This is a Final Year Project emphasizing on the Perspective, opinion and awareness of People and customers of SBI towards E banking facilities provided By Sbi in khonsa(Arunachal Pradesh)

1. A STUDY ON CUSTOMER AWARENESS TOWARDS E-
BANKING SERVICES OF STATE BANK OF INDIA WITH
REFERENCE TO KHONSA TOWN(Arunachal Pradesh)
PROJECT REPORT
submitted in partial fulfillment of the requirement for the
Degree of
BACHELOR OF COMMERCE
Submitted By
RAHUL KUMAR SAH
Under the supervision of
SAILEN GOGOI
HEAD OF THE DEPARTMENT
(ACCOUNTING AND FINANCE)
D.H.S.K. COMMERCE COLLEGE, DIBRUGARH

2. CERTIFICATE
This is to certify that RAHUL KUMAR SAH bearing Roll no 170 (Day Shift) has done project
work entitled “A STUDY ON CUSTOMER AWARENESS TOWARDS E-BANKING
SERVICES OF STATE BANK OF INDIA WITH REFERENCE TO KHONSA TOWN”
under the guidance of SAILEN GOGOI, Head of the Department of Accounting &Finance,
D.H.S.K. Commerce College, Dibrugarh towards the partial fulfilment of the requirements for
the award of Degree of Bachelor of Commerce and this is the bona fide record of the project
work delivered by him during the year 2021.
Signature

3. Contents
Sl. No Contents Page. No
1 Chapter I: Industry Analysis 1
1.1 Introduction of Banking Industry 2
1.2 Indian Banking Scenario 3
2 Chapter –II-Company Analysis 4
2.1 Company profile 5
2.2 E-Banking 8
2.3 Need for E-Banking 9
2.4 E-Banking services of SBI 9
3 Chapter III: Problem Identification 12
3.1 Statement of the Study 13
3.2 Objective of the Study 13
3.3 Research Methodology 13
3.4 Data Collection Method 14
4 Chapter IV: Data Analysis and Interpretation 15
5 Chapter V:Findings,Suggestions and Limitations of the study 20
5.1 Findings of the Study 21
5.2 Suggestions 21
5.3 Limitations 22
6 Conclusion 23

4. 1
Chapter I
INDUSTRY
ANALYSIS

5. 2
1. INDUSTRY ANALYSIS
1.1.INTRODCTION OF BANKING INDUSTRY
BANKING:
The word "BANK" is derived from a Latin word 'Bancus' or 'Banque', which means a bench.
In the early days the European moneylenders and moneychangers used to sit on the benches
and exhibit coins of different countries in big heaps for the purpose of changing and lending
money,:
As per Banking Regulation Act 1949 Section 5(b)
"Banking means, accepting for the purpose of lending or investment, of deposits of money
from the public, repayable on demand or otherwise, and withdrawal by cheque, draft, or
otherwise."
The banking industry is and always has been one of the most important aspects of all
industries. The reason being, every other industry needs banks to take part in any investments
or financial movements as a way to better their position in their industries. The industry
analysis will look at how and why the banking industry has been able to hold this position for
so long through the Competitive Landscape.
Banking in India has a long and elaborate history of more than 200 years. The beginning
of this industry can be traced back to 1786, when the country’s first bank, Bank of Bengal, was
established. But the industry changed rapidly and drastically, after the nationalization of banks
in 1969. As a result, the public sector banks began experiencing numerous positive changes
and enormous growth. Then came much-talked-about liberalization and economic reforms that
allowed banks to explore new business opportunities and not just remain constrained to
generating revenues from mere borrowing and lending. This provided the Indian banking
scenario a remarkable facelift that only continues to get better with time. However, even
today, despite the foray of foreign banks in the country, nationalized banks continue to be
biggest lenders in the country. This is primarily due to the size of the banks and the penetration
of the networks.

