Académique Documents
Professionnel Documents
Culture Documents
Study Of Consumer
Awareness For
NEFT/RTGS Products in
BOB
Index
Sr. No. Particulars Pg. No.
1 Preface 3
2 Acknowledgement 4
3 Overview of Banking industry 5
4 Overview of the NEFT/RTGS 18
5 Determination of project 23
6 Objective 24
7 Research methodology 25
8 Marketing research process 26
9 Service marketing P’s 33
10 Analysis 41
11 1) Graphical analysis 42
12 2)Chi-square analysis 54
13 To Summarize 75
14 Findings 76
15 Suggestions 79
16 Bibliography 80
17 Questionnaire of respondent 81
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In short we can say that being a student of M.B.A. has got a change &
opportunity to work with corporate world.
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Also I thankful to the staff of BANK OF BARODA & my mentors who are helpful
to me in every manner, Mr. Dashrathlal sir, Mr. Subhash bhai, & my mentor
Mr. Mukul.N.Oza also our HR manager Mr. PRIYA KUMAR allot a branch &
guiding us.
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1. INTRODUCTION
1.1Industry definition:
With years, banks are also adding services to their customers. The Indian
banking industry is passing through a phase of customers market. The
customers have more choices in choosing their banks. A competition has been
established within the banks operating in India.
Banks are among the main participants of the financial system in India. Banking
offers several facilities & Opportunities. This section provides comprehensive
and updated information, guidance and assistance in all areas of banking in
India.
Bank of Hindustan, set up in 1870, was the earliest Indian Bank . Banking in
India on modern lines started with the establishment of three presidency
banks under Presidency Bank's act 1876 i.e. Bank of Calcutta, Bank of Bombay
and Bank of Madras.
The arrival of foreign and private banks with their superior state-of-the-art
technology-based services pushed Indian Banks also to follow suit by going in
for the latest technologies so as to meet the threat of competition and retain
customer base.
Almost 80% of the businesses are still controlled by Public Sector Banks (PSBs).
PSBs are still dominating the commercial banking system. Shares of the leading
PSBs are already listed on the stock exchanges.
The PSBs will play an important role in the industry due to its number of
branches and foreign banks facing the constraint of limited number of
branches. Hence, in order to achieve an efficient banking system, the onus is
on the Government to encourage the PSBs to be run on professional lines.
The RBI has given licenses to new private sector banks as part of the
liberalization process. The RBI has also been granting licenses to industrial
houses. Many banks are successfully running in the retail and consumer
segments but are yet to deliver services to industrial finance, retail trade, small
business and agricultural finance.
Foreign banks:
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Foreign banks have been operating in India for decades with a few of them
having operations in India for over a century. The number of foreign bank
branches in India has increased significantly in recent years since RBI issued a
number of licenses - well beyond the commitments made to the World Trade
Organization. The presence of foreign banks in India has benefited the financial
system by enhancing competition, resulting in higher efficiency. There has also
been transfer of technology and specialized skills which has had some
"demonstration effect" as Indian banks too have upgraded their skills,
improved their scale of operations and diversified into other activities. At a
time when access to foreign currency funds was a constraint for the Indian
companies, the presence of foreign banks in India enabled large Indian
companies to access foreign currency resources from the overseas branches of
these banks. Also with the presence of foreign banks, as borrowers in the
money market and their operation in the foreign exchange market has resulted
in the creation and deepening of the inter-bank money market. Now, it is the
challenge for the supervisors to maximize the advantages and minimize the
disadvantages of the foreign banks' local presence.
Commercial Banking
Wholesale banking
Investment Banking
Internet banking
Mobile banking
Rural banking
Micro Finance
Industrial Finance
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The banking industry too has evolved rapidly over the last few years in India
due to the availability of cheaper technology and falling communication costs.
De-regulation, competition from non-financial players, new compliance
requirements, and changing customer expectations has added complexity and
challenges to banking systems and processes.
Banks, however, face an uphill task in reaching out to the customers in remote
locations such as villages. There is a lower level of literacy and access to
Internet. Setting up branches involves higher cost and operating expenses, and
lower return on investment. Given the 742-million rural population, the
penetration of deposit accounts languishes at a deplorable 18 per cent.
(Source: Extending Banking to the poor in India”, Amit Singhal and Bikram
Duggal, ICICI Bank).
Qualitative growth:
The growth of banking in the coming years is likely to be more qualitative than
quantitative, according to the report. Based on the projections made in the
"India Vision 2020" prepared by the Planning Commission and the Draft 10th
Plan, the report forecasts that the pace of expansion in the balance-sheets of
banks is likely to decelerate.
