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CHAPTER1-OBJECTIVE

The main objective of this project is to get the knowledge about electronic
banking services offered by bank. To discuss about the various parts of electronic
banking.

Purpose of selecting this topic for project is because today¶s world is

directly or indirectly related with the banks and today¶s banks are mostly
computerized so it is interesting that banks are offering their services online and its
customers also doing their transaction through electronic medias such as mobile,
internet etc. Whatever services are offered by the bank through internet is E-
banking.

Important things to know the following things in detail about e-banking.

V To know e-banking transactions.

V To know the services offered by the bank online.

V To know the public interest about e-banking.

V To know about effects of e-banking in India.

V To know about the future of e-banking.

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CHAPTER 2-INTRODUCTION TO E-BANKING

Looking for a more convenient way to bank? Don't like standing in lines after
work just to deposit a check, apply for financial services, or setup a new account?
Let Internet banking provide the convenience needed to make your banking easier
and quicker.

Internet banking has become widely accepted throughout the world.

Because of the internet, the banking industry is now able to reach its users right IT
on their homes. Internet banking is able to provide services to individuals, small
business and corporations online. internet banking uses the most secure structure
that's available to protect its users.

Online banking: what is it? In short it¶s the ability to link your PC to a
modem and communicate with your bank account.

No queues, no waiting at cash machines to check your balance and no

worries about whether standing orders or bills are processed on time. The benefits
of online banking are clear. You may view your accounts when it suits you to do so
not when the bank is open! You have direct control over payments that are to be
made from your account and you may transfer funds to and from savings accounts
into your current account. You may check your balance, view transaction records
and communicates with the bank via e-mai1.

The recent trends show that most banks are shifting from a product-
centric model to a customer-centric model as they develop their new e-banking
capabilities. They have, over a long time, been using electronic and
telecommunication networks for delivering a wide range of value added products

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and services. The delivery channels include direct dialup connections; private
networks, public networks etc and the devices include telephone, Personal
Computers including the Automated Teller Machines, etc. With the popularity of
PCs, easy access to Internet and World Wide Web (WWW), bank increasingly use
Internet as a channel for receiving instructions and delivering their products and
services to their customers. This form of banking is generally referred to as
Internet Banking, although the range of products and services offered by different
banks vary widely both in their content and sophistication.

There are two ways to offer Internet banking. First, an existing bank
with physical offices can establish a web site and offer Internet banking in addition
to its traditional delivery channels. Second, a bank may be established as a
branchless, Internet only. Broadly, the levels of banking services offered through
INTERNET can be categorized in three types:

(1)The Basic Level Services use the banks websites which disseminate information
on different products and services offered to customers and members of public in
general. It may receive and reply to customers queries through e-mail,

(2) In the next level are Simple Transactional Websites which allow customers to
submit their instructions, applications for different services, queries on their
aCC0u11t balances, etc, but do not permit any fund-based transactions on their
accounts,

(3) The third level of Internet banking services are offered by Fully Transactional
Web sites which allow the customers to operate on their accounts for transfer of
funds, payment of different bills, subscribing to other products of the bank and to
transact purchase and sale of securities, etc.

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DEFINITION:

³Internet banking´ refers to systems that enable bank customers to access

accounts and general information on bank products and services through a personal
computer (PC) or other intelligent device.

E-banking is automated delivery of new and traditional banking products

and services directly to customers through electronic, interactive communication
channels. E-banking includes the systems that enable financial institution
customers, individuals or businesses to access accounts, transact business, or
obtain information on financial products and services through a public or private
network, including the Internet.

Electronic banking is an umbrella term for the process by which a customer

may perform banking transactions electronically without visiting a brick-and-
mortar institution. The following terms all refer to one form or another of
electronic banking: personal computer (PC) banking, Internet banking, virtual
banking, online banking, home banking, remote electronic banking, and phone
banking. PC banking and Internet or online banking is the most frequently used
designations. It should be noted, however, that the terms used to describe the
various types of electronic banking are often used interchangeably.

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CHAPTER 3 - HISTORY OF E-BANKING

Indian banking industry is now in a middle age of an IT revolution. When

we talk about the history of E-banking banks was not computerized earlier after
some period banks take use of some electronic means in banking transactions.

In India banks was started to develop from early 90¶s. In 90¶s period
government introduce new banking/financial reforms that were help the bank. At
that time liberalization and globalization measures create a new type of
environment for the banks. Services and products like Banking, Tele-Banking,
Internet Banking, Web Banking, and Internet-Banking etc. are very popular think
in the normal banking transaction. Banks uses this kind of services to compete with
other banks. Banks offers innovative and attractively packaged technology based
services to their customers.

In the early 80s, a high-level committee was formed under the

chairmanship of Dr. C. Rangarajan, then Governor of RBI, to draw up a phased
plan for computerization and mechanization in the banking industry over a five
year time frame of 1985-89. Having gained experience in the earlier mode of
computerization, the second Rangarajan committee constituted in 1988 drew up a
detailed perspective plan for computerization of banks and for extension of
automation to other areas like funds transfer, e-mail, BANKNET, SWIFT, ATMs,
Internet banking etc.

This has led to increasing total banking computerization in the Indian

banking industry. This is helping the bank to simplify their work as compare to
what they do earlier. New private sector banks and foreign banks have an edge

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over public sector banks as far as implementation of technological solutions is

concerned. However, the later are in the process of making huge investment in
technology.
The Government of India enacted the Information Technology Act, 2000,
generally known as IT Act, 2000, with effect from the 17th October 2000 to
provide legal recognition to electronic transactions and other means of Electronic
commerce.

March 2001. 1.1 million Active subscriber

2008-2009V 18.8 million active subscriber

Private and foreign banks have been the early adopters of e-banking while
the Public sector banks are also beginning to hold on to the competition. ICICI
Bank and HDFC Bank have taken a lead in introducing Internet-banking in India.
ICICI Bank is the first one to have introduced Internet banking
1.V Started first time in 1996.
2.V Only for limited range of services such as access to account information.
3.V Then funds transfer between its branches.
4.V It started E-trading.
After ICICI, Citibank, Indus India Bank and HDFC Bank were the early ones to
adopt the technology in 1999. Now days each and every bank do the E-banking.

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CHAPTER 4- FEATURES OF E-BANKING:

Banks have an established reputation for providing simple, easy to use solutions
for all their banking and saving needs. Their e-banking service provides a whole
range of benefits, whether you're new to the Internet or an experienced surfer.
Some of the distinctive features of E-Banking are:

BANKING AT A CLICK OF MOUSE:

You pay bills without writing checks one does not need to write checks
anymore with the useV of Internet banking technology. All of the services that an
internet bank provides require that one uses the computer, clicks will a mouse, and
types a few words to access the banking services. There is no writing involved,
which also presents the advantage that no checks will have to be written and
therefore there may never be any 111istakes involving incorrect signatures on
checks, and thus, no bouncing of checks.

SECURITY:

An Internet bank uses the latest methods of Internet banking security to

make sure that the transaction information is transmitted safely & securely. It
addresses the problem of online security at three levels. Data transmission between
web browser & web server are protected by the SSL protocol, which is the de-facto
standard for online secure transaction. The mechanism of digital certificates of
digital signatures is used to authenticate both the bank's website and the client's
identity.

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The second layer of security, but not the last, is provided at the server side
by putting both the web server and the application server behind a firewall,
isolating the private banking network from the Internet. The third security level is
used on top of the SSL protocol, and this protects fund transfers and outgoing
payment as the most critical banking transaction.

