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Ebanking 4th sem[1]

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    Submitted By:

    Parneet Kaur

    MBA-IV Sem

    Roll No. 80802320274

    Regional Institute of Management and Technology,

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    Mandi Gobingarh

    Declaration

    Hereby I declare that the project report entitled Present Scenario of E-Banking inIndia submitted for the degree of Master of Business Administration, is my original

    work and the project report has not formed the basis for the award of any diploma,

    degree, associate ship, fellowship or similar other titles. It has not been submitted to any

    other university or institution for the award of any degree or diploma.

    Parneet Kaur

    MBA-IV Sem

    Roll No.:80802320274

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    Contents

    Chapter 1 :Introduction

    Introduction to the E-Banking

    Review of Literature

    Chapter 2 :Research Methodology

    Objectives of the Study

    Chapter 3 :Analysis and Interpretation

    Data Analysis

    Chapter 4 :Conclusion

    Findings

    Recommendations

    Limitations

    Questionaire

    Bibliography

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    Executive Summary

    E-banking utilizes technology to allow a bank's customers and other stakeholders to

    interact and transact with the bank effortlessly through a variety of channels such as the

    Internet, wireless devices, ATMS and physical branches. Internet banking is one

    component of a wide-ranging E-banking offering. E-banking has exploded onto the web

    and the Internet is a powerful and cost effective medium for business to interact with and

    service their customers. The number of online banking services to customers continues to

    grow and the Internet offers enormous opportunities for banks, and other financial

    services to fundamentally reshape their organizations. Banks can generate revenue

    through increased account, access fees and benefit from promotional opportunity to cross

    sell products such as credit cards and loans Internet enables banks to offer low cost, high

    value added financial services. It can be said that finally banks are finding that a

    comprehensive online banking strategy is essential for success in the increasingly

    competitive financial services market.

    Competition and changes in technology and lifestyles have changed the face of banking

    and banks in the present environment are seeking alternative way to provide and

    differentiate their services. For success in the increasingly competitive financial services

    market, banks are finding that a comprehensive online banking strategy is essential which

    also provides the essential security requirements. Security policy should include

    management commitment, technological support and effective disseminations of the

    policy and the security awareness of all users. Security measures should be taken very

    seriously by the banks because the standard for secure electronic transactions on the

    Internet and its widespread adoption including security measures like encryption, digital

    authentication, and verification of on-line identity, increase consumer confidence. Such

    advances in Internet security can surely put banks in perspective again as financial

    intermediaries and facilitators of complete commercial transaction via electronic

    networks.

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    The opportunities for banks in the Internet arena are varied as they can become

    technology providers by spinning off technology resources to start up new business

    stream, become content providers for information regarding products, indices, etc and

    enablers by providing back bone systems to support multiple payment system

    alternatives. Also, consumers are increasingly looking for services they can access from a

    singly entry point Thus, E-banking will offer a transparent environment to compare the

    cost and quality of services offered by a variety of financial institutions. As a result the

    focus is going to shift from generic banking service to customized banking services.

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    CHAPTER 1

    INTRODUCTION

    TO

    E-BANKING

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    DEFINITION OF E-BANKING

    Electronic banking, also known as electronic funds transfer (EFT), is simply the use of

    electronic means to transfer funds directly from one account to another, rather than by

    cheque or cash. E-banking means any user with a personal computer can get connected to

    his banks website to perform any of the virtual banking functions.

    You can use electronic funds transfer to:

    Have your paycheck deposited directly into your bank or credit union checking

    account.

    Withdraw money from your checking account from an ATM machine with a

    personal identification number (PIN), at your convenience, day or night.

    Instruct your bank or credit union to automatically pay certain monthly bills from

    your account, such as your auto loan or your mortgage payment.

    Have the bank or credit union transfer funds each month from your checking

    account to your mutual fund account.

    Have your government social security benefits check or your tax refund deposited

    directly into your checking account.

    Buy groceries, gasoline and other purchases at the point-of-sale, using a check

    card rather than cash, credit or a personal check.

    Use a smart card with a prepaid amount of money embedded in it for use instead

    of cash at a pay phone, expressway road toll, or on college campuses at the library's

    photocopy machine or bookstores.

    Use your computer and personal finance software to coordinate your total

    personal financial management process, integrating data and activities related to your

    income, spending, saving, investing, recordkeeping, bill-paying and taxes, along withbasic financial analysis and decision making.

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    In simple terms, it means banking without involving any physical exchange of money,

    instead carrying on transactions electronically, from one account to another, using the

    internet.

    E-Banking can also be defined as the automated delivery of new and traditional banking

    products and services directly to customers through electronic, interactive communication

    channels. E-Banking includes the systems that enable financial institution customers,

    individuals or businesses, to access accounts, transact business, or obtain information on

    financial products and services through a public or private network, including the

    internet. Customers access e-banking services using an intelligent electronic device, such

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    as a personal computer(PC), personal digital assistant (PDA), automated teller machine

    (ATM), kiosk, or Touch Tone Telephone.

    Electronic banking is conducted by using Automatic Teller Machines (ATMs),

    telephones (not via the Internet) or debit cards. Debit cards look like a credit card. But

    unlike a credit card, using a debit card removes funds from your bank account

    immediately.

    Some electronic banking services are ATMs, direct deposit and withdrawal services, pay

    by phone systems, point-of-sale transfer terminals, Web banking or PC banking services,

    even banking from your mobile phone. Electronic banking makes use of electronic

    currency. Check cards or debit cards, smart cards or stored-value cards, digital cash and

    digital cheques are the different types of electronic currency. If you use a check card to

    make purchases, the funds are transferred immediately from your account to the store's

    account. Smart cards have a specific amount of credit embedded in it. The chip in the

    card contains both personal and financial information. Digital cash is one way of

    allowing consumers make purchases over the Internet instead of using a credit card.

    Digital checks are used with electronic bill paying services. Consumers can use personal

    finance software packages or they can use software provided by a bank.

    Electronic banking, including online banking may also be an important factor while

    analyzing the competitive implications of U.S. bank mergers and acquisitions.

    On line banking or PC banking offers a wider outreach for smaller institutions. Larger

    institutions may be able to manage the technical overhead and security concerns over

    Internet banking. Electronic banking offers consumers the convenience of accessing and

    transferring funds between their accounts, paying their bills and other purchases, twenty

    four hours a day, seven days a week.

    On-line banking is a service provided by many banks, thrifts, and credit unions that

    allows you to conduct banking transactions over the Internet using a personal computer,

    mobile telephone, or handheld computer (such as a "personal digital assistant").

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    User may be able to:

    Access accounts round-the-clock, even on weekends

    See balances on-line and find out whether checks or deposits have cleared

    Transfer funds between accounts

    Download information directly into personal finance software

    Receive and pay bills on-line (without check writing, envelopes, or stamps).

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