The document is a comprehensive project report on online banking in India. It includes an introduction to online banking, an overview of services provided, advantages and disadvantages. It also discusses the online banking scenario in India, top banks providing services, a SWOT analysis, objectives of the study, literature review, research methodology used, data analysis and findings. The key findings are that online banking is popular among young adults for convenience, most rate services as good, and nearly all see it as a better alternative to traditional banking.

1. COMPREHENSIVE PROJECT REPORT
ON
“ STUDY ON ONLINE BANKING IN INDIA ”
IN PARTIAL FULFILMENT OF THE REQUIREMENTS OF THE AWARD OF THE
DEGREE OF MASTER OF BUSINESS ADMINISTRATION (MBA)
AFFILIATED TO
GUJARAT TECHNOLOGICAL UNIVERSITY, AHEMDABAD
ACADEMIC YEAR
2019 - 2020

2. INTRODUCTION
• Online banking mixes with 2 words i.e. electronic technology and Banking. It
is process by which a customer performs banking transactions electronically
via internet.
• The automated delivery of new and traditional banking products and services
directly to customers through electronic, interactive communication channels.
• It’s also known as Internet banking or E banking. This new and convenient way
of banking has set a boom in our day to day life.
• The concept of internet banking has been simultaneously evolving with the
development of the World Wide Web (www). The online shopping promoted
the use of credit cards through internet

3. OVERVIEW OF ONLINE BANKING
• Online banking also known as internet banking or web banking, is an electronic payment
system that enables customers of a bank or other financial institution to conduct a range of
financial transaction through the financial institution’s website.
• Some banks operate as a “direct bank” or “virtual bank”, where they rely completely on
internet banking. Internet banking software provides offering features such as viewing
account balances, obtaining statements, checking recent transactions, transferring money
between accounts & marking payments.
• While financial institutions took steps to implement e-banking services in the mid-1990s,
ICICI bank is the first one to have introduced Online-Banking in 1994 for a limited range
of services such as access to account information, correspondence and, recently, funds
transfer between its branches. ICICI is also getting into e-trading, thus offering a broader
range of integrated services to the customer.

4. ADVANTAGES OF
ONLINE BANKING
DISADVANTAGES OF
ONLINE BANKING
PAY YOUR BILLS ONLINE
VIEW YOUR TRANSACTIONS
TRANSFER MONEY BETWEEN
ACCOUNTS
MONEY IN HAND
EASE OF USE
ENVIRONMENT FRIENDLY
CUSTOMER'S CONVENIENCE
CONNECTIVITY
LAKE OF TRUST
ONLINE FRAUD
TIME LIMITATION
LIMITATIONS ON DEPOSITS
CONVENIENT BUT NOT ALWAYS
FASTER
TRANSACTION ISSUES

5. ONLINE BANKING SCENARIO WITH
INDIAN ECONOMY
Indian banks offer to their customers following online-banking products and
services:
 ATMs services
 Debit cards
 Credit cards
 Mobile banking facility.
 Answering routine queries.
 Bill payment services.
 Electronic fund transfer.
 Railway pass.
 Investing through online banking.
 Recharging through online banking.
 Shopping.

6. TOP 10 BANKS THAT PROVIDES BEST
INTERNET FACILITIES IN INDIA

7. SWOT ANALYSIS
STRENGHTS
 On demand and time saving access of service
 Transparency in system
 Better optimize use of resources.
 Enhancement in productivity and efficiency
WEAKNESSES
 Missing of personal human touch
 General customer confuses due to massive
availability of Electronic banking services.
 Requirement of huge investment for implementation
of electronic banking system.
 Need of expert staff to handle complex banking
operations.
OPPORTUNITIES
 To provide user-friendly and convenient banking
services.
 Faster flow of information within the bank
branches and among banks
 To develop data warehouse for customer support
services.
 Integration of various service delivery channels on
single platform.
THREATS
 Shorter life of technology
 Lack of technical expert staff.
 Organizational risks
 Operational risk.

