A PROJECT REPORT On

Services provided by the bank

through

E-BANKING IN INDIA

C.T INSTITUTE OF MANAGEMENT AND I.T {Affiliated to Punjab Technical University, Jalandhar} Maqsudan Campus

Submitted to
Ms.Rajwinder kuar Asst.prof in CTIMIT Jalandhar

submitted by
Mohsin Showkat BBA 4th sem 94372450676

Acknowledgement
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I would like express my gratitude to MS.Rajwinder Kaur from the bottom of my heart, without his help it would have been a dream only to carry out the project work.

I feel deeply in debted towards people who have guided me in this project. It would have not have been possible to make such an extensive report without the help, guidance and inputs from them. Most of my information source has been from professional books of banking sector

Project Guide-

Prof: RAJWINDER KAUR

I would firstly like to express my gratitude towards my guide PROF: RAJWINDER KAUR for having shown so much of flexibility & guiding in such a way that I was really learning the subject all the time. She helped me in deciding the project topic. She showed a lot of openness in her approach and I would like to thank her for her support in a way that has lead to proper & effective learning.

Declaration
I am Mohsin Showkat this project report is my original work and have not been submitted in any form as a part of any other project. Information derived from the published and unpublished work of other has been acknowledgement in the list references in given in the bibliography.

Mohsin Showkat BBA 4th sem 94372450676

Table Contents
Chapter 1: Project Title Chapter 2: Objective of study Chapter 3: Introduction Chapter 4: Observation by study Chapter 5: Literature Review Chapter6: Methodology Chapter 7: Collection of data Chapter8: Analyze data Chapter 9: Limitations Chapter 10: Findings Chapter11: Suggestions Chapter12: Conclusion Chapter13: Bibliography Chapter14: Questionnaire

Executive summary

The project Report on:

Services provided by the bank through E-BANKING IN INDIA Project carried at: SBI, SBH, ICICI, ETC.

Project objectives:
Find the customer satisfaction relating to E-banking service.

To study the awareness of internet banking among the customers of ICICI and HDFC banks.

INTRODUCTION
E-banking:Internet banking (or E-banking) means any user with a personal computer and a browser can get connected to his bank -s website to perform any of the virtual banking functions. In internet banking system the bank has a centralized database that is web-enabled. All the services that the bank has permitted on the internet are displayed in menu. Any service can be selected and further interaction is dictated by the nature of service. Once the branch offices of bank are interconnected through terrestrial or satellite links, there would be no physical identity for any branch. The delivery channels include direct dialup connections, private networks, public networks, etc. with the popularity of computers, easy access to Internet and World Wide Web (WWW), Internet is increasingly used by banks as a channel for receiving instructions and delivering their products and services to their customers. This form of banking is generally referred to as Internet Banking, although the range of products and services offered by different banks vary widely both in their content and sophistication.
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Meaning of E-Banking E-bank is the electronic bank that provides the financial service for the individual client by means of Interne

OBSERVATION OF STUDY
Definition:
For this booklet, e-banking is defined as the automated delivery of new and traditional banking products and services directly to customers through electronic, interactive communication channels. E-banking includes the systems that enable financial institution customers, individuals or businesses, to access accounts, transact business, or obtain information on financial products and services through a public or private network, including the Internet. Customers access e-banking services using an intelligent electronic device, such as a personal computer (PC), personal digital assistant (PDA), automated teller machine (ATM), kiosk, or Touch Tone telephone. While the risks and controls are similar for the various e-banking access channels, this booklet focuses specifically on Internet-based services due to the Internets widely accessible public network. Accordingly, this booklet begins with a discussion of the two primary types of Internet websites: informational and transactional.

E-BANKING SUPPORT SERVICES WEBLINKING

A large number of financial institutions maintains sites on the World Wide Web. Some websites are strictly informational, while others also offer customers the ability to perform financial transactions, such as paying bills or transferring funds between accounts.

