PROJECT REPORT

(Submitted for the Degree of B.Com. Honours in Accounting & Finance under the University of Calcutta)

A STUDY ON ONLINE BANKING IN INDIA

BY

PRADUMNYA SEN

Registration Number : 043-1121-0256-11

OF

HERAMBA CHANDRA COLLEGE

ROLL NUMBER - 348

SUPERVISED BY

PROF. ARCHISMAN LAHIRI

HERAMBA CHANDRA COLLEGE

FEBRUARY'2014

TABLE OF CONTENTS

1. INTRODUCTION

1.1 Background of Study on Online Banking In India

1.1.1 Drivers of Change 1.1.2 Indian Banks on Web 1.1.3 Emerging Challenges 1.1.4 Main Concerns in Online Banking 1.1.5 Current Scenario 1.1.6 Technology in Online Banking 1.1.7 Industry Profile

1.2 Problem Identified1.3 Need Of Study1.4 Objectives Of Study

1.4.1 Primary Objectives 1.4.2 Secondary Objectives

2. LITERATURE SURVEY

2.1 Review Of Literature 2.2 E-Banking In India 2.3 Company Profile In Online Banking 2.4 Services And Products 2.5 SWOC Analysis

3. ANALYSIS AND FINDINGS 3.1 Type Of Project 3.2 Target Respondents 3.3 Area Of Research 3.4 Tools for Analysis 3.5 Data Analysis & Interpretation

4. CONCLUSION AND RECOMMENDATIONS

4.1 Summary Of Findings 4.2 Suggestions 4.3 Conclusions

5. BIBLIOGRAPHY

CHAPTER 1- INTRODUCTION

1.1 Background Study :

The Internet banking is changing the banking industry and is having the major effects on banking relationships. Even the Morgan Stanley Dean Witter Internet research emphasized that Web is more important for retail financial services than for many other industries. Internet banking involves use of Internet for delivery of banking products & services. It falls into four main categories, from Level 1 - minimum functionality sites that offer only access to deposit account data - to Level 4 sites - highly sophisticated offerings enabling integrated sales of additional products and access to other financial services - such as investment and insurance. In other words a successful Internet Banking solution offers -

Exceptional rates on Savings, CDs, and IRAs Checking with no monthly fee, free bill payment and rebates on ATM surcharges Credit cards with low rates Easy online applications for all accounts, including personal loans and mortgages 24 hour account access Quality customer service with personal attention.

1.1.1 Drivers Of Change :

Advantages previously held by large financial institutions have shrunk considerably. The Internet has leveled the playing field and afforded open access to customers in the global market place. Internet Banking is a cost effective delivery channel for financial institutions. Consumers are embracing the many benefits of Internet Banking. Access to one's accounts at anytime and from any location via the World Wide Web is a convenience unknown a short time ago. Thus, a bank's Internet presence transforms from 'brouchreware' status to 'Internet banking' status once the bank goes through a technology integration effort to enable the customer to access information about his or her specific account relationship. The six primary drivers of Internet Banking includes, in order of primacy are :

Improve customer access Facilitate the offering of more services Increase customer loyalty Attract new customers Provide services offered by competitors Reduce customer attrition.

1.1.2 Indian Banks on Web :

The banking industry in India is facing unprecedented competition from non- traditional banking institutions, which now offer banking and financial services over the Internet. The deregulation of the banking industry coupled with the emergence of new technologies, are enabling new competitors to enter the financial services market quickly and efficiently.

Indian banks are going for the retail banking in a big way. However , much is still to be achieved. This study which was conducted by students of IIML shows some interesting facts :

Throughout the country, the Internet Banking is in the nascent stage of development (only 50 banks are offering varied kind of Internet banking services).

In general, these Internet sites offer only the most basic services. 55% are so called 'entry level' sites, offering little more than company information and basic marketing materials. Only 8% offer 'advanced transactions' such as online funds transfer ,transactions & cash management services.

Foreign & Private Banks are much advanced in terms of the number of sites & their level of development.

