I completed a Seminar project. My research is based on Seconday data. I did a thoroughly research on the awareness of E-banking services amongst indian customers. The objectives of my research are: 1) To study about the role, need, types, frauds, impact of Internet banking on banks, customers and society, various frauds and ways to overcome them in internet banking, services offered by internet banking and its benefit to the customers and banks. 2) To study about the future perspective and awareness of internet banking among Indian customers and ways to increase awareness among the customers.

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A
SEMINAR REPORT
ON
AWARENESS ABOUT E-BANKING AMONG INDIAN CONSUMER
FOR THE PARTIAL FULFILLMENT OF THE REQUIREMENT
FOR THE AWARD OF
BACHELOR OF COMMERCE HONOURS
BANKING & INSURANCE
UNDER THE SUPERVISION OF
ANKITA SHUKHLA
Assistant Professor, IBM, Mangalayatan University
SUBMITTED BY
ANURAG SINGH
BCOM (2016)
Enrollment No.20160618
INSTITUTE OF BUSINESS MANGEMENT, MANGALAYATAN
UNIVERSITY, ALIGARH-MATHURA HIGHWAY BESWAN ALIGARH

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REPORT STRUCTURE
CHAPTER TOPIC PAGE
NO.
1 INTRODUCTION
1.1INRODUCTION OF TOPIC
3
2 REVIEW OF LITERATURE 4
3 RESEARCH METHDOLOGY
OBJECTIVE OF THE STUDY
5-1
5-2
4 CONCLUSION 17
5 BIBLOGRAPHY
WEBLOGRAPHY
18

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Introduction
E- banking essentially refers to when a customer makes banking transactions via internet (24*7).
Making electronic payments, paying bills and transferring money via mobile using internet gives
is what e banking essentially is. It has made the life of customer easier as the transactions can
easily be done at a move. But, when it comes to the usage and awareness of E banking among
Indian customers then it can be said that that Indian customers still have faith on the traditional
banking system and they think that transferring money via internet can be risky. Therefore, this
report deals with the aspect of e- banking, its impact, usage, benefits, awareness among Indian
customers and ways that it can be effectively implemented in the minds of people.
The report deals with the benefits of E banking to the bankers and customers, various facilities
provided to the customers using E Banking. Its advantages and disadvantages in the modern
banking scenario. No doubt that E Banking is a useful tool in a fast pacing market scenario, it
saves a lot of time of the customers as transactions can be done on a move as well as it reduces
the burden of bankers. But, even after its advantages customers still have faith on traditional
banking and they find e banking risky. The main purpose of this report is to study about the
awareness among Indian customers about e banking and fill up the space between the customer
and his/her indifferent approach towards e- banking.
The main purpose of this report is to study about the e banking, its structure, importance, impact
on banks and customers, awareness among people regarding e banking. The limitations people
have in their mind which prohibits them to use e banking and how to overcome those barriers
and induce among people the benefit of this newly developed banking method which is to bring
about a drastic change in the working of banks if implemented properly and used effectively by
people

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Literature Review
Ashima Tandon, Manisha Goel & Sunita Bishnoi [1] mentioned in their research that the level
of consumer awareness is greater in private and foreign sector banks when compared to public
sector banks. The services like ‘Ask for cheque book’, ‘transfer funds to third party’, ‘pay credit
card dues’ is used by customers of private, foreign banks rather than public sector banks.
Therefore, public sector banks need to take care their customers have awareness regarding
e-banking services, as it makes the life of the customer easier.
Amutha D*[2] According to the researcher banks customers are aware about all the facilities
provided by the banks to its customers. Still banks need to take steps to educate their customers
regarding newly developed technologies and other banking services. Steps taken by banks for
increasing awareness will also help in retaining the existing customers and attracting new
customers. It will also help in improving banking services and development of banks.
Harihara Sudhan R & Pavithra V [3] According to the researchers the bank customers who
have access to internet and know how to use it they avail internet banking facilities. People still
have faith on traditional banking methods and that can be avoided by proper security in internet
banking transactions, awareness programs and implementing less charges on the use of internet
banking. The reason of less awareness among customers is also that banks use various electronic
channels and customers don’t have awareness about services. Researchers also infer that the
behavior of Indians depend on the behavior of surrounding people. If few will use internet
banking then it will also induce other customers to use internet banking.
L. Kathi [4] According to the researcher technology has indulged its hands in banking. Internet
banking has introduced new products which offer greater efficiency in working and productivity
both nationally and globally. The researcher has emphasized that the banks need to deliver few
banking services as internet banking services, banks need to re-define business relationships and
the strongest banks will be those which will offer better facilities to its customers. The researcher
brings about the benefit of cost effectiveness of e banking whereas its drawbacks like cross
border risk, etc... The researcher mentions that Internet Banking in India is satisfactory.

