APr

ojectOn

SERVI
CESPROVI
DEDBYBANKTHROUGHE-
BANKI
NGI
NINDI
A

SUBMI
TTEDBY

Ar
bazkhan

FORTHEDEGREEOFBACHELOROFACCOUNTI
NGFI
NANCESTUDI
ES

(
SEMESTER-6)

UNDERTHEGUI
DANCEOF

PROF.GAYATRINAYAK

KARMAVEERBHAURAOPATI
LDEGREECOLLEGE

THANE–WEST,
THANE–400604

ACADEMI
CYEAR-2019-
20
 APROJECTON

SERVI
CESPROVI
DEDBYBANKTHROUGHE-
BANKI
NGI
NINDI
A

UNI
VERSI
TYOFMUMBAI

SUBMI
TTEDBY PROJECTGUI
DE

ARBAZKHAN PROF.GAYATRINAYAK

I
NPARTI
ALFULFI
LMENTFORTHEAWARDOFTHEDEGREEOF“BACHELOROF
ACCOUNTI
NGFI
NANCETYBAF’’

SEMESTER-VI
 CI
RTI
FICATE

(
2018-
19)
Dat
e:-

Pl
ace:
-Thane(
W)

Thisist o cer
ti
fyt hat Mr.Arbaz khan ofB.COM (account
ing & f
inance)
Semest er VI(2018-2019) has successful
l
y completed the proj
ect on
“SERVICESPROVI DEDBYBANKTHROUGHE- BANKI
NGI NI NDIA”Undert he
guidanceofProf.Gayat
riNayak

(
___
__)(
___
__)
(
Prof
.Gay
atr
iNay
ak)

Pr
ojectgui
deexami
ner

Cour
ceco-
ordi
nat
or&pr
inci
pal
 DECLARATI
ON

I,MR.Ar bazkhanher eby,decl

aretheworkembodi edi
nt hi
sprojectwor kti
tl
ed
“SERVI CESPROVI DEDBYBANKTHROUGHE- BANKINGI NINDIA” formsmyown
contributi
ontoresearchwor kcarr
iedoutundertheguidanceofMr s.Gay at
riNayaki
sa
resultofmyownr esearchworkandhasnotbeenpr ev
iouslysubmittedtoanyother
universit
y.Whereverrefer
encehasbeenmadet oprevi
ouswor ksofot her,i
thasbeencl
ear
ly
indi
cat edassuchandi ncludedinthebibl
i
ography.

Iher
eby,f
urt
herdecl
arethatal
linf
ormati
onofthisdocumenthasbeenobt
ainedand
pr
esent
edinaccor
dancewit
hacademicr
uleandet
hical
conduct
.

Cer
ti
fi
edby
Ar
bazkhan
Gay
atr
iNay
ak
 ACKNOWLEDGEMENT

Iwouldli
ket
oacknowledgethefoll
owingasbei
ngideal
i
sti
cchannel
sandfr
eshdi
mensi
ons
inthecompl
eti
onofthi
sproject
.Itakethi
soppor
tuni
tytot
hanktheUni
ver
sit
yofMumbai
forgiv
ingmechancetodothisproj
ect.

Iwouldl
iketoexpressmysi nceregrat
it
udetowardsmyPr ojectGui
deMr s.Gayat
ri
Nayakwhoseguidenceanscar emadet heproj
ectsuccessf
ul.Iwouldl
i
ket othankmy
Col
legeLiabr
ary
,forprovi
dingv ar
iousref
rencebooksandmagazi nesr
eletedtomyproj
ect
.

Last
ly,Iwouldl
iket
othankeachandever
ypersonwhodirect
lyori
ndi
rectl
yhel
pedmei n
complet i
onofmyproj
ectespeci
all
ymyparent
sandfr
iendswhosupportedmethroughtout
myproj ect.
 KARMAVEERBHAURAOPATI
LDEGREECOLLEGETHANE,

THANE–400604
I
NDEX

CHAPTERSCHEME

Thi
sresear
chhasbeenorganizedi
ntosixdi
ff
erentchapt
ers&al
soi
ncl
udesbibl
i
ography
.It
i
scarri
edoutt
oseethevariousaspect
sofonli
nebankingonecommer
ceinIndi
a.

CHAPTERONE–I NTRODUCTION
Thi
schapteri
sbasical
l
yinbri
efaboutastowhatisonl
i
nebanki
ngone-
commer
cei
nIndi
a
&alsoi
ncl
udesvar
iousaspect
sofonlineore-
banki
ng.

CHAPTERTWO–REVI EW OFLITERATURE
Thi
schapt
erdi
scussesi
ndetai
laboutthevar
iousdimensi
onsofe-
banki
ngandhowt
her
e
i
sagrowthint
heeconomyduet oonl
ineore-
banking.

CHAPTERTHREE-CURRENTSTATUSOFE-BANKI
NGI NINDIA
Thi
schapt
erwil
lhel
pusinknowi
ngaboutt
hecur
rentst
atusofI
ndi
aine-
banki
ngi
nbr
ief
.

CHAPTERFOUR–METHODOLOGYANDDATACOLLECTI ON
Thischapterwil
lcontai
nadetai
l
eddescript
ionofther
esear
chobj
ect
ives&f
ocusonthe
study.Thedatawouldbecoll
ectedt
hroughasurveymethodwer
eagroupofpeopl
ewil
lbe
askedv ar
iousquesti
ons.

CHAPTERFIVE–DATAANALYSI
S
Thedatawhi
chwi
ll
becol
l
ectedf
rom t
hesur
veymet
hodwoul
dbef
urt
heranal
ysedi
nthi
s
chapt
er.

CHAPTERSI X–CONCLUSI ON
Thischapterwill
beaconcludi
ngchapterasi
twilli
ncl
udeallthedat
aanal
ysis,diff
erent
thingsononlinebanki
ng&alsothenewerconceptswhichhavebeenint
roduced.Itwill
alsodiscussthefutur
escopeofe-
bankingoronl
inebankingonecommerceinI ndi
a.

SYNOPSI
S
I
NTRODUCTI
ON
Themostpopul
ardef
ini
ti
onofe-
commer
cei
sbasedont
heonl
i
neper
spect
iveoft
he
conduct
ed busi
ness.Onl
i
ne Banki
ng i
s becomi
ng an i
mpor
tantaspectofwor
ldwi
de
commer
ce.Onl
i
neBanki
ngpr
ovi
desbanksanew&mor
eef
fi
cientel
ect
roni
cdel
i
ver
ytool
.
Onl
i
neBanki
ngi
ncl
udesv
ari
ousbanki
ngact
ivi
ti
esconduct
edf
rom homebusi
ness,
inst
ead
ofataphy
sicall
ocat
ion.Onl
i
nebanki
ngf
ocusesont
heE-
Commer
cef
rom t
heper
spect
ive
ofcust
omer
s& banksi
nIndi
a.E-
Banki
ngi
sdef
inedasaut
omat
eddel
i
ver
yofnew &
t
radi
ti
onalbanki
ngpr
oduct
s&ser
vicest
hroughel
ect
roni
c&i
nter
act
ivecommuni
cat
ion.I
n
onl
i
nebanki
ngy
oucant
ransf
ermoneybet
weenaccount
s,r
evi
ewpastst
atement
s&cr
edi
t
car
dtr
ansact
ions.Onl
i
nebanki
ngcal
cul
atet
hei
nter
estt
obepai
donl
oans&cr
edi
tcar
ds
wi
thi
nfr
act
ionofsecondsatanyt
ime&atanypl
ace.

Thef
utur
eofweb-
basede-
banki
ngi
ndev
elopedar
easappear
sbr
ightbutconsumer
s&
mer
chant
sindev
elopi
ngcount
ri
esf
acei
nnumberofbar
ri
ersofsuccessf
ule-
banki
ng,
i
ncl
udi
ngl
essr
eli
abl
etel
ecommuni
cat
ionsi
nfr
ast
ruct
ure&powersuppl
i
es,l
essaccesst
o
onl
i
nepay
mentmechani
sms& r
elat
ivel
yhi
ghcost
sforper
sonalcomput
ers& i
nter
net
access.

RATI
ONALE
Banki
ngI
ndust
ryi
nint
ernetbanki
ng meansanyuserwi
thaper
sonalcomput
eroral
apt
op
& abr
owsercangetconnect
edt
ohi
s/herbankwebsi
tet
oper
for
m anyoft
hev
irt
ual
banki
ng f
unct
ion.Onl
i
nebanki
ngenabl
escust
omer
stosav
eti
me,t
akecont
roloft
hei
r
per
sonal
finances&ev
enhel
ptheenv
ironmentbyopt
ingt
orecei
veel
ect
roni
cst
atement
s.

OBJECTI
VES
1. Todoadet
ail
edr
esear
chaboutonl
i
nebanki
ngore-
banki
ngofe-
commer
cei
nIndi
a.
2. Tounder
standt
hev
ari
ousaspect
sofonl
i
nebanki
ng.
3. Tounder
standast
ohowonl
i
nebanki
ngi
sbenef
ici
alt
otheeconomyasawhol
e.
 4. Tost
udyt
her
elat
ionshi
pbet
weenbanks&cust
omer
s
5. Tost
udyt
hecust
omer
’sper
cept
ionaboutonl
i
nebanki
ngi
nthepr
ivat
esect
orbanks.
6. Toknowast
owhypeopl
epr
eferonl
i
nebanki
ng&howi
situsef
ult
othem.

METHODOLOGY
Thi
sst
udyhasbeenunder
takent
odoar
esear
chone-
banki
ngoronl
i
nebanki
ngi
nIndi
a.
I
tiscar
ri
edoutt
hroughasur
veymet
hodwher
eagr
oupofpeopl
ehav
ebeengi
ven
googl
efor
msandar
ebeenaskedt
oshar
ethei
rvi
ews.
I
tanal
ysesbot
hthepr
imar
yaswel
last
hesecondar
ysour
cesofdat
a.Thepr
imar
ydat
a
i
scol
l
ect
edbyconduct
ingasur
vey&aski
ngpeopl
evar
iousquest
ionst
othepeopl
e.
Thequest
ionsaskedi
nthesur
veycanbeanswer
edbyanyper
sonf
rom 18-60y
ear
sof
age.Thesecondar
ydat
aiscol
l
ect
edf
rom t
hei
nter
net
,jour
nal
sandv
ari
ousar
ti
cles
whi
chgi
veusdet
ail
sregar
dingonl
i
nebanki
ng.

ABSTRACT

Onl
i
nebanki
ngi
sbecomi
ngani
mpor
tantaspectofwor
ldwi
decommer
ce.Theonl
i
ne
banki
ngsy
stem hasdev
elopedt
oov
err
idet
hepr
obl
em pr
evai
l
ingi
nthepr
act
ici
ng
manualsy
stem.I
tisast
rat
egi
ctoolbyt
hebanki
ngsect
ort
oat
tractorr
etai
nit
s
cust
omer
sasi
tisuserf
ri
endl
y.Onl
i
nebanki
ngorE-
banki
ngi
sbasedoni
nter
netorweb-
basedi
nter
act
iont
ocr
eat
eahi
ghv
olat
il
erel
ati
onshi
pint
hebanki
ngsect
or.Quest
ions
r
elat
edt
oonl
i
nebanki
ngwer
easkedi
nwhi
chopt
ionsofy
es,
no,
may
be,
etc.wer
egi
ven
t
othepeopl
e.Af
teranal
ysi
s&compar
isonofonl
i
nebanki
ngt
otr
adi
ti
onal
banki
ngmany
peopl
esai
dthatt
heypr
efer
redonl
i
nebanki
ngi
nIndi
a&al
soagr
eedt
hatt
heeconomy
oft
hecount
ryi
sincr
easi
ngduet
oit
.Onl
i
nebanki
ngpr
ovi
def
lexi
bil
i
ty,ef
fi
ciencyof
wor
k&al
sopr
ovi
desecur
it
y.
Thef
utur
escopeofst
udyofonl
i
nebanki
ngi
sist
hati
treducest
ransact
ioncost
s.
KEYWORDS–Onl
i
nebanki
ng,
e-banki
ng,
vir
tual
banki
ng

CONTENTS

I
NTRODUCTI
ON
Wor
ldwi
de,
thef
iel
dofbanki
nghasmadeconsi
der
abl
epr
ogr
essandt
heuseofI
nter
net
t
echnol
ogyhasbecomeav
erypower
fulf
orcechangi
ngt
hev
erycor
eoft
radi
ti
onal
banki
ng.I
nter
netBanki
ngi
sgi
vi
ngcompet
it
iveadv
ant
aget
obanksbypr
ovi
dingt
hem
an unl
i
mit
ed di
str
ibut
ion net
wor
k.The f
utur
e hol
ds wi
de v
ist
as i
nter
ms ofwhat
t
echnol
ogy can do.Banks t
hrough t
echnol
ogy ar
e now abl
eto pr
ovi
de ser
vices
el
ect
roni
cal
l
yandsuchser
vicesar
elower
ingt
ransact
ioncost
sandaddi
ngv
aluet
othe
cust
omer
-bankerr
elat
ionshi
p.I
nter
netenabl
esbankst
o of
ferl
ow cost
,hi
ghv
alue
addedf
inanci
alser
vices.Fi
nal
l
ythebanksar
efi
ndi
ngt
hatacompr
ehensi
veonl
i
ne
banki
ng st
rat
egyi
sessent
ialf
orsuccessi
nthe i
ncr
easi
ngl
ycompet
it
ivef
inanci
al
ser
vicesmar
ket
.Compet
it
ionandchangesi
ntechnol
ogyandl
i
fest
yleshav
echanged
t
hef
aceofbanki
ngandbanksi
nthepr
esentenv
ironmentar
eseeki
ngal
ter
nat
ivewayt
o
pr
ovi
de and di
ff
erent
iat
ethei
rser
vices.I
nIndi
a,t
he banki
ng i
ndust
ry has been
under
goi
ngr
api
dchanges,r
efl
ect
inganumberofunder
lyi
ngdev
elopment
s.I
nspi
teof
t
hegr
eatbenef
it
soft
heE-
banki
ng,i
tisext
remel
yessent
ialt
hatbanksr
egar
dther
isks
associ
atedwi
thi
t.Onesi
gni
fi
cantst
ept
hatbanksmustt
akebef
oregoi
ngt
hroughany
t
ransf
ormat
ioni
stoi
nsur
ethepr
operhandl
i
ngofE-
banki
ngr
isk.Buti
tisv
erydi
ff
icul
t
f
orbot
hthecust
omer
sandt
hebankst
odet
ermi
net
hebestappr
oacht
ouseofE-
banki
ng.A par
ti
cul
arr
iskar
iseswi
tht
ryi
ngt
oint
egr
atenew channel
swi
thexi
sti
ng
channel
s.Acombi
nat
ionofr
egul
ator
yandcompet
it
iver
easonshav
eledt
oincr
easi
ng
i
mpor
tanceofTot
alBanki
ngAut
omat
ioni
ntheI
ndi
anBanki
ngI
ndust
ry.Ent
ryofnew
gener
ati
onbankshasr
esul
tedi
napar
adi
gm shi
fti
ntheway
sofbanki
ngi
nIndi
a.I
Thas
i
ntr
oducednew busi
nessst
andar
dsandi
sincr
easi
ngl
ypl
ayi
ngasi
gni
fi
cantr
olei
n
i
mpr
ovi
ngt
heser
vicesi
nthebanki
ngi
ndust
ry.I
nter
net
,wi
rel
esst
echnol
ogyandgl
obal
st
rai
ght
thr
oughpr
ocessi
nghav
ecr
eat
edapar
adi
gm shi
fti
nthebanki
ngi
ndust
ry-f
rom
br
ickandmor
tarbankst
ovi
rt
ualbanki
ngacr
osst
imezones,geogr
aphi
call
ocat
ions,
accesspoi
ntsanddel
i
ver
ychannel
s.Anot
herkeyi
mpet
usf
orchangehasbeent
he
i
ncr
easi
ngcompet
it
ionamongabr
oadr
angeofl
ocalandgl
obali
nst
it
uti
onsi
npr
ovi
ding
banki
ngandr
elat
edf
inanci
alser
vices.I
naddi
ti
on,f
inanci
alact
ivi
tyhasbecomel
arger
r
elat
ivet
oov
eral
leconomi
cact
ivi
tyi
nmosteconomi
es.Wi
thoutdoubt
,technol
ogyi
s
t
hesi
ngl
ebi
ggestst
rat
egi
cissuei
nbanki
ngt
hathasal
socr
eat
edchal
l
engesf
ort
he
r
egul
ator
yfr
amewor
kofE-banki
ng.I
nthi
shi
gh-
techenv
ironment
,iti
simpor
tantf
or
gov
ernment
sto keep t
hei
rregul
ator
y sy
stem underr
evi
ew.Many count
ri
es ar
e
r
espondi
ngt
othechangesi
nfi
nanci
almar
ket
sbyr
ati
onal
i
zingt
hei
rregul
ator
ysy
stems.
I
ntoday
’shi
ghl
ymobi
l
efi
nanci
almar
ket
s,count
ri
es,whi
chdonotensur
ethatt
hei
r
r
egul
ate.I
naddi
ti
ont
othi
s,banksaswel
lasconsumer
svi
ew t
hesecur
it
ythr
eatas
per
hapst
hemostser
ioust
hreat
.Thesecur
it
yofI
nter
netaccesst
ocl
i
entaccounti
sthe
bi
ggest chal
l
enge f
aci
ng banks. Secur
it
y pol
i
cy shoul
d i
ncl
ude management
commi
tment
,technol
ogi
calsuppor
tandef
fect
ivedi
ssemi
nat
ionsoft
hepol
i
cyandt
he
secur
it
yawar
enessofal
lusersy
stemsr
emai
nupt
odat
e,maypayaser
iouscosti
nthe
f
orm ofl
ostbusi
ness.Thei
mpl
ement
ati
onofSET,t
hest
andar
dforSecur
eEl
ect
roni
c
Tr
ansact
ionsont
heI
nter
netandi
tswi
despr
eadadopt
ioni
ncl
udi
ngsecur
it
ymeasur
es
l
i
ke encr
ypt
ion,di
git
alaut
hent
icat
ion,and v
eri
fi
cat
ion ofon-
li
ne i
dent
it
y,i
ncr
ease
consumerconf
idence.Asi
nanynew v
ent
uret
her
ear
eset
backsi
nter
msofi
ssueof
secur
it
yandassoci
atedcost
s.Asaconsequencebanksar
ewor
kingt
owar
dsr
emedy
ing
t
heseshor
tcomi
ngssoast
otakef
ull
adv
ant
ageoft
hedi
git
alr
evol
uti
on.
I
nther
ecenty
ear
s,t
hewor
ldeconomyhasgonet
hroughanewphenomenonwhi
chi
s
consi
der
edasoneoft
hemosti
mpor
tantchangessi
ncet
hei
ndust
ri
alr
evol
uti
oni
.e.
t
hrought
hebi
rt
hofonl
i
nebanki
ng.Seei
ngt
hebenef
it
sofe-
banki
nghav
est
art
ed
i
nvest
ingi
nthi
snewl
ycr
eat
edmar
ket
.Bankspl
ayani
mpor
tantr
olei
ntheeconomi
c
dev
elopmentoft
hecount
ry.Theeconomi
cdev
elopmentofacount
rygr
eat
lyi
nvol
ves
i
nvest
menti
nvar
ioussect
orsoft
heeconomy
.Gener
all
y,t
hebanksper
for
mvar
ious
agencywor
ksf
ort
hei
rcust
omer
s&hel
pseconomi
cdev
elopmentoft
hecount
ry.
Wi
tht
her
api
ddev
elopmentoft
echnol
ogy
,int
ernetpl
aysasi
gni
fi
cantr
olei
nchangi
ng
t
hebanki
ngscenar
io.I
tpr
ovi
desanonl
i
nepl
atf
ormf
orv
ari
ousbanki
ngt
ransact
ions
t
hroughwhi
chi
tof
fer
svar
iousser
vicesl
i
keonl
i
nepay
ment
,onl
i
nef
undt
ransf
er,
onl
i
ne
st
ockt
radi
ng,
onl
i
neshoppi
ng,
etc.
Themostpopul
ardef
ini
ti
onofe-
commer
cei
sbasedont
heonl
i
neper
spect
iveoft
he
conduct
edbusi
ness.Onl
i
neBanki
ngi
ncl
udesv
ari
ousbanki
ngact
ivi
ti
esconduct
edf
rom
homebusi
ness,
inst
eadofataphy
sicalbankl
ocat
ion.Onl
i
nebanki
ngpr
ovi
desbanksa
new&mor
eef
fi
ci
entel
ect
roni
cdel
i
ver
ytool
.
Onl
i
ne banki
ng hel
ps gr
eat
lyt
o t
ransf
er f
unds bet
ween account
s,r
evi
ew past
st
atement
s&cr
edi
tcar
dtr
ansact
ions.I
nter
netbanki
nghel
pst
hecust
omer
stoav
ail
v
ari
oussmal
l&l
argev
aluebanki
ngpr
oduct
s&ser
vicest
hroughel
ect
roni
cchannel
s.
Var
ious dev
elopment
s hav
etaken pl
ace i
nIndi
an Banki
ng.Among t
he v
ari
ous
dev
elopment
s,t
echnol
ogyhas i
nfl
uenced t
he waycust
omeri
nter
act
s wi
th banks.
El
ect
roni
cchannel
sandpr
oduct
ssuchasATMs,car
ds,i
nter
netbanki
ngandmobi
l
e
banki
ngar
eof
fer
edal
ongwi
tht
radi
ti
onalbr
anchchannel
.Di
ff
erencesi
ntheusageof
channel
s exi
stbet
ween dev
eloped count
ri
es and dev
elopi
ng count
ri
es.Ev
idence
suggest
sthatt
her
eisashi
ftf
rom t
radi
ti
onalchannelt
o el
ect
roni
cchannel
s.For
exampl
e,usageofdi
git
albanki
ngi
ndev
elopedcount
ri
esi
smor
ethan90per
centand
di
ff
usi
onofdi
git
alchannel
sindev
elopi
ng count
ri
esr
angef
rom 11 per
centt
o 25
per
cent
.
E-
banki
ngt
ransact
ionsar
emuchcheapert
hanbr
anchorev
enphonet
ransact
ions.Thi
s
coul
dtur
nyest
erday
’s compet
it
ive adv
ant
age -a l
arge br
anch net
wor
k -i
ntoa
compar
ati
vedi
sadv
ant
age,al
l
owi
nge-
bankst
ounder
cutbr
icks-
and-
mor
tarbanks.Thi
s
i
scommonl
yknownast
he“
beacheddi
nosaur
”theor
y.E-
banksar
eeasyt
osetup,so
l
otsofnew ent
rant
swi
l
lar
ri
ve.„
Old-
wor
ld‟sy
stems,cul
tur
esandst
ruct
ureswi
l
lnot
encumbert
hesenewent
rant
s.I
nst
ead,
theywi
l
lbeadapt
abl
eandr
esponsi
ve.Ebanki
ng
gi
vesconsumer
smuchmor
echoi
ce.Consumer
swi
l
lbel
essi
ncl
i
nedt
oremai
nloy
al.
Por
tal
prov
ider
sar
eli
kel
ytoat
tractt
hemostsi
gni
fi
cantshar
eofbanki
ngpr
ofi
ts.I
ndeed
bankscoul
dbecomegl
ori
fi
edmar
ri
agebr
oker
s.Theywoul
dsi
mpl
ybr
ingt
wopar
ti
es
t
oget
here.
g.buy
erandsel
l
er,pay
erandpay
ee.Thepr
oduct
swi
l
lbepr
ovi
dedby
monol
i
nes,
exper
tsi
nthei
rfi
eld.Tr
adi
ti
onalbanksmaysi
mpl
ybel
eftwi
thpay
mentand
set
tl
ementbusi
nessev
ent
hiscoul
dbecasti
ntodoubt
.Tr
adi
ti
onalbankswi
l
lfi
ndi
t
di
ff
icul
ttoev
olv
e.Notonl
ywi
l
ltheybeunabl
etomakeacqui
sit
ionsf
orcashasopposed
t
obei
ngabl
etoof
fershar
es,t
heywi
l
lbeunabl
etoobt
ainaddi
ti
onalcapi
talf
rom t
he
st
ockmar
ket
.Thi
sisi
ncont
rastt
othesi
tuat
ionf
orI
nter
netf
ir
msf
orwhom i
tseems
r
elat
ivel
yeasyt
oat
tracti
nvest
ment
.E-
banki
ngi
sjustbanki
ngof
fer
edv
iaanewdel
i
ver
y
channel
.Itsi
mpl
ygi
vesconsumer
sanot
herser
vice(
justasATMsdi
d).Exper
iencei
n
Scandi
nav
ia(
arguabl
ythemostadv
ancede-
banki
ngar
eai
nthewor
ld)appear
sto
conf
ir
mthatt
hef
utur
eis„
cli
cksandmor
tar
‟banki
ng.Cust
omer
swantf
ullser
vice
banki
ngv
iaanumberofdel
i
ver
ychannel
s.Thef
utur
eist
her
efor
e„Mar
ti
niBanki
ng‟(
any
t
ime,anypl
ace,any
wher
e,any
how)
.Tr
adi
ti
onalbanksar
est
art
ingt
ofi
ghtback.The
st
art
-upcost
sofane-
bankar
ehi
gh.Est
abl
i
shi
ngat
rust
edbr
andi
sver
ycost
lyasi
t
r
equi
ressi
gni
fi
cantadv
ert
isi
ngexpendi
tur
einaddi
ti
ont
othepur
chaseofexpensi
ve
t
echnol
ogy(
assecur
it
yandpr
ivacyar
ekeyt
ogai
ningcust
omerappr
oval
).E-
bankshav
e
al
readyf
oundt
hatr
etai
lbanki
ngonl
ybecomespr
ofi
tabl
eonceal
argecr
it
icalmassi
s
achi
eved.Consequent
lymanye-
banksar
eli
mit
ingt
hemsel
vest
opr
ovi
dingat
ail
ored
ser
vicet
othebet
terof
f.E-
Banki
ngt
ransact
ionneedssomei
nter
facet
ocommuni
cat
e
wi
thbanki
ngcust
omer
.Al
ltheel
ect
roni
ctr
ansact
ionper
for
mst
hroughsomei
nter
faces.
Theel
ect
roni
cdev
iceswhi
chper
for
mint
eractwi
thcust
omer
sandcommuni
cat
ewi
th
ot
herbanki
ngsy
stem i
scal
l
edel
ect
roni
cbanki
ngdel
i
ver
ychannel
s.I
nter
netbanki
ng(
or
E-
banki
ng)meansanyuserwi
thaper
sonalcomput
erandabr
owsercangetconnect
ed
t
ohi
sbank’
swebsi
tet
oper
for
m anyoft
hev
irt
ualbanki
ngf
unct
ions.I
nint
ernetbanki
ng
sy
stem t
hebankhasacent
ral
i
zeddat
abaset
hati
swebenabl
ed.Al
ltheser
vicest
hatt
he
bankhasper
mit
tedont
hei
nter
netar
edi
spl
ayedi
nmenu.Oncet
hebr
anchof
fi
cesof
bankar
eint
erconnect
edt
hrought
err
est
ri
alorsat
ell
i
tel
i
nks,t
her
ewoul
dbenophy
sical
i
dent
it
yforanybr
anch.I
twoul
dbeabor
der
lessent
it
yper
mit
ti
ngany
time,
any
wher
eand
any
how banki
ng.The net
wor
k whi
ch connect
sthe v
ari
ous l
ocat
ions and gi
ves
connect
ivi
tyt
othe cent
ralof
fi
ce wi
thi
nthe or
gani
zat
ion i
s cal
l
ed i
ntr
anet
.These
net
wor
ksar
eli
mit
edt
oor
gani
zat
ionsf
orwhi
cht
heyar
esetup.SWI
FTi
sal
i
veexampl
e
ofi
ntr
anetappl
i
cat
ion.E-
banki
ngpr
ovi
desenor
mousbenef
it
stoconsumer
sint
ermsof
easeandcostoft
ransact
ions,ei
thert
hroughI
nter
net
,tel
ephoneorot
herel
ect
roni
c
del
i
ver
y.El
ect
roni
cfi
nance (
E-f
inance)has become one oft
he mostessent
ial
t
echnol
ogi
calchangesi
nthef
inanci
ali
ndust
ry.E-
fi
nanceast
hepr
ovi
sionoff
inanci
al
ser
vicesandmar
ket
susi
ngel
ect
roni
ccommuni
cat
ionandcomput
ati
on.I
npr
act
ice,e-
f
inancei
ncl
udese-
pay
ment
,e-
tr
adi
ng,ande-
banki
ng.E-
Banki
nghasr
evol
uti
oni
zedt
o
day
sbanki
ngbymaki
ngi
tver
yfast
,easyandf
arr
eachi
ng.Theexpect
ati
onsar
e
gr
owi
ngatv
eryf
astspeedont
heE-
Banki
ngser
vices.Wi
tht
her
esul
t,i
tisdemandi
ng
mor
e at
tent
ion f
orst
udyf
rom v
ari
ouspeopl
e ar
ound t
he gl
obe.Huge v
olume of
r
esear
chhasbeendoneandi
sst
il
lgoi
ngondi
ff
erenti
ssuesofE-
banki
ng

