PROJECT REPORT

Submitted for the Degree of B.com, Honours in

accounting and Finance under the University of
Calcutta)

TITLE OF THE PROJECT

Online Banking

SUBMITTED BY
Name : Kiriti Nag
Ragistration No : 046-1111-0560-18
CU Roll No : 181046-21-0297
College Roll No : 1814420
Section : 4

SUPERVISED BY
Name of the Supervisor : Prof. Dipanjan Basu
Name of the College : rafulla Chandra College

THE YEAR OF SUBMISSION : 2021

 ANNEXURE-1
Supervisor’s Certificate
This is to certify that Kiriti Nag a student of B.com (Honours) in accounting & Finance of
PRAFULLA CHANDRA COLLEGE under the University of Calcutta has worked under my
supervision and guidance for his project work and prepared a project Report with the title
“Online Banking”.

The project Report, Which he is submitting, in his genuine and original work to the Best of
my knowledge.

Place: Kolkata. Signature

Date: 30/06/2021 Name: DIPANJAN BASU
Designation: Asst. Professor of commerce
Name of College: PRAFULLA CHANDRA COLLEGE

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 ANNEXURE-2
Student Declaration
I hereby declared that the project work which the title of “Online Banking” submitted by me
for the partial fulfilment of the degree of B.Com (Honours) in Accounting and Finance under
the University of Calcutta is my own original work and has not been submitted earlier to any
other university for the fulfilment of the requirement for any other degree.

I do hereby also declare that no chapter of these manuscripts in whole or in part has been
incorporated in this Report from any earlier books or work done by other or by me. However
extract of any literature which has been used for this Report has been duly acknowledged
providing detail of such literature in this reference.

Place: Kolkata Signature

Date: Name: Kiriti Nag
3 Address: 1/B/2, RAIPUR EAST ROAD, KOLKATA- 32
Registration no: 046-1111-0560-18
Roll No: 181046-21-0297
COLLEGE ROLL: 1814420

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 ANNEXURE-3

ACKNOWLEDGEMENT

While conducting the Industry Online Banking Oriented Project, innumerable people have
given me various suggestions and opinions while conducting the Online Banking Oriented
Project. I have tried to incorporate all those suggestions which are really relevant in preparing
my final report. I think it is essential to thank all those who have contributed and helped me
throughout the duration of the project.

I pay my immense gratitude to Prof. “DIPANJAN BASU”, Faculty of “PRAFULLA

CHANDRA COLLEGE”, KOLKATA for his continuous and deliberate discussion on the
topic and indeterminable burden taken by him in helping me throughout conducting the
project.

I would also like to thank my friends who rendered their wholehearted co-operation in the
successful completion of the project work.

Finally, I am thankful to all the people who willingly responded to the questionnaire and their
contribution has been invaluable. This project would not have been completed without their
participation.

I am pleased to state that the whole report is just the presentation of the facts that have been
found during the project through different sources and its each sentence is an exact
representation of the information obtained and the analysis thereof. I hope that I have
manifested my sincere attempts to represent all the information and other things to the best of
my ability.

KIRITI NAG
PRAFULLA CHANDRA COLLEGE (2018-2021)
ROLL NO: 181046-21-0297
COLLEGE ROLL: 1814420
REGISTRATION NO: 046-1111-0560-18

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Contents
CHAPTER I : INTRODUCTION.............................................................................................. 6
1.1. BACKGROUND: ........................................................................................................... 6
1.2. HISTORY: ...................................................................................................................... 6
1.3. OBJECTIVES OF THE STUDY: ................................................................................... 6
1.4. LITERATURE REVIEW: ............................................................................................... 7
1.5. METHODOLOY AND DATA COLLECTION: ............................................................ 7
1.6. LIMITATIONS ............................................................................................................... 7
1.7. CHAPTER PLANNING: ....................................................................................................... 7
CHAPTER II : ONLINE BANKING AN OVERVIEW ............................................................ 9
2.1. DEFINITION .................................................................................................................. 9
2.3. HOW ONLINE BANKING EVOLVED INTO A MAINSTREAM FINANCIAL
TOOL ..................................................................................................................................... 9
2.3.1. Historical Development: ........................................................................................... 9
2.3.2. Banks and the World Wide Web: ............................................................................. 9
2.3.3. First Online Banking in India: ................................................................................ 10
2.4. FEATURES OF ONLINE BANKING: ........................................................................ 10
2.5. SPECIAL SUPPORT FOR INTERNET BANKING SERVICES:............................... 10
2.6. ADVANTAGES ONLINE BANKING SERVICES ..................................................... 11
2.7. DISADVANTAGES ONLINE BANKING SERVICES: ............................................. 12
CHAPTER III : TYPES OF ONLINE BANKING ................................................................. 13
3.1. National Electronic Fund Transfer (NEFT): ................................................................. 13
3.2. Real Time Gross Settlement (RTGS):........................................................................... 13
3.3. Electronic Clearing System (ECS):............................................................................... 13
3.4. Immediate Payment Service (IMPS): ........................................................................... 13
CHAPTER IV : ONLINE BANKING IN INDIA-GUIDELINES BY RBI ............................ 14
4.1. Some Internet Banking Guideline by RBI: ................................................................... 14
CHAPTER V : ONLINE BANKING IN INDIA .................................................................... 15
5.1. The Scenario of Online Banking in India ..................................................................... 15
5.2. State Bank of India- World's Largest Centralized Core Processing Implementation: . 15
5.2.1. OnlineSBI: .............................................................................................................. 16
5.2.2 Security in OnlineSBI:............................................................................................. 17
5.2.3. YONO SBI: ............................................................................................................ 17
5.2.4. Balance Sheet of SBI (2017-2021):........................................................................ 18

