Project on Online Banking

Introduction
The main purpose that banks have been serving since their inception is keeping our money
safe for us. While keeping our money safe, they also let us earn a certain amount of interest
on the money deposited with them. Traditional banks have been doing this, and internet banks
continue the same function. The only difference is in the way the transactions are made.
We all know about internet banking and most of us use it quite often as well, but few of us
actually understand about the history of internet banking and how it all came out. Knowing
the history of internet banking can be incredibly useful, especially since it will allow us to
have more respect for the little things that we take for granted. Computers themselves have
really come an enormous way since their initial establishment, as the earliest electronic
computers were so large that they would take up the entire area of a room, while today some
are so small that they can hardly be seen at all.
In today's world, computers play an incredibly large role in the way the world exists in
general, and the majority of tasks could actually not be completed if not for the use of
computers. Although there are certainly some areas and jobs that cannot yet be completed
solely by computers and which thus still require actual manpower, for the most part,
computers have helped to make life significantly easier, productive, and more convenient for
us all. Internet banking has been around for quite a few years now, but has really only
become prominent over the past year or so in particular. Internet banking offers an array of
different advantages to the user, including: account balances and history including year-todate information, the ability to transfer money from one account to another and to payees for
bill payments, check history, reorders, and stop payments, check credit card balances and
statements, complete online loan applications, secure interactive messaging with staff, and
much more.

Internet banking basically allows you to be able to do everything that you can

in your regular banking institution, only with the benefit that you can do it all right from the
convenience of your own home. Not only is this great because you can be comfortable and
have peace of mind knowing that you can keep track yourself of all your banking issues, but
as well it allows for more ease because you never have to worry about rushing out and
making it to the bank.

Defining Online Banking / online banking

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In the 21st century there will be a lot of banking, but there will be no banks.
Says Bill Gates.
The term "online banking" or "internet banking" covers both computer and telephone
banking. Using computer banking, a customer either uses his computer to dials directly into
its bank's computer or gains access to the banks computer over the internet. Using telephone
banking, the customer can controls its bank accounts by giving the bank instructions over the
telephone. Both computer and telephone banking involve the use of passwords which give
access to the customers accounts.
Using these methods, banking transactions can be actioned 24 hours a day. Online banking
allows the person, for instance, to view recent transactions, print out statements and transfer
funds between accounts and make payments.
Many banks also have the facility for someone to set up, amend or cancel standing orders.
Internet banking also allows payments to be made to the customer, i.e. acceptance of credit
card donations. Most people that use internet banking will also continue to use some of the
elements of more traditional methods of banking, such as a cheque book.
Features of online banking
Today, online banking services are quite varied. One of the best features of online banking is
putting the user in control. The user controls all bill paying, transfers, and investments from
home. There are other features, though of online banking. One of these is increased
accessibility to your account information. Users of online banking services can access their
account information from anywhere in the world! This is particularly helpful for businesses.
Internet business banking is becoming increasingly popular, as businesses are becoming more
global in their reach. Now business people can access their accounts, even when on overseas
business trips. Business Internet banking is extremely popular for this reason. A particularly
popular aspect of online banking services is the ability to make bill payments electronically.
With a minimum degree of set-up, customers can enter the amounts of their paper bills (or opt
to receive electronic bills) and process all their payments at one time, from one screen

Online Banking in developing countries

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Just like Internet infrastructure, Online Banking in developing countries is at early stages;
however there are some exceptions where countries like:

Brazil have 75% of enterprises, excluding micro-enterprises using the Internet for

banking in 2005.
Morocco (34.9%). (United Nations Conference on Trade and Development, 2006),
There is an increasing growth of online banking, indicating a promising future for
online banking in these countries.

In China, while banks issue credit cards and while many use debit cards to draw
directly from their respective bank accounts, very few people use their credit cards for
online payment. Cash-on-delivery is still the most popular mode of e-commerce
payment. Nonetheless, online payment is gaining popularity because of the emergence
of China pay and Cyber Beijing, which offer a city-wide online payment system.

