commerce project 3rd year

8/16/2019 Commerce Project 3rd Year

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UNIVERSITY OF CALCUTTA

Project Report [Submitted for the Degree Of B.Com.Honours In Accounting & Finance /Marketing / under the !ni"ersit# ofCa$cutta%

it$e of the 'ro(ect

O)*I)+ BA),I)-

Submitted by

Name of the Candidate: Subham Agara$. Registration No.: 012003023045203

Name of the College: he Bhaani6ur +ducation Societ# Co$$ege. College Roll No.: 0003714

Supervised by

Name of the Supervisor: Prof. Dipparna Jana

Name of the College: he Bhaani6ur +ducation Societ#Co$$ege.

onth ! "ear of Submission: J#NR$#R" 304.

1


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Su6er"isor8s Certi9cate

This is to certify that r. Subham #gar%al, a student of B.Com. Honours inAccounting & Finance of &he 'ha%aipur (ducation Society College under the

University of Calcutta has worked under my suervision and guidance for his

!ro"ect #ork and reared a !ro"ect $eort with the title %)N*+N( '#N,+N-

which he is su'mitting, is his genuine and original work to the 'est of my

knowledge.

!lace( ,olata Signature:

Date: Name: Dipparna Jana

Designation:

Name of College: &he 'ha%anipur

(ducation Society College

2


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Student8s Dec$aration

) here'y declare that the !ro"ect #ork with the title %*+)+- BA+)+/

su'mitted 'y me for the artial fulfillment of the degree of B.Com. Honours in

Accounting & Finance under the University of Calcutta in my original work and

has not 'een su'mitted earlier to any other University for the fulfillment of the

re0uirement for any course of study.

) also declare that no chater of this manuscrit in whole or in art has 'een

incororated in this reort from any earlier work done 'y others or 'y me.

However, e1tracts of any literature which has 'een used for this reort has 'een

duly acknowledged roviding details of such literature in the references.

!lace( ,olata Signature(

Name( 2u'ham Agarwal.

Date: Address: Behind LICI Building Ne

!a"#et$ !%&% !a"g &angt'#$ Si##i(

Registration No( 3456447467489647

Roll No( 3434473:58

)


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ACKNOWLEDGEMENT

The satisfaction that accomanies that the successful comletion of any task

would 'e incomlete without the mention of eole whose careless co6ororation

made is ossi'le, whose constant guidance and encouragement crown all efforts

with success.

) would like to thanks our !rincial and my suervisor Prof. Dipparna Jana

for their consistent guidance, insiration and constructive suggestions that hel mein rearation of the !ro"ect on *+)+- BA+)+/.

) thank my colleagues who have heled in successful comletion of this

ro"ect.

) also thank Calcutta University for giving us the oortunity to make this

ro"ect.

*


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I)D+: L. NO. TOPIC PAGE NO.

E+ECUTIVE SU!!ERY ,

1% CHA'+; I - INTRODUCTION ./1)

/0hat i 'nline an#ing3 .

/Featu"e '4 Online Ban#ing3 ./5

/6it'"7 '4 'nline an#ing% 5

/6it'"7 '4 'nline an#ing in India% 8

/ADVANTA&ES OF ONLINE BAN9IN& 8

/DISADVANTA&ES OF ONLINE BAN9IN& 8/1

/06AT IS E/CO!!ERCE3 1/11

/O;;ORTUNITIES OF ONLINE BAN9IN& 11

/C6ALLEN&ES OF ONLINE BAN9IN& IN INDIA 11/12

/;ROBLE! RELATIN& TO ONLINE BAN9IN& 12/1)

2% CHA'+;2II - OB


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)% CHA'+;2 III - CONCE;TUAL FRA!E0OR9 1=/18

*% CHA'+;2I< - DATA ANALYSIS 2/2,

=% CHA'+;2


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This project will help us to understand how the online banking came into eistenceand its need in modern world. It shows us the insights of the online banking in India. Itshows us the insight of online banking in India. It helps us to understand the opportunityand the challenges related to online banking sector in India.

CHAPTER : IINTRODUCTION

WHAT IS ONLINE BANKING?

.


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Online banin! is an electronic payment system that enables customers of a financialinstitution to conduct financial transactions on a website operated by the institution,such as a retail bank, virtual bank, credit union or building society. !nline banking is

also referred as In"e#ne" banin!, e$banin!, %i#"&al banin! and by other terms.