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 5.3. HDFC BANK LIMITED .............................................................................................. 18
5.3.1. HDFC Online Banking .......................................................................................... 19
5.3.2. Balance Sheet of HDFC (2016-2020): .................................................................. 20
CHAPTER VI : CONCLUSION & RECOMENDATION ................................................... 22
6.1. Conclusion..................................................................................................................... 22
6.2. Recommendations ......................................................................................................... 22
CHAPTER VII : REFERENCES / BIBLIOGRAPHY .......................................................... 24
7.1. Books: ............................................................................................................................ 24
7.2. Websites ........................................................................................................................ 24

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CHAPTER I : INTRODUCTION

1.1. BACKGROUND:
Electronic banking, or e-banking, is the term that describes all transactions that take place
among companies, organizations, and individuals and their banking institutions. First
conceptualized in the mid-1970s, some banks offered customers electronic banking in
1985. However, the lack of Internet users, and costs associated with using online banking,
stunted growth. The Internet explosion in the late-1990s made people more comfortable
with making transactions over the web. Despite the dotcom crash, e-banking grew
alongside the Internet.

1.2. HISTORY:
While financial institutions took steps to implement e-banking services in the mid-1990s,
many consumers were hesitant to conduct monetary transactions over the web. It took
widespread adoption of electronic commerce, based on trailblazing companies such as
America Online, Amazon.com and eBay, to make the idea of paying for items online
widespread. By 2000, 80 percent of U.S. banks offered e-banking. Customer use grew
slowly. At Bank of America, for example, it took 10 years to acquire 2 million e-banking
customers. However, a significant cultural change took place after the Y2K scare ended.
In 2001, Bank of America became the first bank to top 3 million online banking
customers, more than 20 percent of its customer base. In comparison, larger national
institutions, such as Citigroup claimed 2.2 million online relationships globally, while
J.P. Morgan Chase estimated it had more than 750,000 online banking customers. Wells
Fargo had 2.5 million online banking customers, including small businesses. Online
customers proved more loyal and profitable than regular customers. In October 2001,
Bank of America customers executed a record 3.1 million electronic bill payments,
totalling more than $1 billion. In 2009, a report by Gartner Group estimated that 47
percent of U.S. adults and 30 percent in the United Kingdom bank online.

1.3. OBJECTIVES OF THE STUDY:

The main objectives of the study are-
1. To understand the concept of Online-Banking.
2. To analyse the importance, functions, advantages and limitations of Online-
Banking.
3. To explain the different form of Online-Banking and to analyse the rules &
regulation regarding Online-Banking guided by RBI.
4. To highlighting on the security problems of Online-Banking and how to reduce
the security issues with the help of security control tools.
5. To analyse the trend of Online-Banking with the help of primary data of SBI &
HDFC.
6. To analyse the present of SBI & HDFC e-banking scenario concerned with ATM,
Internet banking, Mobile banking, credit card-debit card, fund transfer and other
e-banking services.
7. To examine the impact of ATM, Internet banking, Mobile banking and Credit
cards on customer satisfaction by analysing the problems faced by the customers.

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 1.4. LITERATURE REVIEW:

 An Introduction to E-Commerce: written by Ramit Kumar Roy & Debasri Dey

and published by the Elegant Publications.
 E-Commerce: written by Prof.(Dr.) Dilip Kumar Chakraborty & Prof.
Debdulal Chatterjee and published by B.B. Kundu Grandsons.
 Introduction to Information Technology & its Business Application: - written by
A.K. Mukhopadhyay & A. Das and published by Kalimata Pustakalaya.
 Chong, A.Y.L., Ooi, K.B., Lin, B. and Tan, B.I., 2010. Online banking adoption:
an empirical analysis. International Journal of bank marketing.
 Aladwani, A.M., 2001. Online banking: a field study of drivers, development
 challenges, and expectations. International journal of information
management, 21(3), pp.213-225.
 Khare, A., 2010. Online banking in India: An approach to establish CRM. Journal
of Financial Services Marketing, 15(2), pp.176-188.
 Mukherjee, A. and Nath, P., 2003. A model of trust in online relationship
banking. International journal of bank marketing.
 Ankit, S., 2011. Factors influencing online banking customer satisfaction and their

importance in improving overall retention levels: An Indian banking perspective.
In Information and Knowledge Management (Vol. 1, No. 1, pp. 45-54).
 Khare, A., Khare, A. and Singh, S., 2010. Role of consumer personality in

determining preference for online banking in India. Journal of Database
Marketing & Customer Strategy Management, 17(3), pp.174-187.

