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Submitted in partial fulfillment of the requirements of Post Graduate Programme

By Ambar dua 2011-13


IILM Institute for Higher Education Gurgaon


I hereby declare that project work entitled IMPLEMENTATION OF DIGITAL CHANNELS IN ICICI BANK, submitted by me for the summer internship during the post graduate programme to IILM institute of higher education is my own original work and has not been submitted earlier either to the company or to any other Institution for the fulfillment of the requirement for any other course of study. I also declare that no chapter of this manuscript in whole or in part is lifted and incorporated in this report from any earlier/ other work done by me or others.

Signature of company mentor Signature of student: Name of student: ambar dua Date: Place: Name of company mentor: Designation Date: Place:

ACKNOWLEDGEMENT Summer training is a vital part in the fulfillment of management program. Its basic idea is to strenghten the students concept through practical training and makes them acquainted with the corporate world. I did the work as a management intern at ICICI Bank for a period of 2 Months starting from 28th May, 2012. I would like to extend my heartfelt gratitude to my industry mentor Mr. PANKAJ KASTHORI and Mr. NAVNEET GUPTA Senior Manager, for their proper guidance and help throughout the project. Without their support and cooperation I would have failed in my endeavors and targets in summer training. I would also like to thank my mentor M.s rakhi singh, for her constant support and guidance.


Contents Sl. No. I Titles Page No.

Chapter 1
Executive summary Introduction Statement of the Problem Design of study Purpose of the Study Scope of the study Objectives of the Study


Chapter 2
Organization Profile Broad Areas in which it operates The Profile of an Ideal Multi-channel Banking System An Overview of Multi-channel What The Future Holds Development of Distribution Channels


Chapter 3
iMobile Findings& Learning Suggestions Conclusion


Chapter 4

Finance is a life blood of business it is required from the establishment of the business to liquidity or winding up of a business, so financial institutions played a very important role on the operation of the business. In the early days banking business was been confined to receiving of deposits and lending of money. But now a modern banker under take wide variety of functions to assist their customers. They provide various facilities to customers which makes the transaction easy and comfortable. Financial institutions such as banks, financial service companies, insurance companies, securities firms and credit unions have very different ways of reporting financial information. Running a bank is just difficult as analyzing it for investment purposes. Serving the customer in the fast efficient way to meet there demand. In this report I made an effort to know about how the banks serve the customers in the most effective way. What are the various digital channels they come up with to serve the customers. To take the banking needs of the customer to the next level in ICICI Bank .My topic is Implementation of Digital channels in ICICI Bank.Thus, we can say that, Digital channel and innovation in technology will take the banking experience to another level.



ICICI Bank is India's second-largest bank with total assets of Rs. 4,736.47 billion (US$ 93 billion) at March 31, 2012 and profit after tax Rs. 64.65 billion (US$ 1,271 million) for the year ended March 31, 2012. The Bank has a network of 2,757 branches and 9,363 ATMs in India, and has a presence in 19 countries.

ICICI Bank offers a wide range of banking products and financial services to corporate and retail customers through a variety of delivery channels and through its specialised subsidiaries in the areas of investment banking, life and non-life insurance, venture capital and asset management.

The Bank currently has subsidiaries in the United Kingdom, Russia and Canada, branches in United States, Singapore, Bahrain, Hong Kong, Sri Lanka, Qatar and Dubai International Finance Centre and representative offices in United Arab Emirates, China, South Africa, Bangladesh, Thailand, Malaysia and Indonesia. Our UK subsidiary has established branches in Belgium and Germany.

ICICI Bank's equity shares are listed in India on Bombay Stock Exchange and the National Stock Exchange of India Limited and its American Depositary Receipts (ADRs) are listed on the New York Stock Exchange (NYSE).


Title of the project: Implementation of Digital channels in ICICI Bank

Statement of the problem Every Bank is trying to take the help of technology to meet the customers demand.As banking has come up a long way to one touch access to all your banking needs .ICICI who is a leader in Indian Private Banking sector its highly pushing itself for serving the customers better and it come up with a application iMobile in 2008 where customers can meet all the banking needs.

Marketing problem Though its came up with the mobile Banking application in 2008 but its not reached the customers in a effective way so they come up with a team to implement it rapidly and to take the application to customers make them aware about its functionality, make them to install it and experience it real time .

Purpose of the study

It is not an exaggeration to say that digital consumers are like no other. They belong to a generation that is more educated, more technology savvy and better connected socially than any other that came before. If they need information, they will research it on the Internet; if they want advice about a particular purchase, they will ask their social network. Their demands fuel innovation in the technology and communications space, giving rise to new, better products that they cant get enough of. They seek convenience, reach, availability and instant gratification. These expectations have spilt over to their banking activities too. Now, digital consumers want their banks to acknowledge these needs and fulfill them, just like other retail businesses are doing. Banks are responding by delivering their services over a range of digital channels including the mobile and the Internet.

Seamless mobile channelbanking makesbanking convenient for customers as it allows them to transact from anywhere, atany time. Since transactions and data areupdated in real time, customers haveaccess to the latest information irrespectiveof the channel. Integration also providescustomers a single view of all the accountsheld by them at the same bank. Thesefacilities improve customer satisfaction andwith time, loyalty

The scope of the study is limited to sushant lok 1 and the data collected during my Summer internship in ICICI bank .

