Transforming Live, Inventing Future

A Project Report On
E-BANKING
By Jagwinder Singh (94972346298)
for the fulfillment of the requirements of the BCA program of Punjab Technical University Under the guidance of Mr. Harmanjit Singh Kanwar

DEPARTMENT OF COMPUTER SCIENCE

PUNJAB COLLEGE OF TECHNICAL EDUCATION,BADDOWAL

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(2009-2012)

Acknowledgement
I would like to express my gratitude to all those who gave me the possibility to complete this project. I would like express my guide Mr. Manjeet Singh and in particular, I would like to thank Dr. Kang (Director of Punjab College of Technical Education) for giving us such a friendly and suitable environment to study, discuss and develop new ideas. I am also thankful to my faculty guide Mr. Harmanjit Singh Kanwar for continuous guidance. In the end, I express our gratitude to my friend who inspired me in this work without their inspirations the work were almost impossible.

Signature

Jagwinder Singh (94972346298)

Declaration
I am Jagwinder Singh this project report is my original work and have not been submitted in any form as a part of any other project. Information derived from the published and unpublished work of other has been acknowledgement in the list references in given in the bibliography.

Jagwinder Singh (94972346298)

Bibliography
Book:-

E-banking in India Banking service operation (ICFAI) Indian Banking Money & Banking

Links Visited
www.google.com www.icici.com www.hdfc.com www.wikipedia.com

Table Contents
Introduction6 Observation of study..8 Plastic Cards ...10 Objective of study.13 Limitation of study.13 Methodology..14 Questionnaire....15 Data analysis20 Findings26 Conclusion...27

Introduction
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E-banking:Internet banking (or E-banking) means any user with a personal computer and a browser can get connected to his bank -s website to perform any of the virtual banking functions. In internet banking system the bank has a centralized database that is web-enabled. All the services that the bank has permitted on the internet are displayed in menu. Any service can be selected and further interaction is dictated by the nature of service. Once the branch offices of bank are interconnected through terrestrial or satellite links, there would be no physical identity for any branch. It would a borderless entity permitting anytime, anywhere and anyhow banking. The delivery channels include direct dialup connections, private networks, public networks, etc. with the popularity of computers, easy access to Internet and World Wide Web (WWW), Internet is increasingly used by banks as a channel for receiving instructions and delivering their products and services to their customers. This form of banking is generally referred to as Internet Banking, although the range of products and services offered by different banks vary widely both in their content and sophistication.

Meaning of E-Banking
E-bank is the electronic bank that provides the financial service for the individual client by means of Internet.
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Need of study

To know the customers perception toward the E-banking service.

I am interested in E-BANKING that I am taken this topic.

Benefits of study
1) Organizing Educational Campaign To Create Goodwill Of Company.

2)

Services It Effectively valuable to Create Place in the Minds of Customer.

3)

Availability should be increased by using various services Strategy.

4)

Company should make service equal to or better than Competitive Brands By All Means.

Observation of study
DEFINITION OF E-BANKING

For this booklet, e-banking is defined as the automated delivery of new and traditional banking products and services directly to customers through electronic, interactive communication channels. E-banking includes the systems that enable financial institution customers, individuals or businesses, 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 a personal computer (PC), personal digital assistant (PDA), automated teller machine (ATM), kiosk, or Touch Tone telephone. While the risks and controls are similar for the various e-banking access channels, this booklet focuses specifically on Internet-based services due to the Internets widely accessible public network. Accordingly, this booklet begins with a discussion of the two primary types of Internet websites: informational and transactional.

