CHAPTER 1 INTRODUCTION

I service sector II services III banking servicr IV Technology n service V Importance of custers in service ANALYSIS OF THE USAGE AND EFFECTIVENESS OF E BANKING AMONG USERS WITH SPECIAL REFERENCE TO HDFC BANK

INTRODUCTION TO SERVICE SECTOR

Service Sector is the lifeline for the social economic growth of a country.
It is today the largest and fastest growing sector globally contributing more to the global output and employing more people than any other sector. The real reason for the growth of the service sector is due to the increase in urbanization, privatization and more demand for intermediate and final consumer services. Availability of quality services is vital for the well being of the economy. In advanced economies the growth in the primary and secondary sectors are directly dependent on the growth of services like banking, insurance, trade, commerce, entertainment etc.

The service sector is going through almost revolutionary change, it dramatically affects the way in which we live and work. New services are continually being launched to satisfy consumers existing needs and to meet the

Needs that they do not even know they had. Ten years ago people did not anticipate the need for email, online banking, web hosting, online reservation and many other new services, but today many of us feel we cannot survive without them. Similar transformations are happening in Business to business marketing. Service organisations vary widely in size. At one end are the huge international corporations operating in industries such as tourism, airlines,

banking, telecommunication etc whereas on the other end of the scale is a vast array of locally owned and operated small businesses including parlours , hotels , laundry n numerous business to business services.

How important is the service sector in an economy? In most countries services add more economic value than agriculture, raw materials and manufacturing combined.

In developed economies employment is dominated by service jobs and most new job growth comes from services.

Jobs range from high paid professionals and technicians to minimum wage positions.

Service organisations can be any size, from huge global corporations to

local small businesses.

Most activities by govt. agencies and non profit orgs involve service.

Service Sector in India:

In alignment with the global trends, Indian service sector has witnessed a major boom and is one of the major contributors to both employment and national income in recent times. The activities under the purview of the service sector are quite diverse. Trading, transportation and communication, financial, real estate and business services, community, social and personal services come within the gambit of the service industry. Service sector in India accounts for more than half of Indias GDP. According to data for the financial year 2008, the share of services, industry and agriculture in Indi as GDP is 53.7% 29.1% and 17.2% respectively. The various sectors that combine together to constitute service industry in India are stated as under: Trade Hotels and restaurants Railways Other transport and storage Communication (post and telecom) Banking Insurance Dwellings, real estate

Business services Public administrations, defence Personal services Community services Other service

Chapter 2 INTRODUCTION TO BANKING SECTOR

A bank is an institution that deals with money and credit. Different people understand meaning of a bank in different ways. For a common man, bank is a storehouse where money is stored, for a businessman it is a financial institution and for a day to day customer it is an institution where he can deposit his savings. Banks play an important role in the economy of any country as they hold the savings of the public. Provide means of payment for goods and services and provide necessary finance for development of business and change. Thus bank is a link in the flow of funds from the savers to the users hence they should render efficient customer service in order to retain the present customers and also to attract the potential customer. In the past the banks did not face any attraction in the Indian economy because of the low level of the economic activities and the little business prospects. Today we find positive changes in the national business development policy. Earlier the moneylenders had a strong hold over the rural population which resulted in exploitation of small and marginal savers. The private sector

banks failed in serving the society. This resulted in the nationalisation of 14 commercial banks in 1969. There was a basic change in the banking concept with a beginning in the nationalisation of big commercial banks. The involvement of public sector banks, transformed the Indian economy. The Indian banking can be broadly categorized into nationalized (government owned), private banks and specialized banking institutions. The Reserve Bank of India acts a centralized body monitoring any discrepancies and shortcoming in the system. Since the nationalization of banks in 1969, the public sector banks or the nationalized banks have acquired a place of prominence and has since then seen tremendous progress. The need to become highly customer focused has forced the slow-moving public sector banks to adopt a fast track approach. The unleashing of products and services through the net has galvanized players at all levels of the banking and financial institutions market grid to look anew at their existing portfolio offering. Conservative banking practices allowed Indian banks to be insulated partially from the Asian currency crisis. Indian banks are now quoting a higher valuation when compared to banks in other Asian countries (viz. Hong Kong, Singapore, Philippines etc.) that have major problems linked to huge Non Performing Assets (NPAs) and payment defaults. Co-operative banks are nimble footed in approach and armed with efficient branch networks focus primarily on the high revenue niche retail segments. The Indian banking has finally worked up to the competitive dynamics of the new Indian market and is addressing the relevant issues to take on the

multifarious challenges of globalization. Banks that employ IT solutions are perceived to be futuristic and proactive players capable of meeting the multifarious requirements of the large customers base. Private Banks have been fast on the uptake and are reorienting their strategies using the internet as a medium The Internet has emerged as the new and challenging frontier of marketing with the conventional physical world tenets being just as applicable like in any other marketing medium. The Indian banking has come from a long way from being a sleepy business institution to a highly proactive and dynamic entity. This

transformation has been largely brought about by the large dose of liberalization and economic reforms that allowed banks to explore new business opportunities rather than generating revenues from conventional streams (i.e. borrowing and lending). The banking in India is highly fragmented with 30 banking units contributing to almost 50% of deposits and 60% of advances. Indian

nationalized banks (banks owned by the government) continue to be the major lenders in the economy due to their sheer size and penetrative networks which assures them high deposit mobilization. The Indian banking can be broadly categorized into nationalized, private banks and specialized banking institutions. The Reserve Bank of India acts as a centralized body monitoring any discrepancies and shortcoming in the system. It is the foremost monitoring body in the Indian financial sector. The nationalized banks (i.e. governmentowned banks) continue to dominate the Indian

banking arena. Industry estimates indicate that out of 274 commercial banks operating in India, 223 banks are in the public sector and 51 are in the private sector. The private sector bank grid also includes 24 foreign banks that have started their operations here.

The liberalize policy of Government of India permitted entry to private sector in the banking, the industry has witnessed the entry of nine new generation private banks. The major differentiating parameter that distinguishes these banks from all the other banks in the Indian banking is the level of service that is offered to the customer. Their focus has always centred around the customer understanding his needs, pre-empting him and consequently delighting him with various configurations of benefits and a wide portfolio of products and services. These banks have generally been established by promoters of repute or by high value domestic financial institutions. The popularity of these banks can be gauged by the fact that in a short span of time, these banks have gained considerable customer confidence and consequently have shown impressive growth rates. Today, the private banks corner almost four per cent share of the total share of deposits. Most of the banks in this category are concentrated in the high-growth urban areas in metros (that account for approximately 70% of the total banking business). With efficiency being the major focus, these banks have leveraged on their strengths and competencies viz. Management, operational efficiency and flexibility, superior product positioning and higher employee productivity skills. The private banks with their focused business and service portfolio have a reputation of being niche players in the industry. A strategy that has allowed these banks to concentrate on few reliable high net worth companies and

individuals rather than cater to the mass market.