6. 3
1.2 INDIAN BANKING SCENARIO
The Banking industry comprises of segments that provide financial assistance and
advisory services to its customers by means of varied functions such as commercial
banking, wholesale banking, personal banking, internet banking, mobile banking, credit
unions, investment banking and the like.
With years, banks are also adding services to their customers. The Indian banking
industry is passing through a phase of customers market. The customers have more choices in
choosing their banks. A competition has been established within the banks operating in India.
With stiff competition and advancement of technology, the services provided by banks
have become more easy and convenient. The past days are witness to an hour wait before
withdrawing cash from accounts or a cheque from north of the country being cleared in one
month in the south..
Bank of Hindustan, set up in 1870, was the earliest Indian Bank . Banking in India on
modern lines started with the establishment of three presidency banks under Presidency Bank's
act 1876 i.e. Bank of Calcutta, Bank of Bombay and Bank of Madras.
The commercial banking structure in India consists of: Scheduled Commercial Banks
& Unscheduled Banks. Banking Regulation Act of India, 1949 defines Banking as "accepting,
for the purpose of lending or investment of deposits of money from the public, repayable on
demand and withdrawal by cheques, draft, order or otherwise."
The arrival of foreign and private banks with their superior state-of-the-art technology-
based services pushed Indian Banks also to follow suit by going in for the latest technologies
so as to meet the threat of competition and retain customer base.
The evolution of IT services outsourcing in the Indian banks has presently moved on to
the level of Facilities Management (FM). Banks now looking at business process management
(BPM) to increase returns on investment, improve customer relationship management (CRM)
and employee productivity.For, these entities sustaining long-term customer relationship
management (CRM) has become a challenge with almost everyone in the market with similar
products.

7. 4
Chapter II
COMPANY
ANALYSIS

8. 5
2.1 STATE BANK OF INDIA
The origin of the State Bank of India goes backs to the first decade of the nineteenth century
with the establishment of the Bank of Calcutta in 1806 in Calcutta . Three years later the bank
received its charter and was re-designed as the Bank of Bengal on 2nd
January 1809. A unique
institution, it was the first joint-stock bank of British India sponsored by the Government of
Bengal. The Bank of Bombay and Bank of Madras followed the Bank of Bengal. These three
banks remained at the apex of modern banking in India till their amalgamation as the Imperial
Bank of India on 27th
January 1921.
Preliminary Anglo-Indian creations , the three presidency banks came into existence either
as a result of the compulsions of imperial finance or by the felt needs of local European
commerce and were not imposed from outside in any arbitrary manner to modernise India’s
economy . their evolution was, however , shaped by ideas culled from similar developments in
Europe and England and was influenced by changes occurring in the structure of both the local
trading environment and those in the relation of the Indian economy to the economy of Europe
and the global economic framework.
The bank was actively involved since 1973 n non-profit activity called Community Services
Banking. All branches and administrative offices throughout the country sponsor and
participate in large number of welfare activities and social causes. Their business is more than
banking because they ouch the life of people anywhere in many ways. State Bank of India
(SBI) has received an approval from the Government of India (GOI) for acquisition of SBI
Commercial and International Bank (SBICI).
In April 2014 State Bank of India launched three digital banking facilities for the convenience
of SBI customers. Two at the customer’s door step using TAB banking – one for customers
Opening Savings Bank accounts and another for Housing Loan applicants. The third is e-KYC
(Know Your Customer).
As a part of modernisation, SBI now has added another 7 digital products to their customer
: SBI Digital village , SBI Mingle, State Bank Buddy, State Bank Crime , SBI Digi-
voucher , SBI Video statement and SBI Smart watch. With these additions, SBI becomes

9. 6
the “leader of digital products”, they claimed. All these SBI digital products are available for
both rural and urban customers in India.
Associate banks
State bank of india has the following seven associate banks with controlling interest ranging
from 75% to 100%
1. State Bank of Bikaner and Jaipur (SBBJ).
2. State Bank of Hyderabad (SBH)
3. State Bank of Indore (SBIr)
4. State Bank of Mysore (SBM)
5. State Bank of Patiala (SBP)
6. State Bank of Saurashtra (SBS)
7. State Bank of Travancore (SBT)
STATE BANK OF INDIA –
IN SHORT
Type Public
Traded as NSE :SBIN
BSE :500112
lSE :SBID
BSE SENSEX constituent
CNX Nifty constituent
Industry Banking,financial services

