1

A
TPP Report
Titled
E-BANKING PREFERENCES AMONG PEOPLE
For the Training undergone at
HDFC BANK LTD.
BABAIN (Kurukshetra)
For fulfilling the requirement of the award of degree of MBA
Subject: TPP (MBA-5 YEAR)
Under the Supervision of-
Mr. RANDHIR SINGH
Submitted to- Submitted by-
The Director Sunny Sharma
Dr. M. K. Jain Class-9
th
. Sem.
Roll No-41
Reg. no. -09-UD-708
Institute of Management Studies
Kurukshetra University, Kurukshetra


2

DECLARATI ON
This is to certify that I, SUNNY SHARMA the student of IMS in Kurukshetra University,
Kurukshetra studying in MBA five year 9
th
sem. Roll No. 41 has undergone training in HDFC
BANK LTD. BABAIN for four week and have submitted a project report on the title E-
BANKING PREFERENCES AMONG PEOPLE as assigned by the BANK, for partial
fulfillment of degree of Master of Business Administration (M.B.A.) from Kurukshetra
University, Kurukshetra.






(SUNNY SHARMA)


3

ACKNOWLEDGEMENT

Any work of this magnitude requires the inputs, efforts and encouragement of
people from all sides. In this project report I have been fortunate in having got the
active co-operation of many people, whom I would like to thank. It gives me a
great pleasure to express my gratitude to IMS faculty members for guiding me at
each and every step. I humbly submit that without his efforts this project would
have not been conceptualized nor materialized.
I would like to thank Mr. RANDHIR SINGH at HDFC BANK LTD. BABAIN
for giving me an opportunity to work and enlightening my ways whenever I need
in completion of this project. Their able guidance and support helped me a lot.




(SUNNY SHARMA)





4

CONTENT

CHAPTER TITLE OF CHAPTER PAGE NO.
1) Introduction
A) Company profile
B) Vodafone approach

5-9
10-11
2) Vodafone pvt ltd.
A) Introduction of
organization chart


12


3) About report 13
4) Analysis and discussion
A. Recuirtment and
selection
B. Selection process
C. Source of
recuirment

14-15

16-18
18-20
5) Method of recuirment
Selection methods
Retension
21-22
23-26
27-29
6) bibliography 30








5


CHAPTER-:1

INTRODUCTION
A feature of the banking industry across the globe has been that it is increasingly becoming
turbulent and competitive, characterized by an increasing trend towards internationalization,
mergers, takeovers and consolidation of the banking industry. Moreover a number of non-
banking companies are entering the banking industry by offering financial products and services
(e.g., Toyotas credit card, GMs auto financing, etc). This has given innumerable options to
customers in choosing banking services. As a response and aided by technological
developments, banks have attempted to build customer satisfaction through providing better
products and services and at the same time to reduce operating costs. Thus the banking industry
has been constantly innovating and with the advent of technological developments, particularly
in the area of telecommunications and information technology, one of the latest innovation that
took birth, and quite inevitably, has been the internet With cyber cafs and kiosks springing up
in different cities access to the Net is going to be easy. Internet banking (also referred as e
banking) is the latest in this series of technological wonders in the recent past involving use of
Internet for delivery of banking products & services. Even the Morgan Stanley Dean Witter
Internet research emphasized that Web is more important for retail financial services than for
many other industries. Internet banking is changing the banking industry and is having the major
effects on banking relationships. Banking is now no longer confined to the branches were one
has to approach the branch in person, to withdraw cash or deposit a cheque or request a
statement of accounts. In true Internet banking, any inquiry or transaction is processed online
without any reference to the branch (anywhere banking) at any time. Providing Internet banking
is increasingly becoming a "need to have" than a "nice to have" service. The net banking, thus,
now is more of a norm rather than an exception in many developed countries due to the fact that
it is the cheapest way of providing banking services.
6



BANKING INDUSTRY PROFILE
The word "BANK" is derived from the 'Bancus' or 'Banque', which means a bench. In the early
days the European moneylenders and moneychangers used to sit on the benches and exhibit
coins of different countries in big heaps for the purpose of changing and lending money,
:
Definition:
A Banking company is defined as a company, which transacts the business of banking in India.

As per Banking Regulation Act 1949 Section 5(b)
"Banking means, accepting for the purpose of lending or investment, of deposits of money from
the public, repayable on demand or otherwise, and withdrawal by cheque, draft, or otherwise."

According to Sir John Paget
"No person or body, corporate or otherwise can be a banker who does not, (a) take deposits
accounts, (b) take current accounts, (c) issue and pay cheques, (d) collect cheques, crossed and
uncrossed, for his customers."
In simple words we can say that bank is a financial institution which deals in money and credit
by obtaining deposits from public and giving loans and credit to trade and industrial respectively.
"






7


FUNCTIONS OF BANKS

1. Primary Functions
(a) Acceptance of deposits
(b) Making Loans and Advances
1. Loans
2. Overdrafts
3. Cash Credit
4. Discounting of Bills of Exchange

2. Secondary Functions
(a) Agency Functions
1. Collection of cheques and bills etc
2. Collection of interest and dividend
3. Making payment on behalf of customers .Purchase and sale of securities.
4. Facility of transfer of funds
5. To act as trustee and executor
(b) Utility Functions
1. Safe custody of customers valuable articles and securities.
2. Underwriting facility
3. Issuing of Traveller's cheque and letter of credit
4. Facility of foreign exchange
5. Providing trade information
6. Providing information regarding credit worthiness of their customers.