REVI
EW OFLI
TERATURE
I
nter
netr
evol
uti
oni
sgl
obalphenomenonandgoi
ngbyt
hecur
rentgr
owt
hst
ati
sti
cs,
I
ndi
aexpect
saspur
tint
heI
nter
netpenet
rat
ioni
ncomi
ngy
ear
spar
ti
cul
arl
yint
he
el
ect
roni
ccommer
ce.I
tisanobv
iousnot
iont
hatel
ect
roni
c(I
nter
net
)banki
ngand
pay
ment
sar
eli
kel
ytoadv
ancemor
eorl
essi
ntandem wi
thecommer
ce.Resear
ches
i
ndi
cat
ethatI
nter
netbanki
nghasasi
gni
fi
canti
mpactont
hebusi
nessmodel
sofbanks,
secur
it
iest
radi
ngf
ir
ms,br
oker
agehouses,i
nsur
ancecompani
eset
c.I
nter
netbanki
ng
hasal
soat
tract
edt
heat
tent
ionof
,regul
ator
sandl
awmaker
sint
hedev
elopi
ngnat
ions
si
ncet
hel
ate1990s.
I
nter
netbanki
ngi
sacauseofconcer
ntomaj
ori
tyoft
heof
fl
inebankswhoshoul
dbe
r
eadyf
oranunpr
ecedent
edcompet
it
ionf
rom t
henon-
tr
adi
ti
onalbanki
ngi
nst
it
uti
ons
t
hatof
ferbanki
ngandf
inanci
alser
vicesov
ert
heI
nter
net(
Raj
gopal
an,2001)
.Al
though
someoft
het
radi
ti
onalbankshav
est
art
edof
fer
ingt
hei
rser
vicesonl
i
ne,i
tisonl
yan
ext
ensi
on oft
hei
rof
fl
ine ser
vices (
Dev
i,2001)
.Int
ernetbanki
ng has now st
art
ed
mot
ivat
ing cust
omer
sto par
kthei
rfunds wi
tht
he onl
i
ne banks,whi
ch has a
subst
ant
ial
l
yimpactont
hedeposi
tbaseoft
hebr
ickandmor
tarbanks.Theuseof
t
echnol
ogyi
n banki
ng has di
rectr
elat
ionshi
p wi
tht
he pr
ofi
tabi
l
ity
.Cet
ri
s par
ibus,
i
nvest
menti
nel
ect
roni
cbanki
ngi
ncr
easet
hepr
ofi
tmar
ginofbanksbyr
educi
ngcost
s
andi
ncr
easei
nnon-
int
eresti
ncome,whi
chwi
l
lincr
easest
heROAandROE(
Sinkney
,
1998)
.Cost
eff
ect
ivenessi
ndel
i
ver
yofser
vicesdi
rect
lyi
mpl
i
escompar
ati
vel
yhi
gh
consumersat
isf
act
ionandaconsequentchangei
nther
evenuemodelf
ort
hebanks.
Adopt
ion oft
he I
nter
netmode ofbanki
ng woul
dresul
tini
ncr
eased consumer
awar
eness,at
tract
stheent
ryofgl
obalmaj
orsi
nthemar
ketandwoul
dleadt
othe
emer
genceofopenst
andar
dsi
nthebanki
ngi
ndust
ry(
Treasur
yManagement
,2001)
.
Thei
ntegr
ati
onoft
hebanki
ngser
viceswi
the-
commer
ceandemer
genceofe-
cash
woul
d posi
ti
vel
yaf
fectt
he ef
fi
ciencyscor
esoft
he banks(
Scot
t,1999)Howev
er,
I
nter
netbanki
ng i
s a mi
xed bl
essi
ng i
nthe f
orm ofi
ncr
eased r
isk,t
he l
evelof
conf
idencer
eposedbyt
heconsumer
sandt
hepr
obl
em ofbl
endi
ngi
twi
tht
hephy
sical
sy
stem (
Hawke,2001)
.Int
ernetbanki
nghasbr
oughtaboutanew or
ient
ati
ont
ori
sks
l
i
keset
tl
ementr
isk,
int
ernat
ionalt
echnol
ogyt
ransf
err
isk,
cri
meorf
raudr
isk,
regul
ator
y
av
oidancer
isk,t
axat
ionav
oidancer
isk,andcompet
it
ionr
isk(
Saunder
s,1997)
.BaselI
I
r
ecommendat
iononoper
ati
onal
riskal
sosuppor
tst
hishy
pot
hesi
s.I
nIndi
a,somebanks
l
i
keHDFC andI
CICIhav
eint
roducedpay
mentgat
eway
srunni
ngonsecur
esy
stems
hav
ing f
ir
ewal
l
s agai
nst hacki
ng (
Rao, 2001)
. Conv
eni
ence, saf
ety and cost
ef
fect
iveness ar
ethe j
argons i
nthe spect
rum ofonl
i
ne banki
ng (
Rose,1998)
.
Resear
cher
sonv
ari
ousoccasi
onshav
erai
sedmanyi
ssues,whi
chmustbeaddr
essed
i
n cont
extofI
nter
netbanki
ng i
nIndi
a.Fi
rst
,the av
ail
abi
l
ity oft
echnol
ogy and
i
nfr
ast
ruct
uret
osuppor
tthenew modelofbanki
ng.Second,t
heneedf
orI
nter
net
banki
ngi
tsel
f–I
nter
netBanki
ngoranef
fi
cientsy
stem ofi
nst
ant
aneousbanki
ngor
conv
eni
entbanki
ng.Thi
rd,anadequat
emechani
sm t
otackl
ethesecur
it
yri
skand
oper
ati
onalr
iskaspect
s(Shar
ma,2001)
.Four
th,apr
operl
egalf
ramewor
ktot
akecar
e
oft
her
ight
sandobl
i
gat
ionoft
heconsumer
s.Whi
l
emostoft
hesei
ssueshav
ebeen
somewhataddr
essed,ani
mpor
tanti
ssuest
il
lremai
ns-whatexi
sti
ngandpot
ent
ial
consumer
sfeelaboutI
nter
netbanki
ngandont
hebasi
soft
hishow anappr
opr
iat
e
banki
ngmodelcanbedev
elopedi
nIndi
ancont
ext
.Ther
eisaneedt
omeasur
eand
anal
yzet
heconsumerper
cept
iont
owar
dsI
nter
netbanki
ng,t
ofi
ndoutwhati
swr
ong
wi
tht
radi
ti
onalbanksandpr
ovi
deaf
ramewor
kfort
hebankst
ost
rat
egi
cal
l
yadoptt
he
I
nter
netsoast
omaxi
mizev
aluef
ort
heconsumer
s.
El
ect
roni
cbanki
nghasat
tract
edi
nter
estf
rom pol
i
cymaker
s,r
esear
cher
sandbanker
s.
Ret
ailpay
ment
shav
eassumed i
mpor
tancei
nthebackdr
op ofr
api
dtechnol
ogi
cal
changes,i
nfl
uenceofmar
ketf
orcesandr
egul
ator
ydev
elopment
s.Ef
for
tsar
ebei
ng
madet
omaker
etai
lpay
ment
saf
for
dabl
eandi
ntegr
ated.Bot
hindi
vi
dualcount
ryand
bankscopeupwi
thgr
owi
ngchal
l
engesandoppor
tuni
ti
esi
nthear
eaofr
egul
ator
y
changes,i
ncr
eased compet
it
ion,enhanced r
ole of non-
banks and t
echnol
ogi
cal
adv
ances.Ret
ailpay
ment
scont
ri
but
eini
mpr
ovi
ngr
elat
ionshi
pbet
weenbankandr
etai
l
cust
omer
sandr
emai
nsanchorf
orbanki
ngser
vices,
whi
chi
ncl
udessav
ings,
credi
tand
ot
herser
vicesVar
iousr
esear
cher
shav
eexami
nedt
heser
vicequal
i
tyi
nthecont
extof
el
ect
roni
cbanki
ngThest
udyshowedt
hatcust
omer
swer
esat
isf
iedwi
thqual
i
tyof
ser
vice on f
ive di
mensi
ons such as r
eli
abi
l
ity
, accessi
bil
i
ty, pr
ivacy
/secur
it
y,
r
esponsi
venessandf
ulf
il
lment
.Theywer
eleastsat
isf
iedwi
thuser
-f
ri
endl
ydi
mensi
on.
Dr
.Roshanl
alandDr
.Raj
nisal
uja(
2012)i
nthei
rst
udyent
it
led“
E-banki
ng:TheI
ndi
an
Scenar
io”st
atest
hatt
heEmpl
oyeesofbanksshoul
dbegi
venspeci
alt
echni
calt
rai
ning
f
ort
heuseofe-
banki
ngsot
hatt
heycanf
urt
herencour
agecust
omer
stouset
hesame.
E-
banki
ngser
vicesshoul
dbecust
omi
sedonbasi
sofage,gender
,occupat
ionet
cso
t
hatneedsandr
equi
rement
sofpeopl
ear
emetaccor
dingl
y.Thest
udyal
soai
medat
det
ermi
ningt
heser
vicequal
i
tyofbanksoper
ati
vei
nIndi
awi
thr
egar
dst
oint
ernet
banki
ng.
I
nIndi
ae-
banki
ngi
soff
air
lyr
ecentor
igi
n.Thet
radi
ti
onalmodelf
orbanki
nghasbeen
t
hroughbr
anchbanki
ng.Onl
yint
heear
ly1990st
her
ehasbeenst
artofnon-
branch
banki
ngser
vices.Thegoodol
dmanualsy
stemsonwhi
chI
ndi
anBanki
ngdepended
uponf
orcent
uri
esseem t
o hav
eno pl
acet
oday
.Thecr
edi
tofl
aunchi
ngi
nter
net
banki
ngi
nIndi
agoest
oICI
CIBank.Ci
ti
bankandHDFCBankf
oll
owedwi
thi
nter
net
banki
ngser
vicesi
n1999.Sev
erali
nit
iat
iveshav
ebeent
akenbyt
heGov
ernmentofI
ndi
a
aswel
last
heReser
veBankt
ofaci
l
itat
ethedev
elopmentofebanki
ngi
nIndi
a.The
Gov
ernmentofI
ndi
aenact
edt
heI
TAct
,2000wi
thef
fectf
rom Oct
ober17,2000whi
ch
pr
ovi
dedl
egalr
ecogni
ti
ont
oel
ect
roni
ctr
ansact
ionsandot
hermeansofel
ect
roni
c
commer
ce.The Reser
ve Bank i
s moni
tor
ing and r
evi
ewi
ng t
he l
egaland ot
her
r
equi
rement
sofe-
banki
ng on a cont
inuousbasi
sto ensur
ethate-
banki
ng woul
d
dev
eloponsoundl
i
nesande-
banki
ngr
elat
edchal
l
engeswoul
dnotposeat
hreatt
o
f
inanci
alst
abi
l
ity
.Ahi
ghl
evelCommi
tt
eeunderchai
rmanshi
pofDr
.K.
C.Chakr
abar
ty
andmember
sfr
om I
IT,
IIM,
IDRBT,
Banksandt
heReser
veBankpr
epar
edt
he„
ITVi
sion
Document
-2011-
17‟
,fort
heReser
veBankandbankswhi
chpr
ovi
desani
ndi
cat
iver
oad
mapf
orenhancedusageofI
Tint
hebanki
ngsect
or.Tocopewi
tht
hepr
essur
eof
gr
owi
ngcompet
it
ion,I
ndi
ancommer
cialbankshav
eadopt
edsev
erali
nit
iat
ivesande-
banki
ngi
soneoft
hem.Thecompet
it
ionhasbeenespeci
all
ytoughf
ort
hepubl
i
csect
or
banks,ast
henewl
yest
abl
i
shedpr
ivat
esect
orandf
orei
gnbanksar
eleader
sint
he
adopt
ion ofe-
banki
ng.I
ndi
an banks of
fert
othei
rcust
omer
sfol
l
owi
ng e-
banki
ng
pr
oduct
sandser
vices:•Aut
omat
edTel
l
erMachi
nes(
ATMs)
•I
nter
netBanki
ng
•Mobi
l
eBanki
ng
•PhoneBanki
ng
•Tel
ebanki
ng
•El
ect
roni
cCl
ear
ingSer
vices
•El
ect
roni
cCl
ear
ingCar
ds
•Smar
tCar
ds
•DoorSt
epBanki
ng
•El
ect
roni
cFundTr
ansf
er
Thet
hreebr
oadf
aci
l
iti
est
hate-
banki
ngof
fer
sar
e:.
1.Conv
eni
ence-Compl
etey
ourbanki
ngaty
ourconv
eni
encei
nthecomf
ortofy
our
home.
2.Nomor
eQs-Ther
ear
enoqueuesatanonl
i
nebank.
3.24x7ser
vice-Bankonl
i
neser
vicesi
spr
ovi
ded24hour
saday
,7day
saweekand52
weeksay
ear
.

FUNCTI
ONSOFE-
BANKI
NG
Atpr
esent
,theper
sonal
e-banksy
stem pr
ovi
dest
hef
oll
owi
ngser
vices:
-

A. I
NQUI
RYABOUTTHEI
NFORMATI
ONOFACCOUNTThecl
i
enti
nqui
resaboutt
he
det
ail
sofhi
sownaccounti
nfor
mat
ionsuchast
hecar
d‟s/account
‟sbal
anceandt
he
det
ail
edhi
stor
ical
recor
dsoft
heaccountanddownl
oadst
her
epor
tli
st.

B. CARD ACCOUNTS’TRANSFER The cl

i
entcan achi
evet
he f
und t
o anot
her
per
son‟
sCr
edi
tCar
dint
hesameci
ty.

C. BANK-
SECURI
TIES ACCOUNTS TRANSFER The cl
i
entcan achi
evet
he f
und
t
ransf
erbet
weenhi
sownbanksav
ingsaccount
sofhi
sownCr
edi
tCar
daccountandhi
s
owncapi
talaccounti
nthesecur
it
iescompany
.Mor
eov
er,t
hecl
i
entcani
nqui
reabout
t
hepr
esentbal
anceatr
eal
time.

D. THETRANSACTI
ON OFFOREI
GN EXCHANGEThecl
i
entcant
radet
hef
orei
gn
exchange,cancelor
der
sandi
nqui
reaboutt
hei
nfor
mat
ionoft
het
ransact
ionoff
orei
gn
exchangeaccor
dingt
otheexchanger
ategi
venbyourbankonnet
.
E. THEB2CDI
SBURSEMENTONNETThecl
i
entcandot
her
eal
-t
imet
ransf
erand
gett
hef
eedbacki
nfor
mat
ionaboutpay
mentf
rom ourbankwhent
hecl
i
entdoes
shoppi
ngi
ntheappoi
ntedweb-
sit
e.

F. CLI
ENTSERVI
CEThecl
i
entcanmodi
fyt
hel
ogi
npasswor
d,i
nfor
mat
ionoft
he
Cr
edi
tCar
dandt
hecl
i
enti
nfor
mat
ioni
ne-
bankonnet
.

G. ACCOUNTMANAGEMENTThecl
i
entcanmodi
fyhi
sownl
i
mit
sofr
ightandst
ate
oft
her
egi
ster
edaccounti
ntheper
sonale-
bank,suchasmodi
fyi
nghi
sownl
ogi
n
passwor
d,f
reezi
ngordel
eti
ngsomecar
dsandsoon.

H. REPORTI
NGTHELOSSI
FTHEACCOUNTThecl
i
entcanr
epor
tthel
ossi
nthe
l
ocalar
ea(
notnat
ionwi
de)whent
hecl
i
ent
‟sCr
edi
tCar
dorpassbooki
smi
ssi
ngor
st
olen.

TYPESOFE-
BANKI
NG
A. Deposi
ts,wi
thdr
awal
s,i
nter
-accountt
ransf
erandpay
mentofl
i
nkedaccount
sat
anATM;

B. Buy
ingandpay
ingf
orgoodsandser
vicesusi
ngdebi
tcar
dsorsmar
tcar
ds
wi
thouthav
ingt
ocar
rycashorachequebook;

C. Usi
ngat
elephonet
oper
for
m di
rectbanki
ng-makeabal
anceenqui
ry,i
nter
-
accountt
ransf
ersandpayl
i
nkedaccount
s;

D. Usi
ngacomput
ert
oper
for
m di
rectbanki
ng-makeabal
anceenqui
ry,i
nter
-
accountt
ransf
ersandpayl
i
nked

ADVANTAGESOFE-
BANKI
NG
A.Account I
nfor
mat
ion:Realt
ime bal
ance i
nfor
mat
ion and summar
y of day
‟s
t
ransact
ion.
B.FundTr
ansf
er:Managey
ourSuppl
y-
Chai
nnet
wor
k,ef
fect
ivel
ybyusi
ngouronl
i
ne
handt
ransf
ermechani
sm.Wecanef
fectf
undt
ransf
eronar
ealt
imebasi
sacr
oss
t
hebankl
ocat
ions.

