Abstract

Virtual Banking/E-Banking/online Banking/Internet Banking/personal computer

banking/home banking/remote electronic banking/phone banking, these are the
synonyms for the Electronic Banking. The term E-Banking covers both computer and
telephone banking. These two types of banking involve the usage of passwords. It
came into existence due to Innovation in Technology and competition among the
existing banking organizations, who displays their banking products and services for
easy accessibility to the customers which can be delivered through the internet. The
rapid development of E-banking services carries risks as well as benefits. Hence, it is
the responsibility of the bankers to recognize, manage and to address banking
institutions in cautious and sensible way according to the fundamental characteristics
and challenges of E-Banking services. Electronic banking and finance is the penetrating
mechanism with a variety of services especially in the banking sector. Globalization and
technological advancement like kiosks and internet brought many products and services like
ATMs, Smart cards, Online Banking which is facilitating electronic payment, Plastic money
services, Brokerages and foreign exchange transactions, which automatically leads to wide
access of B2B and B2C business domains. The website technology has totally transformed
the banking business. The success of Internet banking depends upon the well designed
website of a bank. India has 155 scheduled banks with 99,218 ATM network (June-
2012). SBI leads the pack with 22,469 ATMs followed by Axis Bank with 10,337 ATMs. In
India E-Finance are governed by several acts like IT act-2000, Central bank guidelines on
internet banking etc. Even it has many advantages; E-Finance in banking sector has
associated with many risks like security risk, System architecture and design etc. So this
paper discusses the impact of E-Finance on banking sector, its various products and
services, diverse risk associated with electronic banking services and its solutions to tackle
these challenges. The study is based on exploratory research mainly on qualitative analysis.
 TABLE OF CONTENTS

CHAPTER NO. TITLE PAGE NO

ABSTRACT i

LIST OF TABLES ii

LIST OF CHARTS ii

1 INTRODUCTION 1

1.1Introduction 2

1.2 Electronic Baking 3

1.3 Importance of e- banking in the present India 4

1.4 Tools and services of e-banking 4

1.5 Types of E-Banking 6

1.6 Statement of Problem 7

1.7 Significance of the Study 2

1.8 Scope of the Study 8

1.9 Objective of the Study 8

1.10 Limitations 8

2 2.1 REVIEW OF LITERATURE 9

3 3.1 RESEARCH METHODOLOGY 15

3.2 Research Design 16

3.3 Sources of Data 16

3.4 Sampling Technique 16

3.5 Tools Used 17

3.6 Hypothesis/ Analytical Tools 17

4 DATA ANALYSIS AND INTERPRETATION 18

4.1 Percentage analysis 19

4.2 Pie Diagram 18

4.3 Bar Diagram 20

5 FINDINGS, SUGGESTIONS AND CONCLUSION 38

5.1 Findings of the Study 39

5.2 Suggestions 40
5.3 Conclusion 41

REFERENCES 42

WEBSITES 43

APPENDIX – I (Questionnaire) 44
 LIST OF TABLE

TABLE NO. PARTICULARS PAGE NO.

4.1 Gender of the respondents 19
4.2 Educational Qualification of the respondents 20
4.3 Occupation of the respondents 21
4.4 Annual income of the respondents 22
4.5 Bank Account of Consumers 23
4.6 Types of Bank Accounts 24
4.7 Duration of Using banks Services 25
4.8 Awareness About E-Banking Services 26
4.9 Source of Knowing E-Banking Services 27
4.10 Level of Awareness About Various E-Banking 28
Services
4.11 Most Familiar Fund Transfer 29
4.12 Usage Of Banking Services 30
4.13 E-Banking Personally Adopted 32
4.14 Influencing Factors to Prefer Banking 33
Services
4.15 Limiting Factors Faced by Customers While 34
Operating Transaction
4.16 Opinion About Various Factors Regarding E- 35
Banking Services
4.17 Chi-Square Test 36
 LIST OF CHARTS

CHARTS NO. PARTICULARS PAGE NO.

4.01 Gender of the respondents 19

4.02 Educational Qualification of the respondents 20

4.03 Occupation of the respondents 21

4.04 Annual income of the respondents 22

4.05 Bank Account of Consumers 23

4.06 Types of Bank Accounts 24

4.07 Duration of Using banks Services 25

4.08 Awareness About E-Banking Services 26

4.09 Source of Knowing E-Banking Services 27

4.10 Level of Awareness About Various E-Banking 28

Services
4.11 Most Familiar Fund Transfer 29

4.12 Usage Of Banking Services 30

4.13 E-Banking Personally Adopted 32

4.14 Influencing Factors to Prefer Banking Services 33

4.15 Limiting Factors Faced by Customers While 34

Operating Transaction
4.16 Opinion About Various Factors Regarding E- 35
Banking Services
 CHAPTER 1
INTRODUCTION

1
 1.1 INTRODUCTION

Now a day’s information technology plays a vital role in banking sector. Day
by day increasing change in technology world, it leads to improve E-Banking
services of various banks. In banking industry in the past, large queues could be
observed for payment utility bills or for cash withdrawals/deposits. The banks are
succeeded to reduce this queue through uses of latest technology, but still busy
common people are demanding less time methods for banking transactions. In this
regard, banks are going utilize internet facility for customer’s transactions. This
method will reduce paper work, and will give quick response to customer while they
remain in their office or at home. It pro vides various advantages to customers of
various banks. Now a days people are educated more than older days, today human
lives become machine oriented and they don’t have enough time to visit bank branch
than even before.