(Zorayda Ruth B. Andam, 2003).

The Nigerian economy is largely cash-based with a lot of money residing outside the
banking system. To a greater extent, this has hindered the participation of her citizens
in e-commerce where e-payment is the acceptable means of settling transactions. (Ayo
Charles. K and Babajide Daniel O, 2006). In Nigeria, the modernization of the
payment process started with the introduction of the MICR. This was followed by the
establishment of ATMs for cash dispensing, account balance enquiry and payment of
utility cheques. In 1993, the Central Bank of Nigeria (CBN), introduced the use of
payment cards (smartcard) and paper-based instrument. Similarly in 2004, CBN
introduced a broad guideline on Online Banking which included the introduction of

ATM, e-money products such as credit and debit cards (Salimon, 2006).
The Turkish banking sector has not only grown in numerical terms it has also
expanded in terms of technology and the range of new services offered to its local and
foreign customers. The sector has been viewed as the leader of technological
innovations in Turkey.

History of Online Banking in India

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Just like many other developing countries, electronic banking initiatives are being worked on
in India to exploit the technological benefits that can be reaped along with many other ereadiness initiatives being taken.
India has been among the late entrants into e-banking. The first ATM switch was setup in
1999 and in2000 Internet Banking was introduced. (Ali Ahmad, 2006)
When the government started an information-technology (IT) and e-commerce initiative in
early 2000, the banks were expected to lead the way into e-commerce. However, although the
banking sector is the leading spender on information communications technology, the most
progress in e-commerce has been in e-government. Some business-to-business (B2B)
portals are available, but they are designed more for Information than transactions. (The
Economist Intelligent Unit, 2006)Since the de-regulation of the banking sector in India in
2002 many foreign and private banks have established strong consumer base by adopting eCommerce techniques, thus exploiting the first mover advantage myth. However, for such
initiatives to be successful Government needs to play an active role in creating awareness
among the consumers and a regulatory infrastructure and legislation. Indian government has
already started working towards forming an information society to create awareness among
the people but the process is relatively slow.
The Ministry of Science & Technology has been taking number of measures to promote ECommerce and Online Banking in India, Technology helps to catalyze efficiency in the
provision of financial services and ultimately in determining the winners in the intensely
competitive financial markets of the future.The use of ATMs and Online Banking products is
gaining currency and almost all banks have established networking of their ATMs with the
interconnectivity of switches. Better outreach offered by ATMs will enhance the customer
base and offer more alternatives and choices to customers. Further development on Online
Banking and internet banking will open up new avenues like on-line banking. Among others,
the relatively smaller size banks will be able to compete with the large banks and retain their
market presence by using technology more effectively.
Technology tends to have a high degree of obsolescence. Thus, the financial institutions will
have to invest heavily in the development of their IT systems, which might initially burden
their resources.

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Half of the countrys 7,000 commercial-bank branches, including 90% of the branches in
urban areas, had been computerised by August 2006. Many banks and exchange companies
offer online funds transfers from overseas, such as for workers remittances.
A few of banks offer mobile-phone banking, where customers can pay utility bills using their
mobile phones. The National Institutional Facilitation Technologies (NIFT), an
automated check-clearing house was operating in 14 cities in August 2006, and it processed
60m checks per year in 2005/06. NIFT is a public-private company owned 51% by banks
(The Economist Intelligence Unit, 2006) In recent years, Automated Teller Machines (ATM),
Tele Banking, Internet Banking, Credit and Debit Cards, etc. have emerged as effective
delivery channels for traditional banking products in India. Foreign banks took the lead by reintroducing credit cards to the Indian mass market in mid-1990s. (State Bank of India, 2003)
This was followed by the domestic banks, which introduced ATM facility in late 1990s.
However, this delayed entry in Online Banking may be largely explainable by regulatory
hurdles, higher start-up costs, 38 ongoing banking sector reforms, and lack of technical
skills.At present, a number of commercial banks have set up their own standalone ATM
networks, issuing credit and debit cards, offering round the clock phone banking, and
maintain comprehensive websites providing detailed information on their conventional and
Online Banking products. Furthermore, all banks have joined one of the two operating ATM
Switch Networks (MNet and ATM Switch Network) and these two switches are in process of
linkage with each other. Haven linked these two switches, customers will have access to over
four hundreds ATMs throughout India.39 However, other Online Banking activities are yet to
establish. In India, the ATMs generally allow cash withdrawals, balance information, PIN
change, and to print mini-statement. A few banks also provide fund transfers, check book
request, and utility bill payment facilities through their ATM networks.

