EFFECTIVENESS OF DIGITAL BANKING SERVICES ON THE

CUSTOMER'S OF PRIVATE SECTOR BANKS IN

MANGALORE CITY

A project report submitted to Srinivas University in partial fulfilment of the

requirement for

The award of degree in

Master of Business Administration

By

L CHAITHRA SHREE
Reg no: 2SU19MB819

Under the Guidance of

Prof. AMITH MENEZES

College of Management & Commerce,

City Campus, Srinivas University

JULY 2021
 DECLARATION

I, L Chaithra shree hereby declare that the thesis entitled “EFFECTIVENESS OF DIGITAL
BANKING SERVICES ON THE CUSTOMER'S OF PRIVATE SECTOR BANKS IN
MANGALORE CITY” submitted to the College of Management and Commerce, Srinivas
University, Pandeshwar, Mangalore, in partial fulfilment of the requirements for the award of the
Degree of Master of Business Administration of is a record of the original research work done by
me during 2021 under the supervision and guidance of Prof. Amith Menezes and the project work
has not been previously formed the basis for the award of any degree, diploma, or any other similar
title.

Name of the Student: L Chaithra Shree

Register Number: 2SU19MB819

Date:
 College of Management and Commerce
Srinivas University
Pandeshwar,
Mangalore – 575001, INDIA
+91 824 2421566

Prof. Amith Menezes

Asst.Professor
College of Management and Commerce
Srinivas University, Pandeshwar,
Mangalore – 575001
CERTIFICATE

This is to certify that the thesis entitled “EFFECTIVENESS OF DIGITAL BANKING

SERVICES ON THE CUSTOMER'S OF PRIVATE SECTOR BANKS IN MANGALORE

CITY” submitted to Srinivas University for the award of the degree of Master of Business

Administration is based on the original work done by Ms. L Chaithra shree (2SU19MB819) the

College of Management and Commerce, Srinivas University, Pandeshwar, Mangalore, under my

guidance and supervision. The thesis has not been previously formed the basis for the award of

any degree, diploma, or any other similar title.

Prof. Amith Menezes

(Project Guide)
Place: Mangalore
Date:
 ACKNOWLEDGEMENT
“The value of special people cannot be measured but only treasured”

First of all, I thank god almighty for the incessant grace showed on me. Any research work only
the efforts of many people put together. I would like to owe a department of gratitude to so many
persons who guided and supported this endeavour.

I deeply indebted to my guide, Prof. Amith Menezes. Senior Assistant Professor, College of
Management and Commerce, Srinivas University, Pandeshwar, Mangalore, whose patience,
valuable time, and personnel attention made this, study a fruitful one. I thank to my guide for an
excellent guidance, constant support, and timely evaluation and suggestion were given to me in
order to furnish the data and for completion of this dissertation as well as behalf of this study, I
have learnt many things from my guide during my post-graduation.

It is my duty to thank, at the very onset, Dr. P.S. Aithal, Vice Chancellor, Srinivas University,
Mangalore for giving an opportunity to undertake this project.

I would like to express my heartfelt gratitude to management representativeMangalore, for having

granted me the permission to do my project in the company.

I also extend my sincere thanks to all the respondents of the private banks in and around Mangalore
City.

Last but not the least, I would say that it is the love and prayers of my family and friends who have
backed me with moral support and lot more than words can express to complete this dissertation
work.

Place: Mangalore L Chaithra Shree

Date: Reg no:2SU19MB819
 CONTENTS

Chapter No. Title Page No.

Declaration

Certificate

Acknowledgement

List of Tables

List of Charts and Figures

CHAPTER I Introduction 1-7

CHAPTER II Theortical Framework and Review of Literature 8-26

CHAPTER III Industry and Company Profile 27-52

CHAPTER IV Data Analysis and Interpretation 53-89

CHAPTER V Finding, Suggestions and Conclusions 90-96

Bibliography 97-100
 LIST OF TABLES

Sl. No. Title Page No.

4.1 Respondents on the basis of Gender factor 55

4.2 Classification on the Basis of Respondent’s Marital Status 56

4.3 Respondent’s Age Group 57

Classification on the Basis of Respondent’s Educational 58
4.4
Qualification

4.5 Respondent’s on the basis of Occupation 59

60
4.6 Respondents Type of Family Structure

4.7 Table showing respondents No of members in their family 61

Table shows No of earning members in the respondents 62
4.8
family.
Table showing respondents Family Income(Annual) 63
4.9

Table showing preference for Information about various 65

4.10
products/services
Table showing the preference for Checking the 66
4.11
account balance/ Balance enquiry
Table showing that preference of respondents for 67
4.12
withdrawals.
Table showing the preference of respondents for fund 68
4.13
transfer

4.14 Table showing the preference for Utility Bill Payment 69

4.15 Table showing the preference to pay shopping bills 70

4.16 Table Showing the preference for Tax payment 71

Table Showing the preference to receive account statement 72

4.17
and update pass
 Table showing preference for credit card and its related 73
4.18
services
Table showing the awareness level of respondents about 74
4.19
Real Time Gross Settlement (RTGS)

4.20 Table showing the awareness level of respondents 75

about National Electronic Fund Transfer(NEFT)
4.21 Table showing the awareness level of respondents 76
about Cheque Transaction System (CTS)
Table showing the awareness level of respondents about 77
4.22
Immediate Payment Service (IMPS)
Table showing the awareness level of respondents about 78
4.23
Unified Payments Interface (UPI)
Table showing the awareness level of respondents about 79
4.24
Unstructured Supplementary Service Data (USSD)
Table showing the awareness level of respondents 80
4.25
about Point of Sale (POS)/ Debit or Credit Cards
Table showing the awareness level of respondents about 81
4.26
Prepaid Payment Instrument (PPI)/ Bank prepaid cards
Table showing the Level of Usage of Real Time Gross 82
4.27
Settlement
Table showing the Level of Usage of National Electronic 83
4.28
Fund Transfer
Table showing the Level of Usage of Cheque 84
4.29
Truncation System(CTS)
4.30 Table showing the Level of Usage of Immediate 85
Payment Services (IMPS)
4.31 Table showing the Level of Usage of Unified Payments 86
System (UPI)
4.32 Table showing the Level of Usage of Unstructured 87
Supplementary Service Data (USSD)
Table showing the Level of Usage of Point of Sale (PoS)/ 88
4.33
Debit or Credit Cards
Table showing the Level of Usage of Prepaid Payment 89
4.34
Instrument (PPI)/ Bank Prepaid Cards
 LIST OF CHARTS AND FIGURES

Sl. No. Title Page No.

4.1 Graph showing Respondents on the basis of Gender factor 56

Graph showing Classification on the Basis of Respondent’s
4.2 57
Marital Status
4.3 Graph showing Respondent’s Age Group 58
Graph showing Classification on the Basis of Respondent’s
4.4 59
Educational Qualification
4.5 Graph showing Respondent’s on the basis of Occupation 60
4.6 Graph showing Respondents Type of Family Structure 61
4.7 Graph showing respondents No of members in their family 62
Graph showing No of earning members in the respondents
4.8 63
family.
4.9 Graph showing respondents Family Income (Annual) 64
Graph showing preference for Information about various
4.10 65
products/services
Graph showing the preference for Checking the account
4.11 66
balance/ Balance enquiry
Graph showing that preference of respondents for
4.12 67
withdrawals.
Graph showing the preference of respondents for fund
4.13 68
transfer
4.14 Graph showing the preference for Utility Bill Payment 69
4.15 Graph showing the preference to pay shopping bills 70
4.16 Graph Showing the preference for Tax payment 71
Graph Showing the preference to receive account statement
4.17 72
and update pass
Graph showing preference for credit card and its related
4.18 73
services
Graph showing the awareness level of respondents about
4.19 74
Real Time Gross Settlement (RTGS)
4.20 Graph showing the awareness level of respondents
75
about National Electronic Fund Transfer(NEFT)
Graph showing the awareness level of respondents
4.21 76
about Cheque Transaction System (CTS)
Graph showing the awareness level of respondents about
4.22 77
Immediate Payment Service (IMPS)
Graph showing the awareness level of respondents about
4.23 78
Unified Payments Interface (UPI)
Graph showing the awareness level of respondents about
4.24 79
Unstructured Supplementary Service Data (USSD)
Graph showing the awareness level of respondents
4.25 80
about Point of Sale (POS)/ Debit or Credit Cards
Graph showing the awareness level of respondents about
4.26 81
Prepaid Payment Instrument (PPI)/ Bank prepaid cards
Graph showing the Level of Usage of Real Time Gross
4.27 82
Settlement
Graph showing the Level of Usage of National Electronic
4.28 83
Fund Transfer
Graph showing the Level of Usage of Cheque
4.29 84
Truncation System(CTS)
4.30 Graph showing the Level of Usage of Immediate
85
Payment Services (IMPS)
4.31 Graph showing the Level of Usage of Unified Payments
86
System (UPI)
4.32 Graph showing the Level of Usage of Unstructured
87
Supplementary Service Data (USSD)
Graph showing the Level of Usage of Point of Sale (PoS)/
4.33 88
Debit or Credit Cards
Graph showing the Level of Usage of Prepaid Payment
4.34 89
Instrument (PPI)/ Bank Prepaid Cards
 CHAPTER 1
INTRODUCTION

1
1.1 INTRODUCTION

Digital Banking is called as the mechanization of outdated (traditional) banking services.

Digital banking allows the bank’s customers to access all the banking products and services
via an electronic or virtual platform i.e., online modes. Digital banking means to digitalization
of all the banking tasks and it substitutes the bank’s physical existence with a unending online
occurrences it also help in eliminating the need for the customers of the bank to visit their
branch physically. Digital banking also involves in high level of processed computerization
and web-based amenities and comprises of APIs that leads to allowing the cross-institutional
service arrangements in order to distribute various banking products and other services.

The Digital payment is a process that takes place over a digital, web or online modes, where
there no need of physical interchange of cash or money involved. It refers to that both the
parties involved i.e., the payer and the payee should use or have an electronic networks or
modes to exchange money between them. Digital Payments are payments that takes place
over the internet or web and mobile networks. The payment that is directed in online or
through mobile and internet-enabled devices are called as digital payments. According to the
meaning of the digital payment it means that for a digital payment to take place, the sender
of the payment or cash must have a checking account in digital mode, a web banking means, a
device from which they can be able make the payment, and a mode for transmission of the
payment, means that either they should be having a provider for whom they have signed up
or an intermediate like a bank or a service provider. Along with the sender whose having such
means for using digital payments, the receiver of the payment also must have these above
mentioned ways or modes in order to accept the payments, otherwise the digital transmission
of payments is not possible. This altogether means that there need be a medium of
transmission between the sender and the receiver wherein the sender rather than paying the
receiver in money or any other physical means he can pay in digital format that is through
transaction that happens over online modes of transmission.

Digital transactions are transactions were the customer permits the transmission of money
through an electronic means, and the funds movement happens directly from one account to
another. The accounts might be held in banks, or with the entities or the providers. The

2
transfer of money through a digital means can be completed or the different ways of digital
transactions are through means of cards (debit/credit), now there are also digital cards where
the customer does not have carry the physical card he can simply show the digital cards
through his mobile phones, mobile apps like phonepe, mobikwik, google pay etc., mobile
wallets, internet banking, Electronic Clearing Service (ECS), National Electronic Fund
Transfer (NEFT), cash Service (IMPS), pre-paid instruments, Real-Time Gross Settlement
(RTGS) or other related means or modes of transfer.

1.2 HISTORY

During the period of 1990s, in India, was tarnished by numerous and countless financial
modifications. These together with the liberalization and globalization triggered colossal changes
and alterations in India’s business and commercial environment, including banking sectors. The
growth of the digital payments age in the country has been nothing in need of meteoric. Beginning
with its birth inside the initial 90s to its domination at present, the country has reached the phase
where it's almost impossible to gauge a world through which digital payments did not exist or its
impossible to imagine a world without digitalization in the banking sector. It is because the use of
physical cash is continuously in its decline, and digital payments still strengthening its firm hold
on the financial transaction situation, offering users a superior and smooth level of speed, safety,
convenience, security and efficiency than cash ever possibly could give. The history of digital
payments is kind of recent and latest, building its growth and slowly expanding and developing
remarkably.

As customer needs quiet promptly progresses, assume to establish payment platforms persistently
changing in order to satisfy those requirements. moreover, to the development of digital wallets,
cryptocurrency will likely signify succeeding development within the transactional payments
universe. As public still gain a far enhanced understanding of blockchain technology, there’s little
demand that, more readily instead of far ahead, it'll alter the digital payment environment in new
and stimulating traditions. Mobile wallets are certainly set to become as common as cash payments
once remained. Solutions like UBU’s Mobile Wallet which permits customers to deposit to their
wallet through card or EFT and use their wallet to buy at thousands of vendors while receiving

3
rewards like cashback on to their wallets are even as innovative – establishing identifiable space
within the history of digital payments.

The beginning of digital payment is linked to the start of the web, which transformed the planet as
nothing in the past. There wouldn’t be any electronic-services and online stores, if there was no
availability or origin of internet today. The origin of Internet commenced in the year 1969 during
the Vietnam War period with ARPANET, the military network which was intended to be a network
for communication. However, the greatest turning point happened in 1989 after Tim Berners-Lee
discovered the “sites” or “pages” which made everything easier to access and publish the
information and facts on the web. Alongside the happening of the web, online payments
commenced to work within the 1990s. Stanford Federal depository financial institution was the
primary institution to supply online banking services to all or any its customers, established in
1994. Originally, online payment systems were not easy and user-friendly and needed expert and
specialized knowledge and awareness of knowledge transfer protocol.

During the beginning, the key players in the digital payment market place were Millicent and
Electronic-cash, established in 1995 and 1996 individually. Furthermost of the initial online
services used micro payment methods and their collective distinctive was the effort to have
electronic cash substitutes (like e-money, tokens or digital cash). Additionally, the Amazon (one
of the e-commerce pioneers) was initiated in 1994.

PayPal in the year 1998 commenced as one of the mobile payment firm started as a wireless
transaction on Palm Pilots. However, it later focused proceeds on online payment once it
established a strong and durable customer base on eBay, a company that had a prevailing auction
platform or a stage. PayPal sustained to build and create innovations continuously like sending or
transferring payments with the use of email addresses, initiating the converse Turing test to
decrease fraud and to make HTML payment buttons.

After eBay sellers started to recruit in PayPal, eBay felt endangered. It responded by creating
Billpoint that represented much fundamental functionality of PayPal. As an alternative of building
innovative features to lessen the friction and resistance for customers, the company commenced
to cajole users into accepting and accommodating Billpoint by exercising more and further control

4
over its platform. Some strategies used by eBay comprised offering free listing days to Billpoint
users, necessitating the usage of Billpoint for its Stores sites in addition to cutting fees. Not just
eBay tried to overthrow PayPal with their monopolistic and dominant control and advertising tricks
but also financial institutions such as banks attempted and made an effort to pursue lawful means
in contrast to the company to classify it as an unsecured service or a bank.

In conclusion, after comprehending that its customers preferred PayPal as their payment solution,
eBay acquired PayPal. Later that after some years, PayPal recognized it was spending a lot of
resources to improve and develop the shopping experience on eBay instead of concentrating on
reducing friction for customers of the payments marketplace. eBay announced PayPal’s separation
in September 2014, three weeks after Apple launched Apple Pay. In the meantime, Alipay gently
surpassed PayPal and became the major mobile payment solution with approximately around $150
billion value of transactions in the year 2013.

Owing to the widespread of internet/online-based shopping and banking, digital payment system
grew very fast. With the development of this new technology, numerous digital payments
companies have been established to increase, improve and offer more secure and safe e-payment
transactions.

1.3 STATEMENT OF RESEARCH PROBLEM

Though the facility of Digital banking is getting popular and spreading very fast, but most of the
respondents do not know about the services because farmers are technically illiterate and unable
to use this service. This research is an effort to investigate the level of awareness and perception
among the Customers using digital banking service in Mangalore in particularly with private
banks also the factors which influence the usage of digital banking services.
The purpose of this Study is to learn the Effectiveness of Digital Banking Services on the
Customer’s of Private Sector Banks in Mangalore city. The Study is to know how digital Banking
is useful for the people and how it makes their life easy. It also gives us the idea about the
awareness of digital banking in and around the city.

5
Due to the massive breakdown of COVID-19 the country is facing an enormous problem where
the government announced the lockdown. Moreover, the city is finding it difficult to overcome the
pandemic hence the city is all locked. This is the reason we are not able to contact the customers
personally and had to use online ways and also it was quite a huge task to find the customers of all
regions and age groups. It was also difficult to visit the private banks for the required information.

1.4 RESEARCH GAP

This Study is all about the Digital Banking techniques of Private Banks in around Mangalore. We
have studied the customers using digital banking under private banks in the city and also observed
the knowledge of the people about the various forms of digital banking available for them.

1.5 OBJECTIVE OF THE STUDY

 To study the effectiveness of digital banking services in private banks.
 To Know if the new technology is helping the customers to make their job easy.
 To educate the customers about the new forms of digital banking available to them.
 To Know how well the new technology has been received and actually used by the
customers
 To identify the reason why customers are either using or not using the Net banking
service.
 To recognize the preference regarding the mode of usage of digital banking products
and services

1.6 RESEARCH DESIGN

1.6.1 Sample Size: 100
1.6.2 Sample Unit: In this project sampling unit consisted of the various individuals who had their
bank accounts with private Banks.

