PROJECT REPORT

SUBMITTED FOR THE DEGREE OF B.COM. HONOURS IN

ACCOUNTANCY UNDER THE UNIVERSITY OF CALCUTTA

GROWING TREND OF E-BANKING IN INDIA

Submitted By

NAME : ANKITA MUKHERJEE

REGISTRATION NO. : 051-1211-0267-20
C.U ROLL NO. : 201051-11-0005
COLLEGE ROLL NO. : 0004
COLLEGE : CHARUCHANDRA COLLEGE

Supervised by

NAME : PROF. RAJASI DUTTA

COLLEGE NAME : CHARUCHANDRA COLLEGE

MONTH & YEAR OF SUBMISSION :

Annexure – 1A

SUPERVISOR ’S CERTIFICATE

This is to certify that Ms. Ankita Mukherjee a student of B.Com

Honours in Accountancy of Charuchandra College under the University of
Calcutta has worked under my supervision and guidance for her project
work and Project Report with the title “Growing Trend of E-Banking in
India” which she submitted , is her genuine and original work to the best of
my knowledge .

Signature :-
Name :- Prof. Rajasi Dutta

Place :- Kalighat , Kolkata

Date :-
Name of the college :- Charuchandra College
Annexure – 1B

STUDENT’S DECLARATION

I hereby declare that the project work with the title “Growing Trend
of E-Banking In India.” Submitted by me for the partial fulfillment of
the degree of B.Com. Honours in Accountancy under University of
Calcutta is my original work and has been submitted earlier to any
other University 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 by
others or by me. However, extracts of any literature which has been
duly acknowledged providing details of such literature in the
reference .

Signature :-
Name :- Ankita Mukherjee
Address :- Vill+P.O – Mashila,
P .S – Sankrail
Howrah – 711302

Registration No. :- 051-1211-0267-20

College Roll No. :- 0004
` C.U Roll No. :- 201051-11-0005
Place :- Kalighat , Kolkata
Date :-
 ACKNOWLEDGEMENT
At first I would like to thank University of Calcutta ,
Charuchandra College and the Department of Commerce for
giving me this opportunity to undergo this project on On-line
Banking system .
I expect my deep sense of gratitude and sincere
thanks to my project guide Prof. Rajasi Dutta for her
constant guidance co-operation and advice which helped me
in completing the project successfully .
Last but not least ; I would like to thank all my family
members and friends for their constant co-operation and
direct or indirect help without which this project couldn’t be
completed.

Ankita Mukherjee
Annexure – 1C
INDEX
CHAPTER CONTENTS PAGE NO.

1-5
1. INTRODUCTION

6-24
2. CONCEPTUAL FRAMEWORK AND
METHODOLOGY

25-38
3. DATA ANALYSIS

39
4. CONCLUTION

40
5. BIBLIOGRAPHY
 1

CHAPTER - 1
INTRODUCTION
Banking system always has an important role to play in every
country’s economy. It is vital for any nation as it provides for the needs of
credit for all the sections of the society. India is not only the world’s largest
independent democracy but it is also an emerging economic giant. The
growth potential of India is based on its strong banking institution. The
infusion of information technology in banking sector has completely
revolutionized how the banking sector operated. In order to survive in the
new globalized world, banks had to opt for this new change. Banking in
India has been through a long journey. It has seen a number of changes due
to technology and innovation. Arrival of card, introduction of Electronic
Clearing Service (ECS) introduction of Electronic Funds Transfer and
concept of online banking and mobile banking are the various novelties
which took place in banking sector. Now all the banks have started with the
concept of multi- channels, like ATMs, credit cards, debit cards,
telephone/mobile banking, internet banking, etc. The role of banking has
now changed from a mere financial intermediary to service provider of
various financial services under one roof acting like a financial supermarket.
With extreme competition among the banks, entire banking system is
undergoing a change. Today, modern banking not only looks for new ways
to attract but also to retain the customers and gain competitive advantage
over their competitors.

WHAT IS E-BANKING
Electronic banking (e-banking) is defined as the automated delivery of
new and traditional banking products and services directly to customers
through electronic, interactive communication channels. Internet banking
is just like normal banking, with one big exception. We don’t have to go to
the bank for transactions. Instead, we can access our account any time and
from any part of the world, and do so when we have the time, and not
when the bank is open. For busy executives, students, and home markers-
banking virtual blessing.
Banks offer internet banking in two main ways. An existing bank
with physical offices can establish a Web site and offer Internet banking to
 2

its customers in addition to its traditional delivery channels. A second

alternative is to establish a “virtual,” “branchless,” or “internet-only” bank.
The computer server that lies at the heart of a virtual bank may be housed
in an office that serves as the legal address of such a bank , or at some
other location. Virtual banks may offer their customers the ability to make
deposits and withdraw fund via automated teller machines (ATMs) or other
remote delivery channels owned by other institutions.
Online system allow customers to plug into a host of banking
services from a personal computer by connecting with the banks computers
over telephone wires the convenience can be compelling. Not only is travel
time reduced, but ATM machines, telephone banking or banking by mail
are often unnecessary. And technology continues to make online banking
once attempted only by computer enthusiasts, easier for the average
consumer.
Banks use a variety of names for online banking services,
such as PC banking, home banking electronic banking or internet banking.
No one imagine life without paper cash. Money has always been part of
human emotions. And although it is difficult to imagine that all those years
of savings at bank is now just a whole bunch of bits and bytes, it is
becoming a reality and the sooner people adjust to it, the better it is.

EVOLUTION OF E-BANKING:-
The story of technology in banking started with the use of punched card
machines like accounting machines or ledger posting machines. The use of
technology, at that time, was limited to keeping books of the bank. If
further developed with the birth of online real time system and vast
improvement in telecommunications during late 1970’s and 1980’s it a
resulted in a revolution in the field of banking with “convenience banking”
as a buzzword. Through convenience banking, the bank is carried to the
doorstep of the customer. The 1990’s saw the birth of distributed
computing technologies and Relational Data Base Management System.
The banking industry was simply waiting for these technologies. Now with
distribution technologies, one could configure dedicated machines called
front-end machines for customer service and risk control while
communication in the batch mode without hampering the response time
on the front-end machine.
 3

HISTORY OF E-BANKING:-
The precursor for the modern home online banking services
were the distance banking services over electronic media from the early
80s. The term online become popular in the late 80s and refers 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 the use of numeric
keypad to send tones down a phone line with instructions to the bank.
Online services started in New York in 1981 when four of the city’s major
banks (Citibank, chase Manhattan, chemical and manufacturer’s hangover)
offer home banking services using the videotext these banking services
never become popular except in France where the use of videotext
(Minitel) was subsidized by the telecom provider and the UK, where the
pestle system was used. The UK’s first home online banking services were
set up by the Nottingham Building society(NBS) in 1983. The system used
was based on the UK’s pestle 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 statement,
bank transfer and bill payment. In order to make bank transfers and bill
payment, 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
Typical recipient were gas, electricity and telephone companies and
accounts with other bank. Details of payments to be made where input into
the NBS system by the account holder via pestle. A cheque was then send
by NBS to the payee and an advice giving details of the payment was sent
to the account holder. BACS was later used to transfer the payment
directly. Stanford federal credit Union was the first financial institution to
offer online internet banking services to all of its members in Oct,1994.

