A Field Work On

“STUDY OF ONLINE BANKING”

SUBMITTED TO
KCES'S Institute of Management & Research, Jalgaon
College Code: 100010

NAAC Re-Accredited 'A' Grade (3.17) CGPA

SUBMITTED BY
Name: Mr. Vaibhav Rameshwar Mali
Email id: [email protected]
Name: Miss. Khushabu Amolakchand Jain
Email id: [email protected]

UNDER THE GUIDANCE OF

Name: Prof. Sweta Phegade
Email id: [email protected]

IN THE PARTIAL FULLFILMENT OF

Bachelor of Computer Application
Kavayitri Bahinabai Chaudhari North Maharashtra University,
Jalgaon for The Academic Year 2022-23
 Khandesh College Education Society’s
Institute of Management & Research, Jalgaon
NAAC Re-Accredited 'A' Grade (3.17) CGPA

CERTIFICATE

This is to certify that the field work entitled “Study of Online Banking” has been
Successfully completed for partial fulfilment of Degree of Course of “Bachelor of
Computer Application” Kavayitri Bahinabai Chaudhari North Maharashtra
University, Jalgaon. It has been carried out under my guidance.

It is the original work of Mr. Vaibhav R. Mali & Miss. Khushabu A. Jain who

work hard and sincerely completed the Field Work I am fully satisfied with his
performance.

Miss. Geeta Suryawanshi Dr. Tanuja Fhegade

Project Guide HOD

Examined By

Internal Examiner External Examiner

 DECLARATION

We hereby declare that the project work entitled “Study of Online Banking”
has carried Out result on the basis of investigation and analysis by me under the
guidance of Miss. Geeta Suryawanshi.

We further declare that this work has not been submitted in partly or fully to

other university or Institute for the award of any other degree. Material obtained from

other sources have been daily acknowledgement in the Field Work.

Date: Mr. Vaibhav R. Mali

Place: Jalgaon Miss. Khushabu A. Jain

 INDEX

Sr. No. Name of Chapter Page No

1. Abstract 1

2. Introduction 2

3. Scope and Significance 5

4. Objectives 6

5. Methodology 7

6. System Web on Online Banking 8

7. Result and Discussion 9

8. SWOT Analysis 15

9. Predicted Future 18

10. Desirable Future 20

11. Conclusion 25

12. References 26

13. Questionnaire 27
 ABSTRACT

Today, India is fastest developing country in the world and after demonetisation
in 2022, there is surge in E-banking sector of India. E-banking is now a key
component of today’s digitalised world. In this study, we collected data about
past of E-banking in India, analysed present situation of E-banking in India by
taking surveys and tried to predict the future of E-banking sector in India.

In this study, we studied 7 different factors related to E-banking in India,

which are as follows

1. Different modes of transaction

2. No. Of users

3. Technological advancements in E, banking

4. Net amount of transactions in E. banking

5. Government policies

6. Awareness in public

7. Use of different services offered by E-banking

We then conducted a survey in Jalgaon city and outskirts to get the required
data after which we analysed it and tried to determine the possible future. In
the survey we had asked various questions like their preferred mode of
banking, No. of transactions per week done by them. Then we analysed the
data collected from survey and RBI and find out some conclusions using the
analysis we tried to predict the future in two phases.
 INTRODUCTION

 Why We Chose this Topic?

We all were interested in studying the economy of India and other

countries. We discussed various topics such as demonetization, G6etc., but
then understanding the importance of banks in the lifeline of Indian economy
we chose E-banking as our topic for futurology project. When we came across
various factors affecting physical as well as E-banking, we decided to finalize
our topic. First, we listed various factors related to our topic and segregated
them based on various categories such as Age, Educational qualification etc.
After studying about it, we understood various factors affecting the E-banking
in India and we chose the topics we would like to work on.

 Overall Structure of the Project

As mentioned earlier we choose 7 main categories to segregate

our data. Those factors were,

1) Mode of transactions for e.g., Cash, Cards, Internet banking etc.

In our subject mode of transactions plays a vital role and for the same reason
we have considered this factor.

