A Minor Project Report

“A STUDY ON INTERNET BANKING

WITH
STATE BANK OF INDIA”

Supervised By Submitted By
DR. RAVI AGRAWAL ALOK KUMAR
(Head Of Deprtment) Semester – 6th
Roll No:2220032010014

Hardoi

Department of Commerce
Maharana Pratap Government PG College
Hardoi
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 ACKNOWLEDGEMENT

I wish to express my sincere gratitude to Mr. Dr. Ravi Agrawal HOD of

commarce department of Maharana Partap government Dgree College for
providing me an opportunity to do my project work on “INTERNET
BANKING OF STATE BANK OF INDIA”. This project
bears on imprint of many peoples. I sincerely thank to my project guide Mr.
DR. RAVI AGRWAL sir, for guidance and encouragement in carrying out this
project work.

Last but not least I wish to avail myself of this opportunity, express a sense
of gratitude and love to my friends and my beloved parents for their manual
support, strength, help and for everything.

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 EXECUTIVE SUMMARY:

Internet banking has evolved over the last decade from product brochure
ware, to a complete financial marketplace for its online customers. Banks
see Internet banking as the key channel for growth and customer retention.
As such, the online banking model has moved from tactical and lower cost
customer service, to a more strategic form of customer engagement.
Many banks have adopted the latest technologies and added new Internet
banking functionalities and features to stay ahead of the competition.
However, when measured by key performance indicators such as customer
growth, revenue growth, etc., the value delivered varies from bank to bank.
While some banks achieve better customer response and retention from
adding new technology/feature bells and whistles, others have received
moderate to poor acceptance, which has undermined their return on
investment. The challenge is to find the right approach and leverage the right
mix of technology and features that keep customers happy and transacting
over an extended period of time.

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 INDEX

Sr. no Topic Pg. no.

Chapter 1 Internet banking 7

1.1 Introduction to Internet banking 8

1.2 History of Internet banking 8

1.3 Development of Internet banking in India 9

1.4 Various forms of E-banking 11

1.5 Advantages & Disadvantages of Internet 12

banking

Chapter 2 State bank of India 15

2.1 History of State Bank of India 16

2.2 Internet banking at State bank of India 17

2.3 Changes brought in information 18

technology by SBI
2.4 Internet banking facility through state 19

bank of India
2.5 Services provided by SBI Internet banking 20

2.6 Products & services 22

Chapter 3 Terms of service of online banking 32

4
3.1 General information 34

5
3.2 Security 35

3.3 Bank’s terms 36

3.4 Customer’s obligation 37

3.5 Do’s & Don’ts 37

3.6 Internet banking risks 36

3.7 Types of security threats in online banking 42

Chapter 4 Review of literature

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 RESEARCH METHODOLOGY

OBJECTIVES
The main objectives of the study are:
• To understand the concept of Internet banking and importance, to bank
as well as customers.
• To get aware of various aspects of net banking

• To build up various solutions for drawbacks in net banking

SCOPE OF STUDY
The study is made taking consideration of whole State Bank of India. With
reference to experience availed at Amravati camp branch.

NEED OF THE STUDY

This study is needed to find out the working of Internet Banking of SBI and
its importance to customer as well as to bank.

RESEARCH DESIGN:
particulars Data
Number of sample 30
Name of sampling Random/ probability

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DATA COLLECTION
Primary Data:

 The data is to be collected from staff members at SBI bank.

 E-circulars of SBI

Secondary Data:

 Books and magazines

 Database at SBI
 Internal reports of the banks
 Library research
 Websites

FUTURE SCOPE

The study of this topic will help to get the knowledge about process of
internet banking and usefulness to banking industry. As the study contains
the 360 degree information regarding SBI and its internet banking, Hence
the study will lead to new ways to tackle the problems and the SWOC of
SBI in respect of internet banking.

This was all about how the project will go ahead and the findings from it.

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 CHAPTER 1
INTRODUCTION TO
INTERNET BANKING

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1.1 INTERNET BANKING (E-BANKING): INTRODUCTION
Internet banking (or E-banking) means any user with a personal computer
and a browser can get connected to his banks website to perform any of the
virtual banking functions. In internet banking system the bank has a
centralized database that is web-enabled. All the services that the bank has
permitted on the internet are displayed in menu. Any service can be selected
and further interaction is dictated by the nature of service. Once the branch
offices of bank are interconnected through terrestrial or satellite links, there
would be no physical identity for any branch. It would a borderless entity
permitting anytime, anywhere and anyhow banking.
The delivery channels include direct dialup connections, private networks,
public networks, etc. with the popularity of computers, easy access to
Internet and World Wide Web (WWW), Internet is increasingly used by
banks as a channel for receiving instructions and delivering their products
and services to their customers. This form of banking is generally referred to
as Internet Banking.

1.2 HISTORY
The concept of Internet banking has been simultaneously evolving with the
development of the World Wide Web. Programmers working on banking
data bases came up with ideas for online banking transactions, sometime
during the 1980's. The creative processes of development of these services
were probably sparked off after many companies started the concept of
online shopping. The online shopping promoted the use of credit cards
through Internet. Many banking organizations had already started creating
data ware housing facilities to ease their working staffs. The development of

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 these data bases were widely used during the development of ATM's.
The first online banking service in United States was introduced, in October
1994. The service was developed by Stanford Federal Credit Union, which is
a financial institution. The online banking services are becoming more and
more prevalent due to the well developed systems. Though there are pros
and cons of electronic cash technology, it has become a revolution that is
enhancing the banking sector.

