PROJECT REPORT

[SUBMITTED FOR THE DEGREE OF B.COM HONOURS IN

ACCOUNTING ANDFINANCE UNDER THE UNIVERSITY OF
CALCUTTA]

TITLE OF THE PROJECT

IMPACT OF ONLINE BANKING ON

CONSUMERBEHAVIOUR.

SUBMITTED BY
NAME : TANVI JAIN
COLLEGE ROLL NO. : 3046
CU REGISTRATION NO. : 116-1211-0377-19
CU ROLL NO. : 191116-11-0076
NAME OF THE COLLEGE : SURENDRANATH COLLEGE FOR WOMEN

SUPERVISED BY
NAME OF THE SUPERVISOR :MISS PRIYATA CHAUDHURY

NAME OF THE COLLEGE:SURENDRANATH COLLEGE FOR WOMEN

MONTH AND YEAR OF

SUBMISSION : JUNE 2022

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 ACKNOWLEDGEMENT
While conducting the IMPACT OF ONLINE BANKING ON CONSUMER BEHAVIOUR
project, innumerable people have given me various suggestions and opinions while conducting
the project on IMPACT OF ONLINE BANKING ON CONSUMER BEHAVIOUR. I have tried
to incorporate all those suggestions which are really relevant in preparing my final report. I thinkit
is essential to thank all those who have contributed and helped me throughout the durationof the
project.

I pay my immense gratitude to my supervisor MISS PRIYATA CHAUDHURY,faculty of

Surendranath College For Women for his continuous and deliberate discussion on the topic and
indeterminable burden taken by him in helping me throughout conducting the project.

I thank him for providing us with all the required motivation needed to complete the project.

Name : Tanvi Jain

Registration No. : 116-1211-0377-19

CU Roll No. : 191116-11-0076

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 ANNEXURE-1A

SUPERVISOR’S CERTIFICATE
This is to certify that TANVI JAIN student of B.Com. 6 th Semester Honors in Accounting &
Finance of Surendranath College For Women under the UNIVERSITY OF CALCUTTA has
worked under my supervision and guidance for her Project Work and prepared a Project
Reportwith title IMPACT OF ONLINE BANKING ON CONSUMER BEHAVIOUR
which she is submitting, is her genuine and original work to the best of my knowledge.

Signature:

Place :Kolkata
Date :
Name: Miss Priyata Chaudhury
Designation : State Aided College
Teacher: Category 1
Name of the College: Surendranath College For Women

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ANNEXURE-1B

STUDENT’S DECLARATION

I hereby declare that the Project Work with the title IMPACT OF ONLINE BANKING
ON CONSUMER BEHAVIOUR submitted by me for the partial fulfillment of the
degree of B.Com Honors in Accounting & Finance under the University of Calcutta is
my original work and has not been submitted earlier to any other University/Institution
for the fulfillment of the requirement for any course of study. I also declare that no
chapter ofthis manuscript in whole or in part has been incorporated in this report from
any earlier work done by others or by me. However, extracts of any literature which has
been used for this report has been duly acknowledged providing details of such
literature in the references.

Place : Kolkata Signature :

Date : Name : Tanvi Jain
Registration No. : 116-1211-0377-19
CU Roll No. :191116-11-0076

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 TABLE OF CONTENT
Serial No. Particulars Page No.
Chapter 1 INTRODUCTION

1.1 Introduction 6
1.2 Background of study 7-8
1.3 Objectives of the study 9
1.4 Literature Survey 10
1.5 Research Methodology 11
1.6 Limitation of the Study 12
Chapter 2 CONCEPTUAL FRAMEWORK
2.1 Online Banking : Brief History 13
2.2 Pictorial Representation 14-15
2.3 Importance of Online Banking 16-17
2.4 National Scenario 18-21
2.5 International Scenario 22
2.6 Advantages of the Concept 23
2.7 Disadvantages of the Concept 24
Chapter 3 DATA ANALYSIS
3.1 Presentation of Data 25
3.2 Period of the Study 25
3.3 Tools Used 25
3.4 Data Analysis 26-38
3.5 Findings 39
Chapter 4 CONCLUSIONS AND RECOMMENDATIONS
4.1 Conclusion 40
4.2 Suggestion and Recommendation 41
BIBLIOGRAPHY 42
ANNEXURE 43-44

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 CHAPTER : 01

1.1 INTRODUCTION
The age of Google and Wikipedia has ensured that we do most of our activities online. What

is absolutely incredible is that we can rely for almost everything on the internet. More

business than we can ever imagine is done online. The Indian banking industry has undergone

unprecedented rivalry among unconventional banking organizations. The introduction of

latest technologies along with the deregulation of the banking sector has attracted new players

to make a foray into the industry rapidly and competently. If you consider the present age of

banking, online banking has made things much easier and has saved lot of time of Bank

employees as well as general public. The traditional way of waiting in a queue and filling up

all the forms manually, is no hassle now for transacting with any bank. The shift from the

formal banking to “online banking” has been a leap change.