Finally, a security watchdog constantly monitors web server assess and

recognizes failures that could indicate a possible unauthorized attempt to log into
an account. Money, when withdrawn, is sent to the customer via mail, and
therefore there is no risk of a customer leaving the bank and being robbed.

LESS EXPENSE:

Apart from saving on the expenses of visiting the physical location of a

traditional bank, the internet bank has many other cost advantages. It lets the bank
cut on service delivery costs. Internet technology is cheap as the micro processing
chips used by the computers are extremely cheap. Much cheaper than even the
telephone, which is an older form of communication technology; the internet
provides tremendous cost advantages to people.

Less people are needed to mange the Internet banks. Numerous factors- including
competitive cost, customer service, and demographic considerations are therefore
motivating banks to evaluate their technology and assess their electronic commerce
an Internet banking strategies. Banks can take advantage of this low cost banking
phenomenon as starters.

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Here is an estimate of cost:

The cost of banking transaction on the Internet is just one sent against 1 US
dollar in a brick & mortal bank Internet banking could be a great revenue- booster.
And best of all, the cost advantage experienced by the internet banks translates into
much lower costs to the customers.

PRAMOTION:

E-banking is an effective medium of promoting themselves. When the bank offers

the services to its customers they can easily offer many other kinds of services.
Internet is the best way to promote banks.

OTHER BENEFITS:

1.V No matter the customer in the world, on-line banking is just a click away.
Balance inquiries, requests for services, issuing instruments, passing
instructions etc. from anywhere in the world are possible.
2.V Managing funds in real time and most importantly 24 hours a day and 7 days
a week.
3.V Convenience acts as tremendous psychological benefits all the time.
4.V Brings down cost of banking to the customer over a period of time.
5.V Cash withdrawal from any branch or ATM.
On-line purchase of goods and services including on-line payment for the
same.
6.V It removes the traditional geographical barriers as it could reach out to
customers of different countries/legal jurisdiction. This has raised the
question of jurisdiction of law/supervisory system to which such transactions
should be subjected.
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CHAPTER 5 -WHY E-BANKING?

In this fast moving world every individual and organization look for
convenience, quickness and accuracy for each and every activity in their life. So
Internet banking is one of the answers changing the phase of traditional banking
and thereby providing customer with what they want. This is possible only because
of the technological development. So let's see how it helps people as well as
organization to carry out there day to day banking transactions.

TIME CONSUMPTION:

Banking on the Internet saves customers time and money. Internet banking
sites offer critical advantages over brick and mortal branches. The convenience of
around the clock access of the Internet bank IT on any location is one advantage,
which is an important one. Afar greater ad-v2.lltage is that Internet bank offers an
integrated medium for managing all of their financial affairs. So for all his banking
needs, a customer may visit his Internet bank, and if he has to ask a lot of
questions, he may save time looking up information on the Internet than to
physically meet all the concerned people who may explain banking to him.

QUICKNESS:

Internet banking is done quickly. Internet technology has changed the social,
financial and economic structure of the world by and helped the banking industry
improve upon efficiency. At a single website on the internet, a customer may be
able to access information and manage his finances on the internet with the speed
that is incomparable to the cumbersome process visiting the bank, meeting people,
telling them what he needs, and getting his work done. He may not have to leave

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his office to go to a bank and especially for a private business; he may even access
his Internet bank late at night without waiting for the morning to do his work.

CONVENIENCE:

An Internet bank is a software solution for providing secure access to banking

services over the Internet. An online bank is a virtual branch of a traditional bank,
allowing its customers to manage their accounts in real time 7 days a week 24
hours a day. Internet banking is a banking ensuring the access to banking services
from any browser-enabled device, including PC, personal digital assistants,
palmtop computers, public web terminals and internet-phones. Internet banking
provides great value in terms of customer intimacy, convenience, inexpensiveness
and coherence in banking. It provides all in one phenomenon for a customer from
any computer in the world without having to visit a bank branch.

ACCESS:

Your account is accessible anytime and anywhere a customer is in Europe or

Asia, he may be able to access the Internet bank account he created in Manchester,
all he needs is a computer and an internet connection along with a browser to visit
his bank. He may conveniently visit his Internet bank from a cyber cafe while
traveling he can go to his online bank using Ills laptop on an airplane. The Internet
bank has revolutionized banking services.

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CHAPTER -6 E-BANKING SERVICES PROVIDED

BY DIFFERENT BANKS IN INDIA
1.V Credit card Payment
Pay your Credit card dues through this option.
2.V Statement Download
you can download your account statement onto your PC for the period of 5
months from the given date
3.V Change Customer profile
you can update your mailing address and all your communication from bank will
go to this new address.
4.V FUNDTRASFER
Transfer funds between your accounts, even if they are in different
branches/cities. You can also transfer funds to any person having the respective
Bank account anytime, anywhere, using Third Party Funds Transfer option.
5.V New Fixed Deposit Request
Open a Fixed Deposit Account on the Internet. Just give details regarding the
account from which you want to transfer funds, the amount and terms for the
Fixed Deposit, the branch and the relevant maturity instructions.
6.V Fixed Deposit Inquiry
Access details of your Fixed Deposit Account such as Principal Balance, Term of
Deposit, Rate of Interest, Maturity Date, Maturity Amount and Instructions for
Payment.
7.V Demand Draft Request
Issue a DD from your account at special rates. Just select the account to be
debited from and give the details of the amount, location and beneficiary. The
bank will even have the Demand Draft couriered to you at your mailing address.

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CHAPTER-7 PROCEDURE FOR OPENING AND

OPERATING ONLINE BANKING ACCOUNT
Any person who is having savings account or current account with the
respective bank can access his bank account through net banking. No separate
account has to be opened by existing customers to access their accounts through
net banking. However some formalities has to be completed to register for this
service, which can be done either by calling up on phone banking if the customer
has Telephone Identification Number (TIN) or by filling up the e-age banking
form which is available in the bank¶s website and the completed form has to be
duly submitted at the nearest branch of the bank. If still some assistance is required
by the customer it is provided by the bank.
As far as the cost factor is concerned, the customer need not worry as this
service is provided by almost all banks free of cost to all types of accounts.
However, all minimum balance/deposit amount requirements of relevant accounts
will need to be honored. Using net banking, the customer can do the following
functions sitting in front of the PC without visiting the bank personally. Broadly,
the functions are divided into two parts they are, Queries and Transactions.
Queries include the following:
XV Check your Balance
XV See your Statement
XV Inquire about cheque status
XV Ask for a Statement
XV Ask for a Cheque Book
XV Inquire about your Fixed Deposit
XV Inquire about your TDS details
XV See your Demat Account

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CHAPTER -8 SECURITY PROVIDED FOR E-

BANKING ACCOUNT

Since ages, the basic function of a bank has been to provide security to the
money of the customers. The customers deposit their money with the bank to
prevent theft and in the belief that their money will be safe and secured in the banks.
Even though drastic changes have taken place in the field of technology which has
indirectly changed the devices used by banks for its operations, the basic function of
the banks to provide safety and security to the customer¶s money has not yet
changed. In contrast, an addition is made to this function i.e. the banks not only
provide security to the customer¶s money but also keep the transactions of the
customer confidential. Thus, the customer can be relieved from the fear about his
transactions being viewed by others.