1.3 DEVELOPMENT OF INTERNET BANKING IN INDIA

 The concept of Internet banking has been simultaneously evolving with

the development of the World Wide Web.
 grammers working on banking data bases came up with ideas for
online banking transactions, sometime during the 1980's.
 The online shopping promoted the use of credit cards through Internet.
 The first online banking service in United States was introduced, in
October 1994.
 The online banking services are becoming more and more prevalent due
to the well developed systems
 ICICI was the first bank to initiate the Internet banking revolution in
India as early as 1997 under the brand name
 ICICI Bank kicked off online banking way back in 1996. But even for
the Internet as a whole, 1996 to 1998 marked the adoption phase, while
usage increased only in 1999- due to lower ISP online charges,
increased PC penetration and a tech-friendly atmosphere

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 1.4VARIOUS FORMS OF E-BANKING:
a. INTERNET BANKING:
Internet banking can
be used from the home or the office, as well as an
internet café, although the latter is not recommended for security reasons. In
order to handle his account a user just needs an internet browser.

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b. CREDIT CARDS: -
The credit card enables the cardholders to: Purchase any item like clothes,
jewellery, railway/air tickets, etc. Pay bills for dining in a restaurant or
boarding and lodging in hotel. Avail of any service like car rental, etc.

c. DEBIT CARDS: -
A debit card is issued on payment of a specified amount by the issuing
company like a telephone company to a customer on cash payment or on
debiting his account by a bank. Thus it is like an electronic purse, which can
be read and debited by the required amount. It may be noted that while
through a credit card, the customer first makes a purchase or avails service
and pays later on, but for getting the debit card, a customer has to first pay
the due amount and then make a purchase or avail the service. For this
reason, debit card are not as popular as credit cards.

d. SMART CARDS: -
Smart Cards have a built-in microcomputer chip, which can be used for
storing and processing information. For example, a person can have a smart
card from a bank with the specified amount stored electronically on it. As he
goes on making transactions with the help of the card, the balance keeps on
reducing electronically. When the specified amount is utilized by the
customer, he can approach the bank to get his card validated for a further
specified amount. Such cards are used for paying small amounts like
telephone calls, petrol bills, etc.

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 e. ATM CARDS: -
The card contains a PIN (Personal Identification Number) which is selected
by the customer or conveyed to the customer and enables him to withdraw
cash up to the transaction limit for the day. He can also deposit cash or
cheque.

1.5 ADVANTAGES & DISADVANTAGES OF INTERNET

BANKING:

Advantages of Internet Banking

Internet Banking has several advantages over traditional banking which

makes operating a bank account simple and convenient. Internet banking
allows you to conduct various transactions using the bank's website and
offers several advantages. Some of the advantages of internet banking are:

 Internet banking account is simple to open and easy to operate.

 Internet banking is quite convenient as you can easily pay your bills, can
transfer funds between accounts, etc. Now you do not have to stand in a
queue to pay off your bills; also you do not have to keep receipts of all the
bills as you can now easily view your transactions.

 Internet banking is available all the time, i.e. 24x7. You can perform your
tasks from anywhere and at any time; even in night when the bank is closed
or on holidays. The only thing you need to have is an internet connection.

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 Internet banking is fast and efficient. Funds get transferred from one account
to the other very fast. You can also manage several accounts easily through
internet banking.

 Through Internet banking, you can keep an eye on your transactions and
account balance all the time. This facility also keeps your account safe. This
means that by the ease of monitoring your account at anytime, you can get to
know about any fraudulent activity or threat to your account before it can
pose your account to severe damage.

 Internet banking is also a great medium for the banks to endorse their
products and services. The services include loans, investment options, and
many others.

Disadvantages of internet banking

 Understanding the usage of internet banking might be difficult for a beginner

at the first go. Though there are some sites which offer a demo on how to
use internet banking, but all does not offer this facility. So, a person who is
new to internet baking might face some difficulty.

 You cannot have access to internet banking if you don’t have an internet
connection; thus without the availability of internet access, internet banking
may not be useful.

 Security of transactions is a big issue. Your account information might get

hacked by unauthorized people over the internet.

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 Password security is a must. After getting your net banking password, do
change it and memorize it otherwise your account may be misused by
someone who gets to know your password inadvertently.

 You cannot use internet banking, in case; the bank’s server is down.

 Another issue is that sometimes it becomes difficult to note whether your

transaction was successful or not. It may be due to the loss of internet
connectivity in between, or due to a slow connection, or the bank’s server is
down.

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 CHAPTER 2
STATE BANK OF INDIA

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STATE BANK OF INDIA

State bank of India is the nation’s largest

and oldest bank. Tracing its roots back
some 200 years to the British East India
Company (and initially established as the
Bank of Calcutta in 1806), the bank operates more than 15,000 branches
within India, where it also owns majority stakes in six associate banks. State
Bank of India (SBI) has more than 80 offices in nearly 35 other countries,
including multiple locations in the US, Canada, and Nigeria. The bank has
other units devoted to capital markets, fund management, factoring and
commercial services, credit cards, and brokerage services. The Reserve
Bank of India owns about 60% of State bank of India.