8


CLASSIFICATION ON BASIS OF OWNERSHIP
On the basis of ownership banks are of the following types:

1. PUBLIC SECTOR BANK
Public sector banks are those banks that are owned by the Government. The Govt. runs these
Banks. In India 14 banks were nationalized in 1969 & in 1980 another 6 banks were also
nationalized. Therefore in 1980 the number of nationalized bank 20. But at present there are 9
banks are nationalized. All these banks are belonging to public sector category. Welfare is their
principle objective.

2. PRIVATE SECTOR BANKS
These banks are owned and run by the private sector. Various banks in the country such as ICICI
Bank, HDFC Bank etc. An individual has control over there banks in preparation to the share of
the banks held by him.

3. CO-OPERATIVE BANKS
Co-operative banks are those financial institutions. They provide short term & medium term'
loans to there members. Co-operative banks are in every state in India -Its branches at district
level are known as the central co-operative bank. The central co-operative bank in turn has its
branches both in the urban & rural areas. .Every state cooperative bank is an apex bank, which
provides credit facilities to the central co-operative bank. It mobilized financial resources from
richer section of urb3n population by accepting deposit and creating the credit like commercial
bank and borrowing from the money mkt. It also gets funds from RBI.




9


Major players of bank
Nationalised Banks / Public-sector banks
1. Allahabad Bank
2. Andhra Bank
3. Bank of Baroda
4. Bank of India
5. Bank of Maharashtra
6. Canara Bank
7. Bank of Baroda
8. Bank of India
9. Bank of Maharashtra
10. Canara Bank
11. Central Bank of India
12. Corporation Bank
13. Indian Bank
14. Indian Overseas Bank
15. Oriental Bank of Commerce
16. Punjab National Bank
17. Punjab & Sind Bank
18. Syndicate Bank
19. UCO_BankAndhra Bank
20. Dena Bank
21. Union Bank of India
22. United Bank of India
23. Vijaya Bank
24. IDBI Bank
25. Dena Bank
26. ECGC
SBI and associate banks
1. State Bank of India
2. State Bank of Bikaner & Jaipur
3. State Bank of Hyderabad
4. State Bank of Mysore
5. State Bank of Patiala
6. State Bank of Travancore
7. State Bank of Saurashtra (merged into SBI in 2008)
8. State bank of Indore (merged into SBI in 2010

10


CHAPTER-2

HDFC COMPANY PROFILE

HDFC BANK LTD
Type Private
Founded 1994
Headquarters
HDFC Bank Ltd.,
Mumbai, India
Industry
Banking
Insurance
Capital Markets and allied industries
Products Loans, Credit Cards, Savings,
Investment vehicles, Insurance etc.
Website www.hdfcbank.com

HDFC Bank (NYSE: HDB), one amongst the firsts of the new generation, tech-savvy
commercial banks of India, was incorporated in August 1994, after the Reserve Bank of India
allowed setting up of Banks in the private sector. The Bank was promoted by the Housing
Development Finance Corporation Limited, a premier housing finance company (set up in 1977)
of India..




11


History

The Housing Development Finance Corporation Limited (HDFC) was amongst the first to
receive an 'in principle' approval from the Reserve Bank of India (RBI) to set up a bank in the
private sector, as part of the RBI's liberalisation of the Indian Banking Industry in 1994. The
bank was incorporated in August 1994 in the name of 'HDFC Bank Limited', with its registered
office in Mumbai, India. HDFC Bank commenced operations as a Scheduled Commercial Bank
in January 1995.

Branch network
Currently HDFC Bank has 1416 branches, 3382 ATMs, in 550 cities in India, and all branches of
the bank are linked on an online real-time basis. The bank offers many innovative products &
services to individuals, corporates, trusts, governments, partnerships, financial institutions,
mutual funds, insurance companies. It is a path breaker in the Indian banking sector. In 2007
HDFC Bank acquired Centurion Bank of Punjab taking its total branches to more than 1,000.
Though, the official license was given to Centurion Bank of Punjab branches, to continue
working as HDFC Bank branches, on May 23, 2008.


