A Project Report On PENETRATION OF INTERNET BANKING AMONG IOB CUSTOMERS

Submitted in partial fulfilment of the award of the degree of MBA(Insurance & Banking) from AMITY UNIVERSITY, UP

Submitted By: Mr. Dilip Narayanan K MBA- Insurance & Banking 2011-2013

Industry Mentor Mr.Kaliappan Senior Manager Indian Overseas Bank

Faculty Mentor Mr.Rajesh Verma Faculty ASIBAS

Amity University Campus, I-1 Block, 1st Floor, Sector-125, Noida. Dist: Gautam Budh Nagar, U.P. - 201 303.

Penetration of Internet Banking among IOB customers

28th June 2012

INDIAN OVERSEAS BANK

Karaikal, Puducherry

UNDER THE GUIDANCE OF : DILIP NARAYANAN K (MBA INSURANCE AND BANKING) AMITY UNIVERSTIY, NOIDA MR. KALIAPPAN
IOB SENIOR MANAGER KARAIKAL

Project Report on Penetration of Internet banking among the IOB customers

In Partial Fulfilment of the requirement for the Award of the Degree MASTER OF BUSINESS ADMINISTRATION Cost Effective Management of outsour2011-2013
10th July 2012

Dilip Narayanan K Enrol No.-039 M.B.A (Insurance and Banking), 2011-13 Amity School of Insurance, Banking and Actuarial Science, Noida

DECLARATION
I, Dilip Narayanan.K doing MBA- Insurance and Banking from Amity University, Noida hereby declare that, the project entitled Penetration of Internet Banking among IOB customers has been done for the partial requirement for the completion of my degree. The project is the result of my bonafide work and source of literature used and all assistance received during the work has been duly acknowledged.

Place: Karaikal Date:

DILIP NARAYANAN.K

CERTIFICATE
This is to certify that Mr. DILIP NARAYANAN K from the Amity University, Noida has successfully completed his Summer Internship Project (SIP) on Penetration of Internet Banking among IOB customers with Indian Overseas Bank, Karaikal branch from 4th May 2012 to 30th June 2012 in partial fulfilment of MBA curriculum as prescribed by Amity University. During his training period, his work and conduct were found to be good. We wish him all success for his future endeavours.

Place: Karaikal Date: (Branch Manager)

ACKNOWLEDGMENT
These two months have been a great learning experience for me at Indian overseas bank. This short stint has given me deep insights into the banking industry and the customers perception about the banks. I would also like to thank my Director Mr. R.R. Grover without his help it wouldnt be possible to me to even visit a branch. I would like to thank my faculty guide Prof. Rajesh Verma, Faculty guide, Amity University, who gave me support whenever I approached him with my problem and gave me insight ideas about the project.

I express my sincere thanks to Indian Overseas Bank for allowing me to do the project work from this branch and I thank my project guide, Mr. Kaliappan, Senior Manager; his experience has helped me develop my competency further and has added to my general business sense. His vision of the problem gave me enough direction to bring out a meaningful result. I would also like to especially thank Mr. A. Ravindran, Chief Manager for his untiring contribution in helping me deliver in my project. He not only helped me with inputs required for my project but also got me acquainted with several awareness of the Banking industry. I would like to thanks all Employees of Indian Overseas Bank for making it a very pleasant experience and letting me have an opportunity to work in one of the best office environments. I am also thankful to various respondents whose responses were of great help in arriving at the findings. Finally, I would like to thank my family and friends who constantly helped me and gave me trust that I could work well on this project.

OBJECTIVE OF THE PROJECT

As per requirements under Master of Business Administration (MBA) under Amity University, it is mandatory for a student to undertake a project to gain the practical exposure about the organization and to submit a report in the Third semester. I have done the project report on the Penetration of Internet banking among IOB customers. This project has been completed in a span of two months. The project task was to know the awareness level of banking industry and to know the operation of the banking industry in day-to-day usage. For my project, I had more focus on the General banking and key focus on the customers of internet banking. I hope, after this process, banks will respond very carefully to the customer needs in terms of product development and delivery systems and my useful suggestions will bring some changes in the area of internet banking.

ABSTRACT
The major findings of the project includes there is good ample amount of awareness about the internet and the banking over internet. There is an inverse relationship between the ages of customers and the internet usage. If the age of the customer is less, the usage of the internet banking is more and vice-versa. The customers who are educated and have a bonding with the internet are the ones using the internet banking. Also the customers who are working in abroad or out of station use the net banking facility for the funds transfer. The customers who all are dealing in the business transaction avoid the use of internet banking even though they are well aware of it. The bank has a separate IT department in place and it is carrying out the further innovations and seeking the opportunities in the space of internet banking. The bank also focus emphasizes on the field of traditional banking by making their establishment in the rural areas. A study has been done on the detailed study of customers awareness about the Internet banking among the IOB customers. An effort has been made to know which product is more familiar among the customers. The main objective of this project was to make the customer aware of the internet banking and encouraging more users of the net banking facility. The wide scope of study was given inside.

Contents
1. Executive Summary 2. Banking Industry Background a. b. c. d. Early History Nationalisation List of public sector banks List of private sector banks 1

2 2 3 3

3. Internet banking a. b. c. d. e. f. Internet Banking Security tips for safe banking Security Tips for good password Advantages Disadvantages Services offered through Internet banking 4 5 5 6 6 7 8-9 10-11 12 13 13 14 14 14 14 15 16 18 19

4. SWOT Analysis 5. RBI guidelines for bank entering into Internet banking 6. Indian Overseas Bank a. b. c. d. e. f. g. h. i. j. History After Nationalisation Use of Technology Recognition Working Hours Head office Products and services Rates at IOB Overseas branches and representative offices Grievance Redressal mechanism

7. Review of Literature 9. Objective of the study 10. Expected contribution from the study

20-23 24 25

10. Research Methodology a. b. c. d. e. f. Hypothesis Research Design Sample Design Methods of data collection Tools for data collection Periods 26 26 26 26 26 26 27 28 39 39 41 42 43 44

11. Limitations of Study 12. Findings a. Interpretations b. Chi square 13. Comments from survey respondents 14. Recommendations 15. Conclusions 16. Bibliography 17. Appendix a. Questionnaire b. Glossary

Annexure i Annexure - ii

Executive Summary:
There is no doubt about the direction in which the Banking sector in India is headed today.

