“EVALUATION OF CUSTOMER SERVICES IN

BANKING INDUSTRY”

Submitted by:

Rekha kumari, Roll no. 2249

B.B.A. L.L.B (Hons.)

Submitted to:

Ms. Kirti,

Teacher Associate

This assingment is submitted in the partial fulfilment in Human

Resource Management for the completion of B.B.A.
L.L.B(Hons.) course.

6th September 2019

Chanakya National Law University, Patna

1
 TABLE OF CONTENT
DECLARATION BY THE CANDIDATE.......................................................................3

ACKNOWLEDGEMENT.................................................................................................4

I. Introduction.................................................................................................................5-6

1. Aims and objectives...............................................................................................6

2. Research questions................................................................................................6
3. Hypothesis.............................................................................................................6
4. Limitation and scope.............................................................................................6
5. Research methodology..........................................................................................6
6. Review of literature............................................................................................6-7

II. Role of Banking in Indian Economy.........................................................................7-8

III. Introduction to State Bank Of India.........................................................................8-9

IV. Service Quality.......................................................................................................9-10

V. Dimension of service quality.................................................................................10-11

VI. Importance of customer satisfaction in an organisation............................................11

VII.Customer Expectation...............................................................................................12

VIII.Customer Disconfirmation.......................................................................................12

IX. Analysis of service- Quality Gaps.......................................................................12-13

X. Services being provided in State Bank of India....................................................14-20

XI. Conclusion and suggestions.................................................................................21-22

XII. Bibliography.............................................................................................................22

2
 DECLARATION BY THE CANDIDATE
I, hereby, declare that the work reported in the B.B.A. L.L.B (Hons.) Project Report
entitled “EVALUATION OF CUSTOMER SERVICES IN BANKING
INDUSTRY” submitted at CHANAKYA NATIONAL LAW UNIVERSITY,
PATNA is an authentic record of my work carried out under the supervision of Ms.
Kirti I have not submitted this work elsewhere for any other degree or diploma. I am
fully responsible for the contents of my Project Report

(Signature of the Candidate)

Rekha kumari (2249)

B.B.A. L.L.B., 1sr year
SEMESTER -1st
CNLU, Patna

3
 ACKNOWLEDGEMENT
Writing a project is one of the most significant academic challenges i have ever faced.
Though this project has been presented by me but there are many people who remained
in veil, who gave all support and helped me to complete this project.

First of all I would like to show my gratitude towards my guide Ms. Kirti,Teacher
Associate, under whose guidance, I structured my project.
I owe the present accomplishment of my project to our CNLU librarians, who helped
me immensely with materials throughout the project and without whom I couldn’t have
completed it in the present way.
I would also like to extend my gratitude to our friends and all those unseen hands that
helped me out at every stage of my project.
I thank all of them!

THANK YOU,
REKHA KUMARI

Roll No.- 2249

B.B.A. L.L.B. (Hons.)

1st Semester

4
 INTRODUCTION
Bank plays a very crucial role in the economic development of a country. It is a
financial institution that accepts deposits and utilize those deposits into lending
activities either directly or through capital markets. A bank connects customers which
have capital deficit to those customers with capital surpluses. Basically the banking
industry is a service industry. The banking industry in India has a huge history, which
covers the traditional banking practices from the time of Britishers to the reforms
period, nationalization to privatization of banks and now increasing numbers of foreign
banks in India. Therefore, banking in India has been through a long journey. Rural
banking and micro financing are the two gateways for the Indian banks to grow and
compete with international banks. The use of technology has brought a revolution in the
working style of the banks and it has pervaded each and every aspect of human life in a
drastic manner. Advent of anytime, anywhere banking has become possible due to
technology adoption. Life has changed enormously due to gadgets and appliances becoming
easy to use and that too, in affordable prices.Together with that, the entry of plastic money
has opened new avenues for cashless transactions considered safer and more convenient
than watching every time whether the wallets are still struck in our hip pockets, vanity bags
or not when we move out for shopping or on journeys.1

The banking industry is facing rapid changes in the market such as: new technologies,
economic uncertainties, savage competition, more demanding customers and the changing
climate which lead to a pioneering set of challenges. Banking is a customer oriented service
industry which has witnessed a thorough shift in the market power. The effectiveness and
efficiency became the jargon of the success of the banking operations and its proper
functioning particularly with respect to providing services to the customers. Service is an
intangible thing which is essential from the person who extends it. An effective and
efficient service is one which is extended appropriately by identifying and understanding
the needs of the individual customer from time to time. Customer service is vital interactive
process which needs continuous improvement.