OBJECTIVES OF STUDY :-
The present study aims to examine the progress of online banking
in India. IN this broader framework, an attempt is made to achieve the
following specific objectives:-
1. To analyze the present e-banking scenario concerned with ATM,
Mobile banking, Debit cards, credit cards, smart cards, PC Banking,
Internet Banking, and Wireless/PDA banking in India.
 4

LIMITATIONS OF STUDY :-
I. Due to time constraint it is not possible to finish my study
adequately.
II. Another limitation is the quality and originality or secondary data
taken via. Website of different commercial banks of RBI.

RESEARCH METHODOLOGY :-
The validity of any research is based on the systemic method of data
collection and analysis. The present study is based on secondary
Data. The statistical tools used for this study is simple growth rate are
obtained to evaluate the data. Data has been collected for the period of
April 2018 to April 2023 from reports on trends and progress of banking in
India and Statistical table relating to banks in India from reserve bank of
India website.

DATA SOURCE :-

I. Secondary data

Data collection :- secondary data are collected from various

collected journals books and from internet. Primary data are
collected from various people.

Data analysis :- In this project it is shown that the percentage

of Internet banking users against total population of India. I
have selected two public bank SBI,UBI and two private bank
AXIS BANK, ICICI BANK a sample for study.
In above study analysis the growth of nationalized and private
sector bank of West Bengal, discuss about ATM, mobile
banking, debit card, credit card, smart card, pc banking users
and analyzed mobile banking facility, and utility services.
 5

LITERATURE REVIEW :-
Internet revolution is a global phenomenon and going by the current
growth statistic, India expects a spurt in the internet penetration in coming
years particularly in the electronic commerce. It is an obvious notion that
internet banking and payments are likely to progress in tandem with the e-
commerce. The internet has proved to be a very cost effective delivery
platform, because of its inherent built-in qualities.

Zamdi et al (2013), studying 56 countries over 2008-12, calculate that USD

983 billion were added to their cumulative real GDP because of increased
card usage. Among the emerging economies, India at a lower level of
0.047%.

Dhananjay B and Suresh Chandra B (2015) expressed that retail electronic

payment system has progressed in the recent years. The creation of NCPI
set the stage for the development of Electronic payments. In this ratio of
electronic clearing grew from one percent to three percent.

Mukhopadhyay (2016) in their study of benefits from cashless society

found that as more payments are directly credited to the account, cashless
payments increase significantly.

Dr. Karuna Gupta, Mr. Ravindra Arya, (2017) focused on emerging trends
in the banking sector in India, he focused on the banking sector with
reference to digitalization. The digitalization of banking system leads to a
strong foundation in of economy and to ready to become cashless
economy to transform the Indian banking industry.
 6

CHAPTER - 2
CONCEPTUAL FRAMEWORK
Internet banking handles many banking transactions via personal computer
.For instance ,we may use our computer to view our account balance
,request transfer between accounts, and pay bills electronically .Internet
Banking system and method in which a personal computer is connected by
a network service provider directly to a host computer system of a bank
such that customer service request can be processed automatically without
need for intervention by customer service representatives. The system is
capable of distinguishing between those customer service requests which
are capable of automated fulfillment and those requests which require
handling by a customer service representative .The system is integrated
with the host computer system of the bank so that the remote banking
customer can access other automated service of the bank .The method of
invention includes the steps of inputting a customer banking requests from
among a menu of banking requests at a remote personal computer;
transmitting the banking requests to a host computer over a network;
receiving the request at the host computer; indentifying the type of
customer banking request received; automatic logged of the service
request, comparing the received request to a stored table of request types,
each of the request types having an attribute to indicate whether the
request type is capable of being fulfilled by a customer service
representative or by an automated system; and, depending upon the
attribute directing the request either to a queue for processing by an
automated system. On the basis above discussion, it can be said brief that-
internet banking handles many banking transaction via personal computer.
For instance, we may use our computer to view our account balance,
request transfers between accounts, and pay bills electronically.

Other forms of Electronic Banking :-

 Direct Deposit,
 Electronic Bill Payment,
 Electronic Check Conversion
 Cash Value Stored etc.
 7

PRE-BANKING SCENARIO INDIA

Traditional Banking :-
Traditionally the relationship between the bank and its customer has been
on a one-to-one level via the branch network. This was put into operation
with clearing and decision-making responsibility for the overall clearing
network, the size of the branch network and the organization’s
performance and set the decision-making parameters, but the information
available to both branch staff and their customers was limited to one
geographical location.

CUSTOMER CUSTOMER CUSTOMER

BANK BRANCH BANK BRANCH BANK BRANCH

CENTRAL CLEARING

CLEARING DECISION CLEARING DECISION CLEARING DECISION

HEAD OFFICE

THE INDIAN SCENARIO:-

India is still in the early stages of E-Banking growth and
development. competition and changes in technology and lifestyle in the
last five years have changed the face banking. The changes that have taken
place impose on banks tough standard competition and compliance. The
issue here is-where does India stand in the scheme of E-Banking. E-Banking
is likely to bring a host opportunities as well as unprecedented risks to the
fundamental nature of banking in India.
The reserve Bank of India has also set up a working group on E-
Banking to examine different aspects of E-Banking i.e.(1) Technology and
security issues (2) legal issue(3) regulatory and supervisory issues.RBI has
accepted the guidelines of the group and they provide a good insight into
 8

the security requirements of E-Banking. The importance of the impact of

technology and information security cannot be doubted. Technological
developments have been one of the key drivers of the global economy and
represent an instrument that if exploited well can boost the efficiency and
competitively of the banking sector. However, the rapid growth of the
internet has introduced a completely new level of security related
problems. The problem here is that since the internet is not a regulated
technology and it is readily accessible to millions of people, there will
always be people who want to use it to make illicit gains. The security issue
can be addressed at three levels. The first is the security of customer
information as it sent from the customer’s PC to the web server. The
second is the security of the environment in which the internet banking
server and customer information database reside. Third ,security measures
must be in place to prevent unauthorized users from attempting to long
into online banking section of the website.

