A STUDY ON E-BANKING OF CITIZENS BANKS INTERNATIONAL NEPAL LTD.

SUBMITTED BY:
BIGYAN KARKI
UNIVERSITY ROLL NO.: 1411000803

A PROPOSAL SUBMITED TO
HEAD OF THE DEPARTMENT
COLLEGE FOR PROFSSIONAL STUDIES
LC OF SIKKIM MANIPAL UNIVERSITY

IN PARTIAL FULFILLMENT O F THE REQUIREMENT FOR THE AWARD OF THE DEGREE OF

BBA IN FINANCE
KATHMANDU, NEPAL
JULY, 2017
 Table of Contents

Cover Page I
Table of contents II
Abbreviations III

1. INTRODUCTION ................................................................................................................... 3
2. BACKGROUND OF THE STUDY .......................................Error! Bookmark not defined.
3. BACKGROUND OF ORGANIZATION ............................................................................... 3
4. STATEMENT OF THE PROBLEM ....................................................................................... 5
5. OBJECTIVE OF STUDY ....................................................................................................... 5
6. SIGNIFICANCE OF STUDY ................................................................................................. 5
7. LITERATURE REVIEW ........................................................................................................ 6
8. RESEARCH METHODOLOGY ............................................................................................ 6
a. Research design ..................................................................Error! Bookmark not defined.
b. Population and Sample .......................................................Error! Bookmark not defined.
c. Sources of data ....................................................................Error! Bookmark not defined.
d. Data collection procedure/Techniques ................................Error! Bookmark not defined.
e. Data Analysis tools .............................................................Error! Bookmark not defined.
9. Limitations of the study ....................................................................................................... 7
10. ORGANISATION OF STUDY ........................................................................................... 7
11. GANT CHART .................................................................................................................... 8
12. BIBLOGRAPHY ................................................................................................................. 9
1. INTRODUCTION
"Internet 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.
Internet banking products and services can include wholesale products for corporate
customers as well as retail and fiduciary products for consumers. Ultimately, the products
and services obtained through Internet banking may mirror products and services offered
through other bank delivery channels. Some examples of wholesale products and services
include:
Cash management
Wire transfer.
Automated clearing house (ACH) transactions.
Bill presentment and payment.
Examples of retail and fiduciary products and services include:
Balance inquiry.
Funds transfer.
Downloading transaction information.
Bill presentment and payment.
Loan applications.
Investment activity.
Other value-added services.
Other Internet banking services may include providing Internet access as an Internet
Service Provider (ISP). The OCC has determined that a national bank subsidiary may
provide home banking services through an Internet connection to the bank's home
banking system and, incidental to that service, may also provide Internet access to bank
customers using that service. Historically, banks have used information systems
technology to process checks (item processing), drive ATM machines (transaction
processing), and produce reports (management information systems). In the past, the
computer systems that made the information systems operate were rarely noticed by
customers. Today, Web sites, electronic mail, and electronic bill presentment and
payment systems are an important way for banks to reach their customers.

2. BACKGROUND OF THE STUDY

*Evolution of Banking

a. Banking started in Nepal in 1937 by Nepal Bank Limited(Government Sector)

*Evolution of Joint Venture (JV) Banks and e-Banking

b. Establishment of first Joint Venture Bank, Nepal Arab Bank Limited (now
NABIL Bank), in 1984

c. Introduction of Credit Cards in Nepal in early 1990 (by NABIL Bank)

d. Automated Teller Machine(ATM) was first introduced by another JV Bank,

Himalayan Bank Ltd.In 1995.

e. Himalayan Bank Limited was also the first bank to introduce

TeleBanking(Telephone Banking) in Nepal

The term 'online' became popular in the late 1980s and referred to the use of a terminal, keyboard
and TV (or monitor) to access the banking system using a phone line.

3. BACKGROUND OF ORGANIZATION
Citizens Internet Banking is a secure and convenient access for customers to check account
balances, transfer money, review account history, utility payment and many more. You can sign-
on anytime from home, work, even when you're on the road. All you need is Internet Access to
enjoy complete, secure banking-24 hours a day. The Bank's headquarters is located at Sharada
Sadan, Kamaladi, Kathmandu and it has 57 other branches in Nepal.It provides most of the
banking solutions in Nepal.It was established on june 21 2007. One of the largest commercial
banks of Nepal, Citizen Bank International Limited was developed as a result of the
liberalization, privatization and globalization of the economy and the financial sector in Nepal.
The Citizen Bank is committed to meet the financial needs of its customers and exceed their
expectations through innovative solutions providing customer centered products and services par
excellence. The human resources it employs are skilled, talented, experienced along with a
bright, honest, helpful and pleasant personality. They are further nurtured and empowered so that
they will be able to achieve their full potential.