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Internet Banking In the World
The term online banking was first started in 80s. The term online became popular in the late
80s and referred to the use of a terminal, keyboard and TV (or moni tor) to access the banking
system using a phone line. Home banking can also refer to the use of a numeric keypad to
send tones down a phone line with instructions to the bank. Online services started in New
York in 1981 when four of the citys major banks (Citibank, Chase Manhattan, Chemical and
Manufacturers Hanover) offered home banking services using the videotext system. 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, wher e the Prestel system was used. The first home online banking services were set up
by the Nottingham Building So ciety (NBS) located in UK in 1983. The system used was
based on the UK s Prestel system and used a computer, such a s the BBC Micro, or keyboard
(Tan data Td1400) connected to the telephone system and television set. The system (known
as Home link ) allowed on-line viewing of statements, bank tr ansfers and bill payments. In
order to make bank transfers and bill payments, a written instruction giving details of the
intended recipient had to be sent to t he NBS who set the details up on the Home link system.
Typical recipients were gas, electricity and telephone companies and accounts wi th other
banks. Details of payments to be made were input into the NBS system by the account holder
via Prestel. A cheque was then sent by NBS to the payee and an advice giving details of the
payment was sent to the account holder. BACS was later used to transfer the payment
directly. Stanford Federal Credit Union was the first financial institution to offer onlin e
internet banking services to all of its members in Oct, 1994. Later on it was adopted by
worldwide banks. Internet baking in India Internet banking, both as a medium of delivery of
banking services and as a stra tegic tool for business development, has gained wide
acceptance internationally and is fast catching up in India with more and more banks entering
this market. ICICI was the first bank in India to launch internet banking facility in the yea r
1997. A recent survey consisting of 46 banks, has revealed that at present, 11 banks i n India
are providing Internet banking services at different levels, 22 banks pr opose to offer Internet
banking in near future while the remaining 13 banks have no immediate plans to offer such
facility. At present, the total Internet users in the country are estimated at 2.5 Crores. About
60% of internet users use internet banking directly or indirectly. Costs of banking service
through the Internet form a fraction of costs through c onventional methods. Rough estimates
assume teller cost at Re.1 per transaction, ATM transaction cost at 45 paise, phone banking at
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35 paise, debit cards at 20 p aise and Internet banking at 10 paise per transaction. The costconscious banks in the country have therefore actively considered use of the Internet as a
channel for providing services. Online Activities in India Transaction Cost per Distribution
Channel for Banking in India

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RBI Guidelines on Internet Banking

1. In June 2001 banks were advised to seek prior approval of Reserve Bank o f India before
offering transactional services on the Internet. The position has since been reviewed and RBI
has advised on 20th July 2005 that while the offeri ng of Internet Banking services will
continue to be governed by the provisions o f the above circular, no prior approval of the
Reserve Bank of India will be req uired by banks for offering Internet Banking services. 2. i.
Banks should, however, ensure compliance with the following conditions: The Internet
Banking policy has been approved by the Bank s Board.
ii. The policy fits into the banks overall Information Technology and Inform ation Security
policy and ensures confidentiality of records and security system s. iii. The policy takes into
account operational risk.
iv. The policy clearly lays down the procedure to be followed in respect of "Know Your
Customer" requirements, and v. r. 5. The policy broadly meets the parameters laid down in
the earlier circula
Internet Banking Risks
Internet banking creates new risk control challenges for national banks. From a supervisory
perspective, risk is the potential that events, expected or unexpect ed, may have an adverse
impact on the banks earnings or capital. There are generally nine categories of risks in
internet banking, which are as follows:
Credit Risk
Interest rate Risk
Liquidity Risk
Price Risk
Foreign exchange Risk
Transaction compliance Risk
Strategic Risk
Reputation Risk.