To access a financial institution"s online banking facility, a customer with Internet accesswould need to register with the institution for the service, and set up some password#under various names$ for customer verification. The password for online banking isnormally not the same as for telephone banking. %inancial institutions now routinelyallocate customers numbers #also under various names$, whether or not customershave indicated an intention to access their online banking facility. Customers" numbersare normally not the same as account numbers, because a number of customeraccounts can be linked to the one customer number. The customer can link to thecustomer number any account which the customer controls, which may be che&ue,

savings, loan, credit card and other accounts. Customer numbers will also not be thesame as any debit or credit card issued by the financial institution to the customer.

To access online banking, a customer would go to the financial institution"s securedwebsite, and enter the online banking facility using the customer number and passwordpreviously setup. Some financial institutions have set up additional security steps foraccess to online banking, but there is no consistency to the approach adopted.

!nline banking facilities offered by various financial institutions have many features andcapabilities in common, but also have some that are application specific.

'EATURES O' ONLINE BANKING(

The common features fall broadly into several categories'

( bank customer can perform non)transactional tasks through online banking,including )

• viewing account balances

• viewing recent transactions

• *ownloading bank statements, for eample in +*% format

• viewing images of paid che&ues

5

http://en.wikipedia.org/wiki/Electronic_payment_systemhttp://en.wikipedia.org/wiki/Financial_institutionhttp://en.wikipedia.org/wiki/Financial_institutionhttp://en.wikipedia.org/wiki/Financial_transactionhttp://en.wikipedia.org/wiki/Telephone_bankinghttp://en.wikipedia.org/wiki/Bank_statementhttp://en.wikipedia.org/wiki/PDFhttp://en.wikipedia.org/wiki/PDFhttp://en.wikipedia.org/wiki/Chequehttp://en.wikipedia.org/wiki/Financial_institutionhttp://en.wikipedia.org/wiki/Financial_institutionhttp://en.wikipedia.org/wiki/Financial_transactionhttp://en.wikipedia.org/wiki/Telephone_bankinghttp://en.wikipedia.org/wiki/Bank_statementhttp://en.wikipedia.org/wiki/PDFhttp://en.wikipedia.org/wiki/Chequehttp://en.wikipedia.org/wiki/Electronic_payment_system


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• ordering che&ue books

• *ownload periodic account statements

• *ownloading applications for )banking, -)banking etc

.

ank customers can transact banking tasks through online banking, including )

• %unds transfers between the customer"s linked accounts

• +aying third parties, including bill payments #see, e.g., +(/$ and thirdparty fund transfers#see, e.g., %(ST$

• Investment purchase or sale

• 0oan applications and transactions, such as repayments of enrollments

• Credit card applications

• 1egister utility billers and make bill payments

• %inancial institution administration

• anagement of multiple users having varying levels of authority

• Transaction approval processthe process of banking has become muchfaster

Some financial institutions offer uni&ue Internet banking services, for eample'

• +ersonal financial management support, such as importing data into personalaccounting software. Some online banking platforms support account aggregation toallow the customers to monitor all of their accounts in one place whether they arewith their main bank or with other institutions.

HISTORY O' ONLINE BANKING(

The precursor for the modern home online banking services were the distance banking

services over electronic media from the early 2345s. The term "!nline" became popular

8

http://en.wikipedia.org/wiki/Girohttp://en.wikipedia.org/wiki/Electronic_bill_paymenthttp://en.wikipedia.org/wiki/Electronic_bill_paymenthttp://en.wikipedia.org/wiki/BPAYhttp://en.wikipedia.org/wiki/Electronic_fund_transferhttp://en.wikipedia.org/w/index.php?title=Fast_And_Secure_Transfers&action=edit&redlink=1http://en.wikipedia.org/wiki/Account_aggregationhttp://en.wikipedia.org/wiki/Girohttp://en.wikipedia.org/wiki/Electronic_bill_paymenthttp://en.wikipedia.org/wiki/BPAYhttp://en.wikipedia.org/wiki/Electronic_fund_transferhttp://en.wikipedia.org/w/index.php?title=Fast_And_Secure_Transfers&action=edit&redlink=1http://en.wikipedia.org/wiki/Account_aggregation


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in the late "45s and referred to the use of a terminal, keyboard and T6 #or monitor$ to

access the banking system using a phone line. "7ome banking" can also refer to the use

of a numeric keypad to send tones down a phone line with instructions to the bank.