1.5. METHODOLOY AND DATA COLLECTION:

 Data Collection:
Secondary Source- The secondary data have been collected from different
articles & website resources such as www.wikipedia.com, www.google.co.in and
so many others. We have used simple pictures, tables, & graphs to analysis &
present the data. Apart from this I also followed my supervisor’s instructions to
finish the project.

1.6. LIMITATIONS:
The major limitations of the study are:
 Due to shortage of time I have not been able to make a depth study.
 The Study is totally dependent on Secondary Data Source; Because of the
pandemic we were not able to collect data primarily, which affects the overall
reliability of this Study.
 It is very tough to collect proper internal data of such commercial bank through
online articles, so we face lack of potential data on online source. This causes
limitation to the study.

1.7. CHAPTER PLANNING:

The study is divided into six chapters with reference-
 Introduction

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  Online Banking-An Overview
 Types of Online Banking
 Online Banking Guidelines of RBI in India
 Online Banking In India
 Conclusion and Recommendations
 References / Bibliography

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CHAPTER II : ONLINE BANKING AN OVERVIEW

2.1. DEFINITION

 Online banking is an electronic payment system that enables customers of a financial

institution to conduct financial transactions on a website operated by the institution,
such as a retail bank, virtual bank, credit union or building society. Online banking is
also referred as internet banking, e-banking, virtual banking and by other terms.

 Online banking or E-banking is an umbrella term for the process by which a customer
may perform banking transactions electronically without visiting a brick-and-mortar
institution.

2.3. HOW ONLINE BANKING EVOLVED INTO A MAINSTREAM

FINANCIAL TOOL

In today’s highly technical world, it’s hard to imagine there was once a time when all
banking was conducted at an actual brick-and-mortar financial institution. Even simple
account transfers required a trip into the bank. While today’s online banking is filled with
amazing innovations, it hasn’t always been this easy, in fact it took a long time to get this far.

2.3.1. Historical Development:

The precursor for the modern home online banking services were the distance banking
services over electronic media from the early 1980s. The term 'Online' became popular in
the late '80s and referred to the use of a terminal, keyboard and TV (or monitor) to access
the banking system using a phone line. 'Home banking' can also refer to the use of a numeric
keypad to send tones down a phone line with instructions to the bank. Online services
started in New York in 1981 when four of the city's major offered home banking services
using the videotex system. Because of the commercial failure of videotex these banking
services never became popular except in France where the use of videotex (Minitel) was
subsidized by the telecom provider and the UK, where the Pestle system was used.
While financial institutions took steps to implement in e-banking services in the mid-1990s,
many consumers were hesitant to conduct monetary transactions over the web. It took
widespread adoption of electronic commerce, based on trailblazing companies such as
America Online, Amazon.com and eBay, to make the idea of paying for items online
widespread. By 2000, 80 percent of U.S. banks offered e-banking. Customer use grew
slowly.

Today, many banks are internet only banks. Unlike their predecessors, these internet only
banks do not maintain brick and mortar bank branches. Instead, they typically differentiate
themselves by offering better interest rates and more extensive online banking features.

2.3.2. Banks and the World Wide Web:

In the 1990s, banks realized that the rising popularity of the World Wide Web gave them an
added opportunity to advertise their services. Initially, they used the Web as another

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brochure, without interaction with the customer. Early sites featured pictures of the bank's
officers or buildings, and provided customers with maps of branches and ATM locations,
phone numbers to call for further information and simple listings of products.

2.3.3. First Online Banking in India:

ICICI bank is the first one to have introduced Online-Banking in 1994 for a limited range of
services such as access to account information, correspondence and, recently, funds transfer
between its branches. ICICI is also getting into e-trading, thus offering a broader range of
integrated services to the customer.

2.4. FEATURES OF ONLINE BANKING:

Online banking facilities offered by various financial institutions have many features and
capabilities in common, but also have some that are application specific.

The common features fall broadly into several categories,

1. Non-Transactional Tasks Through Online Banking:

 Viewing account balances
 Viewing recent transaction details history
 Downloading bank statements, for example in PDF format.
 Viewing images of paid cheques.
 Ordering cheque books.
 Download periodic account statements.
 Downloading applications for M-banking, E-banking etc.

2. Transaction Through Online Banking:

 Funds transfers between the customer's linked accounts.
 Paying third parties, including bill payments (see, e.g., BPAY) and third party
fund transfers (see, e.g., FAST).
 Investment purchase or sale.
 Loan applications and transactions, such as repayments of enrolments.
 Credit card applications.
 Register utility billers and make bill payments.
 Management of multiple users having varying levels of authority.
 Transaction approval process.

