CHAPTER - 1 INTRODUCTION
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CONTENT
SR. NO.
1.1 1.2 1.3 1.4
PARTICULARS
INTERNET BANKING IN SHORT OBJECTIVES OF PROJECT RESEARCH METHODOLOGY LIMITATIONS OF PROJECT
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1.1 Internet Banking In Short: Internet banking means any user with a personal computer and a browser can get connected to his banks website to perform any of the virtual banking functions: Balance enquiry. Transfer of funds. Online payment of bills. Accrued interest, fees and taxes. Transaction details of each account. Accounts, credit card & home loan balances. Transfer funds to third party accounts you nominate. Open a deposit right from the terminal you are sitting at.
1.2 Objectives of Project:1- The primary objective of the project is to study the awareness of internet banking
in India. 2- To know what facilities peoples use in internet banking. 3- To know the purpose to use internet banking. 4- To know what is the reason behind not using internet banking.
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1.3- Research Methodology :Sources of Data: Collection of data :Sample size :Analysis method :Primary data with the help of questionnaire, Survey through questionnaire 125 Charts and graphs
1.4 Limitation Of Project:1- The survey is conducted in the Textile Market area in the city.
2- The age group is considering for the survey is between 30-50 years old. 3- banks were considered only those which are located in the survey area.
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CONTENT
SR. NO.
2.1 2.2 2.3 2.4 2.5 2.6 2.7 2.8 2.9
PARTICULARS
INTRODUCTION COLONIAL ERA POST INDEPENDENCE NATIONALISED IN 1960S LIBERALISATION IN 1990S CURRENT PERIOD BANKS IN INDIA RESERVE BANK OF INDIA FUNCTION OF RBI
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2.1 Introduction :Banking in India in the modern sense originated in the last decades of the 18th century. The first banks were Bank of Hindustan (1770-1829) and The General Bank of India, established 1786 and since defunct. The largest bank, and the oldest still in existence, is the State Bank of India, which originated in the Bank of Calcutta in June 1806, which almost immediately became the Bank of Bengal. This was one of the three presidency banks, the other two being the Bank of Bombay and the Bank of Madras, all three of which were established under charters from the British East India Company. The three banks merged in 1921 to form the Imperial Bank of India, which, upon India's independence, became the State Bank of India in 1955. For many years the presidency banks acted as quasi-central banks, as did their successors, until the Reserve Bank of India was established in 1935. In 1969 the Indian government nationalised all the major banks that it did not already own and these have remained under government ownership. They are run under a structure know as 'profit-making public sector undertaking' (PSU) and are allowed to compete and operate as commercial banks. The Indian banking sector is made up of four types of banks, as well as the PSUs and the state banks, they have been joined since the 1990s by new private commercial banks and a number of foreign banks. Banking in India was generally fairly mature in terms of supply, product range and reach-even though reach in rural India and to the poor still remains a challenge. The government has developed initiatives to address this through the State bank of India expanding its branch network and through the National Bank for Agriculture and Rural Development with things like microfinance.
2.2Colonial era:During the period of British rule merchants established the Union Bank of Calcutta in 1829, first as a private joint stock association, then partnership. Its proprietors were the owners of the earlier Commercial Bank and the Calcutta Bank, who by mutual consent created Union Bank to replace these two banks. In 1840 it established an agency at Singapore, and closed the one at Mirzapore that it had opened in the previous year. Also in 1840 the Bank revealed that it had been the subject of a fraud by the bank's accountant. Union Bank was incorporated in 1845 but failed in 1848, having been insolvent for some time and having used new money from depositors to pay its dividends. The Allahabad Bank, established in 1865 and still functioning today, is the oldest Joint Stock bank in India, it was not the first though. That honour belongs to the Bank of
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2.3 Post-Independence:The partition of India in 1947 adversely impacted the economies of Punjab and West Bengal, paralysing banking activities for months. India's independence marked the end of a regime of the Laissez-faire for the Indian banking. The Government of India initiated measures to play an active role in the economic life of the nation, and the Industrial Policy Resolution adopted by the government in 1948 envisaged a mixed economy. This resulted into greater involvement of the state in different segments of the economy including banking and finance. The major steps to regulate banking included:
The Reserve Bank of India, India's central banking authority, was established in April 1935, but was nationalised on 1 January 1949 under the terms of the Reserve Bank of India (Transfer to Public Ownership) Act, 1948 (RBI, 2005b). In 1949, the Banking Regulation Act was enacted which empowered the Reserve Bank of India (RBI) "to regulate, control, and inspect the banks in India". The Banking Regulation Act also provided that no new bank or branch of an existing bank could be opened without a license from the RBI, and no two banks could have common directors.
