Project On

E BANKING SERVICE IN INDIA

A Project Submitted to

University of Mumbai for partial completion of the degree of

BACHELOR OF BANKING AND INSURANCE (BBI)

(COMMERCE)
Under the Faculty of Commerce By

RADHIKA SITARAM KEWAT

(TYBBI)

SEMESTER VI

Under the Guidance of

Prof.Alok Haridkar

GHANSHYAMDAS SARAF COLLEGE IF ARTS ANDCOMMERCE

Rajasthani Sammelan’s Educational Complex,
Swami Vivekananda Rd, Mandlik

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Nagar, Sunder Nagar, Malad West.
Mumbai, Maharashtra 400064.

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 GHANSHYAMDAS SARAF COLLEGE IF ARTS ANDCOMMERCE
Rajasthani Sammelan’s Educational Complex, Swami Vivekananda Rd, Mandlik
Nagar, Sunder Nagar, Malad West.
Mumbai, Maharashtra 400064.

CERTIFICATE

This is to certify that MISS RADHIKA KEWAT has worked and duly
completed his Project Work for the degree of Bachelor of banking and
insurance under the Faculty of Commerce in the subject of Research
Project and his Project is entitled, “E-BANKING SERVICES IN
INDIA” under my Supervision.

I further certify that the entire work has been done by the learner under
my guidance and that no part of it has been submitted previously for
any Degree or Diploma of any University.

It is his own work and facts reported by his personal findings and
investigations

Principal Coordinator Project Guide

Dr.Ashwat Desai Dr.Urvi Pillai Prof.Alok Haridkar

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Internal Examiner External Examiner

Date:

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 DECLARATION

I the undersigned MISS RADHIKA KEWAT here by, declare that the
work embodied in this project work titled “E-BANKING SERVICES
IN INDIA”, forms my own

contribution to the research work carried out under the guidance of

Prof.Alok Haridkar is a result of my own research work and has not
been previously submitted to any other Degree to this or any other
University.

Wherever reference has been made to previous works of others, it has

been clearly indicated as such and included in the bibliography.

I, here by further declare that all information of this documents has

been obtained and presented in accordance with academic rules and
ethical conduct.

Name and signature of the learner

RADHIKA SITARAM KEWAT

Certified by

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Name and signature of the Guiding Teacher

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 ACKNOWLEDGEMENT

To list who all have helped me is difficult because they are so

numerous and the depth is so enormous.

I would like to acknowledge the following as being idealistic channels

and fresh dimensions in the completion of this project.

I take this opportunity to thank the University of Mumbai for giving

me chance to do this project.

I would like to thank my Principal, Dr.ASHWATH DESAI for

providing the necessary facilities required for completion of this
project.

I take this opportunity to thank our Coordinator DR.Urvi Pillai, for

his moral support and guidance.

I would also like to express my sincere gratitude towards my project

guide Prof. Alok Haridkar whose guidance and care made the project
successful.

I would like to thank my College Library, for having provided various

reference books and magazines related to my project.

Lastly, I would like to thank each and every person who directly or
indirectly helped me in the completion of the project especially my
Parents and Peers who supported me throughout my project.
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 INDEX

CHAPTER NO TITLE OF THE CHAPTER PAGE NO

1 INTRODUCTION

2 RESEARCH 34
METHODOLOGY

2.1 OBJECTIVES 37

3 REVIEW OF LITERATURE 55

4 DATA ANALYSIS AND 70

INTERPRETATION
5 CONCLUSION AND 72

BIBLOGRAPHY

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 CHAPTER 1

INTRODUCTION

1.1Problem Definition

In India, Banking sector Has been doing traditional business of accepting deposits and
lending money to do business activites.In traditional banking system customer had to
visit the bank personally for withdraw and deposit the money, to fill up the bank
passbook , to collect the cheque book , to make fixed deposit in to the bank, to get
available loan facility and So on.

With traditional banking, the client has the need to travel to the banking branches , in
order to carry out transactions , obtain cash , procedures etc. In banks phyiscally you
are given a personalized services , unlike online banking where transaction made by
using electronic gadgets with the use of internet connectivity .

1.2 MEANING

E-Banking is also know as Virtual banking or Online banking. It involves the use of
information technology in the banking business.E-banking is the term that denotes and
uncircle the entire spare of technology and initiates that taking place in banking
industries.

E-banking means making use of electronic channel such as mobile

phones,telephone ,internet connectivity etc for the deliver of banking services and
products. By using Electronic banking services customer can withdraw money at any
time and anywhere.It s better services from the bank that as quickly online payment
facility ,easy transfer of money from one bank account to another bank account 24 by 7
access to accounts along with online banking is accessible from anywhere where you get
an Internet connection.
You can Logon and access your account to your simplest mobile phone also you can
access your bank account it's fast and saves your valuable time in a few seconds
your transactions can get completed.

A Bank is a Financial Institution which is among theprimary supporters of the

monetary framework in India. Bankingoffers different offices to the client for
preparing tasks.Since the nationalization of banks in 1969, the public areabanks,
controlled by the public authority, have procured a spotof respectability, with
fantastic development. Presently India is turning out to bean arising financial monster
as a result of data

innovation. Banking in India has experienced a longventure. It has seen various

changes because of innovationwhat's more, development.

The globalization comprehensively changedthe essence of Indian financial industry

from recent years.Banks have generally been in the front situation ofmisusing
innovation to enhance their items/administrationswhat's more, working skill.
Throughout an extensive stretch of time bankshave been using electronic and media
transmission modesfor conveying a wide scope of significant worth
coordinateditem/administrations.

The flood of cards, the presentation ofclearing administrations like ECS, the idea of e-
banking andversatile banking are the various developments which took place in the
financial section. Presently a days all the banks have begun with the idea of multi-
channel, similar to check cards, Mastercards, keen cards, ATMs, web banking,
versatile banking/phone banking, electronic asset move, and so forth the part of banks
has changed from monetary middle of the road to administration provider of various
monitory help under a rooftop.Today, present day banking not just searches for better
approaches topull in yet additionally to hold the clients and gain a serious advantage
over their rivals.

DEFINITION

Electronic banking (e-banking) is characterized as the mechanized conveyance of

new and conventional financial items and administrations straightforwardly to clients
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through electronic, intelligent correspondence channels (Daniel, 1999; Sathye, 1999).
Proficient usage of supporting innovation for permitting an assortment of electronic
banking has purchased another unrest for the conveyance of banking offices. With the
expanding prevalence and advantages of e-banking, a ton of banks have perceived the
significance, rivalry and difficulties completed with this new innovation and are
adjusting to this trendy banking.

E banking is a type of web based financial that empowers clients to execute bank
exchanges from a E-banking by means of a modem. In most E banking adventures,
the bank offers the client an exclusive monetary programming program that permits
the client to perform monetary exchanges from their home PC.

The client at that point dials into the keep money with their modem, downloads
information, and runs the projects that are occupant on the client's PC. At present,
numerous banks offer E banking frameworks that permit clients to get account
adjusts and financial records, take care of bills, and move assets between accounts.
Web banking, now and then called internet banking, is an outgrowth of E banking.
Web banking utilizes the Internet as the conveyance channel by which to direct
financial action, for instance, moving assets, covering bills, seeing checking and
investment account adjusts, paying home loans, and buying monetary instruments
and endorsements of store.

Further, under Internet banking, the following services are available in India:

Bill payment – Every bank has a tie-up with different utility companies, service
providers, insurance companies, etc. across the country. The banks use these tie-ups to
offer online payment of bills (electricity, telephone, mobile phone, etc.). Also, most
banks charge a nominal one-time registration fee for this service. Further, the
customer can create a standing instruction to pay recurring bills automatically every
month.

Funds transfer – A customer can transfer funds from his account to another with the
same bank or even a different bank, anywhere in India. He needs to log in to his

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 account, specify the payee’s name, account number, his bank, and branch along with
the transfer amount. The transfer is effected within a day or so.

Investing – Through electronic banking, a customer can open a fixed deposit with the
bank online through funds transfer. Further, if a customer has a demat account and a
linked bank account and trading account, he can buy or sell shares online too.
Additionally, some banks allow customers to purchase and redeem mutual fund units
from their online platforms as well.

Shopping – With an e-banking service, a customer can purchase goods or services

online and also pay for them using his account. Shopping at his fingertips.

E-banking services or electronic banking services are referred to banking transactions which are
transacted using electronic modes or equipment. However, the most important and core component of
electronic banking is the Internet. The various touch-points between banks and customers are
identified and a virtual system or a process is mapped using available technologies to conduct a
transaction with the use of the internet. Any touch-point between a bank and a customer even for
non-financial transactions is termed as a transaction.

The biggest transformation advantage to the customers is the usage of electronic banking facility that
is accessible to them offered by the bank at 24*365 delivery window in a year, without making a
personal visit to the bank branch. However, the technological systems do require schedule
maintenance of technology assets and some other unexpected reasons may also impact the services
through the electronic ways. But all-in-all, the technological uptime for the delivery of such services is
very high. The account holders can conduct financial and non-financial transactions even after
standard business hours and on weekends applicable by various banks in India.