1.6.3 Source of data: We used two types of data sources in this research, that is primary and
secondary data

1.6.4

6
Primary data: Primary data is the data that means collecting information for the very first time
from the source and never have been used earlier. The data can be collected through many ways
like observations, interviews and questionnaires. In this particular projectwork, an appropriate and
suitable questionnaire was planned and designed which was filled by the customers or the users of
private banks in and around the mangalore city to know their opinions and ideas regarding the
Digital Banking service

Secondary data: Secondary data is the data that is collected from the previously been used or
published information like diaries, books, journals, etc. The research and other information about
digital banking is done through secondary sources like internet, journals, research papers etc.

1.6.5 Drafting a Questionnaire: Questionnaire is specifically designed to know how digital

banking is effective for the customers in the bank and we have included all the necessary
information that would be necessary for the research

1.7 LIMITATIONS OF THE STUDY

 It was difficult to reach the potential customers of the Bank due to the lockdown
around the city.
 As the research is mostly dependent on online mode, the information received may
not be more accurate and are not reliable.
 It was difficult to reach all age customers as everyone was not available on the online
mode
 This project is partially based on the secondary data and the limitations of utilizing
secondary data may affect the results.
 The time involved in the project is limited to 3 months
 In this Study we have only taken into consideration the private banks in the city.

7
 CHAPTER 2
THEORTICAL
FRAMEWORK AND
REVIEW LITERATURE

8
2.1 THEORTICAL FRAMEWORK

2.1.1 Introduction

Digital banking in simple terms means, it doesn't involve any physical exchange of cash, but
it’s all done electronically, from one account to a different, using the web. Internet banking is
simply like normal banking, with one big exception. we don’t need to attend the bank for
transactions. Instead, we will access our account any time and from any a part of the planet,
and do so once we have the time, and not when the bank is open. For busy executives,
students, and homemakers, Digital banking is virtual blessing. No more talking precious day
off from work to urge a requirement draft made or a cheque book issued.

Bank Industry offers Internet banking in two main ways. One is an existing banking system
also called as traditional banking with physical offices where it can establish an internet site
and offer Internet banking to its customers additionally to its traditional delivery channels. A
second alternative is to determine a “virtual,” “branchless,” or “Internet-only” bank. The
Computer server that lies at the guts of a virtual bank could also be held in an office that is the
legal address of such a bank, or at another location. Virtual banks offers their customers the
power to form deposits and withdraw fund via cash machine machines (ATMs) or other
remote delivery channels owned by other institutions. Online system allows customers to plug
into a number of banking services from a private computer by connecting with the bank’s
computers over telephone wires the convenience are often compelling. Not only is time
period reduced, but ATM machines, telephone banking or banking by mail are often
necessary. And, technology continues to form online banking once attempted only by
computer enthusiasts, easier for the typical customer. Banks use a spread of names for online
banking services, like PC banking, banking, Digital banking or Electronic banking or Internet
Banking.

2.1.2 Evolution and Growth of Digital Banking in India

Formerly, when we used to quote Digital Banking in India, the industry in the country was lagging
behind many other developing nations. It was absolutely because of the increased use of legacy

9
systems, huge costs of running branches, and outdated technology that might not be
upgraded. Ever since, India observed gradual yet vigorous progress in Digital banking. The need
for computerization of the banking sector was felt within the late 1980s. Therefore, the reserve
bank established a committee during this regard in 1988 headed by Dr. C. Rangarajan. Initially
with the introduction of standalone Personal Computers and migrated to Local Area Network
connectivity banks started using information technology. Then along with further evolution, banks
implemented the core banking platform. It had been when branch banking was changed to bank
banking Core banking solution allowed banks to boost the comfort aspect to the purchasers, and it
had been hailed as a promising step towards improving customer convenience through the so-
called “Anywhere and Anytime Banking.” Thereafter the method of computerization kicked up
with the opening of the economy within the early 90s. a significant propeller for this transformation
was thanks to the rising competition from private and foreign banks. Many commercial banks
started adopting digital customer services to remain competitive.

2.1.3 Features of Digital Banking

 Online Banking:
 It allows to view a summary of thier transaction history and account
 It allows to view or print the account statements and balances
 It sest up online payments and direct deposit services.
 Reorder or request for cheques for account via online modes.
 Some services allows to export the account histories to third-party accounting
software
 Transfer funds from one account to a different or make deposits which saves tons
of time and money.
 Personal Finance Planning: a number of the sturdy features of digital banking on
advanced websites are loan calculators, premium calculators, financial planning tools,
tools to assist analyze investments, budgeting, forecasting, and also tax preparation,
etc. This helps a consumer to stay alert with many various features in an easy way. As
a result, most of the financial planning are often done efficiently without the
requirement to personally visit a bank

10
  Mobile Banking Options: Mobile banking may be a service provided by a bank or
other financial organization that enables its customers to conduct financial transactions
remotely employing a mobile device like a smartphone or tablet. Mobile friendly
websites and features that help customers to bank efficiently are developed by the
banks. With just a number of clicks on the mobile phones, the cash are often transferred
and bills are often paid with great ease.
 Unified Payment System: Unified Payments Interface is a moment real-time payment
system developed by National Payments Corporation of India facilitating inter-bank
transactions.
 Digital wallet: After demonetization, more people have started using m-wallets.
Digital wallets are one in all the most effective innovations within the field of
technology. many people are making payments from these e-wallets, which are easy to
use. a number of the m-wallets are paytm, mobikwik, Jio money, etc.
 Non-Internet Based Phone Banking: Consumer banking has also been made more
convenient on devices that don't have an online connection. These services include
SMS, Missed calls and USSD Banking.
 Automatic Bill Payments: Most online banks allow you to link your bills on to your
account and have them paid on time automatically. for each bill you came upon, that’s
one less thing you wish to juggle monthly

2.1.4 Benefits of Digital Banking

Advancing to a more technologically sophisticated way of doing things, it goes without saying that
the advantages long outweigh the prices. Likewise, digital banking as a technological by-product
purposes to make life easier and informal for the customers of a bank. Digital banking has the
subsequent benefits:

• Digital banking facilitates consumers to perform banking functions and tasks from the
comfort of their homes, be it an elderly one who is uninterested in waiting in lines or a
working-class professional who is wedged with work, or a regular one that doesn't want
to go to the bank’s branch to run one errand. It also offers convenience.

11
 • Elaborating on the convenience offered, digital banking lets a user perform banking
work round the clock, with 24*7 availability of access to banking functions.
• one among the most important drawbacks of traditional banking was the overly placed
importance on paper. Banking has become paperless with the event of digital banking
as a service. A user can log into their account at any point in time to watch records.
• Digital banking allows a user to line up automatic payments for normal utility bills like
electricity, gas, phone, and credit cards. The customer no longer has to make a mindful
effort of memorizing the due dates. The customer can choose alerts on upcoming
payments and outstanding dues.
• Online shopping has become a cakewalk with payment channels becoming well-
integrated with the web shopping portals. Internet banking has considerably
contributed to online and digital payments.
• Digital banking extending services to remote areas is seemingly a step toward holistic
development. With smartphones at affordable prices and internet access in remote
areas, the agricultural population can make the foremost out of digital banking services.
• Digital banking-enabled fund transfers reduce the danger of counterfeit currency.
• With the assistance of digital banking, a user can report and block misplaced credit
cards at the press of a button. This advantage has critically strengthened the privacy
and security that are available to a bank’s customer.
• By promoting a cashless society, digital banking restricts the circulation of black
money because the Government can keep a track of fund movements. within the end
of the day, digital banking is predicted to lower the minting demands of a currency.

2.2 REVIEW OF LITERATURE

2.2.1 Varda Sardana and Shubham Singhania (2018): In this paper the writer reviewed that the
speculative literature on the growth of digital and data technology within the Indian industry. The
remarkable progressions in digital technology have altered the way banks function. The
commencement of the age of digital business has been disrupting the business environment and
breaking out innovative and singular ways of doing business. one among the foremost recent

12
outcomes of this can be often digital banking. Digital banking technologies have escalated over
the years, with the availability of an outsized portfolio of products like deposits, ATMs, debit
cards, mobile payments, and so variety. there's an immense possibility of using the infrastructure
of the digital age to create opportunities - both local and global. the increase in competition and
various other challenges within the banking sector are pushing the banks to adopt new digital
models that present unique sources valuable to them. This paper examines the extent and so the
direction of the effect of digital technology within the domain of Indian banking.

2.2.2 Prestige e-Journal of Management and Research Volume 2, Issue 2 (October, 2015): A
feature of the industry across the world has remained that it's increasingly becoming stormy and
competitive, characterized by an growing trend towards internationalization, mergers, takeovers
and association of the industry. Furthermore, variety of non-banking companies are entering the
industry by contributing financial products and services (e.g. Toyota’s MasterCard, GM’s auto
financing, Merrill Lynch investments). This has set a countless of options and opportunities to
customers in electing banking services. Internet banking has captivated the sense of banks,
securities insurance companies, trading firms, brokerage houses, lawmakers and regulators in
developing nations since the late 1990s. With the speedy and significant development in electronic
commerce, it's obvious that electronic (Internet) banking and payments are likely to advance. This
study challenges to discover literature review on e-banking and provides conclusion on the premise
of historical studies.

2.2.3 Anthony Larsson and Yamit Viitaoja (2016)-A study of bank staff’s perspectives on the
challenges of digital CRM and loyalty: The main purpose of this paper is to research the
perceptions and opinions amongst representatives from numerous established most important
Swedish banks in how they skilled the digitalization process and procedures and its influence on
customer relationships. By recognizing the aspects of a digital banking that bank managers
perceive to be more beneficial or stimulating on the road to nurturing the connection with its
customers, bank managers should garner an awareness of having the ability to more effectively
and efficiently develop appropriate strategies and policies in addressing the bank’s customers. The
consequences indicated that half the respondents experienced the identical region posing the best
challenge. This was deep-rooted within the perceived uncertainty around what the bank anticipated
to grip about its customers’ expertise and experiences, and what the purchasers provided the

13
impression to actually know. This study was directed as an Interpretative Phenomenological
Analysis (IPA) study of varied major Swedish banks, which can limit the external validity of its
results. Other limitations also are discussed within the paper.

2.2.4 Simran Jit Kaur, Liaqat Ali, M. Kabir Hassan & Md Al-Emran (2021)-Adoption of
digital banking channels in an emerging economy: exploring the role of in-branch efforts:
The main purpoe or aim of this paper is to study and to scrutinize the role of in-branch
determinations of banks on drifting customers from traditional banking to digital banking in India.
In-depth semi-structured interviews were accompanied with bank executives representing senior
administration from public and private sector banks in India. Here qualitative content analysis
technique was used to observe the data. Multiples of answers acknowledged throughout interviews
were grouped into four main topics constructed on data reduction, display, as well as conclusion-
drawing procedures. Digital transformation of the branch, in-branch communication with
customers,customer-centric initiatives, and redefined role of staff at branch hold likely to bridge
the customers’ movement to digital banking. The paper also suggests that the key recognized factor
in improving digital banking acceptance in India is the requirement of integrated cultural and
organizational modifications at the bank’s level to gain trust in digital banking and the customers’
confidence.

2.2.5 Subhankar Das (2020)-Innovations in Digital Banking Service Brand Equity and
Millennial Consumerism: The paper studies the goods industry, and in the goods industry the
product is considered as their primary brand with various traits and attributes. In the case of the
services industry, the company itself is a major and primary brand. This paper is based upon
primary research of the services i.e., banking sector as case of service branding with services
protracted marketing mix variables. A model has been developed inorder identify and classify the
influence of services extended marketing variables on customer-based brand equity. Brand
association and Brand awareness are the two main components of customer-based brand that have
been given consideration.

2.2.6 Gupta Santosh Kumar and Bansal Anshika (2019)-Young Customer’s attitude towards
digital banking with special reference to public and private bank: In this paper we studied that
customers are the one that are driving digitalization in each and every sphere of business, including

14
banking. It has been in the form of digital banking, which is now exchanging the traditional
banking. The Banking sector in India has seen a number of fluctuations. It becomes even more
vital to determine the customer’s perception of the overall service quality and their satisfaction
with the current online banking services. It is also a point that digitalizing the banking helps
customer to get more information in very less time. Customer satisfaction is an significant factor
to help banks to sustain competitive advantages and benefits. Most of the foremost leading Indian
banks have started providing digital banking services. For that reason, the purpose of this research
is to search and examine the factors, which influence customer satisfaction towards digital
banking. This study predominantly emphases on investigating and considering the major factors
that influence online customers ‘satisfaction with the overall service quality of their banks. the
paper is also descriptive and vivid in nature, and data has been collected through various primary
and secondary sources. The major conclusions of the study is that majority of the customers are
satisfied with the new mode of banking called Digital Banking.

2.2.7 THE IMPACT OF DIGITAL BANKING ON THE GROWTH OF MICRO, SMALL

AND MEDIUM ENTERPRISES (MSMES) IN INDIA: A CASE STUDY (2020): The main
determination of this paper learning is to formulate a multiple regression model by permitting for
those aspects which are certainly affecting the development of Micro, Small and Medium
Enterprises (MSMEs) in India. The most data used in the study are primary in nature that are
collected through questionnaire method. The survey involved the nature and size of business and
attitude of the owners and managers of a semi-urban area in Katihar district of Bihar in India,
concerning the various favourable factors of digital banking on a Likert scale of 1 to 10. The
outcomes of the study recommend the various favourable factors of digital banking with significant
coefficients i.e. Level of Easiness in making payments, Level of Easiness in accepting payments,
Level of Time Saving, Level of Easiness in Managing the expenditure of Business, and Level of
Check on Misappropriation or Theft of Cash are contributing in the direction of the growth of
MSMEs in India. Research Implications.This research will aslo be helpful to the bank managers
and policy makers to encourage the MSMEs of semi-urban areas to use digital banking by
emphasizing on only substantial favourable factors and also to take necessary steps so that the
MSMEs could reap the full benefits of digital banking. The study gives a new vision about the
extent of contribution of digital banking towards the growth of MSMEs in rural and semi-urban
area.

15
2.2.8 Ashoka M. L., Rakesh T. Sand Madhushree S (2019)-The Digital Banking services in
Rural India: A Customer’s Perspective: This paper is surveyed by the customers’ in
Belthangady Taluk, Dakshina Kannada district which discloses the ideology and the thoughts of
customer's satisfaction towards the digital banking services. Digitalization of banking services has
established a very strong and steady network which ropes a quick distribution of banking services
across the world. Digital banking service has allowed India to be more operative in reducing the
transaction gaps between rural and urban areas. The awareness about cashless transactions has led
to the comprehensive transformation and change in online-banking services. The government
initiatives as well as banks both private and public sector efforts in implementing digital services
such as internet banking, mobile banking, bills, online-ticket booking, payment of various utility,
digi-lockers for investors. Inestements, applying for loans etc. has created a sense of practical
significance among rural population. Also mainly favorable network condition plays a very
improtant role in making digital banking services more triumphant in both rural and urban India.

2.2.9 Arpitha Khare (2010)-Online Banking in India: An Approach to establish CRM: Here
the author studied the CRM in online banking.Technology is very fast altering and improving the
business services cape and its role in refining the customer service stages and being used
strategically and progressively by service organizations. The service features and quality can be
enhanced and improved by technology deployment. The Internet has enabled convenience in
customer relations with better interactions and transactions with the banks. Presenlty Online
banking is emerging as a new approach in the county for providing improved accessibility and
expediency to customers. Most of the banks have their own websites for improving the customer
interface and offering various online services. The article studies the applicability and uasage of
online banking in India and its role in developing relationships with customers and giving them
more value. The research was conducted on customers familiarity with online banking in India,
and their perceptions on online banking were studied. The outcomes of the study disclose that
customers are using the services but are cynical about the financial transactions and service quality
dimensions.

2.2.10 Adaption of Internet Banking among sophisticated consumer segments in and

advanced developing country- 2004: This descriptive study turned into piloted to increase an
understanding of consumers' attitudes and their adoption of Internet banking amongst delicate and

16
complex consumers. Based on a random pattern of demographic, attitudinal, academicians, and
behavioral traits of Internet banking customers and non‐customers have been examined. The
research determined essential variations among the demographic profiles and attitudes of
customers and non‐customers of Internet Banking. Internet Banking customers have been similarly
investigated, and 3 sub‐segments have been described in line with a hard and fast of financial
institution choice criteria. In conclusion, based at the similarities among diverse Web‐based bank
offerings, the 4 homogeneous groups of services have been defined.

2.2.10 M. L. Ashoka, T. S. Rakesh and S. Madhushree (2017)-Consumer perception and

satisfaction towards internet banking and mobile banking with reference to Nationalized
banks in rural India: At present, the Indian government is highlighting more on cash less dealings
in order to abolish black money movement in the market. In supporting to this internet and mobile
banking is also one of the initiations steps engaged by the nationalized banks. Even there are many
private sectors banks that are also coming up with new innovative and creative products of service
to simplify and facilitate the customer in cashless transactions either in shopping, banking,
payment of bills, recharges etc. This scheme is successful and positive in the urban part of the
India but to make it reachable to the rural part is a big challenge. In this contextual, current study
is concentrating on the issues related to the internet and mobile banking usage and its influence on
the consumers and their satisfaction towards the facilities offered by the nationalized banks in the
rural part of the India especially for this study the author surveyed in the Belthangady taluk, of
Dakshina Kannada district, Karnataka.