2.4 Nationalization in the 1960s:Despite the provisions, control and regulations of the Reserve Bank of India, banks in India except the State Bank of India or SBI, continued to be owned and operated by private persons. By the 1960s, the Indian banking industry had become an important tool to facilitate the development of the Indian economy. At the same time, it had emerged as a large employer, and a debate had ensued about the nationalization of the banking industry. Indira Gandhi, the then Prime Minister of India, expressed the intention of the Government of India in the annual conference of the All India Congress Meeting in a paper entitled "Stray thoughts on Bank Nationalization." The meeting received the paper with enthusiasm. Thereafter, her move was swift and sudden. The Government of India issued an ordinance ('Banking Companies (Acquisition and Transfer of Undertakings) Ordinance, 1969') and nationalised the 14 largest commercial banks with effect from the midnight of 19 July 1969. These banks contained 85 percent of bank deposits in the country. Jayaprakash Narayan, a national leader of India, described the step as a "masterstroke
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2.5 Liberalization in the 1990s:In the early 1990s, the then government embarked on a policy of liberalization, licensing a small number of private banks. These came to be known as New Generation techsavvy banks, and included Global Trust Bank (the first of such new generation banks to be set up), which later amalgamated with Oriental Bank of Commerce, UTI Bank (since renamed Axis Bank), ICICI Bank and HDFC Bank. This move, along with the rapid growth in the economy of India, revitalized the banking sector in India, which has seen rapid growth with strong contribution from all the three sectors of banks, namely, government banks, private banks and foreign banks. The next stage for the Indian banking has been set up with the proposed relaxation in the norms for Foreign Direct Investment, where all Foreign Investors in banks may be given voting rights which could exceed the present cap of 10% at present it has gone up to 74% with some restrictions. The new policy shook the Banking sector in India completely. Bankers, till this time, were used to the 464 method (Borrow at 4%; Lend at 6%; Go home at 4) of functioning. The new wave ushered in a modern outlook and tech-savvy methods of working for traditional banks. All this led to the retail boom in India. People not just demanded more from their banks but also received more.
2.6 Current period:By 2010, banking in India was generally fairly mature in terms of supply, product range and reach-even though reach in rural India still remains a challenge for the private sector and foreign banks. In terms of quality of assets and capital adequacy, Indian banks are considered to have clean, strong and transparent balance sheets relative to other banks in comparable economies in its region. The Reserve Bank of India is an autonomous body, with minimal pressure from the government.
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2.7 Banks in India:In India, banks are segregated in different groups. Each group has its own benefits and limitations in operations. Each has its own dedicated target market. A few of them work in the rural sector only while others in both rural as well as urban. Many banks are catering in cities only. Some banks are of Indian origin and some are foreign players.Banks in India can be classified into:
Public Sector Banks Private Sector Banks Cooperative Banks Regional Rural Banks Foreign Banks
One aspect to be noted is the increasing number of foreign banks in India. The RBI has shown certain interest to involve more foreign banks. This step has paved the way for a few more foreign banks to start business in India.