We have mainly bifurcated this factor into 4 parts

• Cash transactions

• Transactions by Cheque

• Transactions with the use of Plastic Money (i.e., Credit cards, Debit cards,
Smart card)
• Online transactions

2) Services offered in E-banking-

This factor is mainly divided into 2 parts:

1}Services offered by government like Jan Dhan Yojana

2}Services offered by private companies like PAYTM, PayPal etc.

This factor highly affects the number of E-banking users and for the same
reason we have considered this factor

3) Awareness about E-banking-

Many people are not well aware about E-banking and do not know much
about it. Due to ineffective implementation of Govt. policies and some other
reasons E-banking has not reached all the places and hence people are not
using it on greater extent.

4) Government policies-

As mentioned earlier Gov. Is trying to initiate various schemes like Jan Dhan
Yojana which is going to make E-banking sector even to the poorest sections of
the society and for the same reason we have chosen this factor.

5) Technology-

Today the Modi government is trying to implement more and more

schemes as well as policies which will help in making Indian economy the
Cashless economy. For these new technological advancements such as
Biometric system, eye scanner etc. This is going to affect the development of E-
banking sector on a greater extent. Therefore, we have chosen this as an
important factor.

6) Volume of transactions-

For studying this topic one of the most important factors to be taken in the
consideration is volume of transactions. Under this factor we have studied
number of transactions as well as amount of transactions (in millions). We
wanted to know how the people are transacting throughout the India and how
the number of transactions will be affected by the wild card decision of
Demonetization and for the same reason we have taken this factor into
consideration.

7) Number of users-

As mentioned before the number and amount of transactions is ultimately

dependent upon the number of users. If there are no users of a particular
system that system will not be able to sustain for a long time. Thinking similarly
about E-banking sector we have chosen this as an important factor.
 SCOPE AND SIGNIFICANCE

Scope and Significance of the Study

The scope of the study will be on the 14 banks working in Palestine (pma.ps
2018), and this will demonstrate the impacts of the banking sector, regardless
to the differences in the service between the banks. The study is limited to four
main electronic banking services, which are Automatic Teller Machine, Internet
Banking, Phone Banking, and Mobile Banking. Other payments services,
payments’ systems, and cards services were not covered in this study.

The significance of this study comes from different aspects:

 The study topic is arguable, due to the rise of digital banking

systems and FinTech companies.
 The study focuses on two major issues in the banks, the first
is the bank's services quality, availability, and
 cost-efficiency. The second is the customers. Fierce
competition is pushing banks to improve the products
 and services and to create clever banking solutions for their
customers.
 OBJECTIVES

To Attract Customers

one of the important objectives of e-banking is to attract customers. E-banking

is helping the customers by providing online services. it is attracting the
customers and making the banking system easier.

To Provide Liquidity

E-banking helps to provide liquidity to the banks, because consumers do online

transactions, which means there are no withdrawal of physical money. So, E-
banking to provide liquidity.

To Boost Economy

E-banking helps to boost the economy, because online transaction helps to

maintain the cash in the economy, which would be use during recession of the
economy.

To Provide 24/7 Service

The world economy is growing, people are doing business globally. it requires
24*7 banking service. E-banking doing the same, to provide 24*7 service. it is
one of the important objectives of e-banking.
 METHODOLOGY

The methodology adopted in the study is based on primary data from

various. Source namely: online sources, colleges, schools etc. The study is also
based on primary survey where data was collected through observation and
survey methods.

The primary data is collected through interviews of the students. For this
purpose questionnaires are prepared. With the help of questionnaires, we can
collect the data in survey. Forms of questionnaire were distributed in the
students of the colleges and schools. During the fifth semester of the academic
year 2022- 2023. We can collect the data through observation of
questionnaires.
SYSTEM WEB OF ONLINE BANKING

Fig. 1
 RESULT AND DISCUSSION

1)NUMBER OF PEOPLE USING E-BANKING

No of E-Bank Users No of People Not using E-Banking

68% 32%

Fig. 2
Here we can observe that according to survey
around 68% of the total people who answered the survey are using e-banking.
Around 35 % of the population is using E-Banking for daily transactions. In the
near future this number will increase by 50-60%.

