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SN PARTICULARS PAGE NUMBER
1 INTRODUCTION 3-4
2 HISTORY 5
3 REVIEW OF LITRATURE 6-7
4 OBJECTIVES 8
5 RATIONALE OF STUDY 9
6 RESEARCH METHODOLOGY 10
7 BIBLIOGRAPHY 11
INTRODUCTION
Electronic banking is an umbrella for the process by which a customer may perform banking
transactions electronically without visiting a brick -and- mortar institution. The following terms
are referred as the form of electronic banking; personal computer {pc}banking and phone
banking. PC banking and internet or online banking is the most frequently used designations. It
should be noted however, that the terms used to describe the various types of electronic banking
are often used interchangeably.
Electronic banking is an activity that is not new to banks or their customers. Banks been
providing their services to customers electronically for years through software programs. These
software program allowed the users personal computer to dial up the bank directly. In the past
however, banks have been very reluctant to provide their customers with banking via the internet
due to security concerns.
Today, banks seem to be jumping on the bandwagon of internet banking. Why is there a sudden
increase of bank interest in the internet? The first major reason is because of the improved
security and encryption methods developed on the internet. The second reason is that banks did
not want to lose a potential market share to banks that were quick to offer their services on the
internet.
Many of the banks like HDFC, SBI, ICICI were offering E-banking services. The analyst
comments that INDIA has a high growth potential for e-banking the players focused on
increasing and improving their e-banking services. As a part of this, the banks began to
collaborate with functions online.
E- banking is 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 business
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.
It is simply the use of electronic and telecommunication network for delivering various
banking products and services. Through e banking a customer can access his account and
conduct many transactions using his computer or mobile phone.
E-banking essentially refers to when a customer makes banking transaction via internet 24/7
making electronic banking payments. Paying bill and transferring money via mobile using
internet gives is what e-banking essentially is.
It makes the life of customers easier as the transaction can easily be done on a move. E- banking
services and the types of services including banking via internet, telephone and ATM’Ss makes
it possible to reduce the prices of services of customers.
HISTORY
The precursor for the modern online banking services were the distance banking services over
electronic media from the early 80’s. the term online became popular in the late 80’s and refers
to the use a terminal keyboard and tv to access the banking system using a phone line. ‘home
banking’ can also refers to the use of a numeric keyboard to send tones down a phone line with
instructions to the bank. Online services started in New York in 1981 when four of the city banks
offered home banking services.
Using the videotex system. Because of the commercial failure of videotex these banking
services never became popular except in France where the use of videotex was subsidized by the
telecom provider and the UK, where the Prestel system was used.
The UK first home banking services were set up by the Nottingham building society in 1983.
The system used was based on the UK’s prestal system and used a computer, such as the BBC
micro, or keyboard connected to the telephone system and television set. The system allowed on
line viewing of statements, bank transfers and bill payments. In order to make bank transfers and
bill payment, a written instruction giving details of the intended recipient had to be sent to the
NSB who set the details up on the home-link system. Typical recipients were gas, electricity and
telephone companies and accounts with other banks. Details of payment to be made were input
into the BS system by the account holder via Prestel. A cheque was then sent by NBS to the
payee and an advice-giving details of the payment was sent to the account holder. BACS was
later used to transfer the payment directly. Stanford federal credit union was the first financial
institution to offer online internet banking services to all of its members October,1994.
LITRATURE REVIEW
E banking is an innovation when new technologies merge into traditional banking services.
Operating cost minimization and revenue maximization are the major drives that boost e banking
services (2001).
E banking service is basically a self-service by customer, so for banks it requires less
resources and lower transaction and production cost (2008).
The retention and expansion of relationship with relative older and lower IT awareness
customers 2006.
The rapid expansion of internet banking is most noticeable in the developed countries such as the
USA where the availability of computers and easy access to the internet has made it easier for
the banks to adopt internet banking. Adoption of internet banking services in developing
countries appears to be taking place at a slower pace. In recent years however banks in
developing countries are increasing offering internet banking services. Despite the limitations
they face. 2001.
KATHI- according to the research technology has indulged its hands in banking. Internet
banking has introduced new products which offer greater efficiency in working and productivity
both national and globally. The researcher has emphasized that the banks need to deliver few
banking services as internet banking services, bank need to redefine business relationship and
the strongest banks will be those which will offer better facilities to its customers. The researcher
brings about the benefit of cost effectiveness of a e-banking where its drawbacks like cross
border risk, the researcher mention that internet banking in INDIA is satisfactory.
AMUTHA D- according to the researcher banks customers are aware about all the facilities
provided by the banks to its customers. Still banks need to take step to educate their customers
regarding newly developed technologies and other banking services. Steps taken by banks for
increasing awareness will also help in retaining the existing customers and attracting new
customers.
ASHIMA TANDON MANISHA GOEL AND SUNITA BISHNOI
Mentioned in their research that the level of customer awareness is greater in private and foreign
sector banks when compared to public sector banks. The services like ‘ask for cheque book’
transfer fund to third party, pay credit card dues, is used by customers of private, foreign banks
rather than public sector banks. Therefore, public sector banks need to take care their customers
have awareness regarding e-banking services.
RATIONALE OF STUDY
The primary objective of the study is to identify the factors that affect the customers behavior
towards E-banking so that is could help the industry to maintain the liquidity.
To meet the required demand of the customers regarding a particular service, in this way, they
could retain their existing customers and can even increase the use of electronic banking.
The research contains the awareness and security of using electronic banking regarding in sense
of private and public sector banks.
The main purpose of this report is to study about the E-banking structure, impact on banks and
customers, awareness, among people regarding e-banking. The limitations people have in their
mind which prohibits them to use e- banking and how to overcome those barriers and include
among people the benefit of this newly developed banking method which is to bring about a
drastic change in the working of banks if implemented properly and used effectively by people.
RESEARCH METHODOLOGY
The research methodology adopted in the report is based on secondary data. The information
gathered is based on the data from various journals and research papers.
The nature of the report is descriptive. As the research is focused on bringing together the role,
impact, challenges, limitations, awareness and ways to increase awareness about electronic
banking among the Indian customers and making people about its different services and benefits.
OBJECTIVES
To attract customers
To provide liquidity
To boost economy
To provide 24/7 service
To study about the role, need, type, fraud, impact of electronic banking on banks.
Customers and society. Various frauds and ways to overcome them in electronic
banking.
To study about the future perspective and awareness of electronic banking among Indian
customers and ways to increase awareness among the customers.
BIBLIOGRAPHY
1) WWW.GOOGLE.COM
2) GOOGLE SCHOLOR
3) WIKIPEDIA