C.Request
:Makeabanki
ngr
equestonl
i
ne.

D.Downl
oadi
ngofaccountst
atement
sasanexcel
fil
eort
extf
il
e.

E.Cust
omer
scanal
sosubmi
tthef
oll
owi
ngr
equest
sonl
i
ne:Regi
str
ati
onf
oraccount
st
atement
sbye-
mai
ldai
l
y/weekl
y/f
ort
night
ly/mont
hlybasi
s.

•St
oppay
mentorcheques
•Chequebookr
epl
eni
shment

•DemandDraf
t/Pay-or
der
•Openi
ngoffi
xeddeposi
taccount

•Openi
ngofLet
terofcr
edi
t

F.Cust
omer
scanI
ntegr
atet
heSy
stem wi
thhi
sownERP

G.Bi
l
lPay
mentt
hroughEl
ect
roni
cBanki
ng

H.TheEl
ect
roni
cShoppi
ngMal
l

I
.Ef
fect
ingPer
sonal
Inv
est
ment
sthr
oughEl
ect
roni
cBanki
ng

J.I
nvest
ingi
nMut
ual
funds

K.I
nit
ial
Publ
i
cOf
fer
sOnl
i
ne
LI
MITATI
ONOFE-
BANKI
NG

A.Saf
etysi
tuat
ionsar
oundATMs.

B.Abuseofbankcar
dsbyf
raudst
ersatATMs.

C.Dangerofgi
vi
ngy
ourcar
dnumberwhenbuy
ingonl
i
ne.

PROGRESSOFE-
BANKI
NGI
NINDI
A

Gr
owt
hofE-
Banki
ngi
nIndi
aIndi
aisst
il
lint
heear
lyst
agesofI
nter
netbanki
nggr
owt
h
anddev
elopment
.Unt
ilt
headv
entofaut
omat
ict
ell
ermachi
nes(
ATMs)
,peopl
ewer
e
unawar
eornotdi
rect
lyaf
fect
edbyt
het
echnol
ogi
calr
evol
uti
onshappeni
ngi
nthe
banki
ngsect
or.ATMsbecamet
hemaj
orr
evel
ati
onf
orcust
omer
sfori
tof
fer
edt
he
f
aci
l
ityt
oav
oidt
hel
ongqueuesi
nfr
ontoft
hecashi
eri
nabank.I
tal
sopr
ovi
dedt
hem
t
hef
lexi
bil
i
tyofwi
thdr
awi
ngmoney
-any
time,any
wher
e(Jay
adev
,2001)
.Thesof
twar
e
packagesf
orbanki
ngappl
i
cat
ionsi
nIndi
ahadt
hei
rbegi
nni
ngsi
ntheear
ly1980s,
when
t
heBanksst
art
edcomput
eri
singt
hebr
anchesi
nal
i
mit
edmanner
.Thi
ssett
hepacef
or
comput
eri
sat
ion and mechani
sat
ion,f
oll
owi
ng t
he f
ormat
ion of t
he Rangar
ajan
Commi
tt
ee,
(Mi
shr
a,2001)whi
chhadamandat
etodev
elopaphasedpl
anov
er198589
t
oaut
omat
ebanki
ngpr
ocessesandwassuppor
tedbyt
hegr
owt
hofbr
anchbanki
ng
andt
heeasyav
ail
abi
l
ityofPCs.ThesecondRangar
ajanCommi
tt
eewhi
chwasf
ormed
i
n1988,dr
ewupacompr
ehensi
vepl
ant
ocomput
eri
set
hebanksandf
oranext
ensi
on
ofaut
omat
iont
oot
herar
easl
i
kef
undst
ransf
er,SWI
FT,ATMset
c.(
Mishr
a,2001)
.
Towar
dst
heendoft
he1980s,t
heder
egul
ati
onpr
ocessgai
nedmoment
um wi
tht
he
gr
owt
hinhi
gh-
techsect
ori
nIndi
a.Theder
egul
ati
onbecameani
mpor
tantmechani
sm
f
orgener
ati
ngcompet
it
ioni
nthebanki
ngsy
stem i
nmanydev
elopi
ngcount
ri
es(
Baumi
k
andSar
kar
,1996)
.Theear
ly1990ssawt
hepl
ummet
inghar
dwar
epr
icesandadv
entof
cheapandi
nexpensi
vebuthi
gh-
power
edPCsandser
ver
sandbankswenti
nforwhat
wascal
l
edTot
alBr
anchAut
omat
ion(
TBA)Packages.TheNar
asi
mham Commi
tt
ee
r
epor
tin1992i
ntr
oducednewr
efor
ms,
fol
l
owedbyt
heBanki
ngRegul
ati
onsActi
n1993,
enabl
ednew pr
ivat
ebankst
oent
ert
hear
ena.I
n1996,f
ullf
orei
gni
nvest
mentwas
al
l
owed.I
n 1997,t
he Tar
apor
e Commi
tt
ee r
epor
ton capi
talaccountconv
ert
ibi
l
ity
l
aunchedanew mandat
etosuppor
tthef
ullconv
ert
ibi
l
ityoft
her
upeebyt
het
urnof
2000.These dev
elopment
s wer
e suppor
ted byt
he gr
owi
ng l
evel
s ofexper
ti
se i
n
i
nfor
mat
ion t
echnol
ogy
,vent
ure capi
tal
i
sm and i
ncr
easi
ng amount
s of f
orei
gn
i
nvest
ment(
Reddy
,2000)
.Thus,t
hemi
ddl
eandl
ate1990swi
tnessedt
het
ornadoof
f
inanci
alr
efor
ms,der
egul
ati
on,gl
obal
i
sat
ion et
c coupl
ed wi
thr
api
drev
olut
ion i
n
communi
cat
ion t
echnol
ogi
es and ev
olut
ion ofnov
elconceptof‘
conv
ergence’of
comput
erand communi
cat
ion t
echnol
ogi
es,l
i
keI
nter
net
,mobi
l
e/cel
lphoneset
c
(
Khanna,2003)
.InI
ndi
a,banksaswel
lasot
herf
inanci
alent
it
iesent
eredt
hewor
ldof
i
nfor
mat
iont
echnol
ogyandwi
thI
ndi
anFi
nanci
alNet(
INFI
NET)
.INFI
NET,awi
dear
ea
sat
ell
i
tebasednet
wor
k(WAN)usi
ngVSAT(
Ver
ySmal
lAper
tur
eTer
minal
s)t
echnol
ogy
,
wasj
oint
lysetupbyt
heReser
veBankandI
nst
it
utef
orDev
elopmentandResear
chi
n
Banki
ngTechnol
ogy(
IDRBT)i
nJune1999.
I
nIndi
a,Reser
veBankofI
ndi
a out
li
ned t
hemi
ssi
on t
o ensur
ethatpay
mentand
set
tl
ementsy
stemsar
esaf
e,ef
fi
cient
,int
eroper
abl
e,aut
hor
ized,accessi
ble,i
ncl
usi
ve
andcompl
i
antwi
thi
nter
nat
ionalst
andar
ds.TheVi
sioni
stopr
oact
ivel
yencour
age
el
ect
roni
cpay
mentsy
stem f
orusher
ingi
nal
esscashsoci
etyi
nIndi
a
Regul
ati
oni
skeent
opr
omot
einnov
ati
onandcompet
it
ionwi
thani
ntent
iont
ohel
p
pay
mentsy
stem achi
evei
nter
nat
ionalst
andar
ds.Var
iousi
nit
iat
ivesbyReser
veBankof
I
ndi
a,i
nmi
d-ei
ght
iesandear
ly-
ninet
ies,
resul
tedi
nof
fer
ingt
echnol
ogybasedsol
uti
ons.
Theneedev
olv
edt
opr
ovi
decost
eff
ect
iveal
ter
nat
ivesy
stem.El
ect
roni
cCl
ear
ing
Ser
vice(
ECS)wasl
aunchedi
n1990st
ocat
ert
obul
kandr
epet
it
ivepay
ment
s.By
Sept
ember2008,anew av
atari
nthef
orm ofNat
ionalEl
ect
roni
cCl
ear
ingcel
lwas
l
aunchedt
ohandl
emul
ti
plecr
edi
tst
obenef
ici
aryaccount
s.Nat
ionalEl
ect
roni
cCl
ear
ing
Ser
vice(
NECS)r
idesoncor
ebanki
ngsol
uti
onofmemberbanks.Ther
etai
lfunds
t
ransf
ersy
stem wasi
ntr
oducedi
n1990st
oal
l
owel
ect
roni
ctr
ansf
eroff
undf
orpeopl
e
t
opeopl
epay
ment
.InNov
ember2005,ar
obustsy
stem wasl
aunchedt
oal
l
owonet
o
onef
undst
ransf
err
equi
rementofi
ndi
vi
dual
sandcor
por
ates.Pr
epai
dinst
rument
sal
l
ow
t
ransact
ionf
orgoodsandser
vicesagai
nstt
hev
aluest
oredonpay
menti
nst
rument
.
I
tmaybei
nthef
orm ofsmar
tcar
ds,magnet
icst
ri
pecar
ds,i
nter
netwal
l
ets,mobi
l
e
account
s,mobi
l
ewal
l
etsandpaperv
oucher
s.Consequentt
othegui
del
i
nesi
nmobi
l
e
 banki
ng,sel
ect
edbankswer
eper
mit
tedt
oof
fert
heser
viceaf
terr
ecei
ptofnecessar
y
per
missi
on f
rom Reser
ve Bank ofI
ndi
a.I
ndi
an Ret
ailpay
ment
s pose si
gni
fi
cant
chal
l
engesandoppor
tuni
ti
es.BasedonPay
mentsy
stem v
isi
ondocumentr
eleasedby
Reser
veBankofI
ndi
a,t
henumberofnon-
casht
ransact
ions,at6perper
son,i
slowi
n
I
ndi
a.I
tisest
imat
edt
hatGov
ernmentsubsi
diesal
oneconst
it
utemor
ethanRs.
2.93
t
ri
ll
i
on and el
ect
roni
fi
cat
ion has a pot
ent
ialt
otr
ansl
ate 4.
13 bi
l
li
on el
ect
roni
c
t
ransact
ionsi
nay
ear
.Basedont
her
epor
tofI
nter
netandMobi
l
eAssoci
ati
onofI
ndi
a
(
IAMAI
),i
nter
netcommer
cei
sexpect
edt
oreachRs.
465bi
l
li
onbyt
hey
ear2012.To
f
aci
l
itat
eel
ect
roni
fi
cat
ion,Reser
veBankofI
ndi
aest
abl
i
shedt
heumbr
ell
aor
gani
zat
ion,
Nat
ionalPay
mentCor
por
ati
onofI
ndi
a[30]
.Manyr
esear
chesi
nthepasthav
elai
d
i
mpor
tanceont
hesi
gni
fi
cantdev
elopment
sthatar
etaki
ngpl
acei
nthebanki
ngi
ndust
ry
duet
othesur
gei
ninf
ormat
iont
echnol
ogy
.SahaiandMachi
raj
u[31]di
scussedhow
new t
echnol
ogi
esaddr
esseddi
ff
erentr
equi
rement
sandhow t
heset
echnol
ogi
esf
it
t
oget
hert
opr
ovi
deaubi
qui
touse-
mar
ketpl
aceande-
ser
vicev
isi
on.Whi
l
emanynew
pr
oduct
sar
eof
fer
edi
nthear
eaofel
ect
roni
cpay
mentpr
oduct
s,banksneedt
otr
ackt
he
usageoft
hesepr
oduct
s[32]
.Concer
nshav
ebeenr
aisedov
ert
hegr
eat‘
digi
taldi
vi
de’
bet
ween t
he r
ich and t
he pooron t
he demand si
de and di
ff
erentoper
ati
onal
env
ironment
sint
hepr
ivat
eandpubl
i
csect
orbanksatt
hesuppl
ysi
de.Dut
taandRoy
[
33]st
udi
edi
nter
netgr
owt
hfr
om adev
elopi
ngcount
ry’
sper
spect
iveanddev
elopeda
causalmodelusi
ngSy
stem Dy
nami
cs(
SD)met
hodt
hatwi
l
lhel
padev
elopi
ngcount
ry
l
i
keI
ndi
atoi
dent
if
ythepat
ter
nofI
nter
netdi
ff
usi
onasar
esul
tofv
ari
ouspol
i
cy
al
ter
nat
ivest
akenupt
onur
tur
eint
ernetdi
ff
usi
oni
nthecount
ry.

I
NDI
ANPOSI
TION
I
ndi
anscenar
ioi
nbanki
ngi
snotupt
othemar
kincompar
isont
othedev
elopedeconomi
es.I
n
1966,I
CICIBankt
ookt
hei
nit
iat
ivet
owar
dsst
art
inge-
banki
ngser
vicesi
nIndi
a.Thet
ime
per
iodof1996t
o1998,canbedef
inedasear
lyadopt
ionphasef
ore-
banki
ngi
nIndi
a.But
publ
i
csect
orbankswer
ethel
ateadopt
ersoft
hee-
banki
ngser
vices.SBIownst
hepr
ideof
bei
ng pi
oneeramong publ
i
c sect
orbanks t
o st
artpr
ovi
ding e-
banki
ng ser
vices t
oit
s
cust
omer
s.Al
though,i
texper
iencedt
remendousi
ncr
easei
nusageofe-
banki
ngi
n1999,due
t
olowerI
SPi
nter
netf
ee&char
ges,
incr
easedPCpenet
rat
ionandt
ech-
sav
vyenv
ironment
.The
pr
ocessofpr
ovi
dinge-
banki
ngser
vicesi
npubl
i
csect
orbanksbei
ngv
erysl
owandt
hebanks
st
atet
hatt
hemai
nreasonsf
ort
hisar
ethel
ackofr
egul
ator
yfr
amewor
kandcl
ari
tyof
ebanki
ngpr
ocess.Addi
ngt
otheser
easons,
lackofcommi
tmentandent
husi
asm ofbanksand
r
est
rai
ningf
orcest
othechangepr
evai
l
ingi
nthePSU banksar
eresponsi
blef
ort
hesl
ow
adapt
ati
onofe-
banki
ngsy
stem i
nPSUBanksi
nIndi
a.E-
banki
ngi
svi
ewedasexpansi
onof
conv
ent
ionalbanki
ngser
vices.Al
though,t
her
ewer
emanycasest
hatcont
radi
ctedt
hel
egal
f
ramewor
kofI
ndi
ane-
banki
ng,suchas,Banki
ngRegul
ati
onAct1949,TheReser
veBankof
I
ndi
aAct1934andt
heFor
eignExchangeManagementAct1999.
Though,numer
ousr
egul
ator
yissuesr
egar
dinge-
commer
cehasbeenaddr
essedbyt
he
I
nfor
mat
ionTechnol
ogyAct2000,
sti
l
lther
eisunaddr
essedgr
eyar
easpr
evai
l
sthatnot
hav
ebeendef
inedpr
oper
lyandev
ennof
unct
ionali
mpl
ement
ati
onmodehasbeen
r
ecommendedbyConst
it
uti
onali
nst
it
uti
ons.TheI
TAct2000speci
fi
edt
hecausesf
or
bankst
ost
artonl
i
nebanki
ngser
vicesanddef
inedsecur
it
ymeasur
esf
ort
hebanks.But
i
ttot
all
ydependsont
hecommi
tmentofbanksi
nadopt
ingt
hesemeasur
est
opr
ovi
de
ebanki
ng.Aswel
lasRBIi
ssuednumer
ousgui
del
i
nesf
ore-
banki
ngi
nIndi
aandi
trev
iew
t
hem per
iodi
cal
l
y.I
tiscompul
sor
yforbankst
ohav
eapr
iorappr
ovalf
rom RBIt
o
pr
ovi
deanynewonl
i
neser
vice.Al
though,
thi
sgui
del
i
nesuspendedl
aterandbankshav
e
gi
venaut
onomyf
ore-
banki
ngser
vicesbutt
heyhav
etoensur
ethatonl
i
neser
vices
of
fer
edbyt
hem shoul
dcomeunderpr
ovi
sionsoft
heReser
veBankofI
ndi
a.

I
NDI
ANLAWSONONLI
NEBANKI
NG

Themi
suseofI
nter
netamount
stocy
ber
cri
me,
andI
ndi
atoohasbeenwi
tnessi
nga shar
p
i
ncr
easei
ncy
ber
cri
mesi
nther
ecenty
ear
s.TheCy
berLaw ofI
ndi
apr
ovi
dedi
nthe
I
nfor
mat
ionTechnol
ogyAct
,2000.Reser
veBankofI
ndi
ahadsetupa‘
Wor
kingGr
oup
onI
nter
netBanki
ng’t
oexami
nedi
ff
erentaspect
sofI
nter
netBanki
ng.TheGr
ouphad
f
ocusedont
hreemaj
orar
easofe-
banki
ng,i
.e.
,(i
)technol
ogyandsecur
it
yissues,(
ii
)
l
egali
ssues and (
ii
i)r
egul
ator
y and super
visor
yissues.RBIhas accept
ed t
he
r
ecommendat
ionsoft
heGr
oupt
obei
mpl
ement
edi
naphasedmanner
.InI
ndi
a,a
Bank’
sli
abi
l
itywoul
dar
iseoutofcont
ractast
her
eisnost
atut
etot
hepoi
nt.When
l
i
abi
l
ityi
scont
ract
uali
tmeanst
hatt
hebanki
s,byv
irt
ueoft
hecont
ract
,underan
obl
i
gat
iont
okeepcust
omer
s’dat
asecr
et.I
ftr
ansact
ionsar
ebei
ngdoneonanopen
net
wor
ksuchast
hei
nter
nett
heni
ncaseofasecur
it
ybr
each,ani
nter
netser
vice
pr
ovi
der(
ISP)maybel
i
abl
e,i
naddi
ti
ont
othebank.Thev
iabi
l
ityofasect
orall
egi
slat
ion
ondat
apr
otect
ioni
ne-
banki
ngshoul
dbegauged.I
ndi
acant
akecuef
rom nat
ions
whi
chhav
efav
our
edadhocenact
mentofsect
orall
awsov
eromni
busl
egi
sl
ati
on.A
maj
orpr
obl
em f
orbanksandI
nter
netbanki
nguser
s,Phi
shi
ngi
sanar
toft
ri
cki
ng
someonei
ntogi
vi
ngconf
ident
iali
nfor
mat
ionandf
raudul
ent
lyacqui
ri
ngt
hei
rsensi
ti
ve
i
nfor
mat
ionl
i
kepasswor
dsandcr
edi
tcar
ddet
ail
s.TheI
TAct2000,howev
er,doesnot
speci
fi
cal
l
ydef
inephi
shi
ngasanof
fenceandt
hust
hel
aw enf
orcementaut
hor
it
ies
hav
etot
aker
ecour
set
othegener
icpr
ovi
sionsofcheat
ingandcr
imi
nalbr
eachoft
rust
undert
heI
ndi
anPenalCode.Duet
othel
ackofadequat
elegalpr
ovi
sionsf
ordeal
i
ng
wi
thgr
owi
ngcy
ber
cri
mes,banksar
ewor
kingt
owar
dsi
nti
mat
ingnetuser
saboute-
secur
it
y.SMS al
ert
s ar
e used t
oinf
orm cust
omer
s pr
ompt
ly aboutt
hei
ronl
i
ne
t
ransact
ions.
Bankshav
eal
soputi
npl
acesecur
it
ymeasur
es,asout
li
nedbyt
heReser
veBankof
I
ndi
aini
tsgui
del
i
nesf
orI
nter
netbanki
ng.Thegui
del
i
nest
alkaboutt
her
isksassoci
ated
wi
thI
nter
netbanki
ng,t
echnol
ogyandsecur
it
yst
andar
ds,l
egali
ssuesi
nvol
ved,and
r
egul
ator
yandsuper
visor
yconcer
ns.TheRBIi
sempower
edt
oaudi
tthecompl
i
anceof
t
heI
nter
netbanki
ngpol
i
cyout
li
nedbyi
t.

Changi
ngFaceofI
ndi
anBanki
ng:
Fr
om t
radi
ti
onalbanki
ng pr
act
ices dur
ing t
he Br
it
ish Rul
etor
efor
ms per
iod ,
nat
ional
i
zat
iont
opr
ivat
izat
ionandt
othepr
esentt
rendofi
ncr
easi
ngnumberoff
orei
gn
banks,
Indi
anbanki
ngsect
orhasunder
gonesi
gni
fi
cantt
ransf
ormat
ion.Themov
efr
om
ol
dtonew busi
nessenv
ironmenthascr
eat
ednewerdemandsonI
ndi
anbankl
i
ke
enhancedwor
kfl
ow,f
ullcust
omeraccesst
obanki
ngt
ransact
ionst
hroughel
ect
roni
c
modeet
c.I
ntheemer
gingscenar
iooff
ier
cecompet
it
ionbackedbyt
winf
orceof
der
egul
ati
onandt
echnol
ogy
,thedegr
eeofcompet
it
ioni
ntheI
ndi
anf
inanci
alSect
or
hasi
ncr
easedt
ounpr
ecedent
edl
evel
.Hencet
heoper
ati
onalef
fi
ciencyofbankshas
achi
evedi
mmensesi
gni
fi
cancef
ort
hei
rsur
viv
ali
nthepr
esentscenar
io.I
ncont
rastt
o
ear
li
er4-
6-4met
hod(
Bor
rowat4%;Lendat6%;Gohomeat4)off
unct
ioni
ng,moder
n
out
lookandt
ech-
sav
vymet
hodsofwor
kingf
ort
radi
ti
onalbankshasbeenusher
ed.Al
l
t
hishasl
edt
other
etai
lboom i
nIndi
a.Peopl
ear
enotj
ustdemandi
ngmor
efr
om t
hei
r
banksbutal
sor
ecei
vi
ngmor
e.Wi
theasycr
edi
tfaci
l
iti
est
hebanksar
etr
ansf
ormi
ngt
he
consumi
ngpr
opensi
tyofI
ndi
answi
thev
ery
thi
ngf
rom mi
crowav
eowenst
ohouseson
sal
eateasymont
hlyi
nst
all
ment
sEMI
s.Usi
ngi
nfor
mat
iont
echnol
ogy
,bankshav
e
upgr
adedt
hei
rsy
stemst
opr
ovi
debet
tercust
omerser
vices.Aut
omat
icTel
l
erMachi
nes
(
ATMs)di
spensi
nganyt
imemoneyar
evi
sibl
einmostl
ocal
i
tiesofbi
gci
ti
esand
consumer
sar
eincr
easi
ngl
yrespondi
ngt
obanki
ngt
ransact
ionswi
thoutv
isi
ti
ngt
he
banks.Onl
i
neandmobi
l
ebanki
nghasbr
oughtt
hebanksv
irt
ual
l
ytot
hei
rdoor
steps.
Howev
er,al
lthi
shasexposedt
hebankst
onewki
ndsofr
isks.Thef
ami
l
iar
it
ybet
ween
bankempl
oyeesandcust
omer
shasbecomei
ncr
easi
ngl
yremot
e.Thought
hebanks
di
str
ibut
evar
iousbackendandf
rontendoper
ati
onst
omi
nimi
zer
iskandusehi
ghl
y
secur
esocketl
ayer
sSSLs,di
git
alcer
ti
fi
cat
esandf
aci
l
iti
esl
i
kev
irt
ualkeyboar
dst
o
r
educet
her
isksi
nonl
i
net
ransact
ions,
att
acksl
i
kephi
shi
ngandphar
minghav
ebeenon
t
her
ise.