Credit Risk

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Credit risk is the risk to earnings or capital arising from an obligors failure t o meet the terms
of any contract with the bank or otherwise to perform as agreed .Credit risk is found in all
activities where success depends on counterparty, issuer, or borrower performance. It arises
any time bank funds are extended, com mitted, invested, or otherwise exposed through actual
or implied contractual agr eements, whether on or off the banks balance sheet. Internet
banking provides the opportunity for banks to expand their geographic range. Customers can
reach a given institution from literally anywhere in the world. In dealing with customers over
the Internet, absent any personal contact, it is challenging for institutions to verify the bona
fides of their customers, which is an important element in making sound credit decisions.
Interest Rate Risk
Interest rate risk is the risk to earnings or capital arising from movements in interest rates.
The following are the types of interest rate risk.
1. Re-Pricing Risk: Interest rate risk arises from differences between the timing of rate
changes and the timing of cash flows.
2. Basis Risk: Interest rate risk arises from changing rate relationships a mong different yield
curves affecting bank activities.
3. Yield Curve Risk: Interest rate risk arises from changing rate relations hips across the
spectrum of maturities and
4. Options Risk: Interest rate risk arises from interest-related options embedded in bank
products.
Liquidity Risk
Liquidity risk is the risk to earnings or capital arising from a banks inability to meet its
obligations when they come due, without incurring unacceptable losses. Liquidity risk
includes the inability to manage unplanned changes in funding sources. Liquidity risk also
arises from the failure to recognize or address changes in market conditions affecting the
ability of the bank to liquidate assets quickly and with minimal loss in value. Internet banking
can increase deposit volatility from customers who maintain accounts solely on the basis of
rate or terms.
Price Risk
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Price risk is the risk to earnings or capital arising from changes in the value of traded
portfolios of financial instruments. This risk arises from market making, dealing, and position
taking in interest rate, foreign exchange, equity, and commodities markets. Banks may be
exposed to price risk if they create or expand deposit brokering, loan sales, or securitization
programs as a result of Internet banking activities. Appropriate management systems should
be maintained to monitor, measure, and manage price risk if assets are actively traded.
Foreign Exchange Risk
Foreign exchange risk is present when a loan or portfolio of loans is denominate d in a
foreign currency or is funded by borrowings in another currency. In some cases, banks will
enter into multi-currency credit commitments that permit borrowers to select the currency
they prefer to use in each rollover period. Foreign exchange risk can be intensified by
political, social, or economic developments.
Transaction Risk
Transaction risk is the current and prospective risk to earnings and capital airing from fraud,
error, and the inability to deliver products or services, maintain a competitive position, and
manage information. Transaction risk is evident in each product and service offered and
encompasses product Internet Banking development and delivery, transaction processing,
systems development, computing systems, complexity of products and services, and the
internal control environment. A high level of transaction risk may exist with Internet banking
products, particularly if those lines of business are not adequately planned, implemented, and
monitored. Banks that offer financial products and services through the Intern et must be able
to meet their customers expectations. Customers who do business ver. the Internet are likely
to have little tolerance for errors or omissions fro m financial institutions that do not have
sophisticated internal controls to manage their Internet banking business. Compliance Risk
Compliance risk is the risk to earnings or capital arising from violations of, o r
nonconformance with, laws, rules, regulations, prescribed practices, or ethica l standards.
Compliance risk also arises in situations where the laws or rules g overning certain bank
products or activities of the banks clients may be ambiguou s or untested. Compliance risk
exposes the institution to fines, civil money pen alties, payment of damages, and the voiding
of contracts. Compliance risk can le ad to a diminished reputation, reduced franchise value,
limited business opportu nities, reduced expansion potential, and lack of contract
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enforceability. Most Internet banking customers will continue to use other bank delivery
channel s.
Strategic Risk
Strategic risk is the current and prospective impact on earnings or capital aris ing from
adverse business decisions, improper implementation of decisions, or la ck of responsiveness
to industry changes. This risk is a function of the compati bility of an organizations strategic
goals, the business strategies developed to achieve those goals, the resources deployed
against these goals, and the quality of implementation. Management must understand the
risks associated with Interne t banking before they make a decision to develop a particular
class of business. In some cases, banks may offer new products and services via the Internet.
It i s important that management understand the risks involved in the decisions. Before
introducing the Internet banking product, management should consider whether the product
and technology are consistent with tangible business objectives in t he banks strategic plan.
The bank also should consider whether adequate expertise and resources are available to
identify, monitor, and control risk in the Internet banking business.
Reputation Risk
Reputation risk is the current and prospective impact on earnings and capital ar ising from
negative public opinion. This affects the institutions ability to esta blish new relationships or
services or continue servicing existing relationships . This risk may expose the institution to
litigation, financial loss, or a decli ne in its customer base. Reputation risk exposure is present
throughout the orga nization and includes the responsibility to exercise an abundance of
caution in dealing with customers and the community. A banks reputation can be damaged
by In ternet banking services that are poorly executed or otherwise alienate customers and the
public. Well-designed marketing, including disclosures, is one way to e ducate potential
customers and help limit reputation risk. A national bank shoul d not market the banks
Internet banking system based on features or attributes th e system does not have. National
banks should carefully consider how connections to third parties are presented on their Web
sites. Hypertext links are often us ed to enable a customer to link to a third party. Such links
may reflect an endo rsement of the third partys products or services in the eyes of the
customer. It should be clear to the customer when they have left the banks Web site so that th
ere is no confusion about the provider of the specific products and services off ered or the
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security and privacy standards that apply. National banks need to be sure that their business
continuity plans include the Internet banking business .

