MARWARI COLLEGE, RANCHI

A Project report on

A study of Online Banking Services provided by Commercial Banks.

In partial fulfilment of Bachelor of Commerce Program

Under Ranchi University, Ranchi

Under the supervision and guidance of

“Dr. Kumar A.N Sahadeo”

Department of Commerce
MARWARI COLLEGE

Submitted by
NAME:- Komal Kaur

CLASS:- B.Com Sem VI SESSION:- 2017-2020

CLASS ROLL NO:- 299

EXAM ROLL N0:- 17MCRBC810664

 CERTIFICATE

This is to certify that this project titled, “ A study of Online Banking

Services provided by Commercial Banks” has been submitted by
Komal kaur, a student of B.Com Semester VI session 2017-2020
bearing Exam Roll No:- 17MCRBC810664 of Marwari College.

This project has been submitted in Partial fulfilment

for the award of Bachelor of Commerce degree under Ranchi
University, Ranchi.

This work done by her is appreciable and I wish her all

success in her life.

Dr. Kumar A.N Sahadeo

Supervisior/guide/H.O.D External
Department of Commerce
MARWARI COLLEGE
 DECLARATION

I, Komal kaur do hereby declare that the project entitled “A study of

Online Banking Services provided by Commercial Banks” is
submitted to Marwari college, in partial fulfilment of the requirement
for the award of Bachelor of Commerce degree under Ranchi
University, Ranchi, is an authentic work done by me.

The content of the project does not form a

basis for the award of any previous degree or diploma in full or part
to the best of my knowledge.

Komal kaur
Signature of Candidate
 ACKNOWLEDGEMENT

I am conscious of my indebtedness to each and

every individual, who helped me in many ways in the preparation of
this project entitled “A study of Online Banking Services provided
by Commercial Banks.”

I am deeply indebted to my Supervisor and guide

Dr. Kumar A.N Sahadeo for his invaluable and untiring guidance and
continuous encouragement all through the tenure of my research
work.

I wish to express my profound sense of gratitude to

commerce department for the encouraging support and positive
attitude throughout the process.

I express my sincere gratitude to my parents, friends

and well-wishers for their unconditional love, support and
encouragement throughout the project.

KOMAL KAUR
 Index

Chapter Particular
1. INTRODUCTION(Commercial bank)
2. INTRODUCTION(Online Banking)

3. Traditional Banking vs Online

Banking

4. Study of Services

5. Pros and Cons Of Online Banking

Services

6. Conclusion

7. Biblography
 CHAPTER 1

1.1 INTRODUCTION
A commercial bank is a financial institution which performs the
functions of accepting deposits from the general public and giving
loans for investment with the aim of earning profit.

In fact, commercial banks, as their name suggests, axe profit-

seeking institutions, i.e., they do banking business to earn profit.

They generally finance trade and commerce with short-term

loans. They charge high rate of interest from the borrowers but
pay much less rate of Interest to their depositors with the result
that the difference between the two rates of interest becomes the
main source of profit of the banks. Most of the Indian joint stock
Banks are Commercial Banks such as Punjab National Bank,
Allahabad Bank, Canara Bank, Andhra Bank, Bank of Baroda, etc

Functions of Commercial Banks:

1. It accepts deposits.
2. It gives loans and advances.
3. Discounting bills of exchange or bundles.
4. Overdraft facility.
5. The bank acts as an agent of its customers and gets commission
for performing agency functions.
 1.2 Overview of Commercial Banks in India

Commercial banks in India are broadly classified into three

categories:
1. Public Sector Banks: The term “public sector banks”
refers to a situation where the majority equity stake in the
banks is held by the government. The Indian Government
keeps default holdings of a minimum 51% shareholding, but
management control is only with the Central Government,
thereby classifying them as Public Sector Banks.
Public sector banks include the State Bank of India and its
Associates, Nationalized Banks (including Industrial
Development Bank of India Ltd (IDBI) since December 2004),
and Regional Rural Banks.