2.1.10 Pallab Sikdar, Munish Makkad (2013)-INTERNET BANKING in INDIA – A

PERSPECTIVE ON BENEFITS AND CHALLENGES INVOLVED: Electronic-Banking
refers to association of all the avenues of banking whereby the customers can benefit the aids of
major services offered by a commercial bank at an offsite with the support of Information and
Communication Technologies. Internet banking is a main essential of E-banking outline, has
transformed the dynamics of commercial banking globally by virtually bringing the entire banking
set-up at the doorstep of a every banking customer. Internet banking in spite of being a boon for
the customers is not free from complexities and poses a set of unique challenges to banking
organizations. This paper provides an introduction to the concept of internet banking. In addition,
it highlights the benefits it provides from the point of view of bank’s customers as well the banking

17
organization. Additionally, in order to avail the internet banking facility by the means of a
structured questionnaire based survey,an effort was made to bring to light various customer level
concerns in India. Towards analyzing the survey responses correlation coefficients, chi-square
values, cross-tabulation based frequencies and one-way ANOVA values have been determined
using SPSS predictive analysis software. Research findings are expected to be of value to
commercial banks towards enhancing the accessibility of internet banking facility to their
customers.

2.1.11 An analysis of internet banking offerings and its determinants in India-Pooja

Malhotra and Balwinder singh (2010): This experimental study is an effort to present the current
status of Internet banking in India and the extent of services offered by Internet banks. In addition,
it pursues to examine the factors affecting the range of Internet banking services. The results
indicates that the private and foreign Internet banks both have accomplished well in offering a
broader choice and more advanced and innovative services of Internet banking in comparison with
public sector banks. Among the factors affecting the extent of Internet banking services, size of
the bank, experience of the bank in offering Internet banking, financing pattern and ownership of
the bank are found to be substantial.

2.1.12 A. Joshua, Moli P. Koshy (2011)-Usage Patterns of Electronic Banking services by

Urban Educated Customers: Glimpses from India: This paper studies that the major banks in
the country are increasingly providing services through electronic means of channels such as tele
banking, internet banking, ATMs, and mobile banking. This paper is an attempt to observe the
various usage patterns by customers of these technology enabled services has ben provided. A
survey research was conducted in some of the leading banks in India among their customers who
are residing in the selected metro and urban banked centres in India. The outcomes of the paper is
that though ATMs have been widely adopted, the level of adoption of other electronic banking
means like internet banking, tele banking and mobile banking regardless of their potential are yet
to pick in a big way. The usage arrangements discovered through this study has several pointers to
bank managements in India.

2.1.13 Consumer Behavior in Electronic Banking: An Empirical Study (2014): An Overview

of technology and improvements in banking sector has empowered customers to avail the banking
services at anytime and anywhere in the form of Mobile banking, ATM, and Internet Banking.

18
This technology has not only enhanced the banking business but also has reduced the transaction
cost that a current bankers must be aware about customers’ behavior towards Electronic Banking
Services. The paper is grounded on descriptive research design & questionnaire was used to collect
the primary data from banking customers. This paper highlights the Electronic Banking services
most favored by customers & their level of satisfaction towards these services. To Conclude the
paper it revealed the impact of customers’ demographic on their usage of Electronic Banking.

2.1.14 Bhosle & Nalawade (2012): They identified and stated that Current IT technology and its
instruments are developing rapidly. It is advantageous for bank to stay in a competition. At present
bank customers are growing hence e-banking play very an important role that handle the
effectiveness of customer and to reduce the work burden of staff.

2.1.15 Komal & Rani (2012): They recognized that most of the marketplace are still untapped
and are available in India particularly in rural areas. There are lot of possibility for banking
institutions to expand their e-banking services to have a more sophisticated customer base. ICT
infrastructure facilities and services are also not well developed and the banks are unable and
uncapable to extend the e-banking services, therefore, good infrastructure need to be established.

2.1.16 Kumar & Selvam (2011): The authors suggested and advocated that the Banks should
proactively observe the customer’s preferences with respect to use of distribution channel for
effective response, Bank should focus on significant features of security and secrecy as well as
efficient operation of Electronic Banking services.

2.1.17 Joshua & Koshy (2011): They initiated that the occurrence and period of procedure of the
particular electronic self-services among ATM users illustrates that this mode of banking has, in
fact, developed the most popular one, surpassing the traditional branch banking. However,
occurrence and period of the usage of internet banking is a distant second showing that there is
much scope for improvement affecting to its usage, while the same concerning tele banking and
mobile banking is only marginal.

2.1.18 Nataraan, Balasubramanian & Manickavasagam (2010): They discovered in their study
that the ATM is originated to be the most favored channel followed by Mobile banking and
Internet banking with more or less equal weights. When it arises to providing various purposes for
which SSTs are used, the internet banking is extensively used for Service requests, availing

19
information and fund transfer followed by mobile banking and ATM as customers use Internet and
mobile for service requirements and availing information.

2.1.19 V. Rani (2012)-Progress of Banking in India: Customer’s Perspectives: This paper is

concerned with the numerous means of doing banking by electronic means. The paper has been
divided into 4 divisions dealing with 4 features of E-banking i.e. ATM, Mobile banking, Internet
banking,and Credit cards. The stidy is fundamentally concerned with the customer feature of
banking penetrating for customer satisfaction level. This is a proportional study of Public sector
banks, Private sector Indian and foreign banks.

2.1.20 Factors Affecting adaption of Electronic banking: An analysis of the perspectives of

Bank’s customers-Mohammad Al-Smadi, Muhammad Ibn, Saud Islamic ( 2012): Electronic
banking services are being used with cumulative occurrence in most of the countries, including
Jordan. Even though earlier studies have established the significance for such services for both
banks and customers, the level of electronic banking services implementation in Jordan is still low.
This study purposes to recognize and understand factors that affect bank customers' use of
electronic banking services. This study also incorporates technology acceptance model with the
theory and concept of planned behavior model (TPB) and incorporates five cultural dimensions
and professed risk to propose a theoretical model. The primary data were collected from
questionnaires which were distributed to random banking customers in all 26 licensed banks in
Jordan. Multiple regression analysis was engaged to test the hypotheses. The key outcomes of the
study are ambiguity prevention has a optimistic and important influence on perceived
effortlessness of use and perceived usefulness. Perceived risk has the durable influence on
customers' attitude, which in turn influences customers' purpose to use electronic banking services.

2.1.21 V Vimala (2015) in his article "An Evaluative Study on Internet Banking Security
among Selected Indian Bank Customers ": He quantified that Internet banking is very
convenient and fast, it is delayed with numerous security issues. Banking institutions have taken
several measures and procedures to make certain safety measures for their customers while
performing various transactions online banking sector is one of the major beneficiaries of the
Internet revolution and the development of banking technology products have been unusually
accumulative. The predominant improvement of Internet banking is that people can pay out the

20
services sitting at home, without visiting the branch. This benefits customers to comprehensive
their transactions in the fraction of time, thus saving both time and effort. Internet banking system
demonstrates to be very multipurpose in implementation transactions like deposits, balance
inquiry, withdrawal, viewing the bank statement, and record of recent transaction. In view of all
the benefits, security of the financial information of customers is a very major concern of all banks.
The Banking industry is one of the businesses that have used the full potential of IT to help with
increase banking services and opportunities to its customers and banking transactions. These
facilities assisted millions of customers to achieve their transaction anytime and anywhere
smoothly,easily, and quickly with perfections. National and international level but, very few works
have focused on the Internet banking, its usage, safety measures and its perceptions, attentiveness
level, satisfaction levels, security issues, financial frauds and attitudes and behavior of the internet
banking.

2.1.22 Sowmya K, Dr Yathish Kumar (2015) in their article "Customer Satisfaction Factors
towards E-Banking Services: Study with reference to Axis Bank of Mangalore City ": They
indicated that Electronic-Banking concept is a gift to the banking field was very successful in the
banking era. Customers prefer e-banking in arrears to the factor of suitability, convenience,
accuracy, tangibility, reliability, consistency, customer loyalty and availability. This study was
commenced in mangalore area. E-Banking suggests lot of benefits to the customers, as it is a
phenomenal miracle to them, that they can do their banking transactions by their own. With the
help of E-Banking services banking transactions can be carried out anytime and anywhere but it is
no longer free from shortcomings; however, there are some loop holes such as connectivity issues,
leakage of data, hidden charges, server problems and enlarged frauds. Customers are the main
basis of any business, so customer satisfaction plays a key role in all the organizations. Emphases
on the factors which affect the customer satisfaction towards e-banking services. Satisfaction of
the customers is the major consideration for any business. The different factors manipulating
satisfaction of the customers towards e-banking services are easy and convenient banking,
efficiency, assurance, accuracy, reliability, customer services, responsiveness, safety, security and
tangibility.

2.1.23 Reeta Clonia. (2016) in his article "E-banking in India: Current and future prospects
": It is necessary for the banking sector additionally that in lieu of the traditional banking it should

21
adopt electronic banking and some emerging policies and procedures in order to influence and
preserve existing as well emerging customers. E-banking is the most pioneering trend among the
customers in the present era of thrust for additional expeditious and secured financial services. The
transfer from the traditional banking to e-banking has been an inspiring modification in banking
transactions. Enlarged competition, the advancement of information & communication
technology, and transfiguring business environment etc. are the significant concerns that have
forced banking services to transfigure. Banking industry in India and additionally considered the
magnification rate and future estimates of the e-banking services provided by the Indian banks in
this regard. Economic growth & development of any nation is primarily prejudiced by the
improvement of the banking sector in that particular nation. In the present era of technology
demand of financial services is transfiguring at a very expeditious haste. To meet these ordinate
transcriptions adoption of emerging progressive technology in banking sector is compulsory to
accommodate existing customer and to magnetize more customers with a the banking sector is
increasingly growing which simplify the appropriate utilization of financial resources, immensely
massive flow of investment, intermediation activities as well as functioning in a rapidly innovating
industry to facilitate its customers.

2.1.24 Amutha D (2016), in her article about “A Study of Consumer Awareness towards e-
Banking”: This paper deals with the consumers perception ,awareness and view towards e-
banking system associated to consumer awareness in the direction of electronic-banking system in
Tuticorin District of Tamilnadu. Data for this study were collected from primary as well as
secondary bases. Random Sampling approach was used for the study. As per the study, the
investigator regulates that the most of the bank customers are aware approximately all the banking
services in the district of Tamilnadu. The banks additionally have to yield essential phases to
educate the agriculturalists concerning the innovative technology and other services offered by the
banks.

2.1.25 John Ditto A. (2017) in his study about “A Study on Customer Perception and
Satisfaction towards Net Banking”: He quantified that E-banking is one of the emerging trends
in the Indian banking. The expansion progress in the Information and Communication Technology
(ICT) have carried approximately a lot of deviations in Banking Industry, it has been in the form
of E-Banking or Net banking or Online Banking or Internet Banking, which is now replacing the

22
traditional banking mechanism. The main aim and objective of the study is to find out the customer
perception and satisfaction towards net banking. The study was completed based on interview
scheduled with a sample of hundred respondents. The data were examined by means of simple
percentage analysis and chi-square test to find out the customer perception and their satisfaction
towards internet banking.

2.1.26 Renuka R. & Dr. V. Karthik (2017) in their research paper about “E-Banking services
to Rural Customers – A Study with special reference to Thirupur District”: He detailed that
Banks act as the backbone of economic development. They instruct the habit of saving and the
share of banking and insurance within the service industry is very important. The most recent
development in information and communication technology, internet has become crucial tool for
current business. It has developed as the leading medium, and advanced distribution channel for
businesses. RBI realized that rural development is the key for economic development Indian
Government . Therefore, this study aims to analyze the banking opportunities to rural Farmers.

2.1.27 Dr.T. Santhiya Ran, A. Saravanan (2018) in their article " A Study On Customer
Satisfaction Towards Net Banking with Special Reference to General Banking Customer in
Coimbatore City": He stated that customer’s satisfaction towards internet banking of all Banks
has been elicited and analyzed. In addition, this part comprises of demographic profile of
customers and bank transaction details and reasons and causes for using internet banking has been
taken into consideration. As India captivating giant leaps towards globalization of internet banking
in India all the banking sector to be premeditated with India just how attitude concerning element
of existing banking service might influence to customer decision to used internet banking has not
been investigated. As customer get more and sophisticated, getting insight about modern banking,
via internet banking has registered as primary data concern for all principal and forthcoming banks
in India. There is a vibrant necessity to develop a enhanced understanding of how customers
calculate these services and increase thier satisfaction. Customer satisfaction is one of the most
important aspects that determines the success or failure of an electronic banking services in India.
An online banking also known as electronic payment that enables customer of a banks conduct
range of financial transaction through the financial institution websites. customer satisfaction
supports to identify that who is the consumer , what they want how they are reached to internet
banking system.

23
2.1.28 C K Sunith. (2019) in his article "Customer Satisfaction in E-Banking Services”: The
author stated that Electronic banking incorporates systems that facilitate individual customers to
access their accounts, manage and the transactions with speed and acquire current and updated
information on latest and newest financial products and services through public or private
networks. It accommodates a variety range of platforms such as online banking, internet banking,
telephonic and television banking, ATMs, mobile phone banking as well as personal computer
based and offline banking services. From the time when most of these technology services have
become popular in our country, customers now have every occasion to willfully select and exploit
the features provided by progressive electronics and information technologies such as ATMs,
internet, personal digital assistants, mobile phones and personal computers and experience
electronic banking services through privileges and facilities delivered with assistance from modern
technologies. Banks will have to experience capital costs and incorporate advanced technologies
to save on operating costs and to earn customer goodwill, but must also extract maximum earnings
from such assets while decreasing operating expenses at the same time. conceptual model that
proficiency and productivity of banking services, precise and timely information, well-organized
web portal management as well as customer relationship management, demonstration and training
of customers and economy of services determine the extent of satisfaction of E Banking customers.
customer is distinguished from a consumer in the sense that a customer pays for a product or
service while a consumer is the end user who experiences a product or service.

2.1.29 Shilpan Vyas (2012) in their article " Impact of E-Banking on Traditional Banking
Services: The study identified that Internet banking, any investigation or transaction is processed
online without any reference to the branch (anywhere banking) at any time. Provided that Internet
banking is progressively becoming a need to have than a nice to have service. The net banking,
therefore, now is more of a standard rather than an exception in many advanced countries owing
to the fact that it is the cheapest way of providing banking services. E-banking provides enormous
benefits to consumers in terms of ease and cost of transactions, also through Internet, telephone or
other electronic delivery. Electronic finance has become one of the most needed high-tech changes
in the financial industry. Electronic finance is the provision of financial services and markets that
uses real-time transfer and get the feedback on the information about transaction from the bank
when the client does shopping in the chosen web-site. They are easy to set up, so many of new
entrants will arrive. Old-world systems, cultures, values and structures will not hinder these new

24
participants. Instead, they will be flexible and approachable. E-banking gives consumers much
supplementary choice. Consumers will be less inclined to remain loyal. The electronic devices
which perform interact with customers and communicate with other banking system is called
electronic banking delivery channels.

2.1.30 Md. Khaled Bin Amir, Dr. Hasina Sheykh (2017) in their article "Analysis of
Customer Satisfaction on Online Banking: A Case Study on “One Bank Limited”- The study
specified that customers are enquired about their satisfaction level on online banking. After
piloting a detailed research, online banking services of One Bank Limited, is fairly good and
satisfactory but customers were not aware and enthusiastic to take this services. But level of
satisfaction is superior for some limitations and less for some limitations. Similarly, customers are
satisfied with security and user approachability of the website of the banks, and slightly neutral in
perception with update occurrence. It is clear from the evidence that nearly all the respondents
were educated, but many of them provided unbiased feedback as they do not use online banking
services or are indifferent to this services. Information technology has been used comprehensively
in this regard to uphold stride in this transformation. The thought of physical banking bit by bit is
going to be outdated now. Physical banking is going to be exchanged by internet banking very
shortly. This inclination of change also affected Bangladesh like any other developing countries.
Besides internet banking is more convenient and suitable than physical banking because internet
banking never closes, anyone can enjoy banking services anytime from anywhere. For this reason,
internet banking has become an important measurement tools to attract larger customer base.
Consequently, it is now considered as a tool to measure customer satisfaction.

2.1.31 A STUDY ON FACTORS DETERMINING THE CUSTOMER PERCEPTION

TOWARDS DIGITAL BANKING SYSTEM IN MADURAI Dr.S.Nambi
Devi,Dr.P.Maheswari (2018): Digitalization of services has transformed a range of business
aspects in our daily life. The main aim of digitalization is to reduce human dealings, human
fault, and ‘doing it right the very first time’. The banking sector is no exception in
implementing Digital Transformation. All digital banks are possible as a consumer option,
but people should have a requirement for physical take advantage certain situations. This
study is to investigate the customer perception towards the digital banking services and to
identify the main factor affecting the usage of Digital banking in Madurai. Bank customers

25
were included with the most motive of collecting information about digital banking. The
data are going to be collected from the 74 respondent this was a convenience sampling. Bank
customers were included with the most motive of collecting information about digital
banking. So, this was a convenience sampling.

26
 CHAPTER 3-
INDUSTRY AND
COMPANY PROFILE

27
3.1 INTRODUCTION TO BANKING SYSTEM

The theory of banking possibly have commenced in ancient Assyria and Babylonia with merchants
offering loans of grain as collateral within a barter system. Creditors in ancient Greece and through
the territory added two important innovations and inventions that is they accepted deposits and
adjusted money. Archaeology from this era in ancient India and China as well illustrations the
evidence of money lending.