After the nationalisation of the fourteen banks in 1969 and seven banks over deposits 200 cores as capital in 1980, after the nationalisation of banks, the branches of the public sector banks rose to approximately 800% in deposits and advances took a huge jump by 11,000%

The above factor, contributed the significant share of the distracted pace and securing an advantage of the economy. Although, after the liberalization of the banks in the early 1990s made the way for many private and foreign banks offering a wide range of innovative products and competition. Later, the introduction of Information Technology into the banking industry changed the shape of the banking industry. At present, the banks offer various products such as NEFT, RTGS, EFT, Internet Banking and Mobile Banking One such service is the Internet Banking which gives the customer to sit at the convenience of their home and access their account. This project is aimed at finding the perception of Internet Banking among IOB customers. It is a better channel of communication with banks as the cost of transaction is much lower. INTERNET BANKING, even though it is purely on the hands of the customers, the customers are unaware of these facilities or not willing to use it because of the security concerns. Through this project report, steps towards making this process work a successful idea and ways to make it work more efficiently has been taken. Each of the requirements has been observed and details study of each has been done. Then after observation, the information so collected has been worked upon. On basis of the study, recommendation to make the process more effective and efficient has been formulated.

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History of Banking:
Banking in India originated in the first 18th century. The first banks were the general Bank of India, which started in 1786, and Bank f Hindustan, both of which are now defunct. The oldest bank in India is the State Bank of India, which originated in the The Bank of Bengal in Calcutta in June 1806. The Reserve Bank of India formally took on the responsibility of regulating the Indian banking sector from 1935. After Indias independence in 1947, the Reserve Bank was nationalized and given broader powers. The first fully Indian owned bank was the Allahabad Bank, established in 1865. However, at the end of late-18th century, there were hardly any banks in India in the modern sense of the term.

Nationalisation:
Banking System in India is dominated by nationalized banks. The nationalization of banks in India took place in 1969 by Mrs. Indira Gandhi the then prime minister. The major objective behind nationalization was to spread banking infrastructure in rural areas and make available cheap finance to Indian farmers. Fourteen banks were nationalized in 1969. Before 1969, State Bank of India (SBI) was the only public sector bank in India. SBI was nationalized in 1955 under the SBI Act of 1955. The second phase of nationalization of Indian banks took place in the year 1980. Seven more banks were nationalized with deposits over 200 crores.

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List of Public Sector Banks in India is as follows:

Allahabad Bank Andhra Bank Bank of Baroda Bank of India Bank of Maharashtra Canara Bank Central Bank of India Corporation Bank Dena Bank Indian Bank Indian Overseas Bank Oriental Bank of Commerce Punjab and Sind Bank Punjab National Bank State Bank of Bikaner & Jaipur State Bank of Hyderabad State Bank of India (SBI) State Bank of Indore State Bank of Mysore State Bank of Patiala State Bank of Saurashtra State Bank of Travancore Syndicate Bank UCO Bank Union Bank of India United Bank of India s Vijaya Bank

List of Private Sector Banks in India is as follows:

Private sector banking in India received a fillip in 1994 when Reserve Bank of India encouraged setting up of private banks as part of its policy of liberalization of the Indian Banking Industry. Private Banks have played a major role in the development of Indian banking industry. They have made banking more efficient and customer friendly. In the process they have jolted public sector banks out of complacency and forced them to become more competitive.

Axis Bank Catholic Syrian Bank City Union Bank Dhanalakshmi Bank Federal Bank HDFC Bank ICICI Bank IDBI Bank IndusInd Bank

ING Vysya Bank Jammu & Kashmir Bank Karur Vysya Bank Kotak Mahindra Bank Lakshmi Vilas Bank South Indian Bank Tamilnadu Mercantile Bank Yes Bank

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Internet Banking:
Internet banking (or E-see banking) means any user with a personal computer and a browser can get connected to his bank website to perform any of the virtual banking functions. In internet banking, the bank has a centralized database that is web-enabled. All the services that the bank has permitted on the internet are displayed as a 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. Using internet banking, one can avail following facility such as View information about account and transactions Added facility such as giving instructions, requests, applications to the bank Transferring funds from one account to another The working group of RBI has classified the Internet banking into three following aspects such as: Information Only System: It contains information like interest rates, branch location, bank products and their features, loan and deposit calculations are provided in the banks website. There is no interaction between the customer and bank's application system. No identification of the customer is done. Electronic Information Transfer System: The system provides customer- specific information in the form of account balances, transaction details, and statement of accounts. The information is still largely of the 'read only format. Identification and authentication of the customer is through password. Fully Electronic Transactional System: This system requires high degree of security and control. It comprises technology covering computerization, networking and security, inter-bank payment gateway and legal infrastructure.

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Security Tips for safe banking:

1) Access your bank website only by typing the URL in the address bar of your browser. 2) Do not click on any links in any e-mail message to access the site. 3) Immediately change your passwords if you have accidentally revealed your credentials. . 4) Do not be lured if you receive an e-mail/SMS/phone call promising reward for providing your personal information or for updating your account details in the bank site. 5) Change your Internet Banking password at periodical intervals. 6) Always check the last log-in date and time in the post login page. 7) Avoid accessing Internet banking accounts from cyber cafes or shared PCs. 8) Having the following will improve your internet security: i) Newer version of Operating System with latest security patches. ii) Latest version of Browsers (IE 7.0 and above, Mozilla Firefox 3.1 and above, Opera 9.5 and above, Safari 3.5 and above, Google chrome, etc.) iii) Firewall is enabled. iv) Antivirus signatures applied v) Scan your computer regularly with Antivirus to ensure that the system is Virus/Trojan free.

Tips for good password:

1. Make your password as long as possible. 2. Include punctuation marks and/or figures. 3. Mix up capital and lowercase letters. 4. Include similar looking substitutions, such as the number zero for the letter 'O' or '$' for the letter 'S'. 5. Create a unique acronym. 6. Do not use words, geographical names, or biographical names that are listed in standard dictionaries. 7. Do not use passwords that are easy to spot while you're typing them in. Passwords like 12345, QWERTY (i.e., all keys right next to each other) should be avoided.