A strong banking sector can be termed as lifeline of an economy. Therefore it is not wrong to say that
present and future of an economy entirely depends upon the success and development of banking
industry of that economy. In todays era of information and technology an economy cannot achieve the
target of sustainable development by following traditional banking method.

So it has become mandatory for developing country like India to increase automation in banking
industry. The transformation from traditional banking started from use of automatic teller machine
(ATM), direct bill payment, electronic fund transfer (EFT). The revolutionary online banking is being
accepted by the customers with growing awareness and education.

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E- banking is a process of banking services and products through electronic channels such as
telephone, internet, cell phones etc. today many people are moving towards e-banking as buy its use it
become easy for customers to manage their account from an place and at any time and this charge
very nominal cost. it is not wrong to say that e-banking is one of the most popular and latest
technological wonder in field of banking which has given a banking sector a new dimension for
growth.

Ebanking has helped the banking industry in several new ways but the biggest advantage that it has
imparted to this sector in developing countries especially country like INDIA is related to improving
customer relations. In India e- banking was introduce in 1991 instantly after the recommendations of
Narsimham Committee. The introduction of IT in banking sector of India made banking more
reliable and sophisticated, now because of e- banking the remote areas of India are also connected to
all banks branches even though they are in metropolitan cities. According to expert studies by 2020
average of India will be 29 year and these young Indian consumers are entirely base on internet
banking. Therefore Indian banks are in desperate need to do innovation and provide Indian
consumers a world class internet banking capability. The present paper mainly focused on the need of
innovation in India in field of e-banking and also try to put light on the available benefits,
opportunities and current challenges faced by banking sector to boost up E-banking in India

Online banking, also known as internet banking, e-banking or virtual banking, is an electronic
payment system that enables customers of a bank or other financial institution to conduct a range of
financial transactions through the financial institution's website. The online banking system will
typically connect to or be part of the core banking system operated by a bank and is in contrast to
branch banking which was the traditional way customers accessed banking services. Fundamentally
and in mechanism, online banking, internet banking and e-banking are the same thing. To access a
financial institution's online banking facility, a customer with internet access would need to register
with the institution for the service, and set up a password and other credentials for customer
verification. The credentials for online banking is normally not the same as for telephone or mobile
banking.

Financial institutions now routinely allocate customers numbers, whether or not customers have
indicated an intention to access their online banking facility. Customers' numbers are normally not
the same as account numbers, because a number of customer accounts can be linked to the one
customer number. The customer number can be linked to any account that the customer controls,
such as cheque, savings, loan, credit card and other accounts. The customer visits the financial
institution's secure website, and enters the online banking facility using the customer number and

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credentials previously set up. The types of financial transactions which a customer may transact
through online banking usually includes obtaining account balances, lists of the latest transactions,
electronic bill payments and funds transfers between a customer's or another's accounts. INDIAN
BANKING SYSTEM

A number of authors and experts have defined e-banking services as a contemporary facility that
provides conventional bank products and services through a new medium i.e. IT. It is entirely
automated facility based on IT delivery mechanism to conventional banking users‟ products and
services. It provides online medium of conducting and providing various banking services, such as,
online accessibility of bank account, online fund transfer facility, online bills paying facility etc. The
benefits provided by e-banking medium have resulted into swift growth of banking sector worldwide.
The internet facility has transformed the business world in terms of managing business.

According to Abu Shanab et al. (2010), internet has transformed the entire business pattern for people
as well as for businesses. Although, technological advancements are happening everyday but not every
advancement has been welcomed and adapted by financial sector; but financial sector that enjoying
advantages of this new mode of service delivery, has adapted the e-banking phenomenon from its
introduction only.

Originally it was used for online banking promotional activities of their products and services; but as
the e-banking concept developed, banks have started enjoying its various other advantages, such as,
reduced per transaction cost, enhanced customer service, raised long term returns by providing
„anytime anywhere‟ banking to the banking customers. Advancement in technology provides fast
innovative changes in people‟s routine life. The most significant recent technical advancement that
drastically transformed the entire scenario of providing services is the use of internet facility in
service delivery

Number of people that are adapted this technological advancement for online transaction such as,
online shopping, is increasing tremendously. Gradually, more business organizations realized that it
can be utilized to facilitate growth through its advantages of easy accessibility to information and
technology transfer. The cut throat competitive environment and demanding customers compelled
banks to adapt e- banking concept. Most of the business organizations have swiftly adapting the
advancement in technology and internet facility. Adopting new internet applications have resulted in
enhancement of efficiency and quality of service provided as well as attracting prospecting customers.
Thus, evolution of internet facility had transformed entire business world around the globe and same
happened in banking sector. Banking sector have always been on the top in using ICT in banking
business.
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Challenges faced by banking sector such as, increase in competition, catering variety of demand of
heterogeneous customers, decreasing revenue margin and advantages provided by technology , have
compelled banks to process new human resource management system. To successfully face all these
challenges banks have adapted new technological advancements as earliestas possible. Other driving
forces that worked for banks to adapt technological advancements are the challenges of meeting
varied customer expectations, new regulation and entering into new geographical areas and
requirement of new products and services.

Technological advancement specifically, in IT is always seen as the main source of changes taking
place around the globe. The entire banking industry has entered into an unparalleled Competitive
form facilitated by new ICT infrastructure, because of universal and gradual development of ICT.
The latest buzzword for corporate is e-commerce due to increase in awareness of utilization of
computer and internet facility and increased use of these facility resulted into development of
ecommerce. Today, internet facility has become the main medium of financial, commercial and
banking transactions and advancement in ICT have become the top concern for banks.

The growth of modern financial software applications has changed the business relationship and
service provision with very fast pace. The development in ICT more or less impacted entire business
world. Today, e- banking has been extensively used in developed nations and is swiftly escalating in
the developing nations as well. Now, e-banking has become a global concept.

The most recent technological advancement is the evolution of e-banking. Various alternative modes
of providing banking products are evolved and gained popularity in recent past, such as, tele-banking,
Automated Teller Machines, e-banking, credit & debit cards.

The most recent one is e-banking that has major impact on the financial market. Banks got the sense
that internet facility will open up new horizons for banks and will help them to adapt globalization
effectively. According to Thulani et.al, 2009 and Henry, 2000, “Internet banking refers to systems that
enable bank customers to get access to their accounts and general information on bank products and
services through the use of bank‟s website, without the intervention or inconvenience of sending
letters, faxes, original signatures and telephone confirmations”.

Keywords- E-Banking, ATMs, Information Technology, EFT

In India innovation in baking sector was began since 1991 with introduction of liberalization and
globalization processes as result of it E- Banking came into progress. This Information Technology
revamps the entire banking sector. E- banking drastically and rapidly altered the way of client
banking, banks started providing different services related to cash deposits, cash withdrawals that to
through electronic means. Due to this I.T revolution the number of electronic transactions are
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increasing day by day and world has emerged as a cyber world where each and everyone is connected
through internet.

E- Banking made the mobility of foreign funds and investment possible which turned world into
global market and this market is growing so fast that it has almost abolished the effect of national
boundaries. It is not wrong to say that this I.T innovation in baking sector in form of E-banking has
introduced new business paradigm in country like in India.

In past three decades the operational efficiency of Indian banks has increased to several folds, now the
time taken by the banks in performing different transaction has been reduced, with this advancement
competition among banks has also increased. Every bank is trying to use as much latest technological
innovations in order to facilitate its customers.

One of the key features in this regard is innovation banking or e- banking, which a lot of banks are
currently providing in India. Internet Banking or E- Banking refers to a system that allowing
individual customers to perform various banking activities from different sites like their home, office
and other locations via internet based secured networks.

Through Internet or online banking traditional banks are enable customers to perform all routine
transactions, such as account transfers, balance inquiries, bill payments and stop-payment requests,
and some even offer online loan and credit card applications. Internet banking is a web-based service
that enables the banks authorized customers to access their account information. It permits the
customers to log on to the banks website with the help of banks issued identification and personal
identification number (PIN). 

History

The story of technology in banking started with the use of punched card machines like
accounting machines or ledger posting machines.If further developed with the birth of
online real time system and vast improvement in telecommunications during late
1980s and 1990s it a resulted in a revolution in the field of banking.Through upcoming
online techonology banking, the bank is carried to the doorstep of the customer.

The evolution process of latest service delivery mechanism through internet i.e. e-
banking started from the early 1980s. In late 1980s, the term online got popularized

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and it was referred to a banking medium of using a terminal, keyboard and monitor
to access the banking system through a phone line.

Another term used for this was „Home Banking‟ and in it, customers were using a
numeric keypad to send tones down a phone line with instructions to the bank. In
1981, e- banking has started in New York with offering home banking service using
videotext system by Citibank, Chase Manhattan Bank, Chemical bank and
manufacturers Hanover bank. Although due to failure of videotext system, Home
Banking was not able to gain popularity except in France and UK. In 1983, Bank of
Scotland provided UK‟s first home online banking service to the banking customers
of Nottingham Building Society.

This online banking service was based on Prestel system of UK and used a computer
like BBC Micro or keyboard connected to the telephone and television system. This
system was called Home link and it enabled customers to view their bank statements
online, online fund transfer and online bill payment.