Now, Customer can be assured of complete privacy when they use Net
Banking facility. Banks have built several checks to safeguard customer¶s Net
Banking transactions. Before customer again access to his account, he will be asked to
enter his unique customer ID and IPIN (password) to verify his identity. To maximize
the security and confidentiality of his transactions, his password is made not
accessible by anyone, not even bank employees.
When customer banks with his bank on the Internet, he is always in a secure
zone. To ensure the security of his transactions, banks use a technology called
Secured Socket Layer (SSL), which involves scrambling of the information between
customer and the Bank. If an unauthorized user tries to access customer¶s account by
keying in various combinations while trying to guess the password, customer¶s
account will automatically get locked. Moreover, when customer logs-in to Net

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Banking, his last date and time of log-in will be displayed so that he can make sure
that nobody has accessed his account.
In addition to these online security features, some banks have in place a
dedicated team to monitor the access to the web server and to prevent unauthorized
access. These features work together to maximize the security of customer¶s banking
transactions. However, in order to ensure complete security, the customer should
remember to log-out of Net Banking after he has completed his transactions.

There are some special benefits of using net banking they are as follows:

ÔV Free Stop Cheque

ÔV Free Statement Request
ÔV Free Fund Transfer
ÔV Free Bill Pay

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PASSWORD FOR ACCESSING THE ACCOUNT

In case, the customer is not able to read some of the digits of his password
then, the customer can apply for regeneration of password. This is because the
customer is the only person having access to the account so; regeneration is the
only way out. Regeneration is a request made by the customer for another
password (it is also called as IPIN). Calling on phone banking or can either do it by
downloading an e-age form and submitting it by duly completing it to the nearest
branch.

In case, a customer is having two accounts, and is accessing net banking for
both of them having two customer IDs. But he is unable to remember that which
password is for what then he may have a problem. For security reasons, banks do
not print the Customer ID or account number on the password mailer sent to him.
The only solution, therefore, is to try the two combinations of the Customer IDs
and passwords that he has. The other option is to link both his accounts to one
Customer ID and apply for a fresh password.

Sometimes, the net banking password of the customer does not function. There
could be various reasons for the IPIN (password) not functioning they are as
follows:

1.V The IPIN (password) is case-sensitive and may not have been entered in the
same lower or upper case as mentioned in the IPIN envelope sent to the
customer
2.V The account has not been accessed for more than 180 days

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If the customer forgets his IPIN (password) then the only option with him is to
apply for another password.

If the customer is willing to change the password, then to change IPIN

(password), he has follow the instructions given below

ÔV Log onto the bank site of the respective bank.

ÔV Go to the Net Banking Log-in area and key in his Customer ID and
password. The password is case-sensitive. So he has to key in the same
lower or upper case as mentioned in the IPIN envelope.
ÔV After he has logged in, he can change his password using the change
password option. The password should be alpha-numeric and less than or
equal to 15 characters.

The customer may sometimes get the massage access denied. Reasons why the
customer could be locked out for may be as follows:

ÔV customer have not used the Net Banking facility for more than 180 days
ÔV customer has entered the wrong IPIN (password) thrice and could be a user
error on his part
ÔV If the IPIN has been forgotten, then bank has no choice but to regenerate on
an authenticated request from the customer.

The customer has already changed his password but is unable to use either his old
or new password this may be because of either of the following reasons:
Customers has not keyed in the new IPIN ( password ) correctly OR After
five unsuccessful attempts, access to NET BANKING has been disabled for.

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a.V If customer remembers his IPIN then he can submit a request for enabling
his access to Net Banking
b.V If customer has forgotten his IPIN he will have to submit a request for
regeneration.

For blocking of IPIN or unregistration, bank requires a written instruction

from customer to block his IPIN.

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CHAPTER-9 E-BANKING RISKS

1.V CREDIT RISKS:

It is the risk that a counter party will not settle a debt for full value, either when
due or at any time thereafter. Banks may not be able to properly evaluate the
creditworthiness of the customer while extending credit through remote banking
procedures, which could enhance the credit risk. Presently, bank generally deals
with more familiar customer base. Facility of electronic bill payment in internet
banking may cause credit risk if a third party intermediary fails to carry out its
obligations with respect to payment. Proper evaluation of the creditworthiness of a
customer and audit of lending process are a must to avoid such risk.

Another facility of internet banking is electronic money. It brings various types

of risks associated with it. If a bank purchases e-money from an issuer in order to
resell it to a customer, it exposes itself to credit risk in the event of the issuer
defaulting on its compulsion to exchange electronic money. If not properly
managed, these aspects can significantly increase credit risk.

V Ãerifying the customer¶s identity for on-line credit applications and

executing an enforceable contract;
V Monitoring and controlling the growth, pricing, underwriting standards, and
ongoing credit quality of loans originated through e-banking channels;
V Ãaluing security and perfecting liens over a potentially wider geographic
area. Collecting loans from individuals over a potentially wider geographic
area.

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2.V OPERATIONAL RISK:

Operational risk, also referred to as transactional risk is the most common form
of risk associated with Internet-banking. It takes the from of inaccurate processing
of transactions, non-enforceability of contracts, compromises in data integrity, data
privacy and confidentiality, unauthorized access I intrusion to bank's systems and
transaction, etc.

Transaction/Operations risk arises from fraud, processing errors, system

disruptions, or other unanticipated events resulting in the institution¶s inability to
deliver products or services. This risk exists in each product and service offered.
The level of transaction risk is affected by the structure of the institution¶s
processing environment, including the types of services offered and the complexity
of the processes and supporting technology.

Such risks can arise out of weaknesses in design, implementation and

monitoring of banks information system. Besides inadequacies in technology,
human factors like negligence by customers and employees, fraudulent activity of
employees and crackers / hackers, etc. can become potential source of operational
risk. Often, there is thin line of difference between operational risk and security
risk and both terminologies are used interchangeably.

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3.V STRATEGIC RISK:

This risk is associated with the introduction of a new product or service.

Degree of this risk depends upon how well the institution has addressed the various
issues related to development of a business plan, availability of sufficient resources
to support this plan, credibility of the vendor (if outsourced) and level of the
technology, etc.

For reducing such risk, banks need to conduct proper survey, consult experts
from various fields, establish achievable goals and monitor performance. Also they
need to analyze the availability and cost of additional resources, provision of
adequate supporting staff, proper training of staff and adequate insurance coverage.
Due diligence needs to be observed in selection of vendors, audit of their
performance and establishing alternative arrangements for possible inability of a
vendor to fulfill its obligation. Besides this, periodic evaluations of new
technologies and appropriate consideration for the costs of technological up
gradation are required.

A financial institution¶s board and management should understand the risks

associated with e-banking services and evaluate the resulting risk management
costs against the potential return on investment prior to offering e-banking
services. Poor e-banking planning and investment decisions can increase a
financial institution¶s strategic risk.

In managing the strategic risk associated with e-banking services, financial

institutions should develop clearly defined e-banking objectives by which the
institution can evaluate the success of its e-banking strategy.

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4.V LEGAL RISK:

Compliance and legal issues arise out of the rapid growth in usage of e-
banking and the differences between electronic and paper-based processes. E-
banking is a new delivery channel where the laws and rules governing the
electronic delivery of certain financial institution products or services may be
ambiguous or still evolving.

Laws and regulations governing consumer transactions require specific types

of disclosures, notices, or record keeping requirements. These requirements also
apply to e-banking, and federal banking agencies continue to update consumer
laws and regulations to reflect the impact of e-banking and on-line customer
relationships.