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Advantages:
1. Eliminates the usage of paper 2. Saves time, money 3. No need to stand in queue 4. Pay bills, taxes, book tickets 5. Can open 24x7 6. Can submit online queries

Disadvantages:
1. Learning difficulties 2. Identity confirmation 3. Security concerns 4. Inadequate minimum recommendation level of systems. 5. Technical breakdowns 6. Phishing, key logger attacks

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Services offered through IOB net banking (E-see banking)

1. Balance summary 2. Last five transactions 3. Enquiry of cheques 4. Bankers cheques request 5. Transfer money to any bank accounts (Insta-pay) 6. Direct taxes 7. Indirect taxes 8. College fees for students studying at SASTRA 9. Utility bills like insurance, mobile 10. Tamilnadu electricity bills 11. Recurring deposit instalments 12. Loan instalments 13. IOB credit card dues 14. Prime Ministers National Relief fund 15. NEFT/RTGS transfer 16. Change password 17. Online statement at months end 18. Prepaid cards 19. Book rail tickets

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SWOT ANALYSIS
It is a tool that identifies the strengths, weaknesses, opportunities and threats of an organization. The method of SWOT analysis is to take the information from an environmental analysis and separate it into internal (strengths and weaknesses) and external issues (opportunities and threats). Once the results are arrived, it gives us to analyse the detailed study of progress to be taken for an effective action. The SWOT analysis of internet banking will help to get a clear cut idea about this product. It will help to further enhance it.

Strengths
Information around 24x7 days Accuracy of banking transaction Easy to manage Reduced costs Very wide coverage area Better B2B relationships Integrated customer base Multi-functional jobs

Weakness
Chance of unauthorized data access Continual changes of technology Reputational risk due to poor functioning of competitors Round the clock, technical service should be active More organizational commitment needed Cost to develop and upgrade

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Opportunities
Increase the brand value Global expansion Being competitive with global banks Up-to date information about new products Outsourcing of jobs Vast going of Internet usage including mobile phones

Threats
Security risk of hacking systems Phishing alerts Chance of more cross-border transaction that increases risk Legal risks Implementation of RBI guidelines with respect to changing demands

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RBI guidelines for banks venturing into Internet Banking:

The RBI has issued the following guidelines to the banks in respect of net banking facility, The RBI has set up a working group and these group has emphasized on three aspects of I-Banking such as (i) Technology and security issues, (ii) Legal issues, (iii) Regulatory and supervisory issues.

Technology and security issues

1. Banks should designate a network and database administrator 2. Banks should have a security policy duly approved by the Board of directors 3. Banks should introduce logical access to data, systems, application, software, utilities, telecommunication lines, libraries, system software etc. 4. At the minimum, banks should use proxy server type of firewalls so there is no direct communication between internet and banks software. 5. It should use Secured Socket Layer and 128-bit encryption for transit of secure data like passwords if Public Key Infrastructure is not exists 6. Unnecessary services such as FTP should be disabled. 7. All computer accesses, including message logged should be recorded. Security violations to be reported. 8. The information security officer and information security auditor should undertake periodic penetration test of the systems. 9. Banks should have proper infrastructure and schedules for back-up of data. 10. Security infrastructure should be tested before normal operations. 11. All applications should have proper recording facilities for legal purposes.

Legal issues
1. Accounts can be opened via online but only after completing physical verification and identification of the customer. 2. The records should be authenticated as per Information Technology act, 2000 3. The bank is responsible for any loss of data of customer due to hacking and improper maintain of system. 4. In Internet Banking, stop payment services are very few, so customers should be notified prior. 5. The COPRA act, 1986 applies to the customers as well

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Regulatory and supervisory issues

1. All banks which is to use transactional facility should obtain prior approval from RBI that includes business plan, analysis of cost and benefit, operational arrangements like technology adapted, business partners, third party service providers and control procedures. 2. Banks will report to RBI any failure/breach of security systems 3. The guidelines issued by RBI on Risks and controls in Telecommunications and computers is equally applicable to Internet banking 4. Banks should develop outsourcing guidelines to manage risks arising out of third party service providers 5. With the increasing popularity of e-commerce, banks should set-up Inter banks payment gateways 6. Connectivity between gateway and computer system of banks should be achieved through leased line network (not internet). 7. Banks should mandatory disclosures information of Risks, Responsibilities, Liabilities to customers of doing Internet banking 8. Hyperlinks from bank website should be confined only to those portals which have payment arrangements or sites of their subsidiaries or principals.

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History: Established on 10th February 1937 by Mr. M. Ct. M. Chidambaram Chettyar, leader in banking, insurance and industry areas, IOB started its operations in domestic and overseas simultaneously. At the time of inauguration, it opened three branches in Karaikudi, Chennai and Rangoon in Myanmar. Since, IOB aimed at encouraging overseas operations, it opened a new branch in Singapore and Penang. It was the first bank to venture into consumer credit by launching Personal Loan. In 1964, IOB made into the process of computerization by connecting inter-office. At the time of Independence, IOB has over 38 branches in India and 7 overseas branches. Its Deposits stood at 6.64 crores and advances at 3.23crores at that time.

After Nationalisation: IOB was nationalised with 14 other banks in the year 1969. At the time of nationalisation, it had over 208 branches operating and over 156 corers. It had 20 out of 30 branches operating overseas. Since after nationalisation, it was emphasized to open its branches in rural parts of the country. IOB had to windup five of its Malaysian branches and leads to creation of United Asian Bank Berhad in which IOB had 16.67% of paid-up capital. The bank sponsored three Regional Rural Banks namely Puri Gramya bank, Pandiyan grama bank, Dhenkanam grama bank etc in the year 1995. The bank set up a separate computer policy and planning department to look after the process of computerization, develop their own software and to train the staffs regarding the use of the computer. In 1979, IOB opened a foreign currency banking unit in the Free Trade zone in Colombo. In 1999, IOB started STAR services for the speedy realisation of the outstation cheques, now it has over 14 STAR centres and one controlling office. In 2000, IOB engaged in an initial public offering (IPO) that brought the government's share in the bank's equity down to 75%. In 2001 it acquired the Mumbai-based Adarsha Janata Sahakari Bank, which gave it a branch in Mumbai. It took over the Bank of Tamilnadu in the year 1990 and in 2007 it took over the Bharat Overseas Bank. Then in 2009 IOB took over Shree Suvarna Sahakari Bank, which was founded in 1969 and had its head office in Pune. In the year 2010, Malaysia awarded a commercial license to India International Bank in which IOB has a stake of 35% with various other banks.

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Use of Technology: IOB started a website in the month of February 1997 and got the autonomous status during 1997-98. The banks IT department has developed a new software, which is used to connect all the branches and its e-see banking (internet banking) is a govt. Recognised one and it is acceptable for paying taxes online. Its international VISA Debit card is accepted all over the world. During 1999, it implemented the process of paying online MTNL bills for the ABB card holders. IOBNET connects central office with regional office. Mobile Banking under messaging facility was started as test and trial basis in Ahmadabad and Baroda and later expanded to all the areas.