The banking sector is that the lifeline of all the modern economy. It is one amongst the significant
financial support of the monetary sector, which plays an important role within the functioning of
an economy. it's vital for economic development of a rustic that its financing requirements of
industry, trade and agriculture are met with sophisticated grade of assurance and responsibility.
Thus, the event of a rustic is integrally linked with the event of banking. in a very modern economy,
banks are to be considered not as dealers in money but because the leaders of development. They
play a vital role within the deployment of deposits and disbursement of credit to numerous sectors
of the economy. The industry reflects the economic health of the country. The strength of an
economy depends on the strength and efficiency of the economic system, which sequentially be
determined by on a sound and solvent industry. A sound industry efficiently mobilized savings in
productive sectors and a solvent banking industry safeguards that the bank is capable of meeting
its requirement to the depositors.

In India, banks are playing a vital role in socio-economic progress of the country after
independence. The banking sector is dominant in India because it accounts for quite half the assets
of the financial sector. Indian banks are inquiring a captivating stage through rapid changes led to
by financial sector reforms, which are being implemented in a very phased manner. the present
process of conversion should be viewed as an occasion to convert Indian banking into a sound,
strong and vibrant system capable of playing its role efficiently and effectively on their own
without imposing any burden on government. After the liberalization of the Indian economy, the
govt. has announced variety of reform measures on the idea of the advice of the Narasimhan
Committee to form the banking sector economically viable and competitively strong.

The current global crisis that hit every country raised various issue regarding efficiency and
solvency of banking system in front of policy makers. Now, crisis has been almost over,
Government of India (GOI) and Reserve Bank of India (RBI) are trying to draw some lessons. RBI

28
is making necessary changes in his policy to ensure price stability in the economy. The main
objective of these changes is to increase the efficiency of banking system as a whole as well as of
individual institutions. So, it is necessary to measure the efficiency of Indian Banks so that
corrective steps can be taken to improve the health of banking system.

The term “Banking Technology” refers to the use of sophisticated information and communication
technologies together with a secure, reliable, affordable manner and sustain competitive advantage
over other banks. In the competitive financial market, the banks with the latest technology and
techniques are more successful in the modern civilization. Through this banking, business can
generate more and more profitability thus retaining Customers. Now- a -days banks are not
following the traditional or conventional banking with manual operations. Banks have moved from
disbursed to a centralized environment, which shows the impact of technology on banks. Banks
are using new tools and techniques to find out their customer’s needs and satisfaction and offer
them tailor made products and services to make it convenient.

The perception of the Customers towards the performance of the Financial Service Provider, based
on the expectation and the perception gap the Service Provider can analyze the degree of variation
required to satisfy the Customers in terms of the services. Hence it can be accepted as a parameter
for improving the performance of the branch. The customer is king and the service providers are
rushing to pay observance to the king, the financial service providers are trying to provide their
services to the Customers in the comfort of their homes. The E-banking has emerged as a
convenient channel for these service providers.

3.1.1 EVALUATION OF INDIAN BANKING

The era of the preceding six decades observed that there has been many macro-economic
development of India. The monitory, external and banking policies have experienced several
alterations. The structural changes surrounded by the Indian financial set-up specially in industry
has impact on the evaluation of Indian Banking in several means. Subsequently after the
independence and implementation of banking improvements, the country will see the changes
within the functioning of economic banks. so as to know the changing role of business banks and
therefore the problems and challenges, it might be appropriate to evaluate the crucial development
within the Indian Banking sector. Evaluation of Indian banking could also be traced through four
distinct phases

29
  Phase I (1786- 1969)

 Phase II (1969- 1991)

 Phase III (1991- till today)

PHASE I (1786-1969): During the amount 1786-1986 witnessed the main developments within
the modern banking industry in India. The banking industry started with the inspiration of Bank
of Hindustan in 1770 which ceased to exist in 1830. The archipelago Company established the
three presidency banks: Bank of Calcutta (1806), Bank of Bombay (1840) and Bank of Madras
(1843) which in 1921 united into one Imperial Bank of India and later merged under the identical
name ‘State Bank of India’ also referred to as SBI. together with these more banks came into
existence after 1857 revolt like Allahabad bank (1865) Punjab full service bank from 1894 with
the headquarter at Lahore (currently in Pakistan).

Later, on April 1 1935 the Reserve bank of India was established in agreement with the provisions
and requirements.. The aim objecitve of the RBI is to control and regulate the currency and system
in India. Federal Reserve Bank of India is directly under the Ministry of Finance and RBI always
had to consult the govt. before taking policy decisions.

Then, in 1949 Banking Companies Act was passed which was in future renamed to Banking
Regulation Act 1949. This Act deliberated a good range of supervisory and regulatory powers to
the RBI over the opposite banks. The Act made RBI statutory and administrative unit of the Indian
industry

PHASE II (After Independence phase II-1969-1991): Indian Goverment took major steps to
make a powerful and prevailimg banking industry in India. The construction of the Indian banking
industry is divided into two banks i.e., commercial banks and co-operative banks. Commercial
banks means the banks that offer services to the general public. It further comprises of Public
Sector Banks like Canara, SBI, etc.; private banks like HDFC, Kodak, etc.; regional rural banks
and foreign banks like City bank, HSBC etc. On the conflicting side corporate banks are the banks
that are established under the Cooperative Societies Act whose foremost aim isn't to earn profits
thorough banking business. It is urban cooperative and therefore the state cooperative.

30
Nationalization is that the process of remodeling the private stake into the general public basically
increasing the share of state within the banking sector. the aim behind such a step was to interrupt
the ownership control of the bank by few families and concentration of wealth and economic power
in an exceedingly few hands. The process of nationalization within the future led to economic
stability and also strengthened the economy of India. Thus, Nationalization of the banks
transformed the history of the banking industry in India

During 1955 the central government entered the banking business with nationalization of the
Imperial bank of RBI took a 60% stake and formed a replacement bank SBI. The nationalization
of banks enlarged the sphere of public sector banking which before 1969 was confined to only the
depository financial institution of India.

The Third Phase (1991-till today): The third Phase also comprises the current phase. The Indian
government took the banking sector to the contrasting level which has given away to the foreign
investment and modernized and simplified technique to handle the changeover. The introduction
of internet banking, ATM, Electronic-banking, mobile banking gave a replacement life to the
banking industry which we all are be subjected to currently. The government stretched out the
economy for the foreign investors and personal to freely invest in India. it has also brought many
policies to assist small entrepreneurs and businessmen.

In 1982 NABARD was established to provide credit to the farmers to support and fund the
agricultural work. An exchange Bank called Small Industry Development Bank of India (SIDBI)
was established to assist internal trade sale and buy of foreign exchange.

3.1.2 BANKING STRUCTURE IN INDIA

Indian Bank Industry consist of Non-scheduled banks and scheduled banks. Non-scheduled banks
confer with those who are not included in the second schedule of the Banking Regulation Act of
1965 and thus they do not satisfy the conditions and environment laid down by that schedule.
Schedule banks confer with those that are included within the 2nd Schedule of Banking Regulation
Act of 1965 and thus satisfy the subsequent conditions .e., a bank must

(1) have paid up capital and reserve of not but Rs. 5 lakhs and

31
(2) satisfy the Federal Reserve Bank of India (RBI) that its affairs aren't conducted in an
exceedingly manner detrimental to the interest of its deposits.

Scheduled banks consists of “scheduled commercial banks” and scheduled cooperative banks. The
Scheduled banks are further divided into four categories:

(1) public sector banks- and they are further classified as “Nationalized Banks and also the “State
Bank of India (SBI) banks”.

(2) private sector banks- and that are further classified as “Old Private Sector Banks” and “New
Private Sector Banks” that emerged after 1991

(3) foreign banks in India

(4) regional rural banks (that operate exclusively in rural areas to produce credit and other facilities
to small and marginal farmers, agricultural workers and little entrepreneurs). These scheduled
commercial banks except foreign banks are registered in India under the companies Act.

Scheduled Banks in India

Scheudled Commercial Banks Scheduled Co-operative Banks

Public Sector Banks Private sector Banks Foriegn Banks in India Regional rural Banks

Nationalized Banks State Bank of India & Old Private Bnks New Private Banks
its associates

Figure 1

32
3.1.3 BANKING SECTOR IN MANGALORE

The Karnataka State, predominantly the coastline regions of Dakshina Kannada and Udupi,
traditionally and together known as South Canara, is called the cradle of banking in India. This is
for the reason that seven of the country's leading and important banks that are Canara Bank,
Syndicate Bank, Corporation Bank, Vijaya Bank, Karnataka Bank, Vysya Bank and the State Bank
of Mysore originated from this region. The first five in the above list of banks were established in
the districts of Udupi and Dakshina Kannada. These districts have one amongst the best
distribution of banks in India. Between 1880 and 1935, nearly 22 banks were established in coastal
Karnataka, nine of them were in the city of Mangalore.

Canara Bank: on 1 July 1906, Hindu Permanent Fund in Mangalore, India collected handful of
rice from each household, assembled the rice and sold it and then used the money earned for the
Capital to set up a bank. It has full-fledgedly grown ever since and now has almost more than 2542
branches in India and one overseas branch in London. In the financial year 2005-06, Canara Bank
became India's second-largest public sector bank in terms of advances and deposits. The bank
changed its name to Canara Bank Limited in 1910. In 2002-03, the bank went in for its Initial
Public Offer (IPO) and raised Rs.110 crores. The India government holds a 73% stake in Canara
Bank. Canara Bank was established in 1906 by Ammembai Subba Rao Pai established the Canara
Bank.

Syndicate Bank: Syndicate Bank was Found in the city of Udupi in 1925 under the name "Canara
Industrial and Banking Syndicate Ltd" with a capital of Rs.8000/- by three people - Upendra
Ananth Pai, Vaman Kudva, and Dr. T M A Pai. The main aim and objective for affirming the bank
was to outspread financial assistance to the local weavers who were crippled by a crisis in the
handloom industry. In 1963, it got its present name of Syndicate Bank. Now the bank has more
than 2125 branches throughout.

Corporation Bank: Corporation Bank was founded by a group philanthropists headed by Khan
Bahadur Haji Abdulla Haji Kasim Saheb Bahadur in the town of Udupi in 1906 under the name of
"The Canara Banking Corporation (Udupi) Ltd". In 1972, it got its present name of Corporation
Bank and it was nationalized in 1980.

33
Vijaya Bank: Vijaya Bank was established on 23 October 1931 at coastal city Mangalore by A.
B. Shetty and others. The bank was established to help farming community. Later bank grew
phenomenally under leadership of Mulki Sunder Ram Shetty during the 1960s. The Vijaya bank
was nationalized in the 1980s by Government of India. The bank has presence in most of states of
India. Later it was merged with Bank of Baroda along with Dena Bank on First April 2019.

Karnataka Bank: The Karnataka Bank was founded on 18 February 1924 at Mangalore. The
bank initially catered to people of Karnataka, has now spread its network of branches throughout
the country. One of the founders of the bank was Vyasa Achar, and the bank took shape in the
aftermath of patriotic zeal that engulfed the nation during the freedom movement of 20th Century
India.

3.2 PRIVATE SECTOR BANK

The "private-sector banks" are banks where greater parts of stake or equity are held by the private
shareholders and not by government. The private sector banks are split into two groups, old and
new. The old private sector banks existed prior to the nationalization in 1969 and kept their
independence. The new private sector banks are those that have gained their banking license since
the liberalization in the 1990s. The Old private sector banks had been too small in 1969 to be
included in the nationalization and hence preserved their independence whereas the new private
sector banks emerged after the policy change by RBI. The old private banks are smaller in size
and more regional in nature compared to the new ones.

In India private banks are available in plenty and known for offering expeditious service to their
customers. Indian Banking has been dominated by public sector banks since the 1969 when all
major banks were nationalized by the Indian government. However, since liberalization in
government banking policy in the 1990s, old and new private sector banks have re-emerged. They
have grown faster & bigger over the two decades since liberalization using the latest technology,
providing contemporary innovations and monetary tools and techniques.

In 1994, the Reserve Bank of India opened the door for private banks and handed out the policy to
control the private banks. The policy also included the liberation for Private Banks in terms of
their free and independent operation. The first private bank is Trust Bank later known as Oriental
Bank of Commerce, then other private Banks like HDFC Bank, International Bank, ING Vysya

34
Bank, Kotak Mahindra Bank, SBI Commercial Bank, Karnataka Bank, Kashmir Bank, ICICI Bank
and more came. Private banks in India achieved a milestone for serving people and showed its
great commitment. Private banks in India have earned great response for its service and also known
for bringing revolution for serving millions of customers. It offers best option for saving and also
offers various schemes with maximum return. It offers its service 24 hours and made the job of
fund transfer easier by offering new banking service. Besides, there are lots of ATM machines
have been set up by such private banks and made the task of withdrawing liquid money easier. The
private banks are accountable for a share of 18.2 percent of the Indian banking industry.

3.2.1 Difference Between Private sector Banks and Public sector Banks

S
No PUBLIC SECTOR BANKS PRIVATE SECTOR BANKS

The ownership of the Public

Sector Banks are the banks lies The ownership of the Private Sector Banks
1 with the government. is held by the individuals and corporations.

There are 27 Public Sector

2 Banks There are 21 Private Sector Banks

The interest rate on deposits is The interest rate on deposits is marginally

3 usually high lower

4 Market Share 72.9% Market Share 19.7%

5 The customer base is very high The customer base is comparatively low

35
 6 Job security is there Purely based on performance

7 The pension is there No Pension

3.2.2 FEATURES OF PRIVATE BANK

 Eligibility: Clients need to fulfill certain requirements to be eligible to benefit from private
banking services. It usually includes the maintenance of a minimum balance in the form of
deposits, individual retirement accounts (IRAs), investments, or other types of assets. The
minimum amount deposited in the account may also include qualifying linked deposits and
investments.
 Dedicated Represntation: Clients are allotted a dedicated relationship manager, or a team
of people with a thorough understanding of the asset ownership, risk aversion (or lack
thereof), preferences, and long-term financial goals of the client. The relationship manager
facilitates check deposits, initiates wire transfers, orders checks, etc.
 Perks: Clients of private banking often receive benefits such as lower annual percentage
rates (APRs) for mortgages, higher annual percentage yield (APY) on securities such as
certificates of deposits (CDs), free safe deposit boxes, etc. It is possible because charging
even a small amount of interest on a large loan generates substantial revenue for the bank.
 High Management Fees: Clients need to pay large amounts of fees for the services rendered
by private bankers.
 Target Market: The affluent section of society is the major target market of private bankers.
While executing normal lending activities, they may access tax documents or other
personal documents to discover potential clients. However, the activities are also subject
to considerations of conflicts of interest.

3.2.3 THE WORKING AND REGULATIONS

With all the main banks being nationalized in 1969, the private banking sector had been diminished
significantly. In 1991, the Narasimhan Committee laid emphasis on the importance of healthy

36
competition within the banking sector, which had been absent within the post nationalization era
and hence, unequivocally advocated for the entry of personal and foreign banking companies
within the Indian market. Accordingly, guidelines were lied down by the RBI for the establishment
of public sector banks which were as follows:

 The private banks were to be established as public limited companies under the Indian
Companies Act,1956;
 The paid-up capital wasn't to be but Rs. 100 Crore, which was later raised to Rs. 200 Crore
by the 2001 guidelines. This capital is required to mandatorily be enhanced to Rs. 300
Crore within three years of the commencement of business, among other stipulations.

With RBI’s liberalization policy in 1990s, the private sector banks boomed again. In India, they
have been categorized into two types by the financial regulators; Old Private Sector Banks
(emerged before 1968) and New Private Sector Banks (emerged after 1968). At present, there are
22 private sector banks in India. Having witnessed the ill-effects of unregulated expansion of the
general public banks after nationalization, private banks are way more cautious about opening new
branches.

Under the Banking Regulation Act, 1949, the RBI has been entrusted with the complete
responsibility of supervising and regulating private sector banks in India. Under Section 22 of the
Banking Regulation Act, private banks are required to get a license from the RBI to hold on
banking business in India. according to the Reserve Bank’s Guidelines on Ownership and
Governance privately sector banks, every entity would be required to satisfy the ‘fit and proper’
criteria for acquisition of shareholding in an exceedingly private bank beyond 5 percent and no
non-promoter single entity or group of related entities, would have direct or indirect shareholding
or control in any bank in way over 10 percent of the paid-up capital. in step with Section 12B of
the Banking Regulation Act, prior approval of RBI in accordance with its guidelines are required
for acquisition of shares/voting rights of 5 percent or more. within the beginning, the promoters
are required to carry a minimum of 40% of the paid-up capital for a lock-in period of 5 years.
Further, within 15 years of commencement of operations, the promoters of already existing private
sector banks, are required to dilute their shareholding to fifteen percent. For establishment of latest
private sector banks, the promoters will have 12 years to dilute their holdings.

37
In case of unregulated, unlisted or undiversified entities from the financial sector, the limit of
shareholding is 15 percent, whereas just in case of regulated, well diversified, listed entities from
the financial sector or shareholding by the government, supranational institutions or public sector
undertaking, the upper limit of 40 percent is applicable. In March 2004, the foreign investment
ceiling in camera banks was raised to a maximum of 74% from 49% with an aim to reinforce
foreign investment and currently, the voting rights of shareholders have a ceiling of 15%. Further,
if the RBI has supervisory/regulatory concerns regarding a bank and is of the opinion that a change
within the management or ownership is required, it can even allow an individual to accumulate
higher percentage of shares against the needs of the prevailing board. These measures are intended
to further enhance the efficiency of the banking industry by increasing competition and stop
concentration of power through diverse ownership. Further, on May 11, 2005 the RBI laid down
guidelines for the method of merger of personal banks and determination of swap ratio.