2.5. SPECIAL SUPPORT FOR INTERNET BANKING SERVICES:

Some online banking platforms support account Aggregation to allow the customers to
monitor all of their accounts in one place whether they are with their main bank or with other
institutions.

Banks like SBI and HDFC even provides extra offers on online tractions in many e-
commerce sites. Beside this they also provide maximum security and fastest transactions.

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2.6. ADVANTAGES ON L INE BANKING SERVICES:

 Customer’s convenience - Direct banks are open for business anywhere there is an
internet connection. They are also 24 hours a day, 365 days a year open while if
internet service is not available, customer services is normally provided around the
clock via telephone. R eal-time account balances and information are available at the
touch of a few buttons thus, making banking faster, easier and more efficient. In
addition, updating andmaintaining a direct account is easy since it takes only a few
minutes to change themailing address, order additional checks and be informed for
market interest rates.
 More efficient rates - The lack of significant infrastructure and overhead costs allow
direct banks to pay higher interest rates on savings and charge lower mortgage and
loan rates. Some offer high-yield checking accounts, high yield certificate of deposits
(CDs), and even no-penalty CDs for early withdrawal. In
addition, some accounts can be opened with no minimum
deposits and carry no minimum balance or service fees.
 Services - Direct banks typically have more robust
websites that offer a comprehensive set of features
that may not be found on the websites of traditional
banks
 Mobility - Internet banking also includes mobile
capabilities. New applications are continually being
created to expand and improve this capability or
smart-phones and other mobile devices.
 Transfers - Accounts can be automatically funded
from a traditional bank account via electronic transfer.
Most direct banks offer unlimited transfers at no cost,
including those destined for outside financial institutions.

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2.7. DISADVANTAGES ONLINE BANKING SERVICES:

 Bank & Customer relationship - A traditional bank provides the opportunity to

develop a personal relationship with that bank. Getting to know the people at your
local branch can be an advantage when a customer needs a loan or a special service
that is not normally offered to the public. In term of online banking the whole banking
network is managed through the Internet, which causes unreliable Relationship
between consumer and bank.
 Transaction issues - Sometimes a face-to-face meeting is required to complete
complex transactions and address complicated problems. A traditional bank can host
meetings and call in experts to solve a specific issue.
 Service issues - Some direct banks may not offer all the comprehensive financial
services such as insurance and brokerage accounts that traditional banks offer.
 Security issues - Direct banks are subject to the same laws and regulations as
traditional banks and accounts are protected by the FDIC. Sophisticated encryption
software is designed to protect your account information but no system is perfect.
Accounts may be subject to phishing, hacker attacks, malware and other unauthorized
activity. Most banks now make scanned copies of cleared checks available online
which helps to avoid and identify check fraud. It enables verification that all checks
are signed by the customer and that dollar or euro amounts have not been changed.
The timely discovery of discrepancies can be reported and investigated immediately.

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CHAPTER III : TYPES OF ONLINE BANKING

Our chosen commercial bank Sate Bank of India & HDFC Bank they both provide more or
less similar services in term of Internet Banking, Some major types of online banking Service
provided by the SBI & HDFC are Explained down below -

3.1. National Electronic Fund Transfer (NEFT):

National Electronic Funds Transfer (NEFT) is a nation-wide payment system facilitating one-
to-one funds transfer. Under this Scheme, individuals, firms and corporate can electronically
transfer funds from any bank branch to any individual, firm or corporate having an account
with any other bank branch in the country participating in the Scheme

3.2. Real Time Gross Settlement (RTGS):

RTGS is defined as the continuous (real-time) settlement of funds transfers individually on an
order by order basis (without netting). 'Real Time' means the processing of instructions at the
time they are received rather than at some later time; 'Gross Settlement' means the settlement
of funds transfer instructions occurs individually (on an instruction by instruction basis).

3.3. Electronic Clearing System (ECS):

ECS is an alternative method for effecting payment transactions in respect of the utility-bill-
payments such as telephone bills, electricity bills, insurance premia, card payments and loan
repayments, etc., which would obviate the need for issuing and handling paper instruments
and thereby facilitate improved customer service by banks / companies / corporations /
government departments, etc., collecting / receiving the payments.

3.4. Immediate Payment Service (IMPS):

IMPS offer an instant, 24X7, interbank electronic fund transfer service through mobile
phones. IMPS is an emphatic tool to transfer money instantly within banks across India
through mobile, internet and ATM which is not only safe but also economical both in
financial and non-financial perspectives.

