A STUDY OF CONSUMERS’ PERCEPTION OF ONLINE BANKING

WITH SPECIAL REFERENCE TO CHANGANASSERY

MUNICIPALITY

Project Report
Submitted in the partial fulfilment of the requirements for the award of the
Bachelor Degree in Commerce of Mahatma Gandhi University

Submitted by

JOEL JOSEPH PHILIP (190021063281)

Under the guidance of

Mr VIVEK V VIJAYAN
ASSISTANT PROFESSOR

POST-GRADUATE DEPARTMENT OF COMMERCE

KRISTU JYOTI COLLEGE OF MANAGEMENTAND TECHNOLOGY
CHANGANACHERRY
MARCH 2022

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 POST GRADUATE DEPARTMENT OF COMMERCE
KRISTU JYOTI COLLEGE OF MANAGEMENTAND TECHNOLOGY
[AFFILIATED TO MAHATMA GANDHI UNIVERSITY]
CHANGANACHERRY, KURISHUMOODU P.O.
KERALA -686104

CERTIFICATE
This is to certify that the project work titled
“A STUDYOF CONSUMERS’ PERCEPTION OF ONLINE BANKING
WITH SPECIAL REFERENCE TO CHANGANASSERY MUNICIPALITY”
Submitted by JOEL JOSEPH PHILIP (190021063281) in the partial fulfilment of the
requirements for the award of the Bachelors Degree of Commerce from Mahatma Gandhi
University, Kottayam, Kerala is a record of the bonafide work carried out by them during
the period of 2021-2022

Rev. Fr. Joshy Cheeramkuzhy, CMI Dr. Varghese Antony

(Principal) (Head of the Department)

Changanacherry
30/03/2022

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 POST GRADUATE DEPARTMENT OF COMMERCE

KRISTU JYOTI COLLEGE OF MANAGEMENTAND TECHNOLOGY

[AFFILIATED TO MAHATMA GANDHI UNIVERSITY]
CHANGANACHERRY, KURISHUMOODU P.O.
KERALA -686104

CERTIFICATE
This is to certify that the project work titled
“A STUDY OF CONSUMERS’PERCEPTION OF ONLINE BANKING
WITH SPECIAL REFERENCE TO CHANGANASSERY
MUNICIPALITY”
Submitted to Mahatma Gandhi University Kottayam in partial fulfilment of the requirements for
the award of the Bachelor's Degree in Commerce is a record of the original work done by
JOEL JOSEPH PHILIP (190021063281) under my supervision and guidance and that
this project work has not formed the basis for the award of any Degree/ Diploma/
Fellowship or similar title to any candidate of this or any other University.

MR. VIVEK V
Changanacherry VIJAYAN
30/03/2022 (Assistant Professor)

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 DECLARATION

I, hereby declare that the project entitled “A STUDY OF CONSUMERS’ PERCEPTION

OF ONLINE BANKING WITH SPECIAL REFERENCE TO CHANGANASSERY
MUNICIPALITY” has been prepared under the guidance of Mr VIVEK V VIJAYAN, Post
Graduate Department of Commerce, Kristu Jyoti College of Management & Technology,
Changanacherry in partial fulfilment of the requirement for the award of the Bachelor's
Degree in Commerce of Mahatma Gandhi University, Kottayam, Kerala.
I also declare that this is the bonafide record of research work done by us during the course
of our study and no part of it has been submitted for any other degree, diploma, fellowship or
other similar title of recognition.

JOEL JOSEPH PHILIP (190021063281)

Changanacherry
30/03/2022

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 ACKNOWLEDGEMENT

I would like to place on record my sincere thanks to all those who contributed to the
successful completion of my project work.

I express our gratitude to my guide, Mr VIVEK V VIJAYAN for helping me in each and every
stage of this project.

I would also like to thank Rev. Fr. Joshy Cheeramkuzhy CMI, the Principal, Kristu Jyoti
College of Management & Technology for providing all the facilities for the completion of
this project.

I would like to express our deep sense of gratitude to Dr. Varghese Antony, HOD Post-
Graduate Department of Commerce, Kristu Jyoti College of Management & Technology for
his valuable guidance throughout the completion of this work.

I thank all our respondents who co-operated with me the successful completion of the
Questionnaire on time.

I also appreciate the encouragement and constructive criticism that I received from our
friends and family which went long way to make this project a satisfying experience to me.

Above all I thank God Almighty for providing us the right atmosphere and mental strength to
work and showering all blessings for the successful completion of this project.

JOEL JOSEPH PHILIP

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 CONTENTS

SL.NO TITLE PAGE NO:

LIST OF TABLES

LIST OF FIGURES

CHAPTER 1 INTRODUCTION 9-13

CHAPTER 2 REVIEW OF LITERATURE 14-16

CHAPTER 3 THEORETICAL FRAMEWORK 17-33

CHAPTER 4 ANALYSIS AND INTERPRETATION 34-62

FINDINDS, SUGGESTIONS, CONCLUSION AND

CHAPTER 5 BIBLIOGRAPHY 63-67

68-71
ANNEXURE-QUESTIONNAIRE

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 LIST OF TABLES
TABLE NO: TITLE PAGE NO:

4.01 Gender basis analysis 35

4.02 Age basis analysis 36

4.03 Level of literacy basis analysis 37

4.04 Occupation basis analysis 39

4.05 Income basis analysis 41

4.06 Residential status basis analysis 42

4.07 Type of device basis analysis 43

4.08 Internet usage basis analysis 44

4.09 Preferable banks basis analysis 46

4.10 Online Banking facilities basis analysis 47

4.11 Time basis analysis 48

4.12 Purpose of online banking basis analysis 49

4.13 Rating basis analysis 51

4.14 Customer education analysis 52

4.15 Upgradation of online basis analysis 53

4.16 Bank charges analysis 54

4.17 Preference basis analysis 55

4.18 Non accessibility basis analysis 56

4.19 Modification of service basis analysis 58

4.20 Overall rating basis analysis 60

4.21 Customer benefit analysis 62

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 LIST OF FIGURES
TABLE NO: TITLE PAGE NO:

4.01 Gender basis analysis 35

4.02 Level of literacy basis analysis 38

4.03 Occupation basis analysis 40

4.04 Income basis analysis 41

4.05 Residential status basis analysis 42

4.06 Type of device basis analysis 43

4.07 Internet usage basis analysis 45

4.08 Online Banking facilities basis analysis 47

4.09 Time basis analysis 48

4.10 Purpose of online banking basis analysis 50

4.11 Customer education analysis 52

4.12 Upgradation of online basis analysis 53

4.13 Bank charges analysis 54

4.14 Preference basis analysis 55

4.15 Non accessibility basis analysis 57

4.16 Modification of service basis analysis 59

4.17 Overall rating basis analysis 61

4.18 Customer benefit analysis 62

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 CHAPTER 1
INTRODUCTION

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 CHAPTER – 1
1.1 INTRODUCTION

Online banking, also known as internet banking, web banking or home

banking, is an electronic payment system that enables customers of a bank or
other financial institution to conduct a range of financial transactions through the
financial institution's website. The online banking system will typically connect to
or be part of the core banking system operated by a bank to provide customers
access to banking services in place of traditional branch banking. Online banking
significantly reduces the banks' operating cost by reducing reliance on a branch
network, and offers greater convenience to customers in time saving and the
convenience of being able to perform banking transactions even when branches are
closed. Internet banking provides personal and corporate banking services offering
features such as viewing account balances, obtaining statements, checking recent
transactions, transferring money between accounts, and making payments. First
conceptualized in the mid-1970s, some banks offered customers electronic banking
in 1985. However, the lack of Internet users, and costs associated with online
banking led to reduced growth. The Internet explosion in the late-1990s made
people more comfortable with making transactions over the web. Despite the
dotcom crash, e-banking grew alongside the Internet.