The products and services offered by Citizen Bank International Limited are citizens koseli
nichhep yojana, citizens sharedhani bachat khata, senior citizen savings, citizens matribhumi
bachat, citizens mahila bachat, citizens muna bachat, citizens recurring deposit, citizen zero
balance account, citizens rastrasewak saving, citizens bidhyarthi bachat, citizens special savings,
dashain tihar muddapi nichhep yojanaa, citizen super saving account, citizen saving, citizen
dollar saving, citizen euro saving, citizen GBP saving, citizen fixed deposit, citizens call deposit,
citizens current account, citizens mofashal bachat khata, corporate and commercial finance,
citizens auto loan, citizens home loan, citizens mortgage loan, citizens education loan and other
loans along with facilities like locker facilities, ATM services, utility payment, debit card, pay
bill facility and branch-less banking facilities.

The bank has thirty two branches throughout the country to provide its services and products to
its customers.

4. STATEMENT OF THE PROBLEM

How to understand current status and trends of use of internet banking services?

How to identify the problems existing internet banking services of the bank?

How to control the risk of frauds on internet banking?

How to examine the service delivery of the bank?

How to analyze facilities provided by the bank under internet banking service?

5. OBJECTIVE OF STUDY
The General objective Of This Research Is To Analyze The Customers Perception Towards The
Internet Banking Service.

To Understand Current Status And Trends Of Use Of Internet Banking Services

To Identify The Problems In Existing Internet Banking Services Of Citizens Bank.
To Examine The Service Delivery Of Citizens Bank On Internet Banking.
To Analyze Facilities Provided By The Bank Under Internet Banking Service.

6. SIGNIFICANCE OF STUDY
The study will be mainly focused on three components of the study area :
Social aspects: In social aspect the studied is focus on public participation according to
their satisfaction, knowledge, beliefs, values etc.
Technical aspects: This aspects is concerned with the technically how to develop system
and technology used on projects.
Economic aspects: In the economic analysis part, the study will focus on the possible
areas of economic development by using this Internet Banking.
7. LITERATURE REVIEW

With the extensive technology innovation and telecommunications, we have

seen new financial distribution channels increasing rapidly both in numbers
and form, from ATMs, telephone banking to PC banking (Easing wood &
Story, 1996), and Internet Banking is the latest in the series of technological
Wonders of the recent past (Mols, 1999).

Following the boom of Internet, the Internet can no longer be considered a

fad or the preserve of techies and computer nerds. Commercial uses of
the Net have become the fastest growing part of the World Wide Web (WWW)
(Hamid et al, 2007). About the same time, Internet Banking was thought to
signal a revolution in banking distribution. Banks invested heavily in the
development of the Internet channels (Accenture, 2005). Internet Banking has
experienced explosive growth in many countries and has transformed
traditional banking practice (Mols, 1999). Inevitability, Internet Banking will
Continue to revolutionize the current traditional banking industry and offers
More opportunity to meet better consumer services through enhanced
interaction, data mining and customization in the Internet Banking services
(Hamid et al, 2007).

Online banking was first introduced in the early 1980s (Kolkata and
Whinstone, 1997), in which consumers were provided with an application
software program that operates on personal computer (PC) which can be 9
dialed into the bank via a modem, telephone line and operated the programs
Remotely on the consumer PC. However, the lack of Internet users, and costs
associated with using online banking, stunted its growth. It was only in the late
1990s that Internet Banking really caught on as the Internet explosion had
made consumers more comfortable with making transactions over the web

8. RESEARCH METHODOLOGY
a. Sources of data
Both primary as well as secondary data have been collected in order to achieve the real and
factual result out of this research. All possible and useful data available have been collected. The
major sources of data are as follows :

a. Primary Source

The primary data are collected from primary sources. The primary sources of data are the
opinion survey through questionnaire, field visit and information received from the
respondents. Some of the information was also collected from interview with the
respondents.
b. Secondary Data

The secondary data are collected from secondary sources. The secondary sources of data
are the information received from books, journals and article concerned with the study for
example website of the citizens bank

9. LIMITATIONS OF THE STUDY

This research is the small effort for study and analyzing the Internet Banking services of
Nepal which has limited time so it cannot focus on all areas and may not be able to
explore many fields. This research work is done within limited time frame. There are so
many constraints while doing the work such as inadequate time, load shedding, and
resources etc. To understand methodology of Internet Banking service is very difficult
because banks only provide surface level of information because of their security
concern.In spite of great effort, there are many limitations of this research work. The
major limitations are as follows :
In the field of E-banking, there are so many arenas like ATM, Tele Banking, Mobile
Banking etc. but this research does not focus on all the e-banking services. Research
works mainly focus on Internet Banking.
Fund transfer is possible within the branch of bank. It means once cannot transfer amount
from one bank to another bank.
Banks have their own policy but there is no any standard policy for Internet Banking in
Nepal.
In the field of Internet Banking security is must but this research does not cover all the
aspects of security.
General customers and corporate customers of Internet Banking system have same kinds
of facilities.

10. ORGANISATION OF STUDY

1. Introduction
2. Research Methodology
3. Literature Review
4. Data Analysis and Presentation
5. Conclusion and Recommendation
11. GANTT CHART
Activities/months (2016) July August September October November

Literature review, preparation and

presentation of thesis proposal

Data collection and Study

Data analysis

Initial Draft and presentation

Final report presentation and

submission

12.BIBLOGRAPHY

www.citizensbank.com.np