2.8 Reserve Bank of India (RBI):The central bank of the country is the Reserve Bank of India (RBI). It was established in April 1935 with a share capital of Rs 5 crore on the basis of the recommendations of the Hilton Young Commission. The share capital was divided into fully paid shares of Rs 100 each, which was entirely owned by private shareholders in the beginning. The government held shares of nominal value of Rs 220,000.
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Regulate the issue of currency notes Maintain reserves with a view to securing monetary stability Operate the credit and currency system of the country to its advantage
2.9Functions of the RBI:The Reserve Bank of India Act of 1934 entrusts all the important functions of a central bank with the Reserve Bank of India. Bank of Issue Banker to the Government Bankers' Bank and Lender of the Last Resort Controller of Credit Custodian of Foreign Reserves Supervisory Functions
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CHAPTER 3
INTERNET BANKING AN OVERVIEW
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CONTENT
SR.NO.
3.1 3.2 3.3 3.4 3.5 3.6 3.7
PARTICULARS
INTRODUCTION EVOLUTION OF INTERNET BANKING INTERNET BANKING SECURITY ADVANTAGES OF INTERNET BANKING DISADVANTAGES OF INTERNET BANKING FEATURES OF INTERNET BANKING TYPES OF RISKS
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3.2 The evolution of Internet Banking :The ancestor for the contemporary home online banking products and services were the distance banking products and services over electronic media from early 1980s. The term online became popular in the beginning of 1990s and referred to the use of a terminal, keyboard and TV (or monitor) to access the banking system using a phone line. Online services started in New York in 1981 when four of the city's major banks (Citibank, Chase Manhattan, Chemical and Manufacturers Hanover) offered home banking services using the videotext system (Cronin, 1997). Because of the commercial failure of videotext these banking services never became popular except in France where the use of videotext (Minitel) was subsidized by the telecom provider and the UK, where the Prestel system was used. Today, many banks are internet only banks. Unlike their predecessors, these internet only banks do not maintain brick and mortar bank branches. Instead, they typically differentiate themselves by offering better interest rates and online banking features. In Europe, adoption rates of internet banking usage decreases from north to south and from rich to poor. According to a research report from Deutsche Bank, GDP per capita and latitude explain statistically around 80 per cent of the variation in Europe, as suggested by linear regression analysis, and the European average (EU-25, 36%) is below the USA average (44%) (February, 2006). Internet banking grows usually, but not always at the expense of branch visits. Bank customers in Europe increased their use of internet banking while Europeans do not discriminate between internet banking and e-commerce. By saying this, there is a tendency that those who shop online are also more willing to bank online with Nordic countries to be more responsive to internet banking than their share of online shoppers would suggest while Germans and British exhibit a more reserved and constant attitude towards online banking (Deutsche Bank Research Report, 2006). Moreover, the same research report from Deutsche Bank states that the share of internet bankers does not decrease with age. In the opposite, internet usage declines with age but relative to internet users as a whole, the share of internet bankers in the EU is constant for those over 24 years, e.g., out of those who use the internet, around
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3.3 Internet Banking Security :Internet banking is a new specific banking area, part of e-banking industry, which allows people to interact with their banking accounts virtually from anywhere in the world. Internet banking addresses few emerging trends such as customer demand for anytime, anywhere services, product time to market essentials, and increasingly complex backoffice integration challenges. One such challenge is the security of online financial transactions. In order for the industry to develop further, secure transactions with the trust of the customers are necessary aspects. Many banks advertise secure online services, and allow their customers to do a wide range of banking activities. Some of the security features in internet banking usage include:
Attacks:- Most of attacks in internet banking are based on deceiving the user to steal
login data and valid TANs. Two well known examples for those attacks are phishing and pharming. Cross-site scripting and keylogger/trojan horses can also be used to steal login information. A method to attack signature based internet banking methods is to manipulate the used software in a way, that correct transactions are shown on the screen and faked transactions are signed in the background. A recent FDIC Technology Incident Report, generated form security risk activities reports that banks record quarterly, lists 536 cases of computer intrusion with an average loss per incident of $30,000. That adds up to nearly $16 million loss in the second quarter of 2007.