INTERNATIONAL SCENARIO:-
In U.S.A the internet banking is relatively develop with a fairly large
number of transaction website and business volumes. However, the large
banks are more dominate than the small banks in offering internet-based
banking services. It has been found that E-Banks are more profitable than
one E-Banks but no sufficient. This is probably because of lack of value
added proposition that banks offer to customer.
In Europe, the internet banking is growing gradually and most of the
prominent banks are offering internet banking service. Swedish and finish
markets and market leaders lead the world in terms of internet penetration
and the range and quality their online services. Internet banking started
slowly in Australia, but now is packing very fast.
In Zealand, the major banks offer internet banking service to
customer; operate as a division of a bank rather than as a separate legal
entity. Reserve bank of New Zealand applies a uniform approach to the
regulation of both internet banking activities and traditional banking
activities. Banks in Japan are increasingly focusing on E-Banking transaction
with customers and internet baking is an important part of their strategy.
Based on the experience in native countries, the foreign banks are trying
hard capture the market. But these banks have to restructure their
business models suitable to Indian conditions.
 9

ADVANTAGES AND DISADVANTAGES OF E-BANKING

BENEFITS OF E-BANKING
Consumers are embracing many benefits of Internet banking.

Benefits of Customers
 Consumers can use their computers and telephone modem to dial
in from home or any sit where they have access to computer.
 The services are available seven days a week, 24 hours a day.
 Transaction are executed and confirmed quickly, although not
instantaneously. Processing time is comparable to that of an ATM
transaction.
 In general, the customer will find lower fees and higher interest
rates for deposit due to the reduced cost of operating online and
not needing numerous physical bank branches .

Benefits of the bank

Why should a bank ‘bank online’? Advantages previously held by large
financial institutes have shrunk considerably. The Internet has leveled the
playing field and afforded penned access to customers in the global
marketplace. Internet banking is a cost-effective delivery channel for
financial institutions.

Ability to increase Revenue :-

Financially, the bank can benefit a great deal from providing their
customers with an online banking service. The ban has the ability to
increase revenue by generating user and transaction fees for the use of a
bill payment product and has the option of charging an account access fee
for the use of the online system.

Save Money :-
In addition to making money, the bank can save money with an Internet
banking system. Online banking can actually decrease operating costs by
reducing the daily reproduction and distribution of paper-drawn
transaction and delivering and processing statements for accounts, credit
cards, and bills. Performing transactions via the internet also provides cost
savings, as indicated by a study done by Booz.
 10

DISADVANTAGES OF E-BANKING :-
The most obvious disadvantages is: technophobes need not apply i.e. if we
are still not comfortable using a computer, E-banking is not for us.

 Investment of time upfront can be formidable. The data entry is

necessary before the numbers can be massaged and money
managed successfully. Online bill payment is an example of an effort
that requires setting up which leads to ultimate convenience.
 Switching software or bank re-entry of data, although internet based
system are less impacts by this. But competition seems to be
minimizing this problem. The personal finance management software
Microsoft.
 Like anything that deals with the transfer of large amount of money ,
security is a major factor of online banking . it is taken very serious
during online banking procedures.

TYPES AND TOOLS OF E-BANKING :-

TOOLS OF E-BANKING :
◈ ATM (Automated Teller Machine)
◈ Debit card
◈ Credit card
◈ Smart card
◈ Kiosk machine

TYPES OF E-BANKING :
◈ Mobile Banking
◈ Pc Banking
◈ Internet Banking
◈ SMS Banking
◈ Telephone Banking
 11

AUTOMATED TELLER MACHINE (ATM)

Automated teller machine is seen everywhere. These machines
brought innovation in the banking sector all over the world. The advent of
the ATM has made the concept of the clock banking a reality. The ATM has
been helpful to both the bankers and customers. The load crowed of
customers in the banking hall of a branch waiting for their turn to collect
cash is dip earing.
The ATM is the device use by the bank customers to process
account transaction. This system is known as ‘’anytime money’’ because
with services the person having the ATM card can withdraw cash any time
he want. Since the ATM machine can be built anywhere like near markets
and railway stations etc. so one can easily with draw money from it.

Advantages of ATM:-
To Banks:-
 Less space required
 Capital expenditure is lower as compare to branch
 Bank’s staff gets more time to do marketing
 Lower transaction cost
To Customer:-
 Convenience of shopping no need to carry cash
 No need to visit bank for transaction
 Banking anytime, anywhere ,anyhow
 Fast and efficient service
Disadvantages of ATM :-
 Customer do not have proper knowledge of its operation so feel
hesitate to use it.
 If ATM card is lost ,no withdrawal of rupees .There is possibility of
misusing and hack the ATM card .
 Due to leakage of PIN , fraud can take place easily .
 Limitation of withdrawal of money .

The wait ,with all the promise of ATM’s capabilities many details
are still in the standard process.
 12

DEBIT CARD
A Debit card is also known as a check card. A debit card looks like a credit
card but works like a check . When we use a debit card to pay , the money
is taken right away from our checking or savings account .We must be sure
that we have enough money in our bank account to cover the cost of the
items we buy .
We will have a PIN or Personal Identification Number that we must
remember to use a debit card. We can use a debit card to pay at most
stores and restaurants .Be sure to record the cost of the items we buy with
our debit card in our check register. Then subtract the amount spent from
our balance . A check register is a record of the money that is put into a
checking account . It is also a record of the money taken out of the account
.

Advantages of Debit Card :

 Easy to obtain. Once you open an account most institutions will issue
you a debit card upon request.
 Convenience. Purchases can be made using a contactless or chip-
enabled terminal or by swiping the card rather than filling out a
paper check.
 Safety. You don't have to carry cash or a checkbook.
 Readily accepted. When out of town (or out of the country), debit
cards are usually widely accepted (to not have an interruption in
service, make sure to tell your financial institution you’re leaving
your city).

Disadvantages of Debit Card :

 Check book balancing. Balancing your account may be difficult unless
you record every debit card transaction.
 Fees. Using your debit card for ATM transactions may be costly if the
ATM is not affiliated with your institution.
 13

CREDIT CARD
A credit card is a thin plastic card that can be used to buy items.
A credit card might be used to buy food or restaurant meals. A credit card
allows us to pay later for the items we bought . This is called charging. It
means that we have paid for the items with our credit card. We promise to
pay when we sign the credit card receipt in the store. Credit cards can be
issued from a store , a bank or company.
We will be billed monthly for items we have charged. We can
pay the entire amount owed. Or, we can pay a part of the bill each month.
Our monthly bill will tell us the minimum payment we must pay each
month. Minimum payment is the smallest amount we can pay each
month. We will be charged interest on the total amount we owe. Interest
is the amount of money credit card companies charge for using a credit
card. Interest is figured in percentages.