Objectives TO know How ICICI Bank govern the Various Banking activity. To study the various Digital channels of ICICI Bank To understand the Customer preferences About iMobile To study various technical glitches in the application To determine the awareness of the application with the customers


The Bank operates in three segments: retail banking, wholesale banking and treasury services. The retail banking segment serves retail customers through a branch network and other delivery channels. The wholesale banking provides loans and transaction services to corporate and institutional customers. The treasury services segment undertakes trading operations on the proprietary account, foreign exchange operations and derivatives trading. The Bank operates in India.

Retail Banking This segment raises deposits from customers and makes loans and provides advisory services to such customers. The objective of the Retail Bank is to provide its target market customers a range of financial products and banking services, giving the customer a one-stop window for all his/her banking requirements. The products are backed by service and delivered to the customers through the growing branch network, as well as through alternative delivery channels like automated teller machines (ATMs), phone banking, net banking and mobile banking.

The ICICI Bank Preferred program for high net worth individuals, the ICICI Bank Plus and the Investment Advisory Services programs have been designed keeping in mind needs of customers who seek distinct financial solutions, information and advice on various investment avenues. The Bank also has an array of retail loan products, including auto loans, loans against marketable securities, personal loans and loans for two-wheelers. It is also a

provider of depository participant (DP) services for retail customers, providing customers the facility to hold their investments in electronic form.

ICICI Bank has launched an international debit card in association with VISA (VISA Electron) and also issues the MasterCard Maestro debit card. The Bank launched its credit card business during the fiscal year ended March 31, 2001. By September 30, 2005, the bank had a total card base (debit and credit cards) of 5.2 million cards. The Bank is also engaged in the merchant acquiring business with over 50,000 point-of-sale (POS) terminals for debit/credit cards acceptance at merchant establishments.

Wholesale Banking

, The Bank's target market ranges from large, blue-chip manufacturing companies in the Indian corporate to small and mid-sized corporates and agri-based businesses. For these customers, the Bank provides a range of commercial and transactional banking services, including working capital finance, trade services, transactional services and cash management. The bank is also a provider of structured solutions, which combine cash management services with vendor and distributor finance for facilitating superior supply chain management for its corporate customers. It provides cash management and transactional banking solutions to corporate customers

Treasury Services Within this business, the bank has three main product areas: Foreign Exchange and Derivatives, Local Currency Money Market & Debt Securities, and Equities. Risk management information, advice and product structures, as well as fine pricing on various treasury products are provided through the Bank's Treasury team. The Treasury business is responsible for managing the returns and market risk on this investment portfolio.


Vision To be the preferred financial solutions provider excelling in customer delivery through insight, empowered employees and smart use of technology. Core Values

Customer Centricity Ethics Transparency Teamwork Ownership

PERSONAL BANKING Savings Accounts These Accounts are primarily meant to inculcate a sense of saving for the future, accumulating funds over a period of time. Whatever may be the occupation, bank is confident that customer will find the perfect banking solution. Open an account in your name (customers name) or register for one jointly with a family member today. Current Accounts Now, with an ICICI Bank Current Account, experience the freedom of multi-city banking! Customer can have the power of multi-location access to his account from any of banks 500 branches in 220 cities. Not only that, he can do most of his banking transactions from the comfort of his office or home without stepping out.

At ICICI Bank, it understands that running a business requires time and money, also that customers business needs are constantly evolving. That's where it comes in. It provides him


with a choice of Current Account options to exclusively suit his business - whatever the size or scope.

Fixed Deposits Long-term investments form the chunk of everybody's future plans. An alternative to simply applying for loans, fixed deposits allow the customer to borrow from his own funds for a limited period, thus fulfilling his needs as well as keeping his savings secure. As per the finance (No 2) Act 2004, all fees & charges mentioned in the Tariffs, Charges or Fees Brochures will attract Service Tax @10% & Education Cess @2% of the service tax amount effective 10th September 2004. The same will appear as separate debits in the statements.

PRIVATE BANKING ICICI Bank offers Private Banking services to high net worth individuals and institutions. Banks team of seasoned financial and investment professionals provide objective guidance backed by thorough research and in-depth analysis keeping in mind customers financial goals. Multiple Recognition from Euro money At ICICI Bank, they have always strived towards providing exceptional service to each of their esteemed customers. As testament to this dedication, they have earned the following ranks in a recently conducted Euromoney Survey.


Rated as the best private bank in the super effluent category in India ICICI Bank Investment Advisory Services - Helping you take your Investment portfolio further. Dedicated investment advisor ICICI Private Banking service involves a high degree of personalization. When customer avail of this facility, a dedicated Investment Advisor serves him. This seasoned finance professional adds value to his portfolio by keeping him up to date with financial markets and investment opportunities

MUTUAL FUNDS PRODUCTS SCHEMES Equity fund ICICI growth fund ICICI long term Advantage fund ICICI Index fund ICICI Capital Builder fund ICICI tax saver ICICI top 200 funds ICICI core & satellite fund ICICI premier multi-Cap fund ICICI long term equity fund

Balanced Fund ICICI Childrens gift fund investment plan ICICI childrens gift fund saving plan

