Q. what is BANKING.?

In simple words, Banking can be defined as the business activity of accepting

and safeguarding money owned by other individuals and entities, and then
lending out this money in order to earn a profit.

However, with the passage

of time, the activities covered by banking business have widened and now
various other services are also offered by banks. The banking services these
days include issuance of debit and credit cards, providing safe custody of
valuable items, lockers, ATM services and online transfer of funds across the
country / world.

It is well said that banking plays a silent, yet crucial part in our day-to-day
lives. The banks perform financial intermediation by pooling savings and
channelizing them into investments through maturity and risk
transformations, thereby keeping the economys growth engine revving.

Banking business has done wonders for the world economy. The simple
looking method of accepting money deposits from savers and then lending the
same money to borrowers, banking activity encourages the flow of money to
productive use and investments. This in turn allows the economy to grow. In
the absence of banking business, savings would sit idle in our homes, the
entrepreneurs would not be in a position to raise the money, ordinary people
dreaming for a new car or house would not be able to purchase cars or houses

Q. what is E-BANKING.?

For many people, electronic banking means 24-hour access to cash through an
automated teller machine (ATM) or Direct Deposit of paychecks into checking or
savings accounts. But electronic banking involves many different types of
transactions, rights, responsibilities and sometimes, fees.

1 Introduction
In response to reforms, Indian banking sector has undergone radical
transformation which has altered the organizational structure, ownership pattern,
system and procedures of operations, made human resource management more
important and infused competition in the banking sector. The competition has
forced the institutions to restructure to adopt global environment. In India, while
the banking sector continues to play a predominant role, the transformation has
further increased the importance of financial sector. Therefore, the government and
RBI have taken several initiatives to facilitate the banks to compete in
transformation environment. As a regulator and supervisor, the RBI has made
considerable progress in facilitating the development of electronic system and in
upgrading technology with a view to establishing an efficient and secure system
functioning in a changing environment which has further helped the development
of electronic banking in India. The government of India enacted the IT Act, 2000
with effect from October 17, 2000, which provides legal recognition to electronic
transactions and e-commerce.
The recent transformation is changing the face of banking sector all over the world
where ebanking plays crucial role to manage all corners of banking business. The
customers feel comfortable with ebanking because of convenient, prompt and cost
effective services while banks also gain plunge in superior efficiency, reduced
costs and more satisfied customers. Information technology has also infused the
banks with more competitiveness in global market. These effects of transformation
on banking sector prompts to review banking system because the banks are

operating in state of global environment. Issue of efficiency and customer

satisfaction is always at the centre stage of discussion in the recent instance of
transformation where banking system is the most triggered area. Banking sector is
always a centre of attention because it plays dominant role in economic
development.
OBJECTIVE OF STUDY
1.
2.
3.
4.

To examine the impact of e banking

To examine to extend which organization use e banking
To recommend better way of improving e banking
Scope Of Electronic Banking :To day the customer demands the services of banks 24 hours where he lives
even he is in the airplane.
Now in this modern age the entire banking structure has been changed due to
widespread internet technology. Now all the business like commerce, trade,
import, export, purchase and sale of goods is relying upon electronic
banking. By using the advance electronic technology the banking services
are fast and economical.
There is a saving time an saving of money in the use of E.banking. If any
country wants to work in the world market, it will have to improve the
banking services at international level because old traditional banking is not
acceptable in the changing global economy.
The online banking facility has been provided by the large number of
commercial banks. On other hand credit card facility is also available in the
various commercial banks. Now every bank wants to attract the customers
and for this purpose the offers the latest facilities so i seems that no any bank
will survive in the market if he fails to provide up date facilities.

ADVANTAGES OF ELECTRONIC BANKING :Now it is also called on line or home banking electronic banking was stared
with the use of proprietary software. Following are the important advantages
of electronic banking :
1. Paper Work Reduced :The traditional procedure of banking is manual and paper based. Electronic
banking is gradually replacing the paper transactions in the banks which has
reduced the paper work.
2. Easy Transactions :Electronic banking has reduced the problems of the customers like writing
cheques, filing taxes, and transforming of cash. Now in ATM facility there is
no need of cheque book.
3. Security :Electronic banking provides the safe system of payment. Now transactions
are made in the accounts through internet.
4. Saving Of Time :Electronic banking has saved the time and money of the customers and also
the bank. Now burden of work on bank employees has been also reduced.
were hired at higher wages, so operating cost was very high. Now by using
electronic banking the number of employees has been reduced.
5.Reduction In Cost :In case of manual banking, large number of employees were hired at higher
wages, so operating cost was very high. Now by using electronic banking
the number of employees has been reduced.

6. Market Expanded :Due to electronic banking, national international market of various goods
and services has been expanded. Now we can purchases and make payment
in any place in the world.
7. Increase In Customers :As the banking industry is expanding due the modern facilities, it is
attracting more and more customers. So number of customers are increasing
day by day.
8. Branches Reduced :Now there is no need to open the branches on every place in the city because
due to electronic banking facilities, there is no rush of customers in the
banks. Because there is no need to visit the bank physically. So heavy cost of
opening the new branches has been reduced and facilities are provided at
low cost.
9. Checking Of Account :Every customer can check his balance of account sitting at home and makes
the payments without traveling. It saves his time and expenses.
10. Utility Bills Payment :Bills, like telephone, gas, electricity and water can be easily paid to the
concerned departments without going to the bank physically. Even he is
sitting in any other country, he can make the payment.
11. Transferring Of Money :There is no need of writing the deposit slip cheques and drafts. By using the
electronic banking money can be transferred easily.
12. Credit Cards :It is also very important facility for the customers that he can purchase the
goods and ca make the payment by using the credit cards.