ABSTRACT

Technology plays an important role in banking sector.

Banking is one of the largest financialinstitutions
constantly exploring the opportunity of
technology-enabled services to
provide better customer experience and convenience.
Mobile phone is a common technology devicethat
became part of every individual’s life in the
information era. Mobile Banking is an emerging
alternative channel for providing
banking services. India is the
second largesttelecom market in the world, which
is having high potential for expanding banking
servicesusing mobile. However, mobile banking has
not become the choice of millions of people.This
technology help us to save our time & provide
facilities to get information about our account,
transactions and transfer the money from one
account to another account from anywhere and
anytime but there is problem in customer adaptation,
customer distrust on themobile banking. The main
objective of this study is to identify the mind-set and
analyse the prospects and issues in Mobile banking
among the banking customers in India.In India there are
1.012 billion active mobile connections in January 2018
out of 460 millioninternet users are there… by 2021
there will be more than 635.8 million internet users
inIndia. This is a major increase from previous
years. The global report found that
mobile banking adopts by new users and largest in eme
rging countries. It ensures that customer inclearing and
settlement of transaction through nationwide and real
fund transfer in any bank account and operates of any
operator.The study aimed at examining the knowledge
of banking customers on the services
offered by banks for mobile banking; finding out challe
nges faced by mobile banking services inextending their
services to many customers ; determining whether
customers are extensivelyusing mobile banking.For
this research, primary data was used. This study
adopts with descriptive in nature. Asample size of
80 respondents was given this questionnaire.
Secondary data was collectedusing documentary
sources such as articles and research reports from
internet and media.Analysed data was presented using
percentage in tables, charts and graphs.The findings
showed that the majority of respondents knew little
about the services
offered by banks through mobile banking. The study re
vealed that many customers fear the use of mobile
banking services. They fear insecurity, high charges and
unreliability of such services.However, 100%
respondents did agree that it is speedy, and saves time
than traditional banking.The study concludes that there
is a need to educate the banking customers about the
diversityof services offered as well as the
importance of using mobile banking in their day-
to-daychores.From this research, other researchers
and policy makers will get an insight about
prospectsand issues of mobile banking in India
 INTRODUCTION
INTRODUCTION TO BANKS
A bank is a financial institution that provides
banking and other financial services
totheir customers. A bank is generally understo
od as an institution, which providesfundamental
banking services such as accepting deposits and
providing loans. There arealso non-banking institutions
that provide certain banking services without meeting
thelegal definition of a bank. Banks are a subset of the
financial services industry. A banking system also
referred as a system provided by the bank that
offers cashmanagement services for customers,
reporting the transactions of their accounts
and portfolios, throughout the day. The banking system
in India should not only be hasslefree but it should be
able to meet the new challenges posed by the
technology and anyother external and internal
factors. For the past three decades, India’s banking
systemhas several outstanding achievements to its
credit.The Banks are the main participants of the
financial system in India. The Banking sector offers
several facilities and opportunities to their customers.
All the banks safeguards themoney and valuables and
provide loans, credit, and payment services, such as
checkingaccounts, money orders, and cashier’s
cheques.The banks also offer investment and
insurance products. As a variety of models
for cooperation and integration among finance i
ndustries have emerged, some of thetraditional
distinctions between banks, insurance companies,
and securities firms havediminished. In spite of
these changes, banks continue to maintain and
perform their primary role is accepting deposits and
lending funds from these deposits.