E-BANKING SUPPORT SERVICES

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WEBLINKING A large number of financial institutions maintains sites on the World Wide Web. Some websites are strictly informational, while others also offer customers the ability to perform financial transactions, such as paying bills or transferring funds between accounts. WIRELESS E-BANKING Wireless banking is a delivery channel that can extend the reach and enhance the convenience of Internet banking products and services. Wireless banking occurs when customers access a financial institution's network(s) using cellular phones, pagers, and personal digital assistants (or similar devices) through telecommunication companies wireless networks. Wireless banking services in the United States typically supplement a financial institution's e-banking products and services. Person-to-Person Payments Electronic person-to-person payments, also known as e-mail money, permit consumers to send money to any person or business with an e-mail address. Under this scenario, a consumer electronically instructs the person-to-person payment service to transfer funds to another individual. The payment service then sends an e-mail notifying the individual that the funds are available and informs him or her of the methods available to access the funds including requesting a check, transferring the funds to an account at an insured financial institution, or retransmitting the funds to someone else. Person-to-person payments are typically funded by credit card charges transfer from the consumers account at a financial institution. Since neither the payee nor the payer in the transaction has to have an account with the payment service, such services may be offered by an insured financial institution, but are frequently offered by other businesses as well.
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Banking Services through Internet: The Basic Level Service is the banks web sites which disseminate information on different products and services offered to customers and members of public in general. It may receive and reply to customers queries through e-mail. In the next level are Simple Transactional Web sites which allows customers to submit their instructions, applications for different services, queries in their account balances, etc. but do not permit any fund-based transactions on their accounts.

The third level of Internet banking service are offered by Fully Transactional Web sites which allow the customers to operate on their accounts for transfer of funds, payment of different bills, subscribing to other products of the bank and to transact purchase and sale of securities, etc. The above forms of Internet banking service the customer or by new banks, who deliver banking service primarily through Internet or other electronic delivery channels as the value added services. Some of these banks are known as Virtual banks or Internet only banks and may not have physical presence in a country despite offering different banking services.

Plastic Cards
Media for Payment: -

There are four types of plastic cards being used as media for making payments. These are:
1. Credit Card 2. Debit Card 3. Smart Card
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4. ATM Card 1. Credit Cards: The credit card enables the cardholders to: Purchase any item like clothes, jewellery, railway/air tickets, etc. Pay bills for dining in a restaurant or boarding and lodging in hotel Avail of any service like car rental, etc. 2. Debit Cards: A debit card is issued on payment of a specified amount by the issuing company like a telephone company to a customer on cash payment or on debiting his account by a bank. Thus it is like an electronic purse, which can be read and debited by the required amount. It may be noted that while through a credit card, the customer first makes a purchase or avails service and pays later on, but for getting the debit card, a customer has to first pay the due amount and then make a purchase or avail the service. For this reason, debit card are not as popular as credit cards.

3. Smart Cards: Smart Cards have a built-in microcomputer chip, which can be used for storing and processing information. For example, a person can have a smart card from a bank with the specified amount stored electronically on it. As he goes on making transactions with the help of the card, the balance keeps on
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reducing electronically. When the specified amount is utilized by the customer, he can approach the bank to get his card validated for a further specified amount. Such cards are used for paying small amounts like telephone calls, petrol bills, etc.

4. ATM Cards: The card contains a PIN (Personal Identification Number) which is selected by the customer or conveyed to the customer and enables him to withdraw cash up to the transaction limit for the day. He can also deposit cash or cheque.

USE OF E-BANKING IN INDIA FEOM LAST FEW YEARS Year Incr. % 2002 9 2003 12 2004 15 2005 20 2006 25 2007 32 2008 40 2009 50

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Finding In 2002-2009 the user of the E-banking is increase in more in every year.

Objective of study

Find the customer satisfaction relating to E-banking service. To study the awareness of internet banking among the customers of ICICI and HDFC banks.

Limitation of Study

Banks are not giving me all information about E-banking services.

They do not permit to meet any of the employees in their bank.

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Data collection
Primary Data: In this research with a sample size of nearly 20 customers data will be available in form of questionnaire collected in terms of different questions influencing the use of internet banking. Internet banking is considered as dependent on awareness among customers which will be studied with help of different independent variable. Only the customers of HDFC & ICICI bank are taken as samples for study. Secondary data: Collection of information from different kind of books the data of the company what they maintained.

