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A
Project
On
E-BANKING(THE CHANGING SCENARIO AND EFFECTS)
Submitted To Submitted By
Acknowledgement
1
“Many talented people have contributed to the successful completion of this work and
I would like to extend a word of thanks and appreciation to all of them.”
First, I wish to express my gratitude to all mighty GOD and my family who are a
constant source of inspiration and pillars of support.
I would like to thank Mr. ________________________my project guide, for
providing me the opportunity to complete my Project under his esteemed guidance. I
shall always remain indebted to his valuable guidance and keen interest at all stages of
this work. Working with him was a delightful and enriching experience.
I would also extend my acknowledgement to the customers of ICICI and HDFC bank
for having patience in filling up the form.
PREFACE
The problem of unemployment is one of our major problems. This problem has been
troubling us ever since we gained independence. One reason for growing unemployment
in the country is our faulty education system. Students are given bookish knowledge
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without any training for specific jobs. To solve this problem to some extent preparation of
projects are being introduced. This helps the students to increase their job perspective.
Project can be done in industries, business-houses, sales and income tax department of
various central, state, local, government societies etc.
A project work programme in industry is to get an overall view and exposure of the
industry and its working environment. It enhances the confidence and boosts the morale
of the students who go for their project in the industry. These programmes are included in
the curriculum of studies for development of the personality of the students and get a
firsthand experience about the working of the industry.
This project is about the concept of e banking and its changing scenario. I have made
this project with the help of both primary and secondary data.
CONTENTS
Chapter No. Content Page No.
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1 Objective and Reseach Methodology
Objective of the study
Research Methodology
Limitations
2 Introduction to the Subject
Introduction of E banking
Meaning of E banking
Functions of E banking
Types of E banking
Advantages of E banking
Limitations of E banking
E banking in India
E banking Products
The future scenario of Internet banking
Risks and Rewards
3 Profile of Banks
ICICI bank
Introduction
Vision
Mission
Business Profile of bank
4
ICICI bank e banking services
HDFC bank
Introduction
Mission, objective and Philosophy
Business Profile
HDFC bank E banking services
4 Data Analysis and Interpretations
5 Findings
6 Suggestions
7 Bibliography
8 Annexure
EXECUTIVE SUMMARY
Banking has come to occupy a vital position in a nation economy. In today’s world,
banking is a business that not only deals with borrowing, lending and remittances of
funds, but it is also an important instrument for fostering economic growth. It is for
this reason that commercial banks are considered the lifeblood of today’s economic
system. A well-planned, organized, efficient and viable banking system is a necessary
concomitant of economic and social infrastructure.
The world is changing at a staggering rate and technology is considered to be the key
driver for these changes around us. An analysis of technology and its uses show that it
has permeated in almost every aspect of our life. Many activities are handled
electronically due to the acceptance of information technology at home as well as at
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workplace. Slowly but steadily, the Indian customer is moving towards the internet
banking. The ATM and the Net transactions are becoming popular. But the customer
is clear on one thing that he wants net-banking to be simple and the banking sector is
matching its steps to the march of technology. E-banking or Online banking is a
generic term for the delivery of banking services and products through the electronic
channels such as the telephone, the internet, the cell phone etc. The concept and scope
of e-banking is still evolving. It facilitates an effective payment and accounting
system thereby enhancing the speed of delivery of banking services considerably.
The major driving force behind the rapid spread of e-banking is its acceptance as an
extremely cost effective delivery channel. But on the flipside, it is associated with
risks such as reputation risk, security risk, cross-border risk and strategic risk, which
are unique to e-banking. Banks need to have an effective disaster recovery plan along
with comprehensive risk management tool is significant not only to the bank but also
to the banking system as a whole. All these issues underscore the importance of sound
supervisory policies and high level of international co-operation among the bank
regulators.
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. It is very necessary to have awareness about the products
banks are offering to sustain in the market.
This project to study the concept of e banking, its current scenario and future and also
awareness among the customer about e banking facility of ICICI and HDFC bank.
Project starts with objective and research methodology of the project. Second chapter
is about the e banking its evolution, types of e banking, its future etc. Third chapter is
about the profile of ICICI and HDFC bank. Last chapter is about the survey of ICICI
and HDFC customer about awareness of e banking facilities. I have used both primary
and secondary data for the purpose of project.
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CHAPTER -1
OBJECTIVE AND RESEARCH METHODOLOGY
Objective of the project
The following are the objectives of the project:
To know about the current and future prospects of E-Banking to the
customers.
Understanding the emerging trend and significance of e-banking.
Finding out ways and means to improve on the services provided by banks
electronically
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To find out the major problems faced by the customers while using e-banking
services.
To study the awareness of E-banking among the customers of ICICI and
HDFC banks.
To study the mostly used services of E-Banking by the customers of HDFC
and ICICI bank.
RESEARCH METHODOLOGY
RESEARCH DESIGN
A research design is a framework to prepare plan or study. It is useful as a guide to
collect the data and analyzing it. It is a blue print that is followed in completing the
study. Research design is the conceptual structure within which the research will be
conduct.
Type of Research : The study is descriptive in nature.
SAMPLING DESIGN:
Sample size of customer is 80. ( 40 customers of each bank )
Sample Unit : Customers of ICICI and HDFC bank
Sampling Technique : Convenience Sampling.
SOURCES OF DATA COLLECTION:
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Primary data was collected through interview and
questionnaire. Structured questionnaire for clients of ICICI and HDFC banks are
prepared.
Secondary data was collected through magazines and
journals, newspapers and internet websites of the company.
DATA ANALYSIS
It was done with the help of simple percentage and tabulation. Pie, Bar
Chart will be used for data analysis.
LIMITATION
1) This project is restricted to study purpose only and can be used keeping in
view the object that is made for.
2) The respondent in the project may not reveal important / confidential
information pertaining to the company policy and for this the project should be used
keeping in view the said limitation.
3) Sample size is very small to draw any conclusion in general.
4) Finding of the study is based on the assumptions that respondents have
given correct information.
5) The study is focused on a very general level rather than a full scale
detailed report
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CHAPTER - 2
INTRODUCTION TO THE SUBJECT
◈ Introduction of E Banking:
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The banking sector is the life line of any modern economy. It is one of the important
pillars of the financial system, which plays vital role in success /failure of an
economy. It is a well known fact that banks are one of the oldest financial
intermediaries in the financial system. They play crucial role in the mobilization of
deposits from and disbarment of credit to various sector of the economy. The banking
system reflects the economic health of the country.
E-Commerce and E-banking are two buzzwords in today’s global commercial
activities. E-Banking or electronic banking refers to conducting banking activities
with the help of information technology. The use of internet and other e-channel
increases the efficiency of the banks by enabling them to deliver the bank services to
the click of the mouse and by demolishing all the physical boundaries.
Several initiatives have been taken by the Government of India as well as the RBI
(Reserve Bank of India); have facilitated the development of e-banking in India. The
government of India enacted the IT Act, 2000, which provides legal recognition to
electronic transactions and other means of electronic commerce. The RBI has been
preparing to upgrade itself as regulator and supervisor of the technologically
dominated financial system. It issued guidelines on the risks and controls in computer
and telecommunication systems to all banks, advising them to evaluate the risks
inherent in the systems and put in place adequate control mechanisms to address these
risks.