ICICI Balanced Fund ICICI Prudence Fund

Debt Fund ICICI Income fund ICICI liquid fund ICICI gift fund short term plan ICICI gift fund long term plan ICICI short term plan ICICI floating rate income fund short term plan ICICI floating rate income fund long term plan ICICI liquid fund- premium plan ICICI liquid fund- premium plus plan ICICI high interest fund ICICI high interest fund short term plan ICICI cash management fund saving plan ICICI cash management fund call plan ICICI MF monthly plan



With ICICI Bank's payment services, one can bid goodbye to queues and paper work. Its range of payment options make it easy for customer to pay for a variety of utilities and services. Verified by visa

If one wants to be worry free for his online purchases. Now he can shop securely online with his existing Visa Debit/Credit card. Net safe

Now shop online without revealing your (customers) ICICI Bank Credit Card number. Prepaid refill

If a person is a ICICI Bank Account holder and a prepaid customer, he can now refill his Prepaid Mobile card with this service.

Bill pay

One can pay his telephone, electricity and mobile phone bills at his convenience. Through the Internet, ATMs, his mobile phone and telephone - with Bill Pay, banks comprehensive bill payments solution Visa Bill Pay

One can pay his utility bills from the comfort of his home! Pay using his ICICI Bank Visa credit card and forget long queue and late payments forever

Insta pay

One can Pay his bills, make donations and subscribe to magazines without going through the hassles of any registration. Direct pay

Shop or Pay bills online without cash or card. Debit your(customers ) account directly with banks Direct Pay service! Smart pay(with credit cards)

With Smart Pay, paying customers electricity, telephone, mobile phone, water bills, gas and insurance premia payments becomes easy like never before.

Visa money transfer

One can transfer funds to any Visa Card (debit or credit) within India at his own convenience through ICICI Bank's Net Banking facility. e-Monies Electronic Funds Transfer

Transfer funds from customers account to any account in any Bank in India at 15 locations FREE of cost! Online payment of excise and service tax

One can make his Excise and Service Tax payments at his own convenience.

ICICI BANK CLASSIC BANKING If a person wants to experience banking beyond the ordinary, our ICICI Bank Classic Programme is just for him. Becoming an ICICI Bank Classic customer entitles him to a host of benefits, including a bouquet of preferentially priced products and specialized wealth management solutions. CORPORATE GOVERNARCE

ICICI Bank recognizes the importance of good corporate governance, which is generally accepted as a key factor in attaining fairness for all stakeholders and achieving organizational efficiency. This Corporate Governance Policy, therefore, is established to provide a direction and framework for managing and monitoring the bank in accordance with the principles of good corporate governance.



It is not an exaggeration to say that digital consumers are like no other. They belong to a generation that is more educated, more technology savvy and better connected socially than any other that came before. If they need information, they will research it on the Internet; if they want advice about a particular purchase, they will ask their social network. Their demands fuel innovation in the technology and communications space, giving rise to new, better products that they cant get enough of. They seek convenience, reach, availability and instant gratification. These expectations have spilt over to their banking activities too. Now, digital consumers want their banks to acknowledge these needs and fulfill them, just like other retail businesses are doing. Banks are responding by delivering their services over a range of digital channels including the mobile and the Internet. Banks in Africa and the Asia record the highest number of average monthly ATM cash withdrawals. In 2009, this figure was 3,914 compared to 1,631 in North America, 2,797 in Western Europe and 2,789 in the Asia Pacific region. In the Asia, Internet penetration is 33.5% which is 3.3% of the worlds Internet penetration. Mobile penetration in the UAE is already in excess of 200% and broadband penetration is expected to reach 100% by 2012. On the African continent, mobile adoption has crossed 50% in 26 nations; South Africa achieved twice that number at the end of lastyear. As a natural progression, this region will surely see high rates of adoption of these mediaas banking channels in the Asia and Africa


With the availability of alternative modes ofbanking, consumers started to use more thanone channel. They went to the ATM to withdrawcash and enquire about their account balance.Then they started to use Internet banking, firstto monitor their accounts, and then to makepayments and transfer funds. At the sametime, they also made visits to the branch. Thiswas the time when consumers banked onmultiple channels. The drawback of this kind of banking was thateach channel was isolated from the other. Datagenerated on one was not visible on another,which meant that if a consumer initiated atransaction at the call center, but resumed it ata branch, he would have to explain the entiresituation all over again to the staff. Banks toolost the opportunity to render efficient service orcross-sell, to these channel siloes.With the integration of channels on a singleplatform, mobile channelbanking became reality.Today, banking is integrated across devices,channels, products, and functions to provideseamless experience to customers across alltouch points. Accordingly, banks have a 360-degree view of customer activity on everychannel at any point of time. Customers enjoysimilar visibility, and are also able to seamlesslytransition from one channel to another, evenduring the course of a single transaction.A recent report by a research firm indicates thatalthough branch investment still tops the listof a banks spending, investment in otherchannels like Internet and mobile banking ison the increase. In Middle East and Africa,spending on online banking channels isexpected to touch US$ 50 million in 2012.Banks stand to gain substantial benefits byinvesting in integrated mobile channelbanking.

Cost reduction

Mobile channel banking helps banks optimize operating costs and resources. For instance ,branch staff engaged in routine operations such as cash disbursement may bedeployed in other, more critical functions .With fewer customers walking in, branches can be smaller, and more cost effective to establish and maintain. Channel integrationreduces data

duplication. Overall, it is estimated that the cost of serving a customer or transaction through Internet and mobile banking is a fraction of that incurred at a branch.