1.1.3 Emerging Challenges :

Information technology analyst firm, the Meta Group, recently reported that "financial institutions who don't offer home banking by the year 2000 will become marginalized." By the year of 2002, a large sophisticated and highly competitive Internet Banking Market will develop which will be driven by

Demand side pressure due to increasing access to low cost electronic services. Emergence of Open standards for banking functionality. Growing customer awareness and need of transparency. Global players in the fray. Close integration of bank services with web based E-commerce or even

disintermediation of services through direct electronic payments (E-Cash) More convenient international transactions due to the fact that the Internet along with

general deregulation trends eliminates geographic boundaries.

1.1.4 Main Concerns In Internet Banking :

In a survey conducted by the Online Banking Association , member institutions rated security as the most important issue of Online banking. There is a dual requirement to protect customer's privacy and protect against fraud. Banking Securely : Online banking via the World Wide Web provides an overview of Internet commerce and how one company secure banking for its financial institution clients and their customers. Some basic information on the transmission of confidential data is presented in Security and Encryption on the Web. PC Magazine Online also offer a primer : How Encryption Works. A multilayered security architecture comprising firewalls , filtering routers, encryption and digital certification ensure that your account information is protected from unauthorised access :

Firewalls and filtering routers ensure that only the legitimate Internet users are allowed to access the system.

Encryption techniques used by the bank (including the sophisticated public key encryption) would ensure that privacy of data flowing between the browser and the Infinity system is protected.

Digital certification procedures provide the assurance that the data you receive is from the Infinity system.

1.1.5 Current Scenario :

The Indian has finally worked up to the competitive dynamics of new Indian market and is addressing the relevant issues take on the multifarious challenges of globalization.

Banks that employ IT solutions are perceived to be futuristic and proactive players capable of meeting the multifarious requirements of large customer base. Private banks have been fast on the uptake and are reorienting their strategies using the Internet as a medium.

The India banking has come from a long from being a sleepy business institution to a highly proactive and dynamic entity this transformation has been largely brought by the large doses of liberalization and economic reforms that allowed exploring new business opportunities rather than generating revenues from conventional streams. The Indian industry has confidently hit the growth trial that pick in activity is best reflected in the banking sector which after all is as candid a mirror of a country's economy as you could ever find. Most of the Indian Financial intermediaries have been keeping pace with the deepening market economy , riding the opportunity that come along with reforms even as they brace themselves for increased competition both foreign and private by strengthening prudential norms and leveraging

technology to ensure that growth engine hums smoothly along the essential function of a bank is to provide services related to the storing value of value and the extending credit. The evolution of banking dates back to the earliest writing , and continues in the present where a bank is a financial institution that provides banking and other financial services. Currently the term bank is generally understood an institution that holds a banking license. Banking licenses are granted by financial supervision authorities and provide rights to conduct the most fundamental banking services such as accepting deposits and making loans. There are also financial institutions that provide certain banking services without meeting the legal definition of a bank ,a so called non-bank. Banks are a subset of the financial services industry.

The word bank is derived from the italian banca, which is derived from German and means bench. The terms bankrupt and "broke" are similarly derived from banca rotta, which refers to an out of business bank, having its bench physically broken. Money lenders in Nothern Italy originally did business in open areas , or big rooms, with each lender working from his own bench or table. Typically, a bank generates profits from transaction fees on financial services or the interest spread on resources it holds in trust for clients while paying theme interest on the asset.

Services typically offered by the banks -

Although the type of services offered by a bank depends upon the type of bank and the country, services provided usually include :

Directly take deposits from the general public and issue checking and saving accounts. Lend out money to companies and individuals (see money lender) Cash checks. Facilitate money transactions such as wire transfers and cashier's checks. Issue credit cards, ATM, and debit cards and online banking. Storage of valuables , particularly in a safe deposit box.

1.1.6 Technology In Banking :

Technology will bring fundamental shift in functioning of banks. It would not only help them bring improvements in their internal functioning but also enable them to provide better customer service. Technology will break all boundaries and encourage cross border banking business. Banks would have to undertake extensive Business Process Re-Engineering and tackle issues like a) how best to deliver products and services to

customers. b) designing an appropriate organizational model to fully capture the benefits of technology and business process changes brought about. c) how to exploit technology for deriving economies of scale and how to create cost efficiencies, and d) how to create a customer - centric operation model.