Private sector banks mainly target corporate salaried individuals as their consumer base for their
salary accounts and credit cards. In terms of loans and deposits, Private banks appeal to the younger
generation and foreign nationals thanks to their online application processes, simple approval,
better management, faster processing, doorstep delivery and quality customer service. as a result
of the monthly targets and sales goals, their performance as a business is way more reliable as
compared to public sector banks. However, higher processing fees, elevated interest levels on loans
and pre-payment clauses with lock-in periods and penalties make them an unapproachable option
for consumers on a budget. However, with relevancy financial performance in terms of most
parameters like net interest margins and non-performing assets (NPA), in spite of occupying a far
smaller portion of the industry as compared to Public Sector Banks (PSBs), private sector banks
are far better placed.

3.2.4 ADVANTAGES OF PRIVATE BANKS

 Competitive Work Environment: They provide a highly competitive and exciting

work atmosphere to grow as a professional. Professionals are encouraged to take up
challenging tasks and enterprising individuals are rewarded accordingly.
 Performance-Based Incentives: Private Banks usually offer a number of
performance-linked incentives both in monetary and non-monetary forms. This
promotes a spirit of competitiveness in employees and helps boost their morale further.

38
  Instant Work Recognition: Some of the best private banks focus on recognizing
merit over experience and top performers usually receive instant recognition for their
work. The best thing is that recognition and rewards go hand in hand.
 Hands-On Learning Experience: Greater stress is placed on acquiring the necessary
skills and knowledge on-the-job instead of solely relying on training programs.
Although those who perform well could be selected for prestigious training programs
at some of the best institutes.
 Technology-Oriented Outlook: Individuals with a keen interest in technology are
among the preferred choices for premium private banking institutions of the day. This
is aimed at strengthening their resources for continuing the digital expansion of
banking services.
 Fast-Paced Career Growth: Professionals can grow at a fast pace and acquire higher
positions along with greater emoluments within the first few years. This propels even
average performers to do well and keep themselves in the hunt for the next promotion.
 Additional Benefits: Employees are also offered special benefits including a higher
rate of interest on fixed deposits and paid holidays among other things.

3.2.5 DISADVANTAGES OF PRIVATE BANKS

 Longer working hours: Working hours are typically longer and the stress is on
meeting targets instead of leaving the office on time. This is one of the slowdowns in
almost any competitive job and in the long-term, it may potentially affect the health
and personal life of an individual.
 Lesser Job Security: This is one of the biggest disadvantages with private banks that
despite occupying the best of positions, there is no assurance that one cannot be asked
to leave if the situation demands it. Some of the possible reasons might include the
banking industry or the banking institution in question passing through a bad phase.
This is exactly what happened in the wake of the 2008 meltdown when thousands of
private bank employees were shown the door.
 Average Performers Might Suffer: Most of the job roles are cut-out for go-getters
where there is little place for slow learners or average performers. Though not

39
 everyone can be a top performer those who do not perform very well or are not
comfortable taking on challenging roles may not be able to benefit much.

3.2.6 IMPORTANCE OF PRIVATE SECTOR BANK IN INDIA

The private sector banks play an important role within the Indian economy. They indirectly
motivate the general public sector banks by offering a healthy competition to them. the following
are their importance:

 Offering high degree of Professional Management: The private sector banks help in
introducing a high degree of professional management and marketing concept into
banking. It helps the general public sector banks yet to develop similar skill and
technology.
 Creates healthy competition: The private sector banks provide a healthy competition
on general efficiency levels within the banking industry.
 Encourages Foreign Investment: The private sector banks especially the foreign banks
have much influence on the foreign investment within the country.
 Helps to access foreign capital markets: The foreign banks within the private sector
help the Indian companies and therefore the government agencies to satisfy out their
financial requirements from international capital markets. This service becomes easier
for them thanks to the presence of their head offices/other branches in important
foreign centres. during this way they assist an outsized extent within the promotion of
trade and industry within the country.
 Helps to develop innovation and achieve expertise: The private sector banks are
always trying to innovate new products avenues (new schemes, services, etc.) and
make the industries to realize expertise in their respective fields by offering quality
service and guidance.

3.2.7 PRIVATE SECTOR BANKS IN MANGALORE

There are many provate sector banks loacated in and around the mangalore city. They play a very
important role in developing the city. They also provide customers with new facilties and other

40
avenues which are not provided by other banks. They are very customer friendly and are always
in contact with their customers and hence they are increasing their credibility by satisfying the
financial requirements of the customers.some of the private banks located in the city are as follows:

 Axis Bank: Axis Bank Limited is an Indian banking and financial services company
headquartered in Mumbai, Maharashtra. It sells financial services to large and mid-
size companies, SMEs and retail businesses. The bank was founded on December
3rd, 1993 as UTI Bank, opening its registered office in Ahmedabad and a company
office in Mumbai. The bank was promoted jointly by the Administrator of the unit
trust of India (UTI), life insurance Corporation of India (LIC), General Insurance
Corporation, national insurance Company, The New India Assurance Company, The
Oriental Insurance Corporation and United India insurance firm. the primary branch
was inaugurated on 2 April 1994 in Ahmedabad by Manmohan Singh, then minister
of finance of India.
 HDFC Bank: HDFC Bank Limited is an Indian banking and financial services
company, headquartered in Mumbai, Maharashtra. HDFC Bank is India’s largest
private sector bank by assets and by capitalization as of April 2021. it's the third
largest company by capitalization on the Indian stock exchanges. HDFC Bank was
incorporated in 1994 as a subsidiary of the housing development Finance
Corporation, with its registered office in Mumbai, Maharashtra, India. Its first
corporate office and a full-service branch at Sandoz House, Worli were inaugurated
by the Union government minister, Manmohan Singh.
 Karnataka Bank: Karnataka Bank Limited is India's twelfth largest private sector
bank. it's an 'A' Class Scheduled commercial bank based in Mangalore in Karnataka,
India. The tagline of the bank is "Your Family Bank Across India”. Karnataka Bank
Limited was incorporated on 18 February 1924, and commenced business on 23 May
1924. Its founders established it at Mangalore, a coastal town within the Dakshina
Kannada district of Karnataka. Among the founders, who created the bank to serve
the South Kanara region, was B. R. Vysaray Achar, K. S. N. Adiga, who served as
the Chairman from 1958 to 1979. Karnataka Bank Limited has adopted Core banking,

41
 Internet banking and has established its "Money Plant" [1,001 ATM Machine] system
across the country.
 Federal Bank: Federal Bank is one amongst the private bank India. it's one in all the
primary among traditional banks in India within the area of using technology to
leverage its operations. Incorporated within the year 1931 and is headquartered in
Aluva, Kerala. Federal Bank offers a various service to its customers. it's an oversized
network of 1284 branches and 1569 ATMs spread across different states in India. It
also founded its representative office in Abu Dhabi & Dubai.
 ICICI Bank: ICICI Bank Limited is an Indian multinational financial services
company with its registered office in Vadodara, Gujarat, and company office in
Mumbai, Maharashtra. It offers a large range of banking products and financial
services for corporate and retail customers through a spread of delivery channels and
specialized subsidiaries within the areas of investment banking, life, non-life
insurance, working capital and asset management. The bank was founded because
the Industrial Credit and Investment Corporation of India Bank, before it changed its
name to ICICI Bank. The parent company was later merged with the bank.
 IDFC First Bank: IDFC First Bank (formerly IDFC Bank) in Mumbai that forms a
part of IDFC, an integrated infrastructure finance company. The bank started
operations on 1 October 2015. IDFC First received a universal banking license from
the Federal Reserve Bank of India (RBI) in July 2015. In 2014, the bank of India
granted an in-principle approval to IDFC Limited to line up a replacement bank
within the private sector. Following this, the IDFC Limited divested its infrastructure
finance assets and liabilities to a brand new entity - IDFC Bank. The bank was
launched through this demerger from IDFC Limited in November 2015.
 Kotak Mahindra Bank: Kotak Mahindra bank limited is an Indian banking and
financial services company headquartered in Mumbai, Maharashtra, India. It offers
banking products and financial services for corporate and retail customers within the
areas of private finance, investment banking, life insurance, and wealth management.
In 1985, Uday Kotak founded what later became an Indian financial services
conglomerate. In 2015, Kotak Bank acquired ING Vysya Bank in an exceedingly
deal valued at ₹150 billion (US$2.1 billion). With the merger completed, Kotak

42
 Mahindra Bank had almost 40,000 employees, and therefore the number of branches
reached 1,261.[10] After the merger, ING Group, which controlled ING Vysya Bank,
owned a 7% share in Kotak Mahindra Bank.
 IndusInd Bank: IndusInd Bank Limited may be a new-generation Indian bank
headquartered in Pune. The bank offers commercial, transactional and electronic
banking products and services. IndusInd Bank was inaugurated in April 1994 by then
Union finance minister Manmohan Singh. IndusInd Bank is that the first among the
new-generation private banks in India. The bank began its operations on 17 April
1994 under the chairmanship of S. P. Hinduja with the primary objective of serving
the NRI community.

 Lakshmi Vilas Bank: Lakshmi Vilas Bank Limited was an Indian private sector
bank established in 1926 in Karur, Tamil Nadu. As of November 2020, the bank has
566 branches in 19 states and 1 union territory. On 27 November 2020, the bank was
merged into the Indian subsidiary of DBS Bank. Lakshmi Vilas Bank was founded
in 1926 by a bunch of seven businessmen of Karur under the leadership of Shri V. S.
N. Ramalinga Chettiar. Their objective was to cater to the financial needs of
individuals in and around Karur who were occupied in trading businesses, industry
and agriculture. The bank was incorporated on 3 November 1926 under the Indian
Companies Act, 1913, and obtained the certificate to commence business on 10
November 1926.

 Karur Vysya Bank: Karur Vysya Bank is a Scheduled banking concern in India. it
has completed 100 years of operation and is one among the leading banks in India,
headquartered in Karur in Tamil Nadu. it was founded in 1916 by M. A. Venkatarama
Chettiar and Athi Krishna Chettiar. The bank primarily operates in treasury,
corporate/wholesale banking and retail banking segments. Though the bank started
with a seed capital of ₹1 lakh, like most banks, the seed capital has grown, as have
the services sold. The bank is managed and guided by the Board of Directors drawn
from different fields.
 South Indian Bank: South Indian Bank Limited (SIB) is a major private sector bank
headquartered at Thrissur in Kerala, India. South Indian Bank was registered as a
private company under the companies Act of 2013 and commenced business on 29
43
 January 1929 The South Indian Bank Ltd. was formed by a bunch of 44 enterprising
men of Thrissur who contributed ₹500/- each to the initial paid-up capital of
₹22,000/-. Their main objective was to serve the merchant community of Thrissur by
freeing them from the clutches of the money lenders who charged exorbitant rates of
interest.
 CSB Bank: CSB Bank Limited, formerly Catholic Syrian Bank Limited, is an Indian
private sector bank with its headquarters at Thrissur, Kerala, India. CSB was founded
on 26 November 1920, well before Indian independence, and opened for business on
1 January 1921 with an Authorised capital of ₹5 lakhs and a paid up capital of
₹45,270.

 Jammu and Kashmir Bank: Jammu and Kashmir Bank Ltd. is a J&K–based Indian
govt. owned scheduled banking and financial services company incorporated on 1
October 1938 by the King of Jammu and Kashmir, Hari Singh. it's under the
ownership of Ministry of Finance , Government of India. The bank functions as a
universal bank in Jammu and Kashmir while within the remainder of India as a
specialized bank. The bank was established as a semi-state bank with participation in
capital by state and also the public under the control of authorities.

 Tamilnad Mercantile Bank Limited: It is a bank whose headquarter is located at

Thoothukudi, Tamilnadu, India. It was founded in the year 1921 as the Nadar Bank,
later changed its name to Tamilnad Mercantile Bank Limited in November 1962.
TMB was rated as fastest growing Private Sector Bank constantly for 5 years from
2010 to 2015. Tamilnad Mercantile Bank was the first private sector bank in India to
introduce computerization for branch-level operations. The bank adopted
modernization as early in the year 1983.

 IDBI Bank: Industrial Development Bank of India (IDBI Bank Limited or IDBI
Bank or IDBI) was established in 1964 by an act to provide credit and other financial
facilities for the development of the fledgling Indian industry. It is a development
finance institution and a subsidiary of Life Insurance Corporation. Many national
institutes find their roots in IDBI like SIDBI, India Exim Bank,[4] National Stock
Exchange of India and National Securities Depository Limited. Specialized

44
 Development Financial Institutions (DFIs) such as the IDBI, NABARD, NHB and
SIDBI were set up to meet the long-term financing requirements of industry and
agriculture.

3.3 ROLE OF DIGITAL BANKING IN PRIVATE SECTOR BANKS

Private banks find themselves at the centre of a perfect storm. Most of them are functioning a
business classical suffering from dropping revenues, higher governing expenditure and rising
overall costs. This marks them prone to falling behind, not only in significance to clients and in
client service but also in terms of being able to run an proficient back-end operation. They
consequently need to catch up through their complete value chain despite this being perhaps the
worst-possible moment, when coffers are empty and competition is powerful. Digital innovation
and new technologies offer chances for the private banking sector. For illustration, transitioning
regulatory and compliance workflows from manual to digital provides improved efficiency, cost
savings and lower time to revenue, in addition to a more positive customer experience. The Key
mechanisms and success factors for digitization in private banking are:

 In the digital age, most of a private bank’s value-chain components used to deliver
products and services are becoming progressively commoditized and can be simulated
at much lower costs, while providing more adapted and modified results
 New communication channels through web and mobile apps appeal to new customers
already using technology profoundly, while rules-based and centrally formulated
investment methods start to deliver higher durable returns
 Data collection and analysis is becoming key for achieving greater client centricity
and relevance, especially linking internally produced data to external available data
will provide players with new ways to approach and involve clients
 Due to these changes, the traditional reasons for using a private bank are weakening –
and will to some degree disappear.
 In order to cope with these challenges, private banks could use their competitive
advantage (existing client base, brand recognition and clients’ trust) to reposition their
business model in new digital world or they could follow a niching strategy.

45
3.3.1 SIGNIFICANCE OF DIGITALIZATION

Digital banking has become a advantage to the Banking Industry. Adaption of Digitalization is
very significant for Banking sector because by implementation of the new trend the banks can
improve their customer service. It decreases the human error and builds customer faithfulness. The
first bank in India to offer internet banking was the ICICI bank in the year 1996. Digitalization has
immeasurable worth, some of which are:

 Digitalization leads to huge benefits and aids in the form of abolition of paper based
culture. It leads to allowing speedy transactions.
 Digitalization upsurges the access of the users of banking amenities.
 Benefits in providing improved facilities. Digitalization safeguards the provision of
enhanced services.
 Computerization of the back offices might enable the banks to realize tremendous
cost savings. Lack of digitalization often leads to high costs in the form of error
costs, maintenance costs, labor costs, and infrastructure costs.
 Absence of competences in the banks is a consequence of the lack of digitalization,
as digitalization is the most effective way to hostage these inefficiencies.
 Digitalization in banking is mainly focused upon connecting people to their money
more precisely & promptly.
 Helps the consumers to uphold a more systematized life. There has been a histrionic
transformation in the level of customer service.
 The bandwidth of reach of the banks has also been on an all-time high as a result of
the digitalization. It has also led to a diffusion in the banking sector in India. It helps
to lead to financial presence of people in the most operative manner.
 The customer is capable to check his bank histories anytime he needs and a number
of banking services are offered to him round the clock. Transferring money is easier,
quicker, and safer.

3.3.2 ADVANTAGES

 Enhanced customer experience.

 Decrease of overheads for banks and customers as well by using ATMs, cashless
transactions etc.
46
  Technology is non-discriminatory. Everybody will be treated equal at banks.
 It diminishes human error.
 Monotonous tasks will be abolished by computerization.
 The rural and urban gap will be reduced and eliminated.
 Productivity and efficieny will be improved.
 With the growing cashless transactions, fake notes hazard will be reduced.
 Cashless transactions guarantee transparency and decrease black money foundation.
 In digitization Cashless transactions hostage tax avoidances.
 The problem of fake notes can be removed by digital payment.

3.3.3 DISADVANTAGES

 Digitization lessens the struggle of employees and in future results in loss of jobs. Loss
of jobs will be remunerated through a formation of new occupations such as cyber
security, research team for innovation in technology etc.
 Banks will be more helpless to cyber-attacks as Cybercrime sand other methods of
thefts will be amplified. There is a lack of digital consciousness in the country, fail to
recall about awareness about cybercrimes.
 A large part of Indian population is digital illiterates so they are not comfortable with
banking digitization

3.3.4 DIGITAL PAYMENTS

Digital payment is a transaction that takes place via digital or online modes, with no physical
interchange of currency involved. It means that both parties, the payer and the payee, use electronic
mediums to exchange cash. Digital payments can take place on the internet as well as on physical
grounds. For instance, if anyone buys something from Amazon and pay for it via UPI, it qualifies
as a digital payment. Likewise, if anyone purchase something from local Kirana store and choose
to pay via UPI instead of handing over cash, that also is a digital payment. There are various
methods od digital payments available in India some of them are:
 Banking Cards: In India the broadly used way is banking card or also called as debit
cards, credit cards, or prepaid cards as an substitute to cash payments. They deliver
customers more security, accessibility and control than any other mode of payments.