Customer satisfaction Seamless mobile channel banking makes banking convenient for customers as it allows them to transact from anywhere, a tany time. Since transactions and data are updated in real time, customers have access to the latest information irrespective of the channel. Integration also provides customers a single view of all the accounts held by them at the same bank. These facilities improve customer satisfaction and with time, loyalty.

Customer acquisition

Banks with an advanced mobile channel banking system can attract customers of other banks, which are lagging in channel integration. They can also use channels such as mobile banking to make in roads into markets where they have insufficient branch presence.

Revenue enhancement

By providing a unified view of customersand enabling tracking of their channel usage, integrated mobile channelbankingimproves banks cross-selling efficiency to bring them more business from existing customers. By reducing cost per transactionas mentioned earlier, and improving sales,mobile channel banking can make a reasonable impact on banks top and bottom lines.

The Profile of an Ideal Mobile channelBanking System

A mobile channelbanking system should besimple, convenient, affordable and anytimeanywhere accessible, providing a unified view ofcustomers banking relationships for customersas well as for relationship managers. Truemobile channelbanking extends beyond theprovision of banking access over multiplechannels, to add value through:

Superior user experience

Seamless customer experience is theessence of mobile channelbanking. Acustomer should be able to use a banksservice on any of its channels. Also, havinginitiated a transaction, he should be ableto continue it on another channel withoutobstruction. For instance, if he receives anoffer about a new high interest depositon SMS, he should be able to buy intoit using his mobile, but send all thesupporting documentation via the Internetbanking channel.

Personalized banking Todays consumer has a strong sense ofuniqueness that he would like service providers to acknowledge with personalizedproducts and services. He desirespersonalized banking facilities that enablehim to set reminders, quickly access linksandfavorite activities, and choose thechannels on which the bank must sendalerts or initiate contact. Not only that, hemay also want to personalize each channelseparately. Mobile channelbanking must beable to fulfill all these expectations.

Interactivity While customers are happy to conductroutine transactions on self-service channels,they invariably seek human assistancewhen faced with a problem. If ready help isnot available at that time, they may give upthe channel altogether. Banks can preventthis eventuality by making help available tocustomers on every channel, at the touchof a button. This can be achieved with atext chat facility already provided bymany or an audio/video help service, oreven co-browsing, whereby a customercare representative can remotely see thecustomers

desktop and walk him throughthe solution. Whats more, using socialmedia, banks can not only make thesesituations more interactive but also enablea customer to seek assistance from othecustomers who have had similar issues.Superior user experiencePersonalized bankingInteractivity

An Overview of Multi-channel
Security Online banking channels are subject torisks like financial fraud and identity/datatheft. Banks should put in place securecommunication and transaction mechanismsbased on multiple levels of authenticationand careful risk profiling of customers.Research suggests that online banking ismore prone to cyber attack in the Middle Eastthan in other regions, because fraudstersare able to take advantage of customersrelatively low knowledge of secure bankingpractices. Banks in that region must notonly make their channels more secure, butalso use them to spread awareness about safe banking.

Customer intelligence A good mobile channelbanking systemenables customer profiling by providinginsight into transaction and channel usagepatterns. A single view of all accounts heldby a customer, helps customer carerepresentatives across channels sell himthe right kind of products. Banks can alsomake use of their knowledge of a customerspreferred channels to deliver enhanceexperienced over them. Now, web 3.0technology is improving banks customerintelligence further by mining online behaviour and social interactions for deeper insight.


Challenges Facing Mobile channelBanking

Endeavors The advantages of banking aremany but maintaining a full-fledged andintegrated banking system across channels isno cakewalk. Banks have to surmount variouschallenges ranging from setting aside funds tocreating awareness among customers.

Investment Banks have to make a significant investmentin infrastructure and technology for settingup new channels as well as integratingvarious existing banking mediums. They alsohave to integrate the different technologiesbeing used and replace those that impedeseamless mobile channelbanking.

Keeping pace Communication gadgets with enhanced features are launched regularly and customers expect to be able to transact using these new devices. This requires banks to keep pace and rework / upgrade their system son a continuous basis. Security


Every new channel is accompanied by a risk of security breach. Banks have to ensure that their security system is robust and up to date. Failure to do so could lead to a loss of money, customers and reputation.

Regulatory hurdles

Banks might rush to introduce new channels ,only to be obstructed by regulatory hurdles. For instance, a move to leverage social media as a banking channel may fall foul of laws protecting consumer privacy and security.

Creating awareness Older customers, comfortable with branch banking, might not want to shift to other channels; banks will need to educate them about the benefits of doing so. They must also promote the advantages of integrated mobile channel banking to existing and prospective customers to intensify usage of new channels. Mobile channel banking can only improve from here. The advent of new electronic devices will result in additional banking channels .Banks, which currently follow a piece-meal channel strategy, will be forced to overhaul their technology to implement seamless multi-channel banking in order to remain competitive. Availabilityof one view of customer transactions and accounts and the ability to track channel usage will enable cross-selling and up-selling of the right products through the right channel. Banks will also focus on the human touch in selfservice channels by facilitating personal interactions and this would be of utmost importance in ensuringquicker adoption of mobile channelbanking in theMiddle East and African Regions.