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The purpose of this report is to bring about the structure, role, drawback, limitation, services and
awareness about e banking among Indian Customers and its impact on working of banks.
Research Methodology
The research methodology adopted in this report is based on secondary data. The information
gathered is based on the data from various journals, newspaper and magazines.
The nature of the report is descriptive. As the researcher has focused on bringing together the
role, impact, challenges, limitations, services, awareness and ways to increase awareness about
internet banking among the Indian customers and making people aware about its different
services and benefits.
Objectives
❖ To study about the role, need, types, frauds, impact of Internet banking on banks,
customers and society, various frauds and ways to overcome them in internet
banking, services offered by internet banking and its benefit to the customers and
banks.
❖ To study about the future perspective and awareness of internet banking among
Indian customers and ways to increase awareness among the customers.
E- Banking
Electronic Banking essentially means no involvement of physical exchange of money, as all the
transactions are done electronically, from one account to another. The basic equipment used for
electronic banking is the ‘Internet’. Therefore, it is also referred to as ‘Internet Banking’. Internet
Banking is nothing different from traditional banking but has only one exception and that is- The
customer does not need to visit the bank for making transactions or performing any other
banking related activity. As, a customer can easily avail all those facilities sitting back at home
or even at a move, have complete access to bank account anytime and at any part of the world.
Customer does not need to depend on the bank to open and avail facilities.

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E- Banking is a technological blessing for all the busy people, they can be executives,
businessmen, students, etc… Now people don’t need to take out time and go to banks for getting
a demand draft done or issuing a cheque book. As these minor works could easily be done using
internet banking. Internet banking is a new advancement which has made life easy.
Banks offer Internet Banking primarily in two ways-
an existing bank establishes a website and
through website banks offer internet banking to
its customers.
Banks establish a ‘virtual’ or ‘internet bank’.
The computer server which manages the
internet bank is housed in an office that serves
as a legal address of that particular bank.
Services of E Banking
Internet Banking has many facilities and services to offer to its customers. Among which
common ones are mentioned as below-
1) A bank customer can perform non- transactional tasks through online banking-
(i) Viewing account balances.
(ii) Viewing recent transactions.
(iii) Downloading bank statements
(iv) Viewing images of paid cheques.
(v) Ordering cheque books.
(vi) Download periodic account statements.
(vii) Downloading applications for M- Banking, E- Banking etc.…
2) Bank customers can transact banking tasks through online banking- Funds transfers between
customer’s linked accounts.
3) Paying third parties, including bill payments and third-party fund transfer.
4) Investment purchase or sale.
5) Loan applications and transactions, such as repayments of enrollments.
6) Credit card applications.

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7) Register utility billers and make bill payments
8) Management of multiple users having varying level of authority.
9) Transaction approval process.
Apart from these there are other internet banking services provided by the banks to its customers
for their convenience.
Some of them are as follows-
(i) Personal financial management support, like importing data into personal account of the
customer.
(ii) Online banking platforms support account aggregation to allow the customers to monitor
all of their accounts in one place whether they are with their main bank or with other
institutions.
Merits and Demerits of E- Banking
Merits Demerits
1) Fast Transactions
➢ Online systems are quick
➢ One can avoid the long quene of
banks.
➢ Paying bills & Transfer of cash
is easy.
1) Security
➢ Bank accounts are mostly
protected, security may or may
not be completely reliable.
➢ Online systems are vulnerable
to frauds despite excellent
security.
➢ If account is not protected, it is
likely to be stolen.
2) Easy Access
➢ Customer can easily access and
monitor accounts.
2)Online features and Transactions
➢ Most transactions are easy to
handle, few require meetings,

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➢ Customer can manage cash
flow, other transaction and stay
updated about latest techniques
just with a click.
➢ Rates offered are convenient,
there are virtually no overhead
costs therefore customers are
offered low rates of interest on
loans and higher rates of interest
on savings accounts.
instead of an online portal. This
is not available with online
banking.
➢ not all features may be available
with all banks – the interest
rates and offers may differ.
➢ Though most transactions are
quick, few banks have outdated
software leading to slow
transfer.
3) Security
➢ Online accounts are protected
with encryption software.
➢ When transactions involve a
handsome amount of money
then designers of banking
software make sure that
compete security is provided.
➢ Password are protected by
virtual keyboard and digital
signature are involved, periodic
notification is added.
3)Location
➢ When customer needs a quick access to
the account, then it is problematic as
one needs a physical structure to
resolve queries.
➢ all the online services have the FAQ
section, long brochures to explain
everything; the absence of actually
having to go to a building and conduct
a transaction is missed.
➢ With banks that have no physical
location, customer misses out benefit of
going and checking out account and
depends only on the online portal.