◈ Meaning of E-Banking:
Electronic banking is one of the truly widespread avatars of E-commerce the world
over. Various authors define E-Banking differently but the most definition depicting
the meaning and features of E-Banking are as follows:
1. Banking is a combination of two, Electronic technology and Banking.
2. Electronic Banking is a process by which a customer performs banking.
Transactions electronically without visiting a brick-and-mortar institutions.
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3. E-Banking denotes the provision of banking and related service through extensive
use of information technology without direct recourse to the bank by the customer.
◈ Functions of E-Banking:
At present, the personal e-bank system provides the following services: -
1. Inquiry about the information of account: -
The client inquires about the details of his own account information such as the card’s
/ account’s balance and the detailed historical records of the account and downloads
the report list.
2. Card accounts’ transfer: -
The client can achieve the fund to another person’s Credit Card in the
same city.
3. Bank-securities accounts transfer: -
The client can achieve the fund transfer between his own bank savings
accounts of his own Credit Card account and his own capital account in the securities
company. Moreover, the client can inquire about the present balance at real time.
4. The transaction of foreign exchange: -
The client can trade the foreign exchange, cancel orders and inquire
about the information of the transaction of foreign exchange according to the
exchange rate given by our bank on net.
5. The B2C disbursement on net: -
The client can do the real-time transfer and get the feedback
information about payment from our bank when the client does shopping in the
appointed web-site.
6. Client service: -
The client can modify the login password, information of the Credit
Card and the client information in e-bank on net.
7. Account management: -
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The client can modify his own limits of right and state of the registered
account in the personal e-bank, such as modifying his own login password, freezing
or deleting some cards and so on.
8. Reporting the loss if the account: -
The client can report the loss in the local area (not nationwide) when
the client’s Credit Card or passbook is missing or stolen.
◈ Types of E-Banking:
1. Deposits, withdrawals, inter-account transfer and payment of linked accounts
at an ATM;
2. Buying and paying for goods and services using debit cards or smart cards
without having to carry cash or a cheques book;
3. Using a telephone to perform direct banking- make a balance enquiry, inter-
account transfers and pay linked accounts;
4. Using a computer to perform direct banking- make a balance enquiry, inter-
account transfers and pay linked
◈ Advantages of E-Banking:
1. Account Information: Real time balance information and summary of day’s
transaction.
2. Fund Transfer: Manage your Supply-Chain network, effectively by using our
online hand transfer mechanism. We can effect fund transfer on a real time
basis across the bank locations.
3. Request: Make a banking request online.
4. Account information: The complete database that the banks has about our
company is available to us at our terminal. It provides us:
Current balance in our account on real-time basis.
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Day’s transactions in the account.
Details of cash credit limit, drawing power, amount utilized, etc.
5. Downloading of account statements as an excel file or text file. The statements
can be integrated with your ERP systems for auto-reconciliation.
6. Fund Transfers: Manage our Supply-Chain network, effectively by using our
online fund transfer mechanism. We can effect fund transfer on a real time
basis across the bank locations. The product facilities.
(a) One-to-one fund transfer between two linked account.
(b) Bulk fund transfers; In bulk fund transfers, we upload a flat
file containing payment / collection information. Our systems
take care of processing the entire file and once the file is
processed file to our ERP for auto reconciliation.
7. The real life situation of user-wise limits and multilevel signatories can be
mapped in the net-based fund transfer module too. We can specify user-wise
cap for fund transfer and the number of approvals needed for each fund
transfer. The fund transfer will not take place unless the required number of
signatories has approved it.
8. With a power of Attorney from our dealers, we can link the dealer’s accounts
to our account in order to have an online fund transfer, saving us time and
money involved with cheques collections systems. Alternatively, the dealer
can credit our account through this channel. Similarly, we could also effect
vendor and other payments online.
9. Customers can also submit the following requests online: Registration for
account statements by e-mail daily / weekly / fortnightly / monthly basis.
(1) Stop payment or cheques
(2) Cheque book replenishment
(3) Demand Draft / Pay-order
(4) Opening of fixed deposit account
(5) Opening of Letter of credit
10. The company does not have to spend anything extra to avail such facilities. All
it requires is an Internet connectivity. The product enables the company to
pro-actively manage its cash flows, ease reconciliation efforts as all the MIS is
available at the click of the mouse.
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11. Customers can Integrate the System with his own ERP: The customer can
download the account statements either as a text file or as an excel file. The
bank can help him in integrating the account statements and bulk payments
files with his ERP system. The bank may charge a nominal fee depending
upon the nature of work involved.
12. Bill Payment through Electronic Banking: Internet has thus ushered the
concept of anytime and anywhere banking. To the individual the onerous task
of visiting several places to settle his service bills like telephone, water,
electricity, etc., can be overcome through the electronic Bill Pay service
provided by the bank. He can pay his regular monthly bills (telephone,
electricity, mobile phone, insurance, etc.) right from his desktop. No more
missed deadlines, no more loss of interest. He can schedule his bills in
advance, and thus avoid missing the bill deadlines as well as earn extra interest
on his money.
13. The Electronic Shopping Mall: The customer can also make his shopping
payment through the Bank’s secure website-so that he can shop online without
any security worries, as the bank can provide online real time shopping mail
services through partner shopping sites.
14. Effecting Personal Investments through Electronic Banking: The bank’s
website can also allow the customer to invest in shares, mutual funds and other
financial products.
15. Investing in Mutual funds: Electronic banking also brings the customer the
same convenience while investing in Mutual funds- Hassle free and Paperless
Investing. He can invest in mutual funds without the hassles of filling
application forms or any other paperwork. He needs to provide no signatures
or proof of identify for investing. Once he places a request for investing in a
particular fund, there are no manual processes involved. His bank funds are
automatically debited or credited while simultaneously crediting or debiting
his unit holdings.
16. Initial Public Offers Online: The customer could also invest in initial public
offers online without going through the hassles of filling ANY application
form / paperwork. Get in-depth analyses of new initial public offers issues,
which are about to hit the market and analysis on these. Initial public offer
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calendar, recent initial public offers listings, prospectus / offer documents, and
initial public offer analysis are few of the features, which help a customer to
keep on top of the initial public offers markets.
17. Other benefits: The e-banking provides some other benefits also.
They are:
(1) Convenience.
(2) Speed of concluding transactions.
(3) Safety-banking from own home.
(4) Economy- banking without visiting your bank.
(5) Cheaper service fees.
(6) Seamless Integration with existing environment (IDM-Intelligent Data
Module).
(7) Highly Scaleable.
(8) Easy Customization.
(9) Lower Costs of both Installation and Maintenance.
(10) Platform Independence.
(11) Round-the-Clock and Cross-Border Availability.
(12) Remote Authorization.
◈ Limitation of E-Banking:
1. Safety situations around ATMs.
2. Abuse of bank cards by fraudsters at ATMs.
3. Danger of giving your card number when buying on-line.
The modern technology has influenced the financial sector to a large extent. It
increases the competitive efficiency of the firms and provides sophistication to the
end users. It makes everyone fittest to survive.