Regulatory hurdles Banks might rush to introduce new channels ,only to be obstructed by regulatory hurdles. For instance, a move to leverage social media as a banking channel may fall foul of laws protecting consumer privacy and security.


Creating awareness Older customers, comfortable with branch banking, might not want to shift to other channels; banks will need to educate them about the benefits of doing so. They must also promote the advantages of integrated mobile channel banking to existing and prospective customers to intensify usage of new channels.

What The Future Holds Mobile Banking Mobile channel banking can only improve from here. The advent of new electronic devices will result in additional banking channels.Banks, which currently follow a piece-meal channel strategy, will be forced to overhaul their technology to implement seamless mobile channel banking in order to remain competitive. Availabilityof one view of customer transactions and accounts and the ability to track channel usage will enable cross-selling and up-selling of theright products through the right channel. Banks will also focus on the human touch in self-service channels by facilitating personal interactions and this would be of utmost importance in ensuring quicker adoption of mobile channel banking in the Middle East and African Regions.Non-branch channels like ATMs and mobile banking are already popular in Africa and the Middle East. Now, banks in this region must integrate all their channels under a single platform. Given the many benefits of mobile channel banking, the decision to forgeahead despite various challenges should not be a hard one to make for the customers

SMS banking : SMS Banking service provides instant notification about your transactions as and when it happens. It helps you to keep a watch on your account with a round the clock service. Every debit or credit in your account over a limit desired by you is intimated by SMS. Now, with SMS Banking service, you are always in a position to detect unauthorized access to your account. Additionally, SMS banking also helps you to know your balances and mini statements instantly by just sending an SMS.


Pull messages are those that are initiated by the customer, using a mobile phone, for obtaining information or performing a transaction in the bank account. Examples of pull messages for information include an account balance enquiry, or requests for current information like currency exchange rates and deposit interest rates as published and updated by the bank.

Typical push services would include:

Periodic account balance reporting (say at the end of month); Reporting of salary and other credits to the bank account; Successful or un-successful execution of a standing order. Successful payment of a cheque issued on the account; Insufficient Funds; Large value withdrawals on an account; Large value withdrawals on the ATM or EFTPOS on a debit card; Large value payment on a credit card or out of country activity on a credit card. One time password and authentication

Typical pull services would include:

Account balance enquiry; Mini statement request; Electronic bill payment Transfers between customer's own accounts, like moving money from a savings account to a current account to fund a cheque;

Stop payment instruction on a cheque; Requesting for an ATM card or credit card to be suspended; De-activating a credit or debit card when it is lost or the PIN is known to be compromised;

Foreign currency exchange rates enquiry;



Safety : All transactions above a value desired are intimated to you as and when they happen, so you are always kept updated on your transactions

Convenience : No need to queue in at branch or ATM to check your account. Updates : Get automatic updates on deposits/loan installments due, interest rate changes and new products.

Availability : This service is available from anywhere in the world, even when you are on the move.

Development of Distribution Channels


The major and upcoming channels of distribution in the banking industry, besides branches are ATMs, internet banking, mobile and telephone banking and card based delivery systems. Automatic Teller Machines ATMs were introduced to the Indian banking industry in the early 1990s initiated by foreign banks. Most foreign banks and some private sector players suffered from a serious handicap at that time- lack of a strong branch network. ATM technology was used as a means to partially overcome this handicap by reaching out to the customers at a lower initial and transaction costs and offering hassle free services. Since then, innovations in ATM technology have come a long way and customer receptiveness has also increased manifold. Public sector banks have also now entered the race for expansion of ATM networks. Development of ATM networks is not only leveraged for lowering the transaction costs, but also as an effective marketing channel resource.

Introduction of Biometrics Banks across the country have started the process of setting up ATMs enabled with biometric technology to tap the potential of rural markets. A large proportion of the population in such centers does not adopt technology as fast as the urban centers due to the large scale illiteracy. Development of biometric technology has made the use of self service channels like ATMs viable with respect to the illiterate population. Though expensive to install, the scope of biometrics is expanding rapidly. It provides for better security system, by linking credentials verification to recognition of the face, fingerprints, eyes or voice. Some large banks of the country have taken their first steps towards large scale introduction of biometric ATMs, especially for rural banking. At the industry level, however, this technology is yet to be adopted; the high costs involved largely accounting for the delay in adoption.


Multilingual ATMs Installation of multilingual ATMs has also entered pilot implementation stage for many large banks in the country. This technological innovation is also aimed at the rural banking business believed to have large untapped potential. The language diversity of India has proved to be a major impediment to the active adoption of new technology, restrained by the lack of knowledge of English. Multifunctional ATMs Multifunctional ATMs are yet to be introduced by most banks in India, but have already been recognized as a very effective means to access other banking services. Multifunctional ATMs are equipped to perform other functions, besides dispensing cash and providing account information. Mobile recharges, ticketing, bill payment, and advertising are relatively new areas that are being explored via multifunctional ATMs, which have the potential to become revenue generators for the banks by effecting sales, besides acting as delivery channels. Most of the service additions to the ATM route require specific approval from the regulator. ATM Network Switches ATM switches are used to connect the ATMs to the accounting platforms of the respective banks. In order to connect the ATM networks of different banks, apex level switches are required that connect the various switches of individual banks. Through this technology, ATM cards of one bank can be used at the ATMs of other banks, facilitating better customer convenience. Under the current mechanism, banks owning the ATM charge a fee for allowing the customers of some other bank to access its ATM.