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 1.2 BACKGROUND OF STUDY

The twenty-first century is characterized by the use of information technology which has

revolutionized not only our working patterns but our style of living also. A new era of banking,

coined “Online banking” or “Internet Banking” has come into existence, where customers can

perform their financial transactions electronically over the internet through their personal

computer or laptop at a time convenient and suitable to them, without visiting concerned bank

and thus, in this manner they can save their precious time and utilize in other crucial tasks.

Furthermore, customers are expected to perform at least one of the following transactions

online, namely, viewing account balance and transaction histories, paying bills, transferring

funds between accounts, ordering cheques, managing investments and stock trading. Internet

banking as a medium of delivery of banking services and as a strategic tool for business

development has gained wide acceptance internationally and is progressing in India as more

and more banks are entering the fray. India can be said to be on the threshold of a major

banking revolution with net banking having already been unveiled. Internet banking is

defined as “the provision of retail and small value banking products and services through

electronic channels.

The precursor for the modern home online banking services were the distance banking

services over electronic media from the early 1980s. The term online became popular in the

late '80s and referred to the use of a terminal, keyboard and TV (or monitor) to access the

banking system using a phone line. ‘Home banking’ can also refer to the use of a numeric

keypad to send tones down a phone line with instructions to the bank. Online services startedin

New York in 1981 when four of the city’s major banks (Citibank, Chase Manhattan, Chemical

and Manufacturers Hanover) offered home banking services using the videotext system.

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Because of the commercial failure of videotext these banking services never became popular

except in France where the use of videotext (Minitel) was subsidised by the telecom provider

and the UK, where the Prestel system was used.

The UK's first home online banking services were set up by Bank of Scotland for customers

of the Nottingham Building Society (NBS) in 1983. The system used was based on the UK's

Prestel system and used a computer, such as the BBC Micro, or keyboard connected to the

telephone system and television set. The system (known as 'Home link') allowed on-line

viewing of statements, bank transfers and bill payments. In order to make bank transfers and

bill payments, a written instruction giving details of the intended recipient had to be sent to

the NBS who set the details up on the Home link system. The banking industry in India is

facing unprecedented competition from non-traditional banking institutions, which now offer

banking and financial services over the Internet. The deregulation of the banking industry

coupled with the emergence of new technologies, are enabling new competitors to enter the

financial services market quickly and efficiently. Indian banks are going for the retail banking

in a big way. However, much is still to be achieved. This study that was conducted by students

of IIML shows some interesting facts: Throughout the country, the Internet Banking is in the

nascent stage of development (more than 50 banks are offering varied kind of Internet

banking services).

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1.3 OBJECTIVE OF STUDY

The main objective of the study are:

 To find out the working of Internet Banking and its importance to customers as well
as banks.

 To manage the details of Accounts, Internet, Banking, Transaction, Balance,

Statement.

 Identify the consumer demography of online bank users.

 Making banking system easier by providing online services.

 Providing 24*7 banking service.

 Easy online applications for all accounts, including personal loans and mortgages.

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 1.4 LITERATURE SURVEY

Advances in electronic banking technology have created novel ways of handling daily
banking affairs, especially via the online banking channel. The acceptance of online
banking services has been rapid in many parts of the world, and in the leading e‐banking
countries the number of e‐banking contracts has exceeded 50 percent. Investigates online
banking acceptance in the light of the traditional technology acceptance model (TAM),
which is leveraged into the online environment. On the basis of a focus group interview with
banking professionals, TAM literature and e‐banking studies, we develop a model
indicating online‐banking acceptance among private banking customers in Finland. The
model was tested with a survey sample (n=268). The findings of the study indicate that
perceived usefulness and information on online banking on the Web site were the main
factors influencing online‐banking acceptance.