Other reasons for legal risks are uncertainty about the validity of some
agreements formed via electronic media and law regarding customer disclosures
and privacy protection. A customer inadequately informed about his rights and
obligations, may not take proper precautions in using Internet banking products or
services, leading to disputed transactions, unwanted suits against the bank or other
regulatory sanctions.

5.V LIQUIDITY RISK:

Funding and investment-related risks could increase with an institution¶s e-

banking initiatives depending on the volatility and pricing of the acquired deposits.
The Internet provides institutions with the ability to market their products and
services globally. But Internet-originated deposits have the potential to attract
customers who focus exclusively on rates and may provide a funding source with
risk characteristics similar to brokered deposits. An institution can control this
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potential volatility and expanded geographic reach through its deposit contract and
account opening practices, which might involve face-to-face meetings or the
exchange of paper correspondence.

Similarly banks dealing in electronic money face interest rate risk because of
adverse movements in interest rates causing decrease in the value of assets relative
to outstanding electronic money liabilities. Banks also face market risk because of
losses in on-and-off balance sheet positions arising out or movements in market
prices including foreign exchange rates. Banks accepting foreign currency in
payment for electronic money are subject to this type of risk.

6.V REPUTATIONAL RISK:

An institution¶s decision to offer e-banking services, especially the more

complex transactional services, significantly increases its level of reputation
risk. Some of the ways in which e-banking can influence an institution¶s
reputation include:

V Loss of trust due to unauthorized activity on customer accounts,

V Failure to deliver on marketing claims,
V Failure to provide reliable service due to the frequency or duration of
service disruptions,

The main reasons for this risk may be system or product not working to the
expectations of the customers, significant system deficiencies, significant security
breach (both due to internal and external attack), inadequate information to
customers about product use and problem resolution procedures, significant
problems with communication networks that impair customers' access to their
funds or account information especially if, there are, no alternative means of
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account access. Such situation may cause customer discontinuing use of product or
the service. Directly affected customers may leave the bank and others may follow,
if the problem is publicized.

7.V RISK OF UNFAIR COMPETITION:

Internet banking is going to intensify the competition among various banks. The
open nature of internet may induce a few banks to use unfair practices to take
advantage over rivals. Any leaks at network connection or operating system, tech.
may allow them to interfere in a rival bank's system.

Thus, one can find that along with the benefits internet banking carries various
risks for bank itself as well as banking system as a whole. The rapid pace of
technological innovation is likely to keep changing the nature and scope of risks
banks face. These risks must be balanced against the benefits. Supervisory and
regulatory authorities are required to develop methods for identifying new risks,
assessing risks, managing risks and controlling risk exposure.

8.V CROSS-BORDER RISKS:

Internet banking is based on technology that, by its very nature, is designed to

extend the geographic reach of banks and customers. Such market expansion can
extend beyond national borders. This causes various risks.

It includes legal and regulatory risks, as there may be uncertainty about legal
requirements in some countries and jurisdiction ambiguities with respect to the
responsibilities of different national authorities. Such considerations may expose
banks

To legal risks associated with non-compliance of different national laws and

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regulations, including consumer protection laws, record keeping and reporting

requirements, privacy rules and money laundering laws.

If a bank uses a service provider located in another country, it will be more

difficult to monitor it thus, causing operational risk. Also, the foreign-based service
provider or foreign participants in internet banking are sources of country risk to
the extent that foreign parties become unable to fulfill their obligations due to
economic, social or political factors.

Cross-border transaction accentuates credit risk, since it is difficult to appraise an

application for a loan from a customer in another country compared to a customer
from a familiar customer base. Banks accepting foreign currencies in payment for
electronic money may be subjected to market risk because of movements in
foreign exchange rates.

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CHAPTER-10 RISK MANAGEMENT OF E-

BANKING ACTIVITIES

We already saw that what the risks available in the e-banking are, now
we will discuss about how to manage this kind of risk and prevent the e-banking
transactions.
V E-BANKING STRATEGY:
Financial institution management should choose the level of e-banking
services provided to various customer segments based on customer needs and
the institution¶s risk assessment considerations. Institutions should reach this
decision through a board-approved, e-banking strategy that considers factors
such as customer demand, competition, expertise, implementation expense,
maintenance costs, and capital support. Some institutions may choose not to
provide e-banking services or to limit e-banking services to an informational
website.

Financial institutions should periodically re-evaluate this decision to ensure

it remains appropriate for the institution¶s overall business strategy. Institutions
may define success in many ways including growth in market share, expanding
customer relationships, expense reduction, or new revenue generation. If the
financial institution determines that a transactional website is appropriate, the
next decision is the range of products and services to make available
electronically to its customers. To deliver those products and services, the
financial institution may have more than one website for various business lines.

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V COST BENEFIT ANALYSIS AND RISK ASSESSMENT:

Financial institutions should base any decision to implement e-banking products

and services on a thorough analysis of the costs and benefits associated with such
action. Some of the reasons institutions offer e-banking services include:

V Lower operating costs

V Greater geographic diversification
V Greater geographic diversification.

V MONITORING AND ACCOUNTABILITY:

Once an institution implements its e-banking strategy, the board and management
should periodically evaluate the strategy¶s effectiveness. A key aspect of such an
evaluation is the comparison of actual e-banking acceptance and performance to
the institution¶s goals and expectations. Some items that the institution might use
to monitor the success and cost effectiveness of e-banking strategy include:

XV Revenue generated,
XV Website availability percentages,
XV Customer service volumes,
XV Number of customers actively using e-banking services,
XV Percentage of accounts signed up for e-banking services, and
XV The number and cost per item of bill payments generated.

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V AUTHENTICATING E-BANKING CUSTOMERS:

E-banking introduces the customer as a direct user of the institution¶s
technology. Customers have to log on and use the institution¶s systems.
Accordingly, the financial institution must control their access and educate
them in their security responsibilities. While authentication controls play a
significant role in the internal security of an organization, this section of the
booklet discusses authentication only as it relates to the e-banking customer.

The authentication method a financial institution chooses to use in a specific e-

banking application should be appropriate and ³commercially reasonable´ in light
of the risks in that application. Whether a method is a commercially reasonable
system depends on an evaluation of the circumstances. Financial institutions
should weigh the cost of the authentication method, including technology and
procedures, against the level of protection it affords and the value or feeling of the
transaction or data to both the institution and the customer. What constitutes a
commercially reasonable system may change over time as technology and
standards evolve.
Authentication methods involve confirming one or more of three factors:

V Something only the user should know, such as a password or PIN;

V Something the user possesses, such as an ATM card, smart card.
V Something the user is, such as a biometric characteristic like a fingerprint or
iris pattern.

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CHAPTER-11 RESERVE BANK OF INDIA

GUIDELINES FOR

E-BANKING IN INDIA

Banks and financial institutions in India are in the process of Web-enabling

their services in order to offer Internet banking to its customers. The RBI has
drafted certain Internet banking guidelines that have to be followed by banks about
to venture into online banking. It's the new generation of banking in India.

1. Most private and MNC banks have already setup an elaborate Internet
banking infrastructure. And this exercise has provided them numerous benefits
like:

ÔV Greater reach to customers

ÔV Quicker time to market
ÔV Ability to introduce new products and services quickly and successfully
ÔV Ability to understand its customers needs
ÔV Customers are given access to information easily across any location
ÔV Greater customer loyalty

2. Multi-national and private sector banks in India have been very successful in
setting up Internet banking services. This is mainly because these banks already
have a strong and sturdy automated banking environment on which they could
build the Internet banking infrastructure. Most multi-national banks already
have efficient Internet banking infrastructures running in other countries, which
could be emulated in India. And the private banks, which are relatively young,

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did not have to carry the burden of legacy systems. They merely invested in
best-of-breed Internet banking solutions from the start.