Entry of ATMs has changed the profile of front offices in bank branches. Customers no longer need to visit branches for their day to day banking transactions like cash deposits, withdrawals ,cheque collection , balance enquiry etc. E- banking and Internet banking have opened new avenues in "convenience banking".

Technology solutions would make flow of information much faster, more accurate and enable quicker analysis of data received. This would make the decision making process faster and more efficient. For the Banks, this would also enable development of appraisal and monitoring tools which would make credit management much more effective. The result would be a definite reduction in transaction costs, the benefits of which would be shared between banks and customers.

One area where the banking system can reduce the investment costs in technology applications is by sharing of facilities. We are already seeing banks coming together to share ATM Networks. Similarly, in the coming years , we expect to see banks and FIs coming together to share facilities in the area of payment and settlement, back office processing, data warehousing , etc. While dealing with technology , banks will have to deal with attendant operational risks. This would be a critical area the Bank management will have to deal with in future.

Payment Settlement system is the backbone of any financial market place. The present Payment and Settlement systems such as Structured Financial Messaging System( SFMS) , Centralised Funds Management System(CFMS) , Centralised Funds Transfer System (CFTS) and Real Time Gross Settlement System( RTGS) will undergo further fine- tuning to meet international standards. Needless to add, necessary security checks and controls will have to be in place. In this regard, Institutions such as IDRBT will have a greater role to play.

1.1.7 Industry Profile :

Without a sound and effective banking system in India it cannot have a healthy economy. The banking system of India should not only be hassle free but it should be able to meet new challenges posed by the technology and any other external and internal factors.

For the past three decades India's banking system has several outstanding achievements to its credit. The most striking is its extensive reach. It is no longer confined to only metropolitans or cosmopolitans in India. In fact , Indian banking system has reached even to the remote corners of the country. This is one of the main reasons of India's growth process.

The government regular policy for Indian banks since 1969 has paid rich dividends with the nationalization of 14 major private banks of India.

Not a long ago, an account holder had to wait for hours at the bank countries for getting a draft or for withdrawing his own money. Today,, he has a choice. Gone are days when most efficient bank transferred money from one branch to other in two days. Now it is simple as instant messaging or dial a pizza. Money have become the order of the day.

The first bank in India , though conservative, was established in 1786. From 1786 till today, the journey of Indian Banking System can be segregated into three distinct phases. They are as mentioned below :

Early phase from 1786 to 1969 of Indian Banks. Nationalisation of Indian Banks and up to 1991 prior to Indian banking sector Reforms. New phase of Indian Banking System with the advent of Indian Financial & Banking

Sector Reforms after 1991.

Phase 1

The General Bank of India was set up in the year 1786. Next came Bank of Hindustan and Bengal Bank.. The East India Company established Bank of Bengal(1809) , Bank of Bombay(1840) and Bank of Madras( 1843) as independent units and called it Presidency Banks. These three banks were amalgamated in 1920 and Imperial Bank of India was established which started as private shareholders banks, mostly European shareholders.

In 1865 Allahabad bank was established and first time exclusively by Indians , Punjab , National Bank Ltd. was set up in 1894 with headquarters at Lahore. Between 1906 and 1913, Bank of India, Central Bank of India, Bank of Baroda, Canara Bank, Indian Bank and Bank of Mysore were set up. Reserve Bank of India came in 1935.

During the first phase the growth was very slow and banks also experienced periodic failures between 1913 and 1948. There were approximately 1100 banks, mostly small. To streamline the functioning and activities of commercial banks, the Government of India came up with The Banking Companies Act,1949 which was later changed to Banking Regulation Act 1949 as per amending Act of 1965 (Act No.23 of 1965). Reserve Bank of India was vested with extensive powers for the supervision of banking in India as the Central Banking Authority.

Phase 2

Government took major steps in this Indian Banking Sector Reform after independence. In 1955 , it nationalised Imperial bank of India with extensive banking facilities on a large scale especially in rural and semi urban area. It formed State Bank of India to act as the principal agent of RBI and to handle banking transactions of the Union and State Governments all over the country.

Seven banks forming subsidiary of State Bank of India was nationalised in 1960 on 19th July,1969. 14 major commercial banks in the country was nationalised. This step brought 80% of the banking segment in India under Government ownership.

Phase 3

This phase has introduced many more products and facilities in the banking sector in its reforms measure, In 1991, a committee was set up by his name which worked for the liberalisation of banking practices.