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Risk Management techniques undertaken by banks
Financial institutions should have a technology risk management process to enable them to
identify, measure, monitor, and control their technology risk exposure. Risk management of
new technologies has three essential elements: The planning process for the use of the
technology. Implementation of the technology. The means to measure and monitor risk. The
risk planning process The risk planning process is the responsibility of the board and senior
management. They need to possess the knowledge and skills to manage the banks use of
Internet banking technology and technology-related risks. The board should review, approve,
and monitor Internet banking technology-related projects that may have a significant impact
on the banks risk profile. They should determine whether the technology and products are in
line with the banks strategic goals and meet a nee d in their market. Senior management
should have the skills to evaluate the technology employed and risks assumed. Periodic
independent evaluations of the Internet banking technology and products by auditors or
consultants can help the boar d and senior managementfulfill their responsibilities.
Implementing the technology implementing the technology is the responsibility of
management. Management should have the skills to effectively evaluate Internet banking
technologies and pro ducts, select the right mix for the bank, and see that they are installed
appropriately. If the bank does not have the expertise to fulfill this responsibility internally, it
should consider contracting with a vendor who specializes in this type of business or
engaging in an alliance with another provider with complementary technologies or expertise.
Measuring and monitoring risk Measuring and monitoring risk is the responsibility of
management. Management should have the skills to effectively identify, measure, monitor,
and control risk s associated with Internet banking. The board should receive regular reports
on the technologies employed, the risks assumed, and how those risks are managed. M
onitoring system performance is a key success factor. As part of the design proc ess, a
national bank should include effective quality assurance and audit proces ses in its Internet
banking system. The bank should periodically review the syst ems to determine whether they
are meeting the performance standards.

