PROJECT REPORT

(Submitted for the Degree of B.Com.Honours in Accounting & Finance under the
University of Calcutta)

Title of the Project

POPULARITY OF ONLINE BANKING IN KOLKATA

Submitted By

Name of the candidate : BIKASH MONDAL

C.U. Registration No. : 058-1111-0527-21
C.U. Roll No. : 211058-21-0039
College Roll No. : 20210736
Name of the College : Vijaygarh Jyotish Ray College

Supervised By

Name of the Supervisor : DR. MITASI DAS PYNE

Name of the College :Vijaygarh Jyotish Ray College

Month & Year of Submission

July,2024
 Supervisor’sCertificate

This is to certify that Bikash Mondal a student of B. Com (Honours) in Accounting &

Finance of Vijaygarh Jyotish Ray College under the University of Calcutta has worked

under my supervision and guidance for his project work and prepared a project Report

with the title”POPULARITY OF ONLINE BANKING IN KOLKTA” which he is submitting is

his genuine and original work to the best of my knowledge.

Place:Kolkata Signature:

Date: Name: DR. MITASI DAS PYNE

Designation: AssociatedProfessor
Name of College: VIJAYGARH
JYOTISH RAY COLLEGE
 Student's Declaration

I,here by declared that the Project Work with the title“POPULARITY

OF ONLINE BANKING IN KOLKATA ”

Submitted by me for the partial fulfilment of the degree of B.Com(Honours)

in Accounting and Finance under the University of Calcutta is my own

original work and has not been submitted earlier to anyother university for

the fulfilment of the requirement for any course of study.

I also declare that no chapter of this manuscripts in whole or in part has

been incorporated in this report from any earlier books or work done by

other or by me. However extract of any literature which has be enused

for this Report has been duly acknowledged providing detail of such

literature in this reference.

Place:Kolkata Signature:

Date: Name: Bikash Mondal

RegistrationNumber:058-1111-0527-21
C.U.RollNumber:211058-21-0039
ACKNOWLEDGEMENT

First of all I would like to express my special thanks of gratitude to

“Prof.DR. MITASI DAS PYNE”,for his continuous and deliberate
discussionon the topicand indeterminable burden taken by him in helping
me through out conducting the project.

While conducting the Online Banking Project, innumerable people have

given me various suggestionsand opinions while conducting the Online
Banking Oriented Project. I have tried to incorporate all those suggestions
which are really relevant in preparing my final report.I think it is essential to
thank all those who have contributed and helped me throughout the duration
of the project.

Finally,I am thankful to all the people who willingly responded to the

questionnaire and their contribution has been in valuable.This
project would not have been completed without their participation.
 INDEX
SERIAL PAGE
CONTENTS
NO. NO.

CHAPTER1 INTRODUCTION
1.1BackgroundofTheStudy 1-2
1.2NeedFor Study 3
1.3LiteratureReview 4-5
1.4Objectives 6
1.5ResearchMethodology 7-8
1.6LimitationsofThe Study 9
1.7ChapterPlanning 10
CHAPTER2 CONCEPTUALFRAMEWORK
2.1Introduction 11-13
2.2NationalandInternationalScenario 14-17
CHAPTER3 ANALYSISANDFINDINGS
3.1ProfileofTheSurvey 18
3.2DataAnalysisandInterpretation 19-34
3.3Findings 35-36
CHAPTER4 CONCLUSIONSANDFINDINGS
4.1 Conclusion 37-38
4.2Recommendations&Suggestions 39-41
BIBLIOGRAPHY 42
ANNEXURES -

(iv)
 CHAPTER1

Introduction

BACKGROUNDOFTHESTUDY

NEEDFORSTUDY

LITERATUREREVIEW

OBJECTIVES

RESEARCHMETHODOLOGY

1.5.1 DataCollectionTools
DataCollectionType

AreaofStudy

SamplingMethodology

StructureofQuestionnaire

LIMITATIONSOFTHESTUDY

CHAPTERPLANNING
 INTRODUCTION

1.1BACKGROUNDOFTHESTUDY
The main purpose that banks have been serving since their inception is keeping
our money safe for us. While keeping our money safe, they also let usearn a
certain amount of interest on the money deposited with them.
Traditional banks have been doing this, and internet banks continue the same
function. The only difference is in the way the transactions are made. Online
banking has been around for quite a few years.Infact,it was introduced in the
1980 sand has come a long way since then.The last decade has seen a profuse
Growth in internet banking transactions.Though it began in the1980s; it was only
in the mid-nineties that internet banking really caughton.What attracts customers
to internet banking is the round the clock availability and ease
Of transactions.Studies estimate that internet banking still has along way to go.
There are several banks that have customers who prefer banking in the
traditional ways. Statistics released by the FDIC show that only 40% of the
banksinIndiaofferinternetbankingfacilitiesworthmentioning.Allthe others may
have an online presence but do not have enough online transactions to justify
their presence on the internet.
Sometime in 1980s, banking and finance organizations in Europe and United
States started suggestive researches and programming experiments on the
conceptof'homebanking'.Initiallyinthe80'swhencomputersandInternetwere not so
well-developed, 'home banking' basically made use of fax machines and
telephones to facilitate their customers.

1|Page
In 1950, the Diners Club issued their credit card in the United States. The Diners
Club credit card was invented by Diners Club founder Frank Mc Namara as a
way to pay restaurant bills. A customer could eat without cash at any restaurant
that would accept Diners Club credit cards .Alaterinnovation was the bank credit
card system, in which the bank credits the account of the merchant as sales slips
are received and assembles the charges to be billed at the end of the period to the
cardholder, who pays the bank either in monthly installments with interest or
“carrying charges” added. The first national plan wasBankAmericard, begunona
statewide basis by the Bank of America in California in 1958, licensed in other
states beginning in 1966, and renamed VISA in 1976–77.
FirstOnlineBankinginIndia:
ICICIbankisthefirstonetohaveintroducedOnline-Bankingin1994foralimited range
of services such as access to account information, correspondence and, recently,
funds transfer between its branches. ICICI is also getting into e-trading, thus
offering a broader range of integrated servicesto the customer.
TheformationofNationalPaymentsCorporation(NPCI)intheyear2009hasset
the stage for development of retail electronic payments which offers enormous
opportunityto movetowardscashlessand lesscash society.UsingTtest,withan
objective to assess the contribution of NPCI, we find that significant difference
exist in products such as electronic clearing, ECS (Debit),National Electronic
Funds Transfer (NEFT), and Card Products when we compare the period after
formation of NPCI and before formation of NPCI.

