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A PROJECT REPORT ON

To Study the NET BANKING AND TECHNOLOGY

AT
STATE BANK OF INDIA (SBI)
MAHAL BRANCH
NAGPUR

In partial fulfillment for the


MASTERS OF BUSINESS ADMINISTRATION (MBA)
FINANCE

Submitted by
CHHAYA LIMJE

Submitted to
MIT- ADT UNIVERSITY
PUNE
2017-2019

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DECLARATION

I, CHHAYA LIMJE hereby declare that the summer project report titled “To study the NET
BANKING AND TECHNOLOGY” is an original piece of work done by me for the fulfillment of
the award of degree of Masters in Business Administration and whatever information has been taken
from any sources has been duly acknowledged.

I further declare that the personal data and the information received from any respondents during
project work have not been shared with anyone and are used for academic purpose only.Hence, I
request you to accept the same.

Project Guide Members of Board


Governors

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INDEX

Chapter Particulars Page


no. No.
1. Introduction and Objective of 3
study

1.1.introduction of the study 4


1.2. Objective of the study 5
1.3. scope of the study 6
1.4. Limitation of study
2. Research methodology
3. Organizational profile & overview
2.1. about the company profile 8
2.2. Features of online banking 9
2.3. Advantages of online banking 10
2.4. Disadvantages of online 11
banking
4. Theoretical Background

3.1. Core banking solution 14


3.2. ATM banking 15
3.3. Digital wallet 15
3.4. Digital cash 16
3.5.Mobile banking 16
3.6.E-ticketing 17
3.7 Online demand draft 17

5. Introduction of YONO Application 18-37


6. Data Analysis & Interpretation 38-43

7. Conclusion

8. Recommendation
9. limitation of the Study 48

10. Bibliography 50

11. Annexure
Questionnaire 51

3
List Of Figures:

Serial no Descriptive Page no

6.1 Different age groups using net


banking

6.2 Use of online banking

6.3 Occupation base analysis

6.4 Education about YONO

6.5 Benefits seen by customers

4
Chapter 1
INTRODUCTION of STATE BANK OF INDIA

State Bank of India

State Bank of India (SBI) is an Indian multinational, public sector banking


and financial services company. It is a government-owned
corporation headquartered in Mumbai, Maharashtra. The company is ranked 216th
on the Fortune Global 500 list of the world's biggest corporations as of 2017. It is the

5
largest bank in India with a 23% market share in assets, besides a share of one-
fourth of the total loan and deposits market.
The bank descends from the Bank of Calcutta, founded in 1806, via the Imperial
Bank of India, making it the oldest commercial bank in the Indian subcontinent.
The Bank of Madras merged into the other two "presidency banks" in British India,
the Bank of Calcutta and the Bank of Bombay, to form the Imperial Bank of India,
which in turn became the State Bank of India in 1955 The Government of India took
control of the Imperial Bank of India in 1955, with Reserve Bank of India (India's
central bank) taking a 60% stake, renaming it the State Bank of India. In 2008, the
government took over the stake held by the Reserve Bank of India.
State Bank of India is the largest and one of the oldest commercial bank in India, in
existence for more than 200 years. The bank provides a full range of corporate,
commercial and retail banking services in India. Indian central bank namely Reserve
Bank of India (RBI) is the major shareholder of the bank with 59.7% stake. The bank
is capitalized to the extent of Rs.646bn with the public holding (other than promoters)
at 40.3%. SBI has the largest branch and ATM network spread across every corner
of India. The bank has a branch network of over 14,000 branches (including
subsidiaries). Apart from Indian network it also has a network of 73 overseas offices
in 30 countries in all time zones, correspondent relationship with 520

International banks in 123 countries. In recent past, SBI has acquired banks in
Mauritius, Kenya and Indonesia. The bank had total staff strength of 198,774 as on
31st March, 2006. Of this, 29.51% are officers, 45.19% clerical staff and the
remaining 25.30% were sub-staff. The bank is listed on the Bombay Stock
Exchange, National Stock Exchange, Kolkata Stock Exchange, Chennai Stock
Exchange and Ahmedabad Stock Exchange while its GDRs are listed on the London
Stock Exchange. SBI group accounts for around 25% of the total business of the
banking industry while it accounts for 35% of the total foreign exchange in India. With
this type of strong base, SBI has displayed a continued performance in the last few
years in scaling up its efficiency levels. Net Interest Income of the bank has
witnessed a CAGR of 13.3% during the last five years. During the same period, net
interest margin (NIM) of the bank has gone up from as low as 2.9% in FY02 to
3.40% in FY06 and currently is at 3.32%.

1.1History:
The roots of the State Bank of India lie in the first decade of the 19th century when
the Bank of Calcutta later renamed the Bank of Bengal, was established on 2 June
1806. The Bank of Bengal was one of three Presidency banks, the other two being
the Bank of Bombay (incorporated on 15 April 1840) and the Bank of

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Madras (incorporated on 1 July 1843). All three Presidency banks were incorporated
as joint stock companies and were the result of royal charters. These three banks
received the exclusive right to issue paper currency till 1861 when, with the Paper
Currency Act, the right was taken over by the Government of India. The Presidency
banks amalgamated on 27 January 1921, and the re-organized banking entity took
as its name Imperial Bank of India. The Imperial Bank of India remained a joint stock
company but without Government participation.
Pursuant to the provisions of the State Bank of India Act of 1955, the Reserve Bank
of India, which is India's central bank, acquired a controlling interest in the Imperial
Bank of India. On 1 July 1955, the Imperial Bank of India became the State Bank of
India. In 2008, the Government of India acquired the Reserve Bank of India's stake
in SBI so as to remove any conflict of interest because the RBI is the country's
banking regulatory authority.
In 1959, the government passed the State Bank of India (Subsidiary Banks) Act. This
made SBI subsidiaries of eight that had belonged to princely states prior to their
nationalization and operational takeover between September 1959 and October
1960, which made eight state banks associates of SBI. This one with the first Five
Year Plan, which prioritized the development of rural India. The government
integrated these banks into the State Bank of India system to expand its rural
outreach. In 1963 SBI merged State Bank of Jaipur (est. 1943) and State Bank of
Bikaner (est.1944).
SBI has acquired local banks in rescues. The first was the Bank of Bihar (est. 1911),
which SBI acquired in 1969, together with its 28 branches. The next year SBI
acquired National Bank of Lahore (est. 1942), which had 24 branches. Five years
later, in 1975, SBI acquired Krishna ram Baldeo Bank, which had been established
in 1916 in Gwalior State, under the patronage of Maharaja Madho Rao Scindia. The
bank had been the Dukan Pichadi, a small moneylender, owned by the Maharaja.
The new bank's first manager was Jall N. Broacha, a Parsi. In 1985, SBI acquired
the Bank of Cochin in Kerala, which had 120 branches. SBI was the acquirer as its
affiliate, the State Bank of Travancore, already had an extensive network in Kerala.
There has been a proposal to merge all the associate banks into SBI to create a
single very large bank and streamline operations.[8]
The first step towards unification occurred on 13 August 2008 when State Bank of
Saurashtra merged with SBI, reducing the number of associate state banks from
seven to six. On 19 June 2009, the SBI board approved the absorption of State Bank
of Indore. SBI holds 98.3% in State Bank of Indore. (Individuals who held the shares
prior to its takeover by the government hold the balance of 1.7 %.)[9]
The acquisition of State Bank of Indore added 470 branches to SBI's existing
network of branches. Also, following the acquisition, SBI's total assets will
approach ₹10 trillion. The total assets of SBI and the State Bank of
Indore were ₹9,981,190 million as of March 2009. The process of merging of State
Bank of Indore was completed by April 2010, and the SBI Indore branches started
functioning as SBI branches on 26 August 2010.[10]
On 7 October 2013, Arundhati Bhattacharya became the first woman to be appointed
Chairperson of the bank.[11] Mrs. Bhattacharya received an extension of two years of
service to merge into SBI the five remaining associated banks.

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1.2 Objectives of the study:

To understand the genesis and concept of Online-Banking.


1. To analyse the importance, functions, advantages and limitations of Online-
Banking.
2. To explain the different form of Online-Banking and to analyse the rules &
regulation Regarding Online-Banking guided by RBI.
3. To analyse the trend of Online-Banking with the help of primary data.
4. Customer satisfaction by analysing the problems faced by the customers.

1.3. DATABASE AND METHODOLOGY


1. Data Collection:

Primary Source: The study is based on both of primary and secondary data. For the
purpose of case study primary data have been collected from the people through
phone calls, social network and direct interview from them.

