Project Report

“Detail study of E-Banking and its Risks”

Submitted to:
DMSR
G.S. College of Commerce and Economics, Nagpur
(An Autonomous Institution)

In partial fulfilment for the award of the degree of

Master of Business Administration

Submitted by:
SAKSHI S. RAUT

Under the Guidance of:

Dr. KAMLESH THOTE

Department of Management Sciences and Research,

G.S. College of Commerce & Economics, Nagpur
NAAC Accredited “A” Grade Institution

Academic Year 2022-2023

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 Department of Management Sciences and Research,
G.S. College of Commerce & Economics, Nagpur
NAAC Accredited “A” Grade Institution

Academic Year 2022-2023

CERTIFICATE

This is to certify that SAKSHI S. RAUT has submitted the projectreport

titled, DETAILS STUDY OF E-BANKING AND ITS RISK towards the
partial fulfilment of MASTER OF BUSINESS ADMINISTRATION
degree examination. This has not been submitted for any other examination
and does not form part of any other course undergone by the candidate.

It is further certified that he has ingeniously completed his project as

prescribed by DMSR, G. S. College of Commerce and Economics,
Nagpur, (NAAC Reaccredited "A" Grade Autonomous Institution)
affiliated to Rashtrasant Tukadoji Maharaj Nagpur University,
Nagpur.

Dr. KAMLESH THOTE Dr. SONALI GADEKAR

(Project Guide) (Co-ordinator)

Place: Nagpur
Date:

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 Department of Management Sciences and Research,
G.S. College of Commerce & Economics, Nagpur
NAAC Accredited “A” Grade Institution

Academic Year 2022-2023

DECLARATION

I here-by declare that the project with title “DETAILS STUDY OF E-

BANKING AND ITS RISK” has been completed by main partial
fulfilment of MASTER OF BUSINESS ADMINISTRATION degree
examination as prescribed by DMSR, G. S. College of Commerce and
Economics, Nagpur, (NAAC Reaccredited "A" Grade Autonomous
Institution) affiliated to Rashtrasant Tukadoji Maharaj Nagpur University,
Nagpur and this has not been submitted for any other examination and does
not form the part of any other course undertaken by me.

SAKSHI S. RAUT

Place: Nagpur
Date:

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 Department of Management Sciences and Research,
G.S. College of Commerce & Economics, Nagpur
NAAC Accredited “A” Grade Institution

Academic Year 2022-2023

ACKNOWLEDGEMENT
With immense pride and sense of gratitude, I take this golden opportunity
to express my sincere regards to Dr. Swati Kathaley, Principal, G.S.
College of Commerce & Economics, Nagpur.

I am extremely thankful to my Project Guide Dr. Kamlesh Thote for him

guidance throughout the project. I tender my sincere regards to the
Coordinator, Dr. Sonali Gadekar for giving me guidance, suggestions and
invaluable encouragement which helped me in the completion of the
project.

I will fail in my duty if I do not thank the Non-Teaching staff of the college
for their Co-operation.

I would like to thank all those who helped me in making this project
complete and successful.

SAKSHI S. RAUT
Place: Nagpur
Date:

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 INDEX

Declaration ....................................................................................... 1
Acknowledgement ...................................................................................... 2
Chapter 1 ............................................................................................... 6
1.1 Introduction ................................................................................ 6

Chapter 2 .............................................................................................. 18
Review of Literature .................................................................................. 18
Chapter 3 .............................................................................................. 22
Research Methodology ......................................................................... 22

Chapter 4 ............................................................................................... 25
Data Analysis and Interpretation ........................................................... 25
Chapter 5 ............................................................................................... 40
Case Study Of ICICI Bank .................................................................... 40
Chapter 6 ................................................................................................ 47
Findings ....................................................................................... 47
Suggestion and Recommendation ..........................................................48
Conclusion ............................................................................................ 49
Bibliography ............................................................................................. 50

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CHAPTER 1

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 INTRODUCTION

1.1 INTRODUCTION

Now a day’s information technology plays a vital role in banki ng sector.

Day by day increasing change in technology world, it leads to improve E-Banking
services of various banks. In banking industry in the past, large queues could be
observed for payment utility bills or for cash withdrawals/deposits. The banks are
succeeded to reduce this queue through uses of latest technology, but still busy
common people are demanding less time methods for banki ng transactions. In this
regard, banks are going utilize internet facility for customer’s transactions. This
method will reduce paper work, and will give quick response to customer while they
remain in their office or at home. It provides various advantages to customers of
various banks. Now a days people are educated more than older days, today human
lives become machine oriented and they don’t have enough time to visit bank branch
than even before.

E-Banking means providing banking products and services through

electronic delivery channels like ATM, internet banking, telephone banking and other
electronic delivery channels. Internet banking highly useful to the customer one who
have computer with internet connection, they need not visit bank branch for their
business transactions. Simply they can transact anywhere, anytime if they have
internet connection.by dialing the telebanking number customer can get various
facilities like cheque book request, balance enquiry etc…E-Banking includes the
system that enables the financial institution customers, individual or business, to
access accounts, transact business, or obtain information on financial products and
services through a public or private network, including the internet. Customers access
E- Banking services using an intelligent electronic device, such as personal computer
(PC), automated teller machine (ATM), kiosk or mobile phone.

