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Preeti. Project

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RESEARCH TOPICDigital divide & preference to IT enabled services offered by Indian Banks An Empirical study of Agra customers UNDER THE SUPERVISION OF Dr. K Santi Swarup


Table of ContentsTopics S. no.

Chapter 1: Introduction 1-2 Chapter 2: IT-enabled banking services offered by Indian banks 3-6 Chapter 3: Need & Objective of study7 Chapter 4: Hypothesis7 Chapter 6: Review of Literature... 8 Chapter 7: Research Methodology.. 9 Chapter 8: Limitation of study.10 Chapter 6: Data analysis& Interpretation..11-21 Chapter 7: Hypothesis Testing.22-24 Chapter 8: Findings. 25 Chapter 8: Suggestions & Conclusion25-26 Chapter 9: References APPENDIX


I Preeti Titoriya student of BBM(Hons.) at Faculty of social sciences, Dayalbagh Educational Institute (Deemed University), Agra, Declare that this Dissertation Report is my own work under the supervision of Dr. K. Santi Swarup , Department of Management, Faculty of Social Sciences at Dayalbagh Educational Institute, Agra.

Date: 7-05-2011 Place: Agra (Preeti Titoriya)


I would like to acknowledge all the people who have in any contributed to the completion of my project. First of all, I owe my deepest gratitude to my supervisor Dr. K. Santi Swarup for his inspiring guidance, sympathetic encouragement and invaluable co-operation throughout the work. His sound and critical appreciation has given the work whatever is clarity of expression it should have. I am also obliged to the entire teachers who gave me opportunity to discuss matter from time to time for making this endeavor a success and especially to my guide who helped me during statistical analysis of the data. I am also thankful to librarian and other library staff of Dayalbagh Educational Institute for providing with opportunity for reviewing the related literature.



CERTIFICATEThis is to certify that Ms. Preeti Titoriya a candidate for B.B.M. (Hons.) has satisfactorily worked for her major project under my supervision and the accompanying Project entitled Digital

divide & preference to IT enabled serviceswhich she is

offered by Indian Banks, An Empirical study of Agra customers

submitting to Dayalbagh Educational Institute, Dayalbagh, Agra, for the partial fulfillment of the requirement for the degree of BBM(hons.) in Finance, embodies her original and genuine work.

Dr. K Santi Swarup (Supervisor)Department of Management


The Digital Divide, or the digital split, is a social issue referring to the differing amount of information between those who have access to the Internet (especially broadband access) and those who do not have access. To bridge this digital divide, the role and application of information technology has expanded tremendously during the last decade, especially in rural finance. Innovative ICT approaches adopted by the government and banks and FIs have not only helped reduce transaction costs but also enables banks to operate as branchless entities. The banking industry like many other financial service industries is facing a rapidly changing market, new technologies, economic uncertainties, fierce competition and more demanding customers and the changing climate has presented an unprecedented set of challenges. (1) Banking is a customer oriented services industry, therefore, the customer is the focus and customer service is the differentiating factors. (2) Technology has opened up new markets, new products, new services and efficient delivery channels for the banking industry. Online electronic banking, mobile banking and internet banking are just a few examples.

(3) The IT revolution has set the stage for unprecedented increase in financial activity across the globe. The progress of technology and the development of worldwide networks have significantly reduced the cost of global funds transfer.

5) IT has been providing solutions to banks to take care of their accounting and back office requirements. This has, however, now given way to large scale usage in services aimed at the customer of the banks. IT also facilitates the introduction of new delivery channels--in the form of Automated Teller Machines, Net Banking, Mobile Banking and the like. Further, IT deployment has assumed such high levels that it is no longer possible for banks to manage their IT implementations on a stand alone basis with IT revolution, banks are increasingly interconnecting their computer systems not only across branches in a city but also to other geographic locations

with high-speed network infrastructure, and setting up local area and wide area networks and connecting them to the Internet. As a result, information systems and networks are now exposed to a IT enabled banking services are: 1) Internet banking 2) Mobile banking 3) ATM cards 4) Debit Card & credit Card 5) RTGS & Electronic Fund Transfer(EFT) 6) Tele Banking(Phone Banking) growing number.





Internet Banking lets you handle many banking transactions via your personal computer. For instance, you may use your computer to view your account balance, request transfers between accounts, and pay bills electronically. Internet banking system and method in which a personal computer is connected by a network service provider directly to a host computer system of a bank such that customer service requests can be processed automatically without need for intervention by customer service representatives. The system is capable of distinguishing between those customer service requests which are capable of automated fulfillment and those requests which require handling by a customer service representative. The system is integrated with the host computer system of the bank so that the remote banking customer can access other automated services of the bank. The method of the invention includes the steps of inputting a customer banking request from among a menu of banking requests at a remote personnel computer; transmitting the banking requests to a host computer over a network; receiving the request at the host computer; identifying the type of customer banking request received; automatic logging of the service request, comparing the received request to a stored table of request types, each of the request types having an attribute to indicate whether the request type is capable of being fulfilled by a customer service representative or by an automated system; and, depending upon the attribute, directing the request either to a queue for handling by a customer service representative or to a queue for processing by an automated system.



Mobile banking (also known as M-Banking, mbanking, SMS Banking) is a term used for performing balance checks, account transactions, payments, credit applications and other banking transactions through a mobile device such as a mobile phone or Personal Digital Assistant (PDA). The earliest mobile banking services were offered over SMS. With the introduction of the first primitive smart phones with WAP support enabling the use of the mobile web in 1999, the first European banks started to offer mobile banking on this platform to their customers Mobile banking has until recently (2010) most often been performed via SMS or the Mobile Web. Apple's initial success with iPhone and the rapid growth of phones based on Google's Android (operating system) have led to increasing use of special client programs, called apps, downloaded to the mobile device. In one academic model, mobile banking is defined as: Mobile Banking refers to provision and availment of banking- and financial services with the help of mobile telecommunication devices.The scope of offered services may include facilities to conduct bank and stock market transactions, to administer accounts and to access customised information." iii. AUTOMATED TELLER MACHINES (ATM):

An automated teller machine or automatic teller machine (ATM) is an electronic computerized telecommunications device that allows a financial institution's customers to directly use a secure method of communication to access their bank accounts, order or make cash withdrawals (or cash advances using a credit card) and check their account balances without the need for a human bank

teller . Many ATMs also allow people to deposit cash or cheques, transfer money between their bank accounts, top up their mobile phones' pre-paid accounts or even buy postage stamps. On most modern ATMs, the customer identifies him or herself by inserting a plastic card with a magnetic stripe or a plastic smartcard with a chip, that contains his or her account number. The customer then verifies their identity by entering a passcode, often referred to as a PIN (Personal Identification Number) of four or more digits. Upon successful entry of the PIN, the customer may perform a transaction. If the number is entered incorrectly several times in a row (usually three attempts per card insertion), some ATMs will attempt retain the card as a security precaution to prevent an unauthorised user from discovering the PIN by guesswork. Captured cards are often destroyed if the ATM owner is not the card issuing bank, as non-customer's identities cannot be reliably confirmed. The Indian market today has approximately more than 17,000 ATMs. iv. DEBIT CARD:

Debit cards are also known as check cards. Debit cards look like credit cards or ATM (automated teller machine) cards, but operate