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CBS - Core Banking System Components
Services provided by SBI internet banking Online SBI (www.onlinesbi.com) State Bank of
India is Indias largest bank with a branch network of over 11000 branches and 6 associate
banks located even in the remotest parts of India. State Bank of India (SBI) offers a wide
range of banking products and services to corporate and retail customers. Online SBI is the
Internet banking portal for State Bank of India. The portal pro vides anywhere, anytime,
online access to accounts for State Banks Retail and Corporate customers. The application is
developed using the latest cutting edge technology and tools. The infrastructure supports
unified, secure access to banking services for accounts in over 11,000 branches across India.
Retail Banking:The Retail banking application is an integration of several functional areas, an
d enables customers to: Issue Demand Drafts online Transfer funds to own and third party
accounts Credit beneficiary accounts using the VISA Money Transfer, RTGS/NEFT feature
Generate account statements Setup Standing Instructions Configure profile settings Use eTax
for online tax payment Use ePay for automatic bill payments Interface with merchants for
railway and airline reservations Corporate Banking:The OnlineSBI corporate banking
application provides features to administer and manage corporate accounts online. The
corporate module provides roles such as Re gulator, Admin, Uploader, Transaction Maker,
Authorizer, and Auditor. These role s have access to the following functions: Manage users,
define rights and transaction rules on corporate accounts Access accounts in several branches
with a single sign-on mechanism Upload files to make bulk transactions to third parties,
supplier, vendor and ta x collection authorities. Use online transactional features such as fund
transfer to own accounts, third p arty payments, and draft issues Make bill payments over the
Internet. Authorize, modify, reschedule and cancel transactions, based on rights assigned to
the user Generate account statement Enquire on transaction details or current balance Value
added services: Tax payments to central and state governments through site to site
integration. Supply Chain Finance( e-VFS- Electronic Vendor Finance Scheme) Direct Debit
Facility E Collection Facilities Core Banking Transactions Internet Bank transactions for
incoming RTGS/NEFT Transactions Internet banking transactions for SBI and associate
banks Debit facility where suppliers can directly debit their customers account through
internet banking. Other online services: E-Ticketing SBI E-Tax Bill Payment

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Account Opening Request Account Statement Transaction Enquiry Donation
E-TICKETING :You can book your railway, air and bus tickets online through OnlineSBI. To book your train
ticket, just log on to irctc.co.in and create an ID there at if you do not have one. Submit your
travel plan and book the ticket(s)-either i-ticket (where the delivery of tickets will be made at
your address) or E-tickets (wherein after successful payment transactions, an e-ticket is
generat ed which can be printed any time. For an e-ticket, the details of photo identity card
will be required to be filled in). And select State Bank of India in the payment options. You
will be redirected to Internet Banking site of SBI (www.onlinesbi.com). After submitting the
respecti ve ID and password, you can select your account. After a successful debit, Railw ays
will generate the ticket. E-ticket can be printed by you whereas i-ticket wi ll be dispatched by
IRCTC at the given address. Service charges @ Rs.10/- per tr ansaction shall be levied in
addition to the cost of the ticket. Cancellation of E-ticket can be done by logging on to
IRCTC s site; refund amount will be credi ted to your account directly within 2-3 days. For
cancellation of i-ticket, you shall be required to submit your ticket at a computerized counter
of Railways an d on cancellation; the amount shall be credited back to your account. To book
other forms of tickets the procedure is same. The customer is only needs to go to the
respective website and follow the necessary instruction.
SBI E-TAX:You can pay your taxes online through SBI E-Tax. This facility enables you to pa y TDS,
Income tax, Indirect tax, Corporation tax, Wealth tax, Estate Duty and Fr inge Benefits tax.
Click the e-Tax link in the home page. You are displayed with a page with two links one is for
Direct Tax and the other is for Indirect Tax. Click the Direct Tax link. You will be redirected
to the NSDL site where you can select an online challan based on the tax you wish to pay.
Provide the PAN, nam e and address, assessment year, nature of payment and bank name. On
selecting th e bank name as SBI and submitting the form, you will be redirected to the Intern
et Banking site. After submitting the respective ID and password, you can select your account
for making payment of taxes. After payment is successful you can p rint the E-Receipt for the
payment. The E-receipt can be printed at a later date also and the same can be retrieved from
by navigating to Enquiries > Find Trans actions > Status Enquiries > Click on the respective