These well-chalked out

integrates strategy plans have allowed most of these banks to deliver superlative levels of personalized services. With the Reserve Bank of India allowing these banks to operate 70% of their businesses in urban areas, this statutory

requirement has translated into lower deposit mobilization costs and higher margins relative to public sector banks. The three major changes in the banking sector post liberalization are: Step to increase the cash outflow through reduction in the statutory liquidity and cash reserve ratio.

Nationalized banks including SBI were allowed to sell stakes to private sector and private investors were allowed to enter the banking domain. Foreign banks were given greater access to the domestic market, both as subsidiaries and branches, provided the foreign banks maintained a minimum assigned capital and would be governed by the same rules and regulations governing domestic banks.

Banks were given greater freedom to leverage the capital markets and determine their asset portfolios. The banks were allowed to provide advances against equity provided as collateral and provide bank guarantees to the broking community

Technologies & Innovations in Banking

Technologies in Banking
Technology plays a very important role in banks internal control mechanisms as well as services offered by them. It has in fact given new dimensions to the banks as well as services that they cater to and the banks are enthusiastically adopting new technological innovations for devising new products and services.

The latest developments in terms of technology in computer and telecommunication have encouraged the bankers to change the concept of branch banking to anywhere banking. The use of ATM and Internet banking has allowed anytime, anywhere banking facilities. Automatic voice recorders now answer simple queries, currency accounting machines makes the job easier and self-service counters are now encouraged. Credit card facility has encouraged an era of cashless society. Today MasterCard and Visa card are the two most popular cards used world over. The banks have now started issuing smartcards or debit cards to be used for making payments. These are also called as electronic purse. Some of the banks have also started home banking through telecommunication facilities and computer technology by using terminals installed at customers home and they can make the balance inquiry, get the statement of accounts, give instructions for fund transfers , etc. Through ECS we can receive the dividends and interest directly to our account avoiding the delay or chance of losing the post.

Today banks are also using SMS and Internet as major tool of promotions and giving great utility to its customers. For example SMS functions through simple text messages sent from your mobile. The messages are then recognized by the bank to provide you with the required information. All these technological changes have forced the bankers to adopt customer-based approach instead of product-based approach.

Electronic Banking:
With the introduction of computers in Indian banks and with the advent of ATMs the banking services are provided across the banks. Customers need not necessarily visit the bank to do banking transactions when the bank provides

them with tele banking and or remote banking facilities. This type of banking is called electronic banking and the concept is becoming popular with individual as well as corporate entities in India. 1. Automated Teller Machines (ATMs): ATMs have eliminated the time limitations of customer service and offer a host of banking services including deposits, withdrawals, requisitions, instructions and transactions. ATMs traditional and primary use is to dispense cash upon insertion of a plastic card and its unique PIN or personal

identification number. It is issued to Current and Saving account holders of a bank who hold a certain minimum balance. When the card is inserted into the ATM, the machine sensing equipment identifies the account holder and asks for his or her identification PIN number. This number is not even known to the bank staff and is unique and secret to the individual

2.

Internet Banking: Banks have over a long time been using electronic and

telecommunication network for delivering a wide range of value added products and services. The delivery channels include dial-up connection, private network, public network etc and the devices include telephone personal computers including the ATM etc. With the popularity of PCs and easy access to the internet and World Wide Web banks increasingly use internet as a channel for receiving instructions and delivering their products and services to their customers. This form of banking is often referred to as internet banking,

although the range of products and services offered by different banks, vary widely both in their content and sophistication.

3.

Mobile Banking: Through inter banking one can visit the web site of each bank by

entering his password and known the account balance and even pass his own credit and debit entries. This means that we can do our banking through our personal computer settings at home. Banks may soon allow zero balance savings accounts through internet facility only. Customers can now make balance enquires download statements and open fixed deposits over the net. They will soon be able to carry out all their transactions over the net. So visiting a bank would be needless. Time to come; mobile phones will drive banking transactions. These mobile phones will drive banking transactions. These mobile phones will be equipped with smart cards that are embedded with banking and other information. This mobile phone banking facility is yet to come but the mechanics of linking the banking with the cell phone is being sorted out. Teller machines are being installed in the banks for the electronic banking facility. Banking will be on wheels and mobile by the use of smart banking.

4.

Note and coin counting machines: To reduce the need of manual counting, note and counting machines are

available which counts a bundle of notes placed on it. Loose notes are inserted into the machine. The machine then counts the notes at top speed, while simultaneously indicating the number counted on a digital display. Every time the number reaches 100, the machine stops, subject to it being fixed at 100 and allows for the bundle to be taken out. This machine does relieve the drudgery involved in counting. However, one limitation of this machine is that the notes have to be in fairly good condition for the machine to able to count properly. However, the machine requires all the notes to be in the same denomination.

5.

Electromagnetic Cards: In the modern days of commerce credit cards have acquired a fairly

prominent and pervasive role. With the increasing use of credit cards the society is moving towards cashless transactions. In India however the use of credit cards is restricted to small value and mostly personal transactions. The two international credit card giants viz, Visa international and Master Card international are poised to make deeper inroad in untapped Indian market.

Types of electromagnetic cards: 1) Charge card: In such cards transactions are accumulated over a period of

time generally a month and the total amount is charged i.e. debited to the account. In charge card the amount becomes payable immediately on the debit to the account.

2)

Credit card: This is the same as charge card where the transactions are

charged to the account with the total value of transaction debited to the card holders account once in a month. The difference between the credit and charge card is that in case of the credit card holder is given about 25 to 50 days time to credit his account in case there are insufficient funds in his account at the time of debit.

3)

Debit card: A bank-issued card that allows its users to access their funds

for the purpose of paying for merchandise.

4)

Smart card: There are two types of smart cards intelligent memory chip

and micro processor cards. The memory smart cards have been around for several years they are being used in paying phones, identification, access control, voting and other applications. Processer smart cards are the most

advanced and are ideally suited for banking and financial application where re use of the card is allowed.