Electronic banking is a high-order construct, which consists of several distribution

channels. It should be noted that electronic banking is a bigger platform than just
banking via the internet. The term electronic banking can be described in many ways.
In a very simple form, it can mean the provision of information or services by a bank
to its customers, via a computer, television, telephone, or mobile phone (Daniel, 1999).
Electronic banki ng has different types of delivery channels: telephone, PC, mobile
and the internet. Moreover, Personal Computer allow customer to use all E-Banking
facility at home without go to bank. It gives customers a variety of services so they
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can move money between accounts, pay bills, check balances, and buy and sell
mutual funds, securities and also submit electronic loan applications through PC Banki
ng. A mobile banking service is the newest service in electronic banking Customers
can check their balance and make adjustments between accounts, account transactions,
payments etc. Internet is the interconnection of computer communication networks
which enable the customer to perform all the banking acti vities over the internet.it is
the latest wave in the information technology. The NET is changing everything, from
the way of conduct commerce and the way of distribution of information. Several
benefits of strong electronic service have also been identified as including satisfied
and retained customers, attraction of new customers, development of customer
relationships, increased sales and market shares, enhanced corporate image, reduced
costs and increased profit margins and business performance.
The main advantage regarding E-Banking is that is availability 24 hours a
day and 7 days a week. Customer’s perception and life style plays important role in
growth of E-Banking system.
The fact is that the customers are even not usi ng all of E-Banking products
and services offered by the bank. So there arise the necessity for the study of
customer’s awareness and perception towards E-Banking services.

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1.2 ELECTRONIC BANKING

Meaning

E-banking also known as internet banking, online banking or virtual 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. To access a financial institution’s online facility, a customer with
internet access would need to register with the institution for the service, and set up a
password and other credentials for the verification. For other E-banking facilities,
necessary procedures are to be done according to banker’s instructions. For the use of
ATM facility, the card must be availed. There are two ways to offer Internet banking.
First, an existing bank with physical offices can establish a web site and offer Internet
banking in addition to its traditional delivery channels. Second, a bank may be
established as a “branch less, Internet only, or virtual bank” without any physical
branch.

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 1.3 IMPORTANCE OF E- BANKING IN THE PRESENT INDIA

E-banking is information technology based banking. Under this system, the

banking Services are delivered by a computer-controlled system. In India, E-banking
is of fairly recent origin. In this fast moving technological world, every human activity
is transforming to technology based, and the human life style also changed with this a
lot of. So, a speed and convenient system is necessary in the banking sector also. Here
comes the use and effectiveness of e- banking with the present world’s requirements. E
-banking ensures 24 hours of service to its customers. The cost of transactions and
effort for the access is negligibly small compared to the traditional banking system.
The Indian government has put a reasonable care to this system and announced various
programs and schemes like Digital India, Jan dhan yojana, Adhar linking with bank
accounts, cashless economy initiatives etc. It is hopeful that Indian banking sector is
fairly mature and also they are trying to make innovations in this sector. The shops
keepers are very willing to install the POS swiping facility to simplify the money
transactions with customers and dealers.

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1.4 TOOLS AND SERVICES OF E-BANKING

1.4.1 TOOLS OF E- BANKING

• Automated Teller Machine

The Automated Teller Machines are computerized telecommunication device

that provides financial institutions customers a method of financial transactions in a
public space without the need for a human clerk or bank teller. These are meant for
balance enquiries, cash withdrawals and many other facilities depending upon policies
of the bank. This requires a valid Customer Id and password to log in and is therefore
safe to be used.

• Debit Card

Debit Cards is another advanced technology of the electronic banking. Now-

a- days, these cards are the multi-purpose cards and can be used in ATMs for balance
enquiry and cash withdrawal or can be used for easy shopping at various counters.
Debit Cards ensure the automatic deduction of amount from the account just by
scratching it on the machine.

• Credit Card

A credit card system is a type of retail transaction settlement and credit

system, named after the small plastic card issued to users of the system. In the case of
credit cards, the issuer lends money to the consumer. Credit cards become very
popular in India with the introduction of foreign banks in the country.

• Smart Card

A Smart card is a plastic card used for storing and retrieving personal information.
Normally, it is the size of a credit card and contains electronic memory and possibly an
embedded integrated circuit.

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1.4.2 E-BANKING SERVICES

• Online Bill Payment Service

Each bank has tie - ups with various utility companies, service providers and
insurance companies, across the country. You can facilitate payment of electricity and
telephone bills, mobile phone and insurance premium bills. To pay your bills, all you
need to do is complete a simple one-time registration for each biller. You can also set
up standing instructions online to pay your recurring bills, automatically. Generally,
the bank does not charge customers for online bill payment.