I
NDI
ANSCENARI
O
I
nter
netbanki
ng,bot
hasamedi
um ofdel
i
ver
yofbanki
ngser
vicesandasast
rat
egi
c
t
oolf
orbusi
nessdev
elopment
,hasgai
nedwi
deaccept
ancei
nter
nat
ional
l
yandi
sfast
cat
chi
ngupi
nIndi
awi
thmor
eandmor
ebanksent
eri
ngt
hef
ray
.Indi
acanbesai
dtobe
ont
het
hreshol
dofamaj
orbanki
ngr
evol
uti
onwi
thnetbanki
nghav
ingal
readybeen
unv
eil
ed.Ar
ecentquest
ionnai
ret
owhi
ch46banksr
esponded,hasr
eveal
edt
hatat
pr
esent
,11banksi
nIndi
aar
epr
ovi
dingI
nter
netbanki
ngser
vicesatdi
ff
erentl
evel
s,22
bankspr
oposet
oof
ferI
nter
netbanki
ngi
nnearf
utur
ewhi
l
ether
emai
ning13banks
hav
enoi
mmedi
atepl
anst
oof
fersuchf
aci
l
ity
.
Atpr
esent
,thet
otalI
nter
netuser
sint
hecount
ryar
eest
imat
edat9l
akh.Howev
er,
thi
s
i
sexpect
edt
ogr
ow exponent
ial
l
yto90l
akhby2003.Onl
yabout1%ofI
nter
netuser
s
di
d banki
ng onl
i
nei
n1998.Thi
sincr
eased t
o 16.
7% i
nMar
ch2000.
*Thegr
owt
h
pot
ent
iali
s,t
her
efor
e,i
mmense.Fur
theri
ncent
ivespr
ovi
dedbybankswoul
ddi
ssuade
cust
omer
sfr
om v
isi
ti
ngphy
sicalbr
anches,
andt
husget‘
hooked’
tot
heconv
eni
enceof
ar
m-chai
rbanki
ng.Thef
aci
l
ityofaccessi
ngt
hei
raccount
sfr
om any
wher
eint
hewor
ld
byusi
ng a home comput
erwi
thI
nter
netconnect
ion,i
spar
ti
cul
arl
yfasci
nat
ing t
o
NonResi
dentI
ndi
ansandHi
ghNet
wor
thI
ndi
vi
dual
shav
ingmul
ti
plebankaccount
s.
Cost
s ofbanki
ng ser
vice t
hrough t
he I
nter
netf
orm af
ract
ion ofcost
sthr
ough
conv
ent
ionalmet
hods.Roughest
imat
esassumet
ell
ercostatRe.
1pert
ransact
ion,
ATM t
ransact
ioncostat45pai
se,phonebanki
ngat35pai
se,debi
tcar
dsat20pai
se
andI
nter
netbanki
ngat10pai
sepert
ransact
ion.Thecost
-consci
ousbanksi
nthe
count
ryhav
ether
efor
eact
ivel
yconsi
der
eduseoft
heI
nter
netasachannelf
orpr
ovi
ding
ser
vices.Ful
l
ycomput
eri
zedbanks,
wit
hbet
termanagementoft
hei
rcust
omerbasear
e
i
nast
rongerposi
ti
ont
ocr
oss-
sel
lthei
rpr
oduct
sthr
ought
hischannel
.*Sour
ce:I
ndi
a
Resear
chMay29,
2000,
Kot
akSecur
it
ies

Pr
oduct
sandser
vicesof
fer
ed
Banksi
nIndi
aar
eatdi
ff
erentst
agesoft
heweb-
enabl
edbanki
ngcy
cle.I
nit
ial
l
y,abank,
whi
chi
snothav
ingawebsi
te,al
l
owsi
tscust
omert
ocommuni
cat
ewi
thi
tthr
oughan
emai
laddr
ess;communi
cat
ioni
sli
mit
edt
oasmal
lnumberofbr
anchesandof
fi
ces
whi
chhav
eaccesst
othi
se-
mai
laccount
.Asy
et,
manyschedul
edcommer
cialbanksi
n
I
ndi
aar
est
il
li
nthef
ir
stst
ageofI
nter
netbanki
ngoper
ati
ons.
Wi
thgr
adualadopt
ionofI
nfor
mat
ionTechnol
ogy
,thebankput
supaweb-
sit
ethat
pr
ovi
desgener
ali
nfor
mat
ionont
hebanks,i
tsl
ocat
ion,ser
vicesav
ail
abl
ee.
g.l
oanand
deposi
tspr
oduct
s,appl
i
cat
ionf
ormsf
ordownl
oadi
ngande-
mai
lopt
ionf
orenqui
ri
es
andf
eedback.I
tisl
argel
yamar
ket
ingoradv
ert
isi
ngt
ool
.Forexampl
e,Vi
j
ayaBank
pr
ovi
desi
nfor
mat
iononi
tsweb-
sit
eabouti
tsNRIandot
herser
vices.Cust
omer
sar
e
r
equi
redt
ofi
l
linappl
i
cat
ionsont
heNetandcanl
aterr
ecei
vel
oansorot
herpr
oduct
s
r
equest
edf
oratt
hei
rlocalbr
anch.Af
ewbankspr
ovi
det
hecust
omert
oenqui
rei
ntohi
s
demataccount(
secur
it
ies/
shar
es)hol
dingdet
ail
s,t
ransact
iondet
ail
sandst
atusof
i
nst
ruct
ionsgi
venbyhi
m.Thesewebsi
tesst
il
ldonotal
l
owonl
i
net
ransact
ionsf
ort
hei
r
cust
omer
s.
Someoft
hebanksper
mitcust
omer
stoi
nter
actwi
tht
hem andt
ransactel
ect
roni
cal
l
y
wi
tht
hem.Such ser
vicesi
ncl
uder
equestf
oropeni
ng ofaccount
s,r
equi
si
ti
on f
or
chequebooks,st
oppay
mentofcheques,v
iewi
ngandpr
int
ingst
atement
sofaccount
s,
mov
ementoff
undsbet
weenaccount
swi
thi
nthesamebank,quer
yingonst
atusof
r
equest
s,i
nst
ruct
ionsf
oropeni
ngofLet
ter
sofCr
edi
tandBankGuar
ant
eeset
c.These
ser
vicesar
ebei
ngi
nit
iat
edbybanksl
i
keI
CICIBankLt
d.,HDFC BankLt
d.Ci
ti
bank,
Gl
obal
TrustBankLt
d.,
UTIBankLt
d.,
BankofMadur
aLt
d.,
Feder
alBankLt
d.et
c.Recent
ent
rant
sinI
nter
netbanki
ngar
eAl
l
ahabadBank(
fori
tscor
por
atecust
omer
sthr
oughi
ts
‘
All
net
’ser
vice)andBankofPunj
abLt
d.St
ateBankofI
ndi
ahasannouncedt
hati
twi
l
lbe
pr
ovi
dingsuchser
vicessoon.Cer
tai
nbanksl
i
keI
CICIBankLt
d.,hav
egoneast
ep
f
urt
herwi
thi
nthet
ransact
ionalst
ageofI
nter
netbanki
ngbyal
l
owi
ngt
ransf
eroff
unds
byanaccounthol
dert
oanyot
heraccounthol
deroft
hebank. Someoft
hemor
e
aggr
essi
vepl
ayer
sint
hisar
easuchasI
CICIBankLt
d.,HDFCBankLt
d.,UTIBankLt
d.,
Ci
ti
bank,Gl
obalTr
ustBankLt
d.andBankofPunj
abLt
d.of
fert
hef
aci
l
ityofr
ecei
pt,
r
evi
ew andpay
mentofbi
l
lson-
li
ne.Thesebankshav
eti
edupwi
thanumberofut
il
it
y
compani
es.The‘
I
nfi
nit
y’ser
viceofI
CICIBankLt
d.al
soal
l
owsonl
i
ner
ealt
imeshoppi
ng
mal
lpay
ment
stobemadebycust
omer
s.HDFCBankLt
d.hasmadee-
shoppi
ngonl
i
ne
andr
ealt
imewi
tht
hel
aunchofi
tspay
mentgat
eway
.Ithast
iedupwi
thanumberof
por
tal
stoof
ferbusi
ness-
to-
consumer(
B2C)e-
commer
cet
ransact
ions.Thef
ir
stonl
i
ne
r
ealt
imee-
commer
cecr
edi
tcar
dtr
ansact
ioni
nthecount
rywascar
ri
edoutont
he
Easy
3shoppe.
com shoppi
ngmal
l
,enabl
edbyHDFCBankLt
d.onaVI
SAcar
d.
Banksl
i
keI
CICIBankLt
d.,HDFCBankLt
d.et
c.ar
ethusl
ooki
ngt
oposi
ti
ont
hemsel
ves
as one st
op f
inanci
alshops.These banks hav
eti
ed up wi
th comput
ert
rai
ning
compani
es,comput
ermanuf
act
urer
s,I
nter
netSer
vices Pr
ovi
der
s and por
tal
sfor
expandi
ngt
hei
rNetbanki
ngser
vices,
andwi
deni
ngt
hei
rcust
omerbase.I
CICIBankLt
d.
hassetup aweb based j
ointv
ent
uref
oron-
li
nedi
str
ibut
ionofi
tsr
etai
lbanki
ng
pr
oduct
sandser
vicesont
heI
nter
net
,incol
l
abor
ati
onwi
thSat
yam I
nfoway
,apr
ivat
e
I
SP t
hrough a por
tal named as i
cici
sif
y.com. The cust
omer base of
www.
sat
yamonl
i
ne.
com por
tal
isal
soav
ail
abl
etot
hebank.Set
ti
ngupofI
nter
netki
osks
andper
meat
iont
hrought
hecabl
etel
evi
sionr
out
etowi
dencust
omerbasear
eot
her
pr
ior
it
yar
easi
ntheagendasoft
hemor
eaggr
essi
vepl
ayer
s.Cent
uri
onBankLt
d.has
t
akenupequi
tyst
akei
nthet
eauct
ion.
com por
tal
,whi
chai
mst
obr
ingt
oget
herbuy
ers,
sel
l
ers,r
egi
ster
edbr
oker
s,suppl
i
ersandassoci
ati
onsi
nthet
eamar
ketandsubst
it
ute
t
hei
rphy
sical
presenceatt
heauct
ionsannounced.
Bankspr
ovi
dingI
nter
netbanki
ngser
viceshav
ebeenent
eri
ngi
ntoagr
eement
swi
th
t
hei
rcust
omer
sset
ti
ngoutt
het
ermsandcondi
ti
onsoft
heser
vices.Thet
ermsand
condi
ti
onsi
ncl
udei
nfor
mat
ionont
heaccesst
hroughuser
-i
dandsecr
etpasswor
d,
mi
nimum bal
anceandchar
ges,aut
hor
it
ytot
hebankf
orcar
ryi
ngoutt
ransact
ions
per
for
medt
hrought
heser
vice,l
i
abi
l
ityoft
heuserandt
hebank,di
scl
osur
eofper
sonal
i
nfor
mat
ionf
orst
ati
sti
calanal
ysi
sandcr
edi
tscor
ingal
so,non-
tr
ansf
erabi
l
ityoft
he
f
aci
l
ity
,not
icesandt
ermi
nat
ion,
etc.
The r
ace f
ormar
ketsupr
emacyi
s compel
l
ing banks i
nIndi
ato adoptt
he l
atest
t
echnol
ogyont
heI
nter
neti
nabi
dtocapt
urenewmar
ket
sandcust
omer
s.HDFCBank
Lt
d.wi
thi
ts‘
Freedom-t
hee-
AgeSav
ingAccount
’Ser
vice,
Cit
ibankwi
th‘
Suv
idha’
and
I
CICIBankLt
d.wi
thi
ts‘
Mobi
l
eCommer
ce’
ser
vicehav
eti
edupwi
thcel
l
phoneoper
ator
s
t
oof
ferMobi
l
eBanki
ngt
othei
rcust
omer
s.Gl
obalTr
ustBankLt
d.hasal
soannounced
t
hati
thast
iedupwi
thcel
l
ularoper
ator
stol
aunchmobi
l
ebanki
ngser
vices.Under
Mobi
l
eBanki
ngser
vices,cust
omer
scanscant
hei
raccount
sto seekbal
anceand
pay
ment
sst
atusori
nst
ructbankst
oissuecheques,paybi
l
lsordel
i
verst
atement
sof
account
s.I
tisest
imat
edt
hatby2003,cel
l
ularphoneswi
l
lhav
ebecomet
hepr
emi
er
I
nter
netaccessdev
ice,out
sel
l
ing per
sonalcomput
ers.Mobi
l
e banki
ng wi
l
lfur
ther
mi
nimi
set
heneedt
ovi
sitabankbr
anch.

I
NDI
AAFTERSOMEYEARS
Wi
tht
heongoi
ngdi
git
aldr
ivei
nIndi
a,t
henumberofuser
sopt
ingf
oronl
i
ne
banki
ngi
sexpect
edt
odoubl
etor
each150mi
l
li
onmar
kby2020,f
rom t
he
cur
rent45mi
l
li
onact
iveur
banonl
i
nebanki
nguser
sinI
ndi
a,accor
dingt
oar
epor
t
dr
aft
edbyFacebookandTheBost
onConsul
ti
ngGr
oup(
BCG)
.Inar
epor
t,t
it
led
“
ENCASHI
NG ON DI
GITAL:Fi
nanci
alSer
vices i
n 2020”
,the t
wo f
ir
ms hav
e
hi
ghl
i
ght
ed t
he r
isi
ng i
nfl
uence of di
git
ali
nfi
nanci
alser
vices and t
he
t
ransf
ormat
ionr
equi
redt
omaket
hemostoft
hisr
evol
uti
on.“
Indi
acoul
dnotbe
mor
ereadyf
ora di
git
alr
evol
uti
on i
nfi
nanci
alser
vices– wi
th gov
ernment
i
nter
vent
ionsononehandandgr
owi
ngconsumerawar
enessont
heot
her
.Wi
de
scal
eadopt
ionofdi
git
alhast
hepot
ent
ialofr
educi
ngcostofacqui
sit
ionand
costofser
vici
ng t
o 1/
10t
h.Thi
s can subst
ant
ial
l
yimpr
ove cust
omerl
evel
pr
ofi
tabi
l
ityandcanaddt
oret
ail
prof
itpool
by$3–3.
5bi
l
li
onby2020,
”sai
dAmi
t
Kumar
,Par
tnerandManagi
ngDi
rect
or,
TheBost
onConsul
ti
ngGr
oup,
Indi
a.
I
ndi
aisi
nthemi
dstofadi
git
alr
evol
uti
on,wi
thI
nter
netuser
sgoi
ngbey
ondj
ust
sear
chandsoci
alnet
wor
kingandmov
ingt
omor
emat
ureact
ivi
ti
esl
i
keonl
i
ne
shoppi
ng and banki
ng.Al
ready70 per
centur
bani
nter
netuser
sar
edi
git
all
y
i
nfl
uenceddur
ingf
inanci
alpr
oductpur
chase,
thati
s,t
heyuseatl
eastonedi
git
al
channeldur
ingt
hepur
chasej
our
neyofaf
inanci
alpr
oduct
.Int
ermsofdi
git
al
adopt
ion,f
inanci
alser
vicesi
sal
readymuchl
argert
hanot
hercat
egor
iesl
i
ke
consumerel
ect
roni
csort
rav
el.

E-
banki
ngi
ncl
ude:cust
omeraccept
anceandsat
isf
act
ion,
pri
vacyconcer
ns,
prof
it
abi
l
ity
,
oper
ati
onalr
isks,andcompet
it
ionf
rom nonbanki
ngi
nst
it
uti
ons(
Bossetal
.
,2000;
Smi
th,2006;Hwang etal
.,2007;Shi
n,2008)
.Bet
ween 1995 and 2003,e-
banki
ng
i
ncr
easedei
ght
fol
d(Hogar
thandAnguel
ov,
2004)
.E-
banki
ngdef
inedas„
„thedel
i
ver
yof
banki
ngser
vicest
hrought
heopen-
accesscomput
ernet
wor
kdi
rect
lyt
ocust
omer
s‟
homeorpr
ivat
eaddr
ess‟
‟.Si
mpson(
2002)suggest
sthate-
banki
ngi
sdr
ivenl
argel
yby
t
hepr
ospect
sofoper
ati
ngcost
smi
nimi
zat
ionandoper
ati
ngr
evenuesmaxi
mizat
ion.A
compar
ison ofonl
i
ne banki
ng i
n dev
eloped and emer
ging mar
ket
srev
ealt
hati
n
dev
elopedmar
ket
slowercost
sandhi
gherr
evenuesar
emor
enot
iceabl
e.Kar
jal
uot
o
(
2002)el
ect
roni
cbanki
ngi
saconst
ructt
hatconsi
stsofsev
eraldi
str
ibut
ionchannel
s.
DeYoung(
2005)anal
yzet
heper
for
manceofI
nter
net
-onl
ybanksv
ersust
hebr
ickand
mor
tar
sint
heUS mar
ketand f
ind st
rong ev
idenceofgener
alexper
ienceef
fect
s
av
ail
abl
etoal
lst
art
-ups.Bet
weenl
ate2002andear
ly2005,useofonl
i
nebanki
ng
i
ncr
eased47%,acl
earev
idencet
hate-
banki
ngi
sassoci
atedwi
thbet
terhousehol
d
f
inanci
almanagement(
Smi
th,2006)
.Fort
hepastt
wodecades,t
hebanki
ngsect
orhas
chosenanew ser
vicechannelbasedont
hepr
ogr
essofi
nfor
mat
iont
echnol
ogy-t
he
I
nter
net
-tor
espondt
othechangesi
ncust
omerpr
efer
encesandneeds,i
ncr
eased
compet
it
ion f
rom non-
banks,changes i
n demogr
aphi
c and soci
alt
rends,and
gov
ernmentder
egul
ati
onsoft
hef
inanci
alser
vicesect
orBy
ers,R.
E.andLeder
er,P.
L.
(
2001)E-
banki
ngl
i
nksbusi
nesst
ocust
omer
snomat
tert
hei
rgeogr
aphi
call
ocat
ion.I
t
al
l
owscompani
est
o makenew busi
nesscont
act
sfr
om di
ff
erentgl
obalbusi
ness
al
l
iances,t
estnew pr
oduct
s and ser
vices,and make mar
ketr
esear
ch and ot
her
enqui
ri
esal
latami
nimalcostbot
hfi
nanci
alandot
her
wise(
Shi
n,2008)
.Theadopt
ion
ofnew I
Tappl
i
cat
ionsi
sinf
luencedl
argel
ybyf
act
orsr
elat
edt
oov
eral
lor
gani
zat
ional
at
ti
tudesandcul
tur
easwel
ltechni
cal
andi
nfr
ast
ruct
ural
element
sShah.
M andCl
arke.
S.
(
2009)
.Addi
ti
onalr
esear
chwasconduct
edbyKhor
shi
dandGhanehKhor
shi
d,S.and
Ghane,
H.(
2009)andi
nthei
rar
ti
cleonr
anki
ngt
hechal
l
engesofebanki
ngi
dent
if
iedf
or
manager
sofbanks;
cust
omer
s’pr
ivacy
,secur
it
y,andcust
omer
s’t
rustasi
ssuesar
isi
ng.
Forcust
omer
s;r
eput
ati
onofbank,r
egul
ati
onsandl
aws,andeasyaccessi
bil
i
tywer
e
seen as t
he mai
n chal
l
enges f
ort
he dev
elopmentofe-
banki
ng.The sur
veyal
so
est
imat
esar
ound2.
4mi
l
li
onE-
commer
ceuser
s,whi
chi
ncl
udedi
nter
netbanki
nguser
s.
Anest
imat
ed4.
6mi
l
li
onI
ndi
ani
nter
netuser
sar
eav
ail
i
ngi
nter
netbanki
ngser
vicesas
of2007(
Kot
har
i,2007)Thi
spaperdescr
ibesanempi
ri
calst
udyofi
nvest
igat
ingr
ecent
t
rendanddev
elopmentoft
heappl
i
cat
ionofe-
banki
ng(
banki
ngt
houghi
nter
net
)ina
t
ypi
caldev
elopi
ngcount
ry–Bangl
adesh,andi
tseconomi
cimpactonl
ocalf
inanci
al
i
nst
it
uti
ons.E-
banki
ngpr
ovi
desenor
mousbenef
it
stoconsumer
sint
ermsoft
heease
andcostoft
ransact
ions(
Liu,2008)
.itcanbet
houghtofasaser
vicet
hatal
l
ows
cust
omer
stousesomet
ypesofcomput
erst
oaccessaccount
speci
fi
cinf
ormat
ionand
possi
blyconductt
ransact
ionsf
rom ar
emot
elocat
ion– suchasathomeoratt
he
wor
kpl
ace(
Sal
ehandAndr
ea,2002)Amor
erecente-
banki
ngdev
elopmenti
swi
rel
ess
i
nter
netappl
i
cat
ionsofbanki
ngsomet
imescal
l
edm-
banki
ng(
mobi
l
ebanki
ng)(
Choiet
al
.,2006;Scor
nav
accaandHoehl
e,2007)
.Wi
tht
hecombi
nat
ionoft
womostr
ecent
t
echnol
ogi
caladv
ancement
s–i
nter
netandmobi
l
ephone,anew ser
vice(
mobi
l
edat
a
ser
vice)i
sthusenabl
edand118J.YangandK.
T.Ahmedt
hef
ir
stsuchwi
rel
essi
nter
net
commer
cial
transact
ioni
sper
for
medbyt
hebanki
ngi
ndust
ry(
Bar
nesandCor
bit
t,2003)
.
E-
banki
ngal
socani
ncr
easecompet
it
ionamongbanks,andal
l
owsbankst
openet
rat
e
newmar
ket
sandt
husexpandt
hei
rgeogr
aphi
calr
each.Someev
enseee-
banki
ngasan
oppor
tuni
tyf
orcount
ri
es wi
th under
dev
eloped f
inanci
alsy
stems t
oleapf
rog i
nto
adv
ancedst
ages(
GAO andOwol
abi
,2008)
.Cust
omeri
nsuchcount
ri
escanaccess
ser
vices mor
e easi
l
yfr
om banks out
side one’
s own count
ryt
hrough wi
rel
ess
communi
cat
ionsy
stems,whi
char
edev
elopi
ngmor
erapi
dlyt
hant
radi
ti
onal‘
wir
ed’
communi
cat
ionnet
wor
ks(
GAOandOwol
abi
,2008)
.