◈ E-banking in India
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The Reserve Bank of India constituted a working group on Internet Banking. The
group divided the internet banking products in India into 3 types based on the levels
of access granted. They are:
Information Only System: General purpose information like interest rates,
branch location, bank products and their features, loan and deposit calculations are
provided in the banks website. There exist facilities for downloading various types of
application forms. The communication is normally done through e-mail. There is no
interaction between the customer and bank's application system. No identification of
the customer is done. In this system, there is no possibility of any unauthorized person
getting into production systems of the bank through internet.
Electronic Information Transfer System: The system provides customer
specific information in the form of account balances, transaction details, and
statement of accounts. The information is still largely of the 'read only' format.
Identification and authentication of the customer is through password. The
information is fetched from the bank's application system either in batch mode or off-
line. The application systems cannot directly access through the internet.
Fully Electronic Transactional System: This system allows bi-directional
capabilities. Transactions can be submitted by the customer for online update.
This system requires high degree of security and control. In this environment, web
server and application systems are linked over secure infrastructure. It comprises
technology covering computerization, networking and security, inter-bank payment
gateway and legal infrastructure. It includes the followings:
o ATM
o Debit cards
o Smart cards
o Mobile banking
◈ E-BANKING PRODUCTS:
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Automated Teller Machine (ATM): These are cash dispensing machine, which are
frequently seen at banks and other locations such as shopping centers and building
societies. Their main purpose is to allow customer to draw cash at any time and to
provide banking services where it would not have been viable to open another branch
e.g. on university campus.
An automated teller machine or automatic teller machine (ATM) is a
computerized telecommunications device that provides a financial institution's
customers a method of financial\ transactions in a public space without the need for a
human clerk or bank teller. On most modern ATMs, the customer identifies him or
herself by inserting a plastic ATM card with a magnetic stripe or a plastic smartcard
with a chip that contains his or her card number and some security information, such
as an expiration date or CVC (CVV). Security is provided by the customer entering a
personal identification number (PIN).
Using an ATM, customers can access their bank accounts in order to make cash
withdrawals (or credit card cash advances) and check their account balances. Many
ATMs also allow people to deposit cash or checks, transfer money between their bank
accounts, pay bills, or purchase goods and services.
Some of the advantages of ATM to customers are:-
Ability to draw cash after normal banking hours
Quicker than normal cashier service
Complete security as only the card holder knows the PIN
Does not just operate as a medium of obtaining cash.
Customer can sometimes use the services of other bank ATM’s.
Tele banking or Phone Banking: Telephone banking is relatively new Electronic
banking product. However it is fastly becoming one of the most popular products.
Customer can perform a number of transactions from the convenience of their own
home or office; in fact from anywhere they have access to phone. Customers can do
following:-
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Check balances and statement information
Transfer funds from one account to another
Pay certain bills
Order statements or cheque books
Demand draft request
This facility is available with the help of Voice Response System (VRS). This system
basically, accepts only TONE dialed input. Like the ATM customer has to follow
particular process, initially account number and telephone PIN are fed for the process
to start. Also the VRS system provides the users within additional facilities such as
changing existing password with the new desired, information about new products,
current interest rates etc.
Mobile Banking: Mobile banking comes in as a part of the banks initiative to offer
multiple channels banking providing convenience for its customer. A versatile
multifunctional, free service that is accessible and viewable on the monitor of mobile
phone. Mobile phones are playing great role in Indian banking- both directly and
indirectly. They are being used both as banking and other channels.
Internet Banking: The advent of the Internet and the popularity of personal
computers presented both an opportunity and a challenge for the banking industry.
For years, financial institutions have used powerful computer networks to automate
million of daily transactions; today, often the only paper record is the customer’s
receipt at the point of sale. Now that their customers are connected to the Internet via
personal computers, banks envision similar advantages by adopting those same
internal electronic processes to home use. Banks view online banking as a powerful
“value added” tool to attract and retain new customers while helping to eliminate
costly paper handling and teller interactions in an increasingly competitive banking
environment. In India first one to move into this area was ICICI Bank. They started
web based banking as early as august 1997.
◈ The Future Scenario of Internet Banking:
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o Compared to banks abroad, India banks offering online services still have a
long way to go. For online banking to reach a critical mass, there has to be
sufficient number of users and the sufficient infrastructure in place.
o Various security options like line encryption, branch connection encryption,
firewalls, digital certificates, automatic sign-offs, random pop-ups and disaster
recovery sites are is in place or are being looked at, there is as yet no
Certification Authority in India offering Public Key Infrastructure, which is
absolutely necessary for online banking.
o The communication bandwidth available today in India is also not enough to
meet the needs of high priority services like online banking and trading.
o Banks offering online facilities also need to calculate their downtime losses,
because even a few minutes of downtime in a week could mean substantial
losses.
o Users of Internet Banking Services are required to fill up the application froms
online and send a copy of the same by mail or fax to the bank.
o A contractual agreement is entered into by the customer with the bank for
using the Internet banking services.
o Domestic customers for whom other access points such as ATMs, telebanking,
personal contact, etc. are available, are often hesitant to use the Internet
banking services offered by Indian banks. Internet Banking, as an additional
delivery channel, may, therefore, be attractive/ appealing as a value added
service to domestic customers. Non-resident Indians, for whom, it is expensive
and time consuming to access their bank accounts maintained in India find net
banking very convenient and useful.
o Cyber crimes are, therefore, difficult to be identified and controlled.
o In order to promote Internet banking services, it is necessary that the proper
legal infrastructure is in place.
o The Department of Telecommunications (DoT) is moving fast to make
available additional bandwidth, with the result that internet access will become
much faster in the future.
o Reserve Bank of India has constituted a group to examine different issues
relating to i-banking and recommend technology, security legal standards and
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operational standards keeping in view the international best practices. In the
following paragraphs a generic set of risks discussed as the basis for
formulating general risk control guidelines.
◈ Risk & Rewards:
a) Operational Risk: -
Operational risk, also referred to as transactional risk is the most common
form of risk associated with i-banking.
It takes the from of inaccurate processing of transactions, non-enforceability
of contracts, compromises in data integrity, data privacy and confidentiality,
unauthorized access / intrusion to bank’s systems and transaction, etc.
Such risks can arise out of weaknesses in design, implementation and
monitoring of banks information system.
Besides inadequacies in technology, human factors like negligence by
customers and employees, fraudulent activity of employees and crackers/
hackers, etc. can become potential source of operational risk.
b) Security Risk: -
Security risk arises on account of unauthorized access to a bank’s critical
information stores like accounting system, risk management system, portfolio
management system, etc.
Other related risks are loss of reputation, infringing customers’ privacy and its
legal implications, etc.
Attackers could be hackers, unscrupulous vendors, disgruntled employee or
even pure thrill seekers.
In addition to external attacks banks are exposed to security risk from internal
sources e.g. employee fraud. Employee being familiar with different systems
and their weaknesses become potential security threats in a loosely controlled
environment. They can manage to acquire the authentication data in order to
access the customer accounts causing losses to the bank.
Unless specifically protected, all data/ information transfer over the internet
can be monitored or read by unauthorized persons.
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c) System architecture and design: -
Banks face the risk of wrong choice of technology, improper system design
and inadequate control processes.