!nline services started in 8ew /ork in 2342 when four of the city"s major banks

#Citibank, Chase anhattan,Chemical and anufacturers 7anover $ offered home

banking services using the videote system.

HISTORY O' ONLINE BANKING IN INDIA)((

ICICI bank #I8*9ST1I(0 C1-*IT (8* I86-ST-8T C!1+!1(TI!8 !% I8*I($ is

the largest private sector bank in India. ICICI is the first ban to introduce online banking

service in India.

Today ICICI bank has many online banking services in India. These services are called

ICICI 8-T (8:I8;.

ADVANTAGES O' ONLINE BANKING(

It"s generally secure. ut make sure that the website you"re using has a valid security

certificate. This let"s you know that the site is protected from cyber)thieves looking to

steal your personal and financial information

.

• /ou have twenty)four)hour access.


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review interest rates and gather other important information that may be spreadout over several different brochures in the local bank.

DISADVANTAGES O' ONLINE BANKING(

• /es, online banking is generally secure, but it certainlyisn"t always secure. Identity theft is running rampant, and banks are by no meansimmune. (nd once your information is compromised, it can take months or evenyears to correct the damage, not to mention possibly costing you thousands ofdollars, as well.

• Some online banks are more stable than others. 8ot all online setups are anetension of a brick)and)mortar bank. Some operate completely in cyberspace,

without the benefit of an branch that you can actually visit if need be.


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processing, electronic data interchange#-*I$, inventory management systems, andautomated data collection systems. odern electronic commerce typically usesthe


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• Shopping cart software

• Teleconferencing

• -lectronic tickets

• Social networking

• Instant messaging

OPPORTUNITIES O' ONLINE BANKING

Timmers #>555$ supports this view, highlighting the key features of the Internetsuch as

>?hour availability, almost immediate access, and the absence of physical borders.

Indeed, the Internet has been one of the key drivers in promoting -)Commerce in thebanking sector#@eevan, >555$. The opportunities for banks in the Internet arena are

varied #Stamoulis, >555$.*espite this plethora of opportunities, threats to the e)banks

abound. !ne major threat to banks is theAInternet onlyB virtual banks.

million, one can set up a fully)functional ,Internet !nly bank and provide payment

services on the Internet. The Internet banks serve also as gateways offering

identification and authorization services toa number of third party service providers.

There are user)friendly opportunities for conducting business over the Internet with

telephone companies, -nergy Company, ta board and other institutions. *emand for

those services influences also the usage rates of Internet banks. %or eample in >55> in

9S(, 424DE private individuals submitted electronic ta declarationsE3E>E of them did itthrough Internet banks and >2?5 through

ta boards own home page.

#>5.FG of declarations were submitted electronically$. This is increasing the benefits of

Internet banks for the consumers and is a win)win situation for the banks and service

providers.

Several studies including Schultz et al. #>552$ suggest that security measures that are

inconvenient for users may weaken -)anking prospect, for eample because of lack of

user acceptance or outright resistance .7ere we note some challenges of -lectronic

banking systems #7. C. 0au H -tal, >552$

CHALLENGES O' ONLINE BANKING IN INDIA

ased on best practices in developed countries, 9nited 8ations Conference on Trade>

and *evelopment #98CT(*$ report has identified four challenges that developing

1)

http://en.wikipedia.org/wiki/Shopping_cart_softwarehttp://en.wikipedia.org/wiki/Teleconferencinghttp://en.wikipedia.org/wiki/Electronic_tickethttp://en.wikipedia.org/wiki/Social_networking_servicehttp://en.wikipedia.org/wiki/Instant_messaginghttp://en.wikipedia.org/wiki/Shopping_cart_softwarehttp://en.wikipedia.org/wiki/Teleconferencinghttp://en.wikipedia.org/wiki/Electronic_tickethttp://en.wikipedia.org/wiki/Social_networking_servicehttp://en.wikipedia.org/wiki/Instant_messaging


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countries, in general ,are epected to overcome to achieve the advantages that e)

banking initiatives can bring about #98CT(* >55>$'

• The ability to adopt global technology to local re&uirement .(n ade&uate level of

infrastructure and human capacity building are re&uired before developing

countries can adopt the global technology for their local re&uirements• The ability to strengthen public support for e)finance' 7istorically, most e)finance

initiatives in developing countries have been the result of cooperative efforts

between the private and public sectors.• The ability to create a necessary level of regulatory and institutional frameworks'

The lack of regulatory frameworks, trust, security and privacy standards, high

trade barriers, customer and investor protections impede progress in

implementing e)banking initiatives on a larger scale in many developing

countries.

