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APPLICATION OF INTERNET BANKING SYSTEM IN SBI
/<SUBMITTED BY>
Partha pratim choudhury
Roll no : 11328503
Reg no:
&
Dhritiman das
Roll no : 11328473
Reg no:
Submitted To:
Department of Computer Science &
in partial fulfillment of the requirements for the degree of
bachelor of Computer application (BCA)
Department of Computer Science
MC college
Barpeta assam
Date: sebtember 20 2021
Supervised by:
Bidyut kumar das
Coordinator & Lecturer
Department of computer science
Declaration
I, Partha pratim choudhury and my project group partner
Dhritiman das declare that the project report entitled
“Application Of Internet banking System In SBI”
submitted to madhab choudhury college barpeta for
consideration of degree of Bachelor of computer
application (BCA) embodies our own work with
suggestion received during the work, which have been
suitably acknowledged
Signed: (..................................), Date:
.........................................…….
Signed: (..................................),
Date: .........................................…….
Approval
I certify that this project “APPLICATION OF INTERNET BANKING SYSTEM IN
SBI” is the original work of the above named candidate and has
been done under my supervision. To the best of my knowledge
and belief, this work which embodies the work of candidates
themselves, has been duly completed, fulfills the requirement of
the ordinance relating to the final year of Bachelor of computer
application (BCA) and is up to standard in respect of content,
presentation and language for being referred to the examiner.
The work has never been submitted anywhere. It’s only
submitted to MC collage barpeta .
Project Advisor:
Signed: ......................................, Date: .....................................
Bidyut kumar das (Supervisor)
professor & Lecturer,
Department of computer science
MC Collage , Barpeta
/
OFFICE OF THE PRINCIPAL
MADHAB CHOUDHURY COLLEGE
BARPETA :: ASSAM :: PIN-781301
Phone: 7099701958 E-mail: mccbarpeta@rediffmail.com
Website:
Ref. No……………………………………… Dated Barpeta the ……………….………….
From: Dr. Prakash Sarma, M.A. Ph..D.
Principal, M.C. College, Barpeta-781301

To Whom It May Concerned
This is to certify that Partha pratim choudhury and Dhritiman das is a student of BCA 6th Semester (affiliated to Gauhati
University) at M.C.College, Barpeta. As per the syllabus, student has to complete a project work in a reputed organization.
The purpose of this project work is only for academic and the student will not claim any remuneration for the same from the
concerned authority. I, therefore, earnestly request you to be kind enough and extend cooperation by providing information
as per the rules permitted by your organisation. The detail of the student is given below for your kind information and
necessary action.
Thanking you.
Partha pratim choudhury

GU ROLLNO : 181-130-0016
REG No: 18039540
Dhritiman das yours faithfully
GU ROLLNO : 181-130-0003
REG NO : 18039527
Principal
M.C.College, Barpeta

Acknowledgements
I would like to express my deepest sense of gratitude to my reverend
teacher and supervisors Bidyut kumar das professor & Lecturer,
Department of Computer Science MC collage barpeta and, for his
untiring guidance, constant supervision, enthusiastic encouragement,
sagacious advice and an effective surveillance throughout the entire
period of my project & thesis work and preparation of the manuscript. I
greatly say thank you. Wish to express my heart full thanks to all of my
honorable teachers of the Department of Computer Science MC
collage I am thankful to Mr Bidyut kumar das , who is having a vast
knowledge of DBMS, System Analysis and Design & Programming
concepts which are the building block of project. I also want to express
my appreciation to my classmates and friends who helped me in one
way or another during the course of developing this project. They
endured the long hours of my absence during the development of this
project. I also wish to thanks to the members of state bank of india for
providing me some banking software specifications and for their cordial
behavior during my project & thesis work. I deeply express my respect
to my parent and my teachers for their blessing and constant inspiration
in every step of my education. I am very thankful to my all friends for
their help and company during the project & thesis work and for giving
me the encouragement to carry out the work. Finally, I express my
gratitude to the Almighty god the most beneficent & the most merciful,
for granting me the opportunity to write this intern project report.
PREFACE
When a computer succeeds when it meets the needs of the people who use it, when it performs flawlessly
over a period of time, when it is easy to modify and even easier to use it can and does change things for the
better. But when software fails – when its users are dissatisfied, when it is error prone, when it is difficult to
change and even harder to use-bad things can do happen. We all want to build software that makes things
better, avoiding the bad things that lurk in the shadow of failed efforts. To succeeds, we need discipline
when software is designed and built. We need an engineering approach.
In earlier time, almost all the Companies and Organizations keep their records on paper and the work was
operated and computed by a human. So, there are chances to make a mistake.
And the paper work may be destroyed by some accident. It is very difficult to search an old Friends,
Relatives, Groups Members details from a large amount of storage files. So, with the help of computerized
system, a user can store and search old data and can save a lot of time and energy.
This website is developed for keeping details of Address of Banking Branches, Net mails, Checking
Account details, Transaction Details, Cheque Status, Stop Payments etc…. Not only keeping details of those
accounts but also storing the transactions with this Banking and Business-Related Information.
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INDEX
CHAPTER NO. TITLE PAGE NO.

1 Profile of SBI 1-11
2 Review of Literature 12-18
3 Conceptual and Theoretical 19-36

Framework
4 Research and Methodology 37-38
5 Data Analysis and Interpretation 39-48
6 Conclusion and Suggestions 49-52
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PROFILE OF SBI
INTRODUCTION:
Online Banking System History:
The concept of online banking as we know it today dates back to the early 1980s, when it was first
envisioned and experimented with. However, it was only in 1995 (on October 6, to be exact) that
Presidential Savings Bank first announced the facility for regular client use. The idea was quickly snapped
up by other banks like Wells Fargo, Chase Manhattan and Security First Network Bank. Today, quite a few
banks operate only solely via the Internet and have no ‘four walls’ entity at all.
In the beginning, its inventors have predicted that it would be only a matter of time before online banking
completely replaced the conventional kind. Facts now prove that this was an overoptimistic assessment –
many customers still harbour an inherent distrust in the process. Others have opted not to use many of the
offered facilities because of bitter experience with online frauds, and inability to use online banking
services.
Be that as it may, it is estimated that a total of 55 million families in America will be active users of online
banking by the year 2010. Despite the fact that many American banks still do not offer this facility to
customers, this may turn out to be an accurate prediction. The number of online banking customers has been
increasing at an exponential rate.
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Initially, the main attraction is the elimination of tiresome bureaucratic red tape in registering for an
account, and the endless paperwork involved in regular banking. The speed with which this process happens
online, as well as the other services possible by these means, has translated into literal boom in the banking
industry over the last five years. Nor are there any signs of the boom letting up – in historical terms, online
banking has just begun.
HISTORY OF STATE BANK OF INDIA:/
The banking development in India has been dividend into many stages. The period from A.D 1806 to A.D
1860 is known as the second phase of banking development In the initial period of this stage three
Presidency banks were founded in different periods by private shareholders. Bank of Calcutta (which
became Bank of Bengal on 2nd January, 1809) was founded on 2nd June.,1806.
Similarly Bank of Bombay was founded on 15 th April, 1840 and Bank of Madras on 1st July,1843. Although
all three banks belonged to private shareholders, the government had some share in their capital. Hence, the
government retained some control over these three banks.
These banks had all the privileges of a government banker, but he government withdrew the right to issue
currency notes for these banks after 1862. Due to the increasing load of Government work. Imperial Bank of
India was sets up in 1921 by merging these three banks in 1921.
However Imperial Bank of India was a commercial bank. It worked as the Central Bank before the
foundation of Reserve Bank of India. So, it had an important position in the banking system of the country.
For being the central bank of country, it retained all details of the governmental transactions and it also
worked as the banker of banks.
But after the foundation of Reserve bank of India in 1935 all the central banking jobs went toit and Imperial
Bank of India started operating fully as a commercial bank. At the same time, it started working as agent of
Reserve Banker of India at those places which did not have the branches of Reserve Bank of India. It was a
strong commercial bank of the country due to its expanded work area.
Despite claiming deep faith of people and a wide area of responsibilities. The working of imperial
bank had the following faults:
1 The maximum share of the bank was retained by foreigners and so they had control over the
management.
2 Due to dominance of foreigners it didn’t have liberty in granting loans to Indian traders.
3 It retained a competitive approach instead of a cooperative approach towards the Indian banks. It
used to open its branches at those places which already had branches of Indian banks.
4 Imperial banks of India were not performing successfully the jobs of central banking. So, there was
an increasing demand of a Central bank.
Due to the above-mentioned demerits of imperial bank of India there were demands of its nationalisation
from time to time. The Government of India had told Rural Banking Enquiry Committee to express its
opinions regarding the proposed nationalisation in1949. This committees had exposed many faults in the
working system of Imperial Bank.
Some of these are as follows:

1 There is no proper government control over Imperial Bank.
2 A few people retained authority in it.
3 There are maximum foreigners’ high officials.

