CHAPTER - 1

INTRODUCTION
 CHAPTER 1
INTRODUCTION

1.1 Internet Banking

The Internet banking is changing the banking industry
and is having the major effects on banking relationships.
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 involves use of Internet for delivery of banking
products & services. It falls into four main categories,
from Level 1 - minimum functionality sites that offer
only access to deposit account data - to Level 4 sites -
highly sophisticated offerings enabling integrated sales
of additional products and access to other financial
services- such as investment and insurance. In other
words a successful Internet banking solution offers.

· Exceptional rates on Savings, CDs, and IRAs

· Checking with no monthly fee, free bill payment and
rebates on ATM surcharges
·Credit cards with low rates

2
· Easy online applications for all accounts, including
personal loans and mortgages
·24 hour account access
· Quality customer service with personal attention

1.2 DRIVERS OF CHANGE

Advantages previously held by large financial
institutions have shrunk considerably. The Internet has
leveled the playing field and afforded open access to
customers in the global marketplace. Internet banking is
a cost-effective delivery channel for financial
institutions. Consumers are embracing the many benefits
of Internet banking. Access to one's accounts at anytime
and from any location via the World Wide Web is a
convenience unknown a short time ago. Thus, a bank's
Internet presence transforms from 'brouchreware' status
to 'Internet banking' status once the bank goes through a
technology integration effort to enable the customer to
access information about his or her specific account
relationship. The six primary drivers of Internet banking
includes, in order of primacy are:

· Improve customer access

· Facilitate the offering of more services
· Increase customer loyalty
· Attract new customers
· Provide services offered by competitors
· Reduce customer attrition

1.3 INDIAN BANKS ON WEB

3
The banking industry in India is facing unprecedented
competition from non-traditional banking institutions,
which now offer banking and financial services over the
Internet. The deregulation of the banking industry
coupled with the emergence of new technologies, are
enabling new competitors to enter the financial services
market quickly and efficiently.

Indian banks are going for the retail banking in a big

way. However, much is still to be achieved. This study
which was conducted by students of IIML shows some
interesting facts:

· Throughout the country, the Internet Banking is in the

nascent stage of development (only 50 banks are offering
varied kind of Internet banking services).
· In general, these Internet sites offer only the most basic
services. 55% are so called 'entry level' sites, offering
little more than company information and basic
marketing materials. Only 8% offer 'advanced
transactions' such as online funds transfer, transactions &
cash management services.
· Foreign & Private Banks are much advanced in terms
of the number of sites & their level of development.

1.4 EMERGING CHALLENGES

Information technology analyst firm, the Meta Group,
recently reported that "financial institutions who don't
offer home banking by the year 2000 will become
marginalized." By the year of 2002, a large sophisticated
and highly competitive Internet Banking Market will
develop which will be driven by

· Demand side pressure due to increasing access to low

cost electronic services.

4
· Emergence of open standards for banking functionality.
· Growing customer awareness and need of transparency.
· Global players in the fray
· Close integration of bank services with web based E-
commerce or even disintermediation of services through
direct electronic payments (E- Cash).
· More convenient international transactions due to the
fact that the Internet along with general deregulation
trends eliminates geographic boundaries.
· Move from one stop shopping to 'Banking Portfolio' i.e.
unbundled product purchases.

Certainly some existing brick and mortar banks will go

out of business. But that's because they fail to respond to
the challenge of the Internet. The Internet and its
underlying technologies will change and transform not
just banking, but all aspects of finance and commerce. It
represents much more than a new distribution
opportunity. It will enable nimble players to leverage
their brick and mortar presence to improve customer
satisfaction and gain share. It will force lethargic players
who are struck with legacy cost basis, out of business-
since they are unable to bring to play in the new context.

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 CHAPTER 2

RESEARCH
METHEDOLOGY

6
 CHAPTER 2
RESEARCH METHEDOLOGY

The process of developing statement, deciding modes of data

collection and the means of analysis of data and the final
presentation leading a logical interpretation is known as
methodology. In 1st chapter the topic was introduced. In the 2nd
chapter the research methodology of the study is given.

