Department of Business Management, JCD Vidyapeeth, Sirsa

Reasons for not improving/popularizing mobile banking despite multifold increase in mobile registration and suggestions for increasing mobile transactions
Internship Report submitted to SBI in completion of the requirement of Summer Internship at State Bank of India

Submitted by: Mahesh Kumar Roll no: 1211310028 Submitted to: R. K. Jain Branch Manager SBI ADB Branch Bhuna

June 1st 2013 to August 10th 2013 1

State Bank of India ADB Branch, Bhuna Branch code:04508 Ifsc Code SBIN004508 Email id: Sbi.04508@sbi.co.in Ph.: 242240

DECLARATION CERTIFICATE

Certified that the summer internship project report Reasons for not improving/popularizing mobile banking despite multifold increase in mobile registration and suggestions for increasing mobile transactions is the bonafide work of Mahesh Kumar, 1211310028 2nd year in MBA of Department of Business Administration, JCD Vidyapeeth, Sirsa carried out under my supervision during 1 June 2103 To 10 August 2013.

Place: Sirsa Date:

Signature of Mentor R.K. Jain

ACKNOWLEDGEMENT
The satisfaction that accompanies the successful completion of any task would be incomplete without acknowledging the people whose ceaseless co-operation, constant guidance and encouragement crown all the effort with success. This report has been written after a lot of dedication and hard work through a whole duration of 10 weeks. Motivation and contribution of many people while writing this report cannot be left unnoticed. I am thankful to Ms Jamuna Lohia for providing me the opportunity to learn and understand in this esteemed organization. We are grateful to Mr. R.K. Jain and the whole SBI ADB Branch Bhuna Team, for the support and encouragement he provided during my project. I would like to thank my mentora under whose able guidance I completed the project and I appreciate their faith and confidence in my abilities to accomplish the project. Finally, I wish to thank the other banks executives, customers and non-working staff.

Contents
Student Profile ..............................................................................................................................6 INTRODUCTION .............................................................................................................................7 MOBILE BANKING ...................................................................................................................11 Mobile banking services insights and reports...................................................................15 Mobile Banking Services .....................................................................................................16 TELEPHONE BANKING .............................................................................................................17 INTERNET BANKING ................................................................................................................18 INTERNET BANKING SERVICES ............................................................................................18 AUTOMATED TELLER MACHINE (ATM) ...................................................................................19 PROFILE OF SBI BANK ..................................................................................................................21 List of Directors on the Central Board of State Bank of India (As on 06th February, 2013) ..21 EVOLUTION OF SBI ..................................................................................................................22 Establishment .....................................................................................................................22 Business ..............................................................................................................................23 Major change in the conditions ..........................................................................................24 Presidency Banks Act ..........................................................................................................25 Presidency Banks of Bengal ................................................................................................27 Imperial Bank ......................................................................................................................28 First Five Year Plan ..............................................................................................................29 TECHNOLOGY UPGRADATION ............................................................................................29 Branch Details .........................................................................................................................32 RESEARCH METHODOLOGY ........................................................................................................33 Rationale for the study ...........................................................................................................33 Objectives of The project ........................................................................................................34 Sampling Universe: .................................................................................................................35 Sampling techniques: ..............................................................................................................35

Sample size .............................................................................................................................35 Limitation ................................................................................................................................35 Period of Study........................................................................................................................35 DATA ANALYSIS AND INTERPRETATION......................................................................................36 FINDINGS AND RECOMMENDATION ..........................................................................................57 Findings ...................................................................................................................................57 Conclusion...............................................................................................................................59 Recommendations ..................................................................................................................59 QUESTIONNAIRE .........................................................................................................................60 BIBLIOGRAPHY ............................................................................................................................64

Student Profile

Photo Name Fathers Name Date of Birth Address email id Mobile no 18th December 1991 Naresh Cloth House Sadar Bazar Bhuna and Fatehabad Khurana1991@gmail.com 9050600373 Academics Computer Skills Current Internship 10 weeks in State Bank of India,ADB Branch Bhuna SSC(xth) - 66.60 HSC(XIIth) 66.60 Graduation(B.Com) 54.70 Post-Graduation(MBA) 62.20 till 1st semester (pursuing) MS Office Some other basic application Naresh Kumar Mahesh Kumar

CHAPTER-1 INTRODUCTION
Technology holds the key to the future success of every sector & this is true for banking sector as well. Internet, wireless technology and global straight-through processing have created a paradigm shift in the banking industry. The explosive growth of both the Internet and mobile and wireless technology is solely responsible for this. Mobile Banking has really evolved and is going to revolutionize the way the financial industry conducts business. Mobile banking is the evolutionary step after Internet banking. It is an additional service bolted on top of an existing solution, making access to services more immediate and reducing customer reliance on branch infrastructure or access to the Internet. Presently Mobile banking pilots and full-scale operations are being conducted across 12 states, and the entire ecosystem is being managed by the government with the help of the Reserve Bank of India, banks, leading telecom operators and technology implementation partners. Given that mobile phones in India have become affordable, wherein a user can now go mobile for as low as Rs. 1,500, mobile banking can be a powerful tool to bank the un-banked. Mobile banking is poised to become the big killer mobile application arena. The authors have made an attempt to understand the present growth, trends & future challenges for the technological revolution brought about by Mobile Banking in Banking sector in India. India has one of the most expansive banking systems in the world. A combination of scheduled commercial banks, Regional rural banks and specialized financial institutions cover a large section of society in India. Despite these focused efforts, it is estimated that close to 65 percent of the countrys population still falls in the unbanked category due to various reasons, including geographical isolation and lack of basic infrastructure. To overcome this issue banks along with telecom majors come up with a probable solution in form of Mobile Banking. Mobile banking, a symbiosis of technology and financial services, is the hottest area of development in the banking sector and is expected to replace the debit/credit card system in future. Mobile banking has the potential to bring a whole host of people that have no/little access to land lines/internet connections onto the electronic platform an innovative way to generate financial inclusion.

Mobile banking (also known as M-Banking, mbanking, SMS Banking) is a term used for performing balance checks, account transactions, payments, credit applications and other banking transactions through a mobile device such as a mobile phone or Personal Digital Assistant (PDA). The earliest mobile banking services were offered over SMS. With the introduction of the first primitive smart phones with WAP support enabling the use of the mobile web in 1999, the first European banks started to offer mobile banking on this platform to their customers Mobile banking has until recently (2010) most often been performed via SMS or the Mobile Web. Apple's initial success with iPhone and the rapid growth of phones based on have led to increasing use of special client programs, called apps, downloaded to the mobile device. After Internet Banking, Mobile Banking or M-Banking has become the buzz word in the industry. It's a fact that Internet Banking has given a boost and has shown a successful way to consider it as a good alternative procedure against physical branch banking. Now where ever you are, you can access your bank account and you can do lot more things like checking your account balance, transfer money to some other account, pay your utility bills online and so on, just by comfortably sitting at your home or office. But, the technical disadvantage of Internet Banking is, you have to have internet connectivity and a computer. Definitely it's not a big hindrance in US or Europe or in the other developed countries, but if one considers the developing economies, then it's a genuine problem and more specifically in the tier II cities. Banking is the one of the fundamental need of every human being in this earth, talking about these days banking has not only been the need of human but also to the various organization and trust, even the biggest money earning trust of India including Sri Balaji Trust and Shirdi Sai Trust are also using the bank services to take the proper care of the trusts money. The banking did not only refer to the institutional banking but also the exchange of money between individualsand organizations. The banking system in India is very vast and untouched yet this is the reason why there are so many possibilities of further growth are present. Because of the presence of the Private sector in the field of banking, it becomes mandatory for every bank to provide better customer services and value for money to get the maximum number of customers associated with it. In seldom with the above mentioned lines there had been a very huge amount of change in the basic work process of every of the bank, now by leaving the boundary of red tape ism the bank are working for the higher and higher customer satisfaction.
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Nothing is New Forever is a very good line in Wikkipidea.com about services, it means that none of the service is long lasting, launch of a new service is a typical issue lots of constrains like Budget, Risk level, Market potential etc has to be search about, thus continuously an organization tries to bring innovation in the particular service and by this means get a bit more time for being in competition with other. These days every of the bank is preparing itself to provide the best possible services to the customers weather public or private every of the bank is trying to attract the customer toward their own organization by various possible methods like advertisement, sponsorship of events, various types of further services like Railway ticketing, Internet Banking, Mobile Banking etc. The Internet Banking and Mobile banking are one of the very new concepts in the field Banking, these are far better than the traditional concept of banking where one had to wait several hours standing making queue inside the bank premises. This is another step in anywhere banking service provided by the banks. State bank of India is the pioneer of Mobile Banking in India; this is the first bank to launch several other services like Internet banking and even ATM cards which could be popularly known by the name of plastic Money. Mobile Banking transactions in India RBI Operative Guidelines for Banks Mobile phones as a delivery channel for extending banking services have offlate been attaining greater significance. The rapid growth in users and wider coverage of mobile phone networks have made this channel an important platform for extending banking services to customers. With the rapid growth in the number of mobile phone subscribers in India (about 261 million as at the end of March 2008 and growing at about 8 million a month), banks have been exploring the feasibility of using mobile phones as an alternative channel of delivery of banking services. Some banks have started offering information based services like balance enquiry, stop payment instruction of cheques, transactions enquiry, location of the nearest ATM/branch etc. Acceptance of transfer of funds instruction for credit to beneficiaries of same/or another bank in favor of pre-registered beneficiaries have also commenced in a few banks. In order to ensure a level playing field and considering that the technology is relatively new, Reserve Bank has brought out a set of operating guidelines for adoption by banks.

