1. PROJECT REPORT
(Submitted for the Degree of B.Com. Honours in Accounting & Finance under
the University of Calcutta)
A STUDY ON ONLINE BANKING IN INDIA
BY
PRADUMNYA SEN
Registration Number : 043-1121-0256-11
OF
HERAMBA CHANDRA COLLEGE
ROLL NUMBER - 348
SUPERVISED BY
PROF. ARCHISMAN LAHIRI
HERAMBA CHANDRA COLLEGE
FEBRUARY'2014

2. TABLE OF CONTENTS
1. INTRODUCTION
1.1 Background of Study on Online Banking In India
1.1.1 Drivers of Change
1.1.2 Indian Banks on Web
1.1.3 Emerging Challenges
1.1.4 Main Concerns in Online Banking
1.1.5 Current Scenario
1.1.6 Technology in Online Banking
1.1.7 Industry Profile
1.2 Problem Identified
1.3 Need Of Study
1.4 Objectives Of Study
1.4.1 Primary Objectives
1.4.2 Secondary Objectives
2. LITERATURE SURVEY
2.1 Review Of Literature
2.2 E-Banking In India

3. 2.3 Company Profile In Online Banking
2.4 Services And Products
2.5 SWOC Analysis
3. ANALYSIS AND FINDINGS
3.1 Type Of Project
3.2 Target Respondents
3.3 Area Of Research
3.4 Tools for Analysis
3.5 Data Analysis & Interpretation
4. CONCLUSION AND RECOMMENDATIONS
4.1 Summary Of Findings
4.2 Suggestions
4.3 Conclusions

4. 5. BIBLIOGRAPHY

5. CHAPTER 1- INTRODUCTION
1.1 Background Study :
The Internet banking is changing the banking industry and is having the major effects on
banking relationships. Even the Morgan Stanley Dean Witter Internet research emphasized
that Web is more important for retail financial services than for many other industries.
Internet banking involves use of Internet for delivery of banking products & services. It falls
into four main categories, from Level 1 - minimum functionality sites that offer only access to
deposit account data - to Level 4 sites - highly sophisticated offerings enabling integrated sales
of additional products and access to other financial services - such as investment and
insurance. In other words a successful Internet Banking solution offers -
• Exceptional rates on Savings, CDs, and IRAs
• Checking with no monthly fee, free bill payment and rebates on ATM surcharges
• Credit cards with low rates
• Easy online applications for all accounts, including personal loans and mortgages
• 24 hour account access
• Quality customer service with personal attention.
1.1.1 Drivers Of Change :

6. Advantages previously held by large financial institutions have shrunk considerably. The
Internet has leveled the playing field and afforded open access to customers in the global
market place. Internet Banking is a cost effective delivery channel for financial institutions.
Consumers are embracing the many benefits of Internet Banking. Access to one's accounts at
anytime and from any location via the World Wide Web is a convenience unknown a short
time ago. Thus, a bank's Internet presence transforms from 'brouchreware' status to 'Internet
banking' status once the bank goes through a technology integration effort to enable the
customer to access information about his or her specific account relationship. The six primary
drivers of Internet Banking includes, in order of primacy are :
• Improve customer access
• Facilitate the offering of more services
• Increase customer loyalty
• Attract new customers
• Provide services offered by competitors
• Reduce customer attrition.
1.1.2 Indian Banks on Web :
The banking industry in India is facing unprecedented competition from non- traditional
banking institutions, which now offer banking and financial services over the Internet. The
deregulation of the banking industry coupled with the emergence of new technologies, are
enabling new competitors to enter the financial services market quickly and efficiently.
Indian banks are going for the retail banking in a big way. However , much is still to be
achieved. This study which was conducted by students of IIML shows some interesting facts :