Among the various ATM network switches are CashTree, BANCS, Cashnet Mitr and National Financial Switch. Most ATM switches are also linked to Visa or MasterCard gateways. In order to reduce the cost of operation for banks, IDRBT, which administers the National Financial Switch, has waived the switching fee with effect from December 3, 2007. Internet Banking Internet banking in India began taking roots only from the early 2000s. Internet banking services are offered in three levels. The first level is of a banks informational website, wherein only queries are handled; the second level includes Simple Transactional Websites, which enables customers to give instructions, online applications and balance enquiries. Under Simple Transactional Websites, no fund based transactions are allowed to be conducted. Internet banking in India has reached level three, offering Fully Transactional Websites, which allow for fund transfers and various value added services. Internet banking poses high operational, security and legal risks. This has restrained the development of internet banking in India. The guidelines governing internet banking operations in India covers a number of technological, security related and legal issues to be addressed in relation to internet banking. According to the earlier guidelines, all internet banking services had to be denominated in local currency, but now, even foreign exchange services, for the permitted underlying transactions, can be offered through internet banking. Internet banking can be offered only by banks licensed and supervised in India, having a physical presence in India. Overseas branches of Indian banks are allowed to undertake internet banking only after satisfying the host supervisor in addition to the home supervisor. Phone Banking and Mobile Banking Phone and mobile banking are a fairly recent phenomenon for the Indian banking industry. There exist operative guidelines and restrictions on the type and quantum of transactions that can be undertaken via this route. Phone banking channels function through an Interactive Voice Response System (IVRS) or tele banking executives of the banks. The transactions are limited to balance enquiries, transaction enquiries, stop payment instructions on cheques and funds transfers of small amounts (per transaction limit of Rs 2500, overall cap of Rs 5000 per day per customer). According to the draft guidelines on mobile banking, only banks which


are licensed and supervised in India and have a physical presence in India are allowed to offer mobile banking services. Besides, only rupee based services can be offered. Mobile banking services are to be restricted to bank account and credit card account holders which are KYC and AMC compliant. With the rapidly growing mobile penetration in the country, mobile banking has the potential to become a mass banking channel, with very minimum investment required by the banks. However, more security issues need to be addressed before banking can be conducted more freely via this channel. Card Based Delivery Systems Among the card based delivery mechanisms for various banking services, are credit cards, debit cards, smart cards etc. These have been immensely successful in India since their launch. Penetration of these card based systems have increased manifold over the past decade. Aided by expanding ATM networks and Point of Sale (POS) terminals, banks have been able to increase the transition of customers towards these channels, thereby reducing their costs too. Payment and Settlement Systems The innovations in technology and communication infrastructure in recent years have impacted banks in a large way through the development of payment and settlement systems, which are central to the major portion of the businesses of banks. In order to strengthen the institutional framework for the payment and settlement systems in the country, the RBI constituted, in 2005, a Board for Regulation and Supervision of Payment and Settlement Systems (BPSS) as a Committee of its Central Board. The BPSS now lays down policies relating to the regulation and supervision of all types of payment and settlement systems, sets standards for existing and future systems, approves criteria for authorisation of payment and settlement systems, and determines criteria for membership to these systems, including continuation, termination and rejection of membership. Thereafter, the government and the RBI felt the need for a legal framework dedicated to the efficient functioning of the payment and settlement systems. The Payment and Settlement Systems Act was passed in December 2007, which empowered the RBI to regulate and supervise the


payment and settlement systems and provided a legal basis for multilateral netting and settlement. Important technological innovations in payment and settlement systems introduced by the RBI in recent years are discussed here. Paper Based Clearing Systems Among the most important improvement in paper based clearing systems was the introduction of MICR technology in the mid 1980s. Though improvements continued to be made in MICR enabled instruments, the major transition is expected now, with the implementation of the Cheque Truncation System for the processing of cheques. Cheque Truncation System (CTS) Truncation is the process of stopping the movement of the physical cheque which is to be truncated at some point en-route to the drawee branch and an electronic image of the cheque would be sent to the drawee branch along with the relevant information like the MICR fields, date of presentation, presenting banks etc. Thus, the CTS reduces the probability of frauds, reconciliation problems, logistics problems and the cost of collection. The cheque truncation system was launched on a pilot basis in the National Capital Region of New Delhi on February 1, 2008, with the participation of 10 banks. The main advantage of the cheque truncation system is that it obviates the physical presentation of the cheque to the clearing house. Instead, the electronic image of the cheque would be required to be sent to the clearing house. This would provide a more cost-effective mode of settlement than manual and MICR clearing, enabling realization of cheques on the same day. Amendments have already been made in the NI Act to give legal recognition to the electronic image of the truncated cheque, providing for a sound legal framework for the introduction of CTS. Currently the effort is on increasing the processing efficiency with respect to paper based transactions, and as far as possible, to reduce the burden on paper based clearing. Through the introduction of advanced electronic funds transfer mechanisms, the RBI has been successful in diverting a large portion of paper based transactions to the electronic route. Electronic Clearing Service