• Fund Transfer

You can transfer any amount from one account to another of the same or any
another bank. Customers can send money anywhere in India. Once you login to your
account, you need to mention the payee’s account number, his bank and the branch.
The transfer will take place in a day or so, whereas in a traditional method, it
takes about three working days

1.5 Types of E-Banking

• Internet banking

Internet banking is the use of internet as a delivery channel for the banking
services, including traditional services, such as opening an account, or transferring
funds among different accounts, as well as new banking services such as electronic bill
presentment and payment, which allow the customers to pay and receive the bills on a
bank's web site. There are two ways to offer internet banking. First, an existing bank
with physical offices can establish a web site and offer internet banking in addition to
its traditional delivery channels. Second, a bank may be established as a 'branchless','
Internet only', or 'virtual' bank. The Reserve Bank of India constituted a working group
on Internet Banking.

• Mobile banking
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 Mobile banking is a service provided by a bank or other financial institution
that allows its customers to conduct financial transactions remotely using a mobile
device such as a smart phone or tablet .it uses software, usually called app, provided
by the financial institution for the purpose. It is available on a 24 hour basis.

• SMS banking

It is a form of mobile banking. It is a facility used by some banks or other

financial institutions to send messages (also called notifications or alerts) to Customers
mobile phones using SMS messaging, or a service provided by them which enables
customers to perform some financial transactions using SMS.

• Telephone banking

Telephone banking is one of the most popular banking .it is a service

provided by a bank or other financial institution, that enables customers to perform a
range of financial transactions over the telephone, without the need to visit a bank
branch or ATM . it cannot be used for cash documents (such as Cheques ) for which
customers must visit an ATM or bank branch.

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 Risk of E- Banking

What are the Major Risks for Banks?

Major risks for banks include credit, operational, market, and liquidity risk.
Since banks are exposed to a variety of risks, they have well-constructed risk management
infrastructures and are required to follow government regulations. Government agencies,
such as the Office of Superintendent of Financial Institutions (OSFI) in Canada, set the
regulations to counteract risks and protect depositors.

Why Do the Risks for Banks Matter?

Due to the large size of some banks, overexposure to risk can cause bank failure and
impact millions of people. By understanding the risks posed to banks, governments can
set better regulations to encourage prudent management and decision-making.

The ability of a bank to manage risk also affects investors’ decisions. Even if a bank can
generate large revenues, lack of risk management can lower profits due to losses on loans.
Value investors are more likely to invest in a bank that is able to provide profits and is not
at an excessive risk of losing money.

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 Types Of Risks

Credit Risk
Credit risk is the biggest risk for banks. It occurs when borrowers or counterparties fail
tomeet contractual obligations. An example is when borrowers default on an principle
or interest payment of a loan. Defaults can occur on mortgages, credit cards, and fixed
income securities. Failure to meet obligational contracts can also occur in areas such as
derivative s and guarantees provided.

Operational Risk

Operational risk is the risk of loss due to errors, interruptions, or damages caused by
people, systems, or processes. The operational type of risk is low for simple business
operations such as retail banking and asset management, and higher for operations such
assales and trading. Losses that occur due to human error include internal fraud or
mistakes made during transactions. An example is when a teller accidentally gives an
extra $50 billto a customer.

Market Risk

Market risk mostly occurs from a bank’s activities in capital markets. It is due to the
unpredictability of equity markets, commodity prices, interest rates, and credit spreads.
Banks are more exposed if they are heavily involved in investing in capital markets
or sales and trading.

Liquidity Risk

Liquidity risk refers to the ability of a bank to access cash to meet funding obligations.
Obligations include allowing customers to take out their deposits. The inability to provide
cash in a timely manner to customers can result in a snowball effect. If a bank delays
providing cash for a few of their customer for a day, other depositors may rush to take out
their deposits as they lose confidence in the bank. This further lowers the bank’s ability to
provide funds and leads to a bank run.

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1.8 SCOPE OF THE STUDY

1. Today the customer demands the bank’s services for 24 hours.

2. Now in the modern age entire banking structure has been changed due to
widespread internet technology.

3. Now all businesses like commerce, trade, import, export, purchase and sale of
goods is relying upon electronic banking by using advanced electronic
technology the banking services are fast and economical.

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1.9 OBJECTIVES OF THE STUDY

1. To identify the awareness of E-Banking services.

2. To know the perception towards E-Banking services.

3. To study various services of E-Banking.

4. To understand various problems faced by consumers while using

E-Banking services.

5. To obtain suggestions for the improvement of E-Banking services.

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 Hypothesis

H0 : There is no equal preference of the various e-banking services among ICICI Bank.

H1: There is equal preference of the various e-banking services among ICICI Bank.

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1.10 LIMITATIONS

1. The study is limited to Nagpur alone.

2. Accuracy of data depends upon the information’s provided by the respondent

Respondents were reluctant to respond.

3. Incomplete information from the respondents.

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CHAPTER 2

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 Chapter 2

REVIEW OF LITERATURE

2.1 REVIEW OF LITERATURE

A Few studies had been made which were indirectly helpful to this
investigation. Reviews of such studies are presented below:

P. S. PATEL ( 2009) found that Customers perceive the quality of services of

Internet banking based on the performance of online delivery systems – not on the
processes in which the delivered service is developed and produced. Because
customers perceive Internet banking service quality based on relatively standardized
outcomes determined by online systems.

