PROJECT REPORT

ON
CUSTOMER SATISFACTION IN BANKS (ICICI)
Submitted to University of Mumbai
in
2016-2017
Partial fulfillment of the requirement of the Degree of
Bachelor of Banking and Insurance
Under Guidance Of

Prof.. Kiran Gomes .

K. M. AGRAWAL COLLEGE OF ARTS, COMMERCE & SCIENCE.

GANDHARE, KALYAN (W)

BYNihal .M. Kundar

ROLL NO:
08
EXAM SEAT NO:

K.M.AGRAWAL COLLEGE OF ARTS, COMMERCE& SCIENCE , KALYAN

(Conducted by HINDI BHASHI JANKALYAN SHIKSHAN SANSTHA KALYAN)

(Affiliated by University of Mumbai)

Bachlor of Banking and Insurance

CERTIFICATE
This is to certify that Ms.Nihal, Roll no08., Seat No. , has satisfactorily carried out the project work of
the topic Customer Satisfaction in Banks (ICICI) for the 5th semester of T.Y.B.B&I ,in the Academic
year 2016-2017

PLACE: KALYAN
DATE : __________

Principal
(Mrs. Anita Manna)

Signature of Examiner

B&I Coordinator

CERTIFICATE

I, Mr. Kiran gomes hereby certify that Mr. Nihal kundar , of T.Y.B.B&I (SemV), Roll No. 58 has
completed project on Customer Satisfaction in Banks (ICICI) in the academic year 2016-2017. The
information submitted is true and original to the best of my knowledge.

Place: Kalyan

Date:
___________________
Signature of Project Guide

DECLARATION

I, Nihal student of T.Y.B.B&I semester V (2016-2017) hereby declare that I have completed the project on
Customer Satisfaction in Banks (ICICI)I further declare that the information imparted is true and fair to the
best of my knowledge.

SIGNATURE
(Nihal)
ROLL NO.
08

. ACKNOWLEDGEMENT

I hereby express my heartiest thanks to all sources who have contributed to the making of this project. I oblige
thanks to all those who have supported, provided their valuable guidance and helped for the accomplishment of
this project. I also extent my hearty thanks to my family, friends, our coordinator MR. SUJEET SINGH,
college teachers and all the well-wishers.
I also would specially like to thanks my project guide Mr. MAHENDRA PANDEY for his guidance and timely
suggestion and the information provided by him on this particular topic.
It is matter of outmost pleasure to express my indebt and deep sense of gratitude to various person who
extended their maximum help to supply the necessary information for the present thesis, which became
available on account of the most selfless cooperation.
Above all its sincere thanks to the UNIVERSITY OF MUMBAI for which this project is given consideration
and was done with outmost seriousness.

CHAPTER-1
INTRODUCTION ON BANK

INTRODUCTION:-

A bank is a financial institution that accepts deposits from the public and creates credit.[1] Lending
activities can be performed either directly or indirectly through capital markets. Due to their importance in
the financial system and influence on national economies, banks are highly regulated in most countries. Most
nations have institutionalized a system known as fractional reserve banking under which banks hold liquid
assets equal to only a portion of their current liabilities. In addition to other regulations intended to ensure
liquidity, banks are generally subject to minimum capital requirements based on an international set of capital
standards, known as the Basel Accords.

Banking in its modern sense evolved in the 14th century in the rich cities of Renaissance Italy but in
many ways was a continuation of ideas and concepts of credit and lending that had their roots in the ancient
world. In the history of banking, a number of banking dynasties notably, the Medicis, the Fuggers,
the Welsers, the Berenbergs and the Rothschilds have played a central role over many centuries. The oldest
existing retail bank is Banca Monte dei Paschi di Siena, while the oldest existing merchant bank isBerenberg
Bank.

HISTORY OF BANK:Banking began with the first prototype banks of merchants of the ancient world, which made grain
loans to farmers and traders who carried goods between cities. This began around 2000 BC
in Assyria and Babylonia. Later, in ancient Greece and during the Roman Empire, lenders based in temples

made loans and added two important innovations: they accepted deposits and changed money. Archaeology
from this period in ancient China and India also shows evidence of money lending activity.