Kumar Prem and Esther Gnanapoo (2008), “Online Banking the essential need of today” it
was found out that the current trends are quite comforting for customer- but it does pose
threatsand problems to banks. As we find information technology invading the banking
sector, only banks, which used the right technology, could come out with success.
The concept of electronic banking has been defined in many ways. According to Birch
and Young (1997) analysed the consumer side for e-banking and the results showed that
consumers basically seek for transactional efficiency, choice for core and non-core
banking products and access to competitive prices and returns.
“Digital payment systems can do more for equality in poor countries than they can do anywhere
else, and we would like them to emerge there even if it takes longer in richer countries. We’re
not waiting for it to trickle down as we do for many advanced technologies. That’s not good
enough.”
– Bill Gates , In his 2019 annual letter.
Rullis et al-May 26-May 29, 2018
It is compare and evaluate the current state of the internet banking marketing in result to offer new
possible solutions for the internet banking marketing and also directionsfor further researches
that could extend knowledge in this field of science.

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 1.5 RESEARCH METHODOLOGY

Data that is observed or collected directly from first-hand experience is called primary data. Primary

research consists of a collection of original primary data which is undertaken afte the researcher

has gained some insight into the issue by reviewing secondary research or analysing previously

collected primary data.

I have taken the help of close ended questionnaires which were handed over to about 90 people

coming from several walks of life, the age group ranging from 18-50 years. I have taken the help of

various newspaper articles as well as several websites of the shopping portals which have helped

me gain knowledge about the various policies and payment options of the online giants as well as

the development or criticisms pertaining to online shopping in the national and global scenario.

The primary data analysis has been done with the help of MS EXCEL in the form of pie chartsand

bar diagrams etc. This survey done with the help of primary data would enable me to achieve and

explain the objectives of the project report efficiently.

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1.6 LIMITATION OF THE STUDY

The major limitation of the study are:

 A small sample from respondents is taken to primary data analysis. So I

cannot drewproper inferences about the respondents from this sample size.

 I have not use modern statistical tools to analyse the data.

 Due to shortage of time, I have not been able to make a deep study.

 This study is based on the prevailing respondents satisfaction. But their

satisfactionmay change according to time, fashion, need, etc.

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 CHAPTER 2: CONCEPTUAL FRAMEWORK

2.1 ONLINE BANKING : BRIEF HISTORY

Electronic banking is the wave of the future. It provides enormous benefits to consumers in

terms of the ease and cost of transactions.

Various developments have taken place in Indian Banking. Among the various

developments, technology has influenced the way customer interacts with banks. Electronic

channels and products such as ATMs, cards, internet banking and mobile banking are offered

along with traditional branch channel. Differences in the usage of channels exist between

developed countries and developing countries. Evidence suggests that there is a shift from

traditional channel to electronic channels. For example, usage of digital banking in

developed countries is more than 90 percent and diffusion of digital channels in developing

countries range from 11 percent to 25 percent. The study by Capgemini in his report “World

Payments Report 2017” indicate that non-cash transactions have reached 539 billion

transactions. There is greater propensity of customers to move towards digital channels.

Banks which develop digital capabilities are going to benefit. Customers recognize greater

convenience through digital channels. However, banks will need to cope up with issues of

customer service and frauds which are associated with digital channels.

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2.2 PICTORAL REPRESENTATION

*TRADITIONAL BANKING

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*ONLINE BANKING

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 2.3 IMPORTANCE OF ONLINE BANKING

In the present scenario, most of the business organizations are using the internet for a varietyof

communication tasks, such as promotion of consumer awareness and interest, providing

information and consultation, facilitating two-way communications with customers through e-

mail, stimulating product trial and enabling customers to place orders. In order to avail the

benefits that are accrued through using Internet, financial institutions like banks are

transforming themselves and conducting their business electronically.

Competition and the constant changes in technology and lifestyles have changed the face of

banking. Nowadays, banks are seeking alternative ways to provide and differentiate amongst

their varied services. Customers, both corporate as well as retail, are no longer willing to

queue in banks, or wait on the phone, for the most basic of services. They demand and expectto

be able to transact their financial dealings where and when they wish to.

E- Banking can be defined as “delivery of bank’s services to a customer at his office or home

using Electronic Technology.” The quality, range and price of these electronic services decide

a bank’s competitive position in the industry.

There are plenty of perks offered by banks to customers who adopt internet banking over the

traditional visit physically to the nearest branch office.

Convenience: This is the single most important benefits that outweigh any shortcoming of

internet banking. Making transactions and payments right from the comfort of home or officeat

the click of a button without even having to step out is a facility none would like to forego.

