IMPACT OF INTERNET OR E-BANKING ON CONSUMER SATISFACTION

i
UNIVERSITY OF MUMBAI
PROJECTREPORT
ON
“IMPACT OF INTERNET OR E-BANKING ON CONSUMER SATISFACTION
IN BHIWANDI”
SUBMITTED BY
ALLADA DHARANI APPARAO
THE AWARD OF THE DEGREE OF
BACHELOR OF BANKING & INSURANCE (B&I) SEM-VI
EXAMINATION NO: -
ACADEMIC YEAR 2019-20
GUIDED BY
PROF.CHARMI GONDALIYA
PADMASHRI ANNASAHEB JADHAV BHARATIYA SAMAJ UNNATI MANDAL’S
B.N.N. COLLEGE, BHIWANDI
DIST. THANE 421302

ii
DECLARATION
I, Miss. ALLADA DHARANI APPARAO, Exam No: Student of
B.N.N College, Bhiwandi of T.Y.B.Com (BACHELOR OF BANKING &
INSURANCE), Semester VI, hereby declare that I have completed project on
IN BHIWANDI” is a record of independent research work carried by me during the
academic year 2019-20 under the guidance of PROF.CHARMI GONDALIYA The
information submitted is true and original to the bestof my knowledge.

iii
SELF-FUNDED COURSES
“A” NAAC Accredited
“BEST COLLEGE AWARD 2018-2019”
CERTIFICATE
This is to certify That ALLADA DHARANI APPARAO, Seat No.: of
T.Y.B.Com (BACHELOR OF BANKING & INSURANCE), B.N.N College,
Semester VI (Academic Year 2019-20) has successfully completed the project entitled
IN BHIWANDI” and submitted the project report in partial fulfilment of the
requirement for the award of the Degree of T.Y.Bcom (Banking and Insurance) of
University of Mumbai.
Prof.Charmi Gondaliya Dr. Kalpana Patankar Jain/ Dr. Ashok. D. Wagh
Dr. Vikas Ubale
(Project Guide) (Co-ordinator) (Principal)
Examiner: -
Date: -
College Seal

iv
ACKNOWLEGMENT
To list who all have helped me is difficult because they are so numerous, and the depth is so enormous.
I would like to acknowledge the following as being idealistic channels and fresh dimensions in the
completion of this project.
I take this opportunity to thank the University of Mumbai for giving me chance to do this project. I
would like to thank my Principal, Dr. Ashok D. Wagh for providing the necessary facilities required
for completion of this project. I take this opportunity to thank our Co-ordinators, Dr. Kalpana
Patankar and Dr. Vikas Ubale for their moral support and guidance. I would also like to express my
sincere gratitude towards my project guide Prof.Charmi Gondaliya whose guidance and care made
the project successful.
I would like to thank my College Nirlon Library, for having provided various reference books and
magazines related to my project.
Lastly, I would like to thank each person who directly or indirectly helped me in the completion of the
project especially my parents and peers who supported me throughout my project.

v
CHAPTERS NAME OF THE TOPIC PAGE NO.
1 INTRODUCTION 1 - 49
2 LITERATURE REVIEW 50 - 53
3 RESEARCH METHODOLOGY 54 - 56
4 DATA ANALYSIS, INTERPRETATION AND PRESENTATION 57 - 66
5 CONCLUSION 67
 BIBLOGRAPHY 68
 ANNEXURE 69

1
Chapter -1
INTRODUCTION
Electronic banking is a form of banking in which funds are transferred through an exchange of
electronic signals rather than through an exchange of cash, checks, or other types of paper documents.
Transfers of funds occur between financial institutions such as banks and credit unions. They also
occur between financial institutions and commercial institutions such as stores. Whenever someone
withdraws cash from an automated teller machine (ATM) or pays for groceries using a debit card
(which draws the amount owed to the store from a savings or checking account), the funds are
transferred via electronic banking.
Electronic banking relies on intricate computer systems that communicate using telephone lines. These
computer systems record transfers and ownership of funds, and they control the methods customers
and commercial institutions use to access funds. A common method of access (or identification) is by
access code, such as a personal identification number (PIN) that one might use to withdraw cash from
an ATM machine.
There are various electronic banking systems, and they range in size. An example of a small system is
an ATM network, a set of interconnected automated teller machines that are linked to a centralized
financial institution and its computer system. An example of a large electronic banking system is the
Federal Reserve Wire Network, called Fedwire. This system allows participants to handle large, time-
sensitive payments, such as those required to settle real estate transactions.

2
Definitions
Electronic banking can be defined as the use of electronic delivery channels for banking products and
services and is a subset of electronic finance. The most important electronic delivery channels are the
Internet, wireless communication networks, automatic teller machines (ATMs), and telephone
banking. Internet banking is a subset of e-banking that is primarily carried out by means of the
Internet. The term transactional e- banking is also used to distinguish the use of banking services from
the mere provision of information.
Electronic banking services are offered in two main ways .Either traditional brick and mortar banks
combine traditional and electronic delivery channels (brick and click banks) or banks offer their
products and services only- or predominantly- through electronic distribution channels without having
a branch network (other than a physical presence as an administrative head office or non-branch
facilities such as kiosks or ATMs). These banks are called “virtually banks”, “branchless” or “Internet-
only” banks. Withdrawal and deposit of funds may be made through ATMs or other remote delivery
channels owned by these virtual banks or other institutions. Setting up licensed virtual banks can, in
principle, be done in three ways.
BCBS (2001): “...Electronic banking, or e-banking, includes the provision retail and small value
banking products and services through electronic banking channels as well as large value electronic
payments and other wholesale banking services delivered electronically.”
Sometimes Internet banking is defined as a subset of PC banking, which also includes online banking.
In contrast to Internet banking, online banking refers to bank transactions within closed networks
(Deutsche Bundesbank, 2000).

3
HISTORY OF ELECTRONIC BANK IN INDIA:
The evolution process of latest service delivery mechanism through internet i.e. e-banking started from
the early 1980s. In late 1980s, the term online got popularised and it was referred to a banking medium
of using a terminal, keyboard and monitor to access the banking system through a phone line. Another
term used for this was ‘Home Banking’ and in it, customers were using a numeric keypad to send
tones down a phone line with instructions to the bank. In 1981, e- banking has started in New York
with offering home banking service using video tax system by Citi Bank, Chase Manhattan Bank,
Chemical bank and manufacturers Hanover bank. Although due to failure of video tax system, Home
Banking was not able to gain popularity except in France and UK.
In 1983, Bank of Scotland provided UK’s first home online banking service to the banking customers
of Nottingham Building Society. This online banking service was based on Prestel system of UK and
used a computer like BBC Micro or keyboard connected to the telephone and television system. This
system was called home-link and it enabled customers to view their bank statements online, online
fund transfer and online bill payment. To pay bills or transfer funds, customers need to send a written
instruction having details of intended transaction to Nottingham Building Society who set the details
upon the home-link system. The usual recipients of this service were electric company, Gas Company,
telephone companies and other banks. The account holder has to provide details of the payment
through Prestel into Nottingham Building Society system. Then, a cheque of payment amount has to
be sent by Nottingham Building Society to the payee and an instruction giving details of the payment
was send to the account holder. Later, BACS was used to directly transfer the payment.
In Oct. 1994, Stanford Federal Credit Union was the first financial institution that provided internet
banking facility to its all members. Today, a number of banks are functioning as internet only banks.
These internets only banks do not have a physical bank branches like their predecessors. They
differentiate themselves by providing better rate of interest and internet.

4
E-banking in India
In India, since 1997, when the ICICI Bank first offered internet banking services, today, most new-
generation banks offer the same to their customers. In fact, all major banks provide e-banking services
to their customers.
Popular services under e-banking in India
 ATMs (Automated Teller Machines)
 Telephone Banking
 Electronic Clearing Cards
 Smart Cards
 EFT (Electronic Funds Transfer) System
 ECS (Electronic Clearing Services)
 Mobile Banking
 Internet Banking
 Telebanking
 Door-step Banking
Further, under Internet banking, the following services are available in India:
1. Bill payment – Every bank has a tie-up with different utility companies, service providers,
insurance companies, etc. across the country. The banks use these tie-ups to offer online
payment of bills (electricity, telephone, mobile phone, etc.). Also, most banks charge a nominal
one-time registration fee for this service. Further, the customer can create a standing instruction
to pay recurring bills automatically every month.
2. Funds transfer – A customer can transfer funds from his account to another with the same
bank or even a different bank, anywhere in India. He needs to log in to his account, specify the
payee’s name, account number, his bank, and branch along with the transfer amount. The
transfer is effected within a day or so.
3. Investing – Through electronic banking, a customer can open a fixed deposit with the bank
online through funds transfer. Further, if a customer has a demat account and a linked bank
account and trading account, he can buy or sell shares online too. Additionally, some banks
allow customers to purchase and redeem mutual fund units from their online platforms as well.
4. Shopping – With an e-banking service, a customer can purchase goods or services online and
also pay for them using his account. Shopping at his fingertips.