The origins of modern banking can be traced to medieval and early Renaissance Italy, to the rich cities
in the north like Florence,Lucca, Siena, Venice and Genoa. The Bardi and Peruzzi families dominated banking
in 14th-century Florence, establishing branches in many other parts of Europe One of the most famous Italian
banks was the Medici Bank, set up by Giovanni di Bicci de' Medici in 1397. The earliest known state deposit
bank, Banco di San Giorgio (Bank of St. George), was founded in 1407 at Genoa, Italy.

Modern banking practices, including fractional reserve banking and the issue of banknotes, emerged in
the 17th and 18th centuries. Merchants started to store their gold with the goldsmiths of London, who possessed
private vaults, and charged a fee for that service. In exchange for each deposit of precious metal, the goldsmiths
issued receipts certifying the quantity and purity of the metal they held as a bailee; these receipts could not be
assigned, only the original depositor could collect the stored goods.

Gradually the goldsmiths began to lend the money out on behalf of the depositor, which led to the
development of modern banking practices; promissory notes (which evolved into banknotes) were issued for
money deposited as a loan to the goldsmith.[5] The goldsmith paid interest on these deposits. Since the
promissory notes were payable on demand, and the advances (loans) to the goldsmith's customers were
repayable over a longer time period, this was an early form of fractional reserve banking. The promissory notes
developed into an assignable instrument which could circulate as a safe and convenient form of money backed
by the goldsmith's promise to pay,[6] allowing goldsmiths to advance loans with little risk of default.[7] Thus, the
goldsmiths of London became the forerunners of banking by creating new money based on credit.

The Bank of England was the first to begin the permanent issue of banknotes, in 1695.[8] The Royal
Bank of Scotland established the first overdraft facility in 1728.[9] By the beginning of the 19th century
a bankers' clearing house was established in London to allow multiple banks to clear transactions.

The Rothschilds pioneered international finance on a large scale, financing the purchase of theSuez canal for the
British government.

DEFINITION:-

The definition of a bank varies from country to country. See the relevant country pages under for more
information.
Under English common law, a banker is defined as a person who carries on the business of banking,
which is specified as:[13]

conducting current accounts for his customers,

paying cheques drawn on him/her, and

collecting cheques for his/her customers.

In most common law jurisdictions there is a Bills of Exchange Act that codifies the law in relation

to negotiable instruments, including cheques, and this Act contains a statutory definition of the
term banker: banker includes a body of persons, whether incorporated or not, who carry on the business of
banking' (Section 2, Interpretation). Although this definition seems circular, it is actually functional, because it
ensures that the legal basis for bank transactions such as cheques does not depend on how the bank is structured
or regulated.

CHAPTER-2
ONLINE BANKING
INTRODUCTION:Online banking, also known as internet banking, e-banking or virtual banking, is an electronic
payment system that enables customers of a bank or other financial institution to conduct a range of financial
transactions through the financial institution's website. The online banking system will typically connect to or
be part of the core banking system operated by a bank and is in contrast to branch banking which was the
traditional way customers accessed banking services.
To access a financial institution's online banking facility, a teacher with internet access would need to register
with the institution for the service, and set up a password and other credentials for customer verification. The
credentials for online banking is normally not the same as for telephone or mobile banking. Financial
institutions now routinely allocate customers numbers, whether or not customers have indicated an intention to
access their online banking facility. Customer numbers are normally not the same as account numbers, because
a number of customer accounts can be linked to the one customer number. Technically, the customer number
can be linked to any account with the financial institution that the customer controls, though the financial
institution may limit the range of accounts that may be accessed to, say, cheque, savings, loan, credit card and
similar accounts.
The customer visits the financial institution's secure website, and enters the online banking facility using
the customer number and credentials previously set up. The types of financial transactions which a customer
may transact through online banking are determined by the financial institution, but usually includes obtaining
account balances, a list of the recent transactions, electronic bill payments and funds transfers between a
customer's or another's accounts. Most banks also enable a customer to download copies of bank statements,
which can be printed at the customer's premises (some banks charge a fee for mailing hard copies of bank

statements). Some banks also enable customers to download transactions directly into the customer's accounting
software. The facility may also enable the customer to order a cheque book, statements, report loss of credit
cards, stop payment on a cheque, advise change of address and other routine actions.
Today, many banks are internet-only institutions. These "virtual banks" have lower overhead costs than
their brick-and-mortar counterparts. In the United States, many online banks are insured by the Federal Deposit
Insurance Corporation (FDIC) and can offer the same level of protection for the customers' funds as traditional
banks.[1]