1.2 CLASSIFICATION OF BANKING

INDUSTRY IN INDIAFIGURE 1
There are two broad categories under which banks are
classified in India-
1. SCHEDULED 2. NON-SCHEDULED BANKS.
Scheduled Banks Scheduled banks are covered under
the 2nd Schedule of the Reserve Bank ofIndia Act,
1934. To qualify as a scheduled bank, the bank should
conform to the followingconditions: A bank that has a
paid-up capital of Rs. 5 Lakh and above qualifies for
the schedule bank category A bank requires to satisfy
the central bank that its affairs are not carried out in
away that causes harm to the interest of the
depositors.A bank should be a corporation rather than a
sole-proprietorship or partnership firm.
ScheduledCommercial Banks in India are categorised in
5 different groups according to their ownership /nature
of operation.
These bank groups are:
(i) State Bank of India(ii) Nationalised Banks,(iii)
Regional Rural Banks,(iv) Foreign Banks(v) Other
Indian Scheduled Commercial Banks (in the private
sector).
Every Scheduled Banks enjoys following facilities;
1. Scheduled Banks are eligible for obtaining
debts/loans on bank rate from the RBI.2. Scheduled
Banks automatically acquires the membership of the
clearing house.3. Scheduled Banks get the facility of the
rediscount of first class exchange bills from RBI.This
facility is provided by the RBI only if the Scheduled
Banks deposit average daily cash withthe RBI which is
decided by the RBI itself and presents the recurring
statements under the provision of RBI Act, 1934 and
Banking Regulation Act, 1949.
Definition of Non- Scheduled Banks:
The banks which are not included in the list of the
scheduled banks are called the Non-Scheduled Banks.
At present there are only 3 such banks in the country.
Non- Scheduled Bankshave to follow CRR conditions.
These banks can have CRR fund with themselves as
nocompulsion has been made by the RBI to deposit it in
the RBI. Non- Scheduled Banks are also not eligible for
having loans from the RBI for day to dayactivities but
under the emergency conditions RBI can grant loan to
them. Example:All local area banks are called the Non-
scheduled banks.
COMMERCIAL BANKS
are regulated and managed under the Banking
Regulation Act, 1949.These are profit making banks
based on their business model. Granting loans to the
government,general public, and corporate and accepting
deposits counts as the primary function. There arefour
types of commercial banks:
1. Public Sector Banks.2. Private Sector Banks.3. Foreign
Banks.4. Regional Rural Banks.Public sector banks
These are the nationalised banks and account for more
than 75 per cent of the total banking business in the
country. Majority of stakes in these banks are held
by the government. In terms of volume, SBI is the
largest public sector bank in India and after its merger
with its 5 associate banks (as on 1st April 2017) it has
got a position among the top 50 banks of the world.
There are a total of 20 nationalised banks in
india.Private Sector Banks
These include banks in which major stake or equity is
held by private shareholders. All the banking rules and
regulations laid down by the RBI will be applicable on
private sector banks aswell.
Foreign Banks
A foreign bank is one that has its headquarters in a
foreign country but operates in India as a private entity.
These banks are under the obligation to follow the
regulations of its home countryas well as the country in
which they are operating
Regional Rural Banks
These are also scheduled commercial banks but they are
established with the main objective of providing credit
to weaker sections of the society like agricultural
labourers, marginal farmersand small enterprises. They
usually operate at regional levels in different states of
India and mayhave branches in selected urban areas as
well.Other important functions carried out by RRBs
include- Providing banking and financial servicesto
rural and semi-urban areas Government operations like
disbursement of wages of MGNREGAworkers,
distribution of pensions, etc. Para-Banking facilities like
debit cards, credit cards andlocker facilities
COOPERATIVE BANKS
Run by the elected members of a managing committee
and registered under the CooperativeSocieties Act,
1912 are the cooperative banks. These are no-profit, no-
loss banks and mainlyserve entrepreneurs, industries,
small businesses, and self-employment. cooperative
banks can beof two types :
Urban Co-operative Banks
refer to the primary cooperative banks located in urban
and semi-urban areas. These banks essentially lent to
small borrowers and businesses centered
aroundcommunities, localities work place
groups.According to the RBI, on 31st March, 2003
there were 2,104 Urban Co-operative Banks ofwhich 56
were scheduled banks. About 79% of these are located
in five states, – AndhraPradesh, Gujarat, Karnataka,
Maharashtra and Tamil Nadu.
A State Cooperative Bank
is a federation of the central cooperative bank which
acts ascustodian of the cooperative banking structure in
the State.
SMALL FINANCE BANKS
These banks cater to a niche segment in the society and
help with financial inclusion of sectionswhich are not
taken care of by other leading banks. They look after
micro industries,unorganized sector, small farmers etc.
RBI and FEMA are the governing bodies of these banks
PAYMENTS BANK

This is a new and upcoming model of banking in India.

