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International Journal of Trend in Scientific Research and Development (IJTSRD)

Volume 3 Issue 6, October 2019 Available Online: www.ijtsrd.com e-ISSN: 2456 – 6470

A Short Review on Consumer Behaviour on

E Banking and Challenges Faced
Devendra Verma
M.com, Bharti Vidyapeeth University, Pune, Maharashtra, India

ABSTRACT How to cite this paper: Devendra Verma

Consumer play a vital role in economic development of a country. Banking is "A Short Review on Consumer Behaviour
life line of an economy. A strong banking system is the need of a develop on E Banking and Challenges Faced"
country for their growth. The IT revolution changes the structure of Indian Published in
banks. These are now modernized and well functioned system. Thus E- International Journal
Banking refers to electronic banking. It means banking through Electronic of Trend in Scientific
medium like telephone banking, mobile banking etc. Research and
(ijtsrd), ISSN: 2456-
The objective of the research is to analyze the growth E-banking system,
6470, Volume-3 | IJTSRD28049
challenges face by E-banking system. Electronic Banking is one of the great
Issue-6, October
achievement of commerce. An E-banking is a conduct of banking electronically
2019, pp.60-62, URL:
it eliminates paper-based transaction. E-Banking can operates through
internets, extranets etc.

Copyright © 2019 by author(s) and

International Journal of Trend in Scientific
Research and Development Journal. This
is an Open Access
article distributed
under the terms of
the Creative Commons Attribution
License (CC BY 4.0)
The use of E-Banking lowered down the banking cost. Today The main objective of literature review is to study the E-
electronic banking is a vital part of modern banking and has Banking, stages faced bay Banks, Banking structure and
been in the process of changing the business from traditional customer satisfaction. Banking in India originated in the last
to modern. It becomes WBC for an organization. Today bank decade of the 18th century. Bank of Hindustan the first bank
operates today in competitive environment. It introduce new established in 1770. Indian banking sector is classified into
opportunities. India is not only world largest democracy but schedule and non-schedule banks.
is also having a huge economic need. India is depend on a
 Schedule bank: -Comes under 2nd schedule of the RBI
strong banking system after it revolution. It took a long
Act 1934
journey for Indian banking system to stabilize and well
functioned with Modern era of technology.  Commercial bank: -Schedule and non-schedule bank
regulated under the banking regulation Act 1949
Internet banking is a system allows the customers to
(Wikipedia/ Indian banking system). After IT revolution
perform. Banking activity from mobile, laptop with different
this system were modernized and become able to many
individual having internet access.
Thus the name indicate that banking through electronic
 STAGES: The Indian banking system has go out
medium. E-banking terms comes after IT revolution in which
through various stages.
a individual access his account and performed his routine
work of banking without going to bank from his home or 1. FOUNDATION STAGE:- This period is of before
office through internet banking, mobile banking. nationalization of banks. A proper frame work of banks
need to established in market. This phase is vital part of
Micro Model Of E-Banking:-
our economy mainly based on macro level.
2. EXAPNSION STAGE:- It is started in middle of 1960s but
it get momentum on after nationalization of banks in
1969 . This stage also known as huge banking stage. In
this stage banks were working for growth in masses and
reached to the people with proper ideas. Various
FIG.01-Model Suggest by (Gordon & Nateajan, 2010) activities took place like creation of RRBs.

@ IJTSRD | Unique Paper ID – IJTSRD28049 | Volume – 3 | Issue – 6 | September - October 2019 Page 60
International Journal of Trend in Scientific Research and Development (IJTSRD) @ www.ijtsrd.com eISSN: 2456-6470
3. Consolidated stage:- Started in 1985.Varios initiatives Internet users in INDIA (million)
were started by RBI. After expansion stage now banks
are focused on customer services and credit
4. Refrom Stage:- After reform policy 1991 the model of
banking change. Government of India appointed high
level of committee (rang rajan committee) to address
the problems and suggest the remedial measures for
banking sector.

 Difference between Traditional and E-banking:-

1. Traditional banking cannot work without physical
visibility to the customer but E-banking work online. SOURCE: - Media sources, Aranca Research FIG.02
Challenges in growth of E-Banking:-
2. Traditional banking consume a lot of time and work
within a given time slot, where E-banking work beyond 1. Security – It is a primary challenges face by bank to
this. introduce E-banking system.
3. Traditional banking had not 24*7 facility, E-banking has 2. Privacy- The need of account privacy is an important
24*7 facility. role for bank to manage E-banking.
4. Customer spends money to visit bank and perform their 3. Consumer awareness – Play important role.
routine work. In E-Banking this drawback reduces.
4. Infrastructure of IT – Above all are primary challenges
5. In traditional Banking, Bank clerk or staff can attend but most important it is infrastructure of IT.
only few customers at time, but due to E-Banking this
facility increase and customer do not have stand in line 5. Availability of internet: - To connect with E-banking
for customer service. there is need of internet. Thus it is a big challenge for
bank to move towards with this problem. Thus
Features of E-Banking:- purchasing power or accessing of internet also effect is
banking system.
 No geographical boundaries barrier.
 Easy electronic fund transfer and payment method. Objective of study:-

 Good efficiency in CRM. 1. To study the status of banking sector in India.

 Risk of money theft reduces. 2. Identify E-banking services.

 Mobile banking with SMS service. 3. Study the barrier faced by E-banking.

 24X7 services available to customer. 4. Awareness towards E-banking.

5. To study the policy and measures by RBI and govt. for E-
Today position of E-Banking in India:- banking in rural area.
The structural and functional change in banking sector
evolves from Economic reform 1991. The Saraf committee Conclusion:
was formed by RBI in 1994 which recommended that the use From above study various important and failure were
of Electronic fund transfer, electronic cleaning service etc. in conclude. The growth rate if E-banking with highly effective
branches. growth rate is symbolism of change of attitude of consumers
towards digitalization of Indian economy. Thus this changing
The main credit goes to ICICI for internet banking growth in behavior of consumer help to make cashless society with
India. It was first bank to introduce E-Banking system in respect to make a strengthen E-banking system in India.
India in 1996. Various step and measurement taken by RBI and govt.
should help the rural area to move towards E-banking
For the growth of E-Banking various initiatives have been system.
taken by RBI and government for smooth acceleration of E-
Banking in India. The new generation has already accepted this system of
digitalization and help to change the concept from standard
Now, various growths were in banking system of India banking to comfort banking. Those bank which gives special
taken place: - attention to promotes e banking services have higher to
1. Banks launch card less withdraw services. attract more customer.
2. Loan from debit card from ATM.
3. Payment wallets launch. [1] www.wikipedia.com
4. Online account opening.
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@ IJTSRD | Unique Paper ID – IJTSRD28049 | Volume – 3 | Issue – 6 | September - October 2019 Page 61
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