1. Online banking (or) internet banking or E-banking, allows customers

of a financial institution to conduct financial transactions on a secure
website operated by the institution, which can be a retail or virtual
bank, credit union or building society.
2. Online banking is the practice of making bank transactions or paying
bills via the Internet. Thanks to technology, and the Internet in
particular, people no longer have to leave the house to shop,
communicate, or even do their banking. Online banking allows a
customer to make deposits, withdrawals, and pay bills all with the
click of a mouse.

The concept of the internet a couple of years ago would have sounded like a
fairy tale but today the internet is pervasive in almost every field. It changed the
fundamentals of how we conduct national as well as international business.

Within a few years, the internet has shown that it can deliver the long sought
after goals of electronic commerce. It is worth noting that companies in the
developed countries have recognized the business potential of the internet and are
getting connected to the network.

The financial institution (Bank) is one such organizations. Banking

constitutes one of the most prominent lifeline for Socio-Economic growth and
development in any given nation, it supports and assists in the supply of long and
short term loan, accepts both current saving and fixed deposits, both foreign

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transactions, advice and facilitates transactions between client, workers, agents,
firm, buyers and seller by providing payment services.

The internet having found its application and acceptance in the banking field
caused the banking industry to move on an accelerated pace of development. The
technological highway (the internet) has become an enabler for Banks in achieving
high level productivity and in handling volumes of transactions which would have
been impossible without the use of online banking (E-commerce).

The technology facilitates linkages with clients both through the provision
of information and quality service delivery, as well as in reducing barriers to entry
into payment system’s retail banking. Internet banking allows clients to engage in
informal transaction relationships which would have taken long distance travels or
movement of documents with the added risk of loss. With the online banking
(internet) you can at your convenience, at home and at any time review account
balances and transactions, transfer funds, receive and pay bills, download
transaction services and contact customer services just to mention a few.

An overview of the benefits and prospects of the online banking suggest that
for banks to be relevant to their customers in terms of the services they provide in
the 21st century and in the future, must add these in the banking system to stay in
competition. Now, the online banking is the one thing bank should invest in
internet technology to reap the benefit accruing from internet banking.

1.2 STATEMENT OF PROBLEM

Statement of problem -In the present century, every single person has acquainted themselves
with the concept of online banking and it has undeniably become an integral part of our daily
lives. In the present day and age, almost every individual has availed of a few online banking
facilities. In a country like India, a country with a massive populous and diversity, there are
still a few groups of individuals who haven't accepted online banking.
The purpose of this study is to provide a holistic view on online banking. To provide a
detailed study on the perception of the people on e-banking and most importantly analyse the
reasons behind the satisfaction and dissatisfaction among the people.
Analysis of the causes behind the reluctance of certain groups to use online banking is a
major objective.
Another major objective is to identify the major drawbacks of online banking from the
consumer's perspective and provide innovative solutions to eradicate or reduce the existing
weaknesses of the system.

1.3 OBJECTIVES OF THE STUDY

1. To understand the genesis and concept of Online-Banking.

2. To analyse the importance, functions, advantages and limitations of Online-
Banking.
3. To explain the different form of Online-Banking and to analyse the rules &
regulation regarding Online-Banking guided by RBI.

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 4. To analyse the perception of customers Online-Banking with the help of
primary data.
5. To analyse the present e-banking scenario concerned with ATM, Internet
banking, Mobile banking, credit card-debit card, fund transfer and other e-
banking services.
6. To examine the perception of customers and impact of ATM, Internet banking,
Mobile banking and Credit cards on customer satisfaction by analysing the
problems faced by the customers.

1.4 METHODS OF DATA COLLECTION

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

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

1.4.2 SAMPLING METHODS

The Primary data have been collected through a survey with a pre-tested
structured QUESTIONNAIRE on a sample of randomly selected 60 peoples of
CHANGANASSERY MUNICIPALITY.

1.5 LIMITATION OF THE STUDY

As it is the obligation of the bankers to maintain secrecy of the customer’s

account, it is very difficult to fetch sufficient information for the research. Because
of legal formalities, certain banks refused to provide certain information.

1) The sample for this study was based on the respondents of a specific
geographical area. The essential limitation of this study is that research has been
conducted only in CHANGANASSERY MUNICIPALITY.

2) Research of facilities has allowed to be made a survey at one city because of

there are cost and time constraints.

3) In the future, similar studies can be performed in more than one city or different
provinces and results may differ over time.

4) The possibility of the respondent's responses being biased cannot be ruled out.

5) Most of the study was restricted to Internet and published data because of the non-
availability of primary data.

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6) The information given by the respondents might be biased because some of them might
not be interested to give correct information.

7) Some of the respondents could not answer the questions due to lack of knowledge.

8) Some of the respondents of the survey were unwilling to share information.

1.6 CHAPTERISATION OF THE STUDY.

The study is presented in five chapters as follows:

1. CHAPTER ONE: Introduction to the study.

2. CHAPTER TWO: Review of literature.
3. CHAPTER THREE: Theoretical framework of online banking.
4. CHAPTER FOUR: Data analysis and Interpretation.
5. CHAPTER FIVE: findings suggestions & conclusions.

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 CHAPTER 2
REVIEW OF LITERATURE

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 CHAPTER 2

Samundeswari R and others (Nov 13, 2019) published a study on the perception and impact of
electronic banking in India. The study analysed the role of e banking in India. It also analysed the
opportunities and challenges. It showed that online banking showed an upward trend in terms of
growth and will continue to increase with rapid technological improvements.

Research Gates Oct 19, 2020) conducted a survey and study on E-banking services in Karnataka.
It analysed the attitudes, the likes and dislikes of the customers towards e banking in Karnataka. It
analysed the benefits challenges opportunities and role in development. By the study conducted
on "Customer's experience with E-Banking" we can conclude that in all respects the customers
are satisfied with their internet bank. Major concerns of customers include security and privacy
because of the growing number of online frauds, cheating cases and hacking. Even though the
Banks in India providing E-Banking facility are giving 128 bit encryption security there are cases
of frauds reported in India. So banks should be committed to provide adequate safety to the
customers and prevent frauds.

International Research of Engineering, Research and Technology (GUJARAT)(IJERT) (2017)

Monisha, a Research Scholar, Kanika Bhudiraja , an assistant professor and Jatinder Kaur, an
assistant professor published a massive survey and analysis of e banking in India It covered the
present e banking scenario, need and benefits and most importantly the INITIATIVES TAKEN
BY GOVERNMENT. It concluded that with the passage of time, Concept of E-Banking has got
consideration in Indian context. E-Banking services have been effectively implemented by many
public and private sector banks as it is profitable for Consumers as well as banks. The Role of
information and technologies has been exceptional in endorsement of e-banking. Many financial
innovations like ATMs, credit cards, RTGS, debit cards, mobile banking etc. have completely
changed the face of Indian banking.

N.P SANGEETHA (2019, may) MADURAI KAMRAJ UNIVERSITY Submitted a study on E-

banking services by commercial banks. Analysed the radical change, growth and trends. The
findings suggest that technological innovations have greatly encouraged customers to engage in
online banking. This study consist of six chapters followed by introduction and methodology,
review of literature, overview of banking industry, trends and bankers perception about e-banking
services, data analysis and interpretation and finally found out the finding and suggestions. It
gives a new insight to the E-banking users and beneficiaries. Online banking is just like normal
banking, with one big exception. You don't have to go to the bank for transactions. Instead, you
can access your account any time and from any part of the world, and do so when we have the
time, and not when the bank is open.

