PROJECT REPORT

Submitted for the Degree of B. Com. Honours in

Accounting & Finance under the

ON

CUSTOMER’S PERCEPTION ON EMERGING TREND OF ONLINE BANKING

SUBMITTED BY

NAME OF THE CANDIDATE:

CU ROLL NO:

REGISTRATION NO:

COLLEGE ROLL NO:

COLLEGE NAME:

UNIVERSITY NAME:

SUPERVISED BY

NAME OF THE SUPERVISOR:

COLLEGE NAME:

MONTH AND YEAR OF SUBMISSION:

1|Page
 ACKNOWLEDGEMENT

It is a matter of great pleasure to present this project on "ONLINE BANKING IN INDIA" .I

take this opportunity to thank our respected principal______________________for giving
me an opportunity to work on this field.

I am grateful to our respected HOD___________without whom this project would not have
been successful.

I am very thankful to my Supervisor______________for her full support in completing this

project work.

Finally,I am grateful to acknowledge my family and friends and all the teachers who filled
the questionnaire providing me full support and coordination without which this project
wouldn't be possible.

NAME OF THE STUDENT

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 Annexure-I

Supervisor’s Certificate

This is to certify that Mr. Aniket Gupta,student of B.Com Honours in

Accounting & Finance of Acharya Jagadish Chandra Bose College under the
University of Calcutta has worked under my supervision and guidance for her
Project Work and prepared a Project Report with the title “A Project on Online
Banking in India”.

The project report which she is submitting is her genuine and original work to
the best of my knowledge.

Place: Kolkata Signature:

Date: Name:

Designation:

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 ANNEXURE-II

Student’s Declaration

I hereby declare that the Project Work with the title “Online Banking in India” submitted by
me for the partial fulfillment of the degree of B.Com. Honours 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 of this 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 my literature
which has been used for this report has been duly acknowledged providing details of such
literature in the references.

PLACE:
DATE: SIGNATURE:

NAME:

ADDRESS:

C.U. REGISTRATION NO.:

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 CHAPTERS TOPICS PAGE NO.

ACKNOWLEDGEMENT

SUPERVISOR'S CERTIFICATE

STUDENT'S DECLARATION

CHAPTER-1 BACKGROUND
INRTODUCTION JUSTIFICATION
BRIEF REVIEWV OF LITERATURE
OBJECTIVES
METHODOLOGY
LIMITATIONS

CHAPTER-2 DIFFERENT TERMINOLOGIES

CONCEPTUAL NATIONAL SCENARIO
FRAMEWORK INTERNATIONAL SCENARIO

CHAPTER-3 PRESENTATION OF DATA,APPLICATION OF

PRESENTATION AND STATICAL TOOLS AND INTERPERTATION
DATA ANALYSIS FINDINGS
CHAPTER-4 CONCLUSION
CONCLUSION AND RECOMMENDATIONS
RECOMMENDATIONS
BIBLIOGRAPHY

ANNEXURE

QUESTIONNAIRE

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 CHAPTER-I

"INTRODUCTION"

1. INTODUCTION

2. BACKGROUND OF THE STUDY

3. JUSTIFICATION OF THE STUDY

4. BRIEF REVIEW OF LITERATURE

5. OBJECTIVE OF THE STUDY

6. METHODOLOGY OF THE STUDY

7. LIMITATION OF THE STUDY

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1.1) INTODUCTION

Online banking, also known as internet banking or OnlinOnline-banking, is a service provided by

banks and financial institutions that allows customers to perform various banking transactions using
the internet or a mobile device.With online banking, customers can access their account information,
view account balances and transaction history, transfer funds between accounts, pay bills, apply for
loans, and perform other financial transactions at their convenience.To use online banking,
customers need to create an account with their bank and register for online banking services. They
will then receive a username and password, which they can use to log in to their account from any
internet-connected device.Online banking is a convenient and secure way to manage your finances. It
eliminates the need to visit a bank branch or ATM, and transactions can be completed quickly and
easily from the comfort of your home or office. However, it is important to ensure that you are using
a secure and reputable banking website or app to protect your personal and financial information.
Online banking has become increasingly popular in recent years due to its convenience and ease of
use. It allows customers to access their account information and perform transactions at any time,
from anywhere in the world, as long as they have an internet connection.