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➢ A customer must ensure that a
bank’s website has a valid
security certificate (to be
insured by the FDIC.)
4) Time and Location Constrain
➢ E banks are available 24X7, 365 days
in a year.
➢ Online banking is available on mobile
applications, tablets.
4)Customer Service
➢ Online systems do not have a direct
communication media, rather have
customized web pages that solve client
queries.
➢ Lack of personal touch.
Role of E- Banking
Role of E- Banking to the society- E banking is influencing life of modern people in following
ways-
(I) Easy to set up- It is easy to set up, can even be used in smart phone, online accounts.
easy access to account and easy transfers.
(II) Secure- Safe bank transactions, track of financial transaction and balance information,
replacing passwords with thumb impressions, helps in detecting fraudulent
transactions.
(III) Convenience- easy payment of electric, telephone bills and transfer funds.
(IV) Services- services include financial planning, investment options, loan calculators.
These services are available 24/7 and can avail these services at anytime, anywhere
and even when the banks are closed.
(V) Cost-Effective- Bankers have benefitted from internet banking. Administrative and
paper related works which occupies not only office spaces but as well creates job
opportunities have been curtailed. Easy promotion of services, profits gained by
banks are increasing.

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(VI) Fast and Efficient-Through internet banking, Easy fund transfer both national and
international. Customers can carry out stock trading, other investments and also
manage several accounts easily.
Role of E- Banking to the banks-
Internet banking has led to customer retention and customer creation as there is
increased customer satisfaction. There is lower operational and transactional cost,
there are easier cross border transactions with less paperwork. It has led to improved
services, customer satisfaction for sophisticated customers and time saving.
Need and Impact of Electronic Banking
Need of E Banking Impact of E Banking
1) Easy management of cash flows as it is
easy to control payable and receivable.
2) Simplify government remittance as
Filing tax returns, remitting tax
payments are time consuming but with
Internet Banking one can complete the
forms online, schedule the payments to
be made on due date and avoid costly
late payment charges.
3) Access all your accounts at any time,
There are changes in technology and with
changes in technological advancement there is
need for modernization in banking functions.
E banking is cost effective and work can be
done just with a click of a mouse. Banking is
the most emerging sector and advancement
need to be there to make the work easier of the
employees and the customers. As advancement
in banking directly influences the economic
growth of the country.

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even outside office hours.
4) Simplify payroll and business to
business payables. As it is easy to pay
employees via internet and send funds
directly to other business and settle
transactions on the spot.
5) Carry out foreign currency transactions.
6) Simplify account reconciliation and
make investments- Internet platform
makes it easier to check company
accounts and banking activity and
submit investment orders.
In a bank there are all types of customers- rich,
poor, businessmen, student and a home maker.
Banking services are availed by everyone and
therefore, e- banking is essential as it gives a
technological touch to the customers.
ATM, online banking, Phone banking, Mobile
banking. They all are example of e banking
which have now become a part of our life.
ATM are significant today as they help in
cashless transactions and an example of the
impact of e banking on life of people.
Types of E- Banking
Various forms of E- Banking are-
1) Internet Banking- It helps to manage banking transactions using personal computer and
android phones.
2) Automated Teller Machines (ATM)- It is an automatic computerized machine that
allows bank’s customer directly use a secure method to access bank accounts, make cash
withdrawals or check bank balances.
3) Tele Banking- By dialing given telebanking number, customer can access his/her bank
account, and by using user friendly menu, customer can do entire banking through
interactive voice responsive method.
4) Smart Card- A smart card contains an embedded 8-bit microprocessor and the
microprocessor is under a contact pad on one side of the card. The microprocessor on the
smart card is for the security. The host computer and card reader actually "talk" to the