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CHAPTER IV : ONLINE BANKING IN INDIA-GUIDELINES BY RBI

The Reserve Bank of India had set up a Working Group on Internet Banking to examine
different aspects of Internet Banking. The Group had focused on three major areas of I-
banking, i.e, technology and security issues, legal issues and regulatory and supervisory
issues. Accordingly, the guidelines were issued by RBI on June 14, 2001 for implementation
by banks. As per original internet banking guidelines, all banks intending to offer
transactional services on the Internet were required to obtain prior approval from RBI.
However later on July 20 2005, this restriction was removed thus no prior approval of the
Reserve Bank of India is required for offering Internet Banking services. The banks intending
to offer the internet banking should have Bank’s Board approved Internet Banking policy to
ensure the compliance of RBI guidelines.

4.1. Some Internet Banking Guideline by RBI:

 The bank should also submit a security policy covering recommendations of RBI and
a certificate from an independent auditor that the minimum requirements prescribed
have been met.
 Banks will report to RBI every breach or failure of security systems and procedure
 All settlement should be intra-day and as far as possible, in real time. However Inter-
bank payment gateways must have capabilities for both net and gross settlement.
 SSL / 128 bit encryption must be used as minimum level of security.
 Banks must make mandatory disclosures of risks, responsibilities and liabilities of the
customers in doing business through Internet.
 Banks must ensure that KYC guidelines are followed.
 Banks are permitted to offer Internet based foreign exchange services, for permitted
underlying transactions, in addition to the local currency products. Internet based
platform for dealing in foreign exchange, should allow only reporting and initiation of
foreign exchange related transactions, with the actual trade transactions being
permitted only after verification of physical documents. Banks should comply with
FEMA regulations in respect of instructions involving cross-border transactions.
 All licensed StCBs, DCCBs, UCBs and RRBs which have implemented Core
Banking Solution (CBS) and migrated to Internet Protocol Version 6 (IPv6) can offer
Internet Banking (View only) facility to their customers, without prior approval of
RBI. The cooperative banks offering Internet Banking (View only) facility to their
customers should ensure that the facility is strictly for non-transactional services such
as balance enquiry, balance viewing, account statement download, request for supply
of cheque books, etc. and no online fund-based transactions are allowed.

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CHAPTER V : ONLINE BANKING IN INDIA

5.1. The Scenario of Online Banking in India:

Internet Banking has become an integral part of banking system in India. The concept of e-
banking is of fairly recent origin in India. Till the early 90’s traditional model of banking i.e.
branch based banking was prevalent, but after that non-branch banking services were started.
The Indian government enacted the IT Act, 2000, with effect from the 17th October 2000. To
examine different aspects of Internet banking RBI set up a committee on Internet Banking.
The committee had focused on three major areas of Internet banking, Technology and
security issues, legal issues and regulatory and supervisory issues. RBI had accepted the
suggestions and recommendations of the Working committee and accordingly issued
guidelines to banks to implement internet banking in India. The old manual systems which
were
prevalent in Indian banking for centuries seem to replace by modern technologies.

5.2. State Bank of India- World's Largest Centralized Core Processing

Implementation:
The story began in 2000. With its growth curve heading northward, State Bank of India
(SBI), the country's largest bank with the largest branch network, realized the need for a core
banking solution. An expression of interest was invited in July 2000, and the actual
implementation was started in August 2003 when the first branch of the bank was put on
TCS' BαNCS core banking solution.

The planning stage lasted three years, while the BαNCS implementation took another five
years (till July 2008) to complete. The entire project of implementing the core banking
solution was handled by TCS as the systems integrator, while other major technology
partners in the project were HP, Data craft, Cisco and Microsoft. The core banking solution
implemented at SBI and its associate banks currently execute an average of 42 million
transactions per day with a peak of 1,900 transactions per second through a massive network
of about 17,700 branches and over 20,000 ATMs servicing nearly 243 million customers. The
CBS at SBI executes an average of 42 million transactions per day with a peak of 1,900
transactions per second through a network of about 17,700 branches. Further, SBI had more
than 2 lakh employees, and many of them had little familiarity with Web-based technology
before the core banking solution's implementation. "SBI and TCS had to ensure that the bank

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employees were well-acquain ted with the use of the solution, Indeed, at one point of time,
SBI had 58 training centres.

5.2.1. OnlineSBI:

State Bank of India is India's largest bank with a network of over 15000 branches
and 5 associate banks located even in the remotest parts of India. StateBank of India (SBI)
offers a wide range of banking products and services to corporate and retail customers.

OnlineSBI is the Internet banking portal for State Bank of India. The portal provides
anywhere, anytime, online access to accounts for State Bank's Retail and Corporate
customers. The application is developed using the latest cutting edge technology and tools.
The infrastructure supports unified, secure access to banking servic se for accounts in
over 15,000 branches across India.

5.2.1.1 Retail Internet Banking-

 Transfer funds to own and third party accounts
 A suite of completely online deposit products (Fixed, Recurring, Flexi, Tax
Saving etc.)
 Airline, Rail, Bus and hotel ticket booking
 Online Shopping and instant recharge features.
 IMPS Funds Transfer
 Western Union Service
 Credit beneficiary accounts using RTGS/NEFT feature
 Generate account statements
 Setup Standing In structions and Scheduling payments
 Configure profile settings
 E- Tax for online tax payment
 E - Pay for autom atic bill payments

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  Avail DEMAT and IPO services
 Pay bill of Visa Credit Card issued by any Bank.
 Other Value added Services.