TOOLSOFELECTRONI
CBANKI
NG
Anumberofser
vicesar
ebei
ngof
fer
edt
hroughel
ect
roni
cbanki
ng.I
tisqui
tedi
ff
icul
tto
measur
etheext
entofsuchser
vices,butanef
for
thasbeenmadebycl
assi
fyi
ngt
hese
ser
vicesi
ntot
wocat
egor
ies.Fi
rst
ly,t
ojudget
hei
mpactofebanki
ngt
hroughdi
ff
erent
websi
tes,
ser
vicesbei
ngof
fer
edbyt
hebankshav
ebeencat
egor
izedi
ntoi
nfor
mat
ional
andt
ransact
ionalser
vices.Secondl
y,t
heext
entoft
heseser
viceshasbeenmeasur
ed
t
hroughATM ser
vicesof
fer
edbyt
hebanks.A.ATM An(
ATM)al
soknownasan
aut
omat
edbanki
ngmachi
ne(
ABM)t
hatenabl
est
hecl
i
ent
sofaf
inanci
ali
nst
it
uti
ont
o
per
for
mfi
nanci
alt
ransact
ionswi
thoutt
heneedf
oracashi
er,
humancl
erkorbankt
ell
er.
MostATMsar
econnect
edt
oint
erbanknet
wor
ks,enabl
i
ngpeopl
etowi
thdr
aw and
deposi
tmoneyf
rom machi
nes notbel
ongi
ng t
othe bank wher
etheyhav
ethei
r
account
sori
nthecount
ri
eswher
ethei
raccount
sar
ehel
d(enabl
i
ngcashwi
thdr
awal
s
i
nlocalcur
rency
).Al
thoughATMswer
eor
igi
nal
l
ydev
elopedasj
ustcashdi
spenser
s,
t
heyhav
eev
olv
edt
oincl
udemanyot
herbank-
rel
atedf
unct
ions.B.Smar
tcar
dAsmar
t
car
d,chi
pcar
d,ori
ntegr
atedci
rcui
tcar
d(I
CC)i
sanypocket
-si
zedcar
dwi
thembedded
i
ntegr
atedci
rcui
ts.Smar
tcar
dscanpr
ovi
dei
dent
if
icat
ion,aut
hent
icat
ion,dat
ast
orage
andappl
i
cat
ionpr
ocessi
ng.Smar
tcar
dsmaypr
ovi
dest
rongsecur
it
yaut
hent
icat
ionf
or
si
ngl
esi
gn-
on (
SSO)wi
thi
nlar
geor
gani
zat
ion.Fi
nanci
ali
nst
it
uti
onswor
ldwi
dear
e
dev
elopi
ngnew met
hodst
omai
ntai
nandexpandt
hei
rser
vicest
omeett
heneedof
i
ncr
easi
ngl
ysophi
sti
cat
edandt
echni
cal
l
ysmar
tcust
omer
,aswel
last
o meett
he
emer
gingpay
mentneedsofel
ect
roni
ccommer
ce.Tr
adi
ti
onalcr
edi
tcar
dsar
efast
ev
olv
ing i
nto smar
tcar
ds as consumer
s demand pay
mentand f
inanci
alser
vices
pr
oductt
hatuserf
ri
endl
y,conv
eni
entandr
eli
abl
e.C.Debi
tcar
dAnel
ect
roni
ccar
d
i
ssuedbyabankwhi
chal
l
owsbankcl
i
ent
saccesst
othei
raccountt
owi
thdr
awcashor
payf
orgoodsandser
vices.Thi
sty
peofcar
d,asaf
orm ofpay
ment
,al
sor
emov
est
he
need f
orchecksast
hedebi
tcar
dimmedi
atel
ytr
ansf
ersmoneyf
rom t
hecl
i
ent
's
accountt
othe busi
ness account
.The maj
orbenef
it
stot
hist
ype ofcar
d ar
e
conv
eni
enceand secur
it
y.Debi
tcar
dsar
eal
so consi
der
ed t
o beasaf
erf
orm of
pay
mentasacodei
srequi
redt
oaccesst
heaccountf
unds,whi
l
echeckscanbeeasi
l
y
st
olen.Debi
tcar
dsar
eal
soknownascheckcar
ds.Debi
tcar
dsl
ookl
i
kecr
edi
tcar
dsor
ATM car
ds,
butoper
atel
i
kecashoraper
sonal
check.D.Mobi
l
ebanki
ngMobi
l
ebanki
ng
i
sasy
stem t
hatal
l
owscust
omer
sofaf
inanci
ali
nst
it
uti
ont
oconductanumberof
f
inanci
alt
ransact
ionst
hroughamobi
l
edev
icesuchasamobi
l
ephoneorper
sonal
di
git
alassi
stant
.Thescopeofof
fer
edser
vicesmayi
ncl
udef
aci
l
iti
est
oconductbank
and st
ockmar
kett
ransact
ions,t
o admi
nist
eraccount
sand t
o accesscust
omi
zed
i
nfor
mat
ion.The f
oll
owi
ng ser
vices can be av
ail
ed t
hrough t
he Mobi
l
e banki
ng
appl
i
cat
ion:•Fundst
ransf
er(
wit
hin and out
sidet
hebank)
.•I
mmedi
atePay
ment
Ser
vices.•Enqui
ryser
vices (
Bal
ance enqui
ry/Mi
nist
atement
).•DematAccount
Ser
vices.•Request
s(Chequebookr
equest
/Gener
ateOTP)
.•Bi
l
lPay(
Uti
l
itybi
l
ls,
credi
t
car
ds,I
nsur
ancepr
emi
um)
,Donat
ions,Subscr
ipt
ionset
c….E.Cr
edi
tcar
dThewor
d
cr
edi
tor
igi
nat
edf
rom t
heLat
inwor
dcr
edomeani
ngTr
ust
.Acr
edi
tcar
disapay
ment
car
dissuedt
ouser
sasasy
stem ofpay
ment
.Iti
ndi
cat
esanopi
nionont
hef
utur
eabi
l
ity
t
othei
ssuert
omaket
imel
ypay
mentofpr
inci
palandi
nter
estoff
ixedi
ncomesecur
it
y.
Acr
edi
tcar
dal
l
owssmal
lshor
t-
ter
mloanst
obequi
ckl
ymadet
oacust
omerwhoneed
notcal
cul
ateabal
ancer
emai
ningbef
oreev
eryt
ransact
ion.
Cr
edi
tcar
denabl
esacar
dhol
dert
opur
chasegoods,
dinei
nar
est
aur
ant
,st
ayi
nahot
el
ort
rav
elwi
thoutmaki
ng i
mmedi
ate pay
mentt
he bank makes pay
mentt
othe
est
abl
i
shmentconcer
ned.Thepay
menti
saccommodat
edf
ort
hecar
dhol
der
sfora
speci
fi
cper
iodoft
ime,sayf
orf
ort
y-f
iveday
s.I
tenabl
est
hecar
dhol
dert
opur
chase
goodsandser
viceswi
thoutcashatsel
ectpl
aces.Cr
edi
tcar
dscanal
soof
ferr
ewar
d
poi
ntswhi
chmayber
edeemedf
orcash,pr
oduct
s,orai
rl
inet
icket
s.Tel
ebanki
ng
Tel
ebanki
ng i
nis car
ryi
ng outf
inanci
alt
ransact
ions usi
ng t
elephones.Tel
ephone
banki
ngi
saser
vicepr
ovi
dedbyabankorot
herf
inanci
ali
nst
it
uti
on,t
hatenabl
es
cust
omer
stoper
for
mfi
nanci
alt
ransact
ionsov
ert
het
elephone,wi
thoutt
heneedt
o
v
isi
tabankbr
anch.Fr
om t
hebank'
spoi
ntofv
iew,t
elephonebanki
ngr
educest
hecost
ofhandl
i
ngt
ransact
ionsbyr
educi
ngt
heneedf
orcust
omer
stov
isi
tabankbr
anchf
or
noncashwi
thdr
awalanddeposi
ttr
ansact
ions.I
nfor
mat
ion/Ser
vicesav
ail
abl
ethr
ough
PhoneBanki
ng•I
nfor
mat
ionaboutPr
oduct
sandSer
vices.•I
nfor
mat
ionaboutAccount
Bal
anceandTr
ansact
ions.•I
nfor
mat
ionaboutst
atusofChequeI
ssuedorDeposi
ted.•
I
nfor
mat
ionaboutATM andBr
anchl
ocat
ions.•I
nfor
mat
ion/I
ssuesonusageof-ATM,
I
nter
netBanki
ngorMobi
l
eBanki
ng.•Requestf
orChequeBooket
c….
.Ot
herser
vices
pr
ovi
dedbybank.•Onl
i
neshar
etr
adi
ng.•Fundt
ransf
er.•Onl
i
neaccountopeni
ng.•Bi
l
l
pay
ment
.•Loanf
aci
l
ity
.•Onl
i
nebooki
ng.•Taxpay
ment
.

Schedul
edCommer
cial
Banks:
Thebanks,whi
chcar
ryonbusi
nessofbanki
ngi
nIndi
aandwhi
char
eincl
udedi
nthe
secondschedul
etot
heReser
veBankofI
ndi
aAct
,1934ar
eknownasSchedul
edBanks.
24.
10Thesei
ncl
udet
heSt
ateBankofI
ndi
a,ot
herI
ndi
anBanksandFor
eignBanks.(
i)
St
ateBankofI
ndi
a:TheSt
ateBankofI
ndi
awasf
ormed i
n Jul
y,1955 af
tert
he
nat
ional
i
zat
ionoft
heI
mper
ialBankofI
ndi
a.(
ii
)Ot
herI
ndi
anBanks:I
ndi
anbanksar
e
t
hosewhohav
ethei
rregi
ster
edof
fi
cesi
nIndi
a.Thesei
ncl
udePr
ivat
eSect
orBanks,
Associ
atesofSt
ateBankofI
ndi
a,19nat
ional
i
zedandRegi
onal
Rur
alBanks.(
ii
i)For
eign
Banks:
For
eignbanksar
ethosewhohav
ethei
rregi
ster
edof
fi
cesout
sideI
ndi
a.

Chal
l
enges&Oppor
tuni
ti
esBef
oret
heBanki
ngSect
or:
Rur
alMar
ket
s:Lar
genumberofpeopl
edonothav
eaccesst
obanki
ngf
aci
l
iti
esduet
o
scat
ter
edandf
ragment
edl
ocat
ions.Si
gni
fi
cantpr
opor
ti
onoft
hesamel
i
esi
nrur
al
ar
easwher
epr
ivat
ebankshav
eli
tt
lei
ncent
ivet
oinv
est
.AsperCensus2011about58.
7
percenthousehol
dsi
nIndi
aav
ailbanki
ngf
aci
l
iti
es.Thepr
opor
ti
oni
slesst
han50per
centi
ncaseofSt
atesl
i
keBi
har
,Chhat
ti
sgar
h,Odi
sha,WestBengal&Nor
thEast
ern
st
ates l
i
ke Mani
pur& Nagal
and,Assam & Meghal
aya.Howev
er,wi
thi
ncr
easi
ng
consumpt
ionl
evel
sofr
uralI
ndi
a&cutt
hroatcompet
it
ioni
nur
banmar
ket
s,r
uralar
eas
ar
egai
ningi
ncr
easi
ngi
mpor
tance.Oneexampl
eoft
het
rendwast
her
ecentmer
gerof
BankofRaj
ast
hanwi
thI
CICIBankLt
dwhi
cht
hel
att
err
esor
tedt
oinor
dert
oincr
easei
ts
r
eachi
nrur
almar
ketandmar
ketshar
esi
gni
fi
cant
ly.24.
14I
ncr
easedcompet
it
ion:
Pr
ofi
tsofbanksar
ebei
ngaf
fect
edbyi
ncr
easedcompet
it
ion,wi
thdi
ff
erentpubl
i
cand
pr
ivat
esect
orbanksv
yingf
ori
ncr
easedshar
eofcust
omer
s.Buti
ncr
easedcompet
it
ion
hasal
sor
esul
tedi
nincr
easedef
fi
ciency
,impr
ovedcust
omerser
vicesandpr
ofi
tabi
l
ityi
n
t
ermsofr
etur
nsonbot
hequi
tyandasset
s.Banks,nowhav
etocont
inuousl
yinnov
ate
t
hei
rpr
act
icest
ost
ayaheadi
nthemar
ket
.Incr
easi
ngcompet
it
ion,
howev
er,
mightal
so
i
nducet
hebankst
ohi
gherr
iskt
aki
ngst
rat
egi
es.ManagementofRi
sks:Resear
cher
s
hav
efoundt
hatI
ndi
anbanksr
iskmanagementcapabi
l
iti
eshasbeeni
mpr
ovi
ngov
er
t
ime.Howev
ercy
berbanki
ng,exi
sti
nggl
obalbanki
ngscenar
ioet
chav
eint
roduced
newert
ypesofr
isk.I
nter
nat
ionalr
egul
ator
ynor
mshav
ebecomemor
est
ri
ngenti
nvi
ew
off
ail
ureofmanyf
inanci
ali
nst
it
uti
ons.Gl
obal&Domest
icEnv
ironment
:Bankr
upt
cyof
LehmanBr
other
sHol
dingsI
nc,f
our
thl
argesti
nvest
mentbanki
nUS,i
n2008,r
eveal
ed
f
inanci
ali
nst
abi
l
ityi
nGl
obalmar
ket
s.I
nst
abi
l
ityofsov
eri
gndebtmar
keti
nEur
ozone
cont
inuesasi
ncr
easi
ngnumberofcount
ri
esi
nEur
opeanUni
onf
acet
oughsi
tuat
ion.
Ami
dstwor
seni
nggl
obalscenar
io,banki
ngr
ules&r
egul
ati
onf
ramewor
kofI
ndi
ahas
pr
event
edi
tfr
om economi
ccr
isi
s.Butt
hest
agnat
ion&ev
enr
ecessi
oni
nsomegl
obal
mar
ket
sleadi
ngt
olesserdemandandsl
owerpaceofgr
owt
hofI
ndi
aneconomyhas
const
rai
nedt
hecr
edi
tupt
ake.Howev
er,I
ndi
anf
inanci
alsy
stem i
sexpect
edt
oremai
n
r
obustonaccountofbankscapabi
l
ityt
owi
thst
andst
ress.Howev
er,aser
iesofst
ress
t
est
sconduct
edbyt
heReser
veBanki
nrespectofcr
edi
t,l
i
qui
dit
yandi
nter
estr
ater
isks
showedt
hatbanksr
emai
nedr
easonabl
yresi
l
ient
.Howev
er,underext
remeshocks,
somebankscoul
dfacemoder
atel
i
qui
dit
ypr
obl
emsandt
hei
rpr
ofi
tabi
l
itycoul
dbe
af
fect
ed.I
nthe l
ong r
un,wi
th hi
gh gr
owt
h pot
ent
ialoft
he I
ndi
an economyand
f
avour
abl
edemogr
aphi
cs,bankshav
eimmenseoppor
tuni
ti
est
ofur
therexpandt
hei
r
busi
nessbot
hwi
tht
radi
ti
onalandi
nnov
ati
vepr
oduct
sandt
hroughf
inanci
ali
ncl
usi
on
usi
ngt
echnol
ogyenabl
edsust
ainabl
ebusi
nessmodel
s.Compl
i
ancewi
thI
nter
nat
ional
Requi
rement
s:I
nthebackgr
oundofr
ecentgl
obalr
egul
ator
ydev
elopment
s,BaselI
II
l
argel
y ai
ming athi
gherand bet
terqual
i
ty capi
tal
;an i
nter
nat
ional
l
y har
moni
sed
l
ever
ager
ati
otoconst
rai
nexcessi
ver
iskt
aki
ng;
capi
talbuf
fer
swhi
chwoul
dbebui
l
tup
i
ngoodt
imessot
hatt
heycanbedr
awndowni
nti
mesofst
ress;mi
nimum gl
obal
l
i
qui
dit
yst
andar
ds;andst
rongerst
andar
dsf
orsuper
visi
on,publ
i
cdi
scl
osur
eandr
isk
management
,wasi
ntr
oduced.Af
ew i
ndi
vi
dualbanksmayf
allshor
toft
heBaselI
II
nor
msand wi
l
lhav
eto augmentt
hei
rcapi
tal
.Bankswi
l
lal
so f
acechal
l
engesof
upgr
adi
ngr
iskmanagementsy
stemsandmeet
ingt
hecr
edi
tneedsofar
api
dlygr
owi
ng
economyev
enwhi
l
eadj
ust
ingt
oamor
edemandi
ngr
egul
ator
yregi
me.I
ntr
oduct
ionof
I
nter
nat
ionalFi
nanci
alRepor
ti
ng Sy
stem (
IFRS)t
ofaci
l
itat
e compar
abi
l
itybet
ween
ent
erpr
isesoper
ati
ngi
ndi
ff
erentj
uri
sdi
cti
ons,hasal
sopl
acedaddi
ti
onaldemandson
I
ndi
anbanks.I
nor
dert
omaket
het
ransi
ti
ont
oIFRS t
heywoul
dhav
etohandl
e
account
ingi
ssuesandupgr
adet
hei
rinf
rast
ruct
urei
ncl
udi
ngI
T&humanr
esour
ce.

Per
for
manceofBanki
ngSect
or:
Si
nce t
he i
ntr
oduct
ion off
inanci
alsect
orr
efor
msaboutt
wo decadesago,I
ndi
an
Banki
ng I
ndust
ryhas gr
own t
remendousl
yinv
olume & has become i
ncr
easi
ngl
y
compet
it
ive.Consi
der
ingasset
s&l
i
abi
l
iti
esasani
ndi
cat
oroft
hescal
eofoper
ati
ons,
i
mpr
essi
vegr
owt
hhasbeenseendur
ing t
hel
astdecadeexceptf
ort
heFi
nanci
al
Cor
por
ati
ons.I
nfact
,St
ateFi
nanci
alCor
por
ati
onsr
ecor
dedadecl
i
neofabout7per
centdur
ingt
hel
astdecade.Howev
er,ont
heav
erage,atl
eastt
hreef
oldi
ncr
easewas
obser
vedi
ncaseofRBI
,SBI,
IDBIandot
herBankswi
thSBIr
ecor
dingi
ncr
easei
nasset
&l
i
abi
l
iti
esi
n2011byaboutf
ourt
imesoft
hoseat2001andt
hebanksexcl
udi
ngSBIan
i
ncr
easebymor
ethansi
xti
mes.