Keeping a track of accounts through the internet is much faster and convenient as comparedto

going to the bank for the same. Even non transactional facilities like ordering check books

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online, updating accounts, enquiring about interest rates of various financial products etc

become much simpler on the internet.

Better Rates: The banks stand to gain significantly by the use of internet banking as it implies

lesser physical effort from their end. The need to acquire larger spaces for offices and employ

more staff to deal with the customers is significantly reduced making it financially beneficial

to the banks. This means that a portion of savings accrued can be passed on to the customersin

terms of higher rates on deposits and lower rates on loans. To encourage internet bankingmost

banks offer minimum or no deposit accounts for online banking and lower penalties onearly

withdrawal of Fixed Deposits.

Services: Technology has made it extremely convenient for the bank as well as the customer

to access to a host of wonderful services by simply logging in. These services include

financial planning capabilities, functional budgeting and forecasting tools, loan calculators,

investment analysis tools and equity trading platforms which are available as simple

applications on the bank's website. Additionally most banks also provide the facility of online

tax forms and tax preparation.

Mobility: Internet banking has a step further in the last few years in the form of mobile

internet banking which accords unlimited mobility to the customer who can now handle

financial transactions even while on the move.

Another important benefit of the concept of internet banking is that it is good for the

environment as it cuts down the usage of paper, reduces pollution as people do not have to

travel physically and also does not add emissions.

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 2.4 NATIONAL SCENARIO

As per the Reserve Bank of India (RBI), India’s banking sector is sufficiently capitalised
and well-regulated. The financial and economic conditions in the country are far superior to
any other country in the world. Credit, market and liquidity risk studies suggest that Indian
banks are generally resilient and have withstood the global downturn well.
Indian banking industry has recently witnessed the roll out of innovative banking models like
payments and small finance banks. RBI’s new measures may go a long way in helping the
restructuring of the domestic banking industry.
The digital payments system in India has evolved the most among 25 countries with India’s
Immediate Payment Service (IMPS) being the only system at level five in the Faster
Payments Innovation Index (FPII).

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*MARKET SIZE
The Indian banking system consists of 20 public sector banks, 22 private sector banks, 44
foreign banks, 44 regional rural banks, 1,542 urban cooperative banks and 94,384 rural
cooperative banks in addition to cooperative credit institutions. As on January 31, 2020, the
total number of ATMs in India increased to 210,263 and is further expected to increase to
407,000 by 2021.
Public sector banks’ assets stood at Rs 72.59 lakh crore (US$ 1,038.76 billion) in FY19.
During FY16-FY20, credit off-take grew at a CAGR of 13.93 per cent. As of FY20, total
credit extended surged to US$ 1,936.29 billion.
During FY16-FY20, deposits grew at a CAGR of 6.81 per cent and reached US$ 1.90 trillion
byFY20. Credit to non-food industries increased 3.3 per cent y-o-y, reaching US$ 1.26
trillion on February 28, 2020 and US$ 1.42 trillion on March 13, 2020.

*INVESTMENTS/DEVELOPMENTS
Key investments and developments in India’s banking industry include:

In 2019, banking and financial services witnessed 32 M&A (merger and

acquisition)activities worth US4 1.72 billion.
In March 2020, State Bank of India (SBI), India’s largest lender, raised US$ 100
millionin green bonds through private placement.
In February 2020, the Cabinet Committee on Economic Affairs gave its approval for
continuation of the process of recapitalization of Regional Rural Banks (RRBs) by
providing minimum regulatory capital to RRBs for another year beyond 2019-20 – till
2020-21 to those RRBs which are unable to maintain minimum Capital to Risk
weighted Assets Ratio (CRAR) of 9 per cent as per the regulatory norms prescribed
by RBI.
In October 2019, Department of Post launched the mobile banking facility for all post
office savings account holders of CBS (core banking solutions) post office.
Deposits under Pradhan Mantri Jan Dhan Yojana (PMJDY) stood at Rs 1.06 lakh
crore(US$ 15.17 billion.
In October 2019, Government e-Marketplace (GeM) signed a memorandum of
understanding (MoU) with Union Bank of India to facilitate a cashless, paperless and
transparent payment system for an array of services.
In August 2019, the Government announced major mergers of public sector banks,
which included United Bank of India and Oriental Bank of Commerce to be merged
with Punjab National Bank, Allahabad Bank to be amalgamated with Indian Bank and
Andhra Bank and Corporation Bank to be consolidated with Union Bank of India.
The NPAs (Non-Performing Assets) of commercial banks recorded a recovery of
Rs 400,000crore (US$ 57.23 billion) in the last four years including record
recovery of Rs 156,746crore (US$ 22.42 billion) in FY19.
Allahabad Bank’s board approved the merger with Indian bank for the consolidation
of 10 state-run banks into the large-scale lenders.