5.2.1.2 Corporate Internet Banking- State Bank of India offers world class Internet
Banking services to its Corporate Customers through the portal www.onlinesbi.com. The
Corporate Internet Banking (CINB) facility of SBI enables the corporate customer to carry
out banking activities anywhere and anytime aided with the power and convenience of the
internet.
 Convenience banking – Operate your account from the comfort of home or office.
 Anytime Banking- Enquire/transact on your account on a 24x7 basis.
 Save time and costs- No need to go to the bank branch for routine transactions.
 Promote Green Banking – No hassle of paper work.
 Transfer money to other bank and SBI accounts.
 Merchant Payments by using Merchant pre-approved limit to different merchants like
telecom, electricity, municipal corporations etc.,
 ASBA: Apply to IPOs online.
 State Bank collects – For collecting and remitting various fees, collections, etc.

5.2.2 Security in OnlineSBI:

The online banking security system of the SBI is known as VeriSign. OnlineSBI allows you
to transact over a completely secure medium, Protected by the most stringent security
systems. All your transactions travel via an SSL encrypted medium (minimum of 128-bit to
maximum of 256-bit SSL tunnel), the highest level of security on the internet.

EV-SSL Certificates provide you the evidence of the server's authenticity which safeguards
users from trusting unauthorised sites and allows the session to be encrypted.

 This is provided by a World's leading Internet Certification Authority, which in this

case is VeriSign.
 Clicking on the lock will allow you to see the VeriSign Certificate authenticating the
site.
 While we are taking measures to make sure your online transactions are secure, you
could also do a few things to ensure the security of your transactions.
 Each customer is, provided with a User ID and Password. Your password is generated
in such a way that it is only known to you.

5.2.3. YONO SBI:

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 YONO (You Only Need One) is an integrated digital banking platform offered by
State Bank of India (SBI) to enable users to access a variety of financial and other
services such as flight, train, bus and taxi bookings, online shopping, or medical bill
payments. YONO is offered as a Smartphone app for both Android and iOS. YONO
was launched on 24 November 2017.

5.2.4. Balance Sheet of SBI (2017-2021):

BALANCE SHEET OF
STATE BANK OF 21-Mar 20-Mar 19-Mar 18-Mar 17-Mar
INDIA (in Rs. Cr.)
12 m ths 12 mths 12 mths 12 mths 12 mths
EQUITIES &
LIABILITIES
SHAREHOLDER'S
FUNDS
Equity Share Capital 892.46 892.46 892.46 892.
46 797.35
TOTAL SHARE CAPITAL 892.46 892.46 892.46 892.
46 797.35

Revaluation Reserve 23,5

7 7.35 23,762.67 24,653.94 24,847.99 31,585.65
Reserves and Surplus 229,405.38 207,352.30 195,367.42 193,388.12 155,903.06
Total Reserves and Surplus 252,982.73 231,114.97 220,021.36 218,236.10 187,488.71
TOTAL
SHAREHOLDERS 253,875.19 232,007.43 220,913.82 219,128.56 188,286.06
FUNDS
Deposits 3,681,277.08 3,241,620.73 2,911,386.01 2,706,3
4 3.29 2,044,751.39
Borrowings 417,297.70 314,655.65 403,017.12 362,142.07 317,693.66
Other Liabilities and
181,979.66 163,110.10 145,597.30 167,138.08 155,235.19
Provisions
TOTAL CAPITAL AND
4,534,429.63 3,951,393.92 3,680,914.25 3,454,7
5 2.00 2,705,966.30
LIABILITIES
ASSETS
Cash and Balances with
213,201.54 166,735.78 176,932.42 150,397.18 127,997.62
Reserve Bank of India
Balances with Banks Money
129,837.17 84,361.23 45,557.69 41,501.46 43,974.03
at Call & Short Notice
Investments 1,351,705.21 1,046,954.52 967,021.95 1,060,9
8 6.72 765,989.63
Advances 2,449,497.79 2,325,289.56 2,185,876.92 1,934,8
8 0.19 1,571,078.38
Fixed Assets 38,4
1 9.24 38,439.28 39,197.57 39,992.25 42,918.92
Other Assets 351,768.68 289,613.55 266,327.70 226,994.20 154,007.72
TOTAL ASSETS 4,534,429.63 3,951,393.92 3,680,914.25 3,454,7
5 2.00 2,705,966.30

5.3. HDFC BANK LIMITED:

HDFC Bank Limited is an Indian banking and financial services company, headquartered in
Mumbai, Maharashtra. HDFC Bank is India’s largest private sector bank by assets and by

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market capitalisation as of April 2021. It is the third largest company by market capitalisation
on the Indian stock exchanges. It is also the thirteenth largest employer in India with nearly
120,000 employees.