7. • Throughout the country, the Internet Banking is in the nascent stage of development
(only 50 banks are offering varied kind of Internet banking services).
• In general, these Internet sites offer only the most basic services. 55% are so called
'entry level' sites, offering little more than company information and basic marketing
materials. Only 8% offer 'advanced transactions' such as online funds transfer
,transactions & cash management services.
• Foreign & Private Banks are much advanced in terms of the number of sites & their
level of development.
1.1.3 Emerging Challenges :
Information technology analyst firm, the Meta Group, recently reported that "financial
institutions who don't offer home banking by the year 2000 will become marginalized." By the
year of 2002, a large sophisticated and highly competitive Internet Banking Market will develop
which will be driven by
• Demand side pressure due to increasing access to low cost electronic services.
• Emergence of Open standards for banking functionality.
• Growing customer awareness and need of transparency.
• Global players in the fray.
• Close integration of bank services with web based E-commerce or even
disintermediation of services through direct electronic payments (E-Cash)
• More convenient international transactions due to the fact that the Internet along with
general deregulation trends eliminates geographic boundaries.

8. 1.1.4 Main Concerns In Internet Banking :
In a survey conducted by the Online Banking Association , member institutions rated security
as the most important issue of Online banking. There is a dual requirement to protect
customer's privacy and protect against fraud. Banking Securely : Online banking via the World
Wide Web provides an overview of Internet commerce and how one company secure banking
for its financial institution clients and their customers. Some basic information on the
transmission of confidential data is presented in Security and Encryption on the Web. PC
Magazine Online also offer a primer : How Encryption Works. A multilayered security
architecture comprising firewalls , filtering routers, encryption and digital certification ensure
that your account information is protected from unauthorised access :
• Firewalls and filtering routers ensure that only the legitimate Internet users are allowed
to access the system.
• Encryption techniques used by the bank (including the sophisticated public key
encryption) would ensure that privacy of data flowing between the browser and the
Infinity system is protected.
• Digital certification procedures provide the assurance that the data you receive is from
the Infinity system.
1.1.5 Current Scenario :
The Indian has finally worked up to the competitive dynamics of new Indian market and is
addressing the relevant issues take on the multifarious challenges of globalization.
Banks that employ IT solutions are perceived to be futuristic and proactive players capable of
meeting the multifarious requirements of large customer base. Private banks have been fast on
the uptake and are reorienting their strategies using the Internet as a medium.
The India banking has come from a long from being a sleepy business institution to a highly
proactive and dynamic entity this transformation has been largely brought by the large doses
of liberalization and economic reforms that allowed exploring new business opportunities
rather than generating revenues from conventional streams. The Indian industry has
confidently hit the growth trial that pick in activity is best reflected in the banking sector which
after all is as candid a mirror of a country's economy as you could ever find. Most of the Indian

9. Financial intermediaries have been keeping pace with the deepening market economy , riding
the opportunity that come along with reforms even as they brace themselves for increased
competition both foreign and private by strengthening prudential norms and leveraging
technology to ensure that growth engine hums smoothly along the essential function of a bank
is to provide services related to the storing value of value and the extending credit. The
evolution of banking dates back to the earliest writing , and continues in the present where a
bank is a financial institution that provides banking and other financial services. Currently the
term bank is generally understood an institution that holds a banking license. Banking licenses
are granted by financial supervision authorities and provide rights to conduct the most
fundamental banking services such as accepting deposits and making loans. There are also
financial institutions that provide certain banking services without meeting the legal definition
of a bank ,a so called non-bank. Banks are a subset of the financial services industry.
The word bank is derived from the italian banca, which is derived from German and means
bench. The terms bankrupt and "broke" are similarly derived from banca rotta, which refers to
an out of business bank, having its bench physically broken. Money lenders in Nothern Italy
originally did business in open areas , or big rooms, with each lender working from his own
bench or table. Typically, a bank generates profits from transaction fees on financial services or
the interest spread on resources it holds in trust for clients while paying theme interest on the
asset.
Services typically offered by the banks -
Although the type of services offered by a bank depends upon the type of bank and the
country, services provided usually include :
• Directly take deposits from the general public and issue checking and saving accounts.
• Lend out money to companies and individuals (see money lender)
• Cash checks.
• Facilitate money transactions such as wire transfers and cashier's checks.
• Issue credit cards, ATM, and debit cards and online banking.
• Storage of valuables , particularly in a safe deposit box.
1.1.6 Technology In Banking :