5)

Member card: This is used by members of a club or a chain of hotels.

E.g. the Taj Card is a card issued by the Management of the Taj group of Hotels to be used by patrons of their hotels .Similarly there are many other types of cards where the usage is exclusive to the members of the group.

Conclusion:
With the development of modern communication facilities, electronic payment systems are becoming popular. These are teller machines available for bank customers within the bank as well as outside the bank premises. ATMs which are being located even at public places, are able to provide the customers minimal banking services including cash payments round the clock. Shared ATMs are also introduced in India where the services are provided across the banks. Customers need not necessarily visit the bank to do banking transactions when their banker provides them tele-banking or remote banking facilities. We have also seen that the various electronic and electro-mechanical aids that help the modern banker to efficiently render innovative and novel customer service. Equipments like note and coin counting machines help the banker to take care of the tedium in his task, reduce drudgery and at the same time efficiently discharge his functions. These technological aids not only take care of some of the physical routine tasks but also contribute substantially to

efficient housekeeping functions and also render services that are in tune with the customer needs and satisfaction.

Literature Review 5 more

Internet and the Banking System

The rapid growth of the Web creates a tremendous opportunity for new businesses, but also requires a new way of viewing the market place for the community banker. Experts estimates that consumer use of e banking services will increase over 20-fold by the end of the century. Geography and the number of branches become irrelevant and community banks are able to offer the same level of service and convenience to customers as the largest banks. In the past, over 60% of existing bank customers have cited their bank selection to be based on convenience of location. For the customers of today, convenience of location includes the availability of 24-hour access via the Internet. (Wilson, 1996)

Seitz and Stickel (1999) considered that financial service companies are using the Internet as a new distribution channel. The goals are: complex products may be offered in an equivalent quality with lower costs to more potential customers there may be contacts from each place of earth at any time of day and night Seybold (1998) identifies 8 critical success factors for electronic banking: Own the customers total experience

Streamline business processes that impact the customer Provide a 360-degree view of customer relationship Let customers help themselves Help customers do their job Deliver personalized service

STATEMENT OF THE PROBLEM

E-banking means any user with a personal computer and a browser can get connected to his bank website to perform any of the virtual banking functions. In E banking system the bank has a centralized database thatis web-enabled. All the services that the bank has permitted onthe internet are displayed in menu. Any service can be selectedand further interaction is dictated by the nature of service. Oncethe branch offices of bank are interconnected through terrestrialor satellite links, there would be no physical identity for any branch The study is made taking consideration of E- Banking of HDFC bank. It investigates about all applications of E- Banking offered by HDFC bank. General consumers have been significantly affected in a positive manner by E-banking. Many of the ordinary tasks have now been fully automated resulting in greater ease and comfort. The study would help in determining the usefulness of E- Banking as perceived by customer of HDFC bank. Customer acceptance and Satisfaction experienced in e- banking is also an area of research.

Research Methodology
The data collected from questionnaire will be tabulated and analyzed so that it can easily understand to the user. There are a number of ways to be used to present the result of findings are:o Pie-chart o Graphs

SAMPLING PLAN Since it is not possible to study whole universe, it becomes necessary to take sample from the universe to know about its characteristics. Sampling Units In this project sampling unit consisted of the various individuals who had their bank accounts with HDFC Bank Sample Technique : Quota sampling Research Instrument: Structured Questionnaire . Contact Method: Personal Interview. SAMPLE SIZE: The sampling technique used is quota sampling. For this purpose 100 customers of HDFC bank are taken. Among this 60 % of customers belongs to age group 20 35, 20% of customers belongs to age group 35 50 and remaining 20 % belongs to age above 50 years

DATA COLLECTION INSTRUMENT DEVELOPMENT: The mode of collection of data will be based on Primary as well as Secondary data. Primary data: Primary data collection will base on personal interview of customers and people linked with HDFC. I have prepared the questionnaire according to the necessity of the data to be collected. Secondary data: Collection of information from HDFC website and different various websites related to Ebanking

Objective of study

To study the awareness of E BANKING among the customers HDFC bank To know usage habits of customers of HDFC bank Find the customer satisfaction relating to E - Banking service. To study the problems faced by the customers in availing the E BANKING facilities and to find out remedial measures

Limitation of Study

Banks are not giving me all information about E-banking services. Some customers are not aware about the HDFC Bank Research is only done in a restricted area

CHAPTER 3 -ORGANIZATION PROFILE . COMPANY HISTORY 3.1FORMATION OF THE COMPANY The Housing Development Finance Corporation Limited (HDFC) was amongst the first to receive an 'in principle' approval from the Reserve Bank of India (RBI) to set up a bank in the private sector, as part of the RBI's liberalization of the Indian Banking Industry in 1994. The bank was incorporated in August 1994 in the name of 'HDFC Bank Limited', with its registered office in Mumbai, India. HDFC Bank commenced operations as a Scheduled Commercial Bank in January 1995.

PROMOTER HDFC is India's premier housing finance company and enjoys an impeccable track record in India as well as in international markets. Since its inception in 1977, the Corporation has maintained a consistent and healthy growth in its operations to remain the market leader in mortgages. Its outstanding loan portfolio covers well over a million dwelling units. HDFC has developed significant expertise in retail mortgage loans to different market segments and also has a large corporate client base for its housing related credit facilities. With its experience in the financial markets, a strong market reputation, large shareholder base and unique consumer franchise, HDFC was ideally positioned to promote a bank in the Indian environment.

BUSINESS FOCUS HDFC Bank's mission is to be a World-Class Indian Bank. The objective is to build sound customer franchises across distinct businesses so as to be the preferred provider of banking services for target retail and wholesale customer segments, and to achieve healthy growth in profitability, consistent with the bank's risk appetite. The bank is committed to maintain the highest level of ethical standards, professional integrity, corporate governance and regulatory compliance. HDFC Bank's business philosophy is based on four core values - Operational Excellence, Customer Focus, Product Leadership and People.

CAPITAL STRUCTURE The authorized capital of HDFC Bank is Rs550 crore (Rs5.5 billion). The paid-up capital is Rs424.6 crore (Rs.4.2 billion). The HDFC Group holds 19.4% of the bank's equity and about 17.6% of the equity is held by the ADS Depository (in respect of the bank's American Depository Shares (ADS) Issue). Roughly 28% of the equity is held by Foreign Institutional Investors (FIIs) and the bank has about 570,000 shareholders. The shares are listed on the Stock Exchange, Mumbai and the National Stock Exchange. The bank's American Depository Shares are listed on the New York Stock Exchange (NYSE) under the symbol 'HDB'.

