E-banking Final Proojet 12013

8/10/2019 E-banking Final Proojet 12013

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A

PROJECT REPORT

ON

E- BANKING ON HDFC BANK

SUBMITTED TO

UNVERSITY OF MUMBAI

INPARTIAL FULLFILLMENT FOR THE AWARD OF

THE DEGREE OF BACHELOR OF COMMERCE

(BANKING AND INSURANCE)

SEMISTER V, ACADEMIC YEAR: 2014-2015.


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DECLARATION

I hereby declare that the project titled E-BANKINGsubmitted

by me is based on actual work carried out by me under the

guidance

& supervision of Prof.

The information submitted in this project work is true and

original to the best of my knowledge and belief.

S.I.A COLLEGE OF HIGHER EDUCATION

SIGNATURE OF THE STUDENT

(BHARAT R. SIRVEE)


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PREFACE

With the rapid globalization of the Indian economy, enterprisesare facing with everchanging competitive environment.Enterprises are adopting strategies aimed atdevelopingcompetitive advantage based on enhanced customer value interms ofproduct differentiation, quality, speed, service and costs.In the post liberalization era,with the deregulation of Indianeconomy, the financial service sector witnessing acompletemetamorphosis and technology is playing a very significant role inthisrecord. Over the last decade India has been one of the fastest

adopters ofinformation technology, particularly because of itscapability to provide softwaresolution to organizations around theworld. This capability has provided atremendous impetuous to thedomestic banking industry in India to deploy the latestintechnology, particularly in the Internet banking and e-commercearenas. Banks aregrowing in size by mergers and acquisitions,which have been driven bycommunication and technology.Technology is playing a major role in increasing theefficiency,courtesy and speed of customer service. It is said to be the age

of E-banking.An Online Banking user is expected to perform at least one of thefollowingtransactions online:1. Checking account balance and transaction history2. Paying bills3. Transferring funds between accounts4. Requesting credit card advances5. Ordering checks

6. Managing investments and stocks tradingFrom a banks perspective, using the Internet is more efficientthan using otherdistribution mediums because banks are looking for an increasedcustomer base.


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Using multiple distribution channels increases effective marketcoverage by enablingdifferent products to be targeted at differentdemographic segments. Also Bankscannot risk loosing customersto competitors within the aggressive competition in thebanking

industry around the world. Moreover Internet delivery offerscustomizedservice to suit the needs and the likes of each user.Mass customization happenseffectively through Online Banking. Itreduces cost and replaces time spent onroutine errands withspending time on business errands. Online Banking meanslessstaff members, smaller infrastructure demands,

compared with other bankingchannels. From the customers

perspective, Online Banking provides a convenientand effectiveway to manage finances that is easily accessible 24 hours a day,sevendays a week. In addition information is up to date.Nevertheless Online Banking hasdisadvantages for banks like howto work the technology, set-up cost, legal issues,and lack ofpersonal contact with customers. And for customers there aresecurityand privacy issues.


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ACKNOWLEDGEMENT

It is a matter of great pleasure for me in submitting the

project report on E-BANKING for fulfillment of the requirementof my course from THE S.I.A COLLEGE OF HIGHER EDUCATION,

DOMBIVLI (EAST)

I am thankful to and owe a deep gratitude to all those who

have helped me in Preparing this report. Words seem to be

inadequate to express my sincere thanks to Prof. nagariya sir for

her valuable guidance, constructive criticism, untiring efforts and

immense encouragement during the entire course of the study

due to which my efforts have been rewarded.

I express my sincere thanks to our principal Dr.

Mrs.PadmajaArvind and our librarian Mrs. Bharti Rao for giving

me all the facilities during my project and helping and guiding me

during my research work.

I want to thank all who have supported me and gave their

timely guidance. Last but not least I am very grateful to all those

who helped in one way or the other way at every stage of my

work.

Signature

(Bharat R .Sirvee)


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About the project

Title of study

The present study titled in E-BANKING. The study is made by reference to E-

BANKING services given to customer

Object of the study

To study the E-banking services in detail.

To study of awareness of E-banking services among the customer of

hdfcbank.

To study the customer satisfaction relating to the E-banking services.

To completely study of E-banking provided by hdfc bank

DATA AND METHODOLOGY

For the purpose of the present study, both primary as well as secondary data

were used.

Primary data is collected through questionnaire from 10 customer tounderstand the awareness abut the E-banking. Sample was randomly selected.


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INDEX

Chapter

No.

Topic PAGE

NO.1 Declaration

2 Acknowledgement

3 Preface

4 Introduction of E-banking INTRODUCTION

History

Meaning

definition

5 History of HDFC bank

6 Business of HDFC bank

7 Facilities provided by HDFC bank

8 E-banking facilities provided by

HDFC bank

9 Importance of E-banking facility

10 E- BANKING SERVICES

11 BENEFITS/CONCERNS OF E-BANKING

12 News and articles

13 Recommendation and suggestion

14 Bibliography

15 Conclusion


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Chapter 1

ntroduction


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INTRODUCTION

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.

Internet banking can be defined as a facility provided by banking

and financial institutions, that enable the user to execute bank

related transactions through Internet. The biggest advantage of

Internet banking is that people can expend the services sitting at

home, to transact business.

Internet banking basically allows you to be able to do everything

that you can in your regular banking institution, only with the

benefit that you can do it all right from the convenience of your

own home. You can be comfortable and have peace of mind

knowing that you can keep track yourself of all your banking

issues.


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History

The concept of Internet banking has been simultaneously

evolving with the development of the World Wide Web.

Programmers working on banking databases came up with ideas

for online banking transactions, some time during the 1980's. The

creative process of development of these services was probably

sparked off after many companies started the concept of online

Shopping.

Sometime in 1980's, banking and finance organizations in Europe

and United States started suggestive researches and

programming experiments on the concept of 'home banking'.