PARESH (2010) Conducted the study to know; what are the customer's
perceptions about internet banking and what are the drivers that drive consumers.
How consumers have accepted internet banking and how to improve the usage rate.
The study revealed that education, gender, income plays an important role in
usage of internet banking. . The research states that if skills can be upgraded there will
be greater will to use internet banking by consumers.

Janeetal (2014) Stated that Online banki ng requires perhaps the most
consumer involvement, as it requires the consumer to maintain and regularly interact
with additional technology (a computer and an Internet connection).

Suraj soni (2016) Investigated that the majority of customers in the sample
are satisfied or very satisfied with the service and online systems attributes. It appears
that companies that offer a wide product portfolio and relevant website content
accompanied by prompt and courteous response create satisfaction online.

Srivastva (2016) Found that (1) perceived risk with online shopping, (2) past
experience with online shopping, (3) perceived benefits of online shopping, (4)
perceived ease of online shopping, and (5) percei ved\ uncertai nty of online shopping
are the factors that affect the customer perception regarding E-banking.

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 Kesseven (2017) Said that the mostly used E-Banking services are inter
account transfer, payment to other personal account, transfer to credit card account,
recharge mobile phones among others. Comparing demographic variables of the
internet banking users to the non-internet banking users, the analysis reveals that there
is no significant difference between the two group of users with respect to age group
and the education level of the respondents.

Sayar et. All (2017) Discussed that the developments in information

technology and the subsequent evolution of internet banki ng have fundamentally
changed the ways in which banks implement their business and consumers conduct
their everyday banking activities. The results confirm the influence of internet trust on
risk perception and consumer attitudes towards internet banking. Propensity to trust is
a determinant not only for interpersonal relationships but also for trust in technological
systems. This is not a representative study.

Srinivasan (2007) Investigated that in specified region of Karnataka, channel

convenience, channel control and channel security plays an important role in the
selection of channels. Some regions still see people who are struck to branch banking
and are not ready for a change in mindset. Across Telebanki ng was not popular since
it was not perceived as a safe and convenient channel.

Uppal R.K (2007) The study concludes that the customers of e banks are
satisfied with the different e-channels and their services in the spread of e banking
services.

Vardhman (2007) Said Online Banki ng - The Need of the Modern

Professional- Internet Banking has been so popular in the countries it has been
implemented in so far due to certain reasons. Online Banking makes the regular
transactions for a client

Safeena (2010) Determined the consumer attitude on internet banki ng

adoption. Finding shows that perceived usefulness, percei ved ease of use, consumer
awareness and perceived risk are the important determinants of online banki ng
adoption and have strong and positi ve effect on customers to accept the online
banking system.

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 Rao, K. Rama Mohana and Lakew, Tekeste Berhanu (2011) Examines the
service quality perceptions of customers of public sector and private sector banks in
the city of Visakhapatnam, India. The author reveals that the Reliability and Assurance
dimensions of service quality scored the highest ratings while the Tangibles dimension
got the lowest score. Moreover, the study found a strong dissimilarity in service
quality perceptions between customers of private sector and public sector banks.

Uppal, R.K (2011) Threw light on growth of information technology in

various banks. The objecti ve of this research is to analyze the extent of technological
developments in various bank groups. Findings shows as compared to ne w private
sector banks and foreign banks, in public sector banks very less IT has taken place.
The maximum technology is taking place in new generation private sector banks and
foreign.

Dharma lingam, S. Anand Kannan. V. (2012) Evaluated the service quality

in retail banking in the Tamil Nadu, based on different levels of customers’ perception
regarding service quality. Data are collected from Three Private Banks, i.e. IC IC I,
AXIS and HDFC Bank. The result indicates that customers’ perception is highest in
the tangibles area and lowest in the Product Variety area.

Bahl, Sarita, (2013) Determined that security and privacy issues are the big
issue in e-banking. If security and privacy issues resolved, the future of electronic
banki ng can be very prosperous.

Dr. Shamsher Singh (2014) Researched on customer perception of e-

banking. This paper has examined the adoption and impact of e-banking among the
customers of different banks. The banks in India are racing to use this latest
technology to reduce speedy and time efficient with little or no paperwork involved.
There is no need for standing in long ques any more for making a deposit or getting a
withdrawal. Banking has turned into a 24/7 service with the bank always available to
their client their operational costs and increase customer base. E-banki ng is a term
used for performing balance checks, account transactions, payments etc.

R. Elavarasi, Dr. S. T. Surulivel (2014) Examined that mean age of e-

banking users were mostly men as compared to women. The major finding is that there
is an increasing change in technology world and it leads to improve e- banki ng
services in various banks.

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 Sunil Kumar (2015) Has done a study on consumer awareness and usage of
e - banking services. The result of this research was found to be that, the consumers
are not frequently using these services but they have strong desire to use these services
in future. The present study is being undertaken to analyze how the banks have been
exploring the feasibility of using mobile phones as an alternative channel of delivery
of banking services.