E-Banking means providing banking products and services through electronic

delivery channels like ATM, internet banking, telephone banking and other electronic
delivery channels. Internet banking highly useful to the customer one who have
computer with internet connection, they need not visit bank branch for their business
transactions. Simply they can transact anywhere, anytime if they have internet
connection.by dialing the telebanking number customer can get various facilities like
cheque book request, balance enquiry etc…E-Banking includes the system that
enables the financial institution customers, individual 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, such as personal computer
(PC), automated teller machine (ATM), kiosk or mobile phone.

Electronic banking is a high-order construct, which consists of several distribution

channels. It should be noted that electronic banking is a bigger platform than just
banking via the internet. The term electronic banking can be described in many
ways. In a very simple form, it can mean the provision of information or services by a
bank to its customers, via a computer, television, telephone, or mobile phone
(Daniel, 1999). Electronic banking has different types of delivery channels:
telephone, PC, mobile and the internet. Moreover, Personal Computer allow
customer to use all E-Banking facility at home without go to bank. It gives customers

2
a variety of services so they can move money between accounts, pay bills, check
balances, and buy and sell mutual funds, securities and also submit electronic loan
applications through PC Banking. A mobile banking service is the newest service in
electronic banking Customers can check their balance and make adjustments
between accounts, account transactions, payments etc. Internet is the
interconnection of computer communication networks which enable the customer to
perform all the banking activities over the internet.it is the latest wave in the
information technology. The NET is changing everything, from the way of conduct
commerce and the way of distribution of information. Several benefits of strong
electronic service have also been identified as including satisfied and retained
customers, attraction of new customers, development of customer relationships,
increased sales and market shares, enhanced corporate image, reduced costs and
increased profit margins and business performance.

The main advantage regarding E-Banking is that is availability 24 hours a day

and 7 days a week. Customer’s perception and life style plays important role in
growth of E-Banking system.

The fact is that the customers are even not using all of E-Banking products
and services offered by the bank. So there arise the necessity for the study of
customer’s awareness and perception towards E-Banking services.

1.2 ELECTRONIC BANKING

Meaning

E-banking also known as internet banking, online 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. To access a financial institution’s online facility, a customer with
internet access would need to register with the institution for the service, and set up
a password and other credentials for the verification. For other E-banking facilities,
necessary procedures are to be done according to banker’s instructions. For the use
of ATM facility, the card must be availed. There are two ways to offer Internet
banking. First, an existing bank with physical offices can establish a web site and
offer Internet banking in addition to its traditional delivery channels. Second, a bank

3
may be established as a “branch less, Internet only, or virtual bank” without any
physical branch.

1.3 IMPORTANCE OF E- BANKING IN THE PRESENT INDIA

E-banking is information technology based banking. Under this system, the banking
Services are delivered by a computer-controlled system. In India, E-banking is of
fairly recent origin. In this fast moving technological world, every human activity is
transforming to technology based, and the human life style also changed with this a
lot of. So, a speed and convenient system is necessary in the banking sector also.
Here comes the use and effectiveness of e- banking with the present world’s
requirements. E -banking ensures 24 hours of service to its customers. The cost of
transactions and effort for the access is negligibly small compared to the traditional
banking system. The Indian government has put a reasonable care to this system
and announced various programs and schemes like Digital India, Jan dhan yojana,
Adhar linking with bank accounts, cashless economy initiatives etc. It is hopeful that
Indian banking sector is fairly mature and also they are trying to make innovations in
this sector. The shops keepers are very willing to install the POS swiping facility to
simplify the money transactions with customers and dealers.

1.4 TOOLS AND SERVICES OF E-BANKING

1.4.1 TOOLS OF E- BANKING

 Automated Teller Machine

The Automated Teller Machines are computerized telecommunication device that

provides a financial institutions customers a method of financial transactions in a
public space without the need for a human clerk or bank teller. These are meant for
balance enquiries, cash withdrawals and many other facilities depending upon
policies of the bank. This requires a valid Customer Id and password to log in and is
therefore safe to be used.

 Debit Card

Debit Cards is another advanced technology of the electronic banking. Now-a-

days, these cards are the multi-purpose cards and can be used in ATMs for balance

4
enquiry and cash withdrawal or can be used for easy shopping at various counters.
Debit Cards ensure the automatic deduction of amount from the account just by
scratching it on the machine.

 Credit Card

A credit card system is a type of retail transaction settlement and credit system,
named after the small plastic card issued to users of the system. In the case of
credit cards, the issuer lends money to the consumer. Credit cards become very
popular in India with the introduction of foreign banks in the country.

 Smart Card

A Smart card is a plastic card used for storing and retrieving personal information.
Normally, it is the size of a credit card and contains electronic memory and
possibly an embedded integrated circuit.

 Kiosk machine

A kiosk is a small, free structure that displays information or provides a service.