47
 They provide 2 factor authentication in order to secure the payments made. It is a
popular mode of digital payments. These cards give the control to purchase or buy
items in internet , stores, through phone calls etc. RuPay, VISA, MasterCard are some
of the examples of card payment systems.
 Unstructured Supplementary Service Data (USSD): USSD was launched for those
segment of India’s population which don’t have access to proper banking and internet
services. Under this scheme, mobile banking transactions are conceivable without the
internet connection by merely dialing *99# an the mobile phones. This number is
operational across all Telecom Service Providers (TSP). It permits the customers to
benefit all the service like interbank account fund transfer, balance enquiry, get the
mini account statements.
 Aadhaar Enabled Payment Systems (AEPS): AEPS is a bank led models which
allows digital payments that was introduced to influence the existence and spread of
Aadhaar. Under this system, customers can use their Aadhaar-linked accounts to
transfer money between two Aadhaar linked Bank Accounts. As of February 2020,
AEPS had crossed more than 205 million as per NPCI data. It allows online
interoperable financial transaction at PoS (Point of Sale / Micro ATM) through the
Business Correspondent (BC)/Bank Mitra of any bank using the Aadhaar
authentication.
 Unified payment Interface (UPI): UPI is a payment system that culminates
numerous bank accounts into a single application, allowing the transfer of money
easily between any two parties. As equated to NEFT, RTGS, and IMPS, UPI is far
more precise and standardized across banks .
 Mobile wallets: A mobile wallet is a way to carry cash in digital format. Frequently
customers link their bank accounts or banking cards to the wallet to enable protected
digital transactions. One more way to use wallets is to add money to the Mobile
Wallet and use the supposed balance to transfer money. Moreover, notable private
companies have also established their presence in the Mobile Wallet space. For
example: Jio Money, Paytm, Mobikwik, Freecharge, Airtel Money, SBI Buddy,
SpeedPay etc.

48
 Bank Prepaid Cards: A bank prepaid card is a pre-loaded debit card issued by a
bank, typically single-use or reloadable for numerous uses. t is unlike from a standard
debit card as the latter is all the time connected with your bank account and can be
used numerous times. This may or may not smear to a prepaid bank card.
 Point of sale: A point of sale (PoS) is the place wherever sales are made. On a
worldwide level, a PoS may be a mall, a market or a city. On a micro level, retailers
cogitate a PoS to be the part where a customer finishes a transaction, such as a
checkout counter. It is also known as a point of purchase. The most common kind of
PoS machine is for Debit and Credit cards, where customers can make payment by
simply swiping the card and entering the PIN.
 Internet Banking: Internet Banking, also called as online banking or E-banking, is
an electronic payment system that allows customers of a bank or other financial
institution to conduct a wide range of financial transactions through the financial
institution's website. Now, maximum Indian banks have launched their internet
banking services. It has become one of the most prevalent means of online
transactions. RTGS, NEFT, or IMPS are few of the top ways to make transactions
through internet banking.
 Mobile Banking: Mobile banking is a service provided by a bank or other financial
institution that lets its customers to conduct many different types of financial
transactions distantly using a mobile device such as a smartphone or tablet. It
practices software, typically named as an app, provided by the banks or financial
institution for that purpose. Every Bank offers its personal mobile banking App for
Android, Windows and iOS mobile platforms. Digital payment methods, such as
NEFT, IMPS, RTGS, IMPS, investments, bill payments, bank statements, etc., are
presented on a single platform in mobile banking apps.
 Electronic Funds Transfer (EFT): Electronic Funds Transfer (EFT) is a system
where anybody who wishes to make payments to another person / company, etc. one
can approach bank and make cash payments or give directions to transfer funds
straight from his/her account to the recipient bank account. Filled details such as the
recipient's name, bank account number, type of account (savings or current account),
bank name, city, branch name, etc. must be provided to the bank at the moment of

49
 requesting such transferals so that the amount of the recipients' account is correct and
faster. RBI is the EFT service provider.
 Real-time gross settlement (RTGS): The real-time settlement system, through
which banks give electronic instructions to transfer funds from their account to the
another bank account. The RBI upholds and functions the RTGS system and offers
an well-organized and more rapidly means of funds between banks that simplifies its
financial operations. As the name proposes, the transfer of funds between banks is
done in real time.

 Micro ATMs: Micro ATM meant to be a device that is used by a billion Business
Correspondents (BC) to deliver basic banking facilities. The platform will assist
Business Correspondents to conduct instantaneous transactions. The micro platform
will enable purpose through low cost devices (micro ATMs) that will be connected
to banks across the country. This would enable a person to promptly deposit or
withdraw funds irrespective of the bank allied with a particular BC. The basic
transaction types, to be maintained by micro ATM, are Withdrawal, Deposit, Fund
transfer and Balance enquiry.

3.3.5 ADVANTAGES OF DIGITAL PAYMENTS

 E- Commerce: In today’s chaotic world where there is no time for shopping, go to banks,
people can simply do their banking transactions through their phones, online shopping,
buying and selling 24×7 hand in hand. It gives an opportunity to people to do their shopping
or transaction settlement in busy hours. Additionally, e-platform gives a variety of product
line in a single space which saves time even more, while going for a shopping in a brick
and plaster to find the best outfit from one outlet to another, we generally consume a lot of
time.
 Good for Industry: Going digital drops the working cost and increases the competence of
the personnel which will help industries to grow at a faster pace. At times, it also takes a
time to clear a cheque payment from a bank which ultimately delays work and various
other activities to perform with the short time frame. But with the introduction of digital
cash payments work moves at a rapid pace. Instant payment gateways give the liberty of
paying money on quick basis because of which work moves at a faster pace.

50
  Reduce money theft: We often hear people saying that somebody has ransacked their
money. Such things will become a thing of the past because, with the developing usage of
digital cash, people have started going cashless. Currently, people barely keep money in
their pocket because of which theft of money has reduced a lot.
 Job opportunities will increase: Technical progression will boost jobs in the IT sector, as
more of tech specialists will be essential to have appropriate control over the digital world.
Not only information technology Industries, but several other industries will also gain from
it, as the access to use technology is needed everywhere in this competitive world.
 Easy payments: No need to take out the cash from ATM again and again for doing
purchase. Simply, Mobile phones will work and ease out to do the payment across all
merchants stores. Several modifications of apps are already launched, which are – mobile
wallets, UPI application from banks, Aadhaar merchant app, NUUP’s USSD code. With
just a few clicks, these apps will help you necessary transfer payments against any of your
purchase.

3.3.6 DISADVANTAGES OF DIGITAL PAYMENTS

Internet Connectivity: Transactions or purchasing as in shopping cannot be held without internet

facility. For that reason, the internet can come to be a limitation in enabling e-commerce activity.
On the other hand, payments can be done without using the internet, but then also, for buying a
product online one needs to have an internet connection or availability.
Security and extortions: For any online transaction one must make sure the gateway is highly
protected. Phishing emails, Beware of hacking, which unsuspectingly can take necessary details
and make use of it. Even though the transactions made are regularly initiated by the banks, but on
a failure side, it can cost high on one’s mental peace. It takes at least 3-7 business days for any
return of payment.
Costly: While companies and dealers are giving their customers so much of discounts on the
purchase of goods through digital cash, there are several hidden costs like maintaining servers,
data storage cost, the requirement of machines which are actually loading heavy cash load on them
significantly.
Confidential data management: It is vital to know that who will be held responsible for
managing the data. Every time there is a transaction, the personal details and card details can be

51
shared with the third party or it might be misused by the third party itself. The usage of digital apps
can either ecstasy or accidie mental peace. It is, thus, required to make the use of apps and card
with safety measures and at a place which is having an Authorised e-payments system facility.

52
 Chapter 4-
DATA ANALYSIS AND
INTERPRETATION

53
 DATA ANALYSIS AND INTERPRETATION

Data analysis and interpretation is the practice of assigning significance to the collected
information, material and defining the assumptions, connotation, and implications of the findings
and results. The stages involved in data analysis are a task of the type of evidence collected,
nevertheless, returning to the purpose of the valuation or assessment and the assessment questions
will deliver a structure and arrangement for the organization of the data and a emphases for the
analysis.

The determination of collection and interpretation is to obtain suitable and operational information
and to make the maximum informed decisions conceivable. From industries, to just marrieds
investigating their first home, data collection and interpretation delivers immeasurable profits for
a wide range of institutions and individuals.

Data analysis and interpretation, irrespective of method and qualitative/quantitative position,

includes the resulting features:

 Identification of data outliers

 Data identification and explanation
 Future predictions
 Comparing and contrasting of data

Types of Data Analysis and Data Interpretation:

Methods of Data Interpretation: There are mainly two primary and important data interpretation,
they are:

 Qualitative Method
 Quantitative Method

Types of Data Interpretation: They can be classified as many categories,

 Tabular Data Interpretation

 Pie Charts
54
  Bar Graph
 Line graph
 Caselet data interpretation

Types of Data Analysis: There are many types of data analysis techniques used in research based
on technology and type of business, they are:

 Text Analysis
 Statistical Analysis
 Predicitive Analysis
 Diagnostic Analysis
 Prescriptive Analysis
 Descriptivr Analysis

Following is that Data Analysis and Interpretation for the effectiveness of Digital banking
services on the customer’s of private sector banks in Mangalore City

DEMOGRAPHIC PROFILE

Table No: 4.1 Respondents on the basis of Gender factor

Gender No of Respondents Percentage

Male 56 56

Female 44 44

Total 100 100

55
 Graph No: 4.1

Respondents on the basis of Gender factor

60

56
50

44 40

30

20

10

0
Respondents

Male Female

Interpretation

The table and graph showing that 56% of the respondents are male, 44% of the respondents are
female.

It interprets that majority of the respondents are male (56%)

Table No: 4. 2 Classification on the Basis of Respondent’s Marital Status

Martial Status No of Respondents Percentage

Married 42 42

Single 55 55

Divorced/Separated 3 3

Widowed 0 0

Total 100 100

56
 Graph No: 4.2

Classification on the Basis of Respondent’s

Marital Status

55

42

3 0

NO OF RESPONDENTS
Married Single Divorced/Separated Widowed

Interpretation

The above table and graph shows that 42% of the respondents are Married, 55% of are Single, 3%
are Divorced/Separated and there are no Widow respondents in the survey.

It Interprets that Majority of the respondents who are participated in the survey of the respondents
are Single (55%).

Table No: 4.3 Respondent’s Age Group

Age Group No of Respondents Percentage

Less than 21 2 2
21-30 59 59
31-40 23 23
41-50 11 11
61 and above 0 0
Total 100 100

57
 Graph No: 4.3

Respondent’s Age Group

0
2
11

23

59

Less than 21 21-30 31-40 41-50 61 and above

Interpretation

From the above observation, 2% of the respondents belong to age group below 21 years, 59% of
the respondents belong to age group Between 21-30 , 23 % of the respondents belong to age group
Between 31-40 ,11 % of the respondents belong to age group Between 41-50, and there no
respondents from the age group above 61 years.
Its interpreters Majority of the respondents belong to age group 21-30 years (59%)

Table No: 4.4 Classification on the Basis of Respondent’s Educational Qualification

Educational Qualifications No of Respondents Percentage

No Formal Education 0 0
High School and Below 6 6
PUC 9 9
Graduate 49 49
Post Graduate 36 36
Total 100 100

58
 Graph No 4.4

Classification on the Basis of Respondent’s Educational

Qualification

50
45
40
35
30
25 49
20 36
15
10
5 6 9
0
0
No Formal High School and PUC Graduate Post Graduate
Education Below

No of Respondents

Interpretation

The above table and graph shows that 6% of the respondents Educational Qualification are High
School and Below, 9% of the respondents Educational Qualification are PUC, 49% of the
respondents are Graduate, 36% of the respondents are Post graduate.
It interprets that Majority of the respondents are Graduate (49%).

Table No: 4.5 Respondent’s on the basis of Occupation

Occupation No of Respondents Percentage

Labour Class 4 4
Businessman 8 8
Private Employee 59 59
Professional 9 9
Government Employee 2 2
Agriculturist 3 3
Others 15 15
Total 100 100

59
 Graph No: 4.5

Respondent’s on the basis of Occupation

60
50
40
30 59
20
10 8 9 15
4 2 3
0

No of Respondents

Interpretation

As per the above analysis it’s understood that, 4% of the respondents are Labour Class ,8% of the
respondents are Businessman , 59% of the respondents are Private Employee , 9% of the
respondents are Professionals, 2% of the respondents are Government employees, 3% of the
respondents are Agriculturists and 15% of the respondents are others( Students and housewife).
It interpreters Majority of the respondents are Private Employees (59%).

Table No: 4. 6 Respondents Type of Family Structure

Type No of Respondents Percentage

One Person House hold 0 0
Single Parent Family 12 12
Nuclear Family 63 63
Joint Family 25 25
Total 100 100

60
 Graph No: 4.6

Respondents Type of Family Structure

One Person House
hold
Single Parent 0%
Joint Family Family
28% 1%
One Person House hold
Single Parent Family

Nuclear Family Nuclear Family

71% Joint Family

Interpreatation

Out of the 100 respondents, 71% of the respondents’ family structure is Nuclear Family, 28% of
the respondents are from Joint Family and 1% of the respondents are Single parents.

The Survey Interprets that Majority of the respondents are from Nuclear Family(71%).

Table No: 4.7. Table showing respondents No of members in their family

No of Members No of Respondents Percentage

1 0 0
2 9 9
3 18 18
4 36 36
5 23 23
More than 6 14 14
Total 100 100

61
 Graph No: 4.7

Respondents No of members in their family

0 9
14

18

23

36

1 2 3 4 5 More than 6

Interpretation

The above table and the pie chart shows that 9%of the respondents family has 2 members, 18%
has 3 members, 36% has 4 members on the family, 23% has 5 members and 24% has more than 6
members in the family.

It interprets that majority of the respondents have 4 members in the family (36%).

Table No: 4.8: Table shows No of earning members in the respondents family.

No of earning members No of respondents Percentage

1 13 13
2 56 56
More than 2 31 31
Total 100 100

62
 Graph No: 4.8

No of earning members in the respondents family.

56
60
50
40 31
30
13
20
10 No of respondents
0
1 2 More than 2

No of respondents

Interpretation

The above table and graph illustrations that in 13% of the respondents family only 1 member is
earning, 56% has 2 earning members in the family and 31% has more than 2 members in the family
who are earning.

It Interprets that Majority of the respondents has 2 earning members in the family (56%)

Table no: 4.9: Table showing respondents Family Income( Annual)

Family Income No of respondents Percentage

Less than Rs.1,00,000 11 11
Rs.1,00,001-Rs.2,00,000 9 9
Rs. 2,00,001-Rs.4,00,000 21 21
Rs.4,00,001-Rs.6,00,000 16 16
Rs.6,00,001-Rs.8,00,000 10 10
More than Rs.8,00,001 33 33
Total 100 100

63
 Graph No: 4.9

Respondents Family Income( Annual)

Less than Rs.1,00,000,

11, 11%
Rs.1,00,001-
More than Rs.8,00,001,
Rs.2,00,000, 9, 9%
33, 33%

Rs. 2,00,001-
Rs.4,00,000, 21, 21%

Rs.6,00,001-
Rs.8,00,000, 10, 10%

Rs.4,00,001-
Rs.6,00,000, 16, 16%

Less than Rs.1,00,000 Rs.1,00,001-Rs.2,00,000 Rs. 2,00,001-Rs.4,00,000

Rs.4,00,001-Rs.6,00,000 Rs.6,00,001-Rs.8,00,000 More than Rs.8,00,001

Interpretation

The above table and graph shows that 11% of the respondents’ family income is Less than
Rs.1,00,000, 9% of the respondents’ family income is between Rs.1,00,001-Rs.2,00,000, 21% of
the respondents’ family income is between Rs. 2,00,001-Rs.4,00,000, 16% of the respondents’
family income is between Rs.4,00,001-Rs.6,00,000, 10% of the respondents’ family income is
between Rs.6,00,001-Rs.8,00,000, 33% of the respondents’ family income is more than
Rs.8,00,001.

It Interprets that Majority of the respondents are with the family Income More than Rs.8,00,001.

64
 Preferences regarding the mode of usage for the below mentioned products and services
between Traditional Banking and Digital Banking
1. Information about various products and services.
Table No: 4.10 showing preference for Information about various products/services
Mode No of Respondents Percentage

Traditional Banking 30 30

Digital Banking 70 70

Total 100 100

Graph No: 4.10

showing preference for Information about various products/services

70

60

50

40

30

20

10

0
Traditional Banking Digital Banking

No of respondents

Interpretation

The above table and graph shows that 70% of respondents prefer Traditional Banking to avail
Information about various products and services and 30% of respondents prefer Digital Banking.

It interprets that majority of respondents prefer Traditional Banking to avail Information about
various products and services.

65
2. Checking the account balance/ Balance enquiry.
Table NO: 4.11 showing the preference for Checking the account balance/ Balance
enquiry
Mode No of Respondents Percentage

Traditional Banking 17 17

Digital Banking 83 83

Total 100 100

Graph No: 4.11

SHOWING THE PREFERENCE FOR CHECKING THE

ACCOUNT B ALANCE/ BALANCE ENQUIRY
No of respondents

90
80
70
60
50
83
40
30
20
10 17

0
Traditional Banking Digital Banking

Interpretation

The above table and graph shows that 17% of respondents prefer traditional banking to check the
account balance/ Balance enquiry and 83% of respondents prefer Digital Banking.

It interprets that majority of respondents prefer Digital Banking to to check the account balance/
Balance enquiry.

66
3. Withdrawals
Table NO: 4.12 showing that preference of respondents for withdrawals.
Mode No of Respondents Percentage

Traditional Banking 62 62

Digital Banking 38 38

Total 100 100

Graph No: 4.12

S H O WI N G T H A T P RE F E R E N CE O F R E S P O N DE N T S F O R
W I T H D RA W AL S
No of respondents

62

38

TRADITIONAL DIGITAL
BANKING BANKING

Interpretation

The above table and graph shows that 62% of respondents prefer traditional banking to make
withdrawals and 38% of respondents prefer Digital Banking.