2)FREQUENCY OF TRANSACTIONS PER WEEK

0-3 51%
3-6 22%
6-9 15%
9+ 12%
 Fig. 3

According to the data the frequency is for 0-3 transactions per week. Out of
every 100 persons nearly 50% do less than 3 online transactions per week. As
we all know DEMONITIZATION is going to change this situation completely.
Here we can see that nearly 12% people are doing on an average 9 and more
transactions per week. According to our prediction in the near future this
percentage will increase by two- folds.

3)PREFERENCE FOR USE OF VARIOUS SERVICES

Online payment 32%

Balance enquiry 14%
ATM banking 22%
Fund transfer 26%
Other services 6%
 The graph clearly tells us that the service used mostly by the people is
Online Payment. People prefer to pay online rather than visiting the place
physically to pay. Nearly 32% people use the service of online payment mostly.
The second most used service is Fund Transfer accounting to about 26%.

Fig. 4

The third most used service is ATM Banking accounting to about 22%.
There are various modes by which the funds can be transferred between two
accounts, but if we look at the % of people doing fund transfer by various
means like cash, cheque, online etc. we can see that from these 22% around
21% do transactions by cash, 38% transact by Cheque and 41% do transactions
online.

4) SERVICES TO BE IMPROVED
 ATM Services 18%
Account services 8%
Fund transfer 5%
Bill payment 8%
E-Tax payment 9%
E Deposits 6%
Investment and Services 7%
Loans and Credit services 6%
Internet security services 33%

Fig. 5

Here we can clearly observe that the highest percentage of people, that is
33% people want Internet security services to be improved. This clearly
indicates the fact that Official Govt. sites are highly insecure and there is risk of
Hacking and Misuse of confidential data. Today it is surprising to see that our
online bank account, credit card number etc. can be hacked only in 6 seconds.
There is an urgent need to improve these services.
 Further 18% people want ATM services to be improved. Today more than
30% financial frauds are done by using ATM cards. The ATM card pin can take
few seconds to be hacked. On the other hand, only 5% people want Fund
transfer service to be improved. Based on this we can conclude that, according
to the survey , today the most secure service offered in E-banking sector is
Fund transfer.

5) REASONS FOR NOT USING E-BANKING

Not well informed 30%

Inactivated online bank account 27%
Misconceptions/Security reasons 26%
Others 27%

Fig. 6

Here are some of the important reasons for which the people are not
using E-banking. We can observe that most percentage of the people are not
using E-banking because they are Not Well Informed about E-banking. Around
30% people are not aware about, some very basic questions like how to do
banking transactions online? What things we need to do online transactions
and many more basic questions about E-banking

This clearly indicates that there is an urgent need to organize awareness and
information campaigns on E-banking. Secondly around 27% of the people are
not using E-banking because of the inactivated online account. At last, we can
observe that around 26% of the people are not using E-banking because of
misconceptions and security reasons. This clearly indicates that there is a need
for organizing information and awareness campaigns on E-banking.
6) PREFERENCE TO MODES OF TRANSACTIONS

Credit 18%
Online 27%
Cheque 25%
Debit 19%
Cash 11%

Fig. 7

This graph shows the modes of transactions preferred by people. 27%

people have given the first preference to the Online mode of transaction. This
is the highest percentage among other modes but still we can observe that it is
very less. There can be variety of reasons for such a small percentage of people
using Online mode of transaction. Some of these reasons we can see in graph
no.5.

Further 25% of people prefer Cheque as a mode of transactions. This is also a

secure mode of transaction. Compared to other modes of transactions online
modes provides us with variety of services.
 SWOT ANALYSIS

STRENGTHS

 Transparency and Disclosure practices are available almost

everywhere
 E-banking is Facilitating the offering of more services
 Online services and E-banking are Increasing customer satisfaction
and loyalty
 Competitive advantage for banks

 As the competition will increase banks will try launching more and more
schemes reaching to the wider public section.
 Reduces the time, cost and effort in the interaction

 We will be able to do transactions by sitting at home within a few seconds

which will reduce the time consumed. Infrastructure required for the setup
of online services will be less leading to the effective reduction in cost and
efforts

