A

SUMMER TRAINING PROJECT REPORT

ON
“Services provided by the bank through
E-BANKING IN INDIA”

SUBMITTED TO Submitted by

MR. NITIN KESHARI ROHIT MADDESHIYA

SHEAT SCHOOL OF BUSINESS Roll. No. 2103840700039

BABATPUR VARANASI SHEAT SCHOOL OF BUSINESS
 Table Contents

Chapter 1: Introduction…………………………………………………………5

Chapter 2: Observation of study………………………………………………..6

Chapter 3: Literature Review ………………………………………………….11

Chapter 4: Objective of study………………………………………………….15

Chapter 4.1: Limitation of study………………………………………………15

Chapter 5: Methodology………………………………………………………16

Chapter 5: Questionnaire…………………………………………………..….17

Chapter 6: Data analysis………………………………………………………20

Chapter 7: findings……………………………………………………………26

Chapter 8: Conclusions………………………………………………………27

Acknowledgement

I would like to express my gratitude to all those who gave me the possibility to
complete this project.

I would like express my guide Mr. NITIN KESHARI continuous guidance.

2
In the end, I express our gratitude to my friend who inspired me in this work
without their inspirations the work were almost impossible.

Signature

ROHIT MADDESHIYA
MBA 3RD SEMESTER

ROLL NO. 2103840700039

Declaration

I am ROHIT MADDESHIYA this project report is my original work and have not
been submitted in any form as a part of any other project.

Information derived from the published and unpublished work of other has been
acknowledgement in the list references in given in the bibliography.

3
ROHIT MADDESHIYA DATE

MBA 3RD SEMESTER PLACE

ROLL NO. 2103840700039

Chapter 1 Introduction

E-banking:-
Internet banking (or E-banking) means any user with a personal
computer and a browser can get connected to his bank -s website to perform any of
the virtual banking functions. In internet banking system the bank has a centralized
database that is web-enabled. All the services that the bank has permitted on the
internet are displayed in menu. Any service can be selected and further interaction
is dictated by the nature of service. Once the branch offices of bank are
interconnected through terrestrial or satellite links, there would be no physical
identity for any branch. It would a borderless entity permitting anytime, anywhere
and anyhow banking.
The delivery channels include direct dialup connections, private networks,
public networks, etc. with the popularity of computers, easy access to Internet and
World Wide Web (WWW), Internet is increasingly used by banks as a channel for
receiving instructions and delivering their products and services to their customers.
This form of banking is generally referred to as Internet Banking, although the

4
range of products and services offered by different banks vary widely both in their
content and sophistication.

Meaning of E-Banking
E-bank is the electronic bank that provides the financial service for the individual
client by means of Internet.

Chapter 2 Observation of study

DEFINITION OF E-BANKING

For this booklet, e-banking is defined as the automated delivery of new and
traditional banking products and services directly to customers through electronic,
interactive communication channels. E-banking includes the systems that enable
financial institution customers, individuals or businesses, to access accounts,
transact business, or obtain information on financial products and services through
a public or private network, including the Internet. Customers access e-banking
services using an intelligent electronic device, such as a personal computer (PC),
personal digital assistant (PDA), automated teller machine (ATM), kiosk, or Touch
Tone telephone. While the risks and controls are similar for the various e-banking
access channels, this booklet focuses specifically on Internet-based services due to
the Internet’s widely accessible public network. Accordingly, this booklet begins
with a discussion of the two primary types of Internet websites: informational and
transactional.

E-BANKING SUPPORT SERVICES

WEBLINKING

5
A large number of financial institutions maintains sites on the World Wide Web.
Some websites are strictly informational, while others also offer customers the
ability to perform financial transactions, such as paying bills or transferring funds
between accounts.

WIRELESS E-BANKING
Wireless banking is a delivery channel that can extend the reach and enhance the
convenience of Internet banking products and services. Wireless banking occurs
when customers access a financial institution's network(s) using cellular phones,
pagers, and personal digital assistants (or similar devices) through
telecommunication companies’ wireless networks. Wireless banking services in the
United States typically supplement a financial institution's e-banking products and
services.