Online banking has also helped to streamline many banking processes, reducing the need for paper-
based transactions and enabling faster processing times. This has led to improved efficiency for both
banks and customers.Another benefit of online banking is the ability to access and monitor your
account in real-time. This means that you can keep track of your account balances, view transaction
history, and receive alerts for account activity, all in real-time. This can help you to stay on top of
your finances and avoid any potential issues or fraudulent activity.In addition to the standard online
banking services, many banks also offer mobile banking apps that can be downloaded to a
smartphone or tablet. These apps provide all the same functionality as online banking but in a more
streamlined and mobile-friendly format.Overall, online banking is a convenient and efficient way to
manage your finances, but it's important to always take precautions to protect your personal and
financial information. This includes using strong passwords, regularly monitoring your accounts, and
avoiding accessing your accounts on public or unsecured Wi-Fi networks.

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1.2) BACKGROUND OF THE STUDY

The origins of online banking can be traced back to the 1980s when banks began experimenting with
computerized systems for managing customer accounts. However, it wasn't until the 1990s when
widespread internet access became available that online banking as we know it today began to
emerge.The first online banking service was launched in 1994 by the Stanford Federal Credit Union
in the United States, allowing customers to check their account balances and transaction history from
their home computers. Over the next few years, other banks began offering similar services, and
online banking became more widespread.The early days of online banking were marked by concerns
about security and trust, as customers were hesitant to share sensitive financial information online.
However, banks worked to address these concerns by implementing advanced security measures
such as encryption and two-factor authentication.In the early 2000s, the rise of mobile technology led
to the development of mobile banking apps, allowing customers to perform banking transactions on
their smartphones and tablets. Today, online and mobile banking have become the norm, with
millions of people around the world using these services to manage their finances.Overall, online
banking has transformed the way we interact with banks and financial institutions, making it easier
and more convenient to manage our money from anywhere in the world.

In the early days of online banking, the technology was limited, and most transactions were simple,
such as checking account balances and transferring funds between accounts. However, as the
technology improved, banks began to offer more advanced services such as bill payment, online
statements, and loan applications.In the early 2000s, online banking began to experience rapid
growth as the internet became more widely available and trusted. Banks began to invest heavily in
their online banking platforms, offering more advanced features and improving security.One of the
key benefits of online banking is its convenience. Customers can perform transactions from
anywhere at any time, without the need to visit a physical branch or ATM. This has made banking
more accessible to people who may not have easy access to a bank branch or live in rural
areas.Online banking has also helped to reduce costs for banks, as they no longer need to maintain as
many physical branches or employ as many staff members. This has allowed banks to offer more
competitive products and services to their customers.Another important development in the history
of online banking is the emergence of fintech companies. Fintech companies are technology startups
that offer innovative financial services, often using mobile apps and online platforms. These
companies have disrupted traditional banking models, offering customers new options for managing
their money.Overall, online banking has revolutionized the way we manage our finances, offering
convenience, accessibility, and a wide range of services. As technology continues to evolve, we can
expect online banking to continue to grow and evolve as well.

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1.3) JUSTIFICATION OF ONLINE BANKING

There are several justifications for online banking. Here are some of the main ones:

1. Cost-effective: Online banking is generally less expensive for banks to operate compared
to physical bank branches. As a result, banks can offer lower fees and better interest rates
to their customers.

2. Access to financial information: Online banking provides customers with easy access to
their account information and transaction history. This allows customers to monitor their
finances closely and make informed decisions about their spending and saving habits.

3. Enhanced security: Online banking systems use sophisticated security measures to

protect customer data and prevent fraud. This includes two-factor authentication,
encryption, and fraud detection systems.