 E-banking provides Permanent access to the bank

 It is a Safe and secure method regarding security issues
 Discounts and offers on Online services are attracting more
customers

WEAKNESSES
  Delayed statements of transactions are consuming a little bit of more
time and thus people are thinking it to be more time consuming
 Less awareness about e-banking
 Misconceptions about security reasons are making people use E-banking
on a very small scale
 Low Internet connectivity in rural and some urban areas is preventing
people from accessing online bank websites
 Lack of trust in people. People are not well aware about E-banking and
think of it as a risky method.
 Insufficient penetration of Mobile banking in rural areas
 Infrastructural issues such as building banks and ATM machines in rural
areas.
 E-banking services are costly .so, it is not affordable for poor people
 Online payments are not accepted everywhere

OPPORTUNITIES
 Demonetization-Promoting CASHLESS transactions-demonetization is
positive booster for e-banking.

 People don’t have any money in hand so; people have no other option
other than online banking. So, people will move towards E-banking
 Promotion of inter-connectivity between banks and customers-Today,
BJP government is promoting e-banking .so, people are getting more
information about E-banking and as a result e-literacy is increasing.
  Increased quality of online services
 Supporting Government policies

 Increasing investment in E-banking sector

 Increased competition among companies in E-banking sector-

This may lead to increase in qualities and decreased cost of services provided
in E-banking

THREATS

 Security problems-today, there are many security

threats in online transactions like-
 Card trapping
 Fake websites
 Keystroke logging
 Use of malware programs

 Because of above threats people are not using E-banking because there
is fear in minds of people about online transactions
 Misuse of lost cards-if people don’t deactivate their cards after getting
lost, then other people may misuse it.
 Misuse of confidential data –many times confidential data like phone
no., password of email address and many other things may leak while
performing online transactions
 Development in E-banking will lead to decrease in employment of
people in banking sector .so, it may create a big problem of unemployed
people
 PREDICTED FUTURE

This is the future which we think will happen in India with current
economic growth and infrastructure development.

Phase-I (2016-2023)

a. By 2022 around 60% people will be using E-banking

b. Around 60% of the hotels, street shops and other institutions will be
installed with various payment methods like virtual,online,plastic
money, biometric system etc.
c. New services like Paytm, Bhim app, etc. will be introduced in the near
future i.e. in 2018-2019.
d. Looking on a broad basis more than 55% of the people in Maharashtra
will be Digitally Literate.
e. Popular and the most used modes of transactions in the upcoming 5
years will be:
 Online
 Cheque
 Plastic money
f. Government policies and schemes will start reaching the rural areas .
g. SHGs will help people in villages in being digitally literate and will
promote the concept of CASHLESS SOCIETY in that village .
h. More ATMs and swipe machines will be installed in most of the villages.
Phase-II(2022-2026)
a. More than 65% of the population will be using E-banking and Online mode

of transactions and this percentage will keep growing steadily. By 2030 more
than 70% of the population will be using E-banking

b. People will be doing more than 80% of the transactions through mobile
banking or net banking
c. Government will mainly focus on making India a cashless country and thus

Government will keep launching various schemes and policies will even
reach to smallest villages

d. Plastic money users i.e. Credit card users, Debit card users, Smart card users

will keep growing at a steady rate of 4%-5% per annum

e. The mobile banking penetration in India, currently being around 50%, will
increase to 60%-65%
f. New ways of transactions such as transacting by biometric or eye scanning,

will be commonly used everywhere. This will also reach to the poorest
sections of the society and will help in making them Digitally Literate.
 DESIRABLE FUTURE

This is the ideal future which we think is essential to make India a

superpower till 2030. But , for this ideal future , we need stable government ,
people’s support and good implementation of government policies till the root
levels of India.

Phase 1-2018-2022

Infrastructure Development

 Everyone will be connected through bank accounts through various

governmental schemes.so; everyone will be a part of formal banking
system. This will help government to spread awareness about E-banking
among people
 Services of online banking will be provided everywhere and
anytime .This will help people to overcome their problems related E-
banking.
 Internet connectivity all over India at reasonable rate. This will help to
increase efficiency of E-banking.
 Sufficient energy resources will be available for electricity generation
and supply. Electricity is one of the most important resource required
for E-banking .so, if there is 24/7 supply of electricity ,then there will be
no problem in performing online transactions
Services and awareness

 User- Friendly Services will be available on monthly/annual basis.