2.1 STATEMENT OF THE PROBLEM

“Customers Perception Towards Net Banking – A Study In Raipur

City”.

2.2 PURPOSE OF THE STUDY

To Study Customers Perception Towards Internet Banking In
Raipur City.

7
2.3 OBJECTIVE OF THE STUDY
• To find out why customers in Raipur city adopted internet
banking.

• To find out main purpose of using internet banking by

customers in raipur city.

• To find out customers satisfaction towards internet banking

facility.

• To find out customers suggestions for improving in internet

banking facility.

• To identify where customers in raipur city are taking proper

safety precautions while doing internet banking.

2.4 POPULATION

Population is the total area, number of persons or group of

person, who are the subject to study. To determine the first step
of any research it define the boundaries of research. To achieve
the objective of the study, all the customer of different banks of
raipur city was selected.

2.5 SAMPLE
A sample is a finite number of units taken for the purpose of the
study out of the Universe. The sample is selected for the

8
convenient study. For the optimum sample should be selected
sample should represent whole universe. It neither feasible nor
desirable to go each and everyone so sampling is done. The
sample size is 50, and the sample units are the people of the
city.

2.6 DATA COLLECTION TOOL

Data is collected by the questionnaire. It was collected in all the
hours of the day, and for the analysis of data “PERCENTAGE
METHOD” has been used.

9
 CHPTER 3

DATA ANALYSIS
AND
INTERPRETATION

10
 CHAPTER 3
DATA ANALYSIS AND
INTERPRETATION

3.1 AGE OF RESPONDENTS

AGE GROUP FREQUENCY PERCENTAGE
Below 25 16 32%
26 – 35 22 44%
36 – 45 4 8%
46 – 55 8 16%
Above 55 0 0
TOTAL 50 100%

25

20

15
Series1
10

0
Below 26 – 35 36 – 45 46 – 55 Above
25 55

INTERPRETETION: From the above table it is found

that majority of the respondents (44%) falls under the age of 26
– 35 years followed by (32%) under the age group below 25
years respectively.

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3.2 GENDER OF RESPONDENTS

GENDER FREQUENCY PERCENTAGE

MALE 40 80%
FEMALE 10 20%
TOTAL 50 100%

female
20%

MALE
FEMALE

male
80%

INTERPRETETION: From the above table it is found

that majority of the respondents (80%)are male and (20%) of
respondents are female.

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3.3 MARITAL STATUS OF RESPONDENTS

MARITAL FREQUENCY PERCENTAGE

STATUS
MARRIED 16 32%
UNMARRIED 34 68%
TOTAL 50 100%

MARRIED
32%

MARRIED
UNMARRIED

UNMARRIE
68%

INTERPRETETION: From the above table it is found

that majority of the respondents (68%) are unmarried followed
by (32%) respondents are married.

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3.4 DUCATION QUALIFICATION OF
RESPONDENTS

EDUCATION FREQUNCY PERCENTAGE

QUALIFICATION
UNDER 8 16%
GRADUATE
GRADUATE 22 44%
POST GRADUATE 20 40%
TOTAL 50 100%

POST
UNDER GRADUATE
GRADUATE
16%
40%

GRADUATE
44%

INTERPRETETION: From the above table it is found that

majority of the respondents (44%) are graduate followed by (40%)
are post graduate and remain (16%) are under graduate.

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3.5 EMPLLOYMENT STATUS OF THE
RESPONDENTS
EMPLOYMENT FREQUENCY PERCENTAGE
STATUS
EMPLOYED 28 56%
UNEMPLOYED 17 34%
SELF EMPLOYED 5 10%
TOTAL 50% 100%

SELF EMPLOYED
10%

UNEMPLYOED
34%
EMPLOYED
56%

INTERPRETETION: From the above table it is found that

majority of the respondents (56%) are employed followed by
(34%) of respondents are unemployed and remain (10%) are self-
employed.