ÔV Nationalized banks have been unable to evolve as fast as most private sector
and MNC banks. As a result, in many organizations there may be a mix of
automated systems and manual systems, with both systems running parallel,
and using half-baked applications created by smaller vendors, which run in
certain departments. This creates a chaotic scenario. Network management is
a nightmare, the legacy systems may buckle any moment, new users and
locations keep coming up, and there are also issues of security and
consolidation.

This is a typical situation at a usual nationalized bank:

ÔV A very large network of branches nationwide growing fast

ÔV Lack of connectivity in remote locations
ÔV A very large base of customers increasing fast
ÔV 75-80 percent automation in main branches with less automation in remote
cities and smaller branches
ÔV Large amount of legacy equipment which doesn't integrate well with other
systems
ÔV Inefficient and outdated applications in some departments which are not
flexible and don't integrate well with other applications
ÔV Slow-to-change mentality of an Indian customer who is used to dealing with
a human teller

Web-enabling banks with such infrastructure and number of branches nationwide

at one go is a near-impossible task. However each of the challenges can be

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overcome with good planning, phased implementation, and lots of grit on the part
of the CIO¶s.

RBI STEPS IN E-BANKING

1.V The Reserve Bank of India (RBI) has created a comprehensive document
which lays down number of security-related guidelines and strategies for
banks to follow in order to offer E-banking.
2.V The guidelines broadly talk about the types of risks associated with
Internet banking, the technology and security standards, legal issues
involved, and regulatory and supervisory concerns.
3.V Any bank that wants to offer Internet banking must follow these
guidelines and adhere to them as a legal necessity.

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CHAPTER-12 MAIN CONCERNS IN E - BANKING

a)V In a survey conducted by the Online Banking Association, member institutions

rated security as the most important issue of online banking. There is a dual
requirement to protect customers' privacy and protect against fraud. Banking
Securely: Online Banking via the World Wide Web provides an overview of
Internet commerce and how one company handles secure banking for its
financial institution clients and their customers. Some basic information on the
transmission of confidential data is presented in Security and Encryption on the
Web. PC Magazine Online also offers a primer: How Encryption Works. A
multi-layered security architecture comprising firewalls, filtering routers,
encryption and digital certification ensures that your account information is
protected from unauthorized access.
b)V Firewalls and filtering routers ensure that only the legitimate internet users are
allowed to access the system.
c)V Encryption techniques used by the bank (including the sophisticated public key
encryption) would ensure that privacy of data flowing between the browser and
the Infinity system is protected.
d)V Digital certification procedures provide the assurance that the data you receive
is from the Infinity system.
e)V Claus Nehmzow, a Principal in the Information Technology Group in London at
Booz Allen & Hamilton believed the low transaction cost will make banking on
the irresistible, but also that this will require institutions to carefully consider
and plan customer relations programs.

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CHAPTER-13 THE INDIAN PERSPECTIVE

In India, Internet banking is still in its nascent stage and among the banks that do
offer services online, more than half of them provide Level I services with only 8
percent offering Level IÃ services. If the existing banks do not want to go the way
of the dodo, they have just one option - embrace this challenge with both hands.
However, since Internet is not yet pervasive in India, Indian banks can follow a
four-step strategy to implement their online banking services:

Step 1: Familiarize the customer with a demo version on the bank's web site.

Step 2: Provide services such as account information and balances, account

statements, transaction tracking, stop payment, cheque book issue and customized
information (Level I and II).

Step 3: Launch additional services such as funds transfer, issue of demand drafts,
standing instructions, opening of fixed deposits etc. (Level III).

Step 4: Introduce advanced corporate banking services including third party

payments and cash, management services (Level IÃ).

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CHAPTER-14 CASE STUDY

STATE BANK OF INDIA

State bank of India, is also one of the banks offering Internet banking services.
Being a nationalized bank it has just began to provide net banking services. So it is
offering only the basic services. Innovations are expected to be made within a span of a
couple of years. The services offered by SBI with respect to Internet banking are as
follows.

ATM services

a.V Internet Banking

b.V E-pay
c.V E-rail
d.V RBI EFT
e.V Safe Deposit Locker
f.V Gift Cheques
g.V Foreign Inward Remittance

State Bank of India is India¶s largest bank with a branch network of over 9000
branches and 7 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 SBI¶s Internet banking portal, which provides secure access to your
accounts from anywhere in the world.

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E-BANKING FACILITIES PROVIDED BY ATATE

BANK OF INDIA

1.V ONLINE BANKING:

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At Online SBI, you can perform almost all transactions.

ÔV Ãiew account information

ÔV Generate account statement
ÔV Ãerify cheque status
ÔV Transfer funds to own SBI accounts across the country
ÔV Transfer funds to third party (beneficiary) SBI accounts across the country
ÔV Issue demand drafts
ÔV Pay utility bills
ÔV Make mobile payments

Online SBI offers value added services in the areas of railway reservation, tax
payment and mutual fund investments.

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ONLINE SBI
REGISTRATION FORM
To

TheVBranch ManagerV
ËËËËËËË..

I wish to register as a user of µOnline¶, SBI¶s Internet Banking Service.

Name of Customer (25 Characters)

Address: E-Mail:
V V V Date of Birth:
DD
MM YY

My Account Numbers Single/ Joint* (Branch Use)

Accounts Transaction
Rights (Y/N)

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* Rights on the On-Line SBI Service will be same as that in your account at
the branch.

I have read the provisions contained in the ³Terms of service document´ of

³Online´ and accept them. I agree that the transactions executed over Online under
my Username and Password will be binding on me.

Customer¶s Signature Date:

TERMS OF SERVICE: ONLINE SBI

GENERAL INFORMATION:

1.V You should register for µOnline SBI¶ with the branch where you maintain
the account.
2.V If you maintain accounts at more than one branch, you need to register at
each branch separately.
3.V Normally Online SBI services will be open to the customer only after he
acknowledges the receipt of password.
4.V We invite you to visit your account on the site frequently for transacting
business or viewing account balances. If you believe that any information
relating to your account has a discrepancy, please bring it to the notice of
the branch by e-mail or letter.
5.V In a joint account, all account holders are entitled to register, as users of
µOnline SBI¶, but transactions would be permitted based on the account
operation rights recorded at the branch. (To begin with the services will
be extended only to single or Joint ³E or S´ accounts only).

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6.V All accounts at the branch whether or not listed in the registration form,
will be available on the µOnline SBI¶. However the applicant has the
option to selectively view the accounts on the µOnline SBI¶.

BANK¶S TERMS:

1.V All requests received from customers are logged for backend fulfillment
and are effective from the time they are recorded at the branch.
2.V Rules and regulations applicable to normal banking transactions in India
will be applicable mutatis mutandis for the transactions executed through
this site.
3.V The Online SBI service cannot be claimed as a right. The bank may also
convert this into a discretionary service anytime.
4.V Dispute between the customer and the Bank in this service is subject to
the jurisdiction of the courts in the Republic of India and governed by the
laws prevailing in India.
5.V The Bank reserves the right to modify the services offered or the Terms
of service of µOnline SBI¶. The changes will be notified to the customers
through a notification on the Site.