In the era of globalization and liberalization, economic reform has become an indispensable
to remain in the main stream of global economy. In this regard, banking sector being the

1
https://www.businessmanagementideas.com/india/banking-industry/banking-industry-in-india-intro-
need-history-structure-growth-and-challenges/18070

5
backbone of the economy cannot maintain its status as harmony and peace. It is legitimately
feared that the privileged status which banks enjoyed for the last three decades, has already
been changed with entry of new players in the form of private and foreign banks2. Under
these circumstances, the banks will have to face spike challenges to retain the existing
customers and to create new customers. However, success rate depends on the innovative
strategies adopted by the banks including better customer services and adequate fulfilment
of customer expectations.3

Research Questions

1. What is the role of Banking in Indian Economy?

2. What does customer service means in Banking Industry?
3. What is the importance of service quality in Banks?
4. What is the quality of banking services being provided in State Bank of India?

Aims and Objective

The main objective of the study is to evaluate customer services being provided in State
Bank of India.

Hypothesis
Service quality has a positive effect on customer satisfaction and it acts on service
loyalty via customer satisfaction.

Research methodology
The research work is centred on the literature available in the library and online sources.
Hence the method of research is purely doctrinal.

Review of literature
The literature i seek to refer to in course of my research and analysis asof now, are:-

 iib.org.in
This website shall be my reference in order to find any research paper of
different personalities.

2
http://www.iibf.org.in/documents/reseach-report/Report-26.pdf
3
http://www.iibf.org.in/documents/reseach-report/Report-26.pdf

6
  Researchgate.net
Thus website shall be my reference in order to find research paper of different
persons.
 Chron.com
This website shall be my reference in order to find academic writings o the
topic
 Ukessays.com
This website shall be my reference in order to find any kind of essay on any
topic.
 Sbi.co.in
This website shall be my reference in order to find any information about SBI.

ROLE OF BANKING IN INDIAN ECONOMY

The rapid transformation in the banking industry over the last decade has made the industry
stronger, transparent, efficient, faster, disciplined and more competitive. In India, banking
services are playing crucial role in the different dimensions of the economy. Banking
organizations are providing their financial services in different fields such as education,
telecom, real state, medical, hotels, restaurant, transportation, public administration and
especially in wholesale and retail trade.
The government of india, after independence had to focus on many areas among which
one of the important tasks was economic development of the country. In this context,
the industrial policy resolution in 1948 focused on mixed economy,which played an
active role in development of different sectors including banking and finance.
In the era of liberalization, privatisation, and globalisation (LPG) banks play a dynamic
role in contributing to the economic development of the country. Some of the
contributions ofthe banks to the economy of the country are discussed below:
Facilitator for Monetary Policy: The fiscal and monetary policy of a country has a
greater impact on its economic development, and a well-developed banking system is
pre-requisite for successful implementation of the monetary policy.
Promoting Capital Formation: Bnaks are the reservoirs of capital providing loans to
the individuals and business. Pooling of financial financial resources and formation of
capital is encouraged by banks by way of deposits and other activities. This capital is
utilized by entrepreneurs and contributes for the economic development of the country.

7
Encourages Innovation: Entrepreneurship and innovation go hand in hand. Banks
encourage entrepreneurship by attractive credit, which empowers them towards
innovation.
Monetization: The coining of currency or printing of banknotes is done by the cental
bank. In other words; banks are the manufacturers of money which is important for the
economy.
Influence Economic Activity: Banks influence the rate of interest in the money market
through its supply of funds. It can influence a monetary policy with low interest rates
which will tend to stimulate economic activity.
Banking sector has become so important that the absence of banking industry leads to
stagnation in economic development of the country, the savings would sit idle in our
homes, the entrepreneurs would not be in a position to raise money, innovation of new
products or business models will get affected. Ordinary people having dreams of new
car or house will not be able to purchase which will affect automobile and real estate
business.

