PRESENTED BY: Himanshu Kansal Roll No.

5583

INDIAN BANKING SYSTEM

Banking Industry in India has travelled a long path to assume its present status. It has undergone a major structural transformation after the independence including the assumption of social banking. The success in transformation has been achieved by overcoming hurdles and impediments, stresses and strains.

OLDEST SYSTEM OF BANKING

The oldest banking institutions consisted of indigenous banks, money lenders, nidhis etc. They played significant role in the development of banking by meeting the needs of business people and others in the local area. Generally, they charge exorbitant rates of interest by exploiting mercilessly illiterate and ignorant villagers and have limited resources.

MODERN BANKING SYSTEM

The earliest banking system played a significant role till the Mughal period. In order to meet their financial requirements and banking assistance, the English agency houses started their own banking business in Calcutta and Bombay.

The earliest European Bank was started by the English agency houses along with their trading activities in 1710 in the name of Bank of Hindustan.

They included Presidency Bank of Bengal (1806), Presidency Bank of Madras (1840) and the Presidency Bank of Calcutta and later by 1921 these three banks were amalgamated to constitute one bank called Imperial Bank of India.

JOINT STOCK BANKS

The enactment of Joint Stock Companies Act in 1850 was the milestone to incorporate the concept of "limited liability" into corporate sector under the organized system which was recognized in the year 1857.

In 1860, the principle of limited liability was applied to joint stock banks.

The Swadesi movement gave impetus to the starting of Indian banks like Bank of India in 1906, Bank of Baroda Ltd., in 1908 and Central Bank of India in 1911 and several of these banks failed on account of the serious bank crisis in 1913-17 and this situation continued till the Second World War.

ESTABLISHMENT OF RESERVE BANK OF INDIA

The Hilton Young Commission in 1926 recommended the establishment of a separate bank in the country known as Reserve Bank of India. So a bill was introduced in the Legislative Assembly in 1933 which led to the establishment of Reserve Bank in 1935.

GROWTH POTENTIALS FOR INDIAN BANKING SYSTEM

Banking sector has remained the backbone of Indian economy since independence. Advent of hi-tech communication and information technology has facilitated growth in Internet banking, ATM Network, Electronic transfer of funds and quick dissemination of information between different branches. Marketing of banking services has undergone a sea change in the last decade.

THE FOLLOWING FACTORS ARE LIKELY TO DRIVE BANKING SECTOR PERFORMANCE FROM IN THE COMING YEARS:

Credit growth likely to remain healthy at around 2023% and deposit growth at 18% during the current five year plan. The pressure on creating additional credit is now reduced. Banks can continue to cut deposit rates, the rate cut is likely to translate into better margins.

CASA ratios could stabilize and neutralize rate cut effects. Non- interest income is likely to remain strong and third party product distribution is increasing. Slowdown in retail credit, buoyant economy, rising wages and increased employment opportunities provide a room for quality asset portfolio of banks.

E-BANKING-AN OVERVIEW

Internet banking is changing the banking industry and is having the major effects on banking relationships.

Banking is now no longer confined to the branches were one has to approach the branch in person, to withdraw cash or deposit a cheque or request a statement of accounts.

Providing Internet banking is increasingly becoming a "need to have" than a "nice to have" service. The net banking, thus, now is more of a norm rather than an exception in many developed countries due to the fact that it is the cheapest way of providing banking services.

E-BANKING AND VALUE ADDED SERVICES

Electronic Banking Technology Personal Digital Assistants (PDAs) Automated Teller Machines (ATMs) Magistrate Cards Smart cards Euro card, MasterCard and Visa Mobile phone banking The customer perspective the value proposition

FEATURES OF E-BANKING
Acceptability Accessibility Affordability Ease of use

ELECTRONIC FUND TRANSFERS

Automated Teller Machines or 24-hour Tellers are electronic terminals that let the bank almost any time. Direct Deposit lets authorize specific deposits, such as paychecks and Social Security checks, to the account on a regular basis Pay-by-Phone Systems, call financial institution with instructions to pay certain bills or to transfer funds between accounts.

Personal Computer Banking Debit Card Transactions Purchase

Electronic Check Conversion converts a paper check into an electronic payment in a store or when a company receives check in the mail

THE SERVICES OF E-BANKING

DEBIT CARD INTERNET BANKING

PHONE BANKING
MOBILE BANKING CREDIT CARD

BANK PROFILES AND THEIR E-BANKING SERVICES

State Bank of India is India's largest bank amongst all public and private sector banks operating in India. State Bank of India owns and operates the following subsidiaries and Joint VenturesState Bank of India Credit Card State Bank of India Online State Bank of India USA State Bank Of India Services State Bank of India Mutual Funds State Bank of India Branch State Bank of India NRI Account

E-BANKING SERVICES PROVIDED BY STATE BANK OF INDIA

E-TICKETING SBI E-TAX BILL PAYMENT EZTRADE@SBI RTGS/NEFT E-PAYMENT FUND TRANSFER THIRD PARTY TRANSFER DEMAND DRAFT CHEQUE BOOK REQUEST ACCOUNT OPENING REQUEST ACCOUNT STATEMENT TRANSACTION ENQUIRY DEMAT ACCOUNT STATEMENT DONATION

BUSINESS FOCUS (OBJECTIVES)

The banks aim is to build a sound customer franchise across distinct businesses. To be the preferred provider of banking services in the niche segments that the bank operates in. To achieve healthy growth in profitability, consistent with bank appetite. To ensure the highest level of ethical standards, professional integrity and regulatory compliance. To have a presence in all major industrial and commercial centers where its corporate customers are located.

E-BANKING SERVICES OF HDFC BANK

Debit card Net banking Phone banking Mobile banking Credit card

COMPARISON OF VARIOUS INTERNET BANKING SERVICES PROVIDED BY SBI BANK AND HDFC BANK

BILL PAYMENT ONLINE SHOPPING TICKET BOOKING INSURANCE SERVICE ONLINE SHARE TRADING SMS ALERTS ATM SERVICE ONEVIEW SERVICE PREPAID REFILL OF SIM CARD MUTUAL FUND SERVICE

The GENERALISED CONCLUSION drawn by me is that the private banks provide more online internet banking services than the public sector banks, so the public sector banks should also start providing more online internet banking services and should expand these services to most of its branches, this will enable them to expand their customer base and to face the competition in a better way.

It is concluded that the future of the E-Banking is bright, so as and when the customers are aware and educated about the trend of new system, it will give opportunities for upcoming generation to pursue in. In this way, the E-Banking will glorified the banking system as a whole.

SUGGESTIONS

Since customers are not aware about the E-Banking Services provided by the banks, so regular awareness programs about the new schemes, new services should be conducted. It was found that the customers are mainly using ATM as a major channel of E-Banking because of the convenience, time saving and anywhere anytime banking. As there is no regional language available in the ATM software of some banks, like HDFC, its tough for less educated persons to operate. A permanent employee should be appointed (by each bank) to clear the queries regarding E-Banking Services only.

Banks should increase the per day cash with drawl limit through ATM. Banks should use the pamphlets and brochures in Hindi and Punjabi also. Every customer should be given proper Knowledge about EBanking Services at the time of opening an account. The E-Banking Channels like Internet banking, Mobile banking and Phone banking are very less popular among the customers. They use these services upto some extent. The most effective media for the promotion of E-Banking Services is personal contacts and advertisements. The reasons for not using E-Banking Channels were found to be the lack of security and lack of knowledge.

THANK YOU