Recognition: In 1999, IOB got the ISO 9001 certificate for its computer policy and planning development. In 2000-2001, bagged NABARD award for credit linking the highest number of Self Help Groups among the banks in Tamilnadu. In 2001, Institute for Development and Research in banking technology conferred the best award for banking technology. In 2009, LIC awarded IOB, the Bhima award for excellence in insurance industry. In 2010-2011, IOB has been awarded the First Prize for in-house Hindi magazine "Vani".

Working Hours: The bank working hours is from 10.00 am to 04:30 pm.

Head office: The bank head office is located at No.763, Anna salai, Chennai - 600002

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Products & Services: Personal Banking i. ii. iii. iv. v. vi. vii. viii. ix. x. xi. Savings Bank Current account Term deposits Retail loans Home loans and mortgages Depository services IOB Fine Gold International VISA services Any branch banking Multi city cheque facility Insurance and mutual fund

Corporate Banking i. ii. iii. Rural i. ii. iii. iv. IOBs commitment for social causes Agricultural short time loans Financial inclusion Agri business consultancy Micro small and Medium enterprises (MSME) IT & ITes BPO Cash management services IOB STAR

NRI Accounts i. ii. iii. iv. v. vi. vii. viii. ix. Non-resident ordinary (NRO) Resident foreign currency account (RFA) Foreign currency non-resident account (Banks) NRI home loan scheme NRI remittances Remittances procedures Tracking cell Forward cell IOB NRI shield

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x. Forex i. ii. iii. iv.

IOB Expo gold card

SWIFT centres Authorized dealer branches Forex collection services Overseas cash

Government Business i. ii. iii. iv. v. vi. vii. E-payment of direct taxes E-payment of indirect taxes Pension payment scheme Sales tax collections Provident fund scheme 1968 8 percent savings taxable bond scheme Senior citizen scheme 2004

Rates at IOB:
Deposit Accounts NATURE RATE OF INTEREST NORMAL ACCOUNT SENIOR CITIZEN Rural Semi Urban Urban MINIMUM BALANCE

1. Savings Bank A/c. A. Domestic a. With cheque book facility b. Without cheque book facility c. No Frills Account B. Non Resident a. NRO b. NRE 4.00 4.00 4.00 4.00 4.00 4.00 4.00 4.00 4.00 4.00 500.00 100.00 5.00 500.00 100.00 5.00 1000.00 500.00

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NEFT Type of transaction NEFT- INWARD NEFT-Outward Up to Rs. 1 lakhs Above Rs. 1 Lakhs up to Rs. 2 lakhs Above Rs. 2 Lakhs Rs. 17/Rs. 29/Nil Rs. 6/Service Charges (Rs)

RTGS

Type of transaction RTGS INWARD

Service Charges (Rs) NIL Time of Settlement at RBI( w.e.f 01.10.2011) 9:00 to After 12:00 to After 12:00 hrs 15:30 hrs 15:30 hrs Rs. 28/Rs. 56/Rs. 29/Rs. 57/Rs.34/Rs. 62/-

RTGS-Outward

From Rs. 2 lakhs up to Rs. 5 lakhs Above Rs. 5 Lakhs

Cheque Book Issue

Issue of Cheque BooksSavings Accounts Issue of Cheque Books Current Accounts

i. ii. iii. i. ii.

Rs.2.55 per cheque - MICR Centres Rs.1.55 per cheque - Non-MICR Centres One cheque with 25 leaves free Rs.3.05 per cheque - MICR Centres Rs.2.00 per cheque - Non-MICR Centres

Base rates

Type of Loan

Repayment over 1 year up to 5 years Repayment over 5 years up to 10 years Repayment over 10 years

Amount up to Rs. 30 Lakhs Spread over Interest Rate Base Rate 0.00 10.75 0.25 0.50 11.00 11.25

Amount above Rs. 30 Lakhs Spread over Interest Rate Base Rate 0.25 11.00 0.50 0.75 11.25 11.50

The revised interest rates on Housing Loans linked to Base Rate shall be as under with effect from 01.08.2011

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Overseas Branches and Representative Offices:

1) Colombo Main Branch 2) Hong Kong Main Branch 3) Seoul Branch 4) Singapore Branch 5) Bangkok 6) Tsimsha Tsui Branch, Hong Kong 7) Remittance Center, Singapore 8) Overseas Representative Offices i) China ii) Malaysia iii) Dubai iv) Vietnam 9) Specialised NRI, Chennai

Today, IOB has more than 2200 branches all over the country, 1152 ATMs and over 25626 staffs working. It has over 16 million customers and business mix of 2.5 lakhs crores. The bank is headquartered at Chennai, Tamilnadu, India. IOBs progress is well rounded with mid-corporate sector, SME, rural initiatives and financial inclusion. It is the only bank to offer in-house software operations for its delivery channels. In the year 2011, it had celebrated Platinum Jubilee celebrations. It has paid up capital and reserves of over 932493.20 (in lakhs) and the net profit was over 107254.27 (in lakhs).

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Grievances Redressal Mechanism

In Indian Overseas Bank

Step 01:
Contact our Branch Manager where you have your account over phone or Register the Complaint in the Complaint Register available with Branch Manager. You will get the resolution within 7 days.

Step 02:
If the resolution given by the Branch does not meet your requirement you may write to the Regional Manager or send an email. You will receive the response within 7 days.

Step 03:
If the Complaint is not resolved by the Regional Manager, you may write or send an email to the General Manager, Customer Service Dept. being the Nodal Officer, Public grievances at Central Office. You will receive the resolution within 7 days.

Step 04:
Even after having followed the above steps, if are not satisfied, you may approach Banking Ombudsman constituted by RBI under Banking Ombudsman Scheme-2006.