Secondary Source: The secondary data have been collected from different articles
& website resources such as www.wikipedia.com, www.google.co.in and so many
others. We have used simple pictures, tables, & graphs to analysis & present the
data. Apart from this I also followed my supervisor’s instructions to finish the project.

2. Sampling Methodology: The Primary data have been collected through a survey
with a pre-tasted structured QUESTIONNAIRE on a sample of randomly selected
114 people of UTTARPARA in which some are college students, business persons,

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service holders, working women and some people who belong to 20-60 age group.
From 114 respondents 100 respondents use online banking and the data collected
from those people are used to analysis the trend of Net-Banking.

1.5. LIMITATION OF THE STUDY


The major limitations of the study are:
A small sample size of 114 respondents are taken to primary data analysis. So
I cannot draw proper inferences about the respondents from this sample size.
I have not used modern statistical tools to analysis the data.
Due to shortage of time I have not been able to make a depth study.
I could not collect data from the Nagpur user.
This study is based on the prevailing respondents’ satisfaction. But their
satisfaction may change

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RESEARCH METHODOLOGY

Research methodology is a methodology for collecting all sorts of information & data
pertaining
to the subject in question. The objective is to examine all the issues involved & conduct
situational analysis. The methodology includes the overall research design, sampling
procedure
& fieldwork done & finally the analysis procedure. The methodology used in the study
consistent of sample survey using both primary & secondary data. The primary data has
been
collected with the help of questionnaire as well as personal observation book, magazine;
journals have been referred for secondary data. The questionnaire has been drafted &
presented by the researcher himself.

Sample Size:
Sample of 2000 people was taken into study, and their data was collected
Sampling Technique:
To study the Project, a Simple Random Sampling technique is used.
Data Collection:

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Collection of data is done by
Secondary Data & through
Questionnaire
i.e., Primary data was collected through Questionnaire

Data Analysis:
After data collection, I’m able to analyze customer’s views, ideas and opinions
related to Advance Product and about SBI Advance Product and from this, SBI will
come to know the customer requirements.
Data Interpretation:
Interpretation of data is done by using statistical tools like Pie diagrams,
Bar graphs, and also using quantitative techniques (by using these
techniques) accurate information is obtained.
Classification & tabulation of data:
The data thus collected were classified according to the categories,
counting sheets & the summary tables were prepared. The resultant
tables were one dimensional, two dimensional.

Statistical tools used for analysis:
Out of the total respondents, the respondents who responded logically
were taken into account while going into statistical details & analysis of
data. The tools that have been used for analyzing data & inference
drawing are mainly statistical tools like percentage, ranking, averages, etc.
As per questionnaire and market surveys I have find out different responses from
different
people. According to their responses I analyze the findings and draw certain remarks.

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Chapter 2:
Online banking and overview

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2.1. DEFINITION

Online banking is an electronic payment system that enables customers of a
financial institution to conduct financial transactions on a website operated by the
institution, such as a retail bank, virtual bank, credit union or building society. Online
banking is also referred as internet banking, e-banking, virtual banking and by other
terms.

Online banking or E-banking is an umbrella term for the process by which a


customer may perform banking transactions electronically without visiting a brick-
and-mortar institution.

Online banking is the practice of making bank transactions or paying bills via the
Internet.

Thanks to technology, and the Internet in particular, people no longer have to leave
the house to shop, communicate, or even do their banking.

2.2First Online Banking Services in the United States:


According to "Banking and Finance on the Internet," edited by Mary J. Cronin, online
banking was first introduced in the early 1980s in New York. Four major banks—
Citibank, Chase Manhattan, Chemical and Manufacturers Hanover—offered home

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banking services. Chemical introduced its Pronto services for individuals and small
businesses in 1983. It allowed individual and small-business clients to maintain
electronic chequebook registers, see account balances, and transfer funds between
checking and savings accounts. Pronto failed to attract enough customers to break
even and was abandoned in 1989. Other banks had a similar experience.

2.3First Online Banking Services in the U.K.:


Almost simultaneously with the United States, online banking arrived in the United
Kingdom. The UK's first home online banking services known as Home link was set
up by Bank of Scotland for customers of the Nottingham Building Society (NBS) in
1983. The system used was based on the
UK's Prestel view link system and used a computer, such as the BBC Micro, or
keyboard (Tan data Td1400) connected to the telephone system and television set.
The system allowed on-line viewing of statements, bank transfers and bill payments.
In order to make bank transfers and bill payments, a written instruction giving details
of the intended recipient had to be sent to the NBS who set the details up on the
Home link system. Stanford Federal Credit Union was the first financial institution to
offer online internet banking services to all of its members in October 1994.

Banks and the World Wide Web:


In the 1990s, banks realized that the rising popularity of the World Wide Web gave
them an added opportunity to advertise their services. Initially, they used the Web as
another brochure, without interaction with the customer. Early sites featured pictures
of the bank's officers or buildings, and provided customers with maps of branches
and ATM locations, phone numbers to call for further information and simple listings
of products. At the beginning of 2004, some 33 million U.S. households (31% of the
market) were using one form or another of online banking. Five years later, 47% of
Americans were banking online, according to a by Gartner Group. Meanwhile, in the
UK e-banking grew its reach from 63% to 70% of Internet users between 2011 and
2012.

First Online Banking in India:


ICICI bank is the first one to have introduced Online-Banking in 1994 for a limited
range of services such as access to account information, correspondence and,
recently, funds transfer between its branches. ICICI is also getting into e-trading,
thus offering a broader range of integrated services to the customer.

2.2. FEATURES OF ONLINE BANKING:


Online banking facilities offered by various financial institutions have many features
and capabilities
in common, but also have some that are application specific.
The common features fall broadly into several categories:
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(A). A bank customer can perform non-transactional tasks through online banking,
including

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I. Viewing account balances.
II. Viewing recent transactions.
III. Downloading bank statements, for example in PDF format.
IV. Viewing images of paid cheques.
V. Ordering cheque books.
VI. Download periodic account statements.
VII. Downloading applications for M-banking, E-banking etc.
(B). Bank customers can transact banking tasks through online banking, including –
I. Funds transfers between the customer's linked accounts.
II. Paying third parties, including bill payments (see, e.g., BPAY) and third party fund
transfers
(see, e.g., FAST).
III. Investment purchase or sale.
IV. Loan applications and transactions, such as repayments of enrolments.
V. Credit card applications.
VI. Register utility billers and make bill payments.
VII. Financial institution administration.
VIII. Management of multiple users having varying levels of authority.
IX. Transaction approval process.
Some financial institutions offer special internet banking services, for example:
Personal financial management support, such as importing data into personal
Accounting Software.
Some online banking platforms support account Aggregation to allow the customers
to monitor all of their accounts in one place whether they are with their main bank or
with other institutions.
8

2.3. ADVANTAGES OF ONLINE 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:

Customer’s 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.

More efficient rates


The lack of significant infrastructure and overhead costs allow direct banks to pay
higher interest rates on savings and charge lower mortgage and loan rates. Some

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offer high-yield checking accounts, high yield certificate of deposits (CDs), and even
no-penalty CDs for early withdrawal. In addition, some accounts can be opened with
no minimum deposits and carry no minimum balance or service fees.

Services
Direct banks typically have more robust websites that offer a comprehensive set of
features that may not be found on the websites of traditional banks. These include
functional budgeting and forecasting tools, financial planning capabilities, investment
analysis tools, loan calculators and equity trading platforms. In addition, they offer
free online bill payments, online tax forms and tax preparation.

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.

Environment friendly
Internet banking is also environmentally friendly. Electronic transmissions require no
paper, reduce vehicle traffic and are virtually pollution-free. They also eliminate the
need for buildings and office equipment.

2.4.THE 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

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internet banking before signing up. Some of the disadvantages of internet banking
include:

Bank relationship
A traditional bank provides the opportunity to develop a personal relationship with
that bank.
Getting to know the people at your local branch can be an advantage when a
customer needs a loan or a special service that is not normally offered to the public.
A bank manager usually has some discretion in changing the terms of customer's
account if the customer's personal circumstances change. They can help customers
solve problems such as reversing an undeserved fee. The banker also will get to
know the customer and his unique needs. If the customer has a business account,
this personal relationship may help if the customer needs capital to expand. It’s
easier to get the bank’s support if there is someone who understands customer's
business and vouch for his operating plan.