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SECURITY PROVIDED BY SBI:

1.V The Branch where the customer maintains his account will assign:
a)V User-id &
b)V Password
2.V The User-id and Password given by the branch must be replaced by User
Name and Password of customer¶s choice at the time of first log-on. This
is mandatory.
3.V Bank will make reasonable use of available technology to ensure security
and to prevent unauthorized access to any of these services. The µOnline
SBI service is ÃERISIGN certified which guarantees, that it is a secure
site. It means that
ÔV You are dealing with SBI at that moment.
ÔV The two-way communication is secured with 128-bit SSL
encryption technology, which ensures the confidentiality of the
data during transmission.

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These together with access control methods designed on the site would afford a
high level of security to the transactions you conduct.

SBI will soon be implementing PKI/Digital Signature.

6.V You are welcome to access µOnline SBI¶ from anywhere anytime.
However, as a matter of precaution, customers may avoid using PCs with
public access.
7.V There is no way to retrieve a password from the system. Therefore if a
customer forgets his password, he must approach the branch for re-
registration.

CUSTOMER¶S OBLIGATIONS:

1.V The customer has an obligation to maintain secrecy in regard to

Username & Password registered with the Bank. The bank presupposes
that login using valid Username and Password is a valid session initiated
by none other than the customer.
2.V Transaction executed through a valid session will be construed by SBI to
have emanated from the registered customer and will be binding on him /
her.
3.V The customer will not attempt or permit others to attempt accessing the
µOnline SBI¶ through any unlawful means.

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DOS¶ & DON¶TS¶:

1.V The customer should keep his/her ID and password strictly confidential
and should not divulge the same to any other person. Any loss sustained
by the customer due to non-compliance of this condition will be at his/her
own risk and responsibility and the Bank will not be liable for the same
in any manner.
2.V The customer is free to choose a password of his own for Online SBI
services. As a precaution a password that in is generic nature, guessable
or inferable personal data such as name, address, telephone member,
driving license, date of birth etc. is best avoided. Similarly it is a good
practice to commit the password to memory rather than writing it down
somewhere.
3.V It may not be safe to leave the computer unattended during a valid
session. This might give access to your account information to others.

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To login, one needs a User ID & a Password. These are provided to customer when
he opens an account with ICICI Bank.

Brief Overview
The different sections those online sbi.com offers -
1. Bank: This section will display your account information and you can do a host
of transactions.
2. Credit Card: In this section you will see your account statement, make service
requests etc.
3. Demat: This section will display your statement and you can do other
transactions.
4. Loans: In this section you can view your account and transact on your Loan
account(s).
.5. Bill Pay: You can view your utility bills and pay them online.

E-PAY

Bill Payment @ Online SBI (e-Pay) will let you to pay your Telephone, Mobile,
Electricity, Insurance and Credit Card bills electronically over our Online SBI
website http://www.onlinesbi.com.

E-RAIL

Book your Railways Ticket Online. The facility has been launched w.e.f. 1st
September 2003 in association with IRCTC. The scheme facilitates Booking of
Railways Ticket Online. The salient features of the scheme are as under:

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1.V All Internet banking customers can use the facility.

2.V You are required to register on www.irctc.co.in. You can select your train
depending on your journey and book your ticket online.
3.V On giving payment option as SBI, the user will be redirected to
onlinesbi.com. After logging on to the site you will be displayed payment
amount, TID No. and Railway reference no.
4.V On selecting the payment amount your account will be debited. You will
return to www.irctc.co.in. The ticket with PNR No. will be displayed. You
can print the ticket.
5.V The ticket can be delivered or collected by the customer.
6.V The user can collect the ticket personally at New Delhi reservation counter.
7.V The Payment amount will include ticket fare including reservation charges,
courier charges and Bank Service fee of Rs 10/. The Bank service fee has
been waived up to September 2005
8.V For cancellation, the ticket has to be presented over reservation counter.
9.V No cash will be paid at the time of cancellation. Only cancellation ticket will
be issued. Your account will be credited after 4 days.
10.VSBI shall not be responsible for any delays or disputes regarding tickets.

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ONLINE SBI AÃAILABLE GLOBALY

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PRODUCTS AND SERVICES:

ÔV Gold Banking@ SBI

ÔV NRI Services@SBI
ÔV Small Business Finance@SBI
ÔV Small Scale Industries@SBI

India's economy is inextricably linked with the well-being of the

Small Scale Industries. In recent years, this dynamic and vibrant sector has
been making significant contribution to industrial production, export and
employment generation.

ÔV Rural Banking@SBI
ÔV Deposit Schemes@SBI

Empower your savings and watch them grow with SBI's deposit
schemes. Gain from the unmatched interest rates and unique flexibility that
are core features of all our schemes. A bouquet of options for you to choose
from, for your specific need.

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ONLINE TRADING:
eZ-trade@sbi
Online Trading service from India¶s Largest Bank
State Bank of India (SBI) in alliance with Motilal Oswal Securities Limited now
introduces you to 'eZ-trade@sbi', a State-of-the-Art online trading platform
predominantly to cater to every trading need and offers a truly world class
experience of online investing ±anyplace, anytime. This service provides you with
a 3-in-1 account which is an integrated platform of Bank Account, Demat Account
and an Online Trading Account to give you a convenient and paper free trading
experience under one roof. eZ-trade@sbi will let you trade from the comfort of
your home or office through the Internet. Buying and selling of shares is now just a
click away.
Our value proposition is based on distinguished expertise, State-of-the-Art
technology and operational ease that will redefine the way India trades. With us,
you have the power of research expertise to aid you in making the right decisions,
operational ease allowing you to seamlessly execute your transactions, timely
advice that helps you pick the right opportunities and a customized trading
experience to suit your needs and demands. And what¶s more the account opening
is free* as an introductory offer!!! So go ahead and enjoy your fast, easy and
hassle-free trading experience with India¶s Largest Bank.
V
V
V
V
V
V

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SBI VISHWA YATRA FOREIGN TRAVEL CARD:

V

SBI Ãishwa Yatra foreign Travel Card (FTC), a prepaid plastic card issued in
association with ÃISA International, is presently available in three different
currencies - US Dollars, Euro and GBP. It is a safer method of carrying funds in a
safe, convenient and cost effective way on your visit abroad. It takes away the
hassles of going around Money changers and loosing valuable foreign currency by
way of high exchange margins. It also relieves the customer of the Annual fees,
joining fees, credit limits, Mark-ups, unusual transaction charges etc., usually
associated with International Debit / Credit Cards.

THE CARD:
ÔV A Pre-paid card presently available in US Dollar, EURO and GBP
Currencies
ÔV Issued in association with ÃISA International.
ÔV Accepted at 924,000 ÃISA ATMs and at over 22 Million Merchant
Establishment (MEs) approximately, all over the world except in India,
Nepal and Bhutan.