WIRELESS E-BANKING
Wireless banking is a delivery channel that can extend the reach and enhance the convenience of Internet banking products and services. Wireless banking occurs when customers access a financial institution's network(s) using cellular phones, pagers, and personal digital assistants (or similar devices) through telecommunication companies wireless networks. Wireless banking services in the United States typically supplement a financial institution's e-banking products and services. Person-to-Person Payments Electronic person-to-person payments, also known as e-mail money, permit consumers to send money to any person or business with an e-mail address. Under this scenario, a consumer electronically instructs the person-to-person payment service to transfer funds to another individual. The payment service then sends an e-mail notifying the individual that the funds are available and informs him or her of the methods available to access the funds including requesting a check, transferring the funds to an account at an insured financial institution, or retransmitting the funds to someone else. Person-to-person
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payments are typically funded by credit card charges transfer from the consumers account at a financial institution. Since neither the payee nor the payer in the transaction has to have an account with the payment service, such services may be offered by an insured financial institution, but are frequently offered by other businesses as well.

Banking Services through Internet:

1. The Basic Level Service is the banks web sites which disseminate information on different products and services offered to customers and members of public in general. It may receive and reply to customers queries through e-mail; 2. In the next level are Simple Transactional Web sites which allows customers to submit their instructions, applications for different services, queries in their account balances, etc. but do not permit any fund-based transactions on their accounts; 3. The third level of Internet banking service are offered by Fully Transactional Web sites which allow the customers to operate on their accounts for transfer of funds, payment of different bills, subscribing to other products of the bank and to transact purchase and sale of securities, etc. The above forms of Internet banking service the customer or by new banks, who deliver banking service primarily through Internet or other electronic delivery channels as the value added services. Some of these banks are known as Virtual banks or Internet only banks and may not have physical presence in a country despite offering different banking services.
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The Indian Scenario: Internet banking, both as a medium of delivery of banking services and as a strategic tool for business development. At present, the total internet users in the country are estimated at 9 lakh. However, this is expected to grow exponentially to 90 lakh by 2003. Only about 1 percent of Internet users did banking online in 1998. This is increased to 16.7 percent in March 2000. - (India Research, May 29, 2000, Kotak Securities) Cost of banking service through the Internet from a fraction of costs through conventional methods. Rough estimates assume teller cost at Re.1 per transaction, ATM transaction cost at 45 paise, phone banking at 35 paise, debit cards at 20 paise and Internet banking at 10 paise per transaction.

Plastic Cards as Media for Payment: There are four types of plastic cards being used as media for making payments. These are: 1. Credit Card 2. Debit Card
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3. Smart Card 4. ATM Card 1.

Credit Cards: -

The credit card enables the cardholders to: Purchase any item like clothes, jewellery, railway/air tickets, etc. Pay bills for dining in a restaurant or boarding and lodging in hotel Avail of any service like car rental, etc. 2. Debit

Cards: -

A debit card is issued on payment of a specified amount by the issuing company like a telephone company to a customer on cash payment or on debiting his account by a bank. Thus it is like an electronic purse, which can be read and debited by the required amount. It may be noted that while through a credit card, the customer first makes a purchase or avails service and pays later on, but for getting the debit card, a customer has to first pay the due amount and then make a purchase or avail the service. For this reason, debit card are not as popular as credit cards.

3. Smart

Cards: 11

Smart Cards have a built-in microcomputer chip, which can be used for storing and processing information. For example, a person can have a smart card from a bank with the specified amount stored electronically on it. As he goes on making transactions with the help of the card, the balance keeps on reducing electronically. When the specified amount is utilized by the customer, he can approach the bank to get his card validated for a further specified amount. Such cards are used for paying small amounts like telephone calls, petrol bills, etc.

4. ATM

Cards: -

The card contains a PIN (Personal Identification Number) which is selected by the customer or conveyed to the customer and enables him to withdraw cash up to the transaction limit for the day. He can also deposit cash or cheque.

Literature Review
A new review by Tower group of 10 top US e- banking web sites evaluated several aspects of core online banking components.