INTRODUCTION TO STATE BANK OF INDIA

Indian banking was started in June 1806 as Bank of Culcutta existing as largest bank
namely State Bank of India. Reserve bank of India was established in 1935 as central
bank to govern the banking system in India. Indian government nationalizes 14 banks in
1969 and 6 banks in 1980. Now a days, Indian banks are providing financial services in
different constituents of economy to accelerate the growth of development, Deposits,
loans, money transferring etc. services are provided by Indian banks. To make easier
cheaper and faster banking services, all the banks are applying advanced
telecommunication or electronic/ internet facilities and increases level of customers’
satisfaction. Customers’ satisfaction in Indian banks depend upon the various factors
like availability of tangibles, reliability of services, assurance of services,
responsiveness or willingness and empathy of employees to serve to the customers.
Customers’ satisfaction will retain the existing employees and tries to attract new
customers and ultimately resulting in improvement of profitability and sound financial
position. Customers satisfaction is the main factor and responsible for the growth of any
service sector and same applicable in banking sector. Profitability is the relative

8
measurement and measures the earning capacity of an organization. Financial position
reveals the financial soundness of the concern. Growth of an organization or company is
depend upon the increased turnover which is driven by customer’s satisfaction. So,
indirectly customer’s satisfaction increases profitability and improves the financial
soundness of any organization.4Banking sector plays a vital role in growth and
development of Indian Economy.

Customer service means different things in different industries, but it always boils down
the same basic elements- providing superior levels of service to patrons, constituents
and clients. In the banking industry, where technology continues to evolve the way we
handle personal and business finances, quality customer care includes keeping pace with
both live and digital options for handling everything from simple to complex
transactions5.

Customer service has become so vital and significant to consider especially in the
financial business sector whether locally or globally. As banks continue to provide an
increasing number of financial services and products, they face the challenge of
integrating these disparate systems into a coherent, efficient infrastructure, while
delivering the highest level of customer service and convenience without exposing their
customers to the bank's internal system integration problems.6 In India, banking services
are playing significant role in the different dimensions of the economy. Banking
organizations are rendering their financial services in different fields such as education,
telecom, real estate, medical, hotels, restaurant, transportation, public administration
and especially in wholesale and retail trade.

SERVICE QUALITY
‘Service quality’ is a business administration term used to describe achievement in
service. It reflects both objective and subjective aspects of service. The accurate
measurement of an objective aspects of customer service requires the use of carefully
predefined criteria. The measurement of subjective aspect of customer service depends

4
.https://www.researchgate.net/publication/319185023_Customers'_Satisfaction_in_Indian_Banks_Proble
ms_and_Solutions/link/599bf1eeaca272dff128fc2a/download
5
.https://work.chron.com/customer-service-banking-12283.html
6
.https://www.researchgate.net/publication/267406717_Improving_Customer_Service_in_the_Banking_I
ndustry-Case_of_Ghana_Commercial_Bank_GCB-Ghana

9
on the conformity of the expected benefit with the perceived result. This in turn depends
upon the customer’s imagination of the service they might receive and the service
provider’s talent to present this imagined service.
In the retail banking industry the service quality is the main criteria to enhance the
business. Heskett et all., (1997) said that the high quality of service believed to be
influenced by customer value and customer satisfaction, again the customer satisfaction
directly influence the customer loyalty. The customer value, customer satisfaction,
service quality resulting the customer loyalty is the main aspect which the retail banking
industry should concentrate.7