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Review of Literature:
Internet banking has turned into an arms race between nancial institutions and public network attackers, but with the authentication schemes presented in this article, banks can potentially take a clear lead. Both solutions offer high security against common attacks. From a user perspective, the main difference between the two is that the one-time password scheme supports mobility whereas the certicate-based one is more convenient. With the use of Java Card, however, its possible to integrate both solutions on one smart card, thus providing the best of both worlds. UBS Wealth Management and Business Banking, Zurich, has used the short-time password solution since 2002 and currently counts more then 500,000 users. Despite its inevitable impact on user convenience, the majority of UBS e-banking customers right from the beginning perceived it as a signicant security enhancement, compared to the scratch-list-based one-time password solution they were using before. As customers have become even more familiar with the solution, a recent internal market analysis reported an extremely high level of general customer satisfaction with the security but, more important, with overall efficiency and convenience as well. Euro pay MasterCard Visa (EMV) recently standardized a similar approach with EMV-CAP, its chip authentication program for secure credit-card payments over the Internet. UBS Wealth Management and Business Banking also piloted the certicate-based solution in 2004, with roughly 100 internal users: the missing readiness of the reader technology and the client PC software platform led to the decision of postponing the spread of this solution to customers. However, changing legislation and the eventually spread of e-IDs among customers makes this solution a highly attractive and valuable alternative for the future. SOURCE: http://www.zurich.ibm.com/pdf/csc/SecureInternetBankingAuthentication.pdf The result of this study shows that PU, PEU and PR are the important determinants of online banking adoption. This study meets the desired objective; but it suffers from one setback. The relatively small size of the sample limits generalization of the outcome of the study. This study was conducted to explore the factors influencing intentions to adopt IB services. As such, there is still room for further investigation into the adoption of IB services. The replication of this study on a wider scale with more IB customers and with different national cultures is essential for the further generalization of the findings. By using a longitudinal study in the future, we could investigate our research model in different time periods and make comparisons, thus providing more insight into the phenomenon of online banking adoption. SOURCE: http://www.iajet.org/iajet_files/vol.2/no.1/Internet%20Banking%20Adoption%20in%20an%20E merging%20Economy%20Indian%20Consumers%20Perspective.pdf

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THE UNDERLYING HYPOTHESIS of this work is that banking fraud cannot be eliminated without a dedicated, trusted security device. Stopping common forms of e-banking fraud is not sufficient to protect against the criminals. This investigated the possible avenues of attack on Internet transactions and showed that the traditional phishing attack is only a small part of the attack landscape. With reference to attacks which have been seen in the wild it was shown that these other avenues of attack are implementable by todays fraudsters. This categorized a number of current defensive schemes, showing that the reactive model of defence development at best combats specic threats and at worst is only partially successful against those threats. All the defences reviewed are vulnerable to at least one of the attack routes investigated earlier. Here they introduced a more robust scheme for authentication and authorization of online transactions. This works using a trusted device to create a very small trusted computing base, enabling secure communication with a bank without relying on the security of any of the intervening computers. This includes the computer which the customer is using to access the e-banking web site. The device forms a trusted path from the bank to the customer. The idea of a trusted path is key to this work. Most solutions at best provide a trusted path to the users computer (many do not even do this), however, general purpose computers are not themselves trustworthy agents of the users intentions. This has been seen through the many exploits and Trojans, some of which specically target Internet banking, to which general purpose computers are subject. SOURCE: http://www.cl.cam.ac.uk/techreports/UCAM-CL-TR-731.pdf The views of the Group were crystallized after several rounds of deliberations of members of both the Working Group and the Operational Group. The reports prepared by the three subgroups were discussed and assimilated in to this report. The report gives the views of the background leading to the formation of the Group, its composition, terms of reference and the approach adopted by the Group in finalizing its recommendations. International experience in ibanking, particularly with reference to USA, United Kingdom and other Scandinavian countries, who are pioneers in this form of banking. It also discusses different types of risks associated with banking in general and i banking in particular. Emphasis is given on normal risks associated with banking which gets accentuated when the services are delivered through Internet. Risks relating to money laundering and other cross border transactions are discussed. Technology and security standards are core concerns for Regulatory Authorities in relation to Internet banking. Emphasis is given on technology and security standards and policy issues rather than on products and technical tools. Another important regulatory concern is the legal environment in which i-banking transactions are carried out. It is of importance to identify gaps in the existing framework and to suggest changes required. The legal sub-group had made a detailed analysis of legal questions involved. Finally it deals with various control measures required to be adopted by banks to manage risks discussed in earlier chapters. Operational aspects like internal control, early detection system, IT audit, technical manpower, etc are also discussed. SOURCE: http://rbidocs.rbi.org.in/rdocs/PublicationReport/Pdfs/21595.pdf

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The findings show that intention to adopt Internet banking services can be predicted by attitudinal and perceived behavioural control factors, but not by subjective norms. The attitudinal factors that are significant include relative advantage; compatibility with respondents values, experience, and needs; trial ability; and risk. Although the findings show that perceived complexity has a negative relationship with adoption intentions, this relationship is not significant. One possible reason is that since Internet banking in Singapore is relatively new, most Internet users have yet to try it. As a result, they are unable to effectively assess the complexity of using such systems and the influence that such complexity may have on their intentions. Subjective norms, in the form of the influence of the Internet users consumer-relevant groups, are found to have no significant relationship with intention to adopt Internet banking. One possible reason is that relevant information is readily available from banks, thereby reducing the reliance of potential adopters on their friends, family, or colleagues for information about these services. Alternatively, the fact that Internet banking in Singapore is relatively new may mean that Internet users consumer-relevant groups have yet to try them out. As a result, they are unable to provide the necessary information and give knowledgeable recommendations. SOURCE:ftp://ftp.cba.uri.edu/classes/n_dholakia/Resources-MIS-IT-ECommerce/EBizEcommerce/Tan-Teo-Adoption-of-Internet-Banking.pdf The e-banking revolution has fundamentally changed the business of banking by scaling borders and bringing about new opportunities. In India also, it has strongly impacted the strategic business considerations for banks (including the PSBs) by significantly cutting down costs of delivery and transactions. It must be noted, however, that while e-banking provides many benefits to customers and banks, it also aggravates traditional banking risks. Compared to developed countries, developing countries face many impediments that affect the successful implementation of e-banking initiatives. In this paper, we have identified some such impediments in the Indian context and have suggested ways to overcome them in order to move forward with the wave of ebanking successfully. In India there is a major risk of the emergence of a digital divide as the poor are excluded from the internet and so from the financial system. Even today, the operational environment for public, private and foreign banks in the Indian financial system is quite different. Though there has been higher acceptance of technology by public sector banks, they are at a different level in the computerisation spectrum as compared to private and foreign banks. This has endangered their position in the immediate period due to the lack of adequate systems for customer and investor protection. PSBs are more susceptible to breaches of security and to disruptions in the systems availability and hence to reputational risk. E-banking in India has also created many new challenges for bank management and regulatory authorities, which originate from increased potential for cross border transactions and lack of adequate cross border supervision. Given the importance of the SMEs in India, there is a strongly felt need to mainstream this segment towards e-banking. But currently there is no commercial bank in India that has exclusively specialised in this segment and SMEs in India continue to have generic problems like inadequate quality data, asset covers, etc. However, there are ways to overcome AMITY UNIVESTIY, NOIDA 22