BOARD OF DIRECTORS

Mr. Aditya Puri (Managing Director)
Mr. Keke Mistry
Dr. (Mrs.) Amla Samanta
Mr. Venkat Rao Gadwal
Mr. Anil Ahuja
Mr. Vineet Jain
Mr. Ranjan Kapoor
Mr. Bobby Parikh
12

Mrs. Renu Karnal

VICE President (Legal ) & Co. Secretary
Mr. Sanjay Dongre

Auditor
P.C. Honsolia & Co. (Chartered Accountant)

Registered Office
HDFC Bank House
Senapati Bapat Marg
Loveer Parel Mumbai 400013
Tel. No. 56521000
Fax No. 24960739
Web. Site www.hdfcbank.com


BUSINESS FOCUS

HDFC Bank's mission is to be a World-Class Indian Bank. The Bank's aim is to build sound
customer franchises across distinct businesses so as to be the preferred provider of banking
services in the segments that the bank operates in and to achieve healthy growth in profitability,
consistent with the bank's risk appetite. The bank is committed to maintain the highest level of
ethical standards, professional integrity and regulatory compliance. HDFC Bank's business
philosophy is based on four core values: Operational Excellence, Customer Focus, Product
Leadership and People .



13



BUSINESS PROFILE

HDFC Bank caters to a wide range of banking services covering both commercial and
investment banking on the wholesale side and transactional/branch banking on the retail side.
The bank has three key business areas:


(a) Wholesale Banking Services

The Bank's target market is primarily large, blue chip manufacturing companies in the Indian
corporate sector and to a lesser extent, emerging midsized corporates. For these corporate, the
Bank provides a wide range of commercial and transactional banking services, including
working capital finance, trade services, transactional services, cash management, etc. The bank is
also a leading provider of structured solutions that combine cash' management services with
vendor and distributor finance for facilitating superior supply chain management for its corporate
customers.

(b) Retail Banking Services
The objective of the Retail Bank is to provide its target market customers a full range of financial
products and banking services, giving the customer a one stop window for all his/her banking
requirements. The products are backed by worldclass service and delivered to the customers
through the growing branch network, as well as through alternative delivery channels like
ATMs, Phone Banking, Net Banking and Mobile Banking. The HDFC Bank Preferred program
for high net worth individuals, the HDFC Bank Plus and the Investment Advisory Services
programs have been designed keeping in mind needs of customers who seek distinct financial
solutions, information and advice on various investment avenues. The Bank also has a wide array
of retail loan products including Auto Loans, Loans against marketable securities, Personal
Loans and Loans for Two-wheelers. Its also a leading provider of Depository Services to retail
14

customers, offering customers the facility to hold their investments in electronic form. HDFC
Bank was the first bank in India to launch an International Debit Card in association with VISA
(VISA Electron) and issues the MasterCard Maestro debit card as well. The debit card allows the
user to directly debit his account at the point of purchase at a merchant establishment, in India
and overseas. The Bank launched its credit card in association with VISA in November 2001.
The Bank is also one of the leading players in the "merchant acquiring" business with over
25,000 Point-of-sale (POS) terminals for debit credit cards acceptance at merchant
establishments. The Bank is well positioned as a leader in various net-based B2C opportunities
including a wide range of Internet banking services for Fixed Deposits, Loans, Bill Payments.,
etc.

(c) Treasury Operations
Within this business, the bank has three main product areas-Foreign Exchange and Derivatives,
Local Currency Money Market & Debt Securities, and Equities With the liberalization of the
financial markets in India, corporate need more sophisticated risk management information,
advice and product structures, These and fine pricing on various treasury products are provided
through the bank's Treasury team. To comply with statutory reserve requirements, the bank is
required to hold 25% of its deposits in government securities. The Treasury business is
responsible for managing the returns and market risk on this investment portfolio.








15



PRODUCT OF HDFC BANK
1) ACCUNTS AND DEPOSISTS
a) SAVING A/C
b) SALARY A/C
c) CURRENT A/C
d) FIXED DEPOSIT A/C
e) DEMAT A/C
f) SAFE DEPOSIT A/C
2) LOAN
a) PERSONAL LOAN
b) HOME LOAN
C) EDUCATIONAL LOAN
d) LOAN AGAINST PROPERTY
e) GOLD LOAN
3) INVESTMAENT AND INSURANCE
a) MUTUAL FUND
b) INSURANCE
c) GENRAL AND HEALTH INSURANCE
d) BONDS
e) EQUITIES AND DERIVATIVES
4) FOREX
16

a) PRODUCT AND SERVICES
b)TRADE
c)FOREX LTD
5) ACCESS YOUR BANK
a) ATM
b) MOBILE BANKING
c) PHONE BANKING
d) NET BANKING
e) BRANCH NETWORK












17



E-BANKING

WHAT IS E-BANKING?

Electronic banking is one of the truly widespread avatars of E-commerce the world over. Various
authors define E-Banking differently but the most definition depicting the meaning and features
of E-Banking are as follows:
1. Banking is a combination of two, Electronic technology and Banking.
2. Electronic Banking is a process by which a customer performs banking Transactions
electronically without visiting a brick-and-mortar institutions.
3. E-Banking denotes the provision of banking and related service through
Extensive use of information technology without direct recourse to the bank by
the customer.

