less input) and
effectiveness (outcomes). An indication of the extent of investment and percolation of IT in different
categories of banks is evident from the data presented in Table.
Although banking is among the most IT-intensive industries and among those that started early to
rely massively on computers for their operations, the large bulk of applied literature on bank
technology includes very few studies on this topic, mainly because of the paucity of appropriate
quantitative information. An analysis of earlier studies on banking, in terms of their focus, method
used as well as the main findings, is presented in Table.


Satish Tanaji Bhosale (2011)-
Banking sector plays a significant role in development of Indian economy. So banks need to
optionally leverage technology to increase penetration, improve their productivity and efficiency,
deliver cost-effective products and services, provide faster, efficient and convenient customer service
and thereby, contribute to the overall growth and development of the country. Technology enables
increased penetration of the banking system, increases cost effectiveness and makes small value
transactions viable. Besides making banking products and services affordable and accessible, it’s
simultaneously ensures viability and profitability of providers. Technology allows transactions to
take place faster and offers unparalleled convenience through various delivery channels.
Use of technology in expanding banking is one of the key focus areas of banks. The banks in India
are using Information Technology (IT) not only to improve their own internal processes but also to
increase facilities and services to their customers. Efficient use of technology has facilitated accurate
and timely management of the increased transaction volume of banks of that comes with larger
customer base. By designing and offering simple, safe and secure technology, banks reach at
doorstep of customer with delight customer satisfaction.
R.D. Sharma & Ekta Verma (2002)
In the age of internet, the satellite explosion, globalisation and the turning millennium, consumer
movement in India has also built inroads in all walks of human life. It is not only a struggle for
protecting consumer rights through legal system but a continuous and broad based social (Kotler
1995), environmental (Barksdale and Darden 1972), international (Schwartz 1977) and
countervailing defensive (Bhagwati 1976) and protective action force for both identifying the areas of
injustices and its remedy through various forms of organised efforts. Consumerism is deemed as an
apparatus, a new social dimension (Poduval 1990) and a protest which aims at unveiling the evil
practices of manufacturers and service providers (Buskirk and Rothe 1970) and giving necessary
strength to consumers seeking to redress, restitute and remedy for the dissatisfaction caused by
products and services not conforming to their expectations (Day and Aaker 1970) and restoring the
balance in the buyer-seller relationship (Stanton et al 1994).
In India, the genesis of the consumer movement began during 1940s with few groups in cities like
Mumbai, Calcutta, Delhi, Vishakapatanam, Chennai, Hyderabad and Surat. The thrust of the

consumer groups at this time was consumer education. A major breakthrough for the movement came
in 1978, when the Consumer Education Research (CERC) came into being under the leadership of
Sh. Manu Bhai Shah. CERC changed the tone of the movement by concentrating primarily on
monopolistic trade. Like other areas of service sector in India, Consumer Banking has also started
receiving adequate attention of the consumer organisations. At present as many as 900 (Girimaji
1999) consumers voluntary organisations are striving for the cause of the consumers of both goods
and services. Table 2 indicates awareness among Indian Consumers who got their grievances
addressed satisfactorily through CERC.
Banks are changing, their business is changing, their ownership pattern is changing and the way they
are managed is changing. Loan-Loss provisioning norms have become mandatory. Compliance with
capital adequacy ratios will drive them deeper into the equity and debt markets and non-compliance
for any reason, will severely threaten their ability to tae on new business. Share holders will
constantly clamour for higher dividend payouts and issue of bonus shares. A new banking
environment has emerged, compelling banks to stay lean, mean and hungry. In this new environment,
technology, data bases and provision of value added services and not in cement and concrete
branches, following a mindless 10 a.m. to 2 p.m. routine. On-line banking thus represents the new
paradigm in banking and by embracing it willingly and confidently; public sector banks have
increased their efficiency, upgraded quality of service and improved productivity. This paradigm
should strategically develop over the year.
Modern banking in India was started by private entrepreneurs. They attracted deposits from public by
paying some interest on the deposits. More than the earnings, the attraction for the common people to
put their money in banks was safe-custody. Thus, the bankers started their business with “other
people’s money”. As the depositors do not draw their entire deposit money at the same time, ban
could use this money to lend to individuals and business forms on which they could collect higher
rates of interest. Thus, the banking business, which was expressed as “your money with our brain”
flourished well. As days passed on, the gained more and more good will and public confidence and
were able to attract larger amounts of deposits from common man. The Banking sector in India
adopted the use of computers only in the early 1980‟s. Due to the computerization in the banking
industry, the banking is taking a different shape as far as the customer service is concerned.
Customers are getting somewhat better service now from the computerized branches. But with the
advent of internet and its usage in the banking service, the customer services have become just the
simplest possible or rather it is now home banking. It is more or less becomes a paper less banking
too. The private banks in India are the foremost in offering these services.