 All services will be available everywhere, anytime and quick.
 With the help of self-help groups, NGOs and government officers the
awareness will be spread all over
 India ,included rural and remote areas
 Digital literacy in India will be 85-90%

Uses
 85% people will be Dependent On E-Banking
 All services(included both government and private) will be available
online.
 Following services and many more services will available online-
 Payment of school fees
 Recharge of internet, set top box and phone
 All taxes
 Shopping
 salaries
 All government payments will be paid online
 Cash payments-limitation of 3000 RS

There will be limitations on cash payments so that you are not allowed to

pay more than 3000 RS with cash per month

 Most preferable mode of transfer will be-

1) online
2) UPI and BHIM
 3) plastic money

Phase 2-2021-2026
We have proposed new mode of transaction which will work as an ideal
mode of transaction for Indian economy-B.V.M.T.

B.V.M.T.- Biometric verification and money transfer

What will you need to use this system?

• You need only Aadhar card so that government will create biometric
password for each person.
• You need nothing other than Aadhar card and bank account in any bank in
this system.

How will it work?

Suppose you went to the restaurant, and you have to pay 1435 RS, Only
thing you need to do is-Just scan your finger on biometric scanner. Money will
be transferred from your account to hotel manager’s account immediately,
within few seconds, payment will be done. No need to carry any cash and
cards, No need of internet. Because your thumb will be your bank.

How will it overcome security threats of other mode of transactions?

1) Misuse of lost cards and money-

In B.V.M.T., there will be no need of anything to carry, because your thumb

will be your bank.
2) Hacking of online account-
B.V.M.T is completely offline mode of transfer, and all servers of this network
will be under govt. control so, there will be least probability of hacking. 3)
Copying of finger print and misuse of it –

There will be system in which scanner will sense your sweat on your finger tip
which is non-identical for everyone so, even if someone copied your finger
print ,then also he can’t misuse it.

Other advantages
1) Eco-friendly mode-no use of paper .so, totally pollution free mode of
transactions. This will help in the conservation of trees and will provide other
environmental benefits also.

2) This system will be under government's control so, all profit will be of
government, and As a result wealth drain will stop. FDIs in India along with the
wealth generation at the local level will help the government for providing
better facilities.

Desirable future
• Internet access –everywhere almost free. Everyone will be able to access
the bank websites and get the required information

• All services will be quick ,user-friendly and efficient

• Cards or cash: B.V.M.T. Plastic money and cash transactions will be

almost negligible and will gradually decrease to 0%.People will prefer
using B.V.M.T instead of cash transactions as it will be easier and
accessible to all including rural areas.
• 99% of transactions will be done by using E-banking. Cash transactions
will be almost negligible

• From pan shop to hospital, everywhere transactions B.V.M.T will be

available

• Internet Servers will more efficient and can operate at very high speeds
without any interruptions which will ultimately help in reducing time
consumption and human labour.

• Transactions more than 1lakh will done with triple security-

password ,onetime code ,B.V.M.T

• Transactions more than 10000 will done with Double security B.V.M.T
and onetime code
 CONCLUSION

Today E-banking or Net banking and cashless transactions have become

very important for the fast development of Indian Economy. After the wild
card decision on Demonetization by the Modi government Indian Economy will
take giant strides in its development. Looking at the present situation there in
an urgent need for the promotion of the Cashless society by the Indian
government.

In today’s world of globalization, promoting cashless society is the necessary

thing for development of any country. Now, it is need of INDIA to develop a
user friendly ,more efficient mode of online banking which will boost the E-
banking sector in India.

But before we should at least try to spread awareness about benefits and
threats of e-banking, for which we can take help of online shopping companies
like amazon and flip-cart.

Today, there is exponential growth observed in E-banking sector .but, to

have controlled and sustainable growth of this sector our government should
take some serious steps for promotion and regulation of online transactions.