The country is flooded with foreign banks and their ATM stations. Efforts are being put to give a satisfactory service to customers. Phone banking and net banking is introduced. The entire system became more convenient and swift. Time is given more importance than money.

The financial system of India has shown a great deal of resilience. It is sheltered from any crisis triggered by any external macroeconomics shock as other East Asian Countries suffered. This is all due to a flexible exchange rate regime, the foreign reserves are high, the capital account is not yet fully convertible, and banks and their customers have limited foreign exchange exposure.

1.2 Problem Identified :

Even though the technology updation has been adopted in Internet banking, still the customers are unaware about the updation of technology and the reason for the technology updation. Some of the customers are not using the branch networks, and ATM facilities. Only educated people are aware about the internet banking facilities and the procedures to access their account online. Even among the educated people, some of them are still feeling insecure about performing the transactions through net banking facilities provided by the banks. The bank doesn't take any actions to make aware their customers to use the internet banking facility or to increase the satisfaction level among their customers.

1.3 Need Of Study :

This study analyses about the need for internet banking facility offered by banks to their customers. The specific online facilities include fund transfer, online bill payment, balance enquiry and the most of the other activities related to the customer's bank account.

These were implemented to overcome the problems associated with traditional banking system, which includes time delay in transactions, need of physical presence of customers, and more paper work for bankers and so on.

This study has been mainly carried out to intimate the changes, updations in internet banking facility. This study makes contributions by showing how the current internet banking facilities contribute in increasing the efficiency of the banking operations and also focuses on the acceptance level among the Customers for Internet banking. Hence, it is necessary to conduct a study to know whether the implementation of Internet Banking has served the purpose or not.

1.4 Objectives Of Study :

1.4.1 Primary Objectives

To study the effectiveness of the Internet Banking In India.

1.4.2 Secondary Objectives

To study on current internet banking facilities provided by banks. To study the usage level of the Internet banking facilities by customers. To study the improvement of efficiency of banking operations obtained by internet

banking. To notify the changes needed from customer view in existing internet banking facilities.

CHAPTER 2 - LITERATURE SURVEY

2.1 Review Of Literature

Online banking is the latest in the series of technological wonders of the recent past. ATMs, Tele Banking , Internet Banking , Credit Cards and Debit Cards have emerged as effective delivery channels for traditional banking products. Internet or Electronic or online baking is the newest delivery channel to be offered by retail banks in many developed countries, and there is a wide agreement that this channel will have a significant impact on the market. Banks know that the internet opens up new horizons for them and moves them from local to global frontiers. Online banking refers to systems that enable bank customers to get access to their accounts and general information on bank products and services through the use of bank's websites, without the intervention or inconvenience of sending letters, faxes , original signatures and telephone confirmations.

In its simplest form, electronic banking may mean the provision of information about the bank and its products via a page on the internet. It is the types of services through which bank customers can request information and carry out most retail banking services such as balance reporting, inter-account transfers, bill payment, etc via a telecommunication network without leaving their homes or organizations. In essence, it is an electronic consumer interface and an alternative channel of distributions. Online banking has been regarded as the most important way to reduce cost and maintain or enhance services for consumers. It provides universal connection from any location worldwide and its universally accessible from any internet linked computer. It is a process of innovation whereby customers handle their own banking transactions without visiting bank tellers.

2.1 E- Banking In India

Information technology is considered as the key driver for the changes taking place around the world. According to Heikki, the transformation from the traditional banking to e-banking has been a 'leap' change. The evolution of e-banking started from the use of Automatic Teller machines( ATMs) and telephone banking (tele-banking), direct bill payment, electronic fund transfer and the revolutionary online banking. The future of electronic banking would be more interactive i.e TV banking . Finland is the first country in the world to have taken a lead in e-banking. In India , ICICI Bank initiated e-banking services during 1997 under the brand name 'Infinity'. It has been forecasted that among all categories, online baking is the future of electronic financial transactions. The rise in e-commerce and internet in enhancing online security transformation and sensitive information has been the core reason for the penetration of online banking in everyday life. The shift towards the involvement of the customers in the financial service with the help of technology ,especially internet, has helped in reducing costs of

financial institutions as well as clients / customers who use the service at anytime and from virtually anywhere with access to an internet connection.