10. • Technology will bring fundamental shift in functioning of banks. It would not only help
them bring improvements in their internal functioning but also enable them to provide
better customer service. Technology will break all boundaries and encourage cross
border banking business. Banks would have to undertake extensive Business Process
Re-Engineering and tackle issues like a) how best to deliver products and services to
customers. b) designing an appropriate organizational model to fully capture the
benefits of technology and business process changes brought about. c) how to exploit
technology for deriving economies of scale and how to create cost efficiencies, and d)
how to create a customer - centric operation model.
• Entry of ATMs has changed the profile of front offices in bank branches. Customers no
longer need to visit branches for their day to day banking transactions like cash
deposits, withdrawals ,cheque collection , balance enquiry etc. E- banking and Internet
banking have opened new avenues in "convenience banking".
• Technology solutions would make flow of information much faster, more accurate and
enable quicker analysis of data received. This would make the decision making process
faster and more efficient. For the Banks, this would also enable development of
appraisal and monitoring tools which would make credit management much more
effective. The result would be a definite reduction in transaction costs, the benefits of
which would be shared between banks and customers.
• One area where the banking system can reduce the investment costs in technology
applications is by sharing of facilities. We are already seeing banks coming together to
share ATM Networks. Similarly, in the coming years , we expect to see banks and FIs
coming together to share facilities in the area of payment and settlement, back office
processing, data warehousing , etc. While dealing with technology , banks will have to
deal with attendant operational risks. This would be a critical area the Bank
management will have to deal with in future.
• Payment Settlement system is the backbone of any financial market place. The present
Payment and Settlement systems such as Structured Financial Messaging
System( SFMS) , Centralised Funds Management System(CFMS) , Centralised Funds
Transfer System (CFTS) and Real Time Gross Settlement System( RTGS) will undergo

11. further fine- tuning to meet international standards. Needless to add, necessary
security checks and controls will have to be in place. In this regard, Institutions such as
IDRBT will have a greater role to play.
1.1.7 Industry Profile :
Without a sound and effective banking system in India it cannot have a healthy economy. The
banking system of India should not only be hassle free but it should be able to meet new
challenges posed by the technology and any other external and internal factors.
For the past three decades India's banking system has several outstanding achievements to its
credit. The most striking is its extensive reach. It is no longer confined to only metropolitans or
cosmopolitans in India. In fact , Indian banking system has reached even to the remote corners
of the country. This is one of the main reasons of India's growth process.
The government regular policy for Indian banks since 1969 has paid rich dividends with the
nationalization of 14 major private banks of India.
Not a long ago, an account holder had to wait for hours at the bank countries for getting a
draft or for withdrawing his own money. Today,, he has a choice. Gone are days when most
efficient bank transferred money from one branch to other in two days. Now it is simple as
instant messaging or dial a pizza. Money have become the order of the day.
The first bank in India , though conservative, was established in 1786. From 1786 till today, the
journey of Indian Banking System can be segregated into three distinct phases. They are as
mentioned below :
• Early phase from 1786 to 1969 of Indian Banks.
• Nationalisation of Indian Banks and up to 1991 prior to Indian banking sector Reforms.
• New phase of Indian Banking System with the advent of Indian Financial & Banking
Sector Reforms after 1991.
Phase 1