Despite exposing these shortcomings, the committee did knot find it proper to nationalise it. Reserve Bank
of India established an All India Credit Survey Committee in August 1951 to look into the system of rural
credit system A.D. Gorwala was the chairman of the committee.
The report of this committee published in December, 1954., recommended that a strong bank should be
established to make proper arrangements for the rural credit in the country. This bank would be given the
responsibility of expanding its branches in the rural areas of the country for arranging the essential
agricultural credit and providing the benefits of banking facilities to the masses.
The Government of India accepted the recommendations of Gorwala Committee and presented the State
Bank of India bill in the Lok Sabha on 16 th April,1955. After the passing of the bill Imperial Bank of India
was nationalised and renamed as State Bank of India which started working property on 1 st July ,1955. On
this very date all the assets and liabilities of Imperial Bank of India were transferred to State Bank of India.
With this, it was also decided to pay compensation to the shareholders of Imperial Bank of India. The rates
of compensation were Rs. 1,765 and 10 annas for fully paid shares of Rs. 500 and Rs. 431.13 annas and 4
paisa for partly paid shares of Rs. 125. For the payment of compensation it was arranged that every
shareholder would get a payment up to Rs. 10,000 in cash and the remaining would be paid with government
securities having 3.5 percent interest rate.
According to the Section 5(2) of The State Bank of India Act 1955, at least 55 percent of Issued capital of
State Bank of India would stay with Reserve Bank of India and remaining would be issued to the old
shareholders of imperial Bank of India as well as new applicants. Besides, it was also arranged that nobody
would be allowed to keep more than 200 shares.
Section 4 of the State Bank of India Act ,1955 was amended in October, 1933 and marked price of equity
shares was reduced from Rs. 100 per share to Rs. 10 per share. With it the limitation of holding a maximum
of 200 shares by a person was removed. To strengthen its capital base, State Bank of India collected Rs.
3,206 crores by selling shares and bonds in the capital market in December,1993. After this issue the issued
and paid up capital of State Bank of India increased from Rs.200 crores to Rs.473.83 crores.
The Rural Banking Enquiry Committee had also recommended that 10 native banks including Bank of
Baroda and Bank of Rajasthan should be merged with State Bank of India. After the foundation of State
Bank of India, the process of merging of these banks started. At first, Bank of Baroda did not agree for this
merger and then 9 other banks also did not give their approval for merger.
After this unsuccessful attempt, it was proposed that these 9 banks should be made the associate banks of
State Bank of India which was accepted by 8 banks excluding Bank of Rajasthan. Later an Ordinance was
prepared for the Associate Banks also.
According to State Bank of India (Subsidiary Bank) Act,1959 Bank of Hyderabad on 1st October,1959. Bank
of Bikaner, Bank of Indore, Bank of Jaipur and Bank of Travancore on 1 st January,1960, Bank of Mysore on
1st March ,1960 and Bank of Patiala on 1 st April ,1960 and Bank of Saurashtra on 1 st May,1960 were made
associate (Subsidiary) banks of State Bank of India and the term ‘State’ was added before their names. Later
State Bank of Bikaner and State Bank of Jaipur were merged together to form State Bank of Bikaner and
Jaipur on 1st January,1963 for having uniformity in working area.
After this merging the number of associate banks of State Bank of India became 7. But in July,2008 State
Bank of Saurashtra was merged with State Bank of India. In October 2009, the Government of India gave
approval to a merger agreement between State Bank of India and State Bank of Indore. On 15th July,2010 the
Cabinet cleared the merger. On 26th August,2010, State Bank of Indore officially merged agreement into
State Bank of India. Hence, now there are only 5 associate banks of State Bank of India.
OBJECTIVES OF THE STATE BANK OF INDIA:
State Bank of India is also a commercial bank like other commercial banks, but it has been given some
special rights. At those places where there is no branch of the Reserve Bank of India, State Bank of India
acts as its agent. The Government has authoritative control over this bank.
THE MAIN OBJECTIVE BEHIND THE FOUNDATION OF THIS BANK ARE AS FOLLOWS:
1 /In the proposal of the foundation of this bank it was said that State Bank of India should be founded
as a powerful bank for the proper arrangement of rural credit.
2 The objective of this bank is bringing the share of the government in the co-operative credit
arrangement.
3 Promoting the tendency of savings among the rural people along with the urban population
establishing branches in the maximum parts of the country for being the largest bank of the Public Sector.
4 Saving people’s money and time in transaction of money.
5 Promoting the poorest people of the society and providing them a chance of development.
6 Providing economic support to small and medium scale industries to encourage them.
7 Working as the agent of Reserve Bank of India.
CAPITAL AND MANAGEMENT IN STATE BANK OF INDIA
The authorised capital of State Bank of India was Rs.20 crores on 1 st July,1955 which was raised to Rs.200
crores on 1st July,1985 and Rs.1000 crores on 1st July ,1990 At present also it authorised capital is Rs.5000
crores consisting of equity shares of Rs.1 each.
The Management of State Bank of India is run by a Central Board of Director. This Board of 20 members
comprises of 1 Chairman, 1 Vice-Chairman,2 managing Directors and 16 directors. Out of these 16
directors, 6 are selected by private shareholders and 8 by government of India as per the advice of Reserve
Bank of India. Out of the 2 remaining Directors one is appointed by Reserve Bank of India and the other by
Government of India.
These two are the specialist of management co-operation., industries, commerce and finance. The maximum
tenure of the Chairman, Vice-chairman and Managing Directors is 5 years but that of Directors is 4 years.
Although they can be reappointed or re-selected. The Central Board of Directors is time to time advised by
the local boards also. The head office of State Bank of India is in Mumbai and 14 local Head offices and 57
zonal offices are located at important cities spread throughout the country.
FUNCTION OF State Bank of India.

The functions of State Bank of India can be clarified under the following two titles:
1 CENTRAL BANKING FUNCTIONS
However, the central banking functions are performed by Central Bank of Country and State Bank of India
is not the central bank of the India, at places where there are no branches of Reserve Bank of India it
performs the Central Banking functions as the agent of Reserve Bank of India.
State Bank of India performs the following two functions as the agent of Reserve Bank of India
0 It collects deposits from people as a banker of the government and repays them according to the
instructions of the government.
1 It works as the Bank of banks and accept deposits of other commercial banks and also grants them
loans and advances as per their needs. Moreover, it also does the rediscounting of trade bills and arranges
the clearing houses.
2 ORDINARY BANKING FUNCTIONS
Under the ordinary banking functions, State Bank of India performs all those functions which are performed
by other commercial banks.
UNDER THIS CATEGORY FOLLOWING FUNCTIONS ARE PERFORMED
1 ACCEPTING DEPOSITS
Like other commercial banks State Bank of India also accept deposits from people through various accounts.
Besides this, it also accepts deposits from other commercial banks. On 31st March,2015, the total deposits
with it were Rs.15.76.793 crores.
2 INVESTMENT
To increase its income, State Bank of India invests its surplus money in different kinds of securities. Its
investments are in securities of the government of India., securities of state government and securities and
securities of railway etc. On 31st March,2015 its total investment was Rs. 4,64,670 crores.
3 LOANS AND ADVANCES
State Bank of India grants a big part of its deposits as loans and advances. The interest earned on these
loans and advances is a major source of the income of the bank. By 31 st March,2015 a total of Rs.13,00,026
crores were granted by the bank as loans and advances.
4 FOREIGN BANKING FUNCTIONS
State Bank of India has expanded its branches in foreign countries too. The numbers of foreign offices of
State Bank of India were 156 by 31 st March, 2011 which grew to be 191 on 31 st March ,2015. These 173
offices are spread across 36 countries. The offices are comprised of 69 branches, 8 Representative offices,
110 offices of seven foreign banking subsidiaries and 4 other offices.
Out of these 50 branches, the maximum numbers are in U.K. which has 10 branches. Besides it, 7 branches
are in Singapore, 6in Sri Lanka, 9 in Bangladesh, 4 in USA, 2 in Japan, 2 in China, 3 in Maldives,4 in
Behrin and one each in Belgium, France, Germany Israel, Oman, Bahamas Island and the UAE.
3 OTHER FUNCTIONS
The other functions of State Bank of India are:

1 MUTUAL FUNDS
Mutual funds are such a medium of investment in which people’s money is invested in the capital market to
give them maximum return. Many commercial banks and financial institutions have set foot in this field. In
this process State Bank of India has launched its Magnum Scheme.
2 HOUSING FINANCE
In this scheme of granting financial assistance, loans are not granted for commercial purposes but providing
financial assistance for housing facilities is included considering the difficulties of housing in the country.
Like other commercial banks, State Bank of India too grants housing loans.
3 SOCIAL WELFARE FUNCTIONS.
/State bank of India takes interest in Social Welfare also. On different occasion the bank performs the
function of arranging blood donation camps, plantation programs, blanket distribution in winter, arranging
medical check-up, helping the handicaps, providing educational commodities to institutions, such as
providing computers etc.
4 OTHER COMMERCIAL BANKING FUNCTIONS