In 1983, the Nottingham Building Society, commonly abbreviated

and refereed to as the NBS, launched the first Internet banking

service in United Kingdom.

Stanford Federal Credit Union introduced the first online banking

service in United States, in October 1994, which is a financial

institution.


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Indian scenario

As this is a time of globalization customer are getting change

adapting more upgraded technology in their life, in this busy

schedule everyone is looking for a time saving process And its

been come in a way of Internet banking.

As Internet banking is booming now a days as a delivery of

banking services and strategic tool for business development, has

gained wide acceptance internationally and is fast catching up in

India with more and more banks entering the fray.

At present, the total Internet users in the country are estimated

at 1crore. Only about 1% of Internet users did banking online in

1998. This increased to 20.7% in March 2000.

Costs of banking service through the Internet form a fraction of

costs through conventional methods. Rough estimates assume

teller cost at Re.1 per transaction, ATM transaction cost at

45paisa, phone banking at 35paisa, debit cards at 20paise and

Internet banking at 10paise per transaction.

Some of the banks permit customers to interact with them and

transact electronically with them. Such services include request


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for opening of accounts, requisition for cheque books, stop

payment of cheques, viewing and printing statements of

accounts, movement of funds between accounts within the same

bank, querying on status of requests, instructions for opening of

Letters of Credit and Bank Guarantees etc. HDFC Bank Ltd. has

made e shopping online and real time with the launch of its

payment gateway.

Meaning of e-banking

For many customers electronic banking means 24-hour access to

cash through an automated teller machine (ATM), or direct

deposit of pay cheques into accounts. But electronic banking

involves many different types of transaction.

Electronic banking , also known as electronic fund transfer

(EFT) uses computer and electronic technology as a substitute for

cheques and other paper transaction EFTs is initiated through

devices like cards or codes that let you, or those you authorize.

Access your account. Many financial institution use ATM or debit

cards and personal identification numbers (PINs) for this purpose.

Some use other type of debit cards such as those that require, at

the most, your signature or a scan. For example, some use radio

frequency identification (RFID) or other forms of contactiesstechnology that scan your information without direct contact. The

feral electronic fund transfer Act (EFT Act) covers some electronic

consumer transaction.


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BANKING INDUSTRY PROFILE

BANKING

The word "BANK" is derived from the 'Bancus' or 'Banque', whichmeans a bench. Inthe early days the European moneylenders andmoneychangers used to sit on the benches and exhibit coins ofdifferent countries in big heaps for the purpose of changing andlending money.

Definition of E-BANKING

Definition:A Banking company is defined as a company, which transacts thebusiness of banking in India.

As per Banking Regulation Act 1949 Section 5(b)

"Banking means, accepting for the purpose of lending or

investment, of deposits of money from the public, repayable ondemand or otherwise, and withdrawal by cheque, draft, orotherwise."

According to Sir John Paget

"No person or body, corporate or otherwise can be a banker whodoes not, (a) take deposits accounts, (b) take current accounts,(c) issue and pay cheques, (d) collect cheques, crossed anduncrossed, for his customers."In simple words we can say thatbank is a financial institution which deals in money and credit byobtaining deposits from public and giving loans and credit totrade and industrial respectively. "


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INTRODUCTIONTO HDFC BANK


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COMPANY PROFILE

History

The Housing Development Finance Corporation Limited (HDFC)was amongst the first to receive an 'in principle' approval fromthe Reserve Bank of India (RBI) to set up a bank in the privatesector, as part of the RBI's liberalization of the Indian BankingIndustry in 1994. The bank was incorporated in August 1994 in

the name of 'HDFC Bank Limited', with its registered office inMumbai, India. HDFC Bank commenced operations as aScheduled Commercial Bank in January 1995.

HDFC Bank was incorporated in 1994 by Housing DevelopmentFinance Corporation Limited (HDFC), India's largest housingfinance company. It was among the first companies to receive an'in principle' approval from theReserve Bank of India (RBI)to setup a bank in the private sector. The Bank started operations as a

scheduled commercial bank in January 1995 under the RBI'sliberalization policies.

Times BankLimited (owned by Bennett, Coleman & Co. / TimesGroup) was merged with HDFC Bank Ltd., in 2000. This was thefirst merger of two private banks in India. Shareholders of TimesBank received 1 share of HDFC Bank for every 5.75 shares ofTimes Bank.

In 2008 HDFC Bank acquiredCenturion Bank of Punjabtaking itstotal branches to more than 1,000. The amalgamated bankemerged with a base of about Rs. 1,22,000crore and net

advances of about Rs.89,000 crore. The balance sheet size of thecombined entity is more than Rs. 1,63,000crores.
http://en.wikipedia.org/wiki/Reserve_Bank_of_Indiahttp://en.wikipedia.org/wiki/Reserve_Bank_of_Indiahttp://en.wikipedia.org/wiki/Reserve_Bank_of_Indiahttp://en.wikipedia.org/w/index.php?title=Times_Bank&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Times_Bank&action=edit&redlink=1http://en.wikipedia.org/wiki/Centurion_Bank_of_Punjabhttp://en.wikipedia.org/wiki/Centurion_Bank_of_Punjabhttp://en.wikipedia.org/wiki/Centurion_Bank_of_Punjabhttp://en.wikipedia.org/wiki/Centurion_Bank_of_Punjabhttp://en.wikipedia.org/w/index.php?title=Times_Bank&action=edit&redlink=1http://en.wikipedia.org/wiki/Reserve_Bank_of_India


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Distribution network

HDFC Bank is headquartered in Mumbai. The Bank has annationwide network of 2000 branches spread in 996 towns and

cities across India. All branches are linked on an online real-timebasis. Customers in over 500 locations are also serviced throughTelephone Banking. The Bank has a presence in all majorindustrial and commercial centers across the country. Being aclearing/settlement bank to various leading stock exchanges, theBank has branches in the centers where the NSE/BSE have amember base.