2|Page
1.2.NEEDFORSTUDY

To know the customers perception towards the Online Banking Service

andIaminterestedinOnlineBankingthat’swhyIhavetakenthistopic.
Someoftheattractive features which influenced me to choose this topic
are:
SecurityAssured
Since online banking is one of the major services offered by banks, it is also a
highlysecureplatform.Banksgenerallyuseencryptiondevicestoensurethat all client
information is protected and there is no security breach. It ultimately provides
you security from online frauds and account hacking.
Access:NoProblem
Evenifitisthelastdayofyourbillpaymentandyouareminutesawayfrombeing
leviedapenalty,youcanrelyon onlinebanking.Onlinetransactionscanbe performed
anytime of the day from the convenience of your home.
ConvenienceGuaranteed
Whileeasyaccessisoneofthemanybenefitsofonlinebanking,italsomakes banking
highly convenient. The need of waiting in long queues at the bank is
completely eliminated. Moreover,with mobilebankingoption availablefor most
banks, transfers and payments have become easier.
MonitorYourAccountsClosely
Lastly, budgeting and managing your account is made simpler when you have
accesstoe-bankingandagoodbudgetingapplicationatyourfingertips.Real time
expenses can be monitored while making purchases or estimating your monthly
savings and expenses.

With all these benefits and many more adding to the list,it is difficult to opt out
of using facilities like online banking for smoother banking transacti
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 LITERATUREREVIEW
This section is the literature review; the purpose of this section is to investigate
past publications by different authors. This will include textbooks,articles and
online publications that could enlightened the readers more on the area of banking
and internet security measures, the standard and policy used for internet banking
security in India and more importantly, the synergistic impact of online banking
and information security in Indian banking sector.

Since the invention of information technology and the internet,people of different

caliber are using it to improve the services efficiently and effectively.In the retail
banking sector, most of the businesses have moved majority of their physical
transaction processes to online transaction process. A good example of this, I own
an account with the Bank of Baroda bank for over 2 years now and I cannot
remember the last time I went in to my branch to transact business.Most of my bill
payment and transfersared one through my online banking.

Here,some reviews about online banking are discussed below:

Vijay M. Kumbhar(2011)

In his research paper “Factors Affecting the Customer satisfaction In E-

Banking: Someevidences FormIndianBanks”.Thisstudyevaluatesmajor
factors affecting on customers’ satisfaction in e-banking service settings.

4|Page
 RakeshHM&RamyaTJ(2014)
Intheirresearchpapertitled“AStudyonFactorsInfluencingConsumer Adoption of
Internet Banking in India” tried to examine the factors that influence internet
bankingadoption.Inthemarketingprocessofinternet bankingservicesmarketing
expert should emphasize these benefits its adoption provides and awareness can
also be improved to attract consumers’attention to internet banking services.
PoojaMalhotra&BalwinderSingh(2009)
Intheirresearchpaper“TheImpactofInternetBankingonBankPerformanceand
Risk:TheIndianExperience”.ThepaperdescribesthestateofE-bankinginIndia and
discusses its implications for the Indian banking industry.
Alian(2008)
In this day and age, many organizations are implementing e-business in their
businessesasapartoftheirbusinessstrategytostaycompetitiveinthe business
environment. Together with the development of online facilities, banking
environmentshouldprovideonlinebankingservicestotheircustomerstorun
theirdailyoperations.

Particulars Years
2019 2020 2021 2022 2023
Internet
90,421,849 122,970,441 155,575,944 213,339,324 243,198,922
Users
NewUsers 29,486,779 32,548,593 32,605,503 57,763,380 29,859,598
Average 36,452,770
Growth 0% 36% 72% 136% 170%

Table1(IncreasinginternetusersinIndia);Source:(www.InternetLiveStats.com)

5|Page
 OBJECTIVES
Thepurposeofthisresearchistoinvestigateandunderstandthefactors affecting
adoptionofonlinebankingservicesinIndia.Withthisintension,thereportis aim to
achieve the following objectives:-
 To identify what is most /lease influencing factor(s) thatcontributes to the
acceptance of online banking. To find out why customers adopted Internet
Banking.
 TofindoutcustomerssuggestionsforimprovingInternetBankingfacility.
 Toidentifyhowcustomersaretakingpropersafetyprecautionswhile doing
InternetBanking.
 FindthecustomerssatisfactionrelatingtoOnlineBankingservice.Tostudy
theawarenessofInternetBankingamongthecustomersofdifferentBanks.
 To highlighting on the security problems of Online-Banking and howto
reduce the security issues with the help of security control tools.
 ToanalysethetrendofOnline-Bankingwiththehelpofprimarydata.
 To analyse the present e-banking scenario concerned with ATM, Internet
banking,Mobilebanking,creditcard-debitcard,fundtransferandothere-
banking services.
 To examine the impact of ATM, Internet banking, Mobile banking and
Creditcardsoncustomersatisfactionbyanalysingtheproblemsfacedby the
customers.

6|Page
 RESEARCHMETHODOLOGY
DataCollectionTools:
Collection of data is done through primary as well as secondary sources. Primary
dataiscollectedthroughthestructuredquestionnairesandinterviewsandsecondary data
are collected through Internet and other published information.
Once the findings are finalized by a research, suggestions should be made forthe
betterment of enterprises. The data collected from questionnaire was tabulated
andanalyzedsothattheresultcanbepresentedassimpleas possible.Therearea number
of ways like pie-charts, graphs, etc.

1.5.2DataCollectionType:
PrimarySource:Thestudyisbasedonbothofprimaryandsecondarydata.For the
purpose of case study primary data have been collected from the people
throughphonecalls,socialnetworkanddirectinterviewfromthem. Secondary
Source:Thesecondarydatahavebeencollectedfromdifferentarticles&
websiteresourcessuchaswww.wikipedia.com,www.google.co.inandsomany
others.Wehaveusedsimpletables,graphsandpie-chartsto analysis&present the
data. Apart from this I also followed my supervisor’s instructions to finish the
project.