4. Environmentally friendly: Online banking is more environmentally friendly than

physical bank branches, as it reduces the need for paper transactions and travel to bank
branches
.
5. Improved customer service: Online banking allows banks to offer improved customer
service through digital channels such as chatbots, email, and video conferencing. This can
provide customers with quick and convenient access to support when they need it.

6. Convenience: Online banking allows customers to perform banking transactions from the
comfort of their own homes, at any time of the day or night. This is a significant benefit
for customers who may not have the time or ability to visit a physical bank branch.

Overall, online banking provides numerous benefits for both customers and banks,
including convenience, cost-effectiveness, access to financial information, enhanced
security, environmental friendliness, and improved customer service. As a result, online
banking has become an increasingly popular option for banking customers around the
world.

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1.4) LITERATURE REVIEW

Online banking has been the subject of extensive research in the field of finance and information
technology. A number of studies have investigated the adoption and use of online banking, as well as
its impact on customer behavior and banking operations.

One study published in the Journal of Financial Services Research (2006) found that online banking
adoption was influenced by several factors, including customer demographics, technology readiness,
and perceived benefits such as convenience and time savings. The study also found that trust and
security concerns were important barriers to adoption.Another study published in the Journal of
Internet Banking and Commerce (2010) examined the impact of online banking on customer loyalty.
The study found that customers who used online banking were more loyal to their banks than those
who did not, and that online banking had a positive impact on customer satisfaction and retention.In
terms of the impact of online banking on banking operations, a study published in the International
Journal of Bank Marketing (2017) found that online banking had reduced the cost of serving
customers and had led to increased efficiency and productivity for banks. The study also found that
online banking had improved customer satisfaction and loyalty.However, there have also been
concerns about the risks associated with online banking. One study published in the Journal of
Financial Crime (2015) found that cyber threats and fraud were significant risks associated with
online banking, and that banks needed to implement strong security measures to mitigate these
risks.Overall, the literature suggests that online banking has had a significant impact on the banking
industry, offering benefits such as convenience, cost savings, and improved customer satisfaction.
However, banks must also be aware of the risks associated with online banking and implement
strong security measures to protect customer information and prevent fraud. Although perceptual
variables had a superior predictive capability, he found age and occupation to be the important
predictors of consumers' ATM usage particularly in answering 'who' the users are. Customers who
are younger, more educated, and wealthier are more likely to use Internet banking (Sathye, 1999; and
Karjaluoto et al., 2002). Karjaluoto et al. (2002) indicated that prior computer experience, such as
Internet, e-mail and e-payment had the most significant impact on online banking usage, and also
technology experience, such as ATM, e-ID, was significant. Prior experience of technologies,
especially prior experience of computers, had impact on consumer beliefs and attitudes towards
related systems and technology. Mattila et al. (2003) identified that household income and education
had a significant effect on the adoption of Internet banking among mature consumers in Finland,
whereas perceived difficulty in using computers combined with lack of personal service in e-banking
were the main barriers. Akinci et al. (2004) conducted an empirical study on adoption of Internet
banking by academicians in Turkey.

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1.5) OBJECTIVES OF ONLINE BANKING

The primary objective of online banking is to provide customers with a convenient and accessible
way to manage their finances. Here are some of the specific objectives of online banking:

1. Convenience: Online banking allows customers to perform a wide range of banking

transactions from anywhere at any time. This eliminates the need to visit a physical bank
branch, saving time and increasing convenience.
2. Accessibility: Online banking allows customers to access their accounts and perform
transactions from any device with internet access, including desktop computers, laptops,
tablets, and smartphones.
3. Cost savings: Online banking can help banks reduce costs by reducing the need for
physical bank branches and staff members. This can lead to lower fees and higher interest
rates for customers.
4. Improved customer service: Online banking can improve customer service by providing
customers with easy access to their account information, allowing them to quickly resolve
issues and get answers to their questions.
5. Increased efficiency: Online banking can help banks increase efficiency by automating
routine tasks and allowing staff members to focus on more complex tasks.
6. Innovation: Online banking can drive innovation in the banking industry, as banks seek
to offer new and innovative services to meet the changing needs of their customers.
7. Flexibility: Online banking allows customers to have greater control over their finances
by providing them with the flexibility to manage their accounts and transactions
according to their preferences and schedules. It also offers a wide range of banking
services and products that can be tailored to meet individual needs.
8. Enhanced Security: Online banking employs advanced security measures, such as
encryption, multi-factor authentication, and monitoring tools, to protect customer
information and transactions from unauthorized access and fraud. The objective is to
provide a secure platform for customers to conduct their banking activities online with
confidence.
9. Customer empowerment: Online banking aims to empower customers by providing
them with greater control and autonomy over their financial activities. It allows customers
to view their account balances, transaction history, and financial statements, which helps
them to better understand their financial situation and make informed decisions about
their money management.