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 *GOVERNMENT INITIATIVES

As per Union Budget 2020-21, the Government proposed fully automated GST
refund module and an electronic invoice system that will eliminate the need for a
separate e-way bill.
Under the Budget 2020-21, Government proposed Rs 70,000 crore (US$ 10.2 billion)
to the public sector banks.
Government smoothly carried out consolidation, reducing the number of Public
Sector Banks by eight.
As of September 2018, the Government of India made Pradhan Mantri Jan Dhan
Yojana (PMJDY) scheme an open-ended scheme and added more incentives.
The Government of India planned to inject Rs 42,000 crore (US$ 5.99 billion)in
public sector banks by March.

GROWTH IN DIGITAL PAYMENT / TRANSACTIONS

GLOBAL COMPARISON (TRANSACTION VALUE)

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AVERAGE TRANSACTION VALUE PER USER

From the above chart it can seen that in 2017 Mobile POS Payments and Digital Commerce was
29.7$ and 72.5$ whereas this will not the same case in 2024 as we can see that Mobile POS Payments
exceed Digital Commerce.

ONLINE BANKING USERS AND EXPECTATION OF GROWTH

From the above chart it can seen that in 2017 Mobile POS Payments and Digital Commerce was
49.8 millions and 377.5millions whereas this will be the same case in 2024 as we can see that
Mobile POS Payment and Digital Commerce.

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 2.5 INTERNATIONAL SCENARIO
The western countries have tapped the field of online banking much better than their eastern

counterparts. The public awareness about online banking is much more in the Americas and

the Europe than the Asian countries.

U.S.A - In the USA, the number of thrift institutions and commercial banks with

transactional web-sites is 1275 or 12% of all banks and thrifts. Approximately 78% of

all commercial banks with more than $5 billion in assets, 43% of banks with $500

million to $5 billion in assets, and 10% of banks under $ 500 million in assets have

transactional web-sites. Of the 1275-thrifts/commercial banks offering transactional

Internet banking, 7 could be considered ‘virtual banks’. 10 traditional banks have

established Internet branches or divisions that operate under a unique brand name.

Several new business process and technological advances such as Electronic Bill

Presentment and Payment (EBPP), handheld access devices such as Personal Digital

Assistants (PDAs), Internet Telephone and Wireless Communication channels and

phones are emerging in the US market.

EUROPE - The Dutch and Finland are the biggest online bank users, according to

figures of online banking habits across Europe. Nearly 4 in 5 Dutch people aged 16 -75

do their banking online according to Statistics. This brings the Netherlands to the top

of the European Union. The share of people banking online has increased by more

than half since 2005. The older generations have caught up.87 percent of the Dutch

aged 16-75 engaged in internet banking in 2018. The Netherlands together with

Finland have the highest share of internet banking in the European Union. In Bulgaria

and Rumania there is hardly any internet banking. In the EU An average of 37 percent of the

16-75 year-olds does their banking online.

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 2.6 ADVANTAGES OF ONLINE BANKING
All the technologies invented by mankind to ease its life have their share of advantages and

disadvantages. Similarly, online banking also has its share of advantages and disadvantages.

Through Internet banking, you can keep an eye on your transactions and account

balance all the time. This facility also keeps your account safe. This means that by the

ease of monitoring your account at anytime, you can get to know about any fraudulent

activity or threat to your account before it can pose your account to severe damage.

It is available all the time, i.e. 24x7. You can perform your tasks from anywhere and at

any time; even in night when the bank is closed or on holidays. The only thing you

need to have is an active internet connection.

Bill payments can also be handled properly and smartly. Instead of waiting for certain

due dates, you can easily pay all your transactions using your computer and in

coordination with your bank.

Another advantage is the speed of every transaction. Online transactions, compared to

ATM or traditional banking, works faster.

Banking online is both efficient and effective. With just one secure site, all your

financial transactions can be managed orderly.

It also acts as a great medium for the banks to endorse their products and services.