Banker
s’Pr
obl
ems:
Thenewpr
ivat
esect
orbankst
hatent
eredt
hef
iel
din1994st
art
edwi
thacl
eanbal
ance
sheetandusedt
echnol
ogyast
hemeansofi
mpr
ovi
ngef
fi
ciencyandr
each.I
nthel
ast
f
ewy
ear
sthepr
ivat
esect
orbankshav
ecomeal
ongwayt
hought
heyhav
enotachi
eved
t
hepot
ent
iali
nter
msofdeposi
tgr
owt
handonmanyf
ront
sthei
rsi
zeandshar
eis
i
nsi
gni
fi
cantwhencompar
edt
otr
adi
ti
onalpubl
i
csect
orbanks.Thepubl
i
cbankshav
e
r
emai
nedl
aggar
dsi
nther
acef
oradopt
ingI
nter
netbanki
ngpr
act
ices.Ther
ear
ever
y
f
ewnat
ional
i
sedbanksl
i
keSt
ateBankofI
ndi
a,Punj
abNat
ionalBank,BankofBar
oda,
Al
l
ahabadBank,Sy
ndi
cat
eBankandBankofI
ndi
athatof
ferI
nter
netbanki
ngser
vices.
SBI
’
sInt
ernetbanki
ngi
nit
iat
ive,l
aunchedi
nJul
y2001,i
sinf
actdoi
ngqui
tewel
l
.One
canonl
yimagi
net
hecompl
exi
ti
esi
nvol
vedi
ndepl
oyi
ngacor
ebanki
ngsol
uti
onf
oran
ent
it
ythesi
zeofSt
ateBankofI
ndi
a.Wi
thmor
ethan13,
600br
anchesspr
eadacr
oss
t
hel
engt
handbr
eadt
hoft
hecount
ry,t
hepr
ojectwashugei
nsi
zeandcompl
i
cat
edi
n
i
tsi
mpl
ement
ati
on.Anot
herpubl
i
csect
orgi
antPunj
abNat
ionalBank’
s(PNB’
s)hasal
so
comeal
ongwaysi
nceMar
ch2000,whenI
T sy
stemswer
edepl
oyedonl
yat500
br
anches,and wer
ever
yinadequat
e.Onl
y35 per
centoft
hebank’
sbusi
nesswas
comput
eri
zedandanumberofsmal
lsof
twar
epackagesr
anonst
andal
onePCs.97per
centofBank’
sbusi
nessi
scapt
uredt
hroughcomput
ers.Cor
e
Banki
ngSol
uti
ons(
CBS)hasbeeni
mpl
ement
edi
n504Ser
viceOut
let
s(SOLs)cov
eri
ng
101 cent
res ofcount
ry.The bank i
mpl
ement
ed St
ruct
ured Fi
nanci
alMessagi
ng
Sol
uti
ons(
SFMS)f
orf
undst
ransf
erf
rom anyoft
heCBSbr
anchesat101cent
res.But
despi
teposi
ti
venewsl
i
ket
hese,
publ
i
csect
orbanksst
il
lhav
eal
otofcat
chi
ngupt
odo
ont
heI
nter
netbanki
ngser
vicesf
ront
.Sof
ar,t
her
ear
ethr
eedi
sti
nctmi
l
est
onest
hat
I
ndi
anbankshav
eachi
evedont
hei
re-
dri
ve.Att
hef
ir
stl
evel
,banksof
feri
nfor
mat
ion
aboutt
hei
rpr
oduct
sandser
vices.Mostpubl
i
csect
orbanksi
nIndi
aar
est
il
ll
inger
ingat
t
hisl
evel
.Some,whohav
emanagedt
ocr
osst
hei
nit
ialcostandt
echnol
ogyhur
dles,
af
for
dint
eract
ionbet
weenbanksandcust
omer
s.Her
etheser
vicesi
ncl
udeel
ect
roni
c
mai
l
,bal
anceenqui
ryandl
oanappl
i
cat
ions.And,atahi
gherl
evel
,somepr
ivat
eIndi
an
andf
orei
gnbankshav
eenabl
edt
ransact
ionalbanki
ngwher
ecust
omer
smakeut
il
it
y
pay
ment
sfort
elephoneandel
ect
ri
cit
ybi
l
ls,
muni
cipal
taxesandsoon.Thoughf
ull
scal
e
t
ransf
eroff
undsacr
ossal
lbanksi
syett
ost
art
,mostbanksal
l
owt
ransf
eroff
undst
o
anot
heraccount
-hol
deri
nthesamebank(
Pray
ag,
Anj
ali
andVageesh,
N.S.
,2004)
.Whi
l
e
t
hebanksi
ndev
elopedcount
ri
esar
ewor
kingpr
imar
il
yvi
aInt
ernetasnon-
branchbanks,
banksi
nthedev
elopi
ngcount
ri
esuset
heI
nter
netasani
nfor
mat
iondel
i
ver
ytoolt
o
i
mpr
over
elat
ionshi
pwi
thcust
omer
s(Jay
adev
,2001)
.Thent
her
eist
hei
ssueoft
he
l
egacysy
stems.Si
ncet
hepubl
i
csect
orbanksar
est
il
lint
hepr
ocessofaut
omat
ing
t
hei
rpr
ocesses,t
heyneedt
orunt
hemanualpr
ocessesf
orsomet
ime.Mostoft
heI
T
i
nit
iat
ivesof
arhasmeantaut
omat
ingt
het
radi
ti
onalpaper
wor
ktoonl
i
nepr
ocess.
Cont
rar
ytot
his,asl
ateent
rant
sint
hebanki
ngsect
or,pr
ivat
ebankshadt
hebenef
itof
wor
kingi
naf
ull
yaut
omat
edwor
kenv
ironmentr
ightsi
ncet
hei
rincept
ion,andcoul
d
compet
ewi
tht
hef
orei
gnpl
ayer
sint
ermsoft
echnol
ogy
.Nai
r(1999)obser
vest
hat
I
ndi
anI
nter
netbanki
ngi
sst
il
lnascent
,al
thoughi
tisf
astbecomi
ngast
rat
egi
cnecessi
ty
f
ormostcommer
cialbanks,ascompet
it
ioni
ncr
easesf
rom pr
ivat
ebanks.Thepr
ivat
e
bankswer
einaposi
ti
onf
rom t
hev
eryi
ncept
iont
olev
erageI
Tappl
i
cat
ionsi
nthei
rdai
l
y
oper
ati
onsadopt
ingnewt
echnol
ogyf
ort
hedel
i
ver
yofv
ari
ousf
inanci
alpr
oduct
s.I
CICI
Bankt
hesecondl
argestbanki
nthecount
ryaf
terSBIi
nter
msofassetsi
zei
sthef
ir
st
I
ndi
anbankt
oof
ferI
nter
netbanki
ng.I
CICIBanki
sahugesuccessi
nthef
inanci
al
sect
orandi
sIndi
a’
sfi
rstbankt
olaunchasi
teandt
henf
oll
owupwi
thI
nter
netbanki
ng
ser
vices.I
CICIBankki
ckedof
fonl
i
nebanki
ngwaybacki
n1996andahostofot
her
bankssoonf
oll
owedsui
t.Thebankhadl
aunchedt
heI
nter
netbanki
ngser
viceev
en
bef
oret
heRBIhadf
ormul
atedi
tsgui
del
i
nes.Si
ncei
twascompar
ati
vel
yanewconcept
,
t
he r
egul
ati
ng aut
hor
it
ies wer
e ext
remel
yco-
oper
ati
ve wi
tht
he bank.Af
terI
CICI
,
Ci
ti
bank,
IndusI
ndBankandHDFCBankandTi
mesbank(
nowpar
tofHDFCBank)
,wer
e
t
heear
lyonest
oembr
acet
het
echnol
ogyi
n1999.HDFCBank’
svi
sionwasv
erycl
ear
,it
wasnotenamour
edbyt
heconceptofI
nter
netbanki
ngbutl
ookedati
tmor
easanadd-
onser
vicewhi
chi
tscust
omer
sshoul
dgr
adual
l
yadopt
.Inl
i
newi
tht
hisst
rat
egy
,ini
ti
all
y
t
heNetbanki
ngf
aci
l
itywaspr
ovi
dedi
nor
dert
omeett
hei
nfor
mat
ionr
equi
rement
sof
t
hecust
omer
sandgr
adual
l
yitv
ent
uredi
ntof
undt
ransf
ersandt
hir
dpar
tyt
ransf
ers
(
Glancy
,S.andPadmanabhan,C.
,2003)
.Buti
ncaseofpubl
i
csect
orbankst
hingsar
e
nott
hatr
osy
.Thi
srai
sest
hequest
ionast
owhyi
t’
sthepr
ivat
esect
or,whi
chhasbeen
t
aki
ngt
hei
nit
iat
ivewhi
l
ethepubl
i
csect
orkeepsonwat
chi
ngi
tsdepl
eti
ngmar
ketshar
e.
Thepubl
i
csect
or,whi
chcont
rol
sabout65%oft
hebanki
ngi
ndust
ry,i
scer
tai
nlyawar
e
oft
hei
mpl
i
cat
ions.Att
hecor
eoft
hepr
obl
em i
sthemodelonwhi
cht
hepubl
i
csect
or
banksar
ebased—t
heser
vicemodel
.Asnat
ional
i
zedbanks,t
heyhav
ecer
tai
nsoci
al
obl
i
gat
ions,whi
chr
equi
ret
hem t
opr
ovi
deser
vicest
hroughoutt
hecount
ryandi
twi
l
l
t
aket
hem t
imet
omat
uret
oadi
ff
erentmodel
.Mor
eov
er,br
anchesspr
eadacr
osst
he
ent
ir
ecount
ryandal
ackofnat
ionalbandwi
dthhav
ebecomeabi
gconst
rai
ntf
ort
heI
T
endeav
orsofpubl
i
csect
orbanks.Nev
ert
hel
ess,t
heyar
eont
het
echnol
ogyr
out
e,
t
hought
her
eisl
essv
isi
bil
i
tyaboutt
hat(
Var
ma,2011)
.Thesl
owgr
owt
hoft
echnol
ogy
i
nbanksi
snotonl
yduet
othel
ethar
gyofI
ndi
anpubl
i
csect
orbanks,
theav
erageI
ndi
an
cust
omeri
sal
sor
esponsi
blef
ort
his.Theav
eragecust
omerofpubl
i
csect
orbanki
s
comf
ort
abl
ewi
tht
het
radi
ti
onalbanki
ngsy
stem andi
snott
ookeenonadopt
ingan
el
ect
roni
cmodel
.Lackofski
l
lsi
nusi
nganATM,
andi
naccessi
bil
i
tyhav
ebeeni
dent
if
ied
asmaj
orcausesf
ort
hissl
ow upt
akebyt
hemaj
ori
tyofbanks.Theav
erageI
ndi
an
ci
ti
zeni
syett
ogetcomf
ort
abl
ewi
thi
mper
sonalmachi
nessuchasATMs(
Raj
,1996)
.
Theupt
akeofATM usagei
sfai
rl
ylow(
Mishr
a,2001)andi
sconcent
rat
edi
nur
banar
eas.
Per
sonalat
tent
ioni
sst
il
lrequi
redbef
oret
hecr
it
icalmassoft
hel
i
ter
atepopul
ati
oni
s
r
eached.Mul
ti
plebr
anchesspr
eadacr
osst
hecount
ryandl
ackofnat
ionalbandwi
dth
ar
emaj
orconst
rai
nts,
especi
all
yforpubl
i
csect
orbanks(
Var
ma,
2011)
.Ther
est
ri
cti
ons
i
mposedbyt
heI
BAst
il
lexi
stt
osomeext
ent
.TheI
BAst
ipul
atesacer
tai
ndeposi
tbase
andapar
ti
cul
arnumberofv
oucher
s,bef
oreabankcani
nst
allanATM (
Raj
,1996)
.But
mostPSUbankshav
ethemaj
ori
tyoft
hei
rcust
omerbasei
nthesmal
l
erci
ti
esort
owns
andev
eni
nremot
evi
l
lages.Ev
eni
nbi
ggerci
ti
es,al
argepr
opor
ti
onoft
hei
rcust
omer
s
ar
eei
therseni
orci
ti
zensoratl
easti
ntheagegr
oupoff
if
typl
uswhohav
eanat
ural
av
ersi
ont
owar
dsadopt
ingnew t
echnol
ogy
.Thi
sisnott
hecasewi
thpr
ivat
eorMNC
banks,
wher
ethecl
i
ent
elei
smost
lyur
ban-
basedf
all
i
ngi
nthe20-
40agegr
oupandwho
hav
eahi
gherexposur
etot
echnol
ogy
.Ev
ent
heI
DC sur
veyseemst
oconf
ir
mthi
s
pr
emi
se.Amongt
heel
i
teI
nter
netbanki
nguser
s,t
hati
s,t
hosecust
omer
swhobel
ongt
o
Soci
o-Economi
cCl
assA1(
SECA1)i
nthet
opf
iveci
ti
es,i
thasbeenf
oundt
hatpeopl
e
accesst
hei
raccountt
hrought
heI
nter
netonceev
eryweek.Si
mil
arl
yuser
svi
sitt
hei
r
ATM cent
reonanav
erageoft
wot
imesperweek.Thewor
kpl
acehappenst
obet
he
mostf
avour
edpl
acet
oaccessI
nter
netf
orbanki
ngpur
poses.Thehomecomesacl
ose
secondwhi
l
ecy
bercaf
ést
aket
het
hir
dpl
ace.ATM i
nthecl
osev
ici
nit
ytot
heof
fi
cei
s
t
hemostpr
efer
redpl
aceamonguser
sforbanki
ng.Theuser
s(24per
cent
)whoaccess
t
heATM neart
hei
rof
fi
cemost
lygodur
ingt
hef
ir
sthal
foft
heday
,bet
ween9AM t
o12
PM,butmostpr
efer
redt
imebyal
luser
s(41per
cent
)isbet
ween6-
9PM (
Raj
neeshDe
andPadmanabhan,C.
,2002)
.TheI
ndi
anpubl
i
csect
orbankswhi
chconst
it
uteabout
65% oft
hesect
or,ar
est
il
lpl
aguedbyuni
oni
ssues,i
ner
ti
aint
hel
owerr
anksanda
gener
alapat
hyt
owar
dst
echnol
ogi
cal
innov
ati
ons,
especi
all
ytheI
nter
net(
Var
ma,
2011)
.
For
eign bankshav
e a wi
derv
ari
etyofe-
banki
ng ser
viceswi
tht
hei
rexi
sti
ng hi
gh
t
echnol
ogyl
i
nkagesandi
nfr
ast
ruct
ure.Howev
er,t
henewl
yfor
medpr
ivat
ebanksseem
t
obepul
l
ingaheadoft
hef
orei
gnandpubl
i
csect
orbanks,especi
all
yint
hee-
banki
ng
sect
or.Tost
artwi
th,t
heydi
dnothav
ethei
ssueofl
egacysy
stemsandpr
ocesses
(
Var
ma2001)t
hatpl
aguedt
hepubl
i
csect
orbanksandt
her
efor
e,di
dnothav
eto
r
est
ruct
ure.Asheobser
ves,t
hepr
ivat
ebankshav
ehadt
hebenef
itofbei
ngi
nnov
ati
on
l
eader
s,suppor
tedbyt
echnol
ogy
.Thepr
ivat
ebankshav
eal
sobeenacqui
ri
ngt
heol
der
andweakerbanks(
Busi
nessLi
ne,2000)
,thusgr
owi
ngi
nsi
ze.I
naddi
ti
ont
othi
s,t
he
newgener
ati
onofI
Tpr
ofessi
onal
sdemandsi
nnov
ati
veser
vices,whi
l
esuppor
ti
ngt
hei
r
gr
owt
h.Howev
er,t
hePubl
i
cbankshav
etakent
ocomput
eri
sat
ioni
nther
ightear
nest
.
Todaymostoft
hem hav
ethei
rowni
nhouseI
Tdepar
tmentwhi
chnotonl
ytakescar
eof
depl
oymentand i
mpl
ement
ati
on i
ssues buti
s al
so i
nto dev
elopi
ng speci
fi
c and
cust
omi
sed appl
i
cat
ions f
ort
he bank.Fr
om SBIt
o Canar
a Bank,ev
ery bank i
s
expandi
ngi
tsI
Tdi
vi
sionandmaki
nghugei
nvest
ment
stodev
elopt
hedi
vi
sionasa
pr
ofi
tcent
rebyi
tsel
f(Jay
adev
,2001)
.TheI
Tdepar
tment
,whi
chwasear
li
erpr
obabl
y
r
est
ri
ctedt
opr
ocur
ingst
andar
dhar
dwar
eandsof
twar
eandmai
ntai
nconnect
ivi
ty,i
s
now pl
ayi
ngani
mpor
tantr
olei
nst
rat
egi
cdeci
sionsoft
hebusi
ness,andt
heout
lay
t
owar
dsI
Tisconsi
der
edasast
rat
egi
cinv
est
ment
.Av
ail
abi
l
ityofaccesst
otheI
nter
net
i
sanessent
ialpr
erequi
sit
efort
headopt
ionofI
nter
netbanki
ng.Themor
ewi
despr
ead
t
heaccesst
ocomput
ersandt
he
I
nter
net
,thegr
eat
ert
hepossi
bil
i
tyofuseofI
nter
netbanki
ng.O’
Connel
li
dent
if
iedl
ackof
accesst
ocomput
ersasoneoft
hepossi
bler
easonsf
ort
hesl
owadopt
ionofI
nter
net
Banki
ng(
O’Connel
l
,1996)
.Cur
rentst
ati
sti
csshowt
hatl
esst
han10percentofI
ndi
an
banki
ngcust
omer
suset
heNetf
ort
hei
rbanki
ngneeds.Theser
vicescoul
drangef
rom
checki
ngbal
ancehi
stor
yandr
equest
sforchequebookst
osl
i
ght
lyadv
ancedi
nter
act
ive
ser
vicessuchaspay
ingut
il
it
ybi
l
lsand,att
hehi
ghestl
evel
,execut
ingt
ransact
ionsand
t
ransf
err
ingf
unds(
Pray
agetal
.,2004)
.Mor
eov
er,ov
eral
lfort
hebanki
ngi
ndust
ry,t
he
cor
rel
ati
onbet
weenf
inanci
alpr
oduct
ivi
tyandt
heTechnol
ogyi
nduct
ioni
slow and
negat
ive.Thest
udyshowst
hatt
heef
fectofot
herf
act
orsi
smor
ethant
heef
fectof
Technol
ogyonf
inanci
alpr
oduct
ivi
ty.Thesef
act
orsmaybel
i
ber
ali
zat
ionofi
nter
est
r
ates,manager
ialef
fect
iveness,r
iskmanagement
,int
ernalandext
ernalpol
i
ciesoft
he
banksandsoon.Andi
thasbeenf
oundt
hatt
heef
fectoft
echnol
ogyonf
inanci
al
pr
oduct
ivi
tyofbanksi
snegat
ive,t
houghnotmuch(
Shar
ma,2012)
.Whencompar
edt
o
ot
herdev
elopedcount
ri
es,I
ndi
aisst
il
lint
heear
lyst
agesofI
nter
netbanki
nggr
owt
h
anddev
elopment
.Whi
l
eiti
spl
aguedbyi
nfr
ast
ruct
urepr
obl
ems,
slowupt
akeofI
nter
net
accessandPCs,poort
elecommuni
cat
ionnet
wor
kpol
i
ciesandsl
ow pacedr
egul
ator
y
i
nit
iat
ives.Ther
eisanest
imat
ed2mi
l
li
onPCsf
orapopul
ati
oncl
oset
o1bi
l
li
onandl
ow
t
elephonepenet
rat
ionof19.
1mi
l
li
on(
Gupt
aandSt
orey
,1999)
.Thi
siscompoundedby
a poort
elecommuni
cat
ions net
wor
k,l
ong del
aysi
n est
abl
i
shi
ng connect
ions,and
ext
endedpowercut
s.Oneoft
her
easonswhyI
ndi
anbanksar
elaggi
ngbehi
ndt
hei
r
count
erpar
tsi
nthe westcan be l
aid att
he dooroft
he gov
ernment
,si
nce t
he
i
nfr
ast
ruct
ureneededt
ospeedt
hepr
ocessr
emai
nsl
acki
ng(
Raj
,1996)
.Ther
api
dly
gr
owi
ng sof
twar
eindust
ryi
nIndi
a and ev
er i
ncr
easi
ng demand f
rom t
he I
T
pr
ofessi
onal
shav
ebeenpr
omot
ingandsuppor
ti
ngt
heonl
i
nebanki
ngconcept
.The
f
ormer
ly‘
i
nfor
mat
ionpoor
’nat
ioni
sbecomi
nga‘
hi
gh-
techi
ntel
l
ect
ualcent
re’enabl
i
ng
bankst
ocapi
tal
i
seont
hebr
ainpowerav
ail
abl
eint
hecount
ry.ForI
Tenabl
edser
vices,
t
hecompet
it
iveadv
ant
agei
sev
enhi
gher
.NASSCOM i
nacompar
isonofsev
eralf
act
ors
suchaswor
kfor
ce,mar
ketaccess,i
nfr
ast
ruct
ure,and costacr
osst
heAsi
aPaci
fi
c
r
egi
on,hasout
li
nedt
hatonav
eraget
hebestl
ocat
ioni
sIndi
a.Banki
ngi
nthecount
ryi
s
wi
tnessi
ngaseachangeast
hesect
orseeksnew appl
i
cat
ionswi
tht
hedemandf
rom
andf
aci
l
iti
espr
ovi
dedbyt
hegr
owi
ngi
nfo-
techpr
ofessi
onalsect
or(
Var
ma,2011)
.The
I
ndi
an banki
ng sect
orhas undoubt
edl
y been ear
ly adopt
eroft
echnol
ogy
.Fr
om
comput
eri
sat
iont
onet
wor
kingt
oATMsandnowE-
banki
ng,bankshav
emov
edupt
he
v
aluechai
n.Today
,mostoft
hebanksar
edependentoncomput
ersandI
Tforev
en
basi
cfunct
ions(
Jay
adev
,2001)
.Thus,
ent
ryofI
Tenabl
ednewgener
ati
onpr
ivat
ebanks
hasr
esul
tedi
ntoamaj
orshi
fti
ntheway
sofbanki
ngbusi
nessi
nIndi
a.Thegr
owi
ng
compet
it
ionandgr
owi
ngexpect
ati
onshav
eledt
oincr
easedawar
enessamongstbanks
andcust
omer
sont
her
oleandi
mpor
tanceoft
echnol
ogyi
nbanki
ng.Thef
utur
ehol
ds
wi
dev
ist
asi
nter
msofwhatt
echnol
ogycando.Thear
ri
valofpr
ivat
ebankswi
tht
hei
rIT
enabl
edser
viceshav
epushedI
ndi
anPubl
i
cSect
orBanksal
sot
ofol
l
owsui
tbygoi
ngi
n
f
ort
hel
atestt
echnol
ogi
essoast
omeett
het
hreatofcompet
it
ionandr
etai
nthei
r
cust
omerbase.

Regul
ator
yIssuesandPr
obl
ems
Ther
api
dgr
owt
hoft
heI
nter
nethasi
ntr
oducedacompl
etel
ynew l
evelofsecur
it
y
r
elat
edpr
obl
ems.Fr
om t
hel
egalper
spect
ivet
hechal
l
engesofI
nter
netbanki
ngi
nIndi
a
i
ncl
udei
nfor
mat
ionsecur
it
yandr
egul
ator
ycompl
i
ance(
Ryder
,2000)
.Cur
rent
lybanks
ar
ecar
ryi
ngamor
ethanr
easonabl
eshar
eofr
isksandt
heser
isksar
etr
ansf
err
edt
othe
cust
omer
s.I
nter
netbanki
ngi
nIndi
aiscur
rent
lycar
ri
edouti
ngoodf
ait
hbutwi
thahi
gh
l
evelofi
gnor
ance.Ther
eisneedf
oraCy
berLawCompl
i
anceAudi
tinal
lbanksaswel
l
aspr
opergui
dancesot
hatcust
omer
s’i
nter
est
sar
etakencar
eof(
Jay
adev
,2001)
.The
pr
obl
em i
ne-
banki
ngi
sthatt
heI
nter
neti
snotar
egul
atedt
echnol
ogyandi
tisr
eadi
l
y
accessi
blet
omi
l
li
onsofpeopl
e,andt
her
ewi
l
lal
way
sbepeopl
ewhocanmani
pul
atei
t
t
omakei
l
li
ci
tgai
ns.Wi
tht
heev
olut
ionofdel
i
ver
ychannel
srel
ati
ngt
ofundbased
ser
vicessuchas,
Elect
roni
cFundsTr
ansf
er(
EFT)andEl
ect
roni
cCl
ear
ingSy
stem (
ECS)
,
t
hesecur
it
ymeasur
esneedt
obedev
elopedadequat
ely
.EFTi
sthesaf
estandf
ast
est
wayt
otr
ansf
ermoney
,regar
dlessofbank,br
anch,orci
ty.ECSenabl
esdeposi
tof
di
vi
dendsi
ntot
heshar
ehol
der
’saccount
,ift
hebankaccounti
sgi
ven.I
nSept
ember
2000,t
he I
nst
it
ute ofDev
elopmentand Resear
ch i
n Banki
ng Technol
ogy(
IDBRT)
i
mpl
ement
edi
tsl
ong-
awai
tedEFTandr
eal
-t
imegr
ossset
tl
ement(
RTGS)sy
stem,wi
th
ser
vicesav
ail
abl
ethr
oughoutI
ndi
a(Mahabhar
at,
2000)
.Var
iousot
herconcept
ssuchas
di
git
alsi
gnat
ures,cer
ti
fi
cat
ion,st
orageofi
nfor
mat
ioni
nasecur
eandt
amper
-pr
oof
mannerassumesi
gni
fi
canceandwi
l
lbepar
toft
hepr
act
icesandpr
ocedur
esi
nthe
day
to-
dayf
unct
ioni
ngofbanksi
nthef
utur
e.Wi
thi
ncr
easeddependenceont
echnol
ogy
,
t
heneedf
orI
nfor
mat
ionSy
stemsAudi
tal
soassumessi
gni
fi
cancecoupl
edwi
tht
he
av
ail
abi
l
ityofski
l
ledper
sonnelnotonl
yfori
mpl
ement
ingt
echnol
ogybutal
somanni
ng
sucht
echnol
ogybasedact
ivi
ti
esandconduct
ingaudi
tther
eof
.Fr
om al
egal
per
spect
ive,
secur
it
ypr
ocedur
eadopt
edbybanksf
oraut
hent
icat
inguser
sneedst
ober
ecogni
zedby
l
aw asasubst
it
utef
orsi
gnat
ure.I
nthi
sregar
d,RBIi
saboutt
obecomet
hef
ir
st
Gov
ernmentowneddi
git
alsi
gnat
ureCer
ti
fyi
ngAut
hor
it
y(CA)i
nIndi
a.Themov
eis
expect
edt
oini
ti
atet
heel
ect
roni
ctr
ansact
ionpr
ocessi
nthebanki
ngsect
orandwi
l
l
hav
efar
-r
eachi
ng r
esul
tsi
nter
ms ofcostand speed oft
ransact
ions bet
ween
gov
ernment
-ownedbanks(
RBI
,2013)
.Wi
thi
nst
it
uti
onsbecomi
ngmor
eandmor
e
gl
obaland compl
ex,t
he nat
ure ofr
isks i
nthe i
nter
nat
ionalf
inanci
alsy
stem has
changed.Thought
heI
ndi
anGov
ernmenthasannouncedcy
berl
aws,
mostcor
por
atear
e
notcl
earaboutt
hem,
andf
eelt
hatt
heyar
einsuf
fi
cientf
ort
hegr
owt
hofE-
banki
ngand
e-
commer
ce.Lackofconsumerpr
otect
ionl
awsi
sanot
heri
ssuet
hatneedst
obe
t
ackl
ed,
ifpeopl
ehav
etof
eelmor
ecomf
ort
abl
eaboutt
ransact
ingonl
i
ne(
Vij
,2000)
.To
f
aci
l
itat
ethe e-
commer
ce and el
ect
roni
c gov
ernance (
Stat
ementofObj
ect
s and
Reasons,
Inf
ormat
ionTechnol
ogyAct
,2000)
,theI
nfor
mat
ionTechnol
ogyAct2000was
enact
edwi
thsui
tabl
eamendment
sinI
ndi
anPenal
Code,
Indi
anEv
idenceAct
,RBIAct
1934 and Banker
’s Books Ev
idence Act1891.The enact
mentoft
he I
nfor
mat
ion
Technol
ogyAct2000pr
ovi
desf
orl
egalr
ecogni
ti
onf
ort
ransact
ionscar
ri
edoutby
means of El
ect
roni
c Dat
a I
nter
change (
EDI
) and ot
her means of el
ect
roni
c
communi
cat
ionwhi
chi
nvol
vet
heuseofal
ter
nat
ivest
othemet
hodsofcommuni
cat
ion
and st
orage ofi
nfor
mat
ion,t
ofaci
l
itat
e el
ect
roni
cfi
l
li
ng ofdocument
s wi
tht
he
gov
ernmentagenci
esandf
ormat
ter
sconnect
edt
her
ewi
thori
nci
dent
alt
her
eto.The
Actgov
erns t
he l
aw r
elat
ing t
o el
ect
roni
c cont
ract
s,el
ect
roni
crecor
ds,di
git
al
si
gnat
urescer
ti
fi
cat
ionaut
hor
it
iesandt
heuseofel
ect
roni
crecor
dsandsi
gnat
uresi
n
Gov
ernmentr
ecor
ds.I
tal
so r
egul
ates t
he act
ivi
ti
es ofnet
wor
k ser
vice pr
ovi
der
s
(
Shar
ma,
2005)