5
First online banking services by region
The United Kingdom
Online banking started in the United Kingdom with the launch of Nottingham Building Society
(NBS)'s Homelink service in September 1982, initially on a restricted basis, before it was expanded
nationally in 1983.Homelink was delivered through a partnership with the Bank of Scotland and
British Telecom's Prestel service.The system used Prestel viewlink system and a computer, such as the
BBC Micro, or keyboard (Tandata Td1400) connected to the telephone system and television set. The
system allowed users to "transfer money between accounts, pay bills and arrange loans... compare
prices and order goods from a few major retailers, check local restaurant menus or real estate listings,
arrange vacations... enter bids in Homelink's regular auctions and send electronic mail to other
Homelink users."In order to make bank transfers and bill payments, a written instruction giving details
of the intended recipient had to be sent to the NBS who set the details up on the Homelink system.
Typical recipients were gas, electricity and telephone companies and accounts with other banks.
Details of payments to be made were input into the NBS system by the account holder via Prestel. A
cheque was then sent by NBS to the payee and an advice giving details of the payment was sent to the
account holder. BACS was later used to transfer the payment directly.
The United States
In the United States in-home banking was "is still in its infancy" with banks "cautiously testing
consumer interest" in 1984, a year after online banking went national in the UK.At the time Chemical
Bank in New York was "still working out the bugs from its service, which offers somewhat limited
features".The service from Chemical, called Pronto, was launched in 1983 and was aimed at
individuals and small businesses. It enabled them to maintain electronic checkbook registers, see
account balances, and transfer funds between checking and savings accounts. The other three major
banks — Citibank, Chase Bank and Manufacturers Hanover — started to offer home banking services
soon after. Chemical's Pronto failed to attract enough customers to break even and was abandoned in
1989. Other banks had a similar experience.
Since it first appeared in the United States, online banking has been federally governed by the
Electronic Funds Transfer Act of 1978.

6
France
After a test period with 2,500 users starting in 1984, online banking services were launched in 1988,
using Minitel terminals that were distributed freely to the population by the government.
By 1990, 6.5 million Minitels were installed in households. Online banking was one of the most
popular services.
Online banking services later migrated to Internet.
Japan
In January 1997, the first online banking service was launched by Sumitomo Bank.By 2010, most
major banks implemented online banking services, however, the types of services offered
varied.According to a poll conducted by Japanese Bankers Association (JBA) in 2012, 65.2% were the
users of personal internet banking.
China
In January 2015, WeBank, the online bank created by Tencent, started 4-month-long online banking
trail operation.
Australia
In December 1995, Advance Bank acquired by St.George Bank, started to provide customers with
online banking with the rollout of the C++ Internet banking program.
India
In 1998, ICICI Bank introduced internet banking to its customers.
Brazil
In 1996, Banco Original SA launched its online-only retail banking.In 2019 new banks began to
emerge as the Conta Simples, focused only for companies.

7
Levels of E-banking:
Banks offer various levels of services through electronic banking platforms. These are of three
levels:
Level 1 – This is the basic level of service that banks offer through their websites. Through this
service, the bank offers information about its products and services to customers. Further, some banks
may receive and reply to queries through e-mail too.
Level 2 – In this level, banks allow their customers to submit instructions or applications for different
services, check their account balance, etc. However, banks do not permit their customers to do any
fund-based transactions on their accounts.
Level 3 – In the third level, banks allow their customers to operate their accounts for funds transfer,
bill payments, and purchase and redeem securities, etc.
Most traditional banks offer e-banking services as an additional method of providing service. Further,
many new banks deliver banking services primarily through the internet or other electronic delivery
channels. Also, some banks are ‘internet only’ banks without any physical branch anywhere in the
country.

8
Types of banking websites:
banking websites are of two types:
1. Informational Websites – These websites offer general information about the bank and its
products and services to customers.
2. Transactional Websites – These websites allow customers to conduct transactions on the
bank’s website. Further, these transactions can range from a simple retail account balance
inquiry to a large business-to-business funds transfer. The following table lists some common
retail and wholesale e-banking services offered by banks and financial institutions:

9
TYPES OF E-BANKING:
AUTOMATED TELLER MACHINE(ATM):
An automated teller machine (ATM) is an electronic telecommunications device that enables
customers of financial institutions to perform financial transactions such as cash withdrawals, deposits,
funds transfers, or account information inquiries, at any time and without the need for direct
interaction with bank staff.
ATMs are known by a variety of names, including automatic teller machine (ATM) in the United
States In Canada, the term automated banking machine (ABM) is used, although ATM is also very
commonly used in Canada, with many Canadian organizations using ATM over ABM.In British
English, the terms cashpoint, cash machine and hole in the wall are most widely used.Other terms
include any time money, cashline, nibank, tyme machine, cash dispenser, cash corner, bankomat, or
bancomat. Many ATMs have a sign above them indicating the name of the bank or organisation that
owns the ATM, and possibly including the networks to which it can connect. ATMs that are not
opetaed by financial institution are known as "white label" ATMs.

10
TELE BANKING:
Without visiting the bank one can receive the services of banks. The device used for this purpose is
called tele banking. This is a fast and convenient way of obtaining services from the banks by using a
telephone. One can receive the services such as information about account, conduct of selected
transactions, report of loss of ATM card, debit card, credit card or cheque book, etc. To avail this
facility any bank customer can apply to the bank. However, the bank manager has discretion to reject
this facility.
The facility can be available for all customers having savings or current accounts in their individual
capacity in the bank offering this facility. The information transactions are obtained from a PC loaded
with the latest information of the accounts from bank’s records through periodic “Data pumping”
exercise an interval determined by the bank based on their perception of customer’s requirements.
The customers are given passwords in addition to their account numbers which are their log-in ID. The
customers should be very careful to maintain secrecy of passwords and PIN numbers. The customer
has to call from a telephone with tone dialing facility. The customer can ask to mail the cheque book.
Such cheque book is couriered only at the address registered with the bank.

11
SMART CARD:
A smart card, chip card, or integrated circuit card (ICC) is a physical electronic authorization
device, used to control access to a resource. It is typically a plastic credit card -sized card with an
embedded integrated circiut (IC) chip.Many smart cards include a pattern of metal contacts to
electrically connect to the internal chip. Others are contactless some are both. Smart cards can provide
personal identification, authentication, data storage, and application processing.Applications include
identification, financial, mobile phones (SIM), public transit, computer security, schools, and
healthcare. Smart cards may provide strong security authentication for single sign on (SSO) within
organizations. Numerous nations have deployed smart cards throughout their populations.
The universal integrated circuit card or SIM card, is also a type of smart card. As of 2015, 10.5 billion
smart card IC chips are manufactured annually, including 5.44 billion SIM card IC chips.
The basis for the smart card is the silicon integrated circuit(IC) chip.It was invented by Robert noyce
at Fairchild Semiconducter in 1959, and was made possible by Mohamed m atalla’s silicon surface
passivation process (1957) and Jean Heornis's planner proccess(1959).The invention of the silicon
integrated circuit led to the idea of incorporating it onto a plastic card in the late 1960s. Smart cards
have since used MOS integrated circiut chips, along with MOS memory technologies such as flash
memory and EEPROM(electrically erasable programmable read only memory).
Contactless smart cards do not require physical contact between a card and reader. They are becoming
more popular for payment and ticketing. Typical uses include mass transit and motorway tolls. Visa
and MasterCard implemented a version deployed in 2004–2006 in the U.S., with Visa's current
offering called Visa Contactless. Most contactless fare collection systems are incompatible, though the
MIFARE Standard card from NXP Semiconducters has a considerable market share in the US and
Europe.

12
Use of "Contactless" smart cards in transport has also grown through the use of low cost chips NXP
Mifare Ultralight and paper/card/PET rather than PVC. This has reduced media cost so it can be used
for low cost tickets and short term transport passes (up to 1 year typically). The cost is typically 10%
that of a PVC smart card with larger memory. They are distributed through vending machines, ticket
offices and agents. Use of paper/PET is less harmful to the environment than traditional PVC cards
Greenpeace. Confidex See also transport/transit/ID applications.

13
DEBIT CARD:
A debit card is a payment card that deducts money directly from a consumer’s checking account to pay
for a purchase. Debit cards eliminate the need to carry cash or physical checks to make purchases. In
addition, debit cards, also called check cards, offer the convenience of credit cards and many of the
same consumer protections when issued by major payment processors like Visa or Mastercard.
debit cards do not allow the user to go into debt, except perhaps for small negative balances that might
be incurred if the account holder has signed up for overdraft protection.
Debit cards serve a dual purpose: They allow the user to withdraw money from his or her checking
account through an ATM or through the cash-back function many merchants offer at the point of sale.
In addition, they also allow the user to make purchases.
Debit cards serve a dual purpose: They allow the user to withdraw money from his or her checking
account through an ATM or through the cash-back function many merchants offer at the point of sale.
In addition, they also allow the user to make purchases.
ATM cards, by contrast, only allow the user to withdraw money from an ATM, while credit cards only
allow purchases unless the credit card holder has a PIN-enabled cash advance feature (and the cash
advance will incur interest, unlike withdrawing cash from a checking account).