these obstacles and exploit trends in e-banking to derive the desired benefits. As regards the problem of a digital divide, there is a rich international experience from which India can learn many lessons and include the poor within the net of e-banking. As regards the PSB situation, they can rapidly change their work environment by attracting young specialists in critical functional domains and by creating a positive work culture that has all employees supporting organisational goals. For the security issues involved in e-banking, risk management principles recommended by the BIS should be implemented by PSBs on an urgent basis. Their board of directors and senior management should regularly review and approve key aspects of the security control process. The top management should ensure that their staff members have the relevant technological expertise to assess potential changes in risks. For this, they should accord a high priority to investment in staff training and technological infrastructure. As far as possible, PSBs should avoid contracting out operations to service providers, which makes them vulnerable to problems of these service providers. In the process of adoption of new technology, a major role has to be played by the internal banking experts who are not necessarily the technocrats. As regards the problem of selection of appropriate technology, PSBs in India can learn lessons not just from international experience but also from the mistakes made by domestic private players so as to avoid wastage. In the regulatory arena, in addition to aspects like privacy and security, the regulator should also examine banks business plan for e-banking more closely, especially if banks have outsourced critical functions to a third party. To avoid the risks involved in crossborder e-banking, India can make a gradual beginning, first by seeking benefits in the export of remote processing services in which it has a strong comparative advantage. In the case of SMEfinancing, it is strongly felt that after acquiring the necessary technical capabilities, PSBs are better situated to provide value propositions to SMEs given their comparatively extensive branching networks, close relationship with business clients and a good knowledge of their needs, requirements and cash positions. This actually offers them another growth channel unmatched by most private players. SOURCE: http://eprints.cscs.res.in/12/1/e_banking_epw.pdf

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Objective of the study:

The proposed study of this objective was to fulfil the following objectives: 1. To list the services available in Internet Banking. 2. To find out the awareness level of the IOB customers about the use of Internet Banking. 3. To find out whether there is any discrimination in relation to demographic variable (e.g. gender, age) 4. To find out the reason for use of Internet Banking. 5. To find the usage of which service is maximum in Internet Banking.

Expected contribution from the study:

i. ii. iii. iv. To know the interests and the awareness level of the customer of the Internet Banking To give a clear cut idea of what is Internet Banking to the customers mainly associated with a job To know what can be done in order to raise the level of Internet Banking in the banking sector To have a comparison between the bullock cart banking and the modern age banking industry

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Research Methodology
Hypothesis Case I: H0: No difference among the customers on the basis of age H1: Difference among the customers on the basis of age* Research Design: Exploratory Research Sample size and design: It is proposed to have the sample size of 160 respondents of customers who uses Internet Banking as the option. As geographical area to be covered is the Indian Overseas Bank, it is the Convenience Sampling. The consideration will be given to respondents to include all the categories of customers like people of various age groups and educational qualifications, working and non-working males and females, professionals, students and business class. A well structured questionnaire shall be designed and distributed to the target audience for collection of primary data. Personal Interaction shall be held with the Bank executives will also be held on various aspects of the research. Methods of Data Collection: Survey Tools for data collection: Questionnaire, Personal Interview Period: The primary data is proposed to be collected through various means of communications, i.e. in person, or questionnaire means between 18.05.2012 to 15.06.2012 the period and mode of collecting data shall be reviewed suitably at the appropriate times so as to make it meaningful and closest possible to the objectives set for the research study.

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Limitations of the study:

Time constraints:
The stipulated time was less and it was challenging one to collect the responses from the customers.

Sample size:
The sample size collected was from 160 respondents and it includes both the hard copy and the online questionnaire.

Accuracy:
It is difficult to know whether the respondents gave the correct response which doesnt lead to misleading information.

Data collection:
It was difficult to collect the data from all the customers, as many customers due to their busy schedule couldnt able to give their opinions. On an average, out of 20 customers i asked, only 2 to 4, answered it.

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Findings:
Youre Gender A. Male B. Female

Gender
Female 26%

Male Female

Male 74%

This chart gives the ratio of the customers who are accessing the bank.

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Age of customers A. B. C. D. 18-25 26-35 36-45 45-rest

Age of customers

45-rest 21% 35-45 14% 26-35 19% 18-25 46%

18-25 26-35 35-45 45-rest

The chart gives the age of the customers who are accessing the banking facility.

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How many years are you banking with IOB? A. Less than 1 year B. 1 to 3 years C. 3 to 5 years D. More than 5 years

Years banking with IOB

Less than 1 25% More than 5 38%

3 to 5 13% Less than 1 1 to 3

1 to 3 24% 3 to 5 More than 5

The diagram shows that the most of the customers have been operating IOB account for more than five years. And on the other side, the 25% comes from the new customers and indicates the bank is adding new customer base every year at a fast pace.

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What services are you using in this bank (tick which all is applicable?) A. Savings Bank B. ATM facility C. Cheque/DD/NEFT/RTGS D. Loans/advances E. Pension Funds F. Internet Banking (e-see banking) G. Bank assurance (IOB Jeevan, IOB Health care) H. Locker facility I. Gold coins (IOB Fine Gold)

Services using in Bank

180 160 140 120 Axis Title 100 80 60 40 20 0 Savings Bank Series1 157 ATM 145 Cheque/D Loans/ad D/NEFT/R vances TGS 89 27

Pension funds 9

Internet banking 64

Bank assurance 15

Locker facility 20

Gold coins 13

The chart gives the customers favourite products in the banks.

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How often do you visit the bank in a week? A. Less than 2 days B. 2 to 4 days C. 4 to 6 days D. Daily E. Never

How many times in a week, you visit bank?

Daily No response 2% 1% 4 to 6 9% 2 to 4 13% Never 41%

Never Less than 2 2 to 4 4 to 6 Daily

Less than 2 34%

No response

It is given that the nearly half percent of the people never comes to the bank and they prefer coming very rarely. And another 34% indicates they will visit bank at least for two times in a week, these customers are mainly the aged people, business men and rural customers.

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How often do you visit the ATM in a month? (Includes withdrawal and account summary) A. B. C. D. Less than 2 Less than 5 5 to 10 times More than 10

How many times in a month, you visit ATM?