NEED FOR E-BANKING

One has to approach the branch in person, to withdraw cash or deposit a cheque or request a
statement of accounts. In true Internet banking, any inquiry or transaction is processed online
without any reference to the branch (anywhere banking) at any time. Providing Internet banking
is increasingly becoming a "need to have" than a "nice to have" service. The net banking, thus,
now is more of a norm rather than an exception in many developed countries due to the fact that
it is the cheapest way of providing banking services. Banks have traditionally been in the
forefront of harnessing technology to improve their products, services and efficiency. They have,
over a long time, been using electronic and telecommunication networks for delivering a wide
range of value added products and services. The delivery channels include direct dial up
connections, private networks, public networks etc and the devices include telephone, Personal
Computers including the Automated Teller Machines, etc. With the popularity of PCs, easy
18

access to Internet and World Wide Web (WWW), Internet is increasingly used by banks as a
channel for receiving instructions and delivering their products and services to their customers.
This form of banking is generally referred to as Internet Banking, although the range of products
and services offered by different banks vary widely both in their content and sophistication.


EVOLUTION OF E-BANKING

The story of technology in banking started with the use of punched card machines like
Accounting Machines or Ledger Posting Machines. The use of technology, at that time, was
limited to keeping books of the bank. It further developed with the birth of online real time
system and vast improvement in telecommunications during late 1970s and 1980s.it resulted in
a revolution in the field of banking with convenience banking as a buzzword. Through
Convenience banking, the bank is carried to the doorstep of the customer. The 1990s saw the
birth of distributed computing technologies and Relational Data Base Management System. The
banking industry was simply waiting for these technologies. Now with distribution technologies,
one could configure dedicated machines called front-end machines for customer service and risk
control while communication in the batch mode without hampering the response time on the
front-end machine. Intense competition has forced banks to rethink the way they operated their
business.They had to reinvent and improve their products and services to make them more
beneficial and cost effective. Technology in the form of E-banking has made it possible to find
alternate banking practices at lower costs.More and more people are using electronic banking
products and services because large section of the banks future customer base will be made up of
computer literate customer, the banks must be able to offer these customer products and services
that allow them to do their banking by electronic means. If they fail to do this will, simply, not
survive. New products and services are emerging that are set to change the way welook at money
and the monetary system.



19















20


E-Banking transaction Mechanism


E-BANKING PRODUCTS

Automated Teller Machine (ATM )
These are cash dispensing machine, which are frequently seen at banks and other locations such
as shopping centers and building societies. Their main purpose is to allow customer to draw cash
at any time and to provide banking services where it would not have been viable to open another
branch e.g. on university campus. An automated teller machine or automatic teller machine
(ATM) is a computerized telecommunications device that provides a financial institution's
customers a method of financial\ transactions in a public space without the need for a human
clerk or bank teller. On most modern ATMs, the customer identifies him or herself by inserting a
plastic ATM card with a magnetic stripe or a plastic smartcard with a chip that contains his or
her card number and some security information, such as an expiration date or CVC (CVV).
Security is provided by the customer entering a personal identification number (PIN). Using an
ATM, customers can access their bank accounts in order to make cash withdrawals (or credit
card cash advances) and check their account balances. Many ATMs also allow people to deposit
cash or checks, transfer money between their bank accounts, pay bills, or purchase goods and
services. ATMs are known by various casual terms including cash machine, hole-in-the-wall,
cash point or Bancomat (in Europe and Russia). The occasionally-used ATM Machine is an
example of RAS syndrome.
Some of the advantages of ATM to customers are:-
Ability to draw cash after normal banking hours
Quicker than normal cashier service
Complete security as only the card holder knows the PIN
Does not just operate as a medium of obtaining ca
Customer can sometimes use the services of other bank ATMs.

21

Telebanking or Phone Banking

Telephone banking is relatively new Electronic Banking Product. However it is fastly becoming
one of the most popular products. Customer can perform a number of transactions from the
convenience of their own home or office; in fact from anywhere they have access to phone.
Customers can do following:-
Check balances and statement information
Transfer funds from one account to another
Pay certain bills
Order statements or cheque book
Demand draft request
This facility is available with the help of Voice Response System (VRS). This system basically,
accepts only TONE dialed input. Like the ATM customer has to follow particular process,
initially account number and telephone PIN are fed for the process to start. Also the VRS system
provides the users within additional facilities such as changing existing password with the new
desired, information about new products, current interest rates etc.

Mobile Banking

Mobile banking comes in as a part of the banks initiative to offer multiple channel banking
providing convenience for its customer. A versatile multifunctional, free service that is
accessible and viewable on the monitor of mobile phone. Mobile phones are playing great role in
Indian banking- both directly and indirectly. They are being used both as banking and other
channels.





22


Internet Banking

The advent of the Internet and the popularity of personal computers presented both an
opportunity and a challenge for the banking industry. For years, financial institutions have used
powerful computer networks to automate million of daily transactions; today,
Customer can sometimes use the services of other bank ATMs.