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Group found that there is difference in terms of actual functionality and usability. Among different banks and their services. The UK's first home online banking services were set up by the Nottingham Building Society (NBS) in 1983 ("History of the Nottingham". Retrieved on 2007-12-14.). The system used was based on the UK's Prestel system and used a computer, such as the BBC Micro, or keyboard (Tan data Td1400) connected to the telephone system and television set. The system (known as 'Home link') 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 Home link system. An American study conducted last year by Booz-Allen projects that by the year 2000, 16 million US households will be using Internet banking. While these numbers do not appear to be significant as compared to the total population, each Internet user is projected to be 50-250% more profitable than the average banking customer. It is expected that these Internet customers will be some of the banking system's most profitable customers representing close to 30% of all retail banking profits. The study projects that by 1999, 1,500 banks will have Internet Web sites and at least 500 of these banks will be offering full-fledged Internet banking services. In 2001 Micro banker send detailed questionnaire to the leading vendors of internet banking software27 companies responded with information on thirty programs the aggregate outcome of the outcome was that almost all the companies have developed
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functions for internet banking and have inbuilt feature to aid with one to one marketing on the web.

ICICI BANK
ICICI Bank Online Banking Services provide the largest private bank in India right here at your desktops. Banking becomes a pleasure as the transactions and services become instant with ICICI Bank online Internet banking. The services provided are totally secure and unique. These cover online account transactions and operations, credit card and account applications and payments, share trading and investments through mutual funds, bill payments, statement generation and a virtual demo of each service. See in brief in final report.

Role of customer when using e-banking

You can access ICICIBank.com only by using your User ID and Password. During the first login attempt, it is mandatory to change both passwords - login and transaction which would have been mailed to you by the bank. If you forget your password, you will have written to us using the "Email Us" option. The Bank will then issue a new
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password and send it to your mailing address as per our records. Kindly check with your branch that this address is updated...

Make sure no one can see the account login name or password you are entering when you log on to ICICIBank.com. Logout of ICICIBank.com before moving on to other Websites. Before leaving the PC please "close" the browser. Do not write your ICICIBank.com login name or password anywhere. Do not leave your login name and password such that someone sitting at your computer could see them. Never reveal your ICICIBank.com login name and password to anyone (no representative of ICICI Bank will ever ask you for your ICICIBank.com password). Notify ICICI Bank immediately if you notice any unusual account activity. Keep all documents that include your account information in a secure location. When you login you can view the date and time of your last log in.

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Features offered by ICICI bank for internet banking

Balance enquiry and statement Transfer fund online Card to card fund transfer Use debit card online Prepaid mobile recharge Subscribe for mobile banking Link bank account to ATM Lock / activate debit cards /ATM Request a cheque book Stop payment

HDFC
Net Banking is HDFC Bank's Internet Banking service. Providing up-to-the-second account information, Net Banking lets you manage your account from the comfort of your mouse anytime, anywhere. Features offered by HDFC bank for internet banking

View account balances and statements Transfer funds between accounts

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Request stop payments Pay bills Create fixed deposit online Order cheque books

USE OF E-BANKING IN INDIA FEOM LAST FEW YEARS Year Incr. % 2002 9 2003 12 2004 15 2005 20 2006 25 2007 32 2008 40 2009 50

Finding In 2002-2009 the user of the E-banking is increase in more in every year.