The Bank also has 5,998 networked ATMs across these towns and

cities. Moreover, HDFC Bank's ATM network can be accessed byall domestic and international Visa/MasterCard, VisaElectron/Maestro, Plus/Cirrus and American ExpressCredit/Charge cardholders.
http://en.wikipedia.org/wiki/File:An_HDFC_Bank_Branch.jpg


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BUSINESS FOCUS

HDFC Bank's mission is to be a World Class Indian Bank. Theobjective is to build sound customer franchises across distinct

businesses so as to be the preferred provider of banking servicesfor target retail and wholesale customer segments, and toachieve healthy growth in profitability, consistent with the bank'srisk appetite.

The bank is committed to maintain the highest level of ethicalstandards, professional integrity, corporate governance andregulatory compliance. HDFC Bank's business philosophy is basedon five core values: Operational Excellence, Customer Focus,Product Leadership, People and Sustainability.


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Business of HDFC bank

HDFC Bank deals with three key business segments. - Wholesale

Banking Services, Retail Banking Services, Treasury. It hasentered the banking consortia of over 50 corporates for providingworking capitalfinance, trade services,corporate finance,andmerchant banking. It is also providing sophisticated productstructures in areas of foreign exchange and derivatives, moneymarkets and debt trading and equity research. Wholesale banking services

Blue-chip manufacturing companies in the Indian corp. to small &mid-sized corporates and agri-based businesses. For thesecustomers, the Bank provides a wide range of commercial andtransactional banking services, including working capital finance,trade services, transactional services, cash management, etc. Thebank is also a leading provider for its to corporate customers,mutual funds, stock exchange members and banks.

Retail banking services

HDFC Bank was the first bank in India to launch an InternationalDebit Card in association with VISA (VISA Electron) and issuesthe MasterCard Maestro debit card as well. The Bank launched itscredit card business in late 2001. By March 2009, the bank had atotal card base (debit and credit cards) of over 13 million. TheBank is also one of the leading players in the merchantacquiring business with over 70,000 Point-of-sale (POS)
http://en.wikipedia.org/wiki/Working_capitalhttp://en.wikipedia.org/wiki/Corporate_financehttp://en.wikipedia.org/wiki/Merchant_bankinghttp://en.wikipedia.org/wiki/Merchant_bankinghttp://en.wikipedia.org/wiki/Corporate_financehttp://en.wikipedia.org/wiki/Working_capital


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terminals for debit / credit cards acceptance at merchantestablishments. The Bank is positioned in various net based B2Copportunities including a wide range of internet banking servicesfor Fixed Deposits, Loans, Bill Payments, etc.

Treasury

Within this business, the bank has three main product areas -Foreign Exchange and Derivatives, Local Currency Money Market& Debt Securities, and Equities. These services are providedthrough the bank's Treasury team. To comply with statutoryreserve requirements, the bank is required to hold 25% of itsdeposits in government securities. The Treasury business isresponsible for managing the returns and market risk on thisinvestment portfolio

.


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Facilities provided by HDFC bank

Personal Banking

Accounts & Deposits

Loans

Cards

Forex

Investments & Insurance

NRI Banking

Accounts & Deposits Remittances

Investments & Insurance Loans Payment Services

Wholesale Banking

Corporate

Small & Medium Enterprises Financial Institutions & Trusts

Government Sector


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E-banking facilities provided by

HDFC bank

Net Banking

InstaAlerts

Branch Network

ATM

Email Statements

PhoneBanking

Mobile Banking

P.O.Boxes

Net Banking HDFC Bank offers you a comprehensive range of

transactions across multiple products through its NetBankingchannel. So just log in to NetBanking and conduct 135 +transactions from the comfort of your home or office.

You can check your Account Balance, book Fixed and RecurringDeposits, Download A/c Statement up to 5 years, pay your Bills,Recharge your Mobile/ DTH connection, and much more in a

secure environment.

You can log in to NetBanking using your Customer ID and IPIN(password).
http://www.hdfcbank.com/nri_banking/ways_to_bank/NetBanking/netBanking.htmhttp://www.hdfcbank.com/nri_banking/ways_to_bank/InstaAlerts/instaAlerts.htmhttp://www.hdfcbank.com/nri_banking/ways_to_bank/BranchNetwork/branchNetwork.htmhttp://www.hdfcbank.com/nri_banking/ways_to_bank/ATM/atm.htmhttp://www.hdfcbank.com/nri_banking/ways_to_bank/Email_Statements/emailStatements.htmhttp://www.hdfcbank.com/nri_banking/ways_to_bank/PhoneBanking/PhoneBanking.htmhttp://www.hdfcbank.com/nri_banking/ways_to_bank/MobileBanking/mobileBanking.htmhttp://www.hdfcbank.com/nri_banking/nri_service_desk/nri_service_desk.htmhttp://www.hdfcbank.com/nri_banking/ways_to_bank/NetBanking/netBanking.htmhttp://www.hdfcbank.com/nri_banking/ways_to_bank/NetBanking/netBanking.htmhttp://www.hdfcbank.com/nri_banking/nri_service_desk/nri_service_desk.htmhttp://www.hdfcbank.com/nri_banking/ways_to_bank/MobileBanking/mobileBanking.htmhttp://www.hdfcbank.com/nri_banking/ways_to_bank/PhoneBanking/PhoneBanking.htmhttp://www.hdfcbank.com/nri_banking/ways_to_bank/Email_Statements/emailStatements.htmhttp://www.hdfcbank.com/nri_banking/ways_to_bank/ATM/atm.htmhttp://www.hdfcbank.com/nri_banking/ways_to_bank/BranchNetwork/branchNetwork.htmhttp://www.hdfcbank.com/nri_banking/ways_to_bank/InstaAlerts/instaAlerts.htmhttp://www.hdfcbank.com/nri_banking/ways_to_bank/NetBanking/netBanking.htm


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Experience Convenience ... Choose NetBanking!