V. VIMALA (2016) an evaluative study on Internet Banking Security among selected Indian
Customers. To sum up, the current study analyzed the Internet banking customers in the

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Coimbatore district to understand various aspects of Internet banking services, and the concerns
on security measures by the consumers. The outcome of the research work on the Internet
banking helped to identify the precautionary checklist open to for a number of issues in the
internet banking era.

Furthermore, a supreme and powerful security policy employed by the banks and legislation
instituted by local or state Governments should be in use and obligatory in order to improve
A Study of E-banking in India: Trends of Popularity Presented by-Atharva Dhamale & Others
School Jnana Prabodhini Prashala, Pune and Maharashtra. Today E-banking or Net banking and
cashless transactions have become very important for the fast development of Indian Economy.
After the wild card decision on Demonetization by the Modi government Indian Economy will
take giant strides in its development. Looking at the present situation there in an urgent need for
the promotion of the Cashless society by the Indian government. In today's world of globalization,
promoting cashless society is the necessary thing for development of any country. Now, it is need
of INDIA to develop a user friendly. More efficient mode of online banking which will boost the
E-banking sector in India.

CUSTOMERS' PERCEPTION TOWARDS EBANKING SERVICES OFFERED

BY HDFC BANK

J.Priya'l and Dr.S.Subbulakshmi Ph.D. Research Scholar, Shrimathi Devkunvar Nanalal Bhatt
Vaishnav College for Women, Chromepet. The study concluded that HDFC bank is one of the
largest rapidly growing private sector banks. The Bank always strives to provide customized e-
banking services to its customers as per their needs and requirements and HDFC Bank proved by
acting user-friendly to its customers based on their views, queries, expectation. From the study, it
was clear that E-banking services almost become a necessity of every smartphone holder due to
the advantages it provides along with the operations. The present study concludes that the usage
of HDFC e-banking is at a satisfactory level. The customers face minor problems in security
issues and slow server in the usage of e-banking but people are inclined towards e-banking
because of its convenience, ease of use, quick services as promised by HDFC Bank.

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 CHAPTER 3
THEORETICAL FRAMEWORK

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 CHAPTER – 3
ONLINE BANKING – AN OVERVIEW

2.1 DEFINITION

Online banking is an electronic payment system that enables customers of a

financial institution to conduct financial transactions on a website operated by the
institution, such asa retail bank, virtual bank, credit union or building society. Online
banking is also referred as internet banking, e-banking, virtual banking and by other
terms.

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

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

Online banking is the practice of making bank transactions or paying bills via the
Internet. Thanks to technology, and the Internet in particular, people no longer have to
leave the house to shop, communicate, or even do their banking.

HOW ONLINE BANKING EVOLVED INTO A MAINSTREAM

FINANCIAL TOOL

In today’s highly technical world, it’s hard to imagine there was once a time
when all banking was conducted at an actual brick-and-mortar financial institution.
Even simple account transfers required a trip into the bank.

While today’s online banking is filled with amazing innovations, it hasn’t always been this easy
─ in fact it took a long time to get this far.

● HISTORICAL DEVELOPMENT:

The precursor for the modern home online banking services were the distance banking
services over electronic media from the early 1980s. The term 'Online' became popular
in the late '80s and referred to the use of a terminal, keyboard and TV (or monitor) to
access the banking system using a phone line. 'Home banking' can also refer to the use
of a numeric keypad to send tones down a phone line with instructions to the bank.
Online services started in New York in 1981 when four of the city's major banks
(Citibank, ChaseManhattan, Chemical and Manufacturers Hanover) offered home
banking services using the videotex system. Because of the commercial failure of
videotex these banking services never became popular except in France where the use

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of videotex (Minitel) was subsidized by the telecom provider and the UK, where the
Prestel system was used.

While financial institutions took steps to implement in e-banking services in the mid-
1990s,many consumers were hesitant to conduct monetary transactions over the web. It
took widespread adoption of electronic commerce, based on trailblazing companies
such as America Online, Amazon.com and eBay, to make the idea of paying for items
online widespread. By 2000, 80 percent of U.S. banks offered e-banking. Customer use
grew slowly .At Bank of America, for example, it took 10 years to acquire 2 million e-
banking customers. However, a significant cultural change took place after the Y2K
scare ended. In 2001, Bank of America became the first bank to top 3 million online
banking customers, more than 20percent of its customer base. In comparison, larger
national institutions, such as Citigroup Claimed 2.2 million online relationships
globally, while J.P. Morgan Chase estimated it had more than 750,000 online banking
customers. Wells Fargo had 2.5 million online banking customers, including small
businesses. Online customers proved more loyal and profitable than regular customers.
In October 2001, Bank of America customers executed a record 3.1million electronic
bill payments, totalling more than $1 billion. In 2009, a report by Gartner Group
estimated that 47 percent of U.S. adults and 30 percent in the United Kingdom are using
bank online. Today, many banks are internet only banks. Unlike their predecessors,
these internet only banks do not maintain brick and mortar bank branches. Instead, they
typically differentiate themselves by offering better interest rates and more extensive
online banking features.

● First Online Banking Services in the United States:

According to "Banking and Finance on the Internet," edited by Mary J. Cronin,

online banking was first introduced in the early 1980s in New York. Four major banks
—Citibank, Chase Manhattan, Chemical and Manufacturers Hanover—offered home
banking services. Chemical introduced its Pronto services for individuals and small
businesses in 1983. It allowed individual and small-business clients to maintain
electronic cheque book registers, see account balances, and transfer funds between
checking and savings accounts. Pronto failed to attract enough customers to break even
and was abandoned in 1989.
Other banks had a similar experience.
● First Online Banking Services in the U.K:

Almost simultaneously with the United States, online banking arrived in the United
Kingdom. The UK's first home online banking services known as Home link was set up
by Bank of Scotland for customers of the Nottingham Building Society (NBS) in 1983.
The system used was based on the UK's Prestel view link system and used a computer,
such as the BBC Micro, or keyboard (TandataTd1400) connected to the telephone
system and television set. The system allowed on-line viewing of statements, bank
transfers and bill payments. In order to make bank transfers and bill payments, a written

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instruction giving details of the intended recipient had to be sent to the NBS who set the
details up on the Home link system.

● Banks and the World Wide Web:

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

● First Online Banking in India:

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

2.2 FEATURES OF ONLINE BANKING:

Online banking facilities offered by various financial institutions have many

features and capabilities in common, but also have some that are application specific.

The common features fall broadly into several categories:

● A bank customer can perform non-transactional tasks through online banking, including,
➢ Viewing account balances.
➢ Viewing recent transactions.
➢ Downloading bank statements, for example in PDF format.
➢ Viewing images of paid cheques.
➢ Ordering cheque books.
➢ Download periodic account statements.
➢ Downloading applications for M-banking, E-banking etc.

● Bank customers can transact banking tasks through online banking, including,

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 ➢ Funds transfers between the customer's linked accounts.
➢ Paying third parties, including bill payments and third party fund transfers
➢ Investment purchase or sale.
➢ Loan applications and transactions, such as repayments of enrolments.
➢ Credit card applications.
➢ Register utility billers and make bill payments.
➢ Financial institution administration.
➢ Management of multiple users having varying levels of authority.
➢ Transaction approval process.

2.3 ADVANTAGES OF ONLINE BANKING

Many banks have begun to offer customers the option of online-internet banking,
a practice that has advantages for both parties involved. The convenience of being able
to access accounts at any time as well as the ability to perform transactions without
visiting a local branch, draw many people to be involved. Some of these advantages of
internet banking but are not limited to, include :

● Customer’s convenience

Direct banks are open for business anywhere there is an internet connection.
They are also 24 hours a day, 365 days a year open while if internet service is
not available, customer services is normally provided around the clock via
telephone. Real-time account balances and information are available at the touch
of a few buttons thus, making banking faster, easier and more efficient. In
addition, updating and maintaining a direct account is easy since it takes only a
few minutes to change the mailing address, order additional checks and be
informed for market interest rates.