For the purpose of these Guidelines, mobile banking transactions is undertaking banking transactions using mobile phones by bank customers that involve credit/debit to their accounts. It also covers accessing the bank accounts by customers for non-monetary transactions like balance enquiry etc. Regulatory & Supervisory Issues 1. Only banks which are licensed and supervised in India and have a physical presence in India will be permitted to offer mobile banking services. 2. The services shall be restricted only to customers of banks and holders of debit/credit cards issued as per the extant Reserve Bank of India guidelines. 3. Only Indian Rupee based domestic services shall be provided. Use of mobile banking services for cross border transfers is strictly prohibited. 4. Banks may also use the services of Business Correspondent appointed in compliance with RBI guidelines, for extending this facility to their customers. 5. The guidelines issued by Reserve Bank on Know Your Customer (KYC), Anti Money Laundering (AML) and Combating the Financing of Terrorism (CFT) from time to time would be applicable to mobile based banking services also. 6. Only banks who have implemented core banking solutions would be permitted to provide mobile banking services. 7. Banks shall file Suspected Transaction Report (STR) to Financial Intelligence Unit India (FID-IND) for mobile banking transactions as in the case of normal banking transactions. Registration of customers for mobile service 1. Banks shall put in place a system of document based registration with mandatory physical presence of their customers, before commencing mobile banking service. 2. On registration of the customer, the full details of the Terms and Conditions of the service offered shall be communicated to the customer. Technology and Security Standards 1. Information Security is most critical to the business of mobile banking services and its underlying operations. Therefore, technology used for mobile banking must be secure and should ensure confidentiality, integrity, authenticity and non-repudiability.

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2.

Banks offering mobile banking service must ensure that customers having mobile phones of any network operator is in a position to avail of the service. Restriction, if any, to the customers of particular mobile operator(s) is permissible only during the initial stages of offering the service, up to a maximum period of six months subject to review.

3.

The long term goal of mobile banking framework in India would be to enable funds transfer from account in one bank to any other account in the same or any other bank on a real time basis irrespective of the mobile network a customer has subscribed to. This would require inter-operability between mobile banking service providers and banks and development of a host of message formats. To ensure inter-operability between banks, and between their mobile banking service providers banks shall adopt the message formats like ISO 8583, with suitable modification to address specific needs

MOBILE BANKING
"Mobile Banking refers to provision and availment of banking- and financial services with the help of mobile telecommunication devices. The scope of offered services may include facilities to conduct bank and stock market transactions, to administer accounts and to access customized information. Mobile Banking: A Wallet for all Pockets Mobile Banking (also known as M-Banking, m-banking, SMS Banking, etc.) is a term used for performing balance checks, account transactions, payments, etc., via a mobile device such as a mobile phone. It was Internet Banking, which ushered in a new era in banking convenience by bringing the entire operations to the computer, and now mobile banking promises to take it to the next level. Internet Banking helped give the customers anytime access to their banks. Customers could check out their account details, perform transactions like transferring money to other accounts, and pay their bills, sitting in the comfort of their homes and offices. However, the biggest limitation of Internet Banking is the requirement of a PC with an Internet connection, not a big obstacle if we look at the US and the European countries, but definitely a big barrier if we consider most of the developing countries of Asia like India and China. Mobile Banking addresses this fundamental limitation of Internet Banking, as it reduces the customer requirement to just a mobile phone. Mobile usage has seen an explosive growth in most of the Asian economies like India, China

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and Korea. The main reason that Mobile Banking scores over Internet Banking is that it enables 'Anywhere Anytime Banking'. According to Cellular Operators Association of India (COAI), the mobile subscribers' base in India hit 40.6 Million in August 2004, and it will be almost80 Million in 2008, i.e., nearly double. We all expect 2009 set to be a big year for Mobile Banking. After a slow start at the turn of the millennium, it would seem this time around, that the devices, the networks, and the users have finally started using "Mobile Banking". The majority of the Indian banks, whether nationalized bank or privatized, are already involved in offering mobile services to their customers. Several banks have even tied-up with mobile phone operators and service providers to carry out transactions on mobile phones. While some banks allow simple account related queries on mobile phones, some have gone a step further and stored the debit and credit cards on mobile phones as well to enable various transactions. Four banks - SBI, HDFC, ICICI and Corporation Bank - have partnered with India's largest operator - Bharti Airtel - to offer m-banking. RCOM has tied up with ICICI Bank, HDFC Bank, Axis Bank and IDBI Bank. Bharti Airtel has launched its mobile banking and plans to rope in about 100 major banks in India by end 2008. But despite the addition of around seven million mobile users every month, bank officials feel it is too early to gauge the success of mobile banking in India. "Mobile banking is still in its nascent stage, and we will have to wait and watch if it really changes the way we bank," officials from various banks echo. Mobile banking has been at the threshold of a revolution for some time. While many operators, as well as banks, had introduced mobile banking applications, it never became popular due to security concerns. The number of people using mobile banking services has jumped from under 10,000 to 120,000 in two years. While the trend is growing, lack of awareness of services, apart from perceived security issues, are inhibiting faster take-off. There is yet another reason why the service will not spread like wild fire - the credit environment. RBI has been tightening the banks, which have been offering unsecured and secured loans with minimal or no customer verification. With RBI tightening liquidity, personal loan defaults have reached 9% and banks will be very wary of giving you a credit card on the mobile. Though RBI has specified norms for the banks to provide secure technology and ensure 'confidentiality, integrity, authenticity and non-reputability', security remains a major concern as well as a hurdle. However, with a few precautions and safety measures, users can have a safer m-banking experience. The m-PIN, which is issued by the bank, should be memorized and the PIN-mailer destroyed immediately.
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Change your m-PIN regularly and do not share it with anyone. The PIN is valid only for the corresponding phone number, which means users cannot access their accounts using other hand-sets. Thus, in case of a loss/theft of mobile phone, inform the mobile phone operator as well as the bank to block the banking application. Similarly, you should also inform the bank, if you change your hand-set or SIM card. Reserve Bank of India has set-up the Mobile Payments Forum of India (MPFI), a 'Working Group on Mobile Banking' to examine different aspects of Mobile Banking (M-banking). The Group had focused on three major areas of M-banking, i.e., 1. 2. 3. Technology and security issues, Business issues, and Regulatory and supervisory issues. One way to classify these services depending on the originator of a service session is the 'Push / Pull' your last five transactions statement is a Pull-based offering. The other way to categorize the mobile banking services, gives us two kind of services - 'Transaction-Based' and 'Enquiry -Based'. So a request for your bank statement is an enquiry-based service and a request for your fund's transfer to some other account is a transaction-based service. The new generation of mobile phones offers the speedy GPRS, EDGE or 3G data transmission standards and has large, high-definition colour displays. Prices are coming down and services and features are now considerably easier to handle on the mobile. Mobile Banking, in particular, has finally become a fast, userfriendly and affordable service. India's leading telecom companies started their services for Mobile Banking, basically they use these services as a marketing tool to advertise their services on this basis. Here are few giants of telecom industries in India who are offering Mobile Banking in various states. IDBI's CTO, Neeraj Bhai, echoes the sentiment, "Over 12% of our Internet Banking users use our Mobile Banking services as well." While ICICI Bank offers its services on GPRS and secure SMS, Barclays Bank's Hello Money is Based on Unstructured Supplementary Service Data (USSD) platform, which is independent of GPRS. nature. 'Push' is when the bank sends out information based upon an agreed set of rules; for example, your bank sends out an alert when your account balance goes below a threshold level. 'Pull' is when the customer explicitly requests a service or information from the bank, so a request for UK-based Barclays is one of the largest corporate money managers in the world. The bank launched its consumer banking services in India last year. And recently, the bank made its mobile banking service available on GSM hand-sets, on Airtel, Vodafone, and
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Idea networks in forty cities. Customers can choose between Hindi and English. Further, Barclays aims to include more languages and extend it to CDMA hand-sets as well. Despite lots of security issues related to mobile banking and lack of awareness on part of consumers, the technology has taken off on slow pace, still it will be a big hit in coming years. Due to large number of advantages, and these advantages have overpowered all the disadvantages of the technology. All these advantages create a WINWIN-WIN situation for the technology: End-users benefit from greater control of their personal finances, as well as time saved by not having to access account details via other channels (Internet, phone, ATM, among others). Bankers are of the opinion that mobile banking gives the banks an opportunity to expand their customer base without incurring additional infrastructure costs. It would also help in financial inclusion as it would provide a large number of unbanked people access to banking services. Banks would save a huge amount of money on card issuance and merchant acquiring with zero point of sale cost. Mobile banking could be used to make remittances from person to person, banking purposes and to make payments for purchases or services provided. Mobile operators benefit from increased customer stickiness, data usage and, potentially, customer experimentation with other forms of mobile content. Given this win-win-win situation, we expect uptake of mobile banking services to be robust among mobile subscribers, users and the banks. Over the next five years, mobile banking deployments will develop significantly - from "online banking" applications to one with richer interfaces and multiple mobile payment capabilities. The successful evolution of mobile banking and payments will be on the basis of the ability of financial institutions and mobile operators to balance ease of use with security. According to this model Mobile Banking can be said to consist of three interrelated concepts: Mobile Accounting Mobile Brokerage Mobile Financial Information Services