To pay bills or transfer funds, customers need to send a written instruction having
details of intended transaction to Nottingham Building Society who set the details
upon the Home link system. The usual recipients of this service were electric
company, Gas Company, telephone companies and other banks.

The account holder has to provide details of the payment through Pestle into
Nottingham Building Society system. Then, a cheque of payment amount has to be
send by Nottingham Building Society to the payee and an instruction giving details of
the payment was send to the account holder. Later, BACS was used to directly
transfer the payment. In Oct. 1994, Stanford Federal Credit Union was the first
financial institution that provided internet banking facility to its all members In 1995,
Wells Fargo was the first U.S. bank to add account services to its website, with other
banks quickly following suit.

That same year, Presidential became the first U.S. bank to open bank accounts over

the internet. According to research by Online Banking Report, at the end of 1999 less
than 0.4% of households in the U.S. were using online banking. At the beginning of
2004, some 33 million U.S. households

(31%) were using some form of online banking. Five years later, 47% of Americans
used online banking, according to a survey by Gartner Group. Meanwhile, in the UK

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online banking grew from 63% to 70% of internet users between 2011 and 2012. The
early 2000s saw the rise of the branch-less banks as internet only institutions

In India,traditional banking services were become important for the people of the country

.Inearly’s 1990, when banking services were introduce to online banking services
people were scared about the services as this services will affected their transaction,
they were assuming the services will lost their savings. It was a slow start for the
people of india were banking services started their online services.Some Indian
private sector banks also started their ATM by the end of 2000’s . Indian Banks
Association (IBA) in Mumbai initiated a project network of 160 Atms of 30 member
banks came up in the form of SWADHAN,which has 30000-40000 transaction per
month .

The concept of credit card was introduced by citi bank and it found large acceptance
in metro and biggest cities in india . Debit card become popular in 1999 only when
Visa card and Master card accept the agreement with Indian and Foreign banks.

The Reserve Bank Of India (RBI) constituted various committee for the introduction
of various operations in banking industry based on Computers and information
technology.These were some of the committee First Rangarajan committee(1985-
89),the Second Rangarajan committee (1990 -94 ), The Saraf committee (1994).Also
I.T Act was passed in 2000, Which was the most important step by the Government of
India in bringing E-volution.Kamakodi et al. (2008) communicated that a broad hole

exists in human help in Indian banking while IT-based offices are past the
assumptions. Qureshi T M, Zafar M K and Khan M B (2008) assessed the client
acknowledgment of internet banking study infers that larger part of clients are
tolerating web based financial culture as a result of positive elements and
convenience, security and protection.

Uppal R K (2010) communicated in his exploration, ATMs is the best while portable
banking doesn't stand firm on a solid footing in public area banks, Mobile financial
clients are additionally the most elevated in E-Banks which decidedly affect net
benefit also, business per representative. Mishra (2011) conveyed a helpful guidance to
defend the wellbeing of web based exchanges (IBT).

The client of the banks ought not answer to any SMS, calls or Emails, mentioning for
secret word and not to interface on any

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connection for banks site. E- Banking has emerged from a particularly progressed
improvement. Zamdi et al (2013),examining 56 nations more than 2008-12, figure that
USD 983 billion were added to their total genuine GDP due to expanded card
utilization. Among the arising economies, India at a lower level of 0.047%. Dhananjay
B and Suresh Chandra

B (2015) communicated that retail electronic installment framework has advanced in

the new years. The production of NCPI set the stage for the improvement of
Electronic installments. In this proportion of electronic clearing developed from one
percent to three percent.

Mukhopadhyay (2016) in their investigation of advantages from credit only economy

found that as more installments are straightforwardly credited to the record, credit
only installments increment altogether. Dr. Karunagupta, Mr. Ravindraarya, (2017)
zeroed in on arising patterns in the financial area in India, he zeroed in on the
financial area concerning digitalization.The digitalization of banking framework
prompts a solid establishment in of economy and to prepared to get credit only
economy to change the Indian financial industry.

1.3 Characteritics

E-banking services is the fast and safest mode to get your transaction completed.
With E- banking you can open up Fixed deposit and recurring deposit online . you
can make bill payment , money transfer , online purchasing of shares , and now you
can also open your Demant account as well as your Savings account online through
your bank website.

Here are some of the characteristics for E-banking services:

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 FASTER TRANSACTION

E-Banking provides faster transaction facility for its customer an instant money
transfer features which helps the customers for fast and safest money transfer in
their particular accounts directly .People don’t need to stand in queue for the
transfer of money in banks, E- banking services also helps in eco-friendly
atmosphere as there is less paper works and its safe lots of time for the

customers.

PROVIDES 24x7 SERVICES

The most important features of E-banking services is to provide customers 24/7

services. Customers can easily access their account information and facility provided
by the bank online at anytime and anywhere with the help of internet
connectivity.customers can do their payments of bills , money transfer etc. online at
their home.

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 REDUCES THE CHANCES OF ERROR

E-banking services in india has reduced the chance of human error. the role of the
human in the whole transaction process is reduces. E-banking services system works
fully electronic and automated over the internet. All customers transactions are
recorded and stored digitally in e banking systems. There is no need to manually
maintain record in books of account.

Customers have the proof of their transaction on their mobile phones and other
electronic devices .

GEOGRAPHICAL BARRIERS

E-Banking services has removed all distances . Customers don’t need to travel to their can do all
their transaction at home or anywhere at any time . they can also transfers funds or others banking
activity domestic as well as internationally . the travelling charges that face by the customers has
removed due to better e-banking services in India.

Popular services under e-banking in India

 ATMs (Automated Teller Machines)

 Telephone Banking

 Electronic Clearing Services

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 Smart Cards

 EFT (Electronic Funds Transfer) System

 Mobile Banking

 Internet Banking

 Door-step Banking

ATM (Automated Teller Machines)

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The Automated teller machine (ATM) is a Automated banking machine (ABM) that
permits the client to finish essential exchanges with no assistance from bank agents.
There are two kinds of Automated teller machines (ATMs). The essential one permits
the client to just draw money and get a report of the record

balance. Another is a more intricate machine that acknowledges the store, gives
Visa installment offices and reports account data. By utilizing a mechanized teller
machine or ATM we can perform distinctive monetary exchanges, for example,
money stores,

withdrawals, move reserves, data of record, ATM PIN change, and furthermore
connecting the Aadhaar number to the financial balance so the communication
between the bank staff and the client can be decreased. As its work 24/7 services for
all the people .

In India, the advancement of ATMs was moderate since they were dispatched in the
mid 1990s to the Indians and helped through unfamiliar banks. At the point when the
majority of the banks were dealing with extreme issues in view of the absence of a
solid branch framework, at that point computerized teller machines seemed like the
best answer for these issues. The ATM machine was executed to decrease the blocks of
the branch organizing by contacting the clients by offering agreeable administrations
with less exchange charges. From that point onward, numerous enhancements in this
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innovation have shown up and likewise client availability has additionally improved
through limits.

These machines are orchestrated on a different premise, which implies that the bank
has where there is just an ATM machine then this turns into an offsite ATM. This
should be possible to ensure that the bank contacts more geological areas to use its
administrations by individuals in any event, when there is no part of the bank inside
the district. So these machines will work outside of the bank areas.

Telephone Banking

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Telephone banking is an assistance given by a bank or other monetary organization, that
empowers clients to perform via phone a scope of monetary exchanges which don't
include money or Financial instruments (like cheques), without the need to visit a bank
office or ATM. To utilize a monetary foundation's Telephone banking office, a client
should initially enroll with the organization for the help. They would be alloted a client

number (which isn't equivalent to the record number) and they might be surrendered or set
their own secret word (under different names) for client confirmation.

Clients would call the uncommon telephone number set up by the bank and would
validate their personality through the client number and a numeric or verbal secret word
or security

questions asked by a live delegate. The help can be given utilizing a mechanized
framework, utilizing voice acknowledgment capacity, DTMF innovation or by live client

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care delegates. In India, a variety of phone banking using missed call numbers, doled
out to explicit errands, (for example, checking equilibriums or performing cash
moves), is offered by significant banks.

Electronic Clearing Services

Electronic Clearing System (ECS) is an electronic technique for store move starting with
one financial balance then onto the next. It is for the most part utilized for mass exchanges
performed by organizations for making installments like profit, interest, compensation,
annuity, and so forth ECS can likewise be utilized to cover bills and different charges, for
example, installments to service organizations like phone, power, water, or for making
compared regularly scheduled payments installments on advances just as SIP speculations.
In this article, we take a gander at the working cycle of ECS in detail.

ECS installments can be performed by any establishment (ECS client) that needs to make
mass or monotonous installments to various beneficiaries or recipients. They start the
exchanges in the wake of enlisting themselves with an endorsed clearinghouse. ECS
clients additionally need to acquire an assent, for example, the record points of interest of
the recipients for participating in the ECS clearings. Under the plan, the recipients of the
dull or normal installments can likewise require the paying organization to make ECS
(credit) for installment. The ECS clients hope to impact installments and to introduce the
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information in a recommended configuration to any of the perceived clearinghouses. The
clearinghouse will charge the record of the ECS client through the client's bank on a
specific day and credit the records of the beneficiary banks, for giving ahead credit to the
records of a definitive recipients.