10. 7
Founded 2 june 1806,bank of calcutta
27 january 1921,Imperial bank of India
1 july 1955 SBI
2 june 1956,nationalisation
Headquarters Mumbai,Maharashtra,India
Area served Worldwide
Key people Dinesh kumar Khara(Chairman)
Products Consumer banking,corporate
banking,finance and insurance,investment
banking,mortgage loans,private
banking,private
equity,savings,securities,asset
management,wealth management,credit
cards.
Revenue Rs.385,338 crore (2021)
Operating income Rs.78,898 crore (2021)
Total Assets Rs 4,845,619 crore (2021)
Total equity Rs 274,669 crore (2021)
Number of employees 245,652 (2021)
Capital ratio 13.06% (2021)
Website Bank.sbi

11. 8
2.2 E-BANKING
Electronic banking is one of the truly widespread avatars of E-commerce over the
world. Various authors define E-Banking differently but the most definition depicting the
meaning and features of E-Banking are as follows:
1.Banking is a combination of two, Electronic technology and Banking.
2. Electronic Banking is a process by which a customer performs banking Transactions
electronically without visiting their banks.
3. E-Banking denotes the provision of banking and related service through Extensive use of
information technology without direct recourse to the bank by the customer.
E-Banking consists of services which allows bank consumers to retrieve their own information,
carrying out various monetary dealings, and save money in to accounts, amount withdraw or
pay number of bills via Internet without physical presence at the branch or bank counters. It
was expediency of retrieving banking services from the comfort of their home or office. Now
days E-banking has become buzz word.
The functionality of E-banking allows any one of consumer by having a personal computer
attached to the network and browser which get associated to own banking online portal and
execute anything of simulated bank transactions.
What do we understand by the term of e-banking? It is related to the carrying out bank
related business with the help of the computers or telebanking.

12. 9
2.3. NEED FOR E-BANKING
One has to approach the branch in person, to withdraw cash or deposit a cheque
or request a statement of accounts. In true Internet banking, any inquiry or transaction is
processed online without any reference to the branch (anywhere banking) at any time.
Providing Internet banking is increasingly becoming a "need to have" than a "nice to have"
service. The net banking, thus, now is more of a norm rather than an exception in many
developed countries due to the fact that it is the cheapest way of providing banking services.
Banks have traditionally been in the forefront of harnessing technology to improve
their products, services and efficiency. They have, over a long time, been using electronic and
telecommunication networks for delivering a wide range of value added products and services.
The delivery channels include direct dial – up connections, private networks, public networks
etc and the devices include telephone, Personal Computers including the Automated Teller
Machines, etc. With the popularity of PCs, easy access to Internet and World Wide Web
(WWW), Internet is increasingly used by banks as a channel for receiving instructions and
delivering their products and services to their customers. This form of banking is generally
referred to as Internet Banking, although the range of products and services offered by different
banks vary widely both in their content and sophistication.
2.4. E-BANKING SERVICES OF SBI
1. Internet Banking
2. ATM (Automatic Teller Machine)
3. Tele Banking
4. Mobile Banking
5. Payment Cards (Debits/Credit Card)