• The ability to mainstream small and medium scale enterprises#S-s$ towards e)

banking' The availability of and access to &uality data and banking information is

re&uired for S-s in developing countries to move towards e)banking.

+1!0- 1-0(TI8; T! !80I8- (8:I8;.

• Pa--.+#/-: The key to protecting your Internet banking account is protecting

your password. 9sing a strong password )) one that contains mied)case letters,

numbers, and even symbols if the bank allows it )) will decrease the likelihood of

a hacker cracking the password and gaining access to your account. /ou should

also ensure that the password to access your companyJs accounts is not the

same as any other password you use, since not every site maintains the same

level of security a bank does. If a hacker manages to steal a password from an

insecure site, he can access any account that password unlocks.

P0i-0in!: !ne of the primary methods a hacker gains access to account

information is through phishing, or tricking the victim into giving up the

information voluntarily. ( hacker might send an e)mail or even call, pretending to

be a representative of the bank and informing you about some irregularities with

your account. (ll you need to do to sort things out is to provide your password or

other account information to verify your identity. If you ever receive acommunication that appears to be from your bank and re&uests this type of

information, contact your bank by phone immediately. *o not give out account

information to a caller, and do not click any links provided in any e)mails that

claim to be from your bank. /ou should also ensure that any employees with

access to the companyJs accounts follow the same procedures.

1*


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Ke1l+!!e#-: :eyloggers are malware programs that record keystrokes and other

data, allowing a hacker to capture your password as you enter it. aintaining up)

to)date antivirus suites on your company computers can prevent these malicious

programs from gaining a foothold, and setting up your networkJs firewall to

monitor outgoing traffic can help you determine when an infection occurs. any

keyloggers and viruses use email to travel from computer to computer, so adding

anti)virus protection to your companyJs email server can help filter out these

attacks.

T.+$'a*"+# A&"0en"i*a"i+n:If your bank offers two)factor authentication,

adopting the technology is a great way to keep your account information safe.

Two)factor authentication re&uires a second code when logging into your

account, either provided by an electronic token, or via message sent to a

registered cell phone or other device. The etra layer of security renders your

password useless to a hacker without the accompanying code.

CHAPTER$II

OB2ECTIVE

• To understand the growth of online banking in India.

• To understand the challenges associated with online banking in India.

• To understand the notion of online banking with respect to customer accessibility.

ethods used in 1-S-(1C7 -T7!0!;/'

o +1I(1/ *(T(

o S-C!8*(1/ *(T(

• +1I(1/ *(T() +rimary data consists of a collection of original data collected

by the researcher. It is often undertaken after the researcher has gained some

insight into issue by reviewing secondary research or by analyzing previously

collected primary data. It can be accomplished through various method, including

&uestionnaire and telephone conversation.The +1I(1/ *(T( used in the conceptual framework of this study is'

1=


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*irect &uestionnaire among people' >K +eople were asked direct

&uestions on !80I8- (8:I8;. Their review is mentioned in JC7(+T-1 IIIJ.

• S-C!8*(1/ *(T() Secondary data is collected by someone other than time

user. Common sources of secondary data are,o Census

o organizational records

o data collection

o through &ualitative methodology or &ualitative research.

CHAPTER$ III:

CONCEPTUAL 'RAMEWORK

2. The main objective of study is to understand the growth of online banking in

India.

• EG of account holders in the country are using the Internet for banking

transactions, while branch banking has fallen by a full 2K percentage

points, according to a report by global management consultancy c:inseyH Company.

• 9se of the Internet for banking has seen a massive rise in the >525)22

survey, taking the overall number of bank consumers who use the 8et to

close to E per cent of the total bank account holders )) a seven)fold jump

since >55E )) even as for the first time in the past 2F years, branch

1,


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banking has come down by a full 2K percentage points during the same

period.• India leads growth in (sia in mobile and Internet usage for banking. 55E, though 3K per cent are seemingly satisfied with their

main banks, says associate partner @atin +ant, adding the average

number of banking relationships across the country rose 23 per cent from

2.? in >55E to 2.E in >522, while the average percentage of people willingto shop around rose 2K, marking a greater willingness of consumers to

vote with their feet and engage with a broader variety of financial

institutions.• anking has almost tripled.= 55E to ?F per cent in >522,

while the percentage of consumers willing to take risks on capital growth

rose by >5 per cent to ?? per cent, up from >? per cent. (t the same time,

the survey says, dissatisfaction too rose with their financial planners.