SMARTS CARDS

Credit Card: Everybody conveys a card nowadays. A Visa is fundamentally a plastic card
with an attractive strip created with the expectation to work on the muddled financial
interaction for a person in case he/she is shy of money, be it something easygoing like
shopping or something serious like an crisis circumstance. Different banks and private
monetary associations have now begun giving Mastercard office to their customers to offer
them better and less difficult monetary arrangements to their issues' Mastercard by and
large works by giving its holder a quick position to buy administrations and products like
travel and inn reservations just as looking for stock in and outside your own country. All
the Mastercard accompanies a credit limit,

A credit card is an installment card gave to clients (cardholders) to empower the

cardholder to pay a vendor for merchandise and ventures dependent on the cardholder's
guarantee to the card backer to pay them for the sums in addition to the next concurred
charges. The card guarantor (normally a bank) makes a spinning record and awards a
credit extension to the cardholder, from which the cardholder can get cash for
installment to a dealer or as a loan.
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 A credit card is unique in relation to a charge card, which requires the equilibrium to be
reimbursed in full every month or toward the finish of every assertion cycle. conversely,
credit cards permit the customers to construct a proceeding with equilibrium of
obligation, subject to intrigue being charged. A credit card additionally contrasts from a
money card, which can be utilized like cash by the proprietor of the card. A credit card
contrasts from a charge card likewise in that a credit card ordinarily includes an outsider
substance that pays the merchant and is repaid by the purchaser, though a charge card just
concedes installment by the purchaser until a later date.

Debit Cards:A debit card (otherwise called a bank card, plastic card or check card) is a
plastic installment card that can be utilized rather than money when making buys. It is like a
Mastercard, however not at all like a Mastercard, the cash is quickly moved
straightforwardly from the cardholder's financial balance to pay for the exchange. A few
cards convey a put away an incentive with which an installment is made (pre-loaded card),
however most hand- off a message to the cardholder's bank to pull out assets from the
cardholder's assigned financial balance. At times, the essential record number is allocated
solely for use on the Internet and there is no actual card. This is alluded to as a virtual card.

In numerous nations, like the vast majority of Western Europe, the utilization of debit cards
has become so boundless they have surpassed checks in volume, or altogether supplanted
them, and in certain occurrences, additionally generally supplanted money exchanges. The
advancement of debit cards, dissimilar to Mastercards and charge cards, has commonly been
nation explicit, bringing about various frameworks around the globe, which were regularly
incongruent. deibt cards are the cards that directly deducts cash straightforwardly from a
buyer's checking record to pay for a buy. Debit cards wipe out the need to convey money or
physical checks to make buys. Furthermore, debit cards, likewise called check cards, offer the
accommodation of Mastercards and large numbers of the same customer assurances when
given by significant installment processors like Visa or MasterCard. Dissimilar to

Mastercards, they don't permit the client to stray into the red, with the exception of maybe
for the record holder has pursued overdraft inclusion. In any case, debit cards normally have

every day buy limits, which means it may not be conceivable to make a particularly huge
buy with a debit card.

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EFT (Electronic Funds Transfer) System

Transactions including put away estimation of electronic cash, potentially in a private

money. Electronic bill installment in internet banking, which might be conveyed by EFT or
paper check . Wire move by means of a worldwide financial organization like SWIFT
Direct charge installments, now and again called electronic checks, for which a business
charges the purchaser's ledgers for installment for products or administrations.Direct store
installment started by the payer . Cardholder-started exchanges, utilizing an installment
card, for example, a credit or debit card .

EXCHANGE OF MONEY FROM ONE ACCOUNT TO ANOTHER THROUGH

COMPUTER .ELECTRONIC FUND TRANSFER Entering Bank Account Information.

Entering Payment Instrument Defaults . Entering Supplier Master Information .
Interaction OF EFT

 IMPS-IMMEDIATE PAYMENT SERVICE

 RTGS-REAL TIME GROSS SETTLEMENT
 NEFT-NATIONAL ELECTRONIC FUNDS TRANSFER

Different methods of EFT in India-NEFT,RTGS,IMPS Funds move through

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NEFT requires a moving bank and an objective bank. The National Electronic Funds
Transfer is a cross country cash move framework which permits clients with the office to
electronically move assets from their particular ledgers to some other record of a similar
bank or of some other bank organization . NEFT-NATIONAL ELECTRONIC FUNDS
TRANSFER Any amount of cash can be moved utilizing the NEFT framework with a most
extreme capital of Rs. 10,00,000.Before moving assets by means of NEFT you register the
recipient, getting reserves. For this you should have data like name of the beneficiary,
beneficiary's bank name, a substantial record number having a place with the beneficiary
and his particular bank's IFSC code.

RTGS installment passage, kept up by the Reserve Bank of India makes exchanges between
banks electronically. The moved sum is immediately deducted from the record of one banks
and credited to the next ledger's.It is a continuous finances move framework which
encourages you to move assets starting with one bank then onto the next progressively or on
a gross premise. The exchange isn't put on stand-by and got out in a split second. .The
transmitting client needs to add the recipient and his financial balance subtleties before

executing reserves by means of RTGS. The subtleties required while moving assets would
be the recipient's name; his/her record number, beneficiary's bank address and the IFSC
code of the separate bank. The base worth that can be moved utilizing RTGS is Rs. 2 Lakhs
or more. Anyway there could be no upper cap on the sum that can be executed.

IMPS is offered on all the cell gadgets by means of Mobile Banking or through SMS
office. IMPS offers moment electronic exchange administration utilizing cell phones. The
IMPS administration additionally includes a protected exchange entryway and a prompt
affirmation on satisfied requests. The National Payments Corporation of India presented a
pilot versatile installment project otherwise called the Immediate Payment Service (IMPS).
IMMEDIATE PAYMENT SERVICE .Thus IMPS empowers clients to utilize portable
instruments as a moment cash move entryway, encouraging client accommodation and
saving time and exertion

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 engaged with different methods of move.To have the option to move cash by means of
IMPS course you should initially enlist for the quick installment administrations with your
bank .

Internet Banking & Mobile Banking

Internet Banking, otherwise called net-banking or web based banking, is an electronic

installment framework that empowers the client of a bank or a monetary foundation to
make monetary or non-monetary exchanges online by means of the web. This assistance
gives online admittance to pretty much every financial help, generally accessible through a
neighborhood office including store moves, stores, and online bill installments to the
clients. Web banking can be gotten to by any person who has enrolled for web based
banking at the bank, having a functioning ledger or any monetary establishment.
Subsequent to enlisting for internet banking offices, a client need not visit the bank each
time he/she needs to benefit a financial help. It isn't simply advantageous yet additionally a
safe technique for banking. Net financial gateways are gotten by interesting User/Customer
IDs and passwords.

Special Features of Internet Banking

Here are some of the best features of internet banking:

 Provides access to financial as well as non-financial banking services.

 Facility to check bank balance any time

 Make bill payments and fund transfer to other accounts

 Keep a check on mortgages, loans, savings a/c linked to the bank account

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  Safe and secure mode of banking

 Protected with unique ID and password

 Customers can apply for the issuance of a chequebook

 Buy general insurance

 Set-up or cancel automatic recurring payments and standing orders

 Keep a check on investments linked to the bank account

Door Step Banking

There is an expanding assumption from clients for better help from their banks. The
accessibility of ATMs for 24 hour banking is additionally not seen as adequate. An ever
increasing number of clients search for completing financial exchanges sitting in their
homes or workplaces. This has prompted the idea of Doorstep Banking getting an ever
increasing number of volumes. While, the administrations to be offered are basic; the
idealness and earnestness towards the client represents a major test explicitly in light of the
fact that the geological reach are vital.

These administrations are now being taken care of well through calls and outsider
specialist organizations. Notwithstanding, to deal with higher volumes with decreased
blunders we have advanced the Doorstep Banking arrangement. As additionally
characterized in Regulatory rules, Banks presently offer the accompanying financial
administrations to the entirety of their clients at their doorstep:

• Cash get and conveyance

• Instruments/Cheque get

• Instruments (DD/PO) conveyance

To oversee/track/assess these administrations midway, there is need of powerful

framework coordinating focal unit, center branches, talked branches and specialist co-op
office. This framework should empower the
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quicker method of correspondence between focal unit, center point branches, specialist co-
op and client accordingly decreasing the turnaround time with the goal that every client is
overhauled viably.

Doorstep banking programming has been worked with a target to offer help to any doorstep
administrations suppliers. A powerful construction of each get organizations their
announcing branches and every Customer is kept up. Through framework produced
cautions each CIT is co-ordinated hence decreasing manual exertion, cost and disarray.

Importance of e-banking

We will look at the importance of electronic banking for banks, individual customers, and
businesses separately.

Banks

Lesser transaction costs – electronic transactions are the cheapest modes of transaction

A reduced margin for human error – since the information is relayed electronically, there is
no room for human error

Lesser paperwork – digital records reduce paperwork and make the process easier to handle.
Also, it is environment-friendly.

Reduced fixed costs – A lesser need for branches which translates into a lower fixed cost.

More loyal customers – since e-banking services are customer-friendly, banks experience
higher loyalty from its customers.