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transaction to print the ta x receipt. The procedure is same for indirect tax, in case of indirect
tax you are redirect ed to the website of CBEC (Central Board of Excise and Customs).
Bill Payment :It is a simple and convenient service for viewing and paying your bills online. No more late
payments No more queues No more hassles of depositing cheques Using the bill payment the
user can view and Pay various bills online, directly from your SBI account. The user can pay
telephone, electricity, insurance, credi t cards and other bills from the comfort of your house
or office, 24 hours a day , 365 days a year. Simply logon to (http://www.onlinesbi.com) with
his credentials and register the biller to which you want to pay, with all the bill details. Once
the bill is uploaded by the biller, the user can make payment online within just few steps. The
user can also set up Auto Pay instructions with an upper limit to ensure tha t your bills are
paid automatically whenever they are due. The upper limit ensur es that only bills within the
specified limit are paid automatically, thereby pr oviding the customer with complete control
over all these bill payments. The e-PAY service is available in various cities across the
country and you can now make payments to several billers in your region.
RTGS/NEFT
You can transfer money from your State Bank account to accounts in other banks u sing the
RTGS/NEFT service. The RTGS (Real Time Gross Settlement) system facilitates transfer of
funds from accounts in one bank to another on a "Real Time" and on "Gross Settlement"
basis . This system is the fastest possible interbank money transfer facility availabl e through
secure banking channels in India. RTGS transaction requests will be se nt to RBI immediately
during working hours post working hours requests are regis tered and sent to RBI on next
working day. The user can also schedule a transact ion for a future date. The customer can
transfer an amount of Rs.1 lac and above minimum using RTGS (Real Time Gross
Settlement) system. NEFT stands for National Electronic Funds Transfer. NEFT facilitates
transfer of funds to the credit account with the other participating bank. RBI acts as the
service provider and transfers the credit to the other bank s account. NEFT transactions are
settled in batches based on the following timings 1. 6 settlements on weekdays - at 09:00,
11:00, 12:00, 13:00, 15:00 and 17: 00 hrs. 2. 3 settlements on Saturdays - at 09:00, 11:00 and
12:00 hrs. Please note that all the above timings are based on Indian Standard Time (IST)
only.
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E-Payment :The customer can pay his insurance premium, mobile phone bills and also you can purchase
mutual fund units by coming from the billers website and selecting state bank of India in the
payment option in order to avail this facility. LIC PREMIUM: For paying premium of LIC
policy the customer can logon to www.lici ndia.com and register his policy details. When the
premium is due State Bank of India should be selected in the make payment option. SBI
Mutual FUND: The customer can invest in the SBI Mutual Fund schemes online. He should
logon to www.sbimf.com and select the scheme in which he want to make investment in the
payment option select State Bank of India. CCAVENUES: Now the customer can enjoy
shopping at the CCAvenue Shopping Mall and purchase from a wide variety of products and
services through CCAvenue Certifie d Vendors. He can make payments for your purchases
using your Internet enabled S BI accounts.
Fund Transfer:
The Funds Transfer facility enables the user to transfer funds within his accounts in the same
branch or other branches. The user can transfer aggregating Rs.1 lakh per day to own
accounts in the same branch and other branches. To make a fu nds transfer, the user should be
an active Internet Banking user with transaction rights. Funds transfer to PPF account is
restricted to the same branch. The user has to just log on to retail section of the Internet
Banking site with his credentials and select the Funds Transfer link under Payments/Transfers
tab. The user can see all his online debit and credit accounts. Select the debit account from
which the user wish to transfer funds and the credit account into which the amount is to be
credited. Enter the amount and remarks. The remarks will b e displayed in his accounts
statement for this transaction. The user will be displayed the last five funds transfer
operations on his accounts. On confirming th e transaction, the user will be displayed a
confirmation page with the details o f the transaction and the option to submit or cancel the
funds transfer request. A reference number will be generated for his record.
Third Party Transfer :
The user can transfer funds to his trusted third parties by adding them as third party accounts.
The beneficiary account should be any branch SBI. Transfer is instant. The user can do any
number of Transactions in a day for amount aggregating Rs.1lakh. To transfer funds to third