2.3 Company Profile In Online Banking

Where ALLAHABAD BANK was?

In early 1990’s more than 7000 branches were using traditional manual procedures.

These manual procedures were inherited from the Imperial Bank.

Traditional procedures were evolved over decades

Very few changes were brought in those procedures as per the need of time.

In that time, mainframe or mini computers were used for MIS, RECONCILLATION &

FUND SETTLEMENT PROCESS, or we can say that for backhand operations purpose.

Changes brought in Information Technology by ALLAHABAD BANK :-

In the next decade internet facility was provided for individuals

All ALLAHABAD BANK branches were connected and ATM’S were launch

2001 - KMPG appointed consultant for preparing IT Plan for the Bank.

Later on Core banking proposed by the IT consultancy company.

2002 – All branches computerized but on decentralized systems, there the initiative of

core banking took place

2008- more than 6500 branches (95% of business) on Core Banking Solution (CBS)

Internet Banking facility for Corporate customers were also launched in early 2008

More Interfaces developed with e-Commerce & other sites through alternate channels

like ATM & Online Banking

All Foreign Offices were brought on Centralized Solution

Large network is playing the role of backbone for connectivity across the country

Multiple Service Providers are providing the links – BSNL, MTNL, Reliance, Tata &

reliance which are making the system errorless and provide high speed.

Multiple Technologies to support the networking infrastructure – Leased lines, Dial-up,

CDMA & VSAT

CBS - Core Banking System Components

Online ALLAHABAD BANK (www.allbankonline.in)

Allahabad Bank is one of India’s largest bank with a branch network of over 11000 branches

and 6 associate banks located even in the remotest parts of India. Allahabad Bank offers a wide

range of banking products and services to corporate and retail customers.

Online Allahabad Bank is the Internet banking portal for . The portal provides anywhere,

anytime, online access to accounts for Retail and Corporate customers. The application is

developed using the latest cutting edge technology and tools. The infrastructure supports

unified, secure access to banking services for accounts in over 11,000 branches across India.

2.4 Services And Products

RETAIL BANKING:-

The Retail banking application is an integration of several functional areas, and enables

customers to:

Issue Demand Drafts online

Transfer funds to own and third party accounts

Credit beneficiary accounts using the VISA Money Transfer, RTGS/NEFT feature

Generate account statements

Setup Standing Instructions

Configure profile settings

Use eTax for online tax payment

Use ePay for automatic bill payments

Interface with merchants for railway and airline reservations

Avail DEMAT and IPO services

CORPORATE BANKING:-

The Online corporate banking application provides features to administer and manage

corporate accounts online. The corporate module provides roles such as Regulator, Admin,

Uploader, Transaction Maker, Authorizer, and Auditor. These roles have access to the following

functions:

Manage users, define rights and transaction rules on corporate accounts

Access accounts in several branches with a single sign-on mechanism

Upload files to make bulk transactions to third parties, supplier, vendor and tax

collection authorities.

Use online transactional features such as fund transfer to own accounts, third party

payments, and draft issues

Make bill payments over the Internet.

Authorize, modify, reschedule and cancel transactions, based on rights assigned to the

user

Generate account statement

Enquire on transaction details or current balance

Value added services:

Tax payments to central and state governments through site to site integration.

Supply Chain Finance( e-VFS- Electronic Vendor Finance Scheme)

Direct Debit Facility

E Collection Facilities for:

Core Banking Transactions

Internet Bank transactions for incoming RTGS/NEFT Transactions

Internet banking transactions for Allahabad Bank customers and associate banks

Debit facility where suppliers can directly debit their customer’s account through

internet banking

PRODUCTS AND SERVICES:-

E-Ticketing

Allahabad Bank E-Tax

Bill Payment

RTGS/NEFT

E-Payment

Fund Transfer

Third Party Transfer

Demand Draft

Cheque Book Request

Account Opening Request

Account Statement

Transaction Enquiry

Demat Account Statement

Donation

2.5 SWOC Analysis ( Strength, Weaknesses , Opportunities , Challenges )

Strengths :

Greater reach to customers . Quicker time to market . Ability to introduce new products and services quickly and successfully. Ability to understand its customers’ needs. Customers are given access to information easily across any location. Greater customer loyalty . Easy online application for all accounts, including personal loans and mortgage. 24 hours account access.