Numerous protocols are used for communication across internet. Each
protocol is designed for specific types of data transfer.
A system allowing communications with all protocols, say HTTP (Hyper Text
Transfer Protocol), FTP (File Transfer Protocol), telnet, etc. is more prone to
attack than one designed to permit say, only HTTP.
Many banks rely on outside service providers to implement, operate and
maintain their e-banking system.
Security related operational risk include access control, use of firewalls,
cryptographic techniques, public key encryption, digital signature, etc.
d) Reputational Risk: -
Reputational risk is the risks of getting significant negative public opinion,
which may result in a critical loss of funding or customers. Such risks arise
from actions which cause major loss of the public confidence in the banks’
ability to perform critical functions or impair bank-customer relationship. It
may be due to banks’ own action or due to third party’s action.
The main reasons for this risk may be system or product not working to the
expectations of the customers, significant security breach (both due to internal
and external attack), inadequate information to customers about product use
and problem resolution procedures, significant problems with communication
networks that impair customers’ access to their funds or account information
especially if, there are, no alternative means of account access.
e) Legal Risk: -
Legal risk arises from violation of, or non-conformance with laws, rules,
regulations, or prescribed practices, or when the legal rights and obligations of
parties to a transaction are not well established.
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A customer, inadequately informed about his rights and obligations, may not
take proper precautions in using Internet banking products or services, leading
to disputed transactions, unwanted suits against the bank or other regulatory
sanctions.
f) Money Laundering Risk: -
o As internet banking transactions are conducted remotely banks may find it
difficult to apply traditional method for detecting and preventing undesirable
criminal activities. Application of money laundering rules may also be
inappropriate for some forms of electronic payments.
o To avoid this, banks need to design proper customer identification and
screening techniques, develop audit trails, conduct periodic compliance
reviews, frame policies in internet transactions.
g) Cross-Border Risks: -
Internet banking is based on technology that, by its very nature, is designed to
extend the geographic reach of banks and customers. Such market expansion
can extend beyond national borders. This causes various risks.
Such considerations may expose banks to legal risks associated with non-
compliance of different national laws and regulations, including consumer
protection laws, record keeping and reporting requirements, privacy rules and
money laundering laws.
The foreign-based service provider or foreign participants in internet banking
are sources of country risk to the extent that foreign parties become unable to
fulfil their obligations due to economic, social or political factors.
h) Strategic Risk: -
For reducing such risk, banks need to conduct proper survey, consult experts
from various fields, establish achievable goals and monitor performance.
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Also they need to analyze the availability and cost of additional resources,
provision of adequate supporting staff, proper training of staff and adequate
insurance coverage.
i) Other Risk: -
Traditional banking risks such as credit risk, liquidity risk, interest rate risk
and market risk are also present in internet banking.
These risks get intensified due to the very nature of internet banking on
account of use of electronic channels as well as absence of geographical
limits.
Credit risk: Is the risk that a counterparty will not settle an obligation for full
value, either when due or at any time thereafter. Banks may not be able to
properly evaluate the creditworthiness of the customer while extending credit
through remote banking procedures, which could enhance the credit risk.
Another facility of internet banking is electronic money. It brings various
types of risks associated with it. If a bank purchases e-money from an issuer in
order to resell it to a customer, it exposes itself to credit risk in the event of the
issuer defaulting on its obligation to redeem electronic money.
Liquidity risk: It is important for a bank engaged in electronic money transfer
activities that it ensures that funds are adequate to cover redemption and
settlement demands at any particular time. Failure to do so, besides exposing
the bank to liquidity risk, may even give rise to legal action and reputational
risk.
j) Risk of unfair competition: -
Internet banking is going to intensify the competition among various banks.
The open nature of internet may induce a few banks to use unfair practices to
take advantage over rivals. Any leaks at network connection or operating
system, etc. may allow them to interfere in a rival bank’s system.
Thus, one can find that along with the benefits internet banking carries various
risks for bank itself as well as banking system as a whole.
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CHAPTER - 3
PROFILE OF BANKS
◈ ICICI BANK
Introduction
ICICI Bank is India's second-largest bank with total assets of Rs. 4,736.47 billion
(US$ 93 billion) at March 31, 2012 and profit after tax Rs. 64.65 billion (US$ 1,271
million) for the year ended March 31, 2012. The Bank has a network of 2,883
branches and 10,021 ATMs in India, and has a presence in 19 countries, including
India.
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ICICI Bank offers a wide range of banking products and financial services to
corporate and retail customers through a variety of delivery channels and through its
specialised subsidiaries in the areas of investment banking, life and non-life
insurance, venture capital and asset management.
The Bank currently has subsidiaries in the United Kingdom, Russia and Canada,
branches in United States, Singapore, Bahrain, Hong Kong, Sri Lanka, Qatar and
Dubai International Finance Centre and representative offices in United Arab
Emirates, China, South Africa, Bangladesh, Thailand, Malaysia and Indonesia. Our
UK subsidiary has established branches in Belgium and Germany.
ICICI Bank's equity shares are listed in India on Bombay Stock Exchange and the
National Stock Exchange of India Limited and its American Depositary Receipts
(ADRs) are listed on the New York Stock Exchange (NYSE).
Vision
To be the leading provider of financial services in India and a major global bank.
Mission
Understanding the needs of customers and offering them superior products and
service
Leveraging technology to service customers quickly, efficiently and
conveniently
Developing and implementing superior risk management and investment
strategies to offer sustainable and stable returns to our shareholders
Providing an enabling environment to foster growth and learning for our
employees
Maintain high standards of governance and ethics.
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Contribute positively to the various countries and markets in which we operate.
And above all, building transparency in all our dealings.
The success of the bank will be founded in its unflinching commitment to 5 core
values which are Integrity, Customer First, Boundary less, Ownership and
Passion. Each of the values describes what the bank stands for, the qualities of
◈ BUSINESS PROFILE OF BANK
PERSONAL BANKING
Loan Product Deposit Product Investment & Insurance
Auto loan Loan against
security Loan against
property Personal loan Credit card 2- wheeler loan Commercial
vehicles finance Home loans Retail business
banking Tractor loan Working capital
finance Construction Equipment finance Health care finance Education loan Gold loan
Savings A/C Current A/C Fixed Deposits Demat A/C Safe Deposit
Lockers
Mutual Funds Bonds Knowledge Centre Insurance General And
Health Insurance Equity And
Derivatives Mudra Gold Bar
Cards Payment Services Access To Bank
Credit Card Debit Card Prepaid Card
--------------------------------
Net Safe Merchant Prepaid Refill Bill Pay Visa Bill Pay InstaPay Direct Pay VisaMoney
Net Banking One View Insta Alert Mobile
Banking ATM Phone Banking Email Statements Branch Network
27
Forex services
--------------------------------
Product And Services
Trade Services Forex Service
Branch Locater RBI Guidelines
Transfers E-Monies
Electronic Funds Transfer
Online Payment Of Direct Tax
WHOLESALE BANKING
Corporate Small and Medium
Enterprises
Financial Institutions and
Trusts
Funded Services Non Funded
Services Value Added
Services Internet Banking
Funded Services Non Funded
Services Specialized Services Value Added
Services Internet Banking
BANKS
Clearing Sub-Membership RTGS Sub-Membership Fund Transfer ATM Tie- Ups Corporate Salary A/C Tax Collection
Financial Institutions
Mutual Funds
Stock Brockers
Insurance Companies
Commodities Business
28
NRI SERVICES
Accounts & Deposits Remittances
Rupee Saving A/C Rupee Current A/C Rupee Fixed Deposits Foreign Currency Deposits Accounts For Returning Indians
North America Uk Europe South East Asia Middle East Africa Others
Quick Remit
India Link
Check Lock Box
Telegraphic/ Wire Transfer
Fund Transfer Cheques/Dds/Tcs
Investment & Insurances Loans
Mutual Funds Insurance Private Banking Portfolio Investment Scheme
Home Loans Loans Against Securities Loans Against Deposits Gold Card Credit
Payment Services Access To Bank
Net Safe Bill Pay InstaPay DirectPay VisaMoney Online Donation
Net Banking One View InstaAlert ATM Phone Banking Email Statements Branch Networks
29
◈ ICICI Bank E banking Services:
MOBILE BANKING: Conducting banking operations using the mobile phone has
been fast catching up around the world for its convenience. ICICI bank has launched
mobile services in India to convenience customers. It is an empowering and user-
friendly mode of accessing bank account.