2.1 HISTORY OF STATE BANK OF INDIA:-

The History of State Bank Of India dates back to the first decade of the
nineteenth century with the setting up of Bank of Calcutta in Calcutta on 2
June 1806.After three years it was renamed as Bank Of Bengal (2 January
1809).On 15th April 1840, the Bank of Bombay was initiated and on 1st
July 1843, the Bank of Madras was established. The integration of the three
banks resulted in the creation of Imperial Bank of India on 27th
January1921.
Structure and Organization
The Banks Corporate Office is located at Mumbai. Its domestic operational
area is divided into 14 Circles, each with one Local Head Office and a few
Zonal and Regional Offices. The Bank is present not just in the major
metropolises of India but has wide reach in the villages of India. The Bank's
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top management consists of the Chairman, group executives for National
Banking Group, Corporate Banking Group, International Banking Group
and Associates & Subsidiaries, and four staff functionaries in charge of
finance, credit, human resources & technology management and inspection
& audit.
Transformation in SBI
The SBI has undergone major transformation in the recent years. The bank
has ventured into new areas of business like Pension Funds, General
Insurance, Custodial Services, Private Equity, Mobile Banking, Point Of
Sale, Merchant Acquisition, Advisory Services, and Structured Products etc.
The bank foresees tremendous growth potential in all these areas.

2.2 INTERNET BANKING AT STATE BANK OF

INDIA

The Internet Banking service provided by State Bank of India is referred to

as OnlineSBI by the bank.

OnlineSBI is regarded as the Internet banking portal for SBI. The portal
offers anywhere, anytime, online access to banking services for SBI’s retail
and corporate customers. OnlineSBI is developed by using advanced
technology and tools. The infrastructure is robust and supports secure access
to banking services for more than 13,000 branches across India.

OnlineSBI is made for all the customers who have an account at an internet
enabled branch of SBI. Customers with account with internet enabled branch
require to get registered for the Internet banking service with the branch. In

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case the customer’s branch is not internet enabled, he can transfer his
existing account from his branch to an OnlineSBI branch.

Apply for OnlineSBI (Internet Banking)

In order to apply for OnlineSBI Online Banking, customers can visit the site
at “http://www.onlinesbi.com” and download the application form for
Online Banking. The form can also be obtained from the branch.

After completing the application form, it can be submitted to any nearest

branch of the bank. On successful processing of the application, customer
will receive User Id, Login Password and Transaction password. Customer
can login to net banking site of OnlineSBI using the UserID and login
password. Once logged in customer can avail many online banking services
offered by Bank and perform various financial transactions.

The User Id & Passwords for login to the OnlineSBI will be sent to the
registered address of customer with the Bank. Customer should ensure that
his current address is updated in the Bank’s record. It is suggested that new
customers should completely read the general information page so that they
will get the idea of using the various banking services online. It is very easy
to conduct all the banking transactions online. It is useful for those who are
unfamiliar with online banking service.

2.3 CHANGES BROUGHT IN INFORMATION

TECHNOLOGY BY SBI:-
• In the next decade internet facility was provided for individuals
• All SBI branches were connected and ATM’S were launch
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 • 2001 - KMPG appointed consultant for preparing IT Plan for the Bank.
• Later on Core banking proposed by the IT consultancy company.
• 2002 – All branches computerized but on decentralized systems, there
the initiative of core banking took place
• 2008- more than 6500 branches (95% of business) on Core
Banking Solution (CBS) Internet Banking facility for corporate customers were
also launched in early 2008
• More Interfaces developed with e-Commerce & other sites through
alternate channels like ATM & Online Banking
• All Foreign Offices were brought on Centralized Solution
• Large network is playing the role of backbone for connectivity across the
country.
• Multiple Service Providers are providing the links – BSNL, MTNL,
Reliance, Tata & reliance which are making the system errorless and provide
high speed.
• Multiple Technologies to support the networking infrastructure – Leased
lines, Dial-up, CDMA & VSAT

2.4 INTERNET BANKING FACILITY THROUGH STATE

BANK OF INDIA:

1. 24x7 facilities for tax payment through SBI e-Tax.

2. Fund transfer between his own accounts.
3. Access of accounts on real time 24x7x365 basis and downloading of
account statements.
4. Transfer of fund to other accounts through third party transfer mode.
5. Transfer of funds to PPF and loan accounts

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 6 Payment of all kind of utility bills like Telephone bill payment. Credit
card payment LIC premium payment, Mutual f\Fund Payment, Electricity
bill payment Mobile bill payments etc listed on the site.
7 Booking of Railway and Air tickets online
8. Payments of Taxes viz Direct and indirect tax.
9. Transfer of money to any VISA Debit or Credit Card.
10 Online trading of shares by using 3 in 1 accounts.