The Internet banking is now quite popular in western counters. But there is a need to assess this
technology trend in the Indian context since it needs a lot of expenditure in providing the
infrastructure, if has to be looked form the mind-set of an Indian Customer in accepting this service
and his capacity of using these. Thus Internet banking has brought the „bank‟ to the „home‟ of the
customers and the „banking hall‟ is the banks in future can be dispensed with Internet banking is the
most “Convenient Banking” in real terms. Computerization would have the effect that calculations
formerly done manually by clerks and officers would now be done by computers in a more quickly
and efficient manner. The introduction of prudential accounting norms, provisioning and greater
transparency in the books of accounts make them more accountable for performance especially in the
context of banks going public almost one third of the staff time has been spent on retrieval, collection
and compilation of data required for various statements. Growths of the Internet and wireless
communication technologies, advances in telecommunications are have dramatically changed the
structure and nature of financial services. However, Internet Banking is only in a rudimentary stage
in India even then, with the purpose of promoting safety and soundness for E-Banking activities and
as a precautionary measure. Reserve Bank of India has issued guidelines to banks on Internet banking
covering.
 The risks associated with Internet banking.
 The technology and security standards for Internet banking.
 Legal issues relating to this new type of activity and
 The regularity and supervisory concerns of Reserve Bank of India.
In the India Scenario, this concept is very new and will take some time to change the mind-set of
Indian consumers to accept it. Such situation is going to come even if consumers are only lukewarm
to the idea, the business will want to push on-line banking / bill paying because to the huge potential
payoff that comes from eliminating paper-based banking / trading / credit cards billing.

RESEARCH
DESIGN

Research Methodology
4.1 Objectives:
1. To analyse the various bank services which have changed because of Computerization.
2. To study the effect of computerization in terms of time, cost towards customer to ascertain the degree
of satisfaction level.
4.2 Research Design:
The study is exploratory till identification of the variables of the study. Later it becomes descriptive for
objectives and conclusion. The data collected is through primary sources with the help of structured
questionnaire, observation and interview and secondary sources such as journals and papers. Sampling
technique used is Convenience Sampling.
SAMPLE DESIGN:
 Population: Bank Account Holders of Varanasi

 Sampling Unit: Individual customer
 Sample size: 150
 Sampling technique: Convenience sampling
 Tools: Structured Questionnaire, Personal Interview.

DATA COLLECTION METHODS
Primary Data:
 General observation method:

Few of the data was easily available by merely observing the day to day operations in the
Bank.
 Questionnaire method:
A questionnaire will be prepared having few questions to get required information for
analysis.
 Personal interview:
Interviews will be conducted with customers of bank to get the required data.
Secondary Data:
Secondary data are collected from various websites, books and journal.

4.3 Data Interpretation and Analysis
ACCOUNT TYPE
Savings &
Current
Current 10%
30% Savings
60%
 It shows that most respondents have savings account in banks.

HOW OLD CUSTOMER IS
Sales
>10yr, 6%
<1yr, 12%
5-10yr, 36% <1yr

1-5yr
1-5yr, 46% 5-10yr
>10yr
 Majority of respondents have account with respective bank <5 year.