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Most services in the categories designated Accounting and Brokerage are transaction-based. The non-transaction-based services of an informational nature are however essential for conducting transactions - for instance, balance inquiries might be needed before committing a money remittance. The accounting and brokerage services are therefore offered invariably in combination with information services. Information services, on the other hand, may be offered as an independent module. Mobile phone banking may also be used to help in business situations Present growth trend of mobile banking over the last few years, the mobile and wireless market has been one of the fastest growing markets in the world and it is still growing at a rapid pace. Mobile phones have become an essential communication tool for almost every individual. Advent of mCommerce has managed to take mobile VAS to next level, adding tremendous value to telecommunication industry. Mobile banking which is an integral part of mCommerce has become very popular among mobile users ever since its existence in 2007. It creates new, convenient communication and fast financial transactional channel for mobile users which is accessible from anywhere, anytime. Checking account information, balance available, credit/debit card information, cheque status, setting alerts , payment reminders, locating ATMs and bank branches, accessing mini statement, accessing loan and equity statements, insurance policy management, placing orders for cheque books etc via mobile phones are some of the services offered in mobile banking. With multiple access channels such as SMS, downloadable client, mobile Internet (WAP) mobile banking is encouraging mobile users more to explore the service. Banking has been improvised with the invent of mobile banking.
Mobile banking services insights and reports

Based on data gathered in April 2009 for Feb/March mobile banking urban Indian customers checking account balance is the most frequently cited reason for using mobile banking. 40 million Urban Indians used their mobile phones to check their bank account balances followed by viewing last three transactions. ICICI bank continues to maintain its leadership extending in mobile space, 42% of all mobile banking users bank with ICICI, followed by HDFC (25.3%). Mobile banking report: Most popular services and income profile (Two month ended March 2009, Urban Indian Mobile Phone Users). According to a study by financial consultancy Celent, 35% of online banking households will be using mobile banking by 2010, up from less than 1% today.

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Upwards of 70% of bank center call volume is projected to come from mobile phones. Mobile banking will eventually allow users to make payments at the physical point of sale. "Mobile contactless payments will make up 10% of the contactless market by 2010. Another study from 2010 by Berg Insight forecasts that the number of mobile banking users in the US will grow from 12 million in 2009 to 86 million in 2015. The same study also predicts that the European market will grow from 7 million mobile banking users in 2009 to 115 million users in 2015. Many believe that mobile users have just started to fully utilize the data capabilities in their mobile phones. In Asian countries like India, China, Bangladesh, Indonesia and Philippines, where mobile infrastructure is comparatively better than the fixed-line infrastructure, and in European countries, where mobile phone penetration is very high (at least 80% of consumers use a mobile phone), mobile banking is likely to appeal even more. Mobile banking also known as M-Banking, SMS Banking is a term used for performing balance checks, account transactions, payment etc. Over the last few years, the mobile and wireless market has been one of the fastest growing markets in the world and it is still growing at a rapid pace. With mobile technology, banks can offer services to their customers such as doing funds transfer while travelling, receiving online updates of stock price or even performing stock trading while being stuck in traffic. A specific sequence of SMS messages will enable the system to verify if the client has sufficient funds in his or her wallet and authorize a deposit or withdrawal transaction at the agent. Many believe that mobile users have just started to fully utilize the data capabilities in their mobile phones. In Asian countries like India, China, where mobile infrastructure is comparatively better than the fixed-line infrastructure, and in European countries, where mobile phone penetration is very high, mobile banking is likely to appeal even more.
Mobile Banking Services

Account Information o Mini-statement and checking of account history o Alerts on account activity o Monitoring of term deposits

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o Access to loan statements o Access to card statements o Mutual fund/ equity statements o Pension plan management o Insurance policy management o Status on cheque, stop payment on cheque o Ordering cheque books o Balance checking in the account o Recent transactions o Due date of payment o PIN provision o Blocking of cards Payments, Deposits, Withdrawals and Transfers o Domestics and international fund transfers o Micro-payment handling o Mobile recharging o Commercial payment processing o Bill payment processing o Peer to Peer payments o Withdrawal at banking agent o Deposit at banking agent

TELEPHONE BANKING
Telephone banking is a service provided by a financial institution , which allows its customers to perform transactions over the telephone. Most telephone banking services use an automated phone answering system with phone keypad response or voice recognition capability. To guarantee security, the customer must first authenticate through a numeric or verbal password or through security questions asked by a live representative. With the obvious exception of cash withdrawals & deposits, it offers virtually all the features of an automated teller machine: account balance information and list of latest transactions, electronic bill payments, funds transfers between a customers accounts.etc

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Usually, customers can also speak to alive representative located in a call centre or a branch, although this feature is not always guaranteed to be offered 24/7. In addition to the self-service transactions listed earlier, telephone banking representatives are usually trained to do what was traditionally available only at the branch: loan applications, investments purchases and redemptions, cheque book orders, debit card replacements, change of address, etc Banks which operate mostly or exclusively by telephone are known as phone banks. They also help modernize the user by using special technology.

INTERNET BANKING
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 webenabled. 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. The traditional branch model of bank is now giving place to an alternative delivery channels with ATM network. 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 any how banking
INTERNET BANKING SERVICES

1) Bill Payment Service: You can facilitate payment of electricity and telephone bills, mobile phone, credit card and insurance premium bills as each bank has tie-ups with various utility companies, service providers and insurance companies, across the country. To pay your bills, all you need to do is complete a simple one-time registration for each biller. You can also set up standing instructions online to pay your recurring bills, automatically. Generally, the bank does not charge customer for online bill payment. 2) Fund Transfer: You can transfer any amount from one account to another of the same or any another bank. Customers can send money anywhere in India. Once you login to your account, you need to mention the payees account number, his bank and the branch. The transfer will take place in a day or so, whereas in a traditional method, it takes about three working days.