TIMES BANK AMALGAMATION In a milestone transaction in the Indian banking industry, Times Bank Limited (another new private sector bank promoted by Bennett, Coleman & Co./Times Group) was merged with HDFC Bank Ltd., effective February 26, 2000. As per the scheme of amalgamation approved by the shareholders of both banks and the Reserve Bank of India, shareholders of Times Bank received 1 share of HDFC Bank for every 5.75 shares of Times Bank. The acquisition added significant value to HDFC Bank in terms of increased branch network, expanded geographic reach, enhanced customer base, skilled manpower and the opportunity to cross-sell and leverage alternative delivery channels.

DISTRIBUTION NETWORK HDFC Bank is headquartered in Mumbai. The Bank at present has an enviable network of over 1229 branches spread over 444 cities across India. All branches are linked on an online real-time basis. Customers in over 120 locations are also serviced through Telephone Banking. The Bank's expansion plans take into account the need to have a presence in all major industrial and commercial centers where its corporate customers are located as well as the need to build a strong retail customer base for both deposits and loan products. Being a clearing/settlement bank to various leading stock exchanges, the Bank has branches in the centers where the NSE/BSE has a strong and active member base. The Bank also has a network of about over 2526 networked ATMs across these cities. Moreover, HDFC Bank's ATM network can be accessed by all domestic and

international Visa/MasterCard, Visa Electron/Maestro, Plus/Cirrus and American Express Credit/Charge cardholders.

TECHNOLOGY HDFC Bank operates in a highly automated environment in terms of information technology and communication systems. All the bank's branches have online connectivity, which enables the bank to offer speedy funds transfer facilities to its customers. Multi-branch access is also provided to retail customers through the branch network and Automated Teller Machines (ATMs). The Bank has made substantial efforts and investments in acquiring the best technology available internationally, to build the infrastructure for a world class bank. The Bank's business is supported by scalable and robust systems which ensure that our clients always get the finest services we offer. The Bank has prioritized its engagement in technology and the internet as one of its key goals and has already made significant progress in web-enabling its core businesses. In each of its businesses, the Bank has succeeded in leveraging its market position, expertise and technology to create a competitive advantage and build market share.

BUSINESS FOCUS HDFC Bank's mission is to be a World-Class Indian Bank. The objective is to build sound customer franchises across distinct businesses so as to be the preferred provider of banking services for target retail and wholesale customer segments, and to achieve healthy growth in profitability, consistent with the bank's risk appetite. The bank is committed to maintain the highest level of ethical standards, professional integrity, corporate governance and regulatory compliance. HDFC Bank's business philosophy is based on four core values - Operational Excellence, Customer Focus, Product Leadership and People.

 RATING I. Credit Rating The Bank has its deposit programs rated by two rating agencies - Credit Analysis & Research Limited (CARE) and Fitch Ratings India Private Limited. The Bank's Fixed Deposit programme has been rated 'CARE AAA (FD)' [Triple A] by CARE, which represents instruments considered to be "of the best quality, carrying negligible investment risk". CARE has also rated the bank's Certificate of Deposit (CD) programme "PR 1+" which represents "superior capacity for repayment of short term promissory obligations". Fitch Ratings India Pvt. Ltd. (100% subsidiary of Fitch Inc.) has assigned the "tAAA( ind )" rating to the Bank's deposit programme, with the outlook on the rating as "stable". This rating indicates "highest credit quality" where "protection factors are very high". The Bank also has its long term unsecured, subordinated (Tier II) Bonds rated by CARE and Fitch Ratings India Private Limited and its Tier I perpetual Bonds and Upper Tier II Bonds rated by CARE and CRISIL Ltd. CARE has assigned the rating of "CARE AAA" for the subordinated Tier II Bonds while Fitch Ratings India Pvt. Ltd. has assigned the rating "AAA (ind)" with the outlook on the rating as "stable". CARE has also assigned "CARE AAA [Triple A]" for the Banks Perpetual bond and Upper Tier II bond issues. CRISIL has assigned the rating "AAA / Stable" for the Bank's Perpetual Debt programme and Upper Tier II Bond issue. In each of the cases referred to above, the ratings awarded were the highest assigned by the rating agency for those instruments. II. Corporate Governance Rating

The bank was one of the first four companies, which subjected itself to a Corporate Governance and Value Creation (GVC) rating by the rating agency, The Credit Rating Information Services of India Limited (CRISIL). The rating provides an independent assessment of an entity's current performance and an expectation on its "balanced value creation and corporate governance practices" in future. The bank has been assigned a 'CRISIL GVC Level 1' rating which indicates that the bank's capability with respect to wealth creation for all its stakeholders while adopting sound corporate governance practices is the highest.

2.2 PRODUCT SCOPE: HDFC Bank offers a bunch of products and services to meet the every need of the people. The company cares for both, individuals as well as corporate and small and medium enterprises. For individuals, the company has a range accounts, investment, and pension scheme, different types of loans and cards that assist the customers. The customers can choose the suitable one from a range of products which will suit their life-stage and needs. For organizations the company has a host of customized solutions that range from Funded services, Non-funded services, Value addition services, Mutual fund etc. These affordable plans apart from providing long term value to the employees help in enhancing goodwill of the company. The products of the company are categorized into various sections which are as follows: Accounts and deposits. Loans. Investments and Insurance. Forex and payment services. Cards. Customer center.