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CHAPTER 3

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 CHAPTER 3 RESEARCH METHODOLOGY

A research methodology is an approach to systematically take care of the

examination issue. It might be comprehended as a learn about concentrating on how
lookup is done deductively. In it, we study the one-of-a-kind advances that are
frequently obtained through a professional in deliberating his examination issue
alongside the intent behind them. The scientist needs to be aware of the exploration
strategies/systems yet, besides, the technique.

At the factor when we discuss check out philosophy we discussion of the

exploration techniques as properly as reflecting on consideration on the reason in the
back of the strategies we use with regards to our examination contemplate and clarify
why we are utilizing a unique strategy or machine or why we are now not using others
so inquire about effects are geared up for being assessed either through the specialist.

● MEANING OF RESEARCH
Redan & Moy think research as a "systematized exertion to select up
information." Few people think that research as the development, the development
starting at the known to the unclear or less visible. It is virtually a journey of
revelation. All of us have the critical impulse to learn more about something when the
difficult to understand went against us, we wonder and to learn more makes nourished
and obtain full and greater full ability to understand something of the blurred facts.
curiosity is the god of all statistics & the technique, which people make use of for
getting the data on anything the less clear facts, can be named as research.

Research is a scholarly motion and as such the period should be well used
from a specialized perspective. Research carries description and again thinking issues,
defining hypothesis or proposed collecting, cleaning out and getting knowledge or
information; making logical and arriving at the outcome, and eventually seriously
examining the edge to think and decide if they healthy the analyzing hypothesis. The
constraint of situation, ideas or snapshots to adding up to expand, address or verify
information, no matter if that information helps in improvement of speculation or by
using and employing of a craftsmanship.

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TYPES OF RESEARCH

● EXPLORATORY RESEARCH
Exploratory research is sort of research conducting the Problem which hasn’t
been clearly defined. It determine best research design, data collection method and
selection of subjects. It has to attain findings purpose simply with caution. This
Research, again and again, relies upon on elective research, For eg, checking on
handwriting & moreover information/subjective-methodologies, for eg, normal
conversations with customers, labours, the executives or employee, and an increasing
number of formal-methodologies via up to the down meeting, middle gathering,
project strategies, contextual- analysis. The Internet takes into account to appear into
techniques, which are increasingly high sensible in nature.

● DESCRIPTIVE RESEARCH
Descriptive lookup comprises overviews and fact discovering enquiries of
more than a few types. The sizeable motive for expressive lookup is the personation of
the scenario as it subsists at present. In business enquire that we oftentimes use context
Ex post facto inspect for elucidating studies contemplates. The essential trait of this
type of approach is that the analyst has no impact on the factors; analysts can simply
file whatever has passed off or what is going on. Most of the ex post facto inquire
about undertakings used for the spellbinding investigations where the scientist appears
to quantify few things like, re-occurrences of shopping, disposition of individuals, or
different information that can be compared. This also contain enterprise utilizing
analysts to discover motives in any event, whenever they are not in command to
control the factors. The techniques for investigating used in such research find out
about methods for distinct types, which include relative and correlational strategies.

My Research is Exploratory as well as Descriptive.

Sources Of Data

There are two kinds of sources of statistics collection:-

● Primary data : Data that has been gathered from the direct journey is regarded as
integral information. Essential facts have not been dispensed at this factor and are
regularly reliable, authentic and target based. Important facts have not been modified
via people, as a result, its authenticity is more remarkable than secondary information.
Techniques for gathering indispensable records are polls, interviews, perception,
overviews.

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● Secondary Data: Data gathered from a supply that has just been distributed in
any shape is known as elective information. The survey of writing in any exploration
relies upon optional dataMethods of gathering Such data are web, books, papers,
magazines, diaries and different similar periodicals.

In this investigation, Techniques for the data gathered used in this study are:

▪ Primary Data : Questionnaire approach (poll comprising of 10 inquiries)

and Observation method. (For Questionnaire See ANNEXURE A)
▪ Secondary Data: Internet, Magazines and Newspapers.

SAMPLING DESIGN

In the hypothesis of constrained populace examining, an inspecting

configuration suggests for each conceivable example its probability of being drawn.
Numerically, a testing configuration is signified by way of the capacity which gives
the possibility of drawing an example

Sample Size
● around 100 People were given the surveys to find out the examination.

Sample Area
● Delhi/NCR area has been utilized for gathering the trying outsize.

Testing Instrument
● The questionnaire has been utilized as a trying out the instrument for gathering

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CHAPTER 4

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 CHAPTER-4

DATA ANALYSIS AND INTERPRETATION

4.1 Introduction

This chapter deals with the data analysis and interpretation. Data had
been collected using questionnaire. Questionnaire had been distributed
to random people. Sample had been collected using convenient
sampling technique. All the 50 respondents are selected at random.

This chapter is an attempt to analyze the response of people using

internet banking. This study also helps to find out the perception of
customers towards internet banking.