3.4 Advantages of Internet Banking:Many banks have begun to offer customers the option of online-internet banking, a practice that has advantages for both all parties involved. The convenience of being able to access accounts at any time as well as the ability to perform transactions without visiting a local branch, draw many people to be involved. Some of these advantages of internet banking but are not limited to, include:
Customers convenience :- Direct banks are open for business anywhere there is
an internet connection. They are also 24 hours a day, 365 days a year open while if internet service is not available, customer services is normally provided around the clock via telephone. Real-time account balances and information are available at the touch of a few buttons thus, making banking faster, easier and more efficient. In addition, updating and maintaining a direct account is easy since it takes only a few minutes to change the mailing address, order additional checks and be informed for market interest rates.
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Mobility:- Internet banking also includes mobile capabilities. New applications are
continually being created to expand and improve this capability or smart-phones and other mobile devices.
Transfers:- Accounts can be automatically funded from a traditional bank account via
electronic transfer. Most direct banks offer unlimited transfers at no cost, including those destined for outside financial institutions. They will also accept direct deposits and withdrawals that the customer authorizes such as payroll deposits and automatic bill payment.
Ease of use:- Online accounts are easy to set up and require no more information
than a traditional bank account. Many offer the option of inputting the customer's data online or downloading the forms and mailing them in. If the customer runs into a problem, he has the option of calling or e-mailing the bank directly.
3.5 Disadvantages of Internet Banking:Internet banking seems like an obvious choice to leave the hassles of traditional money management behind in exchange for it. However, there are potential problems associated with banking over the internet of which customers may not be aware. Consumers need to weigh the advantages as well as the disadvantages of internet banking before signing up. Some of the disadvantages of internet banking include:
Service issues:- Some direct banks may not offer all the comprehensive financial
services such as insurance and brokerage accounts that traditional banks offer. Traditional banks sometimes offer special services to loyal customers such as preferred rates and investment advice at no extra charge. In addition, routine services such as notarization and bank signature guarantee are not available online. These services are required for many financial and legal transactions.
Security:- Direct banks are subject to the same laws and regulations as traditional
banks and accounts are protected by the FDIC. Sophisticated encryption software is designed to protect your account information but no system is perfect. Accounts may be subject to phishing, hacker attacks, malware and other unauthorised activity. Most banks now make scanned copies of cleared checks available online which helps to avoid and identify check fraud. It enables verification that all checks are signed by the customer and that dollar or euro amounts have not been changed. The timely discovery of discrepancies can be reported and investigated immediately.
3.6 Features of Internet Banking :The common features fall broadly into several categories
A bank customer can perform non-transactional tasks through online banking, including viewing account balances viewing recent transactions downloading bank statements, for example in PDF format viewing images of paid cheques ordering cheque books download periodic account statements Downloading applications for M-banking, E-banking etc.
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Bank customers can transact banking tasks through online banking, including Funds transfers between the customer's linked accounts Paying third parties, including bill payments (see, e.g., BPAY) and telegraphic/wire transfers Investment purchase or sale Loan applications and transactions, such as repayments of enrollments Register utility billers and make bill payments Financial institution administration Management of multiple users having varying levels of authority Transaction approval process the process of banking has become much faster
3.7 Types of risks associated with Internet banking :A major driving force behind the rapid spread of i-banking all over the world is its acceptance as an extremely cost effective delivery channel of banking services as compared to other existing channels. However, Internet is not an unmixed blessing to the banking sector. Along with reduction in cost of transactions, it has also brought about a new orientation to risks and even new forms of risks to which banks conducting i-banking expose themselves. Regulators and supervisors all over the world are concerned that while banks should remain efficient and cost effective, they must be conscious of different types of risks this form of banking entails and have systems in place to manage the same. An important and distinctive feature is that technology plays a significant part both as source and tool for control of risks. Because of rapid changes in information technology, there is no finality either in the types of risks or their control measures. Both evolve continuously. The thrust of regulatory action in risk control has been to identify risks in broad terms and to ensure that banks have minimum systems in place to address the same and that such systems are reviewed on a continuous basis in keeping with changes in technology. In the following paragraphs a generic set of risks are discussed as the basis for formulating general risk control guidelines, which this Group will address.