12. The General Bank of India was set up in the year 1786. Next came Bank of Hindustan
and Bengal Bank.. The East India Company established Bank of Bengal(1809) , Bank of
Bombay(1840) and Bank of Madras( 1843) as independent units and called it Presidency
Banks. These three banks were amalgamated in 1920 and Imperial Bank of India was
established which started as private shareholders banks, mostly European
shareholders.
In 1865 Allahabad bank was established and first time exclusively by Indians , Punjab ,
National Bank Ltd. was set up in 1894 with headquarters at Lahore. Between 1906 and
1913, Bank of India, Central Bank of India, Bank of Baroda, Canara Bank, Indian Bank
and Bank of Mysore were set up. Reserve Bank of India came in 1935.
During the first phase the growth was very slow and banks also experienced periodic
failures between 1913 and 1948. There were approximately 1100 banks, mostly small.
To streamline the functioning and activities of commercial banks, the Government of
India came up with The Banking Companies Act,1949 which was later changed to
Banking Regulation Act 1949 as per amending Act of 1965 (Act No.23 of 1965). Reserve
Bank of India was vested with extensive powers for the supervision of banking in India
as the Central Banking Authority.
Phase 2
Government took major steps in this Indian Banking Sector Reform after independence.
In 1955 , it nationalised Imperial bank of India with extensive banking facilities on a
large scale especially in rural and semi urban area. It formed State Bank of India to act
as the principal agent of RBI and to handle banking transactions of the Union and State
Governments all over the country.
Seven banks forming subsidiary of State Bank of India was nationalised in 1960 on 19th
July,1969. 14 major commercial banks in the country was nationalised. This step
brought 80% of the banking segment in India under Government ownership.

13. Phase 3
This phase has introduced many more products and facilities in the banking sector in its
reforms measure, In 1991, a committee was set up by his name which worked for the
liberalisation of banking practices.
The country is flooded with foreign banks and their ATM stations. Efforts are being put
to give a satisfactory service to customers. Phone banking and net banking is
introduced. The entire system became more convenient and swift. Time is given more
importance than money.
The financial system of India has shown a great deal of resilience. It is sheltered from
any crisis triggered by any external macroeconomics shock as other East Asian
Countries suffered. This is all due to a flexible exchange rate regime, the foreign
reserves are high, the capital account is not yet fully convertible, and banks and their
customers have limited foreign exchange exposure.
1.2 Problem Identified :
Even though the technology updation has been adopted in Internet banking, still the
customers are unaware about the updation of technology and the reason for the technology
updation. Some of the customers are not using the branch networks, and ATM facilities. Only
educated people are aware about the internet banking facilities and the procedures to access
their account online. Even among the educated people, some of them are still feeling insecure
about performing the transactions through net banking facilities provided by the banks. The
bank doesn't take any actions to make aware their customers to use the internet banking
facility or to increase the satisfaction level among their customers.

14. 1.3 Need Of Study :
This study analyses about the need for internet banking facility offered by banks to their
customers. The specific online facilities include fund transfer, online bill payment, balance
enquiry and the most of the other activities related to the customer's bank account.
These were implemented to overcome the problems associated with traditional banking
system, which includes time delay in transactions, need of physical presence of customers, and
more paper work for bankers and so on.
This study has been mainly carried out to intimate the changes, updations in internet banking
facility. This study makes contributions by showing how the current internet banking facilities
contribute in increasing the efficiency of the banking operations and also focuses on the
acceptance level among the Customers for Internet banking. Hence, it is necessary to conduct
a study to know whether the implementation of Internet Banking has served the purpose or
not.
1.4 Objectives Of Study :
1.4.1 Primary Objectives
• To study the effectiveness of the Internet Banking In India.
1.4.2 Secondary Objectives
• To study on current internet banking facilities provided by banks.
• To study the usage level of the Internet banking facilities by customers.