Kiosks can be manned or unmanned, and unmanned kiosks can be digital or non-
digital. In business, kiosks are often used in locations with high foot traffic. In
shopping mall, For example an unmanned, non –digital kiosk can be placed near
entrances to provide people passing by with directions or promotional messaging
.manned kiosks temporarily set up in Aisels can provide businesses that have
seasonal sales cycles with a cost effective way to display wares, and digital kiosks
placed near movie theatres can provide online banking or ticket sales services.

1.4.2 E-BANKING SERVICES

 Online Bill Payment Service

Each bank has tie - ups with various utility companies, service providers and
insurance companies, across the country. You can facilitate payment of electricity
and telephone bills, mobile phone and insurance premium bills. To pay your bills, all
you need to do is complete a simple one-time registration for each biller. You can

5
also set up standing instructions online to pay your recurring bills, automatically.
Generally, the bank does not charge customers for online bill payment.

 Fund Transfer

You can transfer any amount from one account to another of the same or
any another bank. Customers can send money anywhere in India. Once you
login to your account, you need to mention the payee’s account number, his
bank and the branch.

The transfer will take place in a day or so, whereas in a traditional method, it
takes about three working days

1.5 Types of E-Banking

 Internet banking

Internet banking is the use of internet as a delivery channel for the banking
services, including traditional services, such as opening an account, or transferring
funds among different accounts, as well as new banking services such as
electronic bill presentment and payment, which allow the customers to pay and
receive the bills on a bank's web site. There are two ways to offer internet banking.
First, an existing bank with physical offices can establish a web site and offer
internet banking in addition to its traditional delivery channels. Second, a bank may
be established as a 'branchless',' Internet only', or 'virtual' bank. The Reserve Bank
of India constituted a working group on Internet Banking.

 Mobile banking

Mobile banking is a service provided by a bank or other financial institution that

allows its customers to conduct financial transactions remotely using a mobile
device such as a smart phone or tablet .it uses software, usually called app,
provided by the financial institution for the purpose. It is available on a 24 hour
basis.

 SMS banking

6
It is a form of mobile banking. It is a facility used by some banks or other financial
institutions to send messages (also called notifications or alerts) to Customers
mobile phones using SMS messaging, or a service provided by them which
enables customers to perform some financial transactions using SMS.

 Telephone banking

Telephone banking is one of the most popular banking .it is a service provided by a
bank or other financial institution, that enables customers to perform a range of
financial transactions over the telephone, without the need to visit a bank branch or
ATM . it cannot be used for cash documents (such as Cheques ) for which
customers must visit an ATM or bank branch.

1.6 STATEMENT OF PROBLEM

With the changing environment, banks implemented various E-Banking facilities to

the consumer’s one after the other. It includes internet banking, mobile banking,
SMS banking and telebanking etc. According to consumer’s interest and
convenience they can use the – Banking transactions through online 24hrs services
without hassle. Due to rapid change in technology and the delivery channels have
been introduced. Despite these possibilities, there are various psychological and
behavioural issues such as reluctance to change trust in one’s bank, security
concerns, preference of human interference and like impede the growth of E-
Banking. In this regard a study has been undertaken on the topic consumer
perception towards E-Banking services.

7
 1.7 SIGNIFICANCE OF THE STUDY

In the light of digital India and the central government’s initiative on cashless
transaction economy, it is relevant to study the consumer’s perception towards E-
Banking services. It is important to be aware of the facilities and its usage and what
are their concerns for not using E-Banking. This is an attempt to know the consumer
perception towards E-Banking services.

1.8 SCOPE OF THE STUDY

Today the customer demands the bank’s services for 24 hours. Now in the modern
age entire banking structure has been changed due to widespread internet
technology. Now all businesses like commerce, trade, import, export, purchase and
sale of goods is relying upon electronic banking by using advanced electronic
technology the banking services are fast and economical.

1.9 OBJECTIVES OF THE STUDY

 To identify the awareness of E-Banking services.

 To know the perception towards E-Banking services.
 To study various services of E-Banking.
 To understand various problems faced by consumers while using E-
Banking services.
 To obtain suggestions for the improvement of E-Banking services.

1.10 LIMITATIONS

 The study is limited to Palavakkam alone.

 Accuracy of data depends upon the information’s provided by the respondent
 Respondents were reluctant to respond.
 Incomplete information from the respondents.

8
 CHAPTER – 2

REVIEW OF LITERATURE

9
2.1 REVIEW OF LITERATURE

A Few studies had been made which were indirectly helpful to this investigation.
Reviews of such studies are presented below:

Meuter et.al (2000) found that Customers perceive the quality of services of Internet
banking based on the performance of online delivery systems – not on the processes
in which the delivered service is developed and produced. Because customers
perceive Internet banking service quality based on relatively standardized outcomes
determined by online systems.

Black et.all (2001) Conducted the study to know; what are the customer's
perceptions about internet banking and what are the drivers that drive consumers.
How consumers have accepted internet banking and how to improve the usage rate
.The study revealed that education, gender, income plays an important role in usage
of internet banking. . The research states that if skills can be upgraded there will be
greater will to use internet banking by consumers.