8. PROBLEM STATEMENT
“A Study of Online Banking in India”

9. OBJECTIVES OF STUDY
 To understand the internet banking system.
 To find out the technological changes in the banking sectors.
 To identify the problems of internet banking system.
 To find out the problem of client and employees to change in internet.
 To identify the problem in operation of internet banking in the bank’s
website.
 To know the terms, rules and condition of internet banking.
 To look into the future outlook of the banking industry.

10. LITERATURE REVIEW
 Dr C. Paramasivan (2009)
In his studies entitled “Customer satisfaction through information technology in commercial banks’
highlighted that, customers are satisfied with banking services to some extent and the bankers should try to
improve their services at an affordable cost with the help of information technology.
 Mishra (2005)
In his paper explained the advantages and the security concerns about internet banking. According to him,
improved customer access, offering of more services, increased customer loyalty, attracting new customers
are the primary drivers of internet banking. But in a survey conducted by the online banking association,
member institutions rated security as the most important concern of online banking.
 Nyangosiet al. (2009)
Collected customers' opinions regarding the importance of e-Banking and the adoption levels of different e-
Banking technologies in India and Kenya. The study highlighted the trends of e-banking indicators in both
countries. The overall result indicates that customers in both countries have developed a positive attitude and
they give much importance to the emergence of e-banking.

11.  Dixit.N.et al (2010)
In her study investigates on how the customers perceive the value of internet banking over the traditional way
of banking. Primary data was collected from 250 respondents, through a structured questionnaire. Statistical
analysis, descriptive statistical and correlation were used to know the perceived service quality of internet
banking and level of satisfaction between customers in India. The findings depict many factors such as
perceived value, perceived service quality; customer satisfaction and their loyalty have significant impact on a
customer’s acceptance of internet banking.
 Siaw, Irene; Yu, Alec (2004)
The services through internet banking are e- tax payment; access the account to check balance, online trading
of shares, online remittance of money, electronic bill payment system, railway reservation, transfer of funds
from one customer’s account to other, application of loan, etc. internet banking channel is convenient compared
to bank branch system because stakeholders can their account at any time.

12. RESEARCH METHODOLGY
• Research design Descriptive research
• Research area Porbandar city
• Data collection Primary data
• Data collection method Structured questionnaire
• Presentation tool Pie charts
• Sample size 100 sample

13. HYPOTHESIS FRAMEWORK
 H0 = Satisfaction level of customers to words online banking is equally
distributed
 H1 = Satisfaction level of customers to words online banking is not equally
distributed

14. DATAANALYSIS AND INTERPRETATION
Q.1) Age
21 -
31 -
41 -
51
21 - 30
31 - 40
41 - 50
51 Above
Q.3) Occupation
Student
18%
Service
43%
Business
24%
Housewife
15%
Other
0%
Student
Service
Business
Housewife
Other

15. Q.4) How often do you use internet per hours?
more than 3
hours
100%
1 hour
2 hours
3 hours
more than 3 hours
Q.5) In which bank do you have an account? (Mention
only 1)
SBI
34%
AXIX
5%
ICICI
6%
HDFC
18%
BOI
12%
PNB
3%
OBC
3%
BOB
16%
IDBI
3%
SBI
AXIX
ICICI
UCO
HDFC
BOI
PNB
OBC
BOB
IDBI

16. Q.6) Do you aware about online banking facilities?
Yes
78%
No
22%
Yes
No
Q.7) How frequently do you use online banking
services?
Daily
Weekly
31%
Monthly
22%
Sometimes
27%
Daily
Weekly
Monthly
Sometimes
Never

17. Q.8) Why do you prefer online banking?
PRIVACY, 56
24*7
BUSINESS
HOURS, 47
CONVENINET
, 54
NOT TO
MOVE
ANYWHERE ,
41
EASY TO USE,
50
TIME
SAVING, 33
Q.9) What are disadvantages of online banking?
Overall
difficulty of
using online
banking, 3
Lack of
assistance, 47
Security
Limited
service, 15
Impersonality
of the
service, 1
Dependance
on internet
service, 56
Unreliable, 6