ADVANTAGES OF CREDIT CARD :-

 It’s convenient to use in a wide variety of places- in stores, on the
phone or online.
 We can better manage our budget using our monthly statement
with the details of all our purchases.
 It is safer than carrying a lot of cash
 We are not responsible for charges if our card is stolen as long as we
report it immediately.

DISADVANTAGES OF CREDIT CARD :-

 If we make a late payment, do not the balance in full, or exceed our

credit limit, we will have to pay extra in fees and interest .
 Credit cards can lead to debt and negatively affect our credit history
if it is not managed properly .
 If we do not track our purchases, it can be difficult to know how
much we spend one month until our statement arrives .
 The terms and condition can be confusing and, in some cases, they
are only available in English.
 14

SMART CARD
A smart card is a card or similar device with an embedded integrated circuit
chip. Smart cards typically look like a credit card , although they can take
different forms . What makes the card smart is the embedded chip . The
chip is a powerful minicomputer that can be programmed for different
applications .
The chip enables a smart card to store and access data and
applications securely and exchange data securely with readers and other
systems . Smart card technology can provide high levels of security and
privacy protection.

ADVANTAGES OF SMART CARD :-

 High levels of security

 Through the Internet, smart card users can buy and pay for
computer network
 Ensuring economic operations, 100% effective theft-proof.
 Falling costs for operators and users.
 Specific standards ISO 7810, 7811, 9992, 10536.
 Multiservice smart cards.

DISADVANTAGES OF SMART CARD :-

 Discomfort to retrieve information from a stolen card.

 For its size can be easily misled.
 Increased cost of production.
 Dependence of electrical energy for use.
 Vulnerable to fluids.
 Bank fees associated with credit card.
 15

KIOSK MACHINE
A kiosk is a small , free structure that displays information or provides a
service . Kiosk can be manned or unmanned , and unmanned kiosk can be
digital or non digital .In business , kiosks are often used in locations with
high foot traffic . In shopping mall ,for example an unmanned , non –
digital kiosk can be placed near entrance to provide people passing by with
directions or promotional messaging . Manned kiosks temporarily set up in
Aisels can provide businesses that have seasonal sales cycles with a cost
effective way to display wares , and digital kiosks placed near movie
theatres can provide online banking or ticket sales services.

ADVANTAGES OF KIOSK MACHINE :-

 Reduce the waiting time for customers :
This is quite useful in services that require customers to make orders
at the counter desk, especially in restaurants. According to NCR
Corporation, merchants that provide self-service choices experienced
a 40% reduction in consumer wait times. Queue management
systems, in addition to kiosks, are an excellent tool for reducing wait
times and improving the shopping experience. This technology allows
personnel to respond to consumer demand as rapidly as possible,
ensuring that the checkout process runs smoothly and customers are
happy.

 Sales increase ;
Kiosks that provide self-service are the way of the future. They boost
productivity, streamline procedures, and increase income — all while
creating happier consumers. Kiosks are engineered to more
successfully upsell and cross-sell than personnel. They also avoid the
possibility of social criticism because they do not require a human
connection.
 16

 Personalized Experience :
Self-service kiosks not only expedite the procedure; they also
improve the overall experience. Kiosks may provide unprecedented
levels of personalization and customization, with selections tailored
directly to the user. They also help with order accuracy. In-store
customer experience is substantially enhanced with reduced wait
time and more people ready to assist consumers throughout their
purchasing journey.

DISADVANTAGES OF KIOSK MACHINE :-

 Unsatisfied Customer Experience :
This is what you might not expect from a machine that is ment to
reduce waiting time and improve efficiency in customer service.
While 66 percent of consumers prefer self-service checkout, 34
percent do not. Human connection is important in the customer
experience, hence a sizable percentage of consumers like to interact
with a salesperson at the checkout lane, especially in unexpected
scenarios like a malfunction. Thus, owners must also cater to these
clients. As a result, most establishments that have implemented self-
service checkout still include traditional cashiering stations.

 Layoff Criticism :
In a perfect scenario, self-ordering kiosks would increase earnings,
and the gain would be recirculated via the company’s resources,
including its employees. Displacement of employees should not be
considered a disadvantage if that is one of the aims. Adopting self-
order kiosks means allowing technology to do what it does best
while freeing up personnel to do what humans do best: optimize
resources rather than jeopardize them.
 17

PC BANKING
PC banking allows the customer to access the information
regarding to their bank accounts through a dial up connection. They can
also download the information and process it in their own manners. It is
different from the internet banking in the sense that internet banking is
done over a highly accessible public networks, whereas PC banking is
accessible just to bank’s customers.

ADVANTAGES OF PC BANKING
 PC banking makes things easier , We can access our account
just from our home PC , 24 hours per day, 7 days per week. All we
need is a computer with an internet connection, and a card reader,
which can be obtained at our four Fortis bank. The card reader gives
us unique codes based on our bank card and pin number, so our
account stays safe.
 PC banking goes faster
 PC Banking enables us round-the-clock access.
 We usually do not think to stand a queue as a way to perform
important banking transaction. The PC banking enables us to do just
that suitable from the ultimate comfort and privacy of our homes.
 In comparison towards the online banking program, the PC
banking provide us increased security.
DISADVANTAGES OF PC BANKING
 There is no personal interaction between our self and the
bank.
 We can access our account from the PC that we originally
installed the software.
 We cannot deposit physical cash using internet banking i.e.
cheques, cash in hand. This would require a personal visit to bank.
 18

MOBILE BANKING
Mobile banking comes in as a part of the bank initiative to offer multiple
channels banking providing convenience for its customer. A versatile
multifunctional, free service that is accessible and viewable at the monitor
of mobile phone. Mobile phones are playing great role in banking and other
channels.
Mobile banking can be divided into two broad categories of facilities:-
 Alert facility :-
Mobile banking alert facility keeps us informed about the significant
transaction in our account. It keeps our update where ever we go.
 Request facility :-
Mobile banking request facility enables us to query for our account
balance.