Person-to-Person Payments
Electronic person-to-person payments, also known as e-mail money, permit
consumers to send “money” to any person or business with an e-mail address.
Under this scenario, a consumer electronically instructs the person-to-person
payment service to transfer funds to another individual. The payment service then
sends an e-mail notifying the individual that the funds are available and informs
him or her of the methods available to access the funds including requesting a
check, transferring the funds to an account at an insured financial institution, or
retransmitting the funds to someone else. Person-to-person payments are typically
funded by credit card charges transfer from the consumer’s account at a financial
institution. Since neither the payee nor the payer in the transaction has to have an
account with the payment service, such services may be offered by an insured
financial institution, but are frequently offered by other businesses as well.

Banking Services through Internet:

1. The Basic Level Service is the banks’ web sites which disseminate
information on different products and services offered to customers and

6
 members of public in general. It may receive and reply to customer’s
queries through e-mail;

2. In the next level are Simple Transactional Web sites which allows
customers to submit their instructions, applications for different services,
queries in their account balances, etc. but do not permit any fund-based
transactions on their accounts;

3. The third level of Internet banking service are offered by Fully

Transactional Web sites 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. The
above forms of Internet banking service the customer or by new banks, who
deliver banking service primarily through Internet or other electronic delivery
channels as the value added services. Some of these banks are known as
‘Virtual’ banks or ‘Internet only’ banks and may not have physical presence
in a country despite offering different banking services.

The Indian Scenario: -

• Internet banking, both as a medium of delivery of banking services and as a

strategic tool for business development.

• At present, the total internet users in the country are estimated at 9 lakh.
However, this is expected to grow exponentially to 90 lakh by 2003. Only
about 1 percent of Internet users did banking online in 1998. This is increased
to 16.7 percent in March 2000.

7
 - (India Research, May 29, 2000, Kotak Securities)

• Cost of banking service through the Internet from a fraction of costs through
conventional methods. Rough estimates assume teller cost at Re.1 per
transaction, ATM transaction cost at 45 paise, phone banking at 35 paise,
debit cards at 20 paise and Internet banking at 10 paise per transaction.

Plastic Cards as Media for Payment: -

There are four types of plastic cards being used as media for making
payments. These are:
1. Credit Card
2. Debit Card
3. Smart Card
4. ATM Card

1. Credit Cards: -

The credit card enables the cardholders to: Purchase any item like clothes,
jewellery, railway/air tickets, etc.
Pay bills for dining in a restaurant or boarding and lodging in hotel
Avail of any service like car rental, etc.

2. Debit Cards: -

8
A debit card is issued on payment of a specified amount by the issuing company
like a telephone company to a customer on cash payment or on debiting his
account by a bank.

Thus it is like an electronic purse, which can be read and debited by the required
amount.

It may be noted that while through a credit card, the customer first makes a
purchase or avails service and pays later on, but for getting the debit card, a
customer has to first pay the due amount and then make a purchase or avail the
service. For this reason, debit card are not as popular as credit cards.

3. Smart Cards: -

Smart Cards have a built-in microcomputer chip, which can be used for storing and
processing information. For example, a person can have a smart card from a bank
with the specified amount stored electronically on it. As he goes on making
transactions with the help of the card, the balance keeps on reducing electronically.
When the specified amount is utilized by the customer, he can approach the bank to
get his card validated for a further specified amount. Such cards are used for
paying small amounts like telephone calls, petrol bills, etc.

4. ATM Cards: -

The card contains a PIN (Personal Identification Number) which is selected by the
customer or conveyed to the customer and enables him to withdraw cash up to the
transaction limit for the day. He can also deposit cash or cheque.

9
 Chapter 3 Literature Review
A new review by Tower group of 10 top US e- banking web sites evaluated several
aspects of core online banking components. Group found that there is difference in

10
terms of actual functionality and usability. Among different banks and their
services.

The UK's first home online banking services were set up by the Nottingham
Building Society (NBS) in 1983 ("History of the Nottingham". Retrieved on 2007-
12-14.). The system used was based on the UK's Prestel system and used a
computer, such as the BBC Micro, or keyboard (Tan data Td1400) connected to the
telephone system and television set. The system (known as 'Home link') allowed
on-line viewing of statements, bank transfers and bill payments. 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 Home link system.