14
CREDIT CARD:
A credit card is a thin rectangular slab of plastic issued by a financial company, that lets cardholders
borrow funds with which to pay for goods and services. Credit cards impose the condition that
cardholders pay back the borrowed money, plus interest, as well as any additional agreed-upon
charges.
The credit company provider may also grant a line of credit (LOC) to cardholders, enabling them to
borrow money in the form of cash advances.Issuers customarily pre-set borrowing limits, based on an
individual's credit rating. A vast majority of businesses let the customer make purchases with credit
cards, which remain one of today's most popular payment methodologies for buying consumer goods
and services.
Most major credit cards, which include Visa, MasterCard, Discover, and American Express, are issued
by banks, credit unions, or other financial institutions. Many credit cards attract customers by offering
incentives such as airline miles, hotel room rentals, gift certificates to major retailers and cash back on
purchases.
To generate customer loyalty, many retail establishments issue branded versions of major credit cards,
with the store's name emblazoned on the face of the cards. Although it's typically easier for consumers
to qualify for a store credit card than for a major credit card, store cards may only be used to make
purchases from the issuing retailers, which may offer cardholders perks such as special discounts,
promotional notices, or special sales.
Secured credit cards are a type of credit card where the cardholder secures the card with a security
deposit. Such cards offer limited lines of credit that are equal in value to the security deposits, which
are refunded after cardholders demonstrate repeated and responsible card usage. Also known as
"prepaid" and "semi-secured" credit cards, these cards are frequently sought by individuals with poor
credit histories

15
E-CHEQUE:
E-CHEQUE Recent years have seen a tremendous increase in e-commerce transactions. The success
of e-commerce relies on developing adequate payment technologies. One such technology is e-
Cheque. An e- Cheque is an electronic document which substitutes the paper check for online
transactions. Digital signatures (based on public key cryptography) replace handwritten signatures.
Definition of 'Electronic Cheque' A form of payment made via the internet that is designed to perform
the same function as a conventional paper cheque. Because the cheque is in an electronic format, it can
be processed in fewer steps and has more security features than a standard paper cheque. Security
features provided by electronic cheque include authentication, public key cryptography, digital
signatures and encryption, among others.
The e-Cheque is compatible with interactive web transactions or with email and does not depend on
real-time interactions or on third party authorizations. It is designed to work with paper cheque
practices and systems, with minimum impact on payers, payees, banks and the financial system.
Payers and payees can be individuals, businesses, or financial institutions such as banks. E- Cheques
are transferred directly from the payer to the payee, so that the timing and the purpose of the payment
are clear to the payee.

16
E-WALLET:
E-wallet is a type of electronic card which is used for transactions made online through a computer or
a smartphone. Its utility is same as a credit or debit card. An E-wallet needs to be linked with the
individual’bank account to make payments.
E-wallet is a type of pre-paid account in which a user can store his/her money for any future online
transaction. An E-wallet is protected with a password. With the help of an E-wallet, one can make
payments for groceries, online purchases, and flight tickets, among others. E-
wallet has mainly two components, software and information. The software component stores personal
information and provides security and encryption of the data. The information component is a database
of details provided by the user which includes their name, shipping address, payment method, amount
to be paid, credit or debit card details, etc. For setting up
an E-wallet account, the user needs to install the software on his/her device, and enter the relevant
information required. After shopping online, the E-wallet automatically fills in the user’s information
on the payment form. To activate the E-wallet, the user needs to enter his password. Once the online
payment is made, the consumer is not required to fill the order form on any other website as the
information gets stored in the database and is updated automatically.

17
NATIONAL ELECTRONIC FUND TRANSFER:
National Electronic Funds Transfer (NEFT) is an electronic funds transfer system maintained by
the Reserve Bank of India (RBI). Started in November 2005, the setup was established and maintained
by Institute for Development and Research in Banking Technology (IDRBT).[1] NEFT enables bank
customers in India to transfer funds between any two NEFT-enabled bank accounts on a one-to-one
basis. It is done via electronic messages.
Unlike real-time gross settlement (RTGS), fund transfers through the NEFT system do not occur in
real-time basis. NEFT settles fund transfers in half-hourly batches with 23 settlements occurring
between 00:30 hrs. to 00:00 hrs.
From December 16, 2019, there would be 48 half-hourly batches occurring between 00.30 am to 00:00
am everday regardless of a Holiday or otherwise,[2]
As of November 30, 2019, NEFT facilities were available at 1,48,477branches/offices of 216 Banks
across the country and online through the website of NEFT-enabled banks. NEFT has gained
popularity due to the ease and efficiency with which the transactions can be concluded.
There is no limit – either minimum or maximum – on the amount of funds that could be transferred
using NEFT.
The customer fills an application form providing details of the beneficiary (like name, bank, branch
name, IFSC, account type and account number) and the amount to be remitted.

18
E-STATEMENT:
Since the late 1990s, banks have encouraged customers to receive statements electronically. The
switch normally requires express customer consent, which is typically obtained through an online
banking system. Producing electronic statements saves the financial institutions the significant cost of
printing statements, folding them into envelopes and postage. In addition, customers could receive
statements more promptly, and not be dependent on the postal service for delivery. The customer could
print the statement at their premises if they needed one, or have access to historic statements on the
institution’s website as needed. Other parties may be authorised to have access to the customer’s
financial information on the institution’s website.
Electronic statements may be sent as attachments to emails or, as a security measure, as a reminder
that a new statement is available on the financial institution's website. Whether such statements are
transmitted as attachments or from the website, they are commonly generated in PDF format, to reduce
the ability of the recipient to electronically alter the statement.
Due to identity theft concerns, an electronic statement may not be seen as a dangerous alternative
against physical theft as it does not contain tangible personal information, and does not require extra
safety measures of disposal such as shredding. However, an electronic statement can be easier to
obtain than a physical one through computer fraud, data interception and/or theft of storage media.
OTHER FORMS OF ELECTRONIC BANKING:
 Direct Deposit
 Electronic Bill Payment

19
Ways E-banking makes your life easier
Banking online makes your life easier. All you need is a computer, a tablet or a smartphone with an
internet connection.
Tracking your account activity anytime, anywhere
All your payments, withdrawals, deposits and other account details are available at your fingertips.
Whether it is lunch hour or midnight, access your account in seconds. As you receive real time
transaction alerts, you can also be aware of any fraudulent activity.
Bill paymentsmade easy
Bid adieu to the cheques, long queues or late fees. You can give standing instructions to your bank to
pay your monthly utility bills such as electricity, telephone and mobile, credit card and insurance
premium. You don't even have to remember the due dates, the bank will ensure your payment is done
month after month on the stipulated date without fail.
Transfer funds in a jiffy
Let’s say your mother is shopping and realises that she doesn’t have enough money in her account to
make the purchases. You can just pull out your smartphone, transfer money instantly through the
IMPS facility and you’re done.
You can transfer any amount from one account to another of the same or any other bank using NEFT
or RTGS facilities, anywhere in the country.
Wealth management
Managing your wealth is easier done online. If you don’t want your money lying around idle, you can
open an fixed deposit and get better returns. With an interlinked investment/demat account, you can
also trade in the stock market and invest in mutual funds.
The transaction amount will be automatically debited/credited to your bank account when you invest
in stocks or mutual funds. You can also take a disciplined way to invest in mutual funds by taking the
SIP (Systematic Investment Plans) route.

20
A wide variety of services
Issue a demand draft to your friend or relative and have it delivered to their home in a far-off city,
apply for a personal loan or a credit card, recharge your prepaid phone, get an annual statement of your
account for tax purposes delivered to your home and much more. You can not only pay your credit
card bills online but also…
 Get a loan on your card
 Apply for an additional card
 Request a credit line increase
 Report lost card
Online Shopping
Armed with a secure multi-level PIN system, you can now make purchases from your favourite online
shopping stores. Book tickets online for a movie or plan a holiday, travel by bus, train or flight with
your debit or credit card.
There are more reasons for you to start using online banking than those stated here. With so much time
saved, you can now spend more time doing the things that you actually like.

21
FEATURES OF E-BANKING:
FasterTransactions:
E-banking provides the facility of instant transfer of funds to its customers. It saves the time of
customers as funds get transferred very fast from one account to another. Whole system of E-banking
is automated & works over the internet.
People don’t need to wait in queue to transfer their funds or pay off their bills; they can easily do it
through their device. It saves the time of customers as they can easily access their account with the
help of their device.
Lowers TransactionCost:
E-Banking reduces the cost involved in doing financial transactions. Electronic transactions are termed
as the cheapest medium of doing transactions. It has reduced the manpower requirements as workload
is reduced.
Whole transactions are done online over the internet. It has also reduced the paperwork in
organisations as all transactions are recorded digitally. There is no need to manually enter & store each
record.
Provides 24×7 Service:
This is the most important feature of E-banking. E-Banking provides customers with all-time access
facility to their accounts. Customers can easily access their account anytime & from anywhere with no
limitations. It provides convenience to the customers as they can perform transactions as per their
wish.
Reduces The Chances of Error:
E-banking has reduced the chance of human error. It has reduced the role of the human in the whole
transaction process. E-banking system works fully automated over the internet. All transactions are
recorded & stored digitally. There is no need to manually maintain each & every record in books of
account. So, the chances of human error are minimised.

22
Develops Loyalty in Customers:
E-banking helps the banks to develop large number of loyal customers. Through E-banking service
banks are able to serve their customers well. They are able to provide fast & better service to
customers.
Customers are able to get a user-friendly interface from the banking website. They are able to avail
services any time even from their home comfort. This develops a sense of loyalty among customers
when they are happy with the services of their banks.
Removes Geographical Barriers:
E-Banking has removed all distance barriers for performing transactions. It has removed all distance
barriers that customers used to face in the traditional method of performing transactions.
E-banking provides the facility of instant transfer of funds both nationally & internationally. All
systems are connected to each other online which facilitate easy transfer of funds.
Provides BetterProductivity:
It has an efficient role in increasing the productivity of the businesses. Whole financial transaction
system is supported by automated software systems. These systems are specially designed for doing
transactions of funds.
It reduces the time required for doing transactions & also reduces the workload of business
organisations. Everything is stored digitally & they don’t need to store anything manually. It increases
the overall productivity of the businesses.
Reduce Frauds in Transactions:
Another important feature of e-banking is that it helps in continuously monitoring of accounts. You
can easily track each & every transaction of your accounts. You can easily track if any fraud is done
by anyone in financial transactions.