Advantages of Mobile Banking :-

Mobile banking through cell phone offers many advantages for customers
as well as banks. Some of them are as follows :-
 Mobile banking has an edge over internet banking. In case of online
banking we must have an internet connection and computer. This
is a problem in developing countries. However, with mobile
banking, connectivity is not a problem. We can find connectivity in
the remotest of places also where having an internet connection is
a problem.
 Cell phone banking is cost effective. Various banks provide the
facility at a lower cost as compared to banking by self.
 Banking thought cell phone benefits the banks too. It cuts down on
the cost of Tele-banking and is more economical.

Disadvantages of Mobile banking :-

 There may be technical issues that may cause error in the payment
or any other services via mobile banking.
 Customer may face some risk of security by using mobile banking.
There are the chances of hacking and virus attacks.
 19

SMS BANKING
It is a form of mobile banking . It is a facility used by some banks or other
financial institutions to send messages (also called notifications or alerts )
to customers mobile phones using SMS messaging , or a service provide by
them which enables customers to perform some financial transactions
using SMS.

ADVANTAGES OF SMS BANKING :-

 Allows you to request and receive banking information from your
bank on your mobile phone
 You can manage bank accounts, check account balances, perform
check requests and pay some bills.
 If you are in a business you can access your account whenever you
need to
 it is more convenient because you don't have to go to a bank to
complete a banking transaction.
 It's quite discrete, so you can view it when you are doing everyday
jobs and you don't have to set aside time to go to the bank.

DISADVANTAGES OF SMS BANKING :-

 If you don't have the internet on your mobile you can't access
what you need on your bank account.
 You could get your phone stolen and it will have all of your details
on it, so people can gain access to your account as well as your
phone.
 It causes more people to use their mobile phones and can cause
radiation.
 20

INTERNET BANKING
Internet banking let us handle many baking transaction via our personal
computer. For instance, we may use our computer to view our account
balance, me test between accounts, and pay bills electronically. Internet
banking system and method in which a personal computer is connected by
a network service provider directly to a host computer system of a bank
such that customer service requests can be processed automatically.
The obvious advantage to the consumer is convince one bank recently
used the advertising motto "bank naked to emphasize the customer's
freedom to conduct routine banking transaction from the comfort and
security of his/her home 24X7.
Types of Internet Banking:-
There are three basic type of internet banking that is being employed
in the market place:
 INFORMATION.
 COMMUNICATION.
 TRANSACTION.

Advantages of Internet Banking :-

 An internet banking account is simple to open and use. We just enter
a few answers to question in a form while sitting comfortably in our
own home or office to access our account, we establish security
measures such as usernames and passwords. To complete the setup
of our account, we just print, sign and v send in a form.
 Internet banking cost less. Because there are fewer building to
maintain, and less involvement by salaried employees, there is a
much lower overhead while with online banking. These saving allow
them to offer higher interest rates on saving accounts and lower
lending rates and service charges. Even traditional brick and mortar
banks offer better deals such as free bill paying services to encourage
their customers to do their banking online.
Disadvantages of internet Banking :-
 Identity conformation:-
Federal regulations require that financial institutions confirm
each customer's identity. This may present a logistical issue, as
copying and faxing documents is sometimes necessary.
 21

 Security concerns:-
With hacking and identity theft on of trust in the bank that their
account information and personal information are safe.
 Customer service:-
If our bank or a traditional bank, we can go to the bank and
speck to someone face to face about our problem but, with an
internet bank, we will likely spend a lot of time on the phone being
passed around and placed on hold.
 Fees:-
Many internet banks don't have ATMs, which means we will have
to pay ATM fees. This can cost us more money that paying the
regular monthly fees at a brick and mortar bank.
ONLINE SECURITY SYSTEMS:-
Most institutions providing online banking services are very security
conscious. After all, they wouldn't want to open their computers to a
stampeding public, would they? The security measures that organizations
take over the web are simply invincible, unlike the surveillance cameras
and lobby guards posted in many banks. If the general public is aware of, or
understand, the many features put into a place to guard their finances, and
then people remain skeptical.
Firewalls :
A firewall is a computer or software that protects the bank's computers
and data from being accessed by any outsider. This firewall is located at the
point where the bank's world connects with the rest of the world. This
firewall is basically a gatekeeper, checking each attempt at delivery of data
with a list of strict specifications; any criteria not met; does not make it past
the firewall.
Digital Signatures:
Digital signature essentially use encryption to scramble information in
way that only the party who issued the certificate (usually the online store
or a trusted third party) can decrypt and read. online merchants can be
more confident that the customer placing the purchasing order is indeed
entitled to use the payment card in question. Security experts believe that
digital signatures will encourage more consumer to purchase goods online.
Access Codes :
The access codes used to identify us to the online banking system are called
passwords, and are further protected by using PINS (personal Identification
number).
 22

RISK MEASUREMENT
E-BANKING RISK:-
◈ Strategic Risk
◈ Operational Risk:
 Technology infrastructure
 Security
 Data integrity
 System availability
 Internal control
◈ Reputational Risk
◈ Legal Risk
◈ Other traditional banking Risk
 Credit Risk
 Liquidity Risk
 Market Risk
 Foreign Risk

Way to keep online Banking secured :-

 Keep the computer up-to-date with antivirus software, operating
system patches, firewalls etc. and ensure the browser is set to the
highest level of security.
 Beware of unsolicited emails or phone calls for PINS or passwords -
the bank or the police would never ask for these in full.
 Always type the bank's address into the web browser - never follow a
link in an email and then enter personal details.
 A locked padlock or unbroken key symbol always appear in the
browser window when banking online .The ‘http ’at the website
address will change to ‘https’ when a secure connection is made .

OTHER TRADITIONAL BANKING RISK :-

The e-banking delivery channels also has implication for other
traditional banking risks such as credit risk., Liquidity risk, interest rate
risk and market risk.
 Credit risk:
The credit risk of banking institution can be affected by e banking
activities in a number of ways. The use of internal delivery channel
may allow banks, especially small institution, to expand very rapidly,
 23

which could lead to heightened asset quality and internal control

risks. The use of the internal also allows bank to expand their
geographical reach out of their traditional area, which increase the
challenge of understanding local market dynamics and risks, verifying
collateral and perfecting security lions with out- of-area borrowers.

 Liquidity risk:
The speed with which the information and misinformation moves
over the internet can have implication for liquidity risk profile of
banks. Adverse information about bank, whether it is true or not, a
can be easily disseminated over the internal through bulletin boards
and news groups.