● More efficient rates

The lack of significant infrastructure and overhead costs allow direct banks to
pay higher interest rates on savings and charge lower mortgage and loan rates.
Some offer high-yield checking accounts, high yield certificate of deposits
(CDs), and even no-penalty CDs for early withdrawal. In addition, some
accounts can be opened with no minimum deposits and carry no minimum
balance or service fees.

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● Services

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

● Mobile services

Internet banking also includes mobile capabilities. New applications are

continually being created to expand and improve this capability or smart-phones
and other mobile devices.

● Transfers

Accounts can be automatically funded from a traditional bank account via

electronic transfer. Most Direct banks offer unlimited transfers at no cost, including
those destined for outside financial institutions. They will also accept direct deposits
and withdrawals that the customer authorizes such as payroll deposits and automatic
bill payment.

● Ease of use

Online accounts are easy to set up and require no more information than a traditional bank
account. Many offer the option of inputting the customer's data online or downloading the
forms and mailing them in. If the customer runs into a problem, he has the option of
calling or emailing the bank directly.

● Environment friendly

Internet banking is also environmentally friendly. Electronic transmissions

require no paper, reduce vehicle traffic and are virtually pollution-free. They
also eliminate the need for buildings and office equipment.

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2.4 THE DISADVANTAGES OF INTERNET BANKING

Internet banking seems like an obvious choice to leave the hassles of traditional
money management behind in exchange for it. However, there are potential problems
associated with banking over the internet of which customers may not be aware.
Consumers need to weigh the advantages as well as the disadvantages of internet
banking before signing up. Some of the disadvantages of internet banking include:

● Bank relationship

A traditional bank provides the opportunity to develop a personal relationship

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

● Transaction issues

Sometimes a face-to-face meeting is required to complete complex transactions

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

● Service issues

Some direct banks may not offer all the comprehensive financial services such as
insurance and brokerage accounts that traditional banks offer. Traditional banks
sometimes offer special services to loyal customers such as preferred rates and
investment advice at no extra charge. In addition, routine services such as
notarization and bank signature guarantee are not available online. These
services are required for many financial and legal transactions.

● Security

Direct banks are subject to the same laws and regulations as traditional banks
and accounts are protected by the FDIC. Sophisticated encryption software is
designed to protect your account information but no system is perfect. Accounts
may be subject to phishing, hacker attacks, malware and other unauthorised

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 activity. Most banks now make scanned copies of cleared checks available
online which helps to avoid and identify check fraud. It enables verification that
all checks are signed by the customer and that dollar or euro amounts have not
been changed. The timely discovery of discrepancies can be reported and
investigated immediately.

● Connectivity

Another issue is that sometimes it becomes difficult to note whether your

transaction was successful or not. It may be due to the loss of net connectivity in
between, or due to a slow connection, or the bank’s server is down.

DIFFERENT TYPES OF ONLINE BANKING

2.5 CORE BANKING SOLUTION or CBS:

Core Banking is a banking service provided by a group of networked bank

branches where customers may access their bank account and perform basic
transactions from any of the member branch offices. Core banking is often associated
with retail banking and many banks treat the retail customers as their core banking
customers. Businesses are usually managed via the Corporate banking division of the
institution. Core banking covers basic depositing and lending of money.

Normal Core Banking functions will include transaction accounts, loans, mortgages and
payments. Banks make these services available across multiple channels like ATMs,
Internet banking, mobile banking and branches.

The core banking services rely heavily on computer and network technology to allow a
bank to centralize its record keeping and allow access from any location. It has been the
development of banking software that has allowed core banking solutions to be
developed.

HISTORY

Core banking became possible

with the advent of computer and
telecommunication technology that
allowed information to be shared
between bank branches quickly and
efficiently. Before the 1970s it used to

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take at least a day for a transaction to reflect in the account because each branch had
their local servers, and the data from the server in each branch was sent in a batch to the
servers in the data centre only at the end of the day (EoD).Over the following 30 years
most banks moved to core banking applications to support their operations where
CORE Banking may stand for "centralized online real-time exchange".
This basically meant that all the bank's branches could access applications from
centralized data
centres. This meant that the deposits made were reflected immediately on the bank's servers and
the customer could withdraw the deposited money from any of the bank's branches.

ADVANTAGES;

● Centralized Accounting:

➢ All the transactions of the bank directly impact the General Ledger and Profit
and Loss Account. This provides a real time total picture about the financial
position and situation of the bank

➢ This helps for timely effective decision making for financial management, a very
critical and dynamic function in today’s banking.

● Centralized Product Control & Monitoring:

➢ Centralization helps in better product analysis, monitoring and rollout.

➢ Aspects like interest rate modifications, product modification and interest application can
be done centrally from one place for all the branches.
➢ Bank can quickly respond to market scenario and customer needs. This gives a competitive
edge to the bank.

● Introduction of Technology Based Services:

➢ Service channels such as ATM, either on-site or offsite, can be started.

➢ Cheque Deposit Machines (CDM) can be installed. Such machines in WAN
connectivity can allow any customer to deposit the cheque for collection at any
branch.
➢ Cheque book printing machines can be installed at central locations to give
personalized cheque books. Such machines in WAN connectivity can receive
command from any branch.

● Centralized Customer Account Management:

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 ➢ Any customer becomes the customer of the bank rather than of a branch.
➢ With unique ID / Account Number the accounts of the customers can be viewed centrally
by the bank. As such, customer profile, details of products and services availed by him and
customer behaviour about business of the bank can be well understood.
➢ Such customer view gives the bank opportunity to decide directions for business
development and marketing strategies.
● Advantages to Head Office:

➢ Consolidation of MIS / statements / reporting at one place reducing duplication of tasks at

branches and it is of real time.
➢ Supervision of branches on risk perceptions possible as ongoing process.
➢ Frequent audits and timely control measures can be initiated.
➢ Faster and practically real time reconciliation of accounts.
➢ Centralized marking and movement monitoring of NPA accounts.
➢ Better ALM, especially for short term assets and liabilities possible.
➢ Audit on operational aspects of the accounts can be done at a single location as entire data
is available at one place.
➢ By installing mailing solution on the internet of the bank, written communication in the
form of letters, between H. O. and branches and vice versa, can be eliminated.

● Advantages to Branch:

➢ With reduced work at the branches they can focus on development of business,
customer service and attendance and meaningful liaison with customers for
getting new business.
➢ Since customer needs are known with proper analysis they can be well attended
and boosts the image of the bank.

ATM BANKING:

● Convenient Self Service

Deposits – Cash and check deposits can be made at ATMs.

Withdraw Funds – The cash you need when you need it.
Transfer funds – Move funds between checking accounts and savings accounts that are
linked to your debit card.

● Account Management

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 Check Balance – View your account balance before you make a withdrawal.
Mini Statement – Receive a print out of your transaction history and account balances.

● Customizable

Fast Cash – Set standard ATM withdrawal amounts.

Receipt Options – Set whether or not you will receive a receipt when
you make transactions.
Preferred Language – Choose English, Tamil, Hindi, Malayalam, Telugu.

DIGITAL WALLET:

A digital wallet refers to software, an electronic device, or an online service that

enables individuals or businesses to make transactions electronically. It stores the
payment information of users for different payment modes on various websites, along
with other items such as gift coupons and driver’s licenses. A digital wallet is also
known as an e-wallet.