It has beenconceptualized and signed-off by RBI with
restricted operations. Maximum of Rs. One Lakh
isacceptable per customer by these banks. Like other
banks, they also offer para-banking serviceslike ATM
cards, Debit- Credit cards, net-banking, mobile banking
etc.
RESEARCH METHODOL
OGY AND DESIGN
METHODOLOGY:
Methodology is system of broad principle or rule from
which specific methods or proceduresmaybe derived to
interpret or solve different problems within the scope of
particular discipline. Methodology is not a formula but
a set of practices.The study was conducted to identify
the issues and prospects of mobile banking in
India. Necessary data was collected from different ages
of people and analyzed in terms of theobjectives of the
study.There are several ways to collect this basic
information. The data for this study was collected by
the survey method. Survey is a research technique in
which information is gathered from asample of people
by use of a questionnaire or interview. It is a method of
data
collection based on communication with a representativ
e sample of individuals. The researcher developed a
questionnaire and circulated into among her friends &
family to provide
detailsabout their mobile banking services usage
, knowledge & issues faced. The survey
wasdesigned in a manner to gain a better
understanding of the perspective of customers
at bothfinancial and personal level. This research is
based on present study and the findings
aresupported by the responses and insights from the
sample surveyed.
TYPES OF RESPONDENTS:
This research includes all types of people mostly
selected different age, sex and occupation people.
RESEARCH DESIGN:
Mobile banking is a new technology for people in
India. Bank customers normally usetraditional
banking system as they trust this system and they are
used to it. People are afraidof using mobile banking
because they cannot feel it trust worthy.In our country,
most of the customers are influenced through
advertisements. In recent times,customers have become
more conscious about their savings. Different banks
advertise aboutmobile banking services to give
information about it to all people in the country.
Thisresearch study has researched the customer
perception on mobile banking based on the
abovedimensions. The respondents were
approached through questionnaire that was sent to
themon their social media handles. It was felt that
the survey will give the correct result. Theresearch

is descriptive in nature, using primary data. SAMPLE

SIZE:
Sample is defined as a subset of the universal
population. Sample is small group
of respondents drawn from a population in whic
h the researcher is interested in gaininginformati
on and drawing conclusions. A sample of 80
respondents was selected for study.
SOURCES OF DATA:
During data collection, both primary and secondary
data were used for its validity andreliability as attached
in annexures.
Primary Data:
This study used primary data that was obtained directly
from the field. Data was collected fromthe sample
population through questionnaire as attached in
annexure.The open and close-ended questions were
used in questionnaire for bank customers.
Secondary Data:
Secondary data were used for providing the theoretical
background to the research problem.The secondary data
sources were-journal, books, internet etc.
QUESTIONNAIRE TYPE AND RESPONSES:
The questionnaire was starting with some introductory
questions such as name, age,occupation, education,
income and address. These questions provide the
basic informationabout the respondents. These types
of question make respondents comfortable to respond
thestudy.There are 15 questions in this questionnaire.
The respondents were asked the questions toknow their
knowledge and perception about mobile banking like
“Have you ever heard aboutmobile banking?”, “Do you
think you should use it?”, “Do you think mobile

banking servicesare trust worthy?” etc. DATA

COLLECTION AND ACCURACY OF DATA:
Generally, most of the people are not interested
to give time to answer a
questionnaire.Therefore, it was very difficult to
collect actual data because the information of
therespondents was collected by approaching them
to answer on social media and not face toface.
To overcome this problem, all possible efforts
were made by the researcher herself toensure the
collection of reasonably accurate information from the
respondents. Therefore, ithas not been possible to
apply any other method of investigation. Survey
method has theadvantage that it facilitates quick
investigation and involves lower cost. In order to
collectrelevant information before taking data, the
whole academic purpose of the study was
clearlyexplained and made clear to the respondents.
Data collected was checked and verified for accuracy
and consistency. The nature of study of this project is
analytical study. In analytical study, one has to use facts
or
information already available and analyze these to
make critical evaluation of the material.
Secondary data are those data which have already
collected and stored. Secondary data may