 Market risk:
The impact of recent growth in securities issuance and trading
over the internet on banks market risk is complex. From a market
standpoint, the increase volume of securities, which are traded over
the internet volatility, but on the other hand, it can lead to
increased liquidity. From an individual bank's standpoint, banks may
be exposed to increase market risk if they create or expand deposits
brokering, loan sales, or securitization programmer as a result of
internet banking activities.

 Foreign exchange risk:

A bank may be exposed risk if it is accepts deposits from
foreign customers or create accounts denominated in currencies
other than their local currency. Since the internet allow banks the
opportunity to expand their geographic range, even internationally,
some bank may take a greater foreign exchange risk through e
banking activities then they have through their traditional delivery
channels.
 24

RBI GUIDELINES FOR E-BANKING :-

The Reserve Bank of India released its final operative guidelines
for e- banking. The central bank has decided to keep the limit on the ticket-
size for e-banking at Rs 2,500 per transaction, and Rs. 5,000 per day. Banks
have also been allowed to put in place a monthly transaction limit,
depending on the bank's risk perception of the customer. While the
guidelines will enable lenders such as State Bank of India and Axis Bank to
go ahead with their launch of mobile banking services, the central bank has
decided to restrict the services only to holders of debit and credit cards.
The card user base in the country is 80 million, with 55 million debit card
users and 25 million credit card users. Only Indian rupee-based domestic
services shall be provided on the mobile- payment platform, and the use of
mobile-banking for cross-border transactions have been strictly prohibited.
Banks which are based, licensed and supervised in India will be allowed to
offer such services. Further, only banks which have implemented the core
banking platform will be allowed to offer e-banking. At the same time, the
RBI has recommended that all e-banking transactions are validated through
a two-factor authentication system, thereby complying with the latest
security and encryption standards.

List of Indian banks providing Online Internet

Banking:-
Citi bank Punjab National Bank (PNB)
Indian Bank South Indian Bank
ICICI Bank Bank of Baroda
HDFC Karur Vysya bank
HSBC State Bank of India
IDBI State Bank of Hyderabad
Axis Bank ING Vysya
Andhra Bank Bank of India
 25

CHAPTER – 3
DATA ANALYSIS
TABLE AND CHART :-
1. ATMs deployed by both the public and
private banks in India :
For the Public Banks:

YEAR SBI UBI

ON-SITE OFF-SITE ON-SITE OFF-SITE
2019 25555 32860 3864 2786
2020 25634 32921 3979 2916
2021 25706 36911 9089 3868
2022 26189 39350 8042 3190
2023 25682 39945 8042 3190
TOTAL 128,766 181,987 33,016 15,950
AVERAGE 25,753.2 36,397.4 6,603.2 3,190
CAGR 0.0992% 3.98% 15.79% 2.75%

45000
40000
35000
30000
SBI
25000
20000
UBI
15000
10000
5000
0
2019 2020 2021 2022 2023

From the above chart we can see that public bank ATM users are
decreasing after covid-19 for both off-site and on-site .
 26

FOR THE PRIVATE BANK :

YEAR AXIS BANK ICICI BANK
ON-SITE OFF-SITE ON-SITE OFF-SITE
2019 2006 9795 5237 9750
2020 5447 12030 7258 10172
2021 5598 11445 8161 8642
2022 5748 11174 8402 8175
2023 5800 10127 9003 7639
TOTAL 24599 54571 38061 44378
AVERAGE 8199.67 18190.33 12687 14792.67
CAGR 23.66% 0.6689% 11.45% -4.7629%

14000
12000
10000
AXIS BANK
8000
6000
ICICI BANK
4000
2000
0
2019 2020 2021 2022 2023

From the above column chart it is seen that private bank ATM users are
increasing for on-site users and decreasing for off-site users after covid-
19.
 27

2.Total Debit Card Users both the public

and private banks in India :

YEAR Public bank Private bank

SBI UBI Axis bank ICICI bank
2019 316263253 16603143 24510625 44787752
2020 278133593 20378661 24487900 46088262
2021 293312845 44151937 23830173 39001364
2022 275922932 47932253 27747647 36655920
2023 273903638 50134669 12127172 32750633
TOTAL 1437536261 179200663 112703517 199283931
AVERAGE 479178753.67 59733554.33 37567839 66427977
CAGR -2.84% 24.74% -13.13% -6.07%

40000000

30000000 SBI
UBI
20000000
AXIS BANK
10000000 ICICI BANK

0
2019 2020 2021 2022 2023

From the above diagram it is clearly observed that, public bank debit
card users are more than private bank. But the growth has got up to
down over the period of time.
 28

3. Total Credit Card Users both the public and

private banks in India :

YEAR Public bank Private bank

SBI UBI Axis bank ICICI bank
2019 8271446 46459 5959857 6645716
2020 10547502 44214 6985774 9110690
2021 11821564 471266 7145409 10584421
2022 13766861 538325 9034829 12978825
2023 16762444 645447 12127172 14458594
TOTAL 61169817 1745711 41253041 53778246
AVERAGE 20389939 581903.67 13751013.67 17926082
CAGR 15.17% 69.26% 15.27% 16.82%

18000000
16000000
14000000
12000000 SBI
10000000
UBI
8000000
AXIS BANK
6000000
4000000 ICICI BANK
2000000
0
2019 2020 2021 2022 2023

From the above chart it is observed that the credit users are increasing
every year for both the public and private bank.
 29

4.Total Mobile Banking transactions in form

of volume and value of both the private and
public banks in India :

For the Public Banks:

YEAR UBI SBI

VOLUME VALUE VOLUME VALUE
(ACTUAL) (IN Rs’000) (ACTUAL) (IN RS’000)
2019 36142562 91328954.91 145159525 1275330289
2020 53850405 136617797.38 322432111 1054325130.37
2021 62115252 246329698 744381739 2290919313
2022 2644316 450185868.7 140802238 17432079061
2023 3475336 617029819.77 129135154 18845745715.52
TOTAL 158227871 1541492138.76 1481910767 40898399508.89
AVERAGE 52742623.67 513830712.92 493970255.67 13632799836.3
CAGR 37.40% 132.24% -2.31% 71.36%

2E+10
1.5E+10
UBI
1E+10
5E+09
SBI
0 SBI

2019 2020 UBI

2021 2022 2023

The above-given table shows the Mobile banking transaction of two public
bank in form of volume and value made by banks from the period of 2018-
2019 to 2022-2023 . From the above table we can observe that mobile
banking transactions increased significantly over the period of time . But we
can see that volume of SBI is decreasing from 2022 because of covid-19
situation.
 30

For the private bank :