Traditionally carried in the form of a smartphone app, a digital wallet can also exist in
other forms, such as a desktop. However, the mobile app is the most popular version of
the digital wallet, owing to its mobility and flexibility.

Digital wallets are not only convenient to use in certain cases but also safer than
traditional wallets. Users of digital wallets need to download the specific apps created
by banks or trusted third parties to avail of the service.

Summary

● A digital wallet refers to a software, electronic device, or online service that allows
individuals or businesses to make electronic transactions.
● A digital wallet stores all the payment information of users in a secure and compact form,
reducing the need for physical wallets.
● A digital wallet requires users to download the digital wallet app on their smartphones or
other physical devices.

Significance of a Digital Wallet

● A digital wallet securely stores all the payment information of users in a compact form.
Thus, it greatly reduces the need to carry physical wallets.
● Companies that need to collect consumer data for their marketing needs can benefit greatly
from digital wallets. They get to know the purchasing habits of consumers and increase the

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 effectiveness of the marketing methods of their products. However, it leads to a loss of
privacy for consumers.
● Many developing countries using digital wallets may be able to increase their participation
in the global financial market.
● Digital wallets allow users to transfer funds to friends and family residing in different
nations.
● Moreover, digital wallets eliminate the need for physical banks and companies in order to
open and maintain a bank account. Hence, they also connect individuals and businesses in
rural areas.
● A digital wallet is required to make transactions and maintain balances of crypto
currencies.

Types of Digital Wallets

The following are the three types of digital wallets:

● Closed Wallet
A company selling products and/or services can develop a closed wallet for
customers. Users of a closed wallet can use the funds stored to make transactions
with only the issuer of the wallet. The money from cancellations, returns, or
refunds is stored in the wallets. Amazon Pay is an example of a closed wallet.

● Semi-closed Wallet
A Semi-closed wallet allows users to make transactions at listed merchants
and locations. Although the coverage area of such wallets is restricted, both
online and offline buying can be done through the wallets. However, merchants
need to enter into agreements or contracts with the issuers for accepting
payments from the mobile wallets.

● Open Wallet
Banks or institutes partnered with banks issue open wallets. Users with open
wallets can use them for all transactions allowed with a semi-closed wallet in
addition to withdrawal of funds from banks and ATMs and transfer of funds.

Examples of Digital Wallets

● PayPal One Touch™

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 The PayPal One Touch™ app is an extension of the usual services offered by
PayPal. It enables users to make payments or transfer funds faster by allowing
them to skip the login screen and eliminate the need to enter passwords. PayPal’s
mobile wallet app can also be operated on a desktop, laptop, or tablet.
● Apple Pay

The Apple Pay digital app is streamlined and available exclusively for users of
iPhones, iPads, and Apple watches. It allows users to make transactions for both
online and in-store purchases. For in-store transactions, users can unlock their
phones and hold them near a compatible point of sale system. The Apple Pay
app enables a seamless and secure way of payments, providing ease of
experience.

● Google Pay

The Google Pay app enables users to make transactions on an app or any website
using debit or credit card details saved to the users’ Google Account, Google
Play, Chrome, YouTube, Android phones, and watches. The app also supports
other electronic documents such as student ID, movie tickets, gift coupons, store
cards, and transportation tickets.

DIGITAL MONEY

Digital money, or digital currency, is any form of money or payment that exists
only in electronic form. Digital money lacks a tangible form such as a bill, check, or
coins. It is accounted for and transferred using electronic codes in computers. As
technology becomes increasingly prominent, payments are becoming more digital,
resulting in less use of tangible money.

Digital Money Explained

New forms of technology now allow for more secure and seamless use of digital
money. Digital money can be transferred and exchanged with technologies like credit
cards, smartphones, and online crypto currency exchanges.

Crypto currency refers to a type of digital money that is secured by

cryptography, making it almost impossible to counterfeit or double-spend. It exists
through decentralized networks based on block chain technology, which is essentially a

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ledger that is stored through a network of computers. The significant feature of crypto
currencies is that they are not issued by a central bank or government, which makes
them free from the hindrance of government intervention or manipulation.

The history of digital money dates back to the invention of the internet. There were
difficulties getting the population to adopt the use of digital money in the early days;
however, as people become more comfortable with technology, and the technology
itself becomes more safe and secure, more people are now willing to utilize digital
monies. PayPal is considered one of the first successful companies to bring the idea of
easy-use digital financial transactions to mass adoption.

Examples of Digital Money

The most common form of digital money is the money that is held by banks and central
government deposits. The institutions hold a certain level of capital in order to weather
economic stress; however, the money does not sit in a safe in some physical location.

Instead, it is housed electronically in the form of digital money. Banks and central
governments handle transactions, including millions or billions of currencies, but are
devoid of the use of physical cash.

Another prominent form of digital money is crypto currency. As explained earlier, it is

a form of digital money that exists through a block chain network. Some forms of
crypto currency include:

● Bit coin
● Ethereum
● Ripple
● Litecoin

2.6 NEFT

National Electronic Fund Transfer (NEFT) is a nation-wide payments system

that allows the transfer of funds from one bank’s account to another. With an increased
focus on online banking, NEFT has become one of the most popular ways of
transferring funds. Since it can electronically transfer funds from any bank branch to
any individual, it has eliminated the need to visit a bank branch for transfer of funds.

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NEFT Process

Stated simply, if an individual wish to transfer a sum of money from his bank account
to another person’s bank account, he can do so through the process of NEFT, instead of
withdrawing money and then paying it in cash or by writing out a cheque.

● The main benefit offered by NEFT is that it can transfer funds from any account of
any branch to any other bank account located at any place
● The only condition is that both the sender and receiver branches should be NEFT-
enabled

● You can check the list of NEFT-enabled bank branches on RBI’s website or just
call your bank’s customer service to confirm the same

● NEFT system also facilitates the one-way cross-border transfer of funds from India
to Nepal under the Indo-Nepal Remittance Facility Scheme.

NEFT Timings

NEFT works on a round-the-clock basis i.e. 24×7, 365 days. Earlier, NEFT transactions
were available from 8:00 AM to 6:30 PM from Monday to Friday only. However, RBI
has regularised that NEFT transactions will be available
24*7 on all days of the year, including holidays.

2.7 RTGS

The term real-time gross settlement (RTGS) refers to a funds transfer system
that allows for the instantaneous transfer of money and/or securities. RTGS is the
continuous process of settling payments on an individual order basis without netting
debits with credits across the books of a central bank. Once completed, real-time gross
settlement payments are final and irrevocable.
In most countries, the systems are managed and run by their central banks.

Benefits of Real-Time Gross Settlement (RTGS)

RTGS systems, increasingly used by central banks worldwide, can help minimize the
risk to high-value payment settlements among financial institutions. Although
companies and financial institutions that deal with sensitive financial data typically
have high levels of security in place to protect information and funds, the range and
nature of online threats are constantly evolving.

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Real-time gross settlement can allow a smaller window of time for critical information
to be vulnerable, thus helping mitigate threats. Two common examples of cyber
security threats to financial data are social engineering or phishing—tricking people
into revealing their information—and data theft, whereby a hacker obtains and sells
data to others.
2.8 IMPS

Immediate Payment Service (IMPS) is a real-time interbank payment service

that is available 24 x 7 and throughout the year including Sunday and any other bank
holiday. IMPS was launched by the National Payments Corporation of India (NPCI) on
22nd November 2010 by Smt. Shyamala Gopinath, DG of The Reserve Bank of India.
You can pay any beneficiary instantly using your mobile phone or internet banking.