METHODOLOGY&DATACOLLECTI
ON
Fort
her
esear
ch,t
hemet
hodol
ogywhi
chIf
oll
owedwast
hesur
veymet
hod.Icol
l
ect
ed
bot
hpr
imar
yaswel
lassecondar
ydat
aformyr
esear
chasi
twoul
dhel
pmet
odoa
det
ail
edst
udyononl
i
nebanki
ngi
nIndi
a.Thesecondar
ydat
awascol
l
ect
edf
rom
v
ari
ousr
esear
chj
our
nal
sandar
ti
clesaswel
lasIgat
her
edsomei
nfor
mat
ionf
ormt
he
i
nter
nett
oo.
The pr
imar
y dat
a was col
l
ect
ed t
hrough a sur
vey met
hod (
quest
ionnai
re)
.If
ir
st
conduct
edapi
l
otst
udyi
nwhi
chIhadgi
ven20peopl
ethequest
ionnai
ref
ormst
ofi
l
lso
t
hatIcanmakeapr
operf
ormt
oci
rcul
ateamongt
hepeopl
etoknow whatdot
hey
act
ual
l
ythi
nkaboutonl
i
nebanki
ngi
nIndi
a&dot
heypr
eferonl
i
nebanki
ng.
Af
tert
hepi
l
otst
udyImadeal
lther
equi
redchangeswhi
chIwant
ed&madeagoogl
e
f
orm.Thegoogl
efor
m woul
dbeeasi
l
yaccessi
blet
hroughal
i
nksoIci
rcul
atedi
ton
what
sapp&i
nst
agr
am &t
oldmyf
ri
endsandcol
l
eaguest
ofi
l
lthef
orm &shar
eitwi
th
t
hei
rfr
iends&col
l
eaguest
oo.Igotabout120r
espondent
swhi
chhel
pedmeal
oti
n
doi
ngmyr
esear
chononl
i
nebanki
ng.Thus,t
hei
rresponsesf
urt
herhel
pedmet
odoa
det
ail
edr
esear
chononl
i
nebanki
ngi
nIndi
a.

DATAANALYSI
S
Thedat
acol
l
ect
edf
ort
hispr
ojectwast
hroughpr
imar
yaswel
lassecondar
ydat
a.The
pr
imar
ydat
afort
hest
udywascol
l
ect
edt
hrought
het
echni
queofsur
veymet
hod
(
quest
ionnai
re)
.The secondar
y dat
a col
l
ect
ed was t
hrough t
he i
nter
net
,jour
nal
s,
r
esear
chpaper
s,et
c.Ihadf
ir
stconduct
edabankerst
udyt
otestmyquest
ionnai
reso
t
hatIcoul
drect
if
yiti
fanymi
stakeswer
ether
eini
t.Ihadmadear
oughquest
ionnai
re&
gi
ven t
hef
orm t
o about20 peopl
etof
il
lso t
hatIcan seet
hrough whet
hert
he
quest
ionnai
rewhi
chIwantt
oci
rcul
atewoul
dbepr
operornot
.Af
tert
hebankerst
udyI
hadt
omakesomemi
norchangesi
nmyquest
ionnai
re.Af
termaki
ngt
henecessar
y
changesIf
urt
herci
rcul
atedmyquest
ionnai
ref
orm onwhat
sapp&i
nst
agr
am &t
oldmy
f
ri
ends&f
ami
l
ytof
il
l&passi
tont
othei
rfr
iends&col
l
eaguesast
hequest
ionscoul
d
beanswer
edbyev
ery
onei
rr
espect
iveofwhet
hert
heyuseonl
i
nebanki
ngornot
.

Al
otofpeopl
efi
l
ledt
hef
ormswhi
chwer
esentt
othem & t
husIgotabout117
r
espondent
swhi
chwasagr
eathel
pformyr
esear
ch.Peopl
efr
om t
heageof18t
o60
wer
efi
ttoanswert
hequest
ionsi
nthesur
veyf
orm.Outof117r
espondent
s,about
34.
19%wer
efemal
es&65.
81%wer
emal
es.Thepeopl
ewer
ever
yki
ndandanswer
ed
ev
eryquest
ioni
nthegoogl
efor
m.Ther
ewer
eal
otofpeopl
ewhoagr
eedt
hatt
heuse
onl
i
nebanki
ngv
eryf
requent
ly.Al
otofy
oungpeopl
erangi
ngbet
ween20-
35y
ear
sof
agegr
eat
lybel
i
evedt
hatonl
i
nebanki
ngi
sver
yusef
ult
othem.Fi
gur
e1.
1showsust
he
numberofmal
es&f
emal
eswhohav
efi
l
ledt
hef
orm.Fi
gur
e1.
2showst
hedi
ff
erentage
ofpeopl
ewhohav
efi
l
ledt
hef
orm.

GENDER

MALE
FEMALE

FI
GURE1.
1

70

60

50

40

30

20

10

0
20bel
ow 20-
35 35-
60 60abov
e
FI
GURE1.
2
Thef
ir
stquest
ionIaskedi
nthegoogl
efor
m wasI
sonl
i
nebanki
ngt
rust
wor
thy
?Near
ly86.
32%
peopl
esai
dyes&13.
68%sai
dthatt
heydonott
rusti
t(f
ig1.
3)

90.
00%

80.
00%

70.
00%

60.
00%

50.
00%
Tr
ust
wor
thy
40.
00%

30.
00%

20.
00%

10.
00%

0.
00%
Yes No
Fi
gur
e1.
3

Mysecondquest
iont
othem waswhet
hert
heypr
eferonl
i
nebanki
ng?About90.
60%
peopl
esai
dthatt
heypr
eferonl
i
nebanki
ngwher
easabout9.
40%peopl
esai
dthatt
hey
donotpr
eferi
tin(
fi
g1.
4)
Fi
gur
e1.
4
100.
00%
90.
00%
80.
00%
70.
00%
60.
00%
50.
00%
40.
00%
30.
00%
20.
00%
10.
00%
0.
00%
Yes No

I
nthe(
fi
g1.
5)y
oucanseet
hatabout50.
43%peopl
eagr
eedt
hate-
banki
ngcr
eat
esa
st
rongr
elat
ionshi
pbet
weent
hebanks&i
tscust
omer
s&6.
84%peopl
edi
sagr
eedt
oit
wher
eas42.
74%peopl
ewer
enotsur
eabouti
t.
 Yes
No
May
be

Fi
gur
e1.
5

Ihadevenaskedthem abouttheirreasonstochooseonl inebanki

ng.Forthi
spart
icular
quest
iononecouldchooseasmanyopt i
onsast heythinkwouldbeappli
cabletothem.
Nearl
yabout43.59%saidthatonlinebankingsav esti
me, 7.
69%saiditsbenefi
ci
alfor
tr
ansfer
ri
ngfunds,35.
90%sai ditcanbeeasi lyaccessi
ble,6.
84%saidthatiti
shelpfulin
payi
ngbill
s&2.56%saidthatithelpsust oviewt hedetai
lsofourbankaccount(f
ig.1.6)
Fi
gur
e1.
6
%
50
45
40
35
30
25
20
15
10
5
0
EasyaccessTr
ansf
erf
und Paybi
l
ls Viewdetai
l
sof Sav
eti
me Noneoft
his
y
ouraccount

Ihadev
enaskedt
hem whet
here-
banki
ngoronl
i
nebanki
ngi
sbenef
ici
alt
othem (
fi
g1.
7).
About93.
16%oft
her
espondent
ssai
dthati
tsbenef
ici
alt
othem wher
eas6.
84%peopl
e
sai
dthati
tisnotbenef
ici
al.Oneoft
hequest
ionsaskedt
othem waswhet
herdi
sagr
eed
was17.
09%,
52.
14%peopl
esai
dtheyar
enotsur
e&30.
77%peopl
esai
dthati
tinv
olv
ed
r
isk.
 BENEFI
TS

Yes
No

Fi
gur
e1.
7

Ri
skFact
or

Yes
No
May
be

Fi
gur
e1.
8

Iev
enaskedt
hem whet
hert
heyt
hinkonl
i
nebanki
ngi
seasi
ert
hanbr
anchbanki
ng.I
n
t
hef
igur
e1.
9wecanseet
hatabout5.
13%peopl
esai
dthati
twasn’
teasyt
hanbr
anch
banki
ngwher
easal
argenumberofpeopl
ei.
e.about94.
87% peopl
esai
dthati
twas
easi
ert
hanbr
anchbanki
ng.
 Br
anchBanki
ng

Yes
No

Fi
gur
e1.
9

Howf
requent
lydoy
ouusee-
banki
ngser
viceswasoneoft
hequest
ionsaskedt
othepeopl
e.I
n
t
hef
igur
e2.
0wecanseet
hatabout32.
48%peopl
esai
dthatt
heyusei
tonceaweek,
52.
14%sai
dthatt
heyusei
tonceamont
hwher
eas15.
38%sai
dthatt
heyusei
tonceay
ear
.

Fi
gur
e2.
0
60.
00%

50.
00%

40.
00%

30.
00%

20.
00%

10.
00%

0.
00%
Week Mont
h Year

CONCLUSI
ON

Fi
nal
l
ythest
udyconcl
udest
hatE-
banki
ngi
stheneedoft
hehour
.Thei
mpl
ement
ati
on
ofE-
banki
ngi
nIndi
abutatt
hesamet
imei
thasabr
ightf
utur
einI
ndi
a.I
tisagol
den
pat
hforbanki
ngsect
ori
nIndi
atomaxi
mizei
tspr
ofi
ts&al
soi
tscust
omerbase.That
’s
whyE-
banki
ngcannev
erbenegl
ect
ed.Mor
eov
ert
her
ecommendat
ionspr
ovi
dedi
nthi
s
r
esear
char
eusef
ulf
ort
hebanks&al
sof
ort
hecust
omer
sfori
tsbet
terser
vice&
sat
isf
act
ionr
espect
ivel
y.Thus,onl
ythosebankswi
l
lsur
viv
eint
hef
utur
ewhi
chwi
l
l
managet
hechangesaspert
echnol
ogi
caldev
elopment
s& cust
omerr
equi
rement
s
becausef
utur
eoft
hebanksul
ti
mat
elyst
aysi
nthehandsofcust
omer
s.Theyshoul
dbe
sat
isf
iedatanycost
.
Banksar
esi
ncer
eef
for
tst
opopul
ari
zet
hee-
banki
ngser
vices&pr
oduct
s.Younger
gener
ati
oni
sbegi
nni
ngt
oseet
heconv
eni
ence&benef
it
sofe-
banki
ng.I
nyear
sto
come,
onl
i
nebanki
ngwi
l
lnotonl
ybet
heaccept
abl
emodeofbanki
ngbuti
twi
l
lal
sobe
apr
efer
redmodeofbanki
ng.
E-
banks shoul
d cr
eat
e awar
eness among peopl
e aboute-
banki
ng pr
oduct
s and
ser
vices.Cust
omer
sshoul
dbemadel
i
ter
ateaboutt
heuseofe-
banki
ngpr
oduct
sand
ser
vices.Speci
alar
rangement
sshoul
dbemadebybankst
oensur
eful
lsecur
it
yof
cust
omerf
unds.Techni
caldef
aul
tsshoul
dbeav
oidedbyempl
oyi
ngwel
ltr
ainedand
exper
ttechni
ci
ansi
nfi
eldofcomput
ers,
sot
hatl
ossofdat
acanbeav
oided.Empl
oyees
ofbanksshoul
dbegi
venspeci
alt
echni
calt
rai
ningf
ort
heuseofe-
banki
ngsot
hatt
hey
canf
urt
herencour
agecust
omer
stouset
hesame.Semi
nar
sandwor
kshopsshoul
dbe
or
gani
sedont
heheal
thyusageofe-
banki
ngespeci
all
yfort
hosewhoar
eATM or
comput
eri
l
li
ter
ate.E-
banki
ngser
vicesshoul
dbecust
omi
sedonbasi
sofage,gender
,
occupat
ion et
c so t
hatneeds and r
equi
rement
s ofpeopl
e ar
e metaccor
dingl
y.
Gov
ernmentshoul
dmakehugei
nvest
ment
sforbui
l
dingt
hei
nfr
ast
ruct
ure.
E-
banki
ngi
nIndi
aisi
nanascentst
ageandpeopl
ear
est
il
lwar
yoft
heconceptandi
ts
usage-
thebi
ggesti
nhi
bit
orsbei
ngsecur
it
yanduseri
dent
if
icat
ion/
aut
hent
icat
ion.When
compar
edt
oot
herdev
elopedcount
ri
es,I
ndi
aisst
il
lint
heear
lyst
agesofI
nter
net
banki
nggr
owt
handdev
elopment
.Publ
i
cbanksar
epl
aguedbyi
nfr
ast
ruct
urepr
obl
ems,
sl
owupt
akeofI
nter
netaccessandPCs,poort
elecommuni
cat
ionnet
wor
kpol
i
ciesand
sl
ow pacedr
egul
ator
yini
ti
ati
ves.E-
banki
ngi
nIndi
acannotbedescr
ibedi
nit
spr
esent
f
orm asuccessatal
l
.Notonl
ythi
spubl
i
csect
orbanksar
ecr
ippl
edwi
thuni
oni
ssues,
i
ner
ti
aint
hel
owerr
anksandagener
alapat
hyt
owar
dst
echnol
ogi
cali
nnov
ati
ons,
especi
all
ytheI
nter
net
.InI
ndi
a,v
eryf
ew bankshav
ebeensuccessf
uli
ndev
elopi
ng
ef
fect
ivest
rat
egi
esf
orf
ull
yexpl
oit
ingt
heoppor
tuni
ti
esof
fer
edbyt
heI
nter
net
.For
publ
i
cbankst
odef
inewhatni
chemar
ket
stoser
veanddeci
dewhatpr
oduct
s/ser
vices
t
oof
fer
,ther
eisaneedf
oracl
earandconci
see-
commer
cest
rat
egy
.Thet
echnol
ogy
concept
sar
egai
ningaccept
ance.Fi
nal
l
y,t
hepubl
i
csect
orbanksshoul
dadoptt
his
t
echnol
ogyandr
eapt
hebenef
it
sofagl
obalbanki
ngenv
ironment
.Thoset
aki
ngar
igi
d
appr
oachi
nthi
sregar
dcoul
dbecomenon-
funct
ional
.