2. Private Sector Banks: They are the banks in which

individuals and corporations are the majority shareholders.
In India, banks were nationalized in two phases, in 1969 and
1980. In 1993, the Reserve Bank of India (RBI), the
regulating body for all the country’s banking organizations,
allowed many new commercial banks in India to start
operations. Some of the major commercial banks in India
that were given licenses are ICICI Bank, HDFC Bank, Axis
Bank, Yes Bank, and Kotak Mahindra Bank.
Private sector banks are recognized as the banks for the new
generation, providing innovative products, better IT support
systems, and competitive pricing for their products. As of the end
of March 2017, there are 21 private sector banks in India. Besides
these, four local areas banks are also categorized as private banks.
 3. Foreign Banks: They are the final category of banks that
serve as an important segment of the commercial banking
sector. They are headquartered outside India and they
operate from their wholly-owned subsidiaries or branches in
the country. The foreign banks include Royal Bank of
Scotland, Bank of America, Barclays Banks, Deutsche Bank,
etc.

1.3 Top 10 Commercial Banks in India are:

State Bank of India (SBI)

SBI is India’s largest public sector bank and is ranked 232 nd on the
Fortune Global 500 list of the world’s biggest corporations. The bank is
also the country’s biggest lender. It recently joined the list of top 50 banks
globally in terms of asset distribution, following its merger with other
associate banks:

• State Bank of Travancore (SBT)

• State Bank of Patiala (SEP)
• State Bank of Mysore (SBM)
• State Bank of Hyderabad (SBH)
• State Bank of Bikaner and Jaipur (SBBJ)

As of March 2017, the total combined network of the above mentioned

associate banks is 17,170 branches in India, in addition to 198 offices in 37
countries and 301 correspondents in 72 countries, and a workforce of
209,567 employees. The combined net profit of these banks was Rs.
10,484 crores as of March 2017.
 Deposits 2,044,751 (US$319 billion)

Loans 1,571,078 (US$245 billion)

Investments 765,989 (US$120 billion)

Total Assets 2,705,966 (US$420 billion)

Return on Assets 0.41%

No. of Branches 17,170

CICI Bank (Industrial Credit and Investment Corporation of
India)

ICICI Bank is India’s largest private sector bank. The bank, which was a
wholly-owned subsidiary of ICICI Limited, is a multinational banking and
financial company based in Mumbai, Maharashtra, India with its
registered office in Vadodara, Gujarat.

ICICI Bank was the first Indian bank to list on the NYSE in 2000, along
with its 5 million American Depository Shares, which was oversubscribed
13 times the offer size. It operates a network of 4,850 branches and 14,404
ATMs in India and is present in 19 countries worldwide.

HDFC Bank

Founded in 1994, HDFC Bank is headquartered in Mumbai, Maharashtra.

HDFC is India’s largest around 84,325 staff as of March 2017 and
operates a distribution network of 4,727 branches and 12,220 ATMs
across 2,666 cities.

The bank is also present in Bahrain, Hong Kong, and Dubai. The
company’s financials as of March 2016 are below:

Total Revenues: 74,373 crores (US$12 billion)

Total Assets: 86,384,021 lakhs (US$130 billion)

Profits: 12,817 crores (US$2 billion)

Axis Bank

Axis Bank is the third-largest private sector bank in India after ICICI and
HDFC. It manages 3,304 branches and 14,200 ATMs across the country
as of March 2017. The bank’s financial data as of March 2016 is as follows:

Revenue: US$6.5 billion

Net Income: US$1.3 billion

Total Assets: US$82 billion

Total Equity: US$74 million

No. of Employees: 56,086

Kotak Mahindra Bank

Kotak Mahindra Bank is considered one of the upcoming commercial

banks in India and is the fourth biggest private-sector bank in the country
according to market capitalization. The bank was founded by Uday Kotak
in 1985. It operates a network of 1,369 branches across 689 locations and
2,163 ATMs in the country. It employs 46,500 staff following its Rs
15,000 crore (US$2.3 billion) merger with ING Vyasa Bank in 2015. The
bank’s financial results as of March 2016 numbers are as follows:

Revenues: INR 27,974 crores (US$4.4 billion)

Net Income: INR 3,431 crores (US$540 million)

Total Assets: US$15.8 billion

IndusInd Bank

The bank was founded in 1994 by Hinduja Group. Known for its strong
remittance business, IndusInd Bank’s market capitalization is Rs 50,100
crores (US$7.8 billion). The bank employs around 15,500 staff through a
network of 1,000+ branches and around 2,000 ATMs across the world. As
of March 2016, total revenue was US$1.3 billion and total assets were
US$15.7 billion.