The Electronic Clearing Service (ECS) introduced by the RBI in 1995, is akin to the Automated Clearing House system that is operational in certain other countries like the US. ECS has two variants- ECS debit clearing and ECS credit clearing service. ECS credit clearing operates on the principle of single debit multiple credits and is used for transactions like payment of salary, dividend, pension, interest etc. ECS debit clearing service operates on the principle of single credit multiple debits and is used by utility service providers for collection of electricity bills, telephone bills and other charges and also by banks for collections of principal and interest repayments. Settlement under ECS is undertaken on T+1 basis. Any ECS user can undertake the transactions by registering themselves with an approved clearing house. Operating from 74 different locations, ECS handles an average of 20 million transactions per month. It enables easy payments and collections for repetitive and bulk transactions. ECS takes off a lot of burden of paper work from the banks, enabling smooth flow of transactions. The volume of electronic transactions has increased at an annual average growth rate of 32.1% during FY05-FY09. The use of ECS (credit) and ECS (debit), in particular, has witnessed substantial growth in the last few years. The RBI has recently launched the National Electronic Clearing Service (NECS), in September 2008, which is an improvement over the ECS currently operational. Under NECS, all transactions shall be processed at a centralized location called the National Clearing Cell, located in Mumbai, as against the ECS, where processing is currently done at 74 different locations. ECS system has a decentralised functioning, and requires users to prepare separate set of ECS data centre-wise. Users are required to tie-up with local sponsor banks for presenting ECS file to each ECS Centre. As on September 2008, 25000 branches of 50 banks participate in the NECS. Leveraging on the core banking system, NECS is expected to bring more efficiency into the system. Electronic Funds Transfer Systems The launch of the electronic funds transfer mechanisms began with the Electronic Funds Transfer (EFT) System. The EFT System was operationalised in 1995 covering 15 centres where the Reserve Bank managed the clearing houses.


Special EFT (SEFT) scheme, a variant of the EFT system, was introduced with effect from April 1, 2003, in order to increase the coverage of the scheme and to provide for quicker funds transfers. SEFT was made available across branches of banks that were computerised and connected via a network enabling transfer of electronic messages to the receiving branch in a straight through manner (STP processing). In the case of EFT, all branches of banks in the 15 locations were part of the scheme, whether they are networked or not. A new variant of the EFT called the National EFT (NEFT) was decided to implemented (November 2005) so as to broad base the facilities of EFT. This was a nation wide retail electronic funds transfer mechanism between the networked branches of banks. NEFT provided for integration with the Structured Financial Messaging Solution (SFMS) of the Indian Financial Network (INFINET). The NEFT uses SFMS for EFT message creation and transmission from the branch to the banks gateway and to the NEFT Centre, thereby considerably enhancing the security in the transfer of funds. While RTGS is a real time gross settlement funds transfer product, NEFT is a deferred net settlement funds transfer product. As the NEFT system stabilized over time, the number of settlements in NEFT was increased from the initial two to six. NEFT now provides six settlement cycles a day and enables funds transfer to the beneficiaries account on T+0 basis, bringing it closer to real time settlement. The commencement of NEFT led to discontinuation of SEFT, and EFT is now available only for government payments. With the SFMS facility, branches can participate in both the RTGS and the NEFT System. It is envisioned that all the RTGSenabled bank branches would be NEFT-enabled too, so that the customer would have a choice between RTGS or NEFT, based on time urgency, value of the transaction and different charges applicable on the two systems. Using the NEFT infrastructure, a one-way remittance facility from India to Nepal has also been implemented by the RBI since 15th May 2008. In order to increase the coverage of NEFT to a wider section of bank customers in semi-urban and rural areas, an enhancement of the NEFT called the NEFT-X [National EFT (Extended)] is also proposed for phase wise implementation. This would facilitate non-networked branches of banks to transfer funds electronically by accessing NEFT-enabled branches for transfer of funds. NEFT (Extended) would work on a T+1 basis and would ensure wide rural coverage of the electronic funds transfer system. RTGS

The other payment and settlement systems deployed were mostly aimed at small value repetitive transactions, largely for the retail transactions. The introduction of RTGS in 2004 was instrumental in the development of infrastructure for Systemically Important Payment Systems (SIPS). The payment system in India largely followed a deferred net settlement regime, which meant that the net amount was settled between banks on a deferred basis. This posed significant settlement risks.RTGS was launched by RBI, which enabled a real time settlement on a gross basis. To ensure that RTGS system is used only for large value transactions and retail transactions take an alternate channel of electronic funds transfer, a minimum threshold of one lakh rupees was prescribed for customer transactions under RTGS on January 1, 2007. RTGS minimizes systemic risks too, in addition to settlement risks, as paper based funds settlement through the Interbank clearing are replaced by the electronic, credit transfer based RTGS system. High systemic risks are posed by high value interbank transfers, so, it is considered desirable that all major interbank transfers among commercial banks having accounts with RBI be routed only through the RTGS system. The RTGS system had a membership of 107 participants (96 banks, 8 primary dealers, the Reserve Bank and the Deposit Insurance, Credit Guarantee Corporation and Clearing Corporation of India Ltd.) as at end-August 2009. The reach and utilisation of the RTGS has witnessed a sustained increase since its introduction in 2004. The bank/branch network coverage of the RTGS system increased to 58,720 branches at more than 10,000 centres facilitating the increased usage of this mode of funds transfer. Technology Vendors Many Indian banks handled technological issues in house till the late 1990s. Thereafter, the complications of the business necessitated the engagement of specialized vendors to handle complex issues. Due to the complexities involved, most banks now prefer to engage IT vendors to introduce specialized softwares to help in their risk management systems, retail and corporate banking, card management systems, complete back office support including data management systems.


iMobile offers a wide variety of features to make banking convenient.