>. Challenges associated with online banking in India'

0ack of outline plans H sufficient study to perform new technology, 0ack of choose that

how perform technology with the highest efficiency, 0ack of culture and knowledge of

banks about -lectronic banking, 0ack of engagement of banks management in the

system, 0ack of management to use eperts in IT section, Traditional attitude toward

data reengineering, 0ack of economical justification and risk to use -lectronic banking

systems.

C0allen!e- .i"0 3e#4+#,in! -1-"e,

1.


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55>$'

#2$ The ability to adopt global technology to local re&uirements' (n ade&uate level of

infrastructure and human capacity building are re&uired before developing countries can

adopt the global technology for their local re&uirements.

#>$ The ability to strengthen public support for e)finance' 7istorically, most e)finance

initiatives in developing countries have been the result of cooperative efforts between

the private and public sectors.

#F$ The ability to create a necessary level of regulatory and institutional frame works'

The lack of regulatory frameworks, trust, security and privacy standards, high trade

barriers, customer and investor protections impede progress in implementing e)banking

initiatives on a larger scale in many developing countries.

15


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#?$ The ability to mainstream small and medium scale enterprises#S-s$ towards e)

banking' The availability of and access to &uality data and banking information is

re&uired for S-s in developing countries to move towards e)banking. Similarly, on)

line credit in formation will enhance S-s ability to secure financing.

S"a"&-'

The Internet includes all related web)enabling technologies and open

telecommunication networks ranging from direct dial)up, the public


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agreement is entered into by the customer with the bank for using the Internet

banking services. In this way, personal data in the applications forms is being

held by the bank providing the service. The contract details are often one)sided,

with the bank having the absolute discretion to amend or supplement any of the

terms at any time. %or these reasons domestic customers for whom other access

points such as (Ts, tele)banking, personal contact, etc. are available, are often

hesitant to use the

Internet banking services offered by Indian banks. Internet anking, as an additio

nal delivery channel,may, therefore, be attractive M appealing as a value added

service to domestic customers. 8on)resident Indians for whom it is epensive

and time consuming to access their bank accounts maintained in India find net

banking very convenient and useful.• The Internet is in the public domain whereby geographical boundaries are

eliminated .Cyber crimes are therefore difficult to be identified and controlled. In

order to promote Internet banking services, it is necessary that the properlegal infrastructure is in place. ;overnment has introduced the Information

Technology ill, which has already been notified in !ctober >555.Section E> of

the Information Technology (ct, >555 casts an obligation of confidentiality against

disclosure of any electronic record, register, correspondence and information,

ecept for

certain purposes and violation of this provision is a criminal offence. The *epart

ment of Telecommunications #*oT$ is moving fast to make available additional

bandwidth, with the result that Internet access will become much faster in the

future. This is epected to give a fillipto Internet banking in India.

• The proposed setting up of a Credit Information ureau for collecting and sharingcredit information on borrowers of lending institutions online would give a fillip to

electronic banking. The recommendations of the 6asudevan Committee on

Technological 9pgradation of anks in India have also been circulated to banks

for implementation. In this background, banks are moving in for technological

upgradation on a large scale. Internet banking is epected to get a boost from

such developments .

• 1eserve ank of India has taken the initiative for facilitating real time funds

transfer through the 1eal Time ;ross Settlement #1T;S$System. 9nder the

1T;S system,

transmission, processing and settlements of the instructions will be done on a co

ntinuous basis. ;rosssettlement in a real time mode eliminates credit and

li&uidity risks. (ny member of the system will be able to access it through only

one specified gateway in order to ensure rigorous access control measures at

the user level. ;eneric (rchitecture both domestic and cross border, aimed

at providing interconnectivity across banks has been accepted for implementat.1

I reference made this year, in the onetary and Credit +olicy statement of the

2


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;overnor, banks have been advised to develop domestic generic model in their

computerization plans to ensure seamless integration. The abovementioned effor

ts would enable online banking to become more secure and efficient .• K people of and the data of the survey is below.

N9-STI!8)2


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T"aditi'nalOthe"

B'th

2

*,

5

1

12

This shows us the preference of people toward the type of banking. They prefer to use

the services of both the online and traditional banking rather than a particular type.