Overall, the objective of online banking is to provide customers with a convenient and
accessible way to manage their finances while also helping banks improve efficiency,
reduce costs, and offer new and innovative service.

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 1.6) METHODOLOGY OF ONLINE BANKING

The methodology of online banking involves the use of digital technologies and systems to
enable customers to perform banking transactions online. Here are some of the key elements of the
methodology of online banking:

1. User interface design: Online banking systems must be designed to provide customers with an
intuitive and user-friendly interface that allows them to perform transactions easily and quickly.
This involves designing interfaces that are easy to navigate, with clear and concise instructions
and prompts.
2. Security protocols: Online banking systems must have robust security protocols to protect
customer data and prevent fraud. This involves implementing measures such as encryption, two-
factor authentication, and fraud monitoring systems.
3. Integration with banking systems: Online banking systems must be integrated with a bank's
back-end systems to ensure that transactions are processed accurately and securely. This requires
integration with systems such as accounting, transaction processing, and customer relationship
management.
4. Mobile compatibility: Online banking systems must be designed to work seamlessly across
multiple platforms, including desktops, laptops, tablets, and smartphones. This involves
designing systems that are optimized for mobile devices and that allow customers to perform
transactions on the go.
5. Testing and quality assurance: Online banking systems must undergo rigorous testing and
quality assurance to ensure that they are functioning as intended and that they are secure and
reliable. This involves testing systems for functionality, security, and performance, and making
necessary adjustments and improvements.
6. Ongoing maintenance and updates: Online banking systems require ongoing maintenance and
updates to ensure that they are up-to-date with the latest security and technology standards. This
involves regular maintenance activities such as software updates, security patches, and hardware
upgrades.

Overall, the methodology of online banking involves the use of sophisticated digital
technologies and systems to enable customers to perform banking transactions online, while also
ensuring security, reliability, and ease of use.

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1.7) LIMITATIONS OF ONLINE BANKING

While online banking offers numerous benefits, there are also some limitations that customers and
banks should be aware of. Here are some common limitations of online banking:

1. Security concerns: One of the biggest limitations of online banking is the potential for
security breaches and fraud. Despite the many security measures in place, online banking
systems can still be vulnerable to hacking, phishing, and other cyber attacks.
2. Technical issues: Online banking systems can experience technical issues such as system
downtime, slow response times, and software glitches. These issues can disrupt customer
transactions and cause frustration.
3. Lack of personal interaction: Online banking eliminates the personal interaction that
customers can have with bank staff, which can be a disadvantage for customers who
prefer face-to-face interactions.
4. Limited services: Online banking may not offer all the services that are available at a
physical bank branch. For example, some types of loans may require in-person meetings
with bank staff.
5. Dependence on technology: Online banking requires customers to have access to
technology and internet connectivity. Customers who do not have access to these
resources may be unable to use online banking.
6. Transaction limits: Online banking may have transaction limits that are lower than those
available at a physical bank branch. This can be a disadvantage for customers who need
to perform large transactions.

Overall, while online banking offers many benefits, there are also limitations that
customers and banks should be aware of. Banks should work to address these limitations to
ensure that online banking remains a convenient and accessible option for their customers.