Customers

Convenience – a customer can access his account and transact from anywhere 24x7x365.

Lower cost per transaction – since the customer does not have to visit the branch for every
transaction, it saves him both time and money.

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No geographical barriers – In traditional banking systems, geographical distances could
hamper certain banking transactions. However, with e-banking, geographical barriers are
reduced.

Businesses

Account reviews – Business owners and designated staff members can access the accounts
quickly using an online banking interface. This allows them to review the account activity
and also ensure the smooth functioning of the account.

Better productivity – Electronic banking improves productivity. It allows the automation of

regular monthly payments and a host of other features to enhance the productivity of the
business.

Lower costs – Usually, costs in banking relationships are based on the resources utilized. If
a certain business requires more assistance with wire transfers, deposits, etc., then the bank
charges it higher fees. With online banking, these expenses are minimized.

Lesser errors – Electronic banking helps reduce errors in regular banking transactions. Bad
handwriting, mistaken information, etc. can cause errors which can prove costly. Also, easy
review of the account activity enhances the accuracy of financial transactions.

Reduced fraud – Electronic banking provides a digital footprint for all employees who have
the right to modify banking activities. Therefore, the business has better visibility into its
transactions making it difficult for any fraudsters to play mischief

1.4 FUTURE OF E-BANKING

Banks all throughout the planet are working in developing fresher innovation to change the
whole banking and monetary space. Innovation will zero in on taking out manual
endeavors in all exchanges and move towards robotization. Current strategies for login,
composing and keying exchange will be supplanted with programmed techniques like
biometrics, discourse acknowledgment, motion acknowledgment. Advanced mechanics,
stand, brilliant intelligent gadgets, and interfaces will replace Banking staff and agents.
Hardly any innovations that have been carried out as of late or being worked on in
different pieces of the world and what they will mean for the eventual fate of banking.

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 MOBILE WALLETS

Mobile wallets are instrument to make and get installments through mobile telephones.
Mobile wallets are developing at a incredible speed. The accommodation of making
installments through mobile telephones is supplanting cash installments and credit card
installments. Mobile wallets are changing the way cash exchanges occur all throughout the
planet.

The demonetisation reported by the Indian Government on eighth November 2016 will
drive more individuals to move towards mobile wallets instead of money exchanges. With
in excess of a billion advanced cell holders in India, the utilization of mobile wallets is
limited By Authentication, I allude to the interaction of a Banking client setting up his
character with the financial frameworks like Client ID and secret key on account of web
banking, PIN in the instance of ATM, Mobile PIN on account of Mobile Banking, TPIN
for the situation of telebanking. These strategies for validation will be supplanted by
Biometrics like fingerprints and Iris check, social biometrics like the manner in which
clients type in the key board, click the mouse, outward appearance (favor the face, flicker
of

eyes), signals, and discourse acknowledgment. Numerous banks in US and Europe have
effectively executed them furthermore, barely any banks in India also have begun utilizing
these strategies. With increasingly more of banking occurring through Mobile and Web,
imaginative biometric verification will become request of the day. This won't just fill the
need of client accommodation and convenience, yet in addition upgrade the security
highlights related with verification

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Now-a-days the mobile wallets are developed too fast and easy that a person from a
long distance can easily perform any of his banking activies. Some of the mobile
wallets application such as Paytm, Google Pay , Amazon Pay etc.

SMART BANKING

Innovation has been created to perform banking capacities while driving a vehicle. Versatile
Banking Apps cooperate with programming in vehicle to perceive voice and exchange can
be performed by talking with the framework. Capacities like finding a branch or ATM and
even exchange like finances move and balance check can be performed with this
innovation. While vehicles in cutting edge nations as of now have intuitive frameworks, it is
just matter of time this innovation will be broadly utilized in India also. The utilization of
savvy like Apple Watch and Android brilliant watches is developing at exceptional speed.
The innovation toconstruct banking application in keen watches is additionally making up
for lost time quick. Brilliant watches will be utilized to do banking exchanges and interface
with brokers.

We will likewise see innovation being created where clients will actually want to enter a
bank byexamining their savvy Banks in US and Europe have effectively set up Smart Bank
Branches. Savvy Branches will be automated. They are outfitted with savvy booths through
which clients can cooperate to play out their banking exchanges. Savvy branches will be
small in size contrasted with size of the current branches (1/tenth of the current branch
sizes), along these lines diminishing the expense of working a branch. Cutting edge clients
will appreciate the experience of banking in a savvy branch.

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 Robotics

Robotics will play the part of bank staff. Client will be ready to interface with Robots for
their financial exchanges. Robots will work utilizing discourse acknowledgment innovation
furthermore, outward appearance acknowledgment. While Robotics might be savvy in
cutting edge nations where cost of working banks are extremely high, it might in any case
take some time in India as the expense of Robotics will be definitely more than the
advantage. Anyway it is again a short time these advancements is brought to India

INTELLIGENT BANKING

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With progression of innovation in Data examination and Fake, comprehend their longings
and needs and offer items and administrations which will suit their requirements. The
different advances that are being eveloped (keen watch, advanced cell, and web-based media)
will all be coordinated furthermore, interface with one another empowering flawlessly
banking. For example, information from interpersonal organization media will be utilized by

banks to offer redid items and administrations, a long time before the client moves toward the
bank. Enormous information will work with information mining and investigation to show up
at client needs. The tweaked items and administrations will be advertised to their clients
through their online media account. At the point when the client acknowledges the item, the
data will be consequently steered to the financial programming, which will measure the
item/administration and delivery the credit office to the client or their recipient

. Every one of these exchange handling will be programmed with no human impedance
what's more, will be finished in a matter of no time. While a large portion of these
innovations are ahead of time phases of advancement and execution in created economies, it
is just a matter of time India will arrive, as India consistently has the historical backdrop of
jump in adjusting more current advancements.

E-BANKING GLOBAL PERSPECTIVE

The appearance of Internet has started an electronic upheaval in the worldwide banking
area. The dynamic and adaptable nature of this correspondence channel just as its
pervasive reach has made a difference in utilizing an assortment of banking exercises. New
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banking middle people offering completely new kinds of banking administrations have
arisen because of creative e-plans of action. The Internet has arisen as one of the
significant dissemination channels of banking items and administrations, for the banks in
US and in the European nations.

At first, banks advanced their center capacities i.e., items, administrations and exhortation
through Internet. At that point, they entered the online business market as

suppliers/wholesalers of their own items furthermore, administrations. All the more as of

late, because of advances in Internet security also, the approach of important conventions,
banks have found that they can assume their essential part as monetary intermediators and
facilitators of complete business exchanges through electronic networks particularly
through the Internet.

A few banks have picked a course of building up an immediate web presence while others
have decided on either being a proprietor of monetary administrations driven electronic
commercial center or being members of a non-monetary administrations driven electronic
commercial center. The pattern towards electronic conveyance of banking items and
administrations is happening somewhat because of customer interest and part of the way in
light of the expanding serious climate in the global banking industry

. The Internet has changed the customers behaviors who are demanding more customized
products/servicesat a lower price.

Moreover, new competition from pure onlinebanks has put the profitability of even
established brick and mortar banks under pressure. However, very few banks have been
successful in developing effective strategies for fully exploiting the opportunities offered
by the Internet. For traditional banks to define what niche markets to serve and decide
what products/services to offer there is a need for a clear and concise Internet commerce
strategy.Banking transactions had already started taking place through the Internet way
back in 1995

. The Internet promised an ideal platform for commercial exchange, helping banks to
achieve new levels of efficiency in financial transactions by strengthening customer
relationship, promoting price discovery and spend aggregation and increasing the reach.

Electronic finance offered considerable opportunities for banks to expand their client
base and rationalize their business while the customers received value in the form of
savings in time and money.
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Worldwide E-banking industry is covered by the accompanying four sections:

• E-banking Scenario: It discusses the real state, prospects, and issues related to E-banking
in Asia with a core interest on India, US and Europe. It additionally deals with the effect of
Ebanking on the banking business structure.

• E-banking Strategies: It reveals the key strategies that banks should implement to derive
greatest value through the online channel. It likewise brings guidance for those banks,
which are wanting to fabricate online businesses.

• E-banking Transactions: It discusses how Internet has fundamentally transformed

banking exchanges. The section focuses on cross border exchanges, B2B exchanges,
electronic bill payment and presentment and mobile payments. In spite of all the hype, E-
banking has been a non-starter in several countries.

• E-banking Trends: Itdiscuses the development of new technologies in banks

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THE INDIAN EXPERIENCE – E BANKING

India is as yet in the early stages of E-banking development and development. Competition
and changes in technology and lifestyle over the most recent five years have changed the
face of banking. The changes that have taken place impose on banks extreme guidelines of
competition and compliance. The issue here is – 'Where does India remain in the scheme of
Ebanking.' E-banking is likely to bring a large group of opportunities just as unprecedented
dangers to the fundamental nature of banking in India. The effect of E-Banking in India isn't
yet apparent.