Transaction issues
Sometimes a face-to-face meeting is required to complete complex transactions and
address complicated problems. A traditional bank can host meetings and call in
experts to solve a specific issue. Moreover, international transactions may be more
difficult (or impossible) with some direct banks. If a customer deposits cash on a
regular basis, a traditional bank with a drive-through window may be more practical
and efficient.

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 guaranteed 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.

Connectivity
Another issue is that sometimes it becomes difficult to note whether your transaction
was successful or not. It may be due to the loss of net connectivity in between, or
due to a slow connection, or the bank’s server is down

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Chapter 3:
Different types of banking

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3.1. CORE BANKING SOLUTION or CBS:

Core Banking is a banking service provided by a group of networked bank branches where
customers may access their bank account and perform basic transactions from any of the
member branch offices. Core banking is often associated with retail banking and many
banks treat the retail customers as their core banking customers. Businesses are usually
managed via the Corporate banking division of the institution. Core banking covers basic
depositing and lending of money.
Normal Core Banking functions will include transaction accounts, loans, mortgages and
payments.

19
Banks make these services available across multiple channels like ATMs, Internet banking,
mobile banking and branches.
The core banking services rely heavily on computer and network technology to allow a bank
to centralise its record keeping and allow access from any location. It has been the
development of banking software that has allowed core banking solutions to be developed.

3.2. ATM BANKING:

Full-service banking, 24 hours a day.

Make banking more convenient with ATMs and debit card.


Convenient Self Service
Deposits – Cash and check deposits can be made at most BBVA Compass ATMs.
Withdraw Funds – The cash you need when you need it.*
Transfer funds – Move funds between checking accounts and savings accounts that
are linked to your debit card.
Account Management
Check Balance – View your account balance before you make a withdrawal.
Mini Statement – Receive a print out of your transaction history and account
balances.
Customizable
Fast Cash – Set standard ATM withdrawal amounts.
Receipt Options – Set whether or not you will receive a receipt when you make
transactions.
Preferred Language – Choose between English or Spanish.

3.3. DIGITAL WALLET:

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Nowadays, we find ourselves carrying cold hard cash less and less because you can
just as easily make your purchase with payment cards, and track your spending
online. Plus, it’s more secure than carrying $350 to buy the latest iPad (MINI).
Certain payment or loyalty cards also let you earn rewards or entries to contests, but
they do add up. They make your wallet unnecessarily thick and heavy. Perhaps it is
time to swap the system again; this time, for something that you have always been
carrying around: your smartphone
Digital wallets can help take you there. They are smartphone apps that hold your
payment and loyalty card information. Google Wallet and Apple’s Passbook are two
of the more popular ones we often hear about, but if they are not your fancy, there
are plenty of other digital wallets that carry perks and benefits that you may prefer.

3.4. DIGITAL CASH:

21
Digital Cash acts much like real cash, except that it’s not on paper. Money in your
bank account is converted to a digital code. This digital code may then be stored on
a microchip, a pocket card (like a smart card), or on the hard drive of your computer.
The concept of privacy is the driving force behind digital cash. The user of digital
cash is assured an anonymous transaction by any vendor who accepts it. Your
special bank account code can be used over the internet or at any participating
merchant to purchase an item. Everybody involved in the transaction, from the bank
to the user to the vendor, agree to recognize the worth of the transaction, and thus
create this new form or exchange.

3.5. MOBILE BANKING:


Mobile banking is the act of doing financial transactions on a mobile device (cell
phone, tablet, etc.). This activity can be as simple as a bank sending fraud or usage
activity to a client’s cell phone or as complex as a client paying bills or sending
money abroad. Advantages to mobile banking include the ability to bank anywhere
and at any time. Disadvantages include security concerns and a limited range of
capabilities when compared to banking in person or on a computer.

3.6. E-TICKETING:
An electronic ticket (commonly abbreviated as e-ticket) is a digital ticket. The term is
most commonly associated with airline issued tickets. Electronic ticketing for urban
or rail public transport is usually referred to as travel card or transit pass. It is also
used in ticketing in the entertainment industry.
An electronic ticket system is a more efficient method of ticket entry, processing and
marketing for companies in the railways, flight and other transport and entertainment
industries.
On 1 June 2008, the industry moved to 100% electronic ticketing and the paper
ticket became a thing of the past. Apart from substantial cost savings for the industry
of up to US$3bilion per year, ET is also more convenient for passengers who no
longer have to worry about losing tickets and can make changes to itineraries more
easily. United Airlines was the first airline to issue electronic tickets, back in 1994. A
decade later however, only 20% of all airline tickets were electronic. The industry
was missing out on an opportunity to save costs and make travel for passengers
easier. In June 2004, IATA set an industry target of 100% ET in four years. At the
time, many believed this was an unrealistic goal. Evolving standards, uncertainty
about the return on investment and scepticism about the customer acceptance of
paper in parts of the world were some of the reasons why e-ticketing hadn’t taken
off.

3.7. ONLINE DEMAND DRAFT:


A demand draft is a negotiable instrument similar to a bill of exchange. A bank
issues a demand draft to a client (drawer), directing another bank (drawee) or one of

22
its own branches to pay a certain sum to the specified party (payee). A demand draft
can also be compared to a cheque. However, demand drafts are difficult to
countermand. Demand drafts can only be made payable to a specified party, also
known as pay to order. But, cheques can also be made payable to the bearer.
Demand drafts are orders of payment by a bank to another bank, whereas cheques
are orders of payment from an account holder to the bank.

3.16. OTHER E-SERVICES:

CHAPTER 4:
ABOUT YONO APPLICATION

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INTRODUCTION:
YONO (You Only Need One) is an integrated digital banking platform offered
by State Bank of India (SBI) to enable users to access a variety of financial and other
services such as taxi bookings, online shopping, or medical bill payments. [1] YONO is
offered as a smartphone app for both Android and iOS.

YONO was launched on Friday 24 November 2017 by Arun Jaitley, the Finance
Minister of India.

YONO offers services from over 60 e-commerce companies including online


shopping, travel planning, taxi booking, and online education and offline
retail. [2] YONO also offers conventional mobile banking services such as bank
account opening, fund transactions, cashless bill payments, and loans.

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FEATURES:

Account refers to the User's Savings Bank Account and/or Current Account and/or
Fixed Deposit Account or any other type of account so designated by the Bank to be
eligible account(s) for the operations through the use of Digital Banking including any
Demat account opened with NSDL or CDSL.
Digital Account refers to the user’s savings bank account opened digitally using the
new yono App and Portal
Bank refers to the State Bank of India, a body corporate constituted as per the State
Bank of India Act, 1955 and having its Corporate Office at "State Bank Bhavan",
Madame Cama Road, Nariman Point, Mumbai - 400 021(which expression shall,
unless it is repugnant to the subject or context thereof, includes its successors and
assigns).
Customer refers to Customer named in the Application Form and / or the person who
logs in to yono App and Portal using his ID & Password/mPIN [and shall, where the

25
context requires, includes any authorized representative of the Customer, accepted
by the Bank].
Confidential Information refers to the information obtained by the customer from/or
through the Bank for availing various services through Digital Banking.
Digital Banking means the digital services provided by the Bank to the Users on its
digital platform through mobile application and/or web portal to access account
information, products and other services (including Transaction of financial and non-
financial in nature) as may be provided by the Bank from time to time in accordance
with this terms and conditions.
Instruction means any request or instruction that is received by the Bank from the
customer through Digital Banking Services.
Loan Account means any loan applied from the yono App and Portal
Other Holders of Demat Account refers to such holders other than the first named
holder of the Demat Account.
Username refers to the login ID that a customer sets for themselves to access the
online services
Login Password refers to the alphanumeric password that Customers sets
themselves against the Username.
mPIN refers to the six digit numeric password that Customers set themselves
against the login credentials for easy access.
One Time Password (OTP) or SMS Password refers to one time 8 digit (or such
other higher digits as may be approved by the Bank) pass code that would be sent to
a customer's mobile number registered on the Bank's record.
Personal Information refers to the information about the User submitted to the Bank
in connection with the Digital Banking Service.
The Site means yono Portal
Apply Online Services are the Bank's services which provide the facility of applying
for account opening and loan product through the yono App and Portal
"Applicant" refers to an applicant named in the Application Form and shall, where the
context requires, include Co-applicant(s) with the Applicant.
"Application" refers to an Applicant's Account opening/ Loan application to the Bank
through yono App and Portal. The Application Form referred herein includes but not
limited to forms submitted/digitally in the yono App and Portal
"Eligibility" refers to an applicant's eligibility under the particular loan scheme. The
eligibility displayed to an applicant in the yono App and Portal depends upon the
inputs provided by the applicant and will be subject to the final assessment by the
Bank’s official.
In- Principle approval letter refers to the letter conveying the indicative eligibility of
the Customer for the loan and will be subject to the final assessment by the Bank’s
official.