%rom this survey I came to know that out of >K people, K people prefer traditional

banking, 4 people prefer online banking and 2> people prefer both i.e. online and

traditional banking.

The +eople who are mainly involved in online banking are the people of the age group

of >5)F5 years. They prefer online banking as they are familiar with both the good and

bad points of online banking.

N9-STI!8)>

*o the people think that account is secure in online bankingO

22

TYPE O'

BANKINGTraditional !ther oth

NO( O'

PEOPLEK 4 2>


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YESNO

CANT SAY

2

*,

5

1

12

ajority of the people think that their (ccount is secured, but not all. Their security

concern should be eradicated. This will attract customers.

22 out of >K people think that online is secure because of the following'







•

*ownloading applications for )banking, -)banking etc

E out of >K people think that online banking is not at all secured because'

• +asswords• +hishing• :ey loggers• Two)%actor (uthentication

2)

!+-8I!8 /-S 8! C(8T S(/

8! !% +-!+0- 22 E E

http://en.wikipedia.org/wiki/Bank_statementhttp://en.wikipedia.org/wiki/PDFhttp://en.wikipedia.org/wiki/PDFhttp://en.wikipedia.org/wiki/Chequehttp://en.wikipedia.org/wiki/Bank_statementhttp://en.wikipedia.org/wiki/PDFhttp://en.wikipedia.org/wiki/Cheque


24/31

N9-STI!8)F

*o you think online banking is better than traditional bankingO

YES NO CANT SAY

2

*

,

5

1

12

1*

There are about K out of >K people who donJt think online banking is not better then

traditional banking as they are not familiar with the process of online banking. The

people donJt know the basic positive point of online banking. %or eg. Some people think

that online banking is not secure then traditional banking. +assword can be hacked etc.

There are 2F out of >K people who think that online banking is better than traditional

banking as they know the positive point of online banking. %or eg. The people know that

due to online banking fast access to account can take place, payments can be faster

the usual mode etc.

N9-STI!8)?

7ow fre&uently do you use banking serviceO

2*

!pinion /-S 8! C(8T S(/

8!. !% +-!+0- 2F K E


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ee#l7('nthl7

"egula"l7"ea"l7

2

*

,

5

1

12

TI-

+-1I!*

E

!ut of >K people only K people use their anking service weekly. These are those class

of people who either do their own business or who are involve in business like shop

keeping, tours and travels etc.

!ut of >K people only > people use their banking services regularly. These are those

people who use whose business is totally dependable on banking. -g. ;overnment

Suppliers, Share brokers, (gents of 0IC etc.

!ut of >K only E people use their banking services rarely. These types of people areeither student or whose age limit is below >> years.

N9-STI!8)K

7ow happy are the people with their online banking service provided with their banksO

2=


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C'(?letel7 ;a"tiall7 Fai"l7 N't at all

2

*

,

5

1

The satisfaction level of people with the online banking service of their banks has a

mied review.

%I8*I8;' out of >K people ? people are completely happy with their online anking.

This is due to they know the advantages or advantages of online aking and they

usually involved in internet services. (nd more over these people are basically of the

age group between >5)>K years.

!ut of >K people F are not at all happy with their online bnking service because they are

less involved in Internet service or they do not know how to use internet service at all.

The second reason is that the these F people are very frightened to use there online

service because of the threat involved in online banking like 7acking of accounts,

+hishing etc.

N9-STI!8)D


27/31

Che@# Balan@e;a7(ent

T"an4e" '4 4undOthe"

2

*

,

5

1

12

The utility of the online banking is service is not used to the etent is should be and it is

being majorly used for the purpose of checking the balance in the account. The reason

for this is low volume of transaction among the people.

N9-STI!8)E

;iven the opportunity to shift from traditional anking to !nline anking will the people

prefer to do soO

The survey was done on F5 people who were divided in the age group of >5)?5 years,

?2)D5 years, D5 and above.

etween the age group of >5)?5 years the people were ready to shift from traditional

banking to online banking. !ut of these people also there were many of them who use

online banking from the day of opening of their account. 8o. of people in this category

were 4 out of >K.

2.