IMPS is one of the most simplified ways of transferring funds. Any user with a bank
account can transfer funds electronically via internet banking and mobile banking. Any
customer transferring funds should ensure that the payment is under the IMPS limit and
the sender is registered as a mobile banking customer

2.9 MOBILE BANKING

Mobile banking is a facility that enables customers to initiate and/or perform

banking tasks on their mobile phones. This is provided by most of the banks in India
and abroad. Customers can use mobile banking to view their account balance, make
instant fund transfers and pay bills, etc.

There are various types of mobile banking, viz. via SMS, USSD and mobile apps. Some
of the banks like SBI, have incorporated services like loan approval and linking of
insurance policy in their mobile banking apps

2.10 SECURITY ISSUES OF NET BANKING

The Internet has made banking, shopping, and conducting other financial
transactions online quite convenient. But when it comes to your money, you want to
make sure your transactions are safe. Security of a customer's financial information is
very important, without which online banking could not operate.

Presently, Internet banking customers only need a computer with access to the Internet
to use Internet banking services. Customers can access their banking accounts from
anywhere in the world. Each customers is provided a login ID and a password to access
the service. It is indeed easy and convenient for customers.

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However, the use of passwords does not provide adequate protection against Internet
fraud such as phishing. The problem with password is that when it has been
compromised, the fraudsters can easily take full control of online transactions. In such
cases, the password is no longer works as an authentication token because we cannot be
sure who is behind the keyboard typing that password in. However, easy access and
convenience should not be at the expense and mercy of the security of information. This
is important in order to ensure the confidentiality of information and that it is not being
manipulated or compromised by the fraudsters.

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 CHAPTER 4
ANALYSIS AND INTERPRETATION

34 | Page
 CHAPTER – 4
4.1 DATA ANALYSIS AND INTERPRETATION

1. GENDER BASIS ANALYSIS

TABLE 4.01

S.No Particular No. of Respondents Percentage

1 Male 30 50%
2 Female 30 50%
3 Total 60 100%

FIGURE 4.01

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2 AGE BASIS ANALYSIS:

TABLE 4.02

The following table is based on the age of the respondents

S.No Age No. of respondents Percentage

1 20-25 17 28.33%

2 25-30 23 38.33%

3 30-40 18 30%

4 Above 40 2 3.33%

TOTAL 60 100%

INTERPRETATION:

This table shows that 28.33% of respondents are from 20-25 age groups,

38.33 of respondents are from 25-30 age groups, 30% of respondents are

30-40 and 3.33% of respondents are above 40 year.

. 3 LEVEL OF LITERACY BASIS ANALYSIS:

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 TABLE 4.03

S.no Educational No. of respondents Percentage

Qualification

1 SSLC 13 21.7%

2 HSC 6 10%

3 Diploma 1 1.7%

4 UG 25 41.7%

5 PG 11 18.3%

6 Technical degree 2 3.3%

7 Other 2 3.3%
TOTAL 60 100%

INTERPRETATION

This table shows that 21.7% of respondents are in SSLC, 10% of respondents are in
HSC, 1.7% of respondents are in Diploma, 41.7% of respondents are Under Graduates, 18.3%
of respondents are Post Graduates, 3.3% of them are from Technical degree, 3.3% from other.

FIGURE 4.02

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4 OCCUPATION BASIS ANALYSIS:

TABLE 4.04

S.No Occupation No. of Percentage

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 respondents
1 15 25%
Agriculture, Food and Natural

Resources

2 Arts, Audio/Video 1 1.7%

Technology and

Communications
3 Business 4 6.7%

Management and

Administration
4 Education and 4 6.7%

Training
5 Government and 4 6.7%

Public

Administration
6 Hospitality and 2 3.3%

Tourism
7 Students 19 31.7%

8 others 8 13.3%

TOTAL 60 100%

INTERPRETATION:

This table shows that 25% respondents are Agriculture, Food and

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Natural Resources, 1.7% respondents are Arts, Audio/Video Technology and

Communications, 6.7% respondents are Business Management and

Administration , 6.7% respondents are occupied in Education and Training and 6.7% respondents
are Government and Public Administration , 3.3% respondents are occupied in Hospitality and
Tourism , 31.7% are students, 13.3% are others.

FIGURE 4.03

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5 INCOME BASIS ANALYSIS:

TABLE 4.05

S.No Income No. of respondents Percentage

1 0- 10000 31 51.7%

2 10000-30000 19 31.7%

3 30000-60000 5 8.3%

4 Above 60000 5 8.3%

TOTAL 60 100%

INTERPRETATION:

This table shows that 51.7% respondent income is below 10000, 31.7% respondent income is
10000-30000, 8.3% respondent’s income is 30000-60000, 8.3% respondents income is above
60000.

FIGURE 4.04

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6 RESIDENTIAL STATUS BASIS ANALYSIS:

TABLE4.06

S.No Residential status No. of respondents Percentage

1 Rural 27 45%

2 Semi-urban 14 23.3%

3 Urban 19 31.7%

TOTAL 60 100%

INTERPRETATION:

This table shows that 45 % respondents lived in rural area, 23.3 % respondents are
lived in semi-urban area and 31.7 % respondents are lived in urban area.

FIGURE 4.05

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.

7 TYPE OF DEVICES BASIS ANALYSIS:

TABLE 4.07

S.No Devices No. of respondents Percentage

1 Mobile Phone 43 91.5%

2 Laptop 2 4.3%

3 Personal Computer 2 4.3%

TOTAL 47 100%

INTERPRETATION:

This table shows that 91.5 % respondents use Mobile phones, 4.3 % of respondents use Laptop,
and 4.3 % respondents use Personal Computer.

FIGURE 4.06

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8 INTERNET USAGE BASIS ANALYSIS:

TABLE 4.08

S.No Hour ( per day ) No. of respondents Percentage

1 One Hour 6 12.8%

2 Two Hour 4 8.5%

3 5 10.6%
Three hours

4 32 68.1%
More than Three

Hour

TOTAL 47 100%

INTERPRETATION:

Among 47 respondents 68.1 % use the internet for more than three hours per day,10.6% of
respondents use internet for 3 hours, 8.5 % use the internet for two hours per day, 12.8% use the
internet for one hour .

FIGURE 4.07

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45 | Page
9. PREFERABLE BANKS BASIS ANALYSIS:

TABLE 4.09

S.No Name of the Bank No. of respondents Percentage

1 State Bank of India 16 26.66%

2 Axis Bank 7 11.66%

3 ICICI Bank 5 8.33%

4 Kotak Mahindra Bank 8 13.33%

5 HDFC Bank 8 13.3%

6 IndusInd Bank 4 6.66%

7 Bank Of Baroda 4 6.66%

8 Punjab National Bank 2 3.33%

9 Karur vysya bank 2 3.33%

10 Indian Overseas Bank 4 4.44%

TOTAL 60 100%

INTERPRETATION:

Among 60 respondents 26.6% have SBI Bank a/c, 11.66 % have Axis Bank a/c ,
13.33% have Kotak Mahindra Bank a/c & 13.33% have HDFC Bank a/c , 8.33% have ICICI
Bank a/c , 6.66%Bank of Baroda a/c and 3.33% for Punjab national bank& Karur vysya, 4.44%
for Indian overseas bank

10 BANKING FACILITIES ONLINE BASIS ANALYSIS:

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.

TABLE 4.10

S.No All Banking No. of respondents Percentage

Facilities Online

1 Yes 40 66.66

2 No 20 33.33
TOTAL 60 100%

INTERPRETATION:

Out of 60 respondents, 40 i.e. 66.6% use online banking and 20 i.e. 33.33% don’t use online banking.

FIGURE 4.08

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.