Besides the above-mentioned functions, State Bank of India performs all those functions which are
performed by other commercials banks,
Some examples of such functions are
Smooth transaction of money, locker facility, selling gold, making employment scheme for the educated
unemployed youths etc.
PROGRESS OR ACHIEVEMENTS OF STATE BANK OF INDIA

State Bank of India has made a good progress in the field of economic development. With it, the social
responsibilities too have been met successfully.
The progress of the bank can be clarified under following titles
1 EXPANSION KOF BRANCHES
State Bank of India has expanded its branches in non-banking areas. The number of its branches kept on
increasing year after year. The total number of branches of SBI group were 20,193 including 5096 branches
of its 5 associates. The number of branches of SBI Group were 19027 in march 2011 and 18240 in March
2010. The number of domestic branches of only SBI on 31 st march ,2015 was 16,333 and its foreign
branches were 191.
2 LOANS AND ADVANCES
State bank of India and its associates have taken a good interest in advancing loans and advances to various
sectors. A total of Rs.12,09,829 crores were granted by SBI in the financial year 2013-14 which was raised
to Rs.13,00,026 crores in the financial year 2014-15. The advances granted by this sum. This way State
Bank of India has contributed a lot in economic development of the country.
3 INCREASE IN DEPOSITES
The deposits with the State Bank of India and its associates have also increased considerably. The deposits
with the State Bank of India on 31 st March 2005 was Rs.3,67,048 crores which got increased to Rs.4,35,521
crores on 31st March,2007 and Rs.7,42,673 crores on 31st March ,2009 and Rs.10,43,647 crores on 31st
March,2012. Similarly, the deposits on 31st March,2014 was Rs.13,94,408 crores which got increased to
Rs.15,76,793 crores on 31st March ,2015.
4 AGRICULTURE DEVELOPMENT BRANCHES
State Bank of India has taken praiseworthy steps for making very fine arrangement of credit for the
agricultural sector. Particularly, it has helped Indian farmers very much by founding Agricultural
Development Branches for the agricultural development. Through these branches farmers are given short
and medium-term loans.
5 INCREASE IN THE NUMBER OF EMPLOYEES.
State Bank of India has increased and expanded not only its branch offices but also the number of employees
and this way provided employment opportunity all over the country. The total number of its employees on
31st March,2012 was 2,15,481 while on 31 st march ,2011 it was 2,22,933 but it was 2,05,896 on 31 st
March,2009. Similarly, on 31st March,2015 number of employees were 2,13,238.
6 INCREASE IN INVESTMENT
State Bank of India has increased its investment every year. Its investment in 2013-14 was Rs.3,74,540
crores which became Rs.4,64,670 crores in 2014-15.
7 INDUSTRIAL FINANCE
However, there are many development banks to give financial aids to bid industries. State Bank of India has
paved the way for the industrial development of the country by giving financial aids to small, medium as
well as large scale industries. Construction industries, consumer industries and basic industries have been
helped in the process of development by it through financial assistance.
8 DEVELOPMENT OF BACKWARD AREAS
State Bank of India has launched the lead Bank scheme in 94 districts for the development of backward
areas. Out of these 82 area industrially backward districts. These areas are now experiencing development
due to this initiative of State Bank of India.
9 INVOLVEMENT IN GOVERNMENT PLANS
Many schemes are announced by the government from time to time for the benefits of the nation. State Bank
of India plays a leading role in the implementation of these schemes.
10 ARRANGEMENT OF FOREIGN EXCHANGE
The trade has become global today. The payment for imports has to be made in foreign currencies. State
Bank of India sells and purchases 20 important currencies of the world. It helps a lot in making foreign
payments. Besides this State Bank of India also grants convenient leans to exporters to promote export.
11 INCREASE IN NET PROFIT
State Bank of India has registered a good growth in acquiring of net profit. In 2008-09 financial years its net
profit was Rs.9,121 crores, in 2009-10Rs.9,166 crores in 2010-11 Rs.8,265 crores and in 2014-15 RS.13,101
crores.
12 INCREASE IN RATE OF DIVIDEND
State Bank has declared dividend to its shareholders at the rate of Rs.35 per share (350%) in the year 2011-
12 as against at the rate of Rs.30 per share (300%) in the previous year 2010-11 in 2014-15 a dividend of
Rs.3,50 per share is declared for the face value of Rs.1 per share i.e.350%.
Thus, it is clear that State Bank of India has shown much progress in a short time. This is why, it is the
biggest commercial bank of the country at present.
/PROHIBITED BUSINESS FOR SBI
Following are the prohibited businesses for SBI:
1 State Bank of India can’t grant loans for a period of time more than 6 months on the collateral of
shares. But it can grant loans to trade and industries for a period of 7 years on the basis of their assets.
2 State bank of India can’t purchase any immovable assets excluding the needs of its offices.
3 State Bank of India can’t do the rediscounting of bills having a maturity period of more than 3
months. but it can do the rediscounting of agricultural bills up to the period of 15 months.
4 State Bank of India can’t do the rediscounting of those bills which don’t have at least two prestigious
signatures.
5 State Bank of India can neither grant loans beyond a pre-decided limitation nor can do rediscounting
of their bills.
REVIEW OF LITERATURE
MEANING OF LITERATURE REVIEW

0 Provides an overview and a critical evaluation of a body of literature relating to a research topic or a
research problem.
1 Analyses a body of literature in order to classify it by themes or categories, rather than simply
discussing individual works one after another.
2 Presents the research and ideas of the field rather than each individual work for author by itself.
A literature review often forms part of a larger research project, such as within a thesis (for major research
paper), or it may be an independent written work, such as a synthesis paper.
PURPOSE OF A LITERATURE REVIEW
A literature review situates your topic in relation to previous research and illuminates a spot for your
research. It accomplishes several goals:
0 Provides background for your topic using previous research.
1 Shows you are familiar with previous, relevant research.

2 Evaluates the depth and breadth of the research in regards to your topic.
3 Determines remaining questions or aspects of your topic in need of research.
RELATIONSHIP BETWEEN A LITERATURE REVIEW AND A RESEARCH PROJECT

Academic research at the graduate level is always part of a dialogue among researchers. As a graduate
student, you must therefore indicate that you know where your topic is positioned within your field of study.
Therefore, a literature review is a key part of most research projects at the graduate level. There is often a
reciprocal relationship between a literature review and the research project for which it is written:
0 A research project is often undertaken in response to a literature review. Doing the literature review
for a topic often reveals areas requiring further research. In this way, writing the literature review helps to
formulate the research question.
1 A literature review help to establish the validity of a research project by revealing gaps in the
existing literature on a topic that offer opportunities for new research.
NATIONAL LITERATURE REVIEW

RAKESH H M & T J (2014)
In their research paper titled “A study on Factors influencing Consumer Adoption of Internet Banking in
India” tried to examine the factors that influence internet banking adoption. Using PLS, a model is
successfully proved and it is found that internet banking is influenced by its perceived reliability, Perceived
ease of use and Perceived usefulness. In the marketing process of internet banking services marketing expert
should emphasize these benefits its adoption provides and awareness can also be improved to attract
consumers’ attention to internet banking services.
AMRUTH RAJ NIPPATLAPALLI (2013)

In his research paper “A study on Customer Satisfaction of Commercial Banks: Case Study on State Bank of
India”. This paper present Customer satisfaction, a term frequently used in marketing, is a measure of how
products and services is defined as “the number of customers, or percentage of total customers, whose
reported experience with a firm, its products, or its services (ratings) exceeds specified satisfaction goals.”
Banking in India originated in the last decades of the 18th century. The first banks were The General Bank of
India. NOW 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.
MR. VIJAY PRAKASH GUPTA & DR.P.K. AGARWAL (2013)