Customer can now access the following ICICI Bank services via mobile phone:
Bank A/c Credit Card Demat Loan Other services
Fund Transfer Balance Detail Holding
enquiry
Provisional
Income tax
certificate
Locate ATM
Bill payment Last payment
detail
Transaction
Status
Final Income
Tax certificate
Phone banking
number
Balance
Enquiry
Payment due
date
Bill Enquiry Reset Letter Locate Branch
Last 5
transaction
Reward point
status
ISIN enquiry Rescheduled
Letter
Prepaid mobile
recharge
Cheque Book
request
Loan
agreement
copy
Apply for bank
product
Stop cheque
request
Status of
service request
raised
Cheque Status
inquiry
INSTA BANKING
30
Insta Banking makes banking simpler, faster, and more convenient. Through these 5
great channels - Internet Banking, Mobile Banking, ICICI Bank ATMs, Instant Voice
Response (IVR) Banking and iMobile - Customer can do day today banking anytime,
anywhere.
INTERNET BANKING
Customer can check account balance, transfer funds, download account statement,
and pay bills or even book tickets online, from the comfort of home or in the middle
of a busy day at the office.
ATM BANKING
Bank 24/7 through a widespread network of ICICI Bank ATMs making life easy and
convenient. User-friendly graphic screens and easy to follow instructions available in
a choice of local languages, makes ATM Banking with ICICI Bank a smoother
experience. ICICI Bank's widespread network of ATMs makes it easy and convenient
for customer to bank 24/7. With over 10000 + ATMs and 2883 + branches set up
within India, bank ensures that customers are never too far from an ICICI Bank ATM.
Userfriendly graphic screens and easy to follow instructions in a choice of local
languages, makes ATM Banking with ICICI Bank a smooth experience.
ICICIBank.com also features the easy to access ATM Locator.
The ICICI Bank edge
Cash withdrawal up to Rs. 25,000/- per day from account (50,000 for HNI's). Fast
Cash option facilitates withdrawal of prefixed amounts; Ultra Fast Cash allows
withdrawal of Rs. 3000/- in one shot
Check ledger balance and available balance
Print out Mini Statement which displays last 8 transactions and the current
balance
Deposit Cash / Cheques at all full function ATMs; cash deposited in ATMs will
be credited to the account on the same day if deposited before the clearing and
cheques are sent for clearing on the next working day
Transfer funds from one account to another linked account in the same branch.
31
Change the Personal Identification Number (PIN) of ATM or Debit card
Pay bills, make donations to temples / trusts, buy internet packs, airtime
recharges for prepaid mobile phones, etc.
Request for a cheque book from ATMs; concerned branch dispatches it to
reach within 10 working days
No charge is levied on ICICI Bank customers for transacting through ICICI
Bank's ATMs. But, if the minimum quarterly average balance is not maintained in
savings account, first 6 transactions in the quarter are free and thereafter, Rs. 25 per
transaction is charged.
I MOBILE
ICICI Bank's iMobile is a breakthrough innovation in banking that allows to transfer
funds, make credit card payments, pay utility bills, check balance and do lots more,
for free. ICICI Bank brings the 2nd generation iMobile that has newer features,
smarter interface, quicker navigation and enhanced functionality. Using GPRS
enabled on mobile handset or through SMS, iMobile helps to connect directly to bank
account. This Rich Client Based Application needs to be installed on mobile thereby
enabling a single click access to account.
Services available with i Mobile:
Payment of utility bills and credit card bills
Transfer of funds to any bank account
Payment of insurance premium
Placement of service request such as ordering of cheque books, bank account
statements, cheque status and balance enquiry
Access the following ICICI Bank services via iMobile:
Bank Account
Funds transfer
Bill Payment
Balance Enquiry
Last 5 transactions
32
Cheque Book Request
Stop Cheque request
Cheque status Enquiry
Credit Card
Balance Details
Last Payment Details
Payment Due Date
Reward Point Status
Demat A/c
Holding Enquiry
Transaction Status
Bill Enquiry
ISIN Enquiry
Loan A/c
Provisional IT Certificate
Final IT Certificate
Reset Letter
Rescheduled Letter
Loan Agreement Copy
M Shop
Prepaid Mobile Recharge
Other Services
Status of Service Request Raised
Locate US
IVR BANKING
33
ICICI Bank's Instant Voice Response (IVR) Banking is free of charge, fully
automated and at the same time user friendly. Just having an ATM PIN for account
and credit card ensures that transactions are secure.
Saving A/C
Credit cards
Demat
Bonds
Others
TV BANKING
ICICI Bank introduced India to an all new way of banking. TV Banking. This
pioneering initiative now enables to get information regarding loans, accounts,
deposits and a lot more.
2. HDFC Bank :
◈ Introduction:
The Housing Development Finance Corporation Limited (HDFC) was amongst the
first to receive an 'in principle' approval from the Reserve Bank of India (RBI) to set
up a bank in the private sector, as part of the RBI's liberalisation of the Indian
Banking Industry in 1994. The bank was incorporated in August 1994 in the name of
'HDFC Bank Limited', with its registered office in Mumbai, India. HDFC Bank
commenced operations as a Scheduled Commercial Bank in January 1995.
HDFC Bank is headquartered in Mumbai. The Bank at present has an enviable
network of 2,620 branches spread in 1,454 cities across India. All branches are linked
on an online real-time basis. Customers in over 500 locations are also serviced
through Telephone Banking. The Bank's expansion plans take into account the need to
have a presence in all major industrial and commercial centres where its corporate
34
customers are located as well as the need to build a strong retail customer base for
both deposits and loan products. Being a clearing/settlement bank to various leading
stock exchanges, the Bank has branches in the centres where the NSE/BSE have a
strong and active member base.
The Bank also has 10,361 networked ATMs across these cities. Moreover, HDFC
Bank's ATM network can be accessed by all domestic and international
Visa/MasterCard, Visa Electron/Maestro, Plus/Cirrus and American Express
Credit/Charge cardholders.