11 TIME BASIS ANALYSIS:

TABLE 4.11

S.No Use of Online No. of respondents Percentage

Banking

1 Daily 5 10.4%

2 Weekly 16 33.3%

3 Monthly 9 18.8%

4 Occasionally 18 37.5%

TOTAL 48 100%

INTERPRETATION:

Majority of the users make use of E- Banking services occasionally. 18 respondents to

be exact.

FIGURE 4.09

12 PURPOSE OF ONLINE BANKING BASIS ANALYSIS:

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.

TABLE 4.12

S.No No. of respondents Percentage

Purpose of Online
Banking

1 Privacy 3 6.3%

2 10 20.8%
24x7 Business

Hour

3 Convenience 35 72.9%

TOTAL 48 100%

INTERPRETATION:

Among 48 respondents 72.9% of people use online banking for convenience and other
20.8% of people for 24/ 7 business hour and rest i.e. 6.3% prefer privacy.

FIGURE 4.10

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.

50 | Page
 13 RATE BASIS ANALYSIS:

TABLE 4.13

Good No Average Poor

S.N o Transaction Excellent
Opinion

1 Fund 16 21 10 1 0

Transfer

2 ATM 11 24 9 3 1

Banking

3 Balance 15 19 10 4 0

Enquiry

4 Online 5 19 20 4 0

Fixed

Deposit

5 Request a 2 11 28 7 0

Demand

Draft

6 Pay Bills 20 16 11 1 1

7 Online Shopping 26 15 7 0 0

8 Online Recharge 28 12 8 0 0

INTERPRETATION:

It is interesting to see that most of the respondents give “EXCELLENT” rating to

ATM Banking, Balance Enquiry, Pay Bills, Online-Shopping and Online Recharge. Majority of
the people have an overall good perception of all the banking services.

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 14 Customer Education analysis :

TABLE 4.14

S.No Customer education No. of respondents Percentage

1 Yes 23 38.3%
2 No 27 45%
3 maybe 10 16.7%
60 100%
TOTAL

INTERPRETATION:

45 % of the respondents have claimed that they weren’t informed and taught about these
services .38.3 % have said yes to being informed and educated and 16.7% weren’t certain if
they were informed .

FIGURE 4.11

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1.

15 UPGRADATION OF ONLINE SERVICE BASIS ANALYSIS:

TABLE 4.15

S.No Upgradation of No. of respondents Percentage

Online Service
1 Yes 18 30%
2 No 16 26.7%
3 Maybe 26 43.3%
TOTAL 60 100%

INTERPRETATION:

This is very interesting to see that most of the online banking users think that their banks upgrade their
services regularly. But some people i.e. 26.7% did not think so and 43.3% did not come to a conclusion.

FIGURE 4.12

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 16 BANK CHARGES BASIS ANALYSIS:

TABLE 4.16

S.No Unnecessary Bank No. of respondents Percentage

Charges
1 Yes 28 46.7%
2 No 32 53.3%
TOTAL 60 100%

INTERPRETATION:

46.7% of users think that their banks charge unnecessary for online services. While 53.3%
people think that their banks don’t make such unnecessary charges.

FIGURE 4.13

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 17 PREFERENCE BASIS ANALYSIS:

TABLE 4.17

S.No Online Banking No. of respondents Percentage

Preference
1 Yes 23 38.3%
2 No 20 33.3%
3 Maybe 17 28.3%
TOTAL 60 100%
INTERPRETATION:

It is obvious that most of the respondents preferred using Internet Banking over their traditional
banking system. Thus, Internet Banking has a bright future.

FIGURE 4.14

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 18 NON-ACCESSIBILITY BASIS ANALYSIS:

TABLE 4.18

S.No Non-accessibility No. of respondents Percentage

1 23 38.3%
Lack of

Awareness of

People

2 3 5%
Lack of Computer

Facility

3 9 15%
Poor Internet

Connection

4 Lack of Knowledge 25 41.7%

TOTAL 60 100%

INTERPRETATION:

Among 60 respondents 38.3% chose “Lack of awareness”, 5% chose “Lack of Computer Facility”,
15% chose “Less Internet Connection” and 41.7% chose “Lack of

Knowledge” option.

FIGURE 4.15

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57 | Page
 19 MODIFICATION OF SERVICE BASIS ANALYSIS:

TABLE 4.19

S.No Modification of No. of respondents Percentage

Service

1 ATM Service 14 28.6%

2 Accounts Service 16 32.7%

3 Fund Transfer 10 20.4%

4 Bill Payment 11 22.4%

5 E-Tax Payment 12 24.5%

6 E-Deposit Market 10 20.4%

7 10 20.4%
Investment & D-
mat Service

8 Loans & Credit 20 40.8%

Service

9 Internet Security 24 49%

Service

INTERPRETATION:

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49% of respondents strongly believe that there should be more improvements and modifications
in internet security.

FIGURE 4.16

20 OVERALL RATING BASIS ANALYSIS:

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 TABLE 4.20

S.No Ratings No. of respondents Percentage

1 Excellent 4 8.2%

2 Very Good 18 36.7%

3 Good 22 44.9%

4 Average 3 6.1%

5 Poor 0 0

6 Hard to Say 2 4.1%

TOTAL 49 100%

INTERPRETATION:

People have mixed feelings in relation to overall satisfaction. This may be due to multiple
reasons. Nonetheless, the majority i.e. 44.9% and 36.7% chose the “GOOD” and “VERY
GOOD” option respectively. 8.2% chose excellent.

FIGURE 4.17

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61 | Page
21. Customer Benefit analysis

TABLE 4.21

S.No Income savings No. of respondents Percentage

1 Yes 23 38.3%

2 No 20 33.3%

3 Maybe 17 28.3%
TOTAL 60 100%

INTERPRETATION:

Out of 60 respondents, 38.3% said yes, 33.3% said no and 28.3% said maybe.

FIGURE 4.18

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 CHAPTER 5
FINDINGS, SUGGESTIONS AND
CONCLUSION

63 | Page
 CHAPTER – 5
5.1: FINDINGS

THE MAJOR FINDINGS OF THE PRIMARY SURVEY ARE:

MAJOR FINDINGS OF THE STUDY

1) From 60 responses, 40 said ' Yes ' to make use of online banking facilities and 20 said ' No'.

2) From the 60 respondents, 25 of the respondents had a UG level of literacy, 13 had SSLC
level and 11 had PG level of literacy, 6 had HSC.

3) The majority of the respondents were in the income range of 0- 10,000. It is because the
majority of the respondents were students who had no means of livelihood and were to a great
extent dependent on their parents.

4) From the residential based analysis, 27 respondents were from rural areas, 19 from urban
and 14 from semi Urban.

5) All the 60 respondents had a bank account. The majority had a bank account in SBI.

6) The bulk of the respondents were students between the ages of 20- 25 & 25-30. 19 students
responded. The younger generation is more tech savvy and grossly involved in making use of
the Internet. It is followed by professionals in the fields of business and administration -4 ,
education and training- 4 , government and Public Administration - 4, Hospitality and
Tourism - 2, Arts , Audio and video technology - 1. Respondents in other unspecified fields-
8.

7) From 47 respondents who used online banking, an overwhelming number of them used the
mobile phone for such services. 43 respondents (91.5%) used the mobile phone.
It is clear that mobile phones are used more in tandem with online banking because of device
versatility.

8) Out of 47 respondents, a massive number of respondents used the Internet for more than 3
hours. 32 respondents to be specific. Most of the respondents used the Internet throughout the
day and it is clear that the Internet has become an integral component of our day to day lives.

9) Out of 48 responses, 18 people used online banking services occasionally. 16 people have a
weekly usage, 5 people have a daily usage and 9 people have monthly usage. From this
statistic we can infer that a bulk of the consumers have a positive outlook on online banking
services. It is clear that with time, the frequency at which these services are availed will only
increase.