26
"Scheduling an Appointment" means submission of a request by the applicant to the
Bank for document collection, document execution and/or KYC verification, etc.
Third party product refers to any product and/or service of a party other than the
Bank which is offered through the yono App and Portalor the Bank as an
intermediary.
User refers to a registered customer of the Bank using the Digital Banking and
Financial services.

3. APPLICATION FOR Digital Banking Services


The Bank may offer Digital Banking Service to selected customers at its discretion.
The customer would need to be Internet Banking user or have access to the Internet.
The acceptance of the application and the acknowledgement thereof does not
automatically imply the acceptance of application for Digital Banking Services. The
Bank may advise from time to time the Internet software such as Browser, which are
required for using Digital Banking Services. There will be no obligation on the part of
the Bank to support all the versions of this Internet software.
Though the Digital Banking facility is very convenient, and the Bank uses the
advanced technological/security features on account, the technological knowledge
and discipline required for operating such accounts and because of the inherent risks
involved in case of failure to comply the confidentiality and other obligations of the
customers, all users are advised to familiarize themselves with the correct and
proper use of Digital Banking Service and the terms and conditions mentioned
herein, before opting or using the Digital Banking facility.
Existing customers can access the yono App and Portal by using their existing
Internet Banking (INB) login and password. New Users who are not SBI customers
will have to open a Digital Savings account and complete the creation of Username
and Password. Users who are SBI customers and have temporary Username and
Password or ATM/Debit card will proceed their registration by entering the temporary
user credentials or Debit card details and proceed with creation of new Username
and password.

4. DIGITAL BANKING SERVICES


The Bank shall endeavor to provide to the User through Digital Banking services
such as inquiry about the balance in his/her account(s), details about transactions,
statement of account, request for issue of cheque-books, request for transfer of
funds between accounts of the same User and other accounts, international fund
transfer, creation of Deposits (e-TDR/e-STDR/e-RD), Mobile Top Up, DTH
Recharge, Utility Bill Payments, view income tax statement (Form 26AS), Home
Loan Interest Certificate, TDS enquiry, Generation of Form 15G/H, Overdraft against
Fixed Deposit, Payment of Central and State Government taxes, payment of fees of
schools/colleges/universities and many other facilities as the Bank may decide to
provide from time to time. These facilities shall be offered in a phased manner at the
discretion of the Bank. The Bank at its sole discretion may also make

27
additions/deletions to the Digital Banking Services being offered without giving any
prior notices or reasons. The availability /non-availability of a particular service may
be advised through the yono App and Portal of the Bank or written communication or
any other mode as the bank thinks fit. The Bank shall take reasonable care to,
ensure the security of and prevent unauthorized access to the Digital Banking
Services using technology reasonably available to the Bank. The User shall not use
or permit to use Digital Banking Service or any related service for any illegal or
improper purposes.
The User would be allotted a User-id and a Password (to be used at the time of
login) by the Bank in the first instance. The User will be required to mandatorily
change the User-Id and password assigned by the Bank on accessing Digital
Banking Services for the first time. Alternatively user can set a mPIN for easy access
to their mobile application.
As a safety measure the User shall change the password as frequently as possible,
at least once in 90 days. In addition to User-id and Password the Bank may, at its
discretion, advise the User to adopt any other means of authentication including but
not limited to smart cards, One Time SMS Password and/or Digital certification
issued by Bank, licensed or approved Certifying Authorities or vendors.
The User shall not attempt or permit others to attempt accessing the account
information stored in the computers and computer networks of the Bank through any
means other than the Digital Banking Services.
Non INB customers will have to approach branch and obtain their temporary user
name and password. Non INB customers who have debit card also can proceed with
creation of Login name and password to create new User Name and Password for
Digital Banking portal.
Login ID and Password for Non INB Customers and Services offered by yono App
and Portal need to be included- Non INB Customers can gain access to Digital
Banking by creating login credentials using their Debit/ATM card details, or by
obtaining temporary internet credentials from their operating branch.

5. USER-ID AND PASSWORD/mPIN:


The USER shall:
 keep the User-id and Password totally confidential and not reveal them to any
other person including any person representing or claimed to be representing
the Bank;
 Create a password of at least 8 characters long and shall consist of a mix of
alphabets, numbers and special characters which must not relate to any readily
accessible personal data such as the User's name, address, date of birth,
telephone number, vehicle number, driving license etc. or easily guessable
combination of letters and / or numbers;
 Commit the User-id and Password to memory and not record them in a written
or electronic form.
 Not let any unauthorized person have access to his computer or leave the
computer unattended while using Digital Banking Services.

28
 Not disclose/reveal his/her personal or confidential information to anyone over
email/SMS/phone call even if it’s purportedly from State Bank of India. SBI or
any of its representatives will never send emails/SMS or call over phone
seeking the personal information like username, passwords, One Time SMS
passwords etc. of any user. For tips on safe usage of password(s), "Password
Management" displayed as a link on the login page of yono App and Portal may
be referred.

(A) Resetting of User-id/Password/mPIN


User cannot reset the set User Id on yono App and Portal
In the event of forgetting Password, User can retrieve it by using the ‘Having
Problem logging in?’ link available on login page of yono App and Portal
In the event of forgetting mPIN, User can retrieve it by using the ‘Having Problem
logging in?’ link available on login page of yono App and Portal

(B) Non-liability of the bank in case of Compromise of User-id and Password/ mPIN
The User agrees and acknowledges that Bank shall in no way be held responsible or
liable if the User incurs any loss as a result of compromise of User-id and
password /mPIN by the User himself or User has failed to follow the Digital Banking
Service instructions as published by the Bank on the site from time to time. User
agrees to fully indemnify and hold harmless Bank in respect of the same.

(C) Locking of User-id


Digital Banking Password / User-id/mPIN shall get locked after a number of incorrect
attempts, up to such number (at present 3 failed attempts) as may be decided by the
Bank from time to time. The same shall be available on the next day. In case of
emergency, the User-id/password/mPIN can be unlocked online by changing the
login password using the User can retrieve it by using the ‘Having Problem logging
in?’ link available on login page of Digital Banking.

(D) Deactivation of User-id


The Bank has the discretion to deactivate a Digital Banking User-id, if the same has
not been used for a period defined by the Bank. Also the Bank has the right to
deactivate the Digital Banking login of User due to unsatisfactory behavior in the
account.

6. CYBER CRIME
The Internet per se is susceptible to various cybercrimes like phishing, vishing (Voice
phishing), SMSing (phishing through SMS), compromise of User's system security
etc., that could affect Payment Instructions / other instructions to the Bank. Whilst the
Bank shall endeavor to protect the interest of the customers, there cannot be any
guarantee from such cybercrimes and other actions that could affect Payment
Instructions / other instructions to the Bank including but not limited to delay or failure
in processing the instructions. The User shall separately evaluate all such risks and
the Bank shall not be held responsible for the losses arising out of such cybercrimes.
The User understand that doing an digital Banking transaction at a Cybercafé/shared

29
computer terminal is risky and shall avoid using the services of a Cybercafé/shared
computer terminal to do any Digital Banking transactions. While accessing Bank's
Digital Banking site from Bank's e-Corner or Kiosk, the User should ensure the
confidentiality of his login credentials and should not allow anyone near him or take
their help to complete transactions.
Users are advised to take special care in respect of the mobile number/SIM card in
respect of user's mobile number registered with the Digital banking facility. In case of
loss of mobile handset bearing the number registered with the Bank or in case of
change in the mobile number, the user is advised to take special care to ensure that
the said number is not misused to carrying out unauthorized transactions in the
Digital banking facility. The users are also advised to take appropriate steps for
preventing the mobile service provides from issuing duplicate SIM card without the
proper authentications of the user.
7. SOFTWARE COMPATIBILITY
The Bank may advise from time to time the internet software such as Browser,
Operating System for mobile App which are required for using Digital Banking
Services. There will be no obligation on the part of the Bank to support all the
versions of such Internet software.