2.3 PRODUCTS AND SERVICES AT A GLANCE 1. PERSONAL BANKING A. Accounts & Deposits - Regular Savings Account - Savings Plus Account - SavingsMax Account - Senior Citizens Account - No Frills Account - Institutional Savings Account - Payroll Salary Account - Classic Salary Account - Regular Salary Account - Premium Salary Account - Defence Salary Account - Kid's Advantage Account - Pension Saving Bank Account - Family Savings Account - Kisan No Frills Savings Account - Kisan Club Savings Account - Plus Current Account - Trade Current Account - Premium Current Account - Regular Current Account - Apex Current Account

- Max Current Account - Reimbursement Current Account - RFC - Domestic Account - Regular Fixed Deposit - Super Saver Account - Sweep-in Account - HDFC Bank Preferred - Private Banking

B. Loans - Personal Loans - Home Loans - Two Wheeler Loans - New Car Loans - Used Car Loans - Overdraft against Car - Express Loans - Loan against Securities - Loan against Property - Commercial Vehicle Finance - Working Capital Finance - Construction Equipment Finance - Offers & Deals - Customer Center

C. INVESTMENTS & INSURANCE - Mutual Funds - Insurance - Bonds - Financial Planning - Knowledge Centre - Equities & Derivatives - Mudra Gold Bar

D. FOREX SERVICES - Trade Finance - Travelers Cheques - Foreign Currency Cash - Foreign Currency Drafts - Foreign Currency Cheque Deposits - Foreign Currency Remittances - Cash To Master - ForexPlus Card

E. PAYMENT SERVICES - Net Safe - Prepaid Refill - Bill Pay - Direct Pay - Visa Money Transfer

E. ACCESS YOUR BANK - One View - Insta Alerts - Mobile Banking - ATM - Phone Banking - Branch Network

F. Cards - Silver Credit Card - Gold Credit Card - Woman's Gold Credit Card - Platinum plus Credit Card - Titanium Credit Card - Value plus Credit Card - Health plus Credit Card

- HDFC Bank Idea Silver Card - HDFC Bank Idea Gold Card - Compare Cards - Transfer & Safe - Track your Credit Card

G. GET MORE FROM YOUR CARD - Offers & Savings - My Rewards - InstaWonderz - Add-On Cards - Credit Card Usage Guide - Easy EMI - Net safe - Smart Pay - Secure Plus - My City Benefit Card - Debit Cards - Easy Shop International Debit - Easy Shop Gold Debit Card - Easy Shop International Business - Easy Shop Woman's Advantage - Prepaid Cards Debit Card Debit Card Card

- Forex Plus Card - Kisan Card

I. Customer Centre - Offers & Deals - Winners of Contests & Promotions

2. WHOLESALE BANKING A. Corporate Funded Services Non Funded Services Value Added Services Internet Banking

B. Small & Medium Enterprises Funded Services Non-Funded Services Specialized Services Internet Banking C. Financial Institutions & Trusts Banks Financial Institutions Mutual Funds Stock Brokers

INTRODUCTION: E-BANKING

Electronic banking, also known as electronic funds transfer (EFT), is simply the use of electronic means to transfer funds directly from one account to another, rather than by cheque or cash. You can use electronic funds transfer to:

Withdraw money from your checking account from an ATM machine with a personal identification number (PIN), at your convenience, day or night. Instruct your bank or credit union to automatically pay certain monthly bills from your account, such as your auto loan or your mortgage payment. Have the bank or credit union transfer funds each month from your checking account to your mutual fund account. Buy groceries, gasoline and other purchases at the point-of-sale, using a check card rather than cash, credit or a personal check. Use a smart card with a prepaid amount of money embedded in it for use instead of cash at a pay phone, expressway road toll, or on college campuses at the library's photocopy machine or bookstores. Use your computer and personal finance software to coordinate your total personal financial management process, integrating data and activities related to your income, spending, saving, investing, recordkeeping, bill-paying and taxes, along with basic financial analysis and decision making. 1 Industry profile Banking sector in india Growth over the years Oppurtuinites and threts Markets shatre Major players Govt policy

Future growth in theis sector Business profile Company profile

Banking sector in India

Banks are now the most significant players in the Indian financial market. They are the biggest purveyors of credit, and they also attract most of the savings from the population. The Indian banking can be broadly categorized into nationalized (government owned), private banks and specialized banking institutions. The Reserve Bank of India acts a centralized body monitoring any discrepancies and shortcoming in the system. The need to become highly customer focused has forced the slowmoving public sector banks to adopt a fast track approach. The unleashing of products and services through the net has galvanized players at all levels of the banking and financial institutions market grid to look anew at their existing portfolio offering. Driven by the socialist ideologies and the welfare state concept, public sector banks have long been the supporters of agriculture and other priority sectors. They act as crucial channels of the government in its efforts to ensure equitable economic development.

The liberalize policy of Government of India permitted entry to private sector in the banking, the industry has witnessed the entry of nine new generation private banks. The major differentiating parameter that

distinguishes these banks from all the other banks in the Indian banking is the level of service that is offered to the customer. Their focus has always centred around the customer understanding his needs, pre-empting him and consequently delighting him with various configurations of benefits and a wide portfolio of products and services. These banks have generally been established by promoters of repute or by high value domestic financial institutions. Today, the private banks corner almost 4% share of the total share of deposits

Chapter 3 TYPES OF BANKS

There are various types of banks which operate in our country to meet the financial requirements of different categories of people engaged in agriculture, business, profession, etc. On the basis of functions, the banking institutions in India may be divided into the following types:

Types of Banks a) b) c) d) Central Bank (RBI, in India) Development Banks Specialized Banks (EXIM Bank, SIDBI, NABARD) Commercial Banks (i) (ii) e) Public Sector Banks Private Sector Banks

Co-operative Banks (i) (ii) Central Co-operative Banks State Co-operative Banks

Now let us learn about each of these banks in detail.

a) Central Bank A bank which is entrusted with the functions of guiding and regulating the banking system of a country is known as its Central bank. Such a bank does not deal with the general public. It acts essentially as Governments banker; maintain deposit accounts of all other banks and advances money to other banks, when needed. The Central Bank provides guidance to other banks whenever they face any problem. It is therefore known as the bankers bank. The Reserve Bank of India is the central bank of our country. The Central Bank maintains record of Government revenue and expenditure under various heads. It also advises the Government on monetary and credit policies and decides on the interest rates for bank deposits and bank

loans. In addition, foreign exchange rates are also determined by the central bank. Another important function of the Central Bank is the issuance of currency notes, regulating their circulation in the country by different methods. No other bank than the Central Bank can issue currency.

b) Commercial Banks Commercial Banks are banking institutions that accept deposits and grant short-term loans and advances to their customers. In addition to giving shortterm loans, commercial banks also give medium-term and long-term loan to business enterprises. Now-a-days some of the commercial banks are also providing housing loan on a long-term basis to individuals. There are also many other functions of commercial banks, which are discussed later in this lesson.

Types of Commercial banks: Commercial banks are of three types i.e., Public sector banks, Private sector banks and Foreign banks.

(i)

Public Sector Banks: These are banks where majority stake is held by

the Government of India or Reserve Bank of India. Examples of public sector banks are: State Bank of India, Corporation Bank, Bank of Baroda and Dena Bank, etc.