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microprocessor. The microprocessor enforces access to the data on the card. The chips in
these cards are capable of many kinds of transactions.
5) Debit Card- These are also known as check cards. They are like credit cards or ATM
(automated teller machine) cards but operate like cash or a personal check. The difference
between a debit and credit card as credit card is a way to "pay later," whereas a debit card
is a way to "pay now."
6) E- Cheque – It is an electronic version of paper cheque.
7) Other forms of Electronic Banking-
• Direct Deposit
• Electronic Bill Payment
• Electronic Check Conversion
• Cash Value Stored
Internet Banking Frauds and Ways to Prevent Internet Banking Frauds
Internet Banking Frauds Ways to Prevent Frauds
1) Securing your account- Avoid online
banking, unsecured WIFI and operate
only from PCs at home, don’t reveal
passwords and should be changed
regularly. Avoid replying queries
online or sharing account details.
2) Phishing- It is a method in which a
person’s personal details are obtained
by fraudsters posing as bankers.
1) Check account activity regularly- It
is the most effective method to keep
finances secure. Regularly log in and
view your account activity to make sure
that there are no unwanted transactions.
2) Keep PIN & Passwords Secret- Keep
your PIN and passwords secret. These
are the keys to money. Guard them

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person's personal details are obtained
by fraudsters posing as bankers. They
ask customers to provide all personal
information about themselves and their
account to the bank on the pretext of
database upgradation. The number and
password are then used to carry out
transactions on their behalf without
their knowledge.
3) Spam- It is an electronic 'junk mail' or
unwanted messages sent to mail. These
messages are essentially commercial
and persuade to buy a product or
service or visit a website where you can
make purchases; or they may attempt to
trick into divulging your bank account
or credit card details.
4) Nigerian Scam- These are basically lottery
scam in which overseas persons are involved to
cheat innocent persons or organizations by
promising to give a good amount of money at
nominal fee charges. Their intention is to steal
money in the form of fee against the lottery
prize.
5) Spyware- It is a software that is secretly
installed on computer and takes things from it
without the permission or knowledge of the
with vigilance. Do not give them out to
anyone, and never write them down on
paper, in an email or in a text message.
3) Use a strong password for online
banking-Never use common passwords
like birthday date, spouse or kids name
as passwords, which are easy to guess.
4) Change passwords periodically- Get a
new password every few months or so.
5) Do not give out account info over the
phone- Banks never call or request for
passwords as they already have the

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user. Spyware may take personal information,
business information, bandwidth; or processing
capacity and secretly gives it to someone else.
6) Check sites URL- Always check the URL
of bank's web site. Fraudsters can lure to enter
user ID and password at a fake website that
resembles bank. If anything, other is seen than
the bank's genuine URL, it is fake.
7) Fool-proof password - Change your online
banking password at regular intervals. Also,
avoid easy-to-guess passwords, like first
names, birthdays, kid's or spouse's name and
telephone numbers. Try to have an
alpha-numeric password, one that combines
alphabets and numbers.
8) Always check 'last logged'- Most banks
have a 'last logged in' panel on their websites.
If your bank has it, check the panel whenever
you log in. If you notice irregularities (like you
are logging in after two days, but the panel
says you logged in that morning!), report the
matter immediately to your bank and change
your password
9) Public access can be injurious: Don't
information. Never share personal
information.
6) Do not give out account info through
email- Bank will not email its
customers requesting for account
numbers, PINs or passwords. Never
send this information through email.
7) Don’t click links embedded in emails.
It is easy for scammers to rig
convincing emails. If you get an email
from your bank, don’t click on the
links. They could lead you anywhere.
Instead, type in the bank’s web address
in your browser and navigate from
there.
8) Use anti-virus protection software,
firewalls and spyware blockers. - By
acquiring these basic computer
protection tools, one can significantly
reduce vulnerability to cyber-attacks
and fraud attempts.
9) Don’t use public computers for

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leave the PC unattended after keying in
information while transacting on the website.
10) Follow Bank instructions- Banks say that
appropriate upgradations are carried out from
time to time by their IT departments for risk
mitigation. They issue instructions to the
customers to manage their accounts through
virtual keyboards by way of which the
characters typed by them are not identified by
hackers. SMS alerts are also an important tool
since any transaction carried out on account is
reported to the account holder through an
SMS.
11) Protection - Learn the ways to protect
yourself from online banking fraud schemes.
online banking- Be careful while
doing online banking and make sure no
one sees your screen. As; an expert
scam artist can find ways to record
activity.
10) Check for secure connections- When
visiting your bank’s website or
conducting an online transaction, check
your browser to verify a secure
connection. If the web address starts
with “https,” you should have a secure
connection.
11) Report lost cards immediately- Act
fast and prevent fraud before it can
happen.
Future Prospects of E- Banking
With upgradation in technology and changes in the current business and economic market
scenario where banks play a significant role, technological innovations in internet banking are
uplifting the banking structure and effecting its future growth. Already, with advent of internet
banking it has brought in a drastic change in the working and life of people. People now have
started to develop a trust on cashless transactions and it has also made the life of people easier
and the working simpler.