Bank of Baroda

Bank of Baroda, better known as India’s International Bank, is

headquartered in Vadodara (formerly known as Baroda), Gujarat, India.
According to the latest data, the bank is ranked 1,145th on Forbes Global
2000 list. Its total assets are valued at Rs 3.58 trillion. It operates through
a network of 5,538 branches in India and abroad and manages around
10,441 ATMs as of July 2017.

Punjab National Bank (PNB)

One of the first banks to start operations in India, Punjab National Bank
was founded in 1894. Headquartered in Delhi, the bank’s market
capitalization is INR 30,312 crores (US$4.7 billion). It employs 70,801
staff as of March 2016. The Government of India owns PNB, which is also
known as First “Swadeshi Bank” of India.
YES Bank

Founded in 2004 by Mr. Rana Kapoor and Mr. Ashok Kapoor, YES Bank
is known as a “Full-Service Commercial Bank.” The bank is known for its
excellent Non-Performing Assets (NPA) ratio, which is the lowest in the
industry. YES Bank lists total assets of INR 215,060 crores (US$14 billion)
as of March 2017. It also posted total revenues of INR 9,954 crores and a
net profit of INR 3,300 crores in the same period.

IDBI Bank (Industrial Development Bank of India)

Headquartered in Mumbai, IDBI Bank was established in 1964 by an act

of Parliament to provide credit and was owned by the Central
Government. The bank’s aggregate balance sheet is INR 3.74 trillion as of
March 2016. IDBI is the currently the tenth largest development bank in
the world, operating 3,700 ATMs and 1,995 branches, and employing
around 17,570 individuals as of March 2016.
 CHAPTER-2

2.1 INTRODUCTION
Online banking, also known as internet banking, e-banking or virtual banking,
is an electronic payment system that enables customers of a bank or
other financial institution to conduct a range of financial transactions through the
financial institution's website. The online banking system will typically connect to
or be part of the core banking system operated by a bank and is in contrast
to branch banking which was the traditional way customers accessed banking
services. To access a financial institution's online banking facility, a customer with
internet access will need to register with the institution for the service, and set up
a password and other credentials for customer verification. The credentials for
online banking is normally not the same as for telephone or mobile banking.
Financial institutions now routinely allocate customers numbers, whether or not
customers have indicated an intention to access their online banking facility.
Customer numbers are normally not the same as account numbers, because a
number of customer accounts can be linked to the one customer number.
Technically, the customer number can be linked to any account with the financial
institution that the customer controls, though the financial institution may limit
the range of accounts that may be accessed to, say, cheque, savings, loan, credit
card and similar accounts.
2.2 TYPES OF ONLINE BANKING

➢ ATM-Automated Teller Machine

➢ Personal Computer Banking
➢ Phone Banking and Mobile Banking
➢ Email Banking
➢ National Electronic Fund Transfer(NEFT)
 CHAPTER 3
Traditional Banking vs E-Banking

Basis of
Traditional Banking Internet Banking
Difference

Internet banks do not have physical

Banks exist physically for
Presence presence as services are provided
serving the customers,
online.

It consumes a lot of time as It does not consume time as

customers have to visit customers do not have to visit banks
banks to carry out bank to check bank balances or to
Time transactions like — transfer money from one account to
checking bank balances, another. Customers can access their
transferring money from account readily from anywhere with
one account to another. a computer and internet access.

People have to visit banks Internet banking is available at any

Accessibilit
only during the working time and it provides 24 hours
y
hours. access.