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ÔV Available at all Branches authorized to sell Foreign currency / travelers

Cheques
ELIGIBILITY:
ÔV Any bonafide citizen of India who plans to travel abroad except Nepal and
Bhutan.
ÔV Corporate for their employees whom they plan to send abroad for official
purpose subject to completion of KYC norms.
ÔV Parents / sponsors of the students going abroad for higher studies, in the
student¶s name and can be subsequently reloaded up to the statutory ceiling
prescribed from time to time.
ÔV Foreign Nationals residing in India subject to completion of KYC no

FEATURES:

ÔV Minimum amount of issue: US Dollars 500 /400 Euros / 250 GBP

ÔV Maximum amount of issue: US Dollars 10,000 or equivalent / or any higher
amount as prescribed RBI/FEMA 1999 depending on the purpose of
overseas visit
ÔV Competitive exchange rates.
ÔV Reload able any number of times from any branch authorized to issue FTC.
ÔV SMS message on your Mobile phone for each transaction
ÔV Operatable by 4 digit PIN at ATMs and by PIN/Signature at Merchant
Establishments.
ÔV Free balance enquiry at SBI / ÃISA ATMs(at a charge)
ÔV Free balance enquiry and view / download details of transactions through
www.prepaidsbi.com

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ÔV Add-on cards not exceeding two in number to be used by the card holder in
case of loss/misplacement/defacement of the card
ÔV Balance information after each transaction through SMS
ÔV Free insurance cover upto Rs.2 lacs for 48-hour pre and post card lost
liability on non-PIN based transactions. (conditions apply)*
ÔV A 24 x 7 call centre to provide information and hot-list (block) the card in
case of loss / misplacement.

DOCUMENTS

ÔV Copies of Pass port

ÔV Form A2
ÔV PAN or Form 60 in lieu thereof
ÔV Proof of residence in case the address is different from that appearing on
passport

*Available for six months from the date of purchase on cards issued upto 30th
April 2007 only.

SBI e-TAX

SBI e-tax: Online Tax Payment Facility

Welcome to SBI e-tax, an online tax payment facility that saves time is convenient,
hassle free and paperless. It is available on a 24x7 basis and enables you to pay
taxes online, with ease and simplicity. Pay Direct/Indirect taxes through SBI e-tax
and relax. Here is the customer-friendly procedure:

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For Direct Tax payment through SBI e-tax

Step 1: Ãisit www.onlinesbi.com and Click on "SBI e-tax".
Step 2: Select Direct Taxes (OLTAS)".
Step 3: Select Challan Type.
Step 4: Enter Challan Details.
Step 5: Confirm Assessee details and Select State Bank of India.
Step 6: Log onto www.onlinesbi.com with Username and Password.
Step 7: Enter tax details.
Step 8: Confirm payment details.
Step 9: Print Instant Cyber Receipt and logout.

For Indirect Tax payment through SBI e-tax (Central Excise and Service
Tax):

Step 1: Ãisit www.onlinesbi.com and click "SBI e-tax".

Step 2: Select "Indirect Taxes (CBEC)".
Step 3: Login with Corporate Internet Banking Username and Password.
Step 4: Fill the Assessee Code provided by CBEC
Step 5: Select minor head, fill the amount of tax/ educationcessto be paid
Step 6: Enter Transaction Password & click on Make e- cheque
Step 7: Note e-pay order number.
Step 8: Authorizer to log in with Username & Password.
Step 9: Click on Ãiew Inbox and select Txn. you want to authorize.
Step10: Print or save the Instant Cyber Receipt. Two copies of duly authenticated
Challan will be delivered to your doorstep.

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MOBILE BANKING:

Recharge pre-paid mobile phones of Ãodafone, IDEA and BPL without any
charges at any State Bank ATM.

ҏRecharge pre-paid mobile phones of AIRTEL of 11 Circles viz. Mumbai, Delhi,

Gujarat, M.P., U.P. (East), U.P. (West), Karnataka, Kerala, Andhra Pradesh,
Tamilnadu, and Chennai, through ATM/ SMS anywhere in India.

Recharge mobile phones of AIRTEL, Ãodafone, IDEA and BPL without any
charges at all ATMs as well as by sending SMS (after registration at State Bank
ATM).The text of SMS will be as under: -

Service Provider SMS Text Send SMS to

RC (AMOUNT) PIN 535

RC SBI (AMOUNT) PIN 140

RC SBI (AMOUNT) PIN 147

RC SBI (AMOUNT) PIN 575

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Pay MTNL, Mumbai bills through State Bank ATMs

ҏPayment of SBI Credit Card bills

ҏPayment of SBI Life insurance premium

ҏPay fees of select colleges

DONATIONS (ANYTIME BLESSING)

ҏDonate to Temple Trusts: - (a) Ãaishno Devi (b) Shirdi Saibaba (c) Gurudwara
Takht Saheb, Nanded (d) Tirupati and (e) Sri Jagannath Temple, Puri

g



Transaction Limits: 




Daily limit of Rs 25,000/- at the ATM

Daily limit of Rs 50,000/- at Point of Sale (POS) terminal for debit transactions
Combined daily limit of Rs 75,000/-

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DEMAT SERVICES:

Open linked 3-in-1 accounts viz. a SB a/c, Demat a/c or DP a/c and Trading a/c.
The linked account offers 24x7 investing, security, and no paper work, easy
transfer of funds, instant order confirmations, speed and transparency.
The product offering envisages opening of 3-in-1 account viz. Savings¶
Bank/Current account with a Core branch of SBI, Demat account on Centralized
DP of SBI and Trading account with MOSL.

Procedure to open 3-in-1 account:

1. Ãisit your nearest branch (click here to access the list of branches) for obtaining
the 3-in-1 a/c opening form.
2. List of documents required -
a) Proof of identity - Copy of PAN Card-Three self attested Copies.
b) Proof of address {Passport, Ration card, Ãoter¶s ID, Driving license, Electricity
bill (not more than 2 months old) or Landline Telephone Bill (not more than 2
months old)
c) 3 recent passport-size photographs
d) An account payee cheque for Rs. 600/- favoring ³eZ-trade@sbi´. In case
applicant already has a demat account, the cheque of Rs. 500/- will be required.
e) A cancelled cheque having applicants name printed on it or copy of bank pass
book.
f) Client Master report on Demat account (to be generated from Bank Branch and
not required to be signed)

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If you already have bank account with a Core banking branch of SBI and /or
Demat account with our centralized DP need not have to open these accounts.
However, the you must have bank account with Internet banking and transaction
rights. For your convenience, all three accounts will be mapped to enable him
operate the account seamlessly.

3. After the 3-in-1 account form is duly filled and submitted, you would get your
trading password which would be generated by the system and supplied to you in
Pin Mailer within 10 working days.

; Dedicated customer care:

Avail services 24 X 7 through our dedicated customer care telephone numbers or at

ez-trade@sbi.co.in

; Advanced Technology Platform:

1.V Single screen order/trade entry, without going through the hassles of giving
transfer instruction, writing Cheques.

2.V Instant order/trade confirmation gives you similar trading experience as

exchange based software without the burden of overhead and maintenance
cost.

3.V You can be assured of the highest level of safety as SBI¶s Online Banking
system is powered by ÃeriSign, the world's leading Internet certification

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authority which is a 128 bit encryption based secured transaction platform.

4.V Online Trading system use Secure Sockets Layer (128-bit SSL) technology
to protect the security of your online information. SSL encrypts all personal
information including your user id, Password, Reports Like (Order Book,
Trade Book, Net position etc.) and Order Entry Form. Trading System has a
Password Policy where by the password will be generated by the system and
supplied to you in Pin Mailer, which has no manual intervention. The data is
stored in an encrypted format

ÔV Features
a)V The funds/shares will be actually transferred to the broker¶s account at
the end of the day only if the transactions placed by you are executed.
Thus, fund released is only a net debit or credit based on your net
obligation, making it absolutely hassle free.

b)V Instant and automated net payout of funds and securities.