23
ADVANTAGES OF E-BANKING:
1.Benifits and rewards:
A lot of online banks offer more benefits and rewards to their customers that not only benefit the bank
but also benefit their customers.
Online banks are willing to offer higher interest rates and better transfer services to their customers
who regularly use online banking.
This happens partly due to the fact that the banks have to bear reduced costs when serving online
customers.
Therefore, the overall banking experience is obviously better than that of visiting a physical bank
branch and handling the same transaction.
2. Notifications andAlerts:
Customers are instantly alerted or notified about new changes in the system.
From changes in the policy to logins from new devices, customers get instant notifications and alerts.
However, if you’re associated with a real bank, you would probably get a text alert or a customer
service agent will call you to notify about major changes. Chances are, you’re missing out on a lot of
changes.
Banks also endorse new products, services and schemes like new investment options, changes in the
loan policies, etc. to online customers first.
3. FasterTransactions:
You don’t have to wait for your turn to transfer funds – you can do that with a single tap of your finger
or a single click of your mouse.
Funds from one account will be transferred to another in a matter of a few seconds. Anything that
requires quick payments can be done with the help of e-banking.

24
4. Convenience:
You can conveniently handle your account transactions without all the hassle of being in the queue on
a sultry afternoon.
E-banking is extremely convenient if you have a decent internet connection (wifi or 3G/4G data).
5. Security:
With internet banking, you can always monitor your account activities.
This not only serves as a history of all the transactions but also helps you identify threats and
suspicious activities before any severe damage can be done to your account.
Online accounts are protected with encryption software that ensures complete safety to the user. Alerts
related to passwords and digital signatures are sent periodically to maintain the security of the account.
6. EasyAccess:
Customers can enjoy easy access with online accounts by simply typing in the log-in credentials. In
addition to that, customers can also handle several accounts at a time.
Since the internet remains the medium of connection, users can also access different accounts in
different banks from a single device.
7. Speedand Efficiency:
In a hurry to apply for an educational loan? Or quickly need to pay bills? Or perform any banking
transaction without having to waste half your day? Do it via the internet.
There’s no waiting nor do you have to rush through anything – you can take your time and perform all
banking transactions with patience and it will be done in nearly 1/10th the time spent on actually
driving down to the bank and getting it done.

25
8. LesserLimitations:
Traditional banks have several constraints like operating hours, the physical location of the bank
branch, holidays, etc.
You don’t have to wonder if it’s a holiday with online banking, or what time is it to perform a
transaction.
Be it Sunday or the middle of the night and you will still be able to do everything (and even more)
through their app or website as it’s available twenty-four hours a day, throughout the year.
9. More Features:
Apart from being flexible, some banks go out of their way to satisfy their customers by not penalizing
on withdrawals on the certificate of deposits, letting customers maintain accounts with no minimum
balance, etc.

26
DISADVANTAGES OF E-BANKING:
1.Difficult for Beginners:
Newbies often face difficulty in trying to get the hang of e-banking.
Initially, customers are scared of losing their money and are often hesitant to explore all the options
and features that are available on the website or on the app.
New users often give up and stick to traditional banking if timely assistance isn’t provided.
2. Trust and Responsibility:
Fake websites and phishing sites are common in this age of technology. Can you really trust all
websites? Is it wise to trust an online site with all your money? What if the website folds up and all
your money is gone? This wouldn’t happen in a real bank.
There is trust between the bank and their customers – you know your money is safe with the bank –
because they take responsibility for your money. Real banks are permanent and reliable while some
websites are not.
3. Inconvenience:
Sure, online banks are open throughout the year but they are a serious cause of inconvenience in
certain instances.
For example, if you get locked out of your account you will be unable to perform any banking
transactions.
However, in a real bank, you establish relationships with the staff, who know you on a personal level
and will be willing to assist you in such cases.
You wouldn’t have to be on the phone explaining your situation to an unknown customer service agent
which by the way, might also take several days.
Also, a few online banks don’t allow cash deposits. To deposit cash, you will be required to email a
check and transfer money from another account or bank, or use their e-check deposit service.

27
4. Inability to Handle Complex Transactions:
While you can easily pay bills and transfer funds, you can’t perform complex transactions online.
When a large sum of money is involved, it is advisable to visit a real bank and sort it out in-person
rather than doing it online.
5. Financial Jargon:
Financial jargon can often get between you and your money. Knowledge is power-or, in this case,
knowledge is money.
Though financial literacy can’t be achieved overnight, it can be helped along by a grasp of the basic
terms that are commonly used by advisors, analysts, economists, and commentators.
6. Security Issues:
Sure, most banks are well-reputed and established, there are times when you face security issues.
There’s always a risk of actual and/or identity theft. It’s also possible to get unauthorized access to
your account via a stolen or hacked log-in credentials.
7. TechnologyIssues:
If you don’t have a decent connection or there are bugs in the software, or say, there is a power cut or
maybe the servers have gone down – websites are bound to crash and you will undoubtedly face a lot
of technological issues.
While you may get various types of customer service at the moment but sooner or later, you will get
frustrated. However, someone is always around to help you in a real bank.
8. Virtual Assistance:
When you need assistance during e-banking, your concern is generally assigned to an anonymous
customer service agent who is unlikely to know you. Wouldn’t you rather talk to a personal banker
when you’re in a fix than an unknown agent? A personal banker will also know your transaction
history, your personal details and will be in a better position to assist you.

28
9. ComplicatedWebsites:
Some websites look like a page straight from a super complex scientific experiment. Written in a
secret code language with bizarre fonts and colors.
I mean, sure some websites are simple and you can get all the things done in a jiffy.
But some websites are downright complicated and confusing. With pop-ups, errors, links, and
interlinks, redirections to probably a million pages, it gets really difficult to understand.

29
Risks in E- Banking
As we cannot deny the advantages offered through e-banking, same way we cannot ignore the risks
involved in e-banking. Bank should maintain adequate leverage between the advantages and risks of e
banking. Although, marketing and advertising campaign initiated by banks are encouraging a number
of customers to adapt e-banking, but for managing such a huge customer base banks need to prepare
their internal system on prior basis. To have a deep understanding about the risks of e- banking system,
it is categorized in various categories, so that bank can effectively design risk management strategies
for e-banking. As now e-banking enabled banking beyond the geographical boundaries, banks have
local as well as international customers to process their requests or solve their problems. Complexity
of e-banking system has increased due to its close network that involves various service delivery mode
offered by a bank and open network, such as internet facility that is subject to security and reputational
risks. It also includes operational risk, legal & regulatory risks, systematic risks, credit risks, market
risks and liquidity risks. To achieve efficiency in e-banking, banks should properly identify, manage
and control the risks involved in it.
Strategic Risk
As e-banking is very new phenomenon, for strategic risk, there is possibility that senior management
people would not be known about its prospects & challenges. People, who are good in technological
skills not necessarily good in banking skills, take the initiative toward e-banking adoption. Initiative
taken by internet users originated in unclear pattern and in various stages. E-initiatives can be
expensive and non recoverable. Even more to it, they are mostly viewed as the loss- leaders to increase
market share even it may not encourage those clients that a bank expects and may have unknown
impact on existing business lines. To face this risk, bank should have a definite strategy at the top level
and that should comprise the effects of e-banking at the relevant areas. This strategy should be
properly communicated across the business and should have a proper and adequate business plan with
a performance review system.
Business risks
These risks have great importance in any business. As a e-banking is a contemporary issue, people are
unaware about the fact that whether e-banking users are having same features as conventional
consumers or not. E-banking users not have same features as traditional banking customers. For
example, Customers who are requested some services to be conducted immediately, lead to
inappropriate existing score card model, therefore it resulted into either high rejection rate or incur
inadequate risk covering charges. Furthermore, banks could not assure the effective credit quality at a
distance comparatively to they provide serving in branch in person. As well as analysing the quality
and nature of collateral security from a distance, specifically if it is of area not familiar to bank. The

30
exact forecast of cash inflow & outflow is very difficult so it pose a challenge to maintain an adequate
level of liquidity. Although, these risks are not new and banking staff have significant experience in
facing them but still need to be addressed properly.
Operations risk
Operating risks faced by banking institution may be categorised in 3 ways:
(a) volume forecasts
(b) management information systems and
(c)Outsourcning.
Exact anticipation of banking transactions is very difficult. Main risk in e-banking service environment
is the uncertainty to predict the volume and number of banking transactions. When a bank is not able
to manage the demand, bank has to face reputational risk which resulted in financial loss and
sometimes compromising in security if additional system configured to manage it properly. To
overcome these risks bank should
1. undertake market research,
2. adopt systems with adequate capacity and scalability,
3. undertake proportionate advertising campaigns and
4. Ensure that they have adequate staff coverage and develop a suitable business
continuity plan.
In other words, this is new unknown area and banks require operating
cautiously.
Security Risks
Another major problem which is attracting attention in recent years is the security of information
collected by banks. With the advent of e-banking the risk of leaking information has increased
considerably. In the past the banks functioned in an environment which was secluded where there were
no security issues but with interconnected banking operations the banks are exposed to security risks
as they function in an open environment. They have to consciously monitor these risks
constantly and manage them whenever necessary. There are majorly three kinds of security breaches,
(i) those breaches which have a prior criminal motive (eg. fraud, having access to financial information
which can be used for commercial purposes), (ii) breaches undertaken by casual hackers (these
breaches may lead to a website not working properly, giving false information or not providing any
service at all, may even ultimately lead to a crash of website) and (iii) there may be some defect in the
design of the website which may lead to leak of information). All these type of breaches lead to serious
financial, legal or reputational repercussions. Many banks are finding that these systems are hacked
several times a day but the losses are minor in the nature. However the banks should develop some