Numerous worldwide research companies believe that Ebanking reception in India in the
near future would be moderate compared to other significant Asian countries.Indian E-
banking is as yet nascent, in spite of the fact that it is quick becoming a strategic necessity
for most commercial banks, as competition increases from private banks and non banking
monetary establishments. Despite the worldwide economic challenges confronting the IT
software and services sector, the viewpoint for the Indian business remains hopeful. The
Reserve Bank of India has additionally set up a "Working Group on

E-banking to examine different aspects of E-banking. The gathering focused on three

significant areas of E-banking Despite the worldwide economic challenges confronting the
IT software and services sector, the viewpoint for the Indian business remains

The Reserve Bank of India has likewise set up a "Working Group onE-banking to analyze
various parts of E-banking. The gatheringzeroed in on three significant spaces of E-banking
for example (1) Technology and Security issues (2) Legal issues and (3) Regulatory and
administrative issues. RBI has acknowledged the rules of the gatheringwhat's more, they
give a decent knowledge into the security prerequisites ofE-banking.The significance of the
effect of innovation and datasecurity can't be questioned. In any case, the quick
development ofthe Internet has presented a totally new degree of safetyrelated issues. The
issue here is that since the Internet isn'ta directed innovation and it is promptly available to
a great many

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individuals, there will consistently be individuals who need to utilize it to makeunlawful
additions. The security issue can be tended to at three levels.The first is the security of
client data as it is sent from the client's PC to the Web worker. The second is the securityof
the climate where the Internet banking worker andclient data set live. Third, safety
effortsshould be set up to keep unapproved clients from endeavoring tolong into the web
based financial segment of the site.

From a legitimate viewpoint, security system received by banks forvalidating clients should
be perceived by law as a substitutefor signature. In India, the Information Technology Act,
2000, inarea 3(2) accommodates a specific innovation (viz., thelopsided crypto framework
and hash work) as a methods for confirming electronic record. Some other technique
utilized by banksfor validation ought to be perceived as a wellspring of legitimate
risk..Regarding the administrative and administrative issues, just such bankswhich are
authorized and directed and have an actual presencein India will be allowed to offer E-
banking items to inhabitants

of India. With foundations getting increasingly worldwide andmind boggling, the idea of
dangers in the global monetary frameworkhas changed. The actual Regulators who will
presently be payingconsiderably more thoughtfulness regarding the subjective parts of
hazard the executiveshave perceived this. Despite the fact that the Indian Government has
declared digital laws, mostcorporate are not satisfactory about them, and feel they are
deficientfor the development of E-business. Absence of purchaser assurance lawsis another
issue that should be handled, if individuals need to feelmore agreeable about executing on
the web.

Tax assessment from E-business exchange has been perhaps the mostdiscussed issues that
are yet to be settled by India and generally othernations. The touchy development of web
based business has driven numerousheads to address how their organizations can
appropriatelydirect expenses on Internet deals. Without deals charge, online merchantsget a
value advantage over physical organizations. While web based business has been making
loss of duty incomes theGovernment, numerous lawmakers keep on demanding that the Net
mustremain tax-exempt to guarantee proceeded with development, and that gatheringdeals
charges on Net trade could limit its extension.

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 CHAPTER 2

RESEARCH METHODOLOGY

2.1 AN INTRODUCTION TO RESEARCH METHODOLOGY

Research Methodology – is an approach to methodicallly tackle a research issue. It is a

study of concentrating how research is done logically. Basically it is the method by which
the researchers approach their work of portraying, assessing and foreseeing marvel. It
expects to give the work plan of research.Research methodology is an approach to
deliberately tackle the research issue. It could beperceived as a study of concentrating how
research is done deductively. In it we study the differentsteps that are by and large received
by a researcher in contemplating his research issue alongside the rationalebehind them. It is
fundamental for the researcher to know not just the research strategies/methodsyet in
addition the methodology. Researchers not just need to realize how to build up certain
records or tests,apply specific research procedures, yet they likewise need to know which of
these strategies or methods,are significant and which are not, and what might they mean and
show and why. Researchers tooneed to comprehend the suppositions hidden different
methods and they need to know the rulesby which they can conclude that specific strategies
and techniques will be material to specific issuesalso, others won't. This implies that it is
fundamental for the researcher to plan his methodologyfurthermore, on what premise he
chooses specific size, number and area of entryways, windows and ventilators,the research
Page39
 choices to assessment before they are carried out. He needs to indicate unmistakably
andcorrectly what choices he chooses and why he chooses them with the goal that they can
be assessed by others moreover.

2.2 OBJECTIVES OF E-BANKING

 To Understand the Perception of customers about mobile banking system.

 To determine the impact of E-Banking services on customers mode of transactions.
 To know about the new technology and recent trends in Banking sector.
 To identify various e-banking services / function adopted by Indian banks.

2.3 Advantages and Limitations

All the advantages of e-banking are closely related to each other; from convenience
to efficiency, I have list out 10 advantages of net banking.

 Benefits and Rewards

 Notifications and Alerts
 Faster Transactions
 Convenience

 Security

 Easy Access
 Speed and Efficiency
 Lesser Limitations
 More Features
 Better Customer

Service Let us look at them

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one by one. Benefits and

Rewards

A ton of online banks offer more advantages and awards to their clients that advantage the
bank as well as advantage their clients. Online banks will offer higher loan fees and better
exchange administrations to their clients who routinely utilize web based banking. This
happens halfway because of the way that the banks need to bear diminished costs when
serving on the web clients. Thusly, the general financial experience is clearly better
compared to that of visiting an actual bank office and taking care of a similar exchange.

Notifications and Alerts

Clients are immediately cautioned or told about new changes in the framework. From
changes in the approach to logins from new gadgets, clients get moment warnings and
notification. Be that as it may, in case you're related with a genuine bank, you would
presumably get a text-based notification or a client care specialist will call you to inform
about significant changes. Odds are, you're passing up a great deal of changes. Banks
additionally underwrite new items, administrations and plans like new speculation
choices, changes in the credit approaches, and so on to online clients first.

Faster Transactions

E-Banking provides faster transaction facility for its customer an instant money transfer
features which helps the customers for fast and safest money transfer in their particular
accounts directly .People don’t need to stand in queue for the transfer of money in banks,
E- banking services also helps in eco-friendly atmosphere as there is less paper works and
its safe lots of time for the customers.

Convenience

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You can advantageously deal with your record exchanges without all the problem of being
in the line on a hot evening. E-banking is very advantageous in the event that you have a
fair web association (wifi or 5G/4G information). You can get to the site from anyplace
without really visiting the bank. On the off chance that your financial necessities don't
include the help of any staff part or an administrator, web based banking is the most ideal
choice for you.

Security

With E- banking, you can generally screen your record exercises.This not just fills in as a
background marked by every one of the exchanges yet additionally causes you distinguish
dangers and dubious exercises before any serious harm should be possible to your record.
Online records are secured with encryption programming that guarantees total wellbeing
to the client. Alarms identified with passwords and computerized marks are sent
intermittently to keep up the security of the record.

Easy Access

Customers can enjoy easy access with online accounts by simply typing in the log-in
credentials. In addition to that, customers can also handle several accounts at a time.Since
the internet remains the medium of connection, users can also access different accounts in
different banks from a single device.

Speed and Efficiency

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In a rush to apply for an educational loan? Or on the other hand rapidly need to take care of
paying bills? Or then again play out any financial exchange without squandering a large
portion of your day? Do it by means of the web. There's no holding up nor do you need to
race through anything – you can take as much time as is needed and play out all financial
exchanges with tolerance and it will be done in almost 1/tenth the time spent on really
driving down to the bank and completing it.

Lesser Limitations

Traditional banking have a few imperatives like working hours, the actual area of the bank
office, occasions, and so on .You don't need to contemplate whether it's an occasion with
web based banking, or what time is it to play out an exchange. Be it Sunday or the center of
the evening and you can in any case do everything (and considerably more) through their
application or site as it's accessible 24 hours per day, consistently.

More Features

Aside from being adaptable, a few banks make a special effort to fulfill their clients by not
punishing on withdrawals on the endorsement of stores, allowing clients to keep up
accounts with no base equilibrium, and so forth .Additionally, banks commonly offer more
offers and limits using a loan and check cards utilized by clients who have online records.

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 Better Customer Services

Banking sites and applications accompany redid pages to address client inquiries and
regularly have a devoted 'Habitually Asked Question' (FAQs) area that helps in noting
basic client questions. You can talk with a client care specialist or call them on the off
chance that you need more assistance. This saves the hour of the clients as well as that of
the bank representatives who can move their concentration to more significant things.

Disadvantages of e-banking

“Every bean has its black”

Everyone and everything has some shortcomings.

Similarly, there are some limitations of net banking; from security to technology issues,
I have list out 7 disadvantages of net banking.

 Difficult for Beginners

 Trust and Responsibility
 Inconvenience

 Security Issues
 Technology Issues

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  Complicated Websites
 Other Limitations

Difficult for Beginners

New customers regularly face trouble in attempting to get the hang of e-banking. At first,
clients are frightened of losing their cash and are frequently reluctant to investigate every
one of the alternatives and highlights that are accessible on the site or on the application.
New clients frequently surrender and stick to conventional banking if ideal help isn't given.