It interprets that majority of respondents prefer traditional banking to to make withdrawals(62%).

67
4. Fund Transfer
Table No: 4.13 showing the preference of respondents for fund transfer
Mode No of Respondents Percentage

Traditional Banking 19 19

Digital Banking 81 81

Total 100 100

Graph No: 4.13

showing the preference of respondents for fund transfer

90
80
70
60
50
81
40
30
20
19
10
0
Traditional Banking Digital Banking

No of respondents

Interpretation

The above table and graph shows that 81% of respondents prefer traditional banking to make Fund
transfers and 19% of respondents prefer Digital Banking.

It interprets that majority of respondents prefer digital banking to do any Fund Transfers(81%).

68
5. Utility Bill Payment
Table No: 4.14 showing the preference for Utility Bill Payment
Mode No of Respondents Percentage

Traditional Banking 25 25

Digital Banking 75 75

Total 100 100

Graph No: 4.14

showing the preference for Utility Bill Payment

80

70

60

50

40 75

30

20
25
10

0
Traditional Banking Digital Banking

No of respondents

Interpretation

The above table and graph shows that 25% of respondents prefer traditional banking to make any
Utility Bill Payment (UPI) and 75% of respondents prefer Digital Banking.

It interprets that majority of respondents prefer digital banking to do any kind of Utility Bill
Payment(75%).

69
6. Pay Shopping Bills
Table No: 4.15 showing the preference to pay shopping bills

Mode No of Respondents Percentage

Traditional Banking 22 22

Digital Banking 78 78

Total 100 100

Graph No: 4.15

SHOWING THE PREFERENCE TO P AY SHOPPING

BILLS
No of respondents

80

70

60

50
78
40

30

20
22
10

0
Traditional Banking Digital Banking

Interpretation

The above table and graph shows that 22% of respondents prefer traditional banking to pay
shopping bills and 78% of respondents prefer Digital Banking.

It interprets that majority of respondents prefer digital banking to pay any kind of shopiing
bills(78%).

70
7. Tax Payment
Table No: 4.16 Showing the preference for Tax payment
Mode No of Respondents Percentage

Traditional Banking 48 48

Digital Banking 52 52

Total 100 100

Graph No: 4.16

Showing the preference for Tax payment

52

51

50

52
49

48

48
47

46
Traditional Banking Digital Banking

No of respondents

Interpretation

The above table and graph shows that 48% of respondents prefer traditional banking to pay tax
payment and 52% of respondents prefer Digital Banking.

It interprets that majority of respondents prefer digital banking to mak tax payment(52%).

71
8. Account Statement/ Pass book
Table No: 4.17 Showing the preference to receive account statement and update pass
book
Mode No of Respondents Percentage

Traditional Banking 32 32

Digital Banking 68 68

Total 100 100

Graph No: 4.17

Showing the preference to receive account statement and update

pass book

70

60

50

40
68
30

20 32

10

0
Traditional Banking Digital Banking

No of respondents

Interpretation
The above table and graph shows that 32% of respondents prefer traditional banking to receive
account statement and update pass book and 68% of respondents prefer Digital Banking.

It interprets that majority of respondents prefer digital banking to receive account statement and
update pass book (68%).

72
 9. Credit card and its related services
Table No: 4.18 showing preference for credit card and its related services

Mode No of Respondents Percentage

Traditional Banking 27 27

Digital Banking 73 73

Total 100 100

Graph No: 4.18

showing preference for credit card and its related

services

80

70

60

50

40 73

30

20
27
10

0
Traditional Banking Digital Banking

No of respondents

Interpretation
The above table and graph shows that 27% of respondents prefer traditional banking to avail credit
card and its related services and 73% of respondents prefer Digital Banking.
It interprets that majority of respondents prefer digital banking to to avail credit card and its related
services (73%).

73
 Awareness Level about the following Digital Payment System service
1. Real Time Gross Settlement (RTGS)
Table No: 4.19 showing the awareness level of respondents about Real Time Gross
Settlement (RTGS)
Level of awareness No of respondents Percentage
Fully aware 24 24
Aware 49 49
Neutral 19 19
Not aware 4 4
Not at all aware 4 4
Total 100 100

Graph No: 4.19

the awareness level of respondents about Real Time Gross
Settlement
Not aware
4% Not at all aware
4%
Fully aware
Neutral 24%
Fully aware
19%
Aware
Neutral

Aware Not aware

49% Not at all aware

Interpretation

The above table and graph shows that 24% of respondents are fully aware about the Real Time
Gross Settlement, 49% are aware, 19% have neutral awareness, 4% of the respondents are not
aware and 4% are not at all aware.
It interprets that majority of respondents are just aware about the Real Time Gross
Settlement(49%).

74
2. National Electronic Fund Transfer (NEFT)
Table No: 4.20 showing the awareness level of respondents about National Electronic
Fund Transfer(NEFT)

Level of awareness No of respondents Percentage

Fully aware 27 27
Aware 51 51
Neutral 16 16
Not aware 4 4
Not at all aware 2 2
Total 100 100

Graph No: 4.20

the awareness level of respondents about National Electronic

Fund Transfer
Not at all aware
Not aware 2%
4%

Neutral Fully aware

16% 27%

Aware
51%

Fully aware Aware Neutral Not aware Not at all aware

Interpretation
The above table and graph shows that 27% of respondents are fully aware about the National
Electronic Fund Transfer, 51% are aware, 16% have neutral awareness, 4% of the respondents are
not aware and 2% are not at all aware.
It interprets that majority of respondents are just aware about the National Electronic Fund
Transfer (51%).

75
3. Cheque Truncation System (CTS)

Table No: 4.21 showing the awareness level of respondents about Cheque Transaction
System (CTS)

Level of awareness No of respondents Percentage

Fully aware 19 19
Aware 47 47
Neutral 23 23
Not aware 7 7
Not at all aware 4 4
Total 100 100

Graph No: 4.21

SHOWING THE AWARENESS LEVEL OF

RESPONDENTS ABOUT CHEQUE TRANSACTION
SYSTEM
No of respondents

50

40

30
47
20
19 23
10
7 4
0
Fully aware Aware Neutral Not aware Not at all
aware

Interpretation
The above table and graph shows that 19% of respondents are fully aware about the Cheque
Transaction System, 47% are aware, 23% have neutral awareness, 7% of the respondents are not
aware and 4% are not at all aware.
It interprets that majority of respondents are just aware about the Cheque Transaction System
(47%).

76
4. Immediate Payment Service (IMPS)

Table No: 4.22 showing the awareness level of respondents about Immediate Payment
Service (IMPS)

Level of awareness No of respondents Percentage

Fully aware 34 34
Aware 33 33
Neutral 22 22
Not aware 9 9
Not at all aware 2 2
Total 100 100

Graph No: 4.22

showing the aw areness level of respondents about

Immediate P ayment Service

35

30

25

20
34 33
15
22
10

5 9
2
0
Fully aware Aware Neutral Not aware Not at all aware

No of respondents

Interpretation
The above table and graph shows that 34% of respondents are fully aware about the Immediate
Payment Service ,33% are aware, 22 have neutral awareness, 9% of the respondents are not aware
and 2% are not at all aware.
It interprets that majority of respondents are Fully aware about the Immediate Payment Service
(34%).

77
5. Unified Payments Interface (UPI)

Table No: 4.23 showing the awareness level of respondents about Unified Payments
Interface (UPI)

Level of awareness No of respondents Percentage

Fully aware 46 46
Aware 27 27
Neutral 18 18
Not aware 5 5
Not at all aware 4 4
Total 100 100

Graph No: 4.23

showing the awareness level of respondents about

Unified Payments Interface
Not at all aware
Not aware
4%
5%
Neutral
18% Fully aware
46% Fully aware
Aware
Neutral
Not aware
Not at all aware

Aware
27%

Interpretation
The above table and graph shows that 46% of respondents are fully aware about the Unified
Payments Interface,27% are aware, 18% have neutral awareness, 5% of the respondents are not
aware and 4% are not at all aware.
It interprets that majority of respondents are Fully aware about the Unified Payments Interface
(46%).

78
6. Unstructured Supplementary Service Data (USSD)
Table No: 4.24 showing the awareness level of respondents about Unstructured
Supplementary Service Data (USSD)
Level of awareness No of respondents Percentage
Fully aware 14 14
Aware 34 34
Neutral 25 25
Not aware 12 12
Not at all aware 15 15
Total 100 100

Graph No: 4.24

showing the awareness level of respondents about Unstructured

Supplementary Service Data

Not at all aware

15%
Fully aware
14%
Not aware Fully aware
12%
Aware
Aware
Neutral
34%
Neutral
Not aware
25%
Not at all aware

Interpretation
The above table and graph shows that 14% of respondents are fully aware about the Unstructured
Supplementary Service Data ,34% are aware, 25% have neutral awareness, 12% of the respondents
are not aware and 15% are not at all aware.
It interprets that majority of respondents are just aware about the Unstructured Supplementary
Service Data (34%).

79
7. Point of Sale (POS)/ Debit or Credit Cards

Table No: 4.25 showing the awareness level of respondents about Point of Sale (POS)/
Debit or Credit Cards

Level of awareness No of respondents Percentage

Fully aware 25 25
Aware 32 32
Neutral 27 27
Not aware 9 9
Not at all aware 7 7
Total 100 100

Graph No: 4.25

showing the awareness level of respondents about Point of Sale (POS)/

Debit or Credit Cards

Not aware Not at all aware

9% 7%
Fully aware
25%
Fully aware
Aware
Neutral
27% Neutral
Aware Not aware
32%
Not at all aware

Interpretation
The above table and graph shows that 25% of respondents are fully aware about the Point of Sale
(POS)/ Debit or Credit Cards,32% are aware, 27% have neutral awareness, 9% of the respondents
are not aware and 7% are not at all aware.
It interprets that majority of respondents are just aware about the Point of Sale (POS)/ Debit or
Credit Cards

80
8. Prepaid Payment Instrument (PPI)/ Bank prepaid cards

Table No: 4.26 showing the awareness level of respondents about Prepaid Payment
Instrument (PPI)/ Bank prepaid cards

Level of awareness No of respondents Percentage

Fully aware 18 18
Aware 33 33
Neutral 29 29
Not aware 11 11
Not at all aware 9 9
Total 100 100

Graph No: 4.26

showing the awareness level of respondents about Prepaid Payment

Instrument (PPI)/ Bank prepaid cards

35

30

25

20
33
15 29

10 18
11 9
5

0
Fully aware Aware Neutral Not aware Not at all aware

No of respondents

Interpretation
The above table and graph shows that 18% of respondents are fully aware about the Prepaid
Payment Instrument (PPI)/ Bank prepaid cards,33% are aware, 29% have neutral awareness, 13%
of the respondents are not aware and 9% are not at all aware.
It interprets that majority of respondents are just aware about the Prepaid Payment Instrument
(PPI)/ Bank prepaid cards

81
 Frequency or Level of Usage of the Following Digital Banking types

1. Real Time Gross Settlement (RTGS)

Table No: 4.27 showing the Level of Usage of Real Time Gross Settlement

Level of awareness No of respondents Percentage

Always 18 18
Often 22 22
Sometimes 20 20
Rarely 27 27
Never 13 13
Total 100 100

Graph No: 4.27

showing the Level of Usage of Real Time Gross Settlement

Never
13% Always
18%

Often
22%

Rarely Sometimes
27% 20%

Always Often Sometimes Rarely Never

Interpretation
The above table and graph illustrates that 18% of the respondents always use real time gross
settltment, 22% use it often, 20% use it sometimes, 27% use it rarely and 13% of the respondents
never used it.
It Interprets that majority of the reponsdents often use Real Time Gross Settlement( 22%).

82
2. National Electronic Fund Transfer

Table No: 4.28 showing the Level of Usage of National Electronic Fund Transfer

Level of awareness No of respondents Percentage

Always 16 16
Often 31 31
Sometimes 26 26
Rarely 17 17
Never 10 10
Total 100 100

Graph No: 4.28

showing the Level of Usage of National Electronic Fund Transfer

35

30

25

20
31
15 26

10 16 17
10
5

0
Always Often Sometimes Rarely Never

No of respondents

Interpretation
The above table and graph illustrates that 16% of the respondents always use National Electronic
Fund Transfer, 31% use it often, 26% use it sometimes, 17% use it rarely and 10% of the
respondents never used it.
It Interprets that majority of the reponsdents often use National Electronic Fund Transfer ( 31%).

83
3. Cheque Truncation System (CTS)

Table No: 4.29 showing the Level of Usage of Cheque Truncation System(CTS)

Level of awareness No of respondents Percentage

Always 13 13
Often 19 19
Sometimes 37 37
Rarely 15 15
Never 16 16
Total 100 100

Graph No: 4.29

showing the Level of Usage of Cheque Truncation System

Never Always
16% 13%

Often Always
Rarely
15% 19% Often
Sometimes
Rarely
Sometimes
37% Never

Interpretation
The above table and graph illustrates that 13% of the respondents always use Cheque Truncation
System, 19% use it often, 37% use it sometimes, 15% use it rarely and 16% of the respondents
never used it.
It Interprets that majority of the reponsdents Sometimes use Cheque Truncation System, ( 37%).

84
4. Immediate Payment Services (IMPS)

Table No: 4.30 showing the Level of Usage of Immediate Payment Services (IMPS)

Level of awareness No of respondents Percentage

Always 34 34
Often 21 21
Sometimes 25 25
Rarely 8 8
Never 12 12
Total 100 100

Graph No: 4.30

SHOWING THE LEVEL OF USAGE OF IMMEDIATE PAYMENT

SERVICES
Never
12%
Rarely Always
8% 34%

Sometimes
25%

Often
21%

Interpretation
The above table and graph illustrates that 34% of the respondents always use Immediate Payment
Services, 21% use it often, 25% use it sometimes, 8% use it rarely and 12% of the respondents
never used it.
It Interprets that majority of the reponsdents always use Immediate Payment Services ( 34%).

85
5. Unified Payments Interface (UPI)

Table No: 4.31 showing the Level of Usage of Unified Payments System (UPI)

Level of awareness No of respondents Percentage

Always 52 52
Often 18 18
Sometimes 19 19
Rarely 6 6
Never 5 5
Total 100 100

Graph No: 4.31

SHOWING THE LEVEL OF USAGE OF UNIFIED

PAYMENTS SYSTEM
No of respondents

60

50

40

30 52

20

10 18 19
6 5
0
Always Often Sometimes Rarely Never

Interpretation
The above table and graph illustrates that 52% of the respondents always use Unified Payment
System, 18% use it often, 19% use it sometimes, 6% use it rarely and 5% of the respondents never
used it.
It Interprets that majority of the reponsdents always use use Unified Payment System ( 52%).

86
6. Unstructured Supplementary Service Data (USSD)

Table No: 4.32 showing the Level of Usage of Unstructured Supplementary Service
Data (USSD)

Level of awareness No of respondents Percentage

Always 14 14
Often 21 21
Sometimes 20 20
Rarely 10 10
Never 35 35
Total 100 100

Graph No: 4.32

showing the Level of Usage of Unstructured Supplementary Service Data

(USSD)

35

30

25

20
35
15
21 20
10
14
10
5

0
Always Often Sometimes Rarely Never

No of respondents

Interpretation
The above table and graph illustrates that 14% of the respondents always use Unstructured
Supplementary Service Data, 21% use it often, 20% use it sometimes, 10% use it rarely and 35%
of the respondents never used it.
It Interprets that majority of the reponsdents never used Unstructured Supplementary Service Data
( 35%).

87
7. Point of Sale (PoS)/ Debit or Credit Cards

Table No: 4.33 showing the Level of Usage of Point of Sale (PoS)/ Debit or Credit
Cards
Level of awareness No of respondents Percentage
Always 14 14
Often 30 30
Sometimes 30 30
Rarely 10 10
Never 16 16
Total 100 100

Graph No: 4.33

showing the Level of Usage of Point of Sale (PoS)/ Debit or Credit Cards

Never Always
16% 14%

Rarely
10%

Often
30%

Sometimes
30%

Always Often Sometimes Rarely Never

Interpretation
The above table and graph illustrates that 14% of the respondents always use Point of Sale (PoS)/
Debit or Credit Cards, 30% use it often, 30% use it sometimes, 10% use it rarely and 16% of the
respondents never used it.
It Interprets that majority of the reponsdents often or sometimes used Point of Sale (PoS)/ Debit
or Credit Cards ( 30%).

88
8. Prepaid Payment Instrument (PPI)/ Bank Prepaid Cards

Table No: 4.34 showing the Level of Usage of Prepaid Payment Instrument (PPI)/
Bank Prepaid Cards
Level of awareness No of respondents Percentage
Always 14 14
Often 19 19
Sometimes 29 29
Rarely 10 10
Never 28 28
Total 100 100

Graph No: 4.34

S H O W I NG T H E L E VE L O F US AGE O F PRE PAI D

PAYME NT I NS T RUME NT (PPI )/ B ANK PRE PAI D
CARDS
No of respondents

29 28

19
14
10

ALWAYS OFTEN SOMETIMES RARELY NEVER

Interpretation
The above table and graph illustrates that 14% of the respondents always use Prepaid Payment
Instrument (PPI)/ Bank Prepaid Cards, 19% use it often, 29% use it sometimes, 10% use it rarely
and 28% of the respondents never used it.
It Interprets that majority of the reponsdents sometimes Prepaid Payment Instrument (PPI)/ Bank
Prepaid Cards (29%).