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3) Credit Card Customers:

With Internet banking, customers can not only pay

their credit card bills online but also get a loan on their cards. If you lose your credit card, you can report lost card online. 4) Investment: You can now open an FD online through funds transfer. Now investors with interlinked demat account and bank account can easily trade in the stock market and the amount will be automatically debited from their respective bank accounts and the shares will be credited in their demat account. Moreover, some banks even give you the facility to purchase mutual funds directly from the online banking system. 5) Recharging your Prepaid Phone: Now just top-up your prepaid mobile cards by logging in to Internet banking. By just selecting your operator's name, entering your mobile number and the amount for recharge, your phone is in action within no time. 6) Shopping: With a range of all kind of products, you can shop online and the payment is also made conveniently through your account. You can also buy railway and air tickets through Internet banking.

AUTOMATED TELLER MACHINE (ATM)

Automated Teller Machine is a mechanism which enables the customer to withdraw money from his account without visiting the bank branch. An ATM card is issued to the customer by the bank in order to make cash withdrawals at cash machine. This service helps the ATM customer to withdraw money even when the banks are closed. This can be done by inserting the card in the ATM and entering the Personal Identification Number & secret password. ATMs act as off-site branches of banks and provide almost all services that are available from a manually operated branch. The customer can, not only withdraw cash, but also deposit money, get account statements, enable transfer of funds etc. The customer who wants to deposit cash should put the notes in the pouch available at the ATM counter close it, seal it by signing & put it in the slot provided for this purpose. The bank staff will collect the packet when they come for loading cash in the machine & credit the amount to the account. However, the customer has to sign an undertaking with the bank that he would not dispute on the amount credited. ATM has gained

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prominence as a delivery channel for banking transactions in India. Now customers will not be levied any fee on cash withdrawals using ATM & debit cards issued by other banks. This will in turn increase usage of ATMs in India. ATM allows customers: To view account information To deposit cheques or cash To order cheques and receive cash.

Benefits of ATM: To the ATM Customer 1) ATM customer can utilize any possible facility availed from the ATM e.g. balance enquiry, withdrawal, deposits, etc 2) Anytime banking, 24 hours a day, 7 days a week has become a main service to the ATM customers who cannot manage to visit bank during banking hours 3) Convenience acts as a tremendous psychological benefit all the time 4) Cash withdrawal from any branch through ATM To the Bank 1) Innovative, secure, competitive and presents the bank as technology driven in the banking sector market. 2) Reduces customer visits to the branch & thereby human intervention. 3) Inter-branch reconciliation is immediate thereby reducing chances of fraud. 4) It acts as a value added product to the bank so that the banks can attract more new generation customers.

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CHAPTER-2

PROFILE OF SBI BANK

The Bank is actively involved since 1973 in non-profit activity called Community Services Banking. All our branches and administrative offices throughout the country sponsor and participate in large number of welfare activities and social causes. Our business is more than banking because we touch the lives of people anywhere in many ways. Our commitment to nation-building is complete & comprehensive.

List of Directors on the Central Board of State Bank of India (As on 06th February, 2013)
Sr. No. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 Name Shri Pratip Chaudhuri Shri Hemant G. Contractor Shri Diwakar Gupta Shri A. Krishna Kumar Shri S.Vishvanathan Shri S. Venkatachalam Shri D. Sundaram Shri Parthasarathy Iyengar Shri Thomas Mathew Shri Jyoti Bhushan Mohapatra Shri S.K. Mukherjee Dr. Rajiv Kumar Shri Deepak Amin Shri Harichandra Bahadur Singh Shri Rajiv Takru Dr. Urjit R. Patel Designation Chairman Managing Director

Managing Director Managing Director Managing Director Director Director Director Director Workmen Employee Director Officer Employee Director Director Director Director Director Director

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EVOLUTION OF SBI
The origin of the State Bank of India goes back to the first decade of the nineteenth century with the establishment of the Bank of Calcutta in Calcutta on 2 June 1806. Three years later the bank received its charter and was re-designed as the Bank of Bengal (2 January 1809). A unique institution, it was the first joint-stock bank of British India sponsored by the Government of Bengal. The Bank of Bombay (15 April 1840) and the Bank of Madras (1 July 1843) followed the Bank of Bengal. These three banks remained at the apex of modern banking in India till their amalgamation as the Imperial Bank of India on 27 January 1921. Primarily Anglo-Indian creations, the three presidency banks came into existence either as a result of the compulsions of imperial finance or by the felt needs of local European commerce and were not imposed from outside in an arbitrary manner to modernise India's economy. Their evolution was, however, shaped by ideas culled from similar developments in Europe and England, and was influenced by changes occurring in the structure of both the local trading environment and those in the relations of the Indian economy to the economy of Europe and the global economic framework.

Bank of Bengal H.O.

Establishment

The establishment of the Bank of Bengal marked the advent of limited liability, jointstock banking in India. So was the associated innovation in banking, viz. the decision to allow the Bank of Bengal to issue notes, which would be accepted for payment of public revenues within a restricted geographical area. This right of note issue was very
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valuable not only for the Bank of Bengal but also its two siblings, the Banks of Bombay and Madras. It meant an accretion to the capital of the banks, a capital on which the proprietors did not have to pay any interest. The concept of deposit banking was also an innovation because the practice of accepting money for safekeeping (and in some cases, even investment on behalf of the clients) by the indigenous bankers had not spread as a general habit in most parts of India. But, for a long time, and especially up to the time that the three presidency banks had a right of note issue, bank notes and government balances made up the bulk of the invertible resources of the banks. The three banks were governed by royal charters, which were revised from time to time. Each charter provided for a share capital, four-fifth of which were privately subscribed and the rest owned by the provincial government. The members of the board of directors, which managed the affairs of each bank, were mostly proprietary directors representing the large European managing agency houses in India. The rest were government nominees, invariably civil servants, one of whom was elected as the president of the board.

Group Photograph of Central Board (1921)

Business

The business of the banks was initially confined to discounting of bills of exchange or other negotiable private securities, keeping cash accounts and receiving deposits and issuing and circulating cash notes. Loans were restricted to Rs.one lakh and the period of accommodation confined to three months only. The security for such loans was public securities, commonly called

23

Company's Paper, bullion, treasure, plate, jewels, or goods 'not of a perishable nature' and no interest could be charged beyond a rate of twelve per cent. Loans against goods like opium, indigo, salt woollens, cotton, cotton piece goods, mule twist and silk goods were also granted but such finance by way of cash credits gained momentum only from the third decade of the nineteenth century. All commodities, including tea, sugar and jute, which began to be financed later, were either pledged or hypothecated to the bank. Demand promissory notes were signed by the borrower in favour of the guarantor, which was in turn endorsed to the bank. Lending against shares of the banks or on the mortgage of houses, land or other real property was, however, forbidden. Indians were the principal borrowers against deposit of Company's paper, while the business of discounts on private as well as salary bills was almost the exclusive monopoly of individuals Europeans and their partnership firms. But the main function of the three banks, as far as the government was concerned, was to help the latter raise loans from time to time and also provide a degree of stability to the prices of government securities.

Old Bank of Bengal

Major change in the conditions

A major change in the conditions of operation of the Banks of Bengal, Bombay and Madras occurred after 1860. With the passing of the Paper Currency Act of 1861, the right of note issue of the presidency banks was abolished and the Government of India assumed from 1 March 1862 the sole power of issuing paper currency within British India. The task of management and circulation of the new currency notes was conferred on the presidency banks and the Government undertook to transfer the Treasury balances to the banks at places where the banks would open branches.

24

None of the three banks had till then any branches (except the sole attempt and that too a short-lived one by the Bank of Bengal at Mirzapore in 1839) although the charters had given them such authority. But as soon as the three presidency bands were assured of the free use of government Treasury balances at places where they would open branches, they embarked on branch expansion at a rapid pace. By 1876, the branches, agencies and sub agencies of the three presidency banks covered most of the major parts and many of the inland trade centres in India. While the Bank of Bengal had eighteen branches including its head office, seasonal branches and sub agencies, the Banks of Bombay and Madras had fifteen each.