31
kind of Burglar Alarm to trace the number of and the frequency of these unsuccessful attempts to hack
the security of inform. Those computer systems that contain details of high valued payments or which
contains highly sensitive confidential information must be properly guarded. An adequate security
system must protect such information. Generally, therefore the greater is the risk of loss the greater the
possibility that such a loss may occur.
Although the banks are trying to secure overall systems but more attention needs to be paid to the
separation of internal systems and poor internal security. One possibility which may lead to hacking of
website is gaining entry through a less guarded less valued website and then it gaining entry into a
high value system through banks’ internal network. It is being contemplated that banks erect firewalls
(i.e. software that prevents an unauthorised person from gaining entry into the system) among their
different systems. This would ensure minimisation of damage even if an external breach does occur.
The greatest risk to security however is from internal sources that are the employees of the
organisation and the contractors. Even though there are security risks involved in e-banking, it could
also eliminate some of the mistakes of manual processing of information (customers are directly
contacted through the bank’s system rather than customers contacting the bank first and then bank
eliciting information from them). With the development of e-banking practices and management of
security risks, large gains could be achieved.
The banks should proactively concentrate on addressing the risks involved effectively. They must
devise a strategic approach toward safety of data establishing correct working procedures and security
controls into systems and networks. A focussed approach on information security needs to be
developed which should include testing of systems’ security controls (i.e. penetration testing),
monitoring of new competitors and keeping an eye on the weak spots, reviewing market developments
and recruiting adequate staff with expertise to manage information security and its security control
system. The above mentioned concerns would be taken up by line managers when they supervise
banking operations, they should used reassurances as these accounts.
Reputational risks
The reputational risks of banks have increased a great deal with increased use of internet by them.
Through the internet everybody has knowledge of all good or bad incidents that take place in a quick
span of time. Rumours on the net can be exaggerated as forecasts. The communication with the help of
the internet is undertaken at an alarming speed, this give perhaps no time for anyone to respond or

32
for managers to control such rumours. The crisis management of the banks must be in place and the
PR department should be able to handle such occurrences (whether they are real or hoax). Last
reputational risk involves that the products which are sold with the help of the net are properly
marketed in such a way that the bank may not be charged with using wrong marketing practices,
exactly in the same manner as in the physical world. Banks need to ensure that the rights of the
consumers are adequately protected.
International developments
E-banking exposes the banks to certain peculiar risks. Supervision of banking activities has to be
conducted at a global level if it has to be done effectively. This is essential because e-banking is by
nature non- territorial customers can very easily access the site and not only elicit the required
information but can also purchase the products of their choice. The regulators have to understand and
efficiently deal with the regulatory problems of global e-banking. Cross border supervision
mechanisms have been established agreements over home or host responsibilities (within the
members), bilateral agreements for sharing of information and setting benchmarks which all domestic
as well as bankers abroad are expected to fulfil. The ultimate purpose is that a common mechanism of
supervision, strong enough is to be developed which matches the physical banking environment.
Credit risk
Generally, a financial institution’s credit risk is not increased by the mere fact that a loan is originated
through an e-banking channel. However, management should consider additional precautions when
originating and approving loans electronically, including assuring management information systems
effectively track the performance of portfolios originated through e-banking channels. The following
aspects of on-line loan origination and approval tend to make risk management of the lending process
more challenging. If not properly managed, these aspects can significantly increase credit risk.
Liquidity, interest rate, price or market risks
Funding and investment-related risks could increase with an institution’s e-banking initiatives
depending on the volatility and pricing of the acquired deposits. The Internet provides institutions with
the ability to market their products and services globally. Internet-based advertising programs can
effectively match yield-focused investors with potentially high-yielding deposits. But Internet-
originated deposits have the potential to attract customers who focus exclusively on rates and may
provide a funding source with risk characteristics similar to brokered deposits. An institution can
control this potential volatility and expanded geographic reach through its deposit contract and account
opening practices, which might involve face-to-face meetings or the exchange of paper
correspondence.
The institution should modify its policies as necessary to address the following e-
banking funding issues:

33
(a) Potential increase in dependence on brokered funds or other highly
rate-sensitive deposits;
(b) Potential acquisition of funds from markets where the institution is not
licensed to engage in banking, particularly if the institution does not establish,
disclose, and enforce geographic restrictions;
(c)Potential impact of loan or deposit growth from an expanded Internet market,
including the impact of such growth on capital ratios;

34
Challenges of Internet Banking
Indian internet banking sector is still prevailing in its primary level of growth. Only some banks are
providing certain basic services only. Only limited number of private sector banks like HDFC & ICICI
Bank is fully computerised and they are providing all services through the use of internet. One of the
major factors responsible other Indian banks upgrading technology and competing with other
competitors is liberalisation of the economy. Challenges of E- Banking are as follows:
1. Demand side pressure due to increasing access to low cost electronic services.
2. Emergence of open standards for banking functionality
3. Global players in the fray
4. Dual responsibility, to protect customer’s privacy and protect against fraud.
(a) Proper understanding of customer: Bank should adequately and properly identify customers’
requirements and wants. To identify the customers exact needs bank should conduct a research survey.
(b) Due to significant increase in customers’ awareness, the need of maintaining transparency has
increased significantly.
(c) Breach of privacy: While customers conducting banking transactions online, it directly enters into
banking records that reveal the identity of customers. Therefore, no one can easily transfer black
money.
(d) Bandwidth: Although, internet facility providers claim to provide speedy and high bandwidth, still
the problem of high speed internet prevails. E-Banking can popularize more only with adequate
infrastructure comprising telecommunication and bandwidth.
(e) The level of computer literacy is still very low in India and it works as a
bottleneck in the fast acceptance of e-banking.
(f) The attitude of customers is required to be transformed in India.
(g) Bank should have proper security measures to protect its customers against “net – jacked” or from
frauds.

35
The threats of e-banking are as follows:
1. The most common way of hoaxing with the information is the cracking login and passwords of e-
banking users.
2. Denial of services: high trafficking of queries result into jamming computer network.
3. Data Diddling: Information and data can change in an unauthorized way. It can result in receiving
higher amount bill rather than actual amount to be paid by customers.
4. Session Hijacking: Hijacker becomes unauthorized intermediary between the customer and the
server. Then hijacker can hijack the data and restricts it to reach the relevant destination. Most online
transactions involve disclosing up of the credit or debit card number. Hackers can very easily track
down these numbers. They can thus enjoy the full benefits of the card without being an actual
cardholder. Reserve Bank of India provided some guidelines on e-banking to protect interest of
customers as well as of banks.

36
The guidelines are as following:
1. It instructed that although banks can accept application of account opening online, but the bank
account should be opened after adequate physical verification & introduction of the client.
2. It guided that security measures adopted by bank, for users authentication, must be recognized or
approved as a substitute for sign, for legal perspective.
As per the IT Act 2000 Sec.3 (2), asymmetric crypto system and hash function tech. should be used as
a medium of authentication of electronic records. If bank uses any other medium, it would be taken as
a source of legal risk.
3. Banks should maintain secrecy and confidentiality of their customer’s bank account.
4. IT Act 2000 & Consumer Protection Act is applicable to the banking business and they provided
legal guidelines to generate, conduct & preserve electronic data that can be treated as a proof in the
court whenever required, other than the areas that continue to be regulated by the provisions of
Negotiable Instrument Act, 1881.

37
IMPACT OF ELECTRONIC BANKING IN INDIA:
India is still in the early stages of E-banking growth and development. Competition and changes in
technology and lifestyle in the last five years have changed the face of banking. The changes that have
taken place impose on banks tough standards of competition and compliance. The issue here is –
‘Where does India stand in the scheme of E-banking.’ E-banking is likely to bring a host of
opportunities as well as unprecedented risks to the fundamental nature of banking in India.
The impact of E- Banking in India is not yet apparent. Many global research companies believe that E
Banking adoption in India in the near future would be slow compared to other major Asian
countries.Indian E-banking is still nascent, although it is fast becoming a strategic necessity for most
commercial banks, as competition increases from private banks and non banking financial institutions.
Despite the global economic challenges facing the IT software and services sector, the outlook for the
Indian industry remains optimistic.
The Reserve Bank of India has also set up a “Working Group on E-banking to examine different
aspects of E-banking. The group focused on three major areas of E-banking i.e. (1) Technology and
Security issues
(2) Legal issues and
(3) Regulatory and Supervisory issues.
RBI has accepted the guidelines of the group and they provide a good insight into the security
requirements of E-banking.
The importance of the impact of technology and information security cannot be doubted.
Technological developments have been one of the key drivers of the global economy and represent an
instrument that if exploited well can boost the efficiency and competitivity of the banking sector.
However, the rapid growth of the Internet has introduced a completely new level of security related
problems. The problem here is that since the Internet is not a regulated technology and it is readily
accessible to millions of people, there will always be people who want to use it to make illicit gains.
The security issue can be addressed at three levels. The first is the security of customer information as
it is sent from the customer’s PC to the Web server. The second is the security of the environment in
which the Internet banking server and customer information database reside. Third, security measures
must be in place to prevent unauthorized users from attempting to long into the online banking section
of the website.