In their research paper “Comparative study of Customer Satisfaction in Public Sector and Private Sector
Banks in India”. This paper gives with the introduction of liberalization policy and RBI’s easy norms several
private and foreign banks have entered in Indian banking sector which has given birth to cut throat
competition amongst banks for acquiring large customer base and market share. Banks have to deal with
many customers and render various types of services to its customers and if the customers are not satisfied
with the services provided by the banks then they will defect which will impact economy as a whole since
banking system plays an important role in the economy of country, also it is very costly and difficult to
recover a dissatisfied customer. Since the competition has grown manifold in the recent times it has become
a herculean task for organizations to build loyalty, the reason being that the customer of today is spoilt for
choice. It has become imperative for both public and private sector banks to perform to the best of their
abilities to retain their customers key catering to their explicit as well as implicit needs. Many a times it
happens that the banks fail to satisfy their customer which can cause huge losses for banks and there the
need of this study arises. The purpose of this research article is to examine the customer satisfaction among
group of customers towards the public sector & private sector banking industries in India. Study is cross-
sectional and descriptive in nature. The researcher tries to make an effort to clarify the Customer Service
satisfaction in Indian banking sector. Descriptive research design is used for this study, where the data is
collected through the questionnaire. The information is gathered from the different customers of the two
banks, viz., PNB and HDFC Bank located in the Meerut Region, Uttar Pradesh, Hundred Bank respondents
from each bank were contacted personally in order to seek fair and frank responses on quality of service in
banks. The service qualify model developed by Zeithamal, Pasuraman and Berry (1988) has been used in the
present study. The analysis clearly shows that there exists wide perceptual difference among Indian (public
sector) banks regarding overall service quality with their respective customers, when compared to Private
sector banks. Whereas the said perceptual difference in private banks is narrow.
MS. NISHA MALIK & MR. CHAND PRAKASH SAINI (Jul 2013)
In their research titled on “Private Sector Banks Service Quality and Customers Satisfaction” A Empirical
study two Private Sector Banks”. The research paper is an effort to examine the relationship between service
quality and customer satisfaction of two private sectors bank of India. Service quality has been described as
a form of attitude that results from the comparison of prospect with recital (Cronin and taylor, 1992,
Parasuraman et al, 1985). Gronroos 1982 argued that customers, while evaluating the quality of service,
compare the service they expect with perceptions of the services they actually receive. Since financial
products offered by various banks are similar by nature then why any particular bank of product of any bank
is preferred than others a matter of interest for academician as well as banking industry. They may be
difference between customers of public and private sector banks, but why are two banks of one sector being
preferred differently by customers. This research study is an effort to find out the answer of these questions.
VIJAY M. KUMBHAR (2011)
In his research paper “Factor affecting the Customer Satisfaction in E-BANKING: Some evidences form
Indian Banks”. This study evaluates major factors (i.e. service quality, brand perception and perceived
value) affecting on customers’ satisfaction in e-banking service settings. This study also evaluates influence
of service quality on brand perception, perceived value and satisfaction in e-banking. Required data was
collected through customers’ survey. For conducting customers’ survey liker scale-based questionnaire was
developed after review of literature and discussion with bank managers as well as experts in customer
service and marketing. Collected data was analysed using principle component (PCA) using SPSS 19.0. A
result indicates that, Perceived Value, Brand Perception, Cost effectiveness, Easy to Use, Convenience,
Problem Handling, Security/Assurance and Responsiveness are important factors in customers satisfaction
in e-banking it explains 48.30 per cent of variance. Contact Facilities, System Availability, Fulfilment,
Efficiency and Compensation are comparatively less important because these dimensions explain 21.70
percent of variance in customers’ satisfaction. Security/Assurance, Responsiveness, Easy to Use, Cost
Effectiveness and Compensation are predictors of brand perception in e-banking and fulfilment, Efficiency,
Security/Assurance, Responsiveness, Convenience, Cost Effectiveness, Problem Handling and
Compensation are predictors of perceived value in e-banking.
POOJA MALHOTRA & BALWINDER SINGH (2009)

In their research paper “The Impact of Internet Banking on bank Performance and Risk: The Indian
Experience”. The paper describes the current state of Internet banking in India and discuss its implications
for the Indian banking industry. Particularly, it seeks to examine the impact of Internet Banking on banks’
performance and risk. Using information drawn from the survey of 85 scheduled commercial bank’s
websites, during the period of June 2007, the results show that nearly 57 percent of the Indian commercial
banks are providing transactional Internet banking services. The univariate analysis indicates that Internet
Banking are larger banks and have efficiency ratios and profitability as compared to non-internet banks.
Internet banks rely more heavily on core deposits for funding than non-Internet banks do. However, the
multiple regression results reveal that the profitability and offering of Internet banking does not have any
significant association, on the other hand, Internet banking has a significant and negative association with
risk profile of the banks.
INTERNATIONAL LITERATURE REVIEW

SHAZA W. EZZL (APRIL 2014)
In their research paper titled “A Theoretical Model for Internet Banking: Beyond Perceived Usefulness and
Ease of Use” tried to inquired different types of electronic banking like ATM’s, telephone banking, and
electronic funds transfer, Internet banking like has evolved from consumer’s needs to have superior access
to banking services clear of most banks teller-staffed, normal operating hours. Additionally, Internet banking
has grown swiftly from the recent and the span increases in e-commerce. Internet banking (IB) continues to
govern the landscape of electronic banking as consumers continue to use IB to complete schedule banking
transactions in addition to conducting on-line sales and purchasing. This study presents a theoretical model
considered to help researchers and practitioners better understand the acceptance and adoption of Internet
Banking. The proposed model maybe particularly useful in developing nations where consumers are loath to
use Internet Banking even when the services are available. However, a review of several studies that have
investigated consumers’ acceptance of Internet Banking services from a multiplicity of perspectives have
not reached a clear consensus of the factors that contribute to overall consumer acceptance and adoption.
The paper concludes with discussions of the managerial implications and avenues for future research.
KARTIKEYA BOLAR (2014)
In their research paper “End user Acceptance of Technology Interface in Transaction Based Environment
“This paper presents Creators and investors of technology need information about the customers’ assessment
of their technology interface based on the features and various quality dimensions to make strategic
decisions in improving technology interfaces and compete on various quality dimensions. The research
study identifies the technology interface dimensions as perceived by the end-users in a transaction-based
environment (viz. Internet banking) in India, using exploratory factor analysis. The influence of these
dimensions on the utility of technology interface and hence the usage is examined by Structural Equation
Modelling. The moderating role of user demographics and technology comfort is also tested. Managerial
implications are discussed.
ANIL KUMAR AND MANOJ KUMAR DASH (2013)

In their research paper “Constructing a Measurement in Service Quality for Indian Banks: Structural
Equation Modeling Approach” … The aim of this paper is to construct a measure in service quality for
Indian banks and establishes a casual relationship of service attributes performance with customer
satisfaction. The SERVQUAL model is used. The quantification of service quality led to the attempt to
construct an index. The index is constructed using Structural Equation Modeling (SEM) and American
Customer Satisfaction Index (ACSI) as the underlying frameworks. The analysis is based on data of 200
bank customers from the Delhi-NCR. An adapted ACSI is enhanced and improved to accommodate two
exogenous constructs. The results indicate that service quality variables are important antecedents of
customer satisfaction and retention. These antecedents of service quality have a positive significantly
relationship with customer satisfaction. The study concludes with an analysis of how different dimensions of
service quality performance attribute impact on customer satisfaction and retention. Such a framework
should provide valuable insights to the bank manager to identify key service performance indicators and to
design more effective and efficient marketing and management strategies to satisfy their customer.
SHILPI KHANDELWAL (2013)

In his research titled on “E Banking: Factors of Adoption in India” This paper presents the last decade has
witnessed a drastic change in the economic and banking environment all over the world. With the economic
and financial sector reforms introduced in the country since early 1990s, the operating environment for
banks in India has also undergone a rapid change. Increasingly, more and more people are switching to
electronic platforms for executing financial transactions. Internet Banking has brought about a 360-degree
change in the entire banking industry. The wider usage of cell phone and internet certainly seems to be
playing a role in blurring physical boundaries, and unlocking a whole new world of opportunities for banks
in tapping newer customer segments and in recording greater volume of transactions. For the banks,
technology has emerged as a strategic resource for achieve in higher efficiency, control of operations,
productivity and profitability. For customers, it is the realization of their anywhere, anytime, anyway
banking dream. This has prompted the banks to embrace technology to meet the increasing customer
expectation and face the tough competition. This research paper is focused on what are the drivers that drive
consumers towards adoption of E banking. How consumers have accepted internet banking and how to
improve the usage rate were the focus of research area in this study.
CONCEPT AND THEORETICAL FRAMEWORK
HISTORY OF INTERNET BANKINNG:

0 The concept of internet banking has been simultaneously evolving with the development of the
World Wide Web. Programmers working on banking data bases came up with ideas for online banking
transactions, sometime during the 1980’s.
1 /In 1983, the Nottingham Building Society, commonly abbreviated and referred to as NBS, launched
the first Internet Banking Service in United Kingdom. This service formed the basis for most of The Internet
banking facilities that followed. The facility introduced by Nottingham Building Society is said to have been
derived from a system known at Prestel that it deployed by the postal service department of United
Kingdom.
HISTORY IN INDIA
0 ICICI was the first bank to initiate the Internet Banking Revolution in India as early as 1997 under
the brand name infinity.
1 ICICI kicked off online banking way back in 1996. But even as a whole, 1996 to 1998 marked the
adoption phase, while usage increased only in 1999-due to lower ISP online charges, increased Penetration
and a Tech Friendly atmosphere.
INTERNET BANKING AT SBI:/