Janeetal (2004) Stated that Online banking requires perhaps the most consumer
involvement, as it requires the consumer to maintain and regularly interact with
additional technology (a computer and an Internet connection).

Riquelme (2006) Investigated that the majority of customers in the sample are
satisfied or very satisfied with the service and online systems attributes. It appears
that companies that offer a wide product portfolio and relevant website content
accompanied by prompt and courteous response create satisfaction online.

10
Srivastva (2006) Found that (1) perceived risk with online shopping, (2) past
experience with online shopping, (3) perceived benefits of online shopping, (4)
perceived ease of online shopping, and (5) perceived\ uncertainty of online shopping
are the factors that affect the customer perception regarding E-banking.

Kesseven (2007) Said that the mostly used E-Banking services are inter account
transfer, payment to other personal account, transfer to credit card account,
recharge mobile phones among others. Comparing demographic variables of the
internet banking users to the non-internet banking users, the analysis reveals that
there is no significant difference between the two group of users with respect to age
group and the education level of the respondents.

Sayar et. All (2007) Discussed that the developments in information technology and
the subsequent evolution of internet banking have fundamentally changed the ways
in which banks implement their business and consumers conduct their everyday
banking activities. The results confirm the influence of internet trust on risk
perception and consumer attitudes towards internet banking. Propensity to trust is a
determinant not only for interpersonal relationships but also for trust in technological
systems. This is not a representative study.

Srinivasan (2007) Investigated that in specified region of Karnataka, channel

convenience, channel control and channel security plays an important role in the
selection of channels. Some regions still see people who are struck to branch
banking and are not ready for a change in mindset. Across Telebanking was not
popular since it was not perceived as a safe and convenient channel.

Uppal R.K (2007) The study concludes that the customers of e banks are satisfied
with the different e-channels and their services in the spread of e banking services

Vardhman (2007) Said Online Banking - The Need of the Modern Professional-
Internet Banking has been so popular in the countries it has been implemented in so
far due to certain reasons. Online Banking makes the regular transactions for a client

11
Safeena (2010) Determined the consumer attitude on internet banking adoption.
Finding shows that perceived usefulness, perceived ease of use, consumer
awareness and perceived risk are the important determinants of online banking
adoption and have strong and positive effect o n customers to accept the online
banking system.

Rao, K. Rama Mohana and Lakew, Tekeste Berhanu (2011) Examines the service
quality perceptions of customers of public sector and private sector banks in the city
of Visakhapatnam, India. The author reveals that the Reliability and Assurance
dimensions of service quality scored the highest ratings while the Tangibles
dimension got the lowest score. Moreover, the study found a strong dissimilarity in
service quality perceptions between customers of private sector and public sector
banks.

Uppal, R.K (2011) Threw light on growth of information technology in various banks.
The objective of this research is to analyze the extent of technological developments
in various bank groups. Findings shows as compared to ne w private sector banks
and foreign banks, in public sector banks very less IT has taken place. The
maximum technology is taking place in new generation private sector banks and
foreign.

Dharma lingam, S. Anand Kannan. V. (2012) Evaluated the service quality in retail
banking in the Tamil Nadu, based on different levels of customers’ perception
regarding service quality. Data are collected from Three Private Banks, i.e. ICICI,
AXIS and HDFC Bank. The result indicates that customers’ perception is highest in
the tangibles area and lowest in the Product Variety area.

Bahl, Sarita, (2013) Determined that security and privacy issues are the big issue in
e-banking. If security and privacy issues resolved, the future of electronic banking
can be very prosperous.

Dr. Shamsher Singh (2014) Researched on customer perception of e-banking. This

paper has examined the adoption and impact of e-banking among the customers of
different banks. The banks in India are racing to use this latest technology to reduce
speedy and time efficient with little or no paperwork involved. There is no need for
standing in long ques any more for making a deposit or getting a withdrawal. Banking
has turned into a 24/7 service with the bank always available to their client
12
their operational costs and increase customer base. E-banking is a term used for
performing balance checks, account transactions, payments etc.

R. Elavarasi, Dr. S. T. Surulivel (2014) Examined that mean age of e-banking users
were mostly men as compared to women. The major finding is that there is an
increasing change in technology world and it leads to improve e- banking services in
various banks.

Sunil Kumar (2015) Has done a study on consumer awareness and usage of e -
banking services. The result of this research was fo und to be that, the consumers
are not frequently using these services but they have strong desire to use these
services in future. The present study is being undertaken to analyze how the banks
have been exploring the feasibility of using mobile phones as an alternative channel
of delivery of banking services.

13
 CHAPTER 3

RESEARCH METHADOLOGY

14
 1.7 RESEARCH METHADOLOGY

Research design

The present study is designed as an Exploratory Research is the research

conducted to know the nature of problem and does not intend to provide a
conclusion but a better idea.

Source of data

Under this study both primary and secondary data are used. The primary data is
collected by filling the questionnaire from the consumers of Palavakkam.

Sampling

A. Sample size: 100 samples

B. Sample area: Palavakkam

C. Sampling method: Random sampling method

Tools used

A. Data collection tools:

i. Primary data: Questionnaire

ii. Secondary data: Books, journals, websites.

