INTERNET BANKING

By Cheguri Akshitha
1. INTRODUCTION
• An electronic payment system that enables customers of a bank or
other financial institution to conduct a range of financial transactions
through the financial institution's website.
• In a broad sense, it is the use of electronic means to transfer funds
directly from one account to another, rather than by cheque or cash.
• Internet banking, also known as online banking, e-banking or virtual
banking
• In internet banking system the bank has a centralized database that is
web-enabled.
1.1 Need for Study
• The main purpose of this study to get an overview of the internet
banking sector in the Indian economy and study as to how it has
helped change the banking habits of various individuals.
• To discuss the banker's view and opinion of the networking of E-
Banking service.
1.2 Objectives
• To study the awareness level of customers regarding E-Banking.
• To find out the frequency and the factors that influence the adoption
of E-Banking services.
• To understand the problems encountered by customers while using E-
Banking services(ATM, Phone banking, etc)
• To measure the satisfaction level of people
• To analyze the promotion of Banking Services through E-Banking from
the view of customer.
1.3 Scope of Study
• Responses from HDFC bank customers
• To study the profile of E-banking services by HDFC Bank Limited
• To know the Impact of internet banking(e-banking) & technology of
banks conducted at HDFC Bank Limited(Hyderabad- Chaitanyapuri)
1.4 Research Methodology
• Sampling technique: The sampling technique used for judgment is
CONVENIENCE AND JUDGEMENT SAMPLING.
• Sampling unit: Target population that will be sampled. In this study,
the sampling unit is the people of HYDERABAD.
• Sampling size: It indicates the numbers of people to be surveyed, the
sample size10 was restricted to 100 respondents.
• Period of study:
• Statistical tools: The data so collected will be analyzed through the
application of statistical techniques, such as bar graphs and pie charts
1.5 Limitations
• There were several time constraints.
• The study is limited to areas of Hyderabad only.
• The sample size of only 100 was taken from the large population for
the purpose of study, so there can be difference between results of
sample from total population.
• People were reluctant to go in to details because of their busy
schedules.
• Merely asking questions and recording answers may not always elicit
the actual information sought.
2. REVIEW OF LITERATURE
• Imtiaz Arif, Sahar Afshan, Arshian Sharif (2016) examined the
perception and intention feature of mobile banking adoption in
Pakistan. The results showed a negative effect of financial and privacy
on attitude towards mobile banking technology.
• Rahi. S., Yasin N. M., & Alnaser F. M. (2017) made a model to examine
effect of web site design, assurance, and customer service brand
image on intentions & brand image and customer service on
customer loyalty. The entire hypotheses were tested and supported
using structural model evaluation.
• Haider, M. J., Changchun, G., Akram, T., & Hussain, S. T. (2018) aimed to
study the gender effects on mobile banking adoption. Analysis revealed
that perceived financial cost was not significant for both males and females
to adopt in mobile banking.
• Pratheesh. N, Pretheeba P(2019) in their study “Internet Banking in
SrilankaCustomer concern” investigated the contributors of the customer
adoption of Internet banking in Savings Bank in Sri Lanka. study found that
the customers feel that they are benefited by using significant e banking
services.
• CHERUKUR, M.R.B. and RUBY, M.S., 2020 in the title “Study on electronic
banking towards customer satisfaction” The goal of the study is to
comprehend client satisfaction with online banking. The research was
analyzed using a sample of 205 people And found out that use and and
significance of electronic banking are the criteria that have the biggest
impact on Customer Satisfaction.
 3. THEORETICAL FRAMEWORK
Internet banking is a process that has evolved because of the
development of technology over the years. Technology gives banks the
opportunity to be closer to customers, to a broader range of services at
lower costs.
Internet banking (or E-banking) means any user with a personal
computer and a browser can get connected to his bank -s website to
perform any of the virtual banking functions. In internet banking
system the bank has a centralized database that is web-enabled. All the
services that the bank has permitted on the internet are displayed in
menu.
Any service can be selected and further interaction is dictated by the
nature of service. Once the branch offices of bank are interconnected
through terrestrial or satellite links, there would be no physical identity
for any branch. It would a borderless entity permitting anytime,
anywhere and anyhow banking.
Advantages-
• 24/7 Availability
• Cost effective
• Easy fund transfer
• Better Online Experiences
• Easy track of transaction history
Disadvantages-
• No Relationship with a Personal Banker
• Tech-Related Service Disruptions
• Deposit Restrictions
• Unauthorized access and fraudulent transactions
• Malware or phishing scams
4. INDUSTRY PROFILE
As per the Reserve Bank of India (RBI), India’s banking sector is
sufficiently capitalised and well-regulated. The financial and economic
conditions in the country are far superior to any other country in the
world. Credit, market and liquidity risk studies suggest that Indian
banks are generally resilient and have withstood the global downturn
well.
The Indian banking industry has recently witnessed the rollout of
innovative banking models like payments and small finance banks. In
recent years India has also focused on increasing its banking sector
reach, through various schemes like the Pradhan Mantri Jan Dhan
Yojana and Post payment banks
Schemes like these coupled with major banking sector reforms like
digital payments, neo-banking, a rise of Indian NBFCs and fintech have
significantly enhanced India’s financial inclusion and helped fuel the
credit cycle in the country.
The digital payments system in India has evolved the most among
25 countries with India’s Immediate Payment Service (IMPS) being the
only system at level five in the Faster Payments Innovation Index
(FPII).* India’s Unified Payments Interface (UPI) has also revolutionized
real-time payments and strived to increase its global reach in recent
years.
COMPANY PROFILE
The Housing Development Finance Corporation Limited or HDFC
was among the first financial institutions in India to receive an “in
principle” approval from the Reserve Bank of India (RBI) to set up a
bank in the private sector.
This was done as part of RBI’s policy for liberalisation of the
Indian banking industry in 1994. HDFC Bank was incorporated in August
1994 in the name of HDFC Bank Limited, with its registered office in
Mumbai, India. The bank commenced operations as a Scheduled
Commercial Bank in January 1995.
 As of March 31, 2023, the Bank had a nationwide distribution
network of 7,821 branches and 19,727 ATMs / Cash Deposit &
Withdrawal Machines (CDMs) across 3,811 cities / towns.
It’s first corporate office and a full-service branch at Sandoz
House, Worli were inaugurated by the then Union Finance Minister,
Manmohan Singh. As of October 9, 2018, the bank's distributions
network was at 4,805 branches and 12,260 ATMs across 2,657 cities
and towns. The bank also installed 4.30 Lacs POS terminals and issued
235.7 Lacs debit cards and 85.4 Lacs credit card in FY 2017.
5. DATA ANALYSIS & INTERPRETATION
• To analyses the usage of E-banking, study consumers’ perception
towards E-Banking
• To identify the major problems faced by the consumers while using E-
Banking services.
• The analysis has been done on the basis of structured questionnaire
and the sample size is 150