Are you tired of heading down to a Bank branch? Of waiting inqueues? Of not knowing how to manage your account at yourconvenience? We have the answer!

NetBanking is an incredibly convenient and powerful tool, lettingyou do everything you want with your accounts at the click of a

mouse.

It is Real Time, giving you up-to-the-second details on youraccount.

All you need to do is Log in using your Customer ID andIPIN(NetBanking password).

Your Customer ID is mentioned on your account statement/account welcome letter/ chequebook. (Current account / HUFcustomers can obtain this from the branch). You can re-generateyour IPINonline in 3 easy steps.

Some of the transactions you can do through NetBanking are:

Check your account balances and download 5 year accountstatement in 5 formats, instantly

Book Fixed Deposit / Recurring Deposit Pay Utility Bills

View your Credit Card details and pay your Credit Card Bills Recharge your Prepaid Mobile & DTH Connections

Invest in Mutual Funds Online

Book IRCTC Tickets online Purchase a Gift Card

Pay your Taxes online
http://www.hdfcbank.com/personal/ways_to_bank/ways-to-bank-details?id=gts8mitqhttp://www.hdfcbank.com/personal/ways_to_bank/ways-to-bank-details?id=gts8mitqhttp://www.hdfcbank.com/personal/ways_to_bank/ways-to-bank-details?id=gts8mitq


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Update your PAN Details online Request Stop Payment of a Cheque/ Hotlist you Debit Card/

Credit Card

View your Loan details

Transfer funds between accounts within HDFC Bank andother Bank Accounts

InstaAlerts

Now you can get regular updates on your bank account on yourmobilephone or email ID. Just register for our Insta Alert serviceand receive updates on youraccount as and when the selecttransaction happens - all this without visiting the branch or

ATM.You can register for any or all of the following alerts:

Debit transactions greater than Rs. 5,000/ Rs.10, 000/ Rs.20,000/Rs. 50,000

Credit in account greater than Rs. 5,000/ Rs.10, 000/ Rs.20,000/Rs. 50,000

Account Balance below Rs. 5,000/ Rs.10, 000/ Rs.20,000/Rs. 50,000-

Weekly account balance Salary Credits Utility bill payment due Alert

Fees and charges

The service is FREE for you.
http://www.hdfcbank.com/nri_banking/ways_to_bank/InstaAlerts/instaAlerts.htmhttp://www.hdfcbank.com/nri_banking/ways_to_bank/InstaAlerts/instaAlerts.htmhttp://www.hdfcbank.com/nri_banking/ways_to_bank/InstaAlerts/instaAlerts.htm


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Branch Network

Welcome to the networked world of HDFC Bank. You canopen an account and access it from any branch nearest toyour residence or office, anywhere in the country.

The sophisticated, computerized network gives you theflexibility of accessing your Savings or Current Account fromany of over 3,488 branches and over 11,426 ATMs across

India.

ATM

Our wide range of ATMs across the country ensures that youare never too far away from money. You can cater to yourdiverse banking needs, right from just withdrawing cash to awhole host of other transactions to help you manage youraccount with complete security and convenience, whenever

you want.

Welcome to 24 hour banking!
http://www.hdfcbank.com/nri_banking/ways_to_bank/BranchNetwork/branchNetwork.htmhttp://www.hdfcbank.com/nri_banking/ways_to_bank/ATM/atm.htmhttp://www.hdfcbank.com/nri_banking/ways_to_bank/ATM/atm.htmhttp://www.hdfcbank.com/nri_banking/ways_to_bank/BranchNetwork/branchNetwork.htm


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Features and benefits

Enjoy various features using our Bank ATMs. Here is a look atwhat you can do at our ATMs:

24 hour access to cash : You can withdraw up to Rs. 10,000per day on your ATM Card and up to Rs. 25,000 or more onyour Debit Card (depending on the type of card held).

Personalized cash withdrawals : Save time on your cashwithdrawal transactions by pre-setting your preferred language/ account / amount.

View account balances and mini-statements : Get a mini-statement with the last 9 transactions on your account, withyour account balance.

Change ATM PIN :Change your ATM PIN whenever you want.

Order a cheque book or account statement : You can ordera cheque book or an account statement from our ATMs.

HDFC Bank Credit Card Payment : Pay your HDFC BankCredit Card bill at any of our ATMs. The primary account ofyour Debit / ATM card will be debited.


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Deposit cash or cheques : Deposit cheques or cash into youraccount at our selected non-branch ATMs.

Transfer funds between accounts : You can transfer funds

between the accounts. A maximum of 16 accounts (Savings /Current) can be linked to a card.

Refill your Prepaid mobile : Refill your prepaid mobile usingthe Prepaid Mobile Refill service instantly.

Pay your utility bills : Pay your mobile, telephone andelectricity bills through our ATMs using BillPay, acomprehensive bill payment solution.

Cheque Status Enquiry : Get information about the status ofa cheque issued from your account.

NetBanking password request : Request for yourNetBanking password (IPIN) at an ATM and it will be sent toyour recorder mailing address.

Registration for Mobile Banking : Register forMobileBanking and use our Banking services through your

mobile.

There are no charges levied for use of other banks cards onHDFC Bank ATMs for cash withdrawals and balance enquires.


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Fees and charges

There is no charge for using the card at HDFC Bank ATMs

Charges on Other Bank's ATMNetworks in India

Charges

For Current Account Debit Card

Holders

Balance enquiry - Free

Cash withdrawal - Rs. 20/-* per transaction

For Salary & Saving Account

Debit Card Holders

Total of 5 ATM Financial and Non-Financial transactions per

month at other Bank ATMs free of cost.