38
ForCustomers:
BENEFITS OF E-BANKING
Bill Pay: Bill Pay is a service offered through Internet banking that allows the customer to set up bill
payments to just about anyone. Customer can select the person or company whom he wants to make a
payment and Bill Pay will withdraw the money from his account and send the payee a paper check or
an electronic payment
Other Important Facilities: E- banking gives customer control over nearly every aspect of managing
bank accounts. Besides the Customers can, Buy and Sell Securities, Check Stock Market Information,
Check Currency Rates, Check Balances, See which checks are cleared, Transfer Money, View
Transaction History and avoid going to an actual bank. The best benefit is that Internet banking is free.
At many banks the customer doesn’t have to maintain a required minimum balance. The second big
benefit is better interest rates for the customer.
For Banks:
Price- In the long run a bank can save on money by not paying for tellers or for managing branches.
Plus, it’s cheaper to make transactions over the Internet.
Customer Base- The Internet allows banks to reach a whole new market- and a well off one too,
because there are no geographic boundaries with the Internet. The Internet also provides a level
playing field for small banks who want to add to their customer base.
Efficiency- Banks can become more efficient than they already are by providing Internet access for
their customers. The Internet provides the bank with an almost paper less system.
Customer Service and Satisfaction- Banking on the Internet not only allow the customer to have a full
range of services available to them but it also allows them some services not offered at any of the
branches. The person does not have to go to a branch where that service may or may not be offer. A
person can print the information, forms, and applications via the Internet and be able to search for
information efficiently instead of waiting in line and asking a teller. With better and faster options a
bank will surely be able to create better customer relations and satisfaction.

39
Role of E banking in current Scenario of India:
In the 1990s, the banking sector in India saw greater emphasis being placed on technology and
innovation. Banks began to use technology to provide better quality of services at greater speed. The
Internet Banking is becoming one of the fastest growing technologies that is playing a significant role
in the daily lives of human beings. Internet Banking and Mobile Banking made it convenient for
customers to do their banking from geographically diverse places. Banks also sharpened their focus on
rural markets and introduced a variety of services geared to the special needs of their rural customers.
The Internet is slowly gaining popularity in India. The Internet Banking is changing the banking
industry and is having the major effects on banking relationships. Internet Banking involves delivery
of banking products and services. At present many of the banks around the world have web presence
in form of ATMs, Internet Banking, Support services etc. In the world of banking, the development in
information technology has an enormous effect on development of more flexible payment methods and
more- user friendly banking services. Electronic Banking services are new and the development and
diffusion of these technologies by financial institutions is expected to result in more efficient banking
system.

40
Importance of e-banking
We will look at the importance of electronic banking for banks, individual customers, and businesses
separately.
Banks
1. Lesser transaction costs – electronic transactions are the cheapest modes of transaction
2. A reduced margin for human error – since the information is relayed electronically, there is no
room for human error
3. Lesser paperwork – digital records reduce paperwork and make the process easier to handle.
Also, it is environment-friendly.
4. Reduced fixed costs – A lesser need for branches which translates into a lower fixed cost.
5. More loyal customers – since e-banking services are customer-friendly, banks experience
higher loyalty from its customers.
Customers
1. Convenience – a customer can access his account and transact from anywhere 24x7x365.
2. Lower cost per transaction – since the customer does not have to visit the branch for every
transaction, it saves him both time and money.
3. No geographical barriers – In traditional banking systems, geographical distances could hamper
certain banking transactions. However, with e-banking, geographical barriers are reduced.
Businesses
1. Account reviews – Business owners and designated staff members can access the accounts
quickly using an online banking interface. This allows them to review the account activity and
also ensure the smooth functioning of the account.
2. Better productivity – Electronic banking improves productivity. It allows the automation of
regular monthly payments and a host of other features to enhance the productivity of the
business.
3. Lower costs – Usually, costs in banking relationships are based on the resources utilized. If a
certain business requires more assistance with wire transfers, deposits, etc., then the bank
charges it higher fees. With online banking, these expenses are minimized.
4. Lesser errors – Electronic banking helps reduce errors in regular banking transactions. Bad
handwriting, mistaken information, etc. can cause errors which can prove costly. Also, easy
review of the account activity enhances the accuracy of financial transactions.

41
LEGAL RELATION OF E-BANKING IN INDIA
Law cannot possibly be expected to keep pace with changes in technology. The recent debacle of
virtual voyeurism has brought out, amongst other things,the inadequacy and vulnerability of the laws
governing use of internet.Fixing liability, recording and reproducing evidence, ascertaining jurisdiction
are problems which show little sign of easing. Concerns over security and misuse pertaining to e-
banking activity have been mounting as more banks in India foray into electronic banking.
Though there was a message to banks that they should be formed for public good, since inception,
banking has always been a commercial venture, the prime motive of banks being to enlarge profits.
And lately adoption of new economic environment such as liberalisation, privatization and
globalization has caused concern in banking sector. Indian banks have also undergone a sweeping
change where deregulation,technological innovations and globalization are significantly affecting the
banking services.
Reserve Bank ofIndia Act, 1934
In 1995, the Reserve Bank had set up the Committee for Proposing Legislation on Electronic Funds
Transfer and other Electronic Payments. 29 Based on the recommendation, the Reserve Bank of India
Act, 1934 (herein after referred as RBI Act, 1934) was amended to include electronic banking
operation. A new clause 30 to section 58, sub-section 2 of the Act, relating to the regulation of funds
transfer through electronic means between banks, i.e transactions like Real Time Gross Settlement
(RTGS) and National Electronic Funds Transfer (NEFT) and other funds transfer was inserted, to
facilitate such EFTs and ensure legal admissibility of documents and records. RBI encouraged
electronic payment system has introduced Electronic Clearing Service (ECS) and EFT system in 1995,
the RTGS system in 2004, NEFT system in 2005 and Cheque Truncation System (CTS) in 2008.
ECS is an electronic mode of payment / receipt for transactions that are repetitive and periodic in
nature. ECS is used by institutions for making bulk payment of amounts towards distribution of
dividend, interest, salary, pension, or for bulk collection of amounts towards telephone / electricity /
water dues, cess / tax collections, loan installment repayments, periodic investments in mutual funds,
insurance premium and other receipts. Essentially, ECS facilitates bulk transfer of money from one
bank account to many bank accounts or vice versa. ECS and EFT was introduced in the year 1995,
RTGS was introduced in 2004 and NEFT was introduced in 2005 by amending RBI Act.
Essentially, ECS facilitates bulk transfer of money from one bank account to many bank accounts or
vice versa. ECS and EFT was introduced in the year 1995, RTGS was introduced in 2004 and NEFT
was introduced in 2005 by amending RBI Act.

42
Banking RegulationAct, 1949
The Act originally came into force on 16 th March, 1949 and it was known as Banking Companies
Act, 1949. It was amended was renamed as Banking (Acquisition and Tranfer of Undertaking) Act,
1969 35 and the original Act was extended to the cooperative banks from 1966 and is simply called as
B.R.Act, 1949. The objectives of the Act are, to safeguard the interest of depositors, to develop
banking institutions on sound lines and to attain the monetary and credit system to the larger interests
and priorities of the nation.
Amendment has been brought to the original legislation as regards acquiring of shares. An approval
may be granted by the RBI if it is satisfied that the shares are acquired in the interest of public, or the
in the interest of banking policy or to prevent the affairs of any banking company being conducted in
manner detrimental to public interest or companies interest, or in the interest of the emerging trends in
banking and international practices, or in the interest of banking and financial system in India.
The applicant is the proper person to acquire shares or voting rights and no other person has such right.
The voting right given under the law has immense power to the shareholders to control the banking
business of the company.
The RBI has exclusive power to issue, accept or reject application for licence to carry on banking
business. The RBI shall establish a Fund to be called the “Depositor Education and Awareness Fund”
The salient features of the Banking Laws (Amendment) Act, 2012 38 are-
1. Regulatory power to supersede board of banks
Under the Banking Regulation Act, 1949 (herein after referred as B R Act, 1949) the RBI could
remove a director or any other officer of the bank. RBI is empowered to supersede the board of
directors of a bank for up 12 months if it feels that the board is not working in the interest of
shareholders and depositors’. In case the bank is not working in the interest of the share holders or
depositors, RBI shall carry on the business of the bank by appointing an administrator during the
period. RBI now being armed with powers to supersede the Board, it can now effectively influence
and regulate management of banks. To limit arbitrary exercise of power by the RBI, the Act provides
for consultation with the Indian Government.
2. Inspect associate enterprises
The Act empowers the RBI to call for any information and cause inspection of business of any
‘associate enterprise’ of a bank. This should provide legal framework for setting up of Bank Holding
companies and pave the way for issue of new bank licenses. Associate enterprises could be a holding
company or subsidiary company of the bank, a joint venture, an enterprise which controls the

43
composition of the Board of Directors of the bank, an enterprise which influences the bank in taking
financial decision or an enterprise which obtains economic benefits from the activities of the bank.
RBI may not be able to call for information from 'associate enterprises' incorporated outside India of
foreign banks. However, the Indian branches and Indian associate enterprises of a foreign bank will
fall under the RBI purview of ‘associate enterprise’ and they may call for information. An associate
enterprise (outside India) of a foreign bank which has a Wholly-Owned- Subsidiary (WOS) in India is
covered under the Act.
3. Increase in voting rights
In a public sector bank (PSB), no shareholder (except the Central Government) shall exercise voting
rights in excess of one percent of the total voting rights of all the shareholders.
Further, the preference share holder (except the Central Government) also has an embargo on the
voting rights up to one percent of total voting rights of all the shareholders holding preference share
capital only. The Act raises the shareholders’ voting rights in a public sector bank from one percent to
10 percent. No shareholder, in a private sector bank, can exercise voting rights in excess of ten percent
of the total voting rights of all the shareholders.
4. Conversion of a branch of a bank into Wholly Owned Subsidiary
Conversion of a branch of any bank into a Wholly Owned Subsidiary (WOS) or transfer of
shareholding of a bank to its holding company is now exempt from stamp duty. 40 These amendments
would be beneficial for various stakeholders in the banking sector. While the banking regulator gets
enhanced powers that will result in effective compliance of regulations, banks will be able to attract
more investments to raise funds for business expansion and to meet capital norms.
Accounts and audit 41 , is also very strict under the law. It is the auditor who should examine whether
there is an effective system of obtaining confirmations/acknowledgement of debts periodically. For
this purpose, the auditors should also review the branch audit reports. The auditor is expected to report
on the following aspects of the recovery period, existence of a recovery policy, regular updating,
monitoring and adherence, compliance with the RBI guidelines and system of monitoring of recovery
from credit card dues in respect of credit cards issued.
The auditor is expected to give his observations on major frauds discovered during the year under the
audit. The auditor is also expected to comment on the efficacy of the system and follow up on
vigilance reports.According to R.B.Burman Committee recommendation 43 the bank and financial
institutions should conduct Information System Audit conforming to information system audit policy,
which has been incorporated in the present system.