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3.6 MOTHLY PERSONAL INCOME OF
RESPONDENTS

MOTHLY FREQUENCY PERCENTAGE

INCOME
Less then 5000 4 8%
5000 - 10000 7 14%
10000 - 20000 8 16%
20000 – 30000 13 26%
Above 30000 27 54%
TOTAL 50 100%

LESS THEN 5000

5000-10000
ABOVE 30000

10000 - 20000

20000-30000

INTERPRETETION: From the above table it is found that

majority of the respondents (54%) are having monthly
is above 30000 followed by (26%) respondents having monthly
income is 20000 – 30000.

16
3.7 NUMBER OF DEPENDENTS

NUMBER OF FREQUENCY PERCENTACE

DEPENDEND
1 11 22%
2 23 46%
3 7 14%
More than 3 9 18%
TOTAL 50 100%

50%
46%
45%
40%
35%
30%
25% 22%
20% 18%
15% 14%

10%
5%
0%
1 2 3 More than 3

INTERPRETETION: From the above table it is found that

majority of the respondents (46%) are having 2 dependents in
their family followed by (22%) respondents are having only 1
dependent.

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3.8 NATURE OF FAMILY OF RESPONDENTS

NATUR OF FREQUENCY PERCENTACE

FAMILY
NUCLEAR 43 86%
FAMILY
JOINT FAMILY 7 14%
TOTAL 50 100%

JOINT FAMILY
14%

NUCLEAR FAMILY
86%

INTERPRETETION: From the above table it is found that

majority of the respondents (86%) are having nuclear family and
rest (14%) respondents are having joint family.

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3.9 OCCUPATION OF THE RESPONDENTS

OCCUPATION FREQUENCY PERCENTACE

ENTEPRENEUR - -
LAWER - -
DOCTORE - -
ENGG. - -
ACADEMIC - -
GOVT. - -
EMPLOYEE
OTHER 50 100%
(SPECIFIED)
TOTAL 50 100%

OTHER SPECIFY
100%

INTERPRETETION: From the above table it is found that

majority of the respondents (100%) are from other specify.

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 3.10 DO YOU HAVE SAVING ACCOUNT IN
BANK

SAVING FREQUENCY PERCETAGE

ACCOUNT
YES 50 100%
NO - -
TOTAL 50 100%

ACCOUNT IN
BANKK
100%

INTERPRETETION: From the above table it is found that

majority of (100%) respondents having a bank account.

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3.11 DO YOU USE THE FOLLOWING
FACILITY PROVIDED BY THE BANK

FACILITY FEQUENCY PCENTAGE

PHONE 1 2%
BANKING
MOBILE 2 4%
BANKING
NET BANKING 23 46%
ELECTRONIC 1 2%
FUND TRANSER
ATM 23 46%
TOTAL 50 100%

25

20

15

10

0
1 2 3 4 5

INTERPRETETION: From the above table it is found that

majority of (46%) respondents are using the facility of net banking
& ATM followed by (4%) are using mobile banking facility.

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 3.12 SCINCE HOW LONG YOU ARE USING
NET BANKING
TIME FREQUENCY PERCENTAGE
LESS THEN 6 5 10%
MONTH
6 MONTH – 1 10 20%
YEAR
1 – 3 YEAR 20 40%
MORE THEN 3 15 30%
YEAR
TOTAL 50 100%

25

20

15

10

0
1 2 3 4

INTERPRETETION: From the above table it is found that

majority of (40%) respondents are using internet banking 1 – 3
years followed by (30%) are using more then 3 years (20%) are
using 6month – 1 year and (10%) are using net banking less then 6
month.

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3.13 FROM WHERE YOU HEARD ABOUT NET
BANKING FOR THE 1ST TIME
SOURCES FREQUENCY PERCENTAGE
FRIEND 20 40%
RELATIVES 8 16%
NEWS PAPER 3 6%
MAGAZINE 2 4%
LAEFLETS OF 5 10%
THE COMPANY
BANK 3 6%
EMPLOYEE
INTERNET 5 10%
OUTHER - -
SPCIFY
TOTAL 50 100%
25

20

15
Series1
10

0
1 2 3 4 5 6 7 8

INTERPRETETION: From the above table it is found that

majority of (40%) respondents are heard about net banking first
time from friends followed by (16%) are heard from there
relatives.