Charges from the 6th Transaction onwards:Rs. 20.00/-* per Financial transaction - i.e Cash

Withdrawals

Rs. 8.50/-** per Non-Financial transaction - e.g. Balance

Inquiry, Pin Change & Mini Statement

You will be allowed to withdraw a maximum of Rs. 10,000 pertransaction from another banks ATM, w.e.f. from 15th October2009.

You will not be charged any fee when you use your ATM / DebitCard at any merchant location.

However, at petrol pumps and railway stations you will becharged a fee as per Industry practice.

Transaction Cash Withdrawal Balance Inquiry

International Visa/ Plus ATMs and Cirrus ATMs Rs. 110/- Rs. 15/-***


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Email Statements

Receive your account statements via email without any delays foryour Savings and Current Accounts. You also have the option to

maintain the statement on email, print it or save it on a CD. Your

account info is now available to you at the click of a button with

email statements.


Email statements are FREE Monthly email statements for your Savings Account

Opt for daily / weekly / monthly email statements for yourCurrent Account

Physical statements will be discontinued if you opt for emailstatements

Based on the date of account opening, it follows a staggeredcycle

Even if you are registered for hold mails, you can opt for

email statements Get information on our new products and mandatory

information online.

Email statements will be non-combined statements.
http://www.hdfcbank.com/nri_banking/ways_to_bank/Email_Statements/emailStatements.htmhttp://www.hdfcbank.com/nri_banking/ways_to_bank/Email_Statements/emailStatements.htm


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PhoneBanking

PhoneBanking services are a combination of IVR and Agentoffering, depending on the type of transaction. For all

transactions that cannot be completed on the IVR such asreporting loss of cards, logging complaints, requests &queries, PhoneBanker-assisted services are available


Get up-to-the-second details of your Savings or CurrentAccounts and Fixed Deposits

Get the details of the last 5 transactions on your account. Enquire on the status of cheques issued or deposited

anywhere in India#

Order a Cheque Book / Account statement to be delivered toyour mailing address.

Stop payment of a single cheque or a series of cheques, 24hours a day

Get details of the outstanding loan amount, enquire aboutyour loan account, request for an interest certificate andrepayment schedule, etc #.

Open a Fixed Deposit or enquire about your Fixed Deposits /TDS#

Transfer funds between Accounts linked to your Customer ID

Pay your cellular, telephone & electricity bills using BillPay

Call PhoneBanking to report Loss of your ATM / Debit /Prepaid Card.This service is available 24 hours on all days


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Get details on HDFC Bank products and services by talkingto our PhoneBanker

Enquire about latest interest / exchange rates by talking toour PhoneBanker

SMS BANKING

With SMSBanking you can access your account on your mobilewherever you are. Access your bank account, make bankingtransactions, monitor your accounts and fixed deposits on yourmobile.

SMSBanking, a great way to have your bank account atyour fingertips!

What features does SMSBanking have?

Take a look at the features of SMSBanking:

View balance details

Get last 3 transaction details

Request for cheque book Stop cheque payment Enquire cheque status

Request for account statement

Get Fixed Deposit details

Request forIPINgeneration
http://www.hdfcbank.com/nri_banking/ways_to_bank/MobileBanking/mobileBanking.htmhttp://www.hdfcbank.com/nri_banking/ways_to_bank/MobileBanking/mobileBanking.htmhttp://www.hdfcbank.com/nri_banking/ways_to_bank/MobileBanking/mobileBanking.htmhttp://www.hdfcbank.com/nri_banking/ways_to_bank/MobileBanking/mobileBanking.htm


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NRI SERVICE DESK / OVERSEAS P.O.BOXES:At HDFC Bank, we make it easier for you to reach us fromacross the world. Keeping in mind the global reach of ouresteemed NRI customers like you, our PO Box facility isavailable for you in USA, UK, UAE, Australia, Canada, SaudiArabia, Singapore, Germany.

So go ahead and mail us your account related* requests tothe below listed local PO Box addresses in your country.

You no longer have to incur expensive courier charges tosend us account instructions. All you need to do is simplymail your instruction to a local PO Box in your countryoverseas. What's more, this facility is available to you free ofcharge.


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Importance of E-banking facility

Businesses rely on efficient and rapid access to bankinginformation for cash flow reviews, auditing and daily financial

transaction processing. E-banking offers ease of access, securetransactions and 24-hour banking options. From small start-upcompanies to more established entities, small businesses rely one-banking to eliminate runs to the bank and to make financialdecisions with updated information. In an information-drivenbusiness climate, companies who do not use e-banking are at acompetitive disadvantage.

Activity Review

Business owners, accounting staff and other approved employeescan access routine banking activity such as deposits, clearedchecks and wired funds quickly through an online bankinginterface. This ease of review helps ensure the smooth processingof all banking transactions on a daily basis, rather than waitingfor monthly statements. Errors or delays can be noted and

resolved quicker, potentially before any business impact is felt.

Productivity

E-banking leads to productivity gains. Automating routine billpayments, minimizing the need to physically visit the bank andthe ability to work as needed rather than on banking hours may

decrease the time involved in performing routine bankingactivities. Additionally, online search tools, banking actions andother programs can allow staff members to research transactionsand resolve banking problems on their own, without interactingwith bank employees. In some cases, month-end reconciliationsfor credit card transactions and bank accounts can be automatedby using e-banking files.


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Lower Banking Costs

Banking relationships and costs are often based on resourcerequirements. Businesses that place more demands on banking

employees and need more physical assistance with wire transfers,deposits, research requests and other banking activities oftenincur higher banking fees. Opting for e-banking minimizesbusiness overhead and banking expenses.