WHERE SBI WAS?
0 In early 1990’s more than 7000 branches were using traditional manual procedures.
1 These manual procedures were inherited from the Imperial Bank.
2 Traditional procedures were evolved over decades
3 Very few changes were brought in those procedures as per the need of time.
4 /In that time, mainframe or mini computers were used for MIS, RECONCILLATION & FUND
SETTLEMENT PROCESS, or we can say that for bank hand operations purpose.
CHANGES BROUGHT IN INFORMATION TECHNOLOGY BY SBI

In the next decade internet facility was provided for individuals
All SBI branches were connected and ATM’s were launch
SERVICES PROVIDED BY SBI YONO:
1 ONLINE SBI ( HYPERLINK "http://WWW.ONLINESBI.COM" WWW.ONLINESBI.COM):
State Bank of India is India’s largest bank with a branch network of over 11000 branches and
2 RETAIL BANKING
The Retail banking applications is an integration of several functional areas, and enables customers to:
0 Issue Demand drafts online
1 Transfer funds to own and third-party accounts
2 Credit beneficiary accounts using the VISA Money Transfer, RTGS/NEFT feature
3 Generate account statements
4 Setup standing instructions

5 Configure profile settings
6 Use e-Tax for online tax payment
7 /Use e-pay for automatic bill payments
8 Interface with merchants for railway and airline reservations
9 Avail DEMAT and IPO services
3 CORPORATE BANKING
The online SBI corporate banking applications provides features to administer and manage corporate
accounts online. The corporate module provides roles such as Regulator, Admin, UP loader, Transactions
Maker, Authorizer and Auditor. These roles have access to the following functions:
0 Manage users, define rights and transaction rules on corporate accounts
1 Access accounts in several branches with a single sign-on on mechanism
2 Upload files to make bulk transactions to third parties, supplier, vendor and tax collection authorities.
3 Use online transactional features such as fund transfer to own accounts, third party payments, and
draft issues
4 Make bill payments over the internet
5 Authorize, modify, reschedule and cancel transactions, based on rights assigned to the user
6 Generate account statement
7 Enquire on transaction details or current balance
4 VALUE ADDED SERVICES
0 Tax payments to central and state governments through site to site integration
1 Supply chain finance (e-VFS Electronic Vendor Finance Scheme)
2 Direct debit facility
3 E collections facilities for:
4 Core banking transactions
5 Internet bank transactions for incoming RTGS/NEFT transactions
6 Internet banking transactions for SBI and associate banks
7 Debit facility where suppliers can directly debit their customer’s account through internet banking
PRODUCTS AND SERVICES

0 /E-Ticketing
1 SBI E-Tax
2 Bill Payment
3 RTGS/NEFT
4 E-Payment
5 Fund Transfer
6 Third Party Transfer
7 Demand Draft
8 Cheque Book Request
9 Account Opening Request
10 Account Statement
11 Transaction Enquiry
12 Demat Account Statement
13 Donation
E-TICKETING:
You can book your railway, air and bus tickets online through SBI Yono.
To book your train ticket, just log on to irctc.co.in and create an ID there at if you do not have one. Submit
your travel plan and book the tickets either.
i-ticket (where the delivery of tickets will be made at your address) or
E-tickets (wherein after successful payment transactions, an e-ticket is generated which
Can be printed anytime. For an e-ticket, the details of photo identity card will be required to be filled in) and
select State Bank of India in the payment options. You will be redirected to Internet Banking site of SBI
(www.onlinesbi.com). After submitting the respective ID and password you can select your account. After a
successful debit, Railways will generate the ticket. E-ticket can be printed by you whereas the i-ticket will
be dispatched by IRCTC at the given address. Service charges @Rs.10/- per transaction shall be levied in
addition to the cost of the ticket. Cancellation of E-ticket can be done by logging on to IRCTC’s site; refund
among will be credited to your account directly within 2-3 days. For cancellation of i-ticket, you shall be
required to submit your ticket at a computerized counter of Railways and on cancellation, the amount shall
be credited back to your account.
You can also book your Air Ticket through the e-ticketing feature. Logon to Indian Airlines website to
make a payment for an e-ticket through State Bank of India. You need to select SBI as the payment option.
The payment request will be redirected to Internet Banking site. The request maybe processed based on
values sent from the airlines website. Once a transaction is processed, an appropriate response will be sent to
airlines site to update the status of the transaction. You can print the E-ticket immediately.
To book bus tickets to destination in Karnataka, log on to the KSRTC website. Provide details about the
start and end points of your journey, date of journey and number of tickets. Verify availability of seats on
the selected date and confirm the transactions. Select ‘Online SBI’ to make the payment. Provide your
credentials and select the SBI account that will be debited for the payment. You are provided a KSRTC
reference number for your e-ticket.
SBI E-TAX
You can pay your taxes online through SBI E-Tax. This facility enables you to pay TDS. Income tax,
indirect tax, Corporation Tax, Wealth Tax, Estate Duty and Fringe benefits tax. Click the e-tax link in the
home page. You are displayed a page with two links Direct Tax and GST.
Click the Direct tax link. You will be redirected to NSDL site where you can select an online challan based
on the tax you wish to pay. Provide the PAN, name and address, assessment year, nature of payment and
bank name. On selecting the bank name as SBI and submitting the form, you will be redirected to the
Internet Banking Site. After submitting the respective ID and password, you can select your account for
making payment of taxes. After payment is successful you can print the E-receipt for the payment. The E-
receipt can be printed at a later date also and the same can be retrieved from: Enquires> Find Transaction >
Status Enquiries > Click on the respective transaction to print the tax receipt.
BILL PAYMENT /
A simple and convenient service for viewing and paying your bills online.
No more late payments
No more queues
No more hassles of depositing cheques
Using the bill payment, you can view and pay various bills online, directly from your SBI account. You can
pay telephone, electricity, insurance, credit cards and others bill from the comfort of your house or office.,
24 hours a day, 365 days a year. Simply log onto http://www.onlinesbi.com/ with your credentials and
register the biller to which you want to pay, with all the bill details. Once the bill is uploaded by the biller,
you can make payment online. You can see ‘how do I’ to learn the steps for using the facility.
You can also set up Auto Pay instructions with an upper limit to ensure that your bills are paid automatically
whenever they are due. The upper limit ensures that only bills within the specified limit are paid
automatically, thereby providing you complete control over these payments.
RTGS/NEFT
You can transfer money from your State Bank account to accounts in other banks using the RTGS/NEFT
service. The RTGS system facilitates transfer of funds from accounts in one bank to another on a “real time”
and on “gross settlement” basis. This system is the fastest possible interbank money transfer facility
available through secure banking channels in India. RTGS transaction requests will be sent to RBI
immediately during working hours post working hours requests are registered and sent to RBI on next
working day. You can also schedule a transaction for a future date. You can transfer an amount of Re.1 lac
and above using RTGS system.
National Electronic Funds Transfer (NEFT) facilitates transfer of funds to the credit account with the other
participating bank. RBI acts as the service provider and transfers the credit to the other bank’s account. This
is a simple, secure, safe, fastest and cost-effective way to transfer funds especially for Retail remittances.
FEATURES & BENEFITS: /
Customers can remit any amount using NEFT Customer intending to remit money through NEFT has to
furnish the following particulars:
IFSC (Indian Financial System Code) of the beneficiary Bank/Branch
Full account number of the beneficiary
Name of beneficiary
The facility is also available through online mode for all internet banking and mobile banking customers.
For corporate customers, bulk upload facility is also available at branches.
IMPS:
Using IMPS, a relatively newer service, users can transfer money immediately from one account to the other
account, within the same bank or accounts across other banks. Similar to NEFT, there is no minimum
amount for transaction, but the maximum* amount possible is Rs.5 lakhs. Users can carry out Person to
Person(P2P), Person to Account (P2A) and Person to Merchant (P2M) transactions from their mobile,
Internet or ATM. One of the advantages of IMPS transaction is that it is available 24*7 and even on
holidays. This can be payments for utility bills, mobile or DTH recharge, credit card bills, grocery bills,
travel ticketing, online shopping and even educational institutes fee payments through this channel./
IMPS facility is provided only on the Internet and online banking services. Few banks may offer SMS-based
IMPS service to mobile banking users. Many of the digital wallets in India utilise IMPS service to credit the
money from an individual’s wallet to his/her bank account.
NEFT RTGS IMPS
Minimum transfer value Rs.1 Rs.2 lacs Rs.1
Maximum transfer value No limit No upper limit Rs.2 lacs
Type of settlement Batches One on one One on one settlement
settlement
Speed of settlement 2 hours Immediately Immediately
Transaction timings 08:00 AM TO 7:00 AM TO 24*7
EXCEPT 2ND AND 4TH 07:00 PM 06:00 PM
SATURDAY, SUNDAY
AND HOLIDAYS
SATURDAY 6 batches 6 batches 24*7
between between
8:00A.M. TO 8:00A.M. TO
1:00P.M. 1:00P.M.
E-PAYMENT
You can pay your insurance premium, mobile phone bills and also you can purchase mutual funds units by
coming from the biller’s website and seeking state bank of India in the payment option.
LIC PREMIUM: For paying premium of LIC policy logon to HYPERLINK "http://www.licindia.com"
www.licindia.com and register your policy details. When the premium is due select State Bank of India in
the make payment option.
SBI Mutual FUND: You can invest in the SBI Mutual Fund schemes online. Logon to www.sbimf.com and
select the scheme in which you want to make investment in the payment option select State Bank of India.
CC Avenue: Enjoy shopping at the CC Avenue Shopping Mall and purchase from a wide variety of products
and services through CC Avenue Certified Vendors. Make payments for your purchases using your Internet
enabled SBI accounts.
FUND TRANSFER:
The Funds Transfer facility enables you to transfer funds within your accounts in the same branch or other
branches. You can transfer aggregating Rs.1 lakh per day to own accounts in the same branch and other
branches. To make funds transfer, you should be an active Internet Banking user with transaction rights.
Funds transfer to PPF account is restricted to the same branch.
Just log on to retail section of the Internet Banking site with your credentials and select the Funds Transfer
link under Payments/Transfers tab. You can see all your online debit and credit accounts. Select the debit
account from which you wish to transfer funds and the credit account into which the amount to be credited.
Enter the amount and remarks. The remarks will be displayed in your accounts statement for this transaction.
You will be displayed the last five funds transfer operations on your accounts. On confirming the
transactions, you will be displayed a confirmation page with the details of the transactions and the option to
submit or cancel the funds transfer request. A reference number will be generated for your record.
THIRD PARTY TRANSFER