DIMENSIONS OF SERVICE QUALITY

A customer will have an expectation of service determined by factors such as
recommendations, personal needs and past experiences. The expectation of service and
the perceived service result may not be equal, thus leaving a gap. Ten determinants
which may influence the appearance of a gap were described by Parasuraman, Zeithaml
and Berry:
 ‘Competence’ is the possession of the required skills and knowledge to perform
the service.
 ‘Courtesy refer to factors such as politeness, respect, consideration and
friendliness of the contact personnel; consideration for the customer’s property
and clean and neat appearance of contact personnel.
 ‘Credibility’ refers to factors such as trustworthiness, believability and honesty.
It involves having the customer’s best interest at heart. It may be influenced by
company name, reputation and the personal characteristics of the contact
personnel.
 ‘Security’ represents the customer’s freedom from danger, risk or doubt
including physical safety financial security and confidentiality.
 ‘Access’ refers to approachability and ease of contact.
 ‘Communication’ mean both informing customers in a language they are able to
understand and also listening to customers. A company may need to adjust its
language for the varying needs of its customers. Information might include for

7
https://www.ukessays.com/essays/marketing/importance-of-customer-satisfaction-in-banking-
industry-marketing-essay.php

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 example explanation of the service and its costs, the relationship between
services and cost and assurances as to the way problems are effectively
managed. Knowing the customer means making an effort to understand the
customer’s individual needs, providing individual attention, recognizing the
customer when they arrive.
 ‘Tangibles’ are the physical evidence of the service, for instance, the appearance
of the physical facilities, tools and equipment used to provide the service; the
appearance of personnel and communication materials and the presence of other
customers in the service facility.
 ‘Reliability’ is the ability to perform the promised service in a dependable and
accurate manner.
 ‘Responsiveness’ refers to the willingness of employees to help customers and
to provide prompt timely service.8

Importance of Customer satisfaction in an Organisation

“Customer satisfaction is increasingly becoming a corporate goal as more and more

companies strive for quality in their product and services”(Bitner and Hubbert, 1994,
p.78). There is an extreme competition in the market to capture the customers.
Therefore the global companies cannot think competing in the market, only with the
price factor alone. They realised that the customer satisfaction is the most dominant
factor to become the business leader. The ability of the firm to remain in the business is
necessary to win customers over competition since the customer is the pillar of the
business. For example “The retailer Tesco focusing on the customer, managed itself to
increase its market share and profitability by becoming the market leader in the highly
competitive and cost-conscious market place”(Cook, 2002, p. 4). Today the customers
are more educated and well informed. They won’t be diverted from their expectation.
They have wide range of option to choose the product and services. To achieve the
complete satisfaction from product and services the customer makes deligent
comparison between different product and services. The customer’s expectation rises
slowly when they begin to use a better services. Therefore the organisation have

8
http://www.iibf.org.in/documents/reseach-report/Report-26.pdf

11
challenges to maintain the high level of customer satisfaction always. The competitive
market force the firm to raise their customer satisfaction always.

CUSTOMER EXPECTATION
The theories of consumer expectation have been researched by a number of researchers.
Oliver (1980) said that expectations consist of an estimate of likelihood or probability of
occurrence. Expectations of the customer are the based on the evaluation of goodness or
badness of product and services. It is determined that desired performance made by
customer about the levels of performance during a transaction.

The feeling of satisfaction arises when the customer compares their perception of actual
product s or services performance to the past expectations. The difference between past
expectations and actual performance results in the disconfirmation9

CUSTOMER DISCONFIRMATION
The disconfirmation concept are based on the comparison of consumer’s expectation
and observed performance. The disconfirmation has three possibilities

Positive disconfirmation- It occurs when the product or service performance is grater

then the expectation.

Negative disconfirmation- It happens when the product or service performance is less

then the expectation.

Zero disconfirmation- It occurs when the product or service performance is meet or

same as the expectation, then the consumer feels a state of no disconfirmation or zero
disconfirmation.