Telebanking or Phone Banking

Telephone banking is relatively new Electronic Banking Product. However it is fastly becoming
one of the most popular products. Customer can perform a number of transactions from the
convenience of their own home or office; in fact from anywhere they have access to phone.
Customers can do following:-
Check balances and statement information
Transfer funds from one account to another
Pay certain bills
Order statements or cheque books
Demand draft request
This facility is available with the help of Voice Response System (VRS). This system basically,
accepts only TONE dialed input. Like the ATM customer has to follow particular process,
initially account number and telephone PIN are fed for the process to start. Also the VRS system
provides the users within additional facilities such as changing existing password with the new
desired, information about new products, current interest rates etc.





23


Mobile Banking

Mobile banking comes in as a part of the banks initiative to offer multiple channel banking
providing convenience for its customer. A versatile multifunctional, free service that is
accessible and viewable on the monitor of mobile phone. Mobile phones are playing great role in
Indian banking- both directly and indirectly. They are being used both as banking and other
channels.

Internet Banking

The advent of the Internet and the popularity of personal computers presented both an
opportunity and a challenge for the banking industry. For years, financial institutions have used
powerful computer networks to automate million of daily transactions; today,


TYPES OF INTERNET BANKING OR E-BANKING

Understanding the various types of Internet banking will help examiners assess the risks
involved. Currently, the following three basic kinds of Internet banking are being employed in
the marketplace.

Informational- this is the basic level of Internet banking. Typically, the bank has marketing
information about the banks products and services on a stand-alone server. The risk is relatively
low, as informational systems typically have no path between the server and the banks internal
network. This level of Internet banking can be provided by the banks or outsourced. While the
risk to a bank is relatively low, the server or web site may be vulnerable to alteration.
Appropriate controls therefore must be in place to prevent unauthorized alterations to the banks
server or web site.
24


Communicative- this type of Internet banking systems and the customer. The interaction
between the banks system and the customer. The interaction may be limited to electronic mail,
account enquiry, loan applications, or static file updates (name and address change). Because
these servers may have a path to the banks internal networks, the risk is higher with this
configuration than with informational systems. Appropriate controls need to be in the place to
prevent, monitor, and alert management of any unauthorized attempt to access the banks
internal networks and computer systems. Virus controls also become much more critical in this
environment.

Transactional- this level of Internet banking allows customers to execute transactions. Since
a path typically exists between the server and the bank or outsourcers internal network, this is
the highest risk architecture and must have the strongest controls. Customer transactions can
include accessing accounts, paying bills, transferring funds etc.

ADVANTAGES OF INTERNET BANKING

Convenience- Unlike your corner bank, online banking sites never close; theyre available 24
hours a day, seven days a week, and theyre only a mouse click away.

Ubiquity- If youre out of state or even out of the country when a money problem arises, you
can log on instantly to your online bank and take care of business, 24\7.

Transaction speed- Online bank sites generally execute and confirm transactions at or
quicker than ATM processing speeds.

Efficiency-You can access and manage all of your bank accounts, including IRAs, CDs, even
securities, from one secure site.

25


Effectiveness- Many online banking sites now offer sophisticated tools, including account
aggregation, stock quotes, rate alert and portfolio managing program to help you manage all of
your assets more effectively. Most are also compatible with money managing programs such as
quicken and Microsoft money.

DISADVANTAGES OF INTERNET BANKING

Start-up may take time-In order to register for your banks online program, you will
probably have to provide ID and sign a form at a bank branch. If you and your spouse wish to
view and manage their assets together online, one of you may have to sign a durable power of
attorney before the bank will display all of your holdings together.

Learning curves- Banking sites can be difficult to navigate at first. Plan to invest some time
and\or read the tutorials in order to become comfortable in your virtual lobby.

Bank site changes- Even the largest banks periodically upgrade their online programs,
adding new features in unfamiliar places. In some cases, you may have to re-enter account
information.








26


E- BANKING SERVICES:

1. Bill payment service
Each bank has tie-ups with various utility companies, service providers and insurance
companies, across the country. It facilitates the payment of electricity and telephone bills, mobile
phone, credit card and insurance premium bills. To pay bills, a simple one-time registration for
each biller is to be completed. Standing instructions can be set, online to pay recurring bills,
automatically. One-time standing instruction will ensure that bill payments do not get delayed
due to lack of time. Most interestingly, the bank does not charge customers for online bill
payment.

2. Fund transfer
Any amount can be transferred from one account to another of the same or any another bank.
Customers can send money anywhere in India. Payees account number, his bank and the branch
is needed to be mentioned after logging in the account. The transfer will take place in a day or
so, whereas in a traditional method, it takes about three working days. ICICI Bank says that
online bill payment service and fund transfer facility have been their most popular online
services.

3. Credit card customers
Credit card users have a lot in store. With Internet banking, customers can not only pay their
credit card bills online but also get a loan on their cards. Not just this, they can also apply for an
additional card, request a credit line increase and God forbid if you lose your credit card, you can
report lost card online.

4. Railway pass
This is something that would interest all the aam janta. Indian Railways has tied up with ICICI
bank and you can now make your railway pass for local trains online. The pass will be delivered
27

to you at your doorstep. But the facility is limited to Mumbai, Thane, Nasik, Surat and Pune. The
bank would just charge Rs 10 + 12.24 percent of service
tax.