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3.14 HOW DID YOU LEARN TO USE THE NET
BANKING

LEARN FROM FREQUENCY PERCENTAGE

SELF 17 34%
FRIEND 21 42%
FROM WEBSITE 5 10%
OF THE BANK
FROM BANK 7 14%
STAFF
OTHER SPECIFY - -
TOTAL 50 100%

25

20

15
Series1
10

0
1 2 3 4 5

INTERPRETETION: From the above table it is found that

majority of (42%) respondents are learn to use net banking from
there friends followed by (34%) are learn to use self (14%) are
learn from bank staff and (10%) are learn from website of bank.

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 3.15 REASON DUE TO YOU STARTED THE
USING NET BANKING
REASON FREQUNCY PERCENTAGE
IT SVES TIME 21 21%
IT IS SAFE AND 6 12%
SECURE
I CAN USE IT 15 30%
ANY WHERE
I DON’T HAVE 8 16%
TIME TO GO TO
BANK
TOTAL 50 100%

25
42%
20
30%
15

10 16%
12%
5

0
IT SVES IT IS SAFE I CAN USE IT I DON’T
TIME AND ANY HAVE TIME
SECURE WHERE TO GO TO
BANK

INTERPRETETION: From the above table it is found

that majority of (42%) respondents are started to use net
banking because it saves time followed by (30%) are started
because it saves time (16%) are stared because respondents
don’t have time to go to the bank and (12%) are stared because
it is safe & secure.

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3.16 PURPOSE OF USING NET BANKING
PURPPOSE FREQUENCY PERCENTAGE
1 16 32%
2 7 14%
3 5 10%
4 - -
5 - -
6 9 18%
7 - -
8 10 20%
9 - -
10 - -
11 3 6%
TOTAL 50 100%

18
16
14
12
10
8
6
4
2
0
1 2 3 4 5 6 7 8 9 10 11

INTERPRETETION: From the above table it is found that

majority of (32%) respondents are using net banking for view
account balance followed by (20%) are using for cheque book
request (18%) are using for cheque status enquiry.

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 3.17 SAFETY PRECAUTION FOLLED BY
RESPONDENTS
SAFETY FREQUENCY PERCENTAGE
PECAUTIONS
1 3 6%
2 8 16%
3 1 2%
4 5 10%
5 12 24%
6 6 12%
7 - -
8 2 4%
9 13 26%
10 - -
TOTAL 50 100%
14

12

10

0
1 2 3 4 5 6 7 8 9 10

INTERPRETETION: From the above table it is found that

majority of (26%) respondents are using safety precautions that
they always logout to terminate the session followed by (24%) are
never use cyber cafes to access there online account and (16%) are
keep there password top secret and change it often.

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3.17 ARE YOU SATISFIED WITH YOUR NET
BANKING EXPERIENCE

SATISFIED FREQUENCY PERCENTAGE

YES 50 100%
NO - -
TOTAL 50 100%

60
50
40
30
20
10
0
1 2

INTERPRETETION: From the above table it is found that

majority of (100%) respondents are satisfied with there net
banking experience.

28
 CHAPTER 4

FINDINGS, LIMITSTION,
SUGGESTIONS

29
 CHAPTER 4

FINDINGS, LIMITATIONS ,
SUGGESTION

4.1 FINDINGS

• It is found that majority of (42%) respondents are adopted net

banking because it saves time followed by (30%) are adopted
because it saves time (16%) are adopted because respondents
don’t have time to go to the bank and (12%) are adopted
because it is safe & secure.

• It is found that majority of (32%) respondents main purpose

of using net banking for view account balance followed by
(20%) are using for cheque book request (18%) are using for
cheque status enquiry.

• It is found that majority of (100%) respondents are satisfied

by net banking facility.

• It is found that majority of (26%) respondents are using

safety precautions that they always logout to terminate the
session followed by (24%) are never use cyber cafes to
access there online account and (16%) are keep there
password top secret and change it often.