No response 5% More than 10 8% Less than 2 5 to 10 24% Less than 2 30% Less than 5 5 to 10 More than 10 Less than 5 33% No response

The ATM has been become a hot spot for the customers in various aspects. The report indicates about 63% comes to ATM only twice a month and remaining people prefer to go to ATM besides there is capping of five transactions in other bank ATMs.

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How many times in a week do you open your email accounts? A. Opening Daily B. Only one time C. 2 to 4 times D. 4 to 6 times E. Not opening

How many times in a week open email?

One time 9% 2 to 4 8% Not opening 29% Other 40% Daily 43% 4 to 6 11%

Like ATM, email has become an important way of communication; here in this nearly 71% of people access their email within a week and 29% of people is not opening and it dont tend useful to them.

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Are you aware of the Internet Banking facility? A. Aware B. Not Aware

Are you aware of Internet Banking?

Not aware 16%

Aware Not aware Aware 84%

The internet is playing a key role in the every field like the banking. This indicates that the people of almost 84% are well aware of what is the internet banking and only 16% of the people are not aware of it completely.

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What facility are you using in the net banking? (Tick which all are applicable) A. B. C. D. E. F. G. Account summary Funds Transfer (e-cash home) Instant pay Online Bills Payment Cheque request Tax payments Internet enabled card transfer

Facilites using in Internet banking

120 100 80 60 40 20 0 Account summary Series1 94 Online Funds bills transfer payment 98 105 Instant pay 29 Cheque request 15

Internet Tax enbaled card payment transfer 35 15

Others 1

No response 27

These are the facilities available in the Internet Banking of IOB (e-see banking). The chart gives the clear indication that most people open the internet banking for the funds transfer. But on the other side, the online bills payment is on the rise.

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What facility are you using most in the net banking? (Tick any one) A. B. C. D. E. F. G. Account summary Funds Transfer (e-cash home) Instant pay Online Bills Payment Cheque request Tax payments Internet enabled card transfer

Most using
43 36 29 25

12 7 1 Account summary Online bill payment Funds transfer Instant pay Cheque request Tax payment 0 Internet enbaled card transfer Others No response 7

The chart gives the clear intention that most people use the internet banking for mainly paying the bills and transferring the funds. So, the Funds Transfer plays an important role.

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Does the IOB website opens faster and whether it is user friendly? A. Yes B. No

IOB website opens faster?

Other No response 2% 4%

Its good Its good 42% Its slow 52% Its slow Other No response

The majority of the people say that IOB website is opening slow and in both the cases have some people who dont know about the other banking website and checked the option according to their wish.

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Will you recommend using the net banking to your friends/family? A. Yes B. No

Will you recommend net banking to your friends?

No response 2% No, I will not 24% Yes, I will No, I will not No response

Yes, I will 74%

The answer for this question is well known before despite there is a surprise to know that many people preferred not to recommend use internet banking to their friends/family.

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Interpretations:
Gender wise-customer awareness of Internet banking users:
Users Male Female Total 99 35 134 Non-users 19 7 26 Total 118 42 160

Age wise-customer awareness of Internet banking users: Users 18-25 26-35 35-45 45rest Total 134 26 160 67 30 18 19 Non-users 6 1 5 14 Total 73 31 23 33

Chi-square:
The chi-square statistic compares observed values with predicted (or expected) values computed from a statistical model and hence evaluates the `goodness of fit' model. It is also known as Pearson's chi-squared test.

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H0: No difference among the customers on the basis of age H1: Difference among the customers on the basis of age Observed Frequency
Users 18-25 26-35 35-45 45-rest Total 67 30 18 19 134 Non-users 6 1 5 14 26 Total 73 31 23 33 160

Expected Frequency
Users 18-25 26-35 35-45 45-rest Total 61.1375 25.9625 19.2625 27.6375 134 Non-users 11.8625 5.0375 3.7375 5.3625 26 Total 73 31 23 33 160

Calculation
Observed Expected 5.8625 4.0375 -1.2625 -8.6375 -5.8625 -4.0375 1.2625 8.6375 Total (O-E)2 34.36890625 16.30140625 1.59390625 74.60640625 34.36890625 16.30140625 1.59390625 74.60640625 (O-E)2/E 0.562158 0.627883 0.082747 2.699463 2.897273 3.236011 0.426463 13.91262 24.44461

Degree of Freedom (R-1)(C-1) = (2-1) (4-1) = 3 Critical Value of chi-square @ 5% significance: 7.82 Therefore, we reject NULL Hypothesis and accept Alternative hypothesis. So, there is Difference among the customers on the basis of age who are using the internet banking.

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Comments from survey respondents:

Valuable comments only, provided here More protection, user friendliness, easy guide for first time users, higher variety of products. It would be great if they can bring money management systems IOB net banking lacks in features and has a very poor interface. Initially they were even lacking in basic SSL security which was soon rectified but it would be better to come up with some really good user friendly interface and additional features. Since I am a Student the bank manager told me that, I can't use the services. College students should be given this provision too. May it user friendly and try to bring in regional languages as well. In most of the website i could not find IOB in payment through net banking. So that I request IOB to have their banks transaction in the entire online paying website as if State Bank of India.

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Suggestions:
1. Banks can insist educated and royal customer to use the Internet Banking facility at the time of opening the account. 2. Banks can conduct awareness program in public places such as Malls, Movie halls, Railway station about the usefulness of internet banking. 3. Banks can issue special discounts to the customers who are using the internet banking. The transaction rates of internet banking should be lesser compared to convenient banking. 4. Banks can develop a demo website like the main site, for the new customer to know what is exactly about it. 5. Banks can tie up with various educational institutes to teach their customers about the internet banking as an add-on. 6. The website of e-banking should be user-friendly and step by step instruction should be present in it. 7. The IOB is having its presence in many colleges, so it can grab the students easily to use the internet banking and popularise the bank among the young customers.

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Conclusions:
The internet banking is heading towards a rapid pace of growth. The present survey indicates there is awareness about the internet banking, but still the customer is having some sort of blockade in their mind to use these services. This has to be cleared only by the proper education and building a trust in them. When we compare the email users with users of internet banking, it is more than half; if we can make the email users to avail the use of internet banking, it will be a major improvement. The bridge has to be built between the banks and customers for the use of internet banking. Many new unique products/services should be introduced that distinct the internet banking facility. Currently, the Debit/Credit cards are more popular to do the online transaction. Apart from that there are still lot of more of features available which should be made popularise with the customers, the present need is to create a marketing strategy for the awareness of the internet banking.