AreaofStudy:
The study is limited in the area of online banking services used by different
people of Kolkata of different age and gender group. It has been noted that allthe
answerswereaccordingtothepersonalexperienceoftherespondents whileusing the
different online banking features and they were rational.

7|Page
 SamplingMethodology:
The data are collected from the people who have a bank account in the leading
banksofIndiaandbasicallythefivebankshavebeenconsidered.Thebanks which were
considered are:
 ICICIBank
 StateBankofIndia
 PunjabNationalBank
 AxisBank
 HDFCBank
ThePrimarydatahavebeencollectedthroughasurveywithapre-tasted
structured QUESTIONNAIRE on a sample of randomly selected 50 people in
which some are college students, business persons, service holders, working
womenandsomepeoplewhobelongto20-60agegroupandthedata collected from these
people are used to analysis the trend of Net-Banking.

1.5.5StructureofQuestionnaire:
The questions were structured and rational. The questions were asked inorder
togetallthenecessaryinformationandtoseethattherespondentscouldanswer them
with case.

TypesofQuestions:

1- RatingScaleQuestions

2- MultipleChoiceQuestions

8|Page
 LIMITATIONSOFTHESTUDY
Whilecompletingtheprojectseverallimitationshavebeenfaced.Thepresent study
has been suffered from the following limitations:
 Asmallsamplesizeof50respondentsistakentoprimarydataanalysis.SoI cannot
draw proper inferences about the respondents from this sample size.
 Duetonon-availabilityofdataforsomebanks,thecomparisonscouldn’tbe
drawn perfectly.
 Dueto shortageoftimeIhavenot been ableto makeadepthstudy onthe topic.
considerthesefactors.
 IcouldnotcollectdatafromoutsideofKolkatathoughwiththehelpof
internet I connected with few people outside Kolkata, but it lacked
personal touch of direct investigation.
 Thisstudyisbasedontheprevailingrespondents’satisfaction.Buttheir
satisfactionmaychangeaccordingtotime,fashion,needetc.andIdidn’t

 Development of an attitude of lethargy of the respondents i.e. some of their

answers may not be correct cause the respondents might have some work to
do which forced them to answer as quick as possible without reading the
question properly.

9|Page
 CHAPTERPLANNING
Chapter1:Introduction
Inthischapter,I wantedto conveythe briefoutlook ofmy topicwithmajor points
that will provide a direction to my topic.
Chapter2:ConceptualFramework
Theglobalandnationaldynamicsareanalysedhere.
Chapter3:AnalysisandFindings
The questionnaire is collected and graphically analysed toget areal picture ofthe
discussed topic.
Chapter4:ConclusionandRecommendations
Thischapterhighlightsstrengths, weaknesses,opportunitiesandthreatswhich
broughtouttherecommendationsforfurtherdevelopmentofmyresearch area.
Bibliography:
Thedetailsofbooks,websitesandreportswithwhosehelpthisprojecthas

been prepared.
Annexure:
Thevariousannexuresareincorporatedinaccordancewiththeuniversityguidelines.

10|Page
 CHAPTER2

ConceptualFramework

INTRODUCTION
BriefDefinition

2.1.2.FeaturesofOnlineBanking

2.1.3DisadvantagesofOnlineBanking
2.1.4AdvantagesofOnlineBanking
NATIONALANDINTERNATIONALSCENARIO

Indian Scenario

ProductsandServicesOffered

InternationalScenario
CONCEPTUALFRAMEWORK

INTRODUCTION
The development and advancement of electronic banking (e-banking) had raised
the level competitiveness in the market for financial products and services. More
and more banks and other financial institutions adopted such technology to
improveservicequalityandenhancecustomersatisfactionandloyalty.Despitethe
increasing number e-banking users globally, little is known on how this
technology can help banks to retain customers.
Furthermore, it is only recently that researchers have started to understandthe
importanceofconsumers'continueduse.Therefore,itistheaimofthis paperto
propose a framework based on an extensive review of current literature in
related areas of e-banking domain and continued use. The mainbenefits of the
proposedframeworkaretowardsunderstandingfactorsthatmayinfluencethee-
bankingcontinuanceusage.
BriefDefinition
Online banking in an electronic payment system that enables customers of a
financial institution to conduct financial transactionson a Website operated by the
institution,such as a Retail Bank, Virtual Bank, Credit Union or BuildingSociety.
Online Banking is also referred as Interned Banking, E-Banking, and Virtual
Banking and by other terms.
2.1.2.FeaturesofOnlineBanking
Online Banking facilities offered by various financial institutions have many
featuresandcapabilitiesincommon,butalsohavesomethatareapplicationspecific. The
common features fall broadly into several categories:
 Abankcustomercanperformnon-transactionaltasks
 Viewingaccountbalances
 Downloadingbankstatements,forexampleinPDFformat
 Viewingimagesofpaidcheques
 Orderingchequebooks
 Downloadperiodicaccountstatements
 DownloadingapplicationsforM-Banking,E-Bankingetc.

2.1.3DisadvantagesofOnlineBanking
Yes, online banking is generally secure, but it certainly isn’t always secure.
Identitytheftisrunningrampant,andbanksarebynomeansimmune.And
once your information is compromised, it can take monthsor even years to
correctthedamage,nottomentionpossiblycostingyouthousandsofRupees, as
well.

Some online banks are more stable than others. Not all online setups arean
extensionofabrick-and-mortarbank,someoperatecompletelyincyberspace, and
without the benefit of a branch that you can actually visit if need be.
Not all online transactions are immediate. Online banking is subject to the
same business-day parameters as traditional banking.Therefore, printing out
and keeping receipts is still very important, even when

2.1.4AdvantagesofOnlineBanking
It’s generally secure.But makesurethat thewebsiteyou’re using has a valid
security certificate. This lets you know that the site is protected from cyber-
thieves looking to steal your personal and financial information.
Youhavetwenty-four-houraccess.Whenyourbankclosed,youcanstillhave
access to your account and make transactions online. It’s a very convenient
alternativeforthosethatcan’tgettothebankduringnormalhoursbecauseof their
work schedule, health or any other reason.
Youcanaccessyouraccountfromvirtuallyanywhere.Ifyou’reonbusiness
triporvacationingawayfromhome,youcanstillkeepatrackonyourmoney and
financial transactions – regardless of your location.
Conductingbusinessonlineisfasterthangoingtothebank.Longtellerlines can
be time consuming, especially on a Pay Day. But online, there are no lines
to contend with. You can access your account instantly.