An American study conducted last year by Booz-Allen projects that by the year
2000, 16 million US households will be using Internet banking. While these
numbers do not appear to be significant as compared to the total population, each
Internet user is projected to be 50-250% more profitable than the average banking
customer. It is expected that these Internet customers will be some of the banking
system's most profitable customers representing close to 30% of all retail banking
profits. The study projects that by 1999, 1,500 banks will have Internet Web sites
and at least 500 of these banks will be offering full-fledged Internet banking
services.

In 2001 Micro banker send detailed questionnaire to the leading vendors of internet
banking software27 companies responded with information on thirty programs the
aggregate outcome of the outcome was that almost all the companies have
developed functions for internet banking and have inbuilt feature to aid with one to
one marketing on the web.

ICICI Bank

11
 History
ICICI was formed in 1955 at the initiative of the World Bank, the
Government of India and representatives of Indian industry. The
principal objective was to create a development financial institution for
providing medium-term and long-term project financing to Indian
businesses. Until the late 1980s, ICICI primarily focused its activities
on project finance, providing long-term funds to a variety of industrial
projects. With the liberalization of the financial sector in India in the
1990s, ICICI transformed its business from a development financial
institution offering only project finance to a diversified financial
services provider that, along with its subsidiaries and other group
companies, offered a wide variety of products and services. As India’s
economy became more market-oriented and integrated with the world
economy, ICICI capitalized on the new opportunities to provide a

12
wider range of financial products and services to a broader spectrum
of clients. ICICI Bank was incorporated in 1994 as a part of the ICICI
group. In 1999, ICICI became the first Indian company and the first
bank or financial institution from non-Japan Asia to be listed on the
New York Stock Exchange.
 
The issue of universal banking, which in the Indian context meant
conversion of long-term lending institutions such as ICICI into
commercial banks, had been discussed at length in the late 1990s.
Conversion into a bank offered ICICI the ability to accept low-cost
demand deposits and offer a wider range of products and services,
and greater opportunities for earning non-fund based income in the
form of banking fees and commissions. After consideration of various
corporate structuring alternatives in the context of the emerging
competitive scenario in the Indian banking industry, and the move
towards universal banking, the managements of ICICI and ICICI Bank
formed the view that the merger of ICICI with ICICI Bank would be the
optimal strategic alternative for both entities, and would create the
optimal legal structure for ICICI group's universal banking strategy.
The merger would enhance value for ICICI shareholders through the
merged entity's access to low-cost deposits, greater opportunities for
earning fee-based income and the ability to participate in the
payments system and provide transaction-banking services. The
merger would enhance value for ICICI Bank shareholders through a
large capital base and scale of operations, seamless access to ICICI's
strong corporate relationships built up over five decades, entry into
new business segments, higher market share in various business

13
segments, particularly fee-based services, and access to the vast
talent pool of ICICI and its subsidiaries.
 
In October 2001, the Boards of Directors of ICICI and ICICI Bank
approved the merger of ICICI and two of its wholly-owned retail
finance subsidiaries, ICICI Personal Financial Services Limited and
ICICI Capital Services Limited, with ICICI Bank. The merger was
approved by shareholders of ICICI and ICICI Bank in January 2002,
by the High Court of Gujarat at Ahmedabad in March 2002, and by
the High Court of Judicature at Mumbai and the Reserve Bank of
India in April 2002. Consequent to the merger, the ICICI group's
financing and banking operations, both wholesale and retail, were
integrated in a single entity.

Board of Directors
Board Members

14
Mr. Girish Chandra
Chaturvedi
Non-Executive (part-
 
time) Chairman
....................................
..........

Mr. Hari L. Mundra

Independent Director
 
....................................
..........

Mr. Sandeep Bakhshi,

Mr. S. Madhavan
Managing Director &
Independent Director
CEO
....................................
....................................
..........
..........

Ms. Neelam Dhawan Mr. Anup Bagchi,

Independent Director Executive Director
.................................... ....................................
.......... ..........