44
Negotiable Instruments Act, 1881
Under the Negotiable Instruments Act, 1881, cheque includes electronic image of truncated cheque
and a cheque in the electronic form. The definition of a cheque in electronic form contemplates digital
signature with or without biometric signature and asymmetric crypto system.
Cheque truncation, loosely defined, is the process in which the physical movement of cheque within
bank, between banks and clearing house is curtailed or eliminated, being replaced in whole or in part,
by electronic records of their content, with or without images, for further processing and transmission.
The truncation of cheque in clearing has been given effect to and appropriate safeguards in this regard
have been put forth in the guidelines issued from time to time. Cheque Truncation speeds up the
process of collection of cheques resulting in better service to customers reduces the scope for clearing-
related frauds or loss of instruments in transit, lowers the cost of collection of cheques, and removes
reconciliation-related and logistics-related problems, thus benefitting the system as a whole.
he truncated cheque is an electronic image of the cheque. When it is presented for payment, the drawee
bank is entitled to demand any further information regarding the truncated cheque from the bank
holding the truncated cheque in case of any reasonable suspicion about the genuineness of the apparent
tenor of instrument and if the suspicion is that of any fraud, forgery, tampering or destruction of the
instrument,it is entitle to further demand the presentment of the truncated cheque itself for verification,
provided that the truncated cheque so demanded by the drawee bank shall be retained by it, if payment
is made accordingly. This provision protects the paying banker who pays in good faith and without
negligence.
Truncation of cheques can be done by the clearing house or the bank which collects the truncated
version of the cheque. As per Section 81 of the NI Act, the banker who receives the payment is also
supposed to retain the copy of the cheque even after payment has been done. Section 89 of the NI Act
says that any distinction between the original cheque and the truncated image should be construed as
material alteration.
A material alteration is one which varies the rights, liabilities, or legal position of the parties
ascertained by the deed in its original state or otherwise varies the legal effect of the instrument as
originally expressed, or reduces to certainty some provision which was originally unascertained and as
such void, or may otherwise prejudice the party bound by the deed as originally executed. In such
cases it is obligatory on the part of the clearing house or the bank to ensure the correctness of the
truncated image while transmitting the image.

45
Information Technology Act, 2000
This is the pivotal legislation dealing with crimes committed due to technology in India. Technological
innovation in general and IT applications in particular, have had a major effect in banking and finance.
The technology and security standards are of prime important as the entire base of Internet banking
rests on it. If the technology and security standards are inadequate, then Internet banking will not
provide the desired results and will collapse ultimately.The adoption of firm’s available new
technology has been recognized as an important part of the overall process of technological change.
Information security is concerned with the protection of three characteristics of information,
confidentiality, integrity and availability through the use of technical solutions and managerial actions.
The IT Act 2000 was amended in 2008 enlarging definitions, introducing the concept of electronic
signature, creating new offences, and many more things. IT Act, 2000 had only two sections dealing
with computer related offences generally.
The amended Act provides for a stronger data protection measures as well as strengthening the general
framework against cyber crimes. There are certain issues which are inherent in the very nature of
crimes committed by using IT which are specifically applicable to banker and customer. They are
anonymity in cyberspace, the issue as to jurisdiction, the question of reliability and procuring of
evidence and the issue of non-reporting of cyber crimes to authorities due to the bad publicity to the
business.
Bank’s to be licensed as Certifying Authority-Banks shall be allowed to apply for a license to issue
digital signature certificate and function as certifying authority for facilitating Internet banking and
that Reserve Bank of India shall issue the licence under clause (o) of Section 6(1) of the Banking
Regulations Act, 1949.
The authentication of electronic records for the purposes of Internet banking should be in accordance
with the provisions of the Act. The electronic records duly maintained for the purposes of Internet
banking would be recognized as legally valid and admissible.
The digital signature affixed in a proper manner would satisfy the requirement of signing of a
document for the purposes of Internet banking. A digital signature meeting the specified requirements
would be deemed to be a secured digital signature for carrying out Internet banking transactions.
Digital signatures share some interesting features with legal signatures in the sense that they can be
fairly readily and intimately related to an individual and they serve to authenticate digital content with
a high degree of assurance. Any kind of paper work, which is required to be filed in the government
offices or its agencies, would be deemed to be duly filed if it is filed in the prescribed electronic form.

46
ADOPTION OF E-BANKING IN INDIA BY CUSTOMERS
The tremendous advances in technology and the aggressive infusion of information technology had
brought in a paradigm shift in banking operations. For the banks, technology has emerged as a
strategic resource for achieving higher efficiency, control of operations, productivity and profitability.
For customers, it is the realization of their ‘anywhere, anytime, anyway’ banking dream. This has
prompted the banks to embrace technology to meet the increasing customer expectation and face the
tough competition.
The recent trends show that most ‘brick and mortar’ banks are shifting from a ‘product-centric’ model
to a ‘customer-centric’ model as they develop their new e-banking capabilities. 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), banks increasingly use Internet 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 (RBI, 2001).
Internet banking involves consumers using the Internet to access their bank account and to undertake
banking transactions. At the basic level, Internet banking can mean the setting up of a Web page by a
bank to give information about its product and services. At an advance level, it involves provision of
facilities such as accessing accounts, funds transfer, and buying financial products or services online.
This is called ``transactional'' online banking (Sathye, 1999).
There are two ways to offer Internet banking. First, an existing bank with physical offices can establish
a web site and offer Internet banking in addition to its traditional delivery channels. Second, a bank
may be established as a “branchless,” “Internet only,” or “virtual” bank without any physical branch.
Broadly, the levels of banking services offered through INTERNET can be categorized in three types:
(i) The Basic Level Services use the banks’ websites which disseminate information on different
products and services offered to customers and members of public in general. It may receive and reply
to customers’ queries through e-mail,
(ii) In the next level are Simple Transactional Websites which allow customers to submit their
instructions, applications for different services, queries on their account balances, etc, but do not
permit any fund-based transactions on their accounts,

47
(iii) The third level of Internet banking services are offered by Fully Transactional Websites which
allow the customers to operate on their accounts for transfer of funds, payment of different bills,
subscribing to other products of the bank and to transact purchase and sale of securities, etc. (RBI,
2001)
Most of the banks providing Internet banking products and services offer, to a large extent, an identical
and standard package of banking services and transactional capabilities. In general, Internet banking
products are offered in a two-tiered structure. A basic tier of Internet banking products includes
customer account inquiry, funds transfer and electronic bill payment. A second or premium tier
includes basic services plus one or more additional services. The list of Internet banking products and
services is not inclusive.

48
Evolution of Internet Banking In India
Indian banking industry, today, is in the midst of an IT revolution. The technology changes have put
forth the competition among the banks. This has led to increasing total banking automation in the
Indian banking industry. New private sector banks and foreign banks have an edge over public sector
banks as far as implementation of technological solutions is concerned. However, the later are in the
process of making huge investment in technology.
The financial reforms that were initiated in the early 90s and the globalization and liberalization
measures brought in a completely new operating environment to the banks. Services and products like
“Anywhere Banking,” “Tele-Banking,” “Internet Banking,” “Web Banking,” “E-Banking” etc. have
become the buzzwords of the day and the banks are trying to cope with the competition by offering
innovative and attractively packaged technology based services to their customers.
Like most of other activities in banking RBI also set up two committees in quick succession to
accelerate the pace of automation of operations in the banking sector. In the early 80s, a high level
committee was formed under the chairmanship of Dr. C. Rangarajan, then Governor of RBI, to draw
up a phased plan for computerization and mechanization in the banking industry over a five year time
frame of 1985-89. The focus by this time was on customer service and two models of branch
automation were developed and implemented. Having gained experience in the earlier mode of
computerization, the second Rangarajan committee constituted in 1988 drew up a detailed perspective
plan for computerization of banks and for extension of automation to other areas like funds transfer, e-
mail, BANKNET, SWIFT, ATMs, Internet banking etc.
The Government of India enacted the Information Technology Act, 2000, generally known as IT Act,
2000, with effect from the 17th October 2000 to provide legal recognition to electronic transactions
and other means of Electronic Commerce. Reserve bank of India had set up a ‘Working Group on
Internet Banking’ to examine different aspects of Internet banking (I-banking). The Group had focused
on three major areas of I-banking i.e., (i) technology and security issues, (ii) legal issues and (iii)
regulatory and supervisory issues. RBI had accepted the recommendations of the Working Group and
accordingly issued guidelines on Internet banking in India for implementation by banks. The Working
Group has also issued a report on Internet banking covering different aspects of I-banking.
Considerable progress has been made in consolidating the existing payment systems and in upgrading
technology with a view to establishing an efficient, integrated and secure system functioning in a real-
time environment. Major projects under implementation are electronic clearing, centralized funds
management, structured financial messaging solutions and the Indian Financial Network (INFINET).