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Bibliography:
http://www.scribd.com/doc/13282604/Customer-Perception-Towards-Internet-Banking http://www.scribd.com/doc/41442330/IOB-2 http://www.scribd.com/doc/31035235/20/REVIEW-OF-LITERATURE http://www.scribd.com/doc/31035235/12/INTERNET-BANKING-IN-INDIA http://www.indianmba.com/Faculty_Column/FC933/fc933.html http://www.docstoc.com/docs/15875336/E-Banking-A-complete-Project http://rbidocs.rbi.org.in/rdocs/Publications/PDFs/78941.pdf https://mailattachment.googleusercontent.com/attachment/?ui=2&ik=3914f6dca0&view=att&th=137 3c04e8e175cf7&attid=0.1&disp=inline&realattid=f_h239fc7k0&safe=1&zw&saduie=A G9B_P_18Pn0vbZa02P0ks54HV6&sadet=1336888094659&sads=odZJfSd0eLmrmnQA3RV0Pulnq8w&sadssc= 1 http://rbidocs.rbi.org.in/rdocs/notification/PDFs/21569.pdf

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Appendix:
Questionnaire
1) Name: __________________________________________________ Occupation: _______________________________ 2) Your Gender A) Male B) Female Age: ______

3) How many years are you banking with IOB? A) Less than 1 year B) 1 to 3 years C) 3 to 5 years D) More than 5 years

4) What services are you using in this bank (tick which all is applicable?) A) Savings Bank B) ATM facility F) Internet Banking (e-see banking) C)Cheque/DD/NEFT/RTGS D) Loans/advances G) Bank assurance (IOB Jeevan, IOB Health H) Locker facility care)

E) Pension Funds

G) Gold coins (IOB Fine Gold) If Any other, Specify: _____________________________________________ 5) How often do you visit the bank in a week? A) Less than 2 days B) 2 to 4 days D) Daily E) Never

C) 4 to 6 days

6) How often do you visit the ATM in a month? (Includes withdrawal and account summary) A) Less than 2 B) Less than 5 C) 5 to 10 times D) More than 10 7) How many times in a week do you open your email accounts? A) Opening Daily B) Only one time C) 2 to 4 D) 4 to 6 E) Not opening 8) Are you aware of the Internet Banking facility? A) Yes B) No

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Kindly fill up the details below if your answer is yes or you are aware of it. 9) What facility are you using in the net banking? (Tick which all are applicable) A) Account summary E) Cheque request B) Funds Transfer (e-cash home) F) Tax payments C) Instant pay G) Internet enabled card transfer D) Online Payment Bills

If any other specify __________________________________ 10) What facility are you using the most in the net banking? (Tick any one) A) Account summary E) Cheque request B) Funds Transfer (e-cash home) F) Tax payments C) Instant pay G) Internet enabled card transfer D) Online Payment Bills

If any other specify __________________________________ 11) Does the IOB website opens faster and whether it is user friendly? A) Yes B) No If any other, specify ____________________________________________ 12) Will you recommend using the net banking to your friends/family? A) Yes B) No 13) What changes/ added facility do you like to see in IOB net banking? Write your comments............................................................................................................................................ ............................................................................................................................................................ .........................................................................................................................................

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Glossary:
1. IOB 2. RBI Indian Overseas Bank Reserve Bank of India is the apex bank of the country, which was

constituted under the RBI Act, 1934 to regulate the other banks, issue of bank notes and maintenance of reserves with a view to securing the monetary stability in India. 3. NEFT 4. RTGS 5. SB National Electronic Fund Transfer Real Time Gross Settlement Savings account is an account generally maintained by retail customers

that deposit money (i.e. their savings) and can withdraw them whenever they need. Funds in these accounts are subjected to low rates of interest. 6. CA Current accounts are maintained by the corporate clients that may be

operated any number of times in a day. There is a maintenance charge for the current accounts for which the holders enjoy facilities of easy handling, overdraft facility etc. 7. FCNR Foreign Currency Non-Resident accounts are the ones that are maintained

by the NRIs in foreign currencies like USD, DM, and GBP etc. The account is a term deposit with interest rates linked to the international rates of interest of the respective currencies. 8. NRE Non-Resident External accounts are the ones in which NRIs remit money

in any permitted foreign currency and the remittance is converted to Indian rupees for credit to NRE accounts. The accounts can be in the form of current, saving, FDs, recurring deposits. The interest rates and other terms of these accounts are as per the RBI directives. 9. Recurring Deposits These are also called cumulative deposits and in recurring deposit accounts, a certain amounts of savings are required to be compulsorily deposited at specific intervals for a specified period. 10. Fixed Deposits FDs are the deposits that are repayable on fixed maturity date along with the principal and agreed interest rate for the period. Banks pay higher interest rates on FDs than the savings bank account. 11. Time Deposit Time deposit is a money deposit at a banking institution that cannot be withdrawn for a certain "term" or period of time. When the term is over it can be withdrawn or it can be held for another term.

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12. Demand Deposit A Demand deposit is the one which can be withdrawn at any time, without any notice or penalty; e.g. money deposited in a checking account or savings account in a bank. 13. Internet Banking - Online banking (or Internet banking) allows customers to conduct financial transactions on a secure website operated by the bank. 14. ATM - An automated teller machine (ATM) is a computerised telecommunications device that provides the clients with access to financial transactions in a public space without the need for a cashier, human clerk or bank teller. 15. Cheque Book -A small, bound booklet of cheques. A cheque is a piece of paper produced by your bank with your account number, sort-code and cheque number printed on it. 16. Debit Card Debit card allows for direct withdrawal of funds from customers bank accounts. The spending limit is determined by the available balance in the account. 17. Credit Card - A credit card is one of the systems of payments named after the small plastic card issued to users of the system. It is a card entitling its holder to buy goods and services based on the holder's promise to pay for these goods and services. 18. Loan - A loan is a type of debt. In a loan, the borrower initially receives or borrows an amount of money, called the principal, from the lender, and is obligated to pay back or repay an equal amount of money to the lender at a later time. 19. OD - Over Draft is the loan facility on customer current account at a bank permitting

him to overdraw up to a certain agreed limit for a agreed period ,interest is payable only on the amount of loan taken up. 20. CBS Core Banking Solution 21. Bank assurance The sale of insurance and other products through banks

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