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RESEARCH METHODOLOGY
Research means a search for knowledge or gain some new knowledge and methodology can properly refer to the theoretical analysis of the methods appropriate to a field of study or to the body of methods and principles particular to a branch of knowledge. A Research methodology has a specified framework for collecting the data in an effective manner. Research methodology means a "defining a problem, defining the research objectives, developing the research plan, collecting the information, analyzing the information and presentation of findings." Such framework is called Research Design". The research process that was followed by me consisting following steps; A) Defining the problem B) Developing the research plan
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C) Collection of Data D) Analysis and Interpretation of Data E) Presentation of findings A) Defining the problem and research objectives My research problem is to study the product and services provided by sales outbound team of standard chartered bank in Jalandhar B) Developing the Research Plan The development of research plan has following steps: 1. Data source 2. Research approach 3. Type of Research Design 4. Research instrument 5. Sampling plan i) Sample unit ii) Sample size iii) Contact methods 6. Questionnaire Design
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1. Data Source: The researcher can get two types of data:

a) Primary Data b) Secondary Data c) Data Recording

a) Primary Data Primary data is a data which did not exist earlier and is being collected by the researcher first time for its specific objectives. In other words, direct personal interview is conducted with the help of questionnaire.

b) Secondary data Any data which have been collected earlier for some purpose are the secondary data. Indirect collection of data from sources containing past or recent past information like bank's brochures, annual publication, books etc. Secondary sources used are:
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 Text books Internet sites Newspaper articles Broachers

2. Research Approach Survey is best suited for descriptive and analytical research. Survey are undertaken to learn about people's knowledge, beliefs, preferences, satisfaction and so on and to measure these magnitudes in the general public. Therefore, I have done this survey for Descriptive and analytical research process. Descriptive research includes surveys and fact finding enquiries of different kinds. The main purpose is description of the state of

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affairs is noted down and analytical research used to analyze the material and facts. 3. Research instrument Questionnaire: Questionnaire (also known as self-administered survey) is a type of statistical survey handed out in paper form usually to a specific demographic to gather information in order to provide better service or goods. A document that contains a set of questions that has been specially formulated as a means of collecting information and surveying opinions, etc on a specified subject or theme, etc .A questionnaire was constructed for my survey.

4. Sampling plan:

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Sample is a group of few items which represents the population or universe from where it has been taken. The sampling plan calls for three decisions; a) Sample unit b) Sample size c) Contact methods a) Sample unit who is to be surveyed? The target population must be defined that has to be sampled. It is necessary so as to develop a sample frame so that everyone in the target population has an equal chance of being sampled. I have completed my survey in Standard Chartered Bank, Jalandhar. b) Sample size - how many people have to be surveyed? Generally, large sample size gives more reliable results than small samples. The sample consisted of 20 customers.

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c) Contact methods Once the sampling plan has been determined the Questionnaire is how the subject should be contracted i.e. by telephone interview, personal interview, observation, mail etc. here, in my survey, I have contacted the respondents through personal interviews.

5. Questionnaire Design: a) There are 12 questions in my questionnaire and I asked all these questions from 20 account holders of Standard Chartered Bank, Jalandhar. C) Collecting the information After this, I have collected the information from the respondents with the help of Questionnaire.

D) Data Analysis and Interpretation

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The next step is to extract the pertinent findings from the collected data have tabulated the collected data and developed frequency distributions. Thus, the whole data was grouped aspect wise and was presented in tabular form. Thus, frequencies and percentages were prepared to render impact of study. E) Presentations of findings This was the last step of survey.

LIMITATIONS OF THE STUDY: Due to constraints of time and resources, the study is likely to suffer from certain limitations. Some of these are mentioned here under so that the findings of the study may be understood in a proper perspective.

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The limitations of the study are: Some of the respondents of the survey were unwilling to share information. The research was carried out on in-house customers. i.e. within the branch in the small city of Punjab viz. Jalandhar so the response may vary by including the respondents from other branches in other areas as well. The sample size and other parameters were selected accordingly so as to finish the work within the given time frame. The information given by the respondents might be biased because some of them might not be interested to give correct information.

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DATA COLLECTION
Primary Data: In this research with a sample size of nearly 20 customers data will be available in form of questionnaire collected in terms of different questions influencing the use of internet banking. Internet banking is considered as dependent on awareness among customers which will be studied with help of different independent variable. Only the customers of HDFC & ICICI bank are taken as samples for study.
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Secondary data: Collection of information from different kind of books the data of the company what they maintained.