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10) Out of 60 responses, the majority i.e. 27 respondents said that they believed in the security
of online banking. 17 said no and 16 respondents said that they weren't certain.

11) From 48 responses, the majority i.e. 35 respondents claimed that they used online banking
because of convenience.

12) As for ratings of various services of online banking: (48 responses)

* Fund Transfer - The majority have rated it as 'good'.
*ATM- The majority rated have the service as good.
*Online Fixed Deposit- The majority have rated the service as good.
*Demand Draft Request - The majority have no opinion of the service because they are not
aware of it and haven't used it extensively.
*Pay Bills- The majority have rated the service as excellent
*Online Shopping- The majority have rated the service as excellent.
*Online Recharge - The majority have rated the service as excellent.
*Balance Enquiry- The majority have rated the service as excellent.

13) The majority of the respondents claimed that the banks didn't educate them about the
various online banking services.

14) Out of 60 responses, 26 said ' maybe ' for service upgrade. The majority of the respondents
claimed that they were not certain if their banks were regularly upgrading these online
services.

15) The majority claimed that their banks didn't charge unnecessary fees.

16) Out of 60 responses, 43 believed that online banking was better than traditional banking.

17) The major factor responsible for non-accessibility of online banking is lack of knowledge.
According to the majority, that is 25 respondents, it is the people lacking the skills to use these
services that is a major hindrance.
It is closely followed by lack of awareness. According to 23 respondents, it is people being
completely ignorant about these services that is another major hindrance.

18) Internet Security requires the most modification and improvement according to the
majority.
19) The majority rated their overall banking experience as "good ". It is to be noted that there
were 49 responses and none of them rated it as poor.

20) The majority believed that Online-banking helped them to save more money than
traditional banking.

RESPONDENTS WHO DON'T USE ONLINE BANKING SERVICES.

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UPON CLOSER INSPECTION OF INDIVIDUAL QUESTIONAIRE, WE
FOUND THAT:
* There were 15 agriculturists and 5 others. It was the people who were engaged in agriculture
that never used online-banking.
* All 15 agriculturists had SSLC level of education.
* All of them had income in the range of 10,000- 30,000
* All of them were from rural areas.
* Even though they had a bank account, they never made use of any online banking service.
* All of them stated that they never believed in the security of online banking.
* They were always intimidated by the idea of online banking. Some were not aware and those
who were aware lacked the technical skill and knowledge to use such services.
* All 15 agriculturists stated that the bank made no effort to teach them about the uses and
benefits of online banking.
* None of them were certain if the bank was upgrading those services. It was not relevant to
them.
* The agriculturists believed that traditional banking was better than online banking and all of
them preferred traditional banking because they were unfamiliar with and intimidated by
online banking.

MAJOR SUGGESTIONS OF THE STUDY

1) The banks should make more improvements in certain services such as Online Fund
Transfer, ATM, online Fixed Deposit and raise a bit more awareness about Demand Draft
Request.

2) The banks should take more initiatives to make their systems fool-proof, tamper proof and
unbreachable. They should make the level of safety and security of the systems aware to all the
users.
Since, cyber security crimes are on a steep rise, the users must be educated about fraud and
proper methods must be developed and taught to maintain system integrity.

3) At the time of upgradation of system, the banks must explain and make it clear to the users
the level of upgradation and make them familiar with the new and improved features.

4) There is more room for development in improving the overall customer satisfaction.

4) The government and the banks should co-operate and create new initiatives for the
development of online banking facilities in rural areas.

5) The banks must aggressively engage in education campaigns to raise awareness, educate
and provide technical assistance to the users.

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6) Special attention must be given to the marginalised sections of society. Efforts must be
taken to reduce misconceptions about online banking. The procedure, the formalities to be
adhered to and the advantages must be carefully explained to them.

CONCLUSION OF THE STUDY

In the present day and age, online banking has become an indispensable tool for the masses.
Despite this impressive and unprecedented growth, there are small sections of society still
struggling to comprehend the concept and accept the validity of online banking. In a massive
country like India, massive efforts are yet to be taken to eradicate the ignorance and
misconceptions related to e- banking. Massive strides are yet to be taken for financial
inclusion of the marginalised sections of society.
Despite all the technological improvements and advancements in the past few decades, there is
still massive room for development of the present system in terms of efficiency and security.

BIBLIOGRAPHY

www.researchgate.net

En.m.wikipedia.org

www.investopedia.com

www.gobankingrates.com

www.paisabazaar.com

www.creditmantri.com

vikaspedia.in

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ANNEXURE-QUESTIONNAIRE
1.Name:

2.Gender :

❏ Male ❏ Female ❏ Prefer not to say

3.Age :

4.Level of literacy

❏ SSLC
❏ HSC
❏ DIPLOMA
❏ UG
❏ PG
❏ TECHNICAL DEGREE
❏ Other_____________________

5.Occupation :

❏ Agriculture, Food and Natural Resources

❏ Arts, Audio/Video Technology and Communications
❏ Business Management and Administration
❏ Education and Training
❏ Government and Public Administration
❏ Hospitality and Tourism

6.Icome (per month)

❏ Below 10000
❏ 10000 - 15000
❏ 15000 - 20000
❏ Above 20000

7.Resdential Status :

❏ Rural
❏ Semi Urban
❏ Urban
8.What type of device you are using for online banking ?

❏ Mobile phone
❏ Laptop
❏ Personal Computer

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9.How often do you use internet per day ?

❏ One Hour
❏ Two Hour
❏ More than Three Hour

10.In which bank do have an account ?

____________________

11.Do you avail any banking facilities online ?

❏ Yes
❏ No
❏ Maybe

12.How frequently do you use online banking service ?

❏ Daily
❏ Weekly
❏ Monthly
❏ Occasionally

13. Do you believe in the safety of online banking? (yes/no)

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14 Why do you use online banking ?

❏ -Privacy
❏ 24x7 Business Hour
❏ Convenience
❏ To reduce travel
❏ Other_____________

15.Kindly rate the following of your online banking services

NO
EXCELLENT GOOD OPINION AVERAGE POOR

FUND TRANSFER

ATM BANKING

BALANCE ENQUIRY

ONLINE FIXED
DEPOSIT

REQUEST A
DEMAND DRAFT

PAY BILLS

ONLINE SHOPPING

ONLINE RECHARGE

16.Does your bank educate you about the online banking service being offered ?

❏ Yes
❏ No
17 Does your bank upgrade online service regularly ?

❏ Yes
❏ No
❏ Maybe

18.Are you in the opinion that your bank charges unnecessary for online service?

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❏ Yes
❏ No

19.Do you think online banking is better than traditional banking system ?

❏ Yes
❏ No
❏ Maybe

20.Which factor do you think responsible for non - accessibility of online banking by majority of people in your
area ?

❏ Lack of awareness of People

❏ Inadequate ATM Service
❏ Rural Area
❏ Lack of Computer Facility
❏ Less Internet Connection
❏ Lack Knowledge
❏ Other____________________________

21.In your opinion which online operations should be modified promptly for better service in future ?

Check all that apply.

❏ ATM Service
❏ Accounts Service
❏ Fund Transfer
❏ Bill Payment
❏ E-Tax Payment
❏ E-Deposit Market
❏ Investment & demat Service
❏ Loans & Credit Service
❏ Internet Security Service
22 Give your overall rating in online banking service :

❏ Excellent
❏ Very Good
❏ Good
❏ Average
❏ Poor
❏ Hard to Say

23.Does online banking provide more revenue than traditional banking ?

❏ Yes
❏ No ❏ Maybe

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