(ii)

Private Sectors Banks: In case of private sector banks majority of share

capital of the bank is held by private individuals. These banks are registered as companies with limited liability. For example: The Jammu and Kashmir Bank Ltd., Bank of Rajasthan Ltd, Development Credit Bank Ltd, Lord Krishna Bank Ltd., Bharat Overseas Bank Ltd, Global Trust Bank, Vysya Bank, etc.

(iii)

Foreign Banks: These banks are registered and have their headquarters

in a foreign country but operate their branches in our country. Some of the foreign banks operating in our country are Hong Kong and Shanghai Banking Corporation (HSBC), Citibank, American Express Bank, Standard & Chartered Bank, Grindlays Bank, etc. The number of foreign banks operating in our country has increased since the financial sector reforms of 1991.

c) Development Banks
Business often requires medium and long-term capital for purchase of machinery and equipment, for using latest technology, or for expansion and modernization. Such financial assistance is provided by Development Banks. They also undertake other development measures like subscribing to the shares and debentures issued by companies, in case of under subscription of the issue by the public. Industrial Finance Corporation of India (IFCI) and State Financial Corporations (SFCs) are examples of development banks in India.

d) Co-operative Banks
People who come together to jointly serve their common interest often form a co-operative society under the Co-operative Societies Act. When a cooperative society engages itself in banking business it is called a Co-operative Bank. The society has to obtain a license from the Reserve Bank of India before starting banking business. Any co-operative bank as a society is to function under the overall supervision of the Registrar, Co-operative Societies of the State. As regards banking business, the society must follow the guidelines set and issued by the Reserve Bank of India.

Types of Co-operative Banks There are three types of co-operative banks operating in our country. They are primary credit societies, central co-operative banks and state co-operative banks. These banks are organized at three levels, village or town level, district level and state level. (i) Primary Credit Societies: These are formed at the village or town level

with borrower and non-borrower members residing in one locality. The operations of each society are restricted to a small area so that the members know each other and are able to watch over the activities of all members to prevent frauds.

(ii)

Central Co-operative Banks: These banks operate at the district level

having some of the primary credit societies belonging to the same district as their members. These banks provide loans to their members (i.e., primary credit societies) and function as a link between the primary credit societies and state co-operative banks.

(iii)

State Co-operative Banks: These are the apex (highest level) co-

operative banks in all the states of the country. They mobilize funds and help in its proper channelization among various sectors. The money reaches the individual borrowers from the state co-operative banks through the central cooperative banks and the primary credit societies.

e) Specialized Banks
There are some banks, which cater to the requirements and provide overall support for setting up business in specific areas of activity. EXIM Bank,

SIDBI and NABARD are examples of such banks. They engage themselves in some specific area or activity and thus, are called specialized banks.

(i)

Export Import Bank of India (EXIM Bank): If you want to set up a business for exporting products abroad or

importing products from foreign countries for sale in our country, EXIM bank can provide you the required support and assistance. The bank grants loans to exporters and importers and also provides information about the international market. It gives guidance about the opportunities for export or import, the risks involved in it and the competition to be faced, etc.

(ii)

Small Industries Development Bank of India (SIDBI): If you want to establish a small-scale business unit or industry, loan on

easy terms can be available through SIDBI. It also finances modernization of small-scale industrial units, use of new technology and market

activities. The aim and focus of SIDBI is to promote, finance and develop small-scale industries.

(iii)

National Bank for Agricultural and Rural Development (NABARD):

It is a central or apex institution for financing agricultural and rural sectors. If a person is engaged in agriculture or other activities like handloom weaving, fishing, etc. NABARD can provide credit, both short-term and long-term, through regional rural banks. It provides financial assistance, especially, to co-

operative credit, in the field of agriculture, small-scale industries, cottage and village industries handicrafts and allied economic activities in rural areas. . COMPANY HISTORY 3.1FORMATION OF THE COMPANY The Housing Development Finance Corporation Limited (HDFC) was amongst the first to receive an 'in principle' approval from the Reserve Bank of India (RBI) to set up a bank in the private sector, as part of the RBI's liberalization of the Indian Banking Industry in 1994. The bank was incorporated in August 1994 in the name of 'HDFC Bank Limited', with its registered office in Mumbai, India. HDFC Bank commenced operations as a Scheduled Commercial Bank in January 1995.

PROMOTER HDFC is India's premier housing finance company and enjoys an impeccable track record in India as well as in international markets. Since its inception in 1977, the Corporation has maintained a consistent and healthy growth in its operations to remain the market leader in mortgages. Its outstanding loan portfolio covers well over a million dwelling units. HDFC has developed significant expertise in retail mortgage loans to different market segments and also has a large corporate client base for its housing related credit facilities. With its experience in the financial markets, a strong market reputation, large shareholder base and unique consumer franchise, HDFC was ideally positioned to promote a bank in the Indian environment.

BUSINESS FOCUS HDFC Bank's mission is to be a World-Class Indian Bank. The objective is to build sound customer franchises across distinct businesses so as to be the preferred provider of banking services for target retail and wholesale customer segments, and to achieve healthy growth in profitability, consistent with the bank's risk appetite. The bank is committed to maintain the highest level of ethical standards, professional integrity, corporate governance and regulatory compliance. HDFC Bank's business philosophy is based on four core values - Operational Excellence, Customer Focus, Product Leadership and People.

CAPITAL STRUCTURE The authorized capital of HDFC Bank is Rs550 crore (Rs5.5 billion). The paid-up capital is Rs424.6 crore (Rs.4.2 billion). The HDFC Group holds 19.4% of the bank's equity and about 17.6% of the equity is held by the ADS Depository (in respect of the bank's American Depository Shares (ADS) Issue). Roughly 28% of the equity is held by Foreign Institutional Investors (FIIs) and the bank has about 570,000 shareholders. The shares are listed on the Stock Exchange, Mumbai and the National Stock Exchange. The bank's American Depository Shares are listed on the New York Stock Exchange (NYSE) under the symbol 'HDB'.

TIMES BANK AMALGAMATION In a milestone transaction in the Indian banking industry, Times Bank Limited (another new private sector bank promoted by Bennett, Coleman & Co./Times Group) was merged with HDFC Bank Ltd., effective February 26, 2000. As per the scheme of amalgamation approved by the shareholders of both banks and the Reserve Bank of India, shareholders of Times Bank received 1 share of HDFC Bank for every 5.75 shares of Times Bank. The acquisition added significant value to HDFC Bank in terms of increased branch network, expanded geographic reach, enhanced customer base, skilled manpower and the opportunity to cross-sell and leverage alternative delivery channels.