Operational risk: -Operational risk, also referred to as transactional risk is the most
common form of risk associated with i-banking. It takes the form of inaccurate processing of transactions, non enforceability of contracts, compromises in data integrity, data privacy and confidentiality, unauthorized access / intrusion to banks systems and transactions etc. Such risks can arise out of weaknesses in design, implementation and monitoring of banks information system. Besides inadequacies in technology, human factors like negligence by customers and employees, fraudulent activity of employees and crackers / hackers etc. can become potential source of
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Security risk:- Internet is a public network of computers which facilitates flow of data
/ information and to which there is unrestricted access. Banks using this medium for financial transactions must, therefore, have proper technology and systems in place to build a secured environment for such transactions. Security risk arises on account of unauthorized access to a banks critical information stores like accounting system, risk management system, portfolio management system, etc. A breach of security could result in direct financial loss to the bank. For example, hackers operating via the Internet, could access, retrieve and use confidential customer information and also can implant virus. This may result in loss of data, theft of or tampering with customer information, disabling of a significant portion of banks internal computer system thus denying service, cost of repairing these etc. Other related risks are loss of reputation, infringing customers privacy and its legal implica tions etc. Thus, access control is of paramount importance. Controlling access to banks system has become more complex in the Internet environment which is a public domain and attempts at unauthorized access could emanate from any source and from anywhere in the world with or without criminal intent. Attackers could be hackers, unscrupulous vendors, disgruntled employees or even pure thrill seekers. Also, in a networked environment the security is limited to its weakest link. It is therefore, necessary that banks critically assess all interrelated systems and have access control measures in place in each of them. In addition to external attacks banks are exposed to security risk from internal sources e.g. employee fraud. Employees being familiar with different systems and their weaknesses become potential security threats in a loosely controlled environment. They can manage to acquire the authentication data in order to access the customer accounts causing losses to the bank. Unless specifically protected, all data / information transfer over the Internet can be monitored or read by unauthorized persons. There are programs such as sniffers which can be set up at web servers or other critical locations to collect data like account numbers, passwords, account and credit card numbers. Data privacy and confidentiality issues are relevant even when data is not being transferred over the net. Data residing in web servers or even banks internal systems are susceptible to corruption if not properly isolated through firewalls from Internet. The risk of data alteration, intentionally or unintentionally, but unauthorized is real in a networked environment, both when data is being transmitted or stored. Proper access control and technological tools to ensure data integrity is of utmost importance to banks. Another important aspect is whether the systems are in place to quickly detect any such alteration and set the alert.
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Legal risk:- Legal risk arises from violation of, or non-conformance with laws, rules,
regulations, or prescribed practices, or when the legal rights and obligations of parties to a transaction are not well established. Given the relatively new nature of Internet banking, rights and obligations in some cases are uncertain and applicability of laws and rules is uncertain or ambiguous, thus causing legal risk. Other reasons for legal risks are uncertainty about the validity of some agreements formed via electronic media and law regarding customer disclosures and privacy protection. A customer, inadequately informed about his rights and obligations, may not take proper precautions in using Internet banking products or services, leading to disputed transactions, unwanted suits against the bank or other regulatory sanctions.