15. • To study the improvement of efficiency of banking operations obtained by internet
banking.
• To notify the changes needed from customer view in existing internet banking
facilities.
CHAPTER 2 - LITERATURE SURVEY
2.1 Review Of Literature
Online banking is the latest in the series of technological wonders of the recent past. ATMs,
Tele Banking , Internet Banking , Credit Cards and Debit Cards have emerged as effective
delivery channels for traditional banking products. Internet or Electronic or online baking is the
newest delivery channel to be offered by retail banks in many developed countries, and there
is a wide agreement that this channel will have a significant impact on the market. Banks know
that the internet opens up new horizons for them and moves them from local to global
frontiers. Online banking refers to systems that enable bank customers to get access to their
accounts and general information on bank products and services through the use of bank's
websites, without the intervention or inconvenience of sending letters, faxes , original
signatures and telephone confirmations.
In its simplest form, electronic banking may mean the provision of information about the bank
and its products via a page on the internet. It is the types of services through which bank
customers can request information and carry out most retail banking services such as balance
reporting, inter-account transfers, bill payment, etc via a telecommunication network without
leaving their homes or organizations. In essence, it is an electronic consumer interface and an
alternative channel of distributions. Online banking has been regarded as the most important
way to reduce cost and maintain or enhance services for consumers. It provides universal
connection from any location worldwide and its universally accessible from any internet linked
computer. It is a process of innovation whereby customers handle their own banking
transactions without visiting bank tellers.
2.1 E- Banking In India
Information technology is considered as the key driver for the changes taking place around the
world. According to Heikki, the transformation from the traditional banking to e-banking has

16. been a 'leap' change. The evolution of e-banking started from the use of Automatic Teller
machines( ATMs) and telephone banking (tele-banking), direct bill payment, electronic fund
transfer and the revolutionary online banking. The future of electronic banking would be more
interactive i.e TV banking . Finland is the first country in the world to have taken a lead in e-
banking. In India , ICICI Bank initiated e-banking services during 1997 under the brand name
'Infinity'. It has been forecasted that among all categories, online baking is the future of
electronic financial transactions. The rise in e-commerce and internet in enhancing online
security transformation and sensitive information has been the core reason for the penetration
of online banking in everyday life. The shift towards the involvement of the customers in the
financial service with the help of technology ,especially internet, has helped in reducing costs
of financial institutions as well as clients / customers who use the service at anytime and from
virtually anywhere with access to an internet connection.
2.3 Company Profile In Online Banking
Where ALLAHABAD BANK was?
• In early 1990’s more than 7000 branches were using traditional manual procedures.
• These manual procedures were inherited from the Imperial Bank.
• Traditional procedures were evolved over decades
• Very few changes were brought in those procedures as per the need of time.
• In that time, mainframe or mini computers were used for MIS, RECONCILLATION &
FUND SETTLEMENT PROCESS, or we can say that for backhand operations purpose.
Changes brought in Information Technology by ALLAHABAD BANK :-
• In the next decade internet facility was provided for individuals

17. • All ALLAHABAD BANK branches were connected and ATM’S were launch
• 2001 - KMPG appointed consultant for preparing IT Plan for the Bank.
• Later on Core banking proposed by the IT consultancy company.
• 2002 – All branches computerized but on decentralized systems, there the initiative of
core banking took place
• 2008- more than 6500 branches (95% of business) on Core Banking Solution (CBS)
• Internet Banking facility for Corporate customers were also launched in early 2008
• More Interfaces developed with e-Commerce & other sites through alternate channels
like ATM & Online Banking
• All Foreign Offices were brought on Centralized Solution
• Large network is playing the role of backbone for connectivity across the country
• Multiple Service Providers are providing the links – BSNL, MTNL, Reliance, Tata &
reliance which are making the system errorless and provide high speed.
• Multiple Technologies to support the networking infrastructure – Leased lines, Dial-up,
CDMA & VSAT
CBS - Core Banking System Components
ELITEX-2008 8
CBS - Core Banking System
Components Datacenter
Network Administrators
Core-Banking
Application
OS, Database
Internet-Banking
ATM
Desktops,
Branch
Servers
WAN,
Internet
Branches
Application Developers
System AdministratorsBranch User/Admins
Alternative
Channels