◈ Mission, objective and philosophy
HDFC Bank's mission is to be a World-Class Indian Bank. The objective is to build
sound customer franchises across distinct businesses so as to be the preferred provider
of banking services for target retail and wholesale customer segments, and to achieve
healthy growth in profitability, consistent with the bank's risk appetite. The bank is
committed to maintain the highest level of ethical standards, professional integrity,
corporate governance and regulatory compliance. HDFC Bank's business philosophy
is based on four core values - Operational Excellence, Customer Focus, Product
Leadership and People.
◈ BUSINESS PROFILE
HDFC Bank caters to a wide range of banking services covering commercial and
investment banking on the wholesale side and transactional/branch banking on the
retail side. The bank has three key business areas:
• Wholesale Banking Services: The Bank's target market is primarily large, blue chip
manufacturing companies in the Indian corporate sector and to a lesser extent,
emerging midsized corporate. For these corporate, the Bank provides a wide range of
commercial and transactional banking services, including working capital finance,
35
trade services, transactional services, cash management, etc. The bank is also a
leading provider of structured solutions that combine cash' management services with
vendor and distributor finance for facilitating superior supply chain management for
its corporate customers.
• Retail Banking Services: The objective of the Retail Bank is to provide its target
market customers a full range of financial products and banking services, giving the
customer a one stop window for all his/her banking requirements. The products are
backed by world-class service and delivered to the customers through the growing
branch network, as well as through alternative delivery channels like ATMs, Phone
Banking, Net Banking and Mobile Banking. The HDFC Bank Preferred program for
high net worth individuals, the HDFC Bank Plus and the Investment Advisory
Services programs have been designed keeping in mind needs of customers who seek
distinct financial solutions, information and advice on various investment avenues.
The Bank also has a wide array of retail loan products including Auto Loans, Loans
against marketable securities, Personal Loans and Loans for Two-wheelers. It’s also a
leading provider of Depository Services to retail customers, offering customers the
facility to hold their investments in electronic form.
HDFC Bank was the first bank in India to launch an International Debit Card in
association with VISA (VISA Electron) and issues the MasterCard Maestro debit card
as well. The debit card allows the user to directly debit his account at the point of
purchase at a merchant establishment, in India and overseas. The Bank launched its
credit card in association with VISA in November 2001. The Bank is also one of the
leading players in the "merchant acquiring" business with over 25,000 Point-of-sale
(POS) terminals for debit / credit cards acceptance at merchant establishments. The
Bank is well positioned as a leader in various net-based B2C opportunities including a
wide range of Internet banking services for Fixed Deposits, Loans, Bill Payments.,
etc.
• Treasury Operations: Within this business, the bank has three main product areas-
36
Foreign Exchange and Derivatives, Local Currency Money Market & Debt Securities,
and Equities With the liberalization of the financial markets in India, corporate need
more sophisticated risk management information, advice and product structures,
These and fine pricing on various treasury products are provided through the bank's
Treasury team. To comply with statutory reserve requirements, the bank is required to
hold 25% of its deposits in government securities. The Treasury business is
responsible for managing the returns and market risk on this investment portfolio.
◈ HDFC BANK E BANKING SERVICES
NET BANKING: Net Banking is HDFC Bank's Internet Banking service. Providing
up-to-the-second account information, Net Banking lets customer manage his account
from the comfort of mouse - anytime, anywhere.
HDFC Bank Net Banking Secure Access
HDFC Bank has implemented a new security solution for its customers – Secure
access .Bank has initiated the Secure Access solution to protect from fraudsters and
hackers - who are looking to find a way to access account.
Currently following transactions are covered under Secure Access:
• Transfer from one HDFC Bank account to other HDFC Bank account holders
(under distinct customer ID)
• Transfer from HDFC Bank account to any other Bank's account (also known as
RTGS & NEFT)
• Visa Money Transfer
• Third Party Demand Draft through Net Banking
Third Party Transfer
37
Third-Party Transfer is a Net Banking feature for which customer will need unique
Customer ID and IPIN (password). With Third-Party Transfer (TPT) customer can
transfer funds online from his HDFC Bank account to another HDFC Bank/Other
Bank account (beneficiary), anywhere in India. This is a real-time transaction and the
debit and credit will reflect in the respective accounts immediately.
Third Party Transfer can be initiated:
• From customer Account to other Bank Accounts using
• National electronic Funds Transfer (NEFT) - Funds will be credited to the
beneficiary account in two working days
• Real Time Gross Settlement (RTGS) - Funds will be credited to the beneficiary
account on the same working day.
• From customer’s HDFC Bank account to other HDFC Bank accounts (different cuts
ids).
• From customer’s account to any Visa Card (Debit or Credit) within India.
• For issuance of Third Party Demand Drafts from account.
Customer can transfer up to a maximum of Rs. 10, 00,000/- per cuts id per day using
this facility. This amount can be transferred in parts or on a single basis.
INSTA IPIN FACILITY
It has been bank’s constant endeavor to make banking a hassle-free experience for
customer. It is quite possible to forget Net Banking password (IPIN). Customer can
now re-generate your Net Banking password instantly with the help of Debit Card
details and start using new password (IPIN) immediately. No need to request for a
new password and await its arrival.
38
CREDIT CARDS ONLINE
HDFC Bank Net Banking service is now available for Credit Cards also. Now using
HDFC Bank Credit Card has become more convenient and time saving. With Net
Banking customer can view his card account information and do much more just at
the click of a button.
Currently the following Credit Cards Net banking features are available:-
• Account Information
• Unbilled Transactions
• Credit Card Statement
• Download Card Statement (upto last 6 months)
ONEVIEW: One View is a revolutionary service from HDFC Bank that allows
customer to manage multiple accounts in different banks through one single online
interface. If HDFC Bank customer have one or more accounts with Citibank, ICICI
Bank, HSBC India, Standard Chartered Bank then One View is just right for you.
FEATURES & BENEFITS
No need to individually log on to internet banking of every account. Just log on to
One View and manage up to FIVE accounts in different banks.
• Remember only ONE password.
• No charges whatsoever
HOW SECURE IS ONEVIEW?
One View gives customer the world class banking security and technology
sophistication with features such as:
39
• Robust firewall protection makes it nearly impossible to break through.
• All information is transmitted using advanced 128 bit Secure Socket Layer (SSL)
encryption technology.
• Automatic time-outs ensure that customer’s account details are not viewed by
others.
• Customer can only view accounts and cannot transact, so money is absolutely safe.
INSTA ALERTS: Now customer can get regular updates on bank account on his
mobile phone or email ID. Just register for Insta Alert service and receive updates on
account as and when the select transaction happens - all this without visiting the
branch or ATM. Customer 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
MOBILE BANKING: Customer can access bank account and conduct a host of
banking transactions through mobile, with unique Mobile Banking service. Customer
can check account level information such as balance details, mini statement, and
cheque status as well as carry out financial transactions such as Funds Transfer using
HDFC Bank Mobile Banking service.