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Table 4.1: Showing age wise classification

Age Percentage Count

21-31 years 36 18
31-40 years 50 25
41-50 years 10 5
51 years and above 4 2
Source: primary data

The above table shows 36% of the respondents are from the age group 21
-31 years, 50% of them are between 31-40 years, 10% are in between 41-
50 years category and only 4% of them are included in the 51 years and
above category

Fig 4.1 Showing age wise classification

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 Table 4.2: Showing education

Education Percentage Count

Under graduate 48 24
graduate 30 15
PG 12 6
Professional 10 5
Source: primary data

Above table shows 48% of the respondents are under graduates, 30% of
them are graduate, 12% of them are pg and 10% of them are
professionals.

Fig 4.2 Showing educational classification

professional

pg

graduate

under graduate

0 10 20 30 40 50 60

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Table 4.3: Showing occupation

Occupation Percentage count

Private employee 22 11
Government employee 18 9
Self employed 34 17
student 26 13

Source: primary data

Above table shows 22% of the respondents are private employee, 18% of
the them are government employee, 34% of them are self-employed,
26% of them are students

Fig 4.3 Showing occupation

35

30

25

20

15

10

private employee govt employee self employed student

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Table 4.4: Showing the percentage of internet bank users

Options Percentage Count

Yes 100 50
No 0 0
Source primary data

The above table shows that all the respondents are internet banking
service users

Fig 4.4 Showing the percentage of internet bank users

100

90

80

70

60

50

40

30

20

10

0 yes no

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4.5 Table showing the banks preferred by customers

Banks Percentage Count

ICICI 10 5
SBI 30 15
HDFC 20 10
Other 40 20
Source: primary data

The above table shows 10% of the population are customers to ICICI
bank, 30% of SBI, 20% of HDFC and 40% of other banks

Fig 4.5 Showing banks preferred by customers

40

35

30

25

20

15

10

ICICI SBI HD FC OTH ERS

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Table4.6: Table showing the reason for choosing the particular bank

Options Percentage Count

Service is good 44 22
They provide security 16 8
Cheaper service charge 22 11
Brand name of the bank 18 9
Source: primary data

The above table shows the reason for choosing the particular banks by
respondents, 44% have opted for better service, 16% for better security,
22% for cheaper service charge and 18% for the brand name of the bank

Fig 4.6 Showing the reason for choosing the particular bank

36 | P a g e
Table 4.7: Showing the type of account customers hold in the bank
Type Percentage Count
savings 84 42
Loan account 2 1
Fixed account 6 3
Current account 8 4
Source: primary data

The above table shows the type of bank accounts held by customers .it
shows 84% of the customers hold savings account, 2% loan accounts,
6% fixed account and 8% current account

Fig 4.7 Showing the type of account held by customers

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 Table 4.8: Showing the awareness of internet banking service
Options Percentage Count
Yes 90 45
No 10 5
Source: primary data

The above table shows the awareness level of the customers on the
various banking services offered online. 90% of them are aware of
various services, 10% of them are not aware

Fig 4.8 Showing the awareness of internet banking service

90

80

70

60

50

40

30

20

10

PERCENTAGE

YES NO

38 | P a g e
Table 4.9: Showing the frequency of use of internet banking service

Frequency Percentage Count

Daily 22 11
Weekly 26 13
Monthly 50 25
fortnightly 2 1
Source: primary data

The above table shows the frequency of use of online services. 22% of
them are daily users, 26% use it weekly, 50% avail service monthly and
the remaining 2% avail fortnightly

Fig 4.9 Showing frequency of use of internet bankingservice

39 | P a g e
 Table 4.10: Showing the preference of customers using E- banking
Options Percentage Count
Good service 68 34
Cost charges 18 9
People reference 6 3
Other 8 4
Source: primary data

This table shows the preference of the people using internet banking,
as we can see 68% of them prefer good service, 18% prefer reduced cost
charges, 6% prefer people reference and 8% have other preferences

Fig 4.10 Showing customer’s preference

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 Table 4.11 Type of E- banking service used by customers

OPTIONS PERCENTAGE COUNT

Transfer funds online 36 18
Online purchase and 56 28
payment
Regular checking of 4 2
bank statement
Apply for consumer loans 2 1

others 2 1

Source: primary data

The above table shows type of online services used by customers, 36%
use it for online fund transfer, 56% use it for online purchase,4% for
statement check and 2% for applying consumer loans and 2% for others.

Fig 4.11 Type of E-banking services used by customers

60

50

40

30

20

10

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Table 4.12: What is the most important reason for opting E-banking?