ANALYSIS OF SERVICE- QUALITY GAPS

The knowledge of how to measure service quality is of great importance for the
companies if they want to succeed on the today’s competitive market.The study aimed
at bringing out the service quality gaps perceived by customers regarding the services

9
https://www.ukessays.com/essays/marketing/importance-of-customer-satisfaction-in-banking-industry-
marketing-essay.php

12
provided by various banks in India. These gaps were captured on various dimensions of
service quality as given in the service quality tool, posited and operationalized service
quality as difference between consumer expectations of ‘what they want’ and their
perception of ‘what they get’. Based on this conceptualization and operationalization, a
service quality measurement scale ‘SERVQUAL’ was proposed. According to the
servqual tool service quality be measured beased on the gap between expectations and
perception of consumers on 5 dimensions, reliability, assurance, empathy,
responsiveness and tangibility.

SERVQUAL GAPS

Identification of gaps (Expectation Vs. Perception) in customer service quality

(parameter-wise gaps) Reliability, assurance,empathy, responsiveness and tangibility.

Chart showing the SERVQUAL Gaps in Banks

1.2

0.8

0.6

0.4

0.2

0
Reliability Gap Responsive Gap Empathy Gap Tangibility Gap Assurance Gap

The above graph captures the servqual gap score of customer service quality on overall
gap dimensions. The gap score is the difference between the mean score of expectation.
The researcher observed that responsive gap is higher (0.957), followed by reliability
gap (0.897), empathy gap (0.863), assurance gap (0.831) and tangibility gap (0.684).

13
The reliability test for the five dimensions was carried out by computing the chronbach
alpha value. The chronbach alpha value is 0.865 shows a very high degree of
reliability.10

SERVICES THAT ARE BEING PROVIDED IN STATE

BANK OF INDIA

1. Broking Services
2. ATM Services
3. Internet Banking
4. E-Pay
5. E-Rail
6. Safe deposit Locker
7. MICR Codes
8. Foreign Inward Remittances
9. Doorstep Banking (DSB) Service

1. BROKING SERVICES

This service helps their investors to buy/sell shares at both NSE and BSE
through their Retail Broking Centres in the cash market.

2. ATM SEVICES

State Bank offers their customers the convenience of over 50,000+ ATMs in
India, the largest network in the country and continuing to expand fast! This
means that their customers can transact free of cost at the ATMs of State Bank
Group (This includes the ATMs of State Bank of India as well as the Associate
Banks - namely, State Bank of Bikaner & Jaipur, State Bank of Hyderabad,
State Bank of Mysore, State Bank of Patiala, and State Bank of Travancore) and
wholly owned subsidiary viz. SBI Commercial and International Bank Ltd.,
using the State Bank ATM-cum-Debit (Cash Plus) card.
ATM Features

 Use the ‘Banking' option on State Bank ATMs and enjoy a host of services:

10
http://www.iibf.org.in/documents/reseach-report/Report-26.pdf

14
  Use the ‘Transfer option on State Bank ATMs and avail of:
 Use the ‘Services' option on State Bank ATMs and avail of:
 Use the ‘Mobile Registration' option on State Bank ATMs to:
 Use the ‘Aadhar Registration' option on State Bank ATMs to:
Customer can also create a Term Deposit using our ATMs. Just click the ‘TDR/STDR'
option:
 Minimum amount of Rs. 10,000/- (valid in singly owned accounts only)
 Cash Withdrawal The most popular service on SBI ATMs enables customers
to withdraw up to a daily limit of Rs. 40,000/- (limit on Classic Debit Card.
Higher value cards permit daily withdrawal limits of up to Rs. 1 lakh per
day)
 Fast Cash A service which enables customers to withdraw their preferred
amounts with just a touch. The options in the denomination of 100, 200, 500,
1000, 2000, 3000, 5000, 10,000 are available.
 Use PIN generation menu to create new PIN/Green PIN.
 Pin Change Use this service to change your password at regular intervals.
 Balance Enquiry Expecting an inflow of funds in your account? Use this
service to check the current available balance in your account. This service is
also available on the main option screen after swiping your card. You can
also ‘Go Green' by selecting the view option as the balance is displayed on
the screen else get a transaction receipt by selecting print.
 Mini statement Keep track of the transactions in your account by availing
this service. Mini-statement gives you an insight into the last 10 transactions
in your account.
 Card to Card Transfer Send cash in a flash from one SBI Debit Card to the
other. Using this free and easy service, you can transfer up to Rs.40,000/- per
day instantly to your loved ones. There is no limit on number of transactions.
The limit of Rs.40,000/- per day will be common across the C2C and Card to
Account facility. All you need is your SBI debit card, your pin and the
beneficiary's debit card number.
 Credit Card Payment (Visa) Use this service to pay the bill of any Visa
credit card.
 Credit Card Payment Make a paperless payment of your SBI credit card bill.