Reduced Errors

Utilizing e-banking reduces banking errors. Automation ofpayments, wires or other consistent financial activities ensurespayments are made on time and may prevent errors caused bykeyboard slips or user error. Additionally, opting for electronicbanking eliminates errors due to poor handwriting or mistakeninformation. In many cases, electronic files and daily reviews ofbanking data can be used to double or triple check vitalaccounting data, which increases the accuracy of financialstatements.

Reduced Fraud

Increased scrutiny of corporate finances through audits and anti-fraud measures requires a high level of visibility for all financialtransactions. Relying on e-banking provides an electronicfootprint for all accounting personnel, managers and businessowners who modify banking activities. E-banking offers visibilityinto banking activities, which makes it harder for under-the-tableor fraudulent activities to occur.


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E- BANKING SERVICES:

1. Bill payment service

Each bank has tie-ups with various utility companies, service providers andinsurancecompanies, across the country. It facilitates the payment ofelectricity and telephonebills, mobile phone, credit card and insurancepremium bills.

To pay bills, a simple one-time registration for each biller is to be

completed. Standinginstructions can be set, online to pay recurring bills,automatically. One-time standinginstruction will ensure that bill paymentsdo not get delayed due to lack of time. Mostinterestingly, the bank does notcharge customers for online bill payment.


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2. Fund transfer

Any amount can be transferred from one account to another of the same orany anotherbank. Customers can send money anywhere in India. Payeesaccount number, hisbank and the branch is needed to be mentioned afterlogging in the account. Thetransfer will take place in a day or so, whereasin a traditional method, it takes aboutthree working days. ICICI Bank saysthat online bill payment service and fund transferfacility have been theirmost popular online services.

3. Credit card customers

Credit card users have a lot in store. With Internet banking, customers cannot only paytheir credit card bills online but also get a loan on their cards.Not just this, they can alsoapply for an additional card, request a credit lineincrease and God forbid if you loseyour credit card, you can report lost cardonline.


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4. Railway pass

This is something that would interest all the aamjanta. Indian Railways hastied up withICICI bank and you can now make your railway pass for localtrains online. The passwill be delivered to you at your doorstep. But thefacility is limited to Mumbai, Thane,Nasik, Surat and Pune. The bank would

just charge Rs 10 + 12.24 percent of service tax.

5. Investing through Internet banking

Opening a fixed deposit account cannot get easier than this. An FD can beopenedonline through funds transfer. Online banking can also be a greatfriend for lazyinvestors.

Now investors with interlinked demat account and bank account can easilytrade in thestock market and the amount will be automatically debited fromtheir respective bankaccounts and the shares will be credited in their demataccount.

Moreover, some banks even give the facility to purchase mutual fundsdirectly from theonline banking system.

So it removes the worry about filling those big forms for mutual funds, theywill now bejust a few clicks away. Nowadays, most leading banks offer both

online banking anddemat account. However if the customer havetheredemat account with independentshare brokers, then need to sign aspecial form, which will link your two accounts.


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6. Recharging your prepaid phone

Now there is no need to rush to the vendor to recharge the prepaid phone,every timethe talk time runs out. Just top-up the prepaid mobile cards bylogging in to Internetbanking. By just selecting the operator's name,entering the mobile number and theamount for recharge, the phone isagain back in action within few minutes.

7. Shopping at your fingertips

Leading banks have tie ups with various shopping websites. With a rangeof all kind ofproducts, one can shop online and the payment is also madeconveniently through theaccount. One can also buy railway and air ticketsthrough Internet banking.


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BENEFITS/CONCERNS OF E-BANKING

BENEFITS OF E-BANKING

For Banks

Price- In the long run a bank can save on money by not

paying for tellers or for managing branches. Plus, it's

cheaper to make transactions over the Internet.

Customer Base- the Internet allows banks to reach a

whole new market- and a well off one too, because there

are no geographic boundaries with the Internet. The

Internet also provides a level playing field for small banks

who want to add to their customer base.

Efficiency- Banks can become more efficient than they

already are by providing Internet access for their customers.

The Internet provides the bank with an almost paper less

system.

Customer Service and Satisfaction- Banking on the

Internet not only allow the customer to have a full range of

services available to them but it also allows them some

services not offered at any of the branches. The person does

not have to go to a branch where that service may or may


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not be offer. A person can print of information, forms, and

applications via the Internet and be able to search for

information efficiently instead of waiting in line and asking

ateller. With more better and faster options a bank will

surely be able to create better customer relations and

satisfaction.

Image- A bank seems more state of the art to a customer if

they offer Internet access. A person may not want to use

Internet banking but having the service available gives a

person the feeling that their bank is on the cutting image.


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For Customers

Bill Pay- Bill Pay is a service offered through Internet

banking that allows the customer to set up bill payments to

just about anyone. Customer can select the person or

company whom he wants to make a payment and Bill Pay

will withdraw the money from his account and send the

payee a paper check or an electronic payment

Other Important Facilities- E- banking gives customer

the control over nearly every aspect of managing his bank

accounts. Besides the Customers can, Buy and Sell

Securities, Check Stock Market Information, Check Currency

Rates, Check Balances, See which checks are cleared,

Transfer Money, View Transaction History and avoid going to

an actual bank. The best benefit is that Internet banking is

free. At many banks the customer doesn't have to maintain

a required minimum balance. The second big benefit is

better interest rates for the customer.


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CONCERNS WITH E-BANKING

As with any new technology new problems are faced.

Customer support- Banks will have to create a whole new

customer relations department to help customers. Banks

have to make sure that the customers receive assistance

quickly if they need help. Any major problems or disastrous

can destroy the banks reputation quickly an easily. By

showing the customer that the Internet is reliable you are

able to get the customer to trust online banking more and

more.

Laws - While Internet banking does not have national or

state boundaries, the law does. Companies will have to

make sure that they have software in place software

market, creating a monopoly.