Figure1.ConceptualFrameworkofE-bankingatdifferentperspective.
 NATIONALANDINTERNATIONALSCENARIO
IndianScenario:
Introduction of technology in banking sector has enabled customers to avail the
bankingservicesatanytimeandanywhereintheformofATM,Mobile Banking,&
InternetBanking.Bankstodayoperateinahighlyglobalized,liberalized,privatized and a
competitive environment. In order to survive in this environment banks have to use
IT. Indian banking industry has witnesseda tremendous developments due to
sweeping changes that are taking place in the information technology. Electronic
banking has emerged from such an innovative development. The objective of the
presentpaperistostudyand analyze theprogress madeby Indian banking industry
in adoption of technology. The progress in e-banking in Indian banking industry is
measured through various parameters such as Computerization of branches,
Automated Teller Machines, Transactions through Retail Electronic Payment
Methodsetc.Wecanconcludethatinyearstocomee-bankingwillnotonlybe
acceptablemodeofbankingbutpreferredmodeofbanking.
From last two decades E-commerce has shown tremendous growth in Indian
service sector & banking sector is not exception to it where it is known as E-
banking. Now-a-days E-banking is the popular technology used by banks which
havebeendefinedinmanywaysbutinasimple terms,E-bankingistheprovision of
banking service through electronic channels and the customer can access the data
without any time and geographical limitation.
ATMwasthefirstwell-knownmachinestoprovideelectronicaccessto customers of
retail banks but later on in the same line Mobile banking & Internet banking
facilities was offered. Some Services offered by Indian Banks:(a.) Accessing
Accounts (Mini Statement / BalanceEnquiry), (b.) Paying Bills, (c.) Chequebook
request, (d.) Mobile recharging, (e.) Fund Transfer
Moderntechnologyisseenasapanaceaformostoftheillsthatthebanking sector faces
today. Even at present, India is a relative unbanked country as thecredit-to- GDP
ratio is one of the lowest inthedeveloping economies.The banking industry can kill
two birds with one stone that is with help of technology. Tremendous progress
took place in the field of technology which has reduced the world to a global
village and it has brought remarkable changes in the banking industry.
Tableno.2exhibitafewfactsandfiguresrelatedtointernet/electronic bankingto present
its current scenario. It shows evidence for ATM, POS (Pointof sale) and electronic
cards deployed in India as on March, 2018. Table also compared the data of
March, 2018 with March, 2012. It shows growth rate of these banking
channelsanditseemstobegreatinIndiancontext.

NoofChannels Growthin
TypeofElectronicChannels
March, 2019 March, 2023 Percentage
NoofATMsdeployed 95686 199099 108.07
NoofPOSdeployed 660290 1385668 109.65
NoofCREDITCARD 17653818 24505219 38.81
issued
NoofDEBITCARD 278282839 661824092 227.82
issued

Table2(ComparisonofATM,POSandelectroniccardsdeployedinIndia)
 ProductsandServicesOffered:
Opening up of economy in 1991 marked the entry of foreign banks. They brought
new technology with them. Banking products became more and morecompetitive.
Therewasneedfordifferentiationofproductsandservices.The ICICIBankkicked off
online banking in 1996. 1996 to 1998 marked the adoption phase, while usage
increased only in 1999, owing to lower Internet Service Provider (ISP) online
charges,increasedPCpenetrationandatech-friendlyatmosphere.Tocopewiththe
pressure of growingcompetition, Indian commercial banks have adopted several
initiativesande-bankingisoneofthem.Thecompetitionhasbeenespeciallytough for the
public sector banks, as the newly established private sector and foreign
banksareleadersinadoptionofe-banking.IndianBanksoffertotheircustomers
followinge-bankingproductsandservices: AutomatedTellerMachines(ATMs)
InternetBanking MobileBanking E-corners Telebanking Electronic
Clearing Services Electronic Clearing Cards Unified Payment Interface (UPI)
Door Step Banking Electronic Fund Transfer
Thethreebroadfacilitiesthate-bankingoffersare: Convenience-Complete your
banking at your convenience in the comfort of your home.No moreQs- there are no
queues at an online bank.24x7 service- Bank online services areprovided 24 hours
a day, 7 days a week and 52 weeks a year.
 InternationalScenario:
Internet Banking has presented regulators and supervisors worldwide with new
challenges. The Internet, by itsvery nature, reaches across borders and is, for this
reason, engaging the attention of regulatory and supervisory authorities all overthe
world.Theexperienceofvariouscountries,asfaras InternetBankingisconcerned, is
outlined in this chapter.

UnitedStatesofAmerica
In the USA the number of thrift institutions and commercial Banks with
transactionalWeb-sitesis1275or82%ofallBanksandthrifts.Approximately78%
ofallcommercialBankswithmorethan$5billionin
assets,43%ofBankswith$500millionto$5billioninassets,and10%ofbanks
under$500millioninassetshavetransactional Web-sites.Ofthe1275- thrifts
/commercialBanksofferingtransactionalInternetBanking,7couldbe
considered‘VirtualBanks’.10traditionalBanks haveestablishedInterned

Branchesordivisionsthatoperateunderauniquebrandname.Severalnewbusiness
process and technological advances such as Internet Telephone and Wireless
Communication channels and phones are emerging in the US market.A few Banks
have become Internet Service Providers (ISPs) and Banks may become Internet
portal sites and online services providers in the near future. Reliance on third party
vendorsisacommonfeatureofelectronicBankingventuresofallsizesanddegrees
ofsophisticationintheUS.ForretailsE-commerceintheUS,mostpaymentsmade
overtheInternetarecurrentlycompletedwithcreditcardsandareclearedandsettled
throughexisting credit card clearing and settlements systems.
 CHAPTER3

AnalysisAndFindings

PROFILEOFTHESURVEY

DATAANALYSISANDINTERPRETATION

3.3FINDINGS
 ANALYSISANDFINDINGS

PROFILE OFTHESURVEY
ForcasestudyasurveywasconductedfromNovember2022toJanuary2023for the
project “Online-Banking”. This survey was done on the basis of 50 respondents
from various sectors.
Mainly the objective of the research is to understand online banking user’s
behaviors’,opinions,preferencesandexpectations.Thequestionswere designed
insuchwaytocoveralltherelatingfields.Thefieldworkanddataanalysiswere
conductedbymeafterconsultingwithmysupervisorandwiththehelpofmy friends. I am
very much grateful to them.