Type of

transactio

n

Check

alance

+ayment Transfer

of fund

!ther

8o. of

people

22 E > K


28/31

Read7 t' hi4t

Al"ead7 uing 'nline an#ing

1

2

)

*

=

The advantages that they were knowing about online banking were as follow'







• *ownloading applications for )banking, -)banking etc

.

ank customers can transact banking tasks through online banking, including )

• %unds transfers between the customer"s linked accounts

• +aying third parties, including bill payments #see, e.g., +(/$ and thirdparty fund transfers#see, e.g., %(ST$

25

!nline banking 1eady to shift (lready using

online

banking

8o. of people K F

http://en.wikipedia.org/wiki/Bank_statementhttp://en.wikipedia.org/wiki/PDFhttp://en.wikipedia.org/wiki/PDFhttp://en.wikipedia.org/wiki/Chequehttp://en.wikipedia.org/wiki/Girohttp://en.wikipedia.org/wiki/Electronic_bill_paymenthttp://en.wikipedia.org/wiki/Electronic_bill_paymenthttp://en.wikipedia.org/wiki/BPAYhttp://en.wikipedia.org/wiki/Electronic_fund_transferhttp://en.wikipedia.org/w/index.php?title=Fast_And_Secure_Transfers&action=edit&redlink=1http://en.wikipedia.org/wiki/Bank_statementhttp://en.wikipedia.org/wiki/PDFhttp://en.wikipedia.org/wiki/Chequehttp://en.wikipedia.org/wiki/Girohttp://en.wikipedia.org/wiki/Electronic_bill_paymenthttp://en.wikipedia.org/wiki/BPAYhttp://en.wikipedia.org/wiki/Electronic_fund_transferhttp://en.wikipedia.org/w/index.php?title=Fast_And_Secure_Transfers&action=edit&redlink=1


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• Investment purchase or sale

• 0oan applications and transactions, such as repayments of enrollments

• Credit card applications

• 1egister utility billers and make bill payments

• %inancial institution administration

• anagement of multiple users having varying levels of authority

• Transaction approval process the process of banking has become muchfast

In the age group of ?2)D5 years the people, these people were not ready to changefrom traditional banking to online banking. ut after them a satisfactory reason theywere ready to shift from the traditional to online banking system.

ut some people after giving a satisfactory reason also were not ready to shift fromtraditional to online banking. Some of the reasons that were there not to shift fromtraditional to online banking were)

• +asswords• :ey loggers• +hishing

In the age group of D5 and above the people were not at all ready to shift fromtraditional banking to online as they were not knowing how to internet or were very

scared to do transaction without their physical presence.

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CHAPTER$V

RECOMMENDATIONS AND CONCLUSIOIN

C!8C09SI!8'

The people are not confident enough to weather to relay completely on online

banking. There is hesitation in the mind of people with regard to preference. So they

use both the techni&ue of anking i.e. !nline anking and Traditional anking.

ecause of the compleity and the awareness in the people regarding the online

banking, there is less utilization online banking services provided by the bank.

+eople are not completely sure whether there account is completely secure inonline banking or not. Security concern is the main and the core reason why people

do not tend to use online banking.

+eople in India are not aware of the full utility of online banking and the services that

can be availed of in online banking.

ost of the Indian population are salaries employees who do not have that volume

of transaction that can be used for online transaction.

1-C!-8*(TI!8'

(fter analyzing the entire study on online banking with respect to both the primary and

secondary data the following recommendations can be put forward)

• The infrastructure for the development is not being implemented in the way that

could be beneficial.

• There are various obstacles in the banking scenario with regards to guidelines

and issues for functioning. This has led to decline in the usage of the online

banking service of the bank.

• The people having account can be urge to take up an internet banking facility.

They should be motivated rather than just being told that there eists a service of online banking.

• There are many people who are not aware of all the benefits that they reap out of

the transaction of online banking. They should be a proper awareness among the

people about online banking.

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• ost of the people do not opt for online banking due to the problems of security

concerns. +roper security software should be developed and people should be

convicted that their account are secured in online transactions.

CHAPTER$VI

RE'ERANCES

• (8:S'

ICICI ank 0imited (is ank 0imitedank !f India

• I8T-18-T'

http'MMwww.onlinebanking.net

http'MMwww.sendmoneyindia.org

http'MMwww.ehow.com

http'MMwww.intenetworldstar.com

http'MMwww.economictime.indiatime.com

http'MMwww.indiamba.com

http'MMwww.searchdatacenter.com

• 1-%-1(8C- !!:S

1.:. 9++(0

(8:I8;

commerce project 3rd year

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