It gives you instant access to your: - Savings Account - Credit Card - Demat Account - Loan Accounts It can be used to: - Transfer Funds - Make bill payments - Prepaid mobile recharge - Access account information - Know your Cheque status & more


Mobile Banking (iMobile) iMobile is ICICI Bank's mobile banking application. Easy, convenient and secure to use, iMobile lets you transfer funds, pay bills, book travel or movie tickets, rechrge your prepaid mobile and DTH, locate an ATM, and a do lot more while you are on the go. iMobile is the mobile banking application that works with most smartphone models, GSM and CDMA handsets. iMobile is a banking application that can be downloaded on your mobile phone and can be used to conduct any banking operations/ transactions on your ICICI bank accounts directly from your mobile phone. With iMobile you can access account information, transfer funds, pay utility & phone bills, recharge prepaid mobile number etc. You can access your Savings, Credit card, Demat and Loan accounts. iMobile also has the benefit of mobile shopping which allows you to recharge your prepaid mobile number and book your movie tickets.

This next generation iMobile application is your key to a faster, easier and simplified banking service. iMobile is a downloadable application that you can store directly on your phone to gain quicker access. All your transactions via iMobile are safe and secure as they use a 4 digit PIN that is set by you. iMobile also has the ability to log off automatically if you are busy on a call or your phone battery runs out.

With iMobile you can access account information, transfer funds, pay utility & phone bills, recharge prepaid mobile number etc. You can access your Savings, Credit card, Demat and Loan accounts. iMobile also gives the benefit of mobile shopping which allows you to recharge your prepaid mobile number and book your movie tickets. It can be used on both GSM and CDMA connection by using both GPRS and SMS channel. iMobile is a quick, easy and convenient way to bank that allows you to conduct almost all banking activity directly through your mobile phone and at the touch of a button. iMobile is compatible with more than 600 GSM and CDMA handsets and is flexible to work with both GPRS and SMS channels

iMobile offers a wide variety of features to make banking convenient.


It gives you instant access to your: - Savings Account - Credit Card - Demat Account - Loan Accounts It can be used to: - Transfer Funds - Make bill payments - Prepaid mobile recharge - Access account information - Know your Cheque status & more


Riding on the same platform of Internet banking has actually created the impact as customer prefer to use internet banking itself instead of using iMobile. Customer not ready to use iMobile as they say they are using internet banking. People in the age group of 20 to 35 are showing interest in the application May constraints such as people dont have a GPRS connection, Mobile dont support the application Especially not supported in many models of LG & Samsung Customer usually not willing to spend more than one minute \ In a day only 20 % of the people will listen to me in that only 5% of the people will be interested in downloading the application Awareness program are not diversified as even in the place where I m allotted to pitch the customers I found that HDFC Bank has displayed the message of mobile banking in the ATM display



Corporate experience as I was allotted to the ATM at sushant lok 1 Handling of customers queries and requests Awareness about banking products Knowledge about digital channel Various tech savvy people and their behavior iMobile banking and various uses of it marketing of services

Limitation This study is restricted only to Huda market sec-56 Gurgaon. So, the results may not be applicable to other areas. This study is based on the prevailing customers preference. But the customers preference may change according to time, fashion, technology, development, etc. The respondents at most times are not available The respondents are corporate employees. The finding and suggestion is done only on the basis of verbal communication with the customer


Application can be made to be supported in all mobile models of mobile manufactures.


Application can be signed to get more activation as it show the message of the application is untrusted whether you want to install it reduces the changes of the customer installing it so If the Bank sign the application it can increase the usage of the application .

Can bring more posters regarding iMobile that can be placed in the ATM centers Can reduce the tedious procedure to install the application

Making employess are asking about the ICICI credit card .Demand is there for the bank credit card which they can utilize and benefit on it on the demand.

Conclusion iMobile is the future of the banking needs as now ATM became a necessary part of banking nowadays. In future the mobile banking will also be essential as people cant carry the laptop to wherever they go but mobile are so handy it can be carried by people easily which will be a one stop destination to all the banking needs of the customer. Moreover it provide additional services which will make using the application in every days activity. .

References http://www.icicibank.com/mobilebanking/imobile.html?utm_source=icici&utm_medium=mb525&utm_campaign=lhs-imobile


http://www.online.citibank.co.in/products-services/online-services/citi-alert-ondemand.htm http://en.wikipedia.org/wiki/SMS_banking http://www.icicibank.com/ebor/other-products/phonebanking/index.html http://www.accenture.com/us-en/pages/insight-boosting-relevance-returnsdigital-channel-banking.aspx http://dl.acm.org/citation.cfm?id=1552229 http://en.wikipedia.org/wiki/History_of_banking http://www.perfectsen.com/retail-banking-evolution-a-need-for-retail-banks-toconstantly-keep-up-with-customers-technology/291/ http://www.dnb.co.in/bfsisectorinindia/BankC6.asp