8. ERRORS OF OMMISION & COMMISSION

The filling in of applicable data for transfer of funds and/or issue of Demand Drafts,
cheques would require proper, accurate and complete details.
For instance, the customer is aware that:
 he/she would be required to fill in the correct account number of the person to
whom the funds are to be transferred;
 he/she would be required to fill in the correct Credit Card number while making
Credit Card payments;
 he/she would be required to fill in the correct details such as the name of the
payee (who may or may not have an account with the Bank), mailing address,
amount of the Demand Draft and the city/state where the Demand Draft is
payable.
In the event of any inaccuracy in this regard, the funds could be transferred to
incorrect accounts or the Demand Draft maybe incorrectly issued or sent to a wrong
address and there is no guarantee of recovery of the same thereafter. The User shall
therefore take all care to ensure that there are no mistakes and errors and that the
information given by him/her to the Bank or fed in the site in this regard are error
free, accurate, proper and complete in all aspects.. The User agrees to indemnify the
Bank from any loss due to an error on his/her part. As per Regulatory instructions
credit will be effected based solely on the beneficiary account number information
and the beneficiary name particulars will not be used there for. Hence the Bank shall

30
not be responsible for any wrong credit on account of mistake in the account number
provided by the User for availing such services.
On the other hand in the event of the User's account receiving an erroneous credit
by reason of a mistake committed by some other person or for any other reason, the
Bank shall be entitled to reverse the erroneous credit at any time whatsoever without
his/her consent. The User shall be liable and responsible to the Bank and accede to
accept the Bank's instructions without questions for any unfair or unjust gain
obtained by him/her as a result of the same.

9. TECHNOLOGY RISKS
The site of the Bank may require maintenance and during such time it may not be
possible to process the request of the customers. This could result in delays and/or
failure in the processing of instructions.
The User understands that the Bank disclaims all and any liability, whether direct or
indirect, whether arising out of loss or otherwise arising out of any failure or inability
by the Bank to honor any customer instruction for whatsoever reason.

10. JOINT ACCOUNTS


The Digital Banking Services will be available in case of Joint accounts only if the
mode of operation is indicated as 'either or survivor' or 'anyone or survivor' or 'former
or survivor' or 'latter or survivor'. For 'former or survivor' account, Digital Banking
facility may be available only to the 'former'. For 'latter or survivor' account, Digital
Banking facility may be available only to the 'latter'. For 'either or survivor' and
'anyone or survivor' accounts, Internet Banking may be provided to each one of the
joint account holders on their request. In case of 'either or survivor' and 'anyone or
survivor' accounts if any of the joint account holder(s) gives "stopping of operations"
instructions for the use of Internet Banking Service in writing , on any of the Internet
Banking Services will be discontinued for the User. In case of 'former and survivor'
account, such instructions will not be issued by other account holder.
In respect of joint accounts, even if any one of the account holders only obtains and
operates the internet banking facility, the terms and conditions mentioned herein will
be applicable and binding on both or all the account holders.

11. ACCOUNT IN THE NAME OF MINORS


In case of accounts opened for and on behalf of minors, the internet banking facility
shall be made available as per the account opened under the specific product/variant
and the natural/legal guardian will be responsible for the actions/transactions done in
these accounts along with the account holder.

12. DEMAT ACCOUNT HOLDERS


The Internet Banking Services of the Bank for Demat Account is available to a
customer who has a Demat Account and Bank Account in his name (i.e. the first
holder of the Demat Account and the Bank Account to be same).
The Bank reserves its rights to consider any deviation to the above at its sole
discretion. The Demat Account will be attached to the User-id and will be accessible

31
through OnlineSBI. Wherever the Demat Account is jointly held by the Customer, the
Bank will construe that the other holders of the Demat Account have authorized the
first holder to either query on the account or initiate transaction on the account and it
will be binding on them.
Due to the fact that the Bank receives Demat Information from NSDL and CDSL, it is
important to check the current position with your respective service provider.
All information coming from NSDL/CDSL is provided on 'as is' basis without warranty
of the correctness or authenticity of such information. The Bank makes no
representation and disclaims all express, implied and statutory warranties of any kind
to the user and/or any third party including warranties as to accuracy, timelines,
completeness, merchantability or fitness of the information for any particular
purpose.

13. FUTURE ACCOUNTS


In the event of future accounts opened by the User under the same CIF, then the
terms and conditions shall automatically apply to such further use of
the internet digital banking by the User.

14. LIMITS
The User is aware that the Bank may from time to time impose maximum and
minimum limits including daily limits on transfer of funds that may be transferred or
amount of the Demand Draft/ IOI (Inter Office Instruments) that can be issued by
virtue of the payment instructions given hereunder. The User acknowledges that the
same is to reduce the risks on him/her. For instance, the Bank may impose
transaction restrictions within particular periods or amount restrictions within a
particular period or even each transaction limits. The User shall be bound by such
limits imposed and shall strictly comply with them. The Bank shall put an appropriate
message in this regard on the relevant page or the website/App.

15. CHARGES
The Bank at its discretion from time to time may specify charges for usage of Digital
Banking Services and/or additional charges for selected services which is published
on the Website of the Bank (www.sbi.co.in)/ App and also at the digital Banking site
and any further changes in the charges/fees shall also be notified on the
above sites places. All out of pocket expenses where-ever applicable will be borne
by the User. The User and the other account holder(s)( in case of joint accounts)
hereby authorize(s) the Bank to recover all charges related to Digital Banking
Services as determined by the Bank from time to time by debiting the User(s)
account or any of joint account holder'(s) account(s).

16. MAINTENANCE OF SUFFICIENT BALANCE


User shall ensure that there are sufficient funds (or drawing power for credit facilities)
in any Account for transactions through the Digital Banking, and the Bank shall not
be liable for any consequences arising out of its failure to carry out the instructions
due to inadequacy of funds and/or credit facilities provided always that Bank shall at
its sole discretion, be entitled to carry out the instructions notwithstanding such

32
inadequacy without seeking the prior approval from or notice to user and the user
shall be responsible to repay with interest the resulting overdraft, advance or credit
thereby created and for all related to costs and charges at the rates as may be
determined by the Bank. Bank may, at its discretion, levy penal charges for non-
maintenance of the minimum balance. Bank may withdraw the provision of Digital
Banking, wholly or partly, if at any time the amount of deposit falls short of the
required minimum as aforesaid and / or if the service charges remain unpaid, without
giving any further notice to the user and / or without incurring any liability or
responsibility whatsoever by reason of such withdrawal.

17. RIGHT TO SET OFF AND LIEN


Bank shall have the right of set off and lien, irrespective of any other lien or charge,
present as well as future, on the account(s) held by user(s) or in any other account,
whether in single name or joint names to the extent of all outstanding dues,
whatsoever arising as a result of the Digital Banking services extended to and/or
used by the user.

18. FUNDS TRANSFER


The User shall not use or attempt to use Digital Banking Services for funds transfer
without sufficient funds in the relative Digital Banking Services account or without a
pre-existing arrangement with the Bank for the grant of an overdraft. The Bank will
endeavor to effect such funds transfer transactions received through Digital Banking
Services provided there are sufficient funds available in the User's account. The
Bank shall not be liable for any omission to make all or any of the payments or for
late payments due to circumstances beyond the control of the Bank. In the event of
overdraft created due to oversight/inadvertently, the User will be liable to pay the
interest on such overdrawn amount, as decided by the Bank from time to time.

A) FUNDS TRANSFER TO OTHER ACCOUNTS/VISA CARDS


The User accepts that he/she will be responsible for keying in the correct account
number/other particulars of the beneficiary for the funds transfer request. In no case,
the Bank will be held liable for any erroneous transactions incurred arising out of or
relating to the User entering wrong/incorrect/incomplete account number, information
of the beneficiary and/or any other particulars.
If funds transfer is made available to the User, it may be used for transfer of funds
between users own accounts and/or from User account to accounts belonging to
third parties maintained at the Bank and/or at other Banks. In the event, such
transfer of funds is to accounts belonging to third parties maintained at any other
Bank, which falls under the network of Reserve Bank of India's Electronic Fund
Transfer System, the same shall be governed by the terms and conditions applicable
to National Electronic Fund Transfer ("NEFT") and Real-Time Gross Settlement
System ("RTGS") of the Reserve Bank of India as provided in the Site as well as
corporate website of the Bank (www.sbi.co.in), and the website of Reserve Bank of
India (www.rbi.org.in).
In case of fund transfer through IMPS, the same shall be governed by terms and
conditions applicable to IMPS as provided in the site as well as (www.npci.org.in).