18. Online ALLAHABAD BANK (www.allbankonline.in)
Allahabad Bank is one of India’s largest bank with a branch network of over 11000 branches
and 6 associate banks located even in the remotest parts of India. Allahabad Bank offers a
wide range of banking products and services to corporate and retail customers.
Online Allahabad Bank is the Internet banking portal for . The portal provides anywhere,
anytime, online access to accounts for Retail and Corporate customers. The application is
developed using the latest cutting edge technology and tools. The infrastructure supports
unified, secure access to banking services for accounts in over 11,000 branches across India.
2.4 Services And Products
RETAIL BANKING:-
The Retail banking application is an integration of several functional areas, and enables
customers to:
 Issue Demand Drafts online
 Transfer funds to own and third party accounts

19.  Credit beneficiary accounts using the VISA Money Transfer, RTGS/NEFT feature
 Generate account statements
 Setup Standing Instructions
 Configure profile settings
 Use eTax for online tax payment
 Use ePay for automatic bill payments
 Interface with merchants for railway and airline reservations
 Avail DEMAT and IPO services
CORPORATE BANKING:-
The Online corporate banking application provides features to administer and manage
corporate accounts online. The corporate module provides roles such as Regulator, Admin,
Uploader, Transaction Maker, Authorizer, and Auditor. These roles have access to the following
functions:
 Manage users, define rights and transaction rules on corporate accounts
 Access accounts in several branches with a single sign-on mechanism
 Upload files to make bulk transactions to third parties, supplier, vendor and tax
collection authorities.
 Use online transactional features such as fund transfer to own accounts, third party
payments, and draft issues
 Make bill payments over the Internet.
 Authorize, modify, reschedule and cancel transactions, based on rights assigned to the
user
 Generate account statement
 Enquire on transaction details or current balance
Value added services:

20.  Tax payments to central and state governments through site to site integration.
 Supply Chain Finance( e-VFS- Electronic Vendor Finance Scheme)
 Direct Debit Facility
 E Collection Facilities for:
 Core Banking Transactions
 Internet Bank transactions for incoming RTGS/NEFT Transactions
 Internet banking transactions for Allahabad Bank customers and associate banks
 Debit facility where suppliers can directly debit their customer’s account through
internet banking
PRODUCTS AND SERVICES:-
• E-Ticketing
• Allahabad Bank E-Tax
• Bill Payment
• RTGS/NEFT
• E-Payment
• Fund Transfer
• Third Party Transfer
• Demand Draft
• Cheque Book Request
• Account Opening Request
• Account Statement
• Transaction Enquiry
• Demat Account Statement
• Donation
2.5 SWOC Analysis ( Strength, Weaknesses , Opportunities , Challenges )

21. Strengths :
• Greater reach to customers .
• Quicker time to market .
• Ability to introduce new products and services quickly and successfully.
• Ability to understand its customers’ needs.
• Customers are given access to information easily across any location.
• Greater customer loyalty .
• Easy online application for all accounts, including personal loans and mortgage.
• 24 hours account access.
• Quality customer service with personal attention.
Weaknesses:
• Lack of awareness among the existing customers regarding Online banking.
• Obsolesce of technology take place very soon specially in terms of security on internet.
• Procedure for applying for ID and password for using services related to Online banking
takes time.
• Lack of knowledge is found regarding in Online banking in employees of Allahabad Bank
• Implementation of newer technology is little bit complicated
• Employees needs training to obtain knowledge regarding Internet-banking.
Opportunities:
• Approximately 95% of customers are not using internet banking.
• Core competency can be achieved in terms of banking if focus is made on awareness of
internet banking
• Can become 1st
virtual bank of India.
• Concentration of various services should be made using internet banking
Challenges:
• Maintaining Business Edge over competitors in the context of sameness in IT
infrastructure
• Multiple vendor support is necessary for working of highly complex technology