Bank of Madras Note Dated 1861 for Rs.10

Presidency Banks Act

The presidency Banks Act, which came into operation on 1 May 1876, brought the three presidency banks under a common statute with similar restrictions on business. The proprietary connection of the Government was, however, terminated, though the banks continued to hold charge of the public debt offices in the three presidency towns, and the custody of a part of the government balances. The Act also stipulated the creation of Reserve Treasuries at Calcutta, Bombay and Madras into which sums above the specified minimum balances promised to the presidency banks at only their head offices were to be lodged. The Government could lend to the presidency banks from such Reserve Treasuries but the latter could look upon them more as a favour than as a right.

25

Bank of Madras

The decision of the Government to keep the surplus balances in Reserve Treasuries outside the normal control of the presidency banks and the connected decision not to guarantee minimum government balances at new places where branches were to be opened effectively checked the growth of new branches after 1876. The pace of expansion witnessed in the previous decade fell sharply although, in the case of the Bank of Madras, it continued on a modest scale as the profits of that bank were mainly derived from trade dispersed among a number of port towns and inland centres of the presidency. India witnessed rapid commercialization in the last quarter of the nineteenth century as its railway network expanded to cover all the major regions of the country. New irrigation networks in Madras, Punjab and Sind accelerated the process of conversion of subsistence crops into cash crops, a portion of which found its way into the foreign markets. Tea and coffee plantations transformed large areas of the eastern Terais, the hills of Assam and the Nilgiris into regions of estate agriculture par excellence. All these resulted in the expansion of India's international trade more than six-fold. The three presidency banks were both beneficiaries and promoters of this commercialisation process as they became involved in the financing of practically every trading, manufacturing and mining activity in the sub-continent. While the Banks of Bengal and Bombay were engaged in the financing of large modern manufacturing industries, the Bank of Madras went into the financing of large modern manufacturing industries, the Bank of Madras went into the financing of small-scale industries in a

26

way which had no parallel elsewhere. But the three banks were rigorously excluded from any business involving foreign exchange. Not only was such business considered risky for these banks, which held government deposits, it was also feared that these banks enjoying government patronage would offer unfair competition to the exchange banks which had by then arrived in India. This exclusion continued till the creation of the Reserve Bank of India in 1935.

Bank of Bombay

Presidency Banks of Bengal

The Presidency Banks of Bengal, Bombay and Madras with their 70 branches were merged in 1921 to form the Imperial Bank of India. The triad had been transformed into a monolith and a giant among Indian commercial banks had emerged. The new bank took on the triple role of a commercial bank, a banker's bank and a banker to the government. But this creation was preceded by years of deliberations on the need for a 'State Bank of India'. What eventually emerged was a 'half-way house' combining the functions of a commercial bank and a quasi-central bank. The establishment of the Reserve Bank of India as the central bank of the country in 1935 ended the quasi-central banking role of the Imperial Bank. The latter ceased to be bankers to the Government of India and instead became agent of the Reserve Bank for the transaction of government business at centres at which the central bank was not established. But it continued to maintain currency chests and small coin depots and operate the remittance facilities scheme for other banks and the public on terms stipulated by the Reserve Bank. It also acted as a bankers' bank by holding their surplus cash and granting them advances against authorised securities. The management of the

27

bank clearing houses also continued with it at many places where the Reserve Bank did not have offices. The bank was also the biggest tendered at the Treasury bill auctions conducted by the Reserve Bank on behalf of the Government. The establishment of the Reserve Bank simultaneously saw important amendments being made to the constitution of the Imperial Bank converting it into a purely commercial bank. The earlier restrictions on its business were removed and the bank was permitted to undertake foreign exchange business and executor and trustee business for the first time.
Imperial Bank

The Imperial Bank during the three and a half decades of its existence recorded an impressive growth in terms of offices, reserves, deposits, investments and advances, the increases in some cases amounting to more than six-fold. The advances, the increases in some cases amounting to more than six-fold. The financial status and security inherited from its forerunners no doubt provided a firm and durable platform. But the lofty traditions of banking which the Imperial Bank consistently maintained and the high standard of integrity it observed in its operations inspired confidence in its depositors that no other bank in India could perhaps then equal. All these enabled the Imperial Bank to acquire a pre-eminent position in the Indian banking industry and also secure a vital place in the country's economic life.

Stamp of Imperial Bank of India

When India attained freedom, the Imperial Bank had a capital base (including reserves) of Rs.11.85 crores, deposits and advances of Rs.275.14 crores and Rs.72.94 crores respectively and a network of 172 branches and more than 200 sub offices extending all over the country.

28

First Five Year Plan

In 1951, when the First Five Year Plan was launched, the development of rural India was given the highest priority. The commercial banks of the country including the Imperial Bank of India had till then confined their operations to the urban sector and were not equipped to respond to the emergent needs of economic regeneration of the rural areas. In order, therefore, to serve the economy in general and the rural sector in particular, the All India Rural Credit Survey Committee recommended the creation of a state-partnered and state-sponsored bank by taking over the Imperial Bank of India, and integrating with it, the former state-owned or state-associate banks. An act was accordingly passed in Parliament in May 1955 and the State Bank of India was constituted on 1 July 1955. More than a quarter of the resources of the Indian banking system thus passed under the direct control of the State. Later, the State Bank of India (Subsidiary Banks) Act was passed in 1959, enabling the State Bank of India to take over eight former State-associated banks as its subsidiaries (later named Associates). The State Bank of India was thus born with a new sense of social purpose aided by the 480 offices comprising branches, sub offices and three Local Head Offices inherited from the Imperial Bank. The concept of banking as mere repositories of the community's savings and lenders to creditworthy parties was soon to give way to the concept of purposeful banking sub serving the growing and diversified financial needs of planned economic development. The State Bank of India was destined to act as the pacesetter in this respect and lead the Indian banking system into the exciting field of national development The Bank is actively involved since 1973 in non-profit activity called Community Services Banking. All SBI branches and administrative offices throughout the country sponsor and participate in large number of welfare activities and social causes. SBI business is more than banking because we touch the lives of people anywhere in many ways. SBI commitment to nation-building is complete & comprehensive.
TECHNOLOGY UPGRADATION

SBIs Information Technology Programme aims at achieving efficiency in operations, meeting customer and market expectations and facing competition. SBI achievements are summarized below:

29

FULL BRANCH COMPUTERISATION (FCBs): All the branches of the Bank are now

fully computerised. This strategy has contributed to improvement in customer service.

ATM SERVICES: There are 21000 ATMs on the ATM Network. These ATMs are

located in 1721 centers spread across the length and breadth of the country, thereby creating a truly national network of ATMs with an unparalleled reach. Value added services like ATM locator, payment of fees for college students, multilingual screens, voice over and drawl of cash advance by SBI credit card holders have been introduced.
INTERNET BANKING (INB): This on-line channel enables customers to access their

account information and initiate transactions on a 24x7, boundary less basis. 2225 branches, covering 555 centers are extending INB service to their customers. All functionalities other than Cash and Clearing have been extended to individual retail customers. A separate Internet Banking Module for Corporate customers has been launched and available at 1305 branches. Bulk upload of data for Corporate, Interbranch funds transfer for Retail customers, online payment of Customs duty and Govt. tax, Electronic Bill Payment, SMS Alerts, E-Poll, IIT GATE Fee Collection, Off-line Customer Registration Process and Railway Ticket Booking are the new features deployed.
GOVT. BUSINESS: Software has been developed and rolled out at 7785 fully

computerised branches. Electronic generation of all reports for reporting, settlement and reconciliation of Govt. funds is available.
STEPS: Under STEPS, the bank's electronic funds transfer system; the Products offered

are e-Transfer (eT), e-Realisation (eR), e-Debit (CMP) and ATM reconciliation. STEPS handles payment messages and reconciliation simultaneously.
SEFT: SBI has launched the Special Electronic Fund Transfer (SEFT) Scheme of RBI,

to facilitate efficient and expeditious Inter-bank transfer of funds. 241 branches of our Bank in various LHO Centres are participating in the scheme. Security of message transmission has been enhanced.
MICR Centre: MICR Cheque Processing systems are operational at 16 centre viz.