You can transfer funds to your trusted third parties by adding them as third-party accounts. The beneficiary
account should be any branch SBI. Transfer is instant. You can do any number of Transactions in a day for
amount aggregating Rs.1lakhs.
To transfer funds to third party having account in SBI, you need to add and approve a third party, you need
to register your mobile number in personal details link under profile section. You will receive a One-Time
SMS password on your mobile phone to approve a third party, If you do not have a mobile number, third
party approval will be handled by your branch. Only after approval of third party, you will be able to
transfer funds to the third party. You can set limits for third party transactions made from your accounts or
even set limits for individual third parties.
DEMAND DRAFT
The Internet Banking applications enables you to register demand drafts requests online. You can get a
demand draft from any of your Accounts (Savings Bank, Current Account, Cash Credit or Overdraft). You
can set limits for demand drafts issued from your accounts or use the bank specified limit for demand draft.
You can opt to collect the draft in person at your branch, quoting a reference to the transaction. A printed
advice can also be obtained from the site for your record.
Alternatively, you may request the branch to courier it to your registered address, and the courier charges
will be recovered from you.
CHEQUE BOOK REQUEST
You can request for a cheque book online. Cheque book can be requested for any of your Savings, Current
Cash Credit, and Overdraft accounts. You can opt for cheque books with 25, 50 or 100 cheque leaves. You
can either collect it from branch or request your branch to send it by post or courier. You can opt to get the
cheque book delivered at your registered address or you can provide an alternate address. Cheque books will
be dispatched within 3 working days from date of request.
Just logon to retail section of the Internet Banking site with your credentials and select the Cheque Book
link under Requests tab. You can view all your transaction accounts. Select the account for which you
require a cheque book; enter the number of cheque leaves required and the mode of delivery. Then, submit
the same.
ACCOUNT OPENING REQUEST
‘Online SBI’ enables you to open a new account online. You can apply for a new account only in branches
where you already have accounts. You should have an INB-enabled account with transactions right in the
branch. Funds in an existing account are used to open the new account. You can open Savings, Current and
Term deposit and Recurring Deposit accounts of Residents, NRO and NRE types.
Just logon to retail section of the Internet Banking site with your credentials and select the New account link
under Requests tab. You can see all types of accounts. Select the account and account type you wish to open
and submit the same. Then, you need to select the branch and enter the initial amount to open the account.
You can select any of your accounts for debiting the initial amount. Then, submit the transaction. Your new
account opening request will be processed by the branch.
ACCOUNT STATEMENT
The Internet Banking application can generate an online, downloadable account statement for any of your
accounts for any date range and for any account mapped to your username. The statement includes the
transaction details, opening, closing and accumulated balance in the account. You can generate the online
account statement for any date range or for any month and year. The account statement can be viewed
online, printed or downloaded as an Excel or PDF File. You also have the option to select the number of
records displayed in each page of the statement. The options are 25,50,75, 100 and ALL.
TRANSACTION ENQUIRY
‘Online SBI’ provides features to enquire status of online transactions. You can view and verify transactions
details and the current status of transactions. Your VISA transactions can also be viewed separately. Just log
on to retail section of the Internet Banking site with your credentials and select the Status Enquiry link under
the Enquiries tab. You will be displayed all online transactions you have performed. To view details of
individual transactions, you need to click the Transaction Reference number link. You are displayed the
debit and credit account details, transaction amount, narration and transaction status.
DEMAT ACCOUNT STATEMENT
‘Online SBI’ enables you to view Demat account statement and maintain such accounts. The bank acts as
your depository participant. In the third-party site, you can mark a lien on your Demat accounts and use the
funds to trade on stock using funds in your SBI savings account. You can view Demat account details, and
generate the following statements; statement of holding, statement of transactions, statement of billing.
DONATION
You can make donation to religious and charitable institution by using Internet Banking of SBI. Simply log
on to htttp://www.onlilnesbi.com/ with your credentials and go to Payment and transfer and click on make
donation link. After selecting the debit account select the religious /charitable institution that you want to
offer donation. After successful payment you can print an E-receipt for the donation made.
SBI Net banking -How to register, Login, Check balance & steps to transfer money
State Bank of India (SBI) the largest public sector in India, offers the net banking facility to its customers,
both retail customers as well as corporate customers. In a recent move, State Bank of India leads five other
public sectors Banks such as State Bank of Mysore, State Bank of Hyderabad, State Bank of Patiala, State
Bank of Travancore, and State Bank of Bikaner and Jaipur. Here is a detailed breakdown of the different
aspects of SBI net banking.
HOW TO ACCESS THE INTERNET BANKING OF STATE BANK OF INDIA(SBI)
1 HOW TO REGISTER FOR SBI NET BANKING?
To register for SBI Net banking Individual account holders must satisfy the following criteria to be able to
register for net banking services online.
0 You must have a savings account with SBI.
1 You must have linked your mobile number with the bank account.
2 You must have a valid ATM Card.
3 To register online, you should not apply for the facility at the branch.
Follow the below steps to register for net banking facility with SBI online.
Step 1: Visit the official internet banking website at HYPERLINK "https://www.onlinesbi.com/"
https://www.onlinesbi.com/.
Step 2: Click on ‘New User Registration/Activation’
Step 3: A pop-up window will appear on the screen to confirm that you have not received an internet
banking kit. Click on ‘OK’.
Step 4: Select the ‘New User Registration’ option from the drop-down menu and click ‘Next’.
Step 5: In the next screen that appears, fill up the details such as account number, CIF number, branch code,
country, registered mobile number, and the facility you want to sign-up for. Also, enter the captcha code
correctly. If you are unable to figure out the branch code, you can find it under the ‘Get Branch Code’
option. You must enter the state and the branch name to get the branch code.
Step 6: Under the ‘Facility Required’ field, you can select one of the following options: View, limited
transactions, and full transactions.
Step 7: Click on ‘Submit’.
Step 8: An OTP will be sent to the registered mobile number. Enter the OTP on the screen and click on
‘Confirm’.
Step 9: Select the option ‘I have my ATM card’ and click ‘Submit’.
Step 10: Now, enter the ATM Card details on the screen and click ‘Submit’.
Step 11: A temporary username will be displayed on the screen, take note of this username.
Step 12: Set a password that adheres all the rules such that you can remember it. Click ‘Submit’ to complete
the registration process.
2 HOW TO LOGIN TO SBI NET BANKING? Step 1: Visit the
official website https://www.onlinesbi.com/ to see the login page for both personal banking as well as
corporate banking.
Picture/
Step 2: Click on the ‘LOGIN’ button on the personal banking sections.
/Picture/
Step 3: Enter your username and password details on the screen and click ‘Login’ to access your account.
Picture/
Step 4: you will be redirected to a page where you can access all information related to your account./
3 HOW TO CHECK ACCOUNT BALANCE IN SBI NET BANKING?
Once you log into your SBI net banking account, you can click on the ‘Account Summary’ option available
under the ‘Quick Links’. You will see a list of all accounts you hold with the bank. Click on the ‘Click here
for balance’ option against the account to know balance.
4 STEPS TO TRANSFER MONEY VIA SBI NET BANKING PORTAL
Before transferring money online, you have to make sure that the recipient is added as a beneficiary on your
account; You require the details such as beneficiary name, account number, bank name, and IFSC. Follow
the steps below to initiate a money transfer:
Step 1: Log in to the Online SBI portal.
Step 2: Click on ‘Other Bank Transfer’ under ‘Payment/Transfer’ tab if you wish to transfer money to
another bank’s account. /
Step 3: If you wish to transfer to an account within the same bank, click ‘Accounts of others-within SBI’.
Step 4: A screen will appear according to your selection, choose type of transactions you would like to make
and click ‘Proceed’.
Step 5: From the list, choose the account you wish to make the fund transfer from.
Picture/ Step 6: Now, enter the amount you wish to transfer and remarks if any.
Step 7: Choose the beneficiary account to transfer the funds.
Step 8: You can also instruct when the fund transfer must take place using the option available.
Step 9: Agree to the terms and conditions by selecting the checkbox and click ‘Submit’.
Step 10: The following screen will show all the details you entered for review. Once you are sure that all the
details are correct, click ‘Confirm’.
Step 11: You will receive a high-security password on the registered mobile number. Enter this password
and click ‘Confirm’ to complete the authentication process.
Step 12: A confirmation message will be displayed on the screen to mark the completion.
MERITS AND DEMERITS OF INTERNET BANKING:
1 MERITS:
1 /CONVENIENCE
Unlike your corner bank, online banking sites never close; they’re available 24 hours a day, seven days a
week, and they’re only a mouse click away.
2 UBIQUITY
If you’re out of state or even out of the country when a money problem arises, you can log on instantly to
your online bank and take care of business, 24/7.
3 TRANSACTION SPEED
Online bank sites generally execute and confirm transactions at or quicker than ATM processing speeds.
4 EFFICIENCY
You can access and manage all of your bank accounts, including IRAs, CDs, even securities from one secure
site.
5 EFFECTIVENESS
Many online banking sites new offer sophisticated tools, including account aggregation, stock quotes, rate
alerts and portfolio managing programs to help you manage all of your assets more effectively. Most are
also compatible with money managing programs such as Quicken and Microsoft Money transfer.
2 ISSUES WITH INTERNET BANKING: /
1 START-UP MAY TAKE TIME:
In order to register for your bank’s online program, you will probably have to provide ID and sign a form at
a bank branch. If you and your spouse wish to view and manage your assets together online, one of you may
have to sign a durable power of attorney before the bank will display all of your holdings together.
2 LEARNING CURVE:
Banking sites can be difficult to navigate at first. Plan to invest some time and reads the tutorials in order to
become comfortable in your virtual lobby.
3 BANK SITE CHANGES:
Even the largest banks periodically upgrade their online programs, adding new features in unfamiliar places.
In some cases, you may have to re-enter account information.
4 THE TRUST THING:
For many people, the biggest hurdle to online banking is learning to trust it. Did my transaction go through?
Did I push the transfer button once or twice? Best bet: always print the transaction receipt and keep it with
your bank records until it shows up on your personal site and your bank statement.
SERVICES PROVIDED UNDER INTERNET BANKING/