B. Data analysis tools:

For the purpose of analysis the information obtained through primary

data the tools used are percentages, weighted average, chi-square
test.
15
 C. Data presentation tools:

The tools used for presentation are tables, graphs, charts, and diagrams.

C. Data analysis tools:

For the purpose of analysis the information obtained through primary

data the tools used are percentages, weighted average, chi-square
test.

D. Data presentation tools:

The tools used for presentation are tables, graphs, charts, and diagrams.

1.6 HYPOTHESIS

H0: The educational qualification and level of awareness about E-Banking services
are independent.

H1: The educational qualification and level of awareness about E-Banking services
are dependent.

16
 CHAPTER 4

ANALYSIS AND INTERPRETATION

17
 GENDER WISE CLASSIFICATION

Table no: 4.01

Number of
Gender respondents Percentage

Male 52 52

Female 48 48

Total 100 100

Source: Primary data

Chart no: 4.01

Female
48%
Male
52%

INTERPRETATION

Male respondents are more than female respondents; they constitute 52 per cent
and only 48 per cent from female respondents.

18
 EDUCATIONAL QUALIFICATION OF RESPONDENTS

Table no: 4.02

Education qualification Number of respondents percentage

Up to SSLC 22 22

HSC 27 27

UG 20 20

PG 17 17

Others 14 14

Total 100 100

Source: primary data

Chart no: 4.02

3
0

2
5

2
0 percentage

1
5

1
0 Up to SSLC UG PG Others
HSC
5

INTERPRETATION

27 per cent are studied up to HSE and 17 per cent are post graduates.20 % is
graduates. It is clear that majority of respondents aware of E-Banking services
because they are educated.

19
 OCCUPATION OF REPONDENTS

Table no: 4.03

Occupation Number of respondents Percentage

Gov. employee 18 18

Private employee 46 46

Self employed 15 15

Others 21 21

Total 100 100

Source: primary data

Chart no: 4.03

50
45
40
35
30
25 Percentage
20
15
10
5
0 Gov. employee Private Self employed Others
employee

INTERPRETATION

It is clear from the table that 46 % of the respondents are private employees. Only 18
per cent of respondents are fall in the category of Govt. employee. It is clear that the
maximum Number of persons can adopt E-Banking services because of their busy
daily life.

20
 ANNUAL INCOME OF RESPONDENTS

Table no: 4.04

Annual income No. of respondents Percentage

Below 1 lakh 52 52

1 lakh – 3 lakh 40 40

3- 5 lakh 8 8

Total 100 100

Source: primary data

Chart no: 4.04

60

50

40

30 Percentag
e

20

10

0 Below 1 lakh1 lakh

–3 3- 5 lakh
lakh

INTERPRETATION

52 per cent of respondents are having the annual income of below 1 lakh. Only 8 per
cent respondents are earning above 3 lakh. At the same time 40 per cent
respondents are earning 1-3 lakh.

21
 BANK ACCOUNT OF CONSUMERS

Table no: 4.05

Category No. of respondents Percentage

SBI 49 49

Federal 20 20

HDFC 16 16

Others 15 15

Total 100 100

Source: primary data

Chart no: 4.05

6
0

5
0

4 Percentage
0

3
0

2
0 SBI Federal HDFC Others

1
0

INTERPRETATION

Among the total respondents,49 % of respondents are the customers of SBI,20 %

respondents are Federal bank,16 % of respondents are the customers of HDFC,15
% of them are customers of others banks.

22
 TYPE OF BANK ACCOUNT

Table no. 4.06

Type of bank account No. of respondents percentage

Savings a/c 80 80

Current a/c 4 4

Recurring deposit a/c 6 6

Fixed deposit a/c 10 10

Total 100 100

Source: primary data

Chart no: 4.06

Fixed deposit a/c

Recurring deposit a/c

percentage
Current a/c

Savings a/c

0 20 40 60 80 100

INTERPRETATION

From the above table that is clear that most (80 per cent) customers have savings
account in the bank. Savings accounts are mainly opened for increasing saving
habits of the people.10 per cent have fixed deposits. Only 4 per cent have current
account. Current accounts are mainly opened by the business man.

23
 DURATION OF USING BANKING SERVICES

Table no: 4.07

Period No. of respondents percentage

< 1 year 13 13

1-2 year 23 23

2-3 year 17 17

>3 year 47 47

Total 100 100

Source: primary data

Chart no: 4.07

< 1 year
13%
>3
year 1-2
year
47%
23%

2-3 year
17%

INTERPRETATION

The analysis reveals that 47 per cent of respondents are using banking services for
more than 3 years. Only 13 per cent of them are using banking services for less than
1 year.

24
 AWARNESS ABOUT E-BANKING SERVICES

Table no: 4.08

Response No. of respondents percentage

Yes 74 74

No 26 26

Total 100 100

Source: primary data

Chart no: 4.08

No
26%

Yes
74%

INTERPRETATION

Most of the customers are aware about E-Banking services. At the same time 26 per
cent of customers are not aware of E-Banking services. They are aware about ATM
only. Mainly educated respondents are aware about E-Banking services provided by
the bank.