5. Investing through Internet banking

Opening a fixed deposit account cannot get easier than this. An FD can be opened online through
funds transfer. Online banking can also be a great friend for lazy investors. 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 the facility to purchase mutual funds
directly from the online banking system. So it removes the worry about filling those big forms
for mutual funds, they will now be just a few clicks away. Nowadays, most leading banks offer
both online banking and demat account. However if the customer have there demat account with
independent share brokers, then need to sign a special form, which will link your two accounts.

6. Recharging your prepaid phone
Now there is no need to rush to the vendor to recharge the prepaid phone, every time the talk
time runs out. Just top-up the prepaid mobile cards by logging in to Internet banking. By just
selecting the operator's name, entering the mobile number and the amount for recharge, the
phone is again back in action within few minutes.

7. Shopping at your fingertips
Leading banks have tie ups with various shopping websites. With a range of all kind of products,
one can shop online and the payment is also made conveniently through the account. One can
also buy railway and air tickets through Internet banking



28

RESEARCH METHODOLOGY

Research is defined as human activity based on intellectual application in the investigation of
matter. The primary purpose for applied research is discovering, interpreting, and the
development of methods and systems for the advancement of human knowledge on a wide
variety of scientific matters of our world and the universe. The term research is also used to
describe an entire collection of information about a particular subject.

Methodology is the method followed while conducting the study on a particular project.
Through this methodology a systematic study is conducted on the basis of which the basis of a
report is produced. It is a written game plan for conducting Research. Research methodology has
many dimensions. It includes not only the research methods but also considers the logic behind
the methods used in the context of the study and explains why only a particular method or
technique has been used. It also helps to understand the assumptions underlying various
techniques and by which they can decide that certain techniques will be applicable to certain
problems and other will not. Therefore in order to solve a research problem, it is necessary to
design a research methodology for the problem as the some may differ from problem to problem.

Nature
The methodology adopted to achieve the project objective involved exploratory research &
descriptive research method. The information required for fulfilling the objective of study was
collected from various primary and secondary sources.








29

OBJECTIVES OF THE STUDY:-

The main objectives of the study are:
1) To study the awareness level of service class people regarding E-Banking.

2) To understand the problems encountered in by service class people while using
E-Banking services(ATM, Phone banking, etc)




Type of research

This study is EXPLORATORY and DESCRIPTIVE in nature. It helps in breaking vague
problem into smaller and precise problem and emphasizes on discovering of new ideas and
insights. Exploratory research was conducted during the initial stage of the research process
which helped to refine the problem into researchable one. It has progressively narrowed the
scope of research topic.

Research design
Research design constitutes the blue print for the collection, measurement and analysis of data.
The present study seeks to identify the extent of preferences of E-Banking over traditional
banking among service class. The research design is exploratory in nature. The research has been
conducted on service class people within yamunanagar. For the selection of the sample,
convenient sampling method was adopted and an attempt has been made to include all the age
groups and gender within the service class.



30

Sources of data:
Following are the methods of sources of data:

Secondary data:
Articles on E-Banking taken from journals, magazines published from time to time.
Through internet.

Primary data:
Questionnaire was used to collect primary data from respondents. The questionnaire was
structured type and contained questions relating to different dimensions of ebanking preferences
among service class such as level of usage, factors influencing the usage of e-banking services,
benefits accruing to the users of e-banking services, problems encountered. An attempt was also
made to elicit reasons for its non-usage. The questions included in the questionnaire were open-
ended, dichotomous and offering multiple choices.

Sampling technique:
The sampling technique used for judgment is CONVENIENCE

AND JUDGEMENT SAMPLING.

Sampling unit: It defines the target population that will be sampled i.e. it answers who is to be
surveyed. In this study, the sampling unit is the people of BABAIN

Sampling size: It indicates the numbers of people to be surveyed. Though large samples give
more reliable results than small samples but due to constraint of time and money, the sample size
was restricted to 90 respondents. The respondents belong to different income group and
profession.
Method of data collection: The survey method is used to collect the data. Various places of
BABAIN visited for the purpose of collection of data.

31

DATA ANALYSIS AND INTERPRETATION

Q.N. 1. While opening up the account, were you aware of E-banking services provided by your
bank?

Ans. No. of respondents
Fully aware 46
Had an idea 19
No 25



Interepretation
Table 1, overall percentage of service class people having complete knowledge about e-banking
services provided by the bank while opening an account in it is 46 those having some idea about
it is 19 and the percentage of people having no awareness of e-banking services provided by the
bank is 25. It can reasonably, be concluded that nearly 65 of the population is having awareness
about e-banking services



46
19
25
No. of respondents
Fully aware
Had an idea
No
32

Q.N. 2 If answer to question no.1 is c, how did you get to know about E-banking services
of your bank?
Ans. No. of respondents
Personal visit 11
Executive from the bank 05
Advertisements 02
Friends and relatives 07


Table 2, indicates the percentage distribution of awareness avenues, the major are in favour for
personal visit, which score 11 among different avenues such as t, executives of the banks,
advertisements and friend/relatives. While the least score is for personal visit and that of other
sources.