HDFC Bank was incorporated in 1994 as a subsidiary of the Housing Development Finance
Corporation, with its registered office in Mumbai, Maharashtra, India. Its first corporate
office and a full-service branch at Sandoz House, Worli were inaugurated by the Union
Finance Minister, Manmohan Singh. As of 30 June 2019, the Bank's distribution network was
at 5,500 branches across 2,764 cities. The bank also installed 430,000 POS terminals and
issued 23,570,000 debit cards and 12 million credit cards in FY 2017. It has a base of 1,
16,971 permanent employees as of 21 March 2020.

HDFC Bank provides a number of products and services including wholesale banking, retail
banking, treasury, auto loans, two-wheeler loans, and personal loans, loans against property,
consumer durable loan, lifestyle loan and credit cards. Along with this various digital
products are Payzapp and SmartBUY.

5.3.1. HDFC Online Banking:

We live in an era of online and digital banking. Online banking has made transactions easy,
convenient and hassle-free. You can conduct various transactions using the bank's website. It
also offers several other advantages. Online Banking not only provides you with ease of
transactions and greater accessibility but also offers you a host of other advantages. Here are
five advantages of Online Banking that you should know-

 You can easily open an online bank account. They are extremely simple to operate,
and you can use it for various purposes that include paying your bills, transferring
funds between multiple accounts, etc. Thus, making payments faster. Online Banking
can also help you view your transactions comprehensively and keep a record.

 You can perform your tasks from anywhere and at any time; even in the night when
the bank is closed or on bank or public holidays. The only thing you need to have is
an active internet connection, and you can easily transact 24*7, 365 days!

 It is fast and efficient. Your funds get transferred from one account to the other very
fast and without any hassle. You can also manage several accounts efficiently through
internet banking.

 You can keep a watch on your daily transactions and account balance at all times.
This facility also helps keep your account safe. You can also get to know about any
fraudulent activity or threat to your account much before it can pose your account to
severe damage, immediately, within a matter of minutes.

 You can stay updated about your bank’s products like loans, investment options, etc.
Plus, you can avail a lot of offers on shopping and purchases and a range of other
services that can help you get more for less.

 Types of transfer funds on HDFC Online Banking Portal-

 Visa CardPay: You will be able to transfer funds from your account to any
Visa Credit Card across India. However, the credit card account must be added
as a beneficiary and the amount will be transferred within 2 working days.

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 Online Merchant payment option can be used for the transfer of funds.
However, tax payments, mutual fund payments, and payments towards stock
brokers cannot be made using this option.
 Immediate Payment Service (IMPS): Funds can be transferred immediately
via IMPS. Funds can also be transferred to other HDFC accounts as well as to
accounts from other banks. You will be able to transfer money via IMPS on
bank holidays as well.
 Real Time Gross Settlement (RTGS): Under this facility, funds will be paid
to the beneficiary’s bank within RBI’s stipulated time. However, the account
where the funds are being added to must be added as a beneficiary. The
amount that can be transferred can vary from Rs.2 lakh to Rs.10 lakh,
respectively.
 National Electronic Funds Transfer (NEFT): Funds can be transferred to
banks other than HDFC by using this facility. The amount that can be
transferred ranges from Rs.1 lakh to Rs.10 lakh. However, the account to
which the amount will have to be transferred to must be added as a
beneficiary.
Funds can be transferred from your HDFC account to another HDFC account
by using different Customer IDs. Any transfer using this facility will be
immediate.

5.3.2. Balance Sheet of HDFC (2017-2021):

BALANCE SHEET
OF HDFC BANK (in 21-Mar 20-Mar 19-Mar 18-Mar 17-Mar
Rs. Cr.)
12 mths 12 mths 12 mths 12 mths 12 mths
EQUITIES AND
LIABILITIES
SHAREHOLDER'S
FUNDS
Equity Share Capital 55 1.28 548.33 544.66 519.02 512.51
TOTAL SHARE
55 1.28 548.33 544.66 519.02 512.51
CAPITAL
Revaluation Reserve 0 0 0 0 0
Reserves and Surplus 203,169.53 170,437.70 148,661.69 105,775.98 88,949.84
Total Reserves and
203,169.53 170,437.70 148,661.69 105,775.98 88,949.84
Surplus
TOTAL
SHAREHOLDERS 203,720.81 170,986.03 149,206.35 106,295.00 89,462.35
FUNDS
Deposits 1,335 ,060.22 1,147,502.29 923,140.93 788,770.64 643,639.66
Borrowings 135,487.33 144,628.54 117,085.12 123,104.97 74,028.87
Other Liabilities and
72,602.16 67,394.40 55,108.29 45,763.72 56,709.32
Provisions
TOTAL CAPITAL
1,746 ,870.52 1,530,511.26 1,244,540.69 1,063,934.32 863,840.19
AND LIABILITIES
ASSETS