Methodology
Once the findings are finalized by a research, suggestions should be made for the betterment of enterprise.The data collected from questionnaire will be tabulated and analyzed so that The result can be presented as simple as possible. There are a number of ways like o Pie-chart o Graphs

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Data analysis
1) Users of E-banking

Yes No

65% 35%

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2) No. of user of the banks Icici Sbi Sbh Axis Union Hdfc 20% 30% 20% 10% 8% 12%

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3)

PREFERENCE FOR ONLINE BILL PAYMENT SERVICES

Yes No

60% 40%

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4)

PREFERENCE FOR ONLINE SHOPPING

Yes No

70% 30%

5)

PREFERENCE FOR ONLINE FUND TRANSFAR `

Yes No
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35% 65%

6) SATISFIED CUSTOMERS

Yes No

65% 35%

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7) PERFERRED MODE OF PAYMENT (TO BANK)

CHEQUE CASH E-BANKING

50 25 25

8) SPEND PER BILL FOR ON LINE BILL PAYMENT

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ABOVE Rs.10 BETWEEN RS.5-10 BELOW RS.5 NOTHING

21 11 32 36

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Questionnaire:1. Name of the customer:2. Adress:3. Contact no:4. Do you like E-banking a. Yes b. No

5. Tick which bank you preferred a. Icici b. Sbi c. Sbh d. Axis e. Union bank
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f. Hdfc g. UTI Bank Ltd h. Bank of Punjab Ltd

6. Why this bank a. Service is good b. They provide security c. Cheaper service fees.

7. Which type of service mostly you use? a. Balance and transaction history search b. Transfer fund online c. Card to card fund transfer d. Open FD e. Lock / activate debit cards /ATM f. Request a cheque book g. Stop payment h. Railway pass / ticket
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i. Shopping j. Share payment 8. Services of the bank are. a. poor b. good c. Very good

9. Are you satisfied with the using of E-banking? a. Yes b. No

Limitation of Study
Banks are not giving me all information about E-banking services. They do not permit to meet any of the employees in their bank.
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Findings
1. In the users ratio of internet banking 65% of customers are using this service. 2. More banks are connecting to the any software co. to running the E-banking service. In these services the Sbi banks is top in service of E-banking. 3. The services that are mostly used by maximum customers are transactions, online trading, bill payment, shopping etc. 4. The mode of the cash deposit in bank is for use to online truncation cash, cheque & e-banking. 5. Different banks different charge for online service.
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Suggestions
1. To prevent online banking from remaining customers to prompt this service through advertising co.
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2. After repairing this basic deficiency, banks must ensure that there services is competitive.
3.

Banks is not take more charge from there customers.

Conclusion
The basic objective of my research was to analyze the awareness among customers for internet banking in INDIA. It gives direction to research tools, research types and techniques. Although the findings reveal that people know about the services but still many people are unaware and many of them are non users so the bank should by promotion try to retain the customers. Banks should look forward to have some tie ups with other financial institutions to increase the service base.

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Bibliography
Book:-

E-banking in India Banking service operation (ICFAI) Indian Banking Money & Banking

Links Visited
www.google.com www.icici.com www.hdfc.com www.wikipedia.com

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Questionnaire:10. 11. 12. 13. Name of the customer:Adress:Contact no:Do you like E-banking

c. Yes d. No
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14.

Tick which bank you preferred

i. Icici j. Sbi k. Sbh l. Axis m.Union bank n. Hdfc o. UTI Bank Ltd p. Bank of Punjab Ltd

15.

Why this bank

d. Service is good e. They provide security f. Cheaper service fees.

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16.

Which type of service mostly you use? k. Balance and transaction history search l. Transfer fund online m.Card to card fund transfer n. Open FD o. Lock / activate debit cards /ATM p. Request a cheque book q. Stop payment r. Railway pass / ticket s. Shopping t. Share payment

17.

Services of the bank are.

d. poor e. good f. Very good

18.

Are you satisfied with the using of E-banking?

c. Yes No

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