2.5 SERVICES PROVIDED BY SBI INTERNET BANKING

1. RETAIL BANKING:-
The Retail banking application is an integration of several functional areas, and
enables customers to:
 Issue Demand Drafts online
 Transfer funds to own and third party accounts
 Credit beneficiary accounts using the VISA Money Transfer, RTGS/NEFT
feature
 Generate account statements
 Setup Standing Instructions
 Configure profile settings
 Use eTax for online tax payment
 Use ePay for automatic bill payments
 Interface with merchants for railway and airline reservations
 Avail DEMAT and IPO services

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 2. CORPORATE BANKING:-
The OnlineSBI corporate banking application provides features to administer
and manage corporate accounts online. The corporate module provides roles
such as Regulator, Admin, Uploader, Transaction Maker, Authorizer, and
Auditor. These roles have access to the following functions:
 Manage users, define rights and transaction rules on corporate accounts.
Access accounts in several branches with a single sign-on mechanism
 Upload files to make bulk transactions to third parties, supplier, vendor and
tax collection authorities.
 Use online transactional features such as fund transfer to own accounts, third
party payments, and draft issues
 Make bill payments over the Internet.
 Authorize, modify, reschedule and cancel transactions, based on rights
assigned to the user
 Generate account statement
 Enquire on transaction details or current balance

3. VALUE ADDED SERVICES:

▪ Tax payments to central and state governments through site to site

integration.
▪ Supply Chain Finance( e-VFS- Electronic Vendor Finance Scheme)
▪ Direct Debit Facility
▪ E Collection Facilities for:
▪ Core Banking Transactions
▪ Internet Bank transactions for incoming RTGS/NEFT Transactions
▪ Internet banking transactions for SBI and associate banks

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▪ Debit facility where suppliers can directly debit their customer’s account
through internet banking

2.6 PRODUCTS AND SERVICES:-

1) E-ticketing:
You can book your railway, air and bus tickets online through online SBI.
 To book your train ticket, just log on to irctc.co.in and create an ID there at
if you do not have one. Submit your travel plan and book the ticket(s)-either
 i-ticket or
 E-tickets (wherein after successful payment transactions, an e-ticket is
generated which can be printed any time. For an e-ticket, the details of photo
identity card will required to be filled in)
And select State Bank of India in the payment options. You will be redirected to
Internet Banking site of SBI (www.onlinesbi.com). After submitting the
respective ID and password, you can select your account. After a successful
debit, Railways will generate the ticket. E-ticket can be printed by you
whereas the i-ticket will be dispatched by IRCTC at the given address.
Service charges @ Rs.10/- per transaction shall be levied in addition to the
cost of the ticket. Cancellation of E-ticket can be done by logging on to
IRCTC's site; refund amount will be credited to your account directly within
2-3 days. For cancellation of i- ticket, you shall be required to submit your
ticket at a computerized counter of Railways and on cancellation; the
amount shall be credited back to your account.
You can also book your Air ticket through the e-ticketing feature. Logon to
Indian Airlines website to make a payment for an e- ticket through State
Bank of India, you need to select SBI as the payment option. The payment

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request

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 will be redirected to Internet Banking site. The request may be processed
based on values sent from the airlines website. Once a transaction is
processed, an appropriate response will be sent to airlines site to update the
status of the transaction. You can print the E-ticket immediately.
To book bus tickets to destinations in Karnataka, log on to the KSRTC
website. Provide details about the start and end points of your journey, date
of journey and number of tickets. Verify availability of seats on the selected
date and confirm the transaction. Select OnlineSBI to make the payment.
Provide your credentials and select the SBI account that will be debited for
the payment. You are provided a KSRTC reference number for your e-
Ticket.

2) SBI e-tax:-
You can pay your taxes online through SBI E-Tax. This facility enables you
to pay TDS, Income tax, Indirect tax, Corporation tax, Wealth tax, Estate
Duty and Fringe Benefits tax. Click the e-Tax link in the home page. You
are displayed a page with two links Direct Tax and Indirect Tax.
Click the Direct Tax link. You will be redirected to the NSDL site where
you can select an online challan based on the tax you wish to pay. Provide
the PAN, name and address, assessment year, nature of payment and bank
name. On selecting the bank name as SBI and submitting the form, you will
be redirected to the Internet Banking site. After submitting the respective ID
and password, you can select your account for making payment of taxes.
After payment is successful you can print the E-Receipt for the payment.
The E-receipt can be printed at a later date also and the same can be
retrieved from: Enquiries > Find Transactions > Status Enquiries > Click on
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 the respective transaction to print the tax receipt.
The Indirect Tax link is used to make Central Excise and Service Tax
payments to Central Board of Excise and Customs. The online payment
feature facilitates anytime, anywhere payment and an instant E-Receipt is
generated once the transaction is complete. The Indirect Tax payment
facility is available to Registered Central Excise/Service Tax Assessee who
possesses the 15 digit PAN based Assessee Code. You can make CBEC
payments using the Indirect Taxes link available in the Payments/Transfers
tab. You need to provide your Assessee code as registered with CBEC and
select the minor heads towards which you intend to pay tax. Select the
appropriate tax type and enter the tax amount. Select an account for debiting
the total tax amount. You can use any of your transaction accounts to make
the payment. If a payment is successful, CBEC provides a link to generate
an E-Receipt for the payment.

3) Bill payment:
A simple and convenient service for viewing and paying your bills online.
Using the bill payment you can view and Pay various bills online, directly
from your SBI account. You can pay telephone, electricity, insurance, credit
cards and other bills from the comfort of your house or office, 24 hours a
day, 365 days a year. Simply logon to https://www.onlinesbi.com/ with your
credentials and register the biller to which you want to pay, with all the bill
details. Once the bill is uploaded by the biller, you can make payment
online. You can see 'how do i' to learn the steps for using the facility.