YEAR AXIS BANK ICICI BANK
VOLUME VALUE VOLUME VALUE
(ACTUAL) (IN Rs’000) (ACTUAL) (IN RS’000)
2019 83925325 445085956.7 59826121 450217373.1
2020 137658301 549500102.17 100964675 626140361.44
2021 432459650 1739967340 185529555 1409915605
2022 6414594 451454032.2 91119226 45510121264
2023 6390055 512946493.02 97068783 43943298883.52
TOTAL 666847925 3698953924.09 534508360 91939693487.06
AVERAGE 222282641.67 1232984641.36 178169453.33 30646564495.69
CAGR -40.25% 2.88% 10.16% 149.97%

5E+10
4E+10
3E+10 AXIS BANK

2E+10
ICICI BANK
1E+10
0 ICICI BANK
AXIS BANK
2019 2020
2021 2022
2023

The above-given table shows the Mobile banking transaction of two private
bank in form of volume and value made by banks from the period of 2018-
2019 to 2022-2023 . From the above table we can observe that mobile
banking transactions increased significantly over the period of time . But we
can see that the transaction has decreased around 2021 and 2022 in covid-
19 pandemic ’s time .and also volume of Axis bank volume is decreasing
from 2022.
 31

National Electronic Fund Transfer :

National electronic fund transfer is a nation-wide payment
system enabling one to one fund's transfer. Under this system individuals
and corporates can electronically transfer funds from any bank branch to
any individual, corporate having an account with any other bank branch in
the country participating in the scheme. For being a part of the NEFT funds
transfer network, a bank branch has to be National electronic fund
transfer enabled. Any individuals, firms who holds saving bank accounts
with a bank branch can receive or send funds through the NEFT scheme
hence it is necessary for the customers to have an account with NEFT
enabled bank branch. There is no maximum limit on the number of funds
that could be transferred using NEFT.
For the public bank :-
YEAR SBI
OUTWARD INWARD
VOLUME VALUE VOLUME VALUE
(IN MILLION) (IN MILLION)
2019 26992077 3746425.6 57089481 4035802.9
2020 21585094 35596279.5 66417737 37665141.6
2021 30251477 42727453.5 84487005 51050653.9
2022 33867720 43164147.1 98700093 61059299.0
2023 30499062 39525672.20 133376112 64624829.37
TOTAL 143195430 164759977.9 440070428 218435726.77
AVERAGE 47731810 54919992.63 146690142.67 72811908.92
CAGR 2.47% 60.2% 18.49% 70.41%

YEAR UBI
OUTWARD INWARD
VOLUME VALUE VOLUME VALUE
(IN MILLION) (IN MILLION)
2019 2883859 370504.4 7099430 5539988.8
2020 2641958 2582998.2 7039508 4447072.8
2021 6904129 5565460.6 12049287 8490101.2
2022 6486706 4878245.9 21638198 13496030.5
2023 7307925 5065655.44 29083782 12310127.70
TOTAL 26224577 18462864.54 76910205 44283321
AVERAGE 8741525.67 6154288.18 25636735 14761107
CAGR 20.43% 68.72% 32.58% 17.31%
 32

For the private bank :-

YEAR ICICI BANK

OUTWARD INWARD
VOLUME VALUE VOLUME VALUE
(IN MILLION) (IN MILLION)
2019 19599129 1560167.5 13733048 2015987.1
2020 23449459 14573421.5 14670124 19268211.7
2021 32225895 24934299.5 22662880 26240983.0
2022 40080887 27919088.1 27041201 30645884.3
2023 44595971 31082331.08 31851581 34122353.85
TOTAL 159951341 100069307.68 109958834 112293419.95
AVERAGE 53317113.67 33356435.89 36652944.67 37431139.98
CAGR 17.87% 81.91% 18.34% 76.08%

YEAR AXIS BANK

OUTWARD INWARD
VOLUME VALUE VOLUME VALUE
(IN MILLION) (IN MILLION)
2019 21216532 1562573.9 10628825 1533142.9
2020 22463234 13007306 11259978 15248801.8
2021 28571247 19362465.8 15801197 16919351.8
2022 35649672 25469755.5 22246934 21431036.1
2023 67758962 28356856.51 24106630 26337864.29
TOTAL 175659647 87758957.71 84043564 81470196.89
AVERAGE 58553215.67 29252985.9 28014521.33 27156732.3
CAGR 26.14% 78.55% 17.79% 76.60%

The below-given table shows the NEFT transactions in forms of Volume

and Value made by both the public and private banks from the period of
2018-19 to 2022-23. From the above table we can observe that NEFT
transactions increased in volume and value of transactions for period 2018-
19 to 2022-23. We can see that from the compound average growth rate .
And it shows the positive growth rate in NEFT transactions in form of
volume and value.
 33

Real-Time Gross Settlement (RTGS) :-

Real-Time Gross Settlement (RTGS) is a fund transfer method via
which money is sent immediately without any delays. RTGS is typically
meant for larger value transactions and the minimum amount that can be
sent via this mode is Rs.2 lakh.
You can use the net banking or mobile banking facility to transfer money
via RTGS. You need the bank details of the individual to transfer money via
this mode. Transfers can be scheduled in advance as well.

For the public bank :-

YEAR SBI
OUTWARD INWARD
VOLUME VALUE VOLUME VALUE
(IN MILLION) (IN MILLION)
2019 1967529 14893.37 1719295 15430.87
2020 1812189 1289167.16 1379386 1285494.51
2021 2871689 1456630.67 2404785 1556108.41
2022 3070660 1707918.87 2892856 1900508.52
2023 3233758 1879128.20 2997983 2045643.97
TOTAL 12955825 6347738.27 11394305 6803186.28
AVERAGE 4318608.33 2115912.76 3798101.67 2267728.76
CAGR 10.44% 163.14% 11.76% 165.755

YEAR UBI
OUTWARD INWARD
VOLUME VALUE VOLUME VALUE
(IN MILLION) (IN MILLION)
2019 356064 1081.64 441878 1187.88
2020 49241 24619.23 103045 20955.83
2021 598159 273495.52 1019344 273186.59
2022 843850 299673.95 1057075 322587.29
2023 870511 313210.08 1044867 345752.01
TOTAL 2717825 912080.42 3666209 963669.6
AVERAGE 905941.67 304026.81 1222069.67 321223.2
CAGR 19.57% 210.70% 18.78% 211.02%
 34

For the private bank :