33
B) BILL PAYMENTS
The User agrees and accepts the Digital Banking Services as provided by the Bank
at his/her requests to carry out his/her bill payments through Digital Banking
Services of the Bank as made available to him/her from time to time. If the bill
amount exceeds the maximum limit set up by the User for "Auto Pay", the bill will be
set for manual payment. The User has to provide correct identification details as
registered with the biller. In case of any change in the identification details, it is the
User's responsibility to register the changes immediately. Any dispute on bill details
will be settled directly by the User with the Biller and the Bank's responsibility is
limited to provision of information only. The User shall make payments at least a
few* working days prior to the due date of the bill. The User further agrees that it
shall solely be the User's responsibility to schedule payments at least a few* working
days prior to the due date of the bill. In the event of late payment, the User shall be
liable for late payment charges and other consequence as may be enforced by the
Biller. The User has no objection whatsoever to the billing company providing his/her
billing details to the Bank. (* a few working days may mean 1 to 5 working days,
depending upon biller and varies from biller to biller.)
The User unconditionally agrees that he/she shall not hold the Bank liable for:
 Such transactions that are carried out on his/her instructions by the Bank in
good faith.
 Not carrying out such instructions where the Bank has reason to believe (which
decision of the Bank shall not be questioned/disputed by the User) that the
instructions are not genuine or are otherwise unclear, improper, vague or
doubtful
 Accepting instructions given by any one of the users in case of joint accounts.
 For any loss or damage incurred or suffered by him/her due to any error, defect,
failure or interruption in the provision of bill payment services arising from or
caused by any reason whatsoever.
 Withdrawing/suspending the facility wholly/partially. However the Bank will
endeavor to notify the user through its website or through any legally recognized
medium of communication or otherwise as found suitable by the Bank.
The user agrees that the record of instructions given and transactions with the Bank
shall be conclusive proof and binding for all purposes and can be used as evidence
in any proceedings.

C) MERCHANT PAYMENTS
The Bank provides the facility of payment for transactions executed on Internet
through different sites. The Bank will execute such transactions and will be
responsible for transferring the amount debited from the User's account to the
Service /merchants' account. The Bank shall not be held responsible for failure of
such transactions. In no event shall the Bank be held responsible/liable for any
informational content provided on any such site or for any deficiency in the
services/products offered by such sites.

19. STANDING INSTRUCTIONS/SCHEDULED PAYMENTS

34
The User can set 'Standing Instructions' or 'Schedule Payments' as on a required
date i.e. the date on which the Users account shall get debited in the functionality
where it is available. If the User wishes to modify / cancel this 'Standing Instruction /
Scheduled Payments', the same should be done at least one day prior to the
schedule date. Users are advised to keep track of all such 'Standing Instructions' or
'Scheduled Payments' and the Bank shall not be responsible for not effecting any
such transactions for whatsoever reasons.

20. TRANSACTION PROCESSING TIME

Instantaneous Transactions
All the instructions for instantaneous transactions received before the cut off time of
the specified transaction, will be given effect to instantaneously unless until some
processing work or maintenance activity is being done or some unavoidable
circumstances beyond the control of the Bank occur. : Inter Bank Fund Transfer,
Intra Bank Fund Transfer, International Fund Transfer, stop payment etc.

Non-Instantaneous Transactions
In respect of Non-instantaneous transactions and transactions requiring manual
intervention by the branch or Contact Centre, the Bank would endeavor to give effect
to such transactions at the earliest: e.g.: Demand Draft Request, resetting of profile
password, Updating or change of mobile number etc.

21. DOCUMENTS REQUIRED FOR TRANSACTION PROCESSING


The User shall be responsible for submitting necessary documents and information
as the Bank may require along with any request for any service under Digital
Banking. If any request for a service is such that it cannot be given effect to unless it
is followed up by requisite documentation, the Bank shall not be required to act on
the request until it receives such documentation from the User

22. AUTHORITY TO THE BANK


Banking transactions in the User's account(s) are permitted through digital Banking
platform only after authentication of the User-id and password of the User. The User
irrevocably and unconditionally authorizes the Bank to access all his/her account(s)
for effecting banking and other transactions performed by the User through the
Digital Banking Services. The instructions of the User shall be effected only when
such information is in accordance with the prescribed procedure. The User grants

35
express authority to the Bank for carrying out the banking transactions
performed/requested by him/her through Digital Banking Services. The Bank shall
have no obligation to verify the authenticity of any transaction received from the User
through Digital Banking Service or purported to have been sent by the User via
Digital Banking Services, other than by means of verification of the User-id and the
Password. The display or printed output that is generated by the User at the time of
operation of Digital Banking Services is a record of the operation of the Internet
access and shall not be construed as the Bank's record of the relative transactions.
The Bank's own records of transactions maintained through computer systems or
otherwise shall be accepted as conclusive and binding for all purposes. All
transactions arising from the use of Digital Banking Services to operate a joint
account, shall be binding on all the joint account holders , jointly and severally,
notwithstanding that one amongst such joint account holders only operates the
accounts through Digital Banking Services.
The User irrevocably agrees to maintain safety and complete confidentiality of User-
id and the Password. The User further agrees that the Bank shall in no event be
liable for the transactions carried out through User-id and Password and that user
shall not be entitled to disown such transactions.
The Bank may at any time without giving notice or reasons, suspend or terminate all
or any of the Digital Banking Services or their use by the User.

23. ACCURACY OF INFORMATION


A customer shall provide such information as the Bank may from time to time
reasonably request for the purposes of providing the services. The User is
responsible for the correctness of information supplied to the Bank through the use
of Digital Banking Services or through any other means such as electronic mail or
written communication. The Bank accepts no liability for the consequences arising
out of erroneous/incomplete/incorrect information supplied by the User. If the User
suspects that there is an error in the information supplied to the Bank by him/her,
he/she shall advise the Bank at the earliest. The Bank will endeavor to correct the
error wherever possible on a 'best efforts' basis. If the User notices an error in the
account information supplied to him/her through Digital Banking Service, he shall
advise the Bank at the earliest. The Bank will endeavor to correct the error promptly
and adjust any interest or charges arising out of the error. It is clarified that the
information that may be sought by the Bank mentioned in the clause shall not include
the User-id, Password or one time authentication code made available to the User.

24. LIABILITY OF THE USER


The User shall be liable for all consequences on account of:
 Non-compliance of terms and conditions mentioned herein.
 If he/she has breached the Terms and conditions or contributed or caused the
loss by negligent actions such as the following:
o In disclosing or failing to take all reasonable steps to prevent disclosure
of the User-id and/or password to anyone including Bank staff and/or

36
failing to advise the Bank of such disclosure immediately and thereby
blocking the Digital Banking transaction in his account.
o Not advising the Bank immediately about unauthorized access to or
erroneous transactions in the account(s) through the Digital Banking
Services.
 Notwithstanding anything contained in clause (2) above, the User shall be liable
for the consequences arising out of disclosure of User-id and/or Password to
anyone, unauthorized access to or erroneous transactions in his account, even
if he inform the Bank about such things immediately or in a reasonable time of
occurrence of the same.
 The User shall be liable and responsible for all transactions carried out through
the User-id and Password of the User.
 In the event of inadvertent compromise of User-id and/or Password by the User,
the User has to block/lock his Digital Banking facility through the link "Lock User
Access" or other applicable link available in the site.
 As many of the services through the Digital are authenticated or permitted by
the One Time Password sent to the customer's registered mobile number, it will
be sole responsibility and obligations of the User to secure his mobile number
registered with the Bank and also to ensure that the OTP or other messages
emanated from the Bank are not accessed by any person.

25. LIABILITIES OF THE BANK


 The Bank shall not be liable for any unauthorized transactions in the account(s)
through the use of Digital Banking Services which can be attributed to the
fraudulent or negligent conduct of the User.
 The Bank shall not be liable to the account holder(s) for any damages
whatsoever whether such damages are direct, indirect, incidental, consequential
and irrespective of whether any claim is based on investment or any other loss
of any character or nature whatsoever and whether sustained by the account
holder(s) or any other person, if Digital Banking access is not available in the
desired manner for reasons including but not limited to natural calamity, fire and
other natural disasters, legal restraints, faults in the telecommunication network
or Internet or network failure, software or hardware error or any other reasons
beyond the control of the Bank.