22. • Maintaining secured IT infrastructure for business operations
• Alternative must be there in case of failure of system
CHAPTER 3 -ANALYSIS AND FINDINGS
3.1 Type Of Project - Survey Type
This includes designing questionnaire for collection of data through collection of data from
target respondents, processing and analyzing the data and arriving at conclusions.
3.2 Target Respondents
The target of 150 respondents from the following group has been taken for the study.
Target Group :
The study is based on the sample drawn from the customers of ALLAHABAD BANK providing
the internet banking facility.
3.3 Area Of Research

23. The area of research is ALLAHABAD BANK that have adopted Online Banking. Research is
about to be conducted to the bank customers and staffs with the sample size of 150.
3.4 Tools for Analysis
The following tools are used for the data analysis -
• Percentage Analysis from Survey Report 12-13
• Chi - Square Analysis
3.5 Data Analysis & Interpretation
Table 1 - Age of Respondents
Serial Number Age No. Of Respondents Percentage
1 18-25 63 42
2 25-35 57 38
3 35-45 27 18
4 > 45 3 2
Total 150 100

24. Figure 1 - Age Of Respondents
Interference :
From the above chart 42% of the respondents 18-25 age, 38% of the respondents 25-35age,
18% of the respondents 35-45age , 2% of the respondents >45 and none of the respondents
are greater than 44.
Table 2 - Gender of Respondents
Serial Number Gender No. Of Respondents Round Off
Percentage
1 Male 122 81
2 Female 28 19
Total 150 100

25. Figure No 2 - Gender Of Respondents
Interference :
From the above chart we found 81% of the respondents are male and 19% of the respondents
are female.
Table No.3 - Education Level Of Respondents
Serial Number Particulars No. Of Respondents Percentage
1 10th 6 4
2 12th 9 6
3 U.G 87 58
4 P.G 48 32
Total 150 100

26. Figure No. 3 - Education Level Of Respondents
Interference :
From the above chart 4% of the respondents 10th , 6% of the respondents 12th , 58% of the
respondents U.G, and 32% of the respondents P.G.
Table 4 - Occupation Of Respondents
Serial Number Particulars No. Of Respondents Percentage
A Student 45 30
B Government
Employee
12 8
C IT Sector 60 40
D Other Private Sectors 33 22
Total 150 100

27. Figure No.4 - Occupation Of Respondents
Interference :
From the above chart 30% of the respondents are Students , 8 % of the respondents
Government employee, 40% of the respondents IT sector, and 22% of the respondents other
private sectors.
Table No.5 - Monthly Income Level Of Respondents
Serial Number Particulars No. Of Respondents Percentage
A <5000 6 4
B 5001 - 8000 36 24
C 8001 - 12000 33 22
D 12001 - 15000 30 20
E >15000 45 30
Total 150 100

28. Figure No.5 - Monthly Income Level Of Respondents
Interference :
From the above chart 4% of the respondents are having monthly income <5000 , 24% of the
respondents are having monthly income between 5001-8000 , 22% of the respondents are
having monthly income between 8001-12000 , and 20% of the respondents are having monthly
income between 12001-15000, and 30% of the respondents are having monthly income
>15000.
Table No.6 - Span Of Bank Account Held By the Respondents
Serial Number Particulars No. Of Respondents Percentage
A <1 Yr 9 6
B 1yr - 3yrs 72 48
C 3yrs - 5yrs 57 38
D >5yrs 12 8
Total 150 100

29. Figure No.6 - Span Of Bank Account Held By the Respondents
How long you have a bank account ?
Interference :
From the above chart 6% of the respondents <1Yr, 48% of the respondents 1yr-3yr , 38& of the
respondents 3yrs - 5yrs, and 8% of the respondents >5yrs.
Table No.7 - Projection Of Level Of Internet Banking Usage
Serial Number Particulars No. Of Respondents Percentage
1 Yes 93 62
2 No 57 38
Total 150 100