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 CHAPTER-2
"CONCEPTUAL FRAMEWORK"

1. DIFFERENT TERMINOLOGIES

2. NATIONAL SCENARIO

3. INTERNATIONAL SCENARIO

2.1) DIFFERENT TERMINOLGIES OF ONLINE BANKING

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Online banking is a convenient way for customers to access their bank accounts and conduct
financial transactions from anywhere with an internet connection. Here are some common
terminologies associated with online banking;

1. Mobile banking: This refers to the ability to access banking services through a mobile
device such as a smartphone or tablet.

2. Online-banking: This is a broad term that encompasses all electronic banking services,
including online and mobile banking.

3. Digital banking: This refers to the integration of online and mobile banking with other
digital technologies such as biometric authentication, chatbots, and artificial intelligence.

4. Virtual banking: This term is often used to describe banks that operate exclusively
online and have no physical branches.

5. Electronic funds transfer (EFT): This refers to the transfer of funds from one bank
account to another through an electronic network.

6. Bill pay: This is a feature of online banking that allows customers to pay bills
electronically.

7. Automatic payments: This is a feature of online banking that allows customers to set up
recurring payments for bills or other expenses.

8. Account aggregation: This is a feature of some online banking platforms that allows
customers to view all their financial accounts, including those at other banks, in one place

9. Online statements: This is a feature of online banking that allows customers to view
their account statements electronically instead of receiving paper statements through the
mail.

10. Phishing: This is a type of cyber attack in which fraudsters use fake websites or emails to
trick users into providing sensitive information such as passwords, credit card numbers,
or social security numbers.

11. Virtual credit card: This is a digital credit card number that can be used for online
purchases, providing an additional layer of security by preventing merchants from
accessing users' actual credit card numbers.

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12. Two-factor authentication (2FA): This is a security feature that requires users to
provide two forms of identification to access their accounts, such as a password and a
verification code sent to their phone.

13. Tokenization: This is a security measure that replaces sensitive data such as credit card
numbers with a unique identifier or "token," reducing the risk of data breaches.

14. Secure Sockets Layer (SSL): This is a security protocol used to encrypt data transmitted
between a user's device and the bank's server, ensuring that sensitive information cannot
be intercepted by unauthorized parties.

15. Online investment services: Some online banking platforms offer investment services
such as online brokerage accounts, robo-advisors, or mutual funds.

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2.2) NATIONAL SCENARIO

As of 2021, the online banking scenario in India has been rapidly growing and evolving in
recent years. The Indian government's push for a cashless society and the increasing use of
smartphones have been key factors driving the growth of digital banking in the country.Many
Indian banks now offer online banking services, mobile banking apps, and other digital
banking tools to their customers. This has allowed customers to easily manage their accounts,
transfer funds, pay bills, and more from the comfort of their own homes.

One major development in online banking in India has been the introduction of the Unified
Payments Interface (UPI) system. UPI is a real-time payment system that allows users to
instantly transfer funds between bank accounts using a mobile app. UPI has been a game-
changer for digital payments in India, as it has made it easier and faster for people to make
digital transactions.Another development has been the growth of digital wallet services like
Paytm, PhonePe, and Google Pay. These services allow users to store money in a digital
wallet and use it to make payments for goods and services. They have become particularly
popular in India for mobile recharges, utility bill payments, and online shopping.

However, despite the growth of online banking in India, there are still challenges that need to
be addressed, such as ensuring security and privacy of customer data, improving digital
infrastructure in rural areas, and addressing the issue of fraud and cybercrime. Nevertheless,
the overall trend in India is towards increased adoption of digital banking services, and this is
expected to continue in the coming years.

online banking in many countries has become a popular way for people to manage their
finances. With the advancement of technology and the increasing availability of the internet,
many banks now offer online banking services to their customers.

Overall, the national scenario of online banking is that it is becoming more popular and
widely used around the world, with many countries offering a variety of digital banking
services to their customers.

Presently, domestic demand stays constrained on account of slower pace of growth & high
level of commodity prices but favorable demographics & growth potential of Indian economy
are expected to mitigate the dampening effect in the long run. As per Census 2011, about 40
% of households still do not avail banking facilities . Banks with their forward looking
strategies, improved customer relationship, diversification of revenue sources etc are
expected to continue their impressive performance.