Mr. Radhakrishnan
Mr. Rakesh Jha,
Nair
Executive Director
Independent Director
....................................
....................................
..........
..........

Mr. B. Sriram Mr. Sandeep Batra,

Independent Director Executive Director

15
 .................................... ....................................
.......... ..........

Mr. Uday Chitale

Independent Director
 
....................................
..........

Ms. Vibha Paul Rishi

 
Independent Director

Role in Indian financial

infrastructure
ICICI bank has contributed to the setting up of a number of Indian institutions to
establish financial infrastructure in the country over the years:

 The National Stock Exchange was promoted by India's leading financial

institutions (including ICICI Ltd.) in 1992 on behalf of the Government of India
with the objective of establishing a nationwide trading facility for equities, debt
instruments and hybrids, by ensuring equal access to investors all over the
country through an appropriate communication network. [31]
 In 1987, ICICI Ltd along with UTI set up CRISIL as India's first
professional credit rating agency.[32]
 N
C
D
E
16
 X (National Commodities and Derivatives EXchange) was set up in 2003, by
ICICI Bank Ltd, LIC, NABARD, NSE, Canara Bank, CRISIL, Goldman
Sachs, Indian Farmers Fertiliser Cooperative Limited (IFFCO) and Punjab
National Bank.[33]
 ICICI Bank facilitated the setting up of "FINO Cross Link to Case Link Study" in
2006, as a company that would provide technology solutions and services to
reach the underserved and underbanked population of the country. Using
technologies like smart cards, biometrics and a basket of support services,
FINO enables financial institutions to conceptualise, develop and operationalise
projects to support sector initiatives in microfinance and livelihoods.[34]
 Entrepreneurship Development Institute of India (EDII), was set up in 1983, by
the erstwhile apex financial institutions like IDBI, ICICI, IFCI and SBI with the
support of the Government of Gujarat as a national resource organisation
committed to entrepreneurship development, education, training and research.
[35]

 Eastern Development Finance Corporation (NEDFI) was promoted by national

level financial institutions like ICICI Ltd in 1995 at Guwahati, Assam for the
development of industries, infrastructure, animal husbandry, agri-horticulture
plantation, medicinal plants, sericulture, aquaculture, poultry and dairy in the
North Eastern states of India.[36]
 Following the enactment of the Securitisation Act in 2002, ICICI Bank, together
with other institutions, set up Asset Reconstruction Company India Limited
(ARCIL) in 2003. ARCIL was established to acquire non-performing assets
(NPAs) from financial institutions and banks with a view to enhance the
management of these assets and help in the maximisation of recovery. [37][38]
 ICICI Bank has helped in setting up Credit Information Bureau of India
Limited (CIBIL), India's first national credit bureau in 2000. CIBIL provides a
repository of information (which contains the credit history of commercial and
consumer borrowers) to its members in the form of credit information reports. [39]

Products[edit]
ICICI Bank offers products and services such as online money transfers, tracking
services, current accounts, savings accounts,[40] time deposits, recurring deposits,

17
mortages, loans, automated lockers, credit cards, prepaid cards, debit cards
and digital wallets called ICICI pocket.[41]
ICICI bank launched 'ICICIStack' which provides online services such as payment
options, digital accounts, instant car loans, insurance, investments, loans and

more.[42]

18
 ICICI Prudential Life Insurance Company Limited  

is a life insurance company in India. Established as a joint

venture between ICICI Bank Limited[3] and Prudential Corporation
Holdings Limited,[4] ICICI Prudential Life is engaged in life insurance
and asset management business. In 2016, the company became
the first insurance company in India to be listed in the
domestic stock exchanges

Acquisitions[edit]
 1996: ICICI Ltd. A diversified financial institution with headquarters in
Mumbai[23]
 1997: ITC Classic Fi
Inhumane debt recovery methods[edit]
A few years after its rise to prominence in the banking sector, ICICI bank faced
allegations on the recovery methods it used against loan payment defaulters. A
number of cases were filed against the bank and its employees for using "brutal
measures" to recover the money. Most of the allegations were that the bank was
using goons to recover the credit card payments and that these "recovery agents"
exhibited inappropriately and in some cases, inhuman behaviour. Incidents were