25
 SOURCE OF KNOWING E-BANKING SERVICES (RANKING)

Table no: 4.09

source Rank 1 Rank 2 Rank3 Rank 4 Rank 5

Bank officials 32 20 8 32 8

Advertisement 20 8 32 20 20

Family 8 44 8 20 20

Friends 20 20 32 20 8

Others 20 8 20 8 44

Source Ran Ran Rank Rank Rank Mean square Rank

k1 k2 3 4 5
Bank officials 160 80 24 64 8 2.52 5

Advertisement 100 32 96 40 20 2.88 3

Family 40 176 24 40 20 3 2

Friends 100 80 96 40 8 3.24 1

Others 100 32 60 16 44 2.36 4

Chart no: 4.09

6
5
4
3
2
Rank
1
0

INTERPRETATION

Most customers came to know E–Banking services from friends and secondly from
families. 3rd rank goes to advertisement .Last rank goes to others. They came to
know E-Banking services also from other services include co-workers.

26
 LEVEL OF AWARENESS ABOUT VARIOUS E-BANKING SERVICES

Table no: 4.10

Percentag
SERVICES HW A N LA HNA e

Online bill 210 88 57 22 6 77

payment
Fund 180 112 24 22 17 71
transfer
Ticket 145 132 42 24 12 71
booking
Shopping 210 108 33 24 8 77

Lending 100 76 42 40 27 57

Recharging 320 80 9 22 2 87

Source: primary data

Chart no: 4.10

100
90
80
70
60
50
40
30 Percentage
20
10
0

INTERPRETATION

Most of the customers (87per cent) are highly aware about recharging service.77 per
cent of customers are aware about online bill payment.71 per cent of respondents
are aware about fund transfer and ticket booking. Only 57 per cent of customers are
aware about lending services provided by the bank.

27
 MOST FAMILIAR FUND TRANSFERS

Table no: 4.11

Category No. of respondents Percentage

EFT 50 50

RTGS 22 22

UPI 9 9

NEFT 19 19

Total 100 100

Source: primary data

Chart no: 4.11

NEFT
19%

UPI EFT
9% 50%

RTGS
22%

INTERPRETATION

Among the total respondents, 50 % of respondents are more familiar with EFT
(Electronic fund transfer), 22 % of respondents are familiar with RTGS (Real time
gross settlement), 19% of respondents are familiar with NEFT (National electronic
fund transfer), and remaining are familiar with UPI (United payment scheme).

28
 USAGE OF BANKING SERVICES

Table no: 4.12

Us
e No. of respondents percentage

Regularly 14 14

Often 39 39

Occasionally 25 25

Sometimes 14 14

Rarely 8 8

Tota
l 100 100

Source: primary data

Chart no: 4.12

40

35

30

25

20

percentag
e
15

10

INTERPRETATION

29
It is clear from the table that 39 per cent of respondents are using E-Banking
often.14 per cent respondents are using regularly.8 per cent of respondents are
rarely using E-Banking service. This is because of their unawareness about using E-
Banking services.

30
 E-BANKING SERVICES PERSONALLY ADOPTED

Table no: 4.13

E-Banking services No. of respondents that are personally

adopted
ATM/debit cards 100

Mobile banking 22

Internet banking 26

Cash deposit machine 56

Credit card 24

Tele banking 9

Any other 46

Source: primary data

Chart no: 4.13

100
90
80
70
60
50
40 No. of respondents
30 that are personally
20 adopted
10
0

INTERPRETATION

From the above table it is clear that all respondents have ATM card. Only are using
mobile banking facility. Credit card facility is using by only 24 persons. Cash deposit
machine is using by 56 persons. 46 persons are using other E-Banking services like
SBI buddy, self-service kiosk etc.

31
 INFLUENCING FACTORS TO PREFER BANKING SERVICES

Table no: 4.14

Factors SA A N DA SDA percentage

Easy 280 156 15 0 0 90

Accessibility

Time saving & 250 124 33 12 2 64.2

money saving
Innovative and 60 72 160 16 6 64.4
efficient services
Ensure security 190 224 15 2 0 82.2

Relevance after 75 72 156 26 2 66.2

demonetization
Source: primary
data

Chart no: 4.14

90
80
70
60
50
40
30
20
percenta
10 ge
0

INTERPRETATION

As per the opinion of the respondents, highest influencing factor is easy accessible
(90%), next most influencing factor is ensure security (86%), and third influencing
factors are both time saving, money saving and efficient services(64 %), and the
least influencing factor is demonetization

32
 LIMITING FACTORS FACED BY CUSTOMERS WHILE
OPERATING TRANSACTION (RANKING)

Table no: 4.15

Factors Rank1 Rank2 Rank3 Rank

4
Fear about security 56 32 11 1

Lack of through knowledge 35 25 22 18

Networking problem 44 29 18 9

Pseudo massages received 36 45 12 7

Factors Rank1 Rank2 Rank3 Rank4 Mean Rank

square
Fear about security 224 96 22 1 3.43 1

Lack of through knowledge 140 75 44 18 2.77 4

Networking problem 176 87 36 9 3.28 2

Pseudo massages received 144 135 24 7 3.1 3

Chart no: 4.15

4.5
4
3.5
3
2.5
2 Rank
1.5
1
0.5
0 Fear Networkin
about Lack of g Pseudo
massag
security through problem es
knowledg receive
e d

INTERPRETATION

As per the opinion of respondents, highest limiting factor is fear about security,
second limiting factor is networking problem, third limiting factor is pseudo massages
received, and the lowest limiting factor is lack of through knowledge.