Mumbai, New Delhi, Chennai, Kolkata, Vadodara, Surat, Patna, Jabalpur, Gwalior, Jodhpur, Trichur, Calicut, Nasik, Raipur, Bhubaneswar and Dehradun.

30

Core Banking: The Core Banking Solution provides the state-of-the-art anywhere

anytime banking for our customers. The facility is available at 1012 branches.
Trade Finance: The solution has been implemented, providing efficiency in handling

Trade Finance transactions with Internet access to customers and greatly enhances the bank's services to Corporate and Commercial Network branches. This new Trade Finance solution, EXIMBILLS, will be implemented at all domestic branches as well as at Foreign offices engaged in trade finance business during the year.
WAN: The bank has set up a Wide Area Network, known as SBI connect, which

provides connectivity to 4819 branches/offices of SBI Group across 385 cities as at 31st March 2008. This network provides across the board benefits by providing nationwide connectivity for its business applications.

31

Branch Details
Branch Code Address ADB BHUNA DISTT. FATEHABAD City PIN Code District State STD Code Phone Number Fax Number Email ID Branch Circle Branch Type IFS Code SWIFT Code FOREX Type Branch Business Hours Sunday Banking Sunday Banking Business Hours Gold Coin Facility Locker Facility NO YES sbi.04508@sbi.co.in CHANDIGARH AGRI DEV BRANCH SBIN0004508 NONE 10:00-16:00 FATEHABAD HARYANA 1667 242240 1667242240 125111 4508

32

CHAPTER-3

RESEARCH METHODOLOGY
Research in common parlance refers to a search for knowledge. Once can also define research as a scientific and systematic search for pertinent information on a specific topic. In fact, research is an art of scientific investigation. The Advanced Learners Dictionary of Current English lays down the meaning of research as a careful investigation or inquiry specially through search for new facts in any branch of knowledge.It is actually a voyage of discovery. We all possess the vital instinct of inquisitiveness for, when the unknown confronts us, we wonder and our inquisitiveness makes us probe and attain full and fuller understanding of the unknown. This inquisitiveness is the mother of all knowledge and the method, which man employs for obtaining the knowledge of whatever the unknown, can be termed as research.

Rationale for the study

Mobile banking can be accessed by mobile and people can use to their advantage and they do not have to be physically present in the banks to check the account balance. Mobile banking has made life much easier and it is a program that is used by the younger generation much more, but if you're Middle-aged or senior person, you can definitely benefit because it is really easy. On all banks which are available in India, we see that SBI is a bank that has always taken care of its customers. It offers easy to use models and methods that have helped attract people to the bank. If you are thinking what is the new offer from the bank to the client, you'll be pleased to know that mobile banking SBI is now a reality. People can now access their accounts through SBI their cell phones. But before that they need to subscribe to the process and then the whole issue will be supported. This is a special application which must be activated by the same banks and if you can do then you will be able to access your account from your cell phone. SBI mobile banking system has been introduced to help people access their bank accounts via their cell phones, and if you look at the records, we see that among the number of people using this technology are the highest youth. With the advent of time, we see that there are various gradations of latest technology and life has become much easier. The banking sector has benefited immensely from the technology of mobile banking. This is a new technology that has

33

been done to make life easier for people and make work easier and faster official. The tech freak people can now breathe easy as it has made life much easier for people. Mobile banking technology allows a person to work with his cell phone and can also be very checking account balance. The official work can be done by the Internet itself and there is absolutely no need to be present at the bank for all official proceedings. The Internet banking has made life a lot easier than it helps people to access bank account sitting at home. If you look at the number of people using the Internet in today's world, we see that the number is indeed massive and people use it either for their personal use or for personal gain. The Internet has now given new impetus to life and helped improve people's lives. In banking Internet has had a huge impact and people are using the environment to ensure that the entire transaction process is completed very quickly. Mobile banking is the new age technology that allows a person with a bank account to access the account from mobile phones. Mobile Banking Software is used by people to access the account. This has indeed helped the people by a huge margin, because they can now have access to telephones as early as possible. The present study has been descriptive; the data for this study were obtained from primary and secondary sources.

Objectives of The project

The first and foremost step in the marketing research process consist of identifying the need of marketing research then the identification of problem and opportunities underlying the problem. The necessity of proper identification of marketing problem cannot be over emphasized. It is therefore rightly said that the problem properly defined is half solved. To understand the trends of Mobile banking in Bhuna and Fatehabad. To understand the opportunities & challenges faced by Mobile Banking in current scenario. To understand the reasons for less response by the consumers regarding mobile banking To understand the present growth, trends & future challenges for the technological revolution brought about by Mobile Banking To analyze the current market potential for Mobile banking of SBI at Bhuna and Fatehabad.

34

To study the consumer satisfaction level for the mobile banking facility of SBI at Bhuna and Fatehabad.

Sampling Universe:
The sampling universe will include of some bank i.e. ICICI, HDFC, SBI, Syndicate, IDBI, PNB, Andhra, Indian Overseas Bank, Axis Bank and Kotak.

Sampling techniques:
The sampling technique to be used for the study was survey questionnaire that was administered to 100 respondents, who were consumers of the above banks and 10 banks. For this purpose convenient sampling was used

Sample size
10 banks i.e. ICICI, HDFC, SBI, Syndicate, IDBI, PNB, Andhra, Indian Overseas Bank, Axis Bank and Kotak and 100 respondents, who were consumers of these banks.

Limitation
The certain no of people had been contacted for data collection so it cannot be treated for the whole population. Respondents can be biased. Time was the major constraint. To gather the data from the various sources is difficult task. Respondent may not take interest in the study.

Period of Study
Period of the study commences on 1st of June, 2013 and ended on 10th of August, 2013.

35

CHAPTER-4

DATA ANALYSIS AND INTERPRETATION

[FROM CONSUMERS] Table 1. Does your bank provide Mobile Banking?

Yes 100

No 0

100 90 80 70 60 50 40 30 20 10 0 Yes No

Interpretation Survey was conducted upon 100 respondents, who were availing services of various banks in the mode saving account or current account. All the respondents admitted that their banks have been providing Mobile Banking facilities.

36

Table 2.

Before providing Mobile Banking facilities does your bank provide any training to the consumers?

Yes 0

No 100

100 90 80 70 60 50 40 30 20 10 0 Yes No

Interpretation Survey was conducted upon 100 respondents, who were availing services of various banks in the mode saving account or current account. All the respondents declined of receiving any kind of service from the bank regarding operations and benefits of Mobile Banking facilities.

37

Table 3.

Your preference for Banking system? 70 20 9 1

Counter Banking Internet Banking Mobile Banking Cant say

70 60 50 40 30 20 10 0

Interpretation Survey was conducted upon 100 respondents, who were availing services of various banks in the mode saving account or current account. When the respondents were asked to give their preference of banking system, you would like to use, then most of the respondents i.e. 70 respondents preferred counter banking, followed by 22 respondents preferring internet banking and 9 respondents preferred mobile banking. One respondent remained in doldrums.

38

Table 4.

Do you face any problem while operating Mobile Banking?

Yes 59

No 41

60 50 40 30 20 10 0 Yes No

Interpretation Survey was conducted upon 100 respondents, who were availing services of various banks in the mode saving account or current account. Out of the 100 respondents 59 respondents admitted that they face problem during Mobile Banking operations and 41 respondents have don't faced any kind of problems during the operations of mobile banking.

39

Table 5.

If yes type of problem faced by you?

Technical Problem 45

Administrative Problem 8

Any other 6

45 40 35 30 25 20 15 10 5 0
Technical Problem Administrative Problem Any other

Interpretation Survey was conducted upon 100 respondents, who were availing services of various banks in the mode saving account or current account. Out of the 59 respondents 45 respondents admitted that they face technical problem during Mobile Banking operations, followed by 8 respondents having administrative problem and 6 respondents faced other problems. It means that a majority of people face technical problem during the operations of mobile banking.

40

Table 6.

Do you face any resistance from your employees while implementing Mobile Banking system?