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  SBI Life Premium Payment Pay your SBI Life insurance premium payment
using any of our ATMs.
 Mobile Top-up Talk non-stop and recharge your mobile prepaid connection
from any of our 50000+ ATMs. A popular service amongst customers, it
ensures you never run out of time to catch up with your dear ones over the
mobile network.
 Cheque Book Request Order your cheque book without visiting the branch
or filling in any transaction slips. Remember to update your registered
address in the branch as the cheque book will be delivered at the address
registered in the branch.
 Trust Donation Make a donation to your favourite charity. For example, (a)
Vaishno Devi (b) Shirdi Saibaba (c) Gurudwara Takht Saheb, Nanded (d)
Tirupati (e) Sri Jagannath Temple, Puri (f) Palani, Tamil Nadu (g) Kanchi
Kamakoti Petam, Tamil Nadu (h) Ramakrishna Mission, Kolkata (i)
Mantralaya, Andhra Pradesh (j) Kashi Vishwanath, Banaras (k) Tulja
Bhavani, Mumbai (l) Mahalakshmi, Mumbai and many more.
 Bill payment Use our ATMs to pay your utility bills viz.
Bangalore/Hubli/Chamundeshwari Electricity Supply Company, Karnataka
and Chattisgarh State Electricity Board.
 Mobile Banking Registration Register/Deregister your mobile banking
application using our ATMs.
 Register/link your Aadhar with your account using our ATMs.
 You can register/up-date your mobile number with your account using our
ATMs.
 Inter-mobile Mobile Payment System You can register for the IMPS service
at all our ATMs. This service allows you to transfer money to any other
person with a registered IMPS number instantly.11
3. INTERNET BANKING

www.onlinesbi.com, the Internet banking portal of SBI, enables its retail

banking customers to operate their accounts from anywhere anytime, removing
the restrictions imposed by geography and time. It's a platform that enables the

11
https://www.sbi.co.in/portal/web/services/atm-services

16
 customers to carry out their banking activities from their desktop, aided by the
power and convenience of the Internet.
Using Internet banking services, customer can do the following normal
banking transactions online:
 Funds transfer between own accounts.
 Third party transfers to accounts maintained at any branch of SBI
 Group Transfers to accounts in State Bank Group
 Inter Bank Transfers to accounts with other Banks
 Online standing instructions for periodical transfer for the above
 Credit PPF accounts across branches
 Request for Issue of Demand Draft
 Request for opening of new accounts
 Request for closure of Loan Accounts
 Request for Issue of Cheque Book
 Earn reward points for transactions through Internet Banking
 Apart from these, the other salient value-added features available are:
 Utility bill payments
 Online Ticket Booking for travel by Road, Rail and Air
 SBILIFE, LIC and other insurance premia payments
 SBI and other Mutual funds Investments
 SBI and other Credit Card dues payments
 Tax Payment • Income, Service, State Govt
 Customs Duty Payment
 Online Share Trading (eZ-trade@SBI)
 Online Application for IPO
 Fee Payment to select educational institutions including IITs and NITs12

4. E-PAY
Bill Payments module in Online SBI website https://www.onlinesbi.com.will let their customers pay
their Telephone, Mobile, Electricity, Insurance and Credit Card bills electronically.I f customer’s biller
presents bills online, customer can also give bank AutoPay instructions and bank will pay the bill as
when it falls due.