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Future changes and new technologies that will be seen in internet banking are-
1) Blockchain Technology-This technology will fundamentally transform banking and
financial services. It decentralizes financial management from a central authority to a
widespread network of computers. Financial transactions are broken down into encrypted
packets, or “blocks,” which are then added to the “chain” of computer code and encrypted
for enhanced cybersecurity. It has been compared to “email for money”, Because the
technology has the potential to improve numerous facets of banking — and is the basis for
other banking technology trends like Bitcoin — it’s no longer a question of if blockchain
will change the banking industry.
2) Upgraded ATMs- ATMs have completely transformed the banking system since their
evolution in 1967. The next revolution in ATMs will involve contactless payments. Like
Apple Pay or Google Wallet, soon there will be contactless ATM transactions using a
smartphone. These technologies can help overall bank security by protecting against ATM
hacks
3) Automated Financial Services Employees- The rise of financial technology is to result in
the reduction of in-bank personnel. A 2016 report from Citigroup indicated that a
whopping 30 percent of bank jobs might be lost by 2025 due to the automation of retail
banking services. Instead of employees there will be robot advisors that will manage
money according to growing population.
4) Mobile and Digital Banking-The mobile, digital transformation in banking has begun but
still has affected the growth. Banks are investing heavily in digital banking technology, in
which customers use mobile, web or digital platforms to use banking services.
Awareness among Indian Customers about E Banking and ways to increase awareness
Technology has reached to each and every corner of the country. Even the uneducated know how
to run android phones. Therefore, in this scenario when it comes to Internet Banking, people are
aware about it. They are aware that they can get various banking facilities by the help of their
phones and internet. But the problem only is ‘how to use it?’. It is assumed that everyone who

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has android phone and know how to use it avails internet banking. Not if primarily maintaining
accounts but transfer of funds or making online payments, booking hotels, reservations is buses
and trains, their transfer of fund or making these payments online is also a form of internet
banking. Awareness among people is instilled the problem is with the implication. People don’t
know how to use it. In such situations it is the duty of the bank to make their customers aware
about such facilities. On bank websites there should be a different instruction on how to use it.
So that people can learn how to use it. Charges should be less on using internet banking
facilities. There should be more focus on the use of internet banking so that people find it
compulsory to use it and also learn it. As with technological upgradation it is essential that every
individual should have hands in different technical formats.
Conclusion
Through this report it is clear that the banking activities have reached at a level up after internet
banking has come to practice. There are changes in the work culture and working habits of the
bank employees because of the use of internet. Even customers are being benefitted because of
use of internet. Internet no doubt has mad life easier. With the advent of e- banking there is now
emergence of new types of banking like SMS banking, mobile banking, etc… Customers can
make transactions at a move, load of banking employees has reduced. Transactions are more
secure because of privacy settings, passwords and cashlessness. The modern internet banking
will induce more formats and types of e banking, which will benefit the society on a whole. With
every new technology coming up there are limitations associated with it and so is with internet
banking too. There are cases of frauds and mis happenings, but it’s just the customers who need
to act smart and not be carried away by fraudulent emails and messages and disclosing their
account information. Though people are coming up with solutions but overall internet banking is
to infuse technological development and economic growth of the country.

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References
1) Ashima Tandon, Manisha Goel, Sunita Bishnoi, Consumer Awareness towards Internet
Banking: A Comparative Study of Public, Private and Foreign Banks, International
Journal of Hybrid Information Technology, Vol 9, No 6 (2016).
2) Amutha D*, A Study of Consumer Awareness Towards E- Banking, International
Journal of Economics and Management Science
http://dx.doi.org/10.4172/2162-6359.1000350.
3) Harihara Sudha Ramakrishnan, Pavithra V, A Study on Customer Perception and
Awareness in the usage of Internet Banking.
https://www.researchgate.net/publication/263163012
4) L. Kathi, A Study of Awareness of E-Banking Services In India
http://ssrn.com/abstract=2223612
5) Mukta Sharma, R.B Garg, Banking Services Offered By Indian Banks Online,
International Journal of Research in Engineering and Technology, Volume: 04 Issue: 07
| July-2015, http://www.ijret.org.
6) John Csiszar, Banking Technologies (2017), https://www.gobankingrates.com
7) Mohammed Thasleem, A Study of Consumer Awareness on E Banking Services at Union
Bank of India Mangalore, https://www.scribd.com/.