HISTORY OF ONLINE BANKING:The precursor for the modern home online banking services were the distance banking services over
electronic media from the early 1980s. The term 'online' became popular in the late 1980s and referred to the
use of a terminal, keyboard and TV (or monitor) to access the banking system using a phone line. 'Home
banking' can also refer to the use of a numeric keypad to send tones down a phone line with instructions to the
bank. Online services started in New York in 1981 when four of the city's major banks (Citibank, Chase
Manhattan, Chemical and Manufacturers Hanover) offered home banking services.[2][3][4] using
the videotex system. Because of the commercial failure of videotex these banking services never became
popular except in France where the use of videotex (Minitel) was subsidised by the telecom provider and the
UK, where the Prestel system was used.

First online banking services in the United States[edit]

Online banking was first introduced in the early 1980s in New York, United States.[5] Four major banks
Citibank, Chase Manhattan, Chemical Bank and Manufacturers Hanover offered home banking services.
Chemical introduced its Pronto services for individuals and small businesses in 1983, which enabled individual
and small-business clients to maintain electronic checkbook registers, see account balances, and transfer funds
between checking and savings accounts. Pronto failed to attract enough customers to break even and was
abandoned in 1989. Other banks had a similar experience.

First online banking in the United Kingdom[edit]

Almost simultaneously with the United States, online banking arrived in the United Kingdom. The UK's
first home online banking services known as Homelink was set up by Bank of Scotland for customers of
the Nottingham Building Society (NBS) in 1983. The system used was based on the UK's Prestel viewlink
system and used a computer, such as theBBC Micro, or keyboard (Tandata Td1400) connected to the telephone
system and television set. The system allowed on-line viewing of statements, bank transfers and bill payments.
In order to make bank transfers and bill payments, a written instruction giving details of the intended recipient
had to be sent to the NBS who set the details up on the Homelink system. Typical recipients were gas,
electricity and telephone companies and accounts with other banks. Details of payments to be made were input
into the NBS system by the account holder via Prestel. A cheque was then sent by NBS to the payee and an

advice giving details of the payment was sent to the account holder. BACS was later used to transfer the
payment directly.
Stanford Federal Credit Union was the first financial institution to offer online internet banking services to all of
its members in October 1994

Banks and the World Wide Web[edit]

Around 1994, banks saw the rising popularity of the internet as an opportunity to advertise their
services. Initially, they used the internet as another brochure, without interaction with the customer. Early sites
featured pictures of the bank's officers or buildings, and provided customers with maps of branches and ATM
locations, phone numbers to call for further information and simple listings of products.

FEATURES:Online banking facilities typically have many features and capabilities in common, but also have some that are
application specific. The common features fall broadly into several categories:
A bank customer can perform non-transactional tasks through online banking, including

Viewing account balances

Viewing recent transactions

Downloading bank statements, for example in PDF format

Viewing images of paid cheques

Ordering cheque books

Download periodic account statements

Downloading applications for M-banking, E-banking etc.

Bank customers can transact banking tasks through online banking, including

Funds transfers between the customer's linked accounts

Paying third parties, including bill payments (see, e.g., BPAY) and third party fund transfers (see,
e.g., FAST)

Investment purchase or sale

Loan applications and transactions, such as repayments of enrollments

Credit card applications

Register utility billers and make bill payments

Financial institution administration

Management of multiple users having varying levels of authority

Transaction approval process

Some financial institutions offer special internet banking services, for example:
Personal financial management support, such as importing data into personal accounting software. Some
online banking platforms support account aggregation to allow the customers to monitor all of their
accounts in one place whether they are with their main bank or with other institutions.

ADVANTAGES OF ONLINE BANKING:Internet Banking has several advantages over traditional one which makes operating an account simple and
convenient. It allows you to conduct various transactions using the bank's website and offers several
advantages. Some of the advantages of internet banking are:

Online account is simple to open and easy to operate.