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Cross border risks:- Internet banking is based on technology that, by its very
nature, is designed to extend the geographic reach of banks and customers. Such market expansion can extend beyond national borders. This causes various risks. It includes legal and regulatory risks, as there may be uncertainty about legal requirements in some countries and jurisdiction ambiguities with respect to the responsibilities of different national authorities. Such considerations may expose banks to legal risks associated with non-compliance of different national laws and regulations, including consumer protection laws, record-keeping and reporting requirements, privacy rules and money laundering laws. If a bank uses a service provider located in another country, it will be more difficult to monitor it thus, causing operational risk. Also, the foreign-based service provider or foreign participants in Internet banking are sources of country risk to the extent that foreign parties become unable to fulfil their obligations due to economic, social or political factors. Cross border transaction accentuates credit risk, since it is difficult to appraise an application for a loan from a customer in another country compared to a customer from a familiar customer base. Banks accepting foreign currencies in payment for electronic money may be subjected to market risk because of movements in foreign exchange rates.
Strategic Risk:- This risk is associated with the introduction of a new product or
service. Degree of this risk depends upon how well the institution has addressed the
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Credit risk:- is the risk that a counter party will not settle an obligation for full value,
either when due or at any time thereafter. Banks may not be able to properly evaluate the credit worthiness of the customer while extending credit through remote banking procedures, which could enhance the credit risk. Presently, banks generally deal with more familiar customer base. Facility of electronic bill payment in Internet banking may cause credit risk if a third party intermediary fails to carry out its obligations with respect to payment. Proper evaluation of the creditworthiness of a customer and audit of lending process are a must to avoid such risk. Another facility of Internet banking is electronic money. It brings various types of risks associated with it. If a bank purchases e-money from an issuer in order to resell it to a customer, it exposes itself to credit risk in the event of the issuer defaulting on its obligation to redeem electronic money,.
Liquidity Risk :- arises out of a banks inability to meet its obligations when they
become due without incurring unacceptable losses, even though the bank may ultimately be able to meet its obligations. It is important for a bank engaged in electronic money transfer activities that it ensures that funds are adequate to cover redemption and settlement demands at any particular time. Failure to do so, besides exposing the bank to liquidity risk, may even give rise to legal action and reputational risk. Similarly banks dealing in electronic money face interest rate risk because of adverse movements in interest rates causing decrease in the value of assets relative to outstanding electronic money liabilities. Banks also face market risk because of losses in on-and-off balance sheet positions arising out of movements in market prices including foreign exchange rates. Banks accepting foreign currency in payment for electronic money are subject to this type of risk. Thus one can find that along with the benefits, Internet banking carries various risks for bank itself as well as banking system as a whole. The rapid pace of technological innovation is likely to keep changing the nature and scope of risks banks face. These risks must be balanced against the benefits. Supervisory and regulatory authorities are required to develop methods for identifying new risks, assessing risks, managing risks
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Respondent
Percentage
90
87.2%
13
12.4%
103
100%
Sales
YES
NO
RESPON DENT
15
18
10
2 RESULTS
44
ICICI IDBI
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Respondent
Percentage
77
85.6%
13
14.4%
100%
RESULTS
yes no
RESULTS
Interpretation: 62 percent peoples are aware about internet banking more than 12 month.
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Q.5 Have you ever accessed your account through the internet?
Result Yes No Total
77
Respondent
Percentage
29
37.7%
48
62.3%
100%
RESULTS
Interpretation: only 37 percent peoples are access their account through internet.
yes no
Q. 6 For which of the following purpose you use internet banking? (5 = always and 1= never)
Account information
xi 21 3 1 0 3
wi 1 2 3 4 5
Wixi 21 6 3 0 15
28
45
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Q. 6 For which of the following purpose you use internet banking? (5 = always and 1= never)
E-cheque
Xi 4 6 1 2 17
wi 1 2 3 4 5
Wixi 4 12 3 8 85
30
112
Q. 6 For which of the following purpose you use internet banking? (5 = always and 1= never)
Bill payment
Xi 9 10 0 1 8
wi 1 2 3 4 5
Wixi 9 20 0 4 40
28
73
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Q. 6 For which of the following purpose you use internet banking? (5 = always and 1= never)
Demate share trading
Xi 4 3 1 1 20
wi 1 2 3 4 5
Wixi 4 6 3 4 100
29
117
Q.7 How many transaction per month you have done with the help of e-banking ?