13. 10
INTERNET BANKING
Net banking is a web-based service that enables the banks authorized customers to access
their account information. It allows the customers to log on to the banks website with the help
of bank’s issued identification and personal identification number (PIN). The banking system
verifies the user and provides access to the requested services, the range of products and
service offered by each bank on the internet differs widely in their content. Most banks offer
net banking as a value-added service. Net banking has also led to the emergent of new banks,
which operate only through the internet and do not exists physically, Such banks are called
“virtual” banks or “Internet Only” banks.
AUTOMATED TELLER MACHINE (ATM)
An automated teller machine or automatic teller machine (ATM) is a computerized
telecommunications device that provides a financial institution's customers a method
of financial transactions in a public space without the need for a human clerk or bank teller.
On most modern ATMs, the customer identifies him or herself by inserting a plastic ATM
card with a magnetic stripe or a plastic smartcard with a chip that contains his or her card
number and some security information, such as an expiration date or CVC (CVV). Security is
provided by the customer entering a personal identification number (PIN).Using an ATM,
customers can access their bank accounts in order to make cash withdrawals (or credit card
cash advances) and check their account balances. Many ATMs also allow people to deposit
cash or checks, transfer money between their bank accounts, pay bills, or purchase goods and
services.
TELE BANKING OR PHONE BANKING
Telephone banking is relatively new Electronic Banking Product. However it is fastly
becoming one of the most popular products. Customer can perform a number of transactions
from the convenience of their own home or office; in fact from any where they have access to
phone.
Customers can do following:-
•Check balances and statement information.
•Transfer funds from one account to another.
•Pay certain bills.
•Order statements or cheque books.
•Demand draft request .
MOBILE BANKING

14. 11
Mobile banking comes in as a part of the banks initiative to offer multiple channel
banking providing convenience for its customer. A versatile multifunctional, free service that
is accessible and viewable on the monitor of mobile phone. Mobile phones are playing great
role in Indian banking- both directly and indirectly. They are being used both as banking and
other channels.
PAYMENT CARDS
Plastic money or payment cards, made out of plastic, is a new and easier way of paying for
goods and services. Plastic money was introduced in the 1950s and is now an essential form of
ready money which reduces the risk of handling a huge amount of cash. It includes debit cards,
ATMs, smart cards, etc.
Different Types of Plastic Money:
Credit Cards :
This card will permit the card holder to withdraw cash from an ATM, and a credit card will
allow the user to purchase goods and services directly, but unlike a Cash Card the money is
basically a high interest loan to the card holder, although the card holder can avoid any interest
charges by paying the balance off in full each month.
Debit Cards:
This type of card will directly debit money from your bank account, and can directly be used
to purchase goods and services. While there is no official credit facility with debit cards, as it
is linked to the bank account the limit is the limit of what is in the account, for instance if an
overdraft facility is available then the limit will be the extent of the overdraft.
Store Cards:
These are similar in concept to the Credit Card model, in that the idea is to purchase
something in store and be billed for it at the end of the month. These cards can be charged at a
very high interest rate and can are limited in the places they can be used, sometimes as far as
only the store brand that issued it.

15. 12
Chapter III
PROBLEM
IDENTIFICATION

16. 13
3.1. STATEMENT OF THE STUDY
Today all the banking sectors are providing lot of services to their customers. Although the
E-banking services are offered by all the banks , it is a necessity to study whether all the
banking customers are aware of the E- banking services. To get the highest satisfaction on the
e-banking channels, a customer should have complete knowledge and awareness on various
products and services offered by the banks and bankers should have the ability to identify the
type of services needed by a customer and render the same to his satisfaction. We attempted to
analyze customer’s awareness towards the E-banking services offered by the SBI.
3.2 OBJECTIVES OF THE STUDY
➢ To evaluate the awareness of E-Banking among the customers of SBI.
➢ To study the most preferred E-Banking service offered by SBI.
➢ To know which group of customer prefer using different e-banking facilities.
➢ To study about the factors that affects the customer perception towards E-banking
➢ To know about the current and future prospects of E-Banking to the customers.
➢ To find out the major problems faced by the customers while using e-banking services.
3.3 RESEARCH METHODOLOGY
In a view to precede the research in a systematic way the following research methodology
has been used. By means of obtaining detailed opinion of the customers, this research falls
under the category of descriptive research. This study was conducted as a survey that examined
customers’ satisfaction with e-banking services in State Bank Of India .
The methodology adopted in the study is both descriptive and analytical .
SAMPLE SIZE : 50 respondents
SAMPLE UNIT : Customers of Khonsa Town
SAMPLING TECHNIQUE : Convenient sampling method