On the liability side, there is likely to be large additions to capital base and
reserves. As the reliance on borrowed funds increases, the pace of deposit
growth may slow down. On the asset side, the pace of growth in both advances
and investments is forecast to weaken.
The high GDP growth in India is creating lots of job opportunities in urban and
semi-urban India and it will go further into rural India — increasing the
potential for rural entrepreneurships and rural growth with higher per-capita
income and savings opportunities.
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Market potential:
India is the fifth largest economy in the world (ranking above France, Italy, the
United Kingdom, and Russia) and has the third largest GDP in the entire
continent of Asia. It is also the second largest among emerging nations. (These
indicators are based on purchasing power parity.) India is also one of the few
markets in the world which offers high prospects for growth and earning
potential in practically all areas of business. Yet, despite the practically
unlimited possibilities in India for overseas businesses, the world's most
populous democracy has, until fairly recently, failed to get the kind of
enthusiastic attention generated by other emerging economies such as China.
Almost 80% of the business is still controlled by Public Sector Banks (PSBs).
PSBs are still dominating the commercial banking system. Shares of the leading
PSBs are already listed on the stock exchanges.
The PSBs will play an important role in the industry due to its number of
branches and foreign banks facing the constraint of limited number of
branches. Hence, in order to achieve an efficient banking system, the onus is
on the Government to encourage the PSBs to be run on professional lines.
The RBI has given licenses to new private sector banks as part of the
liberalization process. The RBI has also been granting licenses to industrial
houses. Many banks are successfully running in the retail and consumer
segments but are yet to deliver services to industrial finance, retail trade, small
business and agricultural finance.
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Foreign banks:- Foreign banks have been operating in India for decades with a
few of them having operations in India for over a century. The number of
foreign bank branches in India has increased significantly in recent years since
RBI issued a number of licenses - well beyond the commitments made to the
World Trade Organization. The presence of foreign banks in India has benefited
the financial system by enhancing competition, resulting in higher efficiency.
There has also been transfer of technology and specialized skills which has had
some "demonstration effect" as Indian banks too have upgraded their skills,
improved their scale of operations and diversified into other activities. At a
time when access to foreign currency funds was a constraint for the Indian
companies, the presence of foreign banks in India enabled large Indian
companies to access foreign currency resources from the overseas branches of
these banks. Also with the presence of foreign banks, as borrowers in the
money market and their operation in the foreign exchange market has resulted
in the creation and deepening of the inter-bank money market. Now, it is the
challenge for the supervisors to maximize the advantages and minimize the
disadvantages of the foreign banks' local presence.
The last decade witnessed the maturity of India's financial markets. Since 1991,
every governments of India took major steps in reforming the financial sector
of the country. The important achievements in the following fields are
discussed under separate heads:
• Financial markets
• Regulators
• Mutual funds
• Consolidation imperativ
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Financial Markets
In the last decade, Private Sector Institutions played an important role. They
grew rapidly in commercial banking and asset management business. With the
openings in the insurance sector for these institutions, they started making
debt in the market.
Regulators
FIs's access to SLR funds reduced. Now they have to approach the capital
market for debt and equity funds. Convertibility clause no longer obligatory for
assistance to corporate sanctioned by term-lending institutions. Capital
adequacy norms extended to financial institutions.
DFIs such as IDBI and ICICI have entered other segments of financial services
such as commercial banking, asset management and insurance through
separate ventures. The move to universal banking has started.
In the case of new NBFCs seeking registration with the RBI, the requirement of
minimum net owned funds, has been raised to Rs.2 crores.
Until recently, the money market in India was narrow and circumscribed by
tight regulations over interest rates and participants. The secondary market
was underdeveloped and lacked liquidity. Several measures have been
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Mutual funds
The mutual funds industry is now regulated under the SEBI (Mutual Funds)
Regulations, 1996 and amendments thereto. With the issuance of SEBI
guidelines, the industry had a framework for the establishment of many more
players, both Indian and foreign players.
The insurance industry is the latest to be thrown open to competition from the
private sector including foreign players. Foreign companies can only enter joint
ventures with Indian companies, with participation restricted to 26 per cent of
equity. It is too early to conclude whether the erstwhile public sector
monopolies will successfully be able to face up to the competition posed by
the new players, but it can be expected that the customer will gain from
improved service.
The new players will need to bring in innovative products as well as fresh ideas
on marketing and distribution, in order to improve the low per capita
insurance coverage. Good regulation will, of course, be essential.