Finally, we conclude this project to a following statement- “E-banking is a

necessary thing for development and progress of any country”.
 REFERENCES

[1]. www.rbi.in

[2]. www.wikipidia.org

[3]. The Economics times

[4]. Indian express

[5]. essaytank.blogspot.com

[6]. slideshare.com
 Khandesh College Education Society’s
Institute of Management & Research, Jalgaon
NAAC Re-Accredited 'A' Grade (3.17) CGPA

QUESTIONNAIRES

*Please tick on appropriate answer*

1) Do you use e-banking?
a) Yes b) No

2)Page

AGE 20-30 30-40 40-50 50-60 60-70 70+

3)Qualification or education-

Qualification <graduate Graduate Post graduate >post

graduat
e

4)If you want to do transaction of RS5000 or more then which mode will you
prefer?(please give sequence from first preference to last preference by
giving rank 1 to 6 in descending order.)

Mode of transactions Cash Cheque Debit Credit online Paytm or

card card bit coins
(Give preference from
1 to 6)
5)Why you gave first preference to this mode? (Mode which you gave 1st
preference above)

___________________________________________________________________________
______________ ___________________________________________________________

6) How many times you do online transactions per week?

No. of transactions
0-3
3-6
6-9
9 or 9+

7)Are you well informed about e banking?

a) Yes b)No

8)Living area

Urban Sub urban Rural

9)If you are not using e-banking, then reason behind it is-

Reason
I)less information about e-banking
II)online bank account is not activated
III)misconceptions or security reasons
IV)other
10)Kindly give preference of the followings of your online banking
services:

(Give preference in descending order from 1 to 9)

services preference
fund transfer
ATM banking
BALANCE ENQUIRY
ONLINE FIXED DEPOSIT
REQUEST A DEMAND DRAFT
PAY BILL
ONLINE SHOPPING
ONLINE RECHARGE
OTHER

11)In your opinion which online operations should be modified promptly

for better services in future? (Please tick on only 1 or 2 services)

services
ATM services
Account services
Fund transfer
Bill payment
e-tax payment
e-deposit
Investments and services
Loans and credit services
Internet security services

12)Give your overall rating in online banking services.

 EXCELLENT VERY GOOD AVERAGE POOR HARD TO
GOOD SAY.

13) What is your preferred communication with your bank? (you can choose
many)
online via personal computer
online via smart phone
call center
visit to the bank
atm

14) What is the main reason that you typically visit your bank branch (please
choose the single most important reason)?
to make a deposit

to get advice for investment options

to inquire about a balance

to withdraw cash

other

15) Have you performed any of the following activities on-line? (Please check
all that apply)

Tax filing
Purchased/sold financial product (e.g., stock, bonds)
Neither of these
16)How frequently do you visit your bank branch per month?
 Less than 1
1 to 3 times
3 to 8 times
8 to 12 times
over 12 times
17) Approximately how many times have you purchased any product through
the Internet in the last 12 months?

Less than 1
1 to 3 times
3 to 8 times
8 to 12 times
over 12 times
18) For your on-line banking, which of the following category best explains
your situation?

Your bank provides you with an application software program that operates
on your PC. You then dial into the bank via modem, download data, and
operate the program that is resident on your PC.
You use a Web browser, but the actual banking software resides on the
bank's server in the form of bank's home page.
Don't use either of these/don't use on-line banking

19) What banking services do you use which your Internet bank offers?
(Please check all you are currently using)

Seeking product and rate information

Calculate loan payment information
Download loan applications
Download personal bank transaction activity
 Check balances on-line
Apply for consumer loans or credit cards online
Inter-account transfers
On-line bill payments
Others
Not Applicable

20)What is the percentage of your household monthly income you deposit to

your Internet bank account?

%
Don't know
Not Applicable

21)What was the single most important reason that you chose this particular
bank as your Internet bank? (please choose one)

I have a traditional bank account with the same bank

The brand name of the bank
The excellent service offered by this bank
Others
Not Applicable

22)In addition to your Internet bank account, do you also have a traditional
bank account?
Yes
No
Not applicable

Signature