0 Online Bill Payment
1 Personal Home Page
2 Ticket Booking
3 Prepaid Mobile Recharge
4 Market Watch
5 Investment Services
6 Online Applications
7 Personal Update
RESEARCH & METHODOLOGY

PURPOSE
The main objective of the study is:
俾 To understand the concept of Internet Banking and Importance, to bank as well as customers.
俾 /To get aware of various aspects of net banking
俾 To build up SWOC analysis of Internet banking of SBI
俾 To build up various solutions for drawbacks in net banking
DESIGN
This research paper is based on secondary data which is to be collected from the official website of State
Bank of India and Reserve Bank of India.
SCOPE OF STUDY
The study is made taking considerations of whole State Bank of India. It investigates about all applications
of online banking in SBI. It would help society to understand the usefulness of on-line banking, the study
will also help to get the knowledge about process of internet banking and usefulness to banking industry. As
the study contains the 360-degree information regarding SBI and its internet banking. Hence the study will
lead to new ways to tackle the problems and the SWOC of SBI in respect of internet banking.
NEED OF STUDY
This study is needed to find out the working of internet banking of SBI and its importance to customer as
well as to bank.
RESEARCH/LIMITAIONS/IMPLICATIONS:
The primary limitation of this study is based on quality and originality of secondary data taken via the
official website of State Bank of India and Reserve Bank of India.
KEYWORDS: INTERNET BANKING
//
DATA ANALYSIS AND INTERPRETATION
/
NON- TOTAL
PARTICULARS RESPONDENTS
RESPONDENTS RESPONDENTS
MALE 72 6 78
FEALE 28 8 36
TOTAL 100 14 114
INTERPRETATION:
Data collected from 114 respondents, out of 100 respondents perform online banking and this is
represented by a column chart with male and female basis analysis. It is good for the banks as most of
the respondents are aware of the internet banking and all the services have enjoyed them being
offered by banks.
IN WHICH BANK DO YOU HAVE AN ACCOUNT
/
CUMULATIVE
NAME OF BANKS FREQUENCY PERCENTAGE
FREQUENCY
SBI 27 24% 27
AXIS 21 18% 48
ICICI 13 11% 61
UCO 12 10% 73
HDFC 8 7% 81
UBI 9 8% 90
BOI 6 6% 96
PNB 5 5% 101
OTHERS 10 9% 111
INTERPRETATION:
Among 111 respondents, 27 respondents have SBI bank a/c, 21 have AXIS bank a/c, 13 have ICICI
bank a/c, 12 have UCO bank a/c, 8 have HDFC bank a/c, 9 have UBI bank a/c. 6 have BOI bank a/c, 5
have PNB bank a/c and 10 have others bank a/c.
WHY DO YOU AVAIL OF ONLINE BANKING?
PURPOSE OF
CUMULATIVE
ONLINE FREQUENCY PERCENTAGE
FREQUENCY
BANKING
PRIVACY 9 9% 9
24*7 BUSINESS
HOURS
36 36% 45
CONVENIENCE 16 16% 61
NOT TO MOVE
ANYWHERE
13 13% 74
EASY TO USE 11 11% 85
SAVING TIMES &
SPEED
12 12% 97
HARD TO SAY 3 3% 100
INTERPRETATION:
Most of the respondents felt that the “24*7 BUSINESS HOURS” provided by the internet banking is
the highest motivating factor for an individual to use internet banking and rest prefer “PRIVACY”,
“CONVENIENCE”, “NOT TO MOVE” etc.
HOW MUCH DO YOU SPEND FOR A SINGLE ONLINE TRANSACTION?
TRANSACTION FREQUENCY PERCENTAGE CUMULATIVE

AMOUNT FREQUENCY
0-1000 40 40% 40
1000-5000 25 25% 65
5000-10000 15 15% 80
10000-20000 10 10% 90
ABOVE 20000 10 10% 100
INTERPRETATION:
Most of the online banking users have a tendency to spend Rs.1000 or below this amount in a single
transaction.
RATING OF ONLINE BANKING SERVICES
RATING FREQUENCY PERCENTAGE CUMULATIVE

FREQUENCY
EXCELLENT 18 18% 18
VERY GOOD 15 15% 33
GOOD 35 35% 68
AVERAGE 12 12% 80
POOR 15 15% 95
HARD TO SAY 5 5% 100
INTERPRETATION:
The satisfaction level of people with the online banking services of their banks has a mixed Review:
This may due to multiple reasons. Moreover 35 people choose “GOOD” option.
RATING OF THE MAIN TRANSACTIONS
TRANSACTIONS EXCELLENT GOOD AVERAGE POOR NOT

APPLICABLE
FUND TRANSFER 35 25 15 20 5
ATM BANKING 68 12 10 8 2
BALANCE 80 10 10 0 0
ENQUIRY
ONLINE FIXED 10 15 10 25 40
DEPOSIT
REQUEST A 30 20 10 40 0
DEMAND DRAFT
PAY BILLS 71 14 8 7 0
ONLINE SHOPPING 65 20 7 8 0
ONLINE 60 25 15 0 0
RECHARGE
INTERPRETATION:
It is interesting to see that most of the respondents give “EXCELLENT” rating to ATM Banking,
Balance Enquiry, Pay Bills, Online-Shopping and Online Recharge.
DO YOU AVAIL OF BANKING FACILITIES ONLINE?
ONLINE & OFFLINE BANKING USERS