Options Percentage count

Convenience 58 29
Saves time 32 16
Safe and secure 10 5
Source: primary data

The above table shows the important reasons of customers to opt internet banking,
majority of them use it for better convenience, 32% of them use it for saving time and
10% use it for a safer transaction

Fig 4.12 Showing what is the most important reason for E-banking

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 Table 4.13: Showing customers thought on safety of online
transaction

Options Percentage Count

Very much 18 9
much 60 30
some 16 8
Not at all 6 3
Source: primary data

The above table shows the customers thought on safety of online banking,
majority have voted for much, 18% for very much 16% for some and
6% for not at all

Fig 4.13 Showing customers thought on safety of online transaction

not at all

some

much

very much

0 10 20 30 40 50 60

43 | P a g e
Table 4.14Showing the degree of confidence of customers on online

Options Percentage Count

Very much 14 7
Much 64 32
Some 18 9
Not at all 4 2
Source: primary data

Above table shows the degree of confidence of customers on

online banking majority have voted for much, 14% have voted for
very much, 18% for some and 4% for not all

Fig 4.14 Showing degree of confidence of customers

44
CHAPTER 5

45
 CASE STUDY OF ICICI BANK
Introduction :- The full form of ICICI is Industrial Credit and Investment
Corporation of India. It was ICICI Bank’s parent organisation which had been
incorporated in 2002 with ICICI Bank. ICICI was renamed as ICICI bank just
after integration, so it is now branded as ICICI Bank. It has its headquarters in
Mumbai, Maharashtra, India and operates in 17 nations across the globe. In
2014, it was India’s second-largest investment bank and third-biggest market
capitalization bank.

History of ICICI :-

In 1955, ICICI was established. ICICI joined the financial sector in 1994
through the establishment of ICICI Bank as its financial branch.
In 1998, ICICI Bank became the first bank in India to begin internet banking.
It was the first Indian bank to be mentioned on the New York Stock exchange
in 1999.
ICICI purchased the Bank of Madura (2001) which was founded in 1943.
The backward merger parent company into ICICI Bank subsidiary was
accepted in 2002 by bank directors.
ICICI Bank launched its branches in Canada, the UK and Singapore in 2003. It
also set up representative bank branches in Dubai & Shanghai.
In 2004, it established an office in Bangladesh for involving in the wide
banking industry of Bangladesh and South Africa.
ICICI Bank purchased a Russian subsidiary IKB (Investitsionno-Kreditny
Bank), in 2005 and named it ICICI Bank Eurasia. It also set up a branch in
Hong Kong & Dubai in the same year.
It set up a branch in Belgium, Antwerp and representative offices in Jakarta,
Bangkok and Kuala Lumpur in 2006.
Sangli Bank, which has 158 subsidiaries in Maharashtra and 31 branches in
Karnataka, was established in 2007.
In 2008, it transformed its New York branch into a branch of ICICI Bank with
the approval of the US Federal Reserve. It opened an office in Frankfurt in the
same year.
It was the first private-sector bank to open a mobile branch in Maharashtra
with an ATM in 2013.
In March 2020, ICICI Bank Ltd.’s board approved a Rs 1,000 crore investment
in Yes Bank Ltd. This investment led to ICICI Bank Limited owning more
than five per cent of Yes Bank’s shareholding.

46
 Features Of ICICI Bank

Credit-Cards

It is a card used to make payments for the purchasing services, products, goods
or households item etc. Basically credit card is issued to customer and the
customer has the cash limit in it. And whenever the customer makes a purchase
via card that means he took a credit from the bank and has to return the amount
which he took from the bank including extra charges.

In simple words we can credit card a payment card which helps user take
credit from the bank to make purchase. We can say it’s a like small loan
which has to be returned to bank every month at the agreed date including all
the relevant charges. When bank issues a credit card to a customer a revolving
account is created by the bank.

Adding more to it, credit card is very different from debit cards. Debit card is
customers own money he has in his savings account but credit card is more
like loan which he returns every month including interest or charges

47
respectively.
Bank is also very particular about issuing credit cards to its customers.
Banks review all the history and credit scores of the customer and also
checks whether he’s not a defaulter because if customer doesn’t pay back
the money it would be a loss for the bank. Features of credit card:
1.) No need to carry cash when you

have credit card. 2.) Can also pay in

foreign currency

3.) Cash withdrawals can be costly because extra

charges are included. 4.) Service tax is inclusive

5.) Bonus points

48
 Debit-Cards

Debit cards are also called check cards sometimes and looks similar and
identical to credit cards but debit cards is completely different from credit
cards. As we discussed earlier that credit cards are the cards are used to take
credit from the bank and has to be returned to bank accordingly. But whereas
on the other hand debit card or check cards are totally different. Debit card are
issued to all the savings account holder these days. In the case of debit card
money you spend or withdraw is your own money saved in your savings
account.

Like for example, your salary is transferred directly to your savings account
so that you can withdraw it through debit card anytime anywhere any how
Via ATM.

Let’s highlight some of the features of debit card:-

 Connected to your savings account

 Spending of cash depends on the availability of the cash in a/c

 Zero interest or extra charges since it’s your own money

 Access to cash VIA ATM

 Sometimes can be beneficial. Includes cash back or rewards

49
E- Cheques

“E-CHEQUES” are the electronic cheques which doesn’t require any kind of
paper or physical touch. These types of cheques are used for transaction for
E-commerce related activities and are totally done through devices like
computer, tabs etc. Echeques are written by account holder or payer and
electronically transmits to payee. Signed by payer and payee endorses it.

HEQUES are useful when the payer and payee both have
geographical dilemma and cant physically meet each other but due
to business related issues has to make transactions. Like for
example, in import and export business e-cheques are commonly
used since sometimes buyers are in America and sellers are in India.