30
4.2 LIMITATIONS

• Since the sample are taken out of universe was very small the
conclusion cannot be generalized for whole Raipur city.

• The respondents not willing to answer.

• Inadequate and wrong information from respondents.

4.3 SUGGESATIONS

• Net banking site should be made more interactive

.
• Net banking should be made user friendly

• Net banking site should be made more safe for

transaction.

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BIBLIOGRAPHY

32
 BIBLIOGRAPHY

• Kothari, C.K. Research Methodology New Age

International Publisher 3rd Addition , New Delhi, 2004
P.P. 4 – 23.

• www.google.com

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APPENDIX

34
 QUESTIONNAIRE
Respected Sir/Madam,

I am conducting a survey entitled “Customer Perception Towards

Internet Banking – A Study In Raipur City”. I need your help in
conducting this study. Kindly provide me your valuable opinion to fill this
questionnaire. Your information will be kept confidential and will be
exclusively used for academic purpose.

Nandan
Kulkarni
M.B.A. 2nd Sem.
Institute of
Management
Pt. R.S.U. Raipur
(C.G.)

PART-1
1. Demographic Information
a. Name-
b. Address-
c. Phone no.-
d. Age group- below 25 26-35 
36-45 
46-55  above 55
e. Sex- male  female
f. Marital status-  married  unmarried
g. Educational Qualification-  under graduate  graduate  post graduate
h. Employment status-  employed  unemployed  self-employed
i. Monthly personal income- less  than Rs.5000  5000>=10000  10000>=20000
20000>= 30000  above 30000
j. Number of dependents- 1 2  3  >3
k. Nature of family-  nuclear family  joint family
l. Occupation- [ ] Entrepreneur [ ] Lawyer [ ] Doctor [ ] Egg.
[ ] Academic [ ] Govt. employee [ ] others (specify)…………………
PART – 2
2. (a) Do you have saving account in a bank?
Yes { } No { }
(b) Please mention the name of the bank …………………………
3. Do you use following facilities provided by your bank?
Yes No
• Phone banking { } { }
• Mobile banking { } { }
• Net banking { } { }
• Electronic fund transfer { } { }
• ATM { } { }

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4. Since how long you are using Net Banking facility?
{ } Less then 6 month { } 6 month – 1 year
{ } 1 – 3 year { } more then 3 year
5. from where you heard about NET BANKING for the first time?
{ } Friend { } Relatives
{ } News paper { } Magazine
{ } Leaflets of bank { } Bank employee
{ } Internet { } other specify ……………….
6. How did you learn to use the NET BANKING?
{ } Self { } Friend
{ } From website of bank { } from bank staff
{ } Other specify ………….
7. Please mention the reason due to which you started using NET BANKING?
{ } Because it saves time.
{ } Because it is safe & secure.
{ } Because I can use it any where.
{ } Because I don’t have time to go to the bank.
8. For which purpose you do net banking?
{ } View account balance.
{ } Download account statement.
{ } Transfer fund to other bank accounts.
{ } Book fixed deposits.
{ } Pay utility bill.
{ } Cheque status enquiry.
{ } Request stop payment of cheque.
{ } Cheque book request.
{ } Tax deduction at source enquiry.
{ } Request for demand draft.
{ } Buy/Sell mutual fund.
9. Please tick against the safety precaution you follow?
{ } I never respond to email that request personal information.
{ } Keep my password top secret & change it often.
{ } Use special character like #, $, @ etc. in password.
{ } Do not use same password for other online account.
{ } Never use cyber cafes to access my online account.
{ } I have installed antivirus software to keep my computer secure.
{ } Ensure that site is running in secure mode.
{ } Disable “auto complete” function to prevent internet browser for remembering
password.
{ } Always logout to terminate the session.
{ } Incase of suspicion, report the matter to customer care.
10.(a) Are you satisfied with your internet banking experience?
{ } Yes { } No
(b) If no, state reason
…………………………………………………………………………...

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 12. Please give suggestion for improvement in “internet banking” facility provided by
different banks.
……………………………………………………………………………………………
Date : Signature

37