The services include loans, investment options, and many others.

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2.7 DISADVANTAGES OF THE CONCEPT

Setting up an account may take time: In order to register for your bank’s online

program, you will probably have to provide ID and sign a form at a bank branch.

User Apprehension: Some business owners may not feel comfortable with the idea of

placing vital financial information into an online account, or may be apprehensive

about using the Internet.

Learning Difficulties: Banks sites can be difficult to navigate at first. Getting

acquittedwith the banking sites software may require some time to read the tutorials in

order to become comfortable in your virtual lobby.

Sites Changes and upgrades: Even the largest banks periodically upgrade their online

programs, added new features in unfamiliar places

Customer Service: There is no personal contact with any of the staff, and if talk to any

staff through the telephone, you have no guarantee you are talking to best person

available.

Security Concern: Even though E-banking heavily encrypted, through the developing

technology, it’s hard to rule out the ‘hackers’ who may access your banks accounts.

Internet is a public network of computers which facilitates flow of data / information

and to which there is unrestricted access. Banks using this medium for financial

transactions must, therefore, have proper technology and systems in place to build a

secured environment for such transactions.

Legal risk arises from violation of, or non-conformance with laws, rules, regulations,

or prescribed practices, or when the legal rights and obligations of parties to a

transaction are not well established.

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 CHAPTER 3: DATA ANALYSIS

3.1 PRESENTATION OF DATA

Questionnaire was used to collect primary data from respondents. The questionnaire was

structured type and contained questions relating to different dimensions of e-banking

preferences among service class such as level of usage, factors influencing the usage of e-

banking services, benefits accruing to the users of e-banking services, problems encountered.

An attempt was also made to elicit reasons for its non-usage. The questions included in the

questionnaire were open-ended, dichotomous and offering multiple choices. Articles on E-

Banking taken from journals, magazines published from time to time and through internet

are used to analyse and interpret data collected.

3.2 PERIOD OF STUDY

The study was conducted from April 2022 to May 2022

3.3 TOOLS USED

1. Tabulation of data with the help of MS-OFFICE EXCEL.

2. Various statistical tools and techniques have been used to collect data and thereafter the

analysis of data. For e.g. Pie charts, Bar diagrams ,picturisation,Graphs etc.

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 3.4 DATA ANALYSIS

Q1. Age

Findings
RESPONCE NO.OF PERCENTAGE
RESPONDENTS
18-30 55 61%

31-42 20 22%

43-50 15 17%

Total 90 100%

17%

18-30 Age
31-42 Age
22%
43-50 Age
61%

FIG.1

DATA INTERPRETATION
Most people are between18-30 years age bracket ten in 31-42 then in 43-50.

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 Q2. Occupation?

RESPONSE NO.OF RESPONDENTS PERCENTAGE

Profession 28 31%

Employment 30 33%

Business 32 36%

Total 90 100%

31%
36%
Profession
Employment
Business

33%

FIG.2

DATA INTERPRETATION

Most people for this study are business man followed by professionals and then are

employees under any employer.

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Q3. Sex?

Findings

RESPONSE NO.OF RESPONDENTS PERCENTAGE

Male 48 53%

Female 42 47%

Total 90 100%

53%

47%

FIG.3
DATA INTERPRETATION

By this study we can see that male are more active in using online banking followed by

females.

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Q4.How frequently do you use online banking services per month?

Findings

RESPONSE NO.OF PERCENTAGE

RESPONDENTS
3-8 times 30 33%
8-12 times 40 45%
Over 12 times 20 22%
Total 90 100%

22%
33%
3.8 Times
8-12 Times
Over 12 Times

45%

FIG.4

DATA INTERPRETATION

As per the questionnaire most of the respondents use online banking for 8-12 times.

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Q.5What online banking operations do you use the most?

Findings

RESPONSE NO.OF PERCENTAGE

RESPONDENTS
Pay bills 12 13%

Bank statements 30 33%

Bank transfer 28 32%

Insurance 10 11%

Investment 10 11%

Total 90 100%

11% 13%
Pay bills
11%
Bank statements
Bank transfer
33% Insurance
Investment
32%

FIG.5
DATA INTERPRETATION

The above diagram shows the different services offered by the bank. It was witnessedthat most of the
respondents preferred using internet banking over there conventional banking system. Thus, internet banking
has a bright future ahead.

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Q.6 Why do you prefer online banking?