Yes 24

No 76

45 40 35 30 25 20 15 10 5 0
Technical Problem Administrative Problem Any other

Interpretation Survey was conducted upon 100 respondents, who were availing services of various banks in the mode saving account or current account. Out of the 100 respondents 76 respondents declined any resistance from the employees of their bank however, there were 24 respondents have face resistance from the employees of the bank regarding query / problem upon mobile banking.

41

Table 7.

How far you use mobile banking in your daily life?

Daily 14

Occasionally 22

Used only once or twice 64

70 60 50 40 30 20 10 0
Daily Occasionally Used only once or twice

Interpretation Survey was conducted upon 100 respondents, who were availing services of various banks in the mode saving account or current account. Out of the 100 respondents 64 respondents admitted that they have used mobile banking only once or twice, however, they don't use mobile banking, however, 22 respondents were using mobile banking occasionally. On the other hand, there were only 14 respondents who use mobile banking on daily basis in their routine life.

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Table 8.

Reason for not using Mobile Banking in routine life

Security threat

Technical to use

Already using on Any other PC

23

30

17

14

30 25 20 15 10 5 0
Security threat Technical to use Already using on PC Any other

Interpretation Survey was conducted upon 100 respondents, who were availing services of various banks in the mode saving account or current account. Out of the 84 respondents who are using mobile banking occasionally, 30 respondents admitted that it is technical to use, followed by 23 respondents who deem it as a security threat. On the other hand, only 17 have been found using alternative modes of e-banking. There were 14 respondents who don't want to use their transactions in white.

43

Table 9.

Have you ever wrong deductions from your account while using Mobile Banking?

Yes 6

No 94

100 90 80 70 60 50 40 30 20 10 0
Yes No

Interpretation Survey was conducted upon 100 respondents, who were availing services of various banks in the mode saving account or current account. Out of the 100 respondents, 94 respondents who have never experienced any wrong deduction from their account. In contrast, there were only 6 respondents who have ever experienced any wrong deduction.

44

Table 10. Whether the money was refunded?

Yes 3

No 3

3 2.5 2 1.5 1 0.5 0

Yes No

Interpretation Survey was conducted upon 100 respondents, who were availing services of various banks in the mode saving account or current account. Out of the 6 respondents, who have experienced wrong deduction of money from their account, 3-3 respondents in equal, have admitted that their amount was refunded, however, 3 respondents didn't approach their bank for the same, hence, amount was not refunded to them.

45

[FROM BANKS]

Table 1.

Does your bank provide Mobile Banking?

Yes 10

No 0

100 90 80 70 60 50 40 30 20 10 0 Yes No

Interpretation Survey was conducted upon 10 Banks, all the surveyed banks in the mode saving account or current account. All the respondents admitted that their banks have been providing Mobile Banking facilities.

46

Table 2.

Before providing Mobile Banking facilities does your bank provide any training to the consumers?

Yes 0

No 10

100 90 80 70 60 50 40 30 20 10 0 Yes No

Interpretation Survey was conducted upon 10 banks, who were providing services of various of mobile banking. All the respondents declined of providing any kind of service from the bank regarding operations and benefits of Mobile Banking facilities.

47

Table 3.

Consumer's preference for Banking system? 6 2 2 0

Counter Banking Internet Banking Mobile Banking Cant say

6 5 4 3 2 1 0

Interpretation Survey was conducted upon 10 respondent banks,. When the respondent banks were asked to give the preference of their consumers about using banking system, then most of the respondent banks i.e. 6 went with counter banking, followed by 2-2 each going with internet banking and mobile banking.

48

Table 4.

Do you entertain the problem faced by the consumer regarding operating Mobile Banking?

Yes 1

No 9

9 8 7 6 5 4 3 2 1 0 Yes No

Interpretation Survey was conducted upon 10 banks, who were providing services of mobile banking. Out of the 10 banks 9 respondent banks admitted that they dont entertain the mobile banking problems, so far as it is concerned only to lack of knowledge of operating by the consumer, however, 1 bank admitted entertainment of such complainants.

49

Table 5.

Which types type of problems are mostly faced by the bank?

Technical Problem 5

Administrative Problem 3

Any other 2

5 4.5 4 3.5 3 2.5 2 1.5 1 0.5 0

Technical Problem Administrative Problem Any other

Interpretation Survey was conducted upon 100 respondents, who were providing services of mobile banking. Out of the 10 respondents 5 respondent banks admitted that they receive complaints of technical problems during Mobile Banking operations, followed by 3 respondent banks who receive administrative problems and 2 receive other problems.

50

Table 6.

Does the bank resist their employees not to entertain Mobile Banking problems pertaining to operating ?

Yes 0

No 10

10 9 8 7 6 5 4 3 2 1 0
Yes No

Interpretation Survey was conducted upon 10 banks, all the respondent banks declined any instruction of refraining from the entertainment of mobile banking problem from the consumers.

51

Table 7.

How far your consumers use mobile banking in their daily life?

Daily 2

Occasionally 8

8 7 6 5 4 3 2 1 0
Daily Occasionally

Interpretation Survey was conducted upon 10 respondent banks, Out of the 10 respondent banks, 8 admitted most of their consumers use mobile banking only occasionally,. On the other hand, there were only 2 banks who admitted the use of mobile banking by their consumers.

52

Table 8.

Reason for not using Mobile Banking in routine life by your consumers

Security threat 2

Technical to use 3

Already using on PC 2

Any other 1

3 2.5 2 1.5 1 0.5 0

Security threat Technical to Already using use on PC Any other

Interpretation Survey was conducted upon 10 respondent banks, Out of the 8 respondent banks, 3 believe that due to technical complications, consumers don't use mobile banking, however, 2-2 respondent banks admitted that due to security threat and already use on computers.

53

Table 9.

Do you often receive complaints of wrong deductions from the consumers, from your account while using Mobile Banking?

Yes 10

No 0

10 9 8 7 6 5 4 3 2 1 0
Yes No

Interpretation Survey was conducted upon 10 respondent banks, who were providing services of mobile banking. All of the 10 respondent banks echoed in one voice that they often receive complaints of wrong deductions.

54

Table 10.

Whether the money us refunded to the consumer?

Yes 10

No 0

10 9 8 7 6 5 4 3 2 1 0
Yes No

Interpretation Survey was conducted upon 10 respondent banks, who were providing services of mobile banking. All of the 10 respondent banks echoed in one voice that wrongly deducted money is refunded to the consumer's account within 24 hours.

55

Table 11. Is there an increase in number of customers after introducing Mobile Banking?

Yes 3

No 7

7 6 5 4 3 2 1 0
Yes No

Interpretation Survey was conducted upon 10 respondent banks, who were providing services of mobile banking. Out of the 10 respondent banks, 3 admitted that there has been an increase of consumers after launch of mobile bnaking, however, 7 didn't observe such increase in their bank.

56

CHAPTER-5

FINDINGS AND RECOMMENDATION

Findings
Mobile banking is a system that allows customers of a financial institution to conduct a number of financial transactions through a mobile device such as a mobile phone or personal digital assistant. Mobile banking differs from mobile payments, which involve the use of a mobile device to pay for goods or services either at the point of sale or remotely, analogously to the use of a debit or credit card. The earliest mobile banking services were offered over SMS, a service known as SMS banking. With the introduction of smart phones with WAP support enabling the use of the mobile web in 1999, the first European banks started to offer mobile banking on this platform to their customers. However, even after so much time, most of people have shown reluctance to adopt mobile banking in Bhuna and Fatehabad region. In order to study the reasons behind it, a survey has been conducted. Observations, so observed during the survey are here as under: Survey was conducted upon 100 respondents, who were availing services of various banks in the mode saving account or current account. All the respondents admitted that their banks have been providing Mobile Banking facilities. However, all the respondents have declined regarding receiving any kind of service from the bank regarding operations and benefits of Mobile Banking facilities, which is major reason for flippant attitude of the consumers regarding the mobile banking. When the respondents were asked to give their preference of banking system, they would like to use, then most of the respondents i.e. 70 respondents preferred counter banking, followed by 22 respondents preferring internet banking and 9 respondents preferred mobile banking. One respondent remained in doldrums. Regarding the type of the problems faced by the respondents, more than half of the respondents admitted that they face problem during Mobile Banking operations and around 40% respondents don't faced any kind of problems during the operations of mobile banking. Banks seldom provide any service to teach about the operations of Mobile Banking to the consumers, as corroborated by more than 3/4 of the respondents however, there were 1/4 respondents other views.