The last ten years have seen major improvements in the working of various
financial market participants. The government and the regulatory authorities
have followed a step-by-step approach, not a big bang one. The entry of
foreign players has assisted in the introduction of international practices and
systems. Technology developments have improved customer service. Some
gaps however remain (for example: lack of an inter-bank interest rate
benchmark, an active corporate debt market and a developed derivatives
market). On the whole, the cumulative effect of the developments since 1991
has been quite encouraging. An indication of the strength of the reformed
Indian financial system can be seen from the way India was not affected by the
Southeast Asian crisis.
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Bank lending norms liberalized and a loan system to ensure better control over
credit introduced. Banks asked to set up asset liability management (ALM)
systems. RBI guidelines issued for risk management systems in banks
encompassing credit, market and operational risks. A credit information
bureau being established to identify bad risks. Derivative products such as
forward rate agreements (FRAs) and interest rate swaps (IRSs) introduced.
Consolidation imperative
forms of bancassurance are being introduced, with the RBI having already
come out with detailed guidelines for entry of banks into insurance.
Lender's liability
Lender's liability is associated with the financial risks banks face when granting
or extending loans. Banks and other lenders rely on financial statements of
companies when deciding whether to grant or extend credit. Under current
reporting requirements, potential environmental liabilities can easily remain
undiscovered unless a lender develops its own procedure to assess the
environmental risks. Therefore, some banks can end up spending the money
on clean-ups of sites contaminated through their clients' activities.
The last few decades have been marked by numerous changes in the
regulatory framework relating to environmental protection. Recent scientific
discoveries of environmental and health risks associated with pollution have
contributed to an increase in public demand for environmental quality. These
growing concerns have contributed to a major shift in public perception of
corporate roles in society. Influenced by these trends, some banks have begun
looking closely into their own environmental and social performance. In many
cases this effort has resulted in adoption of energy and resource efficiency
programs within the institutions themselves.
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Business opportunities
The ability to gauge the risks and take appropriate position will be the key to
successful banking in the emerging scenario. Risk-takers will survive, effective
risk managers will prosper and risk-averse are likely to perish, the report
asserts.
In this context, the report makes a very pertinent recommendation that risk
management has to trickle down from the corporate office to branches.
The report also talks of the need for banks to deal with issues relating to
`reputational risk' to maintain a high degree of public confidence for raising
capital and other resources.
Consolidation
They are expected to bring with them capital, technology, and management
skills which would increase the competitive spirit in the system leading to
greater efficiency. Government policy to allow greater FDI in banking and the
move to amend Banking regulations Act to remove the existing 10 per cent cap
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However, according to the report, the flow need not be one way. Some of the
Indian banks may also emerge global players. As globalization opens up
opportunities for Indian corporate entities to expand their business overseas,
banks in India wanting to increase their international presence could naturally
be expected to follow these corporate entities and other trade flows out of
India.
This process is expected to gain momentum in the coming years, says the
report. Mergers between public sector banks or public sector banks and
private banks could be the next logical development, the report adds.
Consolidation could also take place through strategic alliances or partnerships
covering specific areas of business such as credit cards, insurance etc.
As you are aware, the RBI announced a new Branch Authorization Policy in
September 2005 under which certain changes were brought about in the
authorization process adopted by the RBI for the bank branches in the country.
As against the earlier system, where the banks approached the RBI, piece
meal, throughout the year for branch authorization, the revised system
provides for a holistic and streamlined approach for the purpose, by granting a
bank-wise, annual aggregated authorization, in consultation and interaction
with each applicant bank. The objective is to ensure that the banks take an
integrated view of their branch- network needs, including branch relocations,
mergers, conversions and closures as well as setting up of the ATMs, over a
one-year time horizon, in tune with their own business strategy, and then
approach the RBI for consolidated annual authorizations accordingly.
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There also seems to be a feeling among some banks that under the new
authorization policy, the process adopted is more cumbersome and, as a
result, there have been delays in issuing authorizations.
Since the banks are required to approach the RBI only after obtaining the
approval of their respective Boards for their annual branch expansion plan, it is
possible that the preparatory time required for filing their annual plan with the
RBI might be a little longer. The processing time at the end of the RBI,
however, has been generally in the range of one to two months – which I
consider to be reasonable, given the element of consultation with the banks
built into the process. However, the actual number of authorizations issued by
the RBI under the new policy has been much higher than before. For instance,
as against the a total of 881, 1125 and 1259 authorizations given by the RBI
under the old policy regime during 2003-04, 2004-05 and 2005-06,
respectively, the number of authorizations issued under the new policy during
2006-07 was 2028.
Thus, as against the general perception that the new policy has been more
restrictive in granting authorizations, the fact is that there has been a sharp
increase of about 61 per cent in the total number of authorizations granted
last year.