Inside Branch:
H∞: After the Computerization of Banks, the satisfaction level of customers has not increased in
terms of time and cost.
Hα: After the Computerization of Banks, the satisfaction level of customers has increased in terms of
time and cost.
One-Sample Test
Test Value = 3
95% Confidence Interval of the

Difference
t df Sig. (2-tailed) Mean Difference Lower Upper
Time Taken To Open A

7.800 149 .000 1.087 .80 1.38
Account
Deposits of money has

7.807 149 .000 1.130 .83 1.43
become easier
Withdrawal of money has

9.986 149 .000 1.348 1.07 1.63
became faster
Entry of transaction in pass-

6.274 149 .000 1.261 .84 1.68
book has become easy
Waiting time to get your

4.750 149 .000 .826 .47 1.19
chance has reduced
Speed of clearance of
6.754 149 .000 1.304 .90 1.70
cheques has become fast
Can deposit or withdraw

money from any branch of the 9.052 149 .000 1.348 1.04 1.66
bank
Document verification time

3.045 149 .006 .652 .21 1.10
has reduced
Information about the

2.787 149 .011 .522 .13 .91
products has become clear
Efficiency of employees has

3.272 149 .003 .696 .25 1.14
improved
Takes care of problems

2.472 149 .022 .435 .07 .80
properly
Willing to help customers,

provide appropriate
3.140 149 .005 .478 .16 .79
information and prompt
services

One-Sample Test
Test Value = 3

Difference
IN_BRANCH 8.616 149 .000 .92391 .7015 1.1463
A one sample t-test was conducted to see whether the satisfaction level of customers in terms of
inside branch facilities has increased or not after the computerization of banks. The result was found
to be statically significant (p=.000). Thus the null hypothesis has been rejected.
ATM:
H∞: Consumers are not satisfied with the ATM facilities.
Hα: Consumers are well satisfied with the ATM facilities.
One-Sample Test
Test Value = 3
95% Confidence Interval of

the Difference
For withdrawing the money,

you use ATM more than Bank 12.305 149 .000 1.522 1.27 1.78
branch
ATMs are functioning

3.447 149 .002 .478 .19 .77
properly
ATMs provide location

5.254 149 .000 .696 .42 .97
convenience
ATMs save your time to stand

7.609 149 .000 1.304 .95 1.66
in line at bank branches

One-Sample Test
Test Value = 3

Difference
ATM 10.321 149 .000 1.00000 .7991 1.2009
A one sample t-test was conducted to see whether the satisfaction level of customers in terms of
ATM facilities has increased or not. The result was found to be statically significant (p=.000). Thus
the null hypothesis has been rejected.
I-banking:
H∞: Consumers are not satisfied with the ATM facilities.
Hα: Consumers are well satisfied with the ATM facilities.
One-Sample Test
Test Value = 3

Difference
Webpage are functioning

8.899 149 .000 1.043 .80 1.29
properly
Website available in the

7.807 149 .000 1.130 .83 1.43
language you can understand
Bank’s site has unrestricted

access to all financial 5.254 149 .000 .696 .42 .97
information.

Bank provides the updated

technology regularly for i- 4.695 149 .000 .591 .33 .85
banking
Bank provides information

about the transactions and 6.236 149 .000 .909 .61 1.21
products
Rely on bank for not misusing

8.386 149 .000 1.091 .82 1.36
your information
Provides financial security

9.514 149 .000 1.136 .89 1.38
and confidentiality
Website is secured for credit

5.238 149 .000 .818 .49 1.14
card information
Website is easy to navigate

5.923 149 .000 .773 .50 1.04
and simple to use
Website performs the service

3.177 149 .005 .455 .16 .75
right at the first time
Website provides a
confirmation of the services 5.020 149 .000 .545 .32 .77
ordered quickly
One-Sample Test
Test Value = 3

Difference
T df Sig. (2-tailed) Mean Difference Lower Upper
I_BANKING 14.152 149 .000 .83136 .7095 .9532
A one sample t-test was conducted to see whether the satisfaction level of customers in terms of I-
Banking facilities has increased or not. The result was found to be statically significant (p=.000).
Thus the null hypothesis has been rejected.