33
 OPINION ABOUT VARIOUS FACTORS REGARDING E-BANKING
SERVICES

TABLE NO: 4.16

Factors Very low Low Average High Very Percentage

high
Overall trust 0 4 147 160 45 71.2

Trust in 2 40 174 64 20 60
technology

Security 0 22 177 80 40 64.2

form

Fraud 0 8 129 184 35 72.4

24 hour 0 18 54 112 225 81.8

service

Source:
primary data

Chart no: 4.16

90

80

70

60

50

40

30 Percenta
ge

20

10

34
 INTERPRETATION

As per the opinion of respondents, 24 hour service is the factor that leads the
respondents to use E-Banking services (82%), other factor is fraud, then third factor
is overall trust, and the last factor leading to is overall trust in technology.

35
 CHI – SQUARE TEST

HO:The educational qualification and level of awareness about E-

Banking services are independent.

Table no: 4.17

Not aware Not aware Total

SSLC 2 14 16

HSC 11 10 21

UG 22 2 24

PG 21 0 21

OTHERS 18 0 18

Total 74 26 100

Source: primary
data

O E (O-E)2/E
2 11.84 8.177
11 15.54 1.326
22 17.76 1.012
21 15.54 1.918
18 13.32 1.644
14 4.16 23.27
10 5.46 3.775
2 6.24 2.881
0 5.46 5.46
0 4.68 4.68

Calculated value, x2 = ∑ (O-E) 2/E

=54.143

Degree of freedom = (c-1) (r-1) = 4

Table value at 5 per cent level of significance for 4 degree of freedom is 9.49.The
calculated value is more than the table value. Therefore the null hypothesis
rejected. Therefore the educational qualification and level of awareness about E-
Banking Services are independent.

36
 CHAPTER 5

FINDINGS, SUGGESTIONS AND

CONCLUSIONS

37
 5.1 FINDINGS

It is found that majority of the respondents are aware about E-Banking services
provided by the BANK. But only some of the respondents are using these services.
Major findings are;

 ATM is the most preferred E-Banking service to the respondents.

 80% of the respondents are using savings bank deposit of the bank.

o 47% of the people are started to using E-Banking services from more
than 3 year. This is because most of the people are using at least ATM
facility provided by the bank.

 Majority of the respondents are aware the E-Banking services from their
friends and relatives.

 87% of respondents are aware about recharging service provided by the

bank.50 % of the respondents is more familiar with EFT.

 39% of respondents using E-Banking service in often.

 Only some respondents are using internet banking and mobile banking
facility. Most of them aware about mobile banking and internet banking even
though they are not using such facilities.

 90% of the respondents have the opinion the most influencing factor is that it
is easily accessible.

 The limiting factors faced by consumers while operating E-Banking services

are fear about security and networking problem.

 The opinion about E-Banking services by the respondents is 24 hours service,

and trust in technology.
38
 The educational qualification and level of awareness of E-Banking services
are dependent. Because they can know more about E-Banking services.

5.2 SUGGESTIONS

Suggestions from the study

 Bank should give awareness to their customers to use more of E-Banking

services.

 Motivate the customers to use E-Banking services.

 Make the site more users friendly.

 Create a trust in the minds of consumers towards the security issues.

 Avoid networking problem with proper technologies as it creates delay in

transactions.

 E-Banking system should be enhanced to make the online enquiry and online
payment much easier to consumers.

 Promote the use of fund transfers as many of them are aware of it.

5.2 SUGGESTIONS

Suggestions from the study

 Bank should give awareness to their customers to use more of E-Banking

services.

 Motivate the customers to use E-Banking services.

 Make the site more users friendly.

39
 Create a trust in the minds of consumers towards the security issues.

 Avoid networking problem with proper technologies as it creates delay in

transactions.

 E-Banking system should be enhanced to make the online enquiry and online
payment much easier to consumers.

 Promote the use of fund transfers as many of them are aware of it.

Suggestions from the respondents

 Reduce the charges levied for the use of E-Banking services.

 Bring innovative developments into E-Banking so that it creates an interest to

use E-Banking services.

 Provide more offers and discounts for all products by the use of cards.

 More advertisement should be made in print Medias, television channels

etc.to aware general public.

 The bank should take necessary steps of create awareness among rural
people about the advantages of E-Banking.

 Give opinion to change the address provided in E-Banking.

40
 CONCLUSION

E-Banking has become a necessary survival weapon. Today, the click of the mouse
offers customers banking services at a much lower cost and also empowers them
with unprecedented freedom in choosing vendors for their financial service needs.
Banks have to upgrade and constantly think of new innovative customized packages
and services to remain competitive. Banks have come to realize that survival in the
new E-Economy depends on delivering some or all of their banking services on the
internet while continuing to support to support their banking traditional i nfrastructure.
The rise of E-Banking is redefining business relationships and the most successful
banks will be those that can truly strengthen their relationship with their customers.
Without any doubt, the international scope of E-Banking provides new growth
perspectives and internet business is a catalyst for new business processes.