Faced with mutually interdependent forces of competition, regulation, technology, and

expectations of the customers, banks are set for a range of roles. The future mantra:
intelligent integration.

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2.3) INTERNATIONAL SCENARIO

The banking industry is expected to be a leading player in E-business. While the banks in
developed countries are working primarily via Internet as non-branch banks, banks in the
developing countries use the Internet as an information delivery tool to improve relationship
with customers.
In early 2001, approximately 60 percent of E-business in UK was concentrated in the
financial services sector, and with the expected 10-fold increase of the British E-business
market by 2005, the share of the financial services will further increase. Around one fifth of
Finish and Swedish bank customers are banking online, while in US, according to UNCTAD,
online banking is growing at an annual rate of 60 percent and the number of online accounts
has approximately reached 15 million by 2006.
Banks have established an Internet presence with various objectives. Most of them are using
the Internet as a new distribution channel. Financial services, with the use of Internet, may be
offered in an equivalent quantity with lower costs to the more potential customers. There may
be contacts from each corner of the world at any time of day or night. This means that banks
may enlarge their market without opening new branches. The banks in US are using the Web
to reach opportunities in three different categories i.e., to market information, to deliver
banking products and services, and to improve customer relationship.
In Asia, the major factor restricting growth of Online-banking is security, in spite of several
countries being well connected via Internet. Access to high-quality Online-banking products
is an issue as well. Majority of the banks in Asia are just offering basic services compared
with those of developed countries. Still, Online-banking seems to have a future in Asia. It is
considered that Online-banking will succeed if the basic features, especially bill payment, are
handled well. Bill payment was the most popular feature, cited by 40 percent of respondents
of the survey. However, providing this service would be difficult for banks in Asia because it
requires a high level of security and involves arranging transactions with a variety of players.
In 2001, over 50 percent of the banks in the US were offering onlinOnline-banking services.
However, large banks appeared to have a clear advantage over small banks in the range of
services they offered. Some banks in US were targeting their Internet strategies towards
business customers. Apart from affecting the way customers received banking services;
Online-banking was expected to influence the banking industry structure. The economics of
Online-banking was expected to favor large banks because of economies of scale and scope,
and the ability to advertise heavily. Moreover, Online-banking offered entry and expansion
opportunities that small banks traditionally lacked.
In Europe, the Internet is accelerating the reconfiguration of the banking industry into three
separate businesses: production, distribution and advice.

This reconfiguration is being further driven by the Internet, due to the combined impact of:

 The emergence of new and more focused business models

 New technological capabilities that reduces the banking relationship and transaction
costs.

 High degree of uncertainty over the impact that new entrants will have on current
business models.

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Though OnlinOnline-banking in Europe is still in the evolutionary stage, it is very clear that it
is having a significant impact on traditional banking activities. Unlike in the US, though large
banks in the Europe have a competitive edge due to their ability to invest heavily in new
technologies, they are still not ready to embrace Online-banking. Hence, medium-sized banks
and start-ups have an important role to play on the Online-banking front if they can take
concrete measures quickly and effectively.

1. PRESENTATION OF
DATA,APPLICATION OF
STATICAL TOOLS AND
INTERPERTATION

2. FINDINGS

CHAPTER-3

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"PRESENTATION AND DATA ANALYSIS"

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2.1) PRESENTATION OF DATA,APPLICATION OF
STATICAL TOOLS AND INTERPERTATION

Customers perception on Online Banking and Traditional Banking

A survey was conducted on online banking in India for the primary data among
25 people. The analysis of this survey or data is as follows:-

Q1. Do you think online banking is better than traditional Banking?

POLL out of 25: Yes – 72%; No- 28%

FINDINGS: The people understand that online NO

28%
banking is better than the traditional banking because of
its nature.

YES
72%

Q2. Overall, how satisfied are you with our online banking service?