11
5
2
7
No. of respondents
Personal visit
Executive from the bank
Advertisements
Friends and relatives
33

Q.N.3) If answer to question no.1 is a or b, which of the following E-banking services are
you aware of?

Ans. No. of respondents
ATM 65
Mobile banking 12
Phone banking 13
Internet banking 23



ANALYSIS Interpretation
E-banking constitutes services provided in terms of ATMs, Phone Banking, Mobile Banking,
Internet Banking etc, of which the first six have been covered. Amongst these ATM scores the
largest used service status




65
12
13
23
No. of respondents
ATM
Mobile banking
Phone banking
Internet banking
34

Q4. Do you use E-banking services?
Ans. No. of respondents
Yes 43
No 22




ANALYSIS:- shows that among those aware (which account for 65 in number) about 43
persons use e-banking services, which is 74% of total population studied..







43
22
No. of respondents
Yes
No
35

Q5. If answer to question no.4 is yes, which service of bank you would prefer more to use?
Ans. No. of respondents
ATM 43
Mobile banking 00
Phone banking 00
Internet banking 00



ANALYSIS:-

most of the people use ATM service






43
0 0
0
No. of respondents
ATM
Mobile banking
Phone banking
Internet banking
36

Q6. . Which of the following factors influence you the most to use E-banking services?
Ans. No. of respondents
All time availability 32
Ease of use 09
Friends/ Relatives 02



ANALYSIS:- ,
, influencing the usage was made by listing out various factors such as all time availability, ease
of use, etc., and from which it came to fore that amongst the various factors all time availability
is ranked as the major motivating factor, followed by ease of use,






32
9
2
No. of respondents
All time availability
Ease of use
Friends/ Relatives
37

Q7. Which of the following benefits accrue to you, while using E-banking services?
Ans. No. of respondents
Time saving 24
Inexpensive 07
Easy processing 09
Easy fund transfer 03



ANALYSIS:- When asked to list various benefits accruing from the usage of e-banking, time
saving received highest percentage score at 24 among different benefits







24
7
9
3
No. of respondents
Time saving
Inexpensive
Easy processing
Easy fund transfer
38

Q8. Rate the problems identified while using E-banking services?
Ans. No. of respondents
Time consuming 03
Insecurity 24
ATM out of order 04
Amount debited but not
withdrawn
08
Password forgotten 04




ANALYSIS Most of the users face the problem of insecurity 24, followed by time consuming 8,
password forgotten 4 and then amount debited but not withdrawn 8




3
24
4
8
4
No. of respondents
Time consuming
Insecurity
ATM out of order
Amount debited but not
withdrawn
Password forgotten
39

Q9. Kindly rate the following reasons enlisted for not using the E-banking services?
Ans. No. of respondents
No need( Satisfied with
traditional banking)
10
Insecurity 04
No access to internet/mobile 06
Lack of operational
knowledge
2


ANALYSIS
From the non users, an attempt was made to elicit the reasons for its non usage. As indicated by
table, satisfaction with traditional banking was considered as prime demotivating factor,
followed closely by the fear of insecurity, then hidden cost factor, which suggested their
resistance to change.






10
4
6
2
No. of respondents
No need( Satisfied with
traditional banking)
Insecurity
No access to
internet/mobile
Lack of operational
knowledge
40

FINDINGS OF THE STUDY

The overall percentage of servicemen having complete knowledge about ebanking
services provided by the bank while opening an account in it is 46%, those having some
idea about it is 19% and the percentage of people have no awareness of e-banking
services provided by the bank is 25%. It can reasonably, be concluded that nearly 65% of
the population is having awareness about ebanking services.
The percentage distribution of awareness avenues, the major skewness is in favour of for
personal visit, which score 11 among different avenues such as, executives of the banks,
advertisements and friend/relatives. While the least score is for advertisement .
Among those aware (which account for 65 in number) about 43 persons use ebanking
services,
E-banking constitutes services provided in terms of ATMs, Debit Card, Credit Card,
Phone Banking, Mobile Banking, Internet Banking etc, of which the first six have been
covered. Amongst these ATM scores the largest used service status (100%)
A study of the factors, influencing the usage was made by listing out various factors such
as all time availability, ease of use, nearness etc., and amongst the various factors all time
availability is ranked as the major motivating factor,
.When asked to list various benefits accruing from the usage of e-banking, time saving
received highest percentage score at 42.42% among different benefits such as time saving
(42.42%), inexpensive (12.72%), easy processing (24.24%), easy fund
transfer(15.75%).Quite interestingly, easy processing feature scored more than the
inexpensiveness of the e-banking services. The other benefits accruing to the people
include ready availability of funds, removal of middlemen and no rude customer relation
executives.
From the non users, an attempt was made to elicit the reasons for its non usage.
Satisfaction with traditional banking was considered as prime de-motivating factor,
followed closely by the fear of insecurity, then hidden cost factor, which suggested their
resistance to change, which to some extent can be countered by aggressive advertisement
and utilizing other modes of awareness dissemination as well
41