FEATURES OF MOBILE BANKING
• Perform funds transfers
40
• Get balance details
• Obtain last 3 transaction details
• Request a cheque book
• Stop a cheque payment
• Enquire cheque status
• Request an account statement
• Get Fixed Deposit details
• Request for I-PIN generation
• Request a cheque book
AUTOMATED TELLER MACHINE: With wide spread network of more than
10000 ATMs across India, enjoy the following benefits.
• 24-hour access to Cash - Withdraw up to Rs.10, 000/- per day on ATM Card and
up to Rs. 15,000 on Debit Card.
• Personalized Cash Withdrawals – Save time on cash withdrawal transactions by
pre-setting preferred language / account / amount.
• View Account Balances & Mini-statements - Get details of the last 9 transactions
on account with the mini-statement, along with account balance.
• Change ATM PIN - Change ATM PIN at any given point in time.
• Order a Cheque Book / Account Statement
• HDFC Bank Credit Card Payment - Make payment of HDFC Bank Credit Card
dues using the ATM. The primary account of Debit / ATM card will be debited.
• Deposit Cash or Cheques - Deposit Cash or Cheques into account without visiting
the Branch. Available at Non-Branch HDFC Bank ATMs
41
• Transfer Funds between accounts – Transfer money between accounts. Both
accounts must be linked to ATM / Debit Card. Maximum of 16 A/Cs (Savings /
Current) can be linked to a card.
REFILL PREPAID MOBILE – Refill prepaid mobile using Prepaid Mobile Refill
service instantly. HDFC Bank offers – Prepaid Mobile Refill, which allows
recharging prepaid mobile phone anytime from anywhere and paying directly from
Bank account. Avoid hassles of withdrawing cash or searching for a retailer for
buying the recharge card.
• Customer can avail of this service in two convenient ways:
Prepaid Mobile Refill on Internet
Prepaid Mobile Refill on ATM
PHONE BANKING:
Customer can avail of the following services via Phone Banking:
• Check account balance - Get up-to-the-second details of Savings or Current
Accounts and Fixed Deposits. Customer can also get the details of the last 5
transactions on account, or have a mini statement of last 9 transactions faxed across to
him.
• Enquire on the cheque status - Customer can use Phone Banking to check on the
status of cheques issued or deposited from anywhere in India.
• Order a Cheque Book / Account Statement - Just call Phone Banking and
get Cheque Book or latest Account Statement delivered at doorstep.
• Stop Payment - Stop payment of a single cheque or a series of cheques, 24
hours a day.
42
• Loan Related queries - Get details of the outstanding loan amount, enquire about
loan account, request for an interest certificate and repayment schedule, etc. Just call
Phone Banking in city and dial 4 to speak to Phone Banker
• Open a Fixed deposit or Enquire on your Fixed deposits / TDS*# - Talk to
Phone Banker to easily open a Fixed Deposit over the phone, by simply authorizing a
transfer of funds from Savings Account.
• Transfer Funds between accounts*# - Customer can also transfer money from one
of accounts to another. Both accounts must be linked to Customer ID. Customer can
transfer amounts upto Rs 1 Lac in a single day.
• Pay bills - Pay cellular, telephone, electricity and HDFC Bank Credit Card bills
through Phone Banking using Bill Pay, a comprehensive bill payments solution.
• Report loss of ATM / Debit Card / Forex Plus Card - If ATM / Debit / Forex plus
Card are lost, call Phone Banking number to deactivate card(s).
• Learn about all other products - Get details on HDFC Bank products & services
by talking to Phone Banker.
• Enquire about latest Interest / Exchange rates - Get latest Interest rates on
Deposits and Foreign Exchange rates by talking to Phone Banker.
• Request a Demand Draft / Manager's Cheque #** - Call Phone Banking and get a
Demand Draft / Manager's Cheque delivered to doorstep.
• Demat Related Queries - Get the Account holding details, Transaction
details, ISIN Number of a scrip, Status of Depository Slips, details of Client
Master list (Dividend account, Charges Debit account, PAN etc.) & others. Call
Phone Banking in city & dial 5 to speak to Phone Banker.
43
CHAPTER 4
DATA ANALYSIS AND INTERPRETATIONS
1. Are you aware about E-banking?
HDFC Bank ICICI Bank Yes 33 35No 7 5
Total 40 40
Interpretation :
From the survey conducted between the customers of HDFC Bank Ltd
and ICICI Bank Ltd, it is observed that the awareness about the E-
44
banking is more among the ICICI Bank customers i.e. 35 of the
respondent out of 40 are aware compared to 33 in case of HDFC Bank.
However the awareness among the two banks is almost equal, but more in
ICICI Bank.
2. Do you use E-banking?
HDFC Bank Ltd ICICI Bank Ltd
Nos. % Nos %
Yes 17 52% 15 43%
No 16 48% 20 57%
Total respondent who are aware about the E-banking 33 100% 35 100%
Interpretation:
It is observed that the percentage of usage of E-banking by the customers
is more in HDFC Bank Ltd i.e. 52% of the respondent out of 33 who are
aware of the E-banking are actually using the E-banking facility
compared to ICICI Bank which is 43% of the respondent out of 35 who
are aware of the E-banking in Bank and using it.
45
3. Which E-Banking facility do you use ? i.e. Net Banking, SMS
Banking, Phone Banking and Mobile Banking.
HDFC Bank ICICI Bank
Net Banking 11 10SMS Banking 9 11Phone Banking 5 6Mobile Banking 4 3
Using all the above facility 4 3
Interpretation :
It is observed that the percentage of respondents using Internet banking is
more followed by the SMS Banking, Phone Banking and Mobile
Banking. Today, banking is almost inseparable since almost all the
financial needs are now catered under one roof i.e. a bank. Electronic
applications are now embedded in banking by usage of Net, Phone and
mobile banking along with SMS facilities.
46
For HDFC bank Ltd.
It is seen that about 65% of the respondents are using Internet banking
( 11 out of 17), 53% of the respondents are using SMS Banking ( 9 out of
17), 29% of the respondents are using Phone banking ( 5 out of 17), and
24% of the respondents are using Mobile banking (4 out of 17) in case of
HDFC bank respondents .
For ICICI bank Ltd.
It is seen that about 67% of the respondents are using Internet banking
( 10 out of 15), 73% of the respondents are using SMS Banking ( 11 out
of 15 ), 40% of the respondents are using Phone banking ( 6 out of 15 ),
and 20% of the respondents are using Mobile banking ( 3 out of 15) in
case of ICICI bank respondents .
No. of persons using all
HDFC Bank Ltd ICICI Bank Ltd
Nos % Nos %
Using all the above facility 4 23% 3 20%
Total respondent who are using E-banking 17 15
Interpretation :
Of all the respondents from HDFC Bank and ICICI Bank, it is observed
that the percentage usage of all the E-banking facility is 23 and 20
Percent for HDFC and ICICI bank respectively. There is not much
difference for both the banks. However with the further questioning with
the respondents, it was observed that E-banking is now being adopted by
47
them due to ease in operation from any where they are and the facilities
provided by the banks for using E-banking facilities.-
4. Are you feel secured about the E-banking facility given to you?
HDFC Bank Ltd ICICI Bank Ltd
Feels secured does not
feel secured Feels secured does not
feel secured
SECURITY PERCEPTION AMONG PEOPLE 17 16 15 20
Interpretation :
From the survey, it was observed that, it was those people who believed that the E-
banking is secured were using E-banking facility of the bank. It is exactly the same
number of the people who were aware of the E-banking facility and using the same.