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POLL OUT OF 25:very satisfied-28%; satisfied-40%; neutral-20%;
unsatisfied-12%

FINDINGS:Majority of peoples are satisfied with online banking but some

peoples are also very satisfied, neutral, unsatisfied.

Q3. Is Bank –a –net easy to use?

ye
sn
o

very satisfied
satisfied
neutral
POLL OUT OF 25: yes-60%; No-40%
unsatisfied
FINDINGS: Majority of people understand that online banking is easy to use
because they can save their time.

Q4. Do you trust the security of online banking service?

52%
51%
50%
49%
48%
47%
46%
YES NO

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24 | P a g e
Poll out of 25: Yes –52%; No – 48%;

FINDINGS: Majority of the people think that their Account is secured, but not
all. Their security concern should be eradicated. This will attract customers.

Q5. How often do you use online banking?

50%

45%

40%

35%

30%

25%

20%

15%

10%

5%

0%
WEEKLY MONTHLY REGULARLY RARELY

POLLoutof25: Weekly – 20%; Monthly – 44%; Regularly – 8%; Rarely – 28%

FINDINGS: Most of the people do not need the services of banks regularly or
maybe there is no need. They may transact with the bank on monthly basis for
most of the time.

Q6. What type of transaction do you make in online banking?

50%
45%
40%
35%
30%
25%
20%
15%
10%
5%
0%
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CHECK BALANCES PAYMENTS TRANSFER OF OTHER
FUNDS
POLL out of 25: Check balances – 44%; Payments – 28%; Transfer of fund –
8%;other -20%

FINDINGS: The utility of the online banking is service is not used to the
extent is should be and it is being majorly used for the purpose of checking the
balance in the account. The reason for this is the low volume of transactions
among the people.

Q7.Are you aware of net banking services offered by the banks?

Awareness of internet banking services

No
12%

Yes
88%

POLL out of 25: Yes-88%; No-12%

FINDINGS: Itis good for the banks as most of the respondents were
aware of the internet banking and all the services provided under
internet banking.

Q8.In which bank do you have your Acccount?

Account in the respective bank

Others
16% SBI
40%
HDFC
20%

PNB
24%
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POLL out of 25: HDFC banks-20%; PNB-24%; SBI-40%; Others-16%

FINDINGS:It was witnessed that today public sector bank State

bank of India has the largest customer base but the private banks
are also catching up and after State Bank of India, PNB and HDFC
has the highest customer base .Multi-national banks are also
making their presence noticeable in the Indian scenario.

Q9.Are you aware of the methods which can be undertaken to make

any kind of fraud?

Awareness of methods of fraud

Yes
32 %

No
68 %

POLL out of 25: Yes-32%; No-68%

FINDINGS:It’s pretty tragic but most of the respondents are unaware of the
techniques which can be taken up for any type of fraud.

Q10.Does your bank educate you about the internet banking

services being offered?

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 Educating about internet banking

No
40 %

Yes
60 %

POLL out of 25: Yes-60%; No-40%

FINDINGS: Most of the respondents felt that they are not properly
educated of internet banking and its benefits to them.

Q11. What benefits do you see in internet banking?

benefits seen by customers

Time Convenience
10% 16%
Speed
21%
Transparency
53%

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POLL out of 25: Convenience-16%; Speed-21%; Transparency-53%; Time-
10%

FINDINGS:.Most of the respondents felt that the transparency

provided by internet banking is the highest motivating factor for an
individual to use internet banking; rest speed convenience and time
are also the other motivating factors.

Q12.Would you prefer using net banking instead of visiting your

bank every now and then?

Prefer using net banking

No
12%

Yes
88%

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Poll out of 25: Yes-88%; No-12%

Findings: It was witnessed that most of the respondents preferred using internet
banking over there conventional banking system. Thus, internet banking has a bright
future ahead.

Q13.Are you aware of the benefits of net banking which are

available?

Benefits of Internet banking

No
12%

Yes
88%

Poll Out of 25: Yes-88%; No-12%

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 Findings: It is pretty amazing to see that most of the respondents are aware of the
benefits of internet banking.