19
reported wherein the defaulters were put to "public shame" by the recovery
agents.
The bank also faced allegations of inappropriate behaviour in recovering its loans.
These allegations started initially when the "recovery agents" and bank employees
started threatening the defaulters. In some cases, notes were written by the bank's
employees asking the defaulters to "sell everything in the house including family
members", were found. Such charges faced by the bank rose to a peak when
suicide cases were reported wherein the suicide notes spoke of the bank's
recovery methods as the cause of the suicide. This led to legal battles and the
bank paying huge compensation.[54][55]
Money laundering allegations[edit]
ICICI Bank was one of the leading Indian banks accused of blatant money
laundering through violation of RBI guidelines in the famous CobraPost [56] sting
operation which shook up Indian banking industry during April–May 2013. [57]
On 14 March 2013 the online magazine Cobrapost released video footage
from Operation Red Spider showing high-ranking officials and some employees of
ICICI Bank agreeing to convert black money into white, an act in violation
of Prevention of Money Laundering Act, 2002. The Government of
India and Reserve Bank of India ordered an inquiry following the exposé. On 15
March 2013, ICICI Bank suspended 18 employees, pending inquiry. [58][59][60] On 11
April 2013 the Deputy Governor of RBI, H R Khan reportedly said that the central
bank was initiating action against ICICI Bank in connection with allegations of
money laundering.[61][62]

Internet Banking
ICICI Bank Internet Banking is simple, convenient, 100% secure, and lets you
carry out a wide range of banking transactions and access numerous Net Banking
features in just a few clicks. Now, say goodbye to long queues and unwanted
delays. With ICICI Bank, Net Banking instantly unlocks a better lifestyle anytime
and anywhere.

20
Etymology

ICICI Bank Online Banking Services provide the largest private bank in India
right here at your desktops. Banking becomes a pleasure as the transactions and
services become instant with ICICI Bank online Internet banking. The services
provided are totally secure and unique. These cover online account transactions
and operations, credit card and account applications and payments, share
trading and investments through mutual funds, bill payments, statement
generation and a virtual demo of each service. See in brief in final report.

Role of customer when using e-banking

• You can access ICICIBank.com only by using your User ID and Password.
During the first login attempt, it is mandatory to change both passwords -
login and transaction – which would have been mailed to you by the bank. 

If you forget your password, you will have written to us using the
"Email Us" option. The Bank will then issue a new password and send it to
your mailing address as per our records. Kindly check with your branch that
this address is updated...
•

21
 • Make sure no one can see the account login name or password you are
entering when you log on to ICICIBank.com.
• Logout of ICICIBank.com before moving on to other Websites.
• Before leaving the PC please "close" the browser.
• Do not write your ICICIBank.com login name or password anywhere.
• Do not leave your login name and password such that someone sitting at
your computer could see them.
• Never reveal your ICICIBank.com login name and password to anyone (no
representative of ICICI Bank will ever ask you for your ICICIBank.com
password).

• Notify ICICI Bank immediately if you notice any unusual account activity.
• Keep all documents that include your account information in a secure
location.
• When you login you can view the date and time of your last log in.

Features offered by ICICI bank for internet banking

• Balance enquiry and statement

• Transfer fund online
• Card to card fund transfer
• Use debit card online
• Prepaid mobile recharge
• Subscribe for mobile banking

22
 • Link bank account to ATM
• Lock / activate debit cards /ATM
• Request a cheque book
• Stop payment

HDFC
Net Banking is HDFC Bank's Internet Banking service. Providing up-to-
thesecond account information, Net Banking lets you manage your account
from the comfort of your mouse - anytime, anywhere.

Features offered by HDFC bank for internet banking

• View account balances and statements
• Transfer funds between accounts
• Request stop payments
• Pay bills
• Create fixed deposit online
• Order cheque books

USE OF E-BANKING IN INDIA FEOM LAST FEW YEARS

Year 2014 2015 2016 2017 2018 2019 2020 2021

23
 Incr.% 9 12 15 20 25 32 40 50

60
50
40
30
20
10
0
2014 2015 2016 2017 2018 2019 2020 2021

Finding
In 2014-2021 the user of the E-banking is increase in more in every year.
Chapter 4

Objective of study
• Find the customer satisfaction relating to E-banking service.