Online banking is the tempting

Security Traditional banking does target for hackers. Security is one of
not encounter e-security the problems faced by customers in
threats. accessing accounts through internet.
Customers who often travel
Customers who often travel abroad
Finance abroad cannot pay close
Control
can have greater control over their
attention and control of
finances.
their finances.
Customers do not have to spend
Customers have to spend money for visiting banks. They can
Expensive
money for visiting banks. avoid bank charges that may be
charged for certain teller
 Basis of
Traditional Banking Internet Banking
Difference
transactions or when they pay bills
electronically — directly from their
account to the merchant. It helps to
save money on postal charges.

ln traditional banks, the

In online banking, the customers do
Customer employees and clerical staff
Service
not have to stand in queues to carry
of the bank can attend only
out certain bank transactions.
few customers at a time.

Customers can have face to Customers can have only electronic

Contact face contact in traditional contact.
banking.

The cost incurred by

Such costs are eliminated as the
traditional banks includes a
Cost banks do not have physical
lot of operating and fixed
presence.
costs.
 CHAPTER 4
STUDY OF SERVICES

4. 1 RECENT DEVELOPMENT OF THE INDIAN

BANKING SERVIVCES

The Indian economy’s liberalisation in the early 1990s has resulted

in the conception of various private sector banks. This has sparked a
boom in the country’s banking sector in the past two decades4. The
revenue of Indian banks grew four-fold from US$ 11.8 billion to US$
46.9 billion, whereas the profit after tax rose nearly nine-fold from US$
1.4 billion to US$ 12 billion over 2001-105. This growth was driven
primarily by two factors. First, the influx of Foreign Direct Investment
(FDI) of up to 74 per cent with certain restrictions 4. Second, the
conservative policies of the Reserve Bank of India (RBI), which have
shielded Indian banks from recession and global economic turmoil.
Figure 1.1 and 1.2 compares the country’s Banking Index (Bankex) with
the Sensex. The Bankex is an index tracking the performance of important
banking sector stocks, and has grown at a compounded annual growth
rate (CAGR) of approximately 20 per cent over 2003-126. The Figure
below shows that the Bankex and the Sensex have had similar growth
trends over the past decade.
 Attitude
• Relative Advantage
• Compatibility
o Values
o Internet Experience
o Banking Needs
• Complexity
• Trialability
• Risk Usage of
Online
Subjective Norms Banking
Services
Perceived Behavioral Control
 Self-Efficacy
 Facilitating Conditions
o Availability of Government Support
o Availability of Technology Support

4.2 FACTORS INFLUENCING ONLINE BANKING

SERVICES.
The prime concern of Ghanaian banks’ customers in
online banking adoption is security and safety measures PIN
security, individual data protection, confidentiality, hacking are all
massive concerns for the adoption of internet banking for customers.
Since there are no human interactions to assure the customer of the
successfulness and safeties of transactions, many and more
consumers are reluctant in putting their trust in non-person services
identified by Benamati & Serva (2007). However, a study that is
worthy of mentioning is the one conducted by Mukherjee &Nath
(2003) which stipulates that the trust of online banking between the
bank and its customers depends upon loyal interactions and
inventive behaviour. However, in a survey conducted by Ling et al
(2011) they argued that there are no such constructive connection
between technology and perceived online trust. They went on to
observe that rather websites that are perceived to be user friendly
and beneficial are likely to upsurge customers trust in online
banking.

1. The perceived usefulness of online banking:

There are two main types of perceived usefulness and are categorized as
intended and unintended rewards (Lee, 2008) . Lee explained that the
intended rewards are the immediate and tangible rewards that consumers
enjoy using online banking services such as lower transaction fees, high
deposit rates, opportunities to prizes among others. The unintended rewards
on the other hand being those benefits that are palpable and tough to measure
like services that allows customers to perform banking transactions anywhere
in the globe.