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 4) RTGS/NEFT:-
You can transfer money from your State Bank account to accounts in
other banks using the RTGS/NEFT service. The RTGS system facilitates
transfer of funds from accounts in one bank to another on a "real time" and
on "gross settlement" basis. This system is the fastest possible interbank
money transfer facility available through secure banking channels in India.
RTGS transaction requests will be sent to RBI immediately during working
hours post working hours requests are registered and sent to RBI on next
working day. You can also schedule a transaction for a future date. You can
transfer an amount of Rs.1 lac and above using RTGS system.
National Electronic Funds Transfer (NEFT) facilitates transfer of funds to
the credit account with the other participating bank. RBI acts as the service
provider and transfers the credit to the other bank's account.

5) eZtrade@sbi
State Bank of India (SBI) in alliance with Motilal Oswal Securities Limited
and SBI Caps Securities Limited (SSL) now introduces you to
'eZtrade@sbi', a State-of-the-Art online trading platform predominantly to
cater to every trading need (presently available to Indian Residents Only)
and offers a truly world class experience of online investing - anyplace,
anytime. This service provides you with a 3-in-1 account which is an
integrated platform of Bank Account, Demat Account and an Online Trading
Account to give you a convenient and paper free trading experience under
one roof. We provide online trading of shares of Companies listed on BSE
and NSE. eZtrade@sbi will let you trade from the comfort of your home or
office through the Internet. Buying and selling of shares is now just a click

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away. So go ahead and enjoy your fast, easy and hassle-free online
shares/securities trading experience with India's Largest Bank.

6) E-payment:-
You can pay your insurance premium, mobile phone bills and also you can
purchase mutual fund units by coming from the biller’s website and
selecting state bank of India in the payment option.
LIC PREMIUM: For paying premium of LIC policy logon to premium is
due select State Bank of India in the make payment option.
SBI Mutual FUND: You can invest in the SBI Mutual Fund schemes
online. Logon towww.sbi mf.com and select the scheme in which you want
to make investment in the payment option select State Bank of India.
CCAVENUES: Enjoy shopping at the CCAvenue Shopping Mall and
purchase from a wide variety of products and services through CCAvenue
Certified Vendors. Make payments for your purchases using your Internet
enabled SBI accounts.

7) Fund transfer:-
The Funds Transfer facility enables you to transfer funds within your
accounts in the same branch or other branches. You can transfer aggregating
Rs.1 lac per day to own accounts in the same branch and other branches. To
make a funds transfer, you should be an active Internet Banking user with
transaction rights. Funds transfer to PPF account is restricted to the same
branch.

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Just log on to retail section of the Internet Banking site with your credentials
and select the Funds Transfer link under Payments/Transfers tab. You can
see all your online debit and credit accounts. Select the debit account from
which you wish to transfer funds and the credit account into which the
amount is to be credited. Enter the amount and remarks. The remarks will be
displayed in your accounts statement for this transaction. You will be
displayed the last five funds transfer operations on your accounts. On
confirming the transaction, you will be displayed a confirmation page with
the details of the transaction and the option to submit or cancel the funds
transfer request. A reference number will be generated for your record.

8) Third party transfer :-

You can transfer funds to your trusted third parties by adding them as third
party accounts. The beneficiary account should be any branch SBI. Transfer
is instant. You can do any number of Transactions in a day for amount
aggregating Rs.1lakh.
To transfer funds to third party having account in SBI, you need to add and
approve a third party, you need to register your mobile number in personal
details link under profile section. You will receive a One Time SMS
password on your mobile phone to approve a third party. If you do not have
a mobile number, third party approval will be handled by your branch. Only
after approval of third party, you will be able to transfer funds to the third
party. You can set limits for third party transactions made from your
accounts or even set limits for individual third parties.

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9) Demand Draft :-
The Internet Banking application enables you to register demand drafts
requests online. You can get a demand draft from any of your Accounts
(Savings Bank, Current Account, Cash Credit or Overdraft). You can set
limits for demand drafts issued from your accounts or use the bank specified
limit for demand drafts.
You can opt to collect the draft in person at your branch, quoting a
reference to the transaction. A printed advice can also be obtained from the
site for your record.

Alternatively, you may request the branch to courier it to your registered

address, and the courier charges will be recovered from you. If you have any
queries, kindly approach your branch, quoting the reference number
generated for the request.

10) Cheque Book Request :-

You can request for a cheque book online. Cheque book can be requested for
any of your Savings, Current, Cash Credit, and Over Draft accounts. You
can opt for cheque books with 25, 50 or 100 cheque leaves. You can either
collect it from branch or request your branch to send it by post or courier.
You can opt to get the cheque book delivered at your registered address or
you can provide an alternate address. Cheque books will be dispatched
within 3 working days from the date of request.
Just log on to retail section of the Internet Banking site with your credentials
and select the Cheque Book link under Requests tab. You can view all your
transaction accounts. Select the account for which you require a cheque

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 book; enter the number of cheque leaves required and the mode of delivery.
Then, submit the same.