30. Figure No.7 - Projection Of Level Of Internet Banking Usage
Do you use Internet Banking ?
Interference :
From the above chart,62 % said Yes and 38% said No.
Table No.8 - Span Of Online Account Usage
How long you have an online account?
Serial Number Particulars No. Of Respondents Percentage
A < 1 Yr 35 38
B 1 Yr - 2Yr 26 28
C > 2 Yrs 32 34
Total 93 100

31. Figure No.8 - Span Of Online Account Usage
Interference :
From the above chart 38% of the respondents <1Year , 28% of the respondents1yr - 2 yrs, and
34% of the respondents >2yrs.
Table No.9 - Frequency Of Internet Banking Usage
Serial Number Particulars No. Of Respondents Percentage
1 More than once a
week
43 46.23656
2 Once a week 20 21.50538
3 Once every 2 weeks 10 10.75269
4 Once a month 10 10.75269
5 Other 10 10.75269
Total 93 100

32. Figure No.9 - Frequency Of Internet Banking Usage
Interference :
From the above chart 50% of the respondents are more than once a week, 20% of the
respondents are once a week, 10% of the respondents are once every 2weeks, 10% of the
respondents are once a month and 10% of the respondents are other.
Table No.10 - Online Services Used By the Respondents
Which of the following services used by you through the on-line banking systems ?
Serial Number Particulars No. Of
Respondents
Percentage
1 Online Bill Payment 35 37.6344
2 Fund Transfer 17 18.2795
3 Cheque Book Application 5 5.37634
4 Summary Reports of
Transaction
10 10.7526
5 Accounts Information &
Balance Enquiry
10 10.7526
6 Share Margin Trading Account 16 17.20430
Total 93 100

33. Figure No.10 - Online Services Used By the Respondents
Interference :
From the above chart 35% of the respondents are online bill payment, 20% of the respondents
are fund transfer, 5% of the respondents are checkbook application, 10% of the respondents
are Summary reports of transactions and 10% of the respondents are account information and
balance enquiry, 10% of the respondents are Share margin trading account, 10% of the
respondents are none.
Table No.11 - Opinion on Easy Conduct Of Transaction through Internet Banking
Serial Number Particulars No. Of Respondents Percentage
1 Strongly Agree 8 8
2 Agree 48 52
3 Neutral 17 20
4 Disagree 20 20
5 Strongly Disagree 0 0
Total 93 100

34. Figure No.11 - Opinion on Easy Conduct Of Transaction through Internet Banking
Interference :
From the above chart 8% of the respondents are strongly agree, 52% of the respondents are
Agree , 20% of the respondents are neutral, 20% of the respondents Disagree and 0% of the
respondents Strongly disagree.
Table No.12 - Opinion on Elimination of Timing Constraints through Internet Banking
Serial Number Particulars No. Of Respondents Percentage
1 Strongly Agree 35 38
2 Agree 35 38
3 Neutral 15 16
4 Disagree 4 4
5 Strongly Disagree 4 4
Total 93 100

35. Figure No.12 - Opinion on Elimination of Timing Constraints through Internet Banking
Interference :
From the above chart 39% of the respondents strongly agree,38% of the respondents Agree,
15% of the respondents Moderate, 4% of the respondents Disagree and 4% of the respondents
Strongly Disagree.

36. CHAPTER 4 - CONCLUSION AND RECOMMENDATIONS
Analysis shows that even though the Online Banking facility is having many advantages, it is not
utilized by many people. It shows that the younger generation people are more likely to use
the Internet banking facilities when compared to the middle age and old age people. It is due
to the unawareness of the customers towards the internet banking facility. Also, the people
are finding difficulties in using the Internet banking websites which had created an aversion in
them towards net banking. This can be overcome if the banks conduct sessions on the various
features provided in their Online banking web sites. Even the younger generation people are
feeling insecure to use the online transaction facilities provided by the banks. The internet
banking technology should be made more secure so as it to eliminate the constraint among the
customers.