YEAR AXIS BANK

OUTWARD INWARD
VOLUME VALUE VOLUME VALUE
(IN MILLION) (IN MILLION)
2019 990350 10649.86 784705 11247.25
2020 874533 793279.40 738839 857051.38
2021 1536431 874560.75 1230987 948705.02
2022 1742324 1179540.21 1484751 1246357.68
2023 1930513 1359076.18 1676273 1373840.30
TOTAL 7074151 4217106.4 5915555 4437201.63
AVERAGE 2358050.33 1405702.13 1971851.67 1479067.21
CAGR 14.28% 163.74% 16.39% 161.44%

YEAR ICICI BANK

OUTWARD INWARD
VOLUME VALUE VOLUME VALUE
(IN MILLION) (IN MILLION)
2019 1037394 11531.50 1012496 11540.31
2020 1049743 1010204.28 986296 1004741.79
2021 2010808 1288722.60 1960058 1297955.71
2022 2504133 1522053.96 2432061 1513485.24
2023 2829359 1664919.95 2695977 1648910.90
TOTAL 9431437 5497432.29 9086888 5476633.95
AVERAGE 3143812.33 1832477.43 3028962.67 1825544.65
CAGR 22.22% 170.33% 21.63% 169.77%

The above-given table shows the RTGS transactions in forms of Volume and
Value made by both the public and private banks from the period of 2018-
19 to 2022-23. From the above table we can observe that RTGS
transactions increased over a period of time in the forms of volume as well
as value. And it shows the variability in growth rate with respect to the
volume and value of RTGS transactions .
 35

OVERALL GROWTH OF E-BANKING SYSTEM IN INDIA

AS RBI :

TOOLS :

YEAR ATM DEBIT CARD CREDIT CARD

ON-SITE OFF-SITE
2019 106380 95816 905813162 47088647
2020 113271 97489 828561639 57745105
2021 115605 97970 898201796 62049087
2022 116794 98267 917665707 73627330
2023 123613 95893 961258764 85303238
TOTAL 575663 485435 4511501068 325813407
AVERAGE 191887.67 161811.67 1289000305.14 93089544.86
CAGR 3.04% 0.01% 1.19% 12.61%

1E+09
ATM

50000000
DEBIT CARD
CREDIT CARD
0
DEBIT CARD
2…
2…

ATM
2…
2…
2…

The above – given table shows overall e-banking tools users by both the
public and private banks from the period of 2018-19 to 2022-23. . From the
above table we can observe that users of ATM, Debit card, Credit card
increased over a period of time. We can see that from the compound
average growth rate . And it shows the variability in growth rate with
respect to the e-banking system .
 36

TYPES :

YEAR NEFT RTGS MOBILE BANKING

VOLUME VALUE VOLUME VALUE VOLUME VALUE
(IN LAKH) (IN CRORE) (IN LAKH) (IN CRORE) (IN LAKH) (IN CRORE)
2019 2424 2547000 13640534 14872935 8729.3 440153
2020 2623.7 2283664.6 11894618 12047220.74 13830.33 520199.11
2021 3481.4 3046328.5 20234900 12982214.60 32971 1246220
2022 4314.2 3492578.2 23003813 14458955.04 57121.32 1648626.4
2023 5469.1 3750569.41 24801308 16122902.24 92896.4 2401074.5
TOTAL 18312.4 15120140.71 93575173 70484227.62 205548.35 6256273.01
AVERAGE 6104.13 5040046.9 31191724.33 23494742.54 68516.12 2085424.34
CAGR 17.67% 8.04% 12.70% 1.62% 60.475% 40.39%

25000000

20000000
NEFT
15000000

10000000
RTGS
5000000
MOBILE BANKING
0 RTGS
NEFT
2019
2020
2021
2022
2023

The above – given table shows overall e-banking types users by both the
public and private banks from the period of 2018-19 to 2022-23. . From the
above table we can see the Mobile banking , NEFT , RTGS transactions in
forms of Volume and Value made by both the public and private banks
from the period of 2018-19 to 2022-23. From the above table we can
observe that increased over a period of time. We can see that from the
compound average growth rate . And it shows the variability in growth rate
with respect to the e-banking system .
 37

Factors Causing E-banking Success :

Compared to western countries, E-banking practices in India is
significantly low. In recent years banks have attempted to create
information infrastructure to enhance the E-banking operation. Some of
the factors which are responsible for E-banking implementation are:

1. Channel convenience is a factor which plays a crucial role in adopting

internet banking, which helps the customers to access 24x7 and
time-saving.

2. E-banking provides enhanced services to a customer like banks

regularly invests new online products and interactive customer care
mode is available to instantly solve queries.

3. Cost and promotion is the factor which helps the customer to do the
transaction online because it is cheaper than branch banking and
extensive promotion and advertisements about e-banking help in
created awareness

4. Prior internet knowledge and Information on internet banking helps

the customer to do banking activates quickly and safely.

5. Nowadays banks assuring their customer about Security and privacy

which gives confidence among customer, where banks safely
maintain the information of the customer without any kind of
leakage.

Challenges in Adopting Electronic Banking :

Now a day’s Electronic banking is a norm rather than an exception for
the banks. But in spite of it offers numerous assistance for the customer to
make banking easy and convenient but there are many challenges which
customers are facing in the adoption of Electronic banking. Some of the
challenges are as stated below:

1. Customers refuse to adopt Electronic banking service because of

Security threat Electronic banking frauds like spyware, Phishing,
internet theft Spamming etc. are still very much widespread.

2. Customers are having a threat of loss of private information due to

technical faults.
 38

3. Insufficient knowledge of using electronic banking and lack of

preparedness by customers and banks in
4. technological adoption.

5. Insufficient infrastructure for the setting up of Electronic delivery

networks

6. The bank's management, supervisor and governing authorities are

facing several challenges in adoption of E-banking.

7. The risk of revealing the financial information of the customers with

others hence Customers are having a fear of privacy issue.

8. Communication through an internet might not be the best base for

bank and customer relations as belief might partially be lost.
 39

CHAPTER - 4
Conclusion :-

Virtual banking is given a momentum for banks to provide quality service

through Information technology. We are moving towards a cashless society
with the help of digitalization and it is going to be strengthening the bank's
performance. Nowadays, banks have realized that the success of a banking
system without Information technology and it has expanded the role of the
banking sector in the economy. All the banking transactions can now be
processed quickly and easily with the help of Electronic banking. As can be
observed from data given above, be it ATMs deployment, issuing of debit
and credit card, transactions relating to NEFT, RTGS, Mobile banking
(Values and Volumes) we can observe the growth in recent years. Our
young generation has accepted the changes of the banking system for more
as a convenience more than a challenge.
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CHAPTER - 5
BIBLIOGRAPHY
I collected the given information from google .

REFFERENCE
 WWW.rbi.org.in