DurationofSurvey 1-11-19to31-1-23

TargetPopulation PeopleofKolkatawithbankaccounts

SurveyMethod Directinterview,phonecallandsocialmedia
 DATAANALYSISANDINTERPRETATION
A. GenderBasisAnalysis:

GENDE FREQUENC PERCENTAG

R Y E
Male 40 80%
Female 10 20%
TOTA 50 100%
L

GENDER

Male,80%

80%

60% Female,20%

40%

20%

0%
Male Female

INTERPRETATION:

Data collected from 50 respondents who perform online banking and this is
represented by a column chart with male and female basis analysis. It is goodfor
thebanksasmostoftherespondentsareawareof theinternetbanking andallthe services
have enjoyed them being o
 B. AgeBasisAnalysis:

AGE FREQUENC PERCENTAG

GROUP Y E
Below25 16 32%
26-35 22 44%
36-45 4 8%
46-60 8 16%
TOTAL 50 100%

AGEGROUP

16%

32%
8% Below25
26-35
36-45
46-60

44%

INTERPRETETION:
Form the above table it is found that majority of the respondents (44%) falls under
theagegroupof26-35yearsfollowedby(32%)undertheagegroupbelow25years
respectively. Particularly young people use these services more.
C. EducationQualificationBasisAnalysis:

EDUCATIONAL FREQUENC PERCENTAG

QUALIFICATION Y E
Under Graduate 8 16%
Graduate 22 44%
Post Graduate 20 40%
TOTAL 50 100%

EDUCATIONALQUALIFICATION

PostGraduate 40%

Graduate 44%

UnderGraduate 16%

0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50%

INTERPRETETION:
From the above table it is found that majority of the respondents (44%) are
graduatedfollowedby(40%)arepostgraduateandremaining(16%)are under
graduate. It is noticed that majority of the respondents where educatedand
properly knew about the banking services offered by their banks.
 D. MonthlyIncomeBasisAnalysis:

MONTHLY FREQUENC PERCENTAG

INCOME Y E
LessThan5000 4 8%
5000-10000 7 14%
10000-20000 8 16%
20000-30000 13 26%
Above30000 18 36%
TOTAL 50 100%

MONTHLYINCOME

8% 14%
36%
16% LessThan5000
5000-10000
26%
10000-20000
20000-30000
Above30000

INTERPRETATION:
Among 50 respondents, 18 earned more than Rs.30000 per month i.e. (36%).
Whiletherewere4respondentswhoearnedlessthanRs.4000permonthi.e.(8%). So it is
concluded that people of all income group had a bank accountand used the online
banking facilities
 Question1.InWhichBankDoYouHaveAnAccount?

PREFERABLEBANK FREQUENC PERCENTAGE

Y
ICICIBank 8 16%
StateBankofIndia 12 24%
PunjabNationalBank 6 12%
AxisBank 9 18%
HDFCBank 10 20%
Others 5 10%
TOTAL 50 100%
INTERPRETATION:

PREFERABLEBANKS
30%

25%
24%
20%
20%
15% 18%
16%
10% 12%
10%
5%

0%
ICICIBank StateBankof PunjabNational AxisBank HDFCBank Others
India Bank

Among 50 respondents, 12 respondents have account in SBI i.e. (24%), 10

respondentsinHDFCBanki.e.(20%),9respondentsinAxisBanki.e.(18%),8in ICICI Bank
i.e. (16%), 6 in PNB i.e. (12%) and 5 in other banks i.e. (10%).
FromtheabovetableitisclearthatpeoplepreferStateBankofIndiamorethan the other
banks.
 Question2.DoYouPreferOnlineBankingOrOfflineBanking?

PARTICULAR FREQUENC PERCENTAG

S Y E
OnlineBankingUsers 43 86%
Offline Banking Users 7 14%
TOTAL 50 100%

PREFERENCEOFONLINEOROFFLINEBANKING

14%

OnlineBankingUsers
OfflineBankingUsers

86%

INTERPRETATION:
From the above table it is clear that most of the respondents prefer online
bankingservices.About86%respondentssupportonlinebankingservicesand only
14% respondent’s support offline banking services.
From this we can conclude that people are ready to accept new methods of
banking,sothebanksshouldmakemoreeffortsandincreasetheir infrastructure as
much as possible and focus on the needs of the customers.
 Question 3.HowFrequentlyDoYouUseOnline BankingServices?

USEOFONLINE FREQUENC PERCENTAGE

BANKING Y
Daily 12 24%
Weekly 19 38%
Monthly 10 20%
Occasionally 7 14%
Yearly 2 4%
Never 0 0%
TOTAL 50 100%

PERCENTAGEOFUSEOFONLINEBANKERS
38%
40%
35%
30% 24%
25% 20%
20% 14%
15%
10% 4%
5% 0%
0%
Daily Weekly Monthly Occasionally Yearly Never

INTERPRETATION:

Most people use the online services on a weekly basis i.e. (38%), while some
people tend to use it daily i.e. (24%). It is clear that people use the banking
servicesaspertheirrequirementassomepeoplealsouseitonyearlybasis which is very
rare
 Question4.HowMuchDoYouSpendForASingleOnline Transaction?