12
https://www.sbi.co.in/portal/web/services/internet-banking

17
 Billers partnered with SBI Net banking have been categorized as City/State Billers and National
Billers as per their area of operation. Bills generated by any of these billers can be paid instantly,
scheduled or Autopay through SBI Net Banking.13

5. E-RAIL

 The facility has been launched wef Ist September 2003 in association with
IRCTC. The scheme facilitates Booking of Railways Ticket Online. The
salient features of the scheme are as under:
 All Internet banking customers can use the facility.
 You are required to register on www.irctc.co.in. You can select your train
depending on your journey and book your ticket online.
 On giving payment option as SBI, the user will be redirected to
onlinesbi.com. After logging on to the site you will be displayed payment
amount, TID No. and Railway reference no.
 On selecting the payment amount your account will be debited. You will
return to www.irctc.co.in. The ticket with PNR No. will be displayed. You
can print the ticket.
 The ticket can be delivered or collected by the customer.
 The user can collect the ticket personally at New Delhi reservation counter .
 The Payment amount will include ticket fare including reservation charges,
courier charges and Bank Service fee of Rs 10/.
 For cancellation, the has ticket to be presented over reservation counter.
 No cash will be paid at the time of cancellation. Only cancellation ticket will
be issued. Your account will be credited after 4 days.
 SBI shall not be responsible for any delays or disputes regarding tickets.14

6. SAFE DEPOSIT LOCKER

For the safety of customer’s valuables SBI offer their customers safe deposit vault or locker facilities
at a large number of their branches. There is a nominal annual charge, which depends on the size of
the locker and the centre in which the branch is located.

7. MICR CODES (MAGNETIC INK CHARACTER RECOGNITION)

13
https://www.sbi.co.in/portal/web/services/e-pay
14
https://www.sbi.co.in/portal/web/services/e-rail

18
 In MICR technology the information is printed on the instrument with a
special type of ink which is made up of magnetic material. On insertion of
the instrument in the machine, the printed information is read by the
machine. MICR system is beneficial as it minimizes chances of error,
clearing of cheques becomes easy and transfer of funds becomes faster in
order to facilitate operations15.
8. FOREIGN INWARD REMITTANCE
 Drafts in Indian rupees can be purchased from exchange companies or our
correspondents and mailed to the branch where you have your account.
 Telegraphic or wire transfers can be made through our branches abroad [Click
here to Branches] or our correspondents to branches having SWIFT/TT drawing
arrangements. Please indicate your account number clearly.
 Cheques can be deposited for credit of your accounts. These will be collected
and credited to your accounts.
 Travelers cheques can be tendered by you personally during your visit to India.
 If your branch is SWIFT enabled [Click here for SWIFT Branches] you can
transfer funds from anywhere by SWIFT.
 For speedy credit to accounts from Gulf, you can use SBI Express.16

9. DOORSTEP BANKING (DSB) SERVICES

 The following Doorstep Banking Services are available at select

branches w.e.f. 05.01.2018
 Cash pickup.
 Cash delivery.
 Cheque pickup
 Cheque requisition Slip pickup.
 Form 15H pickup.
 Delivery of Drafts.
 Delivery of Term Deposit AdviceDelivery of Term Deposit Advice.
 Life Certificate Pickup.
 KYC documents pickup.

15
https://www.sbi.co.in/portal/web/services/magnetic-ink-character-recognition-micr
16
https://www.sbi.co.in/portal/web/services/foreign-inward-remittance

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 Salient Features of the Scheme:
 Eligibility:
o Senior Citizens of more than 70 years of age and differently abled or
infirm Persons (Having medically certified chronic illness or
disability) including those who are visually impaired.
o Fully KYC compliant account holders.
o Valid Mobile Number should be registered with the account.
o Single account holders and Joint Account Holders with Either or
Survivor/ Former or Survivor.
o Not available for:
 Accounts operated jointly.
 Minor Accounts.
 Accounts of Non-Personal nature.
o Customers having registered address within a radius of 5 KMs from
the Home Branch.
 Registration done at the Home Branch.
 Requests for Doorstep Banking Services should be made only at the Home
Branch till such time development at Contact Centre is completed.
 The amount of cash withdrawal and cash deposit is restricted to Rs 20,000/-
per transaction per day.
 Service charges per visit for Non-financial transactions is Rs 60/+GST and
Rs100+GST for financial transactions.
 Withdrawal will be permitted using cheque / withdrawal form with
Passbook.
 The delivery would be completed on best effort basis but not later than T+1
working day (holidays excluded).17