DISTRIBUTION NETWORK HDFC Bank is headquartered in Mumbai. The Bank at present has an enviable network of over 1229 branches spread over 444 cities across India. All branches are linked on an online real-time basis. Customers in over 120 locations are also serviced through Telephone Banking. The Bank's expansion plans take into account the need to have a presence in all major industrial and commercial centers where its corporate customers are located as well as the need to build a strong retail customer base for both deposits and loan products. Being a clearing/settlement bank to various leading stock exchanges, the Bank has branches in the centers where the NSE/BSE has a strong and active member base. The Bank also has a network of about over 2526 networked ATMs across these cities. Moreover, HDFC Bank's ATM network can be accessed by all domestic and

international Visa/MasterCard, Visa Electron/Maestro, Plus/Cirrus and American Express Credit/Charge cardholders.

TECHNOLOGY HDFC Bank operates in a highly automated environment in terms of information technology and communication systems. All the bank's branches have online connectivity, which enables the bank to offer speedy funds transfer facilities to its customers. Multi-branch access is also provided to retail customers through the branch network and Automated Teller Machines (ATMs). The Bank has made substantial efforts and investments in acquiring the best technology available internationally, to build the infrastructure for a world class bank. The Bank's business is supported by scalable and robust systems which ensure that our clients always get the finest services we offer. The Bank has prioritized its engagement in technology and the internet as one of its key goals and has already made significant progress in web-enabling its core businesses. In each of its businesses, the Bank has succeeded in leveraging its market position, expertise and technology to create a competitive advantage and build market share.

BUSINESS FOCUS HDFC Bank's mission is to be a World-Class Indian Bank. The objective is to build sound customer franchises across distinct businesses so as to be the preferred provider of banking services for target retail and wholesale customer segments, and to achieve healthy growth in profitability, consistent with the bank's risk appetite. The bank is committed to maintain the highest level of ethical standards, professional integrity, corporate governance and regulatory compliance. HDFC Bank's business philosophy is based on four core values - Operational Excellence, Customer Focus, Product Leadership and People.

 RATING III. Credit Rating The Bank has its deposit programs rated by two rating agencies - Credit Analysis & Research Limited (CARE) and Fitch Ratings India Private Limited. The Bank's Fixed Deposit programme has been rated 'CARE AAA (FD)' [Triple A] by CARE, which represents instruments considered to be "of the best quality, carrying negligible investment risk". CARE has also rated the bank's Certificate of Deposit (CD) programme "PR 1+" which represents "superior capacity for repayment of short term promissory obligations". Fitch Ratings India Pvt. Ltd. (100% subsidiary of Fitch Inc.) has assigned the "tAAA( ind )" rating to the Bank's deposit programme, with the outlook on the rating as "stable". This rating indicates "highest credit quality" where "protection factors are very high". The Bank also has its long term unsecured, subordinated (Tier II) Bonds rated by CARE and Fitch Ratings India Private Limited and its Tier I perpetual Bonds and Upper Tier II Bonds rated by CARE and CRISIL Ltd. CARE has assigned the rating of "CARE AAA" for the subordinated Tier II Bonds while Fitch Ratings India Pvt. Ltd. has assigned the rating "AAA (ind)" with the outlook on the rating as "stable". CARE has also assigned "CARE AAA [Triple A]" for the Banks Perpetual bond and Upper Tier II bond issues. CRISIL has assigned the rating "AAA / Stable" for the Bank's Perpetual Debt programme and Upper Tier II Bond issue. In each of the cases referred to above, the ratings awarded were the highest assigned by the rating agency for those instruments. IV. Corporate Governance Rating

The bank was one of the first four companies, which subjected itself to a Corporate Governance and Value Creation (GVC) rating by the rating agency, The Credit Rating Information Services of India Limited (CRISIL). The rating provides an independent assessment of an entity's current performance and an expectation on its "balanced value creation and corporate governance practices" in future. The bank has been assigned a 'CRISIL GVC Level 1' rating which indicates that the bank's capability with respect to wealth creation for all its stakeholders while adopting sound corporate governance practices is the highest.

2.2 PRODUCT SCOPE: HDFC Bank offers a bunch of products and services to meet the every need of the people. The company cares for both, individuals as well as corporate and small and medium enterprises. For individuals, the company has a range accounts, investment, and pension scheme, different types of loans and cards that assist the customers. The customers can choose the suitable one from a range of products which will suit their life-stage and needs. For organizations the company has a host of customized solutions that range from Funded services, Non-funded services, Value addition services, Mutual fund etc. These affordable plans apart from providing long term value to the employees help in enhancing goodwill of the company. The products of the company are categorized into various sections which are as follows: Accounts and deposits. Loans. Investments and Insurance. Forex and payment services. Cards. Customer center.

VARIOUS FORMS OF E-BANKING:

A. INTERNET BANKING:

Internet Banking lets you handle many banking transactions via your personal computer. For instance, you may use your computer to view your account balance, request transfers between accounts, and pay bills electronically. Internet banking system and method in which a personal computer is connected by a network service provider directly to a host computer system of a bank such that customer service requests can be processed automatically without need for intervention by customer service representatives. The system is capable of distinguishing between those customer service requests which are capable of automated fulfillment and those requests which require handling by a customer service representative. The system is integrated with the host computer system of the bank so that the remote banking customer can access other automated services of the bank. The method of the invention includes the steps of inputting a customer banking request from among a menu of banking requests at a remote personnel computer; transmitting the banking requests to a host computer over a network; receiving the request at the host computer; identifying the type of customer banking request received; automatic logging of the service request, comparing the received request to a stored table of request types, each of the request types having an attribute to indicate whether the request type is capable of being fulfilled by a customer service representative or by an automated system; and, depending upon the attribute, directing the request either to a queue for handling by a customer service representative or to a queue for processing by an automated system.