2. Technology Acceptance Model (TAM):

The literature has shown that TAM has expansively been used by various
studies in this same area of study around the globe to test how technology is
being accepted by consumers over the years. TAM which was developed
originally by Davis in 1989, is used to explain how a customer accepts or
decline the use of a technology based upon “perceived ease of use” and
“perceived usefulness” of a technology (Aldas-Manzano, et al 2009).
 Perceived usefulness

Behavioural System
External Attitude toward

variable using intention of use Usage

Perceived Ease of Use

3.Government's measures to support online banking:

A study conducted by Chong et al (2010) in Vietnam found out that

a government's support in connection with consumer intention to use online
banking is highly essential. Furthermore, it has been observed that in other
to support the promotion of online services such as online banking adoption,
online shopping, online payment of bills among others, governments should
offer free basic ICT programs in basic schools that will concentrate on the
teaching of basic computer knowledge and Internet awareness (Nasri, 2011).
The reason being that, as more people become IT literates, the more they will
accept online services and for that matter; online banking adoption will
increase. The government of has created an enabling policy and regulatory
environment to expand and investment in mobile and online banking in the
banking sector. The aim of the policy is to enable the expansion of a
dependable and cost-effective world class standard communications setup &
facilities, underpinned by suitable high-tech novelties and reachable by
improve the advancement of monetary competitiveness in a knowledge-
driven environment. Additional legislations that have being developed to
support the policy are;

➢ Cyber Security Bill

➢ Data Protection Bill
➢ Electronic Communications Regulation
➢ Electronic Regulation on Dumping of Electronic Waste
➢ National Digital Content Management Bill.
4.3 PROBLEMS FACED BY ONLINE BANKING SERVICES

1. Technology and Security Standards

Banks should designate a network and database administrator
with clearly defined roles as indicated in the Group’s report.Banks should have a
security policy duly approved by theBoard of Directors. There should be a
segregation of duty of Security Officer / Group dealing exclusively with
information systems security and Information Technology Division which actually
implements the computer systems. Further, Information Systems Auditor will audit
the information systems.

2. Legal Issues
Considering the legal position prevalent, there is an obligation on the part of banks
not only to establish the identity but also to make enquiries about integrity and
reputation of the prospective customer. Therefore, even though request for opening
account can be accepted over Internet, accounts should be opened only after proper
introduction and physical verification of the identity of the customer.

3. Regulatory and Supervisory Issues

As recommended by the Group, the existing regulatory framework
over banks will be extended to Internet banking also.Only such banks which are
licensed and supervised in India and have a physical presence in India will be
permitted to offer Internet banking products to residents of India. Thus, both banks
and virtual banks incorporated outside the country and having no physical presence
in India will not, for the present, be permitted to offer Internet banking services to
Indian residents
A. Risks
E-Banking poses some different risks as compared to the traditional
banking. These risks are more pronounced in the case of Internet banking. Firstly,
the risk of technological changes has to be carefully watched. This is essential to
update technologies and remain cost effective and customer friendly.

B. Security Issues
While making online payments or transferring money from one
account to another, the online bankers are always concerned about the hackers and
anti-social elements. Hacking enables the unethical hackers to penetrate the
accounts of online bankers, and spend their money.

C. Necessity of the Internet

For availing the benefits of online banking one should have access
to the Internet. For this purpose, he should own a desktop, laptop or PDA device,
and an Internet connection.
Start from scratch:

Some banks allow you to open accounts online, without the need to
print or sign anything. In the past, you had to sit with a personal banker during
business hours. Learn more about opening accounts online.

Pay bills:

Instead of writing checks to pay bills, you can have your bank
mail a check (or simply transfer the money to your payee electronically).
Learn more about online bill pay.

Transfer funds:

Need to move money from your checking account to your

savings account (or from one bank to another via ACH)? How about putting extra
cash into a certificate of deposit (CD)? In the past you had to visit the branch or
wait on hold to get this done. Online banking makes it easier. Find out how to move
money.

Apply for loans:

Loans are a “paperwork” intensive process. But they don’t have

to be. Type in your information and your bank will get back to you with an answer.
Rates:

Online banks are known for better rates. In theory, you should be able to earn
more in your savings accounts and pay lower interest rates on loans. It’s always a
good idea to shop around and compare online banking rates to traditional rates, but
you’ll almost always do better online. Some brick-and-mortar banks offer online
options (you’ll have to live without paper statements and the ability to bank with a
teller, for example).

Deposit cheque:

When you get a cheque, there are several ways to deposit it. The
fastest and easiest option is to use remote cheque deposit: snap a photo of the
cheque and submit it to your bank for payment. There’s no need to visit a branch
or mail the check in. Learn how to deposit cheque with your mobile device.