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https://www.sbi.co.in/portal/web/services/doorstep-banking-services

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 CONCLUSION AND SUGGESTIONS
After going through various literatures, reports and research papers of different
researchers available on internet, the true picture of service quality being provided in
banking industry (State Bank of India) came forth.

The researcher has found her hypothesis true and upright. The hypothesis of this
research was “Service quality has a positive effect on customer satisfaction and it acts
on service loyalty via customer satisfaction”. The study examined the effects of service
loyalty and the mediating role of customer satisfaction on service loyalty within retail
banking industry. The study reveals that there is a great effect of the customer value,
customer loyalty, product and service quality for the genesis of the customer
satisfaction. The fulfilment of the customer expectation and need results in the customer
satisfaction. The customer getting best response from the service provider increase in
the profitability, brand loyalty, word of mouth and buying intention within an
organisation. Customer satisfaction results in the customer retention and customer
buying attitude. The service is provider having challenges in the competitive market to
ensure the best customer satisfaction otherwise it will lead to switch to other service
provider. This makes an organisation obligated towards service quality.

SUGGESTIONS:

The main focus of management’s attention in order to create customer loyalty should be
on customer satisfaction, of which service quality is an important forebear. The service
quality is a very important component to create customer satisfaction, therefore,
banking industry needs to improve its service quality in order to create high level of
customer satisfaction and eventually make their customers become loyal. In this regard,
the banks should improve the service quality through improving various element of
service quality namely: reliability, tangibility, responsiveness, assurance, empathy or
known as SERVQUAL .
There are some strategies that can be applied to the retail banking industry. Firstly one
is on accessibility. The banks should have branch which is easy to access for their
customers so the banking customers will be satisfied if the banks location is easy to
access. Another program to improve accessibility is by introducing ‘weekend banking’.
Weekend banking provides banking services every weekend usually in shopping malls.
This program is not only improving empathy aspect but also responsiveness aspect at
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the same time. Secondly is on service process and bank atmosphere. The banks should
provide a nice environment and ambiance to make the customers feel comfortable and
convenient such as the good layout and interior . A much more convenient lining-up or
queing procedure is also one crucial aspect in service process. Thirdly is on people/staff
aspect. The banks should train the bank people/staff in order to interact with the
customers in a kind, polite way and in a good manner in order to deliver responsiveness
and assurance. The other one is on service complaint handling management. The banks
should solve every customers problems and give a good solution to make them satisfied
and would always be willing to listen and respond to whatever problem the customer
might encounter.

BIBLIOGRAPHY

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 https://www.businessmanagementideas.com/india/banking-industry/banking-
industry-in-india-intro-

 http://www.iibf.org.in/documents/reseach-report/Report-26.pdf
 .https://work.chron.com/customer-service-banking-12283.html
 .https://www.researchgate.net/publication/267406717_Improving_Customer_Ser
vice_in_the_Banking_Industry-Case_of_Ghana_Commercial_Bank_GCB-
Ghana
 https://www.ukessays.com/essays/marketing/importance-of-customer-
satisfaction-in-banking-industry-marketing-essay.php
 http://www.iibf.org.in/documents/reseach-report/Report-26.pdf
 https://www.sbi.co.in/portal/web/services/atm-services
 https://www.sbi.co.in/portal/web/services/internet-banking
 https://www.sbi.co.in/portal/web/services/e-pay
 https://www.sbi.co.in/portal/web/services/e-rail
 https://www.sbi.co.in/portal/web/services/magnetic-ink-character-recognition-
micr
 https://www.sbi.co.in/portal/web/services/foreign-inward-remittance
 https://www.sbi.co.in/portal/web/services/doorstep-banking-services

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