ÔV Multiple product offering:

a)V Get access to the complete range of products from secondary market
equities in the cash and derivatives segment.

b)V You can save yourself of all the hassles of filling tedious application
forms to participate in IPO¶s by applying online.

c)V So get Equities, Commodities, Mutual funds and IPO¶s under single
point of contact. BNST (Buy Now Sell Tomorrow) option with
limited stock is also available.

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d)V Option of differentiating Intraday and delivery trades.

e)V No margin for square off of open positions, sell shares available in the
SBI demat account.

f)V Live quotes of NSE±Cash/Derivative, BSE Cash, Commodity. Create

multiple market watches, default market watch ± NIFTY, SENSEX,
and Industrial. You can add NSE-Cash, Derivative & BSE script on
the same market watch.

g)V Get access to various online reports like margin report, Demat A/c
details, trades executed, turnover report, and net position report with
mark to market profit/loss and realized profit.

h)V Access to latest research reports, daily market dairy, pivot points,
derivative dairy.

i)V Ãiew top 20 shares by value or volume traded, along with top gainers
or losers.

j)V A refreshing experience of getting outstanding research based advice

equity and derivatives on the same screen.

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CHAPTER-15 CONCLUSION

I would like to conclude my project by saying that, after making

detailed study of the entire service of Internet banking & other electronic mediums
of banking I found that this type banking is increasing rapidly and making banking
easier than what it was earlier. The major reason behind it is that a high percentage
of their customers belong to the age group of 22-40 yrs. This age group comprises
of the working population of our country, which is well served, with the use of
modern electronic equipments.
For this kind of banking bank also consider various factors like legal
factor, security measures, quality of service etc. I would like to conclude by saying
that internet banking is a service that has growth prospects in India; it has made the
life of customer easy and comfortable with respect to saving time by avoiding
personal visit of banks. The bank¶s job has also become easy, quick and efficient
due to this service

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CHAPTER-16 ANNEXURE
QUESTIONNAIRE FOR PEOPLE REGARDING AWARENESS OF E -
BANKING.

1. NAME: __________________________________________

2. AGE:

20-30 years 31-40 years 41-50 years

51-60 years 61-70 years and above.

3. PROFESSIONAL:

Service Business

4. HOW IMPORTANT IS THE BANKING FACILITY FOR YOU &

YOUR ORGANISATION

Important Ãery Important Least Important

5. WHAT WOULD YOU PREFER?

Traditional Banking E - Banking

6. IF YOU HAVE E ±BANKING, HOW FREQUENTLY DO YOU VISIT

THE SITE OF YOUR BANK?

Daily Weekly Monthly

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7. DO YOU FIND IT SAFE?

Yes No

8. WHAT FACILITIES ARE OFFERED AND USED BY YOU?

_________________________________________________________________
________________________________________________________

.
9 ANY PROBLEMS FACED BY YOU WHILE USING E - BANKING?
( If YES Specify & why?)

_________________________________________________________________
________________________________________________________

10. LEVEL OF SATISFICATION?

Fully Satisfied Partly Satisfied

11. WHAT MORE SERVICES YOU WOULD LIKE TO SUGGEST TO BE

PROVIDED BY BANK ON INTERNET?

____________________________________________________________________________
______________________________________________________________________________
____________________

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ANALYSIS

ANALYSIS OF QUESTIONNAIRE PREPARED FOR ³USE OF E -

BANKING BY PEOPLE´ TO KNOW ABOUT PEOPLE¶S REFERENCE IN

CASE OF E ± BANKING & ANALYSIS OF THE DATA COLLECTED BY

ÃISITING ÃARIOUS INTERNET BANKS IN MUMBAI TO GAIN
KNOWLEDGE ABOUT ITS WORKING, ITS CUSTOMERS, SERÃICES ETC.
HERE ALL THE INFORMATION HAÃE BEEN RECEIÃED PERSONALLY
FROM THE PEOPLE BY MEETING THEM & GETTING THE NEEDED
INFORMATION.

ANALYSIS OF THE QUESTIONNAIRE RECEIVED

FROM PEOPLE

ANALYSIS ON THE BASIS OF PEOPLE OF ÃARIOUS AGE-GROUP

USING E-BANKING

% OF INTERNET BANKING USERS OF DIFFERENT

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AGE GROUPS

ÿ



ÿ ]


ÿ 






ÿ 



ÿ

ÿ 
ÿ 
 ÿ
ÿ 



INTERPRETAION OF THE COLLECTED DATA

Above we can see the diagram representing the response of people of various
age-group towards internet banking as we can see people between the age-group of
31-40 years have highest inclination towards internet banking then followed by
people of age-group of 21-30 years & then followed by the people of age-group
41-50 years. Thus we can see that people between the age-group of 21-50 years are
using internet banking, reason may be that they may be much aware & adaptable to
internet, as yonger generation uses internet quite frequently in day to day life.
While people of age-group of 50 & above may be less aware regarding internet its
use & its advantages, as at this age they¶ll have to learn about internet & computers
from start itself so they may not be comfortable with internet banking compared to
traditional banking as they are used to it since years.

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Reason behind adding this question to the questionnaire is that internet banking
is at its growing stage in India so it is important to know people¶s point of view as
it is for their convenience itself. So for taking every move it is necessary to take
into consideration their adaptation level, there attitude etc. is important.

One has look ahead & not back so we can see that result of survey is that people
from age group between 21-50 years are much more interested in making use of
internet banking then of course the younger generation i.e. future generation will
also be, o introduction of internet banking is important at this stage of banking
where people are looking for quick, convenient & safe transactions.

ANALYSIS ON THE BASIS OF FREQUENCY AT

WHICH PEOPLE USE E-BANKING

% of individuals are using ³INTERNET BANKING´

ÿ


ÿ

ÿ

ÿ

ÿ
V
V    

 

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INTERPRETATION OF THE COLLCTED DATA

According to the survey conducted 48% of individuals use internet banking on

monthly basis & 23% weekly. Reason being their busy schedules i.e. their routine
jobs & services. As before they used the banking facility occasionally but with the
help of internet banking they check their accounts & carry out transactions on
monthly & weekly basis. Whereas 14% of people using internet banking daily
include businessman¶s & people related to banking sector. As without transaction a
business can not be conducted & these people are adapted to internet banking only
as their business is conducted with the help of internet banking so they use internet
banking for their personal use also & money being an important aspect has to be
dealt wisely taking into consideration the time factor as even seconds matter a lot
in today¶s fast moving world.

Internet banking saves the time factor & they¶re by making it popular in the
business sector.

Whereas 15% of people are concerned they are the people who are comfortable
with traditional banking bit at the same time don¶t mind to use internet banking
also as it is useful to them to carryout their greater amount transactions & also
when they are traveling & can¶t visit the of their banks.

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ANALYSIS ON THE BASIS OF SATISFACTION

LEVEL OF PEOPLE

Level of satisfaction of Individuals

º

V 


V 

INTERPRETATION OF THE COLLECTED DATA

As we can see in the above pie-diagram 85% of individuals are fully satisfied
with the services provided by their internet banks & only 15% are partly satisfied.
This is actually a positive feedback, this could be said so though 15% are partly
satisfied because these are the people who act as critics & suggest the banks to
improve better.

Through this we came to know that future of internet banking is quite bright &
banking sector is on its way of prosperity.

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V WWW.ICICIBANK.COM

V WWW.GOOGLE.COM

V WWW.SBIONLINE.COM

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