Quality customer service with personal attention.

Weaknesses:

Lack of awareness among the existing customers regarding Online banking. Obsolesce of technology take place very soon specially in terms of security on internet. Procedure for applying for ID and password for using services related to Online banking

takes time. Lack of knowledge is found regarding in Online banking in employees of Allahabad Bank Implementation of newer technology is little bit complicated Employees needs training to obtain knowledge regarding Internet-banking.

Opportunities:

Approximately 95% of customers are not using internet banking. Core competency can be achieved in terms of banking if focus is made on awareness of

internet banking Can become 1st virtual bank of India. Concentration of various services should be made using internet banking

Challenges:

Maintaining Business Edge over competitors in the context of sameness in IT infrastructure

Multiple vendor support is necessary for working of highly complex technology Maintaining secured IT infrastructure for business operations Alternative must be there in case of failure of system

CHAPTER 3 -ANALYSIS AND FINDINGS

3.1 Type Of Project - Survey Type

This includes designing questionnaire for collection of data through collection of data from target respondents, processing and analyzing the data and arriving at conclusions.

3.2 Target Respondents

The target of 150 respondents from the following group has been taken for the study.

Target Group :

The study is based on the sample drawn from the customers of ALLAHABAD BANK providing the internet banking facility.

3.3 Area Of Research

The area of research is ALLAHABAD BANK that have adopted Online Banking. Research is about to be conducted to the bank customers and staffs with the sample size of 150.

3.4 Tools for Analysis

The following tools are used for the data analysis -

Percentage Analysis from Survey Report 12-13 Chi - Square Analysis

3.5 Data Analysis & Interpretation

Table 1 - Age of Respondents

Serial Number Age No. Of Respondents Percentage1 18-25 63 422 25-35 57 383 35-45 27 184 > 45 3 2

Total 150 100

Figure 1 - Age Of Respondents

Interference :

From the above chart 42% of the respondents 18-25 age, 38% of the respondents 25-35age, 18% of the respondents 35-45age , 2% of the respondents >45 and none of the respondents are greater than 44.

Table 2 - Gender of Respondents

Serial Number Gender No. Of Respondents Round Off Percentage

1 Male 122 812 Female 28 19

Total 150 100

Figure No 2 - Gender Of Respondents

Interference :

From the above chart we found 81% of the respondents are male and 19% of the respondents are female.

Table No.3 - Education Level Of Respondents

Serial Number Particulars No. Of Respondents Percentage

1 10th 6 42 12th 9 63 U.G 87 584 P.G 48 32

Total 150 100

Figure No. 3 - Education Level Of Respondents

Interference :

From the above chart 4% of the respondents 10th , 6% of the respondents 12th , 58% of the respondents U.G, and 32% of the respondents P.G.

Table 4 - Occupation Of Respondents

Serial Number Particulars No. Of Respondents Percentage

A Student 45 30B Government

Employee12 8

C IT Sector 60 40D Other Private Sectors 33 22

Total 150 100

Figure No.4 - Occupation Of Respondents

Interference :

From the above chart 30% of the respondents are Students , 8 % of the respondents Government employee, 40% of the respondents IT sector, and 22% of the respondents other private sectors.

Table No.5 - Monthly Income Level Of Respondents

Serial Number Particulars No. Of Respondents PercentageA <5000 6 4B 5001 - 8000 36 24C 8001 - 12000 33 22D 12001 - 15000 30 20E >15000 45 30

Total 150 100

Figure No.5 - Monthly Income Level Of Respondents

Interference :

From the above chart 4% of the respondents are having monthly income <5000 , 24% of the respondents are having monthly income between 5001-8000 , 22% of the respondents are having monthly income between 8001-12000 , and 20% of the respondents are having monthly income between 12001-15000, and 30% of the respondents are having monthly income >15000.

Table No.6 - Span Of Bank Account Held By the Respondents

Serial Number Particulars No. Of Respondents PercentageA <1 Yr 9 6B 1yr - 3yrs 72 48C 3yrs - 5yrs 57 38D >5yrs 12 8

Total 150 100

Figure No.6 - Span Of Bank Account Held By the Respondents

How long you have a bank account ?