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Step-2 : The originating bank branch prepares a message and sends the
message to its pooling centre (also called the NEFT Service Centre).
Step-3 : The pooling centre forwards the message to the NEFT Clearing Centre
(operated by National Clearing Cell, Reserve Bank of India, Mumbai) to be
included for the next available batch.
Step-4 : The Clearing Centre sorts the funds transfer transactions destination
bank-wise and prepares accounting entries to receive funds from the
originating banks (debit) and give the funds to the destination banks(credit).
Thereafter, bank-wise remittance messages are forwarded to the destination
banks through their pooling centre (NEFT Service Centre).
Step-5 : The destination banks receive the inward remittance messages from
the Clearing Centre and pass on the credit to the beneficiary customers’
accounts.
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IFSC:
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RTGS:-
The acronym RTGS stands for Real Time Gross Settlement. RTGS system
is a funds transfer mechanism where transfer of money takes place from
one bank to another on a real time and on gross basis. This is the fastest
possible money transfer system through the banking channel.
Settlement in real time means payment transaction is not subjected to
any waiting period. The transactions are settled as soon as they are
processed. Gross settlement means the transaction is settled on one to
one basis without bunching with any other transaction. Considering
that money transfer takes place in the books of the Reserve Bank of
India, the payment is taken as final and irrevocable.
The RTGS system is primarily meant for large value transactions. The
minimum amount to be remitted through RTGS is ` 2,00,000/-. There is
no upper ceiling for RTGS transactions.
Under normal circumstances the beneficiary branches are expected to
receive the funds in real time as soon as funds are transferred by the
remitting bank. The beneficiary bank has to credit the beneficiary's
account within two hours of receiving the funds transfer message.
The RTGS service window for customer's transactions is available from
9.00am to 4.30 pm on week days and from 9.00am to 1.30 pm on
Saturdays for settlement at the RBI end. However, the timings that the
banks follow may vary depending on the customer timings of the bank
branches.
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Determination Of Project
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OBJECTIVE
The objective of our project has three aspects, which are as mentioned below.
The study focuses on the activities of using the products which is helpful
to transferring the money from one place to another.
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Research Methodology
Marketing research has proved an essential tool to meet all the needs of
marketing management. These needs include information regarding products,
prices, market conditions of demand and supply, consumer needs and desires,
selling methods, physical flow of goods, competitive decisions, external
marketing environment and other factors of marketing management.
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2. Research design
A research design is a master plan or model for the conduct of formal
investigation and survey. It may be exploratory, descriptive and experimental.
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ii) Primary data consists of information collected for specific purpose. It may
be defined as those data that have been observed or recorded by the
researchers for the first time. Primary data collection calls for a number of
decisions on research approach, contact methods and research instruments.
We are collecting primary data from the consumers through the questionnaire.
For the purpose of this project we will use survey research approach.
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4. Sample Design
We conducted a survey for the project. Population survey gives reliable and
authentic information but due to time and cost constraints it was not feasible
to undertake a population survey so the group has adopted a sampling
method. We have surveyed 50 consumers of BANK OF BARODA (NEW CLOTH
MARKET) branch.
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After the collection of data, the task of research process is the analysis and
interpretation of the data. The questionnaire is processed to make sure that all
the questions answered are recorded. The resulting data should be logical and
consistent. After editing, the data is tabulated and analyzed. Data analysis
includes the statistical tests, which may involve coding, tabulation and
interpretation.
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Banks are essentially service providers, their offering the different types of
products which is helpful to transferring money from one place to another. Their
offering is characterized by various characteristics of service such as
perishability, intangibility, not resulting into an ownership etc.
In the market which is teeming with more and more service providers of this
type of products, the marketing of service takes an important role in growth and
sustenance of the organization. Each unit has a different way of positioning and
also a different way of promoting its service and designing their offering. To
study different ways in which all the units carry out these practices is an
important aspect of the analysis of an industry. This will give us an insight into
the various practices applied by the professionals of the industry people.
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PRODUCT:
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PROMOTION:
Promotion is an important factor for any firm that wants to survive and outlive
the competition profitably. When there are many firms offering almost similar
product, promotion assumes all the more responsibility of creating value for
one’s offering in the minds of the consumers.
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PRICE:
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PLACE:
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PEOPLE:
All the human actors participating in the delivery of a service provide cues to the
consumers regarding the nature of the service itself. How these people are
dressed, their personal appearance and their attitudes and behaviors all
influence the consumer’s perceptions of the service. The service provider or
contact person can be very important. In fact, for some services, such as
account opening service, money transfer service, cheques clearing service etc.
the provider is the service. In other cases the contact person may play what
appears to be a relatively small part in service delivery.
