A COMPARATIVE STUDY

OF E-BANKING IN PUBLIC
& PRIVATE SECTOR
BANKS
(WITH SPECIAL REFERENCE TO SBI & AXIS BANK)
PRESENTED BY:-
DIPAYAN SEAL
PGDM-BIF
 Introduction
 The provision of banking service through electronic
channels and the customer. It can access the data
without time and geographical limitation.

 Combination of the two term Electronic technology

& Banking.

 Process by which a customer performs banking

transactions electronically.
Banking structure in India

RBI

SCHEDULED UNSCHEDULED
BANKS BANKS

COMMERCIAL CO-OPERATIVE
BANKS BANKS

REGIONAL
PUBLIC PRIVATE FOREIGN RURAL BANKS
SECTOR BANKS SECTOR BANKS SECTOR BANKS
(RRBs)
 Development of E-banking
1980s :

• Rapid development of the Internet

• TCP/IP system (communication system)

• E-commerce

May 1995 :

• Wells Fargo - the first bank in the world to offer customer

access to their accounts over the internet .

• Allows customer to see their accounts online

 Development of E-banking
• ICICI was the first bank to initiate the Internet
banking revolution in India as early as 1997 under
the brand name 'Infinity'.
• ICICI Bank kicked off online banking way back in
1996 . But even for the Internet as a whole, 1996 to
1998 marked the adoption phase, while usage
increased only in 1999-due to lower ISP online
charges, increased PC penetration and a tech-
friendly atmosphere.
 E-BANKING
 Online banking, also known as internet banking, e-
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 banking 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 customer verification.
 State Bank of India (SBI) is an Indian multinational, public sector banking
and financial services company.
 It is a government-owned corporation with its headquarters in Mumbai,
Maharashtra.
 SBI is the one of the biggest financial institution with an asset base of $352
billion and $285 billion deposits around the globe. It acquired 20% market
share in deposits and loans among Indian commercial banks.
 According to a report by Forbes, SBI has 29th position in the list of most
reputed company in the world. Also in an annual survey conducted by Brand
Finance and The Economic Times, SBI is the only bank featured in the coveted
“top 10 brands of India” in 2010.
 E-BANKING SERVICES OF SBI
 STATE BANK BUDDY APP
State Bank of India (SBI) introduced an e-wallet named SBI Buddy in August 2016
to promote cashless transactions amongst the citizens of the country. However, few
people paid attention to it or other digital wallets until the day after the announcement
of demonetisation. From November 9, 2016 onwards, Indians realised the necessity of
e-wallets and started downloading them on their smartphones. Some of these apps have
become quite popular since then and one of leading apps people are using regularly is
SBI Buddy.
 Who is eligible for SBI Buddy?
Any Indian citizen above 10 years of age and holding a valid mobile number is eligible
to download and use the SBI Buddy App and its services.
 Do I need to be an SBI customer to use SBI Buddy?
No, you do not need to be an SBI customer to use the SBI Buddy e-wallet. However,
SBI customers do have an advantage over non-customers since SBI offers a “Power Up
Your Wallet” option to them. SBI Account holders can use their SBI debit card or net
banking credentials to have higher transaction limits, up to Rs 1,00,000 in SBI Buddy.
How to make payments using SBI Buddy?
SBI Buddy is like any other prepaid e-wallet that you can use to transfer money to a
registered or new user or make payments while shopping. Since it is a semi-closed
prepaid wallet, you need to “load” your wallet using Net Banking, Credit or Debit
card to use it for payment. You can also pay your bills, book tickets for movies,
recharge your phone, and shop online using SBI Buddy. All you need to do is, enter
the mobile number of the receiver or scan his QR code and enter the amount and
description (reason for payment) to make the payment.
What are the features available in SBI Buddy?
The home screen of the SBI Buddy app has four buttons labeled i.e. Ask Money,
Send Money, Add Money and Recharge & Pay Bills. This gives you easy
accessibility to the major features of the SBI Buddy. Unlike many other e-wallets
where you need to browse to a different page to check your balance, it is visible at
the top of the main screen in the SBI Buddy app.
 SBI FREEDOM APP :
This is the flagship mobile banking app from State Bank of India for both
Smartphone users as well as basic feature phone users. SBI Freedom is a
mobile banking platform for all the bank’s customers. It is a convenient way to
carry out banking operations anytime from anywhere. It is one app that can
perform multiple banking and non-banking operations instantly.
Is SBI Freedom Safe for Banking and Transactions?
SBI Freedom uses the 256-bit AES technology for message encryption. This
means that the information about your bank accounts and messages are
encrypted and sent through secure SBI mobile banking servers. This way the
bank assures that your personal and financial information is not compromised
in any possible way. However, you should make sure that you take precautions
at your own end also. Never share any information such as your account
number or MPIN with anyone. Moreover, act immediately if you lose your
mobile phone.
 How is SBI Buddy different from SBI Freedom and SBI Anywhere?
SBI Buddy is different from SBI Freedom and SBI Anywhere. All of
these apps serve different purposes. SBI Buddy is an e-wallet while SBI
Freedom is a mobile banking app and SBI Anywhere is a mobile app for
internet banking. You cannot link or access your SBI Buddy account to your
bank accounts including SBI. For SBI Freedom app, you have to link your
mobile number to your SBI account and get access to it. If you have Net
Banking services activated on your SBI account, you can use SBI Anywhere to