CHAPTER-4

SWOT ANALYSIS

STRENGTHS :

It has an extensive distribution network comprising of 535 branches in 312 cities &
one international office in Dubai this provides a competitive edge over the competitors.
The Bank has a strong retail depository base & has more than million customers.
Bank has strong brand equity.
ISO 9001 certification for its depository & custody operations & for its backend
processing of retail operations & direct banking operation.
The bank is a market leader in cash settlement service for the major stock exchanges in
its country.
HDFC Bank is one of the largest private sector banks working in India.
It has a highly automated environment in terms of information technology &
communication system.
Infrastructure is one of the best in the country.
It has many innovative products like kids Advantage scheme, NRI services.









42


WEAKNESSES :

Account opening and delivery of cheque book take more time. Lack of availability of
different credit products like CC Limit, Bill discounting facilities.

Complicated terms and conditions of products, which is not easily understandable by the
layman.


OPPORTUNITIES :

Branch expansion
Door step services
Greater liberalization is foreign ownership via FDI in Indian Pvt. Sector banks.
Infrastructure movements & better systems for trading & settlement in the Govt.
securities & foreign exchange markets.

THREATS :

The bank has started facing competition from players like SBI, PNB in the finance
market itself. This may reduce the profit margins in the future.
Some Pvt. Banks have 7 days banking.






43

LIMITATIONS OF THE STUDY
Every research is conducted under some constraints and this research is not an exception.
Limitations of this study are as follows:-
1. There were several time constraints.
2. The study is limited to areas of babain only.
3. The sample size of only 90 was taken from the large population for the purpose of study, so
there can be difference between results of sample from total population.
4. The study is related to service class people only.
5. People were reluctant to go in to details because of their busy schedules.
6. Merely asking questions and recording answers may not always elicit the actual information
sought.
7. Due to continuous change in environment, what is relevant today may be irrelevant tomorrow.



CONCLUSION
The usage of E-banking is all set to increase among the service class. The service class at the
moment is not using the services thoroughly due to various hurdling factors like insecurity and
fear of hidden costs etc. So banks should come forward with measures to reduce the
apprehensions of their customers through awareness campaigns and more meaningful
advertisements to make E-banking popular among all the age and income groups. Further, with
increasing consumer demands, banks have to constantly think of innovative customized services
to remain competitive. E-Banking is an innovative tool that is fast becoming a necessity. It is a
successful strategic weapon for banks to remain profitable in a volatile and competitive
marketplace of today. In future, the availability of technology to ensure safety and privacy of e-
transactions and the RBI guidelines on various aspects of internet banking will definitely help in
rapid growth of internet banking in India.



44

SUGGESTIONS

For long-term success, a bank may follow:
Adopting a webs mindset included. It will enable users to give suggestions for
improvements, which can be incorporated in later versions wherever feasible.
Second phase provides services such as account information and balances, statement of
account, transaction tracking, mailbox, check book issue, stop payment, financial and
customized information.
Give proper training to customers for using i-banking
Create a trust in mind of customers towards security of there accounts
Provide a platform from where the customers can access different accounts at single time
without extra charge.
Customers should be motivated to use I banking facilities more.















45

BIBLIOGRAPHY

WEBSITES
ww.banknetindia.com
www.bharatbook.com























46

Annexure

QUESTIONAIRE
1. While opening up the account, were you aware of E-banking services
provided by your bank?
a). Fully aware b). Had an idea c). No

2. If answer to question no.2 is c, how did you get to know about E-banking services
of your bank?
a). Personal visit b). Executive from the bank
c). Advertisements d). Friends/ Relatives

3. If answer to question no.2 is a or b, which of the following E-banking services are
you aware of?
a). ATM b). Phone banking
c). Mobile banking d). Internet banking

4. Do you use E-banking services?
a). Yes b). No

(If No, answer question no. 9 directly).

5. If answer to question no.4 is yes, which service of bank you would prefer more to use ?
a) ATM b) Phone Banking c) Internet Banking

6. Which of the following factors influence you the most to use E-banking services?
a) All time availability b) Ease of use
c) Friends/ Relatives

47

7. Which of the following benefits accrue to you, while using E-banking services?
a). Time saving b). Inexpensive
c). Easy processing d). Easy fund transfer


8. Rate the problems identified while using E-banking services?
a) Time consuming b) Insecurity
c) ATM out of order d ) Amount debited but not withdrawn
e) Password forgotten

9. Kindly rate the following reasons enlisted for not using the E-banking services?
a) No need( Satisfied with traditional banking)
b) Insecurity
c) No access to internet/mobile
d) Lack of operational knowledge

Respondents Profile
Name : ________________
Age : ________________
Gender (M/F) : ________________
Profession : ________________
Organisation : ________________