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PHYSICAL EVIDENCE:
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PROCESS:
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ANALYSIS
Introduction
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GRAPHICAL ANALYSIS
AGE OF THE RESPONDENTS
Age
10-20 1
20-30 15
>30 34
total 50
2%
30%
68%
The above given breakup of the sample shows the percentage of respondents
from each age. We have also included potential as well as non-potential
consumers of the banking industry in our survey so that we can get the overall
insight of the consumer and the reasons that might be hindering to consumers
to go to the bank. Also we have asked the consumers the suggestions for
developing the banking industry.
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Gender
male 45
female 5
total 50
10%
90%
The above given breakup of the sample shows the percentage of respondents
from each gender. We have also included Female consumers of the banking
industry in our survey. Also we are doing observation method when they gave
their response.
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4% 4%
4%
88%
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students
20%
businessman
organization
70%
2%
In above chart it shows that 70% of the customers are businessman &
rest are others. In occupation we also include the students so we knew
about the awareness of the student in the new products of RBI because
students also going in bank for banking transaction.
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6%
22%
46%
26%
It was important to know that if the consumers do not use the services where do
they get to know of its existence. So we asked them and the whopping majority
of 23 out of total of 50 told that they going daily in BANK for regular transaction.
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TRANSACTION
TYPES
DD 3
BC 0
TT 0
MT 0
NEFT 14
RTGS 21
OTHERS 12
TOTAL 50
Above chart shows that businessman maximum using new products of fund
transferring. 21 people out of 50 using RTGS transaction in routine life for fund
transferring from 1 bank to another bank & 14 people out of 50 using NEFT
product for fund transferring. In others people using cash withdrawal or cash
depositing transactions.
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16%
84%
It shows that 42 people out of 50 are aware about the new product of RBI rest
are not aware who is only students & include some professionals because they
are not using regular fund transferring from 1 bank to another. It is more
useful for businessman whose regular turnover is high.
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AWARENESS THROUGH
FRIENDS 1
BANK STAFF 35
BUSINESS PARTIES 4
OTHERS 2
NONE 8
TOTAL 50
2%
4% 16%
8%
70%
It was important to know that if the consumers do not use the services where do
they get to know of its existence. So we asked them and the whopping majority
of 35 out of total of 50 told that they got to know of the new product of bank
from bank staff. This brings out one fact very glaringly, that the amount of peer
pressure is very high among the consumers.
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TRANSACTION DONE
EVERYDAY 22
ONCE IN A WEEK 8
TWICE IN A WEEK 1
MORE THAN 3
TRANSACTION 6
OTHERS(NONE) 13
TOTAL 50
NEFT/RTGS Transaction
EVERYDAY ONCE IN A WEEK TWICE IN A WEEK MORE THAN 3 TRANSACTION OTHERS(NONE)
26%
44%
12%
16%
2%
It shows that 22 people out of 50 people using every day the new product of
RBI. In against the professionals & students must not use these types of
products. They simply use the Demand Draft for their education fees transfer
& other purposes.
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SATISFACTION
YES 37
NO 13
TOTAL 50
26%
74%
Above chart shows that 74% customers are satisfied with the product in mostly
them are businessman & rests are students who are not aware about the
product so their responses are none so we cannot said that they are not
satisfied but their answer was neutral.
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PREFERANCE
EASY TRANSACTION 8
LESS COSTLY 23
USING LESS TIMING 7
OTHERS(NONE) 12
TOAL 50
Preferance Of Respondents
EASY TRANSACTION LESS COSTLY USING LESS TIMING OTHERS(NONE)
16%
24%
14%
46%
Above chart shows that more customers doing NEFT/RTGS because of less
costing of the new product in against of traditional products like DD, MT,TT, BC
etc. New products are using less timing & also it is an easy transaction for
consumers. 24% people do not prefer RTGS/NEFT transactions.
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EXTRA FACILITY
ONLINE
INFORMATION 10
TELE CALLING 21
MOBILE BANKING 19
OTHERS 0
TOTAL 50
Extra Facility
ONLINE INFORMATION TELE CALLING MOBILE BANKING OTHERS
0%
20%
38%
42%
Above chart shows that 21 people out of 50 people prefer tele calling for the
extra facility & rests are prefer other facility to get acknowledgement of
respondent transaction.
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STEP – 1:- For a contingency table that has r rows and c columns, the chi
square test can be thought of as a test of independence. In a test of
independence the null and alternative hypotheses are:
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H1 - STEP – 1:- We are taking 2 variables for hypothesis from the given objectives.