do internet banking. You do not need to have an account in SBI to use SBI
Buddy. Since SBI Freedom and SBI Anywhere are essentially mobile and
internet banking apps, you need to hold an account in the bank to use them.
SBI Buddy is a secure semi-closed wallet that you can use to do your
daily transactions whether you are purchasing movie, train or plane tickets or
buying groceries. You can also pay your DTH, gas, and electricity bills through
this digital wallet without standing in long queues to wait for your turn or
carrying a large amount of cash on your person. Make sure that you install the
app and upgrade to the latest version whenever a new update is available to
make the best of your SBI Buddy account.
 Axis Bank was the first of the new private banks to have begun operations in 1994, after
the Government of India allowed new private banks to be established.
 The Bank was promoted jointly by the Administrator of the specified undertaking of the
 Unit Trust of India (UTI),
 Life Insurance Corporation of India (LIC) and
 General Insurance Corporation of India (GIC) .
 The Bank today is capitalized to the extent of Rs. 359.76 crores with the public holding
(other than promoters) at 57.79%.
 The Bank's Registered Office is at Ahmadabad and its Central Office is located at Mumbai.
 The Bank has a very wide network of more than 905 branches and Extension Counters.
 The Bank has a network of over 3894 ATMs providing 24 hrs a day banking convenience to
its customers. This is one of the largest ATM networks in the country.
 E-BANKING SERVICES OF AXIS BANK
About Axis Pay:
Introducing Axis Pay! A UPI App for smooth and hassle -free transactions.
Now, send or receive money, pay bills, shop and do a lot more instantly, with a single
Virtual Payment Address (VPA)! A Virtual Payment Address (VPA) is a unique
identifier which you create and link to your bank account to make payments. VPA
can be yourname@axisbank or mobilenumber@axisbank etc which is easy to
remember.
Benefits:
•VPA is all you need for all your transactions
•No need to remember and share sensitive details like account number and IFSC
•Select any of your Axis Bank accounts or any other bank accounts for various
payments
Safe & Secure Payments:
•Axis Pay allows all transactions to be at least 2 Factor Authenticated, making it
completely safe and secure.
•The Unique Pass code as set by you, at the time of registration is required for log-in
to the Axis Pay App.
•All your financial transactions have a daily transaction limit.
E-BANKING SERVICES OF AXIS BANK
 FREECHARGE WALLET APP
Freecharge is one of India’s leading payments app. Consumers can use it for
making postpaid, prepaid, metro recharge, DTH and other utility payments
across the country. The Freecharge wallet was launched in September 2015 and
can be used to make online as well as offline payments including McDonalds,
HomeStop, Shoppers Stop, Cinepolis, Crosswords, Hypercity etc. As
demonetisation has given a major push to the cashless economy of India,
Freecharge also aims to get more merchants from across the country to enhance
its digital payments ecosystem.
Axis Bank Ltd buys FreeCharge from Snapdeal in a Rs 385 crore all cash deal,
strengthening its position in the payments space. Axis Bank CEO Shikha
Sharma said the deal aims at marrying the agility of a fintech company with the
strength of a bank to provide a uniquely distinctive user experience. "The
acquisition of FreeCharge re-affirms Axis Bank's determination to lead the
journey of digitization of financial services. We expect FreeCharge to contribute
significantly in our aspiration to serve the digital native and mobile-first young
consumers of India," said Shikha Sharma, MD & CEO of Axis Bank.
 Axis Bank Buys FreeCharge from Snapdeal
The move gives Axis Bank access to FreeCharge’s 54-million plus customers,
technology, human resources and branding advantage that comes with an early mover.
Critics questioned the rationale of the acquisition, especially since Axis Bank already has
a large presence in the digital space and the capabilities to build its own platform. The
bank has integrated mobile wallet LIME, it offers Unified Payment Interface (UPI)
payments via Axis Pay, and also has a better market position in point of sale terminals,
forex and credit cards.
 Freecharge App Uses :
 All the transactions and payments can be made through your Smartphone, tablet or smart
watch.
 You can use it for making quick purchases and pay or receive payments at online and
offline stores. You don’t even have to enter your bank or card info.
 On the top of that, you receive offers, cashback and discount vouchers every now and
then for making payments using your Freecharge account. There are numerous partner
outlets where you can pay through Freecharge balance and receive big discounts
vouchers, offers and cashback.
CHANNELS IN E-BANKING

 AUTOMATED TELLER MACHINE (ATM)

 TELE-BANKING OR PHONE BANKING

 MOBILE BANKING

 INTERNET BANKING
Advantages of E-banking:
 Benefits for Banks

 Benefits for Small to Medium Businesses

 Benefits for Customers

Benefits for Banks:

 Larger customer coverage
 Reducing the costs of operations
 Promoting their services and products internationally
 Increasing the customer satisfaction and providing a personalized
relationship with customers
Disadvantages OF E-banking

 A need for customer skill to deal with computers and

browsers.
E.g. Elderly, Housewives → Inconvenient

 Site change it will make the customer have some

confusion or delay.

 Security Risk
Conclusion
 E-Banking Enable Better Business Anywhere,
Anytime.
 E-Banking represent a tremendous opportunity in
India.
 However, Factors such as illiteracy in India,
availability of cheaper labor force, reluctance to
change by the existing staff of banks and slow
growth of technology in India are responsible for
slow growth of e-banking in India.