TRANSACTIONAMOUNT(IN FREQUENC Percentage

RS.) Y
0-1000 21 42%
1000-5000 12 24%
5000-10000 8 16%
10000-20000 6 12%
Above20000 3 6%
TOTAL 50 100%

AMOUNTSPENTINASINGLETRANSACTION
6%

12%
0-1000
42%
1000-5000
5000-10000
16%
10000-20000
Above20000

24%

INTERPRETATION:
From the above Doughnut chart, it is clear that people tend to use online
banking for smaller amount of transactions. As we can see that 42% of the
respondentsonlyspendlessthanRs.1000pertransaction.WhenIasked them the
reason for spending so less amount, they said that they don’t feelsafe spending
a huge amount of money online.
 Question5. WhatIsTheBestBenefitOfOnlineBanking?

BENEFITS FREQUENCY PERCENTAGE

24*7BusinessHours 16 32%
AllServicesAtHome 8 16%
TimeSaving 14 28%
EasyToUse 10 20%
Can’tSay 2 4%
TOTAL 50 100%

BENEFITSLIKEDBYCUSTOMERS
4%
20% 32%

28% 16%

24*7BusinessHours AllServicesAtHome TimeSaving EasyToUse Can’tSay

INTERPRETATION:

Most of the respondents (32%) felt that the “24*7 Business Hours” providedby
the internet banking is the highest motivating factor for an individual to use
internet banking andrest prefer Time Saving (28%),Easyto Use factors.Banks
needtobuildtheirinfrastructureattheutmostheightpossibleforthebetterment of
customer service.
 Question6.HowWouldYouRateTheOnlineServicesByYourBank?

PERCE PERCE
FUND ATM PERCE PA PERCE ONLI
NTOF NT OF
RATI NTOF NTOF NE
TRANS BANKI Y
NG BALA ONLINE
FER NG ATM BIL BILLS FIXE
NCE FIXED
BANKI LS PAYE D
ENQUI DEPOSI
NG D DEPO
RY T
SIT
Excelle 28 56% 16 32% 14 28% 6 12%
nt
Good 12 24% 23 46% 22 44% 9 18%
Averag 6 12% 8 16% 10 20% 26 52%
e
Poor 4 8% 3 6% 4 8% 9 18%
TOTA 50 100% 50 100% 50 100% 50 100%
L

RATINGOFONLINESERVICESBYBANKS
60% 56%
52%
50% 46% 44%
40%
32% Excellent
30%
28%
24% Good
20% 18% 18%
20% 16% Average
12% 12%
8% 8% Poor
10% 6%

0%
FUNDTRANSFER ATMBANKING PAYBILLS ONLINEFIXED
DEPOSIT

INTERPRETATION:
Theabovecolumnchartshowsthedifferentratingsandperspectiveofpeopleat the
different online banking services offered by bank. People are happy with it.
Question 7. Does Your Bank Educate You About The Online BankingServicesBeing
Offered?

EDUCATIONABOUT THE FREQUENC PERCENTAG

SERVICES Y E
Yes 38 76%
No 12 24%
TOTA 50 100%
L

EDUCATIONABOUTTHEBANKINGSERVICES

No
24%

Yes
No

Yes
76%

INTERPRETATION:

Among 50 respondents38people(76%)saidthattheirbank educated themabout the

several online banking services and on the other hand 12 people (24%) said that
their bank did not educate them about their net banking services. I believe that
all the users must be informed about the services offered by bank for the
prosperity of the banks itself
 Question8.AreYouAwareOfTheSecurityThreatsAndFraudsIn Online
BankingAndFamiliarWithTheMethodsOfSecuredOnlineTransactions?

AWARENESS ABOUT FREQUENC PERCENTAG

FRAUD Y E
Yes 35 70%
No 12 24%
Can’tSay 3 6%
TOTAL 50 100%

AWARENESSABOUTFRAUD
80%
Yes,70%
70%

60%

50%

40%

30%
No,24%
20%
Can’tSay,6%
10%

0%
Yes No Can’tSay

INTERPRETATION:

It is good to see that most of the users have knowledge about frauds and security
issues of net banking but even with the increasingly knowledge of internet
bankingsomerespondentsareunawarethemethodstakenupbythebanktosecure each
and every transactio
 Question 9. Do You Think Online Banking Is Better Substitute Of
Traditional Banking System?

ONLINEBANKING
AS A FREQUENCY PERCENTAGE
SUBSTITUTE
Yes 39 78%
No 8 16%
Can’tSay 3 6%
TOTAL 50 100%

ONLINEBANKINGASASUBSTITUTE

Can’tSay 6%

No 16%

Yes 78%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90%

INTERPRETATION:
ItwasnotedthatmostoftherespondentspreferredusingInternetBanking overthe
traditional banking system. Thus, Internet Banking has a bright futureahead.Ifthe
banks continue to upgrade their systems on a regular basisonline banking shall
overcome the load on the employees of the bank as
onlinebankingisbasedonthe‘self-service’concept.
 Question 10. Which Factor Do You Think Responsible For Non-
Accessibility Of OnlineBankingByMajorityOf PeopleInYour Area?

REASONFORNON- FREQUENC PERCENTAG

ACCESSBILITY Y E
InadequateATMService 6 12%
LackOfComputer&MobileFacility 12 24%
LackOfAwareness 21 42%
RuralArea 5 10%
LackOfAccess 6 12%
TOTAL 50 100%

REASONFORNON-ACCESSBILITY
LackOfAccess 12% InadequateATM
Service
12%
LackOfComputer&
RuralArea
10% MobileFacility
24%

LackOfAwareness
42%

INTERPRETATION:
From the above table it is clear that people think that ‘Lack of Awareness’ is
major reason for non-accessibility of online banking. Where 24% of
respondentsaidthat‘LackofComputer&MobileFacility’isareasonfornon-
accessibility of online banking.
 Question 11. In Your Opinion Which Online Service Should Be
Upgraded Promptly For Better Services In Future?