1) Preference of consumer
2) Age of the respondents
STEP – 3:- H1: preference of the new product of NEFT/RTGS isn’t independent
on consumer’s age.
STEP – 4:- We are using chi2 for the given objectives with the help of SPSS
software.
χ2 = ∑ (fo - fe)2 / fe
$Pref
AGE 10-20 0 0 0
20-30 1 2 2
> 30 12 25 12
$Preferance
df 3
a
Sig. .747
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H2 - Now we take another objective for creating hypothesis. Again there are
two objectives.
1) Age of the respondents
2) Extra facilities preference
STEP – 1:- H0: Extra facilities using by respondents to get acknowledgement of
their transaction is Independent on age.
STEP – 2:- H1: Extra facilities using by respondents isn’t Independent on age.
STEP – 3:- We are using chi2 for the given objectives with the help of SPSS
software.
$Extra Facility
AGE 10-20 0 1 0
20-30 5 5 5
> 30 5 15 15
$Extra
Facility
Df 6
a,b
Sig. .449
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$product types
CASH
DD MT TT BC NEFT RTGS TRANSACTION
AGE 10-20 0 0 0 0 0 0 1
20-30 3 0 0 2 2 2 14
> 30 2 0 0 0 23 32 2
$product types
Df 10
*,a,b
Sig. .000
Conclusion:- Here in that case our null hypothesis is rejected it means age isn’t
independent with products.
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LOK JAGRUTI INSTITUTE OF ENGINEERING & TECHNOLOGY
$product types
CASH
DD MT TT BC NEFT RTGS TRANSACTION
GENDER MALE 5 0 0 2 23 33 14
FEMALE 0 0 0 0 2 1 3
$product types
Df 5
a,b
Sig. .125
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$producttypes
CASH
DD MT TT BC NEFT RTGS TRANSACTION
OCCUPATION BUSINESSMAN 2 0 0 0 24 33 2
STUDENTS 1 0 0 0 1 1 10
ORGANIZATION 0 0 0 0 0 0 1
PROFESSIONAL 2 0 0 2 0 0 4
$product types
df 15
*,a,b
Sig. .000
Conclusion:- In that case our null hypothesis is rejected because table value is
more than the calculated value. So occupation is not independent to the
products.
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AWARENESS
YES NO
Count Count
AGE 10-20 0 1
20-30 8 7
> 30 34 0
AWARENESS
df 2
*,a,b
Sig. .000
Conclusion:- Here the chi – square table value is more than the calculated
value so our null hypothesis is rejected it means age is dependent to
awareness about the new product.
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AWARENESS
YES NO
Count Count
GENDER MALE 37 8
FEMALE 5 0
AWARENESS
df 1
a,b
Sig. .304
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AWARENESS
YES NO
Count Count
OCCUPATION BUSINESSMAN 35 0
STUDENTS 3 7
ORGANIZATION 1 0
PROFESSIONAL 3 1
AWARENESS
df 3
*,a,b
Sig. .000
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WAYSOFAWARENESS
THROUGH
THROUGH THROUGH BUSINESS THROUGH
FRIENDS BANK STAFF PARTIES PARENTS NONE
AGE 10-20 0 0 0 0 1
20-30 2 2 2 2 7
> 30 0 32 2 0 0
WAYS OF
AWARENESS
df 8
*,a,b
Sig. .000
Conclusion:- In this case our null hypothesis is rejected because our P-value is
0.000 which is less than 0.05 so that age is totally dependent on ways of
awareness about the products.
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WAYS OF AWARENESS
THROUGH
THROUGH THROUGH BUSINESS THROUGH
FRIENDS BANK STAFF PARTIES PARENTS NONE
GENDER MALE 1 32 4 0 8
FEMALE 1 2 0 2 0
WAYS
OF
AWARENESS
df 4
*,a,b
Sig. .000
Conclusion:- Here in this case the null hypothesis is rejected because our p –
value is 0.000 which is less than the 0.05. It means gender is totally dependent
on ways of awareness.
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LOK JAGRUTI INSTITUTE OF ENGINEERING & TECHNOLOGY
WAYSOFAWARENESS
THROUGH
THROUGH THROUGH BUSINESS THROUGH
FRIENDS BANK STAFF PARTIES PARENTS NONE
OCCUPATION BUSINESSMAN 0 32 3 0 0
STUDENTS 0 0 1 2 7
ORGANIZATION 1 0 0 0 0
PROFESSIONAL 1 2 0 0 1
WAYS
OF
AWARENESS
df 12
*,a,b
Sig. .000
Conclusion:- Here in this case the P- value is 0.000 which is less than the 0.05
so that our null hypothesis is rejected. It means occupation is totally
dependent on ways of awareness.