Findings

RESPONSE NO.OF RESPONDENTS PERCENTAGE

Time saving 30 33%

Rewards 12 13%

Higher security 18 20%

Easy 20 23%

Others 10 11%

Total 90 100%

11%

33% Time Saving

Rewards
23%
Higher Security
Easy
Others

13%
20%

FIG.6
DATA INTERPRETATION

As per the questionnaire different people have different views regarding why they prefer

online banking. It could be observed that the highest preference was given to Time saving and

higher security is the second important reason for online shopping.

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Q.7Would you trust banks that only operate online?

Findings

RESPONSE NO.OF PERCENTAGE

RESPONDENT

Yes 38 43%

No 27 30%

Dubious 25 27%

Total 90 100%

27%
43%

30%

FIG.7

DATA INTERPRETATION

As per the questionnaire, we can observe different levels of trust on security

related to online banking. Most people trust its security but still there is a class of

people that do not trust it or are dubious regarding it.

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Q.8 Do you think that human contact is important for banking relation?

Findings

RESPONSE NO.OF RESPONDENTS PERCENTAGE

Yes 38 42%

No 52 57%

Total 90 100%

42%
57%

FIG.8

DATA INTERPRETATION

Most of the respondents felt that it not important to have a human contact to maintain a

good banking relation. This is the main reason for development of online banking.

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 Q.9 What is the main disadvantages of online banking for you?

Findings

RESPONSE NO.OF PERCENTAGE

RESPONDENTS
Understanding 25 28%

Lack of assistance 12 13%

Security concerns 18 20%

Unreliable 20 22%

No disadvantage 15 17%

Total 90 100%

17%
28% Understanding
Lack of assistance
Security concerns
22%
Unreliable
13% No disadvantage

20%

FIG.9
DATA INTERPRETATION

This questionnaire shows different disadvantages related to online banking as per them.

Understanding the system is by far the biggest disadvantage of online banking as per it.
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 Q.10 What is the main disadvantages of visiting a bank branch for you?

Findings

RESPONSE NO.OF PERCENTAGE

RESPONDENTS
Waiting 30 33%

Distance 20 22%

Opening times 25 28%

Quality of service 10 11%

No disadvantage 5 6%

Total 90 100%

6%
11% Waiting
33%
Distance
Opening times

28% Quality of service

No disadvantage
22%

FIG.10

DATA INTERPRETATION

It can be seen that many people prefer online banking for its speed of transaction. The time

constraints of the banks are also an important reason with other reasons.

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 Q.11 Which Banks do you deal with?

Findings

RESPONSE NO.OF PERCENTAGE

RESPONDENTS
Private banks(ICICI,HDFC and others) 35 39%

Public banks(Union bank ,SBI ,Federal bank and others) 55 61%

Total 90 100%

39% Private banks (ICICI,HDFC and

others)
Public banks (Union bank, SBI,
61% Federal bank and others)

FIG.11

DATA INTERPRETATION

It was witnessed that today public sector bank has the largest customer base but the private

banks are also catching up and after State bank of India HDFC has the highest customer base.

Multi-national banks are also making their presence noticeable in the Indian scenario.

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Q.12. Why do you prefer Private Banks?

Findings

RESPONSE NO.OF PERCENTAGE

RESPONDENTS
Give more perks 11 31%

Often has tie-ups 16 46%

Others 8 23%

Total 35 100%

23%
31%

Give more perks

Often has tie-ups
Others

46%

FIG.12
DATA INTERPRETATION

The above diagram shows the different services offered by the bank and the accurate

percentage of usage of those services by the customers. It can be seen that most customer use

private banks card because private banks often has tie-ups.

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Q.13 Why do you prefer Public Bank?

Findings

RESPONSE NO.OF RESPONDENTS PERCENTAGE

Cash back & VIP Points 20 36%

Activation cash rewards 20 36%

Others 15 28%

Total 55 100%

36%
28%

36%

FIG.13

DATA INTERPRETATION

It is observed that public bank card are preferred more than private bank card because it

provides cash back facility and also give VIP Points. There is also cash rewards for activation

of public bank cards.

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3.5 FINDINGS OF THE STUDY

 The most dominant age group is 18-30 which consists of both males and females.

 Banks provide security and convenience for managing your money and sometimes

allow you to make money by earning interest. Convenience and fees are two of the

most important things to consider when choosing a bank. It has grown enormously in

India since its introduction and is growing day by day. Each and every person is now

aware as well as well acquainted of online banking despite of its drawbacks.