FUTURESCOPE
Al
lthemaj
orBanksi
nIndi
aar
etr
yingt
opr
omot
eonl
i
net
ransact
ionsi
nthecount
ry
i
ncl
udi
ngt
her
uralpar
tsoft
hecount
ry.Bei
ngahugef
anofe-
Gov
ernance,
Indi
anPr
ime
Mi
nist
er–Mr
.Nar
endr
aModihasi
nit
iat
edapr
ojectest
imat
edatI
NR20,
000cr
orest
o
bui
l
dabr
oadbandhi
ghwayconnect
ing2.
5lakhpanchay
atsacr
osst
hecount
ry.Once
f
ull
ysetup,t
hisi
nfr
ast
ruct
urewoul
dhel
pther
uralI
ndi
aconnectwi
tht
heur
banI
ndi
a
whi
l
e boost
ing t
he r
ate ofonl
i
ne t
ransact
ions i
nthe count
ry.Despi
tet
he r
osy
pr
edi
cti
onsandi
ncr
easedcor
por
ateact
ivi
ty,t
heI
ndi
anI
nter
netbanki
ngsy
stem i
s
f
aci
ngmanyhur
dles.Thepr
obl
emsi
ncl
udeoper
ati
onalr
isks,secur
it
yri
sks,sy
stem
ar
chi
tect
urer
isks,r
eput
ati
onalr
isksandl
egalr
isks.Apar
tfr
om t
hesecur
it
yissues,
t
her
ear
eahostofot
herpr
obl
emsl
i
ke:•PC userbasei
nIndi
aisext
remel
ylow
compar
ed t
o gl
obalst
andar
ds.•The I
nter
netuserbase i
sli
mit
ed.•Lack of
i
nfr
ast
ruct
uret
oadv
ancedt
echnol
ogybasedbanki
ngser
vices.•Theabsenceofa
r
egul
ator
yfr
amewor
kforI
nter
netbanki
ngt
ransact
ionsi
nIndi
a.•Themi
ndsetoft
he
I
ndi
anconsumer
,whopr
efer
sper
sonali
nter
act
ionsandi
snotv
erycomf
ort
abl
e,doi
ng
t
ransact
ionst
hrought
heI
nter
net
.Howev
er,banksar
ewor
kingt
owar
dsaddr
essi
ng
t
hesepr
obl
ems.Thesecur
it
yissuescanbet
ackl
edbyhav
ingt
hebank'
ssy
stems
t
echnol
ogi
cal
l
yequi
ppedt
oev
adeoper
ati
onalandsecur
it
yri
sks.Reput
ati
onalr
iskscan
bepr
event
edbyt
est
ingoft
hesy
stem bef
orei
mpl
ement
ati
on,dev
elopi
ngcont
ingency
pl
ans(
tohandl
esy
stem di
srupt
ions,
syst
em hacker
s,secur
it
ylapsesandv
irusat
tacks)
andcr
eat
ingback-
upf
aci
l
iti
es.Legalandcr
oss-
bor
derr
iskscanbeav
oidedt
hrough
pr
opercust
omeri
dent
if
icat
ion dev
ices,i
nfor
mat
ion scr
eeni
ng t
echni
ques,per
iodi
c
r
evi
ewsoncompl
i
ancewi
thv
ari
ousl
aws,andgai
ningknowl
edgeofv
ari
ousnat
ional
l
aws (
appl
i
cabl
e)and gui
de t
he cust
omer
sthr
ough t
hei
rcr
oss-
bor
derdeal
i
ngs.
Compar
edt
obanksabr
oad,
Indi
anbanksof
fer
ingonl
i
neser
vicesst
il
lhav
eal
ongwayt
o
go.Foronl
i
nebanki
ngt
oreachacr
it
icalmass,t
her
ehast
obesuf
fi
cientnumberof
user
sandt
hesuf
fi
cienti
nfr
ast
ruct
urei
npl
ace.The‘
I
nfi
nit
y’pr
oductofI
CICIBankLt
d.
get
sonl
yabout30,
000hi
tspermont
h,wi
thar
ound3,
000t
ransact
ionst
aki
ngpl
aceon
t
heNetpermont
hthr
ough t
hisser
vice.Though v
ari
oussecur
it
yopt
ionsl
i
kel
i
ne
encr
ypt
ion,br
anchconnect
ionencr
ypt
ion,f
ir
ewal
l
s,di
git
alcer
ti
fi
cat
es,aut
omat
icsi
gn-
of
fs,r
andom pop-
upsanddi
sast
err
ecov
erysi
tesar
einpl
aceorar
ebei
ngl
ookedat
,
t
her
eisasy
etnoCer
ti
fi
cat
ionAut
hor
it
yinI
ndi
aof
fer
ingPubl
i
cKeyI
nfr
ast
ruct
urewhi
ch
i
sabsol
utel
ynecessar
yforonl
i
nebanki
ng.Thecust
omercanonl
ybeassur
edofa
secur
edcondui
tfori
tsonl
i
neact
ivi
ti
esi
fanaut
hor
it
ycer
ti
fyi
ngdi
git
alsi
gnat
uresi
sin
pl
ace.Thecommuni
cat
ionbandwi
dthav
ail
abl
etodayi
nIndi
aisal
sonotenought
omeet
t
heneedsofhi
ghpr
ior
it
yser
vicesl
i
keonl
i
nebanki
ngandt
radi
ng.Banksof
fer
ingonl
i
ne
f
aci
l
iti
esneedt
ohav
eanef
fect
ivedi
sast
err
ecov
erypl
anal
ongwi
thcompr
ehensi
ver
isk
managementmeasur
es.Banksof
fer
ingonl
i
nef
aci
l
iti
esal
soneedt
ocal
cul
atet
hei
r
downt
imel
osses,becauseev
enaf
ew mi
nut
esofdownt
imei
naweekcoul
dmean
subst
ant
iall
osses.Somebanksev
ent
odaydonothav
euni
nter
rupt
edpowersuppl
yuni
t
orsy
stemst
otakecar
eofpr
olongedpowerbr
eakdown.Pr
operencr
ypt
ionofdat
aand
ef
fect
iveuseofpasswor
dsar
eal
somat
ter
sthatl
eav
eal
ott
obedesi
red.Sy
stemsand
pr
ocesseshav
etobeputi
npl
acet
oensur
ethater
ror
sdonott
akepl
ace.
User
sofI
nter
netBanki
ngSer
vicesar
erequi
redt
ofi
l
lupt
heappl
i
cat
ionf
ormsonl
i
ne
andsendacopyoft
hesamebymai
lorf
axt
othebank.Acont
ract
ualagr
eementi
s
ent
eredi
ntobyt
hecust
omerwi
tht
hebankf
orusi
ngt
heI
nter
netbanki
ngser
vices.I
n
t
hisway
,per
sonaldat
aint
heappl
i
cat
ionsf
ormsi
sbei
nghel
dbyt
hebankpr
ovi
dingt
he
ser
vice.Thecont
ractdet
ail
sar
eof
tenone-
sided,wi
tht
hebankhav
ingt
heabsol
ute
di
scr
eti
ont
oamendorsuppl
ementanyoft
het
ermsatanyt
ime.Fort
heser
easons
domest
ic cust
omer
sforwhom ot
heraccess poi
nts such as ATMs,t
elebanki
ng,
per
sonalcont
act
,et
c.ar
eav
ail
abl
e,ar
eof
tenhesi
tantt
ouset
heI
nter
netbanki
ng
ser
vicesof
fer
edbyI
ndi
anbanks.I
nter
netBanki
ng,asanaddi
ti
onaldel
i
ver
ychannel
,
may
,ther
efor
e,be at
tract
ive /appeal
i
ng as a v
alue added ser
vice t
o domest
ic
cust
omer
s.Non-
resi
dentI
ndi
ansf
orwhom i
tisexpensi
veandt
imeconsumi
ngt
o
accesst
hei
rbankaccount
smai
ntai
nedi
nIndi
afi
ndnetbanki
ngv
eryconv
eni
entand
usef
ul.
TheI
nter
neti
sint
hepubl
i
cdomai
nwher
ebygeogr
aphi
cal
boundar
iesar
eel
i
minat
ed.
Cy
ber
cri
mesar
ether
efor
edi
ff
icul
ttobei
dent
if
iedandcont
rol
l
ed.I
nor
dert
opr
omot
e
I
nter
netbanki
ngser
vices,i
tisnecessar
ythatt
hepr
operl
egali
nfr
ast
ruct
urei
sinpl
ace.
Gov
ernmenthasi
ntr
oducedt
heI
nfor
mat
ionTechnol
ogyBi
l
l,whi
chhasal
readybeen
not
if
iedi
nOct
ober2000.Sect
ion72oft
heI
nfor
mat
ionTechnol
ogyAct
,2000cast
san
obl
i
gat
ion ofconf
ident
ial
i
ty agai
nstdi
scl
osur
e ofany el
ect
roni
crecor
d,r
egi
ster
,
cor
respondenceand i
nfor
mat
ion,exceptf
orcer
tai
npur
posesand v
iol
ati
onoft
his
pr
ovi
sioni
sacr
imi
nalof
fence.Not
if
icat
ionf
orappoi
ntmentofAut
hor
it
iest
ocer
ti
fy
di
git
alsi
gnat
ures,ensur
ingconf
ident
ial
i
tyofdat
a,i
sli
kel
ytobei
ssuedi
nthecomi
ng
mont
hs.Compr
ehensi
veenact
ment
sli
ket
heEl
ect
roni
cFundsTr
ansf
erActi
nU.
K.and
dat
apr
otect
ionr
ulesandr
egul
ati
onsi
nthedev
elopedcount
ri
esar
einpl
aceabr
oadt
o
pr
eventunaut
hor
ized access t
o dat
a,mal
afi
de orot
her
wise,and t
o pr
otectt
he
i
ndi
vi
dual
’
sri
ght
sofpr
ivacy
.Thel
egali
ssuesar
e,howev
er,
bei
ngdebat
edi
nourcount
ry
andi
tisexpect
edt
hatsomeheadwaywi
l
lbemadei
nthi
srespecti
nthenearf
utur
e.
Not
wit
hst
andi
ngt
heabov
edr
awbacks,cer
tai
ndev
elopment
staki
ngpl
aceatpr
esent
,
andexpect
edt
otakepl
acei
nthenearf
utur
e,woul
dcr
eat
eaconduci
veenv
ironmentf
or
onl
i
nebanki
ngt
ofl
our
ish.Forexampl
e,I
nter
netusagei
sexpect
edt
ogr
owwi
thcheaper
bandwi
dthcost
.TheDepar
tmentofTel
ecommuni
cat
ions(
DoT)i
smov
ingf
astt
omake
av
ail
abl
eaddi
ti
onalbandwi
dth,wi
tht
her
esul
tthatI
nter
netaccesswi
l
lbecomemuch
f
ast
eri
nthef
utur
e.Thi
sisexpect
edt
ogi
veaf
il
li
ptoI
nter
netbanki
ngi
nIndi
a.
Thepr
oposedset
ti
ngupofaCr
edi
tInf
ormat
ionBur
eauf
orcol
l
ect
ingandshar
ingcr
edi
t
i
nfor
mat
iononbor
rower
sofl
endi
ngi
nst
it
uti
onsonl
i
newoul
dgi
veaf
il
li
ptoel
ect
roni
c
banki
ng.Thedeadl
i
nesetbyt
heChi
efVi
gil
anceCommi
ssi
onerf
orcomput
eri
sat
ionof
notl
esst
han70per
centoft
hebank'
sbusi
nessbyendofJanuar
y2001hasal
sogi
vena
gr
eat
ert
hrustt
odev
elopmentofbanki
ngt
echnol
ogy
.Ther
ecommendat
ionsoft
he
Vasudev
anCommi
tt
eeonTechnol
ogi
calUpgr
adat
ionofBanksi
nIndi
ahav
eal
sobeen
ci
rcul
atedt
obanksf
ori
mpl
ement
ati
on.I
nthi
sbackgr
ound,banksar
emov
ingi
nfor
t
echnol
ogi
calupgr
adat
iononal
argescal
e.I
nter
netbanki
ngi
sexpect
edt
ogetaboost
f
rom suchdev
elopment
s.
Reser
veBankofI
ndi
ahast
akent
hei
nit
iat
ivef
orf
aci
l
itat
ingr
ealt
imef
undst
ransf
er
t
hrought
heRealTi
meGr
ossSet
tl
ement(
RTGS)Sy
stem.Undert
heRTGS sy
stem,
t
ransmi
ssi
on,pr
ocessi
ng and set
tl
ement
s oft
he i
nst
ruct
ions wi
l
lbe done on a
cont
inuousbasi
s.Gr
ossset
tl
ementi
nar
ealt
imemodeel
i
minat
escr
edi
tandl
i
qui
dit
y
r
isks.Anymemberoft
hesy
stem wi
l
lbeabl
etoaccessi
tthr
oughonl
yonespeci
fi
ed
gat
ewayi
nor
dert
oensur
eri
gor
ousaccesscont
rolmeasur
esatt
heuserl
evel
.The
sy
stem wi
l
lhav
evar
iousl
evel
sofsecur
it
y,v
iz.
,Accesssecur
it
y,128bi
tcr
ypt
ogr
aphy
,
f
ir
ewal
l
,cer
ti
fi
cat
ionet
c.Fur
ther
,Gener
icAr
chi
tect
ure,
bot
hdomest
icandcr
ossbor
der
,
ai
med at pr
ovi
ding i
nter
-connect
ivi
ty acr
oss banks has been accept
ed f
or
i
mpl
ement
ati
onbyRBI
.Fol
l
owi
ngar
efer
encemadet
hisy
ear
,int
heMonet
aryandCr
edi
t
Pol
i
cyst
atementoft
heGov
ernor
,bankshav
ebeenadv
isedt
odev
elopdomest
icgener
ic
model i
n t
hei
r comput
eri
zat
ion pl
ans t
o ensur
e seaml
ess i
ntegr
ati
on. The
abov
ement
ionedef
for
tswoul
denabl
eonl
i
nebanki
ngt
o becomemor
esecur
eand
ef
fi
cient
.
Wi
tht
hepr
ocessofdemat
eri
ali
sat
ionofshar
eshav
inggai
nedconsi
der
abl
egr
oundi
n
r
ecenty
ear
s,bankshav
eassumedt
her
oleofdeposi
tor
ypar
ti
cipant
s.I
naddi
ti
ont
o
cust
omer
s’deposi
taccount
s,t
heyal
somai
ntai
ndemataccount
soft
hei
rcl
i
ent
s.Onl
i
ne
t
radi
ngi
nequi
ti
esi
sbei
ngal
l
owedbySEBI
.Thi
sisanot
herar
eawhi
chbanksar
ekeen
t
ogeti
nto.HDFCBankLt
d.,hast
iedupwi
thabout25equi
tybr
oker
agesf
orenabl
i
ng
t
hir
dpar
tyt
ransf
eroff
undsandsecur
it
iest
hroughi
tsbusi
ness-
to-
busi
ness(
B2B)por
tal
,
‘
e-Net
’.Demataccounthol
der
swi
tht
hebankcanr
ecei
vesecur
it
iesdi
rect
lyf
rom t
he
br
oker
s’account
s.Thebankhasext
endedi
tswebi
nter
facet
othesof
twar
evendor
sof
Nat
ionalSt
ockExchanget
hrough a t
ie-
up wi
th NSE.
IT– t
hei
nfot
ech ar
m oft
he
exchange.Thebankf
unct
ionsast
hepay
mentbankf
orenabl
i
ngf
undst
ransf
erf
rom i
ts
cust
omer
s’accountt
obr
oker
s’account
s.Thebanki
sal
soset
ti
ngupanetbr
oki
ngar
m,
HDFCSecur
it
ies,f
orenabl
i
ngt
radi
ngi
nst
ockst
hrought
heweb.Thef
ocusoncapi
tal
mar
ketoper
ati
ons t
hrough t
he web i
s based on t
he bank’
s st
rat
egyon t
appi
ng
cust
omer
sint
erest
edi
ntr
adi
ngi
nequi
ti
est
hrought
heI
nter
net
.Int
ernetbanki
ngt
hus
pr
omi
sest
obecomeapopul
ardel
i
ver
ychannelnotonl
yforr
etai
lbanki
ngpr
oduct
sbut
al
sof
oronl
i
nesecur
it
iest
radi
ng.
Anupcomi
ngpay
mentgat
ewayi
sbei
ngdev
elopedbyI
CICIandGl
obalTel
eSy
stem,
whi
chwi
l
lenabl
ecust
omer
stot
ransf
erf
undst
obankswhi
char
epar
toft
hepr
oject
.
Tr
ansf
eroff
undscanbemadet
hroughcr
edi
t/
debi
t/smar
tcar
dsandcheques,
wit
hthe
cent
ralpay
mentswi
tchenabl
i
ngt
het
ransact
ions.Banksar
eshowi
ngi
nter
esti
nthi
s
new concept
,whi
chwi
l
lfaci
l
itat
eint
er-
bankf
undst
ransf
ersandot
here-
commer
ce
t
ransact
ions,t
hushi
ghl
i
ght
ing t
her
oleofbanksi
n e-
commer
ceasi
nter
medi
ari
es
bet
weenbuy
ersandsel
l
ersi
nthewhol
epay
mentpr
ocess.
WAP(
Wir
elessAppl
i
cat
ionPr
otocol
)tel
ephonyi
sthemer
gerofmobi
l
etel
ephonywi
th
t
heI
nter
net
.Itof
fer
stwo-
wayconnect
ivi
ty,unl
i
keMobi
l
eBanki
ngwher
ethecust
omer
 communi
cat
es t
o a mai
l
box answer
ing machi
ne.User
s may sur
fthei
raccount
s,
downl
oadi
temsandt
ransactawi
derr
angeofopt
ionst
hrought
hecel
l
phonescr
een.
WAP maypr
ovi
det
hei
nfr
ast
ruct
uref
orP2P (
per
sont
oper
son)orP2M (
per
sont
o
mer
chant
)pay
ment
s.I
twoul
dbei
dealf
ort
ransact
ionst
hatdonotneedanycash
backup,suchasonl
i
nei
nvest
ment
s.Useoft
hiscut
ti
ngedget
echnol
ogycoul
dwel
l
det
ermi
newhi
chbankobt
ainst
hel
argestmar
ketshar
einel
ect
roni
cbanki
ng.I
DBIBank
Lt
d.hasr
ecent
lyl
aunchedi
tsWAP-basedmobi
l
ephonebanki
ngser
vices(
off
eri
ng
f
aci
l
iti
essuchasbanki
ngenqui
ry,chequebookr
equest
,st
atement
srequest
,det
ail
sof
t
hebank’
spr
oduct
set
c).
Atpr
esent
,ther
ear
eonl
y2.
6phoneconnect
ionsper100I
ndi
ans,agai
nstt
hewor
ld
av
erageof15connect
ionsper100.Thebandwi
dthcapaci
tyav
ail
abl
eint
hecount
ryi
s
onl
y3.
2gi
gabi
tspersecond,whi
chi
sar
ound60% ofcur
rentdemand.Demandf
or
bandwi
dthi
sgr
owi
ngby350% ay
eari
nIndi
a.Wi
tht
hehel
poft
hel
atestt
echnol
ogy
,
I
ndi
an net
wor
kswi
l
lbe abl
eto handl
e 40 gi
gabi
tsofNett
raf
fi
cpersecond (
as
compar
edt
o10gi
gabi
tspersecondi
nMal
aysi
a).Compani
esl
i
keRel
i
ance,Bhar
ti
Tel
ecom andt
heTat
aGr
oupar
einv
est
ingbi
l
li
onsofr
upeest
obui
l
dfi
breopt
icl
i
nesand
t
elecom i
nfr
ast
ruct
uref
ordat
a,v
oiceandI
nter
nett
elephony
.Theonl
i
nepopul
ati
onhas
i
ncr
easedf
rom j
ust500,
000i
n1998t
o5mi
l
li
oni
n2000.By2015,
theonl
i
nepopul
ati
on
i
sexpect
edt
oreach70mi
l
li
on.I
Tser
vicesi
sa$1.
5bi
l
li
oni
ndust
ryi
nIndi
agr
owi
ngata
r
ateof55%perannum.Keepi
ngi
nvi
ewal
ltheabov
edev
elopment
s,I
nter
netbanki
ngi
s
l
i
kel
ytogr
ow atar
api
dpaceandmostbankswi
l
lent
eri
ntot
hisar
easoon.Rapi
d
st
ri
desar
eal
readybei
ngmadei
nbanki
ngt
echnol
ogyi
nIndi
aandI
nter
netbanki
ngi
sa
mani
fest
ati
onoft
his.Ev
erydayseesnew t
ie-
ups,i
nnov
ati
onsandst
rat
egi
esbei
ng
announcedbybanks.St
ateBankofI
ndi
ahasr
ecent
lyannouncedi
tsi
ntent
iont
ofor
m
anI
Tsubsi
diar
y.Aseachangei
nbanki
ngser
vicesi
sont
hecar
ds.I
twoul
d,howev
er,
be
essent
ialt
o hav
ein pl
ace a pr
operr
egul
ator
y,super
visor
yand l
egalf
ramewor
k,
par
ti
cul
arl
y as r
egar
ds secur
it
y oft
ransact
ions ov
ert
he Net
,forr
egul
ator
s and
cust
omer
sal
i
ket
obecomf
ort
abl
ewi
tht
hisf
orm ofbanki
ng.

REFERENCES

ht
tp:
//www.
icommer
cecent
ral
.
com/
open-
access/
the-
elect
roni
c-banki
ng-
rev
olut
ion-
 i
nindi
a.php?
aid=59261

ht
tp:
//www.
fi
nanci
alexpr
ess.
com/
indust
ry/
banki
ng-
fi
nance/
onl
i
ne-
banki
ng-
user
s-i
n-i
ndi
a-
t
oreach-
150-
bil
l
ion-
by-
2020-
accor
ding-
to-
a-st
udy
/731048/

APPENDI
X-1

Name Gender Age

Rut
uja Femal
e 20bel
ow
Ut
sav
i Femal
e 20bel
ow
Deepa Femal
e 20-
35
Amr
utaKal
ambe Femal
e 20-
35
Jat
inShel
ar Mal
e 20bel
ow
Pr
eet
i Femal
e 20bel
ow
Ji
teshPandi
t Mal
e 20bel
ow
Ani
ketKhedekar Mal
e 20-35
RankeshDai
t Mal
e 20bel
ow
Ni
raj
Mal
vi Mal
e 20bel
ow
Abhi
shekMi
shr
a Mal
e 20bel
ow
ShaunakP Mal
e 20-35
LaxmanMeht
ari Mal
e 20bel
ow
Kaj
al Femal
e 20bel
ow
DeepakDev
idas Mal
e 20bel
ow
Korde
ShettyPr
aneet
h Mal
e 20-
35
Dinesh
Pr
ati
k Mal
e 20bel
ow
RupeshSur
yav
anshi Mal
e 20bel
ow
Dav
idRaj
a Mal
e 20-
35
Mansi
Wanar
e Femal
e 20bel
ow
I
shwarDapse Mal
e 20-
35
JayKumar Mal
e 20bel
ow
Say
ali
SMahadi
k Femal
e 20bel
ow
Sat
yam Jha Mal
e 20-
35
Pr
ajna Femal
e 20-
35
Pr
anayKadam Mal
e 20bel
ow
Sar
veshKhot Mal
e 20-
35
Raaj
Rane Mal
e 20bel
ow
Pav
itr
aShet
ty Femal
e 20bel
ow
Neet
aSar
oj Femal
e 20-
35
Ranj
i
tShet
ty Mal
e 20-
35
Lav
eshPant Mal
e 20bel
ow
Pr
ajeet
hShet
ty Mal
e 20bel
ow
Ashi
shNai
r Mal
e 20-
35
Pr
ati
kPanchal Mal
e 20bel
ow
Pr
adny
a Femal
e 20-
35
Negi
Arv
ind Mal
e 20bel
ow
Rav
ina Femal
e 20bel
ow
Sahi
lSanj
ayMor
e Mal
e 20bel
ow
Di
anaD’
souza Femal
e 20-
35
Pr
anavBagwe Mal
e 20-
35
Dev
enNemawar
kar Mal
e 20-
35

Shal omi Fer nandes Female 20bel

ow
Ranj anShet ty Male 20-
35
Swast ikShet t
y Male 20bel
ow
YatinRameshSal vi Male 20-
35
Gar gi Patankar Female 20bel
ow
Hrishi keshKul karni Male 20-
35
Pranj aliSarpotdar Female 20bel
ow
Trupt i Female 20bel
ow
Mansi PrakashMor e Female 20bel
ow
YashChav an Mal
e 20bel
ow
VineetKeshav a Mal
e 20-
35
Shr i
y an
AkshayBapar dekar Male 20-
35
Sonal iJady al Female 20-
35
Nikhi lRajendr a Male 20bel
ow
Kadam
Krupa Female 20-
35
ArjunNai k Male 20-
35
Aakashdubey Male 20-
35
Rishi keshChav an Male 20-
35
Shr eey aShi rke Female 20bel
ow
Soham Male 20-
35
Soham Yadav Male 20bel
ow
AjjuBhai Male 20bel
ow
TusharDawar e Male 20-
35
Shut ikaSal unke Female 20-
35
Sur aj Shinde Male 20-
35
Sampad Male 20-
35
Amr utaDange Female 20bel
ow
Romi tBonkar Male 20-
35
Bhav eshGadge Male 20-
35
Vijay aMal usar e Female 20bel
ow
Sanchi tBhi se Male 20-
35
Sur aj Kanoj iya Male 20-
35
Mohi tDPat il Male 20-
35
Tauf i
queKhan Male 20-
35
PranavThakar e Male 20bel
ow
Adi tyaMahadi k Male 20-
35
Har shPar kar Male 20bel
ow
Rohi tMi shr a Male 25
Adi tiKandal gaonkar Female 20bel
ow
ShilpaShar ma Female 20-
35
Vishaka Female 20bel
ow
Rahul Chhaj ed Male 20bel
ow
Pranay aRane Female 20-
35
YashChoy bey Male 20-
35
Mihi rGaut am Nai k Male 20-
35
Ami shaKhopade Female 20bel
ow
Sankal pVijayNi kam Male 20bel
ow
Yukt aThor at Female 20bel
ow
Chai tany aJai n Male 20bel
ow
Ritvi
k Male 20bel
ow
ShrtiSawant Female 20bel
ow
PrathameshVi tt
hal Male 20-
35
Mane
Shreya Female 20bel
ow
PranavRaj e Male 20bel
ow
AjayShar ma Male 20-
35
AkshayAshok Male 20-
35
Balkawde
ShivaniDeshmukh Female 20-
35
StacyAbr eo Female 20-
35
VishalVijaykumar Male 20bel
ow
AnitaSalunke Female 20bel
ow
SupriyaMor e Female 20-
35
RohitSingh Male 20-
35
ZameerMakwana Male 20-
35
DurveshTamse Male 20-
35
KaustubhPawar Male 20-
35
Shubham Raut Male 20bel
ow
TanmayDeshpande Male 20-
35
Bini
th Male 20-
35
Rahul Prajapati Male 20-
35
Sakshi Dabre Female 20-
35
Mer vi
nAger a Male 20bel
ow
Mahi maSi ngh Female 20bel
ow
PraveenShet t
y Male 20-
35
Ar
yanRaj
esh Mal
e 20bel
ow
Anuj
Ani
lGawde Mal
e 20bel
ow
APPENDI
X-2
MAI
NQUESTI
ONNAI
RE

Name _
___
___
___
___
___
___
__
Gender
:o Mal
e o Femal
e o
Ot
her
Age:
___
___

Mar
it
alst
atus_
___
___

1.I
sonl
i
nebanki
ngt
echnol
ogyt
rust
wor
thy
?
o Yes
oNo

2.Doy
oupr
eferonl
i
nebanki
ng?
o Yes
oNo

3.Do y
ou t
hink e-
banki
ng cr
eat
es a st
rong r
elat
ionshi
p bet
ween t
he bank & i
ts
cust
omer
s? oYesoNooMay
be

4.Whatar
eyourr
easonst
ochooseonl
i
nebanki
ng?
o Eas
y access
oTr
ansf
er
f
unds o
Paybi
l
lso
 Vi
ew
det
ail
s of
y
our
accounto
Sav
es
t
ime

5.I
se-
banki
ngbenef
ici
alt
oyou? oYesoNo

6.Doy
out
hinkonl
i
nebanki
ngi
nvol
vesr
isk?oYesoNooMay
be

7.I
sonl
i
nebanki
ngmor
eeasyt
hanbr
anchbanki
ng?
o Yes
oNo

8.Howf
requent
lydoy
ouusee-
banki
ngser
vices?
o Onc
eaweeko
Once a
mont
h o
Once a
Year