/
PARTICULARS FREQUENCY PERCENTAGE CUMULATIVE

FREQUENCY
ONLINE 100 88.00% 100
BANKING USERS
OFFLINE 14 12.00% 114
BANKING USERS
INTERPRETATION:
Most of the respondents prefer online banking services. About 88% respondents support online
banking services and only 12% respondents support offline banking services.
ARE YOU AWARE OF THE SECURITY THREATS AND FRAUDS IN ONLINE BANKING AND
FAMILIAR WITH THE METHODS OF SECURED ONLINE TRANSACTIONS?
AWARENESS OF FREQUENCY PERCENTAGE CUMULATIVE

FRAUDS FREQUENCY
YES 58 58% 58
NO 27 27% 75
CAN’T SAY 15 15% 100
INTERPRETATION:
It is good to see that most of the users have knowledge about frauds and security issues of net banking
but even with the increasingly knowledge of internet banking some respondents are unaware the
methods taken up by the bank to secure each and every transaction.
SWOC ANALYSIS OF SBI’S INTERNET BANKING

STRENGTHS:
0 Greater reach to customers
Quicker time to market
1 Ability to introduce new products and services quickly and successfully
2 Ability to understand its customers’ needs
3 Customers are given access to information easily across any location
4 Greater customer loyalty
5 Easy online application for all accounts, including personal loans and mortgage
6 24 hours account access
7 Quality customer service with personal attention
WEAKNESSES
0 Lack of awareness among the existing customers regarding internet banking
1 Obsolescence of technology take place very soon specifically in terms of security on internet
2 Procedure for applying for id and password for using services related to internet banking takes time
3 Lack of knowledge is found regarding internet banking in employees of SBI
4 Implementation of newer technology is little bit complicated
5 Employees needs training to obtain knowledge regarding I-BANKING.
OPPORTUNITIES
0 Approximately 95% of customers are not using internet banking
1 Core competency can be achieved in terms of banking if focus is made on awareness of internet
banking
2 Can become 1st virtual bank of India
3 Concentration of various services should be made using internet banking
CHALLENGES
0 Maintaining business Edge over competitors in the context of sameness in IT infrastructure
1 Multiple vendor support is necessary for working of highly complex technology
2 Maintaining secured IT infrastructure for business operations
3 Alternative must be there in case of failure of system
/
RECOMMENDATIONS AND SUGGESTIONS
0 TRAINING AND AWARENESS AMONG EMPLOYEES
It is recommended that State Bank of India should conduct various training programmes for the
employees, so that they will get aware with the terms of Internet banking. After such programmes
they can create awareness amongst the consumers.
1 EXCHANGE OF INFORMATION ON THREATS AND VULNERABILITIES AT

APPROPRIATE FORUMS
There should be an open-end discussion on the threats and vulnerabilities coming across the
functioning of internet banking work by the employees in the various official, forums and meets.
2 BUILD ON OPTIMAL OPERATING MODEL BY UNDERSTANDING WHICH
ACTIVITIES TO RETAIN COLLABERATIVE AND OUTSOURCE
CONCLUSION
/
Studying the project, we came to know that Internet banking is clearly the way forward for the State
Bank of India. It provides comfort to customers at the same time it provides cost cutting to SBI by
eliminating physical documentation. Internet banking saves time of bank as well as those of
customers.
This study states that internet banking provides greater reach to customers. Feedback can be
obtained easily as internet is virtual in nature. Customer loyalty cane be gain. Personal attention can
be given by bank to customer also quality service can be served. Bank should know that No system is
perfect, however a system of such a type will need to be very secure. This is a system which holds
account details and customers wealth. If such a system was not trusted and not reliable, then SBI
would face serious laws and would lose business. It can be concluded that technological development
in banking industry positively improves their services, competitiveness, branding and also loyalty.
After studying the SWOC analysis, we came to know various strength of SBI such as quality
customer service, greater reach, customer loyalty, easy access to information, 24 hours access, easy
online applications etc. SBI should put efforts to multiply the number of strengths. In terms of
weakness I come to know some of the major weaknesses they are lack of awareness of internet
banking among the customers, obsolesce of technology related to security, complicated procedures of
availing internet banking facilities, lack of knowledge among the employees of SBI. SBI should
concentrate on the weaknesses and reduce them to zero.
In the third segment of SWOC analysis of internet banking we dealt with opportunities like 95%
market of internet market is untapped, SBI’s path to become first virtual bank. By encashing such
opportunities bank can become the leader in banking sector of India. In the last segment I come to
know about various challenges which are in front of SBI, like sameness in IT infrastructure within
various banks, need of various vendor supports for complex technology, maintaining secured IT
infrastructure, alternative mechanism in case of failure of present security system.
The company can take the advantage of the reputation it has created in the market for itself and
become more competitive.
The recommendations and suggestions given, if adopted will improve the position of the company
substantially and optimal profitability coupled with better service and satisfactions for investors may
be achieved.
WEBSITES:
HYPERLINK "http://www.onlinesbi.com" www.onlinesbi.com
www.bankbazaar.com
HYPERLINK "http://www.ndtv.com" www.ndtv.com
www.slideshare.net
HYPERLINK "http://www.google.com" www.google.com
www.scribd.com
HYPERLINK "http://www.123helpme.com" www.123helpme.com
www.essaysauce.com
cleartax.in
HYPERLINK "http://www.indianessay.com" www.indianessay.com

www.sbiyono.sbi
gradefixer.in
HYPERLINK "http://www.researchgate.net" www.researchgate.net
BOOKS:
Introduction to Information Technology & Its business Application: - written by A.K.
Mukhopadhyay & A. Das and published by Kalimata Pustakalaya

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APPLICATION OF INTERNET BANKING SYSTEM IN SBI

Partha pratim choudhury

CHAPTER NO. TITLE PAGE NO.

2 Review of Literature 12-18

3 Conceptual and Theoretical 19-36

4 Research and Methodology 37-38

5 Data Analysis and Interpretation 39-48

6 Conclusion and Suggestions 49-52

Some of these are as follows:

2 A few people retained authority in it.

3 There are maximum foreigners’ high officials.

OBJECTIVES OF THE STATE BANK OF INDIA:

4 Saving people’s money and time in transaction of money.

7 Working as the agent of Reserve Bank of India.

CAPITAL AND MANAGEMENT IN STATE BANK OF INDIA

FUNCTION OF State Bank of India.

1 CENTRAL BANKING FUNCTIONS

2 ORDINARY BANKING FUNCTIONS

4 FOREIGN BANKING FUNCTIONS

The other functions of State Bank of India are:

4 OTHER COMMERCIAL BANKING FUNCTIONS

PROGRESS OR ACHIEVEMENTS OF STATE BANK OF INDIA

4 AGRICULTURE DEVELOPMENT BRANCHES

10 ARRANGEMENT OF FOREIGN EXCHANGE

MEANING OF LITERATURE REVIEW

1 Shows you are familiar with previous, relevant research.

RELATIONSHIP BETWEEN A LITERATURE REVIEW AND A RESEARCH PROJECT

NATIONAL LITERATURE REVIEW

AMRUTH RAJ NIPPATLAPALLI (2013)

MR. VIJAY PRAKASH GUPTA & DR.P.K. AGARWAL (2013)

POOJA MALHOTRA & BALWINDER SINGH (2009)

INTERNATIONAL LITERATURE REVIEW

ANIL KUMAR AND MANOJ KUMAR DASH (2013)

SHILPI KHANDELWAL (2013)

CONCEPT AND THEORETICAL FRAMEWORK

HISTORY OF INTERNET BANKINNG:

INTERNET BANKING AT SBI:/

1 These manual procedures were inherited from the Imperial Bank.

2 Traditional procedures were evolved over decades

CHANGES BROUGHT IN INFORMATION TECHNOLOGY BY SBI

1 Transfer funds to own and third-party accounts

3 Generate account statements

4 Setup standing instructions

5 Configure profile settings

6 Use e-Tax for online tax payment

7 /Use e-pay for automatic bill payments

8 Interface with merchants for railway and airline reservations

9 Avail DEMAT and IPO services

4 VALUE ADDED SERVICES

1 Supply chain finance (e-VFS Electronic Vendor Finance Scheme)

2 Direct debit facility

3 E collections facilities for:

4 Core banking transactions

5 Internet bank transactions for incoming RTGS/NEFT transactions

6 Internet banking transactions for SBI and associate banks

PRODUCTS AND SERVICES

THIRD PARTY TRANSFER

2 ISSUES WITH INTERNET BANKING: /

1 START-UP MAY TAKE TIME:

SERVICES PROVIDED UNDER INTERNET BANKING/

RESEARCH & METHODOLOGY

俾 /To get aware of various aspects of net banking

俾 To build up SWOC analysis of Internet banking of SBI