Security - Customer always worries about their protection

and security or accuracy. There are always questions

whether or not something took place.

Other challenges - Lack of knowledge from customers

end, sit changes by the banks, etc.


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Strengths

Right strategy for the right products.

Superior customer service vs.

competitors.

Great Brand Image

High degree of customer satisfaction.

Good place to work

Lower response time with efficient

and effective service.

Dedicated workforce aiming at

making a long-term career in the

field.

Weaknesses

Some gaps in range for certain

sectors.

Customer service staff needs

training.

Processes and systems, etc

Management cover insufficient.

Sectoral growth is constrained by

low unemployment levels and

competition for staff

Opportunities

Profit margins will be good.

Could extend to overseas broadly.

New specialist applications.

Could seek better customer deals.

Fast-track career development

opportunities on an industry-wide

basis.

An applied research centre to create

opportunities for developing

techniques to provide added-value

services

Threats

Great risk involved

Very high competition prevailing in

the industry.

Vulnerable to reactive attack by

major competitors.

Lack of infrastructure in rural areas

could constrain investment.

High volume/low cost market is

intensely competitive.


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1. Start early with simple, user-friendly, robust andhighly scalableservices.

2. Use the same secure, mobile password in all devices andchannels (including contact centers), for both identification andtransaction confirmation.

1.Include all services in the same portal to gain economies ofscope and repetition. Introduce new services gradually to keepup user interest.

2.Make e-Banking a part of branch banking in order to motivatethe local personnel to sell the service.

3.Provide the same services and user logic to both private andcorporate customers to gain not only the reuse advantages oftechnology and branding, but also the economy of repetition.

4.Let your corporate and private users meet each other in theInternet bank via such thins as mall-like link collection(available to merchants using the bank's services).

7.Use both real-life situations and interest basedpersonalizationand customization to provide userswith targeted offers.


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News and articles

1. Any time money, no more: How

frequent transactions at ATMs

become expensiveNew Delhi | Updated: Aug 19 2014, 09:31 IST

SUMMARY

Come Nov 1, frequent usage of

ATMs will become expensive, with

RBI imposing limit of transactions

Taking out a mini-statement or even changing PIN will amount to a transaction

.


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COME November, frequent usage of ATMs will become expensive, with the RBI imposing a limit of

three transactions financial and non-financial per month from ATMs of other banks and five

from the same bank in the six metropolitan cities. You will be required to pay a fee of up to R20 for

using ATMs beyond the permitted numbers of transactions in Delhi, Mumbai, Chennai, Bangalore,

Kolkata and Hyderabad.Taking out a mini-statement or even changing your PIN will amount to a transaction. The central

bank has, however, said that nothing precludes a bank from offering more than three free

transactions at other bank ATMs to its account holders if it so desires.

Recently, a few banks and the Indian Banks Association (IBA) had approached RBI seeking changes

in the extant instructions regarding free transactions at other banks' ATMs. Referring to the growing

cost of ATM deployment and maintenance incurred by banks, on one hand, and the rising

interchange outgo due to these free transactions (on the other), the IBA had sought the removal of

free transactions at other banks' ATMs at metro centres and other townships in the country," said the

RBI circular.

2.Banks set to beef up security at ATMs

after Bangalore incident

Summary:

The bank will further strengthen the security and take appropriate steps: Corporation Bank

Banks are gearing up to enhance security at ATMs after a

review of threat perception at various locations (Reuters)

Alarmed by the recent Bangalore incident, banks are gearing up to enhance security at ATMs

after a review of threat perception at various locations.


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"Though our ATMs have adequate security, the bank will review it and beef up where required,"

a senior official of Canara Bank told PTI.

As per the usual practice, banks deploy full-time security guards at the off-site ATMs

(Automated Teller Machines), while at the on-site ATM i.e. at the bank branch, guards are

placed only at night.

According to a Corporation Bank official, in the light of the incident in Bangalore, the bank willfurther strengthen the security and take appropriate steps.

In a shocking incident on Tuesday, a women employee of Corporation Bank was attackedbrutally at the on-site ATM of the bank.

The assailant had attacked her after entering the ATM booth closely following her and downingthe rolling shutter when she refused to draw money and hand it over to him.

The private security industry, which manages the cash logistics and security of bank ATMs, hasbeen raising the security issue of ATM operations time and again with the government and

banks.

"Its the long wait for the gun licences that will cost the ATM security. The situation could

worsen further as the government has announced one lakh more ATMs in next 2 years.

"Imagine what could be state then considering the slow progress on the armed security front,"

said Rituraj Sinha managing director of cash management company SIS Prosegur.

As of August, there were 1,26,950 ATMs of banks across the country. Of this, the number of

onsite ATMs are 63,380 while there 63,570 cash dispensing machines off-site.

Public sector banks had a combined 72,340 branches, of which 37,672 had onsite ATMs at the

end of March 2013.

1.


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3.Soon, you can withdraw cash from ATM even

without bank account: Raghuram Rajan

Summary:RBI in talks with markets to set up trade receivables exchange to facilitate credit to MSMEs.'

In another effort towards financial inclusion, the RBI has given in-principle approval to settingup of a new payment system that will facilitate fund transfers from bank account holders to those

without accounts through automated teller machines (ATMs).

Essentially, the sender can have the money withdrawn from his account through an ATMtransaction. The intermediary processes the payment, and sends a code to the recipient on his

mobile that allows him to withdraw the money from any nearby banks ATM, said RBI

governor Raghuram Rajan on Wednesday at the Nasscom summit, and highlighted howtechnologies can be used to deepen financial inclusion.

Rajan also said the RBI is in talks with market players to set up a trade receivables exchange tobetter facilitate credit to micro, small and medium enterprises (MSMEs). Rajan explained that

MSMEs get squeezed all the time by their large buyers, who pay after long delays.