Trust and Responsibility

Counterfeit sites and phishing destinations are regular in this time of innovation.
Can you truly confide in all sites? Is it insightful to confide in an online webpage
with all your cash? Consider the possibility that the site overlap up and all your cash
is no more. This wouldn't occur in a genuine bank. There is trust between the bank
and their clients – you realize your cash is protected with the bank – on the grounds
that they assume liability for your cash.

Genuine banks are lasting and dependable while a few sites are

definitely not. Inconvenience

Indeed, online banks are open consistently yet they are a genuine motivation of
burden in specific occurrences. For instance, on the off chance that you get bolted out
of your record you will be not able to play out any financial exchanges. Be that as it
may, in a genuine bank, you build up associations with the staff, who know you on an
individual level and will actually want to help you in such cases. You wouldn't need to
be on the telephone disclosing your circumstance to an obscure client assistance
specialist which coincidentally, may likewise require a few days. Additionally, a couple
of online banks don't permit money

stores. To store money, you will be needed to email a check and move cash from
another record or bank, or utilize their e-check store administration.

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Security Issues

Of course, most banks are very much rumored and set up, there are times when you
face security issues. There's consistently a danger of real as well as fraud. It's
additionally conceivable to get unapproved admittance to your record by means of a
taken or hacked sign in accreditations.

Technology Issues

If you don’t have a decent connection or there are bugs in the software, or say, there is a
power cut or maybe the servers have gone down – websites are bound to crash and you will
undoubtedly face a lot of technological issues.While you may get various types of customer
service at the moment but sooner or later, you will get frustrated. However, someone is
always around to help you in a real bank.

Complicated Websites

A few sites resemble a page directly from an excessively intricate logical analysis. Written in a
mysterious code language with peculiar text styles and tones. That is to say, sure a few sites are basic
and you can complete every one of the things in a jiffy. However, a few sites are out and out
convoluted and befuddling. With pop-ups, blunders, interfaces, and interlinks, redirections to
presumably 1,000,000 pages, it gets truly hard to comprehend

2.1METHODS OF DATA COLLECTION

The undertaking of information assortment starts after an examination issue hasbeen

characterized and research configuration/plan chalked out. While choosing about the
technique for informationassortment to be utilized for the investigation, the scientist
should remember two kinds of information viz.,essential and auxiliary. The essential

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 information are those that are assembled new and interestingly,what's more, hence
happen to be unique in nature. In the other hand, the optional information are those
thatanother person has effectively acquired and which have effectively been passed
into the factualmeasure.The techniques for gathering essential and auxiliary
information vary since essential information are to beinitially gathered, while if there
should arise an occurrence of auxiliary information the idea of information
assortment work is onlythat of assemblage.

The methods of collecting primaryand secondary data differ since primary data are
to beoriginally collected, while in case of secondary data the nature of data
collection work is merelythat of compilation.

Primary data :: I myself have collected the data for this project primarily to know the
situation faces or development required by the people under this project .To collect
primary data I have created a simple questionnaires for e-banking services in India and
shared to the people to know the response about what they think about the services on
E-banking in India .

I have made this questions to fulfill my objectives for the project. While collecting
the data from the people I have collected their Age , income groups , Gender in
according to know which group of people are here to fill up the questionnaires.

Following are my 16 questionnaires which I had asked the people about the project
and their responses .

Sampling technique :Since the information required was not very technical in nature .
to get my objectives done and also looking for the other content of the project . the
sampling technique employeed is based on form .

Sample Size : The sample size is 65 . Respondents were spread across various age
groups , professional individual , students of commerce background etc.

Data interpretation : Data interpretation is done by using statistical technique like

Pie diagram .

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Secondary Data : Secondary data are the data that has been already collected by the
researcher and its is readily available from the other sources . Such data are less
expensive and more rapidly possible than the primary data and furthermore might be
accessible when primary data can't be gotten by any stretch of the imagination.
Fundamentally, secondary data give the exploration to see more about the subject and
give more clear viewpoint and view on the current investigation.

The study of secondary data has been collected by various other materials such as
journals , reports given by the government , various websities with more aspects for e
banking services
, popular banking sities which has focused on the topic .

CHAPTER 3
LITERATURE REVIEW

AN INTRODUCTION

The possibility of "literature" generally evokes pictures of dusty books that you are
needed to peruse for English,American, or World literature classes. The "literature"
in a literature review, nonetheless, alludes to all thepast exploration and grant on a
specific point, regardless of what discipline you are examining; the"review" is your
clarification of what the literature says.A literature review is the blend of the
accessible literature with respect to your exploration subject.

This amalgamationcombines the finishes of a wide range of sources to clarify the

general comprehension of the subject, accordinglyestablishing a framework for both
the examination question and essential exploration. Albeit a literature review willrefer
to sources and ought to talk about the believability of the sources included, it is more
than a commented onbook index. Your literature review needs to review every one of
the critical sources on a point, paying little mind toregardless of whether they support
the cases you will in the long run be pursuing.

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The following is brief review of literature done by different researchers worldwide in the area of e-
commerce.

Maiyaki and Mokhtas (2010) shown in their research that there is no relation in between population
statistics and choice of banks. It was also found that statistically there is a significant relationship
between age and choice of banks. Selvam and Nanjappa (2011), in their study, examined customers
awareness and satisfaction about e-banking of

ICICI bank on the basis of vital statistics of the E-banking users. It depicted that college students are
more awareness level compares to other education groups. The study reveale that awareness level of
income group above 10,000 per month was high as compared to other income groups. It was shown
that it also depend on the size of family. Gender is the crucial issues for the acceptance of internet
banking. Gupta & Mishra (2012) examined the new emerging trends of E-banking in Indian banking
industry.

The study found that there are many challenges faced by banks in E-banking and there are many
opportunities available with the banks. It concluded that banking sector will need to master a new
business model by building management and customer services. It also suggested that banks should
contribute intensive efforts to render better services to their customers. Chavan (2013) described the
benefits and challenges of Internet banking in an emerging economy. It observed that online banking
is now replacing the traditional banking practice.

It showed that online banking has a lot of benefits which add value to customers satisfaction in terms
of better quality of service offerings and at the same time enable the banks gain advantage over the
competitors. It also discussed some challenges in an emerging economy. Trivedi & Patel (2014)
analysed the problems faced by customers while using e-banking facilities in India. It observed that
most of the customers know about the e-banking services offered by their bank.

The study found that there is a significant difference amongst different problems identified while
using e-banking services. It also found that some problems affect more and some problems affect less
in use of banking services. It concluded that all the reasons are not equally responsible for not using e-
banking services. Haq & Khan (2015) analysed the challenges and opportunities in the Indian
Banking sector. The study showed that only 28 per cent banking clients were using internet banking
after evaluating the population characteristics. It found that there was no significant relationship in
between age and use of cyber banking. It also depicted that there is no relation in between gender and
the adoption of internet banking.

It observed that qualification in terms of education and income of the respondents were playing the
role in the acceptance of online banking. The study suggested that it is the need of time that financial
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literacy of the users should be increased through various programs which should be run by banks to
increase the awareness of internet banking.

The colossal advances in innovation and the forceful imbuement of data innovation had
gotten a change in outlook in financial activities. With the improvement of data
innovation, the world has become a worldwide town and it has gotten an upset the
financial business. The banks have all the earmarks of being on quick track for IT
based items and administrations.

Bank clients are getting extremely requesting and it is the broad utilization of
innovation that empowers banks to fulfill satisfactorily the prerequisite of clients.
Innovation has become the fuel for quick change.

IT is not, at this point considered as simple exchange preparing or limited to the

executives data framework. The breeze of advancement, globalization, and
privatization has opened new vistas in the financial business in the age of a seriously
serious climate. The post-changed financial industry in India has been seeing a
perceptible move from the venders' to the purchasers' market. Further the financial
area changes and presentation of E-banking has rolled out extremely primary
improvements in assistance quality, administrative choices, operational execution,
benefit and profitability of the banks. E-banking is one of the arising patterns in the
Indian banking and is assuming an extraordinary part in reinforcing the financial
area and improving assistance quality. It has empowered the banks to deal with the
installments electronically and interbank settlement quicker and in enormous
volumes.

There is expansion in consumer loyalty level, decrease in cost of banking activities,

expanded profitability and as such there is a huge extension for Indian banks to grow
their E-banking administrations which could upgrade their intensity.

Further, new innovation has quickly changed the customary methods of doing
banking business. Clients can see the records, get account explanations, move
reserves, buy drafts simply by making a couple of key punches. Accessibility of ATMs
and plastic cards, EFT, electronic clearing administrations, web banking, portable

banking and telephone banking; generally maintain a strategic distance from clients
going to branch premises and has given a more extensive scope of administrations to
the clients. This paper investigates long haul future patterns in E-banking by giving a
writing survey and examination of future investigations. The future patterns

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 incorporate long spreading over megatrends notwithstanding more limited term
estimates of the approaching marvels. In view of the examination, some key patterns
are perceived dependent on their likely effect on financial administrations.

The key patterns are investigated and examined for their effect on future E-banking
administrations. At last, we reach a few inferences of the principle advancement
bearings in E-banking.