UPGRADATIONOF FREQUENCY PERCENTAG

SERVICES E
FundTransfer 2 4%
BillPayment 6 12%
ATMService 5 10%
Loans&CreditService 18 36%
OnlineFixedDeposit 19 38%
TOTAL 50 100%

VOTEFORUPGRADATIONOFSERVICES

40% 38%
36%
30%

20%

12%
10% 10%
4%
0%

FundTransfer BillPayment ATM Service Loans&CreditService OnlineFixedDeposit

INTERPRETATION:
Fromtheabovetableitis clearthatupgradationoftheserviceslike‘Online Fixed
Deposit’ (38%) and ‘Loans & Credit Service’ (36%) need major attention on
upgradation by the banks. Previously when I asked the respondents to rate
‘Online Fixed Deposit’ the all rated it poor so it really needs to be modified.
 Question12. HowWould YouRateTheOverallOnlineBanking Services?

Rating Frequency Percentage

Excellent 6 12%
Good 29 58%
Average 10 20%
Poor 5 10%
Can’tSay 0 0%
TOTAL 50 100%

RATINGOFONLINEBANKINGSERVICE
Poor Can’tSay Excellent
10% 0% 12%

Average
20%

Good
58%

Excellent Good Average Poor Can’tSay

INTERPRETATION:
The satisfaction level of the people with the online banking services of their
bankshasamixedreview.Thismayduetomultiplereasons.Moreover29 people
choose ‘Good’ option. Online banking has a good review overall whichindicate
that people are welcoming this new method of banking.
 FINDINGS
Themajorfindingsoftheprimarysurveyare:
 Majority ofpeoplewithbanks accounts areaccountholders of SBI and
HDFCbank,whileAxisbankalsoattractsagoodamountofcustomers.
 Among 50 respondents, 43 preferred to use online banking which
indicatethatpeoplearereadytoacceptthemodernwayofbanking.
 Peopletendtouseonlinebankingservicesonweeklyanddailybasis.
 The respondents made it clear that the amount they spend in a single
transaction in usually less than Rs. 1000. Which shows that people are
scaredofonlinefraudsandcyber-thieveswhichforcethemtotransactin
lowamount.Butmajorityofthebankshavesecuritycertified websitesand
applications which protects us from these type of risks.
 Respondentssaidthat‘24*7BusinessHours’and‘TimeSaving’arethe
major reasons due to which they prefer online banking.
 Itisclearthatpeoplethinkthat‘FundTransfer’(56%Excellent Ratings)
service of online banking is the best feature it has while ‘Online Fixed
Deposit’(52%AveragesRatingsand18%PoorRatings)featureneedstobe
upgraded and modified.
 38respondentsoutof50saidthattheirbankshaveeducatedthem about
the online banking features. For the bank’s prosperity it is
necessary that all their customers must know about this feature.
 70% of the online banking users (35 respondents) said that they were
awareofthesecuritythreatsandfraudsofonlinebanking,whichis good. But I
believe that all the online banking users must know about this threats and
be secure from such threats.
 Among 50 respondents39said thatonlinebankingis abettersubstituteof the
traditional ways of banking. Thus it is to be noted that people are
somehow happy that they don’t have to rush to their banks at the time of
need and online banking has given them such a platform.
 Itwasfoundthatmajorityofpeoplewerenotabletouseonlinebanking
services because of ‘Lack of Awareness’.
 Onlinebankingserviceslike‘OnlineFixedDeposit’and‘Loans&Credit
Service’ are needed to be upgraded as people are facing some problems
with these two features.
 Moreover6(12%)oftherespondentswerehighlysatisfiedwiththe online
banking features, 29 (58%) of the respondents were happy with
the services whereas 10 (20%) of the respondents were not so happy
withtheonlineservices,theybelievedthatthereisalotofscopeforthe
prosperityofbanksinthisfieldandwantedthattheseservicesmustbe
upgraded. 5 (10%) of the respondents were extremely disappointed
withtheonlinebankingfeaturesoftheirbankwhichshowsthatbanks

needtofocusmoreontheneedsofthe customers.
 CHAPTER4

ConclusionAndRecommendations

CONCLUSION

RECOMMENDATIONS&SUGGESTIONS

RecommendationstoBanks

RecommendationstoUsers
 CONCLUSIONANDRECOMMENDATIONS
CONCLUSION
InacountrylikeIndia,thereisneedforprovidingbetterandcustomized services tothe
customers. Banks mustbe concerned about the attitudes of customers with regard
to acceptanceof internetbanking.The importance of security and privacy for
acceptance of internet banking has been noted in many earlier studies and it was
found that people claim that they have knowledge about security issues but
they have no clear idea about all kind frauds. The present study shows that
customersaremorereluctanttoacceptnewtechnologiesormethodsthatmight contain
little risk.Hence,banks should design thewebsite and applicationina structured way
to avoid security and trust issues.
Peoplearenotconfidentenoughtowhethertorelycompletelyononlinebanking.
Thereishesitancyintheirmindswith regardstopreference.Sotheyuseboththe online
and offline banking.
Duetoshortageoftimedatacan’tbecollectedformalltypesofpeople. The
study was conducted with the help of students, service holders and
business men etc.
ThestudyrevealsthatATMBANKING,BILLPAYMENT,ONLINESHOPPING and
ONLINE RECHARGE etc. are performed by so many respondents but it does not
reflect that ONLINE DEPOSITS & LOANS are used by the respondents.
Onlinebankinghas agolden futurein the upcoming generationwereevery user
knows how to operate online features of baking but the only problem isthey are
confidentenough,sothemajordutyofthebanksmustbetomake peopleaware of their
services and hence they will get an proper alternative for the traditional way of
banking. And yes the banks must upgrade their features as best as possible for
their own benefit.
Afterthisstudy Iamclearthat,banks in Indiahavewidereach,mostofthe people tends
to use bank account for savings as it is great medium where one can keep their
money safely without any risk. After the introduction of online banking, people
have welcomed this new method of banking and now-a-days most of the account
holders use these online services on daily or weekly basis.The only
concern is transaction on huge amount of money, where people tendto use the
traditionalwaysofbankingasthereissomehesitancyinthemind oftheusers.So
thebankhastoplaythisimportantrolewhereithastocome upandspreadproper
awareness about online banking.
 RECOMMENDATIONS&SUGGESTIONS
Wecanseethetimeischangingandwearenowacceptingtechnologybut thereis still a lot
of perceptual blocking which hampers thegrowth itsnormaltendency of
technology, that why the growth of internet banking is very primitive in nature.