37
 The Bank shall endeavor to take all possible steps to maintain secrecy and
confidentiality of its customer account(s)/information but shall not be liable to the
account holder(s) for any damages whatsoever caused on account of breach of
secrecy/confidentiality due to reasons beyond the control of the Bank.
 Bank at its discretion, for valid reasons, may refuse to execute any instructions /
loan request placed by the User.
 The loan eligibility is tentative, and the Bank assumes no liability for such quote,
which is based on the inputs provided by the User. Further, loan eligibility may
vary depending upon the Bank’s assessment, changes in interest rate, margin,
processing fee and/or terms and conditions of the respective loan scheme.
 The validity period of such "In-principle Approval" would be guided by the
features of the product / scheme for which the Customer has submitted his loan
application. Final sanction of the loan will depend on satisfactory KYC
compliance, Income of the applicant/co-applicant, his/their credit worthiness,
satisfactory status of documents submitted by the applicant, acceptance of the
Collateral Security and/or Third Party Guarantee, wherever applicable and such
other norms governing the product / scheme and as may be prescribed by the
Bank from time to time.
 Appointments scheduled by the User through the app / web portal would be
tentative only. While the Bank will endeavor to attend to the Customer at the
stated time Bank may have to, for valid reasons, vary / reschedule such
appointments.
 "Upload Document" functionality is provided for expediting the loan process.
The Bank may ask for original and/or photo copy of such document for
verification and/or at the time of processing of loan application. Bank will not use
such document for any other purpose like updating KYC details etc.
 The Bank will in no way be held responsible or liable for delay, failure and/or
untimely delivery of SMS password and/or SMS Alerts due to but not limited to
network congestions, network failure, systems failure or any others reasons
beyond the reasonable control of the Bank or its service provider(s).
 Notwithstanding anything contained herein, where Bank has reason to believe
that any transaction or marking of liens, have been fraudulently made
(hereinafter referred to as a "suspect transaction"), Bank shall be entitled to
withhold payment pertaining to such suspect transaction in accordance with
regulatory laws relating to Money Laundering or otherwise. If Bank determines
after due enquiry and investigation that the transaction is a valid transaction and
not a suspect transaction, Bank shall release such withheld payment
subsequently.

26. INDEMNITY

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The User agrees to indemnify, hold harmless and defend Bank, its officials, service
providers and affiliates against any loss and damages that may be caused from or
relating to :
 Breach of terms and conditions mentioned herein.
 Improper use of the Digital Banking services by the User/customer.
 Any claims made by third parties arising from issues related to any failure, delay
or interruption of the products and/or services as provided by the Bank's Digital
Banking Services.
 The use of products/ Digital Banking Services in any manner which violates the
terms and conditions or otherwise violates any law, rule, conditions or
regulation.
 Any consequences arising out of the disclosure of User-id and Password of the
User to any third parties.
 Any consequences on account of the failure of the User to maintain the
confidentiality of User-id, Password, OTP (SMS Password), etc. of the User.

27. DISCLOSURE OF PERSONAL INFORMATION


The User agrees that the Bank or its service providers may hold and process his/her
Personal/Technical Information on Computer/Mobileor otherwise in connection with
Digital Banking Services as well as for statistical analysis.
The User agrees that the Bank may collect user system related information The User
also agrees that the Bank may disclose, in strict confidence, to other institutions,
such Personal Information as may be reasonably necessary for reasons inclusive of,
but not limited to, the following:
 For participation in any electronic clearing network
 In compliance with legal and/or Reserve Bank of India's directive
 For fraud prevention purposes.
For the purpose of this clause, it is clarified that the 'User system related information'
mentioned above shall not include any confidential information such as the User-id
and/or Password of the User. The Bank will not collect or disclose such details to any
person.

28. AMENDMENTS
 The Bank has the absolute discretion to amend or supplement any of the Terms
and conditions at any time, without prior notice. However the Bank will endeavor
to notify the changes by posting it on the website or through advertisement or
any other means as the Bank may deem fit which will be binding on the User.
The existence and availability of the new functionalities/facilities/features will be
notified to the User as and when they are made available. By using these new
services, the User agrees to be bound by the terms and conditions applicable
there for.

29. NON-TRANSFERABILITY

39
 The grant of facility of Digital Banking Services to a User is non-transferable
under any circumstances and shall be used by the User only.

30. PROPRIETARY RIGHTS


The User acknowledges that the software underlying the Digital Banking Services as
well as other Digital Banking related software which are required for accessing
Digital Banking Services is the legal property of the Bank/respective service
providers. The permission given by the Bank to access Digital Banking Services will
not convey any proprietary or ownership rights in the above software. The User shall
not attempt to modify, translate, disassemble, decompile or reverse engineer the
software underlying Digital Banking Services or create any derivative product based
on the software.

31. PROPRIETARY AND INTELLECTUAL PROPERTY RIGHTS


The copyright, trademarks, logos, slogans and service marks displayed on the yono
App and Portal are registered and unregistered intellectual property rights of Bank or
of respective intellectual property right owners.
Nothing contained on the yono App and Portal should be construed as granting, by
implication, estoppel, or otherwise, any license or right to use any intellectual
property displayed on the website(s) without the written permission of Bank or such
third party that may own the intellectual property displayed on the website(s).
Bank grants the right to access the App / website(s) to the User and use the Digital
Banking Services in accordance with the terms conditions mentioned herein. The
User acknowledges that the Services including, but not limited to, text, content,
photographs, video, audio and/or graphics, are either the property of, or used with
permission by, Bank and/or by the content providers and may be protected by
applicable copyrights, trademarks, service marks, international treaties and/or other
proprietary rights and laws of India and other countries, and the applicable Terms
and Conditions.
The User should assume that everything he/she views or reads on the yono App and
Portal (collectively referred to as "content") is copyrighted/ protected by intellectual
property laws unless otherwise provided and may not be used, except as provided in
these terms and conditions, without the prior written permission of Bank or the
relevant copyright owner.
Any breach of the restrictions on use provided in these terms is expressly prohibited
by law, and may result in severe civil and criminal penalties. Bank shall be entitled to
obtain equitable relief (including all damage, direct, indirect, consequential and
exemplary) over and above all other remedies available to it, to protect its interests
therein.

32. THIRD PARTY LINKS


The yono App and Portal may provide hyperlinks to websites not controlled by Digital
Banking / Bank and such hyperlinks do not imply any endorsement, agreement on,
or support of the content, products and / or services of such websites. The Bank

40
doesn't editorially control the content, products and /or services on such websites
and shall not be liable, in any nature whatsoever, for the access to, or the inability to
access to, or the use, inability to use or content available on or through such
websites.

33. TERMINATION OF DIGITAL BANKING SERVICES


The User may request for termination of the Digital Banking Services facility any time
by giving a written notice. The User will remain responsible for transactions made on
his/her account(s) prior to the time of such cancellation of the Digital Banking
Services.
The Bank may at its sole discretion, at any time without giving notice or reasons
suspend or terminate all or any of the Digital Banking services offered by the Bank or
there use by the User including for reasons such as:
 Breach of these terms and conditions by the User.
 Knowledge or information about the death, bankruptcy or legal incapacity of the
User.

34. NOTICES
 Notices under these Terms and Conditions to the customer may be given
through any medium of communication as may be deemed appropriate by the
Bank i.e. Bank's website (www.sbi.co.in / yono portal) or In App
notification, email, SMS, public notification at Branches, or through newspapers,
radio, TV etc. Such notices will have the same effect as a notice served
individually to each customer.

39. USE OF DIGITAL BANKING SERVICE


The User agrees that these terms and conditions will constitute the reasonable
security practices and procedures to be followed by the Bank in respect of the Digital
Banking Service and its use by the User and this document will be construed as an
agreement between the Bank and User in this regard. The User further agrees that
by availing the Digital Banking Service of the Bank, the User accepts and agrees
with these terms and conditions including all its amendments from time to time, and
the User reiterates such acceptance and agreement at each time any transaction is
carried out on the basis of the User-id and Password of the User.
Booking
 Booking of e-Tickets can be done on any route in India for any type of train
under quota of General/Ladies/Senior Citizen only.
 A maximum of six berths/seats can be booked at a time for a specified journey
between any two stations served by the train subject to distance restrictions in
force.
 An individual user can book a maximum of 06 tickets in a calendar month

41
 Ladies quota (LD) is generally earmarked in Sleeper class (SL) and second
sitting (2S).
 In case of tickets booked through internet no concession is permitted except
Senior Citizen.
 General Enquiries available:
a. Accommodation available for a train/date combination b. Current Status of
reserved tickets c. Time table d. Train fare e. Trains available between a
given pair of stations
 Auto-Up gradation is available to the next higher class on optional basis.(As per
railway rules).
 Passenger can get the SMS of e-Ticket booking confirmation on mobile number
he wants by inserting that Mobile Number in the Mobile Number box of e-Ticket
booking page.
Fare
The total fare of the ticket booked on the platform will include the following
components:
 Base fare: This is simply the base fare of the train ticket. Children and senior
women are charged 50% of the adult base fare. Senior men are charged 70% of
the base fare.
 Railway charges: These are Reservation Charges, Superfast Charges, Other
Charges, Tatkal Charges (if any) and Service Tax.