RESULTS % <2 20.7% 2-5 7 24.1% 5-10 6 20.7% >10 10 34.5% TOTAL 29 100% RESPONDENTS 6
RESULTS
<2 2 to 5
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Xi 21 4 1 1 2
wi 1 2 3 4 5
Wixi 21 8 3 4 10
29
46
Xi 0 0 0 0 29
wi 1 2 3 4 5
Wixi 0 0 0 0 145
29
145
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Xi 4 3 1 0 21
wi 1 2 3 4 5
Wixi 4 6 3 0 105
29
118
Xi 10 1 0 0 18
wi 1 2 3 4 5
Wixi 10 2 0 0 90
29
102
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Total
29
Respondent
Percentage
29
100%
100%
RESULTS
YES NO
Q. 10 Why you have not using internet banking ? (5 = always and 1= never)
Lack of awareness
Xi 41 2 0 1 3
wi 1 2 3 4 5
Wixi 41 4 0 4 15
47
64
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Q. 10 Why you have not using internet banking ? (5 = always and 1= never)
Cost efficiency
Xi 12 12 6 5 12
wi 1 2 3 4 5
Wixi 12 24 18 20 60
47
134
Q. 10 Why you have not using internet banking ? (5 = always and 1= never)
Lack of infrastructure
Xi 14 15 5 5 8
wi 1 2 3 4 5
Wixi 14 30 15 20 40
47
119
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Q. 10 Why you have not using internet banking ? (5 = always and 1= never)
Poor service
Xi 22 16 1 2 6
wi 1 2 3 4 5
Wixi 22 32 3 8 30
47
95
Q. 10 Why you have not using internet banking ? (5 = always and 1= never)
Threat of security
Xi 44 0 0 0 2
wi 1 2 3 4 5
Wixi 44 0 0 0 10
46
54
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FINDINGS
Majority of the sample surveyed are not aware about Internet banking. Some of the people access their account through internet. People use internet banking only for account information. Peoples are not using internet banking due to threat of security.
RECOMMENDATIONS
Required more security and safety measures in online banking transactions. High level security and safety should be provided. At a certain level it is very risky. Whatever peoples are not aware about e-banking spread awareness among them about it.
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CONCLUSION Internet banking in India with reference to SME, peoples does not want to use
such media of banking to do transaction. Customers require to do the transaction going into bank. Internet banking requires more steps towards the awareness of using online banking transaction among the customers. High level of security require in Internet banking.
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BIBLIOGRAPHIES
Websites: http://rbi.org.in/Scripts/PublicationReportDetails.aspx?UrlPage=&ID= 243#ch1 http://en.wikipedia.org/wiki/Banking_in_India http://www.ibef.org/industry/banking-india.aspx
Books: Iyengar, G. Vijayaragavan (2008). Introduction to banking. Excel Books. Reprint 2008. Beri, G.C. (2006). Marketing Research . Tata McGraw Hill. Reprint 2008
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ANNEXURE
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If Yes, then continue otherwise stop. Q.2 In which bank you have account? Results ICICI IDBI CBI SBI HDFC SBI PNB Stan. Others Char. Respondent
If Yes, then continue otherwise go to question No 10. Q.4 Since when you are aware about Internet banking ? Results Respondent <1 month 1-6 month 6-12 month >12 month
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Q. 6 For which of the following purpose you use internet banking? (5 = always and 1= never) Results Account information E-cheque Bill payment Demate share trading. 1 2 3 4 5
Q.7 How many transaction per month you have done with the help of Internet banking ? Results Respondent <2 2-5 5-10 >10
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Q. 10 Why you have not using internet banking ?(5 = always and 1= never) Results Lack of awareness Cost efficiency Lack of infrastructure Poor service Threat security 1 2 3 4 5
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