• To study the awareness of internet banking among the customers of ICICI

and HDFC banks.

24
 Chapter 4.1 Limitation of Study
• Banks are not giving me all information about E-banking services.
• They do not permit to meet any of the employees in their bank.

Chapter 5

25
 Data collection
Primary Data:

In this research with a sample size of nearly 20 customer’s data will be available
in form of questionnaire collected in terms of different questions influencing the
use of internet banking.

Internet banking is considered as dependent on awareness among customers which

will be studied with help of different independent variable. Only the customers of
HDFC & ICICI bank are taken as samples for study.

Secondary data:

Collection of information from different kind of books the data of the company
what they maintained.

Methodology
Once the findings are finalized by a research, suggestions should be made for the
betterment of enterprise.

The data collected from questionnaire will be tabulated and analyzed so that

The result can be presented as simple as possible. There are a number of ways like

o Pie-chart o

Graphs

26
Questionnaire:-
1. Name of the customer:-

2. Do you like E-banking

a. Yes
b. No

3. Tick which bank you preferred…

a. Icici
b. Sbi
c. Sbh
d. Axis
e. Union bank
f. Hdfc
g. UTI Bank Ltd
h. Bank of Punjab Ltd

4. Why this bank

a. Service is good
b. They provide security
c. Cheaper service fees.

27
5. Which type of service mostly you use?

a. Balance and transaction history search

b. Transfer fund online
c. Card to card fund transfer
d. Open FD
e. Lock / activate debit cards /ATM
f. Request a cheque book
g. Stop payment
h. Railway pass / ticket
i. Shopping
j. Share payment

6. Services of the bank are….

a. poor
b. good
c. Very good

7. Are you satisfied with the using of E-banking?

a. Yes
b. No

28
Final Report

29
 Chapter 6 Data analysis
1) Users of E-banking

Yes 65%

No 35%

2) No. of user of the banks

Icici 20%

Sbi 30%

Sbh 20%

Axis 10%

Union 8%

Hdfc 12%

30
3) PREFERENCE FOR ONLINE BILL PAYMENT SERVICES

Yes 60%

No 40%

31
4) PREFERENCE FOR ONLINE SHOPPING

Yes 70%

No 30%

5) PREFERENCE FOR ONLINE FUND TRANSFAR `

Yes 35%

32
 No 65%

6) SATISFIED CUSTOMERS

Yes 65%

No 35%

33
7) PERFERRED MODE OF PAYMENT (TO BANK)

CHEQUE 50
CASH 25

E-BANKING 25

34
8) SPEND PER BILL FOR ON LINE BILL PAYMENT

ABOVE Rs.10 21

BETWEEN RS.5-10 11

BELOW RS.5 32

NOTHING 36

35
 Chapter 7 Findings
1. In the users ratio of internet banking 65% of customers are using this
service.
2. More banks are connecting to the any software co. to running the E-banking
service. In these services the Sbi banks is top in service of E-banking.
3. The services that are mostly used by maximum customers are transactions,
online trading, bill payment, shopping etc.
4. The mode of the cash deposit in bank is for use to online truncation cash,
cheque & e-banking.
5. Different banks different charge for online service.

36
 Suggestions
1. To prevent online banking from remaining customers to prompt this service
through advertising co.
2. After repairing this basic deficiency, banks must ensure that there services is
competitive.
3. Banks is not take more charge from there customers.

Chapter 8

Conclusion
The basic objective of my research was to analyze the awareness
among customers for internet banking in INDIA. It gives
direction to research tools, research types and techniques.
Although the findings reveal that people know about the services
but still many people are unaware and many of them are non –
users so the bank should by promotion try to retain the
customers. Banks should look forward to have some tie – ups
with other financial institutions to increase the service base.

37
 Bibliography

Book:-

 E-banking in India

 Banking service operation (ICFAI)

• Indian Banking
• Money & Banking

Links Visited

www.google.com

www.icici.com

www.hdfc.com

www.wikipedia.com

38