89
 CHAPTER 5 -
FINDINGS, SUGGESTIONS
AND CONCLUSIONS

90
5.1 FINDINGS
 In the 100 sample size, majority of the respondents were male, and majority of the respondents
were Single
 Majority of the respondents were Graduate and majority of the sample were private employees
 Maximum of the respondents had a Nuclear family and majority of the earning members in the
family are 4
 The family Income of the maximum respondents were more than Rs.8,00,000
 As per the observations, the respondents preferred collecting information about various
products and services in the Bank through traditionally visitng the Bank rather than Digitially
that is through online.
 The majority of the respondents preferred checking the account balance/ balance enquiry
through Digital banking instead of visiting the bank traditionally.
 The majority of the respondents preferred using digital banking method for fund transfer and
prefer less traditional banking.
 For Utility Bill Payment the majority of the respondents preferred digital banking method
(75%) and only 25% of the respondents preferred using traditional banking method.
 As per the interpretations, the respondents who preferred digital banking methods to pay
shopping bills are in majority when compared to respondents who preferred traditional banking
method.
 In the survey made with 100 respondents, 52% of the respondents preferred using digital
banking method for tax paymet and 48% preferred using traditional banking method.
 Inorder to receive account statement and pass book update , majority of the respondents prefer
(68%) digital banking methods and rest of them prefer traditional banking.
 For all the credit card and its related services, the majority of the respondents prefer digital
banking methods.
 The majority of the respondents were just aware ( 49%) about that real time gross settlement
digital banking method and 24% of the respondents were fully aware and the rest were either
neutral (19%), not aware ( 4%) or Not at all aware (4%).
 About the National Electronic Funds Transfer, majority of the respondents were just aware
(51%) and 27% were fully aware and the others were either neutral (16%), not aware ( 4%) or
Not at all aware (2%).

91
 The majority of the respondents were just aware ( 47%) about that Cheque Truncation System
digital banking method and 19% of the respondents are fully aware, and the rest are either
neutral (23%), not aware ( 7%) or Not at all aware (4%).
 In case of Immediata payment services(IMPS) the majority of the respondents are fully aware
(34%) about the services and 33% are just aware and then the rest of the respondents are either
neutral (22%), not aware (9%) or not at all aware (2%).
 The majority of the respondents are fully aware (46%) about the Unified Payment Interface
(UPI) and 27% are just aware and the other 18% of the respondents are neutral, 5% are not
aware and 4% of the sample are not at all aware about the UPI services.
 The majority of the respondents were just aware ( 34%) about the Unstrucutured
Supplementary Service Data (USSD) digital banking method and 14% of the respondents were
fully aware and the rest were either neutral (25%), not aware ( 12%) or Not at all aware (15%).
 In case of Point Of Sale(PoS)/Debit or Credit cards, the majority of the respondents are Just
aware (32%) about the services and 25% are fully aware and then the rest of the respondents
are either neutral (27%), not aware (9%) or not at all aware (7%).
 The majority of the respondents were just aware ( 33%) about that Prepaid Payment Instrument
(PPI)/Bank Prepaid cards digital banking method and 18% of the respondents are fully aware,
and the rest are either neutral (29%), not aware ( 11%) or Not at all aware (9%).
 The frequency level or usage of the Real Time Gross Settlement is that, the majority of the
respondents rarely (27%)use the above services and 18% of the respondents always use, 22%
often use, 20% of them sometimes and 13% of the respondents never used.
 National Electronic Funds Transfer- the no of respondents who always use NEFT are 16% and
31% of the respondents use often, 26% of them use sometimes and 17% use it rarely and 10%
of the respondents never used NEFT. Hence majority of the respondents often use NEFT.
 The frequency level or usage of the Cheque Truncation System is that, the majority of the
respondents use sometimes(37%), 13% of them use it always, 19% use often and 15% of the
respondents use rarely and 16% have never used it.
 Unified Payment Interface (UPI)- the no of respondents who always use UPI are 52% and 18%
of the respondents use often, 19% of them use sometimes and 6% use it rarely and 5% of the
respondents never used. Hence majority of the respondents always use UPI.

92
 The frequency level or usage of the Immediate Payment Service (IMPS) is that, majority of
the respondents always (34%) used IMPS, 21% used it often, 25% of the respondents use it
sometimes, 8% of the respondents rarely use IMPS and 12% never used it.
 The frequency level or usage of the Unstrucutured Supplementary Service Data (USSD) is
that, the majority of the respondents (35%) never use USSD, 14% of the respondents always
use, 21% of the respondents often use, 20% of them use it sometimes and 10% use it rarely.
 The frequency level or usage of the Point Of Sale(PoS)/Debit or Credit cards, the majority of
the respondents using PoS/debit/credit cards are 30%. That is respondents uding it often and
sometimes, 14% of the respondents use it always, 10% of them use it rarely and 16% of the
respondents never used it.
 The frequency level or usage of the Prepaid Payment Instrument (PPI)/Bank Prepaid cards, the
majority of the respondents use this service sometims (29%), 14% of them use it always, 19%
of the respondents use often, 10% of them use rarely and 28% of the respondents never used.

5.2 SUGGESTIONS

 Private Banks should provide good services to the customers.

 Proper training facilities should be provided to the staff’s in the private bank, so that they
can provide effective answers to the customers.
 The Private bank needs to educate their customers regarding the Digital Banking
technology.
 Private Banks should conduct demonstration and make available training to customers and
explain about its usage, procedure, effectiveness etc., for the usage of all types of Digital
banking services.
 Private Banks should reassure and encourage the practice of Digital banking services by
giving incentives and motivation, because by using it, banks and customer both can save
time and money.
 Respondents are anxious about the security, banks should make sure and provide better
security by adopting better security measures and educate customer that there is no
security risk involved in digital banking.
 Private Banks are providing various types of services to the customers but the customers
are not utilizing it in a proper manner. They have to utilize the facility given by banks.

93
 It is very much necessary to provide awareness and educate the digital banking methods
and services to the customers by the private banks as many people are still not aware about
the new products and services.
 Many customers of the banks are still not having and Mobile banking facility in their
phones, banks must make sure that all the customers numbers are linked to the bank
accounts.
 There are many network errors while using Digital banking, the banks must take necessary
steps to overcome those errors.
 Sometimes the amount will be debited in the banks, but it would not have credited to the
receiver, such errors should be looked into and solved.
 Many sections in the rural mangalore have no education about the Digital banking,
educating them is necessary.
 To promote digital banking, online demonstration must be provided on all private banks
websites that should be informative, educative and attractive.
 The Private banks should constantly remind and inform their customers to change their
PIN numbers.
 The Banks to contact and inform people about the possible frauds and measures to
overcome them.
 Digital banking can be used only if the customers have knowledge and are educated about
the usage of internet and mobile otherwise it is not possible so bank should take measures
regarding these problems.
 Private banks should give more of discounts, coupons and off prices for paying any bills
like shopping bills, electricity bills etc online, which will promote digital banking.
 Frauld Alert should be available in the apps so that customers can detect any fraud made
or occurred in the transactions.
 Authentication should be made strong and strict which will increase the security of the
accounts.
 Many respondents suggested to increase the day limit for the transactions made digitally.
 As per the study, almost people between 41-60 are not using digital banking, hence banks
should motivate them to use digital methods for banking purposes.

94
  Banks should progress the online banking service quality of website design, home page of
bank web site and server availability.
 Private banks should improve technical and physical availabilitiy of digital banking
services.
 Bank should use and implement easy ways to access digital banking services for the
customers who are unaware and uninformed about exactly how to use digital banking
services very confidently and smoothly.

5.3 CONCLUSION

This Study is based on the Effectiveness of Digital banking services on the customer's of private
sector banks in Mangalore city. It includes 5 chapters following introduction, literature review,
company profile, private sector banks, data analysis and interpretation, findings and suggesstions.
It gives a new insight to the Digital-banking users and beneficiaries. In the present day all the
banking sectors provide different services through digital banking systems. The customers are
looking for the best quality services from the bank with greater satisfaction level. The above study
reveals that the customers of the private banks in mangalore city are having almost great
knowledge about the various digital banking methods, their products and services available. The
demographic conditions in the study also reveal that reason for knwing and not knowing about
certain products and services. The usage of digital banking services are different and it differs
based on the various demographic factors in the study. The suitable services available may be
improved to give better customer approval leading to retention of existing customers and attracting
new customers.

In recent years many modifications have been taken place in the banking sectors. These changes
do not decrease the faults and inaccuracies in terms of operational activities. The customers are
still facing various difficulties while using banking transactions. Hence, the banks need to focus
more on service sector and operational activities, which makes the customer more comfort and
satisfied in dealing with banking activities.

95
The research is based on the primary data. Accoridng to the study , it reveals that most of the
private bank customers in mangalore city are aware about the different digital banking methods
and services used.The study further reveals that bank have to take necessary steps and measures
to educate the customers about the new technology, services or new types in digital banking
services available in the banks. It also helped to know the modes preferred of customers to perform
various products and services i.e., either traditionally or Digitally.The study helped to reveal the
frequency level of customers who use the various digital banking types such as Real Time Gross
Settlement, National Electronic Fund Transfer, Cheque Truncation System, Immediate Payment
System, Unified Payment Interface, National Automated Clearing Houses, Unstructured
Suplementary Service Data, Point of sale(PoS)/Debit or credit cards, Prepaid payment
Instrument/Bank prepaid cards.

Based on the above findings, it can be concluded that technology has greatly influenced the bank
customers’ encouraging them to conduct banking in an innovative manner. They have good
awareness regarding ATMs and internet banking whereas it is low in others service like digital
banking, mobile banking, credit cards, smart cards etc., The study reveals that users of Digital
banking delivery channels have strong positive perception towards technology used in banking
which is reflected in their adoption and usage of the same whereas non users clearly exhibited their
disinterest and ignorance in using various technologies driven banking channels. The study reveals
that the customers of the private banks are partially aware about the new technologies adapted by
the banks and the banks need to properly train and educate the customers to use the new method
of banking services.The study reveals that most of the customers use digital banking for their
shopping and other miscelleneaous payments. Still the customers are not feeling secured to make
large fund transfer and that is because many of them are unaware about the uses of different types
of digital banking methods.

Digital banking customers tend to be much more concerned with the security of their banking
transactions and the privacy of their personal information. A Digital banking service has become
important phenomenon in the banking industry and it will continue with progress in information
communication technology. The financial industry thus is gradually experiencing and
transforming from cash based system to a cashless system that is more convenient and reliable,
where Digital banking services are proved to be of immense importance.

96
 BIIBLLIIOGRAPHY

ARTICLES AND JOURNALS

1. Haralayya, B. (2021). How Digital Banking has Brought Innovative Products and Services
to India. Journal of Advanced Research in Quality Control and Management, 6(1), 16-18.
2. Sheikh, B. A., & Rajmohan, P. (2017). Adoption of Digital Banking in India. Asia Pacific
Journal of Research, 1, 52.
3. Gupta, S. K., & Bansal, A. (2018). Young customer's attitude towards digital banking with
special reference to pulic and private bank in uttrakhand. 8M: The Journal of Indian
Management & Strategy, 23(4), 23-27.
4. Bansal, N. (2020). The impact of training programme of digital banking services to
employees of unorganised sector and their acceptability in India. International Journal of
Electronic Customer Relationship Management, 12(3), 246-272.
5. Meher, B. K., Hawaldar, I. T., Mohapatra, L., Spulbar, C. M., Birau, F. R., & Rebegea, C.
(2020). The impact of digital banking on the growth of Micro, Small and Medium
Enterprises (MSMEs) in India: a case study. Business: Theory and Practice, 22(1), 18-28.
6. Mbama, C. I., & Ezepue, P. O. (2018). Digital banking, customer experience and bank
financial performance: UK customers’ perceptions. International Journal of Bank
Marketing.
7. Nayak, R. (2018). A conceptual study on digitalization of banking-issues and challenges
in rural India. International Journal of management, IT and Engineering, 8(6), 186-191.\
8. Roy, M., & Das, A. (2018). Impact of demonetization on adoption of digital banking
services in India: a case study in rural and suburban area of West Bengal. Indian Journal
of Economics and Development, 6(10), 1-9.
9. Kankar, M., & Gauttam, V. DIGITAL BANKING IN INDIA.
10. Sarkar, K. K., & Thapa, R. (2021). From Social and Development Banking to Digital
Financial Inclusion: the Journey of Banking in India. Perspectives on Global Development
and Technology, 19(5-6), 650-675.
11. Universtiy, K. L., Greenfields, V., District, G., & Pradesh, A. (2018). A study on Digital
payments in India with perspective of consumers adoption. International journal of pure
and applied mathematics, 118(24).

97
12. Naskar, D. Digital Banking in India: The Way Ahead. MARCH THROUGH SEARCH,
202.
13. Gupta, V. S. (2018). The digital banking in India-A myth, mystery and MID-
WAY. SAARJ Journal on Banking & Insurance Research, 7(5), 4-9.
14. Ashoka, M. L., Rakesh, T. S., & Madhushree, S. (2019). Digital Banking Services in Rural
India: A Customer's Perspective. In Dynamic Perspectives on Globalization and
Sustainable Business in Asia (pp. 56-72). IGI Global.
15. Goyal, V., Pandey, U. S., & Batra, S. (2012). Mobile banking in India: Practices, challenges
and security issues. International Journal of Advanced Trends in Computer Science and
Engineering, 1(2).
16. Jain, V., Sharma, M. P., Kumar, A., & Kansal, A. (2020). Digital Banking: A Case Study
of India. Solid State Technology, 63(6), 19980-19988.
17. Govindaraj, M. A. C. P. K., & Kavitha, S. A study on digital banking with regard to
Demonitisation in India.
18. KUMUDHA, A. STATUS OF DIGITAL BANKING TRANSACTIONS IN
INDIA. PRINCIPAL’S MESSAGE, 399.
19. Priyanga, P. (2021). Digital India towards Digital Banking a focus on Customer Perception
in selected Banks of Nagapattinam District. Tamilnadu. Psychology and Education
Journal, 58(2), 10904-10909.
20. Malar, D. A., Arvidsson, V., & Holmstrom, J. (2019). Digital transformation in banking:
Exploring value co-creation in online banking services in India. Journal of Global
Information Technology Management, 22(1), 7-24.
21. Dhananjay, B., & Ch, S. (2015). The electronic banking revolution in India. The Journal
of Internet Banking and Commerce, 20(2).
22. Ilankumaran, G. PAYMENT SYSTEM INDICATORS OF DIGITAL BANKING
ECOSYSTEM IN INDIA. Clearing, 1273(1), 114-06.
23. Abbasi, T., & Weigand, H. (2017). The impact of digital financial services on firm's
performance: a literature review. arXiv preprint arXiv:1705.10294.
24. Ansari, S. J., & Khan, N. A. (2017). E-Banking In India: Progress And
Challenges. International Journal of Innovative Research and Advanced Studies, 4(8), 334-
340.

98
25. Singh, S., & Rana, R. (2017). Study of consumer perception of digital payment
mode. Journal of Internet Banking and Commerce, 22(3), 1-14.
26. Mishra, R. K., & Kiranmai, J. (2009). E-BANKING: A CASE OF INDIA. ICFAI Journal
of Public Administration, 5(1).
27. Larsson, A., & Viitaoja, Y. (2017). Building customer loyalty in digital banking: A study
of bank staff’s perspectives on the challenges of digital CRM and loyalty. International
Journal of Bank Marketing.
28. Hani, U. (2020). Master of Commerce (Doctoral dissertation, Kuvempu University).
29. Ditto, D. A. J. (2017). A Study On Customer Perception And Satisfaction Towards Net
Banking. International Journal of Interdisciplinary Research in Arts and Humanities
(IJIRAH), 2(1).
30. Amutha, D. (2016). A study of consumer awareness towards e-banking. International
Journal of Economics and Management Sciences, 5(4), 350-353.
31. Dr.T. Santhiya Ran, A. Saravanan (2018) in their article " A Study On Customer
Satisfaction Towards Net Banking with Special Reference to General Banking Customer
in Coimbatore City":
32. https://www.bankbazaar.com/ifsc/digital-payment.html
33. https://techbullion.com/what-is-digital-payment-origin-and-history-in-financial-
technology/
34. https://www.semanticscholar.org/paper/Factors-Affecting-Adoption-of-Electronic-
Banking%3A-Al-Smadi-Ibn/17f22c24b8fdc0a02a5c6ddc50d4da803e65601f
35. https://en.wikipedia.org/wiki/Digital_banking#:~:text=Digital%20banking%20involves%
20high%20levels,desktop%2C%20mobile%20and%20ATM%20services.
36. https://thedigitalfifth.com/digital-banking-in-india-and-its-components/
37. https://enterslice.com/learning/evolution-and-growth-of-digital-banking-in-india/
38. https://www.enterpriseedges.com/innovative-digital-banking-products-services-india
39. https://www.researchgate.net/publication/332038540_Digital_Banking_ServicesCustome
r_Perspectives
40. https://assets.kpmg/content/dam/kpmg/au/pdf/2019/future-of-digital-banking-in-2030-
cba.pdf

99
41. https://www.academia.edu/36306950/Digital_Banking_in_India_A_Review_of_Trends_
Opportunities_and_Challenges
42. https://groww.in/blog/10-digital-banking-features-need-know/
43. https://www.enterpriseedges.com/role-of-digital-banking-india
44. https://www.vapulus.com/en/digital-banking-advantages/
45. https://www.valuepenguin.com/banking/advantages-of-online-banking
46. https://www.hdfcbank.com/personal/resources/learning-centre/digital-
banking/importance-of-digital-banking
47. https://testbook.com/learn/maths-data-interpretation/

48. https://www.guru99.com/what-is-data-analysis.html

100