FINDINGS AND
SUGGESTIONS

5.1 Findings
 Many of respondent i.e. 90 respondent (i.e. 60% of total respondent) have saving account and
followed by 45 respondent (i.e. 30% of total respondent) of current account and 15
respondent (i.e. 10% of total respondent) having both saving and current account.
 18 respondent (i.e. 12% of total respondent) have account with banks from less than 1 year
and followed by 69 respondent (i.e. 46% of total respondent) have less than 5year, 54
respondent (i.e. 36% of total respondent) have less than 10 year and 9 respondent (i.e. 6% of
total respondent) have greater than 10 year.
 After applying t-test to check customer’s satisfaction level of the inside branch facilities we
got P=.000. Thus null hypothesis is rejected.
 For the second hypothesis that is Consumers are not satisfied with the ATM facilities we get
P=.000 so this null hypothesis also rejected.
 The third hypothesis which is for I-Banking facilities we again get P=.000 so here again null
hypothesis has been rejected.
5.2 Conclusion:
 Most of the respondents have Saving Account.
 Most of the customers of Banks have connected with respective bank less than 5 years.
 On the hypothesis testing for inside branch facilities, we can conclude that the customers are
well satisfied with the inside branch facilities of the bank after Computerization.
 On the hypothesis testing for ATM facilities, we can conclude that the customers are well
satisfied with ATM facilities of the bank which are started after liberalization of Banks.
 On the hypothesis testing for I-Banking facilities, we can say that the customers are well
satisfied with the Internet Banking facilities of the bank which comes because of
Computerization.

5.3 Suggestions:
 Most of the respondents are not satisfied with the functioning of ATM because most of the
times when they go to ATM then they find it out of order. So banks need to improve the
functioning of ATM.
 Many ATM does not give 100 Rs. notes so banks need to work on it.
 Most of the times in the bank, they have network problem so they need to improve their
server facilities.
 Time taken to open an account, deposit or withdrawal money has been reduced so banks have
to maintain it properly.
 Sometimes problem occurs during the internet transaction so banks have to improve it.
5.4 Limitations:
 To convince the people for a proper interviewing process was difficult.

 Time constraint.
 The analysis of project was based on the basis of sample survey.
 The information obtained for analysis through convenience sampling can be biased.

Bibliography
1. Narasimham Committee (1991) Report on Banking Sector Reforms (Chairman M.

Narasimham) (http://www.rbi.org.in, accessed on 17 May 2004).
2. Reserve Bank of India (2004) ‘Computerisation in banking industry – statistics’

(http://www.rbi.org.in, accessed on 17 May 2004).
3. Sarkar, J. (1999) ‘India’s banking sector: current status, emerging challenges, and policy
imperatives in a globalised environment’, in Hanson, J. and Kathuria, S. (Eds) India: A
Financial Sector for the Twenty-first Century, New Delhi: Oxford University Press, pp. 71–
131.
4. Rangarajan C. “Banking in the High-Tech, Environment” State Bank of Hyderabad, Planning

News Letter, March, 2000, Vol. No. 95, PP 2 – 6.
5. SAHOO, B.: “Banking Technology Vision”, IBA Bulletins June, 1999, Vol. XXI, No. 6, PP 5
– 9.
6. Yogeshwar Kumar: “Electronic Banking” I.B.A. Bulletin, March, 2000, Vol. XX, No. 5, PP
10 – 13.
7. Hemvathi Sekar: “Computerization of Indian Banking Industry, Vol. No. 45, PP 15 – 20.
8. R.B.I. Report on “Trend & Progress of Banking in India”. I.B.A. Bulletin, January 2004. Vol.
XXVI, No.1, Special issue of a Monthly Journal published by the Indian Bank Association.

Annexure
I am Karan Puri an MBA-HR student from LIMT, Greater Noida. As a part of my curriculum,
as dissertation I am doing a research on “Customer Satisfaction after the Computerisation of
Banking Services”. For understanding the details your valuable inputs will be of great help. The
information provided will be analysed for academic purpose and will be kept confidential.
(1) What type of account do you maintain in this branch?
a. Saving account b. Current account c. Saving & Current account
(2) How long have you been a customer with bank (Branch)?
a. < 1 year b. 1 year – 5 year c. 5 year- 10year d. > 10 years
Please answer the following statements by circling the number in the scale which best reflects the
strength of your opinion in relation to the statement.
Key
1: Strongly Disagree, 2: Disagree, 3: Moderately Agree, 4: Agree, 5: Strongly Agree.
Inside Branch:
After the computerisation of banks:
1. Time taken to open an account has become less. 1 2 3 4 5

2. Deposit of money in banks is very easy. 1 2 3 4 5
3. Withdrawal of money has become faster. 1 2 3 4 5
4. Entry of transactions in pass-book has become easy. 1 2 3 4 5
5. Waiting time to get your chance has reduced. 1 2 3 4 5
6. Speed of clearance of cheques/ issuing demand draft/ banker cheques
Etc... has become faster. 1 2 3 4 5
7. Documentation verification time has reduced. 1 2 3 4 5
8. Efficiency of employees has been improved. 1 2 3 4 5
9. The bank takes care of problems properly and compensate for the
problems they create. 1 2 3 4 5
10. The bank is willing to help customers, provide appropriate
information and prompt services. 1 2 3 4 5