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MORE THAN 3
ONCE IN A TWICE IN A TRANSACTION
EVERYDAY WEEK WEEK DURING WEEK NONE
AGE 10-20 0 0 0 0 1
20-30 1 2 0 0 12
> 30 21 6 1 6 0
TRANSACTION
DONE
Df 8
*,a,b
Sig. .000
Conclusion:- Here in this case the P- value is 0.000 which is less than the 0.05
so that our null hypothesis is rejected. It means age is totally dependent on
transaction of NEFT/RTGS.
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GENDER
MALE FEMALE
Count Count
TWICE IN A WEEK 1 0
MORE THAN 3 5 1
TRANSACTION DURING
WEEK
NONE 10 3
GENDER
Df 4
a,b
Sig. .343
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LOK JAGRUTI INSTITUTE OF ENGINEERING & TECHNOLOGY
MORE THAN 3
ONCE IN A TWICE IN A TRANSACTION
EVERYDAY WEEK WEEK DURING WEEK NONE
OCCUPATION BUSINESSMAN 22 6 1 6 0
STUDENTS 0 1 0 0 9
ORGANIZATION 0 0 0 0 1
PROFESSIONAL 0 1 0 0 3
TRANSACTION
DONE
df 12
*,a,b
Sig. .000
Conclusion:- Here in this case the P- value is 0.000 which is less than the 0.05
so that our null hypothesis is rejected. It means occupation is totally
dependent on transaction of NEFT/RTGS.
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SATISFACTION
YES NO
Count Count
OCCUPATION BUSINESSMAN 35 0
STUDENTS 1 9
ORGANIZATION 0 1
PROFESSIONAL 1 3
SATISFACTION
df 3
*,a,b
Sig. .000
Conclusion:- Here in this case the P- value is 0.000 which is less than the 0.05
so that our null hypothesis is rejected. It means occupation is totally
dependent on satisfaction of respondents.
$Preference
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GENDER MALE 13 25 14
FEMALE 0 2 0
$Preference
df 3
a,b
Sig. .360
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$Preference
OCCUPATION BUSINESSMAN 12 26 13
STUDENTS 0 1 0
ORGANIZATION 0 0 0
PROFESSIONAL 1 0 1
$Preference
df 6
a,b
Sig. .256
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$Extra Facility
ONLINE MOBILE
INFORMATION TELE CALLING BANKING
GENDER MALE 8 18 18
FEMALE 2 3 2
$Extra
Facility
df 3
a
Sig. .604
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LOK JAGRUTI INSTITUTE OF ENGINEERING & TECHNOLOGY
$Extra Facility
ONLINE IN MOBILE
FORMATION TELE CALLING BANKING
OCCUPATION BUSINESSMAN 6 15 15
STUDENTS 2 5 2
ORGANIZATION 1 1 0
PROFESSIONAL 1 0 3
$Extra
Facility
df 9
a,b
Sig. .095
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LOK JAGRUTI INSTITUTE OF ENGINEERING & TECHNOLOGY
To Summarize
Firstly we would like to give our conclusion on the consumers that on the basis
of the hypothesis is relate with customer preference about the new products with
the compare of the respondents’ age, occupation & gender also include satisfaction
of the respondents about the products their awareness about the products etc.
Table of hypothesis:-
Particulars Related with P – value Accepted/Rejected
Age Products 0.000 Rejected
Gender Products 0.125 Accepted
Occupation Products 0.000 Rejected
Age Awareness 0.000 Rejected
Gender Awareness 0.304 Accepted
Occupation Awareness 0.000 Rejected
Age Transaction done 0.000 Rejected
times
Gender Transaction done 0.343 Accepted
times
Occupation Transaction done 0.000 Rejected
times
Age Way of awareness 0.000 Rejected
Gender Way of awareness 0.000 Rejected
Occupation Way of awareness 0.000 Rejected
Age Preference 0.747 Accepted
Gender Preference 0.360 Accepted
Occupation Preference 0.256 Accepted
Age Extra facility 0.449 Accepted
Gender Extra facility 0.604 Accepted
Occupation Extra facility 0.095 Accepted
Satisfaction Preference 0.000 Rejected
On the basis of above table of hypothesis age, occupation & gender of the
respondents is affected the preference of the customer & extra facility is also
affected to the customer’s age, occupation & gender. So that our hypothesis is
accepted in above cases in others it is rejected.
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Findings:
Consumers
Usually the businessman & organizations know about the RBI’s new
product of NEFT/RTGS.
Consumers usually prefer this product because it takes less time to
transfer from one account to another account in particular branch.