Most of the customers are aware about E-Banking services but they hesitate to use it
and some customers are unaware about all E-Banking services provided by the
bank. So the bank should take some measures for removing such hesitation of
customers and for increasing awareness among public about the E-Banking
products and services.

41
 BIBLIOGHRAPHY

BOOKS
 SOHANI AK and RAO NAGESWARA KATURI ,innovations in banking
,HYDERBAD :THE ICFAI UNIVERSITY PRESS 2008

 KOTHARI CR :Research Methodology: methods and techniques, 2 nd

Edition New Age International Publishers, New Delhi(2009)

 TULSIAN P, VISHAL PANDEY C; quantitative techniques, Pearson

education new Delhi, (2004)

 Crane, D.B. and Z. Bodie, "From Follows Function: The Transformation of

Banking, " Harvard Business Review, Vol. 74, No. 2: 109-117, 1996

 Holland, C.P. and J.B. Westwood, "Product-Market and Technology

Strategies in Banking," Communications of the ACM, Vol. 44, No. 5: 53-57,
2001.

 Southard, P.B. and K. Siau, "A Survey of Online EBanking Retail Initiatives,"
Communications of the ACM, Vol. 47, No. 10: 99-102, 2004.

 Prof. Assankutty, Jojo Mon.NA. (2007). “Financial service”, Calicut University,

Calicut: Kerala

 Pooja Malhothra, Bawinder Singh. (2009). “The Impact of Internet Bank

performance and risk: the Indian Experience”, Eurasian Journal of Business
and Economics 2009, 2(4). 43-63

 Annual reports of Reserve Bank of India, www.rbi.org.in

 Stijn Claessens, Thomas Glaessner, and Daniela Klingebiel, E-Finance in

Emerging Markets: Is Leapfrogging Possible? Financial Sector Discussion
Paper

 Reserve Bank of India (November, 2013), ATMs and Plastic money report.

42
  Mohammed, S. and Shariq, S. (2011), “A study of ATM usage in banks in
Lucknow “, International Journal of Engineering and Management
Studies.Vol.2, No. l, pp.47-53.

 Aladwani, M. Adel (2001), Online Banking: a field study of drivers,

development challenges, and expectations, International Journal of
Information Management, pp. 213- 225.

 Aggarwal, Reena. 2000. Stabilization Activities by Underwriters after Initial

Public Offerings. Journal of Finance 55(3): 1075-1103.

 Ahasanul, Haque; Ahmad Zaki Hj Ismail and Abu Hayat Daraz (2009). Issues
of E – Banking transaction: An Empirical Investigation on Malaysian
Customers perception. Journal of Applied Sciences, 9(10), 1870 – 1879.

WEBSITES
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https://www.slideshare.com

https://www.wikipedia.com

43
APPENDIX

44
 QUESTIONNAIRE

1. Name
2. Age

Femal
3. Gender Male e
4. Educational qualification
Up to
SSLC HSE

UG G

OTHERS

5. Occupation
Private
Govt. employee employee

Self-employed others

6. Annual income

Below 1 lakh 1-3 lakh

3-5 lakh

7. In which bank you have account?

SBI Federal bank

45
 Others
HDFC

8. Type of your bank account?

Saving a/c

Recurring deposit a/c Current a/c

9. How long have you using banking services?

Fixed deposit a/c

Less than 1 year

1-2 2-3 year
year
More than 3 year

46
10. Do you have any awareness among e-banking services?

Yes No

11. If yes, how did you come to know about e-banking services?

From bank officials from advertisement

From family
members from friends

Others

12. Rate your level of awareness about various e-banking services?

Awar Les
E-banking services Highly e Neutral s Not aware
aware aware
Online bill payment

Fund transfer

Ticket booking

Shopping

Lending

Recharging

47
 13. Among these which fund transfer are more familiar to
you?
EFT (Electronic Fund RTGS (Real Time
Transfer) Gross

Settlement)

UPI (Unified Payment Scheme transfer NEFT (National Electronic Fund

Transfer)

14. How often do you use e-banking services?

Ofte Occasional
Regularly n ly

Sometimes Rarely

15. The E-banking services that you have personally

adopted

Internet banking Mobile banking ATM

Cash deposit Telebankin

machine Self-service kiosk g

any other (please

Credit card specify)

48
16. Which are influencing factors encourages you to prefer E-banking services?

Influencing factors Strongly Agree Neutral Disagree Strongly

agree disagree
Easy Accessibility
Time saving & money saving
Innovative and efficient service
Ensure security
Relevance after demonetization

17. Rank the following Limiting factors faced by customer while operating
transactions? (Rank from 4(high) to 1(low).

Limiting factor Rank

Fear about
Security

Lack of through knowledge

Networking problem

Pseudo massages received

18. Rate your opinion about various factors regarding E-banking services?

Factors Very low Low Average High Very

high
Overall trust
Trust in technology
49
 Ease of use
Security form
Fraud
24 hour service

19. Your suggestion for improvement of E-banking services

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THANK YOU FOR SPENDING YOUR VALUABLE TIME FOR US

50