- Shilpi Khandelwal

International Journal of Management (IJM) 3 (3), 200-215, 2012

Banks receive E-banking as a way to supplant their customary conveyance channel

through branch banking chiefly because of the expense of setting up of actual
branches and expanded overheads partner with looking after them. While receiving
any new channel of administration conveyance, administration is one of the essential
advantage which a client anticipates from the specialist organization.

The shoppers thinks about the advantages and gauge them against the expenses
related with the help. E–Banking administrations are step by step supplanting the
conventional financial administrations. To acquire upper hand over the contending
banks, the banks are constantly improving their administrations through e- banking
administrations. This paper has inspected surveys gathered nearby e-banking
administrations which incorporates Internet Banking, ATM banking, Mobile banking
and so on

-P Suja, Nirmala Raghavan

International Journal of Marketing and Technology 4 (1), 166, 2014

Today, e-banking is utilized as an essential instrument by the worldwide financial area

to draw in and hold clients. The current paper is the result of an observational
examination directed with the goal of exploring brokers' perspectives in regards to
ebanking. It covers brokers' viewpoints on e-banking exercises of respondents, effect of
e-banking and limited time estimates utilized by banks to advance ebanking. The
review information utilized in this exploration are gathered through a poll in Northern
district of India by managing to 192 investors. The enquiry uncovers that clients for the
most part use e-Banking administrations on influence of brokers.

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Client transport is for the most part focused on experts, business class and guys having
a place with middle age. The investors are persuaded that e-banking helps in
improving the connection among brokers and clients and that it will acquire patent
improvement the general presentation of banks. Undoubtedly, print media is at the top.

-Himani Sharma

Global journal of Research in Management 1 (1), 71, 2011

The new remarkable development of Internet has made the web based banking
famous. It has become vital piece of life for some individuals. Yet at the same time
most of individuals have presumably not attempted it yet conceivably in light of the
fact that the sites of the banks are too confounded to even consider understanding and
explore. It has subsequently gotten imperative to assess the nature of the financial
sites. The greater part of the examinations in the writing on financial sites have zeroed
in on assessing the nature of administrations of these sites. In this paper we have
researched the primary properties of the sites with accentuation on safeness
investigation of these business locales. Additionally assessed the relationship between's
the safeness, ubiquity and significance of the Web destinations

-Arvinder Kaur, Diksha Dani

International Journal of Information Technology and Computer Science (IJITCS) 5

(5), 29, 2013

Advanced account which is encouraged by electronic banking is totally central for

understanding the formative destinations of arising economies. Accomplishment of
administration advancements in the field of electronic banking relies generally upon
the insights and utilization examples of the expected clients of such administrations.
This paper gives an account of an examination that explored clients' use of
electronic financial administrations in a multi‐channel setting.

As e‐banking utilization is discovered actually low, banks have scope for additional
proliferation of innovation and receiving its rewards. With the incorporation of
innovation, banks ought not disregard the significance of representatives as manual
and electronic banking are discovered correlative to one another.

There is still need to simplify electronic banking and more got as these are the
significant inhibitors of complete dependence on electronic media.

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-Supreet Sandhu, Sangeeta Arora

International Journal of Finance & Economics, 2020

Following were the some of the review for the E-banking services in India .

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 CHAPTER 4

DATA ANALYSIS, INTERPRETATION AND

PRESENTATION

Following are the analysis of the questionnaires which I had asked the people
about the project and their responses

Q.1

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Q.2

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Q.3

Q.4

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Q.5

Q.6

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Q.7

Q.8

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Q.9

Q.10

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Q.11

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Q.12

Q.13

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Q.14

Q.15

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Q.16

Q.17

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Q.18

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Q.19

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 CHAPTER 5

CONCLUSIONS AND SUGGESTIONS

FINDING AND SUGGESTION

The most reason for which people are opting E-Banking services is an account from an
private sector banks that helps in interconnectivity between the branches and provide
e banking services with great benefits to the people .The people having high income
are more concerned for the e-banking services as compared to other average and low
income group Still many people prefer co-opreatives as their first choices due to the
facility of same day clearing due to e-banking revolution .People having their business
in different places mostly prefer to have an account with private or those account who
provide e-banking services online ,as they require online banking services for their
business for e.g fund transfer , demand draft , online ppf account etc. The use of E-
banking services is still not up to the mark as expected by the banks . this requires
awareness among the people about the benefit of e-banking services . the people /
customers should be educated about the e-banking services and their benefits this
would help the banking sector as a long run in the future .

The other E-banking services such as ATM , Smart cards , mobile banking etc. plays a
vital role in banking sector . the customers need to know about the use these
services ,sometimes the customers face a lot of issue while using the online machines as
they are need to be more simple and customers can work on it in an easy way .E-
banking services are more popular among the young generation which constitutes
maximum range of Indian population as compared to the older generation. Most
people does not join the services of e-banking as they are concern with the security the
chances of data leaked or hacking of the account details has made fear on the
people .the Indian banking sector needs to maintain their technology secure to their
customers .

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CONCLUSIONS

It has been found that due to technological innovations and significant change in the
demographic profile of the customers there is a huge market for the banking
industries has developed . the rise of internet banking has increase the competition for
your banking business. With both online and traditional banks offer unique benefits
and drawbacks .E- banking offers several benefits to the people , along with thus
benefit some problems are being addressed . problem such as lack of securities , lack
of acceptance and lack of knowledge about the technologies have appear to the
development of e banking services in India .through an institutional framework is
required for overcoming this problem . the banks can provide awareness classes and
training to people to reduce the problem related to the e banking services in India .

E-banking enable better business anywhere , at any point of time . E-banking

represent tremendous opportunity in India . However, factors such as illiteracy
in India and slow growth of technology in India are responsible for the growth
of E-banking in India .

In short, the E-banking services has become a necessary survival weapon . today, the
click of the mouse and fingers touch on the mobile screen offers customers banking
services at much lower cost and very easy to accessable in their financial needs .

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 CHAPTER 6

BIBLOGRAPHY

Website:

https://www.researchgate.net/

https://shodhganga.inflibnet.ac.in/

https://scholar.google.com/

https://books.google.co.in/

https://issuu.com/

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https://www.rbi.org.in/

http://iibf.org.in/iib_financeinclusion.asp

edusanchar.com

Journals :

Shilpi Khandelwal

International Journal of Management (IJM) 3 (3), 200-215,

2012 P Suja, Nirmala Raghavan

International Journal of Marketing and Technology 4 (1), 166,

2014 Himani Sharma

Global journal of Research in Management 1 (1), 71,

2011 Arvinder Kaur, Diksha Dani

International Journal of Information Technology and Computer Science (IJITCS) 5

(5), 29, 2013

Supreet Sandhu, Sangeeta Arora

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 International Journal of Finance & Economics, 2020

CHAPTER 7

ANNEXURES

Questionnaire

Following are my 16 questionnaires which I had asked the people about the project .

1. What is your age ?

 18-22
 23-26
 27-30
 31 and more

2. Occupation ?
 Business
 Services
 Student
 Salaried professional
 Others

3. Do you know about e-banking services ?

 Yes
 No
 May be

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 4.Which type of account do you have in bank?

 Current

 Saving

 Fixed

5. If there is an error in transaction how much time it take to be solved by bank?

 Immediately

 One day

 Two day

 A week

 After visiting bank

6. Do you ever faced any fraud related to E-banking apps?

 Yes

 No

7. Do you have your own bank account?

 Yes

 No

8..If yes, how do you come to know about e-banking / mobile banking ?

 Television
 From bank employee

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  Newspaper , magazines , other print ads
 Internet
 Friends family ,colleagues using the services
 Others

9.Is e-banking services through mobile saves a lot of time ?

 Strongly disagree
 Disagree
 Neutral
 Agree
 Strongly agree

10.Does mobile banking is too complicated to use?

 Strongly disagree
 Disagree
 Neutral
 Agree
 Strongly agree

11.How frequently do you use mobile banking / internet banking services per month?(for
e.g balance inquiry,fund transfer ,between accounts , etc).

 Never
 1 to 4 times
 5 to 8 times
 9 to 12 times
 Over 12 times

12..How often do you use an automated teller machines (atm) each month ?
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  Never
 1 to 2 times
 3 to 5 times
 5 or more

13.What is the main reason that you typically visit your bank branch ? (please choose the
single most important reason )
 Make a deposit
 investment advice
 balance inquiry , passbook printing etc.
 Cash withdrawal
 Other

14..Do you know about banking software application (such as google pay , paytm , phone pe
etc) ?
 Yes
 No
 May be

15.If yes , how frequently do you use this apps for bill payment , amount transfer
,booking of tickets etc ?

 Never
 Occasionally
 Sometimes
 Often
 Always

16.What banking services do you use which your internet bank offers the most ?
 Check balance online
 Online bill payments
 Personal banking transaction activity
 Other

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17.Do you enjoy cashback and other offers given by your bank ?
 Yes
 No
 May be

18.Do you know about unified payments interface (upi)?

 Yes
 No
 May be

19.If yes, do you agree with the services of upi made by the national payments
corporation of india (npci) is benefit to you ?
 Yes
 No
 May be

20.What are the main reason that you have not opened an internet bank account or upi ids/ wallets ?
 Never heard
 Concerned about security
 Too new . I wolud like to see how it works, then i may open an account
 Not available through my bank
 Others

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