Use of ATMs:
(1) For withdrawing the money, you use ATM more than Bank branch. 1 2 3 4 5
(2) ATMs are functioning properly. 1 2 3 4 5
(3) ATMs provide location convenience. 1 2 3 4 5
(4) ATMs save your time to stand in line at bank branches. 1 2 3 4 5
Use of e-Banking:
1. The webpage are functioning properly. 1 2 3 4 5

2. The website available in the language you can understand. 1 2 3 4 5
3. The bank’s site has unrestricted access to all financial information. 1 2 3 4 5
4. The bank provides the updated technology regularly for i-banking. 1 2 3 4 5
5. The bank provides information about the transactions and products. 1 2 3 4 5
6. You can rely on bank for not misusing your information. 1 2 3 4 5
7. The bank provides financial security and confidentiality. 1 2 3 4 5
8. The bank’s site is secured for credit card information. 1 2 3 4 5
9. The bank’s site is easy to navigate and simple to use. 1 2 3 4 5
10. The bank’s site performs the service right at the first time. 1 2 3 4 5
11. The bank’s site provides a confirmation of the services
Ordered quickly. 1 2 3 4 5
Name:
Age:
Income:

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An Assessment on Customer Satisfaction after the computerisation of Banking Services

MBA-HR, 4th Semester (2016-2018)

Exam Roll No: 1617270050

Faculty of Management Studies

Lloyd Institute of Management & Technology

Karan Puri, MBA(HR), LIMT, 1

I would like to express my sincere gratitude and appreciation to , Lloyd Institute of

I express my sincere appreciation to ( ) and all other members of Lloyd Institute of

MBA-HR 4th Semester

Karan Puri, MBA(HR), LIMT, 2

1.1 Computerization in Banking Services ........................................................................... 8

1.2 Benefits of Computerization in Bank .......................................................................... 10

1.3 Demerits of Computerization in Bank.........................................….............................13

2.1 Meaning of the Bank ................................................................................................... 17

2.2 Different stages of development of Indian Banking .................................................... 18

2.3 Aggregate Performance of the Banking Industry.................................................…...24

Karan Puri, MBA(HR), LIMT, 3

4.1 Research Objectives .................................................................................................... 34

4.2 Research Methodology ................................................................................................ 34

4.3 Data Interpretation and Analysis ................................................................................. 36

Findings and Suggestions

5.1 Findings ....................................................................................................................... 43

5.2 Conclusion ................................................................................................................... 43

5.3 Suggestions .................................................................................................................. 44

5.4 Limitation .................................................................................................................... 44

Karan Puri, MBA(HR), LIMT, 4

Karan Puri, MBA(HR), LIMT, 5

occurs during the internet transaction so banks have to improve it.

Karan Puri, MBA(HR), LIMT, 6

Karan Puri, MBA(HR), LIMT, 7

1.1 Computerization in Banks:

Karan Puri, MBA(HR), LIMT, 9

1.2 Benefits of Computerization in Banks:

Automated clearing House (ACH):

National Automated clearing house Association (NACHA):

Karan Puri, MBA(HR), LIMT, 10

Electronic Funds Transfer (EFT):

Presently, a technological development is closely related to computerization in banks branches for

Automated Teller Machine (ATM):

Real time gross settlement (RTGS):

Karan Puri, MBA(HR), LIMT, 11

Services provided by INFINET:

Karan Puri, MBA(HR), LIMT, 12

Structured Financial Messaging Solution (SFMS):

1.3 Demerits of Computerization in Banks:

Karan Puri, MBA(HR), LIMT, 14

Loss of Human Touch:

Karan Puri, MBA(HR), LIMT, 15

Karan Puri, MBA(HR), LIMT, 16

Indian Banking Industry

2.1 Meaning of Bank

2.2 Different Stages of the Development of Indian Banking

Karan Puri, MBA(HR), LIMT, 17

Karan Puri, MBA(HR), LIMT, 18

1914 42 710 109

Karan Puri, MBA(HR), LIMT, 19

Karan Puri, MBA(HR), LIMT, 21