It is quite convenient as you can easily pay your bills, can transfer funds between accounts, etc. Now
you do not have to stand in a queue to pay off your bills; also you do not have to keep receipts of all the
bills as you can now easily view your transactions.

It is available all the time, i.e. 24x7. You can perform your tasks from anywhere and at any time; even in
night when the bank is closed or on holidays. The only thing you need to have is an active internet
connection.

It is fast and efficient. Funds get transferred from one account to the other very fast. You can also
manage several accounts easily through internet banking.

Through Internet banking, you can keep an eye on your transactions and account balance all the time.
This facility also keeps your account safe. This means that by the ease of monitoring your account at
anytime, you can get to know about any fraudulent activity or threat to your account before it can pose
your account to severe damage.

It also acts as a great medium for the banks to endorse their products and services. The services include
loans, investment options, and many others.

It's generally secure. But make sure that the website you're using has a valid security certificate. This
let's you know that the site is protected from cyber-thieves looking to steal your personal and financial
information.

You have twenty-four-hour access. When your neighborhood bank closes, you can still access your
account and make transactions online. It's a very convenient alternative for those that can't get to the
bank during normal hours because of their work schedule, health or any other reason.
You can access your account from virtually anywhere. If you're on a business trip or vacationing away
from home, you can still keep a watchful on your money and financial transactions - regardless of your
location.
Conducting business online is generally faster than going to the bank. Long teller lines can be timeconsuming, especially on a Pay Day. But online, there are no lines to contend with. You can access your
account instantly and at your leisure.
Many features and services are typically available online. For example, with just a few clicks you can
apply for loans, check the progress of your investments, review interest rates and gather other important
information that may be spread out over several different brochures in the local bank.

DISADVANTAGES OF ONLINE BANKING:Though there are many advantages of internet banking, but nothing comes without disadvantages and
everything has its pros and cons; same is with internet banking. It also has some disadvantages which must be
taken care of. The disadvantages of online banking include the following:

Understanding the usage of internet banking might be difficult for a beginner at the first go. Though
there are some sites which offer a demo on how to access online accounts, but not all banks offer this
facility. So, a person who is new, might face some difficulty.

You cannot have access to online banking if you dont have an internet connection; thus without the
availability of internet access, it may not be useful.

Security of transactions is a big issue. Your account information might gethacked by unauthorized
people over the internet.

Password security is a must. After receiving your password, do change it and memorize it otherwise
your account may be misused by someone who gets to know your password inadvertently.

You cannot use it, in case, the banks server is down.

Another issue is that sometimes it becomes difficult to note whether your transaction was successful or
not. It may be due to the loss of net connectivity in between, or due to a slow connection, or the banks
server is down.
Internet Banking has definitely made the life easy for users by providing online access to various banking
services.

Yes, online banking is generally secure, but it certainly isn't always secure. Identity theft is running
rampant, and banks are by no means immune. And once your information is compromised, it can take
months or even years to correct the damage, not to mention possibly costing you thousands of dollars, as
well.
Some online banks are more stable than others. Not all online setups are an extension of a brick-andmortar bank. Some operate completely in cyberspace, without the benefit of an branch that you can actually
visit if need be. With no way to physically check out the operation, you must be sure to thoroughly do your
homework about the bank's background before giving them any of your money.
Before using a banking site that you aren't familiar with, check to make sure that their deposits
are FDIC-insured. If not, you could possibly lose all of your deposits if the bank goes under, or its major
shareholders decide to take an extended vacation in Switzerland.

Customer service can be below the quality that you're used to. Some people simply take comfort in
being able to talk to another human being face-to-face if they experience a problem. Although most major
banks employ a dedicated customer service department specifically for online users, going through the
dreaded telephone menu can still be quite irritating to many. Again, some are considerably better (or worse)
than others.
Not all online transactions are immediate. Online banking is subject to the same business-day
parameters as traditional banking. Therefore, printing out and keeping receipts is still very important, even
when banking online.

Online banking does have pros and cons. However, it's not only the wave of the future, it's the wave right now,
and the clock isn't likely to go backward. If you take reasonable care to safeguard your personal and financial
information, you'll likely find that online banking is a convenient tool that you can easily live with. Eventually,
you'll probably even wonder how you ever lived without it.