11) Account Opening Request:-

OnlineSBI enables you to open a new account online. You can apply for a
new account only in branches where you already have accounts. You should
have an INB-enabled account with transaction right in the branch. Funds in
an existing account are used to open the new account. You can open
Savings, Current, Term Deposit and Recurring

Deposit accounts of Residents, NRO and NRE types. Just log on to retail
section of the Internet Banking site with your credentials and select the New
Account link under Requests tab. You can see all types of accounts. Select
the account and account type you wish to open and submit the same. Then,
you need to select the branch and enter the initial amount to open the
account. You can select any of your accounts for debiting the initial amount.
Then, submit the transaction. Your new account opening request will be
processed by the branch.

12) Account Statement :-

The Internet Banking application can generate an online, downloadable
account statement for any of your accounts for any date range and for any
account mapped to your username. The statement includes the transaction
details, opening, closing and accumulated balance in the account. You can
generate the online account statement for any date range or for any month
and year. The account statement can be viewed online, printed or
downloaded as an Excel or PDF file. You also have the option to select the

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 number of records displayed in each page of the statement. The options are
25, 50, 75, 100 and ALL.

13) Transaction Enquiry :-

OnlineSBI provides features to enquire status of online transactions. You
can view and verify transaction details and the current status of transactions.
Your VISA transactions can also be viewed separately. Just log on to retail
section of the Internet Banking site with your credentials and select the
Status Enquiry link under the Enquiries tab. You will be displayed all online
transactions you have performed. To view details of individual transactions,
you need to click the Transaction Reference number link. You are displayed
the debit and credit account details, transaction amount, narration and
transaction status

14) Demat Account Statement:-

OnlineSBI enables you to view Demat account statement and maintain such
accounts. The bank acts as your depository participant. In the third party site,
you can mark a lien on your Demat accounts and use the funds to trade on
stock using funds in your SBI savings account. You can view Demat account
details, and generate the following statements: statement of holding,
statement of transactions, statement of billing.

15) Donation:-
You can make donation to religious and charitable institution by using
Internet Banking of SBI. Simply log on to http://www.onlinesbi.com/ with
your credentials and go to Payment and transfer and click on make donation

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link. After selecting the debit account select the religious/charitable
institution whom you want to offer donation. After successful payment you
can print an E-receipt for the donation made

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 CHAPTER 3

TERMS OF SERVICE OF
ONLINE BANKING

35
 TERMS OF SERVICE: ONLINE SBI

3.1 GENERAL INFORMATION:

1. You should register for ‘OnlineSBI’ with the branch where you maintain the
account.

2. If you maintain accounts at more than one branch, you need to register at
each branch separately.

3. Normally OnlineSBI services will be open to the customer only after he

acknowledges the receipt of password.

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4. We invite you to visit your account on the site frequently for transacting
business or viewing account balances. If you believe that any information
relating to your account has a discrepancy, please bring it to the notice of the
branch by e-mail or letter.

5. In a joint account, all account holders are entitled to register, as users of

‘OnlineSBI’, but transactions would be permitted based on the account
operation rights recorded at the branch. (To begin with the services will be
extended only to single or Joint “E or S” accounts only).

6. All accounts at the branch whether or not listed in the registration form, will
be available on the ‘OnlineSBI’. However the applicant has the option to
selectively view the accounts on the ‘OnlineSBI’.

3.2 SECURITY:

1. The Branch where the customer maintains his account will assign:

a) User-id &

b) Password

2. The User-id and Password given by the branch must be replaced by User
Name and Password of customer’s choice at the time of first log-on. This is
mandatory.

3. Bank will make reasonable use of available technology to ensure security and
to prevent unauthorized access to any of these services. The ‘OnlineSBI’
service is VERISIGN certified which guarantees, that it is a secure site. It
means that

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 • You are dealing with SBI at that moment.

• The two-way communication is secured with 128-bit SSL encryption

technology, which ensures the confidentiality of the data during
transmission.

4. These together with access control methods designed on the site would
afford a high level of security to the transactions you conduct.

SBI will soon be implementing PKI/Digital Signature.

5. You are welcome to access ‘OnlineSBI’ from anywhere anytime. However,
as a matter of precaution, customers may avoid using PCs with public
access.

6. There is no way to retrieve a password from the system. Therefore if a

customer forgets his password, he must approach the branch for re-
registration.

3.3 BANK’S TERMS:

1. All requests received from customers are logged for backend fulfillment and
are effective from the time they are recorded at the branch.

2. Rules and regulations applicable to normal banking transactions in India will

be applicable mutatis mutandis for the transactions executed through this
site.

3. The OnlineSBI service cannot be claimed as a right. The bank may also
convert this into a discretionary service anytime.

38
4. Dispute between the customer and the Bank in this service is subject to the
jurisdiction of the courts in the Republic of India and governed by the laws
prevailing in India.

5. The Bank reserves the right to modify the services offered or the Terms of
service of ‘OnlineSBI’. The changes will be notified to the customers
through a notification on the Site.

3.4 CUSTOMER’S OBLIGATIONS:

1. The customer has an obligation to maintain secrecy in regard to Username &

Password registered with the Bank. The bank presupposes that login using
valid Username and Password is a valid session initiated by none other than
the customer.

2. Transaction executed through a valid session will be construed by SBI to

have emanated from the registered customer and will be binding on him /
her.