33 respondents from 40 from HDFC Bank and 35 respondents from 40 from ICICI
bank were aware of the E-banking facility and out of that 17 from HDFC Bank and 15
from ICICI Bank were using the same. It was their belief that E-banking is safe and
48
that was the reason they were using. Some of them they still feel insecure while using
the facility. The cases in news make them hesitant towards the security
5. CHARGES LEVIED BY BANK ON THE E-BANKING FACILITY
Nothing comes free to customers. Both the banks under survey charge annual fees for
e-banking which is around 100-200 Rs Annually. Those who feel that nothing is being
charged are highly mistaken. Survey reveals that basic amount is always debited from
their account for use of SMS and Mobile Banking.
At HDFC bank and ICICI bank, Net banking is offered Free to all the Saving and
Current account holders. However there are some charges which is charged on
Monthly basis for Current account holders in both the banks which is otherwise
offered Free to Savings account holders.
Charges keep on changing which needs to be informed to its customers for both the
banks under survey.
6. Usage of E –BANKING by any customer till now
HDFC Bank ICICI Bank
Once in a Month 2 1Thrice in a Month 6 3More than 5 times 7 6More than 10 times 2 5
Total 17 15
49
Interpretation :
Usage of E-banking revels that majorly the frequency of using the E-banking by the
customers falls under Thrice to More than 5 times in a month. This helps the banks to
divert the customers to alternate channel which helps the staff to attend other
customers for productive work. The trend is observed almost same of both the banks.
HDFC banks customer uses this facility for thrice or more than 5 times in a month
while ICICI bank customer uses more than 5 times or more than 7 times a month.
Frequency of using net banking is more in ICICI customer than HDFC customer.
7. Do you think the facility is really helpful?
HDFC BANK
ICICI BANK
Very Strongly 11 12Strongly 6 3
Fair 0 0Not Really 0 0Not at all 0 0
Total respondent who are using E-banking 17 15
50
Interpretation :
Majorly those who are using one or other E-banking facility is Very
strongly or strongly, think that it is really a helpful tool of getting
connected with the banking without going to the bank.
(B)On the basis of Gender:
(1)No. of customers aware about E-Banking
HDFC BANK ICICI BANK YES NO YES NO
MALE 19 4 22 2FEMALE 14 3 13 3
51
Interpretation :
From the survey, it was observed that the composition of Female percent
in banking and being aware about the E-banking cannot be ignored. In
today’s time, female section are now becoming very active in banking as
well using E-banking facilities provided by the banks.
8. WHICH OF THE FOLLOWING BENEFITS ACCRUE TO YOU, WHILE USING E-BANKING SERVICES?
HDFC BANK
ICICI BANK
Time Saving 3 4Inexpensive 6 2
Easy processing 4 1Easy fund transfer 2 1All of the above 2 7
Total respondent who are using E-banking 17 15
52
Interpretations:
HDFC customer said easy processing and inexpensive is benefits of using e banking.
While ICICI customer said all the above benefits accrue to them while using e
banking services.
53
CHAPTER – 5FINDINGS
1. 35 of the respondent of ICICI bank out of 40 are aware compared to 33 in case
of HDFC Bank. Awareness of e banking is more in customer is ICICI bank
2. In HDFC Bank Ltd i.e. 52% of the respondent out of 33 who are aware of the
E-banking are actually using the E-banking facility compared to ICICI Bank
which is 43% of the respondent out of 35 who are aware of the E-banking in
Bank and using it. Use of e banking facility is more in HDFC bank customer
than ICICI bank.
3. Most of the ICICI and HDFC bank customer are using Internet banking is
more followed by the SMS Banking, Phone Banking and Mobile Banking.
4. No. of customer who is using all e banking facility is more in HDFC bank than
ICICI bank.
5. All the customers who are using ICICI bank and HDFC bank’s e banking
facility find it secure and safe.
6. Frequency of using E banking in a month is more in ICICI customer than
HDFC customer. HDFC bank customer are using more than 3 or 5 times in a
month while ICICI bank customers are using more than 5 or 10 times in a
month.
7. Most of the respondents strongly feel that e banking facility is really helpful.
8. HDFC customer said easy processing and inexpensive is benefits of using e
banking. While ICICI customer said all the benefits like easy processing , easy
fund transfer, time saving accrue to them.
54
CHAPTER - 6
SUGGESTIONS
We can see the time is changing and we the passage of time people are accepting
technology there is still a lot of perceptual blocking which hampers the growth it’s the
normal tendency of a human not to have changes work on the old track, that’s also
one of the reason for the slow acceptance of internet banking accounts.
• Internet banking facility must be made available in all branches of these two Banks.
• Customer should be made aware about e banking through staff, hoarding,
advertisement etc.
• Each section of these Banks should be computerized even in rural areas also.
• Personalized banking should be given a thrust as more and more banks are achieving
in usual services.
• Covering up the towns in rural areas with ATMs so that the people in those areas
can also avail better services.
• Prompt dealing with permanent customers and speedy transactions without
harassing the customers.
• Fair dealing with the customers. More contributions from the employees of the bank
are required. The staff should be co-operative, friendly and must be capable of
understanding the problems of the customers.
• Give proper training to customers for using i-banking
• Create a trust in mind of customers towards security of their accounts
55
• Provide a platform from where the customers can access different accounts at single
time without extra charge.
• Make their sites more users friendly. Customers should be motivated to use I
banking facilities more.
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CHAPTER – 7
BIBLIOGRAPHY
References:
● Agarwal, R., Raastogi, S., & Malhotra, A. (2009), “Customers’ perspectives
regarding e-banking in an emerging economy”, Journal of Retailing and
Consumer Services, Vol.16, Iss. 5, pp. 340-351
● Anthoney, R. (2004), “User Friendly E-Banking: A Survey of Online
EBanking Retail Initiatives”, Communications of the ACM, Vol. 47, Iss. 10,
pp.99-102
Websites:
● http://en.wikipedia.org/wiki/Online_banking
● www.icicibank.com
● www.hdfcbank.com
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CHAPTER – 8
ANNEXURE
Questionnaire
Name of the customer
Age:
Gender:
(1)Are you aware about E-banking?
(a)Yes
(b) No
(2)Do you use E-banking?
(a)Yes
(b)No
(3)What type of services are you using under E-banking?
(a)Internet Banking
(b)SMS Banking
(c)Mobile Banking
(d) Phone Banking
(4) Are you feel secured about the E-banking facility given to you?
(a) Feel secured (b) Not feeling secured
(5) Usage of E –BANKING by any customer till now?
(a)Once in Month
(b)Thrice in a Month
(c)More than 5 times
(d) More than 10 times
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(6) Do you think the facility is really helpful?
(a) Very Strongly (b) Strongly (c) Fair
(d) Not Really (e) Not At All
(7) Which of the following benefits accrue to you, while using e-banking services?
(a) Time saving (b) Easy fund transfer
(c) Easy Processing (d)Inexpensive
(8) What do you feel about the charges levied by bank?
__________________________________________________________________
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