Text message:

In addition to fancy applications and web pages, you can use “old-
fashioned” text messages to manage your account, check balances, and more. This
method is slightly faster for simple and repetitive tasks.
 CHAPTER 5

5.1 Pros and Cons of Online Banking:

✓ There are numerous benefits to online banking, and it’s worth at least
having the option to bank online. But you might also prefer some
features of traditional banks and credit unions.
✓ If you’re not comfortable with technology, online banking may be
more trouble than it’s worth. Plus, glitches happen, and if your
computer (or the bank’s computer) isn’t working then there’s not
much you can do. For complex situations (like pesky customer
service problems or discussions about different types of loans), it
might be best to have a face-to-face conversation.
✓ There’s also the issue of getting cash. Online-only banks typically
provide a debit card that you can use to withdraw cash, but you’ll
need to find free ATMs (or pay fees).
The recent financial breach in the Indian banking system which led to details of
over 3.2 million debit cards being compromised, has put a question mark over
the security of 'convenient' electronic transactions. Technology has made
banking very easy: Many banking functions are now available to you 24X7 and at
your finger tips via the mobile. But the flip side of the coin has now shown up.
With all the advantages that the world of internet banking offers, there are
certain risks involved, which remain huge concerns for the users.

If a recent survey by Telenor is to be believed Indians are losing more money to

online fraudsters than their Asian counterparts. As per the statistics, 36%
Indians were cheated online, which is about Rs 8.19 lakh average financial loss
per person from Internet scams, compared with Rs 6.81 lakh per person in Asia.
The survey further reveals 17% of the respondents have fallen prey to fake bank
e-mail fraud.

There are various ways in which fraudsters may try to deceive you into giving
them your personal and security details. Here are some of the common online
banking frauds that are prevalent -

Trojan: Trojan is an internet virus that gets installed in your computer while
browsing internet or downloading from unsecured websites. . Once a Trojan is
installed in your system the malware monitors your online activities and
reads/steals sensitive information such as passwords and credit card numbers
etc.

Phishing Emails: As the name suggests, these are fraudulent emails, claiming to
come from the authorised channel. Further explaining the Phishing scams,
Deepak Kinger, Vice President, Banking and Financial Services, VirtusaPolaris, a
financial technology firm serving leading software vendors in banking & financial
services, said, "Phishing involves installing 'malware' or 'spyware' that reads
sensitive client information including client details, passwords and PINs at the
point of contact on channel. This channel could be an ATM, internet banking
site, mobile banking app or the payment interface on an ecommerce site."

Money mule / Additional income email scam: Money Mules are unaware victims,
invariably job-seekers and those seeking to make easy-money online. They are
lured by fraudsters posing as coming from companies with websites and offering
them high commission to get a small job done or huge salary for a part time
work from home job.

Such fraudsters will either ask you for an upfront payment as an investment,
that will get you stupendous returns or offer you a commission to make
transactions using your account. He will ask for your bank account details and
deposit money in it and then further direct you to transfer it to accounts of
other money mules on commission basis. This transferring of funds could lead
you into criminal misdemeanours.

Speaking about the risks involved in using smart phones, Kinger said, "In today's
context, the threat of fraud happening on the mobile channel is a lot higher than
the other channels. Many users install apps on their phones that grant
unconditional access to their data and other apps installed on the phone. These
'malware' apps can then monitor your inputs on a mobile banking app for
example and retrieve sensitive data to be passed on to the app owner."
5.2 Here are 8 tips to use internet banking safely:

1. Always use genuine anti-virus software

To protect your computer from phishing, malware, and other security threats
always use genuine anti-virus software. Anti-virus helps in detecting and
removing spyware that can steal your sensitive information.

2. Avoid Using Public Wi-Fi or Use VPN software

The biggest threat of an open Wi-Fi network is that the hacker can sit in
between the end user and the hotspot and can trace all the data without any
difficulty. Hackers see unsecured connection as an opportunity to introduce
malware into your device. So, usage of public Wi-Fi hotspots for internet or
mobile banking and making payments on ecommerce sites should be avoided.
However if you are a regular public Wi-Fi user, consider setting up a VPN
software on your computer. It creates a secure tunnel between the computer
and the internet and prevents hackers from intercepting the traffic.