57

Regarding the frequency of usage of mobile banking, out of the 100 respondents 64 respondents admitted that they have used mobile banking only once or twice, however, they don't use mobile banking, however, 22 respondents were using mobile banking occasionally. On the other hand, there were only 14 respondents who use mobile banking on daily basis in their routine life. When respondents were fumbled regarding the reluctance towards usage of mobile banking, 30 respondents admitted that it is technical to use, followed by 23 respondents who deem it as a security threat. On the other hand, only 17 have been found using alternative modes of e-banking. There were 14 respondents who don't want to use their transactions in white. Regarding wrong deductions, 94 respondents have never experienced any wrong deduction from their account. In contrast, there were only 6 respondents who have ever experienced any wrong deduction and out of which 3-3 respondents in equal, have admitted that their amount was refunded, however, 3 respondents didn't approach their bank for the same, hence, amount was not refunded to them. Regarding the queries from the various banks, located in Bhuna and Fatehabad city, 10 Banks were taken as sample and all the surveyed banks were providing mobile banking facilities. However, the apparently declined of providing any kind of service from the bank regarding operations and benefits of Mobile Banking facilities. When the respondent banks were asked to give the preference of their consumers about using banking system, then most of the respondent banks i.e. 6 went with counter banking, followed by 2-2 each going with internet banking and mobile banking. Out of the 10 banks 9 respondent banks admitted that they dont entertain the mobile banking problems, so far as it is concerned only to lack of knowledge of operating by the consumer, however, 1 bank admitted entertainment of such complainants. Regarding the type of complaints, 5 respondent banks admitted that they receive complaints of technical problems during Mobile Banking operations, followed by 3 respondent banks who receive administrative problems and 2 receive other problems. All the respondent banks ruled out any instruction of refraining from the entertainment of mobile banking problem from the consumers. Out of the 10 respondent banks, 8 admitted most of their consumers use mobile banking only occasionally,. On the other hand, there were only 2 banks who admitted the use of mobile banking by their consumers. Out of the 8 respondent banks, 3 believe that due to technical complications, consumers don't use mobile banking, however, 2-2 respondent banks admitted that due to security threat and
58

already use on computers.. All of the 10 respondent banks echoed in one voice that they often receive complaints of wrong deductions. Out of the 10 respondent banks, 3 admitted that there has been an increase of consumers after launch of mobile bnaking, however, 7 didn't observe such increase in their bank.

Conclusion
While analyzing the various aspects of the Mobile Banking, it could be concluded that the Mobile Banking is, however, getting popular, but the pace of popularity is not as such, as it required to be. There are various reasons underlying this issue. Most common reason, that has been observed in the study, is people's bugbear to adapt with the advent of new technology. They are tech freak to use mobile banking technology. For which banks need to make necessary arrangements by installing canopies, seminars and special campaigns to impart the awareness and training about the mobile technology. This will help the banks themselves in overt or covert manner, to reduce their workload. Some of the fields are yet to be improved and rethink due to which the organization could improve the performance of its services in Bhuna and Fatehabad city. Particularly talking about the Mobile banking in Bhuna and Fatehabad city is one of the major preference of youngsters they are having almost craze about a facility through which bank could be managed and accessed through mobile phones only, it has also been the preference of those professionals who have to travel a lot for their job and cant manage the banking from counter and through internet. This is worth for the importance given to it in the Bhuna and Fatehabad city.

Recommendations
1. Special campaigns for imparting awareness regarding usage and benefits of the mobile banking. 2. Bank should target professional institutes for providing special schemes to encourage mobile banking. 3. Technical defects should be removed so that cases of wrong deductions may not occur. 4. At the time of opening accounts, consumers should be aware about the mobile banking. 5. More and more advertisements should be made by the banks, not only in the bank premises but also on the public places

59

QUESTIONNAIRE
[For Consumers]

Name : .. E mail :...

Age

: ..

Profession.

1.

Does your bank provide Mobile Banking? i. Yes

ii.

No

2.

Before providing Mobile Banking facilities does your bank provide any training for your employees? i. Yes

ii.

No

3.

Which kind of banking do you prefer at current time? i iii. Counter Banking Internet Banking ii Mobile Banking [ ]

4.

Do you face any problem while implementing Mobile Banking? i. Yes

iii.

No

5.

If yes type of problem faced by you? i. iii Technical Problem Any other 62

ii

Administrative Problem

6.

Do you face any resistance from your employees while implementing Mobile Banking system? i. Yes

iii.

No

7.

If yes extend of resistance i Less More

ii

Very Little

8.

Do all the employees in your bank like the change of adapting to Mobile Banking system? i Yes

ii.

No

60

9.

Is there an increase in number of customers after introducing Mobile Banking? i Yes

ii.

No

10.

How many customer of your bank uses Mobile Banking? i. iv. v. 10 30% 30 50% 50 70%

ii iv.

70 90%

90 & above

11.

How do you convince your customer to use Mobile Banking facility? i i. Marketing ii.

What kinds of facilities do you provide to your customer to ensure safety of their transaction?

61

QUESTIONNAIRE [For Banks]

Name : .. E mail :...

Age

: ..

Designation .

1.

Does your bank provide Mobile Banking? i Yes

ii.

No

2.

Before providing Mobile Banking facilities does your bank provide any training to the consumers? i Yes

ii.

No

3.

Consumer's preference for Banking system? i. iii Counter Banking Mobile Banking

ii iv

Internet Banking Cant say

4.

Do you entertain the problem faced by the consumer regarding operating Mobile Banking? i Yes

ii.

No

5.

Which types type of problems are mostly faced by the bank? i. iii Technical Problem Any other 62

ii

Administrative Problem

6.

Does the bank resist their employees not to entertain Mobile Banking problems pertaining to operating ? i Yes

ii.

No

7.

How far your consumers use mobile banking in their daily life? i Daily

ii

Occasionally

8.

Reason for not using Mobile Banking in routine life by your consumers i. iii Security threat ii Technical to use Any other

Already using on PC iv

62

9.

Do you often receive complaints of wrong deductions from the consumers, from your account while using Mobile Banking? i Yes

ii.

No

10.

Whether the money us refunded to the consumer? i Yes

ii.

No

11.

Is there an increase in number of customers after introducing Mobile Banking? i Yes

ii.

No

63

BIBLIOGRAPHY
Journals Aidya (2011): Emerging Trends on Functional Utilization of Mobile Banking in Developed Markets in Next 3-4 Years Tiwari, Rajnish and Buse, Stephan(2007): The Mobile Commerce Prospects: A Strategic Analysis of Opportunities in the Banking Sector, Hamburg University Press (E-Book as PDF to be downloaded) Tiwari, Rajnish; Buse, Stephan and Herstatt, Cornelius (2007): Mobile Services in Banking Sector: The Role of Innovative Business Solutions in Generating Competitive Advantage, in: Proceedings of the International Research Conference on Quality, Innovation and Knowledge Management, New Delhi, pp. 886894. Tiwari, Rajnish; Buse, Stephan and Herstatt, Cornelius (2006): Customer on the Move: Strategic Implications of Mobile Banking for Banks and Financial Enterprises, in: CEC/EEE 2006, Proceedings of The 8th IEEE International Conference on E-Commerce Technology and The 3rd IEEE International Conference on Enterprise Computing, E-Commerce, and E-Services

(CEC/EEE'06), San Francisco, pp. 522529. Tiwari, Rajnish; Buse, Stephan and Herstatt, Cornelius (2006): Mobile Banking as Business Strategy: Impact of Mobile Technologies on Customer Behaviour and its Implications for Banks, in: Technology Management for the Global Future Proceedings of PICMET '06. Owens, John and Anna Bantug-Herrera (2006): Catching the Technology Wave: Mobile Phone Banking and Text-A-Payment in the Philippines Websites http://www.dnsbank.in/mobile-banking.htm www.sbi.co.in www.wikipedi.com www.indianmba.com

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