3. The customer will not attempt or permit others to attempt accessing the
‘OnlineSBI’ through any unlawful means.

3.5 DO’S & DON’TS:

1. The customer should keep his/her ID and password strictly confidential and
should not divulge the same to any other person. Any loss sustained by the
customer due to non-compliance of this condition will be at his/her own risk
and responsibility and the Bank will not be liable for the same in any
manner.

39
2. The customer is free to choose a password of his own for OnlineSBI services.
As a precaution a password that in is generic nature, guessable or inferable
personal data such as name, address, telephone member, driving license,
date of birth etc. is best avoided. Similarly it is a good practice to commit the
password to memory rather than writing it down somewhere.

3. It may not be safe to leave the computer unattended during a valid session.
This might give access to your account information to others.

3.6 INTERNET BANKING RISKS:

CREDIT RISK: Credit risk is the risk to earnings or capital arising from an
obligator's failure to meet the terms of any contract with the bank or
otherwise to perform as agreed. Credit risk is found in all activities where
success depends on counterparty, issuer, or borrower performance. It arises
any time bank funds are extended, committed , invested or otherwise
exposed through actual or implied contractual agreements , whether on or
off the bank’s balance sheet.

INTEREST RATE RISK: Internet rate risk is the risk to earnings or

capital arising from movements in interest rates. Interest rate risk arises from
different between the timing of rate changes and timing of cash flows.
Internet banking can attract deposits, loans and other relationships from a
large pool of possible customers than other forms of marketing. Greater
access to customers who primarily seek the best rate or term reinforces the

40
need for managers to maintain appropriate asset/liability management
systems, including the ability to react quickly to changing market conditions.

LIQUIDITY RISK: Liquidity risk is the risk to earnings or capital

arising from a bank's inability to meet its obligations when they come due,
without incurring unacceptable losses. Liquidity risk arises from the failure
to recognize or address changes in market conditions affecting the ability of
the bank to liquidate assets quickly and with minimum loss in value.
Asset/liability and loan portfolio management systems should be appropriate
for products offered through internet banking. Increased monitoring of
liquidity and changes in deposits and loans may be warranted depending on
the volume and nature of internet account activities.

PRICE RISK: Price risk is the risk to earnings or capital arising from
changes in the value of traded portfolio of financial instruments. The risk
arises from market making, dealing and position taking in interest rate,
foreign exchange, equity and commodities markets. Banks may have
exposed to price risk if they create or expand deposit brokering, loan sales,
or securitization programme as a result of Internet banking activities.
Appropriate management systems should be maintained to monitor,
measures, and manage price risk if assets are activity traded.

FOREIGN EXCHANGE RISK: Foreign Exchange risk is present

when a loan or portfolio of loans is dominated in a foreign currency or is
funded by borrowings in another currency. In some cases, banks will enter
into multi-currency credit commitments that permit borrowers to select the

41
currency they prefer to use in each rollover period. Foreign exchange risk
can be intensified by political, social or economic development. Appropriate
systems should be developed if bank engage in these activities.

REPUTATION RISK: Reputation risk is the current and prospective

impact on earnings and capital arising from negative public opinion. This
affects the institution's ability to establish new relationships or services. This
risk may expose institution to litigation, financial loss, or a decline in its
customer base. A bank's reputation can suffer if it fails to deliver on
marketing claims or to provide accurate, timely services. National Banks
need to a sure that their business
Continuity plans include the internet banking business. Regular testing or
business continuity plan, communications strategies with the press and
public, will help the bank ensure it can respond effectively and promptly to
any adverse customer of media reactions.

TRANSACTION RISK: Transaction risk is the current and

prospective risk to earnings and capital arising from fraud, error, and the
inability to deliver products or services, maintain a competitive position, and
manage information. Transaction risk is evident in each product and service
offered and encompasses product delivery, transaction processing, system
development, computing systems, complexity of products and services, and
the internal control environment. A high level of transaction risk may exist
with Internet banking products, particularly if those lines of business are not
adequately planned, implemented and monitored.

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COMPLIANCE RISK: Compliance risk is the risk to earning or capital
violations of, or nonconformance with, laws, rules, regulations, prescribed
practices, or ethical standards. Compliance risk is also arises in situations
where the laws or rules governing certain bank products or activities of the
bank’s clients may be ambiguous or untested. Compliance risk exposes the
institution to fines, civil money penalties, payment of damages, and the
voiding of contracts.

STRATEGIC RISK: Strategic risk is the current and prospective impact

on earnings or capital arising from adverse business decisions, improper
implementation of decisions, or lack of responsiveness to industry changes.
The risk is a function of the compatibility of an organization’s strategic
goals, the business strategies developed to achieve those goals, the resources
deployed against these goals, and the quality of implementation. The
resources needed to carry out business strategies are both tangible and
intangible. They include communication channels, operating systems,
delivery networks, and managerial capacities and capabilities. The
organization’s internal characteristics must be evaluated against the impact
of economic, technological, competitive, regulatory, and other
environmental hangs.

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3.7 TYPES OF SECURITY THREATS IN ONLINE
BANKING:
Banks and service providers require guarding against various types of online
attacks. The purpose of an attack may vary. In operating systems of
particular kind, attackers may try to exploit know vulnerabilities.

During a short time frame, they also may try to make an unauthorized entry
into a Web site repeatedly thus denying service to other customers.