 IRCTC Charges:

Class Service Charges

SL/2S Rs. 20.00+S.T

1AC/2AC/3AC/CC/3E/FC Rs. 40.00+S.T

The charge is subject to change any time. Please refer to IRCTC portal for updated
charges.
 SBI fee: We charge a service fee of Rs. 20 plus S.T. for Non–AC classes and
Rs. 40 plus S.T. for AC classes, for bringing to you a fast and friendly interface
to search and book tickets.
 Payment Gateway (PG) fee: Payment gateways charge us a certain amount for
processing your transaction. IRCTC also charges a similar transaction fee, if
you choose to book through them. Payment gateway fee for using

42
i) SBI Internet Banking is Rs. 10/- plus Service Tax
ii) SBI Debit/Credit Card: Maximum fee is 1.8% plus service tax of the ticket amount.
 Any other charges as defined by IRCTC or Indian Railway from time to time.

Chapter 5:

Data Analysis and Interpretation


43
Figure 1:
Different age groups using net banking

44
Sales

15
25

35

50

below 20 20-35 35-50 above 50

INTERPRETATION:
Out of 114 respondents 25 respondents are in below 20 age group, 50 respondents
in 20-35 age group, 35 respondents in 35-50 age group and 15 respondents in
above 50 age group. This shows with the help of a Pie-Chart.

Figure 2: USE OF ONLINE BANKING

45
use of online banking

NEVER
1

YEARLY
10

OCCASIONA
LY
20

MONTHLY
35

WEEKLY
45

DAILY
55

0 10 20 30 40 50 60

INTERPRETATION:
Now a days Most of the people use the services of banks regular transaction. They
also transact with banks on monthly basis, weekly or occasionally. This chart shows
the habits of people in case of use of online banking.

Figure 3: OCCUPATION BASE ANALYSIS

46
OCCUPATION BASE ANALYSIS
student self- employee employee others

9%
19%

40%

32%

INTERPRETATION:
Among respondents 19% are students, 32 % are self-employed, 40% are employees
and 9% are others.

Figure 4: education about YONO

47
education about YONO

yes no

48
Benefits seen by customers

benefits seen by customers


35

30
30

25

20

18
15 16

13
10 12

0
24*7 business hours convienience not to move anywhere easy to use saving time

INTERPRETATION:

Most of the respondents felt that the “24*7 BUSINESS HOURS” provided by the
internet banking is the highest motivating factor for an individual to use internet
banking and rest prefer ”CONVENIENCE”, “NOT TO MOVE” etc.

49
50
Chapter 6:
Findings, conclusion and limitations

51
6.1. THE MAJOR FINDINGS OF THE PRIMARY SURVEY ARE:
It is very interesting to see that 71 people have accounts in SBI, AXIS and ICICI
banks. But SBI
BANK has more customers than others.

24*7 BUSINESS HOURS is the main benefit which online banking users have seen
among other options.

Most of the online banking users have a tendency to spend Rs.1000 or below this
amount in a single transaction.

Users got excellent services from ATM BANKING, BALANCE ENQUARY, BILLS
PAYMENT, ONLINE SHOPPING and ONLINE RECHARGE etc. and other services
have not excellent performance like that.

Among 100 respondents 46 people said that their bank educated them about the
several Online banking services and on the other hand 54 people said that their bank
did not educate them about their net banking services. So it is very controversial
matter.

Most of the users have no requirement for daily or monthly base transactions, they
prefer monthly base transactions.

This study revealed that most of the user’s claim that they aware of security threats
and they took recommend steps to secure the net banking.

Maximum number of respondents claim that their banks do not charge extra charges
for net banking facilities.

Out of 100 respondents 69 people told that they will continue online banking
activities in future.

Most of the respondents claim that LACK OF AWARENESS, LESS COMPUTER


FACILITIES and
LESS INTERNET CONNECTION are the main causes for non-accessibility of online
banking by majority of people in their area.

People also claim that ATM SERVICE, BILL PAYMENT SERVICE and INTERNET
SECURITY SERVICE should be modified in near future. Some people also vote for
CUSTOMER FEEDBACK service.

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CONCLUSION AND LIMITATION:
In a country like India, there is need for providing better and customized services to
the customers.
Banks must be concerned about the attitudes of customers with regard to
acceptance of internet banking. The importance of security and privacy for
acceptance of internet banking has been noted in many earlier studies and it was
found that people claim that they have knowledge about security issues but they
have no clear idea about all kind frauds. The present study shows that customers
are more reluctant to accept new technologies or methods that might contain little
risk. Hence, banks should design the website to address security and trust issues.
The survey was conducted with 114 people of Nagpur area. So we can’t say that this
is the real trends of net banking of whole the country.
People are not confident enough to whether to rely completely on online banking.
There is hesitancy in their minds with regards to preference. So they use both the
online and offline banking.
At the time of survey when I give questionnaires to people, they very casually fill it
without think of the depth of the study. Another point is people are not disclose their
personal data truly.
Due to shortage of time data can’t be collected form all types of people.
The study was conducted with the help of students, service holders and business
men etc.
The study reveals that ATM BANKING, BILL PAYMENT, ONLINE SHOPPING and
ONLINE RECHARGE etc. are performed by so many respondents but it does not
reflect that NEFT, RTGS or DMAT services are not performed by the people.

53
8.3. RECOMMENDATIONS:
We can see the time is changing and we are now accepting technology but there is
still a lot of perceptual blocking which hampers the growth its normal tendency of
technology, that why the growth of internet banking is very primitive in nature.

Recommendations to banks:
Internet banking facilities must be made available in all banks as well as in all
Branches

Banks should develop their services not only in town areas but also in village areas.
Banks should install more and more ATMs in both urban and rural areas.

There is a another problem I faced at the time of conducting this survey that the
respondents complained that there are so many ATM machines in this locality but
most of the ATMs have normally not working. So bank should check the machines
are working or not.

Fair dealing with the customers is more preferable. The stuff should be cooperative,
friendly and must be capable to understand the problems of the customers.
Banks should give proper training to customers to use net banking.
Banks should always update their security systems and create a trust in the mind of
customers towards security of their accounts.

Banks should make their sites more user friendly. Customers should be motivated to
use internet banking facilities more.

Banks are now using two factor authentication i.e. password and OTP but they
should improve that and using three factor authentication because hackers
sometimes break the two factor authentication system.

54
Chapter 7:

Bibliography

55
56
BIBLIOGRAPHY
www.google.com
www.wikipedia.in
www.sbionline.com
www.sbi.co.in
www.linkedin.com

57
Questionnaire

QUESTION 1: HOW OFTEN DO YOU USE INTERNET PER WEEK?


1. ONE HOUR 2.TWO HOURS
3. THREE HOURS 4.MORE THAN THREE HOURS

QUESTION 2: IN WHICH BANK DO YOU HAVE AN ACCOUNT?


1. AXIS 2. ICICI
3. HDFC 4. BOI

QUESTION 3: DO YOU AVAIL OF ALL BANKING FACILITIES ONLINE?


1. YES 2.NO.

QUESTION 4: IS YOUR BANK OPERATED UNDER CORE-BANKING FACILITY?


1. YES 2.NO 3.CAN’T SAY.

QUESTION 5: HOW FREQUENTLY DO YOU USE ONLINE BANKING SERVICES?


1. DAILY
2. WEEKLY
3. MONTHLY
4. OCCASIONALL
5. YEARLY
6. NEVER

QUESTION 6: HOW MUCH DO YOU SPEND FOR A SINGLE ONLINE


TRANSACTION?
1.0-1000 1000-5000 5000-10000 10000-20000 ABOVE 20000
2. 1000-5000
3. 5000-10000
4. 10000-20000
5. ABOVE 20000

QUESTION 7: DOES YOUR BANK EDUCATE YOU ABOUT THE ONLINE


BANKING SERVICES
BEING OFFERED?
YES
NO
CAN’T SAY.

QUESTION 8: ARE YOU AWARE OF THE SECURITY THREATS AND FRAUDS IN


ONLINE BANKING AND FAMILIAR WITH THE METHODS OF SECURED ONLINE
TRANSACTIONS?
YES
NO
CANT’T SAY

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