All would be better off if the MSME could sell its claim on the large buyer in the market. The

MSME would get its money quickly, while the market would get a claim on the better rated large

buyer instead of holding a claim on the MSME. The large buyer could get a better price for hispurchases.

The governor also said that the RBI will accelerate dialogue with key players in the telecom

industry in the next few months to better facilitate mobile banking through the SMS andunstructured supplementary service data channels.

The RBI had recently put out a report by a technical committee on mobile banking, which

recommended a standardised procedure for registration and authentication of customers for

mobile banking services and the adoption of a common application platform across all banks,which can work on any handset.


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OBJECTIVES OF THE STUDY

The main objectives of the study are:

To study the awareness level of service class peopleregarding E-Banking.

To find out the frequency and the factors that influences theadoption of E-Banking services.

To measure the satisfaction level of people.

To understand the problems encountered in by service classpeople while using E-Banking services(ATM, Phone banking,etc)


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RESEARCH METHODOLOGY

Research is a careful investigation or inquiry especially through

search for new facts in branch of knowledge: market research

specifies the information. Required to address these issues:

designs the method for collecting information: manage and

implements the data collection process analyses the results and

communicates the finding and their implications.

Research problem is the one which requires a researcher to find

out the best solution for the given problem that is to find out the

course of action, the action the objectives can be obtained

optimally in the context of a given environment.

RESEARCH DESIGN

A framework or blueprint for conducting the research project. It

specifies the details of the procedures necessary for obtaining the

information needed to structure and/or solve research problems.

A good research design lays the foundation for conducting the

project. A good research design will ensure that the research


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project is conducted effectively and efficiently. Typically, a

research design involves the following components, or tasks:

Define the information needed.

Design the research.

Specify the measurement and scaling procedures.

Construct and present a questionnaire or an appropriate

form for data collection.

Specify the sampling process and sampling size.

Develop a plan of data analysis.

Data Collection:The objectives of the project are such that both primary and

secondary data is required to achieve them. So both primary and

secondary data was used for the project. The mode of collecting

primary data is questionnaire mode and sources of secondary

data are various magazines, books, newspapers, & websites etc.

1. Primary Data:The primary data was collected to measure the

customer satisfaction and their perception regarding HDFC Bank.The primary data was collected by means of questionnaire and

analysis was done on the basis of response received from the

customers. The questionnaire has been designed in such a

manner that the consumers satisfaction level can be measured

and consumer can enter his responses easily.


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2. Secondary Data: The purpose of collecting secondary data

was to achieve the objective of studying the recent trends anddevelopments taking place in banking.

Sample size

15 customers were selected.

Sampling Unit

Dombivli (Mumbai)

Sampling Technique

Convenient sampling.

Analysis and Interpretation

After the data collection, it was compiled, classified and tabulated

manually and with help of computer. Then the task of drawing

inferences was accomplished with the help of percentage and

graphic method.


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CHAPTER 6


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1.Are you aware about Internet banking HDFC bank?

Interpretation: 79% respondents ofHDFC bank are aware aboutthe Internet banking of HDFC bank and 21 are not aware.

79%

21%

0

10

20

30

40

50

60

70

80

90

yes No

Aware


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2.Are you Internet banking holder of HDFC bank?

Interpretation:52% respondents are banking holder of HDFC

bank, 24% respondent are not banking holder of HDFC bank,

12% respondent are Internet banking holder of other bank and

12% respondent doing with both.

52%

24%

12% 12%

0

10

20

30

40

50

60

Yes No Other Both

Internet Banking Holder of HDFC bank


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3.Are you doing Internet banking with HDFC bank?

Interpretation: 56% respondent of Bank of Baroda doing

Internet banking with it and 44% are not doing with.

0

10

20

30

40

50

60

Yes No

56%

44%

Internet Banking with HDFC bank


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5.Are you using Internet banking to view the transaction?

Interpretation: 59% respondents of HDFC bank are using

Internet Banking to view the transaction and 49% are not using

for this.

56%

24%

20%

View the Transaction

Yes

No

Other


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6.How many times you are using Internet banking in a month?

Interpretation: 37% respondents are using Internet Banking

within 10 days, 34% using daily, 10% using in 30 days, 10

%using it in a year and 9% using in 20 days.

37

910

34

10

Using Internet Banking

Within 10 days

20 days

30 days

Daily

Year


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6. Do you feel other Bank providing better facility to the customer

in Internet banking than HDFC bank?

Interpretation: 41% respondent feels HDFC bank providing

better facility in Internet Banking than other Bank and 27%

respondents feels other Bank providing better facility and rest

32% cant say because of not using any others bank service of

internet banking.

27%

41%

32%

Better Facility

Yes

No

Other


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7. Within how many days of submitting your application form,

Internet banking Operationalized?

Interpretation: 37% respondents got Internet banking from the

Branch within 10days, 35% got 10-20 days, 18% got 20-30 days

and 10% got 30-40 days.

0 10 20 30 40

Within 10 days

10-20 days

20-30 days

30-40

37%

35%

18%

10%

Operationalized Internet Banking


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8. Are you getting requisite information about Internet banking

from the website of HDFC bank?

Interpretation: 15% respondents are getting information from

BOB website and 85% are unable to say it.

0

20

40

60

80

100

yes NA

15%

85%

Information

Information


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9. What facility you mostly prefer in Internet banking?

Interpretation: 14% respondents use the Internet banking

doing the transfer fund, 8% use for pay online tax, 10% for book

Rail ticket, 18% for book Airline ticket, 22% use more than 1

service and rest 28% havent ever used Internet banking not only

of HDFC bank even not of other bank.

14%

8%

18%

10%

22%

28%

0

5

10

15

20

25

30

TransferFund

Pay onlinetax

Book Airlineticket

Book Railticket

More than1 NA

Using Internet Banking


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E-banking Final Proojet 12013

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