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Methodology
Once the findings are finalized by a research, suggestions should be made for the betterment of enterprise. The data collected from questionnaire will be tabulated and analyzed so that The result can be presented as simple as possible. There are a number of ways like o Pie-chart o Graphs

Questionnaire:Name of the respondent: Age: Sex: Occupation: Contact no:

--------------------------------------------------------------------------------Q1 Do you have a bank account? Yes No Q2 Do you like E-banking?

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 Yes No Q 3 In which bank do you prefer to have an account? ICICI HDFC SBI AXIS BANK ANY OTHER BANK _________ Q 4 Why this bank? Service is good They provide security Cheaper service fees. Q 5 Do you have ATM card? Yes No Q 6 How often you use ATM card? Always Frequently Never Q 7 What type of account do you have? Saving Current De-Mat Trading Account
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Q 8 From where do you withdraw cash? ATM Bank Both Q 9 Which channel do use for your banking services? (Choose any options) ATM Phone Banking Internet Banking Manual Banking Q 10 How often you use the services of internet banking? Always Frequently Never No Idea Q 11 which type of services you use from ATM? Cash enquiry Cash withdrawn If any other, please specify:-________________ Q 12 Which banking system do you like more? Conventional banking Internet banking Q 13 What are the advantages of conventional banking?
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 Convenient Effective Safe Reliable Q 14 Which type of service mostly you use in net banking? Balance and transaction history search Transfer fund online Card to card fund transfer Open FD Lock / activate debit cards /ATM Request a cheque book Stop payment Railway pass / ticket Shopping Share payment Q 15 Services of the bank are. Poor Good Very good Q 16 Are you satisfied with the using of E-banking? Yes
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 No Q 17 What do you think what are the advantage of e-banking? Cost effective Ease and practical Time saving

Q 18 Which banking system do you think more secure? Conventional/Manual banking Internet banking Please specify reason_________________________ ___________________________________________ Q 19 Please rates your satisfaction regarding e-banking providing facility in the bank? Highly satisfied Satisfied Neutral Dissatisfied Highly dissatisfied Q 20 What do you think is the important factors for internet banking (rate according to your preference) Ease Time saving
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 Practical Profitable

Data analysis
1) Users of E-banking

Yes No

65% 35%

2) No. of user of the banks Icici

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20%

Sbi Sbh Axis Union Hdfc

30% 20% 10% 8% 12%

3)

PREFERENCE FOR ONLINE BILL PAYMENT SERVICES

Yes No

60% 40%

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4)

PREFERENCE FOR ONLINE SHOPPING

Yes No

70% 30%

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5)

PREFERENCE FOR ONLINE FUND TRANSFAR `

Yes No

35% 65%

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6) SATISFIED CUSTOMERS

Yes No

65% 35%

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7) PERFERRED MODE OF PAYMENT (TO BANK)

CHEQUE CASH E-BANKING

50 25 25

8) SPEND PER BILL FOR ON LINE BILL PAYMENT

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ABOVE Rs.10 BETWEEN RS.5-10 BELOW RS.5 NOTHING

21 11 32 36

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Findings
1. In the users ratio of internet banking 65% of customers are using this service. 2. More banks are connecting to the any software co. to running the E-banking service. In these services the Sbi banks is top in service of E-banking.
3.

The services that are mostly used by maximum customers are transactions, online trading, bill payment, shopping etc.

4. The mode of the cash deposit in bank is for use to online truncation cash, cheque & e-banking.
5.

Different banks different charge for online service.

Suggestions
1.

To prevent online banking from remaining customers to prompt this service through advertising co.

2. After repairing this basic deficiency, banks must ensure that there services is competitive.
3.

Banks is not take more charge from there customers.

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Conclusion
The basic objective of my research was to analyze the awareness among customers for internet banking in INDIA. It gives direction to research tools, research types and techniques. Although the findings reveal that people know about the services but still many people are unaware and many of them are non users so the bank should by promotion try to retain the customers. Banks should look forward to have some tie ups with other financial institutions to increase the service base.

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