Types of attacks may include:

Sniffers - Also familiar as network monitors, this software is used to

capture keystrokes from a specific PC. Logon Ids and passwords may be
captured with this software.

Guessing Passwords - We can test all possible combinations to enter into a

network using this software.

Brute Force - A technique to capture encrypted messages then using

software to break the code and gain access to messages, user ID's, and
passwords.

Random Dialing - To dial every number on a known bank telephone

exchange, this technique is used. The purpose is to find a modem connected
to the network. This could then be used as a point of attack.

Social Engineering - To gain information about the system along with

changing password, an attacker calls the bank's help desk impersonating an
authorized user.

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 Hijacking - Attempting to deduce information from them there by
intercepting transmissions. Internet traffic is particularly susceptible to this
threat.

Fraudulent Bank Websites:

A suspicious bank website: www.sbionline.com
Original bank website: www.onlinesbi.com.
These website are believed to aim to trick persons into disclosing their
sensitive personal information

Fake e-mails:
Fake e-mails Email send from fraudulent bank Verify the personal
information Guide customer enter the fraud link. Disclosing their ATM card
numbers and their passwords

Viruses and Worms-Trojan Horse Program:

Viruses and Worms-Trojan Horse Program When we open some suspicious
websites or email Trojan Horse Program will install our computer secretly
Hidden in the computer When you access bank websites Capture our
account and the password.

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 CHAPTER 4

REVIEW OF
LITERATURE ON
ONLINE BANKING WITH
STATE BANK OF INDIA

46
1.Sharma & Malhotra (2015)
Study: "Digital Banking Adoption in Public Sector Banks"
The study found that SBI lagged behind private banks in online service adoption due to
infrastructure limitations and low digital literacy among its customer base. The need for
strategic digitization was emphasized.

2. Gupta (2016)

Study: "Internet Banking and Customer Satisfaction in SBI"

Customers found online banking convenient but expressed concerns about slow website
speed and poor customer support. The study concluded that technical improvements were
necessary to improve satisfaction.

3. Jain & Dutta (2017)

Study: "E-Banking Services in Rural India: A Case Study of SBI"

SBI had the widest reach in rural areas but low usage of digital platforms was observed.
Lack of awareness, digital illiteracy, and poor internet connectivity were the major
challenges.

4. RBI Digital Payment Report (2018)

SBI was ranked among the top contributors to digital payment volume in India. It was
acknowledged for its efforts to digitize transactions through mobile banking and internet
banking platforms.

5. Patel & Mehta (2019)

Study: "Comparative Analysis of E-Banking Services of Public and Private Sector

Banks"
SBI had improved its digital offerings but still lagged in UI/UX design compared to
private sector banks. The study recommended increased investment in digital
infrastructure.

6. Singh (2020)

Study: "Cybersecurity in Internet Banking – A Study on SBI Customers"

Security measures like OTPs and encryption were effective, but customers were unaware
of phishing and fraud risks. The study suggested more frequent awareness campaigns.

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7. Yadav & Reddy (2021)

Study: "User Experience of SBI YONO App"

The YONO app gained popularity for its convenience and integrated services. However,
users complained about app crashes, slow updates, and difficulty in navigating complex
features.

8. Singh, P. (2021) – In the paper “Challenges Faced by Customers Using Online

Banking in Public Sector Banks,” Singh discusses the concerns related to cybersecurity,
server downtime, and lack of digital literacy. SBI's customer education initiatives were
noted as a key measure to address these issues.

9. KPMG India Report (2022)

SBI was recognized as a digital leader among public sector banks due to innovations like
digital savings accounts, instant loan approvals, and integration with UPI. However, the
report noted a need for backend system upgrades.

10.Agarwal, R. (2022) – In his study, “Customer Satisfaction in Digital Banking

Services,” Agarwal found that convenience, security, and speed are the primary factors
driving customer satisfaction in online banking. SBI was highlighted for its extensive
rural reach and efforts to digitize banking services.

11. Ramesh & Nair (2023)

Study: "Online Banking Behavior of Urban vs. Rural Customers in SBI"

Urban users actively used SBI’s digital platforms, while rural users were still
transitioning. Training camps and simplified apps were recommended to bridge the
digital divide. .

12. Sharma & Verma (2023) – Their research on “Adoption of Online Banking in
India” revealed that while private sector banks are leading in digital innovations, public
sector banks like SBI are rapidly catching up by investing in mobile banking apps and
user-friendly interfaces.

13. Dasgupta, M. (2023) – The study “Mobile Banking Penetration in Rural India”
emphasizes the role of SBI in promoting financial inclusion via mobile banking, showing
that SBI has made significant inroads in tier-2 and tier-3 cities.
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14. World Bank & RBI Joint Study (2024)

SBI played a key role in India’s digital financial inclusion drive. Its mobile apps and
digital outreach programs helped millions open accounts and access government
schemes digitally.

15. KPMG India Report (2024) – The report on “Digital Banking Transformation in
India” identifies SBI as a key player in digital banking transformation, especially through
its YONO app, which integrates banking with lifestyle services.

16. RBI Annual Report (2025) – The report highlights a significant increase in digital
transactions post-2020, with SBI being among the top public sector banks to implement
secure and user-friendly internet and mobile banking platforms.

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