party having account in SBI, the user need to add and approve a third party, the user need to
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register his mobile number in personal details link under profile section. The user will receive
a One Time SMS passwor d on his mobile phone to approve a third party. If the user do not
have a mobile number, third party approval will be handled by his branch. Only after
approval of third party, the user will be able to transfer funds to the third party. The user can
set limits for third party transactions made from his accounts or even set limits for individual
third parties. 8) Demand Draft :The Internet Banking application enables the user to register
demand drafts requ ests online. The user can get a demand draft from any of his Accounts
(Savings B ank, Current Account, Cash Credit or Overdraft). The user can set limits for dem
and drafts issued from his accounts or use the bank specified limit for demand d rafts. The
user can opt to collect the draft in person at his branch, quoting a referen ce to the transaction.
A printed advice can also be obtained from the site for h is record. 9) Cheque Book
Request :The user can request for a cheque book online. Cheque book can be requested for
any of his Savings, Current, Cash Credit, and Over Draft accounts. The user can opt for
cheque books with 25, 50 or 100 cheque leaves. The user can either collect it from branch or
request his branch to send it by post or courier. The user can opt to get the cheque book
delivered at his registered address or the user can provide an alternate address. Cheque books
will be dispatched within 3 working days from the date of request to the requested destination
by the user. The user can just log on to retail section of the Internet Banking site with his
credentials and select the Cheque Book link under Requests tab. The user can vi ew all his
transaction accounts. Select the account for which the user require a cheque book; enter the
number of cheque leaves required and the mode of deliver y. Then, submit the same.
Account Opening Request:
Online SBI enables the user to open a new account online. The user can apply for a new
account only in branches where he already has an account. He should have a n INB-enabled
account with transaction right in the branch. Funds in an existing account are used to open the
new account. He can open Savings, Current, Term De posit and Recurring Deposit accounts
of Residents, NRO and NRE types. He has to enter retail section of the Internet Banking site
with his using his I D and select the New Account link under Requests tab. He can see all
types of accounts. Select the account and account type he wishes to open and submit the
same. Then, he needs to select the branch and enter the initial amount to open the account. He
can select any of his accounts for debiting the initial amount. Then, submit the transaction.
His new account opening request will be processed by t he branch.
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Account Statement :
The Internet Banking application can generate an online, downloadable account statement for
any of the users accounts for any date range and for any account mapped to his username.
The statement includes the transaction details, opening, closing and accumulated balance in
the account. The user can generate the online account statement for any date range or for any
month and year. The account statement can be viewed online, printed or download ed as an
Excel or PDF file. He also has the option to select the number of records displayed in each
page of the statement. The options are 25, 50, 75, 100 and all.
Transaction Enquiry :
OnlineSBI provides features to enquire status of online transactions. The user c an view and
verify transaction details and the current status of transactions. T he users VISA transactions
can also be viewed separately. He has to just log on to retail section of the Internet Banking
site with his credentials and select t he Status Enquiry link under the Enquiries tab. The user
will be displayed all online transactions he had performed.
Demat Account Statement:
OnlineSBI enables the user to view Demat account statement and maintain such accounts.
The bank acts as your depository participant. In the third party site, you can mark a lien on
your Demat accounts and use the funds to trade on stock using funds in your SBI savings
account. The user can view Demat account details, and generate the following statements:
statement of holding, statement of transactions, statement of billing.

Donation:
The user can make donation to religious and charitable institution by using Inte rnet Banking
of SBI. He has to just log on to http://www.onlinesbi.com/ with his credentials and go to
Payment and transfer and click on make donation link. Aft er selecting the debit account, the
user has to select the religious/charitable institution to which he wants to offer donation. After
successful payment he can print an E-receipt for the donation made.

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