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Cash and Balances with
97,340.73 72,205.12 46,763.62 104,670.47 37,896.88
Reserve Bank of India
Balances with Banks
Money at Call and 22,129.66 14,413.60 34,584.02 18,244.61 11,055.22
Short Notice
Investments 443,728.29 391,826.66 290,587.88 242,200.24 214,463.34
Advances 1,132,836.63 993,702.88 819,401.22 658,333.09 554,568.20
Fixed Assets 4,909.32 4,431.92 4,030.00 3,607.20 3,626.74
Other Assets 45,925.89 53,931.09 49,173.95 36,878.70 42,229.82
TOTAL ASSETS 1,746,870.52 1,530,511.26 1,244,540.69 1,063,934.32 863,840.19

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CHAPTER VI : CONCLUSION & RECOMENDATION

6.1. Conclusion:
In a country like India, there is need for providing better and customized services to the
customers. Banks must be concerned about the attitudes of customers with regard to
acceptance of internet banking. The importance of security and privacy for acceptance of
internet banking has been noted in many earlier studies and it was found that people claim
that they have knowledge about security issues but they have no clear idea about all kind
frauds. The present study shows that customers are more reluctant to accept new technologies
or methods that might contain little risk. Hence, banks should design the website to address
security and trust issues.

6.2. Recommendations:
We can see the time is changing and we are now accepting technology but there is still a lot
of perceptual blocking which hampers the growth its normal tendency of technology, that
why the growth of internet banking is very primitive in nature.

 Banks should obey the RBI norms and provide facilities as per the norms. But this are
not completely followed by the banks. Some of our respondents complained that their
bank do not give feedback of online transaction in proper times. If customers do not
get proper feedback then their interest in online services will be reduced. So bank
should take proper steps to build their feedback services.
 Internet banking facilities must be made available in all banks as well as in all
branches.
 There are some co-operative banks in this area and this type of banks still does not
have core-banking facilities. For this reason this type of bank loses their customers.
So co-operative banks should be covered under core-banking system.
 Link failure is a big problem especially in UCO bank and for this reason the
important business deals have been hampered. So banks should modified their
software immediately.
 Now some banks install automated balance update machine to avoid customer
harassment but all banks should except this system very quickly.
 Banks should develop their services not only in town areas but also in village
areas. Banks should install more and more ATMs in both urban and rural areas.
 There is a another problem I faced at the time of conducting this survey that the
respondents complained that there are so many ATM machines in this locality but
most of the ATMs have normally no cash at all. So bank should extend this service
with regular cash filling.
 Fair dealing with the customers is more preferable. The stuff should be cooperative,
friendly and must be capable to understand the problems of the customers.
 Banks should give proper training to customers to use net banking.
 Banks should always update their security systems and create a trust in the mind
of customers towards security of their accounts.
 Banks should make their sites more users friendly. Customers should be motivated
to use internet banking facilities more.

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  Banks are now using two factor authentications i.e. password and OTP but they
should improve that and using three factor authentication because hackers
sometimes break the two factor authentication system.

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CHAPTER VII : REFERENCES / BIBLIOGRAPHY
7.1. Books:
An Introduction to E-Commerce: - written by Ramit Kumar Roy & Debasri Dey and
published by the Elegant Publications

E-Commerce: - written by Prof.(Dr.) Dilip Kumar Chakraborty & Prof. Debdulal

Chatterjee and published by B.B. Kundu Grandsons.

Introduction to Information Technology & its Business Application: - written by

A.K. Mukhopadhyay & A. Das and published by Kalimata Pustakalaya.

Chong, A.Y.L., Ooi, K.B., Lin, B. and Tan, B.I., 2010. Online banking adoption: an empirical
analysis. International Journal of bank marketing.

Aladwani, A.M., 2001. Online banking: a field study of drivers, development challenges, and
expectations. International journal of information management, 21(3), pp.213-225.

Khare, A., 2010. Online banking in India: An approach to establish CRM. Journal of
Financial Services Marketing, 15(2), pp.176-188.

Mukherjee, A. and Nath, P., 2003. A model of trust in online relationship

banking. International journal of bank marketing.

Ankit, S., 2011. Factors influencing online banking customer satisfaction and their
importance in improving overall retention levels: An Indian banking perspective.
In Information and Knowledge Management (Vol. 1, No. 1, pp. 45-54).

Khare, A., Khare, A. and Singh, S., 2010. Role of consumer personality in determining
preference for online banking in India. Journal of Database Marketing & Customer Strategy
Management, 17(3), pp.174-187.

7.2. Websites:
www.moneycontrol.com/

www.economictimes.indiatimes.com/

https://www.rbi.org.in/

https://www.onlinesbi.com/

www.svtuition.org

www.hdfcbank.com

www.bankbazaar.com

https://en.wikipedia.org/

www.google.com

www.slideshare.com

www.scribed.in

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