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 CHAPTER-04
CONCLUSIONS AND RECOMMENDATION
4.1 CONCLUSION

 It is concluded from the results of the study that the usage of ATM, Telebanking and

Internet banking are perceived as important and the use of these services is associated
with socio-economic and demographic characteristics of the respondents. Though,
most of the customers prefer manual banking over e- banking, the customers tend to
use e-banking / internet banking and adoption of e-banking and internet banking
services among the bank customers is significantly influenced by the number of times
visiting the banks as well as the number of banking transactions per month.
 Most of the services through e-banking / internet banking performed by both public
and private banks are beyond the expectation of the customers. Similarly the various
services provided by both public and private sector banks are more than adequate for
customers. It is concluded finally that there is significant difference between public
and private sector banks in respect of both services provided and services performed
via e-banking / internet banking.
 Regarding the usefulness of e-banking / internet banking, it may be concluded that
“Generating the latest reports of banking transactions” is the major usefulness
followed by “Funds transfer”, “Pay bills using available cash in the accounts” and
“Order to buy and sell shares”. It is also concluded that the use of private sector banksis
remarkably lower than that of public sector banks.
 From the evaluation of the customers’ opinion with regard to the benefits and
usefulness of internet banking, it is identified that there are four major benefits,
namely “Save time & Cost Less”, “It is easier to use”, “It has higher security ” and Reward
earned by using online banking.

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 4.2 SUGGESTION AND RECOMMENDATIONS

Internet banking is a great new way of performing everything that we do at the bank, on our

computer. Here are some suggestions that can be used based on the findings of this project:

 The delivery of financial services at affordable costs to vast sections of people

including disadvantaged and low income groups’ is relates to financial inclusion.

Unrestrained access to public goods and services is an essential condition for an open

and efficient society.

 It is argued that as banking services are in the nature of public good, it is essential that

availability of banking and payment services to the entire population without

discrimination is the prime objective of public policy

 To achieve this sound financial and banking service is essential and therefore Indian

bankers should take resolutions to implement the policy of “inclusion” in all the

branches, which enable its customers to enhance the knowledge of e-banking and

avail all form of banking services.

 To include the maximum number of people under the shelter of financial inclusion for

this purpose, a banker should take steps to have a separate on-line centre in their

premises with enough number of computers and uninterrupted internet facility.

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 BIBLIOGRAPHY
JOURNALS

Srivastava Rajesh Kumar; “Customer’s Perception on Usage of Internet Banking”

Innovative Marketing, volume3; issued, 2017.

“Indian Financial System”-By M .Y Khan. Publication-Tata McGraw hill 6th edition

(2004)“Indian Banking Moving Towards IT”, Journal of Commerce and Trade, Vol. 2, No.
1- By Uppal,
R.K. & Kaur, (2007)

 WEBSITES
 https://www.sbi.co.in/web/about-us
 https://worldpaymentsreport.com/
 https://www.ibef.org/industry/banking-india.aspx
 https://www.rbi.org.in/SCRIPTs/PublicationReportDetails.aspx?UrlPage=&ID=243#c
h5
 https://www.statista.com/outlook/296/119/digital-payments/india#market-users

 www.unionbankofindia.in/

 www.centralbankofindia.com

 www.bankofbaroda.in

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 ANNEXURE

Questionnaire
NAME

1. AGE
a. 18-30
b. 31-42
c. 43-50

2. OCCUPATION

a. Profession
b. Employment
c. Business

3. SEX
a. Male
b. Female

4. How frequently do you use online banking service per month?

 3-8 times
 8-12 times
 over 12 times
5. What banking operations do you use the most?
 pay bills
 bank statements
 bank transfer
 insurance investment
6. Why do you prefer online banking (logic)

7. Do you trust banks

that only operate online?
• yes b. no c. dubious
8. Do you think human contact is important for banking relations?
a. yes b. no

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 9. what is the main disadvantage of online banking for you?
a.Understanding
a. Lackof assistance
b. Security concerns
c. Unreliable
10. what is the main disadvantage of visiting a bank branch for you?
e. Waiting
f. Distance
g. Opening Times
h. Quality of Service
11. Which Banks do you deal with?
a. Private Banks
b. Public Banks

12. Why do you prefer Private Banks?

a. Give more perks
b. Often has tie-ups
c. Others
13. Why do you prefer Public Bank?
a. Cash back & VIP Points
b. Activation cash rewards
c. Others

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