17. 14
3.4 DATA COLLECTION METHOD
• PRIMARY DATA:
In order to gather necessary data and also to provide profound insight into the topic
‘Customer awareness on E- banking services of SBI’ , the researcher considered the use of
questionnaire for consumers in most suitable way.
• SECONDARY DATA:
Secondary data was collected from the existing data sources, catalogues, internet
,magazine, case studies, newspapers , journals , articles ,etc. The information so collected
has been consolidated in a meaningful manner for the purpose.
Research instrument:
The instrument used for gathering data was questionnaire. To get further insight in to the
research problem, interview regarding their buying practices too was made. This was done to
crosscheck the authenticity of the data provided. To supplement the primary data and to
facilitate the process of drawing inference, secondary data was collected from published
sources like magazines, journals, newspapers etc.

18. 15
Chapter IV
DATA ANALYSIS
AND
INTERPRETATION

19. 16
The data has been collected from 50 SBI account holders across Khonsa Town. The data after
collection is to be proceed and analysed in accordance with the outline and down for the
purpose at the time of developing research plan. Technically speaking, processing implies
editing , coding, classification and tabulation collected data, so that they are amenable to
analysis.
DISTRIBUTION OF RESPONDENTS ACCORDING TO THEIR
GENDER
No. of
respondents
Percentage
Male 36 72
Female 14 28
Total 50 100
DISTRIBUTION OF RESPONDENTS ACCORDING TO THEIR OCCUPATION
No. of
respondents
Percentage
Students 38 76
Pvt.
sector
employees
8 16
Govt.
employees
2 4
Business 2 4
Total 50 100
Males
72%
Females
28%
GENDER
0
10
20
30
40
50
60
70
80
Govt.
Employee
PVT.
Employee
Business Student
Occupation

20. 17
DISTRIBUTION OF RESPONDENTS ACCORDING TO THEIR
ANNUAL INCOME LEVEL
No. of
respondents
Percentage
Less than Rs.1
lakh
10 20
Rs.1 lakh to
Rs.5 lakh
7 14
More than
Rs.5 lakh
5 10
Not earning 28 56
Total 50 100
DISTRIBUTION OF RESPONDENTS ACCORDING TO THEIR
AWARENESS ABOUT E-BANKING OF STATE BANK OF INDIA
No. of
respondents
Percentage
Aware 40 80
Not
aware
10 20
Total 50 100
0
10
20
30
40
50
60
Less
than
Rs.1 lakh
Rs.1 lakh
to Rs.5
lakh
More
than
Rs.5 lakh
Not
earning
ANNUAL INCOME LEVEL
INCOME LEVEL
20
% 14
%
10
%
56
%
80%
20%
Awareness About E Banking
Aware Not Aware

21. 18
DISTRIBUTION OF RESPONDENTS ACCORDING TO THEIR
CONVENIENT MODE OF E-BANKING
DISTRIBUTION OF RESPONDENTS ACCORDING TO THEIR NEED
OF IMPROVEMENTS IN STATE BANK OF INDIA TOWARDS E-
BANKING
No. of
respondents
Percentage
Internet
banking
12 24
Mobile
banking
30 60
Tele
banking
2 4
Plastic
money
6 12
Total 50 100
No.of respondents Percentage
More promotion technique 27 54
Customer friendly 10 20
Widening benefits 8 16
Others 5 10
Total 50 100
0
10
20
30
40
50
60
Internet Banking Mobile Banking Tele Banking Plastic Money
24
60
4
12
Convenient Mode of E Banking

22. 19
Table describing Benifts while using E-banking services
Table and Chart describing Which Factors Influence Most To use E-banking
40
24
14
22
T IME A VA ILIBILIT Y E A S E OF US E NE A RNE S S DIRE C T A C C E S S
FACTORS THAT INFLUENCE MOST TO USE E
BANKING
Particulars Number of Respondents Percentage
Time saving 27 54
Inexpensive 8 16
Easy Processing 15 30
Total 50 100.0
Particulars Number of Respondents Percentage
All timeAvailability 20 40.0
Ease Of use 12 24.0
Nearness 7 14
Direct access 11 22
Total 50 100.0

23. 20
Chapter V
FINDINGS ,
SUGGESTIONS &
LIMITATIONS

24. 21
5.1. FINDINGS OF THE STUDY
➢ From this study we can observe that majority of the respondents, ie, 54% of the respondents
benefits time saving while accessing E-banking services.
➢ A study of the factors, influencing the usage was made by listing out various factors such as all
time availability, ease of use, nearness etc., and amongst the various factors all time availability
is ranked as the major motivating factor, followed by ease of use, direct access, nearness in
decreasing order of importance.
➢ When asked to list various benefits accruing from the usage of e-banking, timesaving received
highest percentage score at 54% among different benefits such as , inexpensive 16%), easy
processing (30%), easy processing feature scored more than the inexpensiveness of the e-banking
services. The other benefit securing to the people include ready availability of funds, removal of
middle men and no rude customer relation executives.
➢ Among the users, various problems that are encountered while using e-banking services. Card
misuse and its misplace are major reasons that create hurdles in its usage, while time
consumption, accounting mistakes such as amount debited but not withdrawn and change of
mobile number seem to be the least bothering problems.
From the non users, an attempt was made to elicit the reasons for its non usage. Satisfaction
with traditional banking was considered as prime de-motivating factor, followed closely by
the fear of insecurity, then ‘hidden cost’ factor, which suggested their resistance to change,
which to some extent can be countered by aggressive advertisement and utilizing other modes
of awareness dissemination as well
5.2. SUGGESTIONS
➢ Familiarizing the customer to new environment by demo version of software on bank's web site.
This should contain tour through the features which are to be included. It will enable users to
give suggestions for improvements, which can be incorporated in later versions wherever
feasible.
➢ To provide services such as account information and balances, statement of account, transaction
tracking, mailbox, check book issue, stop payment, financial and customized information.
➢ To include additional services such as fund transfers, standing instructions, opening fixed
deposits, intimation of loss of ATM cards.
➢ We can see the time is changing and we the passage of time people are accepting technology
there is still a lot of perceptual blocking which hampers the growth it’s the normal tendency of a

25. 22
human not to have changes work on the old track, that’s also one of the reason for the slow
acceptance of internet banking accounts.
➢ Give proper training to customers for using E-banking
➢ Create a trust in mind of customers towards security of their accounts
➢ Provide a platform from where the customers can access different accounts at single time
without extra charge.
➢ Make the sites more users friendly.
➢ Customers should be motivated to use E- banking facilities more.
5.3 LIMITATIONS OF THE STUDY
➢ Every research is conducted under some constraints and this research is not an exception.
Limitations of this study are as follows:-
➢ 1. There were several time constraints.
➢ 2. The study is limited to area of Khonsa only.
➢ 3. The sample size of only 50 was taken from the large population for the purpose of study,
so there can be difference between results of sample from total population.
➢ 4. The study is related to customers only.
➢ 5. People were reluctant to go in to details because of their busy schedules
➢ 6.Personal bias and prejudice of the respondents could have affected the result of the study

26. 23
CONCLUSION
The usage of E-banking is all set to increase among the service class. The service class
at the moment is not using the services thoroughly due to various hurdling factors like in
security and fear of hidden costs etc. So banks should come forward with measures to reduce
the apprehensions of their customers through awareness campaigns and more meaningful
advertisements to make E-banking popular among all the age and income groups. Further, with
increasing consumer demands, banks have to constantly think of innovative customized
services to remain competitive. E-Banking is an innovative tool that is fast becoming a
necessity. It is a successful strategic weapon for banks to remain profitable in a volatile and
competitive marketplace of today. In future, the availability of technology to ensure safety and
privacy of e-transactions and the RBI guidelines on various aspects of internet banking will
definitely help in rapid growth of internet banking in India.