49
Facilities under Electronic Funds Transfer (EFT) have been upgraded and their spatial reach expanded
with multiple settlements in a day. Foreign exchange clearing has been initiated through the Clearing
Corporation of India Limited (CCIL).Adequate security features are being incorporated into the EFT.
Preparatory work for the real time gross settlement (RTGS) is complete. (RBI, 2001).
As per an Internet survey conducted by NASSCOM the Indian Internet market grew steadily in terms
of subscribers. There is a growth of 30% in March 2002 compared to the 1.1 million active subscriber
base in March 2001. The survey also forecasts that the number of Internet subscribers in the year 2004-
05 is likely to reach 7.7 million, with the user base to grow over 50 million. India's Internet user base
is growing at a rapid pace. India's Internet population grows to 29 million by March 2003 from
10.7 million in 2002. Banking and finance market has got the largest share i.e. 21 percent among the
other sectors of economy in using information technology. Thus there is a lot of scope for banking
institutions to expand their Internet banking services to have a more sophisticated customer base.
Private and foreign banks have been the early adopters of e-banking while the Public sector banks are
also beginning to hold on to the competition. ICICI Bank and HDFC Bank have taken a lead in
introducing e-banking in India. ICICI Bank is the first one to have introduced Internet banking for a
limited range of services such as access to account information; correspondence for the first time in
1996 and recently, funds transfer between its branches (Rajneesh and Padmanabhan, 2002). ICICI is
also getting into e trading, thus offering a broader range of integrated services to the customer. Other
banks also followed the suit. However, 1996- 98 was the period of Internet banking adoption while the
Internet banking usage gained importance only in 1999.After ICICI, Citibank, IndusInd Bank and
HDFC Bank were the early ones to adopt the technology in 1999. This paper is confined to the study
of Internet banking services offered by private, public and foreign banks operating in India.
Further discussion has been divided into six sections. Section One appraises the current literature.
Section Two describes the database and research methodology designed for the study. Section Three
depicts the present status and profile of banks offering Internet banking in India along with a
description of the number and size distribution of private, public and foreign banks offering Internet
banking. This section also provides information on the nature of the Internet banking products and
services offered by Internet banks in India. Section Four compares the performance of banks offering
Internet banking to those of other banks. Section Five explains an empirical test of whether offering
Internet banking affects bank profitability. Section Six, the final section, summarizes the major
findinings.

50
CHAPTER-2
LITERATURE REVIEW OF E-BANKING:
RakeshH M & Ramya T J (2014):
In their research paper titled “A Study on Factors Influencing Consumer Adoption of Internet Banking
in India” tried to examine the factors that influence internet banking adoption. Using PLS, a model is
successfully proved and it is found that internet banking is influenced by its perceived reliability,
Perceived ease of use and Perceived usefulness. In the marketing process of internet banking services
marketing expert should emphasize these benefits its adoption provides and awareness can also be
improved to attract consumers’ attention to internet banking services.
Amruth Raj Nippatlapalli (2013):
In his research paper “A Study on Customer Satisfaction of Commercial Banks: Case Study on State
Bank of India”. This paper present Customer satisfaction, a term frequently used in marketing, is a
measure of how products and services supplied by a company meet or surpass customer expectation.
Customer satisfaction is defined as "the number of customers, or percentage of total customers, whose
reported experience with a firm, its products, or its services (ratings) exceeds specified satisfaction
goals."Banking in India originated in the last decades of the 18th century. The first banks were The
General Bank of India, NOW which started in 1786, and Bank of Hindustan, which started in 1790;
both are now defunct. The oldest bank in existence in India is the State Bank of India, which
originated in the Bank of Calcutta in June 1806, which almost immediately became the Bank of
Bengal.

51
Mr. Vijay Prakash Gupta & Dr. P. K. Agarwal (2013):
In their research paper “Comparative Study of Customer Satisfaction in Public Sector and Private
Sector Banks in India”. This paper gives with the introduction of liberalization policy and RBI's easy
norms several private and foreign banks have entered in Indian banking sector which has given birth to
cut throat competition amongst banks for acquiring large customer base and market share. Banks have
to deal with many customers and render various types of services to its customers and if the customers
are not satisfied with the services provided by the banks then they will defect which will impact
economy as a whole since banking system plays an important role in the economy of a country,also it
is very costly and difficult to recover a dissatisfied customer. Since the competition has grown
manifold in the recent times it has become a herculean task for organizations to build loyalty, the
reason being that the customer of today is spoilt for choice. It has become imperative for both public
and private sector banks to perform to the best of their abilities to retain their customers by catering to
their explicit as well as implicit needs. Many a times it happens that the banks fail to satisfy their
customer which can cause huge losses for banks and there the need of this study arises. The purpose of
this research article is to examine the customer satisfaction among group of customer towards the
public sector& private sector banking industries in India. Study is cross-sectional and descriptive in
nature. The researcher tries to makes an effort to clarify the Customer Service satisfaction in Indian
banking Sector. Descriptive research design is used for this study, where the data is collected through
the questionnaire. The information is gathered from the different customers of the two banks, viz.,
PNB and HDFC Bank located in the Meerut Region, Uttar Pradesh. Hundred bank respondents from
each bank were contacted personally in order to seek fair and frank responses on quality of service in
banks.
Ms. Nisha Malik & Mr. Chand Prakash Saini (Jul 2013):
In their research titled on “Private Sector Banks Service Quality and Customer Satisfaction” A
Empirical Study two Private Sector Banks”. This research paper is an effort to examine the
relationship between service quality and customer satisfaction of two private sectors bank of India.
Service quality has been described as a form of attitude that results from the comparison of prospect
with recital (Cronin and Taylor,1992, Parasuraman et al, 1985). Gronroos 1982) argued that
customers, while evaluating the quality of service, compare the service they expect with perceptions of
the services they actually receive.Since financial products offered by various banks are similar by
nature then why any particular bank of product of any bank is preferred than others a matter of interest
for academician as well as banking industry. They may be difference between customers of public and

52
private sector banks, but why are two banks of one sector being preferred differently by customers.
This research study is an effort to find out the answer of these questions.
Pooja Malhotra & Balwinder SINGH (2009)
In their research paper “The Impact of Internet Banking on Bank Performance and Risk: The Indian
Experience”. The paper describes the current state of Internet banking in India and discusses its
implications for the Indian banking industry. Particularly, it seeks to examine the impact of Internet
banking on banks’ performance and risk. Using information drawn from the survey of 85 scheduled
commercial bank’s websites, during the period of June 2007, the results show that nearly 57 percent of
the Indian commercial banks are providing transactional Internet banking services. The univariate
analysis indicates that Internet banks are larger banks and have efficiency ratios and profitability as
compared to non-Internet banks.do. However, the multiple regression results reveal that the
profitability and offering of Internet banking does not have any significant association, on the other
hand, Internet banking has a significant and negative association with risk profile of the banks.
shaza W. Ezzi (April 2014)
In their research paper titled “A Theoretical Model for Internet Banking: Beyond Perceived Usefulness
and Ease of Use” tried to inquired different types of electronic banking like ATM’s, telephone
banking, and electronic funds transfer, Internet banking like has evolved from consumers’ needs to
have superior access to banking services clear of most banks teller-staffed, normal operating hours.
Additionally, Internet banking has grown swiftly from the recent and the span increases in e-
commerce. Internet banking (IB) continues to govern the landscape of electronic banking as
consumers continue to use IB to complete schedule banking transactions in addition to conducting on-
line sales and purchasing. This study presents a theoretical model considered to help researchers and
practitioners better understand the acceptance and adoption of Internet Banking. The proposed model
maybe particularly useful in developing nations where consumers are loath to use Internet Banking
even when the services are available. However, a review of several studies that have investigated
consumers’ acceptance of Internet banking services from a multiplicity of perspectives have not
reached a clear consensus of the factors that contribute to overall consumer acceptance and adoption.
The paper concludes with discussions of the managerial implications and avenues for future research.

53
kartikeya bolar (2014)
In their research paper “End-user Acceptance of Technology Interface In Transaction Based
Environment “This paper presents Creators and investors of technology need information about the
customers’ assessment of their technology interface based on the features and various quality
dimensions to make strategic decisions in improving technology interfaces and compete on various
quality dimensions. The research study identifies the technology interface dimensions as perceived by
the end-users in a transaction based environment (viz. Internet banking) in India, using exploratory
factor analysis. The influence of these dimensions on the utility of technology interface and hence the
usage is examined by Structural Equation Modeling. The moderating role of user demographics and
technology comfort is also tested.Managerial implications are discussed.
Dorra Gherib (2014):
In their research paper titled “Adoption and diffusion of internet banking: case of Tunisian banking
sector “tried to observe the embracing of Internet banking in the Tunisian banking industry. The aim is
to make out factors that accelerate or slow down the implementation process. The literature review
enables identifying a set of variables: organizational, individual and structural. The research
methodology used within this study is the case study. Five case studies in banking sector were
executed. The sample is shaped by banks that adopted the Internet Baking as a modernization. The
analysis allowed the willpower of the related dimensions of the aforesaid variables (competition,
perceived benefits, and organizational compatibility).

IMPACT OF INTERNET OR E-BANKING ON CONSUMER SATISFACTION

IMPACT OF INTERNET OR E-BANKING ON CONSUMER SATISFACTION

Recommended

Recommended

More Related Content

What's hot

What's hot (20)

Similar to IMPACT OF INTERNET OR E-BANKING ON CONSUMER SATISFACTION

Similar to IMPACT OF INTERNET OR E-BANKING ON CONSUMER SATISFACTION (20)

Recently uploaded

Recently uploaded (20)

IMPACT OF INTERNET OR E-BANKING ON CONSUMER SATISFACTION