Let’s highlight some of the major features of e-cheques.

 E-cheques are identical to paper cheques. It’s like a picture of paper

cheque.

 It’s a secured type of check and can be only digitally signed by the
authenticated user.

 Some times has biometric signatures.

 Drawer needs to digitally sign.

 Minimum asymmetrical crypto systems are prescribed.

 Reduces geographical barriers.

 Can be used anywhere, anytime and anyhow.

50
Automatic Teller Machine (Atm)

Automatic teller machine or we can say ATM is a cash withdrawal machine

which is located around the cities to make cash withdrawals, deposits etc
easy for their customers. ATM are the electronic telecommunication system
which helps their customer to do bank related activities like fund transfer,
cash withdrawal, deposits at their near ATM’S whithout even physically
going to bank.

Credit, debit cards are inserted into to ATMS to make it function and then
ATMS shows the balance of your respected account on the screen and also
shows the menu which you’d like to choose at that moment.

ATMS reduces the efforts of their customer and are the effective service
provided to their customers.

51
Smart Cards

Smart cards are the cards made up of plastic which has an embedded 8bit microchip.
Microchips are the replacement of magnet strips which were earlier fixed to cards for
the transaction purposes.

Microchip is enforces the data on the chip which is connected to account of the user
.Suppose smart card is inserted into transaction machine while making a purchase the chip
connects to account of the user and then deducts the amount which has to be paid for the
purchase that he has made. It is also used for encryption, authentication etc.

Basically, smart card can exchange the data, store it and manipulate data
anywhere, anytime and anyhow.

Features of smart cards

 It’s a card which contains a chip and has a value in it. Sometimes monetary
value.

 When a transaction is made using the card, the cash is deducted

automatically from the account of the person whose making a purchase.

 Can be used to purchase products or goods without the need of the pin

 It an extremely effective card which can act like debit or credit card.

52
Fig 1.1.6 Smat Card
CHAPTER 6

53
 FINDINGS

Major :-

It is found that majority of the respondents are aware about E-Banking services
provided by the BANK. But only some of the respondents are using these
services. Major findings are;

1. ATM is the most preferred E-Banking service to the respondents.

2. 80% of the respondents are using savings bank deposit of the bank.

o 47% of the people are started to using E-Banki ng services from more than 3
year. This is because most of the people are using at least ATM facility
provided by the bank.

3. Majority of the respondents are aware the E-Banking services from their
friends and relatives.

4. 87% of respondents are aware about recharging service provided by the

bank.50 % of the respondents is more familiar with EFT.

5. 39% of respondents using E-Banking service in often.

Minor :-

1. Only some respondents are using internet banking and mobile banking
facility. Most of them aware about mobile banking and internet banking even
though they are not using such facilities.

2. 90% of the respondents have the opinion the most influencing factor is
that it is easily accessible.

3. The limiting factors faced by consumers while operating E-Banking

services are fear about security and networking problem.

4. The opinion about E-Banking services by the respondents is 24 hours

service, and trust in technology.

5. The educational qualification and level of awareness of E-Banking

services are dependent. Because they can know more about E-Banking
services.

54
 SUGGESTIONS

Suggestions from the study

1. Bank should give awareness to their customers to use more of E-Banking

services.

2. Motivate the customers to use E-Banking services.

3. Make the site more users friendly.

4. Create a trust in the minds of consumers towards the security issues.

55
 Conclusion

This study was conducted to know about the impact of internet banking services
on customers and their satisfaction towards the services offered with reference
to Thrissur town. It is clear from this study that all the respondents are users of
internet banking services. There are a wide variety of banking services offered
online and all the respondents are users of one or the other service.

56
Bibilography

Electronic Banking : The altimate gide to business and technology of e-

banking .

E-banking Management : issue solution and strategies

E-Banking in India : challenges and opportunities

57
 Annexure
Impact of electronic banking on customers

1.Name of the respondent

2. Age
• 21-31 years
• 31-40 years
• 41-50 years
• 51 years and above

3. Education
• Under graduate
• Graduate
• Post graduate
• professional

4. occupation
• government employee
• private employee
• self employed
• student

5. do you use internet banking

• yes
• no

6. choose the bank you preferred

• ICICI
• SBI
• HDFC
• OTHERS

7. Why this bank?

• Service is good
• The provide security
• Cheaper service charge
• Brand name of the bank

58
8. Which type of account you have in this particular bank?
• savings account
• loan account
• fixed account
• current account

9. While opening the account were u aware of E-banking services?

• yes
• No

10. How often do you use E-banking services

• Daily
• Weekly
• Monthly
• Fortnightly

11. What do you prefer while choosing E-banking services

• good service
• cost charges
• people references
• other

12. which type of E-banking service do you use

• transfer funds online
• online purchase and payment
• regular checking of bank statement
• apply for consumer loans

13. what is the most important reason for opting E-banking

• convenience
• saves time
• safe and secure
• others

14. Are transactions through internet secure?

• Very much
• Much
• Some
• Not at all

59