B. AUTOMATED TELLER MACHINES (ATM):

An automated teller machine or automatic teller machine (ATM) is an electronic computerized telecommunications device that allows a financial institution's customers to directly use a secure method of communication to access their bank accounts, order or make cash withdrawals and check their account balances without the need for a human bank teller. Many ATMs also allow people to deposit cash or cheques, transfer money between their bank accounts, top up their mobile phones' pre-paid accounts or even buy postage stamps. On most modern ATMs, the customer identifies him or herself by inserting a plastic card with a magnetic stripe or a plastic smartcard with a chip, which contains his or her account number. The customer then verifies their identity by entering a pass code, often

referred to as a PIN (Personal Identification Number) of four or more digits. Upon successful entry of the PIN, the customer may perform a transaction. The Indian market today has approximately more than 17,000 ATMs.

C. CREDIT CARDS/ DEBIT CARDS:

The Credit Card holder is empowered to spend wherever and whenever he wants with his Credit Card within the limits fixed by his bank. Credit Card is a post paid card. Debit Card, on the other hand, is a prepaid card with some stored value. Every time a person uses this card, the Internet Banking house gets money transferred to its account from the bank of the buyer. The buyers account is debited with the exact amount of purchases. An individual has to open an account with the issuing bank which gives debit card with a Personal Identification Number (PIN). When he makes a purchase, he enters his PIN on shops PIN pad. When the card is slurped through the electronic terminal, it dials the acquiring bank system - either Master Card or VISA that validates the PIN and finds out from the issuing bank whether to accept or decline the transactions. The customer can never overspend because the system rejects any transaction which exceeds the balance in his account.

D. TELE BANKING:

Undertaking a host of banking related services including financial transactions from the convenience of customers chosen place anywhere across the GLOBE and any time of date and night has now been made possible by introducing on-line Telebanking services. By dialing the given Telebanking number through a landline or a mobile from anywhere, the customer can access his account and by following the user-friendly menu, entire banking can be done through Interactive Voice Response (IVR) system. With sufficient numbers of hunting lines made available, customer call will hardly fail. The system is bilingual and has following facilities offered Balance inquiry and transaction inquiry in all Inquiry of all term deposit account Statement of account by Fax, e-mail or ordinary mail. Cheque book request

Stop payment which is on-line and instantaneous Transfer of funds with CBS which is automatic and instantaneous Utility Bill Payments Renewal of term deposit which is automatic and instantaneous

E. SMART CARD:

Banks are adding chips to their current magnetic stripe cards to enhance security and offer new service, called Smart Cards. Smart Cards allow thousands of times of information storable on magnetic stripe cards. In addition, these cards are highly secure, more reliable and perform multiple functions. They hold a large amount of personal information, from medical and health history to personal banking and personal preferences

F. E-CHEQUE:

An e-Cheque is the electronic version or representation of paper cheque.

It can now be used in place of paper cheques to do any and all remote transactions. An E-cheque work the same way a cheque does, the cheque writer "writes" the eCheque using one of many types of electronic devices and "gives" the e-Cheque to the payee electronically. The payee "deposits" the Electronic Cheque receives credit, and the payee's bank "clears" the e-Cheque to the paying bank. The paying bank validates the e-Cheque and then "charges" the check writer's account for the check

G. MOBILE BANKING :

Mobile banking is a term used for performing balance checks, account transactions, payments, credit applications and other banking transactions through a mobile device such as a mobile or Personal Digital Assistant . The earliest mobile banking services were offered over SMS. With the introduction of the first primitive smart phones with WAP support enabling the use of the mobile web in 1999, the first European banks started to offer mobile banking on this platform to their customers.

We can avail the following services through E-Banking: Bill payment service You can facilitate payment of electricity and telephone bills, mobile phone, credit card and insurance premium bills as each bank has tie-ups with various utility companies, service providers and insurance companies, across the country. To pay your bills, all you need to do is complete a simple one-time registration for each biller. You can also set up standing instructions online to pay your recurring bills, automatically. Generally, the bank does not charge customers for online bill payment.

Fund transfer You can transfer any amount from one account to another of the same or any another bank. Customers can send money anywhere in India. Once you login to your account, you need to mention the payees's account number, his bank and the branch. The transfer will take place in a day or so, whereas in a traditional method, it takes about three working days Credit card customers With Internet banking, customers can not only pay their credit card bills online but also get a loan on their cards. If you lose your credit card, you can report lost card online.

Investing through Internet Banking Now investors with interlinked demat account and bank account can easily trade in the

stock market and the amount will be automatically debited from their respective bank accounts and the shares will be credited in their demat account. Moreover, some banks even give you the facility to purchase mutual funds directly from the online banking system. Recharging your prepaid phone Now just top-up your prepaid mobile cards by logging in to Internet banking. By just selecting your operator's name, entering your mobile number and the amount for recharge, your phone is again back in action within few minutes. Shopping With a range of all kind of products, you can shop online and the payment is also made conveniently through your account. You can also buy railway and air tickets through Internet banking.

ADVANTAGE OF INTERNET BANKING As per the Internet and Mobile Association of India's report on online banking 2006, "There are many advantages of online banking. It is convenient, it isn't bound by operational timings, there are no geographical barriers and the services can be offered at a very low cost." Through Internet banking, you can check your transactions at any time of the day, and as many times as you want to. Where in a traditional method, you get quarterly statements from the bank. If the fund transfer has to be made outstation, where the bank does not have a branch, the bank would demand outstation charges. Whereas with the help of online banking, it will be absolutely free for you.

Security Precautions Customers should never share personal information like PIN numbers, passwords etc with anyone, including employees of the bank. It is important that documents that contain confidential information are safeguarded. PIN or password mailers should not be stored, the PIN and/or passwords should be changed immediately and memorised before destroying the mailers. Customers are advised not to provide sensitive account-related information over unsecured e-mails or over the phone. Take simple precautions like changing the ATM PIN and online login and transaction passwords on a regular basis. Also ensure that the logged in session is properly signed out.

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 3.Smart Card 4.ATM Card 1. Credit Cards: The Credit Card is a post paid card. 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 etc.

2. Debit Cards: -

A Debit Card, on the other hand, is a prepaid card with some stored value. Every time a person uses this card, the Internet Banking house gets money transferred to its account from the bank of the buyer. The buyers account is debited with the exact amount of purchases. 3. Smart Cards: 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. 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.

Role of customer when using e-banking

You can access Internet Banking 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 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 HDFC.COM Logout of HDFC.COM before moving on to other Websites. Before leaving the PC please "close" the browser. Do not write your HDFC.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 present your HDFC.COM login name and password to anyone (no

representative of HDFC BANK will ever ask you for your HDFC.COM password).

Notify HDFC 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.

Features offered by HDFC 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 Lock / activate debit cards /ATM Request a cheque book Stop payment