Another reason is that it is less costly as compare to the traditional
product & the transaction is too easy.
As per our study our non potential customer does not know about the
product because of less banking transaction & awareness also
responsible for that.
Consumers usually doing this type of transaction for transferring the
funds to another party behind that the main reason is trading of goods &
services.
Students which are our non – potential customers as well as professional
also are not using these products for fees transferring & other activities.
They are using traditional products like BC/DD etc.
In NEFT/RTGS the transaction cost is low as compare to traditional
products so that’s why customers choose this types of products & also it
is taking less timing & easy to transfer.
Our non potential customer not choosing these types of transaction
because of cheque book because in NEFT/RTGS transaction the basic
requirement of customer is cheque book. In student saving account
sometime they have not take cheque book from bank & also they are
access their account through 0rs. Balance. So they are not aware as well
as they are not doing in such type of transaction.
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Bank of Baroda
Bank of Baroda takes charge in traditional products like BC/DD is
minimum cost 56rs. Up to 10000rs. After that it is 4.5rs. Per1000 amount
& maximum is 16,645rs. In compare to NEFT/RTGS the minimum cost is
6 to 7rs. as per the transaction which is decided by the RBI & maximum
cost is 61rs. Above 200000rs. Transaction its cost is only 28rs. It’s only
applicable till 13/7/2012. Now RBI applies new rates for the
transactions.
This cost is deferent from bank to bank because the overall costing
behind the one transaction is different from bank to bank. In Bank of
Baroda the costing behind 1 DD/BC transaction is 80rs. In compare to
NEFT/RTGS its only 30rs. Behind the 1 transaction. It creates 30rs.
Error/loss for bank. So that’s why RBI launching new products which is
beneficial for everybody.
In bank there are 2 categories of transaction NEFT & RTGS.
NEFT transaction is done when your fund transfer amount is less than
200000rs.
Above 200000rs. It is automatically converting in RTGS transaction. This
criterion is decided by the RBI.
In NEFT transaction the fund transferring validity is maximum 3 days in
case of accesses of internet connection & clearing process otherwise its
transfer immediately.
It’s using IFSC codes for different branch which have 11 character codes
which is useful to identify the branch & bank.
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SUGGESTIONS
Bank provides all facilities related to NEFT/RTGS so use it maximum for
fund transferring.
Any bank branches are available in any state in any city because RBI is a
nationalized bank & their products are also nationalized so that the
transaction of NEFT/RTGS is done at any place.
The procedure of transaction is simple, it requires one bank account
either it is saving or it is current account & one cheque book that’s it.
one NEFT/RTGS form which requires both parties name & address with
phone number or email-id with the amount which will transfer from 1
place to another & also a balance available in bank account & also
requires a sender’s PAN card number.
I suggest the bank reduce the traditional product transaction rate for
students who are using DD/BC’s transactions.
I also suggest the bank that aware the customer about the new product
of the RBI through give proper guidance.
Prepare 1 extra team for helping the customer who provides whole
knowledge about the transaction with the help of cost effectiveness.
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LOK JAGRUTI INSTITUTE OF ENGINEERING & TECHNOLOGY
Bibliography
Bibliography
Banking industry analysis. (2011, February 3). Retrieved July 2012, from
www.b1dcity.com: http://www.b1dcity.com
Wikipedia RTGS . (n.d.). Retrieved 7 2012, from wikipedia:
http://www.wikipedia.org.in
RBI, C. g. (2012, 1 31). Reserve bank of India. Retrieved 7 2012, from
rbi.org.in: http://www.rbi.org.in
BOB, C. g. (n.d.). Bank Of Baroda. Retrieved 7 2012, from bankofbaroda:
http://www.bankofbaroda.com
SCHINDLER, C. &. (2011). RESEARCH METHODOLOGY. In C. &.
SCHINDLER, BUSINESS RESERCH METHODS (p. 757). NEW DELHI:
McGraw Hill Education Private Limited.
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1) Name: ________________________________________________
3) Gender:
Male Female
5) Your occupation:
Businessman Students
Organization Others, specify_____
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LOK JAGRUTI INSTITUTE OF ENGINEERING & TECHNOLOGY
11) How many times transactions have been done through NEFT/RTGS?
Everyday twice in a week
Once in a week more than 3 transaction during the week
Others, specify_____
12) Are you satisfied with new transaction (NEFT/RTGS) methods over
conventional transaction method (DD/BC)?
Yes No
Transaction limit
No local access
No reliability of computers
Others, specify_____
15) What kind of extra facility would you prefer to get acknowledgement of your
transaction?
Online information
Tele calling
Mobile banking
Other specify,______
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