RecommendationstoBanks:
 BanksshouldobeytheRBInormsandprovidefacilitiesasperthe norms. But
these are not completely followed by the banks. Some of our respondents
complained that their bank do not give feedback of online transaction in
proper times. If customers do not get proper feedback then
theirinterestinonlineserviceswillbereduced.So banksshouldtakeproper steps
to build their feedback services.
 Internetbankingfacilitiesmustbemadeavailableinallbanksaswellasin all
branches.
 LinkfailureisabigproblemespeciallyinPunjabNationalBankandfor
thisreasonsomeimportantbusinessdealshavebeenhampered.So banks
should modified their software immediately.
 Nowsomebanksinstalledautomaticbalanceupdatemachinetoavoid
customer harassment but all banks should accept this system quickly.
 Banks should develop their services not only in town areas but also in
villageareas.BanksshouldinstallmoreandmoreATMsinbothurbanand rural
areas.
 Fair dealing with the customers is more preferable. The stuff should be
cooperative,friendlyandmustbecapabletounderstandtheproblemsofthe
customers.
 There is a another problem I faced atthe time of conductingthis surveythat
the respondents complained that there are so many ATM machinesin this
localitybutmost oftheATMshavenormallynocashatall.So bankshould extend
this service with regular cash filling.
 Banksshouldgivepropertrainingtocustomerstousenetbanking.
 Banksshouldalwaysupdatetheirsecuritysystemsandcreateatrustinthe mind
of customers towards security of their accounts.
 Banksshouldmaketheirsitesmoreuserfriendly.Customersshouldbe
motivated to use internet banking facilities more.
 Banksarenowusingtwofactorauthenticationi.e.passwordandOTP but they
should improve that and using three factor authentication because
hackerssometimesbreakthetwofactorauthenticationsystem.
 RecommendationstoUsers:
 Useanti-virusandmaintaintheintegrityofyourcomputerbyscanning
regularly for computer viruses.
 If using the same computer or mobile for online banking, e-mail and web
browsing,alwaysLOGOFFbankingsessionsbeforecheckinge-mailorweb
browsing. Computer viruses today are capable of installing themselves
through email links as well as web sites where just passivelymoving your
mouse over an image could be enough to install a script that grabs your
cached online banking credentials (user ID and password) and allows a
criminal to steal money from your account. Always keep your anti-virus
software up-to-date.
 Alwaysuseoriginaloperatingsystemwithoriginalcommercialanti-
virus which could be better than crack version or free sample.
 Donotrespondtoe-mailsrequestingaccountinformation,account
verification or banking access credentials such as usernames,
passwords,PINcodesandsimilarinformation.
 Installadedicated,activelymanagednetworkfirewalltolimitthe
potential for unauthorised access to your network or computer.
Consider installing a spyware detection program.
 Clear the browser cache before starting an online banking session to
eliminatecopiesofwebpagesthathavebeenstoredontheharddisk.
 Verifythesecuresession(httpsornothttps)inthebrowser.
 Avoidusingautomaticloginfeaturesthatsaveyourpersonaldetails.
 Createastrongpasswordbutthatwillbeeasytorememberwithout
writing it down anywhere.

Frequentlychangeyourpasswordcombinationforbetterprotection.
 BIBLIOGRAPHY

Primarydatahasbeencollectedfromdirectinvestigationwiththe respondents and I

have taken all the other information from the followingsites and books:

 Websites:
o www.google.com
o www.wikipedia.com
o www.sbionline.com
o www.rbi.org.in


o
o
o
Annexure-II QUESTIONNAIRE

Dear Respondent,
Bikash Mondal a student of vijaygarh jyotish ray college 6th semester b.com(HONOURS)is
currently doing aprojecton“POPULARITY OF ONLINE BANKING IN KOLKATA”.So I request
you to kindly fill the answers to the questions stated below and help me complete my project
successfully and Iassure you that the data given by you will be kept confidential.

I. IndividualDetails:
Name:

A. Gender: Male Female

B. AgeGroup: Below 25 26–35 36–45 46–60

C.Educational UnderGraduate Graduate

Qualification: PostGraduate

D.MonthlyIncome: LessThan5000 5000-10000

10000-20000 20000-30000
Above30000

II. Questions: [Tick Inside The Boxes]

Question1.Inwhichbankdoyouhaveanaccount?
ICICIBank StateBankofIndia PunjabNationalBank
AxisBank HDFCBank Others.

Question 2. Do you prefer online banking or offline banking?

Online Banking Users OfflineBankingUsers

Question3.Howfrequentlydoyouuseonlinebankingservices?
Daily Weekly Monthly Occasionally Yearly

Question4.Howmuchdoyouspendforasingleonlinetransaction?
0-1000 1000-5000 5000-10000 10000-20000 Above20000
Question5.Whatisthebestbenefitofonlinebanking?
24*7 Business Hours AllServicesAtHome TimeSaving EasyToUse Can’t
Say

Question6.Howwouldyouratetheonlineservicesbyyourbank?
FUND ATM PAY ONLINE
RATINGS FIXED
TRANSFE BANKIN BILLS
R G DEPOSIT
EXCELLEN
T
GOOD
AVERAGE
POOR

Question7.Doesyourbankeducateyouabouttheonlinebankingservicesbeingoffered?Yes No

Question8.Areyouawareofthesecuritythreatsandfraudsinonlinebankingandfamiliarwith
themethodsofsecuredonlinetransactions?
Yes No Can’tSay

Question9.Doyouthinkonlinebankingisbettersubstituteoftraditionalbankingsystem?Yes
No Can’tSay

Question10.Whichfactordoyouthinkresponsiblefornon-accessibilityofonlinebankingby majority
of people in your area?
Inadequate ATM Service Lack of Computer & Mobile Facility
LackofAwareness RuralArea LackofAccess

Question11.Inyouropinionwhichonlineserviceshouldbeupgradedpromptlyforbetter services
in future?
Fund Transfer Bill Payment ATM
ServiceLoans & Credit ServiceOnline Fixed Deposit

Question12.Howwouldyouratetheoverallonlinebankingservices?
Excellent Good Average Poor Can’tSay