Introduction The information technology has revolutionized various aspects of our life. The world at large is rapidly entering into the 'Net Age'. Internet or simply 'Net' is an inter connection of computer communication networks covering the whole world. The growth and expansion of Internet and Information Technology have facilitated the emergence of E-Commerce.
y E-Commerce essentially is the paperless exchange of business information spread through computer devices like Electronic Data Interchange, E-Mail, Electronic Bulletin Boards - in short the tools such as Internet, Intranet and Extranets created under the network based technologies. Thus, E-commerce in today's context is a commercial transaction routed through Internet. y When the business and commerce tend to be in the electronic modes, banking can never remain isolated. When E-commerce refers to carrying on business transactions electronically, it covers any form of business including banking. y Hence, E-banking implies performing basic banking transactions by customers round the clock globally through Electronic Media. y Modern banking is more information based, speedy and boundary less due to the impact of E-Revolution. When most business and commercial enterprises tend to become internetworking organizations, banking has to be E-banking in the new century.
y Today's banking is virtual Banking. Virtual banking
denotes the provision of banking and other related services through the extensive use of IT, without direct resource to the bank by customers. The salient features of virtual banking are the overwhelming reliance on IT and the absence of physical bank branches to deliver banking services to customers. y The principal types of virtual banking services include Automated Teller Machines (ATMs), shared ATM networks, Electronic Funds Transfer at point of sale (EFTPoS), smart cards, stored value cards, phone banking, home banking, internet and intranet banking. y Thus, the practice of banking has undergone a significant transformation due to the adoption of E- banking
Traditional Banking VS E BankingTraditional Bankingy In traditional banking, they E-banking enables the customers
customer has to visit the branch of the bank in person to perform the basic banking operations, viz., account enquiry, funds transfer, cash withdrawals etc. y The brick and mortar structure of a bank is essential for the performance of banking functions.
to perform the basic banking transactions by sitting at their office or at homes through viewing their Account details and perform the transactions by sitting at their office or at homes through PC or LAPTOP. The customers can access the banks website for viewing their Account details and perform the transactions on account as per their requirements. y With E-banking, the brick and mortar structure thereby giving a concept of virtual banking, the brick and mortar structure of the traditional banking gets converted into a click and portal model, thereby giving a concept of virtual banking a real shape.
y Thus, today's banking is no longer confined to branches.
y y y y y
Customers are being provided with additional delivery channels which are more convenient to customers and are cost effective to the banks. These delivery channels include ATM, Tele Banking, Internet Banking, Mobile Banking, Home Banking etc. Thus, E-banking facilitates banking transactions by customers round the clock globally. The popular electronic delivery channels are the following: (i) ATMs (ii) Smart Cards (iii) Tele banking (iv) Internet banking
y E-banking transactions y Though any type of transactions can be handled through y E-banking, in the initial phase most of the basic banking transactions can be performed conveniently through internet banking. y The following are some of the basic functions: y . Account Enquiry y . Fund transfer y . Payment of Electricity, Water, Telephone bills etc. y . Online payment for transactions actually performed through Internet y . Request for issuance of cheque book, draft etc. y . Statement of Accounts y . Access to latest schemes y . Access to rates of interest arid other service
Need for the studyy This pilot survey has been undertaken in order to know
the banking practices of the residents of Shivamogga city. y The research focuses on the people who have a bank account, the service most preferred by them and also the challenges faced by them.
Objectives of the Studyy To analyze the banking activities of people of Shivamogga
city. y To identify the most preferred E-Banking services by the people of Shivamogga city. y To know the frequency of use of E-Banking services by the people of Shivamogga city. y The problems encountered by the users of E-Banking services of Shivamogga city.
Scope of the StudyThe present study is undertaken in Shivamogga city. The study provides insights about the banking habits of the people in Shivamogga city, their most preferred EBanking service. The frequency in which they use EBanking services and the problems they face in using EBanking services. y Limitations of the Study :y The primary data is collected through a structured questionnaire and the sample size is only limited to 50 respondentsy
Research Methodology1. 2. Nomenclature : Classification of the study are The study area selected is the Shivamogga city. Research design : In the study both exploratory &descriptive research design has been used. Judgmental or purpose sampling method is used for gathering the primary data. The respondents are the residents of Shivamogga city who have any type of bank a/c. Sampling size & tool : I have selected 50 samples for the study.All the selected respondents are bank a/c holders of one type or the other.
4. Research Tools : The research has been conducted by using structured Questionnaire method for collecting primary data. 5. Sources of Date : Primary data has been collected through personal interview method. Secondary data has been collected from different sources of literature like magazines, news papers, text books, journals & internet. 6. Statistical Tool : Percentage method is used for analysis of data. The result of the research is presented through tables followed by pie charts and bar graphs.
Findingsy It is revealed from the study that definitely Core Banking y y
is preferred more than Branch Banking All the respondents have an S B account, it is the most popular type of account held by the respondents Majority of the people have their accounts in nationalized commercial banks like SBI and SBM compared to Private banks. ATM is the most preferred E Banking service by the respondents funds
y The respondents also use these services quite frequently, maximum number of respondents use them several times a week. y The respondents use E Banking serviced for the purpose of account enquiry and transfer of y The respondents also face a number of problems while using E Banking services y Many respondents face technical problems while using E Banking services y Many respondents are concerned about the security aspects while they process E Banking transactions. y Many respondents are also of the opinion that they are unaware of many of the E banking services due to which they are unable to use many such services
Suggestionsy Many people are unaware of many E banking services and
hence unable to use the same. There is a need to create awareness about many E Banking services People are facing many technical problems like machine breakdown, software problem etc. Measures should be taken to avoid such problems People are conscious about the security issues. Measures should also be taken to install confidence among the users. People especially belonging to business class demand for reduced service charges. Competitive service charges will definitely make E Banking services more popular People mainly belonging to the business class demand for relaxation of any type of restrictions on the usage of E Banking services. S
Conclusiony The concept and scope of E-banking is still evolving in India. It
facilitates an effective payment and accounting system thereby enhancing the speed of delivery of banking services considerably. y While E-banking has improved efficiency and convenience, it has also posed several challenges to the regulators and supervisors. The RBI has been preparing to upgrade itself as a regulator and supervisor of the technologically dominated financial system. It issued guidelines on risks and control in computer and telecommunication system to all banks, advising them to evaluate the risks inherent in the systems and put in place adequate control mechanisms to address these risks. y The existing regulatory framework over banks has also been extended to E-banking. However, there is a need to create more awareness about the innovative E Banking products among the common people to make them more popular.