3. Check for latest updates of your Smartphone's operating

system
Smartphone users should make sure their operating system is updated with the
latest security patches and updates. They should also not remove the security
controls from the phone often called 'jail breaking' or 'rooting'. They should
always look to restrict access that apps ask for when being installed to only what
the app really needs.

4. Change your password regularly and ensure it's a strong one

This might sound clichéd but, it is important to keep your account safe and helps
you maintain confidentiality. And needless to say, don't share your details with
anyone. Your bank will never ask for your confidential information via phone or
email. If you have written your banking passwords in a notepad or a dairy, make
sure it remains confidential.
Further, be sure to choose strong and long passwords. For additional security to
financial transactions through Internet Banking, create and maintain different
passwords for log-in and for transactions.

5. Subscribe for mobile notifications

If you haven't done it already, do it now. These notifications will alert you
quickly of any suspicious transaction. Whether the transaction exceeds the
specified limit or is within it, you'll get an alert which will tell you the remaining
account balance. Not just the transactions, the bank will alert you of the
unsuccessful login attempts to your net-banking account.

6. Avoid signing-in to your net-banking account via mailers

It is always safer to type the bank URL yourself than getting redirected to it via a
promotional mail or any other third party website. As mentioned earlier a bank
will never ask you to for the login credentials to your account. So if there's a
fraudulent email which offers to redirect you to your bank's website and you
enter your personal details on landing page after clicking it, there's a huge risk
of your login credentials being stolen. Hence, if you receive an email from a
bank asking for login details, treat it with suspicion.

7. Do not use public computers to login to net banking

If you are using a public computer, the risk of compromising your login
credentials is higher. However if you have to login from such places, make sure
you clear the cache and browsing history, and delete all the temporary files
from the computer. Also, never allow the browser to remember your ID and
password. Or just go incognito.

8. Check your account regularly

Most banks have a 'last logged in' or 'login history' tab on their web sites. So, if
you notice irregularities change your password and get in touch with your bank
immediately.
5.3 Points to note while using mobile banking and ATM cards

1. "For mobile banking, consumers should only use the official app provided by
the bank and downloaded only from official app stores of Apple, Google and
Windows. They should specially be careful of 'aggregator' apps that claim to
provide a consolidate account views across banks - they may contain some virus
/ malware," advises Kinger.

2. Explaining the ways to avoid card skimming, Kinger said, "In the case of card
skimming, fraudsters install a device on the top of the card reader in ATM
machines that blends in with the ATM equipment and stores the credit / debit
card details. This information is then retrieved by the fraudster by copying it
onto another blank card's magnetic stripe and used to make purchases or
withdraw cash in the name of the actual account holder.

So, while using cards at ATMs and merchant outlets, users should always look
for suspicious looking equipment that overlays the card reader to prevent card
skimming."
 CONCLUSION

The research report is based on primary data.

According to the study, the researcher concludes that the most of
the bank customers are aware about all the Online Banking
services. The banks further have to take necessary steps to
educate the customers regarding the new technology and other
services offered by the banks. Banks may extend customer
meeting time with bank officials and also friendly approach is
necessary. Definitely it will help to retain the existing customers
and to attract new customers. It will automatically improve the
banking service and development of banks in India and also in
abroad. The research report is useful to know the consumer
awareness of Online Banking system and what types of risk
involved in Online Banking system.
 Biblography

The Online Banking Services are increasing day by day in

the banking sector in India. This project aims at the study
of Online Banking Services provided by Commercial banks
in India. In this study the collected data is from primary
and secondary sources which are collected from Bank
Managers, Website and other sources. The Online Banking
Services are ATM-Automated Teller Machine, Personal
Computer Banking, Phone Banking and Mobile Banking,
Email Banking. The researcher concludes information
about commercial banks, its service, effective regulation,
creating awareness of the Banking Customers and Pros
and Cons of Online Banking.