Q14.What are main disadvantages of online banking?

Overall Difficulty
Overall Difficulty of using
of using online
No online banking System
banking System
Disadvantage 32% Lack of assistance
40%

Security Concerns
Security Lack of assistance
Concerns 8%
No Disadvantage
20%

PPoll Out of 25: Overall difficulty of using online banking System-32%; Lack
of assistance-8% ; Security Concerns-20%; No Disadvantage-40%
Findings:Most of the respondents felt that no disadvantage
provided by internet banking but some people also face problem
like Overall difficulty of using online banking system,Lack of
assistance, Security Concerns.

15Q. Are you started to use more net banking after demonetization?

100 %

90 %

80 %

70% 31 | P a g e

60 %

50 %
 40 %

30 %

20 %

10%

Poll0%
out of 25: Yes-12%; No-88%
yes no
Findings:Most of the people who are not starting online Banking after demonetization

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 CHAPTER-4
"CONCLUSION AND RECOMMENDATION"

1. CONCLUSION

2. RECOMMENDATIONS

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 CONCLUSION

From all of these, we have learnt that information technology has empowered customers and
businesses with information needed to make better investment decisions. At the time,
technology is allowing banks to offers new products, operate more efficiently, raise
productivity, expand geographically and compete globally. A more efficient, productive
banking industry is providing services of greater quality and value.

E-Banking is a generic term for delivery of banking services and products through
electronic channels, such as the telephone, the internet, the cell phone, etc. The concept and
the scope of e-banking is still evolving. It facilitates an effective payment and accounting
system thereby enhancing the speed of delivery of banking services considerably. While E-
Banking has improved efficiency and convenience, it has also posed severe challenges to the
regulator and supervisors. Several initiative taken by the government of India, as well as the
RBI, have facilitated the development of e-banking in India. The government of India
enacted the IT Act, 2000, which provides legal recognition to electronic transactions and
other means of electronic commerce. The RBI has been preparing to upgrade itself as a
regulator and supervisor of the technologically dominated financial system. It issued
guidelines on risks and control in computer and telecommunication system to all banks,
advising them to evaluate the risks inherent in the system and put in place adequate control
mechanism to address the risks. The existing regulatory framework over banks has also been
extended to E-Banking. It covers various issues that fall within the framework of technology,
security standards, and legal and regulatory issues.

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 RECOMMENDATIONS

The following are certain recommendations to popularise e-banking services/ products:

1. Create awareness about e-banking: Banks should createawareness among people

about e-banking products and services. Customers should be made literate about the
use of e-banking products and services. 
2. Special arrangements by banks: Special arrangements should be made by banks to
ensure full security of customer funds. Technical defaults should be avoided by
employing well trained and expert technicians in field of computers, so that loss of
data can be avoided. Banks should use latest technologies with timely updates to
secure customers valuable money from the hands of hackers
3. Specialised training: Employees of banks should be given special technical training
for the use of e-banking, so that they can further encourage customers to use the same.
4. Organising seminars and workshops: Seminars and workshops should be organised
on the healthy usage of e-banking especially for those who are ATM or computer
illiterate.
5. Cater to need of customers: E-banking services should be customised on basis of
age, gender, occupation etc so that needs and requirements of people are met
accordingly.
6. Proper infrastructure: Government should make huge investments for building the
infrastructure.
7. Security arrangements by customers: Customers should never share personal
information like PIN numbers, passwords etc with anyone, including employees of
thebank. Documents that contain confidential information should be safeguarded. PIN
or password mailers should not be stored, the PIN and/or passwords should be
changed immediately and memorised before destroying the mail. Take simple
precautions like changing the ATM PIN and online login and transaction passwords
on aregular basis. Ensure that the logged in session is properly signed out.

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 BIBLIOGRAPHY

www.slideshare.net
www.google.com
www.wikipedia.in
www.researchgate.in
www.investopedia.com
www.sbionline.com
www.sbi.co.in
www.linkedln.com
www.rbi.org.in
www.rbi.in
www.scribed.in

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QUESTIONAIRE

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