Interference :

From the above chart 6% of the respondents <1Yr, 48% of the respondents 1yr-3yr , 38& of the respondents 3yrs - 5yrs, and 8% of the respondents >5yrs.

Table No.7 - Projection Of Level Of Internet Banking Usage

Serial Number Particulars No. Of Respondents Percentage1 Yes 93 622 No 57 38

Total 150 100

Figure No.7 - Projection Of Level Of Internet Banking Usage

Do you use Internet Banking ?

Interference :

From the above chart,62 % said Yes and 38% said No.

Table No.8 - Span Of Online Account Usage

How long you have an online account?

Serial Number Particulars No. Of Respondents PercentageA < 1 Yr 35 38B 1 Yr - 2Yr 26 28C > 2 Yrs 32 34

Total 93 100

Figure No.8 - Span Of Online Account Usage

Interference :

From the above chart 38% of the respondents <1Year , 28% of the respondents1yr - 2 yrs, and 34% of the respondents >2yrs.

Table No.9 - Frequency Of Internet Banking Usage

Serial Number Particulars No. Of Respondents Percentage1 More than once a

week43 46.23656

2 Once a week 20 21.505383 Once every 2 weeks 10 10.752694 Once a month 10 10.752695 Other 10 10.75269

Total 93 100

Figure No.9 - Frequency Of Internet Banking Usage

Interference :

From the above chart 50% of the respondents are more than once a week, 20% of the respondents are once a week, 10% of the respondents are once every 2weeks, 10% of the respondents are once a month and 10% of the respondents are other.

Table No.10 - Online Services Used By the Respondents

Which of the following services used by you through the on-line banking systems ?

Serial Number Particulars No. Of Respondents

Percentage

1 Online Bill Payment 35 37.63442 Fund Transfer 17 18.27953 Cheque Book Application 5 5.376344 Summary Reports of

Transaction10 10.7526

5 Accounts Information & Balance Enquiry

10 10.7526

6 Share Margin Trading Account 16 17.20430Total 93 100

Figure No.10 - Online Services Used By the Respondents

Interference :

From the above chart 35% of the respondents are online bill payment, 20% of the respondents are fund transfer, 5% of the respondents are checkbook application, 10% of the respondents are Summary reports of transactions and 10% of the respondents are account information and balance enquiry, 10% of the respondents are Share margin trading account, 10% of the respondents are none.

Table No.11 - Opinion on Easy Conduct Of Transaction through Internet Banking

Serial Number Particulars No. Of Respondents Percentage1 Strongly Agree 8 82 Agree 48 523 Neutral 17 204 Disagree 20 205 Strongly Disagree 0 0

Total 93 100

Figure No.11 - Opinion on Easy Conduct Of Transaction through Internet Banking

Interference :

From the above chart 8% of the respondents are strongly agree, 52% of the respondents are Agree , 20% of the respondents are neutral, 20% of the respondents Disagree and 0% of the respondents Strongly disagree.

Table No.12 - Opinion on Elimination of Timing Constraints through Internet Banking

Serial Number Particulars No. Of Respondents Percentage1 Strongly Agree 35 382 Agree 35 383 Neutral 15 164 Disagree 4 45 Strongly Disagree 4 4

Total 93 100

Figure No.12 - Opinion on Elimination of Timing Constraints through Internet Banking

Interference :

From the above chart 39% of the respondents strongly agree,38% of the respondents Agree, 15% of the respondents Moderate, 4% of the respondents Disagree and 4% of the respondents Strongly Disagree.

CHAPTER 4 - CONCLUSION AND RECOMMENDATIONS

Analysis shows that even though the Online Banking facility is having many advantages, it is not utilized by many people. It shows that the younger generation people are more likely to use the Internet banking facilities when compared to the middle age and old age people. It is due to the unawareness of the customers towards the internet banking facility. Also, the people are finding difficulties in using the Internet banking websites which had created an aversion in them towards net banking. This can be overcome if the banks conduct sessions on the various features provided in their Online banking web sites. Even the younger generation people are feeling insecure to use the online transaction facilities provided by the banks. The internet banking technology should be made more secure so as it to eliminate the constraint among the customers.