18. Q.10) Kindly rate the following of your online banking
services?
47
44 44
33
42
48
43
31
28 29 28
43
32
34
41
45
17
21
23
18
23
14
12
18
8 6 5 6 3 4 4 6
Excellent Good Average Poor
11) Are you aware of the security threats & frauds
of online banking and familiar with the methods of
secured online transactions?
YES
50%
NO
50% YES
NO

19. Q.12) Does your bank upgrade online service regularly?
YES
NO
YES
NO
Q.13) Do you think online banking is better
substitute of traditional banking system?
Yes
No
Yes
No

20. Q.14) In your opinion which online banking
service should be modified promptly for better
services in future?
Fund transfer,
5
ATM banking,
77
Balance
equiry, 18
Online FD, 5
Online
shopping, 22
Online
recharge, 5
Other, 3
Q.15) Give your overall rating in online banking
services?
EXCELLENT
, 30, 30%
GOOD, 42,
42%
AVERAGE,
25, 25%
POOR, 3,
3%
EXCELLENT
GOOD
AVERAGE
POOR

21. HYPOTHESIS TESTING
Category Fo Fe (Fo -fe) (fo – fe )2 Ʃ(fo –fe)2
Fe
Excellent 30 25 5 25 1
Good 42 25 17 289 11.56
Average 25 25 0 0 0
Poor 3 25 - 22 484 19.36
Total 100 - - - 31.92
Step: 1 Hypothesis Testing
Step: 2 Degree of freedom
Degree of freedom (DF) = n – 1
= 4 – 1
DF = 3
Step: 3 Tabular value
Significance value in 5% = 0.05
Degree of freedom = 3, 0.05
Tab = 7.81
Step: 4 Decision
Calculated value is more than tabular value.

22. LIMITATIONS OF ONLINE BANKING
 As we are observing the data from Porbandar city only. So, we cannot get accurate
data.
 Convenient sampling method is used which may lead to bias.
 While using online banking services some times internet is not working properly so
there must be chances to lose good connection.

23. FINDINGS OF ONLINE BANKING
In study on online banking
Calculated value is more than tabular value, hypothesis is rejected.
i.e.
31.92 > 7.81
From our research we find that online banking services are most popular in youngsters like age group 21 –
30.
Most of people are using online banking because of privacy, convenient and not to move anywhere.
50 % people are aware about all frauds and threats methods which are secured online transaction.
94 % people agree that online banking is better substitute of traditional banking.
Most of people are rated that online banking is good.

24. SUGGESTIONS OF ONLINE BANKING
SUGEESTIONS TO BANKS
• Internet banking facilities must be available in all banks as well as in all branches.
• Now some banks install automated balance update machine to avoid customer harassment but all banks should accept this system very
quickly.
• Banks should always update their security systems and create a trust in the mind of customers towards security of their accounts.
• Customers suggested that bank must modify ATM services regularly.
SUGEESTIONS TO USERS
• Do not respond to e-mails requesting account information, account verification or banking access credentials such as usernames,
passwords, PIN codes and similar information.
• Avoid using automatic login features that save your personal details.
• Create a strong password but that will be easy to remember without writing it down anywhere.

25. CONCLUSION
• We can conclude that in 21st century, life of people has become very fast and banking
system being the very crucial part of economy need a lots of improvement.
• Online banking is helpful in controlling corruption in our country.
• People are having unnecessary insecurity in their mind while doing transaction using
ATM, internet banking and mobile banking.
• Steps tare being taken by RBI and government but they are not sufficient, we need more
improvement.

26. BIBILOGRAPHY
WEBSITES:
wwww.scribed.